January 20, 2022 2:23 PM City Council Regular Meeting Agenda Page1
MAYOR
Marie Blankley
COUNCIL MEMBERS
Rebeca Armendariz
Dion Bracco
Zach Hilton
Peter Leroe-Muñoz
Carol Marques
Fred Tovar
CITY COUNCIL
AGENDA
CITY OF GILROY
VIRTUAL MEETING
VIA
ZOOM
GILROY, CA 95020
REGULAR MEETING 6:00 P.M.
MONDAY, JANUARY 24, 2022
CITY COUNCIL PACKET MATERIALS ARE AVAILABLE ONLINE AT www.cityofgilroy.org AGENDA CLOSING TIME IS 5:00 P.M. THE TUESDAY PRIOR TO THE MEETING
THIS MEETING WILL BE CONDUCTED PURSUANT TO THE PROVISIONS OF ASSEMBLY BILL 361. MEETING MATERIAL IS AVAILABLE ON THE CITY WEBSITE www.cityofgilroy.org.
Pursuant to California Assembly Bill 361, a local legislative body is authorized to hold public meetings remotely and to make those meetings accessible to all members of the public seeking to observe and to address the local legislative body by remote means only via a technology solution.
As such, the City will provide various options for the public to participate in the conduct of the meeting, as indicated in detail below on this cover sheet.
In order to minimize the spread of the COVID 19 virus, the City will be offering online conferencing via Zoom, Facebook Live, and telephone for the public to view or listen to this meeting. Written comments can be submitted by email to Thai Nam Pham, City Clerk, at [email protected].
Please note that written comments will not be read out loud, but it will be part of the written record.
To Participate via Zoom:
Weblink:
https://us02web.zoom.us/j/87553088436?pwd=bGpvUFA2NHRGNldPOWEzZnVvWSs4QT09
Or via Telephone: +1 669 900 6833
Webinar ID: 875 5308 8436
Passcode: 937713
To View the Meeting Live on Facebook:
Weblink: https://www.facebook.com/CityofGilroy
COMMENTS BY THE PUBLIC WILL BE TAKEN ON AGENDA ITEMS BEFORE ACTION IS TAKEN BY THE CITY COUNCIL. Public testimony is subject to reasonable regulations, including but not limited to time restrictions for each individual speaker. Please limit your comments to 3 minutes .
The amount of time allowed per speaker may vary at the Mayor’s discretion depending on the number of speakers and length of the agenda.
City Council Regular Meeting Agenda
01/24/2022
Page2
Written c omments on any agenda item may be emailed to the City Clerk’s Office at [email protected] or mailed to the Gilroy City Clerk’s Office at City Hall, 7351 Rosanna Street, Gilroy, CA 95020. Comments received by the City Clerk’s Office by 1 p.m. on the day of a Council meeting will be distributed to the City Council prior to or at the meeting and available for public inspection with the agenda packet located in the lobby of Administration at City Hall, 7351 Rosanna Street prior to the meeting. Any correspondence received will be incorporated into the meeting record. Items received after the 1 p.m. deadline will be provided to the City Council as soon as practicable.
In compliance with the Americans with Disabilities Act, and Assembly Bill 361 , the City will make reasonable arrangements to ensure accessibility to this meeting. If you need special assistance to participate in this meeting, please contact the City Clerk a minimum of 72 hours prior to the meeting at (408) 846-0204.
If you challenge any planning or land us e decision made at this meeting in court, you may be limited to raising only those issues you or someone else raised at the public hearing held at this meeting, or in written correspondence delivered to the City Council at, or prior to, the public hearing. Please take notice that the time within which to seek judicial review of any final administrative determination reached at this meeting is governed by Section 1094.6 of the California Code of Civil Procedure.
A Closed Session may be called during this meeting pursuant to Government Code Section 54956.9 (d)(2) if a point has been reached where, in the opinion of the legislative body of the City on the advice of its legal counsel, based on existing facts and circumstances, there is a significant exposure to litigation against the City.
Materials related to an item on this agenda submitted to the City Council after distribution of the agenda packet are available with the agenda packet on the City website at www.cityofgilroy.org subject to Staff’s ability to post the documents before the meeting.
KNOW YOUR RIGHTS UNDER THE GILROY OPEN GOVERNMENT ORDINANCE Government's duty is to serve the public, reaching its decisions in full view of the public.
Commissions, task forces, councils and other agencies of the City exist to conduct the people's business. This ordinance assures that deliberations are conducted before the people and that City operations are open to the people's review.
FOR MORE INFORMATION ON YOUR RIGHTS UNDER THE OPEN
GOVERNMENT ORDINANCE, TO RECEIVE A FREE COPY OF THE ORDINANCE
OR TO REPORT A VIOLATION OF THE ORDINANCE, CONTACT THE OPEN GOVERNMENT COMMISSION STAFF AT (408) 846-0204
The agenda for this regular meeting is as follows:
I. OPENING
A. Call to Order
1. Pledge of Allegiance
2. Invocation
3. City Clerk's Report on Posting the Agenda
4. Roll Call
B. Orders of the Day
C. Employee Introductions
City Council Regular Meeting Agenda
01/24/2022
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II. CEREMONIAL ITEMS
A. Proclamations, Awards, and Presentations
III. BOARD AND COMMISSION INTERVIEWS
1. Interviews for Open Seats on Boards, Commissions and Committees with Terms Expired or Vacant as of December 31, 2021 for Future Appointment February 7, 2022
1. Staff Report: Thai Pham, City Clerk
2. Possible Action:
Interview candidates for open seats on Boards, Commissions, and Committees with terms expired or vacant as of December 31, 2021.
IV. PRESENTATIONS TO THE COUNCIL
PUBLIC COMMENT BY MEMBERS OF THE PUBLIC ON ITEMS NOT ON THE
AGENDA BUT WITHIN THE SUBJECT MATTER JURISDICTION OF THE CITY
COUNCIL
This portion of the meeting is reserved for persons desiring to address the Council on matters within the Gilroy City Council’s jurisdiction but not on the agenda. Persons wishing to address the Council are requested to complete a Speaker’s Card located at the entrances and handed to the City Clerk. Speakers are limited to 1 minute each . The amount of time allowed per speaker may vary at the Mayor’s discretion depending on the number of speakers and length of the agenda. The law does not permit C ouncil action or extended discussion of any item not on the agenda except under special circumstances. If Council action is requested, the Council may place the matter on a future agenda.
Written comments to address the Council on matters not on this agend a may be e -mailed to the City Clerk’s Office at [email protected] or mailed to the Gilroy City Clerk’s Office at City Hall, 7351 Rosanna Street, Gilroy, CA 95020. Comments received by the City Clerk’s Office by 1:00pm on the day of a Council meeti ng will be dis tributed to the City Council prior to or at the meeting and available for public inspection with the agenda packet located in the lobby of Administration at City Hall, 7351 Rosanna Street, prior to the meeting. Any correspondence received wil l be incorporated into the meeting record. Items received after the 1:00pm deadline will be provided to the City Council as soon as practicable. Written material provided by public members under this section of the agenda will be limited to 10 pages in har d copy. An unl imited amount of material may be provided electronically.
City Council Regular Meeting Agenda
01/24/2022
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V. REPORTS OF COUNCIL MEMBERS
Council Member Bracco – Gilroy Sister Cities Association (alternate), Santa Clara Co.
Library JPA, SCVWD Joint Council-SCRWA-Board Water Resources Committee, South County Regional Wastewater Authority Board, Street Naming Committee
Council Member Armendariz – ABAG (Alternate), CalTrain Policy Group, Gilroy Downtown Business Association Board (alternate), Gourmet Alley Ad Hoc Committee, Historic Heritage C ommittee, Sant a Clara Co. Library JPA (alternate), Santa Clara Valley Habitat Agency Implementation Board, Silicon Valley Clean Energy Authority JPA Board (Alternate), Street Naming Committee, VTA Committee for Transit Accessibility (Alternate)
Council Me mber Marques - Gilroy Downtown Business Association Board, Gilroy Gardens Board of Directors, Gourmet Alley Ad Hoc Committee, Historic Heritage Committee (Alternate), Santa Clara Valley Habitat Agency Governing Board, Santa Clara Valley Habitat Agency Implementation Board, South County Regional Wastewater Authority (Alternate)
Council Member Hilton – Gilroy Economic Development Partnership, Silicon Valley Clean Energy Authority JPA Board, South County United for Health, Visit Gilroy California Welcome Center Board
Council Member Tovar – Economic Development Corporation Board, Gourmet Alley Ad Hoc Committee, Recycling and Waste Reduction Commission, Santa Clara Co.
Expressway Plan 2040 Policy Advisory Board, SCVWD Water Commission (alternate), South County Joint Recycled Water Advisory Committee, South County Regional Wastewater Authority Board, Street Naming Committee, South County Youth Task Force Policy Team (alternate), VTA Committee for Transit Accessibility
Council Member Leroe -Muñoz - ABAG, CalTrain Policy Group ( alternate), Cities Association of Santa Clara County Board of Directors, Economic Development Corporation Board, Gilroy Youth Task Force, SCVWD Water Commission, Silicon Valley Regional Interoperability Authority Board, South County Youth Tas k Force Policy Team, VTA Mobility Partnership, VTA South County City Group (alternate), VTA Policy Advisory Committee (alternate)
Mayor Blankley - Cities Association of Santa Clara Co. Board of Directors (alternate), Gilroy Economic Development Partnershi p, Gilroy Sist er Cities Association, Gilroy Youth Task Force (alternate), Santa Clara Valley Habitat Agency Governing Board, SCVWD Joint Council-SCRWA-Board Water Resources Committee, South County Joint Recycled Water Advisory Committee, South County Regio nal Wastewater Authority Board, VTA Board of Directors Alternate, VTA Mobility Partnership, VTA Policy Advisory Committee, VTA South County City Group
VI. FUTURE COUNCIL INITIATED AGENDA ITEMS
City Council Regular Meeting Agenda
01/24/2022
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VII. CONSENT CALENDAR (ROLL CALL VOTE)
All matters listed under the Consent Calendar are considered by the City Council to be routine and will be enacted by one motion. There will be no separate discussion of these items unless a request is made by a member of the City Council or a member of the public. Any person des iring to spea k on any item on the consent calendar should ask to have that item removed from the consent calendar prior to the time the Council votes to approve. If removed, the item will be discussed in the order in which it appears.
A. Action Minutes for January 10, 2022 City Council Regular Meeting B. Resolution of the City Council of the City of Gilroy Declaring Weeds a Nuisance
C. Approval of the Final Map and Property Improvement Agreement No. 2022 - 01 for Glen Loma Ranch Nebiollo North Single Famil y Home Develo pment, Tract 10558, APN 808-18-031
D. Approval of a Notice of Acceptance of Completion for the W. 10th Crossing at Orchard Drive Project No. 21 -PW-269 and Approval of a Final Contract with Golden Bay Construction in the Amount of $134,621.16 E. Acceptance of the Annual Development Impact Fee Report for Fiscal Year 2020-2021 as Required Under Government Code 66000
F. Second Reading and Adoption of an Ordinance of the City Council of the City of Gilroy Consolidating the Bicycle Pedestrian Com mission and Placing its Associated Commission Functions for Infrastructure Planning and Development Review Under the Authority of the Planning Commission, and the Associated Commission Functions for Education and Encouragement Activities Under the Authorit y of the Park s and Recreation Commission.
VIII. BIDS AND PROPOSALS
A. Award a Contract to PC Inc. for the City Hall Backup Generator Project (No. 21-PW-268), and approve a project expenditure of $708,885
1. Staff Report: Daryl Jordan, PE, Public Works Director
2. Public Comment
3. Possible Action:
a) Adopt a resolution of the City Council of the City of Gilroy amending the budget for the City of Gilroy for Fiscal Year 2021 -2022 and appropriating proposed expenditure amendments.
b) Award a Contract to PC Inc. in the amount of $557,200 with an additional project contingency of $55,720 (10%), for a total construction cost of $612,920 and $95,964.60 for costs associated with design, permitting and advertising for a total project cost of $708,885 for the City Hall Bac kup Generator Project, No. 21 -PW-268, and authorize the City Administrator to execute the contract and associated documents.
IX. PUBLIC HEARINGS
City Council Regular Meeting Agenda
01/24/2022
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X. UNFINISHED BUSINESS
A. Citywide Sidewalk Assessment Update
1. Staff Report: Gary Heap, City Engineer/Transportation Engineer
2. Public Comment
3. Possible Action:
Receive an update on the Citywide Sidewalk Network Inventory and Assessment Project.
B. Receive an Update on Refinancing Pension Obligation Project and Grant Initial Authorization to Proceed with the Issuance of Pension Obligation Bonds and the Related Judicial Validation Process
1. Staff Report: Harjot Sangha, Finance Director
2. Public Comment
3. Possible Action:
1) Receive an update.
2) Adopt a Resolution authorizing the initial issuance of bonds to refund certain pension obligations of the City, approving the form and authorizing the execution of a trust agreement, authorizing judicial validation proceedings relating to the issuance of the such bonds and approving additional actions related thereto.
XI. INTRODUCTION OF NEW BUSINESS
A. Enter into Lease Agreement with Santa Clara County and First Five of California to use San Ysidro Cultural Center as a Family Resource Center.
1. Staff Report: Adam Henig, Recreation Manager
2. Public Comment
3. Possible Action:
Motion to ap prove entering into a multi -year lease agreement that would net the City $265,000 through June 30, 2026 with First 5 Santa Clara County and County of Santa Clara to utilize the San Ysidro Cultural Center for the purpose of a Family Resource Center.
XII. CITY ADMINISTRATOR'S REPORTS
A. Citywide Fentanyl Outreach
B. Water Arrearage Program
XIII. CITY ATTORNEY'S REPORTS
XIV. CLOSED SESSION
XV. ADJOURNMENT
City Council Regular Meeting Agenda
01/24/2022
Page7
MEETING DATES
FUTURE MEETING DATES:
FEBRUARY 2022
7* Regular Meeting 6:00 p.m.
15* Special Meeting - Council Retreat - 6:00 p.m.
28* Regular Meeting - 6:00 p.m.
MARCH 2022
7* Regular Meeting - 6:00 p.m.
21* Regular Meeting - 6:00 p.m.
APRIL 2022
4* Regular Meeting - 6:00 p.m.
18* Regular Meeting - 6:00 p.m.
*meeting is webstreamed and televised.
City of Gilroy
STAFF REPORT
Agenda Item Title: Interviews for Open Seats on Boards, Commissions and Committees with Terms Expired or Vacant as of December 31, 2021 for Future Appointment February 7, 2022
Meeting Date: January 24, 2022
From: Jimmy Forbis, City Administrator
Department: City Clerk
Submitted By: Thai Pham
Prepared By: Thai Pham
Strategic Plan Goals
☐ Develop a Financially
Resilient Organization
☐ Ensure Neighborhood
Equity from City
Services
☐ Promote Economic
Development
Activities
☐ Promote Safe,
Affordable Housing for All
☐ Maintain and Improve
City Infrastructure
RECOMMENDATION
Interview candidates for open seats on Boards, Commissions, and Committees with terms expired or vacant as of December 31, 2021.
BACKGROUND
The City Council opened the annual recruitment period ending December 17, 2021, to fill seats on nine1 (9) Boards, Commissions, and Committees with member terms vacant or expiring as of December 31, 2021.
1 The number is based on tonight’s City Council’s action of consolidating Bicycle Pedestrian Commission into both Planning and Parks and Recreation Commission.
3.1 Packet Pg. 8
At the close of the application period, the following applications have been received:
Arts & Culture Commission
Applicants # of Seats Open # of Applications
1. Camille McCormack (incumbent)
2. Carmine DePaulo
3. Frank Patterson
4. Alexandra Perdew
4 4
Bicycle & Pedestrian Commission
*Function to be consolidated with Planning & Parks and Recreation* Applicants # of Seats Open # of Applications
None 1 0
Library Commission
Applicants # of Seats Open # of Applications
1. Jennifer Del Bono
2. Saeid Nooshabadi 1 2
Open Government Commission
Applicants # of Seats Open # of Applications
1. Tia Marrie Enriquez
2. Akur Varadarajan 1 2
Parks and Recreation Commission
Applicants # of Seats Open # of Applications
1. Eric Arredondo 2 1
Personnel Commission
Applicants # of Seats Open # of Applications
1. Marissa Haro
2. Connor Olenberger
3. Sergio Patterson
4. Annie Tomasello
2 4
3.1 Packet Pg. 9
Planning Commission
Applicants # of Seats Open # of Applications
1. Paolo Basilio
2. Zafar Khan
3. Annedore Kushner
4. Adriana Leongardt
5. Steven Oleson
6. David Matuszak*
7. Andrew Ridley
8. Zintis Rieksts
9. Monica Valdez
10. Akur Varadarajan
*(Applied to Historic Heritage Commission)
2 10
Physically Challenged Board of Appeals
Applicants # of Seats Open # of Applications
None 2 0
At the January 10, 2022 City Council Regular Meeting, City Council adopted Resolution No. 2022-02, which consolidated the Historic Heritage Committee into the Planning Commission. The two (2) a pplicants who applied to the Committee were advised about the consolidation and asked if they would like to apply to the Planning Commission. At the time of this staff report, one had responded to apply to the Planning Commission.
The other applicant has not yet responded.
CONCLUSION
For those seats withou t sufficient applications, the recruitment efforts will remain open.
Interviews have been scheduled with the City Council at this evening’s meeting, and appointments are scheduled to take place at the February 7, 2022 regular meeting.
Attachments:
1. Arts & Culture Applicant - McCormack, Camille (Incumbent)
2. Arts & Culture Applicant - Patterson, Frank
3. Arts & Culture Applicant - Perdew, Alexandra
4. Arts & Culture Applicant - DePaulo, Carmine
5. Library Commission Applicant - Del Bono, Jennifer
6. Library Commission Applicant - Nooshabadi, Saeid
7. Open Government Commission Applicant - Enriquez, Tia Marrie
8. Open Government Commission Applicant - Varadarajan, Akur
9. Parks & Recreation Applicant - Arredondo, Eric
10. Personnel Commission Applicant - Haro, Marissa
11. Personnel Commission Applicant - Olenberger, Connor
3.1 Packet Pg. 10
12. Personnel Commission Applicant - Patterson, Sergio
13. Personnel Commission Applicant - Tomasello, Annie
14. Planning Commission Applicant - Basilio, Paolo
15. Planning Commission Applicant - Khan, Zafar
16. Planning Commission Applicant - Kushner, Annedore
17. Planning Commission Applicant - Leongardt, Adriana
18. Planning Commission Applicant - Matuszak, David
19. Planning Commission Applicant - Olesen, Steven
20. Planning Commission Applicant - Ridley, Andrew
21. Planning Commission Applicant - Valdez, Monica
22. Planning Commission Applicant - Varadarajan, Akur
23. Planning Commission Applicant - Zintis, Rieksts
3.1 Packet Pg. 11
City of Gilroy Application
for Board, Committee and Commission Appointment
Board/CommitteeCommissionofInterest: Cyt, ( raid, ( Duj+ t- rpj Name: ; Q.yi t.(! i Me, an rY IC.IV, L_
Phone number( email address*:
Are you a registered voter within the City limits? Yes Ni( No
9.;}y../ 9.6-a, f) Physical Address*: G.A.] ' j ( P ' ntiVP, List your qualifications for this appointment:
XY11 Ag_
List any serviceto the community including any prior appointments:
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are yourgoalswhile servingon thisBoard/Commission/Committee? 47c-• tO c dam.
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are you the mostqualifiedto serveon thisBoard/Commission/Committee? aerri.
ThWAI:Co AD Jr Vito,* (Th rim
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Commission, Board and Committee'pplications are a pulic recordMail or emailyour applicationto: City ClerkCity
of Gilroy7351
RosannaStreet, Gilroy, CA 95020CityClerk(
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Packet Pg. 12
Attachment: Arts & Culture Applicant - McCormack, Camille (Incumbent) (3624 : Commission Interviews) i
14Yiyiiilu
IL
Ali
Camille McCormack
Philanthropist
twastheBayAreapolioepidemicof1954
thatleftmymother, overnight, confinedto
awheelchairfor the restof herlife. I, being
justshyofage3andtheoldestchild, was
catapultedintoa veryadultworldof problem
solving, compassion, team -work, andthe
consequenthoningofaskill -set that, for a
girl, wouldbefoundationalto my future, very
dimensional, professionallife.
uumei Lite i.uieLage, soLuspeaK, orawu„ 4...:
greatnoblecharacter, indomitablefortitude,
andaccomplishedin avastarrayofboth
personalandprofessionalachievements,
Iwasexceptionallyfortunate. Mycareer
has spanned decades when women were
tryingto definetheintersectof boththeir
domesticandprofessionalchallengesina
timeofexpandedopportunity. Educatedwith
an MBA, awards and acknowledgements for
manyendeavorsofexcellence, includinga
Governor's Commendation and a Presidential
Pin, as well as an American RedCross
HumanitarianAwardanda50-yearService
Pin, I am honored to be solicited for Women of
Influence, 2020!
Mycareermaturityfindsmecurrentlyon
severalboards, fromtheSiliconValleyRed
Cross Board, RedCross Service to the Armed
Forces and International Humanitarian Law
boards, the HawaiiRedCrossAdvisoryBoard,
Cityof GilroyArtsandCultureCommissioner,
to my serviceonthe NationalRedCross
TiffanyCircleteam; a nationalgroupof
powerfulwomengivingof theirtime, treasure,
and tale a significant cause
020 isbeckoningthoseof uswomenwith
career successes and business acumen to
engageinimpactfulphilanthropicefforts
which, at oursocietaljuncture, demandour
utmost. Let us move forward and make our
noblewomanhoodofgreatrelevancein these
times.
49. u u oo u o o u u o u o u u Y V u V u u u 1 o u• u• u M u o Y u J• u u u Y u u o o u u u u u, u u u o u u u u o u u u o u c o o• u o n o o u o Camille McCormack, Philanthropist
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Attachment: Arts & Culture Applicant - McCormack, Camille (Incumbent) (3624 : Commission Interviews)
4. CITYOFGILROY
CALPINEGILROYENERGYCENTER
BOBLYNCHFORD
GILROYHISTORICALSOCIETY
THE ALLSTATE FOUNDATION
GAVILANJOGGERS & STRIDERS
UNITED RENTALS
RONALDG. PRAYCOMPANY
ALLSTATEINSURANCE -THESILVAAGENCY
GILROY DOWNTOWNDEVELOPMENTCORP.
SOUTH VALLEY SYMPHONY
THEATER ANGELS ART LEAGUE
CHEVYSFRESHMEXRESTAURANT
YOUNG SIGN COMPANY
LAEL McCORMACK
THE McCORMACKGIRLS PARTNERSHIP
JOHN V. BERRI AUXILIARY 6309 VFW
FIRST NATIONAL BANK
GILROY VETERINARY HOSPITAL
HARING FAMILY FUNERAL HOME
COL. K.A. MIKE GILROY & PATRICIAGILROY
NEW DEVELOPMENTS. SHERRI STUART
SANTATERESA LANES, INC.
GAUB FAMILY TRUST
ANONYMOUS DONORS
In Celebrationof Gilroy's ast, Present and Future
In memory of Lael McCormack,
n angel of the arts
City of Gilroy Arts and Culture • mmtssron
Gilroy Public Ms Committee
May 17. 2003
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Attachment: Arts & Culture Applicant - McCormack, Camille (Incumbent) (3624 : Commission Interviews) Scot Smithee came out of
retirement to fill interim
role, stays on as new chief
By Marty Cheek
To the blare of bagpipes, Scot
Smithee was escorted by an honor
guard to the front of New Hope
Community Church. Standing before
peers, dignitaries and members of the
public, he raised his right hand and
swore he would " well and faithfully
discharge the duties" of the city' s
new police chief. Soon after, his wife
Brenda pinned his badge on him and
he gave her a quick kiss.
Smithee, 53, admitted at his Aug. 2
swearing - in ceremony he felt a strong
reluctance at the thought of leading the
Gilroy Police Department when the
opportunity came up. Two years ago,
he retired at the rank of captain after
29 years of public safety service for
the city. When he stepped in as interim
chief after Police Chief Denise Turner
retired Dec. 30, he believed it was only
a temporary job until a new department
leader was found.
YourQuality -of -LifeNews
The musical comedy of
ancient Rome, " A Funny
Thing Happened on the Way
to the Forum," is coming to
the Pintello Comedy Theater
for four weekendsstarting
Friday, Sept. 1.
COMING SOON!
e
Gilroy's new to Dcop vows commitment to the community
Photo courtesy Gilroy Police Department
New Gilroy Police Chief Scot Smithee, left, took part in the inaugural guidon ceremony at his swearing where retired police chief' s names areadded to adepartment flag.
The whole idea of coming back
out of retirement was just a foreign
concept to me," he told the crowd at
New Hope Community Church who
came to the ceremony. " I did not see
myself doing that. As people early on
in my interim process would talk to me
about the possibility, I would say, ' No,
P.oUceFoundation helps department acquire -neededequipmen Money raised also
helpsat -risk youth
programs in Gilroy
By Marty Cheek
The concepts of com-
munity policing play an
important role in ensuring
the daily safety of the more
than 55, 000 . residents of
Gilroy. A bedrock of that
public safety is the Gilroy
Police Foundation, a group
of local volunteers who
work to raise awareness
and community support for
the unmet needs of the Gil-
royPoliceDeViiiitent.
Since the nohprofit was
formed two years ago it
DAYS
PEACE
MUSIC
Fennyrecalls
attending
Woodstock
Photo courtesy Gilroy Police Foundation
Bonnie, one of the department' s mounted units, "
shows off a new saddle.
has contributed in many
ways to public safety in the
South Valley region. In its
first year, with the financial
generosity of garlic grower
Education
is key to a
strong local
economy
Don Christopher, the group
was able to acquire for the
GPD a new K- 9 police offi-
cer named Scottie, said GPF
volunteer Linda Wieck.
Chamber
readies for
pumpkincontest
What - Tee off
Youth
When - 10 a. m.
Friday, Sept. 22
Where - Eagle Ridge
Golf Club, 2951 Club
Dr.
Tickets - www.
teeoffforyouth. com
We also purchased Scot-
tie his bulletproof vest,"
she said.
Money raised by the
foundation added an ex-
tra night at the Late Night
Scot Smithee
Age- 53
Born: Redwood City
Married - Brenda, 16 years
Children - Katie, Holly, Ra-
chel, and Shannon
Education - Police Academy
at Gavilan College in 1985;
Bachelor of Science in Organi-
zational Behavior, University
of San Francisco in 1992;
Masterof Arts in Leadership
from Saint Mary's College
in 2004; State of California
Police Officer Standards and
Training Command College
not doing it. Retirement is great. My
wife and I are traveling and doing all
these great things.' And the ' No, no,
no' got to ` Well, I' ll think about it."'
As Gilroy' s top cop, Smithee now
leads a department of 66 sworn officers
and 40 professional staff running on a
25 million budget. City Administrator
See SMITHEE, Page 12
City needs better
process before
cutting down
heritage trees
My family has lived in Gilroy for sev-
eral generations, and I know firsthand that
our community has long valued its natural
beauty — in particular,
our heritage trees. But you
wouldn' t know it by the
city' s recent decision to
cut down 235 trees around
town without much in the
way of public input. The
recent public outcry about
the city council' s impulsive decision was
mostly about saving these trees. But it was
CamilleMcCormack
See FOUNDATION, Page 13
Nitit
Now is time
to prepare
your garden
for autumn
ECRWSSEDDM****
Postal Customer
Gilroy, CA 95020
See TREES, Page 14
PRSRT STD
USPOSTAGEPAIDGILROYCA
PERMIT# 321
3.1.a
Packet Pg. 24
Attachment: Arts & Culture Applicant - McCormack, Camille (Incumbent) (3624 : Commission Interviews) Gilroy
Life -
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Packet Pg. 25
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Packet Pg. 27
Attachment: Arts & Culture Applicant - McCormack, Camille (Incumbent) (3624 : Commission Interviews) MARCH 15, 2019 GILROY DISPATCH 13
ITIINI
ITCLrI III I LI I r
That' s all the time you might have
to safely escape a burning home.
Do you have a plan?
A homefire can strike anywhere, anytime. Firesnot only destroy homesand personal belongings, but they also cause serious injury and death. On a personal level, home fires are catastrophic. More people die in home fires each year than in many major natural disasters. Across the country, home fires account for most of the nearly 66, 000 disasters that the Red Cross responds to every year. Trained volunteers respond immediately to provide meals, shelter and support to those affected by fires. on average
7 people
die every day
from a home fire.
Help Solve America' s Biggest Disaster Threat ``
on average
32peoplesuffer
injuries as a resultof
homefires everyday. on
average6.
8 billioninproperty
damageoccurs every
year.'
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Packet Pg. 28
Attachment: Arts & Culture Applicant - McCormack, Camille (Incumbent) (3624 : Commission Interviews)
SOUND THEALARM
Salve 01 Life
Help us Sound the Alarm about fire safety.
Every day 7 people die in home fires. You can help change that.
The American Red Cross is teaming up with fire departments, volunteers, and partnersto SoundtheAlarmwith homefire safetyand smoke alarm installation events.
Go to SoundTheAlarm. org to learn how you can make a difference.
American
Red Cross
3.1.a
Packet Pg. 29
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3.1.a
Packet Pg. 30
Attachment: Arts & Culture Applicant - McCormack, Camille (Incumbent) (3624 : Commission Interviews)
City of Gilroy Application
for Board, Commission and Committee App
Board/ Committee/ Commission of Interest: Cu kGe-f+ J Name:
FY, GIAJk- P 41Soit) Phonenumber(s) /
email address*: OS- 7 to -
registeredvoterwithinthe City limits? Yes No PhysicalAddress*: - 116 g ME
for this appointment: Di ff-- VA- / Vi VRiU;
4 Cik lce- V List any service
to
the communityincludinganypriorappointments: 1' J tt 4 li_pc g c too( QXJCO21)., Pe, sz- aR, m c- E Caw v a+ Pc- 4. I l
T - e- ti, .K., +.w rt4 -e.. r- 4- o Whatareyourgoals
while servingon this Board/Commission/Committee?: o j WI ILO - e. c u / 4( l _/, Ie/acICm,Mms 1 U ) f raV Why
areyou themost
qualifiedto serveon this Board/ Commissipn/Committee?: i$ n, o 1s r9- r i,& - s-/ N / ,, 1 "Ad I . wc -
G o m' i euti `---, t/- i AII Commission, Board and
Committee
applicationsare a publicrecord Mail or emailyour application to: ShawnaFreels, City Clerk City of Gilroy 7351Rosanna Street, Gilroy, CA
95020shawna. freelsc ci. cilrov.ca.
us The Cityof Gilroyaccepts
applicationsat anytime and will keepthemon file for one year.
3.1.b
Packet Pg. 31
Attachment: Arts & Culture Applicant - Patterson, Frank (3624 : Commission Interviews)
City of Gilroy Board, Committee, and Commission Appointment | Alexandra Perdew
City of Gilroy Application
For Board, Committee, and Commission
Appointment
Date of Submission : 12/3/2021 6:23:00 PM
Name : Alexandra Perdew
Board / Commission / Committee of Interest : Arts & Culture Commission Are you a registered voter within the City
limits? : Yes
Physical Address : REDACTED
Phone Number : REDACTED
E-Mail Address : REDACTED
Alternate Phone Number : REDACTED
List your qualifications for this appointment:
Bachelor of Arts (Music, Anthropology) DePauw University Master of Music (Performance) Roosevelt University
Post Graduate (Music Performance/Education) USC
National Sales Manager and Director of Education and Events Salvi Harps, Inc 2006- 2015
Harp Lecturer Stanford University 2018-2019
NAMM Education Committee
Vice President American Harp Society Foundation 2012-2017 Chairman of the Anne Adams and Grandjany International Competitions 1997-2017 Committee Chair American Harp Society National Competition 1998-2003 Board member DePauw University Alumni Board (2015-2021) Other Roles have included: President of the Orange County Chapter of the American Harp Society, Vice President of the Orange County Chapter of the American Harp Society, Education Vice President Orange County Chapter of the American Harp Society, Board Member American Harp Society Bay Area Chapter Private Harp and Piano Teacher 1995-present
Professional Harpist Performance 1995- present (Salvi International Concert Artist) Charleston International Music Competition Teacher of the Month November 2021 Arpademia International Harp Competition Judge 2021-2022
List any service to the community including any prior appointments. 2017 Year President Las Madres of Gilroy (2020-2022)
What are you goals while serving on this Board/Commission/Committee? I would love to get local artists together to encourage free or affordable arts and cultural training for local children and adults. We could easily build a local arts scene
3.1.c
Packet Pg. 32
Attachment: Arts & Culture Applicant - Perdew, Alexandra (3624 : Commission Interviews)
City of Gilroy Board, Committee, and Commission Appointment | Alexandra Perdew
in Gilroy with already existing structures that would encourage artistic and academic growth as well as encouraging folk/international cultural expression. The world seems so huge, but when we look into the arts and the expression they create, we realize we aren't that different and we start to collaborate and recognize each other. I would like to bring more arts programming into Gilroy, including live concerts, and art/music/dance/ collaborations to encourage the growth of community connections from the inside out utilizing local businesses, the library, and local organizations so that all thrive together. I would love to see downtown full of artistic collaboration every weekend connecting everyone in Gilroy.
Why are you the most qualified to serve on this Board/Commission/Committee? I have a Masters degree in Music as well as Post Graduate work in the arts, over twenty years working internationally on competitions and running small international businesses, and over a decade working in Los Angeles where I successfully promoted the harp getting it in movies, in television shows, and featured on the Grammys. I also developed a free chamber music program in Anaheim and Los Angeles that is still alive today. I would love to get involved locally. I have been working nationally and internationally on many projects for a long time, but Gilroy is our home now, and I would love to put my efforts for literacy and expression in the arts into my local community where I believe they are the most needed.
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Packet Pg. 33
Attachment: Arts & Culture Applicant - Perdew, Alexandra (3624 : Commission Interviews)
City of Gilroy Board, Committee, and Commission Appointment | Carmine DePaulo
City of Gilroy Application
For Board, Committee, and Commission
Appointment
Date of Submission : 12/3/2021 10:19:35 AM
Name : Carmine DePaulo
Board / Commission / Committee of Interest : Arts & Culture Commission Are you a registered voter within the City
limits? : Yes
Physical Address : REDACTED
Phone Number : REDACTED
E-Mail Address : REDACTED
Alternate Phone Number : REDACTED
List your qualifications for this appointment:
CARMINE DEPAULO
THE ACTOR
I have performed in 5 feature films, 14 theatrical plays, and 38 short films.
I began my acting career at the age of 50 in Bloomington, IN. During a playwriting class, I decided to experience what actors undergo expressing lines created by writers. I performed the part of salesman George Aranow (movie role by Alan Arkin) in the David Mamet play “Glengarry Glen Ross†. Fascinated and energized by live theater, I pursued acting roles ever since.
I ventured into film acting at the age of 62 in Denver, CO portraying an Amish priest in the feature film, “My Names is Sam†. In between auditioning for feature films, I discovered the Colorado Film School and found an avenue for acting in student short films.
I thoroughly enjoy being behind the camera or up on a stage entertaining the audience by bringing a fictional character to “life†.
List any service to the community including any prior appointments.
1. Member of Board of Directors for non-profit (501 c 3) Spark Theater in Denver CO.
What are you goals while serving on this Board/Commission/Committee?
1. Engage the citizens of the city in Arts and Cultural activities.
2. Expand the film community for the city and nearby locations.
3. Help drive interest and involvement in theatrical productions.
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Packet Pg. 34
Attachment: Arts & Culture Applicant - DePaulo, Carmine (3624 : Commission Interviews)
City of Gilroy Board, Committee, and Commission Appointment | Carmine DePaulo
Why are you the most qualified to serve on this Board/Commission/Committee? My passion and experience in the Arts.
3.1.d
Packet Pg. 35
Attachment: Arts & Culture Applicant - DePaulo, Carmine (3624 : Commission Interviews)
City of Gilroy Board, Committee, and Commission Appointment | Jennifer Del Bono
City of Gilroy Application
For Board, Committee, and Commission
Appointment
Date of Submission : 11/17/2021 6:03:39 AM
Name : Jennifer Del Bono
Board / Commission / Committee of Interest : Library Commission Are you a registered voter within the City
limits? : Yes
Physical Address : REDACTED
Phone Number : REDACTED
E-Mail Address : REDACTED
Alternate Phone Number : REDACTED
List your qualifications for this appointment:
* 25 year educator
* Parent
* Responsible
*Community-minded/involved
List any service to the community including any prior appointments. * Mayor's Gang Task Force member
* South County Youth Task Force member
* Housing and Neighborhood Revitalization Committee
* Gilroy Sunrise Rotary Club member- past President (2020-21)
What are you goals while serving on this Board/Commission/Committee? My goal would be to further support health, equity, and possibility for all residents of Gilroy through library services.
Why are you the most qualified to serve on this Board/Commission/Committee? I believe that my desire to ensure that all residents of Gilroy are served through library services is a valuable perspective. My unique experience as an educator, resident, and service in the community provide me with a wholistic view of Gilroy that will support the continued growth of the Gilroy library as a community asset.
3.1.e
Packet Pg. 36
Attachment: Library Commission Applicant - Del Bono, Jennifer (3624 : Commission Interviews)
City of Gilroy Board, Committee, and Commission Appointment | Saeid Nooshabadi
City of Gilroy Application
For Board, Committee, and Commission
Appointment
Date of Submission : 12/11/2021 12:25:41 PM
Name : Saeid Nooshabadi
Board / Commission / Committee of Interest : Library Bond Oversight Committee Are you a registered voter within the City
limits? : Yes
Physical Address : REDACTED
Phone Number : REDACTED
E-Mail Address : REDACTED
Alternate Phone Number : REDACTED
List your qualifications for this appointment:
I have 30 years of academic experience as university faculty around the world, with the latest a senior Professor at Michigan Tech. In my role I have served as departmental liaison, serving as member of the university library committee.
List any service to the community including any prior appointments.
Organizing public meetings for the city library on various topics.
What are you goals while serving on this Board/Commission/Committee? In a country riven by racial, ethnic, political, and socioeconomic divides, libraries are the only places that welcome everyone. My goal is to for the public library to expand on range of the services that it provides to the community, such as run story hour in the morning, assist with a research project at lunchtime, in the afternoon conduct a seminar on gardening, and if need be administer life-saving medical aid to a patron who’s overdosed on the premises.
Why are you the most qualified to serve on this Board/Commission/Committee? I am a passionate believer in the public library, committed to the mission of the public library to promote inclusivity, and a big believer in the library's responsibility to adapt to changing times with disruptive technological change, to meet a vast range of social needs.
My previous role in the university libraries, I have participated in the changing role of the universities from just books on the shelves, to providing a range of services to the community.
3.1.f
Packet Pg. 37
Attachment: Library Commission Applicant - Nooshabadi, Saeid (3624 : Commission Interviews)
City of Gilroy Board, Committee, and Commission Appointment | Saeid Nooshabadi
3.1.f
Packet Pg. 38
Attachment: Library Commission Applicant - Nooshabadi, Saeid (3624 : Commission Interviews) 1/18/ 22, 10: 43 AM https:// www. cityofgilroy. org/ Admin/ FormCenter/ Submissions/ Print/ 2426 https:// www. cityofgilroy. org/ Admin/ FormCenter/ Submissions/ Print/ 2426 1/2 Print
Official City Seal web City of Gilroy Application for Board, Commission, and Committee
Appointment
All Commission, Board and Committee applications are a public record.
