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13 staff report.Revenue Ballot Measure Polling Results with attachments PREPARED BY: Katy Nomura Assistant Town Manager Reviewed by: Town Manager, Town Attorney, and Finance Director 110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov TOWN OF LOS GATOS COUNCIL AGENDA REPORT MEETING DATE: 05/07/2024 DATE: April 26, 2024 TO: Mayor and Town Council FROM: Laurel Prevetti, Town Manager SUBJECT: Review Polling Results, Authorize the Town Manager to Execute an Amendment to the NBS Agreement to Include Phase 2 in the Scope of Services to Prepare a 1/8th Cent Sales Tax Measure for the November 2024 Ballot and Increase the Not to Exceed Amount to $105,000, and Authorize an Expenditure Budget Adjustment in an Amount of $60,400 from the Available General Fund Capital/Special Projects Reserve RECOMMENDATION: Review polling results, authorize the Town Manager to execute an amendment to the NBS agreement to include Phase 2 in the Scope of Services to prepare a 1/8th cent sales tax measure for the November 2024 Ballot and increase the not to exceed amount to $105,000 (Attachment 1), and authorize an expenditure budget adjustment in an amount of $60,400 from the available General Fund Capital/Special Projects Reserve. BACKGROUND: While costs of providing services and programs for residents have significantly increased over the years, Town revenues have not kept pace. Los Gatos is facing the same economic pressures as many other cities and businesses, including inflation and the uneven recovery from the pandemic. In addition, unfunded mandates by the State have also reduced the Town's available funds. The Town maintains a relatively stable and low staffing level. Even so, costs per employee continue to escalate as evidenced by pension benefit costs having increased 35% in the last five years. The Town Council has taken several proactive steps to reduce the Town’s pension liability, including Additional Discretionary Payments for the Pension Plans and curbing cost escalation in Other Post-Employment Benefits (OPEB). PAGE 2 OF 4 SUBJECT: Revenue Ballot Measure Polling Results DATE: April 26, 2024 BACKGROUND (continued): Los Gatos has taken the following proactive cost-cutting measures during major economic downturns to control costs while maintaining high service levels: • Staffing levels significantly reduced from 2001 – 2005 and have not returned to those levels, despite an increase in population since then, unfunded mandates, and service demands, • Imposed wage freezes and unpaid furloughs, and • Reduced employee benefit costs. Town financials are reviewed annually by an independent auditor. Los Gatos has earned recognition for its fiscal responsibility with the highest credit rating (AAA bond rating by Moody’s) and annual awards by the Government Finance Officers Association for its high quality and transparent budgeting practices. On November 17, 2022, the Finance Commission reviewed several cost reduction measures and recommended that the Town further work toward operational efficiencies and researching additional revenue options. On January 24, 2023, the Town Council determined its Strategic Priorities for 2023-2025, which included exploring new revenue opportunities. On June 20, 2023, the Town Council authorized the Town Manager to issue a Request for Qualifications (RFQ) for revenue ballot measure consulting services. After conducting the RFQ process, the Town selected NBS. On October 17, 2023, Town Council authorized the Town Manager to enter into an agreement for the initial phase of the work for an amount not to exceed $44,600, with direction to return to Council with revenue modeling prior to beginning any polling. On December 19, 2023, Town Council reviewed the Revenue Modeling Report prepared by NBS and continued the item to February 20, 2024 to consider it at the same time as the five-year forecast. On February 12, 2024, the Finance Commission discussed the NBS report and recommended that the Town Council not rely upon the NBS Report’s conclusions regarding deficit reductions because the financial analysis was based on an outdated 5-Year Forecast which did not include actual results for Fiscal Year 2022/23. The Finance Commission did find that the incremental revenue contribution for the revenue options analyzed are credible and can be used for modeling purposes. While the Commission did not make a motion regarding any potential ballot measure, individual Commissioners questioned the need for it at this time. One PAGE 3 OF 4 SUBJECT: Revenue Ballot Measure Polling Results DATE: April 26, 2024 BACKGROUND (continued): Commissioner expressed that there may or may not be merit to the 1/8th cent tax measure and indicated this was the reason they declined to opine. On February 13, 2024, the Town Council updated its Strategic Priorities and removed the detailed bullets under “Develop a Five-Year Structurally Balanced and Sustainable Operating Forecast,” including reference to new revenue opportunities. On February 20, 2024, the