Agenda packet — City Council and Authorities Concurrent, January 27, 2026 (part 4 of 5)

NOW THEREFORE, BE IT FURTHER ORDAINED BY THE CITY OF SANTA CLARA AS FOLLOWS:

SECTION 1: That a new Section 2.80.080 is added to Chapter 2.80 (entitled "Police Department") of Title 2 (entitled "Administration and Personnel") of 'The Code of the Cityof Santa Clara, California" to read as follows:
"2.80.080 Military Equipment Policy.
(a) The City Council has made the following determinations:
(1) The military equipment inventoried and presented to the City Council is necessary because there is no reasonable alternative that can achieve the same objective of officer and civilian safety;
(2) The proposed military equipment use policy ("Policy") will safeguard the public's welfare, safety, civil rights, and civil liberties; (3) The equipment is reasonably cost effective compared to available alternatives that can achieve the same objective of officer and civilian safety (if any); (4) Prior military equipment use complied with the applicable equipment use policy (which included equipment now defined as military equipment) that was in effect at the time, or if prior uses did not comply with the accompanying military equipment use policy, corrective action has been taken to remedy nonconforming uses and ensure future compliance.
(b) The Police Department has submitted a proposed Policy to the City Council and has made those documents available on the Police Department's website for at least30 days prior to the public hearing concerning the military equipment at issue.

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Ordinance/AB 481 Military Equipment Policy
Rev: 09/2019

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(c) The Policy was considered by the City Council as an agenda item in an open session of a regular meeting, noticed in accordance with the Ralph M. Brown Act, at which public comment was permitted.
(d) The Policy shall be made publicly available on the Police Department's website for as long as the military equipment is available for use. (e) The Police Department shall submit an annual military equipment report to the City Council, containing the information required in Government Code Section 7072, and the City Council shall determine whether each type of military equipment identified in that report has complied with the standards for approval set forth in (a)(1 )-(4) above. (f) The City Council shall review this ordinance, and vote on whether to renew it, on an annual basis at a regular meeting, in accordance with Government Code Section 7071 (e)(2)
(g) The City Council approves the use of the Policy, and finds that it satisfies the requirements of Government Code Section 7070(d)."
SECTION 2: Ordinances Repealed. With exception of the provisions protected by the savings clause, all ordinances (or parts of ordinances) in conflict with or inconsistent withthis ordinance are hereby repealed.

SECTION 3: Savings clause. The changes provided for in this ordinance shall not affect any offense or act committed or done or any penalty or forfeiture incurred or any right established or accruing before the effective date of this ordinance; nor shall it affect any prosecution, suit or proceeding pending or any judgment rendered prior to the effective date of this ordinance. All fee schedules shall remain in force until superseded by the fee schedules adopted by the City Council.

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Ordinance/AB 481 Military Equipment Policy
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SECTION 4: Effective date. This ordinance shall take effect thirty (30) days after its final adoption; however, prior to its final adoption it shall be published in accordance with the requirements of Section 808 and 812 of "The Charter of the City of Santa Clara, California."
PASSED FOR THE PURPOSE OF PUBLICATION this 8th day of March, 2022, by the following vote:

AYES: COUNCILORS:

NOES: COUNCILORS:

ABSENT: COUNCILORS:

ABSTAINED: COUNCILORS:

Becker, Chahal, Hardy, Jain, Park, and Watanabe,
and Mayor Gillmor
None
None
None
ATTEST:

NORA PIMENT, L, MMC

ASSISTANT CITY CLERK

CITY OF SANTA CLARA

FINALLY PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF SANTA CLARA this 22ND day of MARCH, 2022, by the following vote:

AYES: COUNCILORS:

NOES: COUNCILORS:

ABSENT: COUNCILORS:

ABSTAINED: COUNCILORS:

Attachments incorporated by reference:

Becker, Chahal, Hardy, Jain, Park, and Watanabe,
and Mayor Gillmor
None
None
None
ATTEST: ~ d? NORAPffi~ MC

ASSISTANT CITY CLERK

CITY OF SANTA CLARA

1. Lexipol Policy 706 "Military Equipment" and Inventory of Military Equipment as of January 1, 2022
Ordinance/AB 481 Military Equipment Policy
Rev: 09/2019

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Policy Santa Clara Police Department
706
SCPD Policy Manual
Military Equipment
706.1 PURPOSE AND SCOPE
The purpose of this policy is to provide guidelines for the approval, acquisition, and reporting requirements of military equipment (Government Code § 7070; Government Code § 7071; Government Code § 7072).
706.1.1 DEFINITIONS
Definitions related to this policy include (Government Code § 7070):

Governing body - The elected or appointed body that oversees the Department.

Military equipment categories- Includes but is not limited to the following:
• Unmanned, remotely piloted, powered aerial or ground vehicles. • Mine-resistant ambush-protected (MRAP) vehicles or armored personnel carriers. • High mobility multipurpose wheeled vehicles (HMMWV), two-and-one-half-ton trucks, five-ton trucks, or wheeled vehicles that have a breaching or entry apparatus attached. • Tracked armored vehicles that provide ballistic protection to their occupants. • Command and control vehicles that are either built or modified to facilitate the operational control and direction of public safety units. • Weaponized aircraft, vessels, or vehicles of any kind. • Battering rams, slugs, and breaching apparatuses that are explosive in nature. This does not include a handheld, one-person ram.
• Firearms and ammunition of .50 caliber or greater, excluding standard-issue shotguns and standard-issue shotgun ammunition.
• Specialized firearms and ammunition of less than .50 caliber, including firearms and accessories identified as assault weapons in Penal Code § 30510 and Penal Code § 30515, with the exception of standard-issue firearms.
• Any firearm or firearm accessory that is designed to launch explosive projectiles. • Noise-flash diversionary devices and explosive breaching tools. • Munitions containing tear gas or OC, excluding standard, service-issued handheld pepper spray.
• TASER® Shockwave, microwave weapons, water cannons, and long-range acoustic devices (LRADs).
• Kinetic energy weapons and munitions.
• Any other equipment as determined by a governing body or a state agency to require additional oversight.

Published with permission by Santa Clara Police Department Military Equipment - 1
Santa Clara Police Department
SCP □ Policy Manual
Military Equipment
706.2 POLICY
It is the policy of the Santa Clara Police Department that members of this department comply with the provisions of Government Code § 7071 with respect to military equipment. 706.3 MILITARY EQUIPMENT COORDINATOR
The Chief of Police should designate a member of this department to act as the military equipment coordinator . The responsibilities of the military equipment coordinator include but are not limited to:
(a) Acting as liaison to the governing body for matters related to the requirements of this policy.
(b) Identifying department equipment that qualifies as military equipment in the current possession of the Department, or the equipment the Department intends to acquire that requires approval by the governing body.
(c) Conducting an inventory of all military equipment at least annually . (d) Collaborating with any allied agency that may use military equipment within the jurisd iction of Santa Clara Police Department (Government Code § 7071 ). (e) Preparing for, scheduling , and coordinating the annual community engagement meeting to include:

1. Publicizing the details of the meeting.

2. Preparing for public questions regarding the department's funding, acquisition , and use of equipment.
(f) Preparing the annual military equipment report for submission to the Chief of Police and ensuring that the report is made available on the department website (Government Code § 7072).
(g) Establishing the procedure for a person to register a complaint or concern, or how that person may submit a question about the use of a type of military equipment, and how the Department will respond in a timely manner.
706.4 MILITARY EQUIPMENT INVENTORY
The following constitutes a list of qualifying equipment for the Department:

See attachment: 706.4 MILITARY EQUIPMENT INVENTORY .pdf 706.5 APPROVAL
The Chief of Police or the authorized designee shall obtain approval from the governing body by way of an ordinance adopting the military equipment policy. As part of the approval process , the Chief of Police or the authorized designee shall ensure the proposed military equipment policy is submitted to the governing body and is available on the department website at least 30 days prior to any public hearing concerning the military equipment at issue (Government Code§ 7071 ). The military equipment policy must be approved by the governing body prior to engaging in any of the following (Government Code § 7071 ):

Published with permission by Santa Clara Police Department Military Equipment - 2
Santa Clara Police Department
SCPD Policy Manual
Military Equipment
(a) Requesting military equipment made available pursuant to 10 USC § 2576a. (b) Seeking funds for military equipment, including but not limited to applying for a grant, soliciting or accepting private, local, state, or federal funds, in-kind donations, or other donations or transfers.
(c) Acquiring military equipment either permanently or temporarily, including by borrowing or leasing.
(d) Collaborating with another law enforcement agency in the deployment or other use of military equipment within the jurisdiction of this department. ( e) Using any new or existing military equipment for a purpose, in a manner, or by a person not previously approved by the governing body.
(f) Soliciting or responding to a proposal for, or entering into an agreement with, any other person or entity to seek funds for, apply to receive, acquire, use, or collaborate in the use of military equipment.
(g) Acquiring military equipment through any means not provided above. 706.6 COORDINATION WITH OTHER JURISDICTIONS
Military equipment should not be used by any other law enforcement agency or member in this jurisdiction unless the military equipment is approved for use in accordance with this policy. 706.7 ANNUAL REPORT
Upon approval of a military equipment policy, the Chief of Police or the authorized designee should submit a military equipment report to the governing body for each type of military equipment approved within one year of approval, and annually thereafter for as long as the military equipment is available for use (Government Code § 7072).

The Chief of Police or the authorized designee should also make each annual military equipment report publicly available on the department website for as long as the military equipment is available for use. The report shall include all information required by Government Code § 7072 for the preceding calendar year for each type of military equipment in department inventory. 706.8 COMMUNITY ENGAGEMENT
Within 30 days of submitting and publicly releasing the annual report, the Department shall hold at least one well-publicized and conveniently located community engagement meeting, at which the Department should discuss the report and respond to public questions regarding the funding, acquisition, or use of military equipment.

Published with permission by Santa Clara Police Department Military Equipment - 3
SCPD Policy Manual
Attachments
Copyright Lexlpol, LLC 2022/03/14, All Rights Reserved.

Published with permission by Santa Clara Police Department Attachments - 4
Attachment
SCPD Policy Manual
706.4 MILITARY EQUIPMENT INVENTORY.pdf
Copyright Lexipol, LLC 2022/03/14, All Rights Reserved.

Published with permission by Santa Clara Police Department 706.4 MILITARY EQUIPMENT
INVENTORY.pdf - 5

1. Robot (Category 1)
a. Description, quantity, capabilities, and purchase cost:

Transcend Tactical Robot, cost: $24,452.24, Quantify: 1. This equipment is a battery powered, remote operated device. Equipped with two cameras and two way radio capabilities. This equipment is for (potential) use during high-risk incidents. Use is limited to members of the Departments Special Response Team (SRT). Incidents that may qualify for its use include, but are not limited to, a high risk warrant service, barricaded subject, and hostage negotiation/rescue. Before entering a structure, particularly in a tactically compromised and dangerous situation, knowledge of a subject's location is very important, and the robot can provide that without placing anyone at risk. Cameras can also help determine if a subject is armed and also if there are other subjects inside that need assistance.

The two-way speakers can be used to de-escalate and determine resistance level.
b. Purpose:

To be used to remotely gain visual/audio data, deliver CNT phone, open doors, disrupt packages, and clear buildings.
c. Authorized Use:

Only assigned operators who have completed the required training shall be permitted to operate the robot. Use is established by the Incident Commander.

All other applicable SCPD policies remain in effect, to include, but not limited to, SCPD Policy 311 - Search and Seizure, SCPD Policy 703 - Vehicle Use, SCPD Policy 404 - Special Response Team.
d. Expected Lifespan:
10-15 years
e. Fiscal Impact:

No known annual maintenance cost.

2. Unmanned Aerial Vehicles (Category 1)
a. Description, quantity, capabilities, and purchase cost:

Yuneec H520 unmanned aerial vehicle (UAV), cost: Included with purchase of Transcend Tactical Robot, Quantity: 1. The H520 is a commercial-grade UAV.

Commonly used by construction and utility companies for the inspection of buildings, powerlines, windmills and other infrastructure. This UAV is a battery powered, remote operated device. Controller: ST16 All-in-one controller with 7- inch integrated screen. Controller allows operators to control UAV and view live feed from UAV-mounted cameras. Camera: CGOET camera with dual RGB and FLIR capabilities. Camera provides operators ability to switch between standard RGB camera and views based on heat of objects within frame. Flight time of approximately 25-30 minutes per battery, depending on weather and flight conditions. The UAV has also proven to be useful to public safety agencies in firefighting, search and rescue, pre-operational surveillance, and other tactical situations where aerial views enhance the safety and efficiency of law enforcement and fire personnel
b. Purpose:

To be deployed when its view would assist officers or incident commanders with the following situations, which include but are not limited to:
i. major collision investigations.
ii. search for missing persons.
iii. natural disaster management.
iv. crime scene photography.
v. SWAT, tactical or other public safety and life preservation missions. vi. In response to specific requests from local, state or federal fire authorities for fire response and/or prevention.
c. Authorized Use:

Only assigned operators who have completed the required training shall be permitted to operate the Yuneec H520 during approved missions. All other applicable SCPD policies remain in effect, to include, but not limited to, SCPD Policy 311 - Search and Seizure, SCPD Policy 316 - Missing Persons, SCPD Policy 606 - Unmanned Aerial System Operations, SCPD Policy 703 - Vehicle Use, SCPD Policy 404 - Special Response Team.
d. Expected Lifespan:
10 years
e. Fiscal Impact:

No known annual maintenance cost.

3. Armored Personnel Carrier, vehicle with entry apparatus attached (Category 2 & 3) a. Description, quantity, capabilities, and purchase cost:

Lenee Armored Rescue Vehicle, cost: $309,000, quantity: 1.The ARV is designed to provide ballistic protection during tactical events (designed to withstand multiple bullet strikes from small arms fire as well as low level explosions).Equipped with nuclear/radiological detection devices, self-contained breathing apparatus, explosive gas detection devices, and thermal imaging camera. Equipped with emergency lights/siren and a public address system.

Common uses for the ARV include citizen and officer rescues, evacuations, and the deployment of officers and chemical agents. The ARV is currently deployed at every large event in the city of Santa Clara including stadium events, parades, and festivals. The ARV is a regional mutual-aid asset that has been requested and deployed to allied agencies in Santa Clara, San Benito, Monterey, Santa Cruz, Alameda, and San Mateo Counties. The ARV responded high profile events including: The Gilroy Garlic Festival shooting, Super Bowl 50, an armed barricade at Main Jail, the VTA active shooter and several incidents where local officers were killed in the line of duty
b. Purpose:

To be used in response to critical incidents to enhance officer and community safety, improve scene containment and stabilization, and assist in resolving critical incidents.
c. Authorized Use:

The use of armored vehicles shall only be authorized by a watch commander or SWAT commander, based on the specific circumstances of a given critical incident. Armored vehicles shall be used only by officers trained in their deployment and in a manner consistent with Department policy and training. The driver of the vehicle shall have a valid California driver license. All other applicable SCPD policies remain in effect, to include, but not limited to, SCPD Policy 703 - Vehicle Use, SCPD Policy 404 - Special Response Team. d. Expected Lifespan:
20 years
e. Fiscal Impact:

Annual maintenance cost of approximately $2,500.

4. Command and Control Vehicles (Category 5)
a. Description, quantity, capabilities, and purchase cost:
1993 Int. Model 3800, cost: $13,291, quantity: 1. The vehicle is a two-axel bus style vehicle with a front door and a rear door. It is painted black with police graphics affixed to the front, sides, and the rear of the vehicle. The vehicle has been partitioned into (2) separate workspace areas. The equipment housed in the vehicle includes, but is not limited to, a negotiations control console and accessories, communications throw phone and cables, miscellaneous office supplies, tabletops, chairs, storage space, coffee maker, and refrigerator The vehicle is capable of being used as a mobile operation and dispatch center.

The vehicle is also capable of transporting personnel and equipment The Mobile Communications Vehicle was placed into service in 2006 after its acquisition from the City of Santa Clara Library (formerly the bookmobile).

The Mobile Command Vehicle is used as an auxiliary command vehicle during major incidents. The vehicle is separated into two areas by a walled partition and door. One area is used as a negotiation / communication center by the Crisis Negotiations Team. The second area can be used as a mobile command center aiding in the command, control, and deployment of personnel at a critical incident.
b. Purpose:

To be utilized for critical incident callouts.
c. Authorized Use:

The CNT vehicle used by officers and staff who have been properly trained in the safe handling of the vehicle. The driver of the vehicle shall have a valid California driver license. All other applicable SCPD policies remain in effect, to include, but not limited to, SCPD Policy 703 - Vehicle Use, SCPD Policy 404 - Special Response Team.
d. Expected Lifespan:
25 years (Expired)
e. Fiscal Impact:

Annual maintenance cost of approximately $5,589

5. Command and Control Vehicles (Category 5)
a. Description, quantity, capabilities, and purchase cost:
2001 Freightliner MT45 - custom upfit by Mattman, cost: $162,181, quantity: 1.

The SRT van is a command vehicle and an equipment storage and transportation vehicle. Computerized screen used for tracking operations on the exterior. Desk with radios for dispatch on the interior. Several storage areas for the different equipment used by SRT. Manual breaching tools/ Energetic breaching materials, Water, Generator, Ammunition, Robot/ UAV, 40mm launchers and projectiles
b. Purpose:

To be used based on the specific circumstances of a given critical incident, large event, natural disaster or community event that is taking place. c. Authorized Use:

The SRT Van shall be used by officers trained in their deployment and in a manner consistent with Department policy and training. The driver of the vehicle shall have a valid California driver license. All other applicable SCPD policies remain in effect, to include, but not limited to, SCPD Policy 703 - Vehicle Use, SCPD Policy 404 - Special Response Team.
d. Expected Lifespan:
20 years (expires in March 2022)
e. Fiscal Impact:

Annual maintenance cost of approximately $2,500

6. Command and Control Vehicles (Category 5)
a. Description, quantity, capabilities, and purchase cost:
2018 Ford E450 Super Duty cutaway/stripped chassis with a large built-out cargo box mounted on the chassis. It looks like a typical box style cargo van/truck painted black with police graphics. The CSI van is not used in an enforcement capacity. This vehicle is used for the transportation of investigative equipment including a Total Station laser surveyor and accessories, computer equipment and software, evidence collection materials, and storage space for transporting items to the Santa Clara Police Department. There is a large computer monitor/TV mounted on an interior wall to view photos, diagrams, and to aid in crime scene diagramming. The CSI van is used to transport evidence and investigative tools, and a limited number of personnel, to a major crime scene or a crime scene requiring a vehicle larger than a traditional police vehicle for the purposes of transporting evidence collection materials or crime scene evidence.

Once on-scene, the van is used as shelter, supply storage, and evidence storage b. Purpose:

To be utilized for critical incident callouts.
c. Authorized Use:

The CSI vehicle is used by officers and staff who have been properly trained in the safe handling of the vehicle. The driver of the vehicle shall have a valid California driver license. All other applicable SCPD policies remain in effect, to include, but not limited to, SCPD Policy 703 - Vehicle Use, SCPD Policy 802 - Property and Evidence.
d. Expected Lifespan:
20 years
e. Fiscal Impact:

Annual maintenance cost of approximately $5,770.

7. Breaching Apparatus: Slugs (Category 7)
a. Description, quantity, capabilities, and purchase cost:

Royal Arms Tesar-2, cost: $1,880, quantity: 470. Shotgun breaching rounds are specialty shotgun shells utilized for door breaching. The Royal Arms Tesar-2 rounds contain compressed copper powder and are fired through a specialized breaching shotgun barrel. The copper powder is designed to strike and destroy the lock throw inside of the door, allowing entry into the room or structure. The powder is designed to dissipate after striking the lock throw in order to minimize entry into the target space for the safety of occupants and operators. Designed to breach heavy locks, dead-bolts, and hinges mounted inside of solid oak or steel doors. Royal Arms Tesar-2 rounds are good until expended if stored properly.

Shotgun breaching rounds are used to gain rapid access to a room or structure when an emergent law enforcement need exists
b. Purpose:

To safely gain entry into a structure.
c. Authorized Use:

Explosive breaching may only occur after authorization by the Incident Commander or SWAT Commander in the field, and during training exercises. All other applicable SCPD policies remain in effect, to include, but not limited to, SCPD Policy 311 - Search and Seizure, SCPD Policy 404 Special Response Team.
d. Expected Lifespan:

Until expended
e. Fiscal Impact:

Individual unit price of approximately $4 each. Estimated between $0 and $1,880 annually

8. Breaching Apparatus: Energetic Breaching Program (Category 7) a. Description, quantity, capabilities, and purchase cost:

Energetic breaching is used to gain rapid access to a room or structure when an emergent law enforcement need exists. All efforts are made to minimize the amount of energetics applied to a target, while still achieving a positive breach.

Energetic breaching materials are used to make breaching charges of various shapes and strength which are specifically designed for the target. The materials release gasses, heat, and light when initiated. The pressure from the gasses released presses against mediums and or the target to cause the structure of the target to fail for a successful breach.

Breaching charges are specially designed to cause structural failure of the desired target. The breaching charges in stock were built in house by the SRT breaching cadre. Various types, configurations, and energetic weights are maintained for use as needed. Older charges are cycled out of stock during monthly training.
i. 25 grain detonation cord, cost: $349, quantity 2.4Ibs. The detonating cord is a thin, flexible plastic tube usually filled with pentaerythritol tetranitrate (PETN, pentrite). With the PETN exploding at a rate of approximately 6400 m/s, any common length of detonation cord appears to explode instantaneously. It is a high-speed fuse which explodes, rather than burns, and is suitable for detonating high explosives.
ii. 50 grain detonation cord, cost $1,915.49, quantity 1 roll. The detonating cord is a thin, flexible plastic tube usually filled with pentaerythritol tetra nitrate (PETN, pentrite ). With the PETN exploding at a rate of approximately 6400 m/s, any common length of detonation cord appears to explode instantaneously. It is a high speed fuse which explodes, rather than burns, and is suitable for detonating high explosives.
iii. Nonel starters, cost: included with 50 grain det cord, quantity: 88. A blasting cap is a small sensitive primary explosive device generally used to detonate a larger, more powerful and less sensitive secondary explosive such as TNT, dynamite, or plastic explosive.

Blasting caps come in a variety of types, including non-electric caps, electric caps, and fuse caps
iv. C2 Prima sheet, cost: $1,183.50, quantity: 10 lbs. A PETN based sheet explosive
b. Purpose:

To safely gain entry into a structure.
c. Authorized Use:

Explosive breaching may only occur after authorization by the Incident Commander or SWAT Commander in the field, and during training exercises. All Breachers shall be licensed as a Blaster by Cal/OSHA. All Breachers will attend an approved "Tactical Energetic Breaching" course. Master Breacher designation upon: Attend an accredited "advanced" Energetic Breaching course or equivalent. Participate in a minimum of 50 documented training breaches, of which at least ten (10) were considered "research and development" shots.

Participate in at least 1 operational energetic breach. All other applicable SCPD policies remain in effect, to include, but not limited to, SCPD Policy 311 - Search and Seizure, SCPD Policy 404 Special Response Team.
d. Expected Lifespan:
25 grain detonation cord - 5 years
50 grain detonation cord - 5 years
C2 Prima Sheet - Until expended
Nonel Starters - until expended
e. Fiscal Impact:
25 grain detonation cord - estimated between $0 and $349 annually. 50 grain detonation cord - estimated between $0 and $1,915.49 annually C2 Prima Sheet - estimated between $0 and $1,183.50 annually Nonel Starters - $0

9. Specialized Firearms and Ammunition (Equipment Category 10) a. Description, quantity, capabilities, and purchase cost:

I. The Carbine Rifle is a firearm, capable of accurately stopping an armed subject at various distances. The Carbine Rifle is a lightweight, air-cooled, gas operated, magazine fed, shoulder fired weapon, designed for semi-automatic & selective fire. The Carbine Rifle does not have an expiration and will need to be serviced or replaced when the Rifle fails or breaks. The .223 / 5.56 cartridge is used as a lethal option designed to stop a violent encounter. The projectile is capable of penetrating soft body armor being worn by armed subjects. Colt AR-15/M4, cost: $119,850, quantity: 102, FN-15, cost: $46, 371, quantity: 29
II. The Hornady .223 Remington, 75 grain, BTHP Tap Precision cartridge is the primary duty ammunition deployed during potential lethal encounters. Cost: $19,980, quantity: 25,000
Ill. The Hornady .223 Remington, 62 grain, Tap Barrier cartridge is the secondary ammunition deployed during potential lethal encounters, when shooting through barriers. Cost: $3,996, quantity: 5,000
IV. The Hornady .223 Remington, 55 grain cartridge is the primary training ammunition for the Department. Cost: $40,176, quantity:
100,000
V. The Santa Clara Police Department Special Response Team (SRT) was formed in 1975, in response to very dangerous or violent tactical encounters. The Sniper element deploys with precision rifles, which enables the stopping of an armed subject at a safe distance. The Sniper Rifle does not have an expiration and will need to be serviced or replaced when the Rifle fails or breaks.

The .308 Winchester cartridge: is a rimless, bottlenecked rifle cartridge. The .308 WIN. cartridge is used as a Lethal option designed to stop a violent encounter. The projectile is capable of penetrating soft body armor being worn by armed subjects. JP LRP-07 Rifle cost: $14,276, quantity: 4, TacOps 700, cost: $3,999, quantity: 1, DT SRS-A 1 rifle, cost: $7,698, quantity: 2, Spartan rifle, cost: $8,800, quantity: 2.

VI. The Hornady .308 WIN., 110 grain, Tap Urban cartridge is ammunition deployed during potential lethal encounters, in high collateral risk environments. The 110 grain, Tap Urban offers a unique projectile that allows rapid expansion, fragmentation & low retained weight. It also offers the least penetration, but with substantially more temporary & permanent cavity & fragmentation.

Cost: $6,303, quantity: 5,000
VII. The Hornady .308 WIN., 168 grain, ELD Match Tap Precision cartridge is ammunition deployed during potential lethal encounters at longer distances. The 168 grain projectile maintains accuracy, while resulting in higher impact velocities, less drop, less wind drift, and more energy on target. Cost: $18,909, quantity: 15,000.

VIII. The RUAG .308 WIN., 164 grain, Tactical cartridge is ammunition deployed during potential lethal encounters, when shooting through barriers. The 164-grain projectile is capable of accurately striking targets behind an angled window or windshield, without the risk of unpredictable bullet deflection Conventional bullets break apart or fragment when penetrating glass, which does not allow an accurate hit. Cost: $1,512, quantity: 500
IX. The RUAG .308 WIN., 196 grain, Armor Piercing cartridge is ammunition deployed during potential lethal encounters, when shooting through heavy barriers. The 196 grain projectile is capable of accurately striking targets behind armor, without the risk of unpredictable bullet deflection. Conventional bullets break apart or fragment when penetrating armor, which does not allow an accurate hit. Cost: $385, quantity: 80
X. The RUAG .338 Lapua Magnum, 247 grain, Styx Action cartridge is ammunition deployed during potential lethal encounters, in high collateral risk environments. The 247 grain Styx Action cartridge offers a unique projectile that allows rapid expansion, fragmentation & low retained weight. It also offers the least penetration, but with substantially more temporary & permanent cavity & fragmentation. Cost: $1,618, quantity: 500
XI. The Hornady .338 Lapua Magnum, 285 grain, ELD Match cartridge, is ammunition deployed during potential lethal encounters at longer distances. The 285-grain projectile maintains accuracy, while resulting in higher impact velocities, less drop, less wind drift, and more energy on target. Cost: $17,766, quantity: 3,840
XII. The RUAG .338 Lapua Magnum, 250 grain, Tactical cartridge is ammunition deployed during potential lethal encounters, when shooting through barriers. The 250-grain projectile is capable of accurately striking targets behind an angled window or windshield, without the risk of unpredictable bullet deflection Conventional bullets break apart or fragment when penetrating glass, which does not allow an accurate hit. Cost: $953, quantity: 350 XIII. The RUAG .338 Lapua Magnum, 260 grain, Armor Piercing cartridge is ammunition deployed during potential lethal encounters, when shooting through heavy barriers. The 260-grain projectile is capable of accurately striking targets behind armor, without the risk of unpredictable bullet deflection. Conventional bullets break apart or fragment when penetrating armor, which does not allow an accurate hit. Cost: $3,240, quantity: 500 XIV. Selections of which of the above ammunition to use is dependent on the threat and the environment (to include barriers, weather conditions, uninvolved parties, etc.)
b. Purpose:

To be used as precision weapons to address a threat with more precision and/or greater distances than a handgun, if present and feasible. c. Authorized Use:

Only members that are POST certified are authorized to use a rifle. All other applicable SCPD policies remain in effect, to include, but not limited to, SCPD Policy 300 - Use of Force, SCPD Policy 306.5 - Firearms Training and Qualifications, SCPD Policy 404 - Special Response Team. d. Expected Lifespan:

I. Carbine Rifle - No expiration
II. The Hornady .223 Remington, 75 grain - No expiration Ill. The Hornady .223 Remington, 62 grain, Tap Barrier - No expiration IV. The Hornady .223 Remington, 55 grain, - No expiration V. Sniper Rifles - No expiration
VI. The Hornady .308 WIN., 11 O grain - No expiration
VII. The Hornady .308 WIN., 168 grain - No expiration
VIII. The RUAG .308 WIN., 164 grain - No expiration
IX. The RUAG .308 WIN., 196 grain - No expiration
X. The RUAG .338 Lapua Magnum, 247 grain - No expiration XI. The Hornady .338 Lapua Magnum, 285 grain - No expiration XII. The RUAG .338 Lapua Magnum, 250 grain - No expiration XIII. The RUAG .338 Lapua Magnum, 260 grain - No expiration e. Fiscal Impact:

I. Carbine Rifle - Annual cost between $19,999 - $166,221 II. The Hornady .223 Remington, 75 grain -Annual cost between $0 - $19,980
Ill. The Hornady .223 Remington, 62 grain, Tap Barrier - Annual cost between $0 - $3,996
IV. The Hornady .223 Remington, 55 grain - Annual cost between $0 - $40,176
V. Sniper Rifle -Annual cost between $900 - $34,773
VI. The Hornady .308 WIN., 110 grain - Annual cost between $0 - $6,303 VII. The Hornady .308 WIN., 168 grain-Annual cost between $0- $18,909 VIII. The RUAG .308 WIN., 164 grain-Annual cost between $0- $1,512 IX. The RUAG .308 WIN., 196 grain -Annual cost between $0 - $385 X. The RUAG .338 Lapua Magnum, 247 grain -Annual cost between $0 - $1,618
XI. The Hornady .338 Lapua Magnum, 285 grain - Annual cost between $0 - $17,766
XII. The RUAG .338 Lapua Magnum, 250 grain -Annual cost between $0 - $953
XIII. The RUAG .338 Lapua Magnum, 260 grain - Annual cost between $0 - $3,240

10. Flash bangs (Category 12)
a. Description, quantity, capabilities, and purchase cost:

A Noise Flash Diversionary Devices (NFDD) is a device that creates a bright flash and loud sound to temporarily divert the attention of subjects in the immediate area. NFDD are used to distract and temporarily incapacitate dangerous suspects by overwhelming their senses of vision and hearing. The distraction allows officers to seize a moment of opportunity to take control of high-risk situations.

I. NFDD 7290M emits a loud "bang" and a flash of light, cost:
$4,345.97, quantity: 96
II. NFDD 7290-5 emits a loud "bang" and a flash of light (5) times, cost: $1,070.13, quantity: 10
Ill. NFDD 9593 Multi-effect grenades with a loud blast, bright flash and dispersion of stinging .31 caliber pellets. Can also be configured to dispense an instantaneous cloud of irritant powder.