First Name* Last Name*
Board/ Commission/ Committee of Interest*
Select the Board/ Committee/ Commission for which you wish to apply Yes
No
Are you a registered voter within the City limits?*
Open Government Commission
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Packet Pg. 39
Attachment: Open Government Commission Applicant - Enriquez, Tia Marrie (3624 : Commission Interviews) 1/18/ 22, 10: 43 AM https:// www. cityofgilroy. org/ Admin/ FormCenter/ Submissions/ Print/ 2426 https:// www. cityofgilroy. org/ Admin/ FormCenter/ Submissions/ Print/ 2426 2/2 List your qualifications for this appointment:
List any service to the community including any prior appointments.
What are you goals while serving on this Board/ Commission/ Committee? Why are you the most qualified to serve on this Board/ Commission/ Committee? I am a natural born advocate. I have a keen sense of systemic approaches. I have a broad sense of knowledge in a variety of governmental agencies. I have strong leadership ability. I am driven by a passion to contribute to the community and finding a place that allows me to be apart of improving information quality as well as being a voice for others in the community.
I have not had any prior appointments. I have serviced the community in personal projects such as: feeding the homeless during the holidays, volunteered to cater events for local police associations, volunteered at my children' s school' s, volunteered at nursing homes, wrote to soldiers away on active duty, put together care packages, assisted with fundraising, and various other projects for the community.
My goal while serving on this board/ commission/ committee is to ensure effective public oversight, upholding the highest level of integrity. Making connections with other actively involved members of the community. Honorable proving to be a strong asset to the community as a whole, and gaining the experience that will qualify me for future service positions.
I am the most qualified to serve on this board because I am passion driven to expand my horizons, integrate with the larger community, and am determined to influence local government and policies, connect with others who have a similar appreciation for directly impacting positive changes in the community. I am a fearless, stand up woman who is has a burning desire to find outside the box approaches that still cater to customarily " systemic approaches" but that will balance equality as a whole in our community. Gilroy is definitely in need of some new faces and I will put my best foot forward every step of the way.
3.1.g
Packet Pg. 40
Attachment: Open Government Commission Applicant - Enriquez, Tia Marrie (3624 : Commission Interviews)
City of Gilroy Board, Committee, and Commission Appointment | Akur Varadarajan
City of Gilroy Application
For Board, Committee, and Commission
Appointment
Date of Submission : 12/3/2021 8:52:14 AM
Name : Akur Varadarajan
Board / Commission / Committee of Interest : Open Government Commission Are you a registered voter within the City
limits? : Yes
Physical Address : REDACTED
Phone Number : REDACTED
E-Mail Address : REDACTED
Alternate Phone Number : REDACTED
List your qualifications for this appointment:
Professional Experience: Includes 24 years of experience in public school management with wide-ranging
responsibilities: community engagement, culture and climate of the organization, human resource
administration with emphasis on employee relations and contract negotiations, work related to professional
development, oversight of budget, finance, facilities operations, school food services, school transportation, procurement and public bidding and contract functions.
Facilities planning and Construction Management: Administered District’s facilities planning from
issuance of bonds to construction management: Planned, organized and directed the school facilities and
maintenance department. Oversee facilities compliance issues with regards to State Allocation Board,
Office of Public School Construction and Division of State Architect programs and regulations regarding
eligibility and funding for school construction and modernization.
List any service to the community including any prior appointments.
What are you goals while serving on this Board/Commission/Committee? I am interested in contributing to the community. I believe I can contribute effectively to the Open Government Commission based on my background and experience.
3.1.h
Packet Pg. 41
Attachment: Open Government Commission Applicant - Varadarajan, Akur (3624 : Commission Interviews)
City of Gilroy Board, Committee, and Commission Appointment | Akur Varadarajan
Why are you the most qualified to serve on this Board/Commission/Committee? My work experience has been in the public sector. I have served in different positions in school administration and as a Co-Superintendent and Chief Business Officer worked with City administration. I believe my qualifications makes me an ideal candidate to serve in the Open Government Commission.
3.1.h
Packet Pg. 42
Attachment: Open Government Commission Applicant - Varadarajan, Akur (3624 : Commission Interviews)
City of Gilroy Board, Committee, and Commission Appointment | Eric Arredondo
City of Gilroy Application
For Board, Committee, and Commission
Appointment
Date of Submission : 12/7/2021 7:15:11 AM
Name : Eric Arredondo
Board / Commission / Committee of Interest : Parks & Recreation Commission Are you a registered voter within the City
limits? : Yes
Physical Address : REDACTED
Phone Number : REDACTED
E-Mail Address : REDACTED
Alternate Phone Number : REDACTED
List your qualifications for this appointment:
I feel that my jobs that I have had over the years has taught me many things that could contribute to the board. I have an open mind and diversified view on matters. Gilroy has been a very big part of my life.
List any service to the community including any prior appointments.
My previous job was a sales representative for a company in Gilroy, and I got to meet many people over the years. I did a lot of B2B calls, and meetings with potential clients and existing customers.
What are you goals while serving on this Board/Commission/Committee? My goals are to be more involved in the operations of the city, and contribute as I see fit...I am looking for the opportunity to meet board members and city officials, and be a name in this city of Gilroy
Why are you the most qualified to serve on this Board/Commission/Committee? I may not be the most qualified candidate for this position, since I have never served on a board since my high school days, but with my open mind, and my life's experiences being a husband, father, and grandfather has taught me so much. I moved back to Gilroy about 6 years ago from Texas, but this town is where I lived when I was a kid, and where I came to every year for vacation to see family members, and also where my grandparents lived here since 1969, on a cactus farm off Hecker pass
3.1.i
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Attachment: Parks & Recreation Applicant - Arredondo, Eric (3624 : Commission Interviews)
City of Gilroy Board, Committee, and Commission Appointment | Marissa Haro
City of Gilroy Application
For Board, Committee, and Commission
Appointment
Date of Submission : 11/22/2021 9:19:02 PM
Name : Marissa Haro
Board / Commission / Committee of Interest : Personnel Commission Are you a registered voter within the City
limits? : Yes
Physical Address : REDACTED
Phone Number : REDACTED
E-Mail Address : REDACTED
Alternate Phone Number : REDACTED
List your qualifications for this appointment:
My qualifications for this appointment include my education, training, and public sector work experience.
Education:
Master of Public Administration, San Jose State University, 2017 Bachelor of Science, Criminology, California State University, Fresno, 2015
Training:
California Department of Human Resources – various topics Federal Emergency Management Agency – various topics
Human Resources Certification Institute – Associate Professional in Human Resources (aPHR), in progress
Public Sector Work Experience:
Management Analyst, Personnel Administration Unit, Santa Clara County Probation Department
Human Resources Technician, Gavilan Joint Community College Associate Governmental Program Analyst, California Governor’s Office of Emergency Services
Director of Communications, Master of Public Administration Student Association Violence Prevention Intern, City of Gilroy
List any service to the community including any prior appointments.
Violence Prevention Intern, City of Gilroy/South County Youth Task Force, 2016 – 2017
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Packet Pg. 44
Attachment: Personnel Commission Applicant - Haro, Marissa (3624 : Commission Interviews)
City of Gilroy Board, Committee, and Commission Appointment | Marissa Haro
Duties performed: Gathered and analyzed input from community members during community forums to include in the comprehensive violence prevention regional plan.
Used various evaluation methods such as site visits, focus groups, and surveys to review, analyze and evaluate California Gang Reduction, Intervention, and Prevention (CalGRIP) funded programs. Made recommendations to management that addressed the gaps identified during the evaluation process. Assisted in implementing recommendations by providing support to programs when developing program handbooks that outline guidelines, policies and procedures for each site. Served as a liaison between South County Youth Task Force partnership agencies and community to ensure community members were familiar with resources and services. Organized community events to help establish a positive relationship between police and the community. Participated in collaborative meetings with the policy and technical teams to address and resolve issues, gather information and promote task force goals and objectives. Assisted with managing the grant budget by monitoring the expenditures and organizing/tracking receipts according to various categories set by the state grant requirements. Organized and complied data to be included in the grant progress reports. Wrote grant applications.
What are you goals while serving on this Board/Commission/Committee? If I am given the opportunity to serve a four-year term on the Personnel Commission, I would like to accomplish the following goals:
1. Add value to the five-member commission by sharing my public sector personnel/human resources experience.
2. Treat city employees fairly while complying with all city rules and regulations.
3. Help ensure that the City of Gilroy continues to provide quality service to its residents by demonstrating and maintaining a high degree of integrity and good judgment when making recommendations that are in best interest of the city and employees.
4. Give back to my community that I love.
Why are you the most qualified to serve on this Board/Commission/Committee? My professional human resources experience, education, and training make me the most qualified candidate to serve on the Personnel Commission.
As a Management Analyst with the Santa Clara County Probation Personnel Administration Unit, I demonstrate excellent communication skills, my abilities to multi- task, take direction, and show initiative. I work with employees and the public to explain and interpret Human Resources policies, procedures, practices, and collective bargaining agreements. I gather data, conduct analytical studies, and prepare reports outlining analysis recommendations related to human resources management issues.
I analyze programmatic practices and procedures and makes recommendations for
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Attachment: Personnel Commission Applicant - Haro, Marissa (3624 : Commission Interviews)
City of Gilroy Board, Committee, and Commission Appointment | Marissa Haro
organizational, operational, policy, and procedural improvements. I act a departmental resource in the area of personnel/human resources management.
Additionally, during my time as a Human Resources Technician with Gavilan Joint Community College District, I analyzed and revised the Human Resources policies and procedures to ensure compliance with State and Federal regulations. I processed complaints by conducting initial intakes interviews. As the district’s recruitment lead, I coordinated the selection of faculty, administrative, supervisory and classified employees; assembled screening and interview committees, facilitated equal employment opportunity training, and communicated with candidates throughout the recruitment process.
In 2017, I obtained my Master of Public Administration degree. Intensive course work in the Master of Public Administration program taught me how to use critical thinking techniques when analyzing how public organizations comply with federal, state and local laws, codes and regulations. Additionally, the Public Personnel Administration Course allowed me to gain a deeper understanding of the methods and problems of job analysis, compensation, staffing, recruitment, equal employment opportunity, evaluation, training and union relations.
My advanced educational background has also helped me understand the importance of cultural competency and the value of diversity, which is a valuable qualification for all City of Gilroy commission members. My experience as an Associate Governmental Program Analyst with the California Governor’s Office of Emergency Services providing oversight, guidance and technical assistance in the development, implementation and maintenance of grant projects, while ensuring compliance with state and federal legislation demonstrating my stellar customer service skills. Lastly, during my time as the Director of Communications of the San Jose State University Master of Public Administration Student Association, I successfully completed projects using exemplary interpersonal skills crucial to the role of Personnel Commission member.
In order to effectively administer and manage services and programs, it is important for the City of Gilroy Personnel Commission members to demonstrate and maintain a high degree of integrity and good judgment. I am committed to helping the Personnel Commission achieve its goals by exhibiting the aforementioned qualities and positively contributing to the partnerships with other departments, outside agencies and the general public to provide quality service. As a life-long Gilroy resident, I am eager to serve the City of Gilroy as a member of the Personnel Commission because it will allow me to expand my professional experience while giving back to the community, which I am proudly a part of.
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Attachment: Personnel Commission Applicant - Haro, Marissa (3624 : Commission Interviews)
City of Gilroy Board, Committee, and Commission Appointment | Marissa Haro
I look forward to the opportunity to discuss my qualifications in detail during an interview.
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Attachment: Personnel Commission Applicant - Haro, Marissa (3624 : Commission Interviews)
City of Gilroy Board, Committee, and Commission Appointment | Connor Olenberger
City of Gilroy Application
For Board, Committee, and Commission
Appointment
Date of Submission : 11/10/2021 8:21:11 PM
Name : Connor Olenberger
Board / Commission / Committee of Interest : Personnel Commission Are you a registered voter within the City
limits? : No
Physical Address : REDACTED
Phone Number : REDACTED
E-Mail Address : REDACTED
Alternate Phone Number : REDACTED
List your qualifications for this appointment:
-Human Resource professional with 8 years industry experience in government and human services agencies
-Professional in Human Resources California (PHRca)
-B.S. Business Administration with Human Resource concentration from San Jose State University
-Society of Human Resource Management (SHRM) member
-Responsible for establishing, reviewing and updating employee job descriptions and classifications for agencies
-Ensures legal compliance when conducting internal investigations for agencies -Maintains professional and technical knowledge; closely monitoring changes in rules and regulations and implementing applicable Human Resource federal and state requirements for agencies.
List any service to the community including any prior appointments. -Lead company annual food drive and helped contribute to Community Solutions
What are you goals while serving on this Board/Commission/Committee? -Use my knowledge, skills, and expertise to better the City of Gilroy's policies and procedures
-Bring fresh and new ideas to the Commission
-Give back to the City of Gilroy
-Be a collaborative member of the Commission
-Celebrate diversity
-Maintain a community with a spice for life
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Attachment: Personnel Commission Applicant - Olenberger, Connor (3624 : Commission Interviews)
City of Gilroy Board, Committee, and Commission Appointment | Connor Olenberger
Why are you the most qualified to serve on this Board/Commission/Committee? I am the most qualified to serve on this Commission because of my Human Resource Management experience. I am very passionate about this field and would make a positive difference for my community. My calm demeanor and even-temperament would make me an asset to the Commission.
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Attachment: Personnel Commission Applicant - Olenberger, Connor (3624 : Commission Interviews)
City of Gilroy Board, Committee, and Commission Appointment | Sergio Patterson
City of Gilroy Application
For Board, Committee, and Commission
Appointment
Date of Submission : 12/12/2021 9:06:08 AM
Name : Sergio Patterson
Board / Commission / Committee of Interest : Personnel Commission Are you a registered voter within the City
limits? : Yes
Physical Address : REDACTED
Phone Number : REDACTED
E-Mail Address : REDACTED
Alternate Phone Number : REDACTED
List your qualifications for this appointment:
I have over 10 years of experience working in Silicon Valley having worked at companies like; Google, Amazon, Facebook and I'm currently a Senior Program Manager at LinkedIn. At each of these companies drove projects and programs focused on improving the customer experience (listening to our customers needs) and or helping launch brand new products. Having spent several years helping build teams and create strong cultures, I've also developed a passion for helping teams create better job descriptions and given that I work at LinkedIn, I have a deep understanding of how to create job descriptions that will resonate with your target audience.
I'm passionate about connecting people with opportunity and it's a big reason why I work at LinkedIn. I've been apart of several hiring panels within major tech companies and have experience reviewing resumes, job descriptions and personnel issues that impact the company. On the side, I have a project where I help job seekers strategize during the job search, understand job postings and how to edit their resume and also provide interview coaching. I have a deep understanding of how to create quality job postings given my time in silicon valley, interviewing and creating job postings for new opportunities.
I believe that my experience at some of the biggest tech companies in the world, track record of leading complex projects and the amount of job descriptions I've created, reviewed has me well suited to take on this position. Additionally, I have a strong ability to stay neutral and not let my emotions impact any key decisions that need to be made regarding personnel matters that impact the organization etc. My ability to stay calm under pressure has allowed me to thrive at some of the most competitive companies in the world.
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Attachment: Personnel Commission Applicant - Patterson, Sergio (3624 : Commission Interviews)
City of Gilroy Board, Committee, and Commission Appointment | Sergio Patterson
List any service to the community including any prior appointments. -Youth Soccer Coach
-Year Up program mentor (helped various high school students from low income backgrounds navigate and make it into tech companies. Served as mentor for these students and helped them secure a number of positions.
-Spent time helping the homeless as apart of a weekend work to give out clothing, food and other items in the San Jose area
What are you goals while serving on this Board/Commission/Committee?
1. Bring my years of experience in Silicon Valley at Big Tech companies and strong understanding of the job market, job postings to the City of Gilroy. I'm here to serve and help in any way that I can.
2. I've spent so much of my life dedicating time to helping launch new products, services and programs at major companies in Silicon Valley. I've had a huge desire to give back to the community I'm from (Gilroy) and bring the skills I've learned to help impact this community. I have two young children and I see this as a first step for me as long-term I would love to get into a more permanent position that could impact the community even more.
Why are you the most qualified to serve on this Board/Commission/Committee? I believe that my experience, passion and dedication to helping connect people with opportunities is what makes me most qualified to serve on the Board. With my over 10 years of experience in Big Tech and combine that with my work on the side helping job seekers better understand how to land new jobs (reviewing resumes, job postings, interview coaching and providing critical feedback) sets me up to thrive in this Commission.
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Attachment: Personnel Commission Applicant - Patterson, Sergio (3624 : Commission Interviews)
City of Gilroy Board, Committee, and Commission Appointment | Annie Tomasello
City of Gilroy Application
For Board, Committee, and Commission
Appointment
Date of Submission : 12/9/2021 3:23:55 PM
Name : Annie Tomasello
Board / Commission / Committee of Interest : Personnel Commission Are you a registered voter within the City
limits? : Yes
Physical Address : REDACTED
Phone Number : REDACTED
E-Mail Address : REDACTED
Alternate Phone Number : REDACTED
List your qualifications for this appointment:
Have served on the commission for 4 terms
List any service to the community including any prior appointments.
Serve on the Gilroy Latino Fund
Served on the Gilroy Foundation Board, the St Louise Foundation Board,.
What are you goals while serving on this Board/Commission/Committee? To continue to serve the city of Gilroy
Why are you the most qualified to serve on this Board/Commission/Committee? My prior and current terms on the commission.
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Attachment: Personnel Commission Applicant - Tomasello, Annie (3624 : Commission Interviews)
City of Gilroy Board, Committee, and Commission Appointment | Paolo Basilio
City of Gilroy Application
For Board, Committee, and Commission
Appointment
Date of Submission : 11/12/2021 11:31:35 AM
Name : Paolo Basilio
Board / Commission / Committee of Interest : Planning Commission Are you a registered voter within the City
limits? : Yes
Physical Address : REDACTED
Phone Number : REDACTED
E-Mail Address : REDACTED
Alternate Phone Number : REDACTED
List your qualifications for this appointment:
I Come from a long line of construction workers, I believe my Italian nationality and active membership in the community can take a fresh perspective on zoning and how we can go about modernizing infrastructure while keeping costs low.
List any service to the community including any prior appointments.
I have been an active member of the Gilroy gators swim team since 2013. As well as a coach, i work well with all manners of folks in the community.
What are you goals while serving on this Board/Commission/Committee? I would like to prevent Gilroy from becoming an urban sprawl like San Jose. New zones should be weighed to reflect not only the future fiscal and economic development of gilroy, but the lifestyle of its members. Taking a more fluid approach on analyzing traffic flow with more computer assisted models, will prevent us from having to heavily invest in infrastructure repairs and changes in the future.
Why are you the most qualified to serve on this Board/Commission/Committee? I am looking to live in Gilroy for at least the next 30 years, the impact we make today is not only going to affect me, but my children as well. I will take all decisions heavily, with only the interest of its current and future citizens in mind.
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Attachment: Planning Commission Applicant - Basilio, Paolo (3624 : Commission Interviews)
City of Gilroy Board, Committee, and Commission Appointment | Zafar Khan
City of Gilroy Application
For Board, Committee, and Commission
Appointment
Date of Submission : 11/12/2021 2:32:01 PM
Name : Zafar Khan
Board / Commission / Committee of Interest : Planning Commission Are you a registered voter within the City
limits? : Yes
Physical Address : REDACTED
Phone Number : REDACTED
E-Mail Address : REDACTED
Alternate Phone Number : REDACTED
List your qualifications for this appointment:
I am an experienced engineer and a project manager with over 20 years of project planning and delivery experience in the Silicon Valley. I hope to leverage my engineering, planning, and delivery experience to help the planning commission of Gilroy.
List any service to the community including any prior appointments.
I have served various charity organizations in Santa Clara Country helping plan and organize budgets, programs, and future roadmaps.
What are you goals while serving on this Board/Commission/Committee? I would like to help plan and manage Gilroy growth as it transitions from an Agro town to a more mixed Agro & Tech town, The role of the planning commission, in my mind, would be manage this transition in a balanced and organized way. We would want to encourage growth but also preserve nature, open spaces, and enhance quality of like for Gilroy citizens. There are major challenges ahead include climate change, environment, water, transportation, and healthcare that all need proactive planning.
Why are you the most qualified to serve on this Board/Commission/Committee? I have significant project planning and delivery experience and can help the commission develop well rounded goals and planning roadmaps. I have also lived across different cities in Santa Clara and Alameda Counties and have seen what initiatives worked and which ones did not. I can bring these experiences, together with my management experiences to help the planning commission. Finally, I am an engineer be training and can provide the needed detailed oriented, analytic, approach to planning at the commission.
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Attachment: Planning Commission Applicant - Khan, Zafar (3624 : Commission Interviews)
City of Gilroy Board, Committee, and Commission Appointment | Annedore Kushner
City of Gilroy Application
For Board, Committee, and Commission
Appointment
Date of Submission : 12/17/2021 4:50:20 PM
Name : Annedore Kushner
Board / Commission / Committee of Interest : Planning Commission Are you a registered voter within the City
limits? : Yes
Physical Address : REDACTED
Phone Number : REDACTED
E-Mail Address : REDACTED
Alternate Phone Number : REDACTED
List your qualifications for this appointment:
I work full-time as a Program Manager for a Cyber Security company and as such, spend a lot of time listening, analyzing information, reviewing statements of work and other contracts. Once I have assembled all relevant information and synthesized it to the point of being able to form an informed opinion, I then have to communicate the findings and advocate for a given position or decision. These well-honed skills would serve me well in the Planning Commissioner role.
List any service to the community including any prior appointments.
Before I moved to Gilroy in late 2016, I lived in Cupertino for the previous 23 years.
My house was in a typical residential neighborhood and since I started the tradition of getting together with my neighbors for Sunday pizza or BBQ, it was a natural extension to become a Neighborhood Block Leader. This is a program run by the City of Cupertino, which engages leaders in the community to speak on behalf of neighbors and bring City information back to the residents. As a volunteer for the City, I also got involved with a community group and was active with various functions.
What are you goals while serving on this Board/Commission/Committee? My goals are centered around protecting the community, the environment, contributing my ideas about revitalizing the City of Gilroy downtown and other areas that have the potential to become great business centers if we can make them attractive. This protection of the community will encompass observing all applicable laws and standards and helping the Planning Commission communicate the rules and regulations that apply, with the ultimate goal of better serving the City Council in its mission to represent the residents, businesses and visitors.
Why are you the most qualified to serve on this Board/Commission/Committee?
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Attachment: Planning Commission Applicant - Kushner, Annedore (3624 : Commission Interviews)
City of Gilroy Board, Committee, and Commission Appointment | Annedore Kushner
I would not claim to be the “most†qualified candidate to be on the Planning Commission, but I’m certainly well qualified to serve on it. I bring logic, pragmatism, and excellent organizational skills to the table. I am quite capable of forming an informed opinion after doing the requisite research and gathering information and being open to a wide variety of viewpoints from applicants and community stakeholders. Most important of all, I have common sense and know how to apply it and then verbalize my thinking process.
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Attachment: Planning Commission Applicant - Kushner, Annedore (3624 : Commission Interviews)
City of Gilroy Board, Committee, and Commission Appointment | Adriana Leongardt
City of Gilroy Application
For Board, Committee, and Commission
Appointment
Date of Submission : 12/17/2021 1:13:16 PM
Name : Adriana Leongardt
Board / Commission / Committee of Interest : Planning Commission Are you a registered voter within the City
limits? : Yes
Physical Address : REDACTED
Phone Number : REDACTED
E-Mail Address : REDACTED
Alternate Phone Number : REDACTED
List your qualifications for this appointment:
Over twelve years experience in the construction field that includes planning, and execution
B.S in Business with a focus on logistics and management (Enterprise and Resource Management)
MBA in Project management
PMP (Project Management Professional) certificate
Fluent in English, Spanish, and Portuguese
Strong engagement with the community and an active member
Here is my LinkedIn profile for more info:
https://www.linkedin.com/in/adrianatonileongardt/
List any service to the community including any prior appointments.
I am a self-starter who tries to create a bond between community members. For example, My 3 Years old son and I placed pinwheels in every home at the Laurel Dr., Benassi, Holly court, and Amber court during lockdown to lift the spirits for those walking by.
My neighbors and I planted some native plants and spread out some rocks at the sign of the levee at Uvas Park Dr. This is a personal project, where I provided most of the resources to beautify the levee's entrance, I changed the dog water container to a stainless steel one, and at least once I month, I clean the water fountain and dog bowl with alcohol; this is still an ongoing project!
My neighbors and I created a community garden at a resident's yard (all at my cost), so we all could share the joy of seeing the garden grow and collect veggies from it, among many other things.
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Attachment: Planning Commission Applicant - Leongardt, Adriana (3624 : Commission Interviews)
City of Gilroy Board, Committee, and Commission Appointment | Adriana Leongardt
What are you goals while serving on this Board/Commission/Committee? My goal for this role is to help all of us live in a better place with pride by extending the love, building joy, dignity and creating a solid bond among community members.
For that, I will bring my knowledge in construction, planning, risk mitigation, data analysis, resources control, and management to optimize resources and reach our goals efficiently.
Why are you the most qualified to serve on this Board/Commission/Committee? This role requires a person who can be the whole package; that is why I am the most qualified candidate because I have the experience, skills, certifications, communication, common sense, and friendly nature.
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Attachment: Planning Commission Applicant - Leongardt, Adriana (3624 : Commission Interviews)
City of Gilroy Board, Committee, and Commission Appointment | David Matuszak
City of Gilroy Application
For Board, Committee, and Commission
Appointment
Date of Submission : 12/12/2021 9:59:41 AM
Name : David Matuszak
Board / Commission / Committee of Interest : Historic Heritage Committee Are you a registered voter within the City
limits? : Yes
Physical Address : REDACTED
Phone Number : REDACTED
E-Mail Address : REDACTED
Alternate Phone Number : REDACTED
List your qualifications for this appointment:
Current member and chair. Applying for a second term. Have lived in Gilroy over 20 years. Own two properties with Mills Act contracts. One of them was the first one in early 2000's. Member of Gilroy Historical Society and on board of directors. Chair of Architectural Awards Committee.
List any service to the community including any prior appointments.
Member of Chamber of Commerce Board of Directors for 9 years.. Member of Gilroy After Hours Rotary, Board Secretary for 3 years.
What are you goals while serving on this Board/Commission/Committee? Help ensure that the Historic Assets of Gilroy are well preserved.
Why are you the most qualified to serve on this Board/Commission/Committee? Experience and training. Was a Senior Examiner for the National Malcolm Baldrige Quality Imrpiovement Award and California Association for Performance Improvement.
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Attachment: Planning Commission Applicant - Matuszak, David (3624 : Commission Interviews)
City of Gilroy Board, Committee, and Commission Appointment | Steven Olesen
City of Gilroy Application
For Board, Committee, and Commission
Appointment
Date of Submission : 12/7/2021 1:27:16 PM
Name : Steven Olesen
Board / Commission / Committee of Interest : Planning Commission Are you a registered voter within the City
limits? : Yes
Physical Address : REDACTED
Phone Number : REDACTED
E-Mail Address : REDACTED
Alternate Phone Number : REDACTED
List your qualifications for this appointment:
During my career I have had the opportunity to develop a wide range of skills which can translate to service on the Planning Commission. These skills include:
• 20+ years of campus planning and investment within the San Jose State University community
• Ability to consider different views from a diverse population and provide guidance and direction
• Active listening skills with the ability to make quick decisions • 20+ years of annual budget preparation experience and presentation • 15+ years of third-party partner quarterly review and annual audit experience • 5+ years serving on campus Sustainability Board
• Project administration for all new construction and tenant improvement projects within Spartan Shops, Inc @ SJSU
• Solid understanding of hospitality industry and best practices • Detailed oriented
List any service to the community including any prior appointments. no previous service to the community
What are you goals while serving on this Board/Commission/Committee? My goals while serving on the Planning Commission is to significantly contribute to my community by harnessing my experience as a global thinking, analytical, and objective resident while providing and opportunity for spirited debate in an advisory role to the City Council.
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Attachment: Planning Commission Applicant - Olesen, Steven (3624 : Commission Interviews)
City of Gilroy Board, Committee, and Commission Appointment | Steven Olesen
Why are you the most qualified to serve on this Board/Commission/Committee? I believe I am the most qualified to serve on the Planning Commission for the City of Gilroy given a number of transferrable skills acquired over my decades of leadership at San Jose State University:
• Strong sense of community
• Demonstrated long term planning ability in a complex environment • Decades of leadership experience within campus development scene, project management
• Work ethic, ability to prioritize those items most pressing and most impactful • Demonstrated ability to collaborate with wide range of subject matter experts and provide global analysis
• Significant experience with RFP creation, response analysis and negotiation in a government setting
• Active listening skills
• Demonstrated ability to resolve complex issues with many competing interests from diverse group of stakeholders
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Attachment: Planning Commission Applicant - Olesen, Steven (3624 : Commission Interviews)
City of Gilroy Board, Committee, and Commission Appointment | Andrew Ridley
City of Gilroy Application
For Board, Committee, and Commission
Appointment
Date of Submission : 12/17/2021 4:08:06 PM
Name : Andrew Ridley
Board / Commission / Committee of Interest : Planning Commission Are you a registered voter within the City
limits? : Yes
Physical Address : REDACTED
Phone Number : REDACTED
E-Mail Address : REDACTED
Alternate Phone Number : REDACTED
List your qualifications for this appointment:
I have served as a Planning Commissioner for the City of Gilroy from January to December 2021. All that I brought into that position, and the invaluable experience of serving on the commission over the past year has prepared and qualified me to continue serving on the commission.
All matters coming before the commission throughout the year received my thorough review and due diligence. With genuine interest to know the scope and impact of the items being voted on, and what they meant for Gilroy, I attended each meeting knowing I prepared the way I’d expect any other commissioner to.
Mayor Blankley and Councilmember Hilton are witnesses to my qualifications per my involvement and genuine care with which I held the role of planning commissioner.
Regarding my vocational experience, please see here below:
I have been working in the transportation demand management (TDM) field in the Bay Area for ten years, and currently serve as the Chief Operating Officer at ALTRANS TMA, Inc., based in San Jose, CA. My work has provided opportunity to work extensively on the municipal level in Mountain View, Palo Alto, Milpitas, and South San Francisco on a variety of public-facing transportation initiatives. Beyond the planning portion of the mentioned work, I also served an integral role in the implementation and management of programs such as the city-wide Mountain View Community Shuttle.
A normal part of the work I oversee is a result of our clients’ development and planning process, such as CEQA requirements, environmental impact reports and their mitigation measures, entitlements, and conditions of approval. In addition to a balanced view on planning in general, I am bringing to the Gilroy Planning
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Attachment: Planning Commission Applicant - Ridley, Andrew (3624 : Commission Interviews)
City of Gilroy Board, Committee, and Commission Appointment | Andrew Ridley
Commission an experienced and thoughtful perspective on the ever-relevant topic of planning for transportation and transit.
List any service to the community including any prior appointments.
Planning Commissioner, City of Gilroy (Jan-Dec 2021)
What are you goals while serving on this Board/Commission/Committee? One goal is to personally be an asset in guiding and shaping our community. By virtue of being a resident of Gilroy, and since I am willing and able to serve, I believe it is right and important that I do so. Gilroy is my home, along with my wife and four children, and I’m committed to working toward Gilroy becoming the best it can be.
It is inevitable that Gilroy will grow, and I believe most residents want all that growth brings, while still preserving the beauty and small town feel of our city. I hope to strike that balance, to the extent this role allows me to do so.
Why are you the most qualified to serve on this Board/Commission/Committee? My vocational experience in Transportation Demand Management will add a unique and important facet to the makeup of the Planning Commission. Often, after my firm consults for a client, we are called on to implement and manage the course we laid out for the client. This has taught me that it is not enough to create policy and plans on paper, but to create workable, sustainable plans that I would be able to successfully carry out if called upon to do the work.
Having worked across every level of organizations, with on-the-ground staff to real estate developers to City Administrators, I have a breadth and depth of experience that will serve me well as planning commissioner.
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Attachment: Planning Commission Applicant - Ridley, Andrew (3624 : Commission Interviews)
City of Gilroy Board, Committee, and Commission Appointment | Monica Valdez
City of Gilroy Application
For Board, Committee, and Commission
Appointment
Date of Submission : 12/1/2021 2:50:08 PM
Name : Monica Valdez
Board / Commission / Committee of Interest : Planning Commission Are you a registered voter within the City
limits? : Yes
Physical Address : REDACTED
Phone Number : REDACTED
E-Mail Address : REDACTED
Alternate Phone Number : REDACTED
List your qualifications for this appointment:
Construction Management Degree from Cal Poly, SLO
11 years working for a general contractor
List any service to the community including any prior appointments.
I have applied to the Gilroy Leadership program for 2022.
I am also researching other groups to join now that I have moved back to town.
What are you goals while serving on this Board/Commission/Committee? My main goal is to become more familiar with the specific needs of Gilroy and to help provide accurate recommendations to City Council.
Why are you the most qualified to serve on this Board/Commission/Committee? I was born and raised in Gilroy and my boyfriend and I bought our forever home in Gilroy in 2020. I love this community and am very motivated to help it thrive. I am currently a project manager for a general contractor in Campbell and have been working with developers and City officials to pull permits for the last 11 years. I am very familiar with the process and what it takes to get a project approved from all sides.
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Attachment: Planning Commission Applicant - Valdez, Monica (3624 : Commission Interviews)
City of Gilroy Board, Committee, and Commission Appointment | Akur Varadarajan
City of Gilroy Application
For Board, Committee, and Commission
Appointment
Date of Submission : 12/3/2021 8:46:46 AM
Name : Akur Varadarajan
Board / Commission / Committee of Interest : Planning Commission Are you a registered voter within the City
limits? : Yes
Physical Address : REDACTED
Phone Number : REDACTED
E-Mail Address : REDACTED
Alternate Phone Number : REDACTED
List your qualifications for this appointment:
Professional Experience: Includes 24 years of experience in public school management with wide-ranging
responsibilities: community engagement, culture and climate of the organization, human resource
administration with emphasis on employee relations and contract negotiations, work related to professional
development, oversight of budget, finance, facilities operations, school food services, school transportation, procurement and public bidding and contract functions.
Facilities planning and Construction Management: Administered District’s facilities planning from
issuance of bonds to construction management: Planned, organized and directed the school facilities and
maintenance department. Oversee facilities compliance issues with regards to State Allocation Board,
Office of Public School Construction and Division of State Architect programs and regulations regarding
eligibility and funding for school construction and modernization.
List any service to the community including any prior appointments.
What are you goals while serving on this Board/Commission/Committee? I am interested in contributing to the community. I believe I can contribute effectively to the Gilroy Planning Commission based on my background and experience.
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Attachment: Planning Commission Applicant - Varadarajan, Akur (3624 : Commission Interviews)
City of Gilroy Board, Committee, and Commission Appointment | Akur Varadarajan
Why are you the most qualified to serve on this Board/Commission/Committee? My work experience has been in the public sector. I have served in different positions in school administration and as a Co-Superintendent and Chief Business Officer worked with City administration. I believe my qualifications makes me an ideal candidate to serve in the Planning Commission.
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Attachment: Planning Commission Applicant - Varadarajan, Akur (3624 : Commission Interviews)
City of Gilroy Board, Committee, and Commission Appointment | Zintis Rieksts
City of Gilroy Application
For Board, Committee, and Commission
Appointment
Date of Submission : 11/19/2021 8:49:10 AM
Name : Zintis Rieksts
Board / Commission / Committee of Interest : Planning Commission Are you a registered voter within the City
limits? : Yes
Physical Address : REDACTED
Phone Number : REDACTED
E-Mail Address : REDACTED
Alternate Phone Number : REDACTED
List your qualifications for this appointment:
A licensed residential home builder.
List any service to the community including any prior appointments. --Volunteer advisor to GDBA
--Active Member of Sportsman's Chef(a non-profit voluntary Gilroy community service organization involved with the Garlic
Festival, outreach programs for disadvantaged and challenged youth, and partners with GAL'S( Gilroy Assistance Leauge)
for community fundraising initiatives
--Advisor for Gourmet Alley initiative
What are you goals while serving on this Board/Commission/Committee? Establish a cohesive plan which aligns with Gilroy's vision for growth.
Why are you the most qualified to serve on this Board/Commission/Committee? In addition to being a licensed residential builder, I owned a successful business where I honed my visionary and thought leadership skills. These skill sets are applicable and are requirements to be a successful contributing board member on the planning commission.
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Attachment: Planning Commission Applicant - Zintis, Rieksts (3624 : Commission Interviews)
City of Gilroy
STAFF REPORT
Agenda Item Title: Action Minutes for January 10, 2022 City Council Regular Meeting Meeting Date: January 24, 2022
From: Jimmy Forbis, City Administrator
Department: City Clerk
Submitted By: Thai Pham
Prepared By: Thai Pham
Strategic Plan Goals
☐ Develop a Financially
Resilient Organization
☐ Ensure Neighborhood
Equity from City
Services
☐ Promote Economic
Development
Activities
☐ Promote Safe,
Affordable Housing for All
☐ Maintain and Improve
City Infrastructure
RECOMMENDATION
Approve the minutes.
Attachments:
1. Draft Action Minutes
7.A
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City Council Regular Meeting Minutes
01/10/2022
City of Gilroy
City Council Regular Meeting Minutes
January 10, 2022
I. OPENING
A. Call to Order
The meeting was called to order at 6:00 PM by Mayor Blankley.
1. Pledge of Allegiance
Mayor Blankley led the pledge of allegiance.
2. Invocation
Pastor Greg Quirke from South Valley Community Church provided the invocation.
3. City Clerk's Report on Posting the Agenda
City Clerk Pham declared the posting of the Agenda.
4. Roll Call
Attendee Name Title Status
Marie Blankley Mayor Present
Rebeca Armendáriz Council Member Present
Dion Bracco Council Member Present
Zach Hilton Council Member Present
Peter Leroe-Muñoz Vice Mayor Present
Carol Marques Council Member Present
Fred Tovar Council Member Present
B. Orders of the Day
There were none.
C. Employee Introductions
Police Chief Espinoza introduced Officer Carlos Plascencia.
Finance Director Sangha introduced Financial Analyst Victoria Rhaman and Accounting Assistant Natalia Becerra Batiz.
City Administrator Forbis introduced Monica Sendejas, who was promoted to Management Analyst.
Human Resources Director McPhillips introduced Facilities Maintenance Specialist Rigoberto Canela.
II. CEREMONIAL ITEMS
A. Proclamations, Awards and Presentations
There were none.
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Attachment: Draft Action Minutes (3625 : 01/10/2022 City Council Regular Meeting Minutes)
City Council Regular Meeting Minutes
January 10, 2022
III. PRESENTATIONS TO THE COUNCIL
Mayor Blankley opened the public comment period.
The following speaker spoke on items not on the agenda:
Beth Ogilvie spoke on opposition of the El Camino Real Mission Bell installation.
Victor Cid spoke on the issue of RVs and homelessness near his place of work.
Valentin Lopez spoke on opposition of the Bell Mission installation.
Laura One Feather spoke on opposition of the Bell Mission installation.
Jill Kunishige spoke on opposition of the Bell Mission installation.
Greg Cotton spoke on opposition of the Bell Mission installation.
Petra Macias requested Council Member Armendáriz to step down from the Council.
Beatrice Macias requested Council Member Armendáriz to step down to step down from the Council.
Jan Guffey spoke on opposition of the Bell Mission installation.
Michelle Glover spoke on opposition of the Bell Mission installation.
Marcus Rodriguez spoke on opposition of the Bell Mission installation.
Vicente Moreno spoke on opposition of the Bell Mission installation.
There being no further public comment, Mayor Blankley closed public comment.
IV. REPORTS OF COUNCIL MEMBERS
Council Member Bracco wishe d the public a happy new year. He asked for a moment of silence to remember those who lost their lives due to Covid-19.
Council Member Armendáriz notified of two new future events. The first is a health fair will be held at the Neon Exchange on January 14th. The second is Town Hall on Fentanyl Awareness on January 18th at Old City Hall at 6 PM.
