AddendumN F
MEETING DATE: 05/17/16
ITEM NO: 5
COUNCIL AGENDA REPORT ADDENDUM
DATE: MAY 16, 2016
TO: MAYOR AND TOWN COUNCIL
FROM: LAUREL PREVETTI, TOWN MANAGER
SUBJECT: OPERATING AND CAPITAL BUDGETS
A. CONSIDER THE TOWN OF LOS GATOS PROPOSED OPERATING AND
CAPITAL BUDGET FOR FISCAL YEAR (FY) 2016/17
B. CONSIDER THE TOWN OF LOS GATOS PROPOSED CAPITAL
IMPROVEMENT PROGRAM FOR FISCAL YEARS 2016 -2021
REMARKS:
After the release of the staff report and budget document, staff has prepared the list of donation needs
per the Town Council Donation Policy (see Attachment 3).
In addition, staff found typographical errors on a couple of pages. Replacement pages are contained
in Attachment 4.
Below are responses to Council inquiries for this agenda item.
1. Almond Grove Street Rehabilitation Project Proposed Funding Sources: Please explain the
sources and verify that the Town is not double counting the estimated expenditures.
The concrete pavement of all ten streets is estimated to cost $16,741,707 based on the February 16,
2016 report to Town Council. The Council established the Almond Grove Reserve by resolution at its
November 3, 2015 meeting in the amount of $12,155,973. The $12,155,973 reserve balance includes
the existing project balance of $3,696,000 and the additional amount of $8,459,973 from different
funding sources. Town Council authorized the Town Manager to award a contract to Vanguard
Construction in the amount not to exceed $2,716,077 for the construction of the first two streets. All
funding not expended from the current project balance of $3,696,000 on the first two streets will
provide funding for the next eight streets.
Based on the Council interest to bid the remaining eight streets in FY 2016 /17, funding for the entire
balance must be budgeted. To fund the Almond Grove Street Rehabilitation Project in Fiscal Year
2016 /17 fully, staff recommends that the Council consider adding the following items to the already
PREPARED BY: STEPHEN CONWAY
Finance and Administrative Services Director
Reviewed by: Assistant Town Manager Town Attorney Finance
SACOUNCIL REPORTS \2016 \5- 17- 16\Budget & CIP\Staff Report - Budget Addendum FINAI -doex
PAGE
MAYOR AND TOWN COUNCIL
SUBJECT: OPERATING AND CAPITAL BUDGETS- ADDENDUM
DATE: MAY 17, 2016
REMARKS (cont'd):
established Almond Grove Reserve:
• Transfer current projects on hold (funding balance of $2,107,700) and place these projects on
an unfunded list
• Transfer $1,000,000 from FY 2014/15 year -end saving (currently in General Fund Capital
Reserve)
• Use $1,478,034 available fund balance from General Fund Appropriated Reserve (GFAR)
The table below shows the proposed sources and is color coded to the project funding page contained
in the FY 2016 -17- 2020/21 Capital Improvement Program with the Almond Grove Street
Rehabilitation project on page C -9 (please refer to replacement page C -9 contained in Attachment 4).
Proposed Funding Sources for Almond Grove Street Rehabilitation
Existing Project Budget (Allocated to Almond Grove Project)
$ 3,696,000
Almond Grove Reserve Balance (Unallocated)
$ 8,459,973
Total Almond Grove Reserve (Includes Existing Funding)
$ 12,155,973
Current Projects on Hold
2,107,700
Additional from FY 2014/15 Savings to AG
1,000,000
Additional from GFAR
11478,034
Estimated Total
$ 16,741,7
ALMOND GROVESTRW RMAABRITION PROJECT
at 811 -0003
Prior Y.