Cost: $443.30, quantity: 11
b. Purpose:

To produce atmospheric over-pressure and brilliant white light and, as a result, can cause short-term (6 - 8 seconds) physiological/psychological sensory deprivation to give officers a tactical advantage.
c. Authorized Use:

Diversionary Devices shall only be used:
i. By SRT officers who have been trained in their proper use. ii. In hostage and barricaded subject situations.
iii. In high risk warrant (search/arrest) services where there may be extreme hazards to officers.
iv. During other high-risk situations where their use would enhance officer safety. v. During training exercises.

All other applicable SCPD policies remain in effect, to include, but not limited to, SCPD Policy 300 - Use of Force, SCPD Policy 404- Special Response Team. d. Expected Lifespan:

I. NFDD 7290M - 5 years
II. NFDD 7290-5 - 5 years
Ill. NFDD 9593 - 5 years
e. Fiscal Impact:

I. NFDD 7290M -Annual cost between $0 - $4,345.97
II. NFDD 7290-5 - Annual cost between $0 - $1,070.13
Ill. NFDD 9593 -Annual cost between $0 - $1,070.13

11. Tear Gas (Category 12)
a. Description, quantity, capabilities, and purchase cost:

Chemical agent munitions, which are commonly referred to as "tear gas," are used by the Santa Clara Police Department as a non-lethal tool to disperse rioting suspects and on barricaded suspects.

The Santa Clara Police Department uses chemical agents which are used by law enforcement across the United States: CS (2-Chlorobenzylidenemalononitrile) and OC (Oleoresin Capsicum)
CS is an irritating agent and lachrymator (irritates the eyes and causes tears to flow). CS has been medically tested in the UK and US, specifically by the U.S.

Army. There are no known allergic reactions to CS.

OC was de-regulated in California in 1996, is endorsed by the FBI, and is available to civilians to legally possess (2.5oz or less). OC is an inflammatory agent which causes involuntary closure of eyes (open in 2-5 minutes) and respiratory inflammation (subsides in approximately 2 minutes).

I. 5230B - Pyrotechnic grenade designed for indoor use delivering a maximum amount of irritant smoke throughout multiple rooms with minimal risk of fire. Cost: $2,412, quantity: 67
II. 6230 - Pyrotechnic canister grenade emitting smoke through multiple emission ports for 30 to 40 seconds. May be launched or hand thrown.

Cost: $450, quantity: 15
Ill. 8230 - The smallest diameter burning grenade that discharges a high volume of smoke and chemical agent through multiple emission ports.

Specifically for outdoor use and it should not be deployed on rooftops, in crawl spaces or indoors due to fire producing capability. Can be hand thrown or launched. Cost: $504, quantity: 21
IV. 9230 - The 9230 CS Jet-Lite Rubber Ball Grenade is one of the smaller diameter burning grenades that discharges a high volume of chemical agents through multiple emission ports. Specifically for outdoor use and should not be deployed from rooftops, in crawl spaces or indoors due to fire producing capability. Can be hand thrown or launched. Cost: $725, quantity: 25.

V. 3330 - Liquid CS filled projectile penetrates intermediate barriers and delivers irritant agents into an adjacent room. Cost: $735, quantity: 35 VI. 6340 - This unique grenade delivers an invisible OC vapor and renders an intense respiratory effect to a non-compliant subject. Cost: $360, quantity 10
VII. 4330 - Liquid CS filled projectile penetrates intermediate barriers and delivers irritant agents into an adjacent room. Cost: $1,950, quantity: 75 VIII. The Spede-Heat™ 40mm Short Range CS Round incorporates an aluminum shell and utilizes black powder as the propellant. The Spede Heat™ 40mm Short Range Round is designed to deliver one dual-ported chemical canister from a 40mm launcher 75 yards to the intended target zone. Cost: $420, quantity: 15
IX. The 6 oz. OC Aerosol Grenade will delivery its payload of 1.3% MC% OC in 20-25 seconds. This is a antomized mist which enhances the pungent

1.3% OC formulation. Cost: $180, quantity: 10
b. Purpose:

To limit the escalation of conflict where employment of lethal force is prohibited or undesirable. Situations for use of the less lethal weapon systems may include, but are not limited to:
i. Self-destructive, dangerous and/or combative individuals. ii. Riot/crowd control and civil unrest incidents.
iii. Circumstances where a tactical advantage can be obtained. iv. Potentially vicious animals.
v. Training exercises or approved demonstrations.
c. Authorized Use:

Only officers who have received POST certification in the use chemical agents are authorized to use chemical agents. All other applicable SCPD policies remain in effect, to include, but not limited to, SCPD Policy 300 - Use of Force, SCPD Policy 404 - Special Response Team.
d. Expected Lifespan:

I. 5230B - 5 years
II. 6230 - 5 years
Ill. 8230 - 5 years
IV. 9230 - 5 years
V. 3330 - 5 years
VI. 6340 - 5 years
VII. 4330 - 5 years
VIII. The Specie-Heat™ 40mm Short Range CS Round - 5 years IX. The 6 oz. OC Aerosol Grenade - 5 years
e. Fiscal Impact:

I. 5230B - estimated between $0 and $2,412 annually
II. 6230 - estimated between $0 and $450 annually
Ill. 8230 - estimated between $0 and $504 annually
IV. 9230- estimated between $0 and $725 annually
V. 3330 - estimated between $0 and $735 annually
VI. 6340 - estimated between $0 and $360 annually
VII. 4330 - estimated between $0 and $1,950 annually
VIII. The Specie-Heat™ 40mm Short Range CS Round
IX. The 6 oz. OC Aerosol Grenade

12. PepperBall Launcher (Category 12)
a. Description, quantity, capabilities, and purchase cost:

System that uses high pressure air to deliver PAVA powder projectiles (similar to a paint ball delivery system). System capable of launching projectiles at a subject up to 60'. System capable of area saturation up to 160'. Non-lethal option to offer law enforcement officers to deliver chemical agents and kinetic energy impacts to subjects in a potentially violent encounter. De-Escalation tool used to avoid further injuries or lethal options on a subject. Cost: $7,500, quantity:

I. PepperBall LIVE PROJECTILE, The basic PepperBall projectile contains 2% PAVA pepper powder, and is designed for direct impact and area saturation, especially in confined, interior spaces.

Discharged from a PepperBall Launcher, the projectile has a velocity of 280-350 FPS. The projectile has a direct impact of 60ft and an area of saturation of 150+ft. The projectile contains 0.5% PAVA Powder.8230. Cost: $3,412 quantity: 1500
II. PepperBall VXR LIVE-X PROJECTILE: The VXR Live-X Projectile is a non-lethal round. The projectile contains approximately 1 Ox the PAVA of the VXR LIVE projectile. This projectile is best for direct impact or area saturation. Discharged from a PepperBall Launcher, the projectile has a velocity of 280-425 FPS. The projectile has a direct impact of 150ft and an area of saturation of b. Purpose:
390+ft. The projectile contains 2.5% PAVA powder. Cost: $8,984 quantity: 3000
To limit the escalation of conflict where employment of lethal force is prohibited or undesirable. Situations for use of the less lethal weapon systems may include but, are not limited to:
i. Self-destructive, dangerous and/or combative individuals. ii. Riot/crowd control and civil unrest incidents.
iii. Circumstances where a tactical advantage can be obtained. iv. Potentially vicious animals.
v. Training exercises or approved demonstrations.
c. Authorized Use:

Only those officers who have been trained in the use of PepperBall launchers are authorized to use the PepperBall launchers. All other applicable SCPD policies remain in effect, to include, but not limited to, SCPD Policy 300 - Use of Force. d. Expected Lifespan:

I. PepperBall Launcher: No expiration
II. Live Projectile: 1 year
Ill. Live-X Projectile: 1 year
e. Fiscal Impact:

I. PepperBall Launcher: estimated between $0 and $7,500 annually II. Live Projectile: estimated between $0 and $3,412 annually Ill. Live-X Projectile: estimated between $0 and $9,000 annually

13. Projectile Launch platforms and associated munitions (Category 14) a. Description 1 guantity 1 capabilities 1 and purchase cost:

Penn Arms Launcher: Cost: $23,650, quantity: 22.The Penn Arms Launcher is not a firearm, but a Less-Lethal systems that uses smokeless powder to deliver 40MM projectiles from a safe distance. The Less-Lethal launcher is capable of launching 40MM munitions at a subject up to 25 yards. The Less-Lethal launcher is a single launcher, which allows the Officer to assess after every spent munition. Less-Lethal launcher does not have an expiration and will need to be serviced or replaced when the launcher fails or breaks. The 40MM munition is a Direct Impact Spin Stabilized Smokeless Sponge Munition. The Sponge Baton munition is used as a Less-Lethal weapon designed to de-escalate a potentially violent encounter. Cost: $11,454, quantity: 600
b. Purpose:

To limit the escalation of conflict where employment of lethal force is prohibited or undesirable.
c. Authorized Use:

Situations for use of the less lethal weapon systems may include, but are not limited to:
i. Self-destructive, dangerous and/or combative individuals. ii. Riot/crowd control and civil unrest incidents.
iii. Circumstances where a tactical advantage can be obtained. iv. Potentially vicious animals.
v. Training exercises or approved demonstrations.

All other applicable SCPD policies remain in effect, to include, but not limited to, SCPD Policy 300 - Use of Force.
d. Expected Lifespan:

I. 40mm Launcher: No expiration
II. 40mm Sponge Round: 5 years
e. Fiscal Impact:

I. 40mm Launcher: estimated between $0 and $23,650 annually II. 40mm Sponge Round: estimated between $0 and $12,000 annually

Ordinance/Military Equipment Policy Page 1 of 4
ORDINANCE NO. _____

AN ORDINANCE OF THE CITY OF SANTA CLARA ,
CALIFORNIA, AMENDING SECTION 2.80.080 (“MILITARY
EQUIPMENT POLICY”) OF CHAPTER 2.80 (“POLICE
DEPARTMENT”) OF TITLE 2 (“ADMINISTRATION AND
PERSONNEL”) OF “THE CODE OF THE CITY OF SANTA
CLARA, CALIFORNIA”

BE IT ORDAINED BY THE CITY OF SANTA CLARA AS FOLLOWS:

WHEREAS, In March 2022, the City Council approved Ordinance No. 2042 adding Section

2.80.080 (“Military Equipment Policy”) to Chapter 2.80 (“Police Department”) of Title 2 (“Administration and Personnel”) of the Santa Clara City Code, to implement the requirements of California Assembly Bill 481 (AB 481), codified in California Government Code Sections 7070, et seq.;
WHEREAS, the City Council of the City of Santa Clara desires to ensure that th e Santa Clara City Code remains accurate, consistent, and aligned with the requirements of AB 481 and the corresponding provisions of the State of California Government Code; WHEREAS, California Government Code Sections 7070, 7071, and 7072 may be amended or renumbered by the State from time to time, and that updates to Santa Clara City Code Section 2.80.080 are therefore necessary to reference these statutory provisions as that section may be amended or renumbered in order to preserve clarity and legal consistency; WHEREAS, transparency and accountability are integral to the implementation of the Military Equipment Use Policy and that such accountability is required through regular review and renewal of the ordinance; WHEREAS, the City Council desires ongoing oversight by requiring an annual review of the Military Equipment Use Policy by the City Council, and by requiring the annual renewal of

Ordinance/Military Equipment Policy Page 2 of 4
the Ordinance to be by formal written Resolution; and
WHEREAS, to balance the interests of transparency, accountabil ity, and operational efficiency, the City Council deems it to be in the best interests of the City to amend Section

2.80.080 of the City Code to reference numbered State law sections and to allow annual review and approval by Resolution.

NOW THEREFORE, BE IT FURTHER ORDAINED BY THE CITY OF SANTA CLARA AS FOLLOWS:

SECTION 1: That Section 2.80.080 (entitled “Military Equipment Policy”) of Chapter 2.80 (entitled “Police Department) of Title 2 (entitled “Administration and Personnel”) of “The Code of the City of Santa Clara, California” (“SCCC”) is amended to read as follows:

“2.80.080 Military equipment policy.
(a) The City Council has made the following determinations:
(1) The military equipment inventoried and presented to the City Council is necessary because there is no reasonable alternative that can achieve the same objective of officer and civilian safety;
(2) The proposed military equipment use policy (“policy”) will safeguard the public’s welfare, safety, civil rights, and civil liberties;
(3) The equipment is reasonably cost effective compared to available alternatives that can achieve the same objective of officer and civilian safety (if any); (4) Prior military equipment use complied with the applicable equipment use policy (which included equipment now defined as military equipment) that was in effect at the time, or if prior uses did not comply with the accompanying military equipment use policy,

Ordinance/Military Equipment Policy Page 3 of 4
corrective action has been taken to remedy nonconforming uses and ensure future compliance.
(b) The Police Department has submitted a proposed policy to the City Council and has made those documents available on the Police Department’s website for at least thirty (30) days prior to the public hearing concerning the military equipment at issue. (c) The policy was considered by the City Council as an agenda item in an open session of a regular meeting, noticed in accordance with the Ralph M. Brown Act, at which public comment was permitted.
(d) The policy shall be made publicly available on the Police Department’s website for as long as the military equipment is available for use.
(e) The Police Department shall submit an annual military equipment report to the City Council, containing the information required in Government Code Section 7072 (as that section may be amended or renumbered ), and the City Council shall determine whether each type of military equipment identified in that report has complied with the standards for approval set forth in subsections (a)(1) through (a)(4) of this section. (f) The City Council shall review the ordinance codified in this section along with the annual military equipment report, and vote on whether to renew it on an annual basis at a regular meeting, by adoption of a written Resolution, in accordance with Government Code Section 7071(e)(2) (as that section may be amended or renumbered). (g) The City Council approves the use of the policy, and finds that it satisfies the requirements of Government Code Section 7070(d) (as that section may be amended or renumbered).”
SECTION 2: Ordinances Repealed. With exception of the provisions protected by the

Ordinance/Military Equipment Policy Page 4 of 4
savings clause, all ordinances (or parts of ordinances) in conflict with or inconsistent with this ordinance are hereby repealed.

SECTION 4: Effective date. This ordinance shall take effect thirty (30) days after its final adoption; however, prior to its final adoption it shall be published in accordance with the requirements of Section 808 and 812 of “The Charter of the City of Santa Clara, California.” PASSED FOR THE PURPOSE OF PUBLICATION this 16th day of January, 2026, by the following vote:

AYES: COUNCILORS:

NOES: COUNCILORS:

ABSENT: COUNCILORS:

ABSTAINED: COUNCILORS:

ATTEST: ___________________________

NORA PIMENTEL, MMC

ASSISTANT CITY CLERK

CITY OF SANTA CLARA

Attachments incorporated by reference:

None
City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
26-17580 Agenda Date: 1/27/2026

REPORT TO STADIUM AUTHORITY BOARD

SUBJECT
Action on the Santa Clara Stadium Authority Financial Status Report for Quarter Ending September 30, 2025 DEFERRED FROM DECEMBER 16, 2025

BACKGROUND
In Fiscal Year 2014/15 the Stadium Authority Board (“Board”) requested that staff prepare quarterly Santa Clara Stadium Authority (“Stadium Authority”) Financial Status Reports. These reports provide an update on the events held at Levi’s® Stadium, Stadium Authority finances, and the impact of Stadium Authority activity on the City of Santa Clara’s (“City”).

This report provides information covering the Stadium Authority’s second quarter of the 2025/26 fiscal year (“FY”), which runs from July 1, 2025 - September 30, 2025.

The Adopted Stadium Authority Budget incorporates the estimated revenues and expenses for all Stadium Authority funds. The attached Financial Status Report provides the budget to actual revenue and expense summaries for the operating, debt service, and capital funds. Analysis of the financial activity through the fiscal year measures the adherence to the budget and allows the Stadium Authority to monitor and project revenues and expenses. Any significant variances are explained in the reports.

DISCUSSION
The attached financial status report provides information covering the Stadium Authority’s second quarter (July 1, 2025 - September 30, 2025) of FY 2025/26. The report summarizes National Football League (“NFL”) and Non-NFL event activity at Levi’s® Stadium and describes the financial impact of these events on the Stadium Authority and City since FY 2014/15. The report also provides the budget to actual revenue and expense summaries for the operating, debt service, and capital funds.

Analysis of the financial activity through the fiscal year measures the adherence to the budget and allows the Stadium Authority to monitor and project revenues and expenses. Any significant variances are explained in the report.

NFL Event Revenue and Expenses
There were four NFL games held in the second quarter of FY 2025/26. Levi’s® Stadium hosted two pre-season NFL games of the 2025 season on August 9th and 23rd and two regular NFL season games of the 2025 season on September 21st and 28th which are detailed in the report. This resulted in $5.4 million in NFL ticket surcharge for the Stadium Authority and $109,000 of Senior and Youth Program Fees for the City. Public safety costs for NFL games totaled an estimated $2.4 million which will be fully reimbursed to the City by a combination of payments from ManCo and offsite parking fees that were collected.

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26-17580 Agenda Date: 1/27/2026
Non-NFL Event Revenue and Expenses
There were eight ticketed Non-NFL events and 20 special events which are detailed in the report.

The eight ticketed Non-NFL events generated an average net revenue of $703,000 per event. Table 1 below summarizes revenues and expenditures for the eight ticketed events.

Table 1
$ In Millions
Ticketed Event Revenue Expense Net
Concert 1 3.5$ 2.4$ 1.1$
Concert 2 3.6 2.6 1.0
Sporting Event 1 1.6 0.7 0.9 Concert 3 2.3 1.6 0.7
Concert 4 2.3 1.5 0.8
Concert 5 2.1 1.5 0.6
Concert 6 1.9 1.4 0.5
Sporting Event 2 0.7 0.7 - Total Ticketed Non-NFL Net Revenue to Date 18.0$ 12.4$ 5.6$ Levi's® Stadium
Ticketed Non-NFL Events Revenue and Expenditure Summary As of September 30, 2025
The Non-NFL event ticket sales generated $1.8 million in base ticket surcharge revenue from the $4 per ticket base surcharge for this period. One half of the base Non-NFL ticket surcharge was deposited into the discretionary fund in accordance with Section 12.1 of the Stadium Lease, with the remaining half being accounted for as general Stadium revenues. As part of the Buffet and Public Safety Cost Settlement Agreement, the Non-NFL Ticket Surcharge was increased to a minimum of $8 per ticket. Proceeds collected in excess of the $4 base Non-NFL ticket surcharge generated $2.6 million in additional Non-NFL ticket surcharge and was deposited in the public safety cost reserve.

Public safety costs for these events totaled an estimated $4.6 million. The City will be fully reimbursed by a combination of payments from ManCo on behalf of the Stadium Authority and offsite parking fees that were collected.

When combining ticketed and non-ticketed Non-NFL revenues to date, Table 2 below shows approximately $5.6 million in net revenue (excluding surcharge revenue) through the end of the second quarter. This is a decrease of $1.8 million from the prior year’s Non-NFL event net revenue of $7.5 million for the quarter. It should be noted the financial information provided are preliminary numbers and subject to change as additional revenues and/or expenditures are recorded.

Table 2
Levi’s Stadium
Net Revenue for Non-NFL Events
by Event Type
Historical Year-to-Date Through September 30, 2025

EVENT TYPE
No. of
Events Net Revenue
No. of
Events Net Revenue
No. of
Events Net Revenue
Ticketed Events
Concerts 5 $ 4,267,153 3 $ 4,074,498 6 $ 4,729,713 Sporting events:

Soccer 3 305,067 5 3,392,260 2 895,394
Net Revenue from Ticketed Events 8 4,572,220$ 8 7,466,758$ 8 5,625,107$ 25 903,221$ 30 1,198,148$ 20 444,832$
Other Operating Income(1)
1,271,700$ 1,029,491$ 957,254$
Other Operating Expenses(2)
(681,705)$ (1,188,951)$ (911,493)$
Total Non-NFL Net Revenue (3)
33 6,065,436$ 38 8,505,446$ 28 6,115,700$
2023/24 2025/262024/25
Net Revenue from Special Events (weddings,
corporate events, etc.)
(1) Other Operating Income are income not attributable to a specific event. Examples are interest income and reimbursements unrelated to a specific event.
(2) Other Operating Expenses are expenses not attributable to a specific event. Examples are event selling expenses, administrative expenses and miscellaneous costs.
(3) Net Revenue from Non-NFL Events does not include Non-NFL Event Ticket Surcharge.

Stadium Builder Licenses (“SBLs”)
SBLs account for 7.8% of the Stadium Authority’s annual budgeted revenue in FY 2025/26. There is a total of 67,286 currently active SBLs. Through the second quarter, since inception, the value of the active SBLs amount to $560.1 million of which $535.5 million has already been collected.

Stadium Authority Budgets
The detailed analysis of Stadium Authority budget to actual financials is provided in the attached Financial Status Report. In summary, total operating revenues were $31.7 million representing 48% of the overall budget for revenues and total operating expenses were $12.1 million or 32% of the budget. The debt service fund was able to pay down $8.8 million in debt, bringing total Stadium Authority debt down to $210.8 million. Capital expenses were $7.2 million representing 33% of the overall CIP budget.

FY 2025/26 Stadium Authority Budget Adjustments
From time to time, budget adjustments may be necessary to align revenues or expenditures to actual or unexpected activity during the course of a fiscal year, known after the adoption of the Stadium Authority Budget. On March 11, 2025, the Stadium Authority Board adopted the Santa Clara Stadium Authority FY 2025/26 Operating, Debt Service, and Capital Budget. As of the timing of the publication of this report, additional information from FY 2025/26 has resulted in recommended budget adjustments as follows:

Operating Budget:
1) Non-NFL Event Ticket Surcharge: The number of tickets sold to the Non-NFL events were higher than anticipated resulting in higher Non-NFL event ticket surcharge. Portions of the additional ticket surcharge revenue of $930,000 will be transferred to the discretionary fund reserve and the public safety cost reserve with the remaining amount being used for operations and ultimately flowing through the excess revenue waterfall to pay down the Public Safety Costs (PSC) 2024 Outstanding Balance, Transfer to the City’s General Fund, and Transfer to the Renovation/Demolition Reserve.

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26-17580 Agenda Date: 1/27/2026
2) FY 2024/25 Stadium Authority General and Administrative (“G&A”) Budget Savings: The prior year Stadium Authority G&A expenses were under budget by $1.1 million. After the close of the fiscal year, those monies are then available from the Unrestricted Fund Balance for stadium operations which ultimately will flow through the excess revenue waterfall to pay down the PSC 2024 Outstanding Balance, Transfer to the City’s General Fund, and Transfer to the Renovation/Demolition Reserve.

ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(5) in that it is an administrative activity that will not result in direct or indirect physical changes in the environment.

FISCAL IMPACT
The Stadium Authority FY 2025/26 budget appropriation is maintained at the fund level. At the end of the second quarter of FY 2024/25, spend has been within budget.

From time to time, adjustments to the budget are required to reflect new information and align budgets with actual revenues and expenses. Attachment 2 includes adjustments in the FY 2025/26 Operating Budget to adjust for additional Non-NFL event ticket surcharge revenue as well as prior year Stadium Authority G&A budget savings. The attachment reflects these budget adjustments.

COORDINATION
This report was coordinated with the Stadium Manager per section 4.6 of the Management Agreement as well as the Stadium Authority Counsel’s Office.

PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email [email protected] <mailto:[email protected]> or at the public information desk at any City of Santa Clara public library.

RECOMMENDATION

1. Note and file the Santa Clara Stadium Authority Financial Status Report for the Quarter Ending September 30, 2025; and

2. Approve the FY 2025/26 Budget Amendments in the Operating Budget in the amount of $930,000 to reflect increases in projected revenues and expenses.

Reviewed by: Kenn Lee, Treasurer
Approved by: Jovan D. Grogan, Executive Director

ATTACHMENTS

1. SCSA Financial Status Report for the Quarter Ending September 30, 2025

2. FY 2025/26 Budget Amendments
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SCSA
Santa Clara Stadium Authority

SANTA CLARA

STADIUM AUTHORITY

FINANCIAL STATUS REPORT
Quarter Ending September 30, 2025
December 16, 2025
'==: WELCOME TO ==a
LEVI ' S® STADIUM
,_
Table of Contents
Introduction ................................................................................................................................. 2 NFL Events ................................................................................................................................. 3 Non-NFL Events ......................................................................................................................... 6 Discretionary Fund.................................................................................................................... 11 Public Safety Cost Reserve....................................................................................................... 11 Stadium Builder Licenses.......................................................................................................... 11 Santa Clara Stadium Authority Budget Status Reports.............................................................. 14 Operating Budget .................................................................................................................. 14 Operating Budget – Recommended Budget Adjustments...................................................... 16 Debt Service Budget.............................................................................................................. 18 Capital Expense (Cap Ex) Budget ......................................................................................... 21 City of Santa Clara Net General Fund Impact ........................................................................... 23 Public Safety and Administrative Cost Reimbursement ......................................................... 23 Rents and Senior and Youth Fee........................................................................................... 24 Other Revenue Impacts......................................................................................................... 24 Glossary.................................................................................................................................... 25 Appendix................................................................................................................................... 30 1 Introduction
This Santa Clara Stadium Authority (“Stadium Authority”) Financial Status Report provides information covering the second quarter of the Stadium Authority’s 2025/26 fiscal year (FY) which ended on September 30, 2025. Comparative data from prior fiscal years is also included.

In addition to these quarterly reports, the Stadium Authority produces annual financial statements. The FY 2024/25 financial statements were audited by an external audit firm and presented to the Stadium Authority’s Audit Committee (Audit Committee) on September 22, 2025 and submitted to the Stadium Authority Board (Board) to note and file the financial statements on October 21, 2025. The financial statements are published on the Stadium Authority’s website.

The Stadium Authority also prepares a detailed budget prior to the beginning of each fiscal year. The FY 2025/26 budget was adopted by the Board on March 11, 2025.

Stadium Authority finances are structured so that the City of Santa Clara (City) is not liable for the debts or obligations of the Stadium Authority. All services provided by the City, including administrative and public safety, to the Forty Niners Stadium Management Company, LLC (Stadium Manager) or the Stadium Authority are fully reimbursed.

Methodology
Information provided in this report was based in part on documentation submitted by the Stadium Manager. Specifically, National Football League (NFL) and Non-NFL event statistics and financial information relating to the Stadium Manager expenses are provided by the Stadium Manager. Stadium Authority staff has access to select financial information submitted by the Stadium Manager provided through the Financial Management System and event reports received for Non-NFL events. These reports are received 45 days after each event for events with attendance greater than 25,000. More detailed documents are received within 90 days after the close of the quarter. For all other financial information, a full detailed review and/or audit of source documentation has not been completed by the Stadium Authority for this report.

The information provided reflects the best known and available at the time of the writing of this report and is subject to further revision and review. Revisions may occur based on the timing of revenue and expenditure activity for events in this quarter that continue beyond the timing of this report. Consequently, the Board’s notation and filing of this report should not be considered an approval of the accuracy of the information in the report. 2 NFL Events
This section provides year to date and comparative data for NFL games categorized as pre-season and regular season games.

The San Francisco Forty-Niners (49ers) played a total of four NFL games (two pre-season games and two regular season games) at Levi’s® Stadium through quarter ending September 30, 2025. There was a total of 271,813 tickets sold to these NFL games, an average of 67,953 per game. This is down by 1,486 or 2% when compared to the same period in the prior fiscal year. The ticket sales resulted in $5.4 million in NFL ticket surcharge revenue (10% of ticket sales) to the Stadium Authority. The average NFL ticket surcharge revenue was $1.3 million per game in the current year which is up by $331,000 or 33% from the same period in the prior fiscal year. A total of $109,000 of Senior and Youth Program Fees, which is based on $0.40 per NFL ticket sold, were collected through the end of the second quarter of the fiscal year. These fees were transferred to the City’s General Fund in support of such programs.

A total of 28,509 cars were parked in the permitted offsite parking lots generating $198,000 in offsite parking fees derived from the $6.94 per parking space for all NFL events. The Tasman parking lot had a total of 1,183 parked cars and generated an additional $6,000 for the General Fund through the end of the second quarter of the fiscal year. The overall average number of cars parked per game in the permitted offsite lots and the Tasman lots went down by 460 or 6% when compared to the prior fiscal year.

There was $2.4 million of NFL event public safety costs in the current reporting period which is an average of $612,000 per game. This is an increase from the prior year average (through September 30, 2024) of $111,000. Of the $2.4 million NFL event public safety costs, $1.8 million or 75% are direct City costs, $376,000 or 15% are outside agency costs and $231,000 are other miscellaneous public safety costs. Of these costs, $198,000 were covered by the offsite parking fee. The remaining $2.3 million was invoiced to the Stadium Manager.

Statistics for the NFL games held at Levi’s® Stadium in the first two quarters of the 2025/26 fiscal year are shown in Table 1 and comparative data from the last five years of operations can be found in Table 2. Additional historical data can be found in the Appendix.
3 Table 1
Levi's® Stadium
2025/26 NFL Event Statistics
As of September 30, 2025
Game 1 vs
Broncos
Game 2 vs
Chargers
Game 3 vs
Cardinals
Game 4 vs
Jaguars 2025/26
08/09/25 08/23/25 09/21/25 09/28/25 YTD Total
No. of Tickets Sold 66,706 67,638 68,680 68,789 271,813 NFL Ticket Surcharge 1,076,207 $ 1,084,643 $ 1,605,907 $ 1,603,214 $ 5,369,971 $ Senior/Youth Program Fees 26,682 $ 27,055 $ 27,472 $ 27,516 $ 108,725 $ Cars Parked at Offsite Lots 5,971 6,450 7,983 8,105 28,509 City Offsite Parking Fee 41,439 $ 44,763 $ 55,402 $ 56,249 $ 197,852 $ Cars Parked on Tasman Lots 223 331 241 388 1,183
City Tasman Lot Parking Fee 1,115 $ 1,655 $ 1,205 $ 1,940 $ 5,915 $ Stadium Public Safety Costs 598,064 $ 617,904 $ 635,023 $ 598,414 $ 2,449,405 $ Less: Offsite Parking Fee Credit (41,439) $ (44,763) $ (55,402) $ (56,249) $ (197,852) $ Reimbursable Stadium Public Safety Costs 556,626 $ 573,141 $ 579,621 $ 542,165 $ 2,251,552 $ Amount Reimbursed 539,814 $ 560,550 $ -$ -$ 1,100,365 $ 4 Table 2
Levi's® Stadium
Historical NFL Event Statistics
2021/22 Q2 2022/23 Q2 2023/24 Q2 2024/25 Q2 2025/26 Q2
Total Total Total Total Total
No. of NFL Events 3 2 3 3 4
No. of Tickets Sold 199,451 136,506 198,037 208,318 271,813 NFL Ticket Surcharge 2,651,401 $ 1,540,422 $ 2,695,077 $ 3,034,147 $ 5,369,971 $ Senior/Youth Program Fees 69,807 $ 47,777 $ 69,313 $ 72,911 $ 108,725 $ Cars Parked at Offsite Lots 21,678 11,703 17,847 23,649 28,509 City Offsite Parking Fee 128,117 $ 71,739 $ 114,935 $ 158,685 $ 197,852 $ Cars Parked on Tasman Lots 1,180 - - - 1,183
Cars Parked on Golf Course - - - - -
City Tasman Lot and Golf Course Parking Fee 5,900 $ -$ -$ -$ 5,915 $ Stadium Public Safety Costs 1,855,191 $ 870,925 $ 1,422,677 $ 1,504,992 $ 2,449,405 $ Golf Course Public Safety Costs -$ -$ -$ -$ -$
Subtotal Event Public Safety Costs 1,855,191 $ 870,925 $ 1,422,677 $ 1,504,992 $ 2,449,405 $ Less: Offsite Parking Fee Credit (128,117) $ (71,739) $ (114,935) $ (158,685) $ (197,852) $ Reimbursable Stadium Public Safety Costs 1,727,074 $ 799,185 $ 1,307,742 $ 1,346,307 $ 2,251,552 $ 5 Non-NFL Events
This section provides year to date and comparative data for Non-NFL events categorized as events ranging from high school and college football games, international soccer matches, concerts, wedding fairs, and special events. During the current reporting period, there were a total of 445,016 tickets sold for the eight ticketed Non-NFL events that were held, resulting in $1.8 million Non-NFL event base ticket surcharge revenue (from the $4 per ticket base surcharge for Non-NFL events) and $2.6 million in additional ticket surcharge revenue, derived from the additional proceeds exceeding the $4 per ticket base surcharge. This is an increase in base ticket surcharge revenue of $386,000 or 27.7% over the same period in the prior year due to larger scale Non-NFL events taking place in the current period. It is also the first year that additional surcharge revenue has been collected.