Council Member Marques reported that she attended a retreat with the Downtown Business Association on January 8th. She also stated that she is the point person in the City of Gilroy in distributing petitions and gathering signatures for Brand - Huang-Mendoza Tripartisan Land Use Initiative and enco uraged the public to email her if they are interested in learning more about the initiative and signing the petition.
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Attachment: Draft Action Minutes (3625 : 01/10/2022 City Council Regular Meeting Minutes)
City Council Regular Meeting Minutes
January 10, 2022
Council Member Hilton reported that the Board of Directors of Visit Gilroy California Welcome Center meeting. He also reported that he will have a meeting with Silicon Valley Energy Authority on January 11th about Reach Codes.
Council Member Tovar wished the community a happy new year. He thanked and appreciated the members speaking at tonight’s meeting and conveyed to them that their comments were heard. He wanted to thank the Salvation Army for feeding and providing presents to over 300 children this past Christmas.
Council Member Leroe -Muñoz stated that he will report on Cities Association of Santa Clara County Board of Directors in t he upcoming January 24 City Council Regular Meeting.
Mayor Blankley reported on the SCVWD Joint Council -SCRWA-Board Water Resources Committee and the January 6 th VTA Board of Directors meeting. She also stated that the City will be conducting a Fentanyl I nformational Town Hall meeting that is separate from Council Member Armendáriz’s town hall event.
V. FUTURE COUNCIL INITIATED ITEMS
Mayor Blankley requested to agendize directing staff to contact Caltrans about requesting to erect a California landmark sign for Highway 152. The request received unanimous support.
Council Member Armendáriz requested to agendize a discussion of the postponement of the El Camino Real Mission Bell ins tallation. The request failed to receive majority support.
Council Member Tovar requested Council to have discussion about the future of Gilroy Garlic Festival. City Administrator Forbis suggested that his office could extend an invitation to the Garlic F estival Board to provide a presentation to Council.
VI. CONSENT CALENDAR (ROLL CALL VOTE)
Mayor Blankley opened Public Comment.
There being no public comments, Mayor Blankley closed public comment.
RESULT: APPROVE [UNANIMOUS]
MOVER: Dion Bracco, Council Member
SECONDER: Peter Leroe-Muñoz, Vice Mayor
AYES: Blankley, Armendáriz, Bracco, Hilton, Leroe-Muñoz, Marques, Tovar
1. December 6, 2021 City Council Regular Meeting Minutes A motion was made to approve the minutes.
2. December 13, 2021 City Council Special Meeting Action Minutes A motion was made to approve the minutes.
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Attachment: Draft Action Minutes (3625 : 01/10/2022 City Council Regular Meeting Minutes)
City Council Regular Meeting Minutes
January 10, 2022
3. Claim of Westwood Inv., LLC (The City Administrator recommends a “yes” vote under the Consent Calendar shall constitute the denial of the claim) A motion was made to deny the claim.
VII. BIDS AND PROPOSALS
1. Award of Contract for CEQA Review of Planning Application's AS21 -13 and TM 21-02 for 6970 Camino Arroyo Development Project.
City Administrator Forbis gave staff presentation and responded to Council Members questions.
Mayor Blankley open Public Comment.
There being no public comments, Mayor Blankley closed public comment.
Possible Action:
Award a contract to EMC Planning in the amount of $169,049.00 for preparation of an initial study/mitigated negative declaration for Planning Application AS 21 -13 and authorize the City Administrator to execute the contract and associated documents.
RESULT: APPROVE [6 TO 1 ABSENCE]
MOVER: Dion Bracco, Council Member
SECONDER: Fred Tovar, Council Member
AYES: Blankley, Bracco, Hilton, Leroe-Muñoz, Marques, Tovar ABSENT: Rebeca Armendáriz
2. Approval of a Fiscal Year 2021 -2022 Budget Amendment Increasin g Appropriations in the Amount of $63,502 and Award of a Contract to Burkett's Pool Plastering Inc. for a Base Bid amount of $280,457, with a contingency of $28,045 for the Christopher High School Activity Pool Re - Plaster, Project No. 22-ASD-271.
Facilities Superintendent Dunckel gave staff presentation and responded to Council Members questions.
Mayor Blankley open Public Comment.
There was no public comment.
There being no public comments, Mayor Blankley closed public comment.
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Attachment: Draft Action Minutes (3625 : 01/10/2022 City Council Regular Meeting Minutes)
City Council Regular Meeting Minutes
January 10, 2022
Possible Action:
a. Adopt a resolution of the City Council of the City of Gilroy amending the FY 22 budget to transfer $63,502 from Capital Projects Fund (400) to Facilities Fund (651) and appropriate the related expenditure for the Pool Replaster project.
b. Award a contract to Burkett's Pool Plastering Inc. for the base bid price of $280,457 for the Christopher High School Activity Pool Re -plaster, Project No. 22-ASD-271, establish a contingency of up to $28,045 (10%), and authorize the City Administrator to execute the cont ract and associated documents.
A motion was made by Vice Mayor Leroe-Muñoz, seconded by Council Member Tovar, to adopt the resolution and award a contract to Burkett’s Pool Plastering Inc. The motion was carried by the following vote:
RESULT: APPROVE [UNANIMOUS]
MOVER: Peter Leroe-Muñoz, Vice Mayor
SECONDER: Fred Tovar, Council Member
AYES: Blankley, Armendáriz, Bracco, Hilton, Leroe -Muñoz, Marques, Tovar
Enactment No.: Resolution No. 2022-01
VIII. PUBLIC HEARINGS
No Public Hearings listed.
IX. UNFINISHED BUSINESS
1. Streamline Consolidation of the City's Boards and Commissions City Administrator Forbis gave staff presentation and responded to Council Members questions.
Mayor Blankley opened Public Comment.
Public Comments:
Jan Guffey stated it was not the time to fold the Housing and Neighborhood Revitalization Commission into the Planning Commission.
Carolyn Schimandle urged Council to reconsider folding Bicycle Pedestrian Commission into Planning Commission and let it remain as its own separate commission.
Ron Kirkish requested Council to listen to the City Administrator and support the consolidation.
There being no further comments, Mayor Blankley closed public comment.
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Attachment: Draft Action Minutes (3625 : 01/10/2022 City Council Regular Meeting Minutes)
City Council Regular Meeting Minutes
January 10, 2022
Possible Action:
Council:
a) Adopt A Resolution of the City Council of the City of Gilroy Consolidating the Housing and Neighborhood Revitalization Committee, Historic Heritage Committee, and the Street Naming Committee, and Placing Their Associated Board Functions Under the Authority of the Planning Commission.
RESULT: APPROVE [5 TO 2]
MOVER: Fred Tovar, Council Member
SECONDER: Peter Leroe-Muñoz, Vice Mayor
AYES: Blankley, Bracco, Leroe-Muñoz, Marques, Tovar
NAYS: Rebeca Armendáriz, Zach Hilton
Enactment No.: Resolution No. 2022-02
b) Motion to read the ordinance by title only and waive further reading.
RESULT: APPROVE [5 TO 2]
MOVER: Dion Bracco, Council Member
SECONDER: Peter Leroe-Muñoz, Vice Mayor
AYES: Blankley, Bracco, Leroe-Muñoz, Marques, Tovar
NAYS: Rebeca Armendáriz, Zach Hilton
City Clerk Pham read aloud the title of the proposed ordinance.
c) Introduce an Ordinance of the City Council of the City of Gilroy Consolidating the Bicycle Pedestrian Commission and Placing Their Associated Board Functions for Infrastructure Planning and Development Review Under the Authority of the Planning Commission, and the Associated Board Functions for Education and Encouragement Activities Under the Authority of the Parks and Recreation Commission.
RESULT: APPROVE [5 TO 2]
MOVER: Fred Tovar, Council Member
SECONDER: Dion Bracco, Council Member
AYES: Blankley, Bracco, Leroe-Muñoz, Marques, Tovar
NAYS: Rebeca Armendáriz, Zach Hilton
X. INTRODUCTION OF NEW BUSINESS
1. Consideration of authorizing virtual meetings pursuant to Section 54953 of the Brown Act for Council and all Boards and Commissions City Administrator Forbis gave staff presentation and responded to Council Members questions.
Mayor Blankley opened Public Comment.
There being no comments, Mayor Blankley closed public comment.
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Attachment: Draft Action Minutes (3625 : 01/10/2022 City Council Regular Meeting Minutes)
City Council Regular Meeting Minutes
January 10, 2022
Possible Action:
Adopt Resolution authorizing virtual meetings pursuant to Section 54953 of the Brown Act for Council and all Boards and Commissions.
RESULT: APPROVE [5 TO 2]
MOVER: Rebeca Armendáriz, Council Member
SECONDER: Fred Tovar, Council Member
AYES: Blankley, Armendáriz, Hilton, Leroe-Muñoz, Tovar
NAYS: Dion Bracco, Carol Marques
Enactment No.: Resolution No. 2022-03
2. Accept the Annual Comprehensive Financial Report for Fiscal Year -Ended June 30, 2021
Finance Director Sangha gave staff presentation.
Mayor Blankley opened Public Comment.
There being no comments, Mayor Blankley closed public comment.
Possible Action:
Accept and file report.
RESULT: RECEIVE REPORT
XI. CITY ADMINISTRATOR'S REPORT
C. City-wide Road Repairs Due to Recent Inclement Weather City Administrator Forbis provided an update on the item and responded to Council Members questions.
Council received the report.
A. Covid-19 Update
Fire Chief Wyatt provided an update on the item and responded to Council Members questions.
Council received the report.
B. Status of In-Person Council Meetings
No report was given.
XII. CITY ATTORNEY'S REPORT
None provided.
XIII. CLOSED SESSION
There were no Closed Session items listed.
ADJOURNMENT
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Attachment: Draft Action Minutes (3625 : 01/10/2022 City Council Regular Meeting Minutes)
City Council Regular Meeting Minutes
January 10, 2022
Meeting was adjourned at 8:08 p.m.
I HEREBY CERTIFY that the foregoing minutes were duly and regularly adopted at a regular meeting of the City Council of the City of Gilroy.
/s/Thai Nam Pham
Thai Nam Pham, CMC, CPMC
City Clerk
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Attachment: Draft Action Minutes (3625 : 01/10/2022 City Council Regular Meeting Minutes)
City of Gilroy
STAFF REPORT
Agenda Item Title: Resolution of the City Council of the City of Gilroy Declaring Weeds a Nuisance
Meeting Date: January 24, 2022
From: Jimmy Forbis, City Administrator
Department: Fire Department
Submitted By: Jim Wyatt
Prepared By: Jennifer Fortino
Strategic Plan Goals
☐ Develop a Financially
Resilient Organization
☐ Ensure Neighborhood
Equity from City
Services
☐ Promote Economic
Development
Activities
☐ Promote Safe,
Affordable Housing for All
Maintain and Improve
City Infrastructure
RECOMMENDATION
EXECUTIVE SUMMARY
Gilroy City Code, Chapter 12, Article III, establishes a procedure for abatement of weeds and refuse. The annual weed and refuse abatement program includes an initial resolution declaring weeds and refuse a public nuisance. The resolution sets April 4, 2022 for a public hearing of the list of properties subject to abatement. The list created for public hearing includes sites identified as having a weed or refuse problem in the current year as well as during any one of the prior three years. Adoption of the list at the public hearing provides authority for the City (or its contractor) to perform the abatement of weeds and/or refuse for the listed sites, and provides for cost recov ery by adding it to the property owners property tax bill as an assessment.
BACKGROUND
Pursuant to an updated agreement signed in 2021 between the City of Gilroy and the
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Santa Clara County Agriculture Commissioner’s Office, the County Vegetation Management Program has been implementing the weed abatement program as a contractor to the City. Under the agreement, all abatement activities are conducted by the County to include the noticing of property owners, property inspections, and the collection of abateme nt fees and inspection costs. The City is responsible for adopting necessary resolutions and conducting public hearings on the matter.
ANALYSIS
Program Details
The list created for the public hearings includes sites identified as having a weed or refuse problem in the current year as well as during any one of the prior 3 years. County staff will mail the initial abatement notice to identified property owners within 2 weeks of the resolution adoption. Required information in the weed abatement notice includes the public hearing date, instructions on proper abatement of the sites, and the May 15, 2022 deadline for abatement activities. In addition, the notice also identifies the consequences for not meeting the deadline.
All identified sites will be require d to pay the initial inspection fee, currently set at $91. If a site is abated by the May 15, 2022 abatement deadline then additional fees, such as re-inspection fees and/or abatement oversight fees, will not be assessed. The property owner is required to maintain the abated site and failure to do so will result in the assessment of additional fees. All properties must be free of fire hazards throughout the year to meet minimum safety standards.
Sites that are identified to have weed and/or refuse proble ms will remain on the list for at least three years. However, property owners can have their property removed from the list. For instance, a site that has achieved three “compliant” years in a row, or a vacant site that has since been developed and is full y landscaped may be removed from the list.
After the initial outreach, the County will also send all property owners a reminder letter 30 days prior to the May 15, 2022 abatement deadline.
After May 15, 2022, the County will conduct inspections and noti fy those property owners who have not abated their properties. For sites not in the Wildland Urban Interface (WUI) Hazardous Fire Area, the property owner has two weeks to complete the work. If abatement is completed prior to the next inspection, these pro perties will not be subject to additional fees.
The two-week extension is not provided to properties in the WUI Hazardous Fire Area because these areas are considered to have high fire hazards. In addition, the Public Resources Code requires weed abatemen t in these areas without any extensions. For sites in the WUI Hazardous Fire Area, the County will immediately assign the site for abatement by a private contractor. Any site that is abated by the County will be assessed the inspection fee ($91), the failed inspection fee ($505) and the cost incurred by the abatement contractor, which is based on square footage of the site, as well as
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the abatement oversight cost ($858).
Since the implementation of this program in 2010, the number of sites on the County’s list has fluctuated from year to year but the numbers for Gilroy have decreased since 2017. In Gilroy, there were: 282 sites identified in 2017, 166 sites in 2018, 174 sites in 2019, 146 sites in 2020, 150 in 2021 and 147 for 2022.
Key dates associated with this year’s program are as follows:
January 24, 2022 City Council Resolution of Public Nuisance February 11, 2022* County Notification to Listed Property Owners April 4, 2022 Public hearing to consider List of Properties requiring abatement
April 16, 2022* County Notification of Abatement Deadline May 15, 2022 Abatement Deadline
May 30, 2022* County conducts initial inspections
June 13, 2022* Extended Deadline for non-WUI properties only August 1, 2022* Public hearing for City Council to Authorize Assessments *Dates are approximate at this time, and provide an estimate as determined by the responsible Agency.
FISCAL IMPACT/FUNDING SOURCE
The use of the County as a contract agency to carry out their portions of the program has been self -funded through cost recovery from property owners that have failed to abate their sites. The Fire Marshal’s office absorbs the staffing cost for coordination and communication with the County, the pre -hearing meeting when a property owner appeals the fees, and processing of the Council Resolutions and Public Hearings.
If the County does not collect adequate funds to meet the program budget, they will prorate the shortfall to the cities based on the percent of the properties from each City in the program. We will not know un til later in the year if there is a budget shortfall because abatement activities will continue through October. Historically, the County has not had a budget shortfall because they have collected adequate fees directly from the property owners to cover the cost of the program.
NEXT STEPS
If Council adopts the resolution, the public hearing of sites needing abatement will be set for April 4, 2022.
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In addition, a report of the property assessments will be presented to City Council at a public hearing on August 1, 2022. Prior to the hearing, property owners are invited to contact the Fire Marshal to review any assessments they believe are in error. A final list will be presented to the City Council for approval of the assessment. The County Property Tax A ssessor will then place the fees on the next property tax bill as an assessment.
PUBLIC OUTREACH
As part of the annual program, property owners receive two Weed and Refuse Abatement notices that clearly identify the requirements of the program. Pursuant t o the program requirements, the County also notifies property owners when their properties fail inspections.
Attachments:
1. 2022 Gilroy Commencement report
2. Resolution 2022 Weed Abatement Initiation
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APN Owner
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Situs
2022 WEED ABATEMENT PROGRAM
COMMENCEMENT REPORT
CITY OF GILROY
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Attachment: 2022 Gilroy Commencement report (3604 : Resolution Declaring Weeds a Nuisance) 790-07-085 KUANG WEIWEI
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Attachment: 2022 Gilroy Commencement report (3604 : Resolution Declaring Weeds a Nuisance) 810-20-021 HP AG LAND LLC
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7492 CHESTNUT ST 841-07-027 SANCHEZ ELOY G AND ANGELICA M 7472 CHESTNUT ST 841-07-043 TORRES-FERNANDEZ ELISA ET AL 7498 CHESTNUT ST 841-07-049 ZHENG SHAO LAN AND ZHU YINGGUANG SOUTH VALLEY FY 841-10-039 PACIFIC GAS & ELECTRIC CO ATT: Nguyen Chau SOUTH VALLEY FY 841-14-058 UNION PACIFIC CORPORATION
SOUTH VALLEY FY 841-14-059 UNION PACIFIC CORPORATION
841-14-060 UNION PACIFIC CORPORATION
841-14-072 UNION PACIFIC CORPORATION
5870 MONTEREY RD 841-14-080 GARLIC FARM TRUCK CENTER LLC 6900 CAMERON BL 841-17-100 MCCARTHY GILROY LLC
6503 CAMERON BL 841-17-107 MCCARTHY GILROY LLC
841-17-121 UNITED NATURAL FOODS WEST INC
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Attachment: 2022 Gilroy Commencement report (3604 : Resolution Declaring Weeds a Nuisance) 841-53-066 NGUYEN THU TAM
841-69-042 SOUTHPOINT BUSINESS PARK ASSOCIATES
PACHECO PASS HY 841-70-014 CAPRARA DENNIS TRUSTEE & ET AL 850 HOLLOWAY RD 841-70-026 LOUGHRAN ALEXANDER
555 HOLLOWAY RD 841-70-037 ROCHA JOE A AND VICTORIA M
6970 CAMINO ARROYO 841-70-049 TEMPLE GILROY LLC
560 ROSSI CT 841-72-008 PULMUONE WILDWOOD INC
E LUCHESSA AV 841-73-005 LONESTAR CALIFORNIA INC
5980 TRAVEL PARK CL 841-75-011 HOANG VINCE AN TRI
6601 CAMERON BL 841-84-009 MCCARTHY GILROY LLC
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Attachment: 2022 Gilroy Commencement report (3604 : Resolution Declaring Weeds a Nuisance)
EXHIBIT A
Owner Address City/State Zip Code
2020 ROCKROSE CT GILROY CA 95020-7931
575 SOUTHSIDE DR STE C GILROY CA 95020
9298 CALLE DEL REY ST GILROY CA 95020-7700
1171 S SPRINGER RD LOS ALTOS CA 94024-4935
10440 S DE ANZA BLVD STE D5A CUPERTINO CA 95014
P O BOX 608 LOS GATOS CA 95030
8565 STRAWBERRY LN GILROY CA 95020
24168 BIG BASIN WAY SARATOGA CA 95070
9283 BRIARBERRY LN GILROY CA 95020-8210
1383 PHEASANT DR GILROY CA 95020-8203
4125 HECKER PASS RD GILROY CA 95020
7948 MCCLELLAN RD APT 1 CUPERTINO CA 95014
8755 WILD IRIS DR GILROY CA 95020
1025 SPRIG WAY GILROY CA 95020
1381 PEREGRINE DR GILROY CA 95020
2121 CRUDEN BAY WAY GILROY CA 95020
9261 TEA TREE CT GILROY CA 95020
1841 CAROB CT GILROY CA 95020
1830 CAROB CT GILROY CA 95020
6971 SPUMANTE WAY GILROY CA 95020
145 RIGGS AVE MERCED CA 95340
574 BLAIRBURRY WAY SAN JOSE CA 95123-1303
1940 PEAR DR MORGAN HILL CA 95037
9050 TEA TREE WAY GILROY CA 95020
10800 MAXINE AVE CUPERTINO CA 95014-0120
979 STORY RD #7024 SAN JOSE CA 95122
7948 MCCLELLAN RD APT 1 CUPERTINO CA 95014
38 PARK FLETCHER PL SAN JOSE CA 95136-2403
2250 CEDARSIDE CT SAN JOSE CA 95116
15858 RICA VISTA WAY SAN JOSE CA 95127
806 CHRISTOPHER CT SANTA CLARA CA 95051-5207
1743 CURTNER AVE SAN JOSE CA 95124-1208
1225 VIENNA DR #251 SUNNYVALE CA 94089
2224 BANYAN CT GILROY CA 95020
3339 VANGORN WAY SAN JOSE CA 95121-2555
2253 BANYAN CT GILROY CA 95020
3100 MELCHESTER DR SAN JOSE CA 95132-1744
PO BOX 10652 SAN JOSE CA 95127
901 CALLE SERRA SAN DIMAS CA 91773
2725 SCOTTSDALE DR SAN JOSE CA 95148-3427
39224 GUARDINO DR UNIT 216 FREMONT CA 94538
75 FARRELL AVE GILROY CA 95020-7616
2022 WEED ABATEMENT PROGRAM
COMMENCEMENT REPORT
CITY OF GILROY
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Attachment: 2022 Gilroy Commencement report (3604 : Resolution Declaring Weeds a Nuisance) 1952 EISENHOWER DR SANTA CLARA CA 95054-1621
1952 EISENHOWER DR SANTA CLARA CA 95054-1621
1952 EISENHOWER DR SANTA CLARA CA 95054-1621
1952 EISENHOWER DR SANTA CLARA CA 95054-1621
946 STANLEY AVE LOS ALTOS CA 94024-5067
9145 JARDIN WAY GILROY CA 95020
1437 LEIMERT BLVD UNIT #C OAKLAND CA 94602
750 MENLO AVE STE 250 MENLO PARK CA 94025
8401 DIANE CT GILROY CA 95020-4213
PO BOX 1557 GILROY CA 95021-1557
1648 MULBERRY LN SAN JOSE CA 95125-4942
103 CHIPPENDALE CT LOS GATOS CA 95032
11 FIRST ST GILROY CA 95020
8545 SHOOTING STAR CT GILROY CA 95020
265 GURRIES DR GILROY CA 95020
1648 MULBERRY LN SAN JOSE CA 95125-4942
8335 CHURCH ST GILROY CA 95020
5820 STONERIDGE MALL RD STE 225 PLEASANTON CA 94588
12005 TURLOCK AVE SAN MARTIN CA 95046-9432
860 MAPLE AVE SAN MARTIN CA 95046-9538
810 SAN PEDRO ST STE 200 SAN JOSE CA 95113
UNIT 305 SAN JOSE CA 95138
UNIT 305 SAN JOSE CA 95138
3117 OAKGATE WAY SAN JOSE CA 95148
3435 HARBOR CT SAN JOSE CA 95127-4311
PO BOX 193 SAN MARTIN CA 95046
PO BOX 1265 MORGAN HILL CA 95038
7421 HANNA ST GILROY CA 95020-5723
6700 CHURCH ST GILROY CA 95020-6508
5671 SANTA TERESA BLVD STE 200 SAN JOSE CA 95123
5671 SANTA TERESA BLVD STE 200 SAN JOSE CA 95123
5671 SANTA TERESA BLVD STE 200 SAN JOSE CA 95123
5671 SANTA TERESA BLVD STE 200 SAN JOSE CA 95123
5671 SANTA TERESA BLVD STE 200 SAN JOSE CA 95123
5671 SANTA TERESA BLVD STE 200 SAN JOSE CA 95123
5671 SANTA TERESA BLVD STE 200 SAN JOSE CA 95123
5671 SANTA TERESA BLVD STE 200 SAN JOSE CA 95123
21701 STEVENS CRK BLV #2610 CUPERTINO CA 95014
21701 STEVENS CRK BLV #2610 CUPERTINO CA 95014
21701 STEVENS CRK BLV #2610 CUPERTINO CA 95014
P O BOX 2327 GILROY CA 95021
305 BLOOMFIELD AVE GILROY CA 95020
480 E STATE ST STE 100 EAGLE ID 83616
8886 MURAOKA DR GILROY CA 95020
6415 MONTEREY RD GILROY CA 95020
7888 WREN AVE UNIT D-143 GILROY CA 95020
50 E NORTH TEMPLE FL 22 SALT LAKE CITY UT 84150-3620
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Attachment: 2022 Gilroy Commencement report (3604 : Resolution Declaring Weeds a Nuisance) 23 CORPORATE PL UNIT 150 NEWPORT BEACH CA 92625
2221 OLYMPIC BLVD WALNUT CREEK CA 94595
9419 GERANIUM CIR FOUNTAIN VALLEY CA 92708
9419 GERANIUM CIR FOUNTAIN VALLEY CA 92708
9419 GERANIUM CIR FOUNTAIN VALLEY CA 92708
220 W 20TH AVE SAN MATEO CA 94403
7518 FERNIE CT GILROY CA 95020
9419 GERANIUM CIR FOUNTAIN VALLEY CA 92708
9419 GERANIUM CIR FOUNTAIN VALLEY CA 92708
9419 GERANIUM CIR FOUNTAIN VALLEY CA 92708
9419 GERANIUM CIR FOUNTAIN VALLEY CA 92708
9419 GERANIUM CIR FOUNTAIN VALLEY CA 92708
9419 GERANIUM CIR FOUNTAIN VALLEY CA 92708
9419 GERANIUM CIR FOUNTAIN VALLEY CA 92708
10031 FOOTHILLS BLVD ROSEVILLE CA 95030-0000
10031 FOOTHILLS BLVD ROSEVILLE CA 95030-0000
PO BOX 1772 GILROY CA 95021
443 EL CAJON DR SAN JOSE CA 95111-3509
10031 FOOTHILLS BLVD ROSEVILLE CA 95030-0000
P O BOX 1772 GILROY CA 95021-1772
985 MONTEBELLO DR UNIT 105 E GILROY CA 95020
PO BOX 1772 GILROY CA 95021
707 N MONROE ST SAN JOSE CA 95128-1343
1216 PALLADIN WAY PLEASANTON CA 94566
19341 MONTE VISTA DR SARATOGA CA 95070-6219
1754 TECHNOLOGY DR UNIT 120 SAN JOSE CA 95110
P.O. BOX 787 DIABLO CA 94528
405 SPRING GROVE RD HOLLISTER CA 95023
18640 SUTTER BLVD STE 100 MORGAN HILL CA 95037
7888 MONTEREY RD GILROY CA 95020
10031 FOOTHILLS BLVD ROSEVILLE CA 95030-0000
2545 MUIRFIELD WAY GILROY CA 95020
39625 FREMONT BLVD FREMONT CA 94538
835 GREEN VALLEY RD WATSONVILLE CA 95076
400 PALM AVE MILLBRAE CA 94030
7492 CHESTNUT ST GILROY CA 95020-5806
7472 CHESTNUT ST GILROY CA 95020-5806
7498 CHESTNUT ST GILROY CA 95020-5806
111 ALMADEN BLVD SAN JOSE CA 95115-0005
10031 FOOTHILLS BLVD ROSEVILLE CA 95030-0000
10031 FOOTHILLS BLVD ROSEVILLE CA 95030-0000
10031 FOOTHILLS BLVD ROSEVILLE CA 95030-0000
10031 FOOTHILLS BLVD ROSEVILLE CA 95030-0000
5000 E 2ND ST UNIT G BENECIA CA 94510
210 ALMENDRA AVE LOS GATOS CA 95030-7211
210 ALMENDRA AVE LOS GATOS CA 95030-7211
100 OLIVER ST FLR 18TH BOSTON MA 2110
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Attachment: 2022 Gilroy Commencement report (3604 : Resolution Declaring Weeds a Nuisance) 2673 MCLAUGHLIN AVE SAN JOSE CA 95121-2752
P O BOX 5368 SAN JOSE CA 95150
31958 GLORIA RD GONZALES CA 93926-9401
237 LAUMER AVE SAN JOSE CA 95127-2433
575 SOUTHSIDE DR GILROY CA 95020
527 SIMAS DR MILPITAS CA 95035-4723
2315 MOORE AVE FULLERTON CA 92833
1501 BELVEDERE RD WEST PALM BEACH FL 33406
5240 MONTEVERDE LN LINCOLN CA 95648
210 ALMENDRA AVE LOS GATOS CA 95030-7211
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Attachment: 2022 Gilroy Commencement report (3604 : Resolution Declaring Weeds a Nuisance) 1 RESOLUTION NO. 2022-XX
RESOLUTION NO. 2022-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY
DECLARING CERTAIN WEEDS GROWING IN THE CITY OF
GILROY AND ACCUMULATIONS OF REFUSE IN THE CITY OF
GILROY TO BE A PUBLIC NUISANCE, DESCRIBING WEEDS AND
REFUSE WHICH CONSTITUTE SUCH NUISANCE, AND
PROVIDING NOTICE OF THE ADOPTION OF THE RESOLUTION
BY PUBLICATION THEREOF
WHEREAS, certain weeds are growing in the City of Gilroy (“City”) upon the various streets, alleys, sidewalks and upon private property, which weeds bear seeds of a wingy or downy nature, or which may attain such growth as to become, when dry, a fire menace, or which are otherwise noxious and dangerous; and
WHEREAS, certain refuse is accumulating in the City upon public and private property; and
WHEREAS, said weeds and refuse constitute a public nuisance.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Gilroy as follows:
1. That such weeds and refuse do now constitute and will continue to constitute a public nuisance, and it is ordered that said public nuisance be abated in the manner provided by Article III of Chapter 12 of the Gilroy City Code.
2. That said nuisance exists upon all of the streets, alleys, sidewalks and private property within said City as shown, described and delineated on the several maps of the property in the City which are recorded in the Office of the County Assessor of the County of Santa Clara, reference in each instance for the description of any particular street, alley or private property being hereby made to the several maps aforesaid, and in the event of there being several subdivision maps on which said lots are shown, reference is hereby made to the latest subdivision map.
3. That it is ordered that Monday, the 4th of April 2022, at the hour of 6:00 o'clock p.m. in the Council Chambers of the City Council of the City, 7351 Rosanna Street, Gilroy, California, is hereby fixed as the time and place when objections to the proposed destruction or removal of said weeds and refuse shall be heard and given due consideration.
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Attachment: Resolution 2022 Weed Abatement Initiation (3604 : Resolution Declaring Weeds a Nuisance) 2 RESOLUTION NO. 2022-XX
4. That the Chief of the Fire Department of the City is hereby ordered and directed to cause notice of the adoption of this resolution and notice of said hearing to be given to all of the affected property owners at their stated mailing address on the latest tax assessor’s role, and also to be given in the manner and form provided in Sections 14.29 and 12.53 of the Gilroy City Code, and to cause said notice to be published in the City, at least ten (10) days prior to said hearing; and
5. That nothing in this Resolution prohibits the issuance of citations for violations of City Code Section 12.46 or City Fire Code with regards to Section 304.1.2.
PASSED AND ADOPTED this 24th day of January, 2022 by the following roll call vote:
APPROVED:
______________________________
Marie Blankley, Mayor
ATTEST:
Thai Pham, City Clerk
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Attachment: Resolution 2022 Weed Abatement Initiation (3604 : Resolution Declaring Weeds a Nuisance)
City of Gilroy
STAFF REPORT
Agenda Item Title: Approval of the Final Map and Property Improvement Agreement No. 2022-01 for Glen Loma Ranch Nebiollo North Single Family Home Development, Tract 10558, APN 808-18-031
Meeting Date: January 24, 2022
From: Jimmy Forbis, City Administrator
Department: Public Works Department
Submitted By: Daryl Jordan
Prepared By: Jorge Duran
Jorge Duran
Strategic Plan Goals
☐ Develop a Financially
Resilient Organization
☐ Ensure Neighborhood
Equity from City
Services
☐ Promote Economic
Development
Activities
☐ Promote Safe,
Affordable Housing for All
☐ Maintain and Improve
City Infrastructure
RECOMMENDATION
Approve the Final Map and Property Improvement Agreement No. 2022 -01 for Glen Loma Ranch Nebiollo North Single Family Home Development Tract 10558, APN 808 - 18-031.
BACKGROUND
On May 19, 2014, the applicant, Glen Loma Corporation, received Tentative Map approval of a master subdivision of approximately 359 acres, commonly known as the Glen L oma Ranch Specific Plan [Reference: Resolution No. 2019 -46, TM 18 -02 & Ordinance No. 2014-07, Z 14-01].
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The Glen Loma Ranch Specific Plan area consists of approximately 359 acres divided into 13 parcels under four separate ownerships. The land is comprised of gently sloped terrain with mixed oak/riparian woodlands, coastal scrub, non -native grasslands and serpentine rock outcrops. Reservoir Canyon Creek and Babbs Creek, traverse the site, along with two modified drainage channels that convey storm water for peak seasonal storm events. A seasonal wetland exists within the northwestern region of the project site. Ascension Solorsano Middle School and Las Animas Elementary School exist within the Glen Loma Specific Plan area. Roadways constructed to serve those schools also serve the Glen Loma Specific Plan area.
The Glen Loma Specific Plan encompasses 17 distinct residential neighborhoods with up to 1,693 mixed -density residential units, including single -family homes, apartments, low-income units, and senior units. The City has approved the subdivision of 14 neighborhoods (Vista Bella, Petite Sirah, Mataro, Home Ranch, Wild Chestnut, Montonico, McCutchin Creek, Palomino, Nebbiolo, Malvasia, The Glen, Towncenter Multi-Family, Towncenter Affordable, The Grove an d Luchessa) totaling 1 ,074 units so far. Vista Bella, Petite Syrah, Mataro, Home Ranch, Wild Chestnut, Montonico, The Grove and Luchessa have been built totaling 566 units.
Ultimate development of the Glen Loma Specific Plan will consist of a Town Center commercial development that includes a city fire station, a potential commercial site on the northern portion of the Specific Plan area (“Northern Commercial Reserve”), two proposed city park sites, and community amenities or focal points within each neighborhood. It will also include approximately 88 acres (24 percent of the project site) of open space and buffer areas with 6 -7 miles of trails that link the neighborhoods and tie into the existing Christmas Hill Park. As part of the open space, a rocky kno ll area with soils that provide habitat for endangered species (serpentine soils) and an area that currently contains a eucalyptus grove will be maintained.
On August 5, 2019, City Council of the City of Gilroy approved Tentative Map TM 18-02, granting Gle n Loma Corporation the ability to subdivide in phases approximately 125 acres into 102 village lots in the Nebbiolo Neighborhood, 46 compact lots in the Malvasia Neighborhood, and 23 compact lots in the Glen Neighborhood, for a total of 171 residential lot s. In addition, it allowed for two public open space parcels for the construction of the Santa Teresa trail, 22 private open space parcels that will be maintained by the homeowners' association, three lots for future development, and associated public and private streets on property located north of Santa Teresa Boulevard, between Merlot Drive and Miller Avenue (APN# 808 -18-003, 808 -18-024, 808-18-025, and 808 -18-026, filed by Glen Loma Group, 7888 Wren Avenue, Suite D- 143, Gilroy, CA 95020). [Reference: Resolution No. 2019-46, TM 18-02]
DISCUSSION
As part of this phase of the Glen Loma Ranch Specific Plan development, Tri Pointe Homes Holding, Inc., a Delaware Corporation and Nebbiolo II – Gilroy, L.P., a Delaware
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Limited Partnership are requesting approva l of Tract 10558, Nebbiolo North Final Map, and to enter into a Property Improvement Agreement with the City for the construction of Public Improvements. These improvements include new street grading, paving, curb, gutter, sidewalk, landscape, lighting, s torm drain, water, sewer, and necessary utility extension and connection to serve the development. As part of the Property Improvement Agreement, the Developer is required to provide two bonds: a Faithful Performance bond and a Payment bond of $6,358,191 (Six Million Three Hundred Fifty Eight Thousand One Hundred Ninety One Dollars) each for 100% of the estimated construction cost of the improvements.
Tract 10558 Final Map and Property Improvement Agreement 202 2-01 is ready for Recording with Santa Clara County once approved by City Council.
ALTERNATIVES
Council may deny the request and let the Tentative Map expire in August 2022. Staff does not recommend this alternative because it will impose unnecessary delay for the development of the site and will requ ire the developer to process a new Tentative Map for City approval.
FISCAL IMPACT
There is no net impact to the General Fund. Plan check and inspection fees have been collected to cover the costs associated with this action. The Developer has submitted bonding and insurance for the above referenced Property Improvement Agreement and Final Map. All the required improvements are part of the Developer’s responsibility, and there are no reimbursements required for this project.
Attachments:
1. Attach 1 - Vicinity Map GLR Nebbiolo North TR 10558
2. Attach 2 - Final Map GLR Nebbiolo North TR 10558
3. Attach 3 - Signed PIA Nebbiolo North TR 10558
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Attachment: Attach 1 - Vicinity Map GLR Nebbiolo North TR 10558 (3579 : Final Map and PIA No. 2022-01 for Nebiollo North Tract 10558)
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Attachment: Attach 2 - Final Map GLR Nebbiolo North TR 10558 (3579 : Final Map and PIA No. 2022-01 for Nebiollo North Tract 10558)
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Attachment: Attach 2 - Final Map GLR Nebbiolo North TR 10558 (3579 : Final Map and PIA No. 2022-01 for Nebiollo North Tract 10558)
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Attachment: Attach 2 - Final Map GLR Nebbiolo North TR 10558 (3579 : Final Map and PIA No. 2022-01 for Nebiollo North Tract 10558)
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Attachment: Attach 2 - Final Map GLR Nebbiolo North TR 10558 (3579 : Final Map and PIA No. 2022-01 for Nebiollo North Tract 10558)
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Attachment: Attach 2 - Final Map GLR Nebbiolo North TR 10558 (3579 : Final Map and PIA No. 2022-01 for Nebiollo North Tract 10558)
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Attachment: Attach 2 - Final Map GLR Nebbiolo North TR 10558 (3579 : Final Map and PIA No. 2022-01 for Nebiollo North Tract 10558) -1- 9/18/12 4828-0143-8026v3
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RECORDING REQUESTED BY:
City of Gilroy
WHEN RECORDED, MAIL TO:
City Clerk
City of Gilroy
7351 Rosanna Street
Gilroy, CA 95020
(SPACE ABOVE THIS LINE FOR RECORDER’S USE)
Property Improvement Agreement No. 2022-01
NEBBIOLO II – Tract 10558
APN: 808-18-031
Tri Pointe Homes Holdings, Inc., a Delaware Corporation And
Nebbiolo II - Gilroy, L.P., a Delaware Limited Partnership
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Attachment: Attach 3 - Signed PIA Nebbiolo North TR 10558 (3579 : Final Map and PIA No. 2022-01 for Nebiollo North Tract 10558) -2- 9/18/12 4828-0143-8026v3
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PROPERTY IMPROVEMENT AGREEMENT
RESIDENTIAL
AGREEMENT FOR EXTENSIONS OF WATER DISTRIBUTION SYSTEMS:
IMPROVEMENT OF STREETS: INSTALLATION OF SEWERS, STORM
DRAINS AND OTHER PUBLIC WORKS FACILITIES
Property Improvement Agreement No. 2022-01
This Property Improvement Agreement (“Agreement”) i s made and entered into this day of _____, 20____, by and between the City of Gilroy, a municipal corporation, herein called the “City,” and Nebbiolo II – Gilroy, L.P., a Delaware Limited Part nership, herein called the “Owner” and Tri Pointe Homes Holdings, Inc., a Delaware Corporation herein called the “Developer”.
WHEREAS, a final map of subdivision, record of surv ey or building permit (Site Clearance) application has now been submitted to the City for approval and acceptance, covering certain real esta te and property improvements known as and called: Nebb iolo II, APN: 808-18-31, a legal description of which is attached hereto and incorporated herein as Exhibit “A” (the “Property”), and as described in the project improvement plans entitled Nebbiolo II.