2015116
Fhdmated
2016117
2016117
2017/18 2015/19
201920 202021
Atonal,
Eetimatad
Catryfwd
NewF nding
Budget
Propmed Pmpoa d
Proposed Proposed
Total Project
SODROEOFFF)"S
to 201627
(MtFC
GFAR
S 299.833
S 47.238
$ 3,696,000
S 1,478,034
S 5.174.034
$ S -
8 - S
$ 5,521.105
AIMONDGROVERFSERVE
-
-
-
8,459,973
8,459,973
- -
-
8459,973
FROM PROJECTS ON HOLD(GFAlO
-
-
2,107,700
-
2,107,700
2.107,700
ADDFY2014 /l5YESAV1NNG
-
1,000,000
1,000,000
-
1,000,000
TOTALSOIIRCEOFFUNDS
S 299,833
S 47,238
S 5,803,700
$ 10,938,007
$ 16,741,707
S $
5 S
S 17,088,78
Prior Yra
201Y16
Estimated
201627
201627
201728 2018/19
201920 202021
Aemala
Fstimated
Carryfwd
New Feuding
Budget
Proposed Proposed
Proposed Proposed
Total Projem
OSKOFFUNDS
to 2016117
(with Cerryf"
GFAR
Salaries and Beoeliv
$ -
S -
$ -
$
-
Se kalsvpOna/Epommt
-
SwAcqukidon &Preparation
-
ConrultansSavkee
-
PgortCmssmcdowErpemes
299,833
47,238
5,803,700
10,938,007
16,741,707
17,088,778
TOTAL GFAR
S 299,833
$ 47,238
$ 5,803,700
S 10,938,007
$ 16,741,707
$ - $ -
S - $ -
$ 17,088,778
TOTALUSEOFBUNDS
S 299,833
S 47,238
S 5,803,700
S 11,938,007
S 16,741,707 is
$
T S
S 17,0811,
The FY 2015/16 actual expenditures, including the pavement of the first two streets, will be
determined by the end of the calendar year at the time the Town closes its books for fiscal year
2015/16. The financial table only shows current estimated spending available at the time of the
proposed Budget's publication. At the time of closing the fiscal year, the unspent project balance
will be carried forward to the next fiscal year to provide funding for the next eight streets.
PAGE
MAYOR AND TOWN COUNCIL
SUBJECT: OPERATING AND CAPITAL BUDGETS- ADDENDUM
DATE: MAY 17, 2016
REMARKS (cont'd):
2. Why does page C -9 in the Operating Budget show $12,282,993 as the 2015116 estimated capital
project expenditure and $14,648,366 as the 2016/17 proposed amount? Are we double counting
Almond Grove?
FY 2015/16 estimated capital project expenditures of $12,282,993, represent staffs best estimate at
the time of the publication of the Proposed FY 2016/17 Budget. FY 2015/16 capital funding
includes $3,966,126 of new appropriations adopted by Council last May, the carryforward balances
of on -going capital projects from FY 2014/15, and any new capital projects that were approved
during FY 2015/16 such as the Pedestrian Bicycle Master Plan. Staff cannot determine the actual FY
2015/16 capital project final expenditures until the close of the end of fiscal year (at the end of
calendar year 2016) and uses these estimates to forecast year end fund balances. At the time of
closing the fiscal year, the unspent balances of all continued projects will be carried forward to the
next fiscal year, so typically actual expenditures are lower than estimated.
FY 2016/17 capital expenditures of $14,846,366 represent new proposed appropriations from various
proposed capital funding sources of which $10.9 million is for the Almond Grove Street
Rehabilitation project. Specific projects funded under the different funds are listed in the CIP
Financial Summary Section from pages B -11 to B -21.
Estimated expenditures for the Almond Grove Street Rehabilitation Project include $5,803,700 for
FY 2015/16 and $10,983,007 for FY 2016/17 to meet the total estimated cost of $16,741,707. The
Almond Grove Street Rehabilitation project is not double counted. After completion of the entire
project, all the funds allocated but not used for the project will roll back to the General Fund
Appropriated Reserve (GFAR) balance and will be available for future project appropriations.
3. Pension Fresh Start: Why do we say that we would get a reduced "interest rate" when interest
isn't really being collected as it would on a regular loan?
The staff report refers to total interest savings. The $4.7 million of interest savings refers to the
estimate of total interest costs saved on the amount Ca1PERS charges on the unfunded liability
balance. The Town is proposing to pay down the unfunded balance more quickly under a Fresh Start
program, 20 years versus 30 years, so the unfunded balance will drop much like a reduction of
principal balance if a homeowner does a 15 -year mortgage versus a 30 -year mortgage. CalPERS
currently charges a 7.5% interest rate annually on unfunded balances. If the unfunded balances are
reduced, the annual interest cost that Ca1PERS builds into the pension will be reduced as well.
4. How much money is in our tree replacement fund?
The Town's tree replacement account has a current balance of $303,034. As previously
communicated to the Council, staff has not been planting trees through the drought, creating growth
in the account. The Council could establish a CIP project to increase the number of trees planted.