Stadium Manager reports that there were also 20 smaller special events held at Levi’s® Stadium which is 10 events less than the same period of the prior fiscal year. The attendance at these events also decreased from 15,565 in the prior period to 4,521 in the current year, a 71% decrease. Examples of these special events include corporate events of various sizes, weddings, holiday parties, high school dances, etc.

In correlation with the Non-NFL events held during the current reporting period, there were 42,870 cars parked at offsite lots and the City earned a total of $295,000 in related offsite parking fees, which is derived from the $6.71 per parking space fee for events taking place prior to July 2025 and $6.94 per parking space for all events thereafter. The revenues earned from this offsite parking fee supports public safety costs for Non-NFL events.

Total Non-NFL event public safety costs were $4.6 million, an increase of $1.5 million from the prior year. As noted previously, this increase in cost is due to larger scale events being held in the current year when compared to the prior year. Of these costs, $295,000 was covered by the offsite parking fee. The remaining $4.3 million was invoiced to the Stadium Manager of which $2.3 million has been reimbursed to the City.

Statistics for FY 2025/26 events are shown in Table 3 and comparative data from the last five years of operations are shown in Table 4.
6 Table 3
Levi's® Stadium
FY 2024/25 Non-NFL Event Statistics
As of September 30, 2025
No. of Scanned Attendees
No. of Tickets Sold
Non-NFL Base Ticket Surcharge
Non-NFL Additonal Ticket Surcharge
Total Ticket Surcharge
No. of Non-NFL Special Events
Non-NFL Special Event Attendees
Cars Parked at Offsite Lots
City Offsite Parking Fee
Stadium Public Safety Costs
Less: Offsite Parking Fee Credit
Reimbursable Public Safety Costs
Amount Reimbursed
$
$
Concert 1
Day 1
06/20/25
55,157
56,460
225,840
338,760
$
$
Concert 1
Day 2
06/22/25
55,828
56,703
226,812
340,218
Soccer Match 1
07/02/25
64,857
65,348
$ 261,392
$ 392,088
$
$
Concert 2
Day 1
07/08/25
47,125
48,046
192,184
288,276
$
$
Concert 2
Day 2
07/09/25
51,288
51,375
205,500
308,250
$
$
Concert 3
Day 1
08/01/25
58,172
59,012
236,048
354,072
$
$
Concert 3
Day 2
08/02/25
61,083
61,205
244,820
367,230
Soccer Match 2
09/13/25
44,451
46,867
$ 187,468
$ 187,468
$ 564,600 $ 567,030 $ 653,480 $ 480,460 $ 513,750 $ 590,120 $ 612,050 $ 374,936 $
$
$
4,628
31,054
635,256
(31,054)
$
$
$
5,501
36,912
609,095
(36,912)
6,457
$ 44,812
$ 614,884
$ (44,812)
$
$
$
5,002
34,714
528,133
(34,714)
$
$
$
4,611
32,000
517,962
(32,000)
$
$
$
5,450
37,823
624,908
(37,823)
$
$
$
6,809
47,254
617,488
(47,254)
4,412
$ 30,619
$ 456,654
$ (30,619)
$ 604,202 $ 572,184 $ 570,072 $ 493,419 $ 485,962 $ 587,085 $ 570,234 $ 426,035 $ 577,967 $ 465,050 $ 467,412 $ 411,374 $ 396,573 $ - $ - $ - 7 Table 4
Levi's® Stadium
Historical Non-NFL Event Statistics
2021/22 Q2 2022/23 Q2 2023/24 Q2 2024/25 Q2 2025/26 Q2
Total Total Total Total Total
No. of Non-NFL Ticketed Events - 5 8 8 8
No. of Tickets Sold - 237,386 397,856 348,480 445,016
Non-NFL Base Ticket Surcharge -$ 954,848 $ 1,591,424 $ 1,393,920 $ 1,780,064 $ Non-NFL Additonal Ticket Surcharge (1)
-$ -$ -$ -$ 2,576,362 $
Total Ticket Surcharge -$ 954,848 $ 1,591,424 $ 1,393,920 $ 4,356,426 $ No. of Non-NFL Special Events - 31 25 30 20
Non-NFL Special Event Attendees - 14,775 14,546 15,656 4,521 Cars Parked at Offsite Lots - 20,388 38,716 37,341 42,870 City Offsite Parking Fee -$ 123,732 $ 247,937 $ 246,495 $ 295,188 $ Stadium Public Safety Costs -$ $2,014,823 3,205,398 $ 3,057,207 $ 4,604,380 $ Less: Offsite Parking Fee Credit -$ (143,133) $ (247,937) $ (246,495) $ (295,188) $ Reimbursable Public Safety Costs -$ 1,871,690 $ 2,957,461 $ 2,810,712 $ 4,309,192 $ (1) The First Amendment to Amended and Restated Lease Agreement increased the ticket surcharge to a minimum of $8 per ticket starting in FY 2025/26. The surcharge exceeding the $4 per ticket base is shown in the table as additional ticket surcharge.

Table 5 summarizes ticketed Non-NFL revenues and expenditures by event. There were 8 ticketed Non-NFL events held in FY 2025/26 and generated an average net revenue of $703,000 per event. The inclusion of this information is to provide a greater level of transparency and provide the overall financial results of the Non-NFL events.

Table 5
Levi's® Stadium
Ticketed Non-NFL Events Revenue and Expenditure Summary As of September 30, 2025
$ In Millions
Ticketed Event Revenue Expense Net
Concert 1 $ 3.5 $ 2.4 $ 1.1
Concert 2 3.6 2.6 1.0
Sporting Event 1 1.6 0.7 0.9
Concert 3 2.3 1.6 0.7
Concert 4 2.3 1.5 0.8
Concert 5 2.1 1.5 0.6
Concert 6 1.9 1.4 0.5
Sporting Event 2 0.7 0.7 -
Total Ticketed Non-NFL Net Revenue to Date $ 18.0 $ 12.4 $ 5.6 Table 6 and 7 show Non-NFL net revenue by event type and event revenue and expenses 8 by category. For FY 2025/26, the Stadium Manager had projected Non-NFL events to result in estimated net revenues of $5.3 million, as cited in the FY 2025/26 Adopted Stadium Authority Budget. In the second quarter of FY 2025/26, ticketed events and non- ticketed special events contributed $5.6 million and $445,000 in net revenues, respectively. There was also additional interest income of $957,000 earned on Non-NFL events cash reserves offset by $911,000 of non-event specific other expenses.

Stadium Manager reported a net revenue of $6.1 million for the current reporting period.

This is decrease of $2.4 million from the prior year’s Non-NFL event net revenue of $8.5 million. The main driver for the decrease in net revenue from ticketed events is the reallocation of additional ticket surcharge previously reported to Non-NFL event revenue and now allocated to the Public Safety Cost Reserve. The other factor affecting Non- NFL event net revenue is related to the special events. As noted above, there were 10 fewer special events in the current reporting period when compared to the same time last year, a 30% decline. The reason for the decline in the number of events is because the stadium underwent significant upgrades in preparation for Super Bowl LX and FIFA World Cup 2026 which impacted the Stadium Manager’s ability to host as many events as the prior year.

In response to feedback at the previous Board meeting, the Non-NFL event ticket surcharge revenue data and respective transfers to the Discretionary Fund and Public Safety Cost Reserve has been added to Table 7.

Table 6
Levi's Stadium
Net Revenue for Non-NFL Events
by Event Type
Historical Year-to-Date through September 30, 2025

EVENT TYPE
No. of
Events Net Revenue
No. of
Events Net Revenue
No. of
Events Net Revenue
No. of
Events Net Revenue
No. of
Events Net Revenue
Ticketed Events
Concerts 0 -$ 4 $ 2,986,483 5 $ 4,267,153 3 $ 4,074,498 6 $ 4,729,713 Sporting events:

Football (non-NFL) 0 - 0 - 0 - 0 - 0 -
Soccer 0 - 1 231,987 3 305,067 5 3,392,260 2 895,394
Miscellaneous events 0 - 0 - 0 - 0 - 0 -
Net Revenue from Ticketed Events 0 -$ 5 3,218,470 $ 8 4,572,220 $ 8 7,466,758 $ 8 5,625,107 $ Subtotal Ticketed Events - Other Expenses -$ -$ -$ -$ -$ 6 96,187 $ 31 1,350,957 $ 25 903,221 $ 30 1,198,148 $ 20 444,832 $ Other Operating Income -$ 63,987 $ 1,271,700 $ 1,029,491 $ 957,254 $ Other Operating Expenses -$ (601,530) $ (681,705) $ (1,188,951) $ (911,493) $ Total Non-NFL Net Revenue 6 96,187 $ 36 4,031,884 $ 33 6,065,436 $ 38 8,505,446 $ 28 6,115,700 $ Net Revenue from Special Events (weddings,
corporate events, etc.)
2023/24 2025/26 2021/22 2022/23 2024/25
(1) Other Operating Income are income not attributable to a specific event. Examples are interest income and reimbursements unrelated to a specific event.

Other Operating Expenses are expenses not attributable to a specific event. Examples are event selling expenses, administrative expenses and miscellaneous costs.

Net Revenue from Non-NFL Events does not include Non-NFL Event Ticket Surcharge. 9 Table 7
Levi's® Stadium
Non-NFL Event Results by Category
As of September 30, 2025
REVENUE:

Special Event Revenue
Ticket Platform Fees
Suite Ticket Revenue
Parking
Food & Beverage - Ticketed Events
Food & Beverage - Special Events
Miscellaneous(1)
2025/26
YTD Total
$ 1,292,432
6,875,097
675,554
2,740,268
5,536,589
128,281
3,105,406
Total Revenue $ 20,353,627
EXPENSE:

Public Safety/Security
Event Staff
Parking
Catering - Special Events
General Event Related Expenses
Expense Reimbursement from Event Licensee
(2)
Miscellaneous(3)
$ 6,694,388
4,680,802
2,539,902
719,994
4,516,930
(5,825,583)
911,494
Total Expense $ 14,237,927
Subtotal Net Revenue $ 6,115,700
TICKET SURCHARGE REVENUE:

Base Ticket Surcharge ($4/ticket)
Additional Ticket Surcharge (>$4/ticket)
$ 1,780,064
2,576,362
Subtotal Ticket Surcharge $ 4,356,426
Total Net Revenue & Ticket Surcharge $ 10,472,126
TRANSFERS OF TICKET SURCHARGE REVENUE:

Transfer to Discretionary Fund
Transfer to Public Safety Cost Reserve
$
$
890,032
2,576,362
(1) Includes venue rental fees, net merchandise sales, interest income, and other revenues. (2) Expenses incurred for Non-NFL events can either be the responsibility of the SCSA or the Event Licensee depending on the nature of the expense. This figure represents the total expenses incurred by the SCSA that were the responsibilty of the Event Licensee for which the SCSA has been reimbursed, net of the Event Licensee's share of ancillary revenues. (3) Includes catered events department staff costs, non-event specific staff costs, and other expenses. 10 Discretionary Fund
The Discretionary Fund is funded by revenue equal to $2 of the base Non-NFL event ticket surcharge. The eight ticketed Non-NFL event contributed $890,000 to the Discretionary Fund in the current period. This is based on the tickets sold provided by the Stadium Manager.

Table 8 shows the revenues and expenses in the Discretionary Fund for the last five years. Additional historical data can be found in the Appendix. The balance at the end of this reporting period was $1.6 million.

Table 8
Discretionary Fund Reserve
Fiscal Year
Beginning
Balance Revenue Expenses Ending Balance
2021/22 $ 2,327,832 $ - $ (18) $ 2,327,850
2022/23 2,327,850 639,896 1,300,051 1,667,695
2023/24 1,667,695 796,628 - 2,464,323
2024/25 2,464,323 696,960 2,446,508 714,775
2025/26 714,775 890,032 - 1,604,807
Public Safety Cost Reserve
The Public Safety Cost Reserve is funded by proceeds from the additional Non-NFL ticket surcharge that exceed the $4 per ticket base ticket surcharge. During the current period, eight ticketed Non-NFL event contributed $2.6 million to the Public Safety Cost Reserve.

This is based on the tickets sold provided by the Stadium Manager.

Table 9 shows revenues in the Public Safety Cost Reserve. This is the first-year additional surcharge revenue has been collected.

Table 9
Public Safety Cost Reserve
Fiscal Year
Beginning
Balance Revenue Expenses Ending Balance
2025/26 $ - $ 2,576,362 $ - $ 2,576,362
Stadium Builder Licenses
The total principal value of currently active Stadium Builder Licenses (“SBLs”) is $560 million and, as of September 30, 2025, 95.6% of the total principal value of all SBLs sold (i.e., $535.5 million) had been collected. Payment for the sale of SBLs are financed over 10 years.

SBL holders that finance their purchase pay an annual interest rate of 8.5% and payments 11 are due by March 1st each year. The majority of SBL holders make their payments on time. For those that do not pay on time, SBL service staff, working for Stadium Manager on the Stadium Authority’s behalf, contact the SBL holders and attempt to collect the full amounts owed. Ultimately, a SBL can be defaulted for non-payment. Once a SBL is defaulted, the SBL holder in default loses their right to buy season tickets as well as their priority rights to tickets to Non-NFL events, and forfeits any money they had invested in the SBL. Defaulted SBLs are then available for resale.

When SBL holders do not purchase NFL season tickets, their SBL is not defaulted, however they lose exclusive rights to their seats and their seats may be sold to another SBL holder. This results in cases where a seat may have more than one SBL associated with it and why there are currently more active SBLs than there are available SBL seats.

If the original SBL holder decides to purchase season tickets in the future, they can relocate to a new seat in the same or higher price level, subject to availability. If the relocation results in a change in price level, they need to pay for the difference between their original SBL and the new one. If they chose not to relocate, they must wait for their seat to be available again before they can purchase NFL season tickets.

There is a total of 67,286 currently active SBLs. This is a decrease of 268 from the total active SBLs at the end of the prior fiscal year (March 31, 2025). The main reasons for the decrease are due to SBL defaults offset by sale of new SBLs and the customer seat relocation program. The customer seat relocation program allows customers to trade in their SBLs in return for others in a different location as long as the total face value of the new seats is equal to or greater than the original seats.

During the current reporting period, 420 SBLs were sold for a total face value of $3.2 million. The customer seat relocation program resulted in an increase of $692,000 to the SBL face value, while netting 257 more SBLs. There were also 945 SBLs defaulted during the quarter with a face value of $5.9 million.

Additional details regarding currently active SBLs are noted in Table 10. 12 Table 10
Santa Clara Stadium Authority
Currently Active Stadium Builder License (SBL) Summary (1) Through September 30, 2025
Seat Value
SBL Seats
Available
SBL Seats Sold
as of 3/31/25
New SBL
Sales
Net SBL
Relocations
SBL
Defaults
SBL Seats
Sold SBL Value SBL Collected % SBL Principal
Collected
$ 141,392 100 100 - - - 100 $ 14,082,625 $ 14,028,762 99.6% $ 80,000 942 942 - - - 942 $ 75,360,000 $ 74,714,925 99.1% $ 40,000 2 2 - - - 2 $ 80,000 $ 79,600 99.5%
$ 30,000 4,945 4,684 24 3 (41) 4,670 $ 140,100,000 $ 135,153,164 96.5% $ 20,000 3,475 3,083 35 7 (34) 3,091 $ 61,820,000 $ 57,319,087 92.7% $ 17,500 90 87 - - - 87 $ 1,522,500 $ 1,190,630 78.2%
$ 15,000 7 7 - - - 7 $ 105,000 $ 105,000 100.0%
$ 12,000 2,163 2,198 2 3 (37) 2,166 $ 25,992,000 $ 24,886,008 95.7% $ 10,000 7 7 - - - 7 $ 70,000 $ 69,915 99.9%
$ 6,000 20,656 21,023 136 - (225) 20,934 $ 125,604,000 $ 120,510,966 95.9% $ 5,000 14,311 14,503 150 (20) (341) 14,292 $ 71,460,000 $ 65,853,537 92.2% $ 4,000 916 927 - (1) (1) 925 $ 3,700,000 $ 3,684,157 99.6% $ 3,000 88 89 - - - 89 $ 267,000 $ 264,863 99.2%
$ 2,500 36 40 - - - 40 $ 100,000 $ 99,998 100.0%
$ 2,000 18,392 19,829 73 265 (266) 19,901 $ 39,802,000 $ 37,463,292 94.1% $ 1,000 26 33 - - - 33 $ 33,000 $ 32,973 99.9%
66,156 67,554 420 257 (945) 67,286 560,098,125 $ 535,456,877 $ 95.6% Total Plus: Interest on financed SBLs $ 67,393,473
Total Principal & Interest $ 602,850,350
(1) This table does not include $39.58 million that has been collected life-to-date from defaulted SBL holders. 13 Santa Clara Stadium Authority Budget Status Reports
Operating Budget
With 50% of the fiscal year complete, total operating revenues for the second quarter of the 2025/26 Fiscal Year were $31.7 million representing 48% of the overall budget for revenues. During the current reporting period, the Stadium Authority collected $3.4 million in SBL proceeds or 66% of what was budgeted. All SBL proceeds are to be transferred to the debt service fund per applicable loan agreements. Stadium Authority also recognized $12.4 million in rent from Forty Niners SC Stadium Company, LLC (StadCo), $4 million in Non-NFL ticket surcharge, $4 million in Naming Rights revenue and $217,000 in sponsorship (STR) revenue all of which are expected to meet or exceed budget this fiscal year.

Total Operating expenses were $12.1 million, or 32% of the annual budget. Shared Stadium Manager expenses were at 49% of the budget, or $6.9 million of the $14 million budgeted amount and SBL Sales and Service expenses were 50% of the budget or $1.2 million. The Stadium Authority pays for all utility costs from February 1st through July 31st and the tenant (StadCo) pays for utility costs from August 1st through January 31st (Tenant Season). Therefore, utility costs are 67% of the budget for the year, or $1.2 million. The current period covers 67% (four out of the six months) that the Stadium Authority is responsible for utility costs. Lastly, Stadium Authority G&A costs were tracking below budgeted levels at $1.3 million or 27% of the budget.

Additional details are shown in Table 11.
14 Table 11
Santa Clara Stadium Authority
Operating Budget Status Report
For the Period Ending September 30, 2025 and 2024
Amended(1)
Period Ending September 30, 2025
Budget to
YTD Actual % Final
Period Ending September 30, 2024
Budget to
YTD Actual %
Budget Actuals Difference Received Budget Actuals Difference Received Beginning Fund Balance
Discretionary Fund Reserve
Legal Contingency Reserve - Buffet Costs
Legal Contingency Reserve - Public Safety Costs
Operating Reserve
Renovation/Demolition Reserve
Stadium Funding Trust Reserve
Unrestricted
Total Beginning Fund Balance
$
$
714,775 $ 714,775
- -
- -
26,878,328 26,878,328
43,771,643 43,771,643
3,898,514 3,898,514
14,643,276 14,643,276
89,906,536 $ 89,906,536
$
$
-
-
-
-
-
-
-
-
NA
NA
NA
NA
NA
NA
NA
NA
$
$
2,464,323 $ 2,464,323
3,321,116 3,321,116
7,324,722 7,324,722
26,095,478 26,095,478
31,440,735 31,440,735
3,611,041 3,611,041
15,915,719 15,915,719
90,173,134 $ 90,173,134
$
$
-
-
-
-
-
-
-
-
NA
NA
NA
NA
NA
NA
NA
NA
Revenue
NFL Ticket Surcharge
SBL Proceeds
Interest
Net Revenues from Non-NFL Events
Naming Rights
Sponsorship Revenue (STR)
Rent
Senior & Youth Program Fees
Non-NFL Event Ticket Surcharge
Non-NFL Events PSC Depreciation Reimbursement
$ 15,034,000 $ 5,369,971 $ 9,664,029
5,156,000 3,380,978 1,775,022
3,421,000 2,299,610 1,121,390
5,300,000 - 5,300,000
8,065,000 3,972,751 4,092,249
722,000 216,621 505,379
24,762,000 12,381,000 12,381,000
270,000 108,725 161,275
3,426,000 3,982,986 (556,986)
89,000 - 89,000
36%
66%
67%
0%
49%
30%
50%
40%
116%
0%
$ 14,595,000 $ 3,034,073 $ 11,560,927
7,969,000 4,025,064 3,943,936
5,435,000 2,858,112 2,576,888
9,250,000 - 9,250,000
7,830,000 - 7,830,000
519,000 319,015 199,985
24,762,000 13,756,000 11,006,000
279,000 72,911 206,089
1,149,000 1,393,920 (244,920)
- - -
21%
51%
53%
0%
0%
61%
56%
26%
121%
NA
Other Revenue - 16,437 (16,437) NA - - - NA
Total Revenue 66,245,000 $ 31,729,079 $ 34,515,921 $ 48% 71,788,000 $ 25,459,095 $ 46,328,905 $ 35% Total Source of Funds $ 156,151,536 $ 121,635,615 $ 34,515,921 78% $ 161,961,134 $ 115,632,229 $ 46,328,905 71% Expenses
Shared Stadium Manager Expenses
Stadium Operations
Engineering
Guest Services
Groundskeeping
Security
Insurance
Stadium Management Fee
$
Amended(1)
Budget
3,489,000
3,752,000
486,000
550,000
1,905,000
3,530,000
277,000
$
YTD
Actuals
1,744,534
1,875,886
242,812
274,912
952,470
1,764,898
1 $
Budget to
Actual
Difference
1,744,466
1,876,114
243,188
275,088
952,530
1,765,102
276,999
%
Used
50%
50%
50%
50%
50%
50%
0%
$
$
$
$
$
$
Final
Budget
3,384,000
3,935,000
621,000
316,000
1,602,000
3,427,000
533,000
13,818,000
2,611,000
900,000
279,000
1,000,000
11,450,000
250,000
1,711,000
172,000
4,288,000
136,000
748,000
2,312,000
9,487,000
6,166,000
41,510,000
55,328,000
17,471,000
4,032,000
$
$
$
$
$
$
YTD
Actuals
1,691,977
1,967,609
310,278
158,244
800,830
1,713,493
-
6,642,431
1,575,502
-
72,911
1,000,000
-
-
991,921
137,197
1,472,431
48,213
373,888
-
-
-
5,672,063
12,314,494
4,816,409
-
$
$
$
$
$
$
Budget to
Actual
Difference
1,692,023
1,967,391
310,722
157,756
801,170
1,713,507
533,000
7,175,569
1,035,498
900,000
206,089
-
11,450,000
250,000
719,079
34,803
2,815,569
87,787
374,112
-
9,487,000
6,166,000
33,525,937
40,701,506
12,654,591
4,032,000
%
Used
50%
50%
50%
50%
50%
50%
0%
48%
60%
0%
26%
100%
0%
0%
58%
80%
34%
35%
50%
0%
0%
0%
14%
22%
28%
0%
Shared Stadium Mngr Exps Subtotal
Other Operating Expenses
SBL Sales and Service
Buffet Costs
Senior & Youth Fees (paid to City)
Ground Rent (paid to City)
Performance Rent (paid to City)
Discretionary Fund Expense
Utilities
Use of StadCo Tenant Improvements
Stadium Authority G&A
Naming Rights Expense
Other Expenses
PSC Over Threshold
PSC 2024 Outstanding Balance
Transfer to City General Fund from Excess Rev
Other Operating Expenses Subtotal
Total Expenses
Transfers Out
Debt Service
Capital Expenditures Reserve
$
$
enues
$
$
$
13,989,000
2,324,000
927,000
270,000
1,000,000
2,150,000
250,000
1,796,000
106,000
4,687,000
1,724,000
763,000
2,143,000
2,972,000
2,972,000
24,084,000
38,073,000
17,646,000
5,153,000
$
$
$
$
$
6,855,513
1,161,770
-
108,725
1,000,000
-
-
1,197,440
92,554
1,260,456
49,659
381,859
-
-
-
5,252,463
12,107,976
4,620,456
-
$
$
$
$
$
7,133,487
1,162,230
927,000
161,275
-
2,150,000
250,000
598,560
13,446
3,426,544
1,674,341
381,141
2,143,000
2,972,000
2,972,000
18,831,537
25,965,024
13,025,544
5,153,000
49%
50%
0%
40%
100%
0%
0%
67%
87%
27%
3%
50%
0%
0%
0%
22%
32%
26%
0%
CapEx Reserve - Levi's Naming Rights - - - NA 1,575,000 - 1,575,000 0% Total Transfers Out 22,799,000 $ 4,620,456 $ 18,178,544 $ 20% 23,078,000 $ 4,816,409 $ 18,261,591 $ 21% Ending Fund Balance
Discretionary Fund Reserve $ 1,045,775 $
Operating Reserve 27,684,328
Public Safety Cost Reserve -
Renovation/Demolition Reserve 49,714,643
Stadium Funding Trust Reserve 7,604,002
Unrestricted 9,230,788
Total Ending Fund Balance $ 95,279,536 $
1,604,807 $
26,878,328
2,576,362
43,771,643
603,216
29,472,827
104,907,183 $
(559,032)
806,000
(2,576,362)
5,943,000
7,000,786
(20,242,039)
(9,627,647)
NA
NA
NA
NA
NA
NA
NA
$
$
477,323 $
26,878,478
-
43,772,576
5,750,645
6,676,112
83,555,134 $
3,161,283
26,095,478
-
31,440,735
14,595,955
23,207,875
98,501,326
$
$
(2,683,960)
783,000
-
12,331,841
(8,845,310)
(16,531,763)
(14,946,192)
NA
NA
NA
NA
NA
NA
NA
Total Use of Funds $ 156,151,536 $
(1)Adjustments include previously approved budget amendments through October 21, 2025 121,635,615 $ 34,515,921 78% $ 161,961,134 $ 115,632,229 $ 44,016,905 71% 15 Operating Budget – Recommended Budget Adjustments
From time to time, budget adjustments may be necessary to align revenues or expenditures to actual or unexpected activity during the course of a fiscal year, known after the adoption of the Stadium Authority Budget.

On March 11, 2025, the Stadium Authority Board adopted the Santa Clara Stadium Authority FY 2025/26 Operating, Debt Service, and Capital Budget. The following budget adjustments are recommended to recognize higher than anticipated Non-NFL event ticket surcharge and FY 2024/25 Stadium Authority General and Administrative (G&A) budget savings available for stadium operations:
1) Non-NFL Event Ticket Surcharge: The number of tickets sold to the Non-NFL events were higher than anticipated resulting in higher Non-NFL event ticket surcharge.

Portions of the additional ticket surcharge revenue of $930,000 will be transferred to the discretionary fund reserve and the public safety cost reserve with the remaining amount being used for operations and ultimately flowing through the excess revenue waterfall to pay down the Public Safety Costs (PSC) 2024 Outstanding Balance, Transfer to the City’s General Fund, and Transfer to the Renovation/Demolition Reserve.
2) FY 2024/25 Stadium Authority G&A Budget Savings: The prior year Stadium Authority G&A expenses were under budget by $1.1 million. After the close of the fiscal year, those monies are then available from the Unrestricted Fund Balance for stadium operations which ultimately will flow through the excess revenue waterfall to pay down the PSC 2024 Outstanding Balance, Transfer to the City’s General Fund, and Transfer to the Renovation/Demolition Reserve.

Additional details are shown in Table 12
Table 12
Santa Clara Stadium Authority
2025/26 Operating Budget Adjustment
Item
#
Line Item Source of
Funds
Use of
Funds
Explanation
1 1
Non-NFL Event Ticket
Surcharge
Discretionary Fund
Reserve
$930,000
$309,000
This action increases the Non-
NFL Event Ticket Surcharge
from $3,426,000 to $4,356,000
as a result of higher Non-NFL
event ticket sales.

This action increases the
Discretionary Fund Reserve
from $1,045,775 to $1,354,775
as a result of higher Non-NFL
event ticket sales.
1 Public Safety Cost
Reserve
$433,000 This action increases the
Public Safety Cost Reserve
from $0 to $433,000 as a result
16 of higher Non-NFL event ticket
sales.
1 Public Safety Cost
(PSC) 2024
Outstanding Balance
$47,000 This action increases the PSC
2024 Outstanding Balance
from $2,972,000 to $3,019,000
as a result of higher Non-NFL
event ticket sales.
1 Transfer to City General
Fund from Excess
Revenues
$47,000 This action increases the
Transfer to City General Fund
from Excess Revenues from
$2,972,000 to $3,019,000 as a
result of higher Non-NFL event
ticket sales.
1 Renovation/Demolition
Reserve
$94,000 This action increases the
Renovation/Demolition
Reserve from $49,714,643 to
$49,808,643 as a result of
higher Non-NFL event ticket
sales.
2 Unrestricted Fund
Balance
($1,100,000) This action decreases the
Ending Unrestricted Fund
Balances from $9,230,788 to
$8,130,788 as a result of FY
2024/25 Stadium Authority
G&A budget savings.
2 Public Safety Cost
(PSC) 2024
Outstanding Balance
$275,000 This action increases the PSC
2024 Outstanding Balance
from $3,019,000 to $3,294,000
as a result of FY 2024/25
Stadium Authority G&A budget
savings.
2 Transfer to City General
Fund from Excess
Revenues
$275,000 This action increases the
Transfer to City General Fund
from Excess Revenues from
$3,019,000 to $3,294,000 as a
result of FY 2024/25 Stadium
Authority G&A budget savings.
2 Renovation/Demolition
Reserve
$550,000
This action increases the
Renovation/Demolition
Reserve from $49,808,643 to
$50,358,643 as a result of
Stadium Authority G&A budget
savings.

Total $930,000 $930,000
17 Debt Service Budget
The Stadium Authority’s FY 2025/26 debt service revenue budget of $3.6 million represents anticipated contributions from the Community Facilities District (CFD). The CFD levies and collects a special hotel tax on hotel rooms within the CFD. All collections from the special CFD hotel taxes are contributed to Stadium Authority to pay down the CFD Advance. The CFD Advance is payable solely from amounts received by the Stadium Authority from the CFD. During the first two quarters, $1.8 million was contributed by the CFD, or 49% of the annual budget. Of this amount, $1.8 million was collected and used to pay down the CFD Advance.

Total Stadium Authority debt service expenses for the current reporting period were $14.2 million, or 69% of the budgeted amount. The debt service expenses for the CFD Advance and the Term A Loan were $1.8 million and $12.5 million, respectively.

As of September 30, 2025, the total outstanding amount of Stadium Authority debt had declined to $210.8 million. This is a reduction in principal of $8.8 million from the March 31, 2025 outstanding debt amount of $219.6 million.