Town Council directed staff to proceed with polling to explore a 1/8th cent sales tax. A 1/8th cent sales tax is estimated to result in approximately $1 million in additional revenue annually. DISCUSSION: NBS partnered with Gene Bregman and Associated to conduct the scientific polling. Polling occurred from March 24-27, 2024 and surveyed 200 registered Los Gatos voters. The summary of the polling results will be presented at the Council meeting, including the following conclusions: • Los Gatos residents are very positive towards their Town, local government, and Departments within local government. • Maintaining public safety (police services and wildfire prevention) and traffic congestion are of paramount importance to voters. • Majority of voters are supportive of a 1/8th cent sales tax increase for the Town. • If the Town captures the remaining 1/8th cent of sales tax capacity available to Los Gatos, 100% of the funds would remain in Los Gatos. • Not claiming the remaining sales tax capacity means a County entity could capture the 1/8th cent and raise sales tax for Los Gatos with potentially little benefit to the Town. The Finance Commission had the option to consider the polling results at its May 6, 2024 meeting prior to Council consideration. The Finance Commission Chairperson preferred to focus the meeting on the proposed Fiscal Year 2024/25 Budget and referenced that the Commission discussed potential polling and revenue measures on February 12, 2024. A summary of the February 12, 2024 discussion can be found in the Background section of this report. If Council authorizes Phase 2 of the NBS agreement, the consultant will prepare public education and outreach, refine ballot measure language, and draft a resolution for the Town Council to place the measure on the 2024 ballot. It is worth noting that a super majority of Council (4/5) is required to place a measure on the 2024 ballot. PAGE 4 OF 4 SUBJECT: Revenue Ballot Measure Polling Results DATE: April 26, 2024 CONCLUSION: Staff looks forward to Council’s discussion and direction on whether to pursue a 1/8th cent sales tax measure. If a measure is pursued, final ballot measure language and a resolution to place the measure on the November 2024 ballot would return to Council in June to meet the August 9, 2024 submittal deadline to the Santa Clara County Registrar of Voters. COORDINATION: The preparation of this report was coordinated with the Town Manager, Town Attorney, and Director of Finance. FISCAL IMPACT: On October 17, 2023, Council authorized the Town Manager to enter into an agreement for the initial phase of the work for amount not to exceed $44,600. The proposed amendment would bring the total not to exceed amount for the contract to $105,000 and require an expenditure budget adjustment of $60,400 from the Available General Fund Capital/Special Projects Reserve. The cost of placing a measure on the 2024 general election ballot is estimated to cost approximately $60,000. If a measure is pursued, the $60,000 expenditure budget adjustment would be requested when the Council considers the resolution to place the measure on the ballot. If a 1/8th cent sales tax measure is successful, it is estimated to generate $1 million in additional revenue for the Town annually. ENVIRONMENTAL ASSESSMENT: This is not a project defined under CEQA, and no further action is required. Attachment: 1. Draft Amendment to NBS Agreement Page 1 of 2 Agreement for Revenue Ballot Measure Consultant Services with NBS – First Amendment ATTACHMENT 1 AMENDMENT TO AGREEMENT This AMENDMENT TO AGREEMENT is dated for identification this 8th day of May 2024 and amends that certain (AGREEMENT DESCRIPTION) dated October 18, 2023 made by and between the Town of Los Gatos, ("Town,") and NBS Government Finance Group, DBA: NBS, S Corporation (“Consultant”), whose address is 870 Market Street, Suite 1223, San Francisco, CA 94102. RECITALS A.Town and Consultant entered into a Consulting Agreement on October 18, 2023, (“Agreement”), a copy of which is attached hereto and incorporated by reference as Exhibit A to this Amendment. B.Town desires to amend the Agreement to complete Phase 2 described in the Scope of Services. AMENDMENT 1.Section 2.1 Scope of Services is amended to read as follows: Consultant shall provide services as described in Phase 1 and Phase 2 of the Scope of Services, which is hereby incorporated by reference and attached as Exhibit A. 2.Section 2.6 Compensation is amended to read as follows: Compensation for Consultant's professional services shall not exceed $105,000, inclusive of all costs. Payment shall be based upon Town approval of each task. 3.All other items and conditions of the Agreement remain in full force and effect. IN WITNESS WHEREOF, the Town and Consultant have executed this Amendment. Town of Los Gatos: Approved as to Consent: _______________________________ Laurel Prevetti, Town Manager _____________________________ Michael Rentner, Chief Executive Officer Recommended by: _______________________________________ Katy Nomura Assistant Town Manager 2 Approved as to Form: Attest: s Gatos, California ______________________________ ______________________________ Gabrielle Whelan, Town Attorney Wendy Wood, CMC, Town Clerk Agreement for Revenue Ballot Measure Consultant Services with NBS AGREEMENT FOR REVENUE BALLOT MEAURE CONSULTANT SERVICES THIS AGREEMENT is made and entered into on October 18, 2023 by and between TOWN OF LOS GA NBS Government Finance Group, DBA: NBS, S Corporation 870 Market Street, Suite 1223, San Francisco, CA 94102. This Agreement is made with reference to the following facts. I. RECITALS 1.1 The Town desire to engage Consultant to provide revenue ballot measure consultant services. 