WHEREAS, the Owner is the fee owner of the Property and requires certain utilities and public works facilities in order to service the Property under the minimum standards established by the City and, WHEREAS, the City, by and through its City Council, has enacted certain Codes, Ordinances and Resolutions and certain Rules and Regulations have been promulgated concerning the subject matter of this Agreement and,
WHEREAS, the City has certain responsibilities for maintenance and operation of such utilities and public service facilities after acceptance by City, and for providing the necessary connecting system, general plant and appurtenances, and the City is agreeing to discharge those responsibilities, provided that Developer has faithfully and fully complied with al l of the terms, covenants, conditions to be perform ed by Developer pursuant to this Agreement.
NOW THEREFORE, in consideration of the foregoing premises and in order to carry on the intent and purpose of said Codes, Ordinances, Resolutions and Regulations and established policies of the Cit y and the laws of the State of California and the Uni ted States of America it is agreed by and between t he parties as follows:
SECTION 1
That all Codes, Ordinances, Resolutions, Rules and Regulations and established policies of the City an d the laws of the State of California and the United States of America concerning the subject matter of this Agreement are hereby referred to and incorporated h erein to the same effect as if they were set out at length herein. Said Codes, Ordinances, Resolutions, Rule and Regulations include, but are not limited to, the following: the Code of the City of Gilroy, the current Zoning Ordinance, and the currently adopted Uniform Building Code.
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Attachment: Attach 3 - Signed PIA Nebbiolo North TR 10558 (3579 : Final Map and PIA No. 2022-01 for Nebiollo North Tract 10558) -3- 9/18/12 4828-0143-8026v3
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SECTION 2
The Developer agrees:
a. To perform each and every provision required by the City to be performed by the Developer in each and every one of said Codes, Ordinances, Resolution , Rules and other Regulations and established policies of the City and the laws of the State of California and the United States of America, including without limitation, the California Labor Code and California Public Contract Code. Developer further agrees and acknowledges that it is its obligation t o determine whether, and to what extent, the work performed under this Agreement is subject to any Co des, Ordinances, Resolutions, Rules and other Regulations and established policies of the City an d the laws of the State of California, the United States of America, the California Labor Code and Public Contract Code relating to public contracting and prevailing wage laws.
b. To grant to the City without charge, free and clear of encumbrances, any and all easements and rights of way in and to the Property necessary for the Cit y in order that its water, electricity, and/or sewe r lines in or to said Property may be extended.
c. To indemnify, defend with counsel of City’s choice and hold the City free and harmless from all suits, fees, claims, demands, causes of action, costs, los ses, damages, liabilities and expenses (including without limitation attorneys’ fees) incurred by Cit y in connection with (i) any damage done to any utility, public facility or other material or installation of the City on said Property which the Developer or any contractor or subcontractor of the Developer , or any employee of the foregoing, shall do in grading or working upon said Property; or (ii) aris ing or resulting directly or indirectly from any ac t or omission of Developer or Developer’s contractors , or subcontractors, or any employee of the foregoing in connection with the work performed by them in connection with this Agreement, including without limitation all claims relating to injury or death of any person or damage to any property.
d. To construct and improve all public works facilitie s and other improvements described in this Agreement and the improvement plans submitted to th e City of Gilroy in furtherance of this Agreement on file with the City of Gilroy. All cons truction and improvements shall be completed in accordance with all standards established in the Co des, Ordinances, Resolutions, Rules and Regulations and established policies of the City and the laws of the State of California and the United States of America and this agreement, and in accord ance with the grades, plans, and specifications approved by the City Engineer. Developer shall furn ish two good and sufficient bonds, a Payment Bond on a form provided by the City and a Faithful Performance Bond, both of which shall be secured from a surety company admitted to do business in Ca lifornia. Each bond shall set forth a time period for performance by the contractor of its obligation s and the terms and conditions on which the City may obtain the proceeds of the bond.
The Faithful Performance Bond shall be in an amount not less than one hundred percent (100%) of the total estimated amount payable for the improvements described in this Agreement, and shall secure payment to City and the Developer of any loss due t o the default of the contractor or its inability or refusal to perform its contract. The performance bond shall by its terms remain in full force and effect for a period of not less than one year after comple tion of the improvements by Developer and acceptance of the improvements by City, to guarantee the repair and replacement of defective material and faulty workmanship. Upon completion of the improvements by Developer and acceptance of the improvements by City, Developer may substitute for the performance bond securing maintenance described above, a separate maintenance bond issued by an admitted surety in the amount of ten
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Attachment: Attach 3 - Signed PIA Nebbiolo North TR 10558 (3579 : Final Map and PIA No. 2022-01 for Nebiollo North Tract 10558) -4- 9/18/12 4828-0143-8026v3
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percent (10%) of the total contract price of the im provements (provided that the amount of said bond shall not be less than One Thousand Dollars ($1,000) to cover the one-year maintenance period.
The Payment Bond shall be in an amount not less tha n one hundred percent (100%) of the total estimated amount payable for the improvements descr ibed in this Agreement. The Payment Bond shall secure the payment of those persons or entiti es to whom the Developer may become legally indebted for labor, materials, tools, equipment or services of any kind used or employed by the contractor or subcontractor in performing the work, or taxes or amounts to be withheld thereon. The Payment Bond shall provide that the surety will pay the following amounts should the Contractor or a Subcontractor fail to pay the same, plus reasonable attorneys’ fees to be fixed by the court if suit i s brought upon the bond: (1) amounts due to any of the persons named in California Civil Code Section 9100; (2) amounts due under the Unemployment Insura nce Code with respect to work or labor performed for the improvements described in this Ag reement; and (3) any amounts required to be deducted, withheld, and paid over to the Employment Development Department from the wages of employees of the Contractor and Subcontractors purs uant to Section 13020 of the Unemployment Insurance Code with respect to the work and labor. The Payment Bond shall, by its terms, inure to the benefit of any of the persons named in Civil Code Section 3181 so as to give a right of action to those persons or their assigns in any suit brought upon the bond.
Simultaneously with the submission of its building permit application (Site Clearance), the Developer shall submit the following for both the surety that furnishes the Payment Bond and the surety that furnishes the Faithful Performance Bond: (1) a cur rent printout from California Department of Insurance’s website (www.insurance.ca.gov) showing that the surety is admitted to do business in the State; or (2) a certificate from the Clerk of the C ounty of Santa Clara that the surety’s certificate of authority has not been surrendered, revoked, cancel ed, annulled, or suspended or in the event that it has, that renewed authority has been granted.
e. Except as otherwise expressly provided in this Agre ement, all plan check and inspection fees which are payable by Developer pursuant to the attached comprehensive fee schedule are due and payable to the City prior to Council approval of the final map of the subdivision. Upon approval of the record of survey or the building permit covering the real est ate to be improved and before any work is done therein, the Developer shall pay to the City all ot her sums payable by Developer pursuant to the attached comprehensive fee schedule.
f. At all times during the term of this Agreement and until the improvements constructed by Developer are accepted by City, Developer shall, at no cost t o City obtain and maintain (a) a policy of general liability and property damage insurance in the minimum amount of One Million Dollars ($1,000,000), combined single limit for both bodily injury and pr operty damage; (b) workers’ compensation insurance as required by law; and (c) broad form “B uilder’s Risk” property damage insurance with limits of not less than 100% of the estimated value of the improvements to be constructed by Developer pursuant to this Agreement.
All such policies shall provide that thirty (30) da ys written notice must be given in advance to City prior to termination, cancellation or modification. The insurance specified in (a) above shall name City as an additional insured and the insurance spe cified in (c) shall name City as a loss payee, and shall provide that City, although an additional insured or loss payee, may recover for any loss suffered by reason of the acts or omissions of Developer or Developer’s contractors or subcontractors or their respective employees. Developer hereby waives, and Developer shall cause each of its contractors and subcontractors to waive, all rights to recover against City for any loss or damage arising from a cause covered by the insurance required to be carri ed pursuant to this Agreement or actually carried
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by Developer in connection with the work described in this Agreement, and will cause each insurer to waive all rights of subrogation against City in con nection therewith. All policies shall be written o n an occurrence basis and not on a claims made basis and shall be issued by insurance companies acceptable to City. Prior to commencing any work p ursuant this Agreement, Developer shall deliver to City the insurance company’s certificate evidencing the required coverage, or if required by City a copy of the policies obtained.
SECTION 3
That all the provisions of this Agreement and all work to be done pursuant to the terms of this Agreement are to be completed to City’s satisfaction within o ne year from and after the date and year of this Agreement first above written. Developer shall mai ntain such public works facilities and other improvements described in this Agreement at Develop er’s sole cost and expense at all times prior to acceptance by City in a manner which will preclude any hazard to life or health or damage to property.
SECTION 4
That the faithful and prompt performance by the Dev eloper of each and every term and condition contained herein is made an express condition prece dent to the duty of the City to perform any act in connection with this transaction, and the failure, neglect or refusal of the Developer to so perform, or to pay any monies due hereunder when due shall release the City from any and all obligations hereunder and the City, at its election, may enforce the performance of any provision herein, or any right accruing to the City or may pursue any remedy whatsoever it may have under applicable laws or the Codes, Ordinances, Resolutions, Rules and Regulations of the City, in the event of any such default by Developer.
SECTION 5
That this Agreement, including without limitation the general stipulations outlined in Section 6 below, is an instrument affecting the title or possession of the real property and runs with the land. Except a s expressly provided in the second sentence of Item 9 of the general stipulations set forth in Section 6 below (relating to the payment of reimbursement to the or iginal Developer named in this Agreement), all the terms, covenants and conditions herein imposed shal l be binding upon and inure to the benefit of City, Developer, the successors in interest of Developer, their respective successors and permitted assigns and all subsequent fees owners of the Property. The obligations of the Developer under this Agreement shall be the joint and several obligations of each and al l of the parties comprising Developer, if Developer consists of more than one individual and/or entity. Upon the sale or division of the Property, the terms of this Agreement shall apply separately to each parce l and the fee owners of each parcel shall succeed t o the obligations imposed on Developer by this Agreement.
SECTION 6
1. That the following general stipulations shall be completed subject to the approval of the Public Works Director/City Engineer.
2. The Project shall comply with all Tentative Map con ditions and applicable mitigation measures as contained in City Council Resolution 2019-46 (TM 18-02 approval).
3. All work within the public right-of-way shall be subject to the approval of the City Engineer.
4. The Developer shall perform all work in compliance with the City of Gilroy Specifications Standards Design Criteria, Glen Loma Ranch Development Agreem ent and Glen Loma Ranch Specific Plan
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and is subject to all laws of this community by reference. Street improvements and the design of all storm drainage, sewer lines, and all street section s shall be in accordance with City Standards and Glen Loma Ranch Specific Plan, Glen Loma Ranch Development Agreement and Glen Loma Ranch Backbone Plans and shall follow the most current City Master plan for streets and each utility.
5. The developer shall defend, indemnify, and hold har mless the City, its City Council, Planning Commission, agents, officers, and employees from any claim, action, or proceeding against the City or its City Council, Planning Commission, agents, o fficer, and employees to attack, set aside, void, or annul an approval of the City, City Council, Pla nning Commission, or other board, advisory agency, or legislative claim, action, or proceeding against it, and will cooperate fully in the defens e.
This condition is imposed pursuant to California Government Code Section 66474.9.
6. No building permit shall be issued in connection with this project if the Owner or Developer of such development (i) is not in compliance with the City’ s Residential Development Ordinance (City Zoning Ordinance Sections 50.60 et seq.) referred t o as the RDO, any conditions of approval issued in connection with such development or other City requirements applicable to such development; or (ii) is in default under any agreement entered into with the City in connection with such development pursuant to the RDO. The project must also comply with any of condition of exemption granted from the RDO, including but not limited to time limits i n obtaining City approvals and completion of construction of the dwelling units.
7. The City shall be notified at least two (2) working days prior to the start of any construction work and at that time the contractor shall provide a pro ject schedule and a 24-hour emergency telephone number list.
8. At least one week prior to commencement of work, th e developer shall post the site and mail to owners of property within (500’) five hundred feet of the exterior boundary of the project site, to the homeowner associations of nearby residential projects and to the Engineering Division, a notice that construction work will commence on or around the st ated date. The notice shall include a list of contact persons with name, title, phone number and area of responsibility. The person responsible for maintaining the list shall be included. The list shall be current at all times and shall consist of persons with authority to initiate corrective action in the ir area of responsibility. The names of individuals responsible for dust, noise and litter control shall be expressly identified in the notice.
9. If the developer proposes to phase construction wit h building occupancy, the developer shall create, for City Engineer approval prior to first occupancy , a construction staging plan that addresses the ingress and egress location for all construction ve hicles, parking and material storage area separate from occupied residential units.
10. Locate and properly dispose of any wells, septic ta nks and underground fuel storage facilities.
NOTE: The capping of any well will require inspection by the Santa Clara Valley Water District.
11. Schedule the construction of improvements along exi sting public roads so that the work affecting vehicular traffic is completed with a minimum interruption to traffic.
12. All work shall be coordinated so that the existing residents on all adjacent streets have access to their properties.
13. Before construction utilizing combustible materials may proceed, an all-weather access must be provided to within 150 feet of the building site; a nd at least one in service fire hydrant must be
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available within 150 feet of each portion of the si te wherein this construction is to take place.
Location of the fire hydrants will be determined by the Fire Chief.
14. A complete construction schedule, which shall inclu de a detailed phasing plan (including traffic control for each proposed phase), shall be submitted and approved by the City Engineer prior to start of construction. Any deviation from the approved co nstruction schedule and phasing plan shall be coordinated with the City Engineer. Deviating from the approved construction schedule and phasing plan without prior coordination with the City Engin eer may prolong issuance of further building permits.
(a) Upon request by the City Engineer, the developer shall provide information for public outreach purposes, which may include maps and schedules for each phase of construction.
15. One hard copy and electronic copy of the approved/s tamped PG&E Joint Trench Composite Plans shall be submitted to the Engineering Division. Sho uld there be a delay in obtaining the PG&E- approved joint trench plans, the Developer will be allowed to commence joint trench work “at-risk”.
The Developer assumes responsibility for any requir ed redesign, and all costs associated with the redesign and additional city review resulting from the at-risk work completed without PG&E- approved joint trench plans. Design revisions and ultimate joint trench construction shall be completed to the satisfaction of the City Engineer.
16. The developer shall obtain the required Habitat Con servation Plan (HCP) Permit and pay the applicable fees prior to the issuance of a grading permit or improvement plan approval.
17. Site preparation and fill construction shall be con ducted under the observation of, and tested by, a licensed soils or geotechnical engineer. A report shall be filed with the City of Gilroy stating that all site preparation and fill construction meets the re quirements of the geotechnical investigation. This shall be subject to review and approval by the Building Division. [CBC]
18. All grading operations and soil compaction activities shall be per the approved soils report and shall meet with the approval of the City Engineer.
19. New and existing utility lines, appurtenances, and associated equipment, including but not limited to electrical transmission, street lighting, and cable television shall be required to be placed underground. [Municipal Code Section 21, Article V]
20. Construction activity shall be restricted to the period between 7:00 a.m. to 7:00 p.m. Mondays through Fridays, Saturday 9:00 a.m. to 7:00 p.m. No work shall be done on Sundays and City Holidays. The City Engineer will apply additional construction pe riod restrictions, as necessary, to accommodate standard commute traffic along arterial roadways and along school commute routes.
21. Any damage resulting from project construction oper ations to existing city infrastructure on or adjacent to the subject property shall be repaired to the satisfaction of the City Engineer, at the fu ll expense of the developer/contractor. This shall include slurry seal, overlay, street reconstruction, and repair to curb, gutter and sidewalk, driveway appro ach if reasonably deemed warranted by the City Engineer.
22. This project is subject to post-construction stormw ater quality requirements per Section 27D of the Gilroy Municipal Code.
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23. Storm water BMP Operation and Maintenance Agreement (a) Prior to the issuance of any building permit requir ing stormwater management BMPs or as otherwise determined by the City Engineer, the owne r(s) of the site shall enter into a formal written Stormwater BMP Operation and Maintenance Agreement with the City. The City shall record this agreement, against the property or prop erties involved, with the County of Santa Clara and it shall be binding on all subsequent own ers of land served by the storm water management treatment BMPs. The City-standard Storm water BMP Operation and Maintenance Agreement will be provided by Public Works Engineering. (b) This Agreement shall require that the BMPs not be m odified and BMP maintenance activities not alter the designed function of the facility fro m its original design unless approved by the City prior to the commencement of the proposed modification or maintenance activity. (c) This Agreement shall also provide that in the event that maintenance or repair is neglected, or the stormwater management facility becomes a danger to public health or safety, the city shall have the authority to perform maintenance and/or repair work and to recover the costs from the owner.
(d) All on-site stormwater management facilities shall be operated and maintained in good condition and promptly repaired/replaced by the property owner(s), an owners’ or homeowners’ association or other legal entity approved by the City. (e) Any repairs or restoration/replacement and maintena nce shall be in accordance with City- approved plans.
(f) The property owner(s) shall develop a maintenance s chedule for the life of any stormwater management facility and shall describe the maintena nce to be completed, the time period for completion, and who shall perform the maintenance. This maintenance schedule shall be included with the approved Stormwater Runoff Management Plan.
24. Stormwater BMP Inspections will be required for this project and shall adhere to the following:
(a) The property owner(s) shall be responsible for havi ng all stormwater management facilities inspected for condition and function by a knowledgeable third party. (b) Unless otherwise required by the City Engineer or d esignee, stormwater facility inspections shall be done at least twice per year, once in Fall, in preparation for the wet season, and once in Winter. Written records shall be kept of all inspe ctions and shall include, at minimum, the following information:
1. Site address;
2. Date and time of inspection;
3. Name of the person conducting the inspection;
4. List of stormwater facilities inspected;
5. Condition of each stormwater facility inspected;
6. Description of any needed maintenance or repairs; and
7. As applicable, the need for site re-inspection.
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25. Upon completion of each inspection, an inspection r eport shall be submitted to Public Works Engineering no later than October 1st for the Fall report, and no later than March 15th of the following year for the Winter report.
26. A minimum of one exterior monument shall be set. A dditional monuments can be required by the City Engineer or City Surveyor as deemed necessary. Location of monuments shall be tied out prior to work.
27. In accordance with the California Professional Land Surveyors’ Act (Business and Professions Code) Chapter 15 Sections 8771 and 8725, California Penal Code 605, and California Government Code 27581, the developer, their employees, subcontracto rs, and/or any person performing construction activities that will or may disturb an existing roa dway/ street monument, corner stake, or any other permanent surveyed monument shall show all current monuments on the plans and shall ensure that a Corner Record and/or Record of Survey are filed w ith the County Surveyor Office prior to disturbing said monuments. All disturbed or destro yed monuments shall be reset and filed in compliance with Section 8771 at the developer’s sole expense.
28. Bonding as required by section 2.d of this agreement will be accepted for the proposed improvements for an amount of $6,358,191 as shown on the attached Cost Estimate spreadsheet.
29. If there are any reimbursements payable to the Developer, they must be specifically identified in this Agreement. Any such reimbursements shall be payab le to the original Developer named in this Agreement above, and shall not inure to the benefit of any subsequent owners of all or any portion of the Property. All reimbursements payable to Developer shall be subject to the City’s reimbursement policies and ordinances in effect from time to time, including without limitation any expiration dates identified in such policies and ordinances. Such re imbursement shall be solely contingent upon the availability of the City’s Traffic Impact Fee Funds and in no case shall the reimbursement be paid beyond ten (10) years after the execution of the Ag reement. In addition to any other conditions, requirements and limitations set forth in the City’s reimbursement policies and ordinances from time to time, (i) in no event shall any reimbursements b e payable to Developer if City determines in its sole and absolute discretion from time to time that there are not sufficient reserves then on hand in the specific reimbursement fund from which Developer’s reimbursement is payable, over and above any amounts anticipated to be required to be expend ed from such reimbursement fund, which reserves, at a minimum, are equal to at least half of the remaining average yearly anticipated expenditures of such reimbursement fund as determin ed by City from time to time; (ii) City may, in its sole and absolute discretion, make partial reim bursement payments to Developer in yearly increments, as determined by City; and (iii) City m ay defer payments in any given year if projects deemed by City to be of high importance are determined by City, in its sole and absolute discretion, to be warranted or necessary, and the funds in such reimbursement fund are designated by the City for use on such projects of high importance.
30. Access from Miller Ave will be allowed only for large or heavy equipment that require large trailers or vehicles delivering construction materials at specified times with limited duration to enter and exit the site. Traffic control onsite and offsite will be required with no stopping, staging, or stacking on Miller Avenue or any portion of public right of way. Access from Miller Avenue will be suspended indefinitely if the traffic provisions are not met.
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Attachment: Attach 3 - Signed PIA Nebbiolo North TR 10558 (3579 : Final Map and PIA No. 2022-01 for Nebiollo North Tract 10558)
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Attachment: Attach 3 - Signed PIA Nebbiolo North TR 10558 (3579 : Final Map and PIA No. 2022-01 for Nebiollo North Tract 10558)
LEGAL DESCRIPTION
Real property in the City of Gilroy , County of Santa Clara, State of California, described as follows:
PARCEL A, AS SHOWN ON THE MAP ENTITLED "TRACT 10520, NEBBIOLO, MALVASIA & THE GLEN", RECORDED SEPTEMBER 30, 2020, IN BOOK 933, OF MAPS AT PAGES 13-26, SANTA CLARA COUNTY RECORDS.
APN: 808-18-031
EXHIBIT A
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/3 /4 /5 /6 /5 /4 /7 /4 /3
/8 /9 /10 /11 /12 /11 /13 □ /12
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Attachment: Attach 3 - Signed PIA Nebbiolo North TR 10558 (3579 : Final Map and PIA No. 2022-01 for Nebiollo North Tract 10558) 11/1/2021 3:26 PM
* Impact fees are subject to increase July 1 of every year, and will be assessed at the time of payment.
ENCOMPASS NO: E1 21030008 Revised:
DATE: 11/1/2021 Revision By:
NUMBER:
PROJECT LOCATION:
PARCEL NUMBER:
OWNER/DEVELOPER:
MAILING ADDRESS:
TELEPHONE NO:
PREPARED BY:
Account No. Key Code Fee: Credits: Amount Due:
Account Description: Paid on Invoice #
100-2601-0000-3625 4904 $10,548.20 $10,548.20 Special P ublic Works Serv 100-2601-0000-3605 4702 $540,388.04 $25,000.00 $515,388 .04 Eng Plan Check & Insp 03/16/2021 #21570309 420-2600-0000-3660 4501 $18,057.48 $18,057.48 Storm Dev elopment Fee 432-2600-0000-3660 3301 $0.00 $0.00 Str Tree Development Fee 433-2600-0000-3660 4905 $846,411.00 $846,411.00 Traffic Impact Fee 435-2600-0000-3660 4509 $862,692.00 $862,692.00 Sewer D evelopment Fee 436-2600-0000-3660 4510 $296,341.00 $296,341.00 Water D evelopment Fee 440-2600-0000-3660 4515 $1,471,186.00 $1,471,186.00 Pub lic Facility Fee 720-0433-0000-3620 2202 $0.00 $0.00 Const Water Use Fee 801-2601-PWD0-3899 4703 $0.00 $0.00 Reimbursements
801-2601-PWD0-3899 4703 $0.00 $0.00 Other Reimbursements Fee Total $4,045,623.72 Total $4,020,623.72
Payment Bond Amount for all improvements $6,358,191
Performance Bond Amount for all improvements $6,358, 191 GLR Tract 10558 - Nebbiolo II
808-18-031
Tri Pointe Homes
2700 Camino Ramon, Suite 130 San Ramon, CA 94583
CITY OF GILROY
PUBLIC WORKS DEPARTMENT
COST ESTIMATE
EFFECTIVE 7/1/2021
Revision Number:
925-804-2278
W. Hill
ENGINEERING DIVISION
EXHIBIT C - FEES
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Attachment: Attach 3 - Signed PIA Nebbiolo North TR 10558 (3579 : Final Map and PIA No. 2022-01 for Nebiollo North Tract 10558) 11/1/2021 3:26 PM
ENCOMPASS NO: E1 21030008
DATE:
NUMBER:
PROJECT LOCATION:
PARCEL NUMBER:
OWNER/DEVELOPER:
MAILING ADDRESS:
TELEPHONE NO:
PREPARED BY:
FINAL ENGINEERING
COST SCHEDULE TYPE: COST ESTIMATE ? y PLAN CHECK ? N
DEFER PUBLIC FACILITY FEE ? TO PERMIT ? N TO FINAL ? N DEFER SEWER, WATER, TRAFFIC FEES ? TO PERMIT ? N TO FINAL ? N NOTE: This Preliminary Cost Schedule is an estimate and will be adjusted to the rates in effect at the time permits are issued.
Site Information: Gross Acres: Lots/Parcels: Units: Sq Ft:
Residential-Low ? 31.080 76 67
Residential-High ? 0.000 0 0
Commercial-Low ? 0.000 0 0
Commercial-High ? 0.000 0 0
Industrial-General ? 0.000 0 0
Industrial-Warehouse ? 0.000 0 0
Assembly Hall? 0.000 0 0
Common Area? 0.000 0
Commercial/Industrial Allocations: Sewer GPD: Water GPD:
0 0
Reimbursements and credits:
Front Footage/Square Footage Charges
Street Tree FF: Water FF: Sewer FF: Storm FF: Const Wat er Acres to be Developed:
0.0 0.0 0.0 0.0 0.000
Pavement SF: Median SF: Sidewalk SF: Curb/Gutter FF: Co nstruction Water FF:
0.0 0.0 0.0 0.0 0.0
SPECIAL PUBLIC WORKS SERVICES 100-2601-0000-3625 $10,548.20 Maps:
Final Map $1,755.00 + $15.70 / lot y $2,948.20 Fee ID N0-FI NALM Parcel Map $2,035.00 + $630.00 / lot N $0.00 Fee ID N0-PARC ELM Re-assessment Map (Assessment District Parcels)
$1,710.00 + $630.00 / lot N $0.00 Fee ID N-ASSESM
Administration Fees:
(Cost Schedules, Agreements, R/W Reviews, Additional Map Reviews and Other Misc. Services) 40 hr Misc Services $190.00 / hr. Y $7,600.00 Fee ID N-MIS C Special Staff Analysis
0 hr Special Analysis $150.19 / hr. N $0.00
925-804-2278
W. Hill
GLR Tract 10558 - Nebbiolo II
808-18-031
Tri Pointe Homes
INCENTIVE AGREEMENT ONLY ?
1-Nov-2021
2700 Camino Ramon, Suite 130 San Ramon, CA 94583
CITY OF GILROY
COMMUNITY DEVELOPMENT DEPARTMENT
ENGINEERING DIVISION
COST ESTIMATE
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ENGINEERING PLAN CHECK & INSPECTION 100-2601-0000-3605 COST ESTIMATE $540,388.04 ACTUAL COST OF PUBLIC IMPROVEMENTS FINAL ENGINEERING PLAN CHECK $0.00 Additional Plan Review After First Three Submittals or Review of Changes, Additions or Revisions to Approved Plans 0 hr Additional Plan Review $150.19 / hr. N $0.00 Fee ID N 0-GRADINS (2 Hour Minimum)
Re-Inspection Fee
0 hr Re-Inspection $135.00 / hr. N $0.00 Fee ID N0-GRADINS Inspections outside of normal business hours
0 hr Inspection $475.00 + $160.00 / hr. N $0.00 Fee ID N0-GR ADINS
COST ACTUAL
(Based on total cost of improvements) ESTIMATE COST DIFFERENCE ($540,388.04) Estimated Cost of Improvements $6,358,191 $0 Fee ID N0-PCKINSP
12.6% $0 $100,000 Y $12,600.00 Y $0.00
10.5% $100,000 $200,000 Y $10,500.00 Y $0.00
8.4% over $200,000 Y $517,288.04 Y $0.00
Payment Bond Amount for all improvements $6,358,191
Performance Bond Amount for all improvements $6,358, 191
IMPACT FEES
Storm Drain Impact Fee 420-2600-0000-3660 $18,057.48
a.Residential-Low $581.00 / acre Y $18,057.48 Fee ID N0-SD-LD b.Residential-High $913.00 / acre Y $0.00 Fee ID N0-SD-HD c.Commercial $1,574.00 / acre Y $0.00 Fee ID N0-SD-C
d.Industrial $1,162.00 / acre Y $0.00 Fee ID N0-SD-I
e.Assembly Hall $581.00 / acre Y $0.00 Fee ID N0-SD-AH
Street Tree Fee 432-2600-0000-3660 $0.00
a.City Planting and Replacement
$3.15 / f.f. x N 0.0 = $0.00 Fee ID N0-TREEPLT
b.Inspection and Replacement
$0.42 / f.f. x Y 0.0 = $0.00 Fee ID N0-TREEINS
Traffic Impact Fee 433-2600-0000-3660 $846,411.00
a.Residential-Low $12,633.00 / unit Y $846,411.00 Fee ID N1-TRAF-LD b.Residential-High $10,241.00 / unit Y $0.00 Fee ID N2-TR AF-HD c.Commercial-Low Traffic
(< 10.75 trips/1000 sf) $13,978.00 / k.s.f. Y $0.00 Fee I D N3-TRAF-CL d.Commercial-High Traffic
(>= 10.75 trips/1000 sf) $28,235.00 / k.s.f. Y $0.00 Fee ID N3-TRAF-CH e.Industrial-General $5,539.00 / k.s.f. Y $0.00 Fee ID N4 -TRAF-IG f.Industrial-Warehouse $4,015.00 / k.s.f. Y $0.00 Fee ID N4-TRAF-IW At time of Improvement Plan/Final Map submittal 40% of fee is due for Plan Check. Remainder 60% due prior to submittal of Final Map for Council approval
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Sewer Impact Fee 435-2600-0000-3660 $862,692.00
a.Residential-Low $12,876.00 / unit Y $862,692.00 Fee ID N1-SS-LD b.Residential-High $6,967.00 / unit Y $0.00 Fee ID N2-SS-HD c.Commercial/Industrial $4,075.00 / cgpd Y $0.00 Fee ID N 5-SS-C/I Water Impact Fee 436-2600-0000-3660 $296,341.00
a.Residential-Low $4,423.00 / unit Y $296,341.00 Fee ID N1-WATR-LD b.Residential-High $1,789.00 / unit Y $0.00 Fee ID N2-WATR-HD c.Commercial/Industrial $6,933.00 / kgpd Y $0.00 Fee ID N 5-WTR-C/I Public Facilities Impact Fee 440-2600-0000-3660 $1,471,186.00 a.Residential-Low $21,958.00 / unit Y $1,471,186.00 Fee ID N1-PF-LD b.Residential-High $18,474.00 / unit Y $0.00 Fee ID N2-PF -HD c.Commercial $3,309.00 / k.s.f. Y $0.00 Fee ID N3-PF-C
d.Industrial $1,466.00 / k.s.f. Y $0.00 Fee ID N4-PF-I
Water User Fee (Construction) 720-0433-0000-3620 Y $0.00 $3.00 / f.f. $0.00 Fee ID N0-CONWTFF
plus
$182.73 / a.c. $0.00 Fee ID N0-CONWTAC
FRONT FOOT CHARGES (Used to charge and reimburse fees for existing infrastructure) Water 801-2601-PWD0-3899 $0.00
Half Pipe Lineal Footage
6 inch Main $39.00 / LF x N 0.0 = $0.00 Fee ID N-WR06-1/2 8 inch Main $41.00 / LF x N 0.0 = $0.00 Fee ID N-WR08-1/2 10 inch Main $47.00 / LF x N 0.0 = $0.00 Fee ID N-WR10-1/2 12 inch Main $52.00 / LF x N 0.0 = $0.00 Fee ID N-WR12-1/2 14 inch Main $57.00 / LF x N 0.0 = $0.00 Fee ID N-WR14-1/2 16 inch Main $62.00 / LF x N 0.0 = $0.00 Fee ID N-WR16-1/2 18 inch Main $68.00 / LF x N 0.0 = $0.00 Fee ID N-WR18-1/2 20 inch Main $76.00 / LF x N 0.0 = $0.00 Fee ID N-WR18-1/2 24 inch Main $82.00 / LF x N 0.0 = $0.00 Fee ID N-WR24-1/2 30 inch Main $91.00 / LF x N 0.0 = $0.00 Fee ID N-WR30-1/2 36 inch Main $106.00 / LF x N 0.0 = $0.00 Fee ID N-WR36-1/2 Water Mains - including fire hydrants, valves, valve boxes and other pertinences.
Developer responsibility is up to and including 12" mains The Half Pipe schedule is used to determine the front footage reimbursement to former developers for infrastructure previously installed along the front footage of the development.
The Full Pipe schedule is used to determine the oversizing reimbursement to the developer for installing water, sewer, and storm main extensions to sizes required by each master plan that are greater than the sizes required by the development. The oversized portion is the difference between the master planned size for the main and the greater of the main size required by the development or the developer’s minimum responsibility for each main.
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Attachment: Attach 3 - Signed PIA Nebbiolo North TR 10558 (3579 : Final Map and PIA No. 2022-01 for Nebiollo North Tract 10558) 11/1/2021 3:26 PM
Front Foot Charges Continued (Used to charge and rei mburse fees for existing infrastructure) Sewer 801-2601-PWD0-3899 $0.00
Half Pipe Lineal Footage
6 inch Main $73.00 / LF x N 0.0 = $0.00 Fee ID N-SS06-1/2 8 inch Main $75.00 / LF x N 0.0 = $0.00 Fee ID N-SS08-1/2 10 inch Main $81.00 / LF x N 0.0 = $0.00 Fee ID N-SS10-1/2 12 inch Main $83.00 / LF x N 0.0 = $0.00 Fee ID N-SS12-1/2 15 inch Main $87.00 / LF x N 0.0 = $0.00 Fee ID N-SS15-1/2 18 inch Main $93.00 / LF x N 0.0 = $0.00 Fee ID N-SS18-1/2 21 inch Main $102.00 / LF x N 0.0 = $0.00 Fee ID N-SS21-1/2 24 inch Main $106.00 / LF x N 0.0 = $0.00 Fee ID N-SS24-1/2 27 inch Main $122.00 / LF x N 0.0 = $0.00 Fee ID N-SS27-1/2 30 inch Main $144.00 / LF x N 0.0 = $0.00 Fee ID N-SS30-1/2 33 inch Main $158.00 / LF x N 0.0 = $0.00 Fee ID N-SS33-1/2 36 inch Main $178.00 / LF x N 0.0 = $0.00 Fee ID N-SS36-1/2 39 inch Main $212.00 / LF x N 0.0 = $0.00 Fee ID N-SS39-1/2 42 inch Main $265.00 / LF x N 0.0 = $0.00 Fee ID N-SS42-1/2 Street Improvements 801-2601-PWD0-3899 $0.00
Pavement, Sidewalks & Medians
Square Footage
AC/Bike path: base $2.55 / SF x N 0.0 = $0.00 Fee ID N-STR- ACB AC/Bike path: pvmt $2.50 / SF x N 0.0 = $0.00 Fee ID N-STR- ACP Sidewalk: new $9.75 / SF x N 0.0 = $0.00 Fee ID N-STR-S/W Sidewalk: replace $13.25 / SF x N 0.0 = $0.00 Fee ID N-STR- S/WR Resurfacing $2.55 / SF x N 0.0 = $0.00 Fee ID N-STR-RESU Landscaped Median $20.35 / SF x N 0.0 = $0.00 Fee ID N-STR- LANM Hardscaped Median $11.63 / SF x N 0.0 = $0.00 Fee ID N-STR- HARD Traffic Signals (equipment only)
% of Lump Sum
Traffic Signal-3 leg $130,200.00 / LS x N 0% = $0.00 Fee ID N-STR-TS3L Traffic Signal-4 leg $158,500.00 / LS x N 0% = $0.00 Fee ID N-STR-TS4L Curb and Gutter Lineal Footage
Curb/Gutter: new $25.85 / LF x N 0.0 = $0.00 Fee ID N-STR-C /G Curb/Gutter: replace $33.40 / LF x N 0.0 = $0.00 Fee ID N-S TR-C/GR Curb Ramps $1,057.63 / LF x N 0.0 = $0.00 Fee ID N-STR-CR Sewer Mains - including manhole and other pertinences.
Developer responsibility is up to and including 12" mains.
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Attachment: Attach 3 - Signed PIA Nebbiolo North TR 10558 (3579 : Final Map and PIA No. 2022-01 for Nebiollo North Tract 10558) 11/1/2021 3:26 PM
Front Foot Charges Continued (Used to charge and rei mburse fees for existing infrastructure) Storm Drain 801-2601-PWD0-3899 $0.00
Half Pipe Lineal Footage
18 inch Main $63.00 / LF x N 0.0 = $0.00 Fee ID N-SD18-1/2 21 inch Main $69.00 / LF x N 0.0 = $0.00 Fee ID N-SD21-1/2 24 inch Main $70.00 / LF x N 0.0 = $0.00 Fee ID N-SD24-1/2 27 inch Main $82.00 / LF x N 0.0 = $0.00 Fee ID N-SD27-1/2 30 inch Main $89.00 / LF x N 0.0 = $0.00 Fee ID N-SD30-1/2 33 inch Main $91.00 / LF x N 0.0 = $0.00 Fee ID N-SD33-1/2 36 inch Main $95.00 / LF x N 0.0 = $0.00 Fee ID N-SD36-1/2 42 inch Main $99.00 / LF x N 0.0 = $0.00 Fee ID N-SD42-1/2 48 inch Main $117.00 / LF x N 0.0 = $0.00 Fee ID N-SD48-1/2 54 inch Main $137.00 / LF x N 0.0 = $0.00 Fee ID N-SD54-1/2 60 inch Main $158.00 / LF x N 0.0 = $0.00 Fee ID N-SD60-1/2 66 inch Main $179.00 / LF x N 0.0 = $0.00 Fee ID N-SD66-1/2 72 inch Main $200.00 / LF x N 0.0 = $0.00 Fee ID N-SD72-1/2 78 inch Main $216.00 / LF x N 0.0 = $0.00 Fee ID N-SD78-1/2 84 inch Main $231.00 / LF x N 0.0 = $0.00 Fee ID N-SD84-1/2 90 inch Main $246.00 / LF x N 0.0 = $0.00 Fee ID N-SD90-1/2 96 inch Main $261.00 / LF x N 0.0 = $0.00 Fee ID N-SD96-1/2 All deferred and/or estimated fees will be adjusted to the rates in effect at the time fees are paid.
The undersigned agrees to provide actual construction costs for recalculation of fees and pay any underestimated fees prior to final acceptance. If the recalculated fees are less than the estimate, the City of Gilroy will refund the difference.
Additional plan review required by changes, additions or revisions to approved plans, reinspections and inspections outside of normal business hours will be billed as shown in the City of Gilroy's most current comprehensive fee schedule at the hourly rates in effect at the time of inspection.
Accepted by:
Print Name:
Date:
Storm Mains - including manholes, catch basins and other pertinences.
Developer responsibility is up to and including 24" mains.