Additional details are shown in Tables 13 and 14 and Chart 1. 18 Table 13
Santa Clara Stadium Authority
Debt Service Budget Status Report
For the Period Ending September 30, 2025 and 2024
Beginning Fund Balance
Required Debt Service Reserve
Period Ending September 30, 2025
Budget to
Amended(1)
YTD Actual
Budget Actuals Difference
$ 11,536,235 $ 11,536,235 $ -
%
Received
NA
Period Ending September 30, 2024
Budget to
Final YTD Actual
Budget Actuals Difference
$ 11,536,235 $ 11,536,235 $ -
%
Received
NA
Debt Service Reserve 8,706,100 8,706,100 - NA 8,122,980 8,122,980 - NA Total Beginning Fund Balance 20,242,335 $ 20,242,335 $ -$ NA 19,659,215 $ 19,659,215 $ -$ NA Revenue
Contribution from CFD $ 3,605,000 $ 1,757,940 $ 1,847,060 49% $ 3,457,000 $ 1,686,537 $ 1,770,463 49% Total Revenues 3,605,000 $ 1,757,940 $ 1,847,060 $ 49% 3,457,000 $ 1,686,537 $ 1,770,463 $ 49% Transfers In
Transfers In from Operating $ 17,646,000 $ 4,620,456 $ 13,025,544 26% $ 17,471,000 $ 4,816,409 $ 12,654,591 28% Total Transfers In 17,646,000 $ 4,620,456 $ 13,025,544 $ 26% 17,471,000 $ 4,816,409 $ 12,654,591 $ 28% Total Source of Funds 41,493,335 $ 26,620,731 $ 14,872,604 $ 64% 40,587,215 $ 26,162,161 $ 14,425,054 $ 64% Amended(1)
YTD
Budget to
Actual Final YTD
Budget to
Actual
Budget Actuals Difference % Used Budget Actuals Difference % Used Expenses
CFD Advance $ 3,565,000 $ 1,753,422 $ 1,811,578 49% $ 3,429,000 $ 1,674,732 $ 1,754,268 49% Term A Loan 17,080,000 12,458,550 4,621,450 73% 16,933,000 12,116,306 4,816,694 72% Total Expenses 20,645,000 $ 14,211,972 $ 6,433,028 $ 69% 20,362,000 $ 13,791,038 $ 6,570,962 $ 68% Ending Fund Balance
Required Debt Service Reserve $ 11,536,235 $ 11,536,235 $ - NA $ 11,536,235 $ 11,536,235 $ - NA Debt Service Reserve 9,312,100 872,524 8,439,576 NA 8,688,980 834,888 7,854,092 NA Total Ending Fund Balance 20,848,335 $ 12,408,759 $ 8,439,576 $ NA 20,225,215 $ 12,371,123 $ 7,854,092 $ NA Total Use of Funds 41,493,335 $ 26,620,731 $ 14,872,604 $ 64% 40,587,215 $ 26,162,161 $ 14,425,054 $ 64% (1)Adjustments include previously approved budget amendments through October 21, 2025 19 Table 14
Santa Clara Stadium Authority
Debt Summary Report
Period Ending September 30, 2025
Outstanding as of Outstanding as of
Type of Indebtedness Interest Rates March 31, 2025 Net Change September 30, 2025 Stadium Funding Trust Loan:

Term A Loan 5.00% $ 192,656,344 $ (7,838,094) $ 184,818,249 StadCo CFD Advance 5.73% 26,952,920 (987,966) 25,964,954 Total $ 219,609,263 $ (8,826,060) $ 210,783,203
Chart 1
Total Outstanding Debt (in millions)
$700
$600
$500
$400
$300
$200
$100
$-
$41.1
$396.1
$653.4
$561.6
$464.7
$429.8
$382.7
$340.2 $325.3
$296.8 $280.3
$245.3 $228.7 $219.6 $210.8
Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025 Sep 2025 Construction Loan StadCo Agency Advance Term B Loan Term A Loan StadCo CFD Advance StadCo Subordinated Loan 20 ■ ■ ■ ■ ■ ■
Cap ital Expense (CapEx) Budget
As part of the Capital Expense (“CapEx”) Plan, the following projects were underway during the current reporting period:
 Aesthetic Improvements – Premium Areas/Special Event Spaces  Broadcast Booth Window System Replacement
 General Areas/Coating Main Deck
 IT Replacement of end of life Network equipment
 Kawasaki ATVs
 LED Retrofit Project - Phase 1
 Levi’s® Naming Rights Signage Refurbishment
 Lighting System - Controls System
 Lighting Systems – Fixture Replacement of Major Outdoor Lighting/LED Retrofit  Main Kitchen Equipment
 Plumbing - Boilers
 Radio Booth Cabling
 Security General Allowance
 Stormwater System Assessment and Replacements
 Women’s Locker Room
The CapEx Budget increased from $18.6 million to $21.9 million in the current reporting period. A total of $7.2 million has been spent during the first two quarters of FY 2025/26, which amounts to 33% of the budget. The main reason that this is below budget is due to the timing of activity for Capital Expenditure projects. There has also been no activity on warranty work which makes up 7% of the CapEx Budget.

Additional details are shown below in Table 15.
21 Table 15
Santa Clara Stadium Authority
CapEx Budget Status Report
For the Period Ending September 30, 2025 and 2024
Period Ending September 30, 2025 Period Ending September 30, 2024 Amended(1)
Budget
YTD
Actuals
Budget to
Actual
Difference
%
Received
Final
Budget
YTD
Actuals
Budget to
Actual
Difference
%
Received
Beginning Fund Balance
Revenue
$ 17,278,221 $ 17,278,221 $ - NA $ 19,862,834 $ 19,862,834 $ - NA Other Revenue 797,607 $ -$ 797,607 $ 0% -$ -$ -$ NA
Total Revenue 797,607 $ -$ 797,607 $ 0% -$ -$ -$ NA
Transfers In
Transfers In from Operating $ 5,153,000 $ - $ 5,153,000 0% $ 4,032,000 $ - $ 4,032,000 0% Transfers In from Operating - Levi's Naming Rights - - - NA 1,575,000 - 1,575,000 0% Total Transfers In 5,153,000 $ -$ 5,153,000 $ 0% 5,607,000 $ -$ 5,607,000 $ 0% Total Source of Funds 23,228,828 $ 17,278,221 $ 5,950,607 $ 74% 25,469,834 $ 19,862,834 $ 5,607,000 $ 78% Budget to Budget to
Amended(1)
YTD Actual Final YTD Actual
Budget Actuals Difference % Used Budget Actuals Difference % Used Expenses
Construction $ 15,673,379 $ 6,900,662 $ 8,772,717 44% $ 15,697,725 $ 1,699,806 $ 13,997,919 11% Equipment 3,856,765 308,324 3,548,441 8% 5,943,000 1,321,791 4,621,209 22% Contingency & Misc 813,000 - 813,000 0% 973,000 - 973,000 0% Stadium Warranty Related Construction 1,528,000 - 1,528,000 0% 1,528,000 - 1,528,000 0% Total Expenses 21,871,144 $ 7,208,986 $ 14,662,158 $ 33% 24,141,725 $ 3,021,598 $ 21,120,127 $ 13% Ending Fund Balance $ 1,357,684 $ 10,069,235 $ (8,711,551) NA $ 1,328,109 $ 16,841,236 $ (15,513,127) NA Total Use of Funds 23,228,828 $ 17,278,221 $ 5,950,607 $ 74% 25,469,834 $ 19,862,834 $ 5,607,000 $ 78% (1)Adjustments include previously approved budget amendments through October 21, 2025 22 City of Santa Clara Net General Fund Impact
During the current reporting period there was a total of $1.5 million that was contributed to the General Fund as shown in Table 16. This section of the report also provides information on General Fund revenue and expenditure impacts resulting from the stadium.

Table 16
City of Santa Clara
Net General Fund Impact
For Stadium Authority
Period Ending September 30, 2025
Ground Rent
Senior and Youth Fee
Tasman Parking Lot
Sales Tax
$ 1,000,000
108,725
5,915
406,831
Total Net General Fund Impact $ 1,521,471
Public Safety and Administrative Cost Reimbursement
As described in earlier sections of this report, costs incurred by the City on NFL and Non- NFL events are tracked and billed to the Stadium Manager. Reimbursement is monitored and included in this report. In the current reporting period, public safety costs incurred in support of NFL and Non-NFL events held at Levi’s® Stadium totaled $2.4 million and $4.6 million, respectively. The reimbursements come from a combination of payments from the Stadium Manager and the offsite parking fees that were collected. As of the report date, the City has received $2.3 million in Non-NFL public safety reimbursements from the Stadium Manager.

The current balance of the Public Safety Costs (PSC) 2024 Outstanding Balance is $5.3 million and is projected to be paid through excess revenues. It is currently estimated that the PSC 2024 Outstanding Balance will be paid off by FY 2027/28. See the Glossary for more information on this balance.

In addition to public safety costs, administrative costs are also tracked and billed to the Stadium Authority. These include the cost of providing overall stadium management, financial, human resource, legal, and other services to the Stadium Authority. In the second quarter of FY 2025/26, a total of $978,000 of administrative staff costs were incurred by the General Fund, which have been reimbursed to the City. 23 Rents and Senior and Youth Fee
As noted above, the City’s General Fund collected ground rent of $1 million. Additionally, the Senior and Youth Fee generated $109,000, of which the entire amount has been forwarded to the City in support of senior and youth programs. See the Glossary for more information on these revenues and how they are calculated.

Other Revenue Impacts
General Fund sales tax, property tax, and transient occupancy tax (TOT) collections have benefited from the direct and indirect economic activity related to stadium events.

Food and beverage concession sales and merchandise sales at Levi’s® Stadium are taxable, resulting in sales tax revenue for the City. The last quarter of sales tax collections from Levi’s® Stadium transactions generated $407,000 for the City’s General Fund. In addition to the direct sellers at the Stadium, other businesses in Santa Clara are benefiting from the influx of people coming to attend one or more events at Levi’s® Stadium, resulting in potentially more sales tax collections for the General Fund.

In accordance with State Law, StadCo must pay possessory interest property tax based on their lease of Levi’s® Stadium from the Stadium Authority. This revenue is collected by the county and placed into the Redevelopment Property Tax Trust Fund (RPTTF).

Amounts remaining in the RPTTF after paying any enforceable obligations of the Successor Agency are distributed to taxing entities in the same proportion as secured property taxes. The City’s proportion is approximately 10%.

Many stadium events bring travelers to the region, resulting in hotel stays which generate TOT collections for the City’s General Fund. Although it is impossible to say exactly what portion of the City’s TOT collections is due to the stadium, it is clear that hotels both inside and outside the City have benefited, resulting in increases in TOT collections in Santa Clara and our neighboring cities.
24 Glossary
This section of the report provides details behind key terms that are used in the body of this report.

Discretionary Fund – This is funded by $2 of the base Non-NFL ticket surcharge and has been used to cover NFL public safety costs above the public safety cost threshold and other items at the Stadium Authority’s discretion. It is anticipated that the discretionary fund will continue to cover NFL public safety costs above the threshold. Stadium Authority may transfer up to half of the balance of the Discretionary Fund over $1.0 million from the Discretionary Fund to the City’s General Fund if (1) adequate provision has been made for the replacement of and upgrades to capital improvements contemplated under the Public Safety Plan and (2) an equal amount is transferred from the Discretionary Fund to Stadium Authority’s operating fund to be included as Stadium Authority Revenue.

Ground Lease – The Ground Lease Agreement has an initial term of 40 years commencing on the date of substantial completion which was July 31, 2014. The amount of annual base ground rent that is payable by the Stadium Authority to the City is noted in the Table 17.
25 Table 17
Lease Year Fiscal Year
Annual Fixed
Ground Rent
Cumulative
Total
1 2014/15 $ 180,000 $ 180,000
2 2015/16 $ 215,000 $ 395,000
3 2016/17 $ 250,000 $ 645,000
4 2017/18 $ 285,000 $ 930,000
5 2018/19 $ 320,000 $ 1,250,000
6 2019/20 $ 355,000 $ 1,605,000
7 2020/21 $ 390,000 $ 1,995,000
8 2021/22 $ 425,000 $ 2,420,000
9 2022/23 $ 460,000 $ 2,880,000
10 2023/24 $ 495,000 $ 3,375,000
11 2024/25 $ 1,000,000 $ 4,375,000
12 2025/26 $ 1,000,000 $ 5,375,000
13 2026/27 $ 1,000,000 $ 6,375,000
14 2027/28 $ 1,000,000 $ 7,375,000
15 2028/29 $ 1,000,000 $ 8,375,000
16 2029/30 $ 1,100,000 $ 9,475,000
17 2030/31 $ 1,100,000 $ 10,575,000
18 2031/32 $ 1,100,000 $ 11,675,000
19 2032/33 $ 1,100,000 $ 12,775,000
20 2033/34 $ 1,100,000 $ 13,875,000
21 2034/35 $ 1,200,000 $ 15,075,000
22 2035/36 $ 1,200,000 $ 16,275,000
23 2036/37 $ 1,200,000 $ 17,475,000
24 2037/38 $ 1,200,000 $ 18,675,000
25 2038/39 $ 1,200,000 $ 19,875,000
26 2039/40 $ 1,300,000 $ 21,175,000
27 2040/41 $ 1,300,000 $ 22,475,000
28 2041/42 $ 1,300,000 $ 23,775,000
29 2042/43 $ 1,300,000 $ 25,075,000
30 2043/44 $ 1,300,000 $ 26,375,000
31 2044/45 $ 1,400,000 $ 27,775,000
32 2045/46 $ 1,400,000 $ 29,175,000
33 2046/47 $ 1,400,000 $ 30,575,000
34 2047/48 $ 1,400,000 $ 31,975,000
35 2048/49 $ 1,400,000 $ 33,375,000
36 2049/50 $ 1,500,000 $ 34,875,000
37 2050/51 $ 1,500,000 $ 36,375,000
38 2051/52 $ 1,500,000 $ 37,875,000
39 2052/53 $ 1,500,000 $ 39,375,000
40 2053/54 $ 1,500,000 $ 40,875,000
Net Non-NFL Event Revenue – Net Non-NFL event revenue is remitted by Stadium Manager to the Stadium Authority on a yearly basis. This is done annually because the final reconciliation of the Non-NFL event revenues and expenses does not occur until after the conclusion of each fiscal year.

NFL Ticket Surcharge – The Amended and Restated Non-Relocation Agreement states that the Team will collect a 10% NFL ticket surcharge on the price of admission to all NFL games on behalf of Stadium Authority during the Surcharge Term which currently ends the last day of the 25th lease year or March 31, 2039
26 Non-NFL Event Ticket Surcharge – The Amended and Restated Stadium Lease Agreement requires that the promoter or sponsor of any Non-NFL event collect a Non- NFL event ticket surcharge of $4 per ticket. The Lease Agreement sets aside one-half of the base Non-NFL event ticket surcharge for stadium operating and maintenance costs and one-half for discretionary expenses of the Stadium Authority. The First Amendment to Amended and Restated Lease Agreement increased the ticket surcharge to a minimum of $8 per ticket starting in FY 2025/26 a $1 escalator in FY 2028/29 and every four years thereafter on behalf of Stadium Authority. One-half of the $4 base surcharge that is paid to Stadium Authority covers general stadium operations and the other half funds the Stadium Authority Discretionary Fund. The additional proceeds exceeding the $4 base surcharge will be deposited to the Public Safety Cost Reserve to be used to pay public safety costs exceeding the threshold.

Offsite Parking Fees – Parking lot operators who wish to operate a parking lot for sports or entertainment venues are required to go through the City’s permitting process. If approved, per the City’s Municipal Fee Schedule, these operators remit an offsite parking fee for each car that is parked for sports or entertainment events. This fee is designed to recover the public safety costs associated with these permitted offsite parking lots.

Therefore, when invoicing for NFL or Non-NFL public safety costs for a particular event held at Levi’s® Stadium, the offsite parking fee that is collected for said event partly offsets the total public safety costs owed for that event. In the City’s FY 2025/26 (July 1, 2025 through June 30, 2026) the offsite parking fee is $6.94.

Performance-Based Rent – Stadium Authority pays the City performance-based rent on top of the fixed ground rent. After the completion of the fiscal year, net income from Non- NFL events are calculated and reported to Stadium Authority by Stadium Manager. With the finalized Non-NFL events report, Stadium Authority calculates the performance-based rent to be remitted to the City during July following the Stadium Authority’s fiscal year- end. The basic calculation for the performance-based rent is 50% of the net income from Non-NFL events for any given lease year less the sum of Performance-Based Rent Credits. The Performance-Based Rent Credits include (1) 50% of the fixed ground rent for the current lease year, (2) the amount, if any, that the Public Safety Costs exceed the Public Safety Cost Threshold for the current lease year, (3) following the Tax Allocation Termination Date, the amount of Received Possessory Interest Tax (PIT), and (4) the amount of any credit for Disproportionate Taxes for the current lease year.

Public Safety Costs – For each NFL and Non-NFL event held at Levi’s® Stadium, a public safety plan is developed and implemented. Multiple City departments provide staffing, materials, and supplies to support the public safety plan. Services are provided through a combination of City staff, contracts with other agencies (e.g. California Highway Patrol, County Sheriff’s Office, and City of Sunnyvale) and some vendor provided services.

The Amended and Restated Stadium Lease Agreement section 7.5 states that the tenant is responsible for reimbursing the City for the public safety costs attributed to NFL events at Levi’s® Stadium. Additionally, Article 5 of the Stadium Management Agreement notes that the Stadium Manager is responsible for paying Non-NFL event expenses on behalf of the Stadium Authority. Therefore, the cost of providing public safety services are 27 tracked through the City’s financial system and invoices are sent to the Stadium Manager.

All of these costs are reimbursed to the City of Santa Clara.

Public Safety Costs (PSC) 2024 Outstanding Balance: As part of the 2024 Settlement Agreement, public safety costs over the threshold for FY 2017/18 to FY 2023/24 would not be treated as Credited Public Safety Costs and therefore would not affect the calculation of Performance Based Rent. Instead, these costs amounting to approximately $14.8 million have been redefined as “PSC 2024 Outstanding Balance” which would be paid from a legal contingency reserve and future excess revenues until paid off.

Table 18
PSC 2024 Outstanding Balance
Fiscal Year
Outstanding
Balance
Actual/Projected
Payments
Remaining
Balance
2023/24 $ 14,786,346 $ - $ 14,786,346
2024/25 $ 14,786,346 $ 9,486,570 $ 5,299,776
2025/26 $ 5,299,776 $ 3,294,000 $ 2,005,776
Public Safety Costs Over Threshold: As of the 2024/25 lease year, the public safety cost threshold will equal $360,000 per game. For lease year 2025/26 and each lease year thereafter the threshold will increase by 4%. Public safety costs incurred above the annual threshold will be repaid over time with additional proceeds from the Non-NFL event ticket surcharge and the discretionary fund. The threshold for the current lease year is $374,400.

Senior and Youth Program Fees – During the lease terms, StadCo collects City of Santa Clara Senior and Youth Program Fees on behalf of Stadium Authority. As of FY 2024/25 the fee was $0.40 per NFL game ticket up to a maximum of $300,000 per lease year.

Every ten lease years the fee will increase by $0.05 in conjunction with the maximum amount increasing by an additional $50,000.
28 Stadium Management Fee – The Stadium Manager receives an annual base management fee to manage Levi’s® Stadium. The fee was $400,000 in the first lease year and increases by 3% annually as detailed in the table below. This annual base management fee is split 50/50 between StadCo and the Stadium Authority since the Stadium Manager manages the stadium year-round for both entities. In addition to the base management fee, the Stadium Manager also receives a stadium marketing and booking fee (incentive fee) which is based on a percentage of the amount that the net income from Non-NFL events exceeds the marketing and booking fee benchmark. The marketing and booking fee benchmark was $5 million in the first lease year and also increases by 3% annually as detailed in the table below. The annual stadium management fee for each of the first ten lease years are noted in the Table 18 below.

Table 19
Fiscal Year
Lease
Year
Annual Base
Stadium
Management
Fee (SCSA
Share)
Stadium
Marketing
and Booking
Fee
Benchmark
Net Income
from Non
NFL Events
1st Tier
paid at 10%
Fee
Additional
Stadium
Marketing and
Booking Fee
10% 1st Tier
2nd Tier
paid at 15%
Fee
Additional
Stadium
Marketing and
Booking Fee
15% 2nd Tier
Total Stadium
Management
Fee
2014/15 1 $ 200,000 $ 5,000,000 $ 5,207,553 $ 10,378 $ - $ 210,378 2015/16 2 206,000 5,150,000 6,079,016 46,451 - 252,451
2016/17 3 212,180 5,304,500 5,316,894 620 - 212,800
2017/18 4 218,545 5,463,635 5,163,329 2,000,000 - 4,000,000 - 218,545 2018/19 5 225,102 5,627,544 18,591 2,060,000 - 4,120,000 - 225,102 2019/20 6 231,855 5,796,370 (2,741,014) 2,121,800 - 4,243,600 - 231,855 2020/21 7 238,810 5,970,261 (476,960) 2,185,454 - 4,370,908 - 238,810 2021/22 8 245,975 6,149,369 (288,741) 2,251,018 - 4,502,035 - 245,975 2022/23 9 253,354 6,333,850 8,809,167 2,318,548 231,855 4,637,096 23,515 508,724 2023/24 10 260,955 6,523,866 8,266,685 2,388,105 174,282 4,776,209 - 435,237 2024/25 11 268,783 6,719,582 10,163,814 2,459,748 245,975 4,919,495 147,673 662,430 2025/26 12 276,847 6,921,169 To be determined
29 Appendix
This section of the report provides additional historical data for the tables referenced in the body of this report.

Table 20
Levi's® Stadium
Historical NFL Event Statistics
2014/15 Q2 2015/16 Q2 2016/17 Q2 2017/18 Q2 2018/19 Q2 2019/20 Q2 2020/21 Q2 Total Total Total Total Total Total Total
No. of NFL Events 4 3 3 4 3 3 -
No. of Tickets Sold 271,503 198,634 188,705 249,408 190,840 184,769 - NFL Ticket Surcharge 2,911,416 $ 1,851,550 $ 2,343,474 $ 2,544,721 $ 1,732,335 $ 2,416,387 $ -$ Senior/Youth Program Fees 95,026 $ 69,522 $ 66,047 $ 87,293 $ 66,794 $ 64,669 $ -$ Cars Parked at Offsite Lots 37,884 16,986 18,295 21,442 15,030 16,578 - City Offsite Parking Fee 186,389 $ 86,289 $ 95,866 $ 116,216 $ 84,619 $ 96,981 $ -$ Cars Parked on Tasman Lots 1,737 1,967 1,689 2,357 1,244 1,485 - Cars Parked on Golf Course 11,378 7,353 - - - - -
City Tasman Lot and Golf Course Parking Fee 65,575 $ 46,600 $ 8,445 $ 11,785 $ 6,220 $ 7,425 $ -$ Stadium Public Safety Costs 914,005 $ 673,723 $ 740,565 $ 975,574 $ 764,421 $ 1,157,636 $ -$ Golf Course Public Safety Costs 111,690 $ 25,242 $ -$ -$ -$ -$ -$ Subtotal Event Public Safety Costs 1,025,695 $ 698,965 $ 740,565 $ 975,574 $ 764,421 $ 1,157,636 $ -$ Less: Offsite Parking Fee Credit (186,389) $ (86,289) $ (95,866) $ (116,216) $ (84,619) $ (96,981) $ -$ Reimbursable Stadium Public Safety Costs 839,306 $ 612,676 $ 644,700 $ 859,359 $ 679,802 $ 1,060,654 $ -$ 30 Table 21
Levi's® Stadium
Historical Non-NFL Event Statistics
2014/15 Q2 2015/16 Q2 2016/17 Q2 2017/18 Q2 2018/19 Q2 2019/20 Q2 2020/21 Q2 Total Total Total Total Total Total Total
No. of Non-NFL Ticketed Events 2 13 14 7 7 6 -
No. of Tickets Sold 106,699 542,390 518,542 210,157 231,849 125,587 - Non-NFL Base Ticket Surcharge 426,796 $ 2,130,628 $ 2,074,168 $ 840,628 $ 927,396 $ 502,348 $ -$ Non-NFL Additonal Ticket Surcharge (1) -$ -$ -$ -$ -$ -$ -$ Total Ticket Surcharge 426,796 $ 2,130,628 $ 2,074,168 $ 840,628 $ 927,396 $ 502,348 $ -$ No. of Non-NFL Special Events 43 100 53 42 41 28 -
Non-NFL Special Event Attendees 12,521 73,196 17,959 23,726 15,943 7,752 - Cars Parked at Offsite Lots 10,748 51,669 55,731 19,466 22,338 13,130 - City Offsite Parking Fee 52,880 $ 258,252 $ 286,531 $ 104,077 $ 123,559 $ 75,164 $ -$ Cars Parked on Golf Course 5,413 19,743 9,562 - - - -
City Golf Course Parking Fee 27,065 $ 98,715 $ 47,810 $ -$ -$ -$ -$ Stadium Public Safety Costs 444,151 $ 2,624,988 $ 2,469,148 $ 1,035,289 $ 1,378,966 $ 1,004,000 $ -$ Golf Course Public Safety Costs 55,701 $ 113,440 $ 39,905 $ -$ -$ -$ -$ Subtotal Event Public Safety Costs 499,852 $ 2,738,429 $ 2,509,053 $ 1,035,289 $ 1,378,966 $ 1,004,000 $ -$ Less: Offsite Parking Fee Credit (52,880) $ (258,252) $ (286,531) $ (104,077) $ (123,559) $ (75,164) $ -$ Reimbursable Public Safety Costs 446,972 $ 2,480,177 $ 2,222,522 $ 931,212 $ 1,255,407 $ 928,836 $ -$ (1) The First Amendment to Amended and Restated Lease Agreement increased the ticket surcharge to a minimum of $8 per ticket starting in FY 2025/26. The surcharge exceeding the $4 per ticket base is shown in the table as additional ticket surcharge. 31 Table 22
Discretionary Fund Reserve
Fiscal Year
Beginning
Balance Revenue Expenses Ending Balance
2014/15 $ - $ 715,770 $ - $ 715,770
2015/16 715,770 1,238,542 714,028 1,240,284
2016/17 1,240,284 1,164,698 699,129 1,705,853
2017/18 1,705,853 768,564 1,209,342 1,265,075
2018/19 1,265,075 796,294 101,267 1,960,102
2019/20 1,960,102 367,748 - 2,327,850
2020/21 2,327,850 - 18 2,327,832
32 Attachment 2
Line Item Source of
Funds
Use of
Funds
Explanation
Non-NFL Event Ticket Surcharge $ 930,000 This action increases the Non-NFL Event Ticket Surcharge from $3,426,000 to $4,356,000 as a result
of higher Non-NFL event ticket sales.

Discretionary Fund Reserve $ 309,000 This action increases the Discretionary Fund Reserve from $1,045,775 to $1,354,775 as a result of higher
Non-NFL event ticket sales.

Public Safety Cost Reserve $ 433,000 This action increases the Public Safety Cost Reserve from $0 to $433,000 as a result of higher Non-NFL
evnet ticket sales.

Public Safety Cost (PSC) 2024
Outstanding Balance
$ 47,000 This action increases the PSC 2024 Outstanding Balance from $2,972,000 to $3,019,000 as a result of
higher Non-NFL event ticket sales.

Transfer to City General Fund from
Excess Revenues
$ 47,000 This action increases the Transfer to City General Fund from Excess Revenues from $2,972,000 to
$3,019,000 as a result of higher Non-NFL event ticket
sales.

Renovation/Demolition Reserve $ 94,000 This action increases the Renovation/Demolition Reserve from $49,714,643 to $49,808,643 as a result
of higher Non-NFL event ticket sales.

Unrestricted Fund Balance $ (1,100,000) This action decreases the Ending Unrestricted Fund Balances from $9,230,788 to $8,130,788 as a result of
FY 2024/25 Stadium Authority G&A budget savings.

Public Safety Cost (PSC) 2024
Outstanding Balance
$ 275,000 This action increases the PSC 2024 Outstanding Balance from $3,019,000 to $3,294,000 as a result of
FY 2024/25 Stadium Authority G&A budget savings.

Transfer to City General Fund from
Excess Revenues
$ 275,000 This action increases the Transfer to City General Fund from Excess Revenues from $3,019,000 to
$3,294,000 as a result of FY 2024/25 Stadium
Authority G&A budget savings.

Renovation/Demolition Reserve $ 550,000 This action increases the Renovation/Demolition Reserve from $49,808,643 to $50,358,643 as a result
of Stadium Authority G&A budget savings.

Total$ 930,000$ 930,000
Santa Clara Stadium Authority
2025/26 Operating Budget Adjustment
1 City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
26-15610 Agenda Date: 1/27/2026

REPORT TO COUNCIL

SUBJECT
Silicon Valley Power Bi-Annual Update

BACKGROUND
The City of Santa Clara’s Electric Department, Silicon Valley Power (SVP), is a recognized industry leader with a strong history and reputation of providing excellent customer service. SVP staff have been presenting quarterly or bi-annual reports to the City Council for the last few years. The purpose of the report is to update the City Council and community on recent activities and accomplishments and to prepare for upcoming decisions.

DISCUSSION
The presentation to the City Council provides an update on SVP and includes the following items:
· Background and Growth Plan Update and System Limitations · Update on System Expansion Projects
· Update on Technology Projects
· Customer programs
· Six months look-ahead

ENVIRONMENTAL REVIEW
There is no discretionary action being considered under this Report to Council; therefore, there is no “project” within the meaning of the California Environmental Quality Act (“CEQA”) and no further environmental review is required pursuant to section 15060(c) of Title 14 of the California Code of Regulations.

FISCAL IMPACT
There is no fiscal impact associated with this update. Implementation of certain elements will require funding, which will be requested through the normal budget process.

COORDINATION
This report has been coordinated with the Finance Department and the City Attorney’s Office.

PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email [email protected] or at the public information desk at City of Santa Clara Printed on 1/23/2026Page 1 of 2
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any City of Santa Clara public library.

RECOMMENDATION
Note and file the Silicon Valley Power Bi-Annual Update.

Reviewed by: Nico Procos, Director of Silicon Valley Power Approved by: Jovan D. Grogan, City Manager
City of Santa Clara Printed on 1/23/2026Page 2 of 2
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City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
26-16870 Agenda Date: 1/27/2026

REPORT TO COUNCIL

SUBJECT
Public Hearing: Action to Terminate Two Historic Property Preservation Agreements (Mills Act Contracts) at 1711 Main Street and 906 Monroe Street / 1341 Homestead Road

BACKGROUND
The Mills Act is an economic incentive program designed to encourage the restoration and preservation of qualified historic buildings by private property owners. Enacted in 1972, the legislation authorizes participating local governments to enter into contracts with owners of eligible historic properties. In exchange for property tax relief, owners agree to actively maintain and restore their properties in accordance with an approved ten-year restoration plan.

The Planning Division of the Community Development Department administers the Mills Act program for the City of Santa Clara. As part of the program, the City conducts audits of Mills Act properties every five years to ensure compliance with approved restoration plans. The most recent audit occurred in 2017; the audit originally scheduled for 2022 was postponed until 2024 due to the COVID -19 pandemic.

During the audit, property owners are required to submit documentation demonstrating compliance with their restoration plans. Acceptable documentation includes receipts, invoices, photographs, and other records of eligible improvements and maintenance work. Property owners may also choose to schedule an on-site inspection with City staff in lieu of submitting documentation.

Despite repeated outreach attempts by staff, one property owner did not respond to the audit and another property owner did not submit adequate documentation. As a result, these properties were identified as noncompliant with the requirements of their Historic Property Preservation Agreements and are subject to cancellation of their Historic Property Preservation Agreements (Mills Act Contracts).