1.2 The Consultant represents and affirms that it is willing to perform the desired work pursuant to this Agreement. 1.3 Consultant warrants it possesses the distinct professional skills, qualifications, experience, and resources necessary to timely perform the services described in this Agreement. Consultant acknowledges Town has relied upon these warranties to retain Consultant. II. AGREEMENTS 2.1 Scope of Services. Consultant shall provide services as described in Phase 1 of the Scope of Services, which is hereby incorporated by reference and attached as Exhibit A. Town staff and Consultant shall return to the Los Gatos Town Council for direction before conducting the voter poll portion of the work. 2.2 Term and Time of Performance. This contract will remain in effect from October 18, 2023 to November 5, 2024. 2.3 Compliance with Laws. The Consultant shall comply with all applicable laws, codes, ordinances, and regulations of governing federal, state and local laws. Consultant represents and warrants to Town that it has all licenses, permits, qualifications and approvals of whatsoever nature which are legally required for Consultant to practice its profession. Consultant shall maintain a Town of Los Gatos business license pursuant to Chapter 14 of the Code of the Town of Los Gatos. 2.4 Sole Responsibility. Consultant shall be responsible for employing or engaging all persons necessary to perform the services under this Agreement. 2.5 Information/Report Handling. All documents furnished to Consultant by the Town and all reports and supportive data prepared by the Consultant under this Agreement are the services or at the Town's written request. All reports, information, data, and exhibits Exhibit A to First Amendment Dated May 8, 2024 EXHIBIT A Agreement for Revenue Ballot Measure Consultant Services with NBS prepared or assembled by Consultant in connection with the performance of its services pursuant to this Agreement are confidential until released by the Town to the public, and the Consultant shall not make any of the these documents or information available to any individual or organization not employed by the Consultant or the Town without the written consent of the Town before such release. The Town acknowledges that the reports to be prepared by the Consultant pursuant to this Agreement are for the purpose of evaluating a defined project, and Town's use of the information contained in the reports prepared by the Consultant in connection with other projects shall be solely at Town's risk, unless Consultant expressly consents to such use in writing. Town further agrees that it will not appropriate any methodology or technique of Consultant which is and has been confirmed in writing by Consultant to be a trade secret of Consultant. 2.6 Compensation. Compensation for Consultant's professional services shall not exceed $44,600, inclusive of all costs. Payment shall be based upon Town approval of each task. 2.7 Billing. Billing shall be monthly by invoice within thirty (30) days of the rendering of the service and shall be accompanied by a detailed explanation of the work performed by whom at what rate and on what date. Also, plans, specifications, documents or other pertinent materials shall be submitted for Town review, even if only in partial or draft form. Payment shall be net thirty (30) days. All invoices and statements to the Town shall be addressed as follows: Invoices: Town of Los Gatos Attn: Accounts Payable P.O. Box 655 Los Gatos, CA 95031-0655 2.8 Availability of Records. Consultant shall maintain the records supporting this billing for not less than three years following completion of the work under this Agreement. Consultant shall make these records available to authorized personnel of the Town at the Consultant's offices during business hours upon written request of the Town. 2.9 Assignability and Subcontracting. The services to be performed under this Agreement are unique and personal to the Consultant. No portion of these services shall be assigned or subcontracted without the written consent of the Town. 2.10 Independent Contractor. It is understood that the Consultant, in the performance of the work and services agreed to be performed, shall act as and be an independent contractor and not an agent or employee of the Town. As an independent contractor he/she shall