PAGE 4
MAYOR AND TOWN COUNCIL
SUBJECT: OPERATING AND CAPITAL BUDGETS- ADDENDUM
DATE: MAY 17, 2016
REMARKS (cont'd):
5. What is the budget allocated to repainting faded red curbs and street poles?
Red Curbs — Town staff repaints red curbs as part of the annual street maintenance budget of
$585,709 (page D -194 of the FY 2016/17 Proposed Operating Budget, Attachment 1). Typically
curbs are painted based on priority areas where there is high pedestrian traffic or based on requests
from residents. Requests can be provided directly to Parks and Public Works (PPW) as needed.
Street Light Poles — The Town eliminated the street light pole repainting program several years ago.
Repainting can cost $1,000 a pole. If the Council so directs, PPW can implement a program with
appropriate funding and staffing resources to manage a program.
6 Please explain "2% at age 60. "
Ca1PERS offers a defined benefit plan where retirement benefits are based on a formula, rather than
contributions and earnings to a savings plan. At the time of retirement, the lifetime retirement benefit
is calculated using a formula that includes using the years of service credit, age at retirement, and
final compensation. Final compensation is the highest average full -time monthly pay rate for a 3 -year
period based on the employer contract or collective bargaining unit agreement. The Town
contributes 26.96% of the employee salary while the employee contribute 6.75% of the salary. If an
employee retires at age 60, worked 20 years for the Town of Los Gatos under the 2% plan, and the
employee's final compensation was $100,000, the employee would collect approximately $40,000
per year in retirement. The calculation is done by multiplying 2% and 20, which equals 40 %. 40% is
multiplied by the final salary of $100,000 to obtain an annual retirement disbursement of $40,000.
Attachments Previously Distributed:
1. FY 2016/17 Proposed Operating and Capital Budget (Previously Submitted)
2, FY 2016 -2020 proposed Capital Improvement Program Budget (Previously Submitted)
Attachments Included with this Addendum:
3. Town of Los Gatos Donation Opportunities: FY 2016/17 Lis of Town Needs
4. Replacement pages for FY 2016/17 Capital Improvement Program for correcting typographical
errors B -11 and B -12, and C -9 and C -10
TOWN OF LOS GATOS DONATION OPPORTUNITIES
FY 2016/17 LIST OF TOWN NEEDS
To ensure that all donations and contributions are sought and accepted in an ethical manner, the
Council established a Donation and Solicitation Policy. A list of Town needs was developed to
identify goods, services, and other contributions to enhance Town services, programs, and
events. The recommended needs for FY 2016 /17 are:
PUBLIC SAFETY
• Volunteer Program Materials and Equipment
• Specialized Public Safety Equipment and Supplies, including Support for Canine
Program
Training Support for Public Safety Staff and Volunteers
Equipment, Supplies and Materials to support Police Operations
Community Outreach Program Supplies
LIBRARY SERVICES
• Children, Youth, and Adult Program Collections, Supplies and Services
• Library Book and Audio/Visual Collections
• Funding to Support Technological Enhancements, including Digital Services
• Equipment and Services to Support Historical Preservation Efforts
• Resource support for Collection Development and Reference, Local History, and Library
Policy
SENIOR SERVICES
• Senior Program Supplies, Materials, and Services
• Cell Phone and other Telecommunications Equipment
COMMUNITY EVENTS
• Supplies, Materials, and Services for Special Community and Volunteer Events and
Activities
• Funding for or Donations of Public Art subject to Public Art Selection Policy
TOWN PARKS AND FACILITIES
• Beautification Materials and Services for Town Parks, Open Space, and Infrastructure;
Land for Parks and Open Space
• Contributions that Support Recreation or Expansion of Athletic Fields
• Contributions for Public Improvements for Civic Center Deck and Facilities Housing
Museums of Los Gatos and Friend of Los Gatos Library
SUSTAINABD3TY
Contributions to Help Minimize Impacts on Local, Regional, and Global Ecosystems
through Conservation, Reduced Pollution, Increased Efficiency, and Protection of
Wildlife, Vegetation, and other Ecosystems.