DISCUSSION
Upon entering into a Mills Act Contract, property owners sign a Historic Property Preservation Agreement with the City, which is also recorded with the County. This agreement requires owners to provide any information requested by the City to verify compliance and outlines both nonrenewal and termination procedures. The contracts automatically renew for an additional ten years unless the City or owner initiates non-renewal or cancellation.

There are currently 132 Mills Act properties in the City of Santa Clara. As part of the 2024/2025 audit process, all property owners were contacted via mail and/or email and asked to submit self-reported documentation, such as invoices, photographs, and written descriptions of work completed. When the property address and the owner’s mailing address differed, notifications were sent to both, as City of Santa Clara Printed on 1/23/2026Page 1 of 4
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26-16870 Agenda Date: 1/27/2026
verified through Santa Clara County assessment records. Property owners were also offered the option to schedule an on-site inspection in lieu of submitting documentation.

For owners who did not respond to the initial outreach, City staff conducted multiple follow-up efforts, including phone calls, certified mail, and attempted in-person delivery of notices by Code Enforcement staff. Despite these efforts, two property owners remained nonresponsive:
• 1711 Main Street
• 906 Monroe Street / 1341 Homestead Road (currently bank-owned) The property at 1711 Main Street entered into the Historic Property Preservation Agreement in 2000 under previous ownership. The current owners purchased the home in 2012 and participated in the 2017 audit, including an on-site inspection. At that time, the property was found to be in general compliance. During the current audit, the owners have only provided a narrative description of work completed from the original 10-Year Plan approved in 2000. They noted that most of the work in the 10-Year Plan, including rewiring, flooring replacement and refinishing, rear and basement additions, painting, and other electrical work, was completed by the previous owners prior to their purchase of the house in 2012. Because the 2000 plan is now outdated, documentation demonstrating ongoing maintenance or additional completed work is necessary to verify continued compliance with the program. Staff records show only one building permit since the 2017 audit, a reroof in 2019 (File No.

BLD2019-56460) was applied for. The owners also referenced a new water heater installed in 2020, but no permit for this work was found. Staff conducted a windshield survey and observed that the exterior of the home appears to be in disrepair.

The property at 906 Monroe Street entered into the Historic Property Preservation Agreement in 1998 under previous ownership. There are two residences on the property, however only 906 Monroe Street is listed on the City Historic Resource Inventory (HRI) and is subject to the Mills Act. During the 2017 audit, the owners at that time selected an on-site inspection with staff, and the residence was found to be in fair condition. The property is currently bank owned following an unsuccessful redevelopment proposal. Bank representatives have not responded to requests for audit participation.

Section 3(c) of the City’s standard Historic Property Preservation Agreement, which was used for both properties, provides that a failure to allow verification of compliance through periodic on-site inspections constitutes a breach of contract. Section 4(a) requires Owners to furnish the City with any information requested by the City to determine compliance with the terms of the Agreement.

Because both of the property owners listed above failed to respond to repeated requests for information or to allow for on-site examination of the properties, both properties are considered to be in breach of both sections of their agreements.

California Government Code Section 50284 requires that a duly noticed public hearing be held before a Mills Act contract can be cancelled. At the November 4, 2025, Council meeting, the Council voted to set the termination hearing for January 27, 2026. Mailed notices were sent to the affected property owners, and a public notice must also be published in the Santa Clara Weekly.

If the Council votes to terminate the agreements, the property owners will be subject to a cancellation fee equal to 12.5 percent of the current fair market value of the property as determined by the county assessor, as required by the California Government Code. This fee is paid to the county auditor and City of Santa Clara Printed on 1/23/2026Page 2 of 4
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26-16870 Agenda Date: 1/27/2026
allocated to each jurisdiction in the tax rate area where the property is located. The properties will remain listed on the City’s HRI and will continue to be subject to all requirements of the Historic Preservation Ordinance. Any future work on the structures will still require historic review and approval consistent with City regulations.

ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(5) in that it is a governmental organizational or administrative activity that will not result in direct or indirect changes in the environment.

FISCAL IMPACT
If the Mills Act contracts are cancelled, the City will notify the County of the properties that would no longer receive the associated property tax relief. For the City of Santa Clara, the annual relief amounts for the two properties range from approximately $53 to $353 (2024/25 value) (Source:

Santa Clara County Assessor’s Office). The City would also receive a portion of assessed cancellation fees.

COORDINATION
This report was coordinated with the City Attorney’s Office.

PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email [email protected] or at the public information desk at any City of Santa Clara public library.

Mailed notices were sent to the affected property owners at both the subject properties and the owners’ mailing addresses, if different, on January 15, 2026. In addition, a notice was published in the Santa Clara Weekly on January 14, 2026.

RECOMMENDATION
Hold the public hearings, consider all testimony presented and, based upon the evidence presented:

1. Terminate the Mills Act Contract for the property located at 1711 Main Street due to violation of Sections 3(c) and 4(a) of the Agreement, effective immediately;

2. Terminate the Mills Act Contract for the property located at 906 Monroe Street / 1341 Homestead Road due to violation of Sections 3(c) and 4(a) of the Agreement, effective immediately; and

3. Direct the Community Development Director to inform the affected property owners and the County and take all other actions necessary to implement the terminations.

Reviewed by: Afshan Hamid, Director, Community Development Department Approved by: Jovan Grogan, City Manager

ATTACHMENTS

1. 1711 Main Street Historic Preservation Agreement
City of Santa Clara Printed on 1/23/2026Page 3 of 4
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2. 906 Monroe Street Historic Preservation Agreement
City of Santa Clara Printed on 1/23/2026Page 4 of 4
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('f"\!'lFORMED COPY: This document has
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SANTA CLARA COUNTY RECORDER
Doc": 15487892
12/07/2000 2•29 PM

HISTORIC PROPERTY PRESERVATION AGREEMENT
This Agreement, (herein, "Agreement"), is made and entered into this ~day of De:-61:u,v , 2000, ("Effective Date"), by and between, Alan and Bertha Dent ("OWNERS"), owner of certain real property located in Santa Clara, and the City of Santa Clara, California, a chartered municipal corporation, ("CITY"). CITY and OWNERS may be referred to herein individually as a "Party" or collectively as the "Parties" or the "Parties to this Agreement."
A. Recitals.
(1) California Government Code Section 50280, et seq. authorizes the CITY to enter into contracts with the OWNERS of qualified Historical Property to provide for the use, maintenance, and restoration of such Historical Property so as to retain its characteristics as property of historical significance. (2) OWNERS possess fee title in and to that certain real property, together with associated structures and improvements thereon, shown on the 1998 Santa Clara County Property Tax Rolls as Assessors' Parcel Number 224-27-001 and generally located at the street address 1711 Main Street, in the City of Santa Clara, ("Historic Property"). A legal description of the Historic Property is attached hereto as "Legal Description," marked as "Exhibit "A," and incorporated herein by reference. (3) The Historic Property is on the City of Santa Clara Historic Resources Inventory.
(4) CITY and OWNERS, for their mutual benefit, now desire to enter into this agreement both to protect and preserve the characteristics of historical significance of the Historic Property and to qualify the Historic Property for an assessment of valuation pursuant to Section 439.2 of the California Revenue and Taxation Code.

B. Agreement.

NOW, THEREFORE, CITY and OWNERS, in consideration of the mutual covenants and conditions set forth herein, do hereby agree as follows:

Mills Act 1711 MainStreet 1
(1) Effective Date and Term of Agreement This Agreement shall be effective and commence on {JtJ;TOf3E7t., ltfnf, 2000, and shall remain in effect for a term of ten (10) years thereafter. Each year upon the anniversary of the effective date, such initial term will automatically be extended as provided in paragraph 2, below. (2) Renewal.
(a) Each year on the anniversary of the effective date of this Agreement, ("renewal date"), one (1) year shall automatically be added to the initial term of this Agreement unless notice of nonrenewal is mailed as provided herein. (b) If either the OWNERS or CITY desire in any year not to renew the Agreement, OWNERS or CITY shall serve written notice of nonrenewal of the Agreement. Unless such notice is served by OWNERS to CITY at least ninety (90) days prior to the annual renewal date, or served by CITY to OWNERS at least sixty (60) days prior to the annual renewal date, one (1) year shall automatically be added to the balance of the remaining term of the Agreement as provided herein. (c) OWNERS may make a written protest of the notice. CITY may, at any time prior to the annual renewal date of the Agreement, withdraw its notice to OWNERS of nonrenewal. If either CITY or OWNERS serves notice to the other of nonrenewal in any year, the Agreement shall remain in effect for the balance of the term then remaining, either from its original execution date or from the last renewal date of the Agreement, whichever may apply.
(3) Standards for Historical Property. During the term of this Agreement, the Historic Property shall be subject to the following conditions, requirements, and restrictions:
(a) OWNERS shall preserve and maintain the characteristics of historical significance of the Historic Property. "The Secretary of Interior's Rehabilitation Standards," marked as Exhibit "B" to this agreement, and incorporated herein by this reference, contains a list of those minimum standards and conditions for maintenance, use, and preservation of the Historic Property, which shall apply to such property throughout the term of this Agreement.
(b) OWNERS shall, when necessary or as determined by the Director of Planning and Inspection, restore and rehabilitate the property according to the rules and regulations of the Office of Historic Preservation of the State Department of Parks and Recreation and in accordance with the attached schedule of potential home improvements, drafted by the applicant owners and approved by the City Council, attached hereto as "The Description of the Preservation and Restoration Efforts," marked as Exhibit "C" to this agreement, and incorporated herein by this reference. (c) OWNERS shall allow for periodic examinations, by prior Mills Act 1711 MainStreet 2
appointment, of the interior and exterior of the Historic Property by representatives of the County Assessor, State Department of Parks and Recreation, State Board of Equalization, and the CITY. The Director of Planning and Inspection shall determine when periodic examinations may be necessary to determine the eligibility of the property involved, and to determine the OWNERS' compliance with the terms and provisions of this Agreement.
(4) Provision for Information.
(a) OWNERS hereby agree to furnish CITY with any and all information requested by the CITY to determine compliance with the terms and provisions of this Agreement.
(b) It shall be the duty of the OWNERS to keep and preserve, for the term of the Agreement, all records as may be necessary to determine the eligibility of the property involved, and the OWNERS' compliance with the terms and provisions of this Agreement, including, but not limited to blueprints, permits, historical and/or architectural review approvals, and schedules of potential home improvements drafted by the OWNERS and approved by the City Council.
(5) Cancellation.
(a) CITY, following a duly noticed public hearing as set forth in California Government Code Sections 50280, et seq., may cancel this Agreement if it determines any one of the following:
(i) the OWNERS breached any of the terms or conditions of this Agreement; (ii) the OWNERS have allowed the property to deteriorate to the point that it no longer meets standards for a qualified historic property; (iii) the OWNERS have allowed the property to deteriorate to the point that it no longer meets standards as provided for in the Uniform Codes as adopted by the City Code, which include, but are not limited to the Uniform Housing Code, the California State Historic Building Code, the Uniform Fire Code, and the Uniform Code for the Abatement of Dangerous Buildings;
(iv) the OWNERS have not complied with any other local, state, or federal laws and regulations.
(b) CITY may also cancel this Agreement if it determines that the OWNERS have failed to restore or rehabilitate the property in the manner specified in Mills Act I 711 MainStreet 3
subparagraph 3(b) of this Agreement.
(c) In the event of cancellation, OWNERS shall be subject to payment of those cancellation fees set forth in California Government Code Sections 50280, et seq.
(6) No Waiver of Breach"
(a) No waiver by CITY of any breach under this Agreement shall be deemed to be a waiver of any other subsequent breach. CITY does not waive any claim of breach by OWNERS if CITY does not enforce or cancel this Agreement. All other remedies at law or in equity which are not otherwise provided for under the terms of this Agreement or in the City's laws and regulations are available to the City. (7) Arbitration.
(a) Any controversies between OWNERS and CITY regarding the construction or application of this Agreement, and claim arising out of this contract or its breach, shall be submitted to arbitration upon the written request of one party after the service of that request on the other party.
(b) If a dispute arises under this contract, either party may demand arbitration by filing a written demand with the other party. (c) The parties may agree on one arbitrator. If they cannot agree on one arbitrator, there shall be three: one named in writing by each of the parties within five days after demand for arbitration is given, and a third chosen by the two appointed.

Should either party refuse or neglect to join in the appointment of the arbitrator( s) or to furnish the arbitrator(s) with any papers or information demanded, the arbitrator(s) may proceed ex parte.
(d) A hearing on the matter to be arbitrated shall take place before the arbitrator(s) in the city of Santa Clara, County of Santa Clara, state of California, at the time and place selected by the arbitrator(s). The arbitrator(s) shall select the time and place promptly and shall give party written notice of the time and place at least fifteen (15) days before the date selected. At the hearing, any relevant evidence may be presented by either party, and the formal rules of evidence applicable to judicial proceedings shall not govern. Evidence may be admitted or excluded in the sole discretion of the arbitrator(s). The arbitrator(s) shall hear and determine the matter and shall execute and acknowledge the award in writing and cause a copy of the writing to be delivered to each of the parties.
(e) If there is only one arbitrator, his or her decision shall be binding and conclusive on the parties; and if there are three arbitrators, the decision of any two shall be binding and conclusive. The submission of a dispute to the arbitrator(s) and Mills Act 1711 MainStreet 4
the rendering of a decision by the arbitrator(s) shall be a condition precedent to any right of legal action on the dispute. A judgment confirming the award may be given by any Superior Court having jurisdiction, or that Court may vacate, modify, or correct the award in accordance with the prevailing provisions of the California Arbitration Act. (f) The costs of arbitration shall be borne by the losing party or shall be borne in such proportions as the arbitrator(s) determine. (8) Binding Effect of Agreement.
(a) The OWNERS hereby subject the Historic Property described in Exhibit "A" hereto to the covenants, reservations, and restrictions as set forth in this Agreement. CITY and OWNERS hereby declare their specific intent that the covenants, reservations, and restrictions as set forth herein shall be deemed covenants running with the land and shall pass to and be binding upon the OWNERS' successors and assigns in title or interest to the Historic Property. Each and every contract, deed, or other instrument hereinafter executed, covering, encumbering, or conveying the Historic Property, or any portion thereof, shall conclusively be held to have been executed, delivered, and accepted subject to the covenants, reservations, and restrictions expressed in this Agreement, regardless of whether such covenants, reservations, and restrictions are set forth in such contract, deed, or other instrument. (b) CITY and OWNERS hereby declare their understanding and intent that the burden of the covenants, reservations, and restrictions set forth herein touch and concern the land in that OWNERS' legal interest in the Historic Property. (c) CITY and OWNERS hereby further declare their understanding and intent that the benefit of such covenants, reservations, and restrictions touch and concern the land by enhancing and maintaining the historic characteristics and significance of the Historic Property for the benefit, which includes, but is not limited to the benefit to the public street generally located at 1711 Main Street, CITY, public, and OWNERS.
(9) Notice.
(a) Any notice required to be given by the terms of this Agreement shall be provided at the address of the respective parties as specified below or at any other address as may be later specified by the parties hereto.

CITY: City of Santa Clara
Attn: City Clerk
1500 Warburton Avenue
Santa Clara, CA 95050
Mills Act 1711 MainStreet 5
OWNERS: Alan and Bertha Dent
1711 Main Street
Santa Clara, CA 95050
(b) Prior to the entering a contract for sale of the Historic Property, OWNERS shall give thirty (30) days notice to the CITY and it shall be provided at the address of the respective parties as specified above or at any other address as may be later specified by the parties hereto.
(10) No Partnership or Joint Enterprise Created. None of the terms, provisions, or conditions of this Agreement shall be deemed to create a partnership between the parties hereto and any of their heirs, successors, or assigns; nor shall such terms, provisions, or conditions cause them to be considered joint ventures or members of any joint enterprise.
(11) Hold Harmless and Indemnification. To the extent permitted by law, OWNERS agree to protect, defend, hold harmless and indemnify CITY, its City Council, commissions, officers, agents, 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 OWNERS shall become legally liable arising from OWNERS' acts, errors, or omissions with respect to or in any way connected with the prosecution of the work performed by OWNERS pursuant to this Agreement.
(12) Attorneys' Fees. In the event legal proceedings are brought by any party or parties to enforce or restrain a violation of any of the covenants, reservations, or restrictions contained herein, or to determine the rights and duties of any party hereunder, the prevailing party in such proceeding may recover all reasonable attorney's fees to be fixed by the court or arbitrator, in addition to costs and other relief ordered by the court.
(13) Restrictive Covenants Binding. All of the agreements, rights, covenants, reservations, and restrictions contained in this Agreement shall be binding upon and shall inure to the benefit of the parties herein, their heirs, successors, legal representatives, assigns and all persons acquiring any part or portion of the Historic Property, whether by operation of law or in any manner pursuant to this Agreement. (14) Mills Act Historic Property Contract Application Requirements. An application for a Mills Act Historic Property Contract shall be made through the Planning Division and shall include the following:
a. a Historic Resources Inventory form;
b. the description of the preservation or restoration efforts to be undertaken Mills Act 1711 MainStreet 6
as referenced in paragraph 3 (b) as Exhibit "C";
c. a statement of justification for the Mills Act Historic Property designation and reassessment; and,
d. the Mills Act Historic Property Contract filing fee pursuant to paragraph

17. (15) Mills Act Historic Property Contract Approval. Based upon the Historic and Landmarks Commission's ("Commission") review of the Mills Act Historic Property Contract criteria and recommendation to Council, and based upon the recommendation and approval by Council, a Mills Act Historic Property Contract may be entered into with OWNERS. The decision of the City Council shall be final and conclusive in the matter. Failure of the Council to act on a Mills Act Historic Property Contract within 45 days shall be deemed to be a denial. (16) Recordation. No later than twenty (20) days after the parties execute and enter into this Agreement, the CITY shall cause this Agreement to be recorded in the office of the County Recorder of the County of Santa Clara. (17) Fees. The Planning Department may collect such Mills Act Historic Property Contract application fee of $200.00 (two hundred dollars), or other fees for the administration of this contract as are authorized from time to time by the City Council.

OWNERS shall pay the County Recorder's Office recordation fees for recordation of this Mills Act Historic Property Contract and the recordation of the OWNERS' updated Historic Resources Inventory form.
(18) Ordinary Maintenance. Nothing in this contract shall be construed to prevent the ordinary maintenance or repair of any exterior architectural feature in or on any Historic Property covered by this contract that does not involve a change in design, material, or external appearance thereof, nor does . this contract prevent the construction, reconstruction, alteration, restoration, demolition, or removal of any such external architectural feature when the Director of Planning and Inspection determines that such action is required for the public safety due to an unsafe or dangerous condition which cannot be rectified through the use of the California State Historic Building Code and when such architectural feature can be replaced according to the Secretary of Interior's Standards.
(19) California State Historic Building Code. The California State Historic Building Code ("SHBC") provides alternative building regulations for the rehabilitation, preservation, restoration, or relocation of structures designated as Historic Properties.

The SHBC shall be used in the CITY's building permit procedure for any Historic Property which is subject to the provisions of a Mills Act Historic Property Contract, except as otherwise provided in this agreement or the SHBC. Nothing in this agreement shall be deemed to prevent any fire, building, health, or safety official from enforcing laws, ordinances, rules, regulations, and standards to protect the health, Mills Act 1711 MainStreet 7
safety, welfare, and property of the owners or occupants of the Historic Property or the public.
(20) Preservation Easements.
(a) Preservation easements on the facades of buildings designated as a Historical Property may be acquired by the CITY, or on the CITY's behalf, by a nonprofit group designated by the CITY through purchase, donation, or condemnation pursuant to California Civil Code Section 815.
(b) The owner(s), occupant, or other person in actual charge of a Historical Property or a resource, building, or structure shall keep in good repair all of the exterior portions of such Historic Property, resource, building, or structure, and all interior portions thereof whose maintenance is necessary to prevent deterioration and decay of any exterior architectural feature.
(c) It shall be the duty of the Director of Planning and Building Inspection to enforce this section.
(21) Severability. If any section, sentence, clause, or phrase of this contract is, for any reason, held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, or by subsequent preemptive legislation, such decision shall not affect the validity and enforceability of the remaining provisions, or portions of this contract, and shall not be affected thereby. The City Council hereby declares that it would have passed this contract and adopted this contract, and each section, sentence, clause, or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, or phrases be declared invalid or unconstitutional. (22) Integrated Agreement ~ Totality of Agreement. This Agreement embodies the agreement between CITY and OWNERS and its terms and conditions.

No other understanding, agreements, or conversations, or otherwise, with any officer, agent, or employee of CITY prior to execution of this Agreement shall affect or modify any of the terms or obligations contained in any documents comprising this Agreement.

Any such verbal agreement shall be considered as unofficial information and in no way binding upon CITY.
(23) Captions. The captions of. the various sections, paragraphs and subparagraphs are for convenience only and shall not be considered or referred to in resolving questions of interpretation.
(24) Statutes and Law Governing Contract. This Agreement shall be governed and construed in accordance with the statutes and laws of the State of California.
(25) Amendments. This Agreement may be amended, in whole or in part, Mills Act 1711 MainStreet 8
only by a written recorded instrument executed by the parties hereto.

IN WITNESS WHEREOF, CITY and OWNERS have executed this Agreement on the day and year first written above.

APPROVED AS TO FORM:

ATTEST:

By:~ <f: .d:,,,,t,.

J.0CCIGNOE
City Clerk

CITY OF SANT A CLARA
Address:
1500 Warburton Avenue
Santa Clara, California 95050
Telephone: (408) 984-3000
"City"
(Signature of Person(s) executing the Agreement on behalf of Owner(s)) By: ___ q_£ __ _
Alan Michael Dent Title: Owner
and
Title: Owner
Local Address: 1711 Main Street
Santa Clara, CA 95050
Telephone: (408) 249-8532
I :\p\2000\hlc\millsact\ 1711 Maincontract
Mills Act I 711 Main 9
California All-Purpose Acknowledgment

STATE OF CALIFORNIA
) ss

COUNTY OF SANTA CLARA)
On October 23, 2000, before me, Bernadette Desousa, a Notary Public in and for said County and State, personally appeared Jennifer Sparacino personally known to me to be the person whose name is subscribed to the within instrument and acknowledged to me that she executed the same in her authorized capacity, and that by her signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. j ft ft A.A.Al :1h4' A ft ft ft ft r
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z ~ Notary Public - Califania i z ~
J . Santo Claro County l
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WITNESS my hand and official seal.

NOTARY PUBLIC, STATE OF CALIFORNIA
THIS CERTIFICATE MUST BE ATTACHED TO THE DOCUMENT DESCRIBED BELOW:

Historic Property Preservation Agreement (Mills Act) - 1711 Main Street.

STATE OF CALIFORNIA )
) ss

COUNTY OF SANTA CLARA)
California All-Purpose Acknowledgment
On October 13, 2000 , before me, Bernadette Desousa , a Notary Public in and for said County and State, personally appeared Alan Michael Dent and Bertha Maria Banuet Dent proved to me on the basis of satisfactory evidence to be the persons whose names are subscribed to the within instrument and acknowledged to me that they executed the same in their authorized capacities, and that by their signatures on the instrument the persons, or the entity upon behalf of which the persons acted, executed the instrument.
~ ·41~~ o A RYUBUC, STATE OF CALIFORNIA
THIS CERTIFICATE MUST BE ATTACHED TO THE DOCUMENT DESCRIBED BELOW:

Historic Property Preservation Agreement - 1711 Main Street.

The Legal Description of Historic Property
Exhibit "A"
Assessor's Parcel Number: 224-27-001
Address: 1711 Main Street
Legal Desc1iption:

Situated in the City of Santa Clara
BEGINNING at the intersection of the Northwesterly line of Reeve Street, with the Northeasterly line of Main Street, as said Streets are shown on the Map hereinafter referred to; thence Northeasterly along the Northwesterly line of said Reeve Street, 102.50 feet to the Southernmost corner of that certain parcel of land as conveyed by Frances Dutra Andrada to Arthur J. Williams, et ux, by Deed dated December 4, 1945 and recorded December 11, 1945 in Book 130i of Official Records, Page 376, Santa Clara County Records; thence Northwesterly along the said Southwesterly line of said parcel so conveyed to Williams, 60 feet, more or less, to the Easternmost corner of that certain parcel of land as conveyed in the Deed from Frances Dutra P.JJ.drada to Joseph L. Mello, et ux, dated November 6, 1947 and recorded November 6, 1947 in Book 1453 of Official Records, Page 237, Santa Clara County Records; thence Southv,resterly along the Southeasterly line of said parcel so conveyed to Mello, 102.50 feet to the said Northeasterly line of Main Street; thence Southeasterly along said Northeasterly line of Main Street, 60 feet to the point of beginning.

Bein.g a portion of Lot 3 of Block 8 North, Range 1 West, as shown upon that certain Map entitled, "Map of the town and sub-lots oCSanta Clara, Santa Clara County, California, surveyed by J.J. Bowen, County Surveyor, July, 1866", which Map was filed for record in the Office of the Recorder of the County of Santa Clara, State of California, in Book "B" of :tv'faps, at Page 103.

Assessor's Parcel Number: 224-27-001
The Secretary of Interior 1 s Rehabilitation Standards
Exhibit "B.,
"Rehabilitation means the process of returning a property to a state of utility, through repair or alteration, which makes possible an efficient contemporary use while preserving those portions and features of the property which are significant II
to its historic, architectural, and cultural values,
The following "Standards for Rehabilitationr• shall be used by the Secretary of the Interior when determining if a
rehabilitation project qualifies as "certified rehabilitation'r pursuant to the Tax Reform Act of 1976, the Revenue Act of 1978, and the Economic Recovery Tax Act of 1981. These standards are a section of the Secretary's "Standards for Historic Pres er vat ion Pro j e ct s 11 and appear i u Ti t 1 e 3 6 o f the Code of Federal Regulations, Part 67 (formerly 36 CFR Part 1208).

1. Every reasonable effort shall be made to provide a compatible use for a property which requires minimal alteration of the building, structure, or site and its environment, or to use a property for its originally intended purpose.

2. The distinguishing original qualities or character of a building, structure, or site and its environment shall not be destroyed. The removal or alteration of any historic material or distinctive architectural features should be avoided when possible.

3. All buildings, structures, and sites shall be recognized as products of their ow"T'. time. Alterations that have no historical basis and which seek to create an earlier appearance shall be discouraged.

4. Changes which may have taken place in the course of time are evidenie of the history and development of a building, structure, or site and its environment. These changes may have acquired significance in their own right, and this significance shall be recognized and respected.

5. DistL.-lctive stylistic features or examples of skilled craftsmanship which characterize a building, structure, or site shall be treated with sensitivity.

6. Deteriorated architectural features shall be repaired rather than replaced, wherever possible. In the event replacement is necessary, the new material should match the material being replaced in composition, design, color, texture, and other visual qualities.

Repair or replacement of missing architectural features should be based on accurate duplications of features, substantiated by historic; physical, or pictorial evidence rather than on conjectural designs or the availability of different architectural elements from other buildings or structures.

7. The surface cleaning of structures shall be undertaken with che gentlest means possible. Sandblasting and other cleaning methods that will damage the historic building materials shall nOt be undertaken.

8. Every reasonable effort shall be made to protect and preserve archeological resources affected Dy, or adjacent to any project.

9. Contemporary design for alterations and additions to existing properties shall not be discouraged when such alterations and additions do not destroy significant historical, architectural or cultural material, and such design is compatible with the size, scale, color, material, and character of the property, neighborhood or environment.

10. Wherever possible, new additions or alterations to structures shall be done in such a manner that if such additions or alterations were to be removed in the future, the essential form and integrity of the structure would be unimpaired,

GUIDELINES FOR APPLYING THE SECRETARY OF THE INTERIOR'S STANDARDS FOR

REHABILITATION
The following guidelines are designed to help individual property owners formulate plans for the rehabili.tation, preservation, and continued use of historic buildings consistent with the intent of the Secretary of the Interior's "Standards for Rehabilitation." The guidelines pertain to buildings of all occupancy and construction types, sizes, and materials. They apply to permanent and temporary construction on the exterior and interior of historic buildings ~s well as new attached or adjacent construction.

Techniques, treatments, and methods consistent with the Secretary's "Standards for Rehabilitation" are listed in the "recommended" column on the left. Not all recommendations listed under a treatment will apply to each project proposal. Rehabilitation auproaches, materials, and methods which may adversely affect a building's architectural and historic qualities are listed in the "not recommended" column on the right. Every effort will be made to uodate and expand the guidelines <l.S arlditional techniques and treatments become known.

Specific information on rehabilitation and preservation technology may be obtained by writing to the Technical Preservation Services Division, National Park Service, U.S. Department of the Interior, Washington, D.C. 20240, or the appropriate State Historic Preservation Officer. Advice should also be. sought from qualified professionals, including architects, architectural historians, and archeologists skilled in the preservation, restoration, and rehabilitation of old buildings.

To: Gloria Sciara
Historic Resources Coordinator
City of Santa Clara, City Planning Office
From: Alan M. Dent & Bertha M. Banuet-Dent
Subjed: Application for Mms Act Historic Prnperty Contrad for 1711 Main Street 1) We are requesting to enter into a Mills Act Contract for our property at 1711 Main Street in Santa Clara, Parcel number 224-27-1.
2) The house is listed in the City of Santa Clara Architecturally or Historically Significant Properties as Adopted by City Council April, 1991, rev. 3/15/99. It is listed as a Pioneer Gothic revival with an uncertain build date of 1905. The house does have square nails which were supposedly discontinued prior to 1900. 3) The Historic Resources Inventory on this house is on file at the City Planning Offices and was prepared Jan. 1981 with previous owners.
4) We purchased the house in March of 2000. While the basic structure of the house was in good condition, the house suffers from substandard work, uncompleted remodeling, and generally poor upkeep. The house inspection report generalized that other than the electric, gas, water, mud sill foundation, garage, yard, enclosed rear addition roof and floor, lack of appliances (furnace, stove, washer/dryer etc .. ), floors, and peeling paintjob, the house was in good shape. The Inspection report is available upon request. 5) The basic house measures 24'x36' or around 864 sq. ft. At the time of purchase, the previous homeowner included the upstairs section in the area calculation but that area is not habitable since it lacks ventilation, windows, and egress. 6) I am estimating that I can afford around $10,000/year for home rehabilitation while our property tax is close to $4000/year. I do not want to go further in debt to make the house more livable so the benefits that a Mills act contract would have on the house are direct. 7) The following is an itemized list that we are considering as part of the rehabilitation process. We are willing to consider any suggestions you may have.

1. Rewire House -This project is already in process. House originally had 30 amp single phase fuse box and knob & tube wiring. A Romex circuit was recently added by the previous owner but not installed properly. Floor sockets are not covered and wire junctions are just hanging. Current wiring is a safety hazard; especially since we are expecting a child in October (year 0).