not obtain any rights to retirement benefits or other benefits which accrue to Town employee(s). With prior written consent, the Consultant may perform some obligations Agreement for Revenue Ballot Measure Consultant Services with NBS under this Agreement by subcontracting, but may not delegate ultimate responsibility for performance or assign or transfer interests under this Agreement. Consultant agrees to testify in any litigation brought regarding the subject of the work to be performed under this Agreement. Consultant shall be compensated for its costs and expenses in preparing for, traveling to, and testifying in such matters at its then current hourly rates of compensation, unless such litigation is brought by Consultant or is based on allegations of Consultant's negligent performance or wrongdoing. 2.11 Conflict of Interest. Consultant understands that its professional responsibilities are solely to the Town. The Consultant has and shall not obtain any holding or interest within the Town of Los Gatos. Consultant has no business holdings or agreements with any individual member of the Staff or management of the Town or its representatives nor shall it enter into any such holdings or agreements. In addition, Consultant warrants that it does not presently and shall not acquire any direct or indirect interest adverse to those of the Town in the subject of this Agreement, and it shall immediately disassociate itself from such an interest, should it discover it has done so and shall, at the Town's sole discretion, divest itself of such interest. Consultant shall not knowingly and shall take reasonable steps to ensure that it does not employ a person having such an interest in this performance of this Agreement. If after employment of a person, Consultant discovers it has employed a person with a direct or indirect interest that would conflict with its performance of this Agreement, Consultant shall promptly notify Town of this employment relationship, and shall, at the Town's sole discretion, sever any such employment relationship. 2.12 Equal Employment Opportunity. Consultant warrants that it is an equal opportunity employer and shall comply with applicable regulations governing equal employment opportunity. Neither Consultant nor its subcontractors do and neither shall discriminate against persons employed or seeking employment with them on the basis of age, sex, color, race, marital status, sexual orientation, ancestry, physical or mental disability, national origin, religion, or medical condition, unless based upon a bona fide occupational qualification pursuant to the California Fair Employment & Housing Act. III. INSURANCE AND INDEMNIFICATION 3.1 Minimum Scope of Insurance: i.Consultant agrees to have and maintain, for the duration of the contract, General Liability insurance policies insuring him/her and his/her firm to an amount not less than: two million dollars ($2,000,000) combined single limit per occurrence for bodily injury, personal injury and property damage. ii. Consultant agrees to have and maintain for the duration of the contract, an Automobile Liability insurance policy ensuring him/her and his/her staff to an amount not less than one million dollars ($1,000,000) combined single limit per accident for bodily injury and property damage. Agreement for Revenue Ballot Measure Consultant Services with NBS iii. Consultant shall provide to the Town all certificates of insurance, with original endorsements effecting coverage. Consultant agrees that all certificates and endorsements are to be received and approved by the Town before work commences. iv. Consultant agrees to have and maintain, for the duration of the contract, professional liability insurance in amounts not less than $1,000,000 which is sufficient to insure Consultant for professional errors or omissions in the performance of the particular scope of work under this agreement. General Liability: i. The Town, its elected and appointed officials, employees, and agents, are to be covered as insured as respects: liability arising out of activities performed by or on behalf of the Consultant; products and completed operations of Consultant, premises owned or used by the Consultant. This requirement does not apply to the automobile or professional liability insurance required for professional errors and omissions. ii. The Consultant's insurance coverage shall be primary insurance as respects the Town, its elected and appointed officials, employees, and agents. Any insurance or self-insurances maintained by the Town, its elected and appointed officials, employees, and agents, shall be excess of the Consultant's insurance and shall not contribute with it. iii. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the Town, its elected and appointed officials, employees, and agents. iv. The Consultant's insurance shall apply separately to each insured against whom a claim is made or suit is brought, except with respect to the limits of the insurer's liability. 