NOTE:
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Attachment: Attach 3 - Signed PIA Nebbiolo North TR 10558 (3579 : Final Map and PIA No. 2022-01 for Nebiollo North Tract 10558) 11/1/2021 3:26 PM
OVERSIZING SCHEDULE (Used to reimburse oversized infrastructure) Total Oversized Water, Sewer and Storm Drain Main R eimbursement $0.00 Total Oversized Water Main Reimbursement (Developer is responsible for up to and including 12" mains) $0.00 Oversized Minimum 12" main Oversized
Full Pipe $/foot Full Pipe $/foot Oversized Footage Re imbursement 14 inch Main $114.00 - $104.00 x 0.0 = $0.00 N
16 inch Main $124.00 - $104.00 x 0.0 = $0.00 N
18 inch Main $135.00 - $104.00 x 0.0 = $0.00 N
20 inch Main $151.00 - $104.00 x 0.0 = $0.00 N
24 inch Main $164.00 - $104.00 x 0.0 = $0.00 N
30 inch Main $182.00 - $104.00 x 0.0 = $0.00 N
36 inch Main $211.00 - $104.00 x 0.0 = $0.00 N
Total Oversized Sewer Main Reimbursement (Developer is responsible for up to and including 12" mains) $0.00 Oversized Minimum 12" main Oversized
Full Pipe $/foot Full Pipe $/foot Oversized Footage Re imbursement 15 inch Main $174.00 - $166.00 x 0.0 = $0.00 N
18 inch Main $186.00 - $166.00 x 0.0 = $0.00 N
21 inch Main $204.00 - $166.00 x 0.0 = $0.00 N
24 inch Main $211.00 - $166.00 x 0.0 = $0.00 N
27 inch Main $244.00 - $166.00 x 0.0 = $0.00 N
30 inch Main $287.00 - $166.00 x 0.0 = $0.00 N
33 inch Main $315.00 - $166.00 x 0.0 = $0.00 N
36 inch Main $356.00 - $166.00 x 0.0 = $0.00 N
39 inch Main $423.00 - $166.00 x 0.0 = $0.00 N
42 inch Main $529.00 - $166.00 x 0.0 = $0.00 N
Total Oversized Storm Drain Main Reimbmnt (Developer is responsible for up to and including 24" mains) $0.00 Oversized Minimum 24" main Oversized
Full Pipe $/foot Full Pipe $/foot Oversized Footage Re imbursement 27 inch Main $164.00 - $140.00 x 0.0 = $0.00 N
30 inch Main $177.00 - $140.00 x 0.0 = $0.00 N
33 inch Main $182.00 - $140.00 x 0.0 = $0.00 N
36 inch Main $189.00 - $140.00 x 0.0 = $0.00 N
42 inch Main $197.00 - $140.00 x 0.0 = $0.00 N
48 inch Main $233.00 - $140.00 x 0.0 = $0.00 N
54 inch Main $273.00 - $140.00 x 0.0 = $0.00 N
60 inch Main $315.00 - $140.00 x 0.0 = $0.00 N
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Attachment: Attach 3 - Signed PIA Nebbiolo North TR 10558 (3579 : Final Map and PIA No. 2022-01 for Nebiollo North Tract 10558) 11/1/2021 3:26 PM
Oversizing Schedule Continued (Used to reimburse ove rsized infrastructure) Oversized Storm Drain Main Reimbmnt Continued
Oversized Minimum 24" main Oversized
Full Pipe $/foot Full Pipe $/foot Oversized Footage Re imbursement 66 inch Main $357.00 - $140.00 x 0.0 = $0.00 N
72 inch Main $399.00 - $140.00 x 0.0 = $0.00 N
78 inch Main $431.00 - $140.00 x 0.0 = $0.00 N
84 inch Main $461.00 - $140.00 x 0.0 = $0.00 N
90 inch Main $492.00 - $140.00 x 0.0 = $0.00 N
96 inch Main $522.00 - $140.00 x 0.0 = $0.00 N
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Attachment: Attach 3 - Signed PIA Nebbiolo North TR 10558 (3579 : Final Map and PIA No. 2022-01 for Nebiollo North Tract 10558)
City of Gilroy
STAFF REPORT
Agenda Item Title: Approval of a Notice of Acceptance of Completion for the W. 10th Crossing at Orchard Drive Project No. 21-PW-269 and Approval of a Final Contract with Golden Bay Construction in the Amount of $134,621.16
Meeting Date: January 24, 2022
From: Jimmy Forbis, City Administrator
Department: Public Works Department
Submitted By: Daryl Jordan
Prepared By: Daryl Jordan
Faranak Mahdavi
Strategic Plan Goals
☐ Develop a Financially
Resilient Organization
☐ Ensure Neighborhood
Equity from City
Services
☐ Promote Economic
Development
Activities
☐ Promote Safe,
Affordable Housing for All
Maintain and Improve
City Infrastructure
RECOMMENDATION
a) Approve a notice of acceptance of completion for the W. 10th Crossing at Orchard Drive Project No. 21-PW-269.
b) Approve a reduced final contract in the amount of $134,621.16 with Golden Bay Construction, Inc. for the W. 10th Crossing at Orchard Drive Project No. 21-PW- 269.
EXECUTIVE SUMMARY
The Public Works Department has completed the construction of the W. 10th Crossing at Orchard Drive Project and has reviewed and approved all project documentation. The
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project consisted of installing a Rectangular Rapid Flashing Beacon (RRFB), curb extensions and refuge areas, striping and installation of flexible posts, buffered bike lanes with green pavement surface, and other incidentals per plans and specifications for a total construction cost of $134,621.16.
Staff recommends the City Council’s approval of the Notice of Acceptance of Completion for the W. 10th Crossing at Orchard Drive Project No. 21-PW-269.
BACKGROUND
On June 7, 2021, City Council awarded a contract to Golden Bay Construction, Inc. for the construction of the W. 10th Crossing at Orchard Drive Project in the amount of $137,177.50 with a project contingency of $13,717.50 (10%) for a maximum project expenditure of $150,895 and authorized the City Administrator to execute the contract and associated documents.
ANALYSIS
The project scope of work included installing an RRFB, curb extensions and refuge areas, striping and installation of flexible posts, and buffered bike lanes with the green pavement surface.
During construction, only one Construction Change Order (CCO) Number 1/Final Balancing Change Order was executed for the project.
• CCO # 1- Final Balancing Change Order: This change order adjusted the contract amount by identifying field-verified bid quantities that differ from the contractor’s bid. The adjusted quantities resulted in a credit of $3,638.75.
Also, staff directed the contractor to re-frame/realign the island and passageway on the northeast corner of 10th Street and Orchard Drive to meet ADA compliance.
The cost of additional asphalt removal/replacement resulted in the contract increase of $1,082.41.
The contractor was granted two additional working days as part of this change order due to material and labor shortages caused by the COVID-19 pandemic.
This change order resulted in a net decrease in the contract value by $2,556.34, which resulted in a total construction cost of $134,621.16. None of the $13,717.50 contingency funds were used for this project.
Description Amount
Construction Contract Award $137,177.50
CCO Number 1 – Final Balancing Change Order ($2,556.34)
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Final Construction Cost $134,621.16
Design Cost $12,000
Total Design and Construction Cost $146,621.16
50% Cost Sharing between City and GUSD $73,310.58
The overall construction schedule for the Project was 30 working days. The first working day of the contract was July 6, 2021. Contract work was substantially completed within the project schedule.
Project documentation has been completed and all punch-list items have been addressed by the contractor. Staff recommends the City Council approve the Notice of Acceptance of Completion for the W. 10th Crossing at Orchard Drive Project No. 21-PW- 269.
FISCAL IMPACT/FUNDING SOURCE
The total project construction cost was $134,621.16. This amount consists of the reduction of $2,556.34 from the awarded contract amount of $137,177.50. None of the project’s contingency funds were used.
The construction of this project was funded from Fund 211- Gas Tax 2107. The total cost of the project including design and construction is $146,621.16. The cost-sharing between the City and the Gilroy Unified School District (GUSD) will result in each party contributing $73,310.58 (50% of the total cost of the project).
NEXT STEP
Staff will invoice the GUSD for their 50% share of project costs in the amount of $73,310.58.
Attachments:
1. Notice of Completion
2. Change Order No. 1- Final Balancing Change Order
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Attachment: Notice of Completion (3584 : NOC W. 10th Crossing at Orchard Drive Project)
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Attachment: Notice of Completion (3584 : NOC W. 10th Crossing at Orchard Drive Project)
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Attachment: Notice of Completion (3584 : NOC W. 10th Crossing at Orchard Drive Project) 1 To
contract for: City Project No.:
Contractor: Contract Date:
Description of Work
2 Cost Percentage Initial
Original Contract Price $137,177.50
Previous Change Orders $0.00 N/A JO
This Change Order ($2,556.34)
Total Change Orders to Date ($2,556.34) -1.86% JO
Revised Contract Price $134,621.16
By: Date:
RECOMMENDED BY:
Project Engineer/Construction Manager Date
ACCEPTED BY:
Senior CIP Engineer Date
City Engineer Date
City Administrator Date
Interim City Clerk Date
City of Gilroy
This order shall become effective when it has been signed by the City Clerk, City Administrator, City Engineer, Senior CIP Engineer, and Contractor. All copies forwarded to Contractor for signature shall be returned to the City of Gilroy properly filled out. Upon acceptance by the City, the Contractor’s copy will be returned as their authority to proceed with the work.
All requirements of the original Contract Documents shall apply to the above work except as specifically modified by this Change Order. The contract time shall not extend unless expressly provided for in this Change Order.
By signing this Change Order, Contractor acknowledges and agrees that the adjustments to cost and time contained herein are in full satisfaction and accord, and are accepted as payment in full, for any and all costs and expenses associated with this Change Order, (the "Extra Work"), including but not limited to labor, materials, overhead and profit, delay, disruption, loss of efficiency and any and all other direct and/or indirect costs or expenses associated with the Extra Work and hereby waives any right to claim any further cost and time impacts at any time during and after completion of the Contract associated with the Extra Work.
I (We) agree to make the above change subject to the
terms of this Change Order for a NET DECREASE of
$2,556.34.
CONTRACTOR
Change in working time granted by this change order: Working Days W. 10th Crossing at Orchard Drive 21-PW-269
CHANGE ORDER NO.
Final Balancing Change Order
Phone (408) 846-0451
7351 Rosanna St., Gilroy, CA 95020
Public Works Department - Engineering Division
Golden Bay Construction, Inc.
6/14/2021Golden Bay Construction
► All Extra Work authorized under this Change Order
must be billed separately from the original contract. All bills for work done under this Change Order shall
reference this Change Order No. 1.
This final balancing change orde
r adjusts the contract amount b y identifying field-verified bid quantities that diffe r from the Contractor's bid. See Attachment A for descriptions and adjusted quantities resulting in credit of $3,638.75.
In response to RFI#3, staff directed contractor to re-frame/realign island & passageway on NE corner to meet ADA compliance. Cost of additional asphalt removal/replacement paid per contract bid items and measured in field. Additional cost is for labor. See Attachment B for details resulting in contract increase of $1,082.41.
Total Change CCO #1 = -$3,638.75 + $1,082.41 = -$2,556.34 In addition, staff and Contractor agreed on two additional working days due to labor and material shortages caused by Covid -
19. 11/16/2021
11/16/2021
11/16/21
DocuSign Envelope ID: 98D4F6E9-A79E-4FB3-B5EF-936D92FF1489 11/17/2021
11/17/2021
11/22/2021
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Attachment: Change Order No. 1- Final Balancing Change Order (3584 : NOC W. 10th Crossing at Orchard Drive Project) No. Contract Item Unit Unit Cost Bid Quantity Extension Actual Quantity Extension Change in Qty Extension 1 Mobilization LS 13,000.00$ 1.0 13,000.00$ 1.00 13,000.00$ 0.00 0.00 2 Traffic Control LS 18,089.00$ 1.0 18,089.00$ 1.00 18,089.00$ 0.00 0.00 3W a t e r Pollution Control LS 1,500.00$ 1.0 1,500.00$ 1.00 1,500.00$ 0.00 0.00 4 Remove Concrete Sidewalk and Ramp SF 6.00$ 291.0 1,746.00$ 306.00 1,836.00$ 15.00 90.00 5 Remove Concrete Curb and Gutter LF 12.00$ 87.0 1,044.00$ 48.00 576.00$ (39. 00) (468.00)
6 Remove Thermoplastic Striping LF 3.50$ 1551. 0 5,428.50$ 1567.00 5,484.50$ 16.00 56.00 7 Remove Thermoplastic Marking SF 4.00$ 191.0 764.00$ 201.00 804.00$ 10. 00 40.00
8 Remove AC Pavement CY 175.00$ 8.5 1,487.50$ 14.32 2,506.00$ 5.82 1,018.50 9H M A (Type A) TON 225.00$ 8.5 1,912.50$ 12.30 2,767.50$ 3.80 855.00 10 Minor Concrete (Island) CY 400.00$ 12.0 4,800.00$ 7.41 2,964.00$ (4.59) (1,836.00) 11 Minor Concrete (Flush Refuge Pad) CY 400.00$ 4.0 1,600.00$ 1.97 788.00$ (2. 03) (812.00)
12 Minor Concrete (A3‐6R) CY 3,800.00$ 2.5 9,500.00$ 2. 54 9,652.00$ 0.04 152.00 13 Minor Concrete (Curb Ramp Case C) EA 6,200.00$ 2.0 12,400.00$ 2.00 12,400.00$ 0.00 0.00 14 Dectactable Warning Surface (DWS) SF 50.00$ 99.0 4,950.00$ 96.00 4,800.00$ (3.00) (150.00) 15 Paint Curb (2‐coats) LF 3.50$ 188.0 658.00$ 218.00 763.00$ 30. 00 105.00
16 Class 1 Flexible Post ‐ Type E EA 115.00$ 14.0 1,610.00$ 13.00 1,495.00$ (1.00) (115.00) 17 Furnish Single‐Sheet Aluminium Sign Panel (0.080" Unframed) SF 23.00$ 53.0 1,219.00$ 40. 00 920.00$ (13. 00) (299.00) 18 Install Sign (Strap and Saddle Bracket Method) EA 173.00$ 2.0 346.00$ 2.00 346.00$ 0. 00 0.00
19 Roadside Sign EA 357.00$ 4.0 1,428.00$ 4.00 1,428.00$ 0.00 0.00 20 Remove Roadside Sign EA 230.00$ 2.0 460.00$ 2.00 460.00$ 0. 00 0.00
21 Remove Sign Panel EA 115.00$ 2.0 230.00$ 2.00 230.00$ 0. 00 0.00
22 Relocate Sign Panel EA 173.00$ 1.0 173.00$ 3.00 519.00$ 2. 00 346.00
23 Detail 22 Thermoplastic Traffic Stripe (Enhanced Wet Ni ght Visibility) LF 5.75 $ 179.0 1,029.25$ 178.00 1,023.50$ (1.00) (5.75) 24 Detail 27B Thermoplastic Traffic Stripe (Enhanced Wet Night Visibility) LF 2.25 $ 551.0 1,239.75$ 710.00 1,597.50$ 159.00 357.75 25 Detail 38 Thermoplastic Traffic Stripe (Enhanced Wet Night Visibility) LF 3.50 $ 403.0 1,410.50$ 225.00 787.50$ (178. 00) (623.00)
26 Detail 39 Thermoplastic Traffic Stripe (Enhanced Wet Night Visibility) LF 2.25 $ 797.0 1,793.25$ 686.00 1,543.50$ (111.00) (249.75) 27 Detail 39A Thermoplastic Traffic Stripe (Enhanced Wet Ni ght Visibility) LF 2.25 $ 817.0 1,838.25$ 822.00 1,849.50$ 5.00 11.25 28 Thermoplastic Pavement Marking (Enhanced Wet Night Visibility) SF 10.25$ 618.0 6,334.50$ 615.00 6,303.75$ (3.00) (30.75) 29 Preformed Green Thermoplastic Bike Lane Marking SF 16.00$ 600.0 9,600.00$ 480.00 7,680.00$ (120.00) (1,920.00) 30 Pavement Marker (Retroreflective) EA 5.75$ 102.0 586.50$ 74.00 425.50$ (28. 00) (161.00)
31 Rectangular Rapid Flashing Beacon Assembly LS 29,000.00$ 1.0 29,000.00$ 1.00 29,000.00$ 0.00 0.00 Credit for Qua ntity Adjustments (3,638.75)
Attachment A ‐ CCO #1 Quantity Adjustments
Bid
Field Measured Change
DocuSign Envelope ID: 98D4F6E9-A79E-4FB3-B5EF-936D92FF1489
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Attachment: Change Order No. 1- Final Balancing Change Order (3584 : NOC W. 10th Crossing at Orchard PCO #002.1
To: City of Gilroy
Attn: Julie Oates
7351 Rosanna Street
Gilroy, CA 95020
(669) 600-1066
[email protected]
Project: W 10th Crossing At Orchard Drive Project Date: 8/26/2021 Project #21-PW-269
GBC Job #4249-21
Bid Item Description Unit Price Extension
1 RFI #003 Passageway Modifications 1 LS 1,082.41$ 1, 082.41$ Total Cost: 1,082.41$
Notes:
Approved:
Name:
Sign:
Date:
3826 Depot Road / Hayward, CA 94545
(510) 783-2960 / (510) 783-2971 Fax
License #451401, CA DGS SBE#1103721
DIR #1000002870
Quantity
Exclusions: Permits, fees, bonds, testing, inspection, nights and/or weekend work.
Please contact Brian Cortese at (650) 670-0014 or [email protected] with any questions.
PCO is for the modifications made to the northeast passageway per RFI #003. The additional cost is for the labor to re-frame and realign the island and passageway crossing Orchard Drive (see attached sheet for details). Please note that this cost in addition to payment per contract bid items. Additional asphalt removal and replacement will also pay under the appropriate contract bid items (limits unknown until concrete is placed and slopes are calculated). Final compensation for work to be based on field measurements of actual quantities in place.
Attachment B - Reframe/Realign Island & Passageway
8/26/2021
Julie Oates
DocuSign Envelope ID: 98D4F6E9-A79E-4FB3-B5EF-936D92FF1489
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Attachment: Change Order No. 1- Final Balancing Change Order (3584 : NOC W. 10th Crossing at Orchard Drive Project) 3826 depot road / hayward, ca 94545
general engineering contractors phone: (510) 783-2960 / fax: (510) 783-2971
PROJECT NAME REPORT NUMBER
OWNER GBC JOB NUMBER
AUTHORIZED BY DATE PERFORMED
PERFORMED BY REPORT DATE
DESCRIPTION OF WORK:
DESCRIPTION CLASS MAKE CODE ST OT OT ADJ RATE EXTENSION NAME CRAFT RATE EXTENSION Utility Truck TRUCK T&TT 12-20 4 36.92$ 147.68$ Esteban Delgadillo Laborer ST 4 $78.60 314.40$ Utility Truck TRUCK T&TT 12-20 4 36.92$ 147.68$ Foreman OT -$ -$ Ruperto Armendariz Cement Mason ST 4 $69.95 279.80$ -$ OT -$
-$ ST -$
-$ OT -$
-$ ST -$
-$ OT -$
-$ ST -$
-$ OT -$
EQUIPMENT SUBTOTAL: 295.36$ ST -$
MARK-UP @ 15%: 44.30$ OT -$
EQUIPMENT TOTAL: 339.66$ ST -$
OT -$
ST -$
VENDOR NAME EXTENSION OT -$
DESCRIPTION -$ ST -$
VENDOR NAME EXTENSION OT -$
DESCRIPTION -$ TOTAL DIRECT LABOR ST: 594.20$ VENDOR NAME EXTENSION TOTAL DIRECT LABOR OT: -$
DESCRIPTION -$
MATERIAL SUBTOTAL: -$ LABOR SURCHARGE ST @ 0.00% -$ MARK-UP @ 15%: -$ LABOR SURCHARGE OT @ 10.00% -$ MATERIAL TOTAL: -$ LABOR MARKUP @ 25.00% 148.55$ LABOR TOTAL: 742.75$
VENDOR NAME EXTENSION
DESCRIPTION -$
VENDOR NAME EXTENSION LABOR TOTAL: 742.75$
DESCRIPTION -$ EQUIPMENT TOTAL: 339.66$
VENDOR NAME EXTENSION MATERIAL TOTAL: -$
DESCRIPTION -$ SUBCONTRACTOR/SPECIALIST WORK TOTAL: -$ SUBCONTRACTORS/SPECIALIST WORK SUBTOTAL: -$
MARK-UP @ 15%: -$
SUBCONTRACTORS/SPECIALIST WORK TOTAL: -$
26 August 2021
REPORT SUMMARY
Labor, equipment and material costs to realign northeast passageway per RFI #003 response.
MATERIAL
EQUIPMENT
HOURS
LABOR
REPORT GRAND TOTAL: 1,082.41$
INVOICE NUMBER
INVOICE NUMBER
INVOICE NUMBER
SUBCONTRACTOR/SPECIALIST WORK
FORCE ACCOUNT ESTIMATE
PROJECT INFORMATION
002
Estimate
4249-21
W 10th Crossing At Orchard Drive Project 21-PW-269
City of Gilroy
Julie Oates
Golden Bay Construction, Inc.
INVOICE NUMBER
INVOICE NUMBER
INVOICE NUMBER
Attachment B - Reframe/Realign Island & Passageway
DocuSign Envelope ID: 98D4F6E9-A79E-4FB3-B5EF-936D92FF1489
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Attachment: Change Order No. 1- Final Balancing Change Order (3584 : NOC W. 10th Crossing at Orchard
City of Gilroy
STAFF REPORT
Agenda Item Title: Acceptance of the Annual Development Impact Fee Report for Fiscal Year 2020-2021 as Required Under Government Code 66000
Meeting Date: January 24, 2022
From: Jimmy Forbis, City Administrator
Department: Finance Department
Submitted By: Harjot Sangha
Prepared By: Harjot Sangha
Vickie Rahman
Strategic Plan Goals
☐ Develop a Financially
Resilient Organization
☐ Ensure Neighborhood
Equity from City
Services
☐ Promote Economic
Development
Activities
☐ Promote Safe,
Affordable Housing for All
☐ Maintain and Improve
City Infrastructure
RECOMMENDATION
Accept and file the annual development impact fee r eport for Fiscal Year 2020-2021 as required under Government Code 66000.
EXECUTIVE SUMMARY
In accordance with the Mitigation Fee Act (Act), Government Code 66000 et seq. the City must annually review and make a public report on development impact fees.
POLICY DISCUSSION
The Act requires that the City prepare an annual review and report of all established development impact fees and make the report available to the public. In accordance
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with this requirement, staff is presenting the annual impact fee report for the fiscal year ending June 30, 2021.
BACKGROUND
The Mitigation Fee Act, Gover nment Code 66000 et seq., (adopted as AB 1600 and commonly referred to as “AB 1600 requirements”) governs the establishment and administration of development impact fees paid by new development projects for public facilities needed to serve new development.
Fees must be separately accounted for and used for the specific purpose for which the fee was established and imposed. The City’s adopted development impact fees are listed in the attachment. Expenditures are authorized by Council through annual capital and operating budgets.
ANALYSIS
No analysis is required. This report is for information purposes only. The establishment of fees and expending of fee-generated revenue occurs in separate Council actions.
FISCAL IMPACT/FUNDING SOURCE
This report has no dire ct fiscal impacts as this report only provides information describing each development impact fee and a list of revenues, expenditures, and fund balance for each impact fund.
Attachments:
1. Gilroy Impact Fee Report FY20-21
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Project FY20/21
FUND 420 - Storm Drain Development Impact Fee Number AB 1600 Revenues
Storm Impact Fees 420-2600-0000-3660 60,897$
Interest 420-2600-0499-3710 5,329
Interfund Transfer Interest Income 420-2600-0440-3712 13,701 Transfer from General Fund 420-2600-0100-3910 1,196
Total Revenues 81,123$
Expenditures
GIS Systems 420-2600-3402-4215 5,000
Storm Drain Master Plan 420-2600-3416-4215 41,199
Overhead Expenses 420-2600-0100-4455 2,588
Total Expenditures 48,787$
Revenues Less Expenditures 32,336$
Fund Balance as of June 30, 2020 2,046,518
Fund Balance as of June 30, 2021 2,078,854$
Relationship between and purpose for which fee is charged:
Storm Drain Impact Fee charges are as follows: (420-2600-0000-3660) Residential - Low Density $581/acre
Residential - High Density $913/acre
Commercial $1,574/acre
Commercial-Assembly Hall $581/acre
Industrial $1,162/acre
City of Gilroy
Impact Fee Revenues and Expenditures
For Fiscal Year 2020/21
Fees are to finance the construction of drainage collection and conveyance systems in conformance with the Gilroy Storm Drain Master Plan in order to accommodate development of new residential, commercial, and industrial uses as well as expand system capacity. Projects are identified and undertaken in compliance with updated and approved master plans based on population projections, the General Plan policies, land use needs, and other standards approved by the City Council.
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Attachment: Gilroy Impact Fee Report FY20-21 [Revision 2] (3612 : Development Impact Fee Report Fiscal Year 2020-2021) Project FY20/21
FUND 432 - Street Tree Development Impact Fee Number AB 1600 Revenues
Street Trees Development Impact Fees 432-2600-0000-3660 2,396$ Interest 432-2600-0499-3710 681
Transfer from General Fund 432-2600-0100-3910 27
Total Revenues 3,104$
Expenditures
Program Expenses 432-2600-0000-4265 -
Overhead Expenses 432-2600-0100-4455 -
Total Expenditures -$
Revenues Less Expenditures 3,104$
Fund Balance as of June 30, 2020 135,988
Fund Balance as of June 30, 2021 139,092$
Relationship between and purpose for which fee is charged:
Street Trees Impact Fee charges are as follows: (432-2600-0000-3660) City Planting and Replacement $3.15/ff
Inspection and Replacement $0.42/ff
City of Gilroy
Impact Fee Revenues and Expenditures
For Fiscal Year 2020/21
The Street Tree Development Fund collects a front footage fee to plant trees in new developments.
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Attachment: Gilroy Impact Fee Report FY20-21 [Revision 2] (3612 : Development Impact Fee Report Fiscal Year 2020-2021) Project FY20/21
FUND 433 - Traffic Impact Fee Number AB 1600
Revenues
Traffic Impact Fees 433-2600-0000-3660 2,918,794$
Interest 433-2600-0499-3710 63,221
Transfer from General Fund 433-2600-0100-3910 48,769
Total Revenues 3,030,784$
Expenditures
GIS System 433-2600-3402-4215 5,000
Tenth at Uvas Creek Bridge 433-2600-3851-4340 253,594
Ballybunion/ Santa Teresa 433-2600-4402-4340 20,486
Cohansey/ Monterey 433-2600-4407-4340 500,109
Wren / Welburn 433-2600-4409-4340 363,365
WSSP-O Welburn Safety Improvement 433-2600-4435-4340 598,000 North West Quad Cohansey 433-2600-4457-4340 326,368
Overhead Charges 433-2600-0100-4455 115,964
Administration 433-2600-0000-xxxx 3,440
Total Expenditures 2,186,326$
Revenues Less Expenditures 844,458$
Fund Balance as of June 30, 2020 (Restated) * 13,414,069 Fund Balance as of June 30, 2021 14,258,526$
*Fund balance restated at June 30, 2020 due to deferred revenue audit adjustment Relationship between and purpose for which fee is charged:
Traffic Impact Fee charges are as follows: (433-2600-0000-3660) Residential - Low Density $12,633/unit
Residential - High Density $10,241/unit
Commercial - Low Traffic $13,978/ksf
Commercial - High Traffic $28,235/ksf
Industrial - General $5,539/ksf
Industrial - Warehouse $4,015/ksf
City of Gilroy
Impact Fee Revenue and Expenditures
For Fiscal Year 2020/21
Fees are to finance the construction of streets, bridges, interchanges and traffic signals as identified in the City's General Plan Circulation Element to accommodate development of new residential, commercial, and industrial uses for the purpose of expanding transportation system capacity. Projects are completed in conformance with approved master plans based on the General Plan, population projections, land use, and other standards approved by the City Council.
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Attachment: Gilroy Impact Fee Report FY20-21 [Revision 2] (3612 : Development Impact Fee Report Fiscal Year 2020-2021) Project FY20/21
FUND 435 - Sewer Development Impact Fee Number AB 1600
Revenues
Sewer Impact Fees 435-2600-0000-3660 1,764,901$
Interest 435-2600-0499-3710 59,729
Transfer from Interest Income 435-2600-0440-3712 21,009 Transfer from General Fund 435-2600-0100-3910 28,351
Total Revenues 1,873,990$
Expenditures
GIS Systems 435-2600-3402-4215 5,000$
Sewer Interfund Transfer 435-2600-0700-4410 692,875
SCRWA Construction Interfund Transfer 435-2600-0839-4410 1,328,070 Overhead Expenses 435-2600-0700-4455 702
Administration 435-2600-0000-xxxx 41,799
Total Expenditures 2,068,446$
Revenues Less Expenditures (194,456)$
Fund Balance as of June 30, 2020 (Restated) * 13,376,865 Fund Balance as of June 30, 2021 13,182,409$
*Fund balance restated at June 30, 2020 due to deferred revenue audit adjustment Relationship between and purpose for which fee is charged:
Sewer Impact Fee charges are as follows: (435-2600-0000-3660) Residential - Low Density $12,876/unit
Residential - High Density $6,967/unit
Commercial $4,075/cgpd
Industrial $4,075/cgpd
City of Gilroy
Impact Fee Revenues and Expenditures
For Fiscal Year 2020/21
Fees are to finance the construction of expanded sewer collection, treatment and conveyance systems as identified in the Sewer Master Plan in order to accommodate development of new residential, commercial, and industrial uses based on standards adopted by the City Council.
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Attachment: Gilroy Impact Fee Report FY20-21 [Revision 2] (3612 : Development Impact Fee Report Fiscal Year 2020-2021) Project FY20/21
FUND 436 - Water Development Impact Fee Number AB 1600
Revenues
Water Impact Fees 436-2600-0000-3660 464,809$
Interest 436-2600-0499-3710 23,833
Transfer from General Fund 436-2600-0100-3910 5,893
Total Revenues 494,535$
Expenditures
GIS Systems 436-2600-3402-4215 5,000
Reimbursement Improvements 436-2600-3486-4340 -
Overhead Expenses 436-2600-0720-4455 720
Administration 436-2600-0000-xxxx 42,989
Total Expenditures 48,709$
Revenues Less Expenditures 445,826$
Fund Balance as of June 30, 2020 (Restated) * 4,656,240 Fund Balance as of June 30, 2021 5,102,066$
*Fund balance restated at June 30, 2020 due to deferred revenue audit adjustment Relationship between and purpose for which fee is charged:
Water Impact Fee charges are as follows: (436-2600-0000-3660) Residential - Low Density $4,423/unit
Residential - High Density $1,789/unit
Commercial $6,933/kgpd
Industrial $6,933/kgpd
City of Gilroy
Impact Fee Revenues and Expenditures
For Fiscal Year 2020/21
Fees are to finance the construction of improvements and expansion of water production, transmission, distribution and storage systems within Pressure Zone 1 as described in the Water Master Plan necessary to accommodate the capacity requirements of new residential, commercial and industrial uses and in accordance with the General Plan, population increase projections and other standards established by the City Council.
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Attachment: Gilroy Impact Fee Report FY20-21 [Revision 2] (3612 : Development Impact Fee Report Fiscal Year 2020-2021) Project FY20/21
FUND 440 - Public Facilities Impact Fee Number AB 1600 Revenues
Public Facility Impact Fees 440-2600-0000-3660 4,325,853$ Misc Revenues 440-2600-0000-3890 281,104$
Interest 440-2600-0499-3710 4,624
Interfund Transfer from General Fund 440-2600-0100-3910 40,763 Total Revenues 4,652,343$
Expenditures
GIS System 440-2600-3402-4215 5,727
Sports Park Expansion 440-2600-4342-4215 -
New Police Staff Resource - Duty Belts and Equipment 440-2600-1658-4272 - New Police Staff Resource- Equipment and Furniture 440-2600-1658-4320 - City Hall Annex 440-2600-4760-4340 -
Ronan Channel Trail Improvements 440-2600-3822-4340 (258) Lions Creek Gap Closure 440-2600-4426-4340 -
Lease Rev Bonds 2013 Interfund Transfer Out 440-2600-0514-4410 1,845,169 PFFA Refund 2010 Interfund Transfer Out 440-2600-0516-4410 1,746,206 Overheard Charges 440-2600-0100-4455 461
Interfund Interest Expense-Storm Fund 440-2600-0420-4512 13,701 Interfund Interest Expense-Sewer Fund 440-2600-0435-4512 21,009 Interfund Interest Expense-Fleet 440-2600-0600-4512 43,845 Interfund Interest Expense-Equipment Outlay 440-2600-0605-4512 12,788 Administration 440-2600-0000-xxxx 2,500
Total Expenditures 3,691,147$
Revenues Less Expenditures 961,196$
Fund Balance as of June 30, 2020 (Restated) * (6,358,685) Fund Balance as of June 30, 2021 (5,397,489)$
*Fund balance restated at June 30, 2020 due to deferred revenue audit adjustment Relationship between and purpose for which fee is charged:
Public Facility Impact charges are as follows: (440-2600-0000-3660) Residential - Low Density $21,958/unit
Residential - High Density $18,474/unit
Commercial $3,309/ksf
Industrial $1,466/ksf
City of Gilroy
Impact Fee Revenues and Expenditures
For Fiscal Year 2020/21
Fees are to finance the construction of parks, police, fire and library facilities as identified in the Public Facilities Master Plan based on the need to expand City facility capacity to accommodate new development and pursuant to standards approved by the City Council.
Note that in 2008 the City purchased the Gilroy Gardens Property for $13.7 million, of which there is a remaining balance of approximately $5.4 million. The current negative Fund Balance above includes the remaining loan payable amount that is due in payments over six years. This amount is shown as a liability in the City's financial system, resulting in the negative balance stated above.
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Attachment: Gilroy Impact Fee Report FY20-21 [Revision 2] (3612 : Development Impact Fee Report Fiscal Year 2020-2021) FUND 420 - Storm Drain Development Impact Fee
Residential - Low Density $581/acre
Residential - High Density $913/acre
Commercial $1,574/acre
Commercial-Assembly Hall $581/acre
Industrial $1,162/acre
FUND 432 - Street Tree Development Impact Fee
City Planting and Replacement $3.15/ff
Inspection and Replacement $0.42/ff
FUND 433 - Traffic Impact Fee
Residential - Low Density $12,633/unit
Residential - High Density $10,241/unit
Commercial - Low Traffic $13,978/ksf
Commercial - High Traffic $28,235/ksf
Industrial - General $5,539/ksf
Industrial - Warehouse $4,015/ksf
FUND 435 - Sewer Development Impact Fee
Residential - Low Density $12,876/unit
Residential - High Density $6,967/unit
Commercial $4,075/cgpd
Industrial $4,075/cgpd
FUND 436 - Water Development Impact Fee
Residential - Low Density $4,423/unit
Residential - High Density $1,789/unit
Commercial $6,933/kgpd
Industrial $6,933/kgpd
FUND 440 - Public Facilities Impact Fee
Residential - Low Density $21,958/unit
Residential - High Density $18,474/unit
Commercial $3,309/ksf
Industrial $1,466/ksf
City of Gilroy
Impact Fee Schedule Summary
For Fiscal Year 2020/21
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Attachment: Gilroy Impact Fee Report FY20-21 [Revision 2] (3612 : Development Impact Fee Report Fiscal Year 2020-2021)
City of Gilroy
STAFF REPORT
Agenda Item Title: Second Reading and Adoption of an Ordinance of the City Council of the City of Gilroy Consolidating the Bicycle Pedestrian Commission and Placing its Associated Commission Functions for Infrastructure Planning and Development Review Under the Authority of the Planning Commission, and the Associated Commission Functions for Education and Encouragement Activities Under the Authority of the Parks and Recreation Commission.
Meeting Date: January 24, 2022
From: Jimmy Forbis, City Administrator
Department: Administration
Submitted By: Jimmy Forbis
Prepared By: Bryce Atkins
Strategic Plan Goals
☐ Develop a Financially
Resilient Organization
☐ Ensure Neighborhood
Equity from City
Services
☐ Promote Economic
Development
Activities
☐ Promote Safe,
Affordable Housing for All
☐ Maintain and Improve
City Infrastructure
RECOMMENDATION
Council approve the second reading and adopt the ordinance.
BACKGROUND
At the January 10 th regular meeting o f the Gilroy City Council, Council held the first reading and introduction of an ordinance to consolidate the Bicycle Pedestrian Commission (“BPAC”), transferring its duties to the Planning and Parks and Recreation District. This process is in conjunction with a larger consolidation action involving four
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boards. The BPAC was created by an ordinance and required an ordinance to consolidate.
The introduction and first reading was approved by a 5-2 vote of the City Council.
This item, if approved by the City Council, will finalize the adoption of the ordinance, making it effective 30 days after adoption pursuant to the City Charter.
ANALYSIS
Full analysis of the consolidation plan and its impacts are contained in the staff reports presented to Council on November 15, 2021; December 13, 2021 and January 10 th, 2022.
ALTERNATIVES
Council may adopt, modify or reject staff’s recommendation
Attachments:
1. Consolidation Ordinance - Bicycle Pedestrian Commission
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-1- 4891-7643-1621v1
JH\00000999
ORDINANCE NO. 2022-XX
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF GILROY CONSOLIDATING THE BICYCLE
PEDESTRIAN COMMISSION AND PLACING ITS
ASSOCIATED COMMISSION FUNCTIONS FOR
INFRASTRUCTURE PLANNING AND DEVELOPMENT
REVIEW UNDER THE AUTHORITY OF THE PLANNING
COMMISSION, AND THE ASSOCIATED COMMISSION
FUNCTIONS FOR EDUCATION AND ENCOURAGEMENT
ACTIVITIES UNDER THE AUTHORITY OF THE PARKS
AND RECREATION COMMISSION.
WHEREAS, the City of Gilroy currently has a total of thirteen (13) boards, commissions and committees, each requiring extensive staff support, whether or not the body has a full membership, business to conduct, or is able to achieve a quorum for its meetings; and
WHEREAS, the Bicycle Pedestrian Commission is one of the City’s Commissions which are not required pursuant to the Gilroy City Charter; and
WHEREAS, City Council initiated a future Council agenda item on September 13, 2021 for an agenda item to s taff to create a more efficient and effective structure for the City’s boards and commissions; and
WHEREAS, on November 15, 2021, staff presented a report with options that had been developed as of that time. At that meeting, Council directed staff to proceed with the full streamline option of consolidating the City’s boards, committees and commissions, and return to Council on December 13th with an agenda item to adopt the consolidation; and
WHEREAS, the City Council desires to consolidate the Bicycle Pedestrian Commission with the duties being consolidated with either the Planning or Parks and Recreation Commissions, based on the subject matter jurisdiction.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GILROY DOES ORDAIN AS FOLLOWS.
SECTION I
The Bicycle Pedestrian Commission (Commission) is scheduled to be consolidated.
Ordinances Nos. 2009-03 and 2018-14, which established the Commission will be repealed in their entirety and no longer in effect after June 30, 2022, or such earlier time as determined by the Commission.
SECTION II
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Attachment: Consolidation Ordinance - Bicycle Pedestrian Commission (3626 : BPAC Consolidation)
-2- 4891-7643-1621v1
JH\00000999
City staff are to wind down and transfer the activities of this Commission in an expeditious manner which shall be completed no later than June 30, 2022, and as of the date of such transfer, the terms of all sitting Commissioners shall come to an end. The functions and duties shall be transferred to the Planning Commission and Parks and Recreation Commission, in a manner to maximize efficiency and effectiveness within the associated subject matter jurisdiction of each Commission.
SECTION III
If any section, subsection, sentence, clause or phrase of this Ordinance is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Gilroy hereby declares that it would have passed and adopted this ordinance, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases may be declared invalid or unconstitutional.
SECTION IV
This Or dinance shall take effect thirty (30) days after its adoption. The City Clerk is hereby directed to publish this Ordinance or a summary thereof pursuant to Government Code Section 36933.
PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF GILROY this 24th day of January, 2022 by the following vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
APPROVED:
_______________________________
Marie Blankley, Mayor
ATTEST:
Thai Nam Pham, City Clerk
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Attachment: Consolidation Ordinance - Bicycle Pedestrian Commission (3626 : BPAC Consolidation)
City of Gilroy
STAFF REPORT
Agenda Item Title: Award a Contract to PC Inc. for the City Hall Backup Generator Project (No. 21-PW-268), and approve a project expenditure of $708,885
Meeting Date: January 24, 2022
From: Jimmy Forbis, City Administrator
Department: Public Works Department
Submitted By: Daryl Jordan
Prepared By: Daryl Jordan
Julie Oates
Strategic Plan Goals
☐ Develop a Financially
Resilient Organization
☐ Ensure Neighborhood
Equity from City
Services
☐ Promote Economic
Development
Activities
☐ Promote Safe,
Affordable Housing for All
Maintain and Improve
City Infrastructure
RECOMMENDATION
a) Adopt a resolution of the City Council of the City of Gilroy amending the budget for the City of Gilroy for Fiscal Yea r 2021 -2022 and appropriating proposed expenditure amendments.
b) Award a Contract to PC Inc. in the amount of $557,200 with an additional project contingency of $55,720 (10%), for a total construction cost of $612,920 and $95,964.60 for costs associated with design, permitting and advertising for a total project cost of $708,885 for the City Hall Backup Generator Project, No. 21 -PW- 268, and authorize the City Administrator to execute the contract and associated documents.
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The City Hall Backup Generator P roject, No. 21 -PW-268, (Project) includes the installation of a new automatic transfer switch at City Hall and connection to an existing 1,000 kW generator located at the north side of the Gilroy Police Department.
Construction of the Project will require a new electrical feeder, underground and overhead conduits and cables, and other incidentals per the plans and specifications.
On November 16, 2020, Council approved the Capital Improvement Program for fiscal years 2020-2021 through 2024-2025 and adopted a resolution that amended the budget for fiscal year 2020 -2021 and appropriated proposed expenditure amendments for the Capital Improvement Program for fiscal years 2020-2021 through 2024-2025.
The budget amendment included an allocation of $509,700 for t he design and construction of the Project from Fund 651 – Facility Services Fund. Subsequently, on June 7, 2021, Council adopted the FY22 and FY23 Budget which appropriated $525,700 for the design and construction of the Project.
A contract in the amount o f $88,000 was executed with Advance Design Consultants, Inc. for the design of the Project. The remaining budget for the Project (after design) is $421,700 in Fund 651 – Facility Services Fund. In addition, staff received a $300,000 grant from the Californ ia Governor’s Office of Emergency Services (Cal OES) for the construction of the project. Staff received four bids for the construction of the Project.
The lowest responsive bid (including 10% contingency) was $612,920.
Staff is recommendingCouncil adop t a resolution to amend the budget for the fiscal year 2021 -2022 and increase appropriations in Fund 651 – Facility Services Fund by $183,185 to fully fund the Project. The total cost of the Project, including design, construction, contingency, and incidental costs is a maximum of $708,885.
BACKGROUND
The Project will provide backup power for City Hall in the event of a power outage. As the Police Department has an oversized backup generator the Project will provide a connection from the Police Departmen t’s existing generator to City Hall so that both buildings will be functional during a power outage.
The Project includes the installation of a new automatic transfer switch at City Hall and connection to an existing 1,000 kW generator located at the nort h side of the Gilroy Police Department. Construction of the Project will require a new electrical feeder, underground and overhead conduits and cables, and other incidentals per the plans and specifications.
The Project will enable City staff to continue p roviding customer service and performing other job functions.
Staff issued a Request for Proposals (RFP) for the design of the Project in December 2019. The RFP was advertised in the San Jose Mercury News and on the City’s
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website. Staff received three pr oposals and selected Advance Design Consultants, Inc. based on the firm’s qualifications, project understanding, and other criteria in the RFP.
A contract in the amount of $88,000 was executed with Advance Design Consultants, Inc. in August 2020 for the design of the City Hall Backup Generator Project.
ANALYSIS
The Project was advertised in the San Jose Mercury News and on the City’s website on December 8, 2021. There was one addendum issued for the Project. Staff conducted the bid opening on January 4, 2022.
Staff received four bids for the Project. The lowest bid was from J.W. Construction and it was determined to be a non -responsive bid due to incomplete bid forms which are non - waiving irregularities. The bids received were as follows:
Rank Company Name Total Bid
1 *J.W. Construction $302,908.90
2 PC Inc. $557,200.00
3 Group H Construction $700,000.00
4 Cal Electro Inc. $910,500.00
*Non-responsive
Staff recommends awarding the contract to the lowest responsive bidder, PC Inc., with a tota l bid of $557,200. The Engineer’s Estimate was $388,000. The lowest bid was
43.61% higher than the Engineer’s Estimate. The Engineer’s Estimate was based on similar, recent projects. Actual bids can vary depending on various factors, including a high volume of projects open for bids; the travel distance to the project site; labor and material shortages and new protocols and regulations due to the COVID -19 pandemic; and the contractor’s familiarity with the public agency, experience with similar projects and perception of the project’s complexity.
Staff recommends awarding the contract to PC Inc. for the following reasons:
1. PC Inc. provided the lowest responsive bid
2. PC Inc. has experience with this type of project
Staff anticipates construction to begin in F ebruary 2022 and to be completed in March 2022. This timeframe could change due to long lead times (i.e., the time it takes to receive materials after they have been ordered) for the Automatic Transfer Switch and the breaker.
ALTERNATIVES
The alternative to the staff recommendation is to reject all bids. Staff does not
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recommend this option as this could jeopardize the grant funds and delay the project.
FISCAL IMPACT/FUNDING SOURCE
The total bid from PC Inc. is $557,200. Staff recommends including a 10% contingency of $55,720 for a total construction allocation of $612,920 from Fund 651 – Facility Services Fund . The contingency is intended to account for unforeseen conditions or changes in the scope of work that may occur during construction.
The total cost of the Project, including design, construction, contingency, and in cidental costs is a maximum of $708,885.
Staff will invoice Cal OES for a reimbursement of $300,000 in grant funds after construction has been completed.
Design $88,000.00
Construction $557,200.00
Contingency $55,720.00
Building Permit $6,931.76
Newspaper Advertisement $563.37
Builders Exchanges $469.47
Total Project Cost $708,884.60
PUBLIC OUTREACH
Project stakeholders including residents, businesses, and City staff af fected by the project will be notified at least five working days in advance of the start of construction.
In addition, staff anticipates power outages for approximately one day while the contractor is coordinating with PG&E and installing the automatic transfer switch and meter. To minimize power interruption, staff will work with the contractor to perform the work on a weekend if possible.
NEXT STEPS
Upon Council’s approval of this contract, the contract will be executed, and Staff will work with th e contractor to develop a final project schedule to begin construction in February 2022. The Project is expected to be completed in March 2022.
Attachments:
1. Draft Resolution
2. 21-PW-268 Plans - FINAL
3. PC Inc. Agreement
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RESOLUTION NO. 2022-XX
RESOLUTION NO. 2022-XX
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF GILROY AMENDING THE BUDGET FOR
THE CITY OF GILROY FOR 2021-2022 AND
APPROPRIATING PROPOSED EXPENDITURE
AMENDMENTS
WHEREAS, the City Administrator prepared and submitted to the City Council a budget for the City of Gilroy for Fiscal Years 2021-2022 and 2022-2023, and the City Council carefully examined, considered and adopted the same on June 7, 2021; and
WHEREAS, City Staff has prepared and submitted to the City Council proposed amendments to said budget for Fiscal Year 2021-2022 for the City of Gilroy in the staff report dated January 24, 2022 for the City Hall Backup Generator Project, City Project No. 21-PW-268.
NOW, THEREFORE, BE IT RESOLVED THAT the appropriations for Fiscal Year 2021-2022 in Fund 651 – Facility Services shall be increased by $183,185.
PASSED AND ADOPTED this 24th day of January, 2022 by the following roll call vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
APPROVED:
Marie Blankley, Mayor
ATTEST:
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Attachment: Draft Resolution (3583 : Award Contract for City Hall Backup Generator Project) DRAWN BY: DATE SCALE DRAWING NO. SHEET NO. DESIGNED BY: DATE PROJECT No. REVIEWED BY: DATE No.DATEBYREVISIONSCITY APPROVALSDEPARTMENTDATECITY OF GILROYDEPARTMENT OF PUBLIC WORKS7351 ROSANNA STREETGILROY, CALIFORNIA 95020MAIN (408) 846-0415 | FAX (408) 846-0469 PO#: 20-335-01ONLY WET SIGNED DOCUMENTS CONSTITUTE ADVANCE DESIGNCONSULTANTS, INC. PROFESISONAL WORK AND BECAUSE OTHERREPRODUCIBLE DOCUMENTS MAY BE EASILY ALTERED WITHOUT THECONSENT OF ADVANCE DESIGN CONSULTANTS, INC., THE WET SIGNEDDOCUMENTS MUST BE REFERRED TO FOR THE ORIGINAL AND CORRECTINFORMATION. IF THERE ANY DIFFERENCES BETWEEN THE WET SIGNEDDOCUMENTS AND ANY OTHER DOCUMENTS, THE WET SIGNED DOCUMENTSSHALL GOVERN. ADVANCED DESIGN CONSULTANTS, INC. IS NOTRESPONSIBLE FOR ANY MODIFICATIONS MADE TO OUR DOCUMENTS BYANYONE OTHER THAN AUTHORIZED REPRESENTATIVES OFADVANCED DESIGN CONSULTANTS, INC.
PUBLIC WORKS DEPARTMENTCITY HALL BACK UP GENERATOR PROJECT NO. 21-PW-2687351 ROSANNA STREET, GILROY 95020CITY OF GILROY 1 of 11
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Attachment: 21-PW-268 Plans - FINAL (3583 : Award Contract for City Hall Backup Generator Project) DRAWN BY: DATE SCALE DRAWING NO. SHEET NO. DESIGNED BY: DATE PROJECT No. REVIEWED BY: DATE No.DATEBYREVISIONSCITY APPROVALSDEPARTMENTDATECITY OF GILROYDEPARTMENT OF PUBLIC WORKS7351 ROSANNA STREETGILROY, CALIFORNIA 95020MAIN (408) 846-0415 | FAX (408) 846-0469 PO#: 20-335-01ONLY WET SIGNED DOCUMENTS CONSTITUTE ADVANCE DESIGNCONSULTANTS, INC. PROFESISONAL WORK AND BECAUSE OTHERREPRODUCIBLE DOCUMENTS MAY BE EASILY ALTERED WITHOUT THECONSENT OF ADVANCE DESIGN CONSULTANTS, INC., THE WET SIGNEDDOCUMENTS MUST BE REFERRED TO FOR THE ORIGINAL AND CORRECTINFORMATION. IF THERE ANY DIFFERENCES BETWEEN THE WET SIGNEDDOCUMENTS AND ANY OTHER DOCUMENTS, THE WET SIGNED DOCUMENTSSHALL GOVERN. ADVANCED DESIGN CONSULTANTS, INC. IS NOTRESPONSIBLE FOR ANY MODIFICATIONS MADE TO OUR DOCUMENTS BYANYONE OTHER THAN AUTHORIZED REPRESENTATIVES OFADVANCED DESIGN CONSULTANTS, INC. 3 of 11
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Attachment: 21-PW-268 Plans - FINAL (3583 : Award Contract for City Hall Backup Generator Project) JGEN
DRAWN BY: DATE SCALE DRAWING NO. SHEET NO. DESIGNED BY: DATE PROJECT No. REVIEWED BY: DATE No.DATEBYREVISIONSCITY APPROVALSDEPARTMENTDATECITY OF GILROYDEPARTMENT OF PUBLIC WORKS7351 ROSANNA STREETGILROY, CALIFORNIA 95020MAIN (408) 846-0415 | FAX (408) 846-0469 PO#: 20-335-01ONLY WET SIGNED DOCUMENTS CONSTITUTE ADVANCE DESIGNCONSULTANTS, INC. PROFESISONAL WORK AND BECAUSE OTHERREPRODUCIBLE DOCUMENTS MAY BE EASILY ALTERED WITHOUT THECONSENT OF ADVANCE DESIGN CONSULTANTS, INC., THE WET SIGNEDDOCUMENTS MUST BE REFERRED TO FOR THE ORIGINAL AND CORRECTINFORMATION. IF THERE ANY DIFFERENCES BETWEEN THE WET SIGNEDDOCUMENTS AND ANY OTHER DOCUMENTS, THE WET SIGNED DOCUMENTSSHALL GOVERN. ADVANCED DESIGN CONSULTANTS, INC. IS NOTRESPONSIBLE FOR ANY MODIFICATIONS MADE TO OUR DOCUMENTS BYANYONE OTHER THAN AUTHORIZED REPRESENTATIVES OFADVANCED DESIGN CONSULTANTS, INC. 4 of 11
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Attachment: 21-PW-268 Plans - FINAL (3583 : Award Contract for City Hall Backup Generator Project) DRAWN BY: DATE SCALE DRAWING NO. SHEET NO. DESIGNED BY: DATE PROJECT No. REVIEWED BY: DATE No.DATEBYREVISIONSCITY APPROVALSDEPARTMENTDATECITY OF GILROYDEPARTMENT OF PUBLIC WORKS7351 ROSANNA STREETGILROY, CALIFORNIA 95020MAIN (408) 846-0415 | FAX (408) 846-0469 PO#: 20-335-01ONLY WET SIGNED DOCUMENTS CONSTITUTE ADVANCE DESIGNCONSULTANTS, INC. PROFESISONAL WORK AND BECAUSE OTHERREPRODUCIBLE DOCUMENTS MAY BE EASILY ALTERED WITHOUT THECONSENT OF ADVANCE DESIGN CONSULTANTS, INC., THE WET SIGNEDDOCUMENTS MUST BE REFERRED TO FOR THE ORIGINAL AND CORRECTINFORMATION. IF THERE ANY DIFFERENCES BETWEEN THE WET SIGNEDDOCUMENTS AND ANY OTHER DOCUMENTS, THE WET SIGNED DOCUMENTSSHALL GOVERN. ADVANCED DESIGN CONSULTANTS, INC. IS NOTRESPONSIBLE FOR ANY MODIFICATIONS MADE TO OUR DOCUMENTS BYANYONE OTHER THAN AUTHORIZED REPRESENTATIVES OFADVANCED DESIGN CONSULTANTS, INC. 5 of 11
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Attachment: 21-PW-268 Plans - FINAL (3583 : Award Contract for City Hall Backup Generator Project) DRAWN BY: DATE SCALE DRAWING NO. SHEET NO. DESIGNED BY: DATE PROJECT No. REVIEWED BY: DATE No.DATEBYREVISIONSCITY APPROVALSDEPARTMENTDATECITY OF GILROYDEPARTMENT OF PUBLIC WORKS7351 ROSANNA STREETGILROY, CALIFORNIA 95020MAIN (408) 846-0415 | FAX (408) 846-0469 PO#: 20-335-01ONLY WET SIGNED DOCUMENTS CONSTITUTE ADVANCE DESIGNCONSULTANTS, INC. PROFESISONAL WORK AND BECAUSE OTHERREPRODUCIBLE DOCUMENTS MAY BE EASILY ALTERED WITHOUT THECONSENT OF ADVANCE DESIGN CONSULTANTS, INC., THE WET SIGNEDDOCUMENTS MUST BE REFERRED TO FOR THE ORIGINAL AND CORRECTINFORMATION. IF THERE ANY DIFFERENCES BETWEEN THE WET SIGNEDDOCUMENTS AND ANY OTHER DOCUMENTS, THE WET SIGNED DOCUMENTSSHALL GOVERN. ADVANCED DESIGN CONSULTANTS, INC. IS NOTRESPONSIBLE FOR ANY MODIFICATIONS MADE TO OUR DOCUMENTS BYANYONE OTHER THAN AUTHORIZED REPRESENTATIVES OFADVANCED DESIGN CONSULTANTS, INC. 6 of 11
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Attachment: 21-PW-268 Plans - FINAL (3583 : Award Contract for City Hall Backup Generator Project) DRAWN BY: DATE SCALE DRAWING NO. SHEET NO. DESIGNED BY: DATE PROJECT No. REVIEWED BY: DATE No.DATEBYREVISIONSCITY APPROVALSDEPARTMENTDATECITY OF GILROYDEPARTMENT OF PUBLIC WORKS7351 ROSANNA STREETGILROY, CALIFORNIA 95020MAIN (408) 846-0415 | FAX (408) 846-0469 PO#: 20-335-01ONLY WET SIGNED DOCUMENTS CONSTITUTE ADVANCE DESIGNCONSULTANTS, INC. PROFESISONAL WORK AND BECAUSE OTHERREPRODUCIBLE DOCUMENTS MAY BE EASILY ALTERED WITHOUT THECONSENT OF ADVANCE DESIGN CONSULTANTS, INC., THE WET SIGNEDDOCUMENTS MUST BE REFERRED TO FOR THE ORIGINAL AND CORRECTINFORMATION. IF THERE ANY DIFFERENCES BETWEEN THE WET SIGNEDDOCUMENTS AND ANY OTHER DOCUMENTS, THE WET SIGNED DOCUMENTSSHALL GOVERN. ADVANCED DESIGN CONSULTANTS, INC. IS NOTRESPONSIBLE FOR ANY MODIFICATIONS MADE TO OUR DOCUMENTS BYANYONE OTHER THAN AUTHORIZED REPRESENTATIVES OFADVANCED DESIGN CONSULTANTS, INC. 7 of 11
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Attachment: 21-PW-268 Plans - FINAL (3583 : Award Contract for City Hall Backup Generator Project) DRAWN BY: DATE SCALE DRAWING NO. SHEET NO. DESIGNED BY: DATE PROJECT No. REVIEWED BY: DATE No.DATEBYREVISIONSCITY APPROVALSDEPARTMENTDATECITY OF GILROYDEPARTMENT OF PUBLIC WORKS7351 ROSANNA STREETGILROY, CALIFORNIA 95020MAIN (408) 846-0415 | FAX (408) 846-0469 PO#: 20-335-01ONLY WET SIGNED DOCUMENTS CONSTITUTE ADVANCE DESIGNCONSULTANTS, INC. PROFESISONAL WORK AND BECAUSE OTHERREPRODUCIBLE DOCUMENTS MAY BE EASILY ALTERED WITHOUT THECONSENT OF ADVANCE DESIGN CONSULTANTS, INC., THE WET SIGNEDDOCUMENTS MUST BE REFERRED TO FOR THE ORIGINAL AND CORRECTINFORMATION. IF THERE ANY DIFFERENCES BETWEEN THE WET SIGNEDDOCUMENTS AND ANY OTHER DOCUMENTS, THE WET SIGNED DOCUMENTSSHALL GOVERN. ADVANCED DESIGN CONSULTANTS, INC. IS NOTRESPONSIBLE FOR ANY MODIFICATIONS MADE TO OUR DOCUMENTS BYANYONE OTHER THAN AUTHORIZED REPRESENTATIVES OFADVANCED DESIGN CONSULTANTS, INC. 8 of 11
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Attachment: 21-PW-268 Plans - FINAL (3583 : Award Contract for City Hall Backup Generator Project) DRAWN BY: DATE SCALE DRAWING NO. SHEET NO. DESIGNED BY: DATE PROJECT No. REVIEWED BY: DATE No.DATEBYREVISIONSCITY APPROVALSDEPARTMENTDATECITY OF GILROYDEPARTMENT OF PUBLIC WORKS7351 ROSANNA STREETGILROY, CALIFORNIA 95020MAIN (408) 846-0415 | FAX (408) 846-0469 PO#: 20-335-01ONLY WET SIGNED DOCUMENTS CONSTITUTE ADVANCE DESIGNCONSULTANTS, INC. PROFESISONAL WORK AND BECAUSE OTHERREPRODUCIBLE DOCUMENTS MAY BE EASILY ALTERED WITHOUT THECONSENT OF ADVANCE DESIGN CONSULTANTS, INC., THE WET SIGNEDDOCUMENTS MUST BE REFERRED TO FOR THE ORIGINAL AND CORRECTINFORMATION. IF THERE ANY DIFFERENCES BETWEEN THE WET SIGNEDDOCUMENTS AND ANY OTHER DOCUMENTS, THE WET SIGNED DOCUMENTSSHALL GOVERN. ADVANCED DESIGN CONSULTANTS, INC. IS NOTRESPONSIBLE FOR ANY MODIFICATIONS MADE TO OUR DOCUMENTS BYANYONE OTHER THAN AUTHORIZED REPRESENTATIVES OFADVANCED DESIGN CONSULTANTS, INC. 9 of 11
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Attachment: 21-PW-268 Plans - FINAL (3583 : Award Contract for City Hall Backup Generator Project) DRAWN BY: DATE SCALE DRAWING NO. SHEET NO. DESIGNED BY: DATE PROJECT No. REVIEWED BY: DATE No.DATEBYREVISIONSCITY APPROVALSDEPARTMENTDATECITY OF GILROYDEPARTMENT OF PUBLIC WORKS7351 ROSANNA STREETGILROY, CALIFORNIA 95020MAIN (408) 846-0415 | FAX (408) 846-0469 PO#: 20-335-01ONLY WET SIGNED DOCUMENTS CONSTITUTE ADVANCE DESIGNCONSULTANTS, INC. PROFESISONAL WORK AND BECAUSE OTHERREPRODUCIBLE DOCUMENTS MAY BE EASILY ALTERED WITHOUT THECONSENT OF ADVANCE DESIGN CONSULTANTS, INC., THE WET SIGNEDDOCUMENTS MUST BE REFERRED TO FOR THE ORIGINAL AND CORRECTINFORMATION. IF THERE ANY DIFFERENCES BETWEEN THE WET SIGNEDDOCUMENTS AND ANY OTHER DOCUMENTS, THE WET SIGNED DOCUMENTSSHALL GOVERN. ADVANCED DESIGN CONSULTANTS, INC. IS NOTRESPONSIBLE FOR ANY MODIFICATIONS MADE TO OUR DOCUMENTS BYANYONE OTHER THAN AUTHORIZED REPRESENTATIVES OFADVANCED DESIGN CONSULTANTS, INC. 10 of 11
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Attachment: 21-PW-268 Plans - FINAL (3583 : Award Contract for City Hall Backup Generator Project) DRAWN BY: DATE SCALE DRAWING NO. SHEET NO. DESIGNED BY: DATE PROJECT No. REVIEWED BY: DATE No.DATEBYREVISIONSCITY APPROVALSDEPARTMENTDATECITY OF GILROYDEPARTMENT OF PUBLIC WORKS7351 ROSANNA STREETGILROY, CALIFORNIA 95020MAIN (408) 846-0415 | FAX (408) 846-0469 PO#: 20-335-01ONLY WET SIGNED DOCUMENTS CONSTITUTE ADVANCE DESIGNCONSULTANTS, INC. PROFESISONAL WORK AND BECAUSE OTHERREPRODUCIBLE DOCUMENTS MAY BE EASILY ALTERED WITHOUT THECONSENT OF ADVANCE DESIGN CONSULTANTS, INC., THE WET SIGNEDDOCUMENTS MUST BE REFERRED TO FOR THE ORIGINAL AND CORRECTINFORMATION. IF THERE ANY DIFFERENCES BETWEEN THE WET SIGNEDDOCUMENTS AND ANY OTHER DOCUMENTS, THE WET SIGNED DOCUMENTSSHALL GOVERN. ADVANCED DESIGN CONSULTANTS, INC. IS NOTRESPONSIBLE FOR ANY MODIFICATIONS MADE TO OUR DOCUMENTS BYANYONE OTHER THAN AUTHORIZED REPRESENTATIVES OFADVANCED DESIGN CONSULTANTS, INC. 11 of 11
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Attachment: 21-PW-268 Plans - FINAL (3583 : Award Contract for City Hall Backup Generator Project) SECTION 00500
AGREEMENT
January , 2022,
PC Inc.
CITY HALL BACKUP GENERATOR
PROJECT No. 21-PW-268
THIS AGREEMENT, made this 24th day of
by and between the City of Gilroy. hereinafter called the "City," and hereinafter called the "Contractor."
----- W I T N E S S E T H:
WHEREAS, the City has caused the Contract Documents to be prepared comprised of bidding and contract requirements and technical specifications and drawings for the construction of the CITY HALL BACKUP GENERATOR, Project No. 21- PW-268, as described therein, and
WHEREAS, the Contractor has offered to perform the proposed work in accordance with the terms of the Contract Documents.
NOW, THEREFORE, in consideration of the mutual covenants and agreements of the parties herein contained and to be performed, the City and Contractor agree as follows:
Article 1. Work.
Contractor shall complete the Work as specified or indicated in the Contract Documents.
Article 2. Contract Time.
The Work shall be completed by the Contractor in accordance with the Contract Documents within the time period required by Paragraph 00810-2.0, Time Allowed for Completion, subject to extension as expressly provided in the Contract Documents.
Article 3. Liquidated Damages.
The city and the contractor recognize that the city will suffer substantial damages Project No. 21-PW-268
City Hall Backup Generator
SECTION 00500
AGREEMENT-27
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Attachment: PC Inc. Agreement (3583 : Award Contract for City Hall Backup Generator Project)
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Attachment: PC Inc. Agreement (3583 : Award Contract for City Hall Backup Generator Project)
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Attachment: PC Inc. Agreement (3583 : Award Contract for City Hall Backup Generator Project)
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Attachment: PC Inc. Agreement (3583 : Award Contract for City Hall Backup Generator Project)
City of Gilroy
STAFF REPORT
Agenda Item Title: Citywide Sidewalk Assessment Update Meeting Date: January 24, 2022
From: Jimmy Forbis, City Administrator
Department: Public Works Department
Submitted By: Daryl Jordan
Prepared By: Gary Heap
Gary Heap
Strategic Plan Goals
☐ Develop a Financially
Resilient Organization
☐ Ensure Neighborhood
Equity from City
Services
☐ Promote Economic
Development
Activities
☐ Promote Safe,
Affordable Housing for All
Maintain and Improve
City Infrastructure
RECOMMENDATION
Receive an update on the Citywide Sidewalk Network Inventory and Assessment Project.
BACKGROUND
The City’s transportation network, consisting of 125 lane -miles of roads with adjacent sidewalk and curb ramps , is the City’s biggest asset with a total value of more than $220 million. It is important for the City to maintain safe sidewalks as an integral part of the multi-modal transportation network. Although, the City performs a bi -annual evaluation of the street network, the City has performed only three citywide sidewalk assessments in the past 27 years. These previous sidewalk condition surveys lacked critical information needed to effectively manage the City’s Sidewalk program.
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At the August 17, 2020 City Council meeting , council awarded a contract to StreetScan Inc. for the Citywide Sidewalk Network Inventory and Assessment Project. The project scope was to evaluate all sidewalk and curb ramps within the City and determine the extent of needed repair and upgrade. The c onsultant conducted the evaluation in the fall and the results are ready to be shared with the Council. See the attached map showing the City’s overall sidewalk condition.
ANALYSIS
The results of the study indicate that the City’s overall sidewalk condition is good .
However, given that there are 192 miles of sidewalk, there is still a substantial amount of repair that is needed within the City. The identified sidewalk conditions were considered in need of replacement:
• Severe Uplifts – greater than 1”
• Moderate Uplifts – between ½” and 1”
• Moderate and Severe Cracking
• Moderate and Severe Surface Distortions
Nearly all the severe sidewalk uplifts, and a high percentage of moderate uplifts, are caused by City street trees. The removal and replacement of the i mpacting trees needs to be factored into the cost of a sidewalk replacement program.
Overall, the results of the evaluation results are as follows:
Sidewalk Inspected
• 1,013,760 LF (4.84M SF) of sidewalk inspected
• 31,545 LF (169,840 SF) of sidewalk in need of repair
• 3.5% of the City’s sidewalk needs to be repaired
Sidewalk Repairs Needed
• Cost of Sidewalk Repairs $4,670,600
• Cost of Tree Removal/Replacement $482,000
• Soft Costs* $2,576,300
• Total Cost of Needed Repair $7,728,900
* Soft costs are non -construction costs which include staff costs, design, construction management and inspection
NEXT STEPS
Using this information, and the locations of the deficiencies, the City will be divided into manageable repair neighborhoods and a process will be deve loped to address all the needed repairs so that our City will have a consistent, safe and walkable pedestrian network. Staff expects to present the updated Shared-Cost Sidewalk Replacement Program to Council in the spring.
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FISCAL IMPACT/FUNDING SOURCE
Funding for the Citywide Sidewalk Assessment has been funded through Vehicle Registration Fee funds (Fund 225). In the current ly adopted Capital Improvement Program, the City has budgeted $512,000 annually from FY21 through FY24 , due to a surplus of funds in the sidewalk program, for the Citywide Shared-Cost Sidewalk Repair Program (CIP Project 800320). In FY25, the annual funding may be reduced to the historical amount of $256,000. Given the $7.7M in needed sidewalk repairs, and assuming the annual fundi ng for sidewalk repairs will remain consistent at $256,000 in the years following FY25 project funding, it will take approximately 26 years to repair all the needed sidewalk in the City. Should the City continue to fund the future years of the sidewalk program at $512,000 per year, the citywide sidewalk repairs would be reduced to a duration of 15 years. Staff will make future funding recommendations as part of future budget processes.
Attachments:
1. Sidewalk Assessment Condition Map
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Attachment: Sidewalk Assessment Condition Map (3580 : Citywide Sidewalk Assessment Update)
City of Gilroy
STAFF REPORT
Agenda Item Title: Receive an Update on Refinancing Pension Obligation Project and Grant Initial Authorization to Proceed with the Issuance of Pension Obligation Bonds and the Related Judicial Validation Process Meeting Date: January 24, 2022
From: Jimmy Forbis, City Administrator
Department: Finance Department
Submitted By: Harjot Sangha
Prepared By: Harjot Sangha
Strategic Plan Goals
Develop a Financially
Resilient Organization
☐ Ensure Neighborhood
Equity from City
Services
☐ Promote Economic
Development
Activities
☐ Promote Safe,
Affordable Housing for All
☐ Maintain and Improve
City Infrastructure
RECOMMENDATION
1) Receive an update.
2) Adopt a Resolution authorizing the initial issuance of bonds to refund certain pension obligations of the City, approving the form and authorizing the execution of a trust agreement, authorizing judicial validation proceedings relating to the issuance of the such bonds and approving additional actions related thereto.
EXECUTIVE SUMMARY
City staff, in conjunction with discussions with City Council and its Municipal Advisor (NHA Advisors), has been exploring various cost management strategies to address rising CalPERS pension costs. One potential strategy th at the City wishes to preserve
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as an option in the future is the use of Pension Obligation bonds to meet several objectives, including:
• Generating cash flow savings to the City and taxpayers through historically low interest rates (currently ≈ 3.00 -3.50%) relative to the CalPERS interest rate assumption (currently 6.80%);
• To create a repayment shape for the City’s pension liabilities that enhances budget predictability and long -term fiscal sustainability by creating a smoother repayment shape at a lower level; and
• To set aside a portion of the projected budgetary savings to address other City Council priorities, such as capital project funding, economic development, public safety and/or other Strategic Plan objectives.
Depending on market conditions in th e future, the proposed refinancing could be achieved through the issuance of Pension Obligation Bonds (“Bonds” or “POBs”) by the City of Gilroy (“City”). However, as the first step in the issuance process, the City needs to initiate validation proceedings in the Santa Clara County Superior Court. After the process is successfully completed (≈ four months), the City will then have the opportunity to issue the Bonds if desired at that time. A thorough evaluation process is being recommended concurrently to the validation process so that all options, including benefits and risks, can be properly weighed by the City Council and other stakeholders.
Future City Council approvals would be required prior to the actual issuance of any POB.
BACKGROUND
Over the last seven years, the City’s unfunded accrued liability (“UAL”) for its CalPERS Miscellaneous and Safety Plans has grown 49%, from $66 million (6/30/2015 valuation) to about $99 million (6/30/2022 projected valuation). This UAL represents the shortfall/gap between what is needed to pay retiree benefits versus how much in current assets the City actually has in its accounts with CalPERS. As shown in Figure 1 on the next page, annual payments made to amortize the existing CalPERS UAL have grown rapidly from a bout $2.4 million in FY 2014 to over $7.0 million in FY 2022 and are projected to grow to over $11.0 million by FY 2031 based on the most recently released actuarial report.
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Figure 1. City of Gilroy Current UAL Payments
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Millions
Current UAL Payments
The City’s $99 million UAL is not required to be repaid all at once but is amortized over a longer period (with different components amortized over different time periods, most between 1 and 28 years) at a discount rate (equivalent to an interest rate charged on this debt) of 6.8% (recently decreased by CalPERS from 7.0%). The discount rate is set by CalPERS and completely outside the control of the City and other local agencies in the state. While not reflected in the recent CalPERS actuarial reports, it should be noted that the City’ s UAL is expected to drop from $99 million to approximately $75 million once the new 6.8% discount rate and FY 2021 investment returns of 21.3% are incorporated next year.
Pension cost increases are the largest financial challenge facing most cities and ot her local agencies throughout the state and are primarily due to factors outside of their control, namely actuarial assumption changes made by CalPERS and investment returns that do not meet CALPERS’ assumed investment return / discount rate.
The City is c onsidering issuing pension obligation bonds (POBs) to pay off all or a portion of its UAL to achieve several objectives:
• Fiscal Sustainability Tool: Ability to “re -shape” the City’s overall pension repayment in a way that creates enhanced long -term fiscal sustainability, budgetary predictability, and enhanced resiliency to future economic shocks.
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• Near-Term Budgetary Savings: By modifying the current near term “peak” in scheduled payments into a more predictable (i.e., level or nearly level) structure, near term cash flow savings are created and could be used to address other City priorities (capital projects, economic development, building reserves, etc.). • Interest Rate Savings “Arbitrage”: City can borrow at rates much lower (currently ≈ 3.00-3.50% depending on term and credit) than those CalPERS is charging on the UAL debt (6.80%). Similar to refinancing a higher interest rate mortgage or credit card, a POB would allow the City to convert higher interest rate debt to lower interest rate debt.
• Increase Fundi ng Ratio: Current ratios for the City’s classic safety and miscellaneous plans is about 68%; these could be increased to between 90% and 100% through the restructuring.
• Modify Maturity: Shorten or lengthen repayment period as deemed most fiscally appropriate.
• Leverage Savings through Improved Policies: Through the evaluation process, City Council and staff can discuss the intended uses of the projected savings and memorialize that through new policies that will provide a road map on how the City can leverage the savings to fund other important strategic objectives.
Numerous cities throughout California have recently refinanced their UAL to restructure the payment pattern and increase the funding level of their pension plans. Over 80 CalPERS members in total have refinanced their UAL in the last two years. Many others are scheduled to issue UAL restructuring bonds in the next few months. Interest rates set on these recent financings ranged from about 2.54% to 4.25%, with rates dictated by market conditions at the time of pricing, credit rating of the issuer, and length of term of the bonds. Most cities that issued POBs in 2021 have garnered interest rates between 2.54% and 3.50%.
While the validation process is ongoing (3 -4 months), City staff and the financi ng team will continue to explore with the City Council the various restructuring alternatives available with POBs in more depth. This will include a more in -depth evaluation of various sizes, repayment shapes and deeper analysis of potential risks, namely CalPERS reinvestment and market timing risk. Staff will also use this time to work with the City Council to determine how best to leverage the projected savings for other City priorities, as well as adopt a multipronged pension management strategy.
DISCUSSION
In order to continue exploring the POB option, it is necessary for the City Council to approve the initial issuance of POBs, the form of trust agreement and the commencement of the judicial validation process, all of which is accomplished via
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adoption of the Resolution and gives the financing team the authority and direction to continue moving the process forward.
Judicial Validation Process
The judicial validation process is the first step in the issuance process. The goal is to receive a court judgme nt confirming that the City may issue POBs payable from the General Fund without violating the constitutional debt limit set forth in Article XVI, Section 18, of the California Constitution that applies to the City’s use of its General Fund moneys. The val idation process typically takes about 3 to 4 months to complete but could be delayed depending on the impact of COVID -19 and other factors outside the City’s control. The City expects, at the conclusion of the validation process, that the Santa Clara Count y Superior Court will enter a judgment in favor of the City that the pension-related obligation of the City (i.e., the City’s UAL, existing at the current time and as may accrue in the future) represents an “obligation imposed by law,” which may be refunde d via issuance of POBs payable from the General Fund. Numerous prior court cases have determined that pension liabilities are obligations imposed by law, and, therefore, may be refunded with POBs without violating the constitutional debt limitation. This process is required to give bond investors assurance as to the validity of the bonds they are purchasing.
Trust Agreement
The trust agreement identifies the duties and responsibilities of the trustee, establishes the terms and conditions under which the bon ds are to be issued, and outlines the payment of the principal and interest. The City is not committed to any specific amount of POBs being issued as staff and the financing team will be evaluating a full range of options to ensure the optimal size and str ucture is executed to meet the City’s goals.
The preliminary analysis provided below and required good faith cost estimates are based on a total bond size of approximately $75 million (100% of the projected UAL after the CalPERS 21.3% FY 2021 returns and n ew 6.8% discount rate is incorporated), with the new payments to be smoothed out over the next 18 to 22 years (see Figure 2 on next page).
Financing Cost Estimates and Projected Savings
Good-faith estimates related to the planned issuance of POBs in 2022 a re included as an exhibit A to the attached resolution . Fees for the financing team will be paid through (or reimbursed from) the financing process and only upon successful completion of the potential POB financing.
As noted earlier, several options will be explored and presented to the City Council, and City staff, with guidance from its municipal advisor, will ultimately decide which option is most prudent, if any, to execute. It is important to note, adopting the resolution and commencing the validation process simply provides the City with a basis to issue POBs in the future. It does not in any way obligate the City to issue the POBs.
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The Figure 2 & 3 below have been included to better illustrate the potential benefit of the POB, but as previously note d, this analysis should be considered preliminary. The analysis assumes that 100% of the projected, new UAL amount is paid off ($75.3 million) and that the new debt payments are structured to be level through 2040 and 2044 respectively. Two preliminary opt ions are shown for simplicity, but as noted before, as part of the evaluation process over the next several months, several sizes, terms and repayment shapes will be evaluated in order to tailor a proposed structure to the City’s various budgetary goals, constraints and risk tolerance.
Figure 2. City of Gilroy – Preliminary UAL Restructuring Analysis/Projected Savings
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Figure 3. City of Gilroy - Preliminary UAL Restructuring Analysis/Projected Savings Metrics
18-Year POB
(Level)
22-Year POB
(Level)
$ UAL Funded (6/30/22) $75,300,000 $75,300,000
% UAL Funded (Current Asset Valuations) 76% 76%
Funded Ratio (Current Asset Valuations) 92% 92%
% UAL Funded (Projected After FY 2021 Returns & 6.8%
Discount Rate) 100% 100%
Funded Ratio (Projected After FY 2021 Returns & 6.8%
Discount Rate) 100% 100%
Maturity 18 Years 22 Years
Average Life 10.2 Years 12.7 Years
All-In Interest Rate 3.24% 3.40%
Present Value Savings (%) 20.33% 18.89%
Present Value Savings ($) $15,310,952 $14,221,856
Cumulative Savings $14,898,505 $7,262,362
Savings (2023-2036) $28,391,701 $37,743,481
Average Annual Savings (2023-2036) $2,027,979 $2,695,963 * Savings assumes CalPERS earns 6.8% annually
The blue bars in Figure 2 above represent the C ity’s projected repayment schedule for the City’s projected, lower $75 million UAL. The lines represent the debt service payments for pension obligation bonds of 18 and 22 years of length. For the 18 -year POB, estimated present value (PV) savings is about $15.3 million, or 20.3% of refunded UAL. Average annual estimated savings through 2036 are about $2.0 million, with total savings estimated at $28.4 million over the next 14 years. For the 22 -year POB, estimated present value (PV) savings is about $14.2 m illion, or 18.9% of refunded UAL.
Average annual estimated savings through 2036 are about $2.7 million, with total savings estimated at $37.7 million over the next 14 years. It should be noted that these metrics are based on current interest rates; actual interest rates would not be determined until the time of pricing of bonds in the future.