2. Paint Outside House - Exterior paint is peeling and falling off. Many surfaces are not covered. Scrape old paint, possible lead paint hazard. (Year 1)

3. Paint Inside House -Interior white paint is more yellow. Walls are inconsistent in material, texture, and cover. Possible lead paint hazard. (year 1)

4. Install kitchen cabinets -There are no cabinets or counters in the kitchen. (year 1)

5. Remove ugly aluminum shed -Previous owner placed shed in driveway. (year 2)

6. Remove Chain link fence and replace with wood picket fence-Chain link fence is a tacky eyesore and is not of period. (year 2-3)

7. Repair/Replace and re-finish floorboards -Softwood floorboards are missing, soaked in Termite poison, replaced with fiberboard, and in need of refinishing.(year 3-4)

8. Install Sprinkler System and repair yard-although not of historic period, a sprinkler system is needed to properly water the yard before the yard is replanted. The yard is mainly weeds. (year 4-5)

9. Replace Garage -The current garage roof is exposed and open, much of the garage is damaged, and the wood floors are unserviceable. The current garage measures 10'x30' and makes the backyard un-useable. We would replace the garage with a 20'x24' garage. The appearance would be closer to that of a barn in that the door style would remain similar (swing out). (year 1-4)

10. Install Basement -With under 900 sqft of living space and not permitted to build up, we would like to replace the Mud Sill foundation with a cement basement foundation The 100 year old wood currently in contact with the ground does show signs of damage. (years 5-8)

11. Ventilate Roof-Currently the roof lacks any ventilation except for the holes in the roof. We need suggestions as to what methods are acceptable. (year 1-2)

12. Install heating/AC system -The house does not have any type ofHVAC. (year 1)

13. Install new plumbing -Replace current plastic hose main pipe with copper pipe.

Finished after new basement. (year 8)

14. Add on to rear of house -We have been advised that the house cannot be made any wider, our only choice is then to make the house longer. When the basement is added, we will need to move the house forward a few feet to allow room for adding on. (Year 7-10).

15. Move water heater inside -When we bought the house, the water heater was outside and exposed on a rotting wooden stand outside. I have temporarily placed it on a metal stand in a metal enclosure. Considerations for the water heater are to place it inside the basement or garage once completed. There is not any room currently inside the house for the water heater.

16. Build wood enclosure for electrical panel. The metal electrical panel would look better inside a wooden enclosure. (year 1-3)
AlanM. Dent
Homeowner
1 711 Main Street
Santa Clara, CA 95050
( 408) 249-8532 (h)
(408) 584-4117 (w)
Bertha M. Banuet-Dent
State of Caiifornia - The ' es Agency 3er. No.

DEPARTMENT OF PARKS ,, r1ECREATION

HISTORIC RESOURCES INVENTORY
HASS Hf.ER NR __ SHL __ Loe __
UTM: At~lg{31Yof[i3Vb~O B _______ _
c _______ D
IDENTIFICATION none

1. Common name: ---------------------------------------

2. 3.

Historic name: ___ n_o_n_e _________________________________ _ Street or rural address: __ 1_7_1_1 __ M_a_i_· _n_S_t_r_e_e_t _______________________ _ Citv.. __ s_a_n_t_a_C_l_a_r_a _________ Zip _______ County __ s_a_n_t_a __ c_l_2_r_a _____ _

4. Parcel number: _...1.?~;1a.:-:.?{..../-.=.-..J._ ___________ ---'-____________________ _

5. Present Owner: _ J_o_h_n_a_n_d_M_a_r...,y_F_l_o_r ___________ Address: 1 71 1 Main $ t reet City ______ S_a_n_t_a_C_l_a_r_a ____ Zip 95050 Ownership is: Public _____ Private _____ _

6. Present Use: ___ r_e_s_i_d_e_n_c_e ________ Original use: __ r_e_s_i_d_e_n_c_e ___________ _

DESCRIPTION
7a. Architectural style: Pioneer /Gothic Revival
7b. Briefly describe the present physical description of the site or structure and describe any major alterations from its original condition:
1711 Main Str~et is a one-story, square in plan, Pioneer and Gothic Revival cottage. The most notable element of the style is the center gablet at the roof facade. The house is sheathed in shiplap siding. A plain frieze, trimmed in white, highlights the cornice. The centered front door is covered by a small shed roof supported by two squared wood columns. The facade is symmetrical with double-hung windows located on either side of the porch. A paneled front door can be seen behind the screen door.

8. Constructj~6f..:j_ 0 .

Estimated ____ t=actual __ _

9. h. unknown Arc 1tect _________ _
1 O. Bu ilder __ u:::_n~k.:.:n::::.o.:.:w.:..n,___ ____ _

11. Approx. property size ( in feet)
Fronra~---- De~h----
or approx. acreage ______ _

12. Date(s) of endosed photograph(s)
March '79

13. 14.

Conditio·n:

Alterations:

Excellent __ G. J _,. __ Fair __ Deteriorated __ No lon!:l~,-in existence no apparent exterior ~lt~ratio6s

15. Surroundings: (Check more than one if necessary) Open land __ Scattered buildings __ Derisely built-up __ _ Residential ~Industrial __ Commercial_·_· _Other:

16. Threats to site: None known __ Private development__ Zoning __ Vandalism Public Works project__ Other: __,r.<:.,._,,e,.,;=...,.._· ....w .... "-'='-i..._ ____________________ _

17. Is the structure: On its original site? X Moved? ___ _ Unknown? ___ _

18. Related features: =----------------------------------------

SIGNIFICANCE

19. Briefly state historical and/or architectural importance (include dates, events, and persons as~ociated with the site.)

20. 21.

22. 1711 Main Street represents an example of P~oneer and Gothic.~ styles combined to form a small workingman's cottage. While the house does not qualify for listing on the Nation~l Registe~J it has been noted as an example ·of a particular style loca1.T~:(;·· and is located within one of Santa Clara's oldest neighborhoods.

Examination of Sanborn Fire Insurance Maps, and City directories show that the house was built sometime between 1901 and 1919.

Main theme of the historic resource: (lf more than one is checked, number in order of importance.)
-Architecture __,. ___ Arts & Leisure ______ _
Economic/Industrial __ Exploration/Settlement ___ _
Government ____ Military ________ _
Religion ______ Social/Education _____ _
Sources (List books, documents, surveys, personal interviews and their dates).

Sanborn Fire Insurance Maps,
1891, 1901, 1930
City directories, 1900, 1920,
1925.

Jan. 1981 Date form prepared _____________ _
By (name) Urban/Rural Conservation fo
Organizationcity of Santa Clara
Address: l 500 Warburton Avenue
City " Santa Clara Zip 95050
Phone:. 984-3111 •
Locational sketch map (draw and label site and
surrounding streets, roads, and prominent landmarks):
, \ , iNORTH
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THE CITY OF SANTA CLARA

OFFICE OF THE

CITY CLERK/CITY AUDITOR
www.ci.santa-clara.ca. us

CALIFORNIA

CITY HALL
1500 WARBURTON AVE.

SANTA CLARA. CA 95050
(408) 615-2220
FAX (408) 241-6771

EXTRACT OF CITY COUNCIL MINUTES OF THE CITY
OF SANTA CLARA FOR MEETING HELD ON OCTOBER 10, 2000
............ "MOTION was made by Diridon, seconded and unanimously carried (Matthews and Nadler absent), that, per the Director of Planning and Inspection (8/24/00), the Council approve and authorize the City Manager to execute a Historic Property Preservation Agreement (Mills Act) with Alan and Bertha Dent for the property located at 1711 Main Street which will qualify the property for tax incentives." ....... ..

I, the undersigned City Clerk of the City
of Santa Clara, do hereby certify that the
above and foregoing is a true and correct
copy of an Excerpt of the Minutes of a
meeting of the City Council of the City of
Santa Clara, held on
October 10, 2000,
J
AFTER RECORDING RETURN TO: RECEIVED
City of Santa Clara
City Clerk
OCT 2 7 1998
1500 Warburton Avenue PLANNING DEPT.

Santa Clara, CA 95050 . ~ This document has
. . '.'-.--.-~ . d 'th the original.

Rat aeeli ggmparca o~~TY RECORDER
eANtACLARA .

IDSTORIC PROPERTY PRESERVATION AGREEMENT
• This Agreement, (herein, "Agreement"), is made and entered into this o2),J day of T dJ. , 1998, ("Effective Date"), by and between, Michael Kohl ("OWNER"), owner""aicertain real property located in Santa Clara, and the City of Santa Clara, California; a chartered municipal corporation, ("CITY"). CITY and OWNERS may be referred to herein individually as a "Party" or collectively as the "Parties" or the· "Parties to this Agreement. II A. Recitals.
(1) California Government Code Section 50280, et seq. authorizes the CITY to enter into contracts with the OWNERS of qualified Historical Property to provide for the use, • maintenance; and restoration of such Historical Property so as to retain its characteristics as · property of historical significance. · • • •
(2) OWNERS possess fee title in and to that certain real property, together with . associated structures and . improvements thereon, shown on the .1998 Santa Clara County Property Tax Rolls as Assessors' Parcel Number 269-20-095, and generally located at the street address 906 Monroe Street, in the City of Santa Clara, ("Historic Property"). A legal description of the Historic Property is attached hereto as "Legal Description," marked as "Exhibit "A," and incorporated herein by reference.
(3) The Historic Property is on the City of Santa Clara Historic Resources Inventory.
(4) CITY and OWNERS, for their mutual benefit, now desire to enter into this agreement both to protect and preserve the characteristics of historical significance of the Historic Property and to qualify the Historic Property for an assessment of valuation pursuant . to Section 439 .2 of the California Revenue and Taxation Code.

B. Agre:ement.

NOW; THEREFORE, CITY and OWNERS, in consideration of the mutual covenants · and conditions set forth herein, do hereby agree as follows:

Mills Act Contract - 906 Monroe Street
cf'&if •~e:?.-t 1~·· ·rti.,b ·City ui
Sa:nila Car,.. f,e,cowded h-""1i
of eb;Lpgcc .,a· der §ectlo,'l 6105
of ~tig t,; .. _., , ~· -.· ,)•71#'!,.~·mit C,(i6.e..
(1) Effective Date and Term of Agreement. This Agreement shall be effective and commence on June 23 , 1998, and shall remain in effect for a term of ten (10) years thereafter. Each year upon the anniversary of the effective date, such initial term will automatically be extended as provided in paragraph 2, below. (2) Renewal.
(a) Each year on the .anniversary of the effective date of this Agreement, ("renewal date"), one (1) year shall automatically be added to the initial term of this Agreement unless notice of nonrenewal is mailed as provided herein. (b) If either the OWNERS or CITY desire in any year not to renew the Agreement, OWNERS or CITY shall serve written notice of nonrenewal of the Agreement.

Unless such notice is served by OWNERS to CITY at least ninety (90) days prior to the annual renewal date, or served by CITY to OWNERS at least sixty (60) days prior to the annual renewal date, one (1) year shall automatically be added to the balance of the remaining term of the Agreement as provided herein.
(c) OWNERS may make a written protest of the notice. CITY may, at any time prior to the annual renewal date of the Agreement, withdraw its notice to OWNERS of nonrenewal. If either CITY or OWNERS serves notice to the other of nonrenewal in any year, the Agreement shall remain in effect for the balance of the term then remaining, either from its original execution date or from the last renewal date of the Agreement, whichever may apply.
(3) Standards for Historical Property. During the term of this Agreement, the Historic Property shall be subject to the following conditions, requirements, and restrictions:
(a) OWNERS shall preserve and maintain the characteristics of historical significance of the Historic Property. "The Secretary of Interior's Rehabilitation Standards, " marked as Exhibit "B" to this agreement, and incorporated herein by this reference, contains a list of those minimum standards and conditions for maintenance, use, and preservation of the Historic Property, which shall apply to such property throughout the term of this Agreement. (b) OWNERS shall, when necessary or as determined by the Director of Planning and Inspection, restore and rehabilitate the property according to the rules and regulations of the Office of Historic Preservation of the State Department of Parks and Recreation and in accordance with the attached schedule of potential home improvements, drafted by the applicant owners and approved by the City Council, attached hereto as "The Description of the Preservation and Restoration Efforts," marked as Exhibit "C" to this agreement, and incorporated herein by this reference.

Mills Act Contract - 906 Monroe Street 2
~ .. r ~e,ne,tH olt tne City o!
Sant.a Gh.ra. Recorded fz'00
of chllrge under Section 610:l
of lh~ f;-0v~¥1l1ffi®~t (AJd<.!,l.
(c) OWNERS shall allow for periodic examinations, by prior appointment, of the interior and exterior of the Historic Property by representatives of the County Assessor, State Department of Parks and Recreation, State Board of Equalization, and the CITY. The Director of Planning and Inspection shall determine when periodic examinations may be necessary to determine the eligibility of the property involved, and to determine the OWNERS' compliance with the terms and provisions of this Agreement. (4) Provision for Information.
(a) OWNERS hereby agree to furnish CITY with any and all information requested by the CITY to determine compliance with the terms and provisions of this Agreement.
(b) It shall be the duty of the OWNERS to keep and preserve, for the term of the Agreement, all records as may be necessary to determine the eligibility of the property involved, and the OWNERS' compliance with the terms and provisions of this Agreement, including, but not limited to blueprints, permits, historical and/or architectural review approvals, and schedules of potential home improvements drafted by the OWNERS and approved by the City Council.
(5) Cancellation.
(a) CITY, following-a duly noticed public hearing as set forth in California Government Code Sections 50280, et seq., may cancel this Agreement if it determines any one of the following:
(i) · the OWNERS breached any of the terms or conditions of this Agreement; (ii) the OWNERS have allowed the property to deteriorate to the point that it no longer meets standards for a qualified historic property; (iii) the OWNERS have allowed the property to deteriorate to the point that it no longer meets standards as provided for in the Uniform Codes as adopted by the City Code, which include, but are not limited to the Uniform Housing Code, the California State Historic Building Code, the Uniform Fire Code, and the Uniform Code for the Abatement of Dangerous Buildings;
(iv) the OWNERS have not complied with any other local, state, or federal laws and regulations. •
(b) CITY may also cancel this Agreement if it determines that the OWNERS have failed to restore or rehabilitate the property in the manner specified in subparagraph 3(b) of this Agreement.

Page 3 of 9 ends

lt ,.,;(' benetH ot me 0t7f <01'
E,mta \llara. Recorded free
vf d:iarge undel1' Section 6103
w,\ ~h~. f;.,,vl!!l!'l"llM~;l!!lt Cod<>~
(c) In the event of cancellation, OWNERS shall be subject to payment of those cancellation fees set forth in California Government Code Sections 50280, et seq. (6) No Waiver of Breach.
(a) No waiver by CITY of any breach under this Agreement shall be deemed to be a waiver of any other subsequent breach. CITY does not waive any claim of breach by OWNERS if CITY does not enforce or cancel this Agreement. All other remedies at law or in equity which are not otherwise provided for under the terms of this Agreement or in the City's laws and regulations are available to the City .. (7) Arbitration.
(a) Any controversies between OWNERS and CITY regarding the construction or application of this Agreement, and claim arising out of this contract or its breach, shall be submitted to arbitration upon the written request of ol).e party after the service of that request on the other party.
• (b) If a dispute arises under this contract, either party may demand arbitration by filing a written demand with the other party. ( c) The parties may agree on one arbitrator. If they cannot agree on one arbitrator, there shall be three: one named in writing by each of the parties within five days after demand for arbitration is given, and a third chosen by the two appointed. Should either party refuse or neglect to join in the appointment of the arbitrator(s) or to furnish the arbitrator(s) with any papers or information demanded, the arbitrator(s) may proceed ex parte. (d) A hearing on the matter to be arbitrated shall take place before the arbitrator(s) in the city of Santa Clara, County of Santa Clara, state of California, at the time and place selected by the arbitrator(s). The arbitrator(s) shall select the time and place promptly and shall give party written notice of the time and place at least fifteen (15) days before the date selected. At the hearing, any relevant evidence may be presented by either party, and the formal rules of evidence applicable to judicial proceedings shall not govern.

Evidence may be admitted or excluded in the sole discretion of the arbitrator(s). The arbitrator(s) shall hear and determine the matter and shall execute and acknowledge the award in writing and cause a copy of the writing to be delivered to each of the parties. (e) If there is only one arbitrator, his or her decision shall be binding and conclusive on the parties; and if there are three arbitrators, the decision of any two shall be binding and conclusive. The submission of a dispute to the arbitrator(s) and the rendering of a decision by the arbitrator(s) shall be a condition precedent to any right of legal action on the dispute. A judgment confirming the award may be given by any Superior Court having

Page 4 of 9 ends

jurisdiction, or that Court may vacate, modify, or correct the award in accordance with the prevailing provisions of the California Arbitration Act. (f) The costs of arbitration shall be borne by the losing party or shall be borne in such proportions as the arbitrator(s) determine. (8) Binding Effect of Agreement.
(a) The OWNERS hereby subject the Historic Property described in Exhibit "A" hereto to the covenants, reservations, and restrictions as set forth in this Agreement.

CITY and OWNERS hereby declare their specific intent that the covenants, reservations, and restrictions as set forth herein shall be deemed covenants running with the land and shall pass to and be binding upon the OWNERS' successors and assigns in title or interest to the Historic Property. Each and every contract, deed, or other instrument hereinafter executed, covering, encumbering, or conveying the Historic Property, or any portion thereof, shall conclusively be held to have been executed, delivered, and accepted subject to the covenants, reservations, and restrictions expressed in this Agreement, regardless of whether such covenants, reservations, and restrictions are set forth in such contract, deed, or other instrument. (b) CITY and OWNERS hereby declare their understanding and intent that the burden of the covenants, reservations, and restrictions set forth herein touch and concern the land in that OWNERS' legal interest in the Historic Property. (c) CITY and OWNERS hereby further declare their understanding and intent that the benefit of such covenants, reservations, and restrictions touch and concern the land by enhancing and maintaining the historic characteristics and significance of the Historic Property for the benefit, which includes, but is not limited to the benefit to the public street generally located at 1588 Homestead Road, CITY, public, and OWNERS. (9) Notice.
(a) Any notice required to be giveh by the terms of this Agreement shall be provided at the address of the respective parties as specified below or at any other address as may be later specified by the parties hereto.

CITY: City of Santa Clara
OWNER:

Attn: City Clerk
1500 Warburton Avenue
Santa Clara, CA 95050
Michael Kohl
864 Madison Street
Santa Clara, CA 95050

Page 5 of 9 ends

(b) Prior to the entering a contract for sale of the Historic Property, OWNERS shall give thirty (30) days notice to the CITY and it shall be provided at the address of the respective parties as specified above or at any other address as may be later specified by the parties hereto.
(10) No Partnership or Joint Enterprise Created. None of the terms, provisions, or conditions of this Agreement shall be deemed to create a partnership between the parties hereto and any of their heirs, successors, or assigns; nor shall such terms, provisions, or conditions cause them to be considered joint ventures or members of any joint enterprise. (11) Hold Harmless and Indemnification. To the extent permitted by law, OWNERS agree to protect, defend, hold harmless and indemnify CITY, its City Council, commissions, officers, agents, 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 OWNERS shall become legally liable arising from OWNERS' acts, errors, or omissions with respect to or in any way connected with the prosecution of the work performed by OWNERS pursuant to this Agreement.
(12) Attorneys' Fees. In the event legal proceedings are brought by any party or parties to enforce or restrain a violation of any of the covenants, reservations, or restrictions contained herein, or to determine the rights and duties of any party hereunder, the prevailing party in such proceeding may recover all reasonable attorney's fees to be fixed by the court or arbitrator, in addition to costs and other relief ordered by the court. (13) Restrictive Covenants Binding. All of the agreements, rights, covenants, reservations, and restrictions contained in this Agreement shall be binding upon and shall inure to the benefit of the parties herein, their heirs, successors, legal representatives, assigns and all persons acquiring any part or portion of the Historic Property, whether by operation of law or in any manner pursuant to this Agreement.
(14) Mills Act Historic Property Contract Application Requirements. An application for a Mills Act Historic Property Contract shall be made through the Planning Division and shall include the following:
a. a Historic Resources Inventory form;
b. the description of the preservation or restoration efforts to be undertaken as referenced in paragraph 3 (b) as Exhibit "C";
c. a statement of justification for the Mills Act Historic Property designation and reassessment; and,
d. the Mills Act Historic Property Contract filing fee pursuant to paragraph 17.

Page 6 of 9 ends

(15) Mills Act Historic Property Contract Approval. Based upon the Historic and Landmarks Commission's ("Commission") review of the Mills Act Historic Property Contract criteria and recommendation to Council, and based upon the recommendation and approval by Council, a Mills Act Historic Property Contract may be entered into with OWNERS. The decision of the City Council shall be final and conclusive in the matter. Failure of the Council to act on a Mills Act Historic Property Contract within 45 days shall be deemed to be a denial. (16) Recordation. No later than twenty (20) days after the parties execute and enter into this Agreement, the CITY shall cause this Agreement to be recorded in the office of the County Recorder of the County of Santa Clara.
(17) Fees. The Planning Department may collect such Mills Act Historic Property Contract application fee of $200.00 (two hundred dollars), or other fees for the administration of this contract as are authorized from time to time by the City Council. OWNERS shall pay the County Recorder's Office· recordation fees for recordation of this Mills Act Historic Property Contract and the recordation of the OWNERS' updated Historic Resources Inventory form.
(18) Ordinary Maintenance. Nothing in this contract shall be construed to prevent the ordinary maintenance or repair of any exterior architectural feature in or on any Historic Property covered by this contract that does not involve a change in design, material, or external appearance thereof, nor does this contract prevent the construction, reconstruction, alteration, restoration, demolition, or removal of any such external architectural feature when the Director of Planning and Inspection determines that such action is required for the public safety due to an unsafe or dangerous condition which cannot be rectified through the use of the California State Historic Building Code and when such architectural feature can be replaced according to the Secretary of Interior's Standards.
(19) California State Historic Building Code. The California State Historic Building Code ("SHBC") provides alternative building regulations for the rehabilitation, preservation, restoration, or relocation of structures designated as Historic Properties. The SHBC shall be used in the CITY' s building permit procedure for any Historic Property which is subject to the provisions of a Mills Act Historic Property Contract, except as otherwise provided in this agreement or the SHBC. Nothing in this agreement shall be deemed to prevent any fire, building, health, or safety_ official from enforcing laws, ordinances, rules, regulations, and standards to protect the health, safety, welfare, and property of the owners or occupants of the Historic Property or the public.
- (20) Preservation Easements.
(a) Preservation easements on the facades of buildings designated as a Historical Property may be acquired by the CITY, or on the CITY's behalf, by a nonprofit

Page 7 of 9 ends

group designated by the CITY through purchase, donation, or condemnation pursuant to California Civil Code Section 815.
(b) The owner(s), occupant, or other person in actual charge of a Historical Property or a resource, building, or structure shall keep in good repair all of the exterior portions of such Historic Property, resource, building, or structure, and all interior portions thereof whose maintenance is necessary to prevent deterioration and decay of any exterior architectural feature.
(c) It shall be the duty of the Director of Planning and Building Inspection to enforce this section.
(21) Severability, If any section, sentence, clause, or phrase of this contract is, for any reason, held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, or by subsequent preemptive legislation, such decision shall not affect the validity and enforceability of the remaining provisions, or portions of this contract, and shall not be affected thereby. The City Council hereby declares that it would have passed this contract and adopted this contract, and each section, sentence, clause, or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, or phrases be declared invalid or unconstitutional.
(22) Integrated Agreement - Totality of Agreement. This Agreement embodies the agreement between CITY and OWNERS and its terms and conditions. No other understanding, agreements, or conversations, or otherwise, with any officer, agent, or employee of CITY prior to execution of this Agreement shall affect or modify any of the terms or obligations contained in any documents comprising this Agreement. Any such verbal agreement shall be considered as unofficial information and in no way binding upon CITY. (23) Captions. The captions of the various sections, paragraphs and subparagraphs are for convenience only and shall not be considered or referred to in resolving questions of interpretation.
(24) Statutes and Law Governing Contract. This Agreement shall be governed and construed in accordance with the statutes and laws of the State of California.

Ill
Ill
Ill

Page 8 of 9 ends

Ill
Ill
Ill
(25) Amendments. This Agreement may be amended, in whole or in part, only by a written recorded instrument executed by the parties hereto.

IN WITNESS WHEREOF, CITY and OWNERS have executed this Agreement on the day and year first written above.

CITY OF SANTA CLARA
APPROVED AS TO FORM:

ATTEST:

By: <J -e'~~~~
~ BOCCIGNNE
City Clerk
By:~ JVU ~)( <:4Pll/(;CUL~
J~*NIFEi)SP ARA GINO
Citty Manager .

Address:
1500 Warburton Avenue
Santa Clara, California 95050
Telephone: (408) 984-3000
"City"
(Signature of Peraon(s) executing the Agreem;t on beh•:: o~ k t~JJ M°bhael Kohl
Title: Owner
Local Address: 864 Madison Street
Santa Clara, CA 95050
Telephone: (408)985-7676

Page 9 of 9 ends

CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
State of _ ..._C~ a~ / _,__, +b;......._.___C_._n-'-J-, ~·4- --- County of __ S_ CUV1 __ fr:c.-'---__,.C,~ ~~a...:Ci~ - a,~ -- On .Seri ±fJrnker ~ 1917 before me, - -~ '"--""'~C~Y1 ....... Q _.(£ ........ t ~f-k~ _ O~ <l~ ~ ~u .......,..s __ .t::..~ ---- 4f"" Date • Name and Title of Officer (e.g., "Jane Doe. Notary ~ blic") personally appeared m / L ~ Q e_ {
@ pecsooall,r l~nowr:i to me - OR - IA_proved to me on the basis of satisfactory evidence to be the person(v whose name( ~ is~ subscribed to the within instrument and acknowledged to me that heh;b; '~Isley executed the same in his/l:16n'tl !Ci: authorized capacity(i ~ . and that by his/i:todtbe±; signature(lf) on the instrument the person( ~ , or the entity upon behalf of which the person(~ acted, executed the instrument.

WITNESS my hand and official seal.
~ 11.~
Signature of Notci'ry Public
=====================OPTIONAL========================================== Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document.

Description of Attached Document
Title or Type of Document:

Document Date: ________________________ Number of Pages: ________ _ Signer(s) Other Than Named Above: -------------------------------- Capacity(ies) Claimed by Signer(s)
Signer's Name: ______________ _
□ Individual
□ Corporate Officer
Title(s): _______________ _
□ Partner - □ Limited □ General
□ Attorney-in-Fact
□ Trustee
□ Guardian or Conservator
□ Other: _________ _
Signer is Representing :

RIGHT THUMBPRINT
OFSIGNER .

Top of thum b here
Signer's Name: _______________ _
□ Individual
□ Corporate Officer
Title(s) : ________________ _
□ Partner - □ Limited □ General
□ Attorney-in-Fact
□ Trustee
□ Guardian or Conservat or
□ Other:

Signer is Representing :

RIGHT THUMBPR INT

OF SIGNER
Teo of tht.;mo here
F.z;.1° _if..e·rH:ta ot th<t: CHy ot
San-la ~Iara. Reeo,,de<l free
California All-Purpose Acknowledgment

STATE OF CALIFORNIA )
) ss

COUNTY OF SANTA CLARA)
On September 15, 1998, before me, ERNA E. ADDY, a Notary Public in and for said County and State, personally appeared Jennifer Sparacino personally known to me to be the person whose name is subscribed to the within instrument and acknowledged to me that she executed the same in her authorized capacity, and that by her signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument.

I ..... ~ .. ..... 1 .... =-~=, ii Notary Plbllc - Callfornla ! I
SANTA CLARA COUNTY • r
o o o .~ c;n:· ~es ~J 3!: '!98 ~
WITNESS my hand and official seal.

NOTARY PUBLIC, sTATEOC
THIS CERTIFICATE MUST BE ATTACHED TO THE DOCUMENT DESCRIBED BELOW:

Historic Property Preservation Agreement dated June 23, 1998 between the City of Santa Clara and Michael Kohl
f,:;tr henetit ,:,f the CHy 0!
Sanla llllfara, Reeo1rded free,
of ch<!:rge: undGi;, Sectlou 6103
n,f th{" f;-OV!9':rnst:ent Co~&.

California All-Purpose Acknowledgment

STATE OF CALIFORNIA )
) ss

COUNTY OF SANTA CLARA)
On September 21, 1998, before me, ERNA E. ADDY, a Notary Public in and for said County and State, personally appeared Judy Nadler personally known to me to be the person whose name is subscribed to the within instrument and acknowledged to me that she executed the same in .her authorized capacity, and that by her signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. j* 0
i ~
I ..
o a :t:.e • o t • t t •1
ERNAE.ADOV
COMM.# 1039401 g
Notary Public - Callfomla ~
SANTA CLARA COUNTY I Mv Comm. Expires OCT 31, 1998
0OIP00::P#-v0O.,
WITNESS my hand and official seal.

NOTARY PUBLIC, STATE0CALIFORNIA
THIS CERTIFICATE MUST BE ATTACHED TO THE DOCUMENT DESCRIBED BELOW:

Historic Property Preservation Agreement dated June 23, 1998 between the City of Santa Clara and Michael Kohl
The Legal Description of Historic Property
Exhibit "A"
All of that certain parcel as described in that certain Grant Deed recorded in Book 269 of Official Records, at Page 20. Parcel 095, Santa Clara County Records.

Exhibit B
The Secretary The Interior's Standards
The U. S. Department of the Interior established separate Standards for each of the four distinct, but interrelated, approaches to the treatment of historic properties - Preservation, Rehabilitation, Restoration, and Reconstruction. All four Standards may be applied to individual buildings, a complex of buildings, districts, sites, stmctures (i.e., bridges, dams, roadways, \vindmills, aircraft, ships, locomotives, and bandstands) or objects (i.e., sculptures, monuments, boundary markers, statuary, and fountains). Though slightly different, these guidelines address common issues as applicable to each approach. Provided below are the Secretary of the Interior's Standards for Rehabilitation which are very similar to those for Preservation - the major difference being n.vo supplemental standards pertaining to additions or new construction.

Standards for Rehabilitation

1. A property shall be used as it was historically or be given a new use that requires minimal changes to its distinctive materials, features, spaces, and spatial relationships.

2. The historic character of a property shall be retained and preserved. The removal of distinctive materials or alteration of features, spaces, and spatial relationships that characterize a property shall be avoided.

3. Each property shall be recognized as a physical record of its time, place, and use. Changes that create a false sense of historical development, such as adding conjectural features or elements from other historic properties, shall not be undertaken.

4. Changes to a property that have acquired historic significance in their own right shall be retained and preserved.

5. Distinctive materials, features, finishes, and construction techniques or examples of craftsmanship that characterize a property shall be preserved.

6. Deteriorated historic features shall be repaired rather than replaced. Where the severity of deterioration requires replacement of a distinctive feature, the new feature shall match the old in design, color, texture, and, where possible, materials. Replacement of missing features shall be substantiated by documentary and physical evidence.

7. Chemical or physical treatments, if appropriate, shall be undertaken using the gentlest means possi b I e.

Treatments that cause damage to historic materials shall not be used.

8. Archeological resources shall be protected and preserved in place. If such resources must be disturbed, mitigation measures shall be undertaken.

9. New additions, exterior alterations, or related new construction shall not destroy hist01ic materials, features, and spatial relationships that characterize the property. The new work shall be differentiated from the old and shall be compatible with the historic materials, features, size, scale and proportion, and massing to protect the integrity of the property and its environment.

10. New additions and adjacent or related new construction shall be undertaken in such a manner that, if remo':'ed i1;1 the future, the essential form and integrity of the historic property and its environment would be ummpaired.