3.2 All Coverages. Each insurance policy required in this item shall be endorsed to state that coverage shall not be suspended, voided, cancelled, reduced in coverage or in limits except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to the Town. Current certification of such insurance shall be kept on file at all times during the term of this agreement with the Town Clerk. 3.3 . In addition to these policies, Consultant shall have and maintain Workers' Compensation insurance as required by California law and shall provide evidence of such policy to the Town before beginning services under this Agreement. Further, Agreement for Revenue Ballot Measure Consultant Services with NBS Consultant shall ensure that all subcontractors employed by Consultant provide the required Workers' Compensation insurance for their respective employees. 3.4 Indemnification. The Consultant shall save, keep, hold harmless and indemnify and defend the Town, its elected and appointed officials, employees, and agents, from all damages, liabilities, penalties, costs, or expenses in law or equity that may at any time arise or be set up because of damages to property or personal injury received by reason of, or in the course of performing the work described in this contract. IV. GENERAL TERMS 4.1 Waiver. No failure on the part of either party to exercise any right or remedy hereunder shall operate as a waiver of any other right or remedy that party may have hereunder, nor does waiver of a breach or default under this Agreement constitute a continuing waiver of a subsequent breach of the same or any other provision of this Agreement. 4.2 Governing Law and Venue. This Agreement, regardless of where executed, shall be governed by and construed to the laws of the State of California. Venue for any action regarding this Agreement shall be in the Superior Court of the County of Santa Clara. 4.3 Termination of Agreement. The Town and the Consultant shall have the right to terminate this agreement with or without cause by giving not less than fifteen days (15) written notice of termination. In the event of termination, the Consultant shall deliver to the Town all plans, files, documents, reports, performed to date by the Consultant. In the event of such termination, Town shall pay Consultant an amount that bears the same ratio to the maximum contract price as the work delivered to the Town bears to completed services contemplated under this Agreement, unless such termination is made for cause, in which event, compensation, if any, shall be adjusted in light of the particular facts and circumstances involved in such termination. 4.4 Amendment. No modification, waiver, mutual termination, or amendment of this Agreement is effective unless made in writing and signed by the Town and the Consultant. 4.5 Disputes. In any dispute over any aspect of this Agreement, the prevailing party shall be entitled to reasonable attorney's fees, including costs of appeal. 4.6 Notices. Any notice required to be given shall be deemed to be duly and properly given if mailed postage prepaid, and addressed to: Town of Los Gatos Attn: Town Clerk 110 E. Main Street Los Gatos, CA 95030 NBS Government Finance Group, DBA: NBS, S Corporation 870 Market Street, Suite 1223 San Francisco, CA 94102 Agreement for Revenue Ballot Measure Consultant Services with NBS or personally delivered to Consultant to such address or such other address as Consultant designates in writing to Town. 4.7 Order of Precedence. In the event of any conflict, contradiction, or ambiguity between the terms and conditions of this Agreement in respect of the Products or Services and any attachments to this Agreement, then the terms and conditions of this Agreement shall prevail over attachments or other writings. 4.8 Entire Agreement. This Agreement, including all Exhibits, constitutes the complete and exclusive statement of the Agreement between the Town and Consultant. No terms, conditions, understandings or agreements purporting to modify or vary this Agreement, unless hereafter made in writing and signed by the party to be bound, shall be binding on either party. IN WITNESS WHEREOF, the Town and Consultant have executed this Agreement. Town of Los Gatos by: Laurel Prevetti, Town Manager Recommended by: Katy Nomura, Assistant Town Manager Consultant, by: Michael Rentner, Chief Executive Officer Printed Name and Title Approved as to Form: Gabrielle Whelan, Town Attorney Attest: _____________________________________ Wendy Wood, CMC, Town Clerk Statement of Qualifications for Town of Los Gatos NBS | 3 4.Project Approach Summary of Approach NBS will communicate with the Town staff throughout the duration of the project to clarify the Town’s goals, identify any special circumstances, and develop a realistic project schedule. The following Work Plans detail the steps needed to put the Town in the best position to propose a viable local funding ballot measure for the November 2024 election. Although not mentioned in the Town’s Request for Qualifications, an additional service we can provide is Revenue Measure Modeling