TECHNOLOGY
• Equipment, Software and Services to Enhance Communication with the Public and
Organizational Productivity
ATTACHMENT
CAPITAL IMPROVEMENT PROGRAM
Financial Summaries
B-11 ATTACHMENT 4
GFAR FUND PROJECT SUW ARY
Espeodetl
Estimated
Through
Carryfud to
2016117
2017/18
2018119
201960
202021
Total
201526
201627
Budget
Budget
Budget
Budget
Budget
Budgeted
Carryforward R'ojuk
4004 Oak Meadow Pak Upgrades
S -
S -
S -
S - S -
S - S -
S -
4504 Op. Sp. Trial Upgrades
-
250,000
-
- -
- -
250,000
4605 Parks Playground Fibar Project
42,510
32,501
-
25,000 -
25,000 -
125,000
4203 Plaza Park Improvements
3,663
33,338
-
- -
- -
37,000
3104 Perk Rehabiltation - Bachman Park
-
325,000
-
-
- -
325,000
3406 Blossom Hill Park Reamman Building Upgrades
-
40,000
-
- -
- -
40,000
4506 Los Gatos Crack Trail Improvements a Charter Oaks
-
-
-
- -
- -
-
4301 Worcaler Park
-
-
-
- -
- -
-
3407 Blossom Hill Park LmN League Backstop
-
50,000
60,000
- -
- -
110,000
2103 HVAC Upgrades- Old Library,
643,379
-
-
- -
- -
643,379
2002 Town Beautification Projects
87,593
10,160
-
- -
- -
97,753
6001 AudiNVidon System Upgrade
52,440
58,160
-
- -
- -
110,600
6101 Information System Upgrade
392,981
$2,019
-
- -
- -
475,00
6003 Town -wide Document Imaging Project
198,011
16,990
-
- -
- -
215,000
6302 Tiburon CAD/RMSUpgrade
28,000
42,000
-
- -
- -
70,000
2302 Building Rep lacenwnt at Corporation Yard
11,557
208,443
-
- -
- -
220,000
2105 ON Lduary Reuse Project
1,049,203
28,286
-
- -
- -
1,077,489
2109 Former Lbmry Rooflmprov ®etas
-
90,000
-
- -
- -
90,000
2304 Fuel System EMance sent
-
75,000
-
- -
- -
75,000
2402 Police lateropaabiGty Radio Project
-
150,000
-
- -
- -
150,000
2305 Engineering Document Archiving
907
39,093
20,000
- -
- -
60,000
2110 Civic Center Energy Assessment
-
25,0011
-
- -
- -
25,000
2306 PPW Imeropersbibty Radio Project
-
150,000
-
- -
- -
150,000
6305 Silicon Valley Interopenability Project (SVRIP) Service To
129,600
23,276
152,876
152,876 -
- -
458,628
2111 Civic Comte Improvements
-
-
-
- -
- -
-
2008 Energy Efficiency Upgrade - Town -wide
-
-
25,010
25,000 25,000
- -
75,000
9901 Street Repair & Resurfacing
3,680,602
385,933
525,010
525,000 525,000
525,000 525,!00
6,691,535
9902 Annual Strict Restripi g
153,998
71,002
25,000
25,000 25,000
25,000 25,000
350,001
9903 Panamint Rehabilitation- Crack Seal
195,521
514,107
160,000
160,000 160,000
160,000 160,000
1,509,628
0003 Almond Grove Street Rehabilitation
347,070
5,803,703
10,938,007
- -
- -
17,088,781
0007 Hillside Road Repair &Resurfacing
159,361
88,563
-
- -
- -
247,924
0127 Traffic Calming Projects
132,059
22,941
10,000
10,000 10,010
10,000 10,00
205,000
9921 Curb, Gutter& Sidewalk Maintenance
1,648,811
351,264
250,000
250,000 250,000
250,000 250,000
3,250,075
0122 Electrical Panel Replacement on Pageant Way
-
45,000
-
- -
- -
45,000
9930 Retaining WallRWairs
1,194,284
243,304
100,000
100,000 100,000
100,000 100,000
1,937,588
0801 Quito Road- Bridge Rephw.ement
96,632
235,087
-
- -
- -
331,719
0120 Guardral Rep laceomt Projects
129,858
100,143
-
- -
- -
230,001
07M 224 W. Main Strut Property Acquisit am(Pmking Lot 6)
4,000
1,196,000
-
- -
- -
1,200,000
0705 Downtown Parking Lots Seal Cast &Restriping
-
100,000
-
- -
- -
100,000
0214 M ormnern Control Network Update
-
20,000
-
- -
- -
20,000
0705 Downtown Parking Signs Enhancements
-
-
-
- -
- -
-
0218SharmoM.GB /Cherry Blossom Sidewalk Improvements
104
129,896
-
- -
- -
130,000
2019 Stonybrook& Kemtedy Sidewalk Improvements
12,808
287,192
-
- -
- -
300,000
0706 Parking Lot
-
-
-
- -
-
-
0220Imersation Safety & Traffic Flow Improvements
38,696
11,304
-
- -
- -
50,000