The Description of the Historic Property
Preservation and Restoration Efforts
Exhibit 11 C11
906 Monroe/1341 Homestead Road, Santa Clara, CA
1999
2000 - 2001
2002 - 2004
2004 - 2005
2005 - 2006
2006 - 2007
2007 - 2008
2009 - 2010
Landscaping and Irrigation
Fencing
Structural and new foundation (906 Monroe)
Structural and new foundation (1341 Homestead Road)
Paint Exterior - 906 Monroe Street
Paint Exterior - 1341 Homestead Road
Paint Interior of both structures
Review and Plan with City next 10 years
C.r1;1fr~n:in ~ Tho Resourccz /\gencv
f PARKS AND RECREAT:C1J
HABS~- ~,-·-·•·· Nii
UTM: A /0 C:6h13'-_lf?.()
SHL __ Loe
H R ESOURCESINVENTORY I C ----·•-···•·····
L-··-------
IDENTIFIC/.\TION 1. Common name: __________ __._ _____________________ _

2. Historic name:------,,--....---,----.-_.,-----------------------1314 I f~CIM<2S~<10J ~C:,,

3. Street or rural address: __;:_9...:.0...:.6_,:;.M.:..o:..:n:.:.;r.:..o.:..e~.;:.S..::.t...;:r...;:e...;:e...;:t;__ _____________________ _ Citv~-S~a_n_t_a __ C_l_a_r_a ____ _ .. Zip _9_5_0_5_0 ____ ... County ~~.~_a_C_l_a_r_a ______ _

5. Present Q,Nner: _E..;..;..l.:..a .... i_n_e_G_i_f_t~---~------- ,A.ddress: ·-· __ 3_8_8_1_K_e_n_s_i_n_t_o_n __ City __ S_a_n~t_a __ C_l_a_r_a _____ Zip , 9505lownership is: Public ____ Private _x ____ _

6. Present Use: Residential Original use: Single Family Residential -------------

DESCRIPTION
7a. Architectural style: Stick/Eastlake Victorian~
7b. Briefly describe the present physical description of the site or structure and describe any major alterations from its original condition: 906 Monroe Street is a 1~ story wooden residence designed on a rectangular plan in an eastlake design. The steeply hipped roof is punctuated by 2 off set gables and a front facing, hipped dormer. The roof is sheathed in asphalt shingles and further accented by a tall, brick chimney.

The roof extends in a shed form over an entry porch. The residence is sheath ed in wide ship lap and patterned shingles. Plain wooden facing has been added to the rear. The large plain frieze and corner boards accent the stick detailing of the residence, while the profusion of spindles, pendents, carved brackets and decorated tunn posts emphasize the eastlake qualities in the structure's design. The side gable covers an angled bay, while the front facing gable covers a squared bay. The southeast cor.ner of the building has been cut out and ornamented with a spindle screen, large brackets and pendent to repeat the forms of the angled bay. Fenestration is simple, rectangular in shape and double hung. The paired square windows under the side gable are of casement design. The front stair is composed of 7 wooden steps, 5 carved turnposts, simple railing and twin ornamented newel posts.

A smaller wooden stair is also found on the south facing side. The enclosed rear orch and side stair do not a ear on the earliest Sanborn maps with the being an Attach Photo(s) Hereobvious alteration a t~nstruction date: latter being executed earlier modification. : Estimated 1890 Factual __ _

9. Architect _.,;,.__.\:!.U!.!.n~ka,_ ___ _

10. Builder ___ U!,!.JnlJ.Jk~.,__ ___ _

11. Approx. property size (in feet)
· Fro~tage 52 Depth 152
or approx. acreage _____ _

12. Date(s) of enclosed photograph (s)
April 24, 1979

13. Condition: Excellent _ _?<_ Good __ Fair_ Deteriorated __ No in existence • Alterations: losed ~~f:':ar porchL. side entry_ and stai ·1 s. Surroundings: (Check more than one if necessary l Open land ___ SC-Ottered building~ --· Densely Residential ~Industrial __ .Commercial-~ Other:

16. Threats to site:

Public Works
None known ____ Prb!ate QJ:)!~lopment __
__ OtherJ_r_a_t_ :t_l._C ___________ _
Zoning .~ Vandalism

17. Is the structure: On its original site?___ fv1oved? __ _ Ur:known? 2S..,_ __

18. Related features:---------------------------------

SIGNIFICANCE

19. Briefly stat~ historical and/or architectural importance (include dates. events, and persons associated with the site.) The site is si¥nificant due primarily to its architectural style. The rich ornamentation of both stick and eastlake details, which are very well maintained in the residence, provides the old quad area of Santa Clara with one of its major late Victorian gems. The residence appears virtually identical in plan to the structure as shown in the 1901 Sanborn map. Two alterations exist from the turn-of~the century house plan. The rear porch is not enclosed as it is today and there is no side entry and stair in the 1901 plan as exists in todays structure. The earliest directory consulted lists the house owned and occupied by Mrs. Dora Brock from 1912 to 1922.

From 1923 through 1945 W,iE. DeSoto and later his widow, Louise, owned and occupied the residence. Mri,DeSoto was a glazier. The house changed hands often during the late '40's and '50°s. The last directory consulted lists the occupant as Gallagher Kieran in 1961.

20. Main theme of the historic resource: (If more than one is checked, number in order of importaf!ce.)
Architectuf! . X Arts & Leisure _____ _
Economic/Industrial _Exploration'/Settlement __ _
Government ____ Military _______ _
Religion _____ Social/Education -----,--.
. .
'• - ' <,. ' ':, :., • :

21. Sources (List books, documents, surveys, personal interviews i~ their d.iltt!t}. Sanborn Insurance Map lYOl, 1915 and 1939. ·.

Polki :City Directories 1912, 1922,
1923, 1944, 1945, 1947, 1949, 1959,
and 1961.
22, Date form prepared • Nov, 13 7 !9~~
By (name) Dubach/Zavlari URC
Organization for the City of Santa Cla
Address:. 1500 Warburton
City Santa Clara Zip 9 5050
Phone: (408) 984-3111
- - ~'
Locational sketch map (draw and label site and
surrounding streets, roads, and prominent landmarks):

UNORTH

OFFICE OF THE

CITY CLERK/CITY AUDITOR

THE CITY OF SANTA CLARA

CALIFORNIA

EXTRACT OF CITY COUNCIL MINUTES OF THE CITY
OF SANTA CLARA FOR MEETING HELD ON JUNE 23, 1998

CITY HALL
1500 WARBURTON AVE.

SANTA CLARA, CA 95050
(408) 984-3140
FAX (408) 241-6771
..................... "MOTION was made by Arno, seconded and unanimously carried (Diridon and Gillmor absent), that, per the Director of Planning and Inspection (6/9/98), the Council approve and authorize execution of Historic Property Preservation Agreements (Mills Act) with Michael Kohl and Mary Denise Martin for the property located at 8 64 Madison Street and with Michael Kohl for the property located at 906 Monroe Street which will qualify the properties for tax incentives." ..................................................................................................... . l, tliF, undersigned Ciry Clerk of 1he City of
Sant& Ciara, do hereby certify that the above
arid 101 e;:1oing is a true and correct cop~ of
ar1 E:xce, pi of the Minutes of a meeting of the
City Council of the City of Santa Clara. held
on
City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
26-60 Agenda Date: 1/27/2026

REPORT TO COUNCIL

SUBJECT
Action on Approval of (1) First Amendment to the City Manager Employment Agreement, and (2) Resolution Approving and Adopting the Updated Salary Plan that includes the Classification of City Manager

BACKGROUND
The City Manager, Jōvan D. Grogan, has been employed by the City of Santa Clara since on or about May 1, 2023. The initial salary for this position (Section 3.1 of the Employment Agreement) was approximately $405,056 per year. On or about December 12, 2023, pursuant to the Employment Agreement, the City Council approved an adjustment to his annual base salary by approximately

2.0% effective December 24, 2023 (the first pay period of calendar year 2024), resulting in a new salary of approximately $413,157. On or about January 9, 2024, the City Council approved a merit- based salary adjustment of approximately 1.23% also effective December 24, 2023, resulting in a new salary of approximately $418,220.

For the 2024-2025 rating period, a facilitator was retained to assist with the performance evaluation process. On or about December 9, 2025, the City Council discussed in Closed Session the performance of the City Manager and any potential changes to his compensation. As part of this review process, the Human Resources Department provided a total compensation survey for the position. As a result of these discussions, the City Council provided direction to bring forward a salary adjustment of approximately 3.0% retroactive to May 1, 2025, which would result in a new salary of approximately $430,767 that would be effective May 11, 2025, the start of the first pay period after May 1, 2025. In addition, a sub-committee comprised of three (3) Councilmembers was formed to further review the compensation and performance goals for the City Manager and discuss any recommendations involving these matters with City Council in future Closed Session meetings.

Government Code section 20636(b)(1) and California Code of Regulations section 570.5 require that public salary schedules include specific information and be approved by the governing body whenever they are updated or revised.

DISCUSSION
Based upon City Council direction from Closed Session on December 9, 2025, the proposed Amendment No. 1 to the Employment Agreement provides for the following changes to the City Manager’s compensation:
(1) a statement of the new salary level of approximately $430,767.36 (reflecting an approximate

3.0% wage increase), retroactive to May 1, 2025, and effective May 11, 2025 (the start of the first pay period after May 1, 2025);
(2) modifying the performance appraisal process, which includes an automatic salary increase of City of Santa Clara Printed on 1/23/2026Page 1 of 3
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(2) modifying the performance appraisal process, which includes an automatic salary increase of approximately 2.0% or applicable most recent one-year CPI, whichever is less, if the performance appraisal process is not completed on or before May 31st.

Updated Salary Plan
Section 9 of the Personnel and Salary Resolution requires City Council approval of compensation plans for both classified and unclassified positions. California Code Regulations section 570.5 requires the adoption of updated publicly available salary schedules by the governing body. The salary plans included with this item includes the new salary for the position of City Manager. The attached Resolution approves the updated salary plans for the classification of City Manager.

ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(5) in that it is a governmental organizational or administrative activity that will not result in direct or indirect changes in the environment.

FISCAL IMPACT
The City Manager’s current base salary is $418,220.74. The updated base salary under proposed Amendment No. 1 of approximately $430,767.36 will result in an annual salary increase of approximately $12,546.62. The corresponding lump sum retroactive payment for the time period of May 11, 2025 (the start of the first pay period after May 1, 2025) up to January 17, 2026 (the end of the last pay period before January 27, 2026), for wages, is $8,686.10.

Estimated total annual compensation is approximately $627,249. This includes base salary, benefits, social security, and all pension costs (normal and unfunded liability). Department savings are anticipated to be available to absorb the additional cost impact in FY 2025/26. Adjustments to factor in the higher base salary costs will be included during the budget cycle.

COORDINATION
This report has been coordinated with the Finance and Human Resources Departments.

PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email [email protected] or at the public information desk at any City of Santa Clara public library.

RECOMMENDATION

1. Approve modifications to the compensation package for the City Manager, including (A) a salary adjustment for the City Manager of approximately 3.0% retroactive to May 1, 2025, effective May 11, 2025, resulting in a new annual salary of approximately $430,767.36, with a corresponding retroactive payment of $8,686.10, and (B) modification of the performance appraisal process as set forth in Amendment No. 1;

2. Approve, and authorize the Mayor to sign, Amendment No. 1. to the Employment Agreement with City Manager Jōvan D. Grogan; and

3. Adopt a Resolution updating the Unclassified Salary Plans (effective May 11, 2025) approved City of Santa Clara Printed on 1/23/2026Page 2 of 3
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26-60 Agenda Date: 1/27/2026

3. Adopt a Resolution updating the Unclassified Salary Plans (effective May 11, 2025) approved January 27, 2026.

Reviewed by: Marco Mercado, Acting Director of Human Resources Approved by: Lisa M. Gillmor, Mayor

ATTACHMENTS

1. Employment Agreement between the City of Santa and Jōvan D. Grogan

2. Amendment No. 1 to Employment Agreement between the City of Santa Clara and Jōvan D.

Grogan

3. Resolution Approving and Adopting Updated Unclassified Salary Plans (effective May 11, 2025) approved January 27, 2026

4. Unclassified Salary Plans (effective May 11, 2025) approved January 27, 2026 City of Santa Clara Printed on 1/23/2026Page 3 of 3
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301447.14

EMPLOYMENT AGREEMENT

BY AND BETWEEN THE

CITY OF SANTA CLARA, CALIFORNIA
AND
JOVAN D. GROGAN

This EMPLOYMENT AGREEMENT is made by and between the City of Santa Clara, California, a chartered California municipal corporation ("City") and Jovan D. Grogan ("Employee") as of February 7, 2023.

RECITALS
This Agreement is entered into on the basis of the following facts:

A. City, acting with the approval of its duly elected City Council, desires to appoint and employ Jovan D. Grogan as its City Manager subject to the terms and conditions set forth in this Agreement, the Government Code of the State of California, the Santa Clara City Code and the Charter of the City of Santa Clara (the "Charter").

B. The Charter provides that the City Manager shall be appointed by and serve at the pleasure of the City Council.

C. Employee desires to be employed by the City as its City Manager, subject to the terms and conditions set forth in this Agreement, the Government Code of the State of California, the Santa Clara City Code and the Charter.

D. City and Employee desire to establish specific terms and conditions relating to compensation, including salary and benefits, performance evaluations and related matters.

AGREEMENT PROVISIONS
BASED UPON THE FOREGOING, CITY AND EMPLOYEE AGREE AS FOLLOWS:

1. Employment. City Council appoints and employs Employee as City Manager with the City of Santa Clara and Employee accepts the appointment and employment. Employee acknowledges and agrees that as City Manager, Employee serves in an at-will capacity, serving at the pleasure of the City Council, with no expectation of continued employment, and with no right to pre-or-post-separation due process or appeal as provided in Santa Clara City Charter Section 800, et seq., Government Code Section 36506 as applicable, and Santa Clara City Code 2.15.010. Such appointment and employment shall be effective on May 1, 2023 (“Effective Date”) and shall continue until such time as this Agreement is terminated by either party.

2. Duties of the City Manager. Employee shall perform the duties established for the City Manager by the Charter, the Santa Clara City Code, governing documents for City- related entities, and the City Council, and by any applicable law, ordinance, resolution, rule, or regulation including, without limitation, as reflected in the description of duties for

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the City Manager position, attached hereto as Exhibit E and hereby incorporated by reference.

2.1. Full Energy and Skill. Employee shall devote their full energy, skill, ability, and productive time to the performance of the "Duties of the City Manager" referenced herein.

2.2. Council-Employee Relations. City and Employee acknowledge that an excellent City Council-Employee relationship is in the best interest of the City and accordingly each agrees to use best efforts to foster City Council-Employee communications.

2.3. Conflict. Employee shall not engage in any employment, activity, consulting service, or other enterprise, for compensation or otherwise, which is actually or potentially in conflict with, inimical to, or which interferes with the performance of the "Duties of the City Manager" described herein. Employee acknowledges that they are subject to and will abide by the various conflict of interest requirements found in the California Government Code and other applicable state and local policies and regulations concerning conflicts of interest.

2.4. Code of Ethics and Values. Employee shall adhere to the City of Santa Clara's Code of Ethics and Values, a copy of which is attached as Exhibit A and incorporated herein.

2.5. Permission Required For Outside Activities. Employee shall not engage in any employment, activity, consulting service, or other enterprise, for compensation or otherwise, without the express, written consent of the Mayor or other Council member designated by City Council. Charitable or religious engagements that do not conflict with the duties of the City Manager are not a violation of Section 2.5.

2.6. Professional Activities.
(a) During Employee's appointment as City Manager, Employee is expressly authorized to participate in professional activities, including but not limited to meetings, conferences, and other events conducted or sponsored by any professional organizations related to their work responsibilities as City Manager, including responsibilities identified in the Section, provided that their ability to perform the "Duties of the City Manager" described herein is not compromised.
(b) Employee shall be paid regular salary and benefits while traveling to, attending, or participating in professional activities, and shall be entitled to expense advances in accordance with City policy applicable to other Council-appointed officers. Subject to annual appropriation and any limitations in the City travel policy attached hereto as Exhibit D (City Manager’s Directive 028 Travel Policy, hereinafter “Policy”), Employee is

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entitled to reimbursement for the actual costs of the following expense categories that they incur as a result of the Professional Activities authorized in this Section: membership fees, airfare, rental car (if necessary), conference fees and lodging, in accordance with the City's policy.
(c) To the extent the Policy vests authority in an employee’s supervisor, the City Manager or designee, such authority shall be vested in the Mayor or other council member designated by City Council. Employee shall inform and receive advance written permission by e-mail from the Mayor or other council member designated by the City Council in advance of absences of more than one day related to such Professional Activities. (d) The City Manager may not change any terms of the Policy that are applicable to them without the express, advance approval of the City Council. The City Manager maintains discretion to approve modifications of this Policy as applicable to other City employees.

2.7. Other Roles. Employee shall also serve as Contract Administrator for the Sports & Open Space Authority, Executive Director for the Housing Authority, Chief Executive Officer of the Stadium Authority, Staff Chair for the Economic Development Team, Executive Director for the Bayshore North Project Enhancement Authority, and Executive Director for the Successor Agency to the Redevelopment Agency.

3. Compensation. While performing the duties of City Manager, Employee shall be compensated as provided in this Section.

3.1. Salary. Employee shall receive an annual salary of Four Hundred and Five Thousand and Fifty-Six Dollars, and Forty Cents ($405,056.40), less all authorized and appropriate deductions and withholdings, payable in pro-rata increments on regular City paydays, commencing on the first day of employment.

3.2. Adjustments.
(a) Employee shall receive a two percent (2.0%) Cost of Living Adjustment (“COLA”) to their Base Salary, effective the first regular pay period in 2024.
(b) Prior to the first regular pay period in 2024, and in conjunction with Employee’s annual performance appraisal (see Section 4 below), the City Council will meet with the Employee for the express purpose of determining, in its sole discretion, whether to grant Employee a merit- based salary adjustment, in an amount deemed appropriate by the City Council and otherwise permitted by law. This merit-based salary adjustment would be in addition to the COLA identified in Section 3.2, subsection (a) above.
(c) Following January 30, 2024, Council will, in its sole discretion, determine whether to provide Employee with any additional base salary or other compensation adjustments. Council will make such determinations in

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conjunction with Employee’s annual performance appraisal (see Section 4 below) or at any other time that Council, in its sole discretion, deems appropriate. Any adjustments made pursuant to this subsection shall be memorialized in writing as an amendment to this Agreement and shall be approved by the City Council in open session.

3.3. Benefits and Allowances.
(a) Except as otherwise specified in this Agreement, Employee will be eligible for, and shall receive, the benefits provided in the following identified sections of the Miscellaneous Unclassified Employees Memorandum of Understanding (“MOU”) for Unit 9 as of May 1, 2023. To the extent these sections vest authority in a Unit 9 member’s supervisor, Department Head, City Manager or designee, such authority shall vest to the Mayor or other Council member designated by City Council.
i. Section 2 – California Public Employees’ Retirement
System
ii. Section 4 – Holidays
iii. Section 6 – Vacation Accrual and Usage
iv. Section 7 – Health Insurance
v. Section 8 – Dental Insurance
vi. Section 9 – Vision Insurance
vii. Section 10 – Long Term Disability
viii. Section 11 – Life Insurance
ix. Section 12 – Automobile Allowance
x. Section 13 – Mobile Communication Device Allowance
xi. Section 16 – Sick Leave/Family Sick Leave/Personal
Leave
xii. Section 17 – Bereavement Leave
xiii. Section 19 – Retiree Medical Reimbursement Benefit xiv. Section 24 – Industrial Injury/Continuation of Insurance Benefits While on Workers’ Compensation
xv. Section 25 – Management Leave Program
xvi. Section 26 – Flexible Spending Plan
(b) In the event a successor MOU includes a change to any of the sections enumerated above, the City Council shall, in its discretion, determine the extent to which such changes are applicable to Employee.

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(c) Entitlement to any and all benefits provided under this Section 3.3 shall cease immediately upon termination of employment, excluding health benefits provided as Severance pursuant to Section 6.1. (d) A copy of the MOU is attached as Exhibit B and the provisions enumerated in Section 3.3 subsection (a) are incorporated herein. No side letters to the MOU (including but not limited to the Side Letters executed between the City and Unit 9 regarding Amendment to the December 15, 2019 – December 30, 2024 Memorandum of
Understanding (“MOU”) dated September 8, 2022 and Use of Compensatory Time Off (“CTO”) dated November 4, 2020) shall be applicable to Employee.

3.4. Deferred Compensation. Employee may participate in ICMA-RC for deferred compensation programs. The City shall contribute Eight Thousand, Six Hundred Dollars and Zero Cents ($8,600.00) annually, prorated and contributed on the City’s normal paydays, to a 457 or a 401(a) retirement plan account established for Employee. Employee will make any additional contributions required under the plan, if any, and may make additional voluntary contributions, if permitted.

3.5. Vacation. MOU Section 6 shall govern the terms and conditions related to Employee’s use of vacation during their tenure with the City, unless expressly stated otherwise in this Agreement. Section 6, subsection (A) of the MOU [vacation within the first 6 months of employment] and subsection (E) of the MOU [Maximum Vacation Accrual Limit] are not applicable to Employee. (a) Effective the first day of employment, Employee will have a vacation bank of 120 hours.
(b) Employee shall accrue vacation at the rate and be subject to a maximum accrual as specified in Section 6 of the Unit 9 MOU as of May 1, 2023 as though Employee has completed ten (10) years of service with the City.

In the event a successor MOU includes a change to the specified accrual rate or maximum accrual, the City Council shall, in its discretion, determine the extent to which such change applies to Employee. (c) Employee shall seek and obtain advance approval from the Mayor or other Council member designated by City Council to use vacation time.

3.6. Sick Leave. MOU Section 16 [Sick Leave/Family Sick Leave/Personal Leave] shall govern the terms and conditions related to Employee’s use of such leaves during their tenure with the City, unless expressly stated otherwise in this Agreement. Effective the first day of employment, Employee will have a sick leave bank of 120 hours.

3.7. Management Leave. MOU Section 25 [Management Leave] shall govern the terms and conditions related to Employee’s use of management leave during their tenure with the City, unless expressly stated otherwise in this Agreement.

Employee shall not be entitled to management leave until their one-year anniversary date of employment, at which time they will be credited 120 hours in

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their management leave bank. This term expressly supersedes subsections (A) and (B) of Section 25 of the MOU.

3.8. Automobile Allowance. MOU Section 12 [Automobile Allowance] shall govern the terms and conditions related to Employee’s use of the automobile allowance program, unless expressly stated otherwise in this Agreement. Employee shall be entitled to a monthly automobile allowance of Five Hundred and Twenty Dollars and Zero Cents ($520.00).

3.9. Past Practices. No past practices or benefits previously provided to the City Manager position or past practices or benefits provided to any other City position shall be applicable unless specifically incorporated and approved in this agreement.

4. Performance Appraisal. The City Council shall make best efforts to undertake a performance appraisal of the Employee at least every twelve (12) months following the Employee’s original date of hire. The City Council may conduct performance appraisals more frequently in its sole discretion.

5. Additional Expenses of Employment. The City shall pay the costs of any fidelity or other bonds required by law for Employee.

6. Termination, Resignation and Severance Pay. Removal of Employee shall conform to the requirements of Charter section 806. Employee understands and agrees that they have no constitutionally protected property or other interest in continued employment as City Manager. Employee understands that notwithstanding any other applicable laws, resolutions, and policies, they have no right to pre-or-post-disciplinary due process.

Employee further understands and agrees that they work at the will and pleasure of the City Council and that they may be terminated at any time, with or without Cause (as defined below).

6.1. No Cause Termination. In the event that Employee’s employment as City Manager is Terminated (as defined below) for no reason or for any reason other than as set forth in Sections 6.2 and 6.6 below and Employee signs, does not revoke, and delivers to the City Council a general and full release of all claims substantially in the form attached as Exhibit C (Severance and Release Agreement), which may be amended as required by law to effectuate a full and complete release, on or after Employee’s termination date but no later than the date set by the City Council at the time of termination in accordance with applicable law, City shall provide the following severance benefits (“Severance”):
(a) If Employee is Terminated before November 1, 2023, City shall pay Employee a severance amount equal to six (6) months’ base salary and shall pay for continued health benefits (medical, dental, and vision) for Employee and any dependents enrolled during employment for six (6) months or until Employee secures health benefits through another source, whichever comes first.
(b) If Employee is Terminated between November 2, 2023 and January 1, 2024, City shall pay Employee a severance amount equal to eight (8)

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months’ base salary and shall pay for continued health benefits (medical, dental, and vision) for Employee and any dependents enrolled during employment for eight (8) months or until Employee secures health benefits through another source, whichever comes first. (c) If Employee is Terminated January 2, 2024, or after, City shall pay Employee a severance amount equal to ten (10) months’ base salary and shall pay for continued health benefits (medical, dental, and vision) for Employee and any dependents enrolled during employment for ten (10) months or until Employee secures health benefits through another source, whichever comes first.
(d) The parties understand and agree that any severance-related payments through the City’s payroll system and/or on its payroll schedule shall not constitute continued employment for any purpose nor shall they entitle Employee to any benefits beyond those set forth in this Section 6.1. (e) Severance shall include only the cash payments and health benefits described in this Section.
(f) For purposes of this Section, “Terminated” shall mean any of the following:
i. The City Council ends the employment relationship; or ii. Employee resigns after the City Council requests
Employee’s resignation.
(g) The City shall, in its discretion, decide whether to issue the severance amount and the continued health benefits as either a lump-sum cash payment and direct payment of Employee’s COBRA costs for the continued health benefits period, or to issue severance-related payments through the City’s payroll system and/or its payroll schedule and maintain the Employee and eligible dependents on the City’s health insurance plan during the continued health benefits period. For purposes of this subsection, “continued health benefits period” refers to the duration for which the Employee and eligible dependents shall receive health insurance benefits pursuant to either subsection (a), (b), or (c) of Section

6.1. If the City decides to issue severance-related payments through the City’s payroll system, the City shall convert remaining non-health related payments to a lump-sum cash payment if requested by the Employee and necessary for the Employee to obtain employment elsewhere.

6.2. For Cause Termination. Notwithstanding Section 6.1 above, City shall not be obligated to pay, and shall not pay, any amounts or continue any benefits under the provisions of Section 6.1 if Employee is terminated for Cause. Cause shall be defined as any of the following:
(a) Conviction of or a plea of nolo contendere to a felony or a misdemeanor involving moral turpitude, dishonesty, breach of trust, abuse of position, or unethical conduct;

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(b) Material willful misconduct, material or willful gross neglect, fraud, misappropriation, embezzlement, theft, or dishonesty;
(c) Willful or repeated failure, for reasons other than disability, to devote substantially all of Employee’s business time and effort to the City; or (d) Violation of the City’s Code of Ethics and Values (Exhibit A).

6.3. Abuse of Office or Position. If Employee is convicted of a crime involving an abuse of their office or position, or moral turpitude, all of the following shall apply:
(a) If Employee is provided with paid administrative leave pending an investigation, Employee shall be required to fully reimburse City such amounts paid;
(b) If City pays for the criminal legal defense of Employee (which would be in its sole discretion, as it is generally not obligated to pay for criminal defense), Employee shall be required to fully reimburse City such amounts paid; and
(c) Any severance benefits not yet paid to Employee shall be forfeited.

For purposes of this Section, abuse of office or position means either an abuse of public authority, including waste, fraud, misappropriation of funds, or other illegal fiscal practices, violation of the law under color of authority, or a crime against public justice.

6.4. Resignation. Employee shall provide at least sixty (60) days’ written notice to City in the event Employee voluntarily resigns or retires. This notice requirement may be waived by the City in its sole discretion. Except as provided in Section

6.1 subsection (f), in the event Employee voluntarily retires or resigns their position, Employee shall be entitled only to earned but unpaid base salary, accrued but unpaid expenses required to be reimbursed, and any vacation accrued through the date of separation from employment.

6.5. Death of Employee. If, during the Term or any extended Term, Employee dies, Employee’s estate shall receive outstanding wages and accrued vacation, but shall not be entitled to any additional compensation or payment, including Severance.

6.6. Medical Separation. Subject to the provisions of the Americans with Disabilities Act and the California Fair Employment and Housing Act, in the event Employee is unable to perform the duties of City Manager, because of sickness, accident, injury, or mental or physical incapacity for a period exceeding any provided sick leave pursuant to this Agreement or other legally mandated leave, City may terminate Employee's employment and this Agreement without penalty or Severance.

6.7. Elections. City Council shall take no action to terminate Employee without Cause within ninety (90) days before and after the seating of a new member following any election in which one or more new members are elected to the City Council.

This Section does not apply if Employee is terminated for a reason set forth in

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Sections 6.2 and 6.6. There is no express or implied promise made to Employee for any form of continued employment. Employee shall have no right to a termination hearing other than as provided in the Charter.

6.8. State Law. This Agreement is subject to California Government Code section 53260 et seq. Government Code section 53260 subdivision (a) provides:

All contracts of employment between an employee and a
local agency employer shall include a provision that
provides that regardless of the term of the contract, if the contract is terminated, the maximum cash settlement that an employee may receive shall be an amount equal to the monthly salary of the employee multiplied by the number of months left on the unexpired term of the contract, with the following exceptions:
(1) If the unexpired term of the contract is greater than 18 months, the maximum cash settlement shall be an amount
equal to the monthly salary of the employee multiplied by

18. (2) In the case of a district superintendent of schools, for contracts of employment executed on or after January 1, 2016, the maximum cash settlement shall be an amount
equal to the monthly salary of the employee multiplied by

12. This Agreement has no set term. This Section 6.8 in no way modifies the term of this Agreement.

7. Miscellaneous.

7.1. Indemnity. In accordance with and to the extent provided by the California Tort Claims Act (Government Code sections 825, et seq.) and Government Code sections 995-996.5, the City shall defend and indemnify Employee against and for all losses sustained by the Employee in direct consequence of the discharge of the Employee's duties on the City's behalf for the period of the Employee's employment. This Section shall be equally applicable to each City related entity as though set forth in an indemnity agreement between the Employee and that legal entity. The City hereby guarantees the performance of this indemnity obligation by the City related entity and shall indemnify and hold the Employee harmless against any failure or refusal by the City related entity to perform its obligations under this Section. Further, if the City provides funds for legal criminal defense pursuant to this Section and the terms of the Government Code, Employee shall reimburse the City for such legal criminal defense funds if Employee is convicted of a crime involving an abuse of office or position, as provided by Government Code Sections 53243-53243.4. This Section shall survive termination of the Agreement.

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7.2. Notices. Notices given under this Agreement shall be in writing and shall be either:
(a) served personally; or
(b) delivered by first class United States mail, certified, with postage prepaid and a return receipt requested; or
(c) sent by Federal Express, or some equivalent private mail delivery service.

Notices shall be deemed received at the earlier of actual receipt or three (3) days following deposit in the United States mail, postage prepaid. Notices shall be directed to the addresses shown below, provided that a party may change such party's address for notice by giving written notice to the other party in accordance with this Section.

For City: Attention: Mayor
City of Santa Clara
1500 Warburton Avenue
Santa Clara, CA 95050

For Employee: Jovan D. Grogan
Address on file with the City

7.3. Entire Agreement/Amendment. This Agreement constitutes the entire understanding and agreement between the parties as to those matters contained in it, and supersedes any and all prior or contemporaneous agreements, representations, and understandings of the parties. This Agreement may be amended at any time by mutual agreement of the parties, but any such amendment must be in writing, dated and signed by the parties, approved by the City Council, and attached hereto.

7.4. Applicable Law and Venue. This Agreement shall be interpreted according to the laws of the State of California. Venue of any action regarding this Agreement shall be in the Santa Clara County Superior Court.

7.5. Severability. In the event any portion of this Agreement is declared void, such portion shall be severed from this Agreement and the remaining provisions shall remain in effect, unless the result of such severance would be to substantially alter this Agreement or the obligations of the parties, in which case this Agreement shall be immediately terminated.

7.6. Waiver. Any failure of a party to insist upon strict compliance with any term, undertaking or condition of this Agreement shall not be deemed to be a waiver of such term, undertaking or condition. To be effective, a waiver must be in writing, signed and dated by the parties.

7.7. Representation by Counsel. Employee and City acknowledge that they each did, or had the opportunity to, consult with legal counsel of their

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respective choices with respect to the matters that are the subject of this Agreement prior to executing it.

7.8. Section Headings. The headings on each of the sections and subsections of this Agreement are for the convenience of the parties only and do not limit or expand the contents or any such section or subsection.