to calculate financial benefit to the Town of a Special Financing District. This is listed as an optional item in our proposed budget. Phase 1 | October - December 2023 | Issue Research, Polling, Community Survey NBS will work with your team to understand the specific needs for, and demand on, the Town’s programs and services, and will provide an analysis of various tax models for the Town to understand potential options. Develop Stakeholder Outreach and Public Engagement Messaging: NBS will work with staff, elected officials and stakeholders to develop agreed-upon messaging that will ensure the sharing of consistent ideas and concepts with the community during Phase One services such as polling. Standard messaging will provide clarity to community members and prevent confusion. NBS will partner with the Town Manager, Town team, and our subconsultant GBA to provide the research needed for the Town to understand its most viable revenue measure options. Voter Poll: Working with NBS and the Town team, GBA will draft a survey questionnaire for Town approval, and conduct a poll among likely voters within Los Gatos that will achieve the following objectives: • Explore the current image of the Town of Los Gatos, voters' attitudes towards the Town, and their assessments of the strengths and weaknesses of local government; • Determine voter perceptions of the needs of the Town and the priorities that voters set for those needs; • Determine voter attitudes towards various revenue measures for the Town, and the optimum amount to place before the voters; Exhibit A: Scope of Services Exhibit A DocuSign Envelope ID: E3A5F1AB-4463-4D7E-887E-D7F5A5FCEE0E Statement of Qualifications for Town of Los Gatos NBS | 4 • Evaluate voters' top priorities for money raised in order to design a measure that best addresses the desires of the community; • Determine the most effective and important reasons for your voters to support a ballot measure; • Develop a demographic profile of Town voters, including how various demographic groups differ in their opinions and attitudes towards a possible ballot measure. Polling Methodology: Our subconsultant, GBA, will select the survey sample from highly sophisticated and up-to-date voter registration files. This information, when combined with the answers to our survey questions, is essential as we identify voters who are most likely to vote in general, primary, municipal, special, or mail-only elections. It is critical to remember that any survey must interview only likely voters. Being a registered voter is not enough. Those likely to vote will have demonstrated their interest in voting through their history in previous elections. The sample will be drawn from lists of registered voters which have been matched with telephone directories and other lists to maximize the quantity of available telephone numbers. Since this is a small city, we would expect that a smaller sample of voters will be adequate, even if it is no more than 100-200 completed interviews. GBA believes that it is of the utmost importance to go beyond simple questions and simple answers. For example, you will never see us ask if a problem is serious or not serious. We require differentiation between those with strong opinions and those with weaker opinions, those who say the problem is "extremely serious," or "very serious" rather than those who say it is only "somewhat serious" or "not too serious." Therefore, virtually all questions in our polls will delve into the intensity of feeling that voters bring to an issue. Only in this way can we separate those voters with a general opinion on an issue from those who are moved to take action because of that same issue (even if the "action" is just voting "yes" or "no"). Telephone interviews are conducted by a regularly employed staff of full-time professional interviewers who specialize in conducting interviews for public opinion surveys. GBA supervises the interviewing process and verifies that interviews are conducted according to specifications. Supervisory procedures include continuous on-site and telephone monitoring of interviews. GBA follows established industry standards for call backs of busy or "not-at-home" numbers designed specifically to maintain the randomness of interviewee selection and the validity of the survey. A regularly employed staff of full- time professional interviewers conducts interviews in English, Spanish, Vietnamese, Cantonese, Mandarin, and other languages. To summarize, we will provide to the Town of Los Gatos: • Random telephone and on-line survey of likely voters • Consultation solely with principal of Gene Bregman & Associates • Assistance in developing topic areas to be investigated • Development of survey questionnaire • Scientific sample selection to assure reaching an accurate representation of the voting population • Pre-testing of questionnaire • Conduct of field work from our central phone bank, as well as surveys completed from text and email contacts • Editing, coding, and electronic data processing • A