0221 Sidewalk Improvements- Multip In Locations
-
60,001
-
- -
- -
60,000
0125 Crosswalk Add - Santa Cruz Ave
-
60,000
-
- -
- -
60,00
0126 Crosswalk Lighting Upgrade
-
50,000
-
- -
- -
50,000
W07 Pageamt Way Parking Lot ReconaWnion
-
175,550
-
- -
- -
175,550
0223 Momebello Way Island Removal
-
-
-
- -
- -
-
0224 LED Stractlghts
-
50,648
-
- -
- -
504,648
0127 Traffic Around School
-
78,794
-
- -
- -
78,794
0226 Bicycle & Pedearunt Master Plan
-
7,500
-
- -
- -
7,500
New Projeco
4608 Tennis Courts Repass - Various Town Parks
-
-
140,000
- -
- -
140,000
2114 HVAC System Upgrade - Civic C onfer
-
-
100,000
- -
- -
100,000
2112 EAerior Lighting Replacement - Civic Center
-
-
25,000
- -
- -
25,000
2113 Civic Center Fomntain Modifteation
-
-
35,000
- -
- -
35,00
0228 IvteWgent Poking Imeastroeure
427,000
427,000
Tot a1 GFAR Projects
$10,433,639
S 12,271,196
512992,883
S 1,272A76 51,095,000
$1,095,0011 $1,07Q000
$40230,594
B-11 ATTACHMENT 4
CAPITAL IMPROVEMENT PROGRAM
Financial Summaries
TRAFFIC MITIGATION FUND
STATEMENT OF SOURCE AND USE OF FUNDS
B -12
Budget&
Adjusted Budget
Fathomed
CveyfiW
Proposed
Proposed
Proposed
Proposed
2015116
2015/16
2016117
2017118
2018/19
2019120
2020/21
SOURCEOFFUNDS
Beginning Fund Balance
Unrestricted
$
184,940
$ 184,940
$
184940
S
184,940
$
184,940
$
184,940
$
184,940
Defected T'mffic Mitigation
Total Beginning Fund Balance
S
184,940
$ 184,940
S
184,940
S
184,940
$
184,940
$
184,940
$
184,940
Revenues
Deferred Revenue
$
1,757,512
$ 571,852
S
1,414,229
S
602,895
S
425,027
S
10,000
S
10,000
In -Lieu Fees
Total Revenues
S
1,757,512
$ 571,852
$
1,414,229
$
602,895
S
425,027
$
10,000
S
10,000
TOTAL SOURCEOF FUNDS
$
1,942,452
$ 756,792
S
1599,169
$
787,835
S
609,967
S
194,940
$ 194,940
USEOFFUNDS
Completed Projects
Total Completed Projects
$
25,142
S 25,142
$
-
$
-
$
-
$
-
S
-
CarryforwurdProjecB
Winchester Blvd/Lark Ave. Intersection
805,571
489,377
316,194
-
-
-
-
Los area Blvd /lark Intersection
174,299
-
-
-
-
-
-
BlossomRdlRd /Cheny In Intersection
500,000
-
500,000
-
-
-
-
Los Gatos Blvd /Shannon Improverrents
20,000
-
20,000
-
-
-
-
Monument Control NetworkUpdate
10,000
-
IO,O00
-
-
-
-
Intersection Safely & Traffic Flow I p
40,000
31,962
8,038
-
-
-
-
Gosswalk Add - Santa Cruz Ave
50,000
-
50,000
-
-
-
-
CmsswaBLightingUpgrede
50,000
15,371
34,629
-
-
-
-
Bicyclea, PedestrianMasterPlan
72,500
-
72,500
-
-
-
-
ProposedProjects
Traffic Signal Modernization
-
-
177,859
592,895
415,027
-
-
Cut- Through Traffic Mitigation
215,OW
-
-
Total Project Espenditures
S
1,7479512
$ 561,852
S
19404,229
S
592,895
S
415,027
$
-
$
-
Operating Trans fen
S
10,000
S 10,000
S
10,000
S
10,000
$
10,000
$
101000
$
10,000
Total Opened ug'1'ransfers
S
10,000
$ 10,000
S
10,000
S
10,000
$
10,000
S
10,000
$
10,000
Ending Food Balance
Unrestricted
$
184,940
$ 184,940
$
184,940
$
184,940
S
184,940
$
184,940
S
184,940
Deferred Traffic Mitigation
'Total Ending Fund Balance
$
184,940
$ 184,940
S
184940
S
184,940
S
184,940
$
184,940
$
184940
TOTAL USEOF FUNDS
S 1942,452
S 756,792
S 1$99,169
S 787,835
$
609,967
$
194,940
S
194,940
B -12
STREETS PROGRAM
Street Reconstruction & Resurfacing
Project
Summer 2016
Construction
Phase 1 project construction
Components &
Fall 2016
Completion
Phase 1 project completion & closeout
Estimated
Timeline
Winter 2017
Design
Phase 2 Completion of plans and specifications
FsUmoted
Spring 2017
Bid process
Phase 2 Council approves plans and authorizes bidding the
AMWS
project
Csrt$rssd
Sumner 2017
Construction
Phase 2 project construction
Total Projed
Fall 2017
Completion
Phase 2 project completion & closeout
ALMOND GROVE STREEF RER43RJMN PROJECT'
ProiM 811 -0003
Pdor Y.