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Reinvestment Risk
Ultimately, actual savings from the restructuring will be dependent on two factors:
• Actual interest rates at the time of pricing; and
• Future CalPERS returns, which is an unknown at the time of bond issuance. The rule of thumb is that the City will be better off if CalPERS earns above the POB interest rate (3.00 -3.50%) over the term of the debt. While past performance doesn’t guarantee future resu lts, CalPERS historical returns are 6.9% on average over the last 20 years and 8.4% over the last 30 years.
Assessing and mitigating reinvestment risk will be a key objective as the City and its team evaluate and refine structuring options for City Council consideration during the process. The City will be working with its financing team, and potentially other experts (i.e. actuaries, underwriters, etc.) to properly quantify the reinvestment risk of the various options.
Concurrent to the validation process, Staff will return to the City Council to review restructuring alternatives and will also include stress testing analysis to demonstrate the estimated impact to the City (with and without a POB) assuming a large stock market crash after the POB issuance.
Formal Pension Funding Policy
Staff will develop a formal pension funding policy that will incorporate Council’s previous direction and or consider leveraging a portion of the savings created through the POBs to fund the Section 115 Trust account. These fun ds will serve as a shock absorber to mitigate any potential future UAL that gets added by CalPERS. Creating prudent financial policies to ensure that future pension and OPEB liabilities continue to be addressed is critical to ensure long term financial sus tainability, remain solvency and will also assist during the credit rating process, as it demonstrates strong financial planning and policy.
Addressing Other City Strategic Objectives
Given the amount of projected savings to the City through the UAL Restru cturing, it will be important to also evaluate how any potential budgetary surplus created by these savings should most prudently be used. Staff intends to work with Council over the next several months to identify key priorities to be addressed via the projected savings.
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NEXT STEPS
Assuming that the City Council approves the resolution, the validation process will be initiated. Key milestones of the validation process are listed below:
• City Council passes a resolution authorizing the sale of POBs • File Validation Action with Santa Clara County Superior Court • Receive Order for Publication of Summons from the Court • Publication of notice in local newspaper
• Waiting period for any responding party to file a response to the action • Court enters default judgment if there is no responding party • 30-day appeal period for the judgment
During the validation period, staff and the financing team will refine the various options for the POBs. These options may include evaluating different sizes of POBs, amortization shapes, maturities (length of term) and targeted funded ratios. Also, during this time, a preliminary official statement (POS) will be drafted (which is the disclosure document used to solicit investor interest in the POBs), the pension funding policy, and a credit rating presentation will be prepared in order to obtain a credit rating for the possible financing. It is anticipated the team could be in position to return to the City Council for official approval of the pension obligation bonds, and related do cuments, in April or May of 2022, but this exact date will be dictated by the actual duration of the validation action, the municipal market interest rate environment and guidance from City Council through this process. If interest rates rise to significantly higher levels, it is likely that staff and NHA Advisors will recommend against issuing any POBs this year.
Engagement of Financing Team
The Resolution also appoints various members of the Financing Team. NHA Advisors LLC is designated to serve as mu nicipal advisor to the City; and Nixon Peabody, is designated to serve as bond counsel and disclosure counsel to the City. NHA has worked on over 20 CalPERS UAL restructurings in the last 1.5 years and both firms have extensive experience serving the City of Gilroy on recent bond transactions.
CONCLUSION
Staff recommends the City Council approve this resolution, so that staff and the financing team can continue exploring the feasibility of UAL restructuring using POBs in greater detail and put the City in p osition to take advantage of this opportunity if certain objectives are met. As stated previously, adopting the resolution and commencing the validation process only provides the City with a basis to issue POBs in the future. It does not obligate the City to issue POBs. The financing team expects to return to the
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City Council in the next couple of months to provide an update on the process and receive further guidance on POB structuring options.
ALTERNATIVES
The City Council could decide to not approve the resolution and form of draft financing documents and the validation proceedings.
FISCAL IMPACT/FUNDING SOURCE
Interest rate savings generated from the proposed refinancing will be passed on to the General Fund and the utility funds. Exhibit A to the resol ution includes information required to be disclosed in a meeting open to the public pursuant to SB 450. Such information includes the true interest cost of the bonds, finance charges of the bonds, amount of proceeds received by the Authority and the City and the total payment amount. This is based on a preliminary bond size of approximately $75.9M, but as noted earlier, many different sizes (smaller and large r) will be evaluated during the process.
Attachments:
1. Draft Resolution with Exhibit A - SB 450 Good Faith Estimates
2. Trust Agreement
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4868-4199-4504.2
RESOLUTION NO. _______
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GILROY AUTHORIZING THE ISSUANCE OF BONDS TO
REFUND CERTAIN PENSION OBLIGATIONS OF THE CITY,
APPROVING THE FORM AND AUTHORIZING THE
EXECUTION OF A TRUST AGREEMENT , AUTHORIZING
JUDICIAL VALIDATION PROCEEDINGS RELATING TO
THE ISSUANCE OF SUCH BONDS AND APPROVING
ADDITIONAL ACTIONS RELATED THERETO
WHEREAS, the City of Gilroy (the “City”) has previously adopted a retirement plan pursuant to the Public Employees’ Retirement Law, commencing with Section 20000 of the Government Code of the State of California, as amended (the “Retirement Law”) and elected to become a contracting member of the California Public Employees’ Retirement System (“PERS”); WHEREAS, the Retirement Law and the contract (the “PERS Contract”) between the Board of Administration of PERS and the City C ouncil of the City (the “City Council”) obligate the City to (i) make contributions to PERS to fund pension benefits for certain City employees, (ii) amortize the unfunded accrued actuarial liability with respect to such pension benefits, and (iii) appropriate funds for the foregoing purposes;
WHEREAS, the City desires to authorize the issuance of its Taxable Pension Obligation Bonds (the “Bonds”) pursuant to the provisions of Articles 10 and 11 of Chapter 3 of Part 1 of Division 2 of Title 5 of the Califor nia Government Code, commencing with Section 53570 of said Code (the “Bond Law”), in a maximum principal amount not to exceed that required for the purpose of refunding all or a portion of the City’s current obligation to PERS for fiscal year 20 22-23, pursuant to the PERS Contract, to pay all or a portion of the unfunded accrued actuarial liability of the City (the “ Unfunded Liability ”) with respect to pension benefits under the Public Employees’ Retirement Law and the PERS Contract, to pay capitalized interest on the Bonds and to pay the costs of issuance of such Bonds, including the underwriter’s discount and any original issue discount on such Bonds;
WHEREAS, the City expects that the need may arise in the future to issue additional refunding bonds (the “ Additional Bonds”) pursuant to the Bond Law to amortize the accrued and Unfunded Liability of the City to PERS as required by the Retirement Law and the PERS Contract and to fund all or a portion of the normal contributions required by the PERS Contract; WHEREAS, the Bonds will be issued under and secured by a Trust Agreement (such Trust Agreement, in the form presented to this meeting, with such changes, insertions and omissions as are made pursuant to this Resolution, being referred to herein as the “Trust Agreement”); and WHEREAS, the City has determined the advisability of filing an action to determine the validity of the Bonds, the Additional Bonds and the Trust Agreement, and the actions proposed to be taken in connection therewith;
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Attachment: Draft Resolution with Exhibit A - SB 450 Good Faith Estimates (3615 : Refinancing Pension Obligations Meeting #2) 4868-4199-4504.2
2 WHEREAS, in complia nce with SB 450, the City has obtained from its Municipal Advisor the required good faith estimates and such estimates are disclosed and set forth in Exhibit A attached hereto; and
WHEREAS, all acts, conditions and things required by the laws of the State of California to exist, to have happened and to have been performed precedent to and in connection with the consummation of the financing authorized hereby do exist, have happened and have been performed in regular and due time, form and manner as required by law, and the City is now duly authorized and empowered, pursuant to each and every requirement of law, to consummate such financing for the purpose, in the manner and upon the terms herein provided; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Gilroy as follows:
The City Council does hereby find and declare that the above recitals are true and correct.
The issuance of the Bonds on the terms and conditions set forth in, and subject to the limitations specified in, the Trust Agreement, is hereby authorized and approved. The Bonds shall be dated, shall bear interest at the rates, shall mature on the dates, shall be issued in the form and shall have terms as provided in the Trust Agreement, as the same s hall be completed in accordance with this Resolution. The title of the Bonds may be changed to reflect the year in which the Bonds are issued, and to reflect the appropriate series designation, as directed by the City Administrator of the City.
The Trust Agreement, in substantially the form submitted to this meeting and made a part hereof as though set forth in full herein, is hereby approved. The Mayor of the City, or such member of the City Council as the Mayor may designate, the City Administrator of the City, the Finance Director of the City , and their authorized designees (the “Authorized Officers”) are, and each of them is, hereby authorized and directed, for and in the name of the City, to execute and deliver the Trust Agreement in the form present ed to this meeting, with such changes, insertions and omissions as the Authorized Officer executing the same may require or approve, such requirement or approval to be conclusively evidenced by the execution of the Trust Agreement by such Authorized Officer. The City Clerk of the City is hereby authorized and directed to attest the Trust Agreement for and in the name and on behalf of the City.
The City hereby authorizes and approves the issuance of Additional Bonds pursuant to the Bond Law, as authorized by the Trust Agreement, from time to time, to refund all or a portion of the Unfunded Liability and the City’s obligation to PERS pursuant to the PERS Contract for the then-current fiscal year, provided that the City Administrator, or his designee, first certifies to the Council in writing that such actions will result in cost savings to the City. The City authorizes any one of the Authorized Officers, or their designees, to execute and deliver one or more other trust agreements and/or one or more supplemen tal agreements supplementing or amending the Trust Agreement and providing for the issuance of Additional Bonds (each an “Additional Trust Agreement”); provided, however, that (i) each series of Additional Bonds shall be in a principal amount not to exceed the sum of the Unfunded Liability of the City to PERS under the PERS Contract and the Retirement Law remaining unpaid on the date of issuance of such Additional Bonds, the obligation to PERS for the current fiscal year pursuant to the PERS Contract and the costs of issuing the Additional Bonds, (ii) the stated interest rate on the Additional Bonds shall not exceed
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Attachment: Draft Resolution with Exhibit A - SB 450 Good Faith Estimates (3615 : Refinancing Pension Obligations Meeting #2) 4868-4199-4504.2
3 the discount rate assumed by PERS with respect to the amortization of the Unfunded Liability at the time such Additional Bonds are issued, and ( iii) the Additional Bonds issued pursuant to such Additional Trust Agreement shall mature not later than 30 years from the date of their issuance.
Each Unfunded Liability refunded by the Bonds and each series of Additional Bonds pursuant to the Trust Agree ment and each Additional Trust Agreement constitutes an obligation imposed by law, pursuant to the Constitution and laws of the State of California and an obligation of the City not limited as to payment from any special source of funds. The Unfunded Liab ility refunded by the Bonds pursuant to the Trust Agreement and each series of Additional Bonds pursuant to an Additional Trust Agreement shall not, however, constitute an obligation of the City for which the City is obligated or permitted to levy or pledg e any form of taxation or for which the City has levied or pledged or will levy or pledge any form of taxation.
The City Administrator of the City, the Finance Director of the City, and their designees are each authorized, on behalf of the City, to establi sh and determine (i) the final principal amount of the Bonds, provided the aggregate initial principal amount of the Bonds shall not be greater than the sum of the City’s obligation to PERS for fiscal year 20 22-23, as evidenced by the PERS Contract, and th e Unfunded Liability as calculated by PERS or other actuary selected by the Authorized Officer, together with the costs of issuing the Bonds as approved by such Authorized Officer, and (ii) the final interest rates on various maturities of the Bonds, provi ded that the maturity date of the Bonds shall not exceed 30 years.
The City Administrator of the City, the Finance Director of the City, and their respective designees are hereby authorized to negotiate and execute an insurance policy and debt service reserve fund insurance policy for the Bonds (and such other agreements that may be required by the insurer in connection therewith) if it is determined that the policies will result in interest rate savings for the City, and to pay the insurance pr emium of such policies from the proceeds of the issuance and sale of the Bonds.
The Authorized Officers are each authorized to execute contracts with Nixon Peabody LLP , to act as Bond and Disclosure C ounsel, and with NHA Advisors, LLC , to act as Municipal Advisor.
In order to determine the validity of the Bonds, the Additional Bonds, the Trust Agreement and the Additional Trust Agreements, and the actions authorized hereby to be taken in connection therewith, the City Council hereby authorizes the City Atto rney, in concert with Nixon Peabody LLP , Bond Counsel, to prepare and cause to be filed and prosecuted to completion all proceedings required for the judicial validation of the Bonds, the Additional Bonds, the Trust Agreement and the Additional Trust Agree ments in the Superior Court of Santa Clara County, under and pursuant to the provisions of Sections 860 et seq. of the California Code of Civil Procedure. The City Council further authorizes the Authorized Officers and all other officers, employees and ag ents of the City to take any and all actions, including the execution and delivery or appropriate documentation, as may be required to conclude such judicial validation proceedings.
The Authorized Officers are, and each of them hereby is, authorized and directed to execute and deliver any and all documents and instruments and to do and cause to be done any and all acts and things necessary or proper for carrying out the transactions contemplated hereby, including, but not limited to, the preparation of an O fficial Statement (and a Preliminary Official Statement) for use in connection with the offering and sale of the Bonds, the execution and delivery
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Attachment: Draft Resolution with Exhibit A - SB 450 Good Faith Estimates (3615 : Refinancing Pension Obligations Meeting #2) 4868-4199-4504.2
4 of a continuing disclosure undertaking and the execution and delivery of any documents required by PERS in order to complete the issuance of the Bonds.
All actions heretofore taken by the Authorized Officers and by any other officers, employees or agents of the City with respect to the issuance of the Bonds, or in connection with or related to any of the agreemen ts or documents referenced herein, are hereby approved, confirmed and ratified.
This Resolution shall take effect from and after the date of approval and adoption hereof.
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Attachment: Draft Resolution with Exhibit A - SB 450 Good Faith Estimates (3615 : Refinancing Pension Obligations Meeting #2) 4868-4199-4504.2
5 The City Clerk of the City of Gilroy shall certify as to the adoption of this Resolution.
PASSED, APPROVED AND ADOPTED this ____ day of __________, 2022.
____________________________________
MAYOR
ATTEST:
____________________________________
CITY CLERK
APPROVED AS TO LEGAL FORM:
____________________________________
CITY ATTORNEY
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Attachment: Draft Resolution with Exhibit A - SB 450 Good Faith Estimates (3615 : Refinancing Pension Obligations Meeting #2) 4868-4199-4504.2
A-1
EXHIBIT A
SB 450 GOOD FAITH ESTIMATES
The good faith estimates set forth herein are provided with respect to the Bonds in accordance with California Government Code Section 5852.1. Such good faith estimates have been provided to the City by NHA Advisors, LLC, the City’s Municipal Advisor (the “Municipal Advisor”).
Principal Amount. The Municipal Advisor has informed the City that, based on the City’s financing plan and current market conditions, its good faith estimate of the aggregate principal amount of the Bonds to be sold is $75,880,000.00 (the “Estimated Principal Amounts”).
True Interest Cost of the Bonds. The Municipal Advisor has informed the City that, assuming that the respective Estimated Principal Amounts of the Bonds are sold, and b ased on market interest rates prevailing at the time of preparation of such estimate, its good faith estimate of the true interest cost of the Bonds, which means the rate necessary to discount the amounts payable on the respective principal and interest payment dates to the purchase price received for the Bonds, is
3.1922128%.
Finance Charge of the Bonds. The Municipal Advisor has informed the City that, assuming that the Estimated Principal Amounts of the Bonds are sold, and based on market interest rates prevailing at the time of preparation of such estimate, its good faith estimate of the finance charge for the Bonds, which means the sum of all fees and charges paid to third parties (or costs associated with the Bonds), is $578,520.00.
Amount of Proceeds to be Received. The Municipal Advisor has informed the City that, assuming that the Estimated Principal Amounts of the Bonds are sold, and based on market interest rates prevailing at the time of preparation of such estimate, its good faith estimate of the amount of proceeds expected to be received by the City for sale of the Bonds, less the finance charge of the Bonds, as estimated above, and any capitalized interest on the Bonds paid or funded with proceeds of the Bonds, is $75,301,480.00.
Total Payment Amount. The Municipal Advisor has informed the City that, assuming that the Estimated Principal Amounts of the Bonds are sold, and based on market interest rates prevailing at the time of preparation of such estimate, its good faith estimat e of the total payment amount, which means the sum total of all payments the City will make to pay debt service on the Bonds, plus the finance charge for the Bonds, as described above, not paid with the respective proceeds of the Bonds, calculated to the final maturity of the Bonds, is $100,531,494.88.
The foregoing estimates constitute good faith estimates only and are based on market conditions prevailing at the time of preparation of such estimates on January 13, 2022. The actual principal amount of the Bonds issued and sold, the true interest cost thereof, the finance charges thereof, the amount of proceeds received therefrom and total payment amount with respect thereto may differ from such good faith estimates due to (a) the actual date of the sale of the Bonds being different than the date assumed for purposes of such estimates, (b) the actual principal amount of Bonds sold being different from the respective Estimated Principal Amounts, (c) the actual amortization of the Bonds being different than th e amortization assumed for purposes of such
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Attachment: Draft Resolution with Exhibit A - SB 450 Good Faith Estimates (3615 : Refinancing Pension Obligations Meeting #2) 4868-4199-4504.2
A-2
estimates, (d) the actual market interest rates at the time of sale of the Bonds being different than those estimated for purposes of such estimates, (e) other market conditions, or (f) alterations in the City’s financing plan, or a combination of such factors. The actual date of sale of the Bonds and the actual principal amount of Bonds sold will be determined by the City based on various factors. The actual interest rates borne by the Bonds will depend on mark et interest rates at the time of sale thereof. The actual amortization of the Bonds will also depend, in part, on market interest rates at the time of sale thereof. Market interest rates are affected by economic and other factors beyond the control of the City.
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Attachment: Draft Resolution with Exhibit A - SB 450 Good Faith Estimates (3615 : Refinancing Pension Obligations Meeting #2)
TRUST AGREEMENT
by and between
CITY OF GILROY
and
____________________,
as Trustee
Dated as of ________ 1, 2022
Relating to
$_________
CITY OF GILROY
2022 TAXABLE PENSION OBLIGATION BONDS
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Attachment: Trust Agreement (3615 : Refinancing Pension Obligations Meeting #2)
TABLE OF CONTENTS
Page
i
ARTICLE I
DEFINITIONS; INTERPRETATION
Section 1.01 Certain Defined Terms .............................................................................................. 1 Section 1.02 Other Definitional Provisions .................................................................................... 7
ARTICLE II
THE BONDS
Section 2.01 Issuance of Bonds; Form; Dating .............................................................................. 7 Section 2.02 Description of the Bonds ........................................................................................... 7 Section 2.03 Interest on the Bonds ................................................................................................. 8 Section 2.04 Medium of Payment .................................................................................................. 8 Section 2.05 Form ........................................................................................................................... 9 Section 2.06 Additional Bonds ....................................................................................................... 9
ARTICLE III
EXECUTION, AUTHENTICATION AND EXCHANGE OF BONDS;
BOOK ENTRY BONDS
Section 3.01 Execution and Authentication; Registration .............................................................. 9 Section 3.02 Transfer or Exchange of Bonds ............................................................................... 10 Section 3.03 Book-Entry Bonds ................................................................................................... 10 Section 3.04 Mutilated, Lost, Stolen or Destroyed Bonds ........................................................... 12 Section 3.05 Destruction of Bonds ............................................................................................... 12 Section 3.06 Temporary Bonds .................................................................................................... 12
ARTICLE IV
REDEMPTION OF BONDS
Section 4.01 Notices to Trustee; Notices to Bondholders; Notices to DTC ................................. 13 Section 4.02 Optional Redemption of Bonds ............................................................................... 13 Section 4.03 Mandatory Sinking Fund Redemption of Bonds ..................................................... 15 Section 4.04 Payment of Bonds Called for Redemption; Effect of Redemption Call .................. 16 Section 4.05 Selection of Bonds for Redemption; Bonds Redeemed in Part ............................... 16
ARTICLE V
APPLICATION OF PROCEEDS;
SOURCE OF PAYMENT OF BONDS
Section 5.01 Application of Proceeds and City Contribution ....................................................... 17 Section 5.02 Sources of Payment of Bonds; Semi-Annual Payments by the City ....................... 17
ARTICLE VI
CREATION OF CERTAIN FUNDS AND ACCOUNTS
Section 6.01 Creation of Costs of Issuance Fund ......................................................................... 18 Section 6.02 Creation of Revenue Fund and Certain Accounts ................................................... 18 Section 6.03 Creation of Redemption Fund ................................................................................. 19 Section 6.04 Moneys Held in Redemption Fund .......................................................................... 19 Section 6.05 Unclaimed Moneys .................................................................................................. 19
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TABLE OF CONTENTS
(continued)
Page
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ARTICLE VII
CONCERNING PAYING AGENT
Section 7.01 Paying Agent; Appointment and Acceptance of Duties .......................................... 19 Section 7.02 Paying Agent - General Responsibilities ................................................................. 19 Section 7.03 Certain Permitted Acts ............................................................................................. 20 Section 7.04 Resignation or Removal of Paying Agent and Appointment of Successor ............. 20
ARTICLE VIII
COVENANTS OF THE CITY
Section 8.01 Payment of Principal and Interest ............................................................................ 20 Section 8.02 Performance of Covenants by City; Authority; Due Execution .............................. 21 Section 8.03 Instruments of Further Assurance ............................................................................ 21 Section 8.04 No Inconsistent Action ............................................................................................ 21 Section 8.05 No Adverse Action .................................................................................................. 21 Section 8.06 Maintenance of Powers ............................................................................................ 21 Section 8.07 Covenants of City Binding on Successors ............................................................... 22 Section 8.08 Trust Agreement to Constitute a Contract ............................................................... 22 Section 8.09 City to Perform Pursuant to Continuing Disclosure Certificate .............................. 22
ARTICLE IX
INVESTMENTS
Section 9.01 Investments Authorized ........................................................................................... 22 Section 9.02 Reports ..................................................................................................................... 23 Section 9.03 Valuation and Disposition of Investments ............................................................... 23 Section 9.04 Application of Investment Earnings ........................................................................ 23
ARTICLE X
DEFEASANCE
Section 10.01 Discharge of Bonds; Release of Trust Agreement ................................................... 23 Section 10.02 Bonds Deemed Paid ................................................................................................. 24
ARTICLE XI
DEFAULTS AND REMEDIES
Section 11.01 Events of Default ..................................................................................................... 24 Section 11.02 Remedies.................................................................................................................. 25 Section 11.03 Restoration to Former Position ................................................................................ 25 Section 11.04 Bondholders’ Right to Direct Proceedings on their Behalf ..................................... 26 Section 11.05 Limitation on Bondholders’ Rights to Institute Proceedings ................................... 26 Section 11.06 No Impairment of Right to Enforce Payment .......................................................... 26 Section 11.07 Proceedings by Trustee Without Possession of Bonds ............................................ 26 Section 11.08 No Remedy Exclusive ............................................................................................. 26 Section 11.09 No Waiver of Remedies ........................................................................................... 27 Section 11.10 Application of Moneys ............................................................................................ 27 Section 11.11 Severability of Remedies ......................................................................................... 27 Section 11.12 Additional Events of Default and Remedies............................................................ 28
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TABLE OF CONTENTS
(continued)
Page
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ARTICLE XII
TRUSTEE; REGISTRAR
Section 12.01 Acceptance of Trusts ............................................................................................... 28 Section 12.02 Duties of Trustee ...................................................................................................... 28 Section 12.03 Rights of Trustee ...................................................................................................... 29 Section 12.04 Individual Rights of Trustee .................................................................................... 30 Section 12.05 Trustee’s Disclaimer ................................................................................................ 30 Section 12.06 Notice of Defaults .................................................................................................... 30 Section 12.07 Compensation of Trustee ......................................................................................... 30 Section 12.08 Eligibility of Trustee ................................................................................................ 31 Section 12.09 Replacement of Trustee ........................................................................................... 31 Section 12.10 Successor Trustee or Agent by Merger.................................................................... 31 Section 12.11 Registrar ................................................................................................................... 32 Section 12.12 Other Agents ............................................................................................................ 32 Section 12.13 Several Capacities .................................................................................................... 32 Section 12.14 Accounting Records and Reports of Trustee ........................................................... 32 Section 12.15 No Remedy Exclusive ............................................................................................. 32
ARTICLE XIII
MODIFICATION OF THIS TRUST AGREEMENT
Section 13.01 Limitations ............................................................................................................... 32 Section 13.02 Supplemental Agreements Not Requiring Consent of Bondholders ....................... 33 Section 13.03 Supplemental Agreement Requiring Consent of Bondholders ................................ 33 Section 13.04 Effect of Supplemental Agreements ........................................................................ 34 Section 13.05 Supplemental Agreements to be Part of this Trust Agreement ............................... 34
ARTICLE XIV
MISCELLANEOUS PROVISIONS
Section 14.01 Parties in Interest ..................................................................................................... 34 Section 14.02 Severability .............................................................................................................. 35 Section 14.03 No Personal Liability of City Officials; Limited Liability of City to Bondholders ............................................................................................................. 35 Section 14.04 Execution of Instruments; Proof of Ownership ....................................................... 35 Section 14.05 Governing Law; Venue ............................................................................................ 36 Section 14.06 Notices ..................................................................................................................... 36 Section 14.07 Holidays ................................................................................................................... 36 Section 14.08 Captions ................................................................................................................... 37 Section 14.09 Counterparts ............................................................................................................. 37
Exhibit “A” Form of Bond ......................................................................................................... A-1 Exhibit “B” Form of Requisition ............................................................................................... B-1
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TRUST AGREEMENT
This TRUST AGREEMENT is dated as of ________ 1, 2022, and is made by and between the CITY OF GILROY, a charter city duly organized and validly existing under and pursuant to the Constitution and the laws of the State of California (the “ City”), and _____________, a national banking association organized and existing under the laws of the United States of America, as tr ustee (the “Trustee”).
RECITALS
WHEREAS, the City is a member of the California Public Employees’ Retirement System (“PERS”) and, as such, is obligated by the Public Employees’ Retirement Law, constituting Part 3 of Division 5 of Title 2 of the California Government Code (the “ Retirement Law”), and the contract between the Board of Administration of PERS and the City Council of the City (as may be amended, the “PERS Contract”), to make contributions to PERS to (a) fund pension benefits for its employees who are members of PERS, (b) amortize the unfunded actuarial liability with respect to such pension benefits, and (c) appropriate funds for the purposes described in (a) and (b); and WHEREAS, the City is authorized pursuant to Articles 10 and 11 (commencing with Section 53570) of Chapter 3 of Division 2 of Title 5 of the California Government Code (the “ Refunding Law”) to issue bonds for the purpose of refunding certain obligations of the City, including the obligations set forth in the PERS Contract; and
WHEREAS, for the purpose of refunding the City’s unamortized, unfunded accrued actuarial liability with respect to pension benefits under the Retirement Law (the “ Unfunded Liability”), and to pay the costs of issuance, including underwriter’s discount and any original issue discount, the City has determined to issue its ____________ City of Gilroy 2022 Taxable Pension Obligation Bonds (the “ Bonds”), all pursuant to and secured by this Trust Agreement providing for the issuance of the Bonds, all in the manner provided herein; NOW THEREFORE, the City and the Trustee agree as follows, each for the benefit of the other and the benefit of holders of the Bonds (as defined below) issued in accordance with this Trust Agreement.
ARTICLE I
DEFINITIONS; INTERPRETATION
Section 1.01 Certain Defi ned Terms . The terms defined in this Article I shall, for all purposes of this Trust Agreement, have the meanings specified unless the context clearly requires otherwise.
“Account” means any account established pursuant to this Trust Agreement. “Additional Bonds” means bonds issued in accordance with Section 2.06 hereof. “Annual Debt Service ” means, for any Bond Year, the sum of the aggregate amount of principal required to be paid on Bonds during such Bond Year either at maturity or pursuant to a
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2 mandatory sinking fund payment and the interest due on the Bonds on each Interest Payment Date during such Bond Year.
“Authorized City Representative ” means the City Administrator, the Finance Director, or any officer authorized to act on their respective behalves. “Authorized Denominations” means $5,000 and any integral multiple thereof (except that while Bonds are registered in book -entry form, they may be held in amounts other than an integral multiple so long as the amount exceeds $5,000).
“Beneficial Owner” means, whenever used with respect to a Bond, the person in whose name such Bond is recorded as the beneficial owner of such Bond by a Participant on the records of such Participant or such person’s subrogee.
“Bond” or “ Bonds” means the bonds issued under this Trust Agreement and designated as “City of Gilroy 2022 Taxable Pension Obligation Bonds.” “Bond Counsel ” means (a) Nixon Peabody LLP , or (b) a firm of attorneys nationally recognized as experts in the area of municipal finance who are familia r with the transactions contemplated under this Trust Agreement and acceptable to the City. “Bond Interest Account ” means the Account of that name established within the Revenue Fund pursuant to Section 6.02(a) hereof.
“Bond Principal Account” means the Account of that name established within the Revenue Fund pursuant to Section 6.02(a) hereof.
“Bond Year” means the twelve-month period commencing on each June 2 and ending on the next succeeding June 1, except that the first Bond Year shall commence on the C losing Date and end on June 1, 2023.
“Book-Entry Bonds” means the Bonds held by DTC (or its nominee) as the registered owner thereof pursuant to the terms and provisions of Section 3.03 hereof. “Business Day” means a day (a) other than a day on which banks located in the City of New York, New York or the cities in which the respective pr incipal offices of the Trustee or any Paying Agent are located, are required or authorized by law or executive order to close, and (b) on which the New York Stock Exchange is open.
“Closing Date” means ___________, 2022.
“Consultant” means the accountant, attorney, consultant, municipal finance consultant or investment banker, or firm thereof, retained by the City to perform acts and carry out the duties provided for such Consultant in this Trust Agreement. Such accountant, attorney, consultant, municipal finance consultant or investment banker, or firm thereof, shall be nationally recognized within its profession for work of the character required. “Continuing Disclosure Certificate ” means that certain Continuing Disclosure Certificate executed and delivered by the City, dated ___________, 2022, as originally executed and as it may be amended from time to time in accordance with the terms thereof.
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3 “Costs of Issuance” means all costs and expenses incurred by the City in connection with the issuance of the Bonds and the refunding of the Unfunded Liability, including, but not limited to, out - of-pocket expenses of the City, costs and expenses of printing and copying documents and the Bonds and the fees, costs and expenses of Rating Agencies, credit providers or enhancers, the Trustee, counsel to the Trustee, Bond Counsel, the verification agent, accountants, municipal finance consultant, disclosure counsel and other consultants and the premi um for any municipal bond insurance and surety bond insurance.
“Defeasance Securities” means any of the following: (a) non-callable direct obligations of the United States of America (“Treasuries”), (b) evidence of ownership of proportionate interests in future interest and principal payments on Treasuries held by a bank or trust company as custodian, under which the owner of the investment is the real party in interest and has the right to proceed directly and individually against the obligor and the unde rlying Treasuries are not available to any person claiming through the custodian or to whom the custodian may be obligated, and (c) pre- refunded municipal obligations rated “AAA” and “Aaa” by S&P and Moody’s, respectively (or any combination thereof), which shall be authorized to be used to effect defeasance of the Bonds. “DTC” means The Depository Trust Company, a limited -purpose trust company organized under the laws of the State of New York, and its successors and assigns. “Event of Default” means any occurrence or event specified in Section 11.01 hereof. “Fiduciary or Fiduciaries” means the Trustee, any Paying Agent, or any or all of them, as may be appropriate.
“Fiscal Year” means the period of time beginning on July 1 of each given year and ending on J une 30 of the immediately subsequent year, or such other period as the City designates as its fiscal year.
“Fitch” means Fitch Ratings Inc.
“Fund” means any fund established pursuant to this Trust Agreement. “Holder,” or “Bondholder,” “owner” or “registered owner” means the registered owner of any Bonds, including DTC or its nominee as the sole registered owner of Book-Entry Bonds. “Information Services ” means any one or more of the national information services that Trustee determines are in the b usiness of disseminating notices of redemption of obligations such as the Bonds.
“Interest Payment Date ” means June 1 and December 1 of each year commencing December 1, 2022.
“Mail” means by first-class United States mail, postage prepaid. “Moody’s” means Moody’s Investors Service, Inc., New York, New York, and its successors, and, if such corporation shall for any reason no longer perform the functions of a securities rating agency, “Moody’s” shall be deemed to refer to any other nationally recognized rating agency designated by the City.
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4 “Opinion of Bond Counsel” means a written opinion of Bond Counsel. “Outstanding,” with respect to the Bonds, means all Bonds which have been authenticated and delivered under this Trust Agreement, except:
(a) Bonds cancelled or purchased by the Trustee for cancellation or delivered to or acquired by the Trustee for cancellation and, in all cases, with the intent to extinguish the debt represented thereby.
(b) Bonds deemed to be paid in accordance with Section 10.02 hereof. (c) Bonds in lieu of which other Bonds have been authenticated under Sections 3.02 and 3.04 hereof.
(d) Bonds that have become due (at maturity, on redemption, or otherwise) and for the payment of which sufficient moneys, including interest accreted or acc rued to the due date, are held by the Trustee or a Paying Agent.
(e) For purposes of any consent or o ther action to be taken by the H olders of a specified percentage of Bonds Outstanding under this Trust Agreement, Bonds held by or for the account of the C ity or by any person controlling, controlled by or under common control with the City, unless such Bonds are pledged to secure a debt to an unrelated party, in which case such Bonds shall, for purposes of consents and other Bondholder action, be deemed to be Outstanding and owned by the party to which such Bonds are pledged. Nothing herein shall be deemed to prevent the City from purchasing Bonds from any party out of any funds available to the City. “Participant” means the participants of DTC which includ e securities brokers and dealers, banks, trust companies, clearing corporations and certain other organizations. “Paying Agent” means any paying agent for the Bonds , or successor thereto, appointed by the City pursuant to Sections 8.01 or 8.02 hereof, and any successor appointed pursuant to Section 7.04 hereof.
“Permitted Investments” means the following:
(1) Direct obligations of the United States of America and securities fully and unconditionally guaranteed as to the timely payment of principal and inter est by the United States of America (“U.S. Government Securities”).
(2) Direct obligations * of the following federal agencies which are fully guaranteed by the full faith and credit of the United States of America:
a. Export-Import Bank of the United States – Direct obligations and fully guaranteed certificates of beneficial interest
b. Federal Housing Administration – debentures
c. General Services Administration – participation certificates d. Government National Mortgage Association (“GNMAs”) – guaranteed mortgage -backed securities and guaranteed participation certificates
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5 e. Small Business Administration – guaranteed participation certificates and guaranteed pool certificates
f. U.S. Department of Housing & Urban Development – local authority bonds
g, U.S. Maritime Administration – guaranteed Title XI financings h. Washington Metropolitan Area Transit Authority – guaranteed transit bonds
(3) Direct obligations * of the following federal agencies which are not fully guaranteed by the faith and credit of the United States of America:
a. Federal National Mortgage Association (“FNMAs”) – senior debt obligations rated Aaa by Moody’s Investors Service (“Moody’s”) and AAA by Standard & Poor’s Ratings Services (“S&P”)
b. Federal Home Loan Mortgage Corporation (“FHLMCs”) –
participation certificates and senior debt obligations rated Aaa by Moody’s and AAA by S&P
c. Federal Home Loan Banks – consolidated debt obligations d. Student Loan Marketing Association – debt obligations e. Resolution Funding Corporation – debt obligations
(4) Direct, general obligations of any state of the United States of America or any subdivision or agency thereof whose uninsured and unguaranteed general obligation debt is rated, at the time of purchase, A2 or better by Moody’s and A or better by S&P, or any obligation fully and unconditionally guaranteed by any state, subdivision or agency whose uninsured and unguaranteed general obligation debt is rated, at the time of purchase, A2 or better by Moody’s and A or better by S&P.
(5) Commercial paper (having original maturities of not more than 270 days) rated, at the time of purchase, P-1 by Moody’s and A-1 or better by S&P. (6) Certificates of deposit, savings accounts, deposit accounts or money market deposits in amounts that are continuo usly and fully insured by the Federal Deposit Insurance Corporation (“FDIC”), including the Bank Insurance Fund and the Savings Association Insurance Fund, and including funds for which the Trustee or its affiliates provide investment advisory or other management services.
(7) Certificates of deposit, deposit accounts, federal funds or bankers’ acceptances (in each case having maturities of not more than 365 days following the date of purchase) of any domestic commercial bank or United States branch office of a foreign bank, provided that such bank’s short -term certificates of deposit are rated P -1 by Moody’s and A -1 or better by S&P (not considering holding company ratings). (8) Investments in money -market funds rated AAAm or AAAm -G by S&P, including funds for which the Trustee and its affiliates provide investment advisory or other management services.
(9) Any other investment which the City is permitted by law to make, including without limitation investment in the Local Agency Investment Fund of the State of California
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6 (LAIF), provided that any investment of the type authorized pursuant to paragraphs (d), (f), (h) and (i) of Section 53601 of the California Government Code are additionally restricted as provided in the appropriate paragraph or paragraphs ab ove applicable to such type of investment and provided further that investments authorized pursuant to paragraphs (k) and (m) of Section 53601 are not permitted.
To the extent that any of the requirements concerning Permitted Investments embodies a legal c onclusion, the Trustee shall be entitled to conclusively rely upon a certificate from the appropriate party or an opinion from counsel to such party, that such requirement has been met. “PERS” means the California Public Employees’ Retirement System. “PERS Contract” has the meaning assigned that term in the Recitals to this Trust Agreement.
“Principal Office of the Trustee ” means the corporate trust office of the Trustee in Los Angeles, California, or such other or additional offices as may be specified to the City by the Trustee, except with regard to the Trustee that with respect to presentation of Bonds for payment or for registration of transfer and exchange such term shall mean the office or agency of the Trustee at which, at any particular time, its corporate trust agency business shall be conducted. “Rating Agencies” means Fitch, Moody's and S&P.
“Rating Category ” means (a) with respect to any long -term rating category, all ratings designated by a particular letter or combination of letter s, without regard to any numerical modifier, plus or minus sign or other modifier and (b) with respect to any short -term or commercial paper rating category, all ratings designated by a particular letter or combination of letters and taking into account any numerical modifier, but not any plus or minus sign or other modifier. “Record Date ” means the fifteenth day of each calendar month preceding any Interest Payment Date, regardless of whether such day is a Business Day. “Redemption Fund ” means the Fund of that name established pursuant to Section 6.03 hereof.
“Refunding Law ” has the meaning assigned that term in the Recitals to this Trust Agreement.
“Registrar” means, for purposes of this Trust Agreement, the Trustee or its successor or assignee.
“Representation Letter ” means the Letter of Representations from the City to DTC with respect to the Bonds.
“Requisition” or “ Written Requisition ” means a Requisition or Written Requisition, substantially in the form of Exhibit “B” hereto.
“Responsible Officer” means an officer of the Trustee assigned by the Trustee to administer this Trust Agreement.
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7 “Retirement Law ” has the meaning assigned that term in the Recitals to this Trust Agreement.
“Revenue Fund ” means the Fund of that name established pursuant to Section 6.02(a) hereof.
“S&P” means S&P Global Ratings, and its successors , and, if such company shall for any reason no longer perform the functions of a securities rating agency, “ S&P” shall be deemed to refer to any other nationally recognized rating agency designated by the City. “Securities Depositories” means any of The Depository Trust Company or, in accordance with then -current guidelines of the Securities and Exchange Commission, such other securities depositories, or if no such depositories, as t he City may indicate in a certificate of the City delivered to the Trustee.
“State” means the State of California.