full computer printout of all cross-tabulated data DocuSign Envelope ID: E3A5F1AB-4463-4D7E-887E-D7F5A5FCEE0E Statement of Qualifications for Town of Los Gatos NBS | 5 • Analysis of survey results • On-going strategy and consultation Feasibility Analysis of Ballot Measure Options and Expenditure Plan: Incorporating polling data, NBS and GBA will make recommendations to the Town team on a proposed ballot measure amount and ballot measure expenditure plan elements. If polling is favorable for a potential funding measure, this would be an optimal time to present polling data to the Town Council for discussion and recommendation to draft ballot measure language. This allows time for community outreach, input and consensus building among key stakeholders prior to finalizing the proposed ballot language and the resolutions Council must adopt to officially place a measure before voters. Decision from Council to move to Phase 2. Phase 2 | January 2023 – July 2024 | Message Toolkit, Stakeholder Outreach and Public Engagement Outreach to key stakeholders (business, labor, and other community leaders) before a measure is officially proposed can be key to the success of its passage. This is where potential bumps in the road are uncovered, and ideally resolved. NBS will work with the Town team to develop a Stakeholder Outreach Plan and strategy to help build community consensus around the need for a ballot measure to maintain the quality of life that Los Gatos residents desire. NBS will work with the Town team to create a Key Stakeholder Outreach Plan and a list of key stakeholders and media outlets, develop website content, and an Informational Toolkit (fact sheet, Q&A, PowerPoint presentation) that can be used to educate and engage leaders in the public and private sector, business community, and community-based organizations about the need for additional funding for essential public services. Once the Council acts to place a measure on the ballot, the Town may consider some informational outreach to educate residents on the proposal itself through online and news media communications and through the mail. Working with your staff and legal counsel, we can assist with crafting and implementing that communications program. Community Survey: In addition to the quantitative research conducted by GBA, CivicMic can conduct qualitative research in the form of a community survey of residents at large. This outreach through email and social media will be comprised of an abbreviated survey asking residents to weigh in with their priorities for town services and programs. This community engagement effort provides additional perspectives to the research and can be helpful in conveying the Town’s commitment to inclusivity and transparency. DocuSign Envelope ID: E3A5F1AB-4463-4D7E-887E-D7F5A5FCEE0E Statement of Qualifications for Town of Los Gatos NBS | 6 Finalize Ballot Measure Language and Ballot Argument To place a ballot measure on the November 5, 2024 ballot, all election-related Council action and resolutions must be completed and noticed to the County by August 9, 2024, providing an important window of time for informing and engaging community members around the need for additional revenue before officially proposing and finalizing the ballot measure language. NBS will work with the Town Manager and Town Attorney to draft ballot measure language and accompanying resolutions for Town Council approval. Engagement Activities Aiming to reach residents with diverse backgrounds allowing for unique perspectives, CivicMic would: Create a customized webpage for your project on civicmic.com. This site would feature a variety of engagement tools and informational materials. Develop an email campaign strategy to reach out to community members and stakeholders who may not have access to social media or may not regularly visit the Town website. Include specialized mapping and graphics on CivicMic.com, such as sample maps showing community participation in the survey. Design content related to the Town’s challenges in maintaining high services levels for resident programs and services. Coach various Stakeholders on ways to share educational materials with community members through workshops and printed materials. Create an email list of community members who have expressed interest in receiving updates. DocuSign Envelope ID: E3A5F1AB-4463-4D7E-887E-D7F5A5FCEE0E Statement of Qualifications for Town of Los Gatos NBS | 7 DRAFT TIMELINE The following is an overview of our proposed project schedule. We will discuss a detailed schedule at the kick-off meeting, along with the expected timing for individual tasks. Note: This page is intentionally formatted differently to improve legibility of the table contents. Apr '24 May '24 June '24 Jul '24 Aug '24 Sep '24 Oct '24 Nov '24 Phase 1 – Issue Research, Polling, Community Survey Kickoff Meeting Revenue Modeling (optional financial analysis) Develop Stakeholder Outreach and Public Engagement Messaging Public Opinion Research Draft Poll Questionnaire Poll in Field