The Parties acknowledge and accept the terms and conditions of this Employment Agreement as evidenced by the following signatures of their duly authorized representatives . It is the intent of the Parties that this Agreement shall become operative on the Effective Date first set forth above.

CITY OF SANTA CLARA, CALIFORNIA
a chartered California municipal corporation

___________________________
LISA M. GILLMOR
Mayor

______________________
JOVAN D. GROGAN
Employee

APPROVED AS TO FORM:

___________________________

JENICA MALDONADO
Renne Public Law Group

ATTEST:

___________________________

NORA PIMENTEL
City Clerk

Attachments:

Exhibit A - City of Santa Clara's Code of Ethics and Values Exhibit B - Miscellaneous Unclassified Employees Unit 9 Memorandum of Understanding Exhibit C - Severance and Release Agreement
Exhibit D - City Manager’s Directive 028 Travel Policy
Exhibit E - Description of Duties

301447.15

EXHIBIT A
City of Santa Clara’s Code of Ethics and Values

Attachment A
Santa Clara
hOd
r~iP
2001

PREAMBLE
City of Santa Clara, CA
Code of Ethics and Values
CMD NUMBER 67
The proper operation of democratic government requires that decision-makers be independent, impartial, and accountable to the people they serve. The City of Santa Clara has adopted this Code of Ethics and Values to promote and maintain the highest standards of personal and professional conduct in the City's government. All elected and appointed officials, City employees, volunteers, and others who participate in the city's government are required to subscribe to this Code, understand how it applies to their specific responsibilities, and practice its eight core values in their work. Because we seek public confidence in the City's services and public trust of its decision-makers, our decisions and our work must meet the most demanding ethical standards and demonstrate the highest levels of achievement in following this code.

1. As a Representative of the City of Santa Clara, I will be ethical.

In practice, this value looks like:
a.) I am trustworthy, acting with the utmost integrity and moral courage. b.) I am truthful, do what I say I will do, and am dependable. c.) I make impartial decisions, free of bribes, unlawful gifts, narrow political interests , and financial and other personal interests that impair my independence of judgment or action. d .) I am fair, distributing benefits and burdens according to consistent and equitable criteria. e.) I extend equal opportunities and due process to all parties in matters under considerat ion. If I engage in unilateral meetings and discussions, I do so without making voting decisions. f.) I show respect for persons, confidences , and information designated as "confidential. " g .) I use my title(s) only when conducting official City business , for information purposes, or as an indication of background and expertise, carefully considering whether I am exceeding or appearing to exceed my authority.

2. As a Representative of the City of Santa Clara, I will be professional.

In practice, this value looks like:
a.) I apply my knowledge and expertise to my assigned activities and to the interpersonal relationships that are part of my job in a consistent, confident, competent, and productive manner .
b.) I approach my job and work-related relationships with a positive attitude. c.) I keep my professional knowledge and skills current and growing.

3. As a Representative of the City of Santa Clara, I will be service-oriented.

In practice, this value looks like:
a.) I provide friendly, receptive, courteous service to everyone. b.) I am attuned to, and care about, the needs and issues of citizens, public officials, and city workers .

Attachment A CMD NUMBER 67
c.) In my interactions with constituents , I am interested , engaged , and responsive .

4. As a Representative of the City of Santa Clara, I will be fiscally responsible In practice, this value looks like:
a.) I make decisions after prudent consideration of their financial impact , taking into account the long-term financial needs of the City, especially its financial stability. b.) I demonstrate concern for the proper use of City assets (e.g., personnel, time, property , equipment , funds) and follow established procedures.
c.) I make good financial decisions that seek to preserve programs and services for City residents.

5. As a Representative of the City of Santa Clara, I will be organized.

In practice, this value looks like:
a.) I act in an efficient manner , making decisions and recommendations based upon research and facts, taking into consideration short and long term goals. b.) I follow through in a responsible way, keeping others informed, and responding in a timely fashion .
c.) I am respectful of established City processes and guidelines.

6. As a Representative of the City of Santa Clara, I will be communicative .

In practice, this value looks like:
a.) I convey the City's care for and commitment to its citizens. b.) I communicate in various ways that I am approachable, open-minded and willing to participate in dialog.
c.) I engage in effective two-way communication , by listening carefully, asking questions , and determining an appropriate response which adds value to conversations .

7. As a Representative of the City of Santa Clara, I will be collaborative.

In practice, this value looks like:
a.) I act in a cooperative manner with groups and other individuals , working together in a spirit of tolerance and understanding.
b.) I work towards consensus building and gain value from diverse opinions. c.) I accomplish the goals and responsibilities of my individual position, while respecting my role as a member of a team .
d.) I consider the broader regional and State-wide implications of the City's decisions and issues.

8. As a Representative of the City of Santa Clara, I will be progressive .

In practice, this value looks like:
a.) I exhibit a proactive , innovative approach to setting goals and conducting the City's business. b.) I display a style that maintains consistent standards, but is also sensitive to the need for compromise , "thinking outside the box," and improving existing paradigms when necessary . c.) I promote intelligent and thoughtful innovation in order to forward the City's policy agenda and City services .

Attachment A CMD NUMBER 67
Approved by City Council on April 4, 2000; modified by Council on August 21, 200 I

301447.15

EXHIBIT B
Miscellaneous Unclassified Employees Unit 9
Memorandum of Understanding

MEMORANDUM OF

UNDERSTANDING
between

CITY OF SANTA CLARA
and

MISCELLANEOUS UNCLASSIFIED

MANAGEMENT EMPLOYEES
UNIT 9

DECEMBER 15, 2019 - DECEMBER 31, 2024

MEMORANDUM OF UNDERSTANDING
between

CITY OF SANTA CLARA
and
MISCELLANEOUS UNCLASSIFIED MANAGEMENT EMPLOYEES, UNIT #9 DECEMBER 15, 2019 - DECEMBER 31, 2024
Table of Contents

1. WAGE ADJUSTMENTS .......................................................................................... 4

2. CALIFORNIA PUBLIC EMPL OYEES' RETIREMENT SYSTEM .............................. 5

3. APPLICATION OF MOU TO REIMBURSED SERVICES ........................................ 5

4. HOLIDAYS .............................................................................................................. 5

5. JOB SECURITY ...................................................................................................... 6

6. VACATION ACCRUAL AND USAGE ....................................................................... 6

7. HEALTH INSURANCE ............................................................................................ 7

8. DENTAL INSURANCE .......................................................................................... 11

9. VISION INSURANCE ............................................................................................ 11

10. LONG TERM DISABILITY ..................................................................................... 12

11. LIFE INSURANCE ................................................................................................. 12

12. AUTOMOBILE ALLOWANCE ................................................................................ 12

13. MOBILE COMMUNICATION DEVICE ALLOWANCE ............................................ 13

14. MERIT PAY/SALARY ADJUSTMENT SYSTEM .................................................... 13

15. EMERGENCY PAID LEAVE PROGRAM ............................................................... 15

16. SICK LEAVE/FAMILY SICK LEAVE/PERSONAL LEAVE ...................................... 16

17. BEREAVEMENT LEAVE ....................................................................................... 17

18. VOLUNTARY EMPLOYEE BENEFICIARY ASSOCIATION (VEBA) ...................... 18

19. RETIREE MEDICAL REIMBURSEMENT BENEFIT .............................................. 18

20. EMPLOYEE ASSISTANCE PROGRAM ................................................................ 18

21. CHANGES TO JOB DESCRIPTIONS ................................................................... 19

22. LIMITED/ALTERNATIVE DUTY ............................................................................ 19

23. REDUCED WORK WEEK VOLUNTAR Y TIME OFF (VTO) PROGRAM ............... 20

24. INDUSTRIAL INJURY/CONTINUATION OF INSURANCE BENEFITS WHILE ON WORKERS' COMPENSATION ............................................................................. 21

25. MANAGEMENT L EAVE PROGRAM ..................................................................... 21

26. FLEXIBLE SPENDING PLAN (INTERNAL REVENUE CODE SECTION 125) ...... 22

27. DOMESTIC PARTNERS ....................................................................................... 22

28. PAY PERIOD S ...................................................................................................... 23

30. DECLARATION ..................................................................................................... 23

31. NEXT MEMORANDUM OF UNDERSTANDING .................................................... 23 APPENDIX A: MOBILE COMMUNICATION DEVICE PROGRAM ................................ 25

SIDE LETTER AGREEMENT - USE OF COMPENSATORY TIME OFF (CTO)

MEMORANDUM OF UNDERSTANDING — UNIT #9 (2019-2024)
Alphabetical Table of Contents
APPENDIX A: MOBILE COMMUNICATION DEVICE PROGRAM ................................ 25 APPLICATION OF MOU TO REIMBURSED SERVICES ................................................ 5 AUTOMOBILE ALLOWANCE ....................................................................................... 12 BEREAVEMENT LEAVE .............................................................................................. 17 CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM ...................................... 5 CHANGES TO JOB DESCRIPTIONS ........................................................................... 19 DENTAL INSURANCE .................................................................................................. 11 DECLARATION ............................................................................................................ 23 DOMESTIC PARTNERS ............................................................................................... 22 EMERGENCY PAID LEAVE PROGRAM ...................................................................... 15 EMPLOYEE ASSISTANCE PROGRAM ........................................................................ 18 FLEXIBLE SPENDING PLAN (INTERNAL REVENUE CODE SECTION 125) .............. 22 HEALTH INSURANCE .................................................................................................... 7 HOLIDAYS ...................................................................................................................... 5

INDUSTRIAL INJURY/CONTINUATION OF INSURANCE BENEFITS WHILE ON WORKERS' COMPENSATION ..................................................................................... 21 JOB SECURITY .............................................................................................................. 6 LIFE INSURANCE ........................................................................................................ 12 LIMITED/ALTERNATIVE DUTY .................................................................................... 19 LONG TERM DISABILITY ............................................................................................. 12 MANAGEMENT LEAVE PROGRAM ............................................................................. 21 MERIT PAY/SALARY ADJUSTMENT SYSTEM ........................................................... 13 MOBILE COMMUNICATION DEVICE ALLOWANCE ................................................... 13 NEXT MEMORANDUM OF UNDERSTANDING ........................................................... 23 PAY PERIODS .............................................................................................................. 23 REDUCED WORK WEEK/VOLUNTARY TIME OFF (VTO) PROGRAM ....................... 20 RETIREE MEDICAL REIMBURSEMENT BENEFIT ...................................................... 18 SICK LEAVE/FAMILY SICK LEAVE/PERSONAL LEAVE ................................ ............. 16 VACATION ACCRUAL AND USAGE .............................................................................. 6 VISION INSURANCE .................................................................................................... 11 VOLUNTARY EMPLOYEE BENEFICIARY ASSOCIATION (VEBA) ............................. 18 WAGE ADJUSTMENTS .................................................................................................. 4

Page 4 of 32 ends

MEMORANDUM OF UNDERSTANDING
between

CITY OF SANTA CLARA
and
MISCELLANEOUS UNCLASSIFIED MANAGEMENT EMPLOYEES, UNIT #9 DECEMBER 15, 2019 - DECEMBER 31, 2024

In accordance with the provisions of Section 18 of the City of Santa Clara Resolution #2979, entitled "Employer-Employee Relations", this Memorandum of Understanding constitutes the results of discussions between designated representatives of the City Management Staff (City) and the Miscellaneous Unclassified Management Employees of the City of Santa Clara (Unit 9) on all matters within the scope of representation. The term of this Agreement shall be from December 15, 2019 through December 31, 2024.

1. WAGE ADJUSTMENTS

A. Effective December 15, 2019, all salary ranges for employees holding positions in classifications assigned to Unit 9 shall remain status quo.

B. Effective the first pay period of calendar year 2021, all salary ranges for employees holding positions in classifications assigned to Unit 9 shall remain status quo.

C. Effective the first pay period of calendar year 2022, all salary ranges for employees holding positions in classifications assigned to Unit 9 shall be increased by approximately 4.5%.

D. Effective the first pay period of calendar year 2023, all salary ranges for employees holding positions in classifications assigned to Unit 9 shall be increased by approximately 3.25%.

E. Effective the first pay period of calendar year 2024, all salary ranges for employees holding positions in classifications assigned to Unit 9 shall be increased by approximately 3.25%.

F. During the term of this Agreement, the parties agree that the MOU will reopen on the issue of wages if either of the following occurs:

1) The total annual calendar year General Fund Transient Occupancy Tax (or “TOT”) revenues remitted to the City and allocated to any of the calendar years covered by this Agreement Equal or surpass the City’s actual total TOT revenues from March 1, 2018 to February 28, 2019. After calendar year 2022, the TOT revenues remitted to the City shall be adjusted to normalize for any potential change in the TOT rate if passed by voters on the ballot for purposes of this section; OR

2) Forecasted General Fund deficits remain above $20 million ongoing, as reflected in updated or revised Ten-Year General Fund Forecasts released after July 1, 2021.

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The City agrees to provide an update on the City’s TOT revenues to the Association upon the Association’s request. In the event either of the foregoing occur, either party may request to meet to discuss the subject of wages. Any changes will be by mutual agreement. The parties understand and agree that this will not be a meet and confer within the meaning of section 3505 of the MMBA and that neither party will have access to any impasse resolution procedure except as mutually agreed.

G. The parties agree to meet and confer over wages in the event the City reaches agreement on a new general wage increase to be effective during Calendar Year 2021 or 2022 with any other miscellaneous bargaining unit as part of an agreement on a successor Memorandum of Understanding (MOU). For purposes of this section, “general wage increase” means a wage increase applicable to all members of the bargaining unit (not a subset), but only if that agreement does not also include an agreement for an alternative cost saving measure (including but not limited to unpaid furlough days). Additionally, the parties agree that this section shall not apply to any general wage increases applicable to sworn public safety bargaining units or to miscellaneous bargaining units that are exclusively funded through sources other than the General Fund.

2. CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
The City has contracted with CalPERS to provide employees with the 2.7% at age 55 formula with "highest single year" effective December 17, 2006 for "Classic" or "Legacy" employees as defined by CalPERS and the Public Employees' Pension Reform Act of 2013 (PEPRA) and the 2.0% at 62 with "highest three year average" for "New Members" as defined by CalPERS and PEPRA. Classic/Legacy employees shall continue to pay the employee contribution rate and New Members shall contribute 50% of the "normal cost" of their pension formula as required and defined by CalPERS and PEPRA. The employee's CalPERS retirement contribution will continue to be treated as tax deferred.

3. APPLICATION OF MOU TO REIMBURSED SERVICES
The terms of this Memorandum of Understanding shall not apply to Unclassified Management Employees when such employees are providing their services to another agency that is reimbursing the City of Santa Clara for salary and fringe benefits of such employees. Such arrangements shall be mutually agreed upon between the employee and the City.

4. HOLIDAYS
A. Employees shall be provided 13 annual paid holidays (computed on the eight hour per day pay rate). Any additional permanent holidays designated by the City Council will be afforded represented employees of Unit 9. Additional permanent holidays under this section shall be defined as a holiday on which City offices are closed.

B. Additionally, effective December 2020, the City shall provide 32 hours for four additional paid holidays between December 25
th and January 1st of
the following calendar year. If there are more than four working days between December 25
th and January 1st of the following calendar year,

Page 6 of 32 ends

the City shall designate which four working days shall be paid holidays under this paragraph. Employees whose jobs require them to work on these days would receive banked paid hours off instead (up to 8 hours per holiday), which hours may and must be used during the applicable MOU year with the approval of the applicable supervisor/manager.

5. JOB SECURITY

Represented members will be compensated at the rate of forty (40) hours salary per year of service to a maximum of six hundred and forty (640) hours should they be terminated from employment for reasons other than cause as defined under Section 6.4 of the Civil Service Rules and Regulations.

6. VACATION ACCRUAL AND USAGE

Represented employees will be entitled to use vacation as it is earned under the following conditions:

A. Vacation may not be taken during the first 6 months of regular employment.

B. Vacation will be earned on a bi-weekly basis (1/26 of the yearly accrual) provided that the employee is in a paid
status for at least 2/3 of the hours (53.4
hours) of that pay period.

C. Accrued vacation time will be paid off regardless of term of employment.

D. Annual and maximum vacation accrual rates, calculated to four decimal points for accuracy, are as follows:

COMPLETED

YEARS OF SERVICE
ANNUAL

ACCRUAL

MAXIMUM VACATION

ACCRUAL LIMIT
1 through 4 80 hours 480 hours
5 through 9 120 hours 480 hours
10 through 15 168 hours 480 hours
16 through 20 176 hours 480 hours
21 years + 192 hours 480 hours
E. Maximum Vacation Accrual Limit – Employees are limited to the maximum accrual of vacation as defined. The current vacation balance, the annual accrual and the current pay period usage are all shown on the employees' pay check stub and are the responsibility of the employee to track for compliance with this provision.

1) Effective December 27, 2020 (the first pay period of calendar year 2021), the Maximum Vacation Accrual Limit as described in Section

6.D above shall be temporarily suspended for two (2) years until the end of the last pay period of calendar year 2022. Employees may continue to accrue vacation above the Maximum Vacation Accrual

Page 7 of 32 ends

Limit until December 24, 2022 (the end of the last pay period of calendar year 2022).

2) Effective December 25, 2022 (the first pay period of calendar year 2023), employees shall not be allowed to accrue vacation above the Maximum Vacation Accrual Limit.

3) Temporary Supplemental Vacation Accrual – Effective December 25, 2022 (the first pay period of calendar year 2023), employees holding positions in classifications assigned to Unit 9 shall be eligible for the Temporary Supplemental Vacation Accrual. The Temporary
Supplemental Vacation Accrual is a separate vacation balance subject to the following:

(a) Effective December 25, 2022, all unused accrued vacation hours above 400 hours as of December 24, 2022 (the last pay period of calendar year 2022) shall be placed in the
Temporary Supplemental Vacation Accrual balance.

(i) The following is only an example of the Temporary
Supplemental Vacation Accrual described above, and
any figures are for illustration purposes only and
assumes the employee does not use vacation.

Issue Hours
Vacation Balance as of December 24, 2022
(the last pay period of calendar year 2022)
500
Hours to be placed in
Temporary Supplemental Vacation Accrual
100
Vacation Balance as of December 25, 2022
(the first pay period of calendar year 2023)
400
Hours that can be accrued in
calendar year 2023
80 Hours that can be accrued above the
Maximum Vacation Accrual Limit of 480 hours
0 (b) The Temporary Supplemental Vacation Accrual balance may not be increased.

(c) Subject to supervisory approval, any Temporary Supplemental Vacation Accrual shall be available for use to the employee until the Temporary Supplemental Vacation Accrual balance has been exhausted.

(d) If an employee leaves or retires from City service, any unused Temporary Supplemental Vacation Accrual hours shall not be subject to the terms of Section 6.I below. Any accrued but unused Temporary Supplemental Vacation Accrual hours will be cashed out upon the employee’s retirement or other separation from City service. If permitted by the City’s deferred compensation plan and applicable law, the separating employee may elect to contribute all or a portion of their accrued but unused Temporary Supplemental Vacation Accrual hours to their deferred compensation account by

Page 8 of 32 ends

submitting a written request no later than 30 days prior to their separation from City service.

(e) An employee must first use their Temporary Supplemental Vacation Accrual for any vacation leave taken until the Temporary Supplemental Vacation Accrual balance has been exhausted, subject to supervisory approval.

(f) An employee must use their Temporary Supplemental Vacation Accrual for any leave of absence until the Temporary
Supplemental Vacation Accrual balance has been exhausted subject to any requirement that sick leave be utilized first.

(g) An employee may not be on unpaid status until the Temporary Supplemental Vacation Accrual balance has been exhausted and must use their Temporary Supplemental Vacation Accrual until the Temporary Supplemental Vacation Accrual balance has been exhausted, with the exception of any formal disciplinary action pursuant to the City’s Civil Service Rules.

F. Vacation may be used in one-tenth (1/10th) hour increments.

G. Employees who begin work prior to July 1st or continue to be employed after the first calendar year of employment are required to use at least one-half of the vacation accrued during the prior calendar year during the current calendar year.

H. Subject to having a sufficient balance of accrued vacation available, an employee may, on a twice per year basis, request to be paid at his/her current hourly pay rate for a total combined maximum of 80 hours of accrued vacation.

I. In lieu of receiving a vacation-leave cash payout at retirement, the Miscellaneous Unclassified Management Employees may vote to roll accrued vacation leave hours (except for any hours in the Temporary Supplemental Vacation Accrual balance) into the employee's VEBA account, subject to Association compliance with Federal rules associated with employee contributions of vacation leave to their VEBA accounts.

7. HEALTH INSURANCE
A. For employees who enroll in a City offered health plan and whose benefits exceed the total of the City’s Health Flex Contribution, Additional Health Flex Contribution, and/or Regular Flex Contribution applicable to the employee and as described below, the balance of the benefits shall be paid by a salary deduction from the pay of the individual employee.

B. Health Flex Contribution
1) The City offers full-time employees a Health Flex Contribution to put toward the payment of a City offered health plan. The City shall modify the Health Flex Contribution each calendar year using the Rate of Pay Safe Harbor (based on the lowest base pay of any full- time position covered by this MOU) to ensure the City’s offered

Page 9 of 32 ends

coverage is “affordable.” The City contributes the statutorily required minimum contribution under the Public Employees Medical and Hospital Care Act (PEMHCA) as determined by CalPERS in each calendar year. It is understood and agreed that the Health Flex Contribution described in this paragraph shall be equal to or exceed the City’s statutorily required minimum PEMHCA contribution.1 2) Employees may not receive all or any portion of the Health Flex Contribution as cash or any other taxable benefit, and must apply the Health Flex Contribution to City-offered health benefits. Employees who do not enroll in City-offered health benefits will not receive any of the Health Flex Contributions.

C. Additional Health Flex Contribution
1) Full-time employees who enroll in a City health plan for which the premium amount is more than $946.86/month shall receive an Additional Health Flex Contribution in the amounts described in this section.
2) Employees may not receive all or any portion of the Additional Health Flex Contribution as cash or any other taxable benefit, and must apply the Additional Health Flex Contribution to City-offered health benefits.

Employees who do not enroll in City-offered health benefits will not receive any of the Additional Health Flex Contributions. 3) Effective January 1, 2020, full-time employees who enroll in a City health plan for which the premium amount is more than
$946.86/month shall receive an Additional Health Flex
Contribution. The Additional Health Flex Contribution, when added to the Health Flex Contribution described in the prior section and the Regular Flex Contribution described herein, shall not exceed $200 per month over the Kaiser employee only premium amount for the applicable year.
2 4) Effective January 1, 2023, full-time employees:

(a) Who enroll in a City health plan for Employee Only coverage for which the premium amount is more than $946.86/month shall receive an Additional Health Flex Contribution to be put towards the premium amount. The City will provide an Additional Health Flex Contribution amount that, when added to the Health Flex Contribution described above and the Regular Flex Contribution described herein, shall not exceed $200 per month over the Kaiser employee only premium amount for the applicable year.

(b) Who enroll in a City health plan for Employee Plus One coverage or Employee Plus Family coverage for which the premium amount

1 As an example, for 2020, the PEMHCA minimum is approximately $139/month and the Health Flex Contribution is $139.00/month, which includes the PEMHCA minimum of $139/month.
2 As an example, for 2020, the Additional Health Flex Contribution is approximately $23.70/month to these individuals since $200 over the Kaiser employee only premium amount in 2020 is approximately $970.56/month.

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is more than $946.86/month shall receive an Additional Health Flex Contribution to be put towards the premium amount. The Additional Health Flex Contribution, when added to the Health Flex Contribution described above and the Regular Flex
Contribution described herein, shall not exceed an amount equal to 100% of the Kaiser Employee Plus One rate for the applicable year.

D. Regular Flex Contribution
1) The City will provide full-time employees a Regular Flex Contribution equal to $946.86 less the Health Flex Contribution.
3 Employees may
use the Regular Flex Contribution to pay for health benefits offered under the City’s Section 125 plan or may opt to receive any or all of the Regular Flex Contribution as taxable cash. An employee will receive a Regular Flex Contribution whether or not he/she enrolls in City-offered health benefits and notwithstanding the provisions of Section 7.E. below.
2) Employees hired or rehired on or after January 1, 2023, who choose not to enroll in a City health plan are not eligible for a Regular Flex Contribution.

E. Cash In Lieu
1) Full-time employees hired before January 1, 2023, who choose not to enroll in a City health plan for a plan year, and meet the requirements set forth below shall receive a Cash in Lieu amount per month for that plan year equal to $946.86 minus the Regular Flex Contribution as calculated each calendar year.
4 A full-time employee hired before
January 1, 2023, who enrolls in coverage for a plan year, shall be treated in accordance with Sections 7.A-D and will not receive Cash in Lieu for that plan year.
2) Full-time employees hired or rehired on or after January 1, 2023, who choose not to enroll in a City health plan for a plan year, and meet the requirements set forth below, shall receive a Cash in Lieu amount for that plan year equal to $250/month. A full-time employee hired on or after January 1, 2023, who enrolls in coverage for a plan year, shall be treated in accordance with Sections 7.A-D and will not receive Cash in Lieu for that plan year.
3) In order to receive Cash in Lieu of health coverage, an employee must sign a form attesting that the employee and the employee’s Tax Family have the Alternative Required Coverage for the Opt Out Period.
(a) Tax Family means all individuals for whom the employee intends to claim a personal exemption deduction for the taxable year or

3 As an example, for 2020, the Regular Flex Contribution for employees who are regularly scheduled to work 40 hours per week is approximately $807.86/month. 4 As an example, for 2020, the Cash in Lieu amount is approximately $139.00/month for employees who are regularly scheduled to work 40 hours per week.

Page 11 of 32 ends

years that begin or end in or with the City’s plan year to which the opt out applies.
(b) Alternative Required Coverage required means minimum essential coverage through another source (other than coverage in the individual market, whether or not obtained through Covered California).
(c) Opt Out Period means the plan year to which the opt out arrangement applies.
(d) An employee must provide the attestation every plan year at open enrollment or within 30 days after the start of the plan year for each plan year the employee would like to receive Cash in Lieu. (e) The Cash in Lieu payment cannot be made and the City will not in fact make payment if the City knows or has reason to know that the employee or a Tax Family member does not have such
alternative coverage, or if the conditions in this paragraph are not otherwise satisfied.
(f) An employee who opts out of City-offered health benefits, but cannot provide the attestation, will not receive the Cash in Lieu contribution described in this subsection.

F. Flexible Spending Account (IRS Section 125 Plan)
The City has established a Flexible Spending Account benefit (IRS Section 125 Plan) for employees, which provides accounts in which employees may contribute pre-tax dollars for dependent care and un-reimbursed medical expenses. This Plan will follow the regulations outlined by the Internal Revenue Service. Detailed information will be available in the Summary Plan Document.

This Plan is voluntary and participating employees will make pre-tax salary reduction elections to fund the plan.

G. Proration of Benefits:

For employees who may be eligible for benefits but work less than 40 hours per week, benefits shall be prorated based on the employee’s full-time equivalent (FTE) level.

8. DENTAL INSURANCE
The City will pay toward dental insurance premiums an amount equal to the lowest cost employee only premium amount among the dental plans offered by the City. All employees are required to enroll in a dental plan.

9. VISION INSURANCE
For persons enrolled in the City's VSP vision plan, the City will pay toward vision insurance premiums an amount equal to the lowest cost employee only vision premium. Participation is voluntary. Employees that do not choose to enroll in a vision plan are not entitled to the benefit of City contributions to vision premiums

Page 12 of 32 ends

described in this paragraph.

10. LONG TERM DISABILITY
The City will continue to pay the cost of a long term disability insurance program. The LTD plan will have a maximum 60 day waiting period and the maximum monthly benefit will include those offsets required by law such as, but not limited to, SDI, retirement, reduced work schedule, worker's compensation, social security, and Railroad retirement.

11. LIFE INSURANCE
The City will pay the required premium for life insurance for represented employees in the amount of $50,000.

12. AUTOMOBILE ALLOWANCE
As an alternative to IRS mileage reimbursement or use of a City vehicle, an automobile allowance program will be available to represented employees as follows:

A. Department Heads including Assistant City Manager, Deputy City Manager and Deputy Director Redevelopment Agency/Sports & Open Space Authority (Executive Management) shall be entitled to a base monthly automobile allowance of $320 for use of their personal vehicles to conduct City business. Executive Management employees may be eligible to receive an additional amount up to a maximum of $200 per month based on required driving while conducting City business, at the discretion of the City Manager or his/her designee.

B. Assistant Department Heads and Division Managers shall be entitled to a base monthly automobile allowance of $200 for use of their personal vehicles to conduct City business. Assistant Department Heads and Division Managers may be eligible to receive an additional amount up to a maximum of $300 per month based on required driving while conducting City business, at the discretion of the City Manager or his/her designee.

C. Effective December 27, 2020 (the first pay period of calendar year 2021), the base monthly automobile allowance shall be paid on the first 2 pay periods of every month.

D. Upon request of the employee, prior to the beginning of each fiscal year, the City Manager or his/her designee will determine whether or not it is appropriate for a manager to receive an amount above the base monthly allowance. The determination will be made based on the requirements for use of the personal vehicles for City business and may require detailed driving information in order to grant an amount above the base monthly amount. This rate adjustment will become effective at the beginning of each fiscal year and will remain in effect for the full year unless there are unique circumstances requiring a modification.

E. Prior to the granting of this allowance, all insurance, driver's license, and vehicle registration as required under the State of California Vehicle Code, will be provided by the represented employee, and must be valid and in force at all times employees are operating their personal vehicles on City

Page 13 of 32 ends

business.

F. Employees receiving the automobile allowance are responsible for all gasoline and maintenance costs. Employees shall also maintain their personal vehicles in a clean and presentable condition while conducting City business.

G. A represented employee, who is currently assigned a City vehicle, may choose to continue using that assigned City vehicle in lieu of the automobile allowance.

H. The City reserves the right to substitute an assigned City vehicle in lieu of this automobile allowance for a represented employee if it is deemed to be in the City's best interest to provide a City vehicle to conduct City business.

I. A represented employee who is currently reimbursed for use of a personal vehicle in accordance with the IRS mileage reimbursement rate, may continue to utilize direct mileage reimbursement, in lieu of participation in this automobile allowance program.

13. MOBILE COMMUNICATION DEVICE ALLOWANCE
Mobile communication device allowance of $80.00 per month for eligible classifications.

14. MERIT PAY/SALARY ADJUSTMENT SYSTEM
Merit pay adjustments, or merit increases, as provided for in the Personnel and Salary Resolution are, and will continue to be available during the term of this MOU when and if approved by the applicable Department Head and the City Manager, subject to Section 14.G below. The Merit Pay Adjustment system shall include the following elements:

A. Each Unit 9 employee shall receive an annual evaluation.

B. Annual consideration of merit pay adjustments, subject to Section 14.G below, with an affirmative decision by the applicable Department Head shall be required each year following the annual evaluation.

C. Merit pay adjustments shall range from 0 to 5%. However, in 2016 and 2017 only, employee is guaranteed at least 2% and, with Department Head approval, up to 5%, subject to Section 14.G below.

D. In 2016, employees are eligible for a merit pay adjustment based on an evaluation prepared by February 2, 2016, which date will be their merit pay anniversary each year going forward.
1) Notwithstanding D. above, for employees that have been employed a full year as of February 2, 2016, they will be eligible on their actual anniversary date, which shall also be their merit pay anniversary date thereafter.
2) Notwithstanding D. above, for employees that receive a merit increase between January 1, 2015 and February 2, 2016, the date of their last merit increase shall be their new merit pay anniversary date.

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City Council and Authorities ConcurrentJanuary 27, 2026

City Council and Authorities Concurrent
January 27, 2026