201V16
FsUmoted
2016/17
2016/17
2017/18 2018/19 201920 202061
AMWS
Estimated
Csrt$rssd
New Funding
eudot
Pr ed Propoed Proposed Pro posed
Total Projed
SOURCEOFEUNDS
ro201667
wiOC
GFAR
S 299333
$ 47,238
$ 3,696.000
S 1478,034
$ 5,174034
$ - $ 5 - S -
S 5.521.105
ALMONDG11 RESERVE
-
-
8,459.973
8,459,973
- - - -
8.459 -973
FROM PROJECTS ON HOLD(GFAR)
-
2,107,700
-
'_.10],700
_.107v0U
ADD IN 2014/15 YE SAVING
1,000,000
1,000,000
1,000000
TOTALSOURCEOFFUNDS
S 299,833
S 47,238
S 5,803,]00
$ 10,938,007
$ M74L707
5 S S S
S 1],088,]]8
Prior Y.
2015/16
F fim.Wd
2016/17
20165,7
M17/19 201809 201960 202061
AemWS
Esdmeted
Ca.,l
New Pood,
Ibdget
Proposed Proposed ProWSed Pro ed
ToW Project
USEOFFUNDS
m2016M
withC
'FAR
Sowries and Fenepa
S -
$ -
S -
$
$ -
$ - $ $ _ $ _
$ -
Ser tces�u PPlies/F4uiPment
Sik AC uWi . & PreF .Iwn
consulw+d Sovwes
-
-
- - - -
-
Pro'atCanstrvcnon mu
299,833
47238
5,803,700
10,938,007
16,741,707
-
17,088,778
TOTALGFAR
S 299,833
$ 47,238
$ 5,803.700
S 10,938,007
$ 16,741,707
$ - $ - s - $ -
$ 17,088,778
TOTAL USE OF FINDS
$ 299,833
S 47,278
S 5,007700
$ 11,938007
$ 16741707
S $ $ $
$ 1]088]/8
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STREETS PROGRAM
Street Reconstruction & Resurfacing
TOWN -WIDE
Project Name Pavement Rehabilitation — CrackSeal Project Number 811 -9903
Department Parks & Public Works Project Manager Town Engineer: Lisa Petersen
Description This project will rehabilitate streets throughout Los Gatos to maintain the Town's roadway
infrastructure.
Location This project is located at multiple locations Town -wide.
Project The lack of a consistent funding source for street rehabilitation has been a challenge for many local
Background municipalities for several years. As part of voter- approved Measure B from 2010, the Santa Clara
Valley Transportation Agency (VTA) assesses a $10 per vehicle registration surcharge to repair and
rehabilitate streets. Eighty percent of the revenues collected by the VTA are returned to the local
municipality in which they were generated. The remaining 20 percent is used for regional and county-
wide projects. This funding source is expected to generate approximately $160,000 annually for Los
Gatos, which will be used for street rehabilitation Town -wide. This Town -wide crack seal program
extends the life of roadway surfaces throughout the community.
Operating This project will use staff time for construction inspection and management. The staff time for this
Budget Impacts project is included in the department's FY 2016/17 Operating Budget.
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