Initial Results Crosstabs Available Complete Full Analysis of Survey Results Present Poll Results, Feasibility Analysis, Recommendations to Council for discussion (not action) Phase 2 – Messaging, Stakeholder Outreach, Public Engagement Community Survey Develop Message Toolkit Stakeholder Outreach (key community leaders, businesses, orgs) Public Education/Engagement (Community Mtg, Email, Social Media) Finalize Ballot Language / Resolutions for Council Action Work Plans Feb '24 Mar '24PROJECT SCHEDULE - TOWN OF LOS GATOS Oct '23 Nov '23 Dec '23 Jan '24 Deadline for Council to submit measure-related documents to County: 8/9/24 DocuSign Envelope ID: E3A5F1AB-4463-4D7E-887E-D7F5A5FCEE0E Statement of Qualifications for Town of Los Gatos NBS | 8 5. Costs Our professional fees are based on our understanding the Town’s needs and the effort we believe is necessary to complete the scope of services described. Director (Wood) Project Manager (Lewis) GBA Flat Fee NBS Consultant (Argerich- Valentine) NBS Senior Consultant (Dayhoff) NBS Specialist and Analyst (Savage) Consultant Labor (Hrs.) Consultant Costs ($) with Optional Services Consultant Costs ($) without Optional Services $250 $200 $30,000 $175 $200 $150 Work Plans Phase 1 – Issue Research, Polling, Develop Communications Plan Kickoff Meeting 1.0 1.0 - 1.0 1.0 - 4.0 825$ 825$ Revenue Modeling (Optional)2.0 2.0 - 2.0 30.0 - 36.0 7,250$ -$ Develop Stakeholder Outreach & Public Education Messaging 7.0 7.0 - 5.0 - 8.0 27.0 5,225$ 5,225$ Public Opinion Research* (design voter poll, analyze data)2.0 4.0 1.0 - - - 7.0 31,300$ 31,300$ Total Phase 1 44,600$ 37,350$ Phase 2 – Messaging, Stakeholder Outreach & Public Engagement Community Survey Implementation (Optional)4.0 10.0 - 10.0 - 20.0 44.0 7,750$ -$ Complete Stakeholder Outreach & Public Education Plan 8.0 8.0 - 5.0 - - 21.0 4,475$ 4,475$ Create Informational Toolkit (e.g., webpage content, Fact Sheet, FAQ)4.0 12.0 - 12.0 - 4.0 32.0 6,100$ 6,100$ Stakeholder Outreach & Public Education (meetings, flyers, social media)8.0 40.0 - 20.0 - 20.0 88.0 16,500$ 16,500$ Draft Ballot Language 5.0 5.0 - - - - 10.0 2,250$ 2,250$ Finalize Ballot Language / Resolution for Council 5.0 5.0 - - - - 10.0 2,250$ 2,250$ Total Phase 2 39,325$ 31,575$ GRAND TOTAL FEES 46.0 94.0 1.0 55.0 31.0 52.0 279.0 83,925$ 68,925$ ESTIMATED EXPENSES Travel Costs Per In-Person Meeting (not to exceed)1Mailing and printing costs 12,000$ 12,000$ Travel and meeting expenses 3,500$ 3,500$ TOTAL INCLUDING ESTIMATED EXPENSES 99,425$ 84,425$ OPTIONAL SERVICES PRICING Labor & Travel Costs Per Optional In-Person Meeting 2,000$ 2,000$ Cost associated with the design/print/postage per mailer Grand Totals 1. Travel-related cost and direct reimbursable expenses; all other expenses are included in labor rates. This cost will be $0 if all meetings and presentations are held remotely. FEE SCHEDULE TOWN OF LOS GATOS Hourly Rate DocuSign Envelope ID: E3A5F1AB-4463-4D7E-887E-D7F5A5FCEE0E Statement of Qualifications for Town of Los Gatos NBS | 9 ADDITIONAL POLLING INFORMATION Three major factors determine the cost for a survey: the number of interviews to be completed; the average length of each interview; and how easy or hard it is to reach and complete interviews with qualified voters. Of course, the more interviews that are completed, the more reliable is the data, as shown by the changes in sampling tolerance, or margin of error (MOE), at different completion rates. The following table shows how the MOE changes with the number of completes: 200 completed interviews = Margin of Error +/- 6.9% 300 completed interviews = Margin of Error +/- 5.7% In addition, when the overall sample size increases, the sample sizes for various voter sub-groups will also increase, and their margins of error will decrease. HOURLY RATES Title Hourly Rate Director / Senior Review $250 Associate Director / Engineer $225 Senior Consultant $200 Consultant $175 Project Analyst / Specialist $150 Project Resource Analyst $130 Clerical / Support $110 TERMS Public Engagement services are invoiced on a monthly basis. Expenses will be itemized and included in the next regular invoice. If the project is prematurely terminated by either party, NBS shall receive payment for work completed. Payment shall be made within 30 days of submittal of an invoice. If payment is not received within 90 days, simple interest will begin to accrue at the rate of 1.5% per month. Either party can cancel consulting contract with 30 days’ written notice. DocuSign Envelope ID: E3A5F1AB-4463-4D7E-887E-D7F5A5FCEE0E Statement of Qualifications for Town of Los Gatos NBS | 10 EXPENSES Customary out-of-pocket expenses are billed at actual cost to NBS. These expenses may include, but not be limited to, boundary map and assessment diagram preparation (time, materials, plotting and all related costs), mailing fulfillment, postage, supplies, reproduction, telephone, travel, meals and various third-party charges for data, maps, and recording fees. DocuSign Envelope ID: E3A5F1AB-4463-4D7E-887E-D7F5A5FCEE0E