“Term Bonds” means the Bonds maturing June 1, 20___.
“Total Bond Obligation ” means, as of any date of calculation, the aggregate principal amount of the Bonds then Outstanding.
“Trust Agreement” means this Trust Agreement dated as of ________ 1, 2022 between the City and the Trustee, as it may be amended, supplemented or otherwise modified from time to time. “Trustee” means the entity named as such in the heading of this Trust Agreement until a successor replaces it, and thereafter means such successor. “Unfunded Liability ” has the meaning assigned that term in the Recitals to this Trust Agreement.
Section 1.02 Other Definitional Provisions. Except as otherwise indicated, references to Articles and Sections are to the Articles and Sections of this Trust Agreement. Any of the terms defined in Section 1.01 may, unless the context otherwise requires, be used in the singular or the plural, depending on the reference.
ARTICLE II
THE BONDS
Section 2.01 Issuance of Bonds; Form; Dating . Bonds may be issued by the City under the terms of this Trust Agreement only to refund the City’s Unfunded Liability under the PERS Contract and the Retirement Law and to pay the Costs of Issuance i n connection with the issuance of the Bonds. The Bonds shall be designated “City of Gilroy 2022 Taxable Pension Obligation Bonds” and shall be issued in Authorized Denominations. The Bonds shall be issued hereunder in the aggregate principal amount of ____________. Interest on the Bonds shall be payable on each June 1 and December 1, commencing December 1, 2022.
Section 2.02 Description of the Bonds . Each Bond shall be issued in fully registered form and shall be numbered as determined by the Trustee. The Bonds sha ll be dated the Closing
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8 Date. The Bonds shall be issued in Authorized Denominations; provided, however, that the Bonds shall initially be Book-Entry Bonds.
The Bonds shall mature on the dates, in the principal amounts, and interest thereon shall be computed at the rates, as shown below:
Maturity Date
(June 1) Principal Amount Interest Rate
Section 2.03 Interest on the Bonds . Interest on each Bond of each maturity shall be payable at the respective per annum rates set forth in Section 2.02 hereof and shall be payable on each Interest Payment Date until maturity or earlier redemption, computed using a year of 360 days comprised of twelve 30 -day months. Interest on each Bond shall accrue from the Interest Payment Date for the Bonds next preceding the date of authentication and delivery thereof, unless (i) such date of authentication is an Interest Payment Date in which event interest shall be payable from such date of authentication; ( ii) it is authenticat ed after a Record Date and before the close of business on the immediately following Interest Payment Date, in which event interest thereon shall be payable from such Interest Payment Date; or (iii) it is authenticated prior to the close of business on the first Record Date, in which event interest thereon shall be payable from the Closing Date; provided, however, that if at the time of authentication of any Bond interest thereon is in default, interest thereon shall be payable from the Interest Payment Date to which interest has previously been paid or made available for payment or, if no interest has been paid or made available for payment, from the Closing Date.
Section 2.04 Medium of Payment. Principal, premium, if any, and interest on the Bonds shall be payable in currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts. Payments of interest on any of the Bonds will be made on each Interest Payment Date by check of the Trustee sent by Mail, or by wire transfer to any Holder of $1,000,000 or more of Bonds, to the account specified by such Holder in a written request delivered to the Trustee on or prior to the Record Date for such Interest Payment Date, to the Holder thereof on the Record Date; p rovided, however, that payments of defaulted interest shall be payable to the person in whose name such Bond is registered at the close of business on a special record date fixed therefor by the Trustee which shall not be more than 15 days and not less than ten days prior to
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9 the date of the proposed payment of defaulted interest. Payment of the principal of the Bonds upon redemption or maturity will be made upon presentation and surrender of each such Bond, at the Principal Office of the Trustee.
Section 2.05 Form. The Bonds shall be substantially in the form set forth in Exhibit “A” attached hereto and by this reference incorporated herein. The Bonds may be printed, lithographed, photocopied or typewritten and shall be in such Authorized Denominations as may be det ermined by the City.
Section 2.06 Additional Bonds . From time to time, the City may enter into (i) one or more other trust agreements or indent ures and/or (ii) one or more agreements supplementing and/or amending this Trust Agreement, for the purpose of providing for the issuance of Additional Bonds to refund the Bonds or to refund all or any portion of any Unfunded Liability under the PERS Contract arising subsequent to the issuance of the Bonds or any other obligations due to PERS. Such Additional Bonds may be issued on a parity with the Bonds.
ARTICLE III
EXECUTION, AUTHENTICATION AND EXCHANGE OF BONDS;
BOOK ENTRY BONDS
Section 3.01 Execution and Authentication; Registration. (a) The Bonds will be signed for the City with the manual or facsimile signature of the Mayor of the City Council of t he City or the City Administrator of the City . The City may deliver to the Trustee or its agent duly executed Bonds for authentication from time to time by the Trustee or its agent as such Bonds may be required. Bonds executed and so delivered and authenticated will be valid. In case any officer of the City whose signature or whose facsimile signature shall appear on any Bonds shall cease to be such officer before the authentication of such Bonds, such signature or the facsimile signature thereof shall n evertheless be valid and sufficient for all purposes the same as if he or she had remained in office until authentication. Also, if a person signing a Bond is the proper officer on the actual date of execution, the Bond will be valid even if that person is not the proper officer on the nominal date of action and even though, at the date of this Trust Agreement, such person was not such officer.
(b) A Bond will not be valid until the Trustee or its agent executes the certificate of authentication on such Bond by manual signature. Such signature will be conclusive evidence that such Bond has been authenticated under this Trust Agreement. The Trustee may appoint an authenticating agent acceptable to the City to authenticate Bonds. An authenticating agent may authenticate Bonds whenever the Trustee may do so. Each reference in this Trust Agreement to authentication by the Trustee includes authentication by such agent. (c) Bonds may be presented at the Principal Office of the Trustee, unless a different office has be en designated for such purpose, for registration, transfer and exchange. The Registrar will keep a register of such Bonds and of their transfer and exchange.
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10 Section 3.02 Transfer or Exchange of Bonds. Subject to Section 3.03:
(a) All Bonds shall be issued in fully regis tered form. Upon surrender for transfer of any Bond at the Principal Office of the Trustee, the Trustee shall deliver in the name of the transferee or transferees a new fully authenticated and registered Bond or Bonds of Authorized Denominations of the sa me maturity for the aggregate principal amount which the Bondholder is entitled to receive.
(b) All Bonds presented for transfer, redemption or payment shall be accompanied by a written instrument or instruments of transfer or authorization for exchange, in form and with guaranty of signature satisfactory to the City, duly executed by the Bondholder or by his duly authorized attorney. The Trustee also may require payment from the Bondholder of a sum sufficient to cover any tax, or other governmental fee or cha rge that may be imposed in relation thereto. Such taxes, fees and charges shall be paid before any such new Bond shall be delivered. (c) Bonds delivered upon any transfer as provided herein, or as provided in Section 3.04, shall be valid obligations of the Ci ty, evidencing the same debt as the Bond surrendered, shall be secured by this Trust Agreement and shall be entitled to all of the security and benefits hereof to the same extent as the Bond surrendered. (d) The City, the Trustee and the Paying Agent shall tre at the Bondholder, as shown on the registration books kept by the Trustee, as the person exclusively entitled to payment of principal, premium, if any, and interest with respect to such Bond and to the exercise of all other rights and powers of the Bondholder, except that all interest payments will be made to the party who, as of the Record Date, is the Bondholder.
Section 3.03 Book-Entry Bonds.
(a) Except as provided in paragraph (c) of this Section 3.03, the registered owner of all of the Bonds shall be DTC and the Bonds shall be registered in the name of Cede & Co., as nominee for DTC. Except as provided in paragraph (d) of this Section 3.03, payment of principal, interest and premium, if any, for any Bonds registered in the name of Cede & Co. shall be made as provided in the Representation Letter.
(b) The Bonds shall be initially issued in the form of a separate single authenticated fully registered Bond for each separate stated maturity of the Bonds. The Trustee, the Registrar and the City may treat DTC (or its nominee) as the sole and exclusive owner of the Bonds registered in its name for the purposes of payment of the principal or redemption price of, or interest on, the Bonds, selecting the Bonds or portions thereof to be redeemed, giving any notice permitted or required to be given to Bondholders under this Trust Agreement, registering the transfer of Bonds, obtaining any consent or other action to be taken by Bondholders and for all other purposes whatsoever, and neither the Trustee, the Registrar nor the City shall be affected by any notice to the contrary. Neither the Trustee, the Registrar nor the City shall have any responsibility or obligation to any Participant, any person claiming a beneficial ownership interest in the Bonds under or through DTC or any Participa nt or any other person which is not shown on the registration books as being a Bondholder, with respect to (i) the accuracy of any records maintained by DTC or any Participant, (ii) the payment by DTC or any Participant of any amount in respect of the prin cipal or redemption price of or interest on the Bonds, (iii) any notice which is permitted or required to be given to Bondholders under this Trust Agreement, (iv) the selection by DTC or any Participant of any person
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11 to receive payment in the event of a pa rtial redemption of the Bonds, or (v) any consent given or other action taken by DTC as a Bondholder. The Trustee shall pay, from funds held under the terms of this Trust Agreement or otherwise provided by the City, all principal or redemption price of an d interest on the Bonds only to DTC as provided in the Representation Letter and all such payments shall be valid and effective to satisfy and discharge fully the City’s obligations with respect to the principal or redemption price of and interest on the B onds to the extent of the sum or sums so paid.
No person other than DTC shall receive authenticated Bonds evidencing the obligation of the City, to make payments of principal or redemption price and interest pursuant to this Trust Agreement. Upon delivery by DTC to the Trustee of written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., and subject to the provisions herein with respect to Record Dates, the name “Cede & Co.” in this Trust Agreement shall refer to such new nominee of DTC. (c) In the event the City determines that it is in the best interest of the Beneficial Owners that they be able to obtain Bond certificates and notifies DTC, the Trustee and the Registrar of such determination, then DTC will notify the Participants of the availability through DTC of Bond certificates. In such event, the Trustee shall authenticate and the Registrar shall transfer and exchange Bonds certificates as requested by DTC and any other Bondholders in appropriate amounts.
DTC may determine to discontin ue providing its services with respect to the Bonds at any time by giving notice to the City and the Trustee and discharging its responsibilities with respect thereto under applicable law. Under such circumstances (if there is no successor securities depo sitory), the City and the Trustee shall be obligated to deliver Bond certificates as described in this Trust Agreement. In the event Bond certificates are issued, the provisions of this Trust Agreement shall apply to, among other things, the transfer and exchange of such certificates and the method of payment of principal of and interest on such certificates. Whenever DTC requests the City and the Trustee to do so, the Trustee and the City will cooperate with DTC in taking appropriate action after reasonable notice (i) to make available one or more separate certificates evidencing the Bonds to any Participant having Bonds credited to its DTC account or (ii) to arrange for another securities depository to maintain custody of certificates evidencing the Bonds. (d) Notwithstanding any other provision of this Trust Agreement to the contrary, so long as any Bond is registered in the name of Cede & Co., as nominee of DTC, all payments with respect to the principal or redemption price of and interest on such Bonds and all notices with respect to such Bonds shall be made and given, respectively, to DTC as provided in the Representation Letter.
(e) In connection with any notice or other communication to be provided to Bondholders pursuant to this Trust Agreement by the City or the Trustee with respect to any consent or other action to be taken by Bondholders, the City or the Trustee, as the case may be, shall establish a record date for such consent or other action and give DTC notice of such record date not less than 15 calendar days in advance of such record date to the extent possible. Notice to DTC shall be given only when DTC is the sole Bondholder.
(f) If the City purchases, or causes the Trustee to purchase, any of the Bonds, such purchase of Bonds shall be deemed to have occurred upon the purchase of beneficial ownership interests in the Bonds from a Participant. Upon receipt by DTC of notice from the City and a Participant that a purchase of beneficial ownership interests in the Bonds has been made by the City from such Participant, DTC shall surrender to the Trustee the Bonds referenced in such notice and, if the principal amount referenced in said notice is less than the principal amount of the Bonds so surrendered, the Trustee shall authenticate and deliver to DTC, in exchange for the Bonds so
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12 surrendered, a new Bond or Bonds, as the case may be, in Authorized Denominations and in a principal amount equal to the difference between (i) the principal amount of the Bonds so surrendered and (ii) the principal amount referenced in said notice. (g) Notwithstanding any provision herein to the contrary, the City and the Trustee may agree to allow DTC, or its nominee, Cede & Co., to make a notation on any Bond redeemed in part to reflect, for informational purposes only, the principa l amount and date of any such redemption.
(h) In the event that DTC notifies the Cit y that it is discontinuing the book -entry system for the Bonds, the City may either appoint another entity to hold the Bonds in book -entry form or deliver Bond certificates to the beneficial owners or Participants, as directed by DTC.
Section 3.04 Mutilated, Lost, Stolen or Destroyed Bonds. (a) In the event any Bond is mutilated or defaced but identifiable by number and description, the City shall execute and the Trustee shall authenticate and d eliver a new Bond of like date, maturity and denomination as such Bond, upon surrender thereof to the Trustee; provided that there shall first be furnished to the City and the Trustee proof satisfactory to the Trustee that the Bond is mutilated or defaced. The Bondholder shall accompany the above with a deposit of money required by the City for the cost of preparing the substitute Bond and all other expenses connected with the issuance of such substitute. The City shall then cause proper record to be made of the cancellation of the original, and thereafter the substitute shall have the validity of the original. (b) In the event any Bond is lost, stolen or destroyed, the City may execute and the Trustee may authenticate and deliver a new Bond of like date, matu rity and denomination as that Bond lost, stolen or destroyed; provided that there shall first be furnished to the Trustee evidence of such loss, theft or destruction satisfactory to the Trustee, together with indemnity satisfactory to it. (c) The City and the Trustee shall charge the Holder of such Bond all transfer taxes, if any, and their reasonable fees and expenses in this connection. All substitute Bonds issued and authenticated pursuant to this Section shall be issued as a substitute and numbered, if num bering is provided for by the Trustee, as determined by the Trustee. In the event any such Bond has matured or has been called for redemption, instead of issuing a substitute Bond, the Trustee may pay the same without surrender thereof upon receipt of indemnity satisfactory to the Trustee.
Section 3.05 Destruction of Bonds. Whenever any Outstanding Bonds shall be delivered to the Trustee for cancellation pursuant to this Trust Agreement, upon payment of the principal amount and interest represented thereby or for repl acement pursuant to Section 3.04 or transfer pursuant to Section 3.02, such Bond shall be cancelled and destroyed by the Trustee and counterparts of a certificate of destruction evidencing such destruction shall, upon the City’s request, be furnished by the Trustee to the City.
Section 3.06 Temporary Bonds.
(a) Pending preparation of definitive Bonds, the City may execute and the Trustee shall authenticate and deliver, in lieu of definitive Bonds and subject to the same limitation and conditions, interim receipts, certifica tes or temporary bonds which shall be exchanged for the Bonds.
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13 (b) If temporary Bonds shall be issued, the City shall cause the definitive Bonds to be prepared and to be executed and delivered to the Trustee, and the Trustee, upon presentation to it of any tem porary Bond, shall cancel the same and deliver in exchange therefor at the place designated by the Bondholder, without charge to the Bondholder thereof, definitive Bonds of an equal aggregate principal amount, of the same series, maturity and bearing interest at the same rate or rates as the temporary Bonds surrendered. Until so exchanged, the temporary Bonds shall in all respects be entitled to the same benefit and security of this Trust Agreement as the definitive Bonds to be issued and authenticated hereunder.
ARTICLE IV
REDEMPTION OF BONDS
Section 4.01 Notices to Trustee; Notices to Bondholders; Notices to DTC. (a) Notice of redemption shall be given by the Trustee, not less than 30 nor more than 60 days prior to the redemption date: (i) in the case of Bonds not registered in the name of a Securities Depository or its nominee, to the respective Holders of the Bonds designated for redemption at their addresses appearing on the registration books of the Trustee; (ii) in the case of Bonds registered in the name of a Securities Depository or its nominee, to such Securities Depository for such Bonds; and (iii) to the Information Services. Notice of redemption to the Holders pursuant to (i) above shall be given by mail at their addresses appearing on the registration bo oks of the Trustee, or any other method agreed upon by such Holder and the Trustee. Notice of redemption to the Securities Depositories pursuant to (ii) above and the Information Services pursuant to (iii) above shall be given by electronically secure mea ns, or any other method agreed upon by such entities and the Trustee.
(b) Each notice of redemption shall state the Bonds or designated portions thereof to be redeemed, the date of redemption, the place of redemption, the redemption price, the CUSIP number (if any) of the Bonds to be redeemed, the distinctive numbers of the Bonds of such maturity to be redeemed and, in the case of Bonds to be redeemed in part only, the respective portions of the principal amount thereof to be redeemed, the original issue date, interest rate and stated maturity date of each Bond to be redeemed in whole or part. Each such notice shall also state that on said date there will become due and payable on each of the Bonds to be redeemed the redemption price, and redemption premium, if any, thereof, and that from and after such redemption date interest thereon shall cease to accrue.
(c) Failure to give the notices described in this Section 4.01 or any defect therein shall not in any manner affect the redemption of any Bonds. Any notice sen t as provided herein will be conclusively presumed to have been given whether or not actually received by the addressee. (d) The City shall have the right to rescind any notice of optional redemption previously sent pursuant to this Section 4.01. Any such notice of rescission shall be sent in the same manner as the notice of redemption. Neither the City nor the Trustee shall incur any liability, to Bond owners, DTC, or otherwise, as a result of a rescission of a notice of redemption.
Section 4.02 Optional Redemption of Bo nds. The Bonds maturing on or after June 1, 20___ may be redeemed at the option of the City from any source of funds on any date on or after June 1, 20___ in whole or in part from such maturities as are selected by the City and by lot within a
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14 maturity at a redemption price equal to the principal amount to be redeemed, together with accrued interest to the date of redemption, without premium
Section 4.03 Make-Whole Redemption of Bonds . The Bonds are subject to redemption prior to June 1, 20 ___, at the option of the Ci ty, in whole or in part (and if in part in any order of maturity selected by the City and within a maturity bearing interest at the same rate on a pro -rata basis as described below), on any date at a redemption price equal to the greater of:
(a) 100% of the principal amount of the Bonds to be redeemed; or (b) the sum of the present value of the remaining scheduled payments of principal and interest to the maturity date of such Bonds to be redeemed, not including any portion of those payments of interest accrued an d unpaid as of the date on which such Bonds are to be redeemed, discounted to the date on which such Bonds are to be redeemed on a semi -annual basis, assuming a 360 -day year consisting of twelve 30 -day months, at the Comparable Treasury Yield (defined belo w) plus ____ basis points, plus, in each case, accrued interest on such Bonds to be redeemed to the redemption date.
For purposes of the foregoing, the following terms have the following meanings:
“Calculation Agent” means a commercial bank or an investment banking institution of national standing that is a primary dealer of United States government securities in the United States and designated by the City (which may be one of the institutions that served as an underwriter for the Bonds).
“Comparable Treasury Issue” means the United States Treasury security selected by the Calculation Agent as having a maturity comparable to the remaining term to maturity of the Bonds being redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term to maturity of the Bonds being redeemed. “Comparable Treasury Price” means, with respect to any date on which a Bond or port ion thereof is being redeemed, either (a) the average of five Reference Treasury Dealer quotations for the date fixed for redemption, after excluding the highest and lowest such quotations, and (b) if the Calculation Agent is unable to obtain five such quo tations, the average of the quotations that are obtained. The quotations will be the average, as determined by the Calculation Agent, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of principal amount) quoted in writing to the Calculation Agent, at 5:00 p.m. New York City time on a date selected by the Calculation Agent which is not less than three business days and not more than 20 business days preceding the date fixed for redemption.
“Comparable Trea sury Yield” means the yield that represents the weekly average yield to maturity for the preceding week appearing in the most recently published statistical release designated “H.15(519) Selected Interest Rates” under the heading “Treasury Constant Maturities,” or any successor publication selected by the Calculation Agent that is published weekly by the Board of Governors of the Federal Reserve System and that establishes yields on actively traded United States Treasury securities adjusted to constant matu rity, for the maturity corresponding to the remaining term to maturity of the Bonds being redeemed. The Comparable Treasury Yield will be determined no sooner than the third business day nor earlier than the twentieth calendar day preceding the
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15 applicable date fixed for redemption. If the H.15(519) statistical release sets forth a weekly average yield for United States Treasury securities that have a constant maturity that is the same as the remaining term to maturity of the Bonds being redeemed, then the C omparable Treasury Yield will be equal to such weekly average yield. In all other cases, the Comparable Treasury Yield will be calculated by interpolation on a straight -line basis between the weekly average yields on the United States Treasury securities t hat have a constant maturity (i) closest to and greater than the remaining term to maturity of the Bonds being redeemed; and (ii) closest to and less than the remaining term to maturity of the Bonds being redeemed. Any weekly average yields calculated by interpolation will be rounded to the nearest 1/100th of 1%, with any figure of 1/200th of 1% or above being rounded upward. If, and only if, weekly average yields for United States Treasury securities for the preceding week are not available in the H.15(519 ) statistical release or any successor publication, then the Comparable Treasury Yield will be the rate of interest per annum equal to the semiannual equivalent yield to maturity of the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price (each as defined herein) as of the date fixed for redemption.
“Reference Treasury Dealer” means a primary dealer of United States Government securities in the United States (which may be one of the institution s that served as an underwriter for the Bonds) appointed by the City and reasonably acceptable to the Calculation Agent.
Section 4.04 Mandatory Sinking Fund Redemption of Bonds . The Bonds maturing June 1, 20___ (the “ 20___ Term Bonds”) are subject to mandatory sinking fund redemption at a redemption price equal to the principal amount thereof, plus accrued interest to the redemption date, without premium. The 20___ Term Bonds shall be so redeemed on the following dates and in the following amounts:
Redemption Date
(June 1)
Principal
Amount
* Final maturity.
Notwithstanding the foregoing, if some but not all of the Term Bonds of a maturity have been optionally redeemed pursuant to Section 4.02, the total amount of all future sinking fund payments (including the principal amount of the Term Bonds coming due at the maturity thereof) shall be reduced by the aggregate principal amount of the Term Bonds so redeemed, to be allocated among such sinking fund payments on a pro rata basis as determined by the City.
Preceding each mandatory sinking fund redemption date, the Trustee shall proceed to select for redemption pro -rata from all Term Bonds subject to mandatory sinking fund redemption at that time, an aggregate principal amount of such Term Bonds equal to the amount for such year as set forth in the table above and shall call such Term Bonds or portions thereof for redemption and give notice of such redemption in accordance with the terms of Section 4.01. At the option of the City, to be exercised by delivery of a written certificate to the Trustee on or before April 1 next preceding
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16 any mandatory sinking fund redemption date, it may (a) deliver to the Trustee for cancellation Term Bonds or a portion thereof (in the amount of an Au thorized Denomination) of the stated maturity subject to such redemption or (b) specify a principal amount of such Term Bonds or a portion thereof (in the amount of an Authorized Denomination) which prior to said date have been purchased or redeemed (otherwise than under the provisions of this Section 4.03) and cancelled by the Trustee at the request of the City and not theretofore applied as a credit against any mandatory sinking fund redemption requirement. Each such Term Bonds or portion thereof so deli vered or previously redeemed shall be credited by the Trustee at 100% of the principal amount of the Term Bonds so delivered to the Trustee by the City against the obligation of the City on such mandatory sinking fund redemption date.
Section 4.05 Payment of Bonds Called for Redemption; Effect of Redemption Call. (a) Upon surrender to the Trustee or the Trustee’s agent, Bonds called for redemption shall be paid at the redemption price stated in the notice, plus interest accrued to the redemption date.
(b) On the date so designated for redemption, notice having been given in the manner and under the conditions provided herein relating to such Bonds as are to be redeemed and moneys for payment of the redemption price being held in trust to pay the redemption price, the Bonds so called for redemption shall become and be due and payable on the redemption date, interest on such Bonds shall cease to accrue, such Bonds shall cease to be entitled to any lien, benefit or security under this Trust Agreement and the owners of such Bo nds shall have no rights in respect thereof except to receive payment of the redemption price and accrued interest to the redemption date.
(c) Bonds which have been duly called for redemption under the provisions of this Article IV and for the payment of the r edemption price of which moneys shall be deposited in the Redemption Fund or otherwise held in trust for the Holders of the Bonds to be redeemed, all as provided in this Trust Agreement, shall not be deemed to be Outstanding under the provisions of this Trust Agreement.
Section 4.06 Selection of Bonds for Redemption; Bonds Redeemed in Part. If less than all of the Bonds are called for redemption, the City will designate the maturities from which the Bonds are to be redeemed. For so long as the Bonds are registered in b ook entry form and DTC or a successor securities depository is the sole registered owner of such Bonds, if fewer than all of such Bonds of the same maturity and bearing the same interest rate are to be redeemed, the particular Bonds to be redeemed shall be selected on a pro rata pass -through distribution of principal basis in accordance with the operational arrangements of DTC then in effect, and if the DTC operational arrangements do not allow for redemption on a pro rata pass -through distribution of princ ipal basis, all Bonds to be so redeemed will be selected for redemption in accordance with DTC procedures by lot; provided further that any such redemption must be performed such that all Bonds remaining outstanding will be in authorized denominations.
In connection with any repayment of principal of the Bonds pursuant to the pass -through distribution of principal as described above, the Paying Agent will direct DTC to make a pass - through distribution of principal to the owners of the Bonds. A form of “Pro Rata Pass -Through Distribution of Principal” notice will be provided to the Trustee that includes a table of factors
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17 reflecting the relevant scheduled redemption payments and DTC’s applicable procedures, which are subject to change.
For purposes of calculating pro rata pass-through distributions of principal, “pro rata” means, for any amount of principal or interest to be paid, the application of a fraction to such amounts where (a) the numerator is equal to the amount due to the owners of the Bonds on a pa yment date, and (b) the denominator is equal to the total original par amount of the Bonds.
It is the City’s intent that redemption allocations made by DTC with respect to the Bonds be made on a pro rata pass-through distribution of principal basis as described above. However, the City cannot provide any assurance that DTC, DTC’s direct and indirect participants, or any other intermediary will allocate the redemption of such Bonds on such basis.
If the Bonds are not registered in book -entry form and if fewe r than all of the Bonds of the same maturity and bearing the same interest rate are to be redeemed, the Bonds of such maturity and bearing such interest rate to be redeemed will be selected on a pro rata basis, and the particular Bonds of such maturity and bearing such interest rate to be redeemed will be selected by lot, provided that any such redemption must be performed such that all Bonds remaining outstanding will be in authorized denominations.
Upon surrender of a Bond to be redeemed in part, the Trus tee will authenticate for the registered owner a new Bond or Bonds of the same maturity and tenor equal in principal amount to the unredeemed portion of the Bond surrendered.
ARTICLE V
APPLICATION OF PROCEEDS;
SOURCE OF PAYMENT OF BONDS
Section 5.01 Application of Proceeds an d City Contribution . The net proceeds of the sale of the Bonds received by the Trustee, $ _________ ($_________ principal amount, less $__________ underwriter’s discount), shall be deposited by the Trustee as follows:
(i) the sum of $ ___________ shall be depos ited into the Costs of Issuance Fund; and
(ii) the sum of $___________ shall be transferred to PERS in accordance with written instructions provided to the Trustee by the City, upon which Trustee may conclusively rely, and used to pay the Unfunded Liability relating to the Miscellaneous Plan and the Safety Plan.
Section 5.02 Sources of Payment of Bonds; Semi-Annual Payments by the City. (a) The City shall provide for payment of principal or redemption price of and interest on the Bonds from any source of legally available funds of the City. If any Bonds are Outstanding, the City shall, no later than three Business Days preceding each Interest Payment Date, deliver funds to the Trustee for deposit to the Revenue Fund in an aggregate amount equal to the portion of the Annual Debt Service coming due on such Interest Payment Date (less amounts on deposit in the Revenue Fund).
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18 (b) The Bonds shall be obligations of the City payable from any lawfully available funds, shall not be limited as to payment to any special source of funds of the C ity, and shall be subject to appropriation in accordance with Section 8.01 hereof . The Bonds do not constitute an obligation of the City for which the City is obligated to levy or pledge any form of taxation or for which the City has levied or pledged any form of taxation.
ARTICLE VI
CREATION OF CERTAIN FUNDS AND ACCOUNTS
Section 6.01 Creation of Costs o f Issuance Fund . There is h ereby created a Fund to be held by the Trustee designated “City of Gilroy 2022 Taxable Pension Obligation Bonds Costs of Issuance Fund” (the “ Costs of Issuance Fund ”). Funds on deposit in the Costs of Issuance Fund shall be used to pay or to reimburse the City for the payment of Costs of Issuance. Amounts in the Costs of Issuance Fund shall be disbursed by the Trustee upon Written Requisition in the form of Exhibit “B” executed by an Authorized City Representative.
At such time as the City delivers to the Trustee written notice that all Costs of Issuance have been paid or otherwise notifies the Trustee in writing that no additional amounts from the Costs of Issuance Fund will be needed to pay Costs of Issuance, the Trustee s hall transfer all amounts then remaining in the Costs of Issuance Fund to the Bond Interest Account of the City unless otherwise directed by the City. At such time as no amounts remain in the Costs of Issuance Fund, such Fund shall be closed.
Section 6.02 Creation of Revenue Fund and Certain Accounts. There is hereby created a Fund to be held by the Trustee designated “City of Gilroy 2022 Taxable Pension Obligation Bonds Revenue Fund” (the “Revenue Fund”). There are hereby created in the Revenue Fund two separate Accounts designated “Bond Interest Account” and “Bond Principal Account”. (a) All amounts received by the Trustee from the City in respect of interest payments on the Bonds shall be deposited in the Bond Interest Account and shall be disbursed to the applicable B ondholders to pay interest on the Bonds. All amounts held at any time in the Bond Interest Account (including amounts deposited pursuant to Section 6.03) shall be held for the security and payment of interest on the Bonds pursuant to this Trust Agreement. If at any time funds on deposit in the Bond Interest Account are insufficient to provide for the payment of such interest, the City shall promptly deposit funds to such Account to cure such deficiency. On June 2 of each year beginning in 202__, so long as no Event of Default has occurred and is continuing, the Trustee shall transfer all amounts on deposit in the Bond Interest Account to the Revenue Fund to be used for any lawful purpose.
(b) All amounts received by the Trustee from the City in respect of pri ncipal payments on the Bonds shall be deposited in the Bond Principal Account and all amounts in the Bond Principal Account will be disbursed to pay principal on the Bonds pursuant to this Trust Agreement.
If at any time funds on deposit in the Bond Princ ipal Account are insufficient to provide for the payment of such principal, the City shall promptly deposit funds to such Account to cure such deficiency.
(c) The moneys in the Revenue Fund and accounts therein shall be held by the Trustee in trust and applied as herein provided and, pending such application, shall be subject to a
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19 lien and charge in favor of the holders of the Bonds issued and Outstanding under this Trust Agreement and for the further security of such holders until paid out or transferred as he reinafter provided.
Section 6.03 Creation of Redemption Fund. A Fund to be held by the Trustee is hereby created and designated the “City of Gilroy 2022 Taxable Pension Obligation Bonds Redemption Fund” (the “ Redemption Fund ”). All moneys deposited by the City with the Trustee for the purpose of redeeming Bonds shall be deposited in the Redemption Fund. All amounts deposited in the Redemption Fund shall be used and withdrawn by the Trustee solely for the purpose of redeeming Bonds in the manner, at the times and upon the terms and conditions specified in this Trust Agreement; provided that, at any time prior to giving such notice of redemption, the Trustee shall, upon receipt of written instructions from an Authorized City R epresentative, apply such amounts to the purchase of Bonds at public or private sale, as and when and at such prices (including brokerage and other charges) as directed by the City.
Section 6.04 Moneys Held in Redemption Fund . All moneys which shall have been withdrawn from the Revenue Fund and deposited in the Redemption Fund for the purpose of paying any of the Bonds hereby secured, either at the maturity thereof or upon call for redemption, shall be held in trust for the respective Holders of such Bonds.
Section 6.05 Unclaimed Moneys. Any moneys which shall be set aside or deposited in the Redemption Fund, the Bond Principal Accou nt, the Bond Interest Account or any other Fund or Account for the benefit of Holders of Bonds and which shall remain unclaimed by the Holders of such Bonds for a period of one year after the date on which such Bonds shall have become due and payable (or such longer period as shall be required by State law) shall be paid to the City, and thereafter the Holders of such Bonds shall look only to the City fo r payment and the City shall be obligated to make such payment, but only to the extent of the amounts so received without any interest thereon, and the Trustee and any Paying Agent shall have no responsibility with respect to any of such moneys.
ARTICLE VII
CONCERNING PAYING AGENT
Section 7.01 Paying Agent; Appointment and Acceptance of Duties . The City hereby appoints the Trustee as the Paying Agent for the Bonds.
Section 7.02 Paying Agent - General Responsibilities.
(a) The City may at any time or from time to time appoint a different Paying Agent or Paying Agents for the Bonds, and each Paying Agent, if other than the Trustee, shall be a commercial bank with trust powers and shall designate to the City and the Trustee its principal office and signify its acceptance of the duties and obligation s imposed upon it hereunder by a written instrument of acceptance delivered to the City under which each such Paying Agent will agree, particularly:
(i) to hold all sums held by it for the payment of the principal of, and premium or interest on, Bonds in trust for the benefit of the Bondholders until such sums shall be paid to such Bondholders or otherwise disposed of as herein provided;
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20 (ii) to keep such books and records as shall be consistent with prudent industry practice, to make such books and records availabl e for inspection by the City and the Trustee at all reasonable times upon reasonable prior notice; and (iii) upon the request of the Trustee, to forthwith deliver to the Trustee all sums so held in trust by such Paying Agent.
(b) The Paying Agent shall perform the d uties and obligations set forth in this Trust Agreement, and in particular shall hold all sums delivered to it by the Trustee for the payment of principal or premium of and interest on the Bonds for the benefit of the Bondholders until such sums shall be paid to such Bondholders or otherwise disposed of as herein provided. (c) In performing its duties hereunder, the Paying Agent shall be entitled to all of the rights, protections and immunities accorded to the Trustee under the terms of this Trust Agreement.
Section 7.03 Certain Permitted Acts . Any Fiduciary may become the owner of any Bonds, with the same rights it would have if it were not a Fiduciary. To the extent permitted by law, any Fiduciary may act as depository for, and permit any of its officers or directors to act as a member of, or in any other capacity with respect to, any committee formed to protect the rights of Bondholders or to effect or aid in any reorganization growing out of the enforcement of the Bonds or this Trust Agreement, whether or not any such c ommittee shall represent the owners of a majority in Total Bond Obligation of the Bonds then Outstanding.
Section 7.04 Resignation or Removal of Paying Agent and Appointment of Successor. (a) Any Paying Agent may at any time resign and be discharged of the duties and obligations created by this Trust Agreement in accordance with the provisions set forth in this Trust Agreement for the removal of the Trustee by giving at least 60 days’ written notice to the City and the other Fiduciaries. Any Paying Agent may be removed at any time upon 30 days prior written notice by an instrument filed with such Paying Agent and the Trustee and signed by an Authorized City Representative. Any successor Paying Agent shall be appointed by the City with the approval of the Trustee and shall be a commercial bank with trust powers or trust company organized under the laws of any state of the United States, having capital stock and surplus aggregating at least $100,000,000, and willing and able to accept the office on reasonable and customary te rms and authorized by law to perform all the duties imposed upon it by this Trust Agreement. (b) In the event of the resignation or removal of any Paying Agent, such Paying Agent shall assign and deliver any moneys and Bonds, including authenticated Bonds, hel d by it to its successor, or if there be no successor, to the Trustee. In the event that for any reason there shall be a vacancy in the office of any Paying Agent, the Trustee shall act as such Paying Agent.
ARTICLE VIII
COVENANTS OF THE CITY
Section 8.01 Payment of Principal an d Interest. The City covenants and agrees that it will duly and punctually pay or cause to be paid the principal, premium, if any, and interest on every Bond at the place and on the dates and in the manner specified herein and in the Bonds, according to
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21 the true intent and meaning thereof, and that it will faithfully do and perform all covenants and agreements contained herein and in the Bonds and the City agrees that time is of the essence of this Trust Agreement. The obligations of the City under the Bo nds, including the obligation to make all payments of principal, premium, if any, and interest when due, are absolute and unconditional, without any right of set-off or counter claim.
The City shall in each Fiscal Year include in its budget a provision to provide funds in an amount sufficient to pay the principal, premium, if any, and interest on the Bonds coming due in such Fiscal Year, but only to the extent that such amounts exceed the amount of available funds then on deposit in the Revenue Fund, and shall make annual appropriations for all such amounts. If such principal, premium, if any, and interest on the Bonds coming due in any Fiscal Year exceeds the sum of amounts budgeted in respect thereof together with amounts then on deposit in t he Revenue Fund, then the City shall amend or supplement the budget to provide for such excess amounts. The covenants contained in this Section shall be deemed to be and shall be duties imposed by law and it shall be the duty of each and every public offi cial of the City to take such action and do such things as are required by law in the performance of the official duty of such officials to enable the City to carry out and perform the covenants and agreements in this Trust Agreement agreed to be carried o ut and performed by the City.
Section 8.02 Performance of Covenants by City; Authority; Due Execution . The City covenants that it will faithfully perform at all times any and all covenants, undertakings, stipulations and provisions contained in this Trust Agreement, in any and every Bond executed, authenticated and delivered hereunder and in all of its proceedings pertaining hereto. The City covenants that it is duly authorized under the Constitution and laws of the State to issue the Bonds.
Section 8.03 Instruments of Further Ass urance. The City covenants that it will do, execute, acknowledge and deliver, or cause to be done, executed, acknowledged and delivered such further acts, instruments and transfers as the Trustee may reasonably request for the better assuring and confirming to the Trustee all the rights and obligations of the City under and pursuant to this Trust Agreement. The City shall, upon the reasonable request of the Trustee, from time to time execute and deliver such further instructions and take such further action as may be reasonable and as may be required to effectuate the purposes of this Trust Agreement or any provisions hereof; provided, however, that no such instruments or actions shall pledge the full faith and credit or the taxing powers of the State.
Section 8.04 No Inconsistent Action . The City covenants that no contract or contracts will be entered into or any action taken by the City which shall be inconsistent with the provisions of this Trust Agreement.
Section 8.05 No Adverse Action . The City covenants that it wi ll not take any action which will have a material adverse effect upon the rights of the Holders of the Bonds.
Section 8.06 Maintenance of Powers . The City covenants that it will at all times use its best efforts to maintain the powers, functions, duties and obligation s now reposed in it pursuant to applicable law and will not at any time voluntarily do, suffer or permit any act or thing the effect of which would be to hinder, delay or imperil either the payment of the indebtedness evidenced by any of the Bonds or the performance or observance of any of the covenants herein contained.
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22 Section 8.07 Covenants of City Binding on Successors. (a) All covenants, stipulations, obligations and agreements of the City contained in this Trust Agreement shall be deemed to be covenants, stipulations, obligations and agreements of the City to the full extent authorized or permitted by law. If the powers or duties of the City shall hereafter be transferred by amendment of any provision of the Constitution or any other law of the State or in any other m anner there shall be a successor to the City, and if such transfer shall relate to any matter or thing permitted or required to be done under this Trust Agreement by the City, then the entity that shall succeed to such powers or duties of the City shall ac t and be obligated in the place and stead of the City as provided in this Trust Agreement, and all such covenants, stipulations, obligations and agreements herein shall be binding upon such successor or successors thereof from time to time and upon any off icer, board, body, district, authority or commission to whom or to which any power or duty affecting such covenants, stipulations, obligations and agreements shall be transferred by or in accordance with law.
(b) Except as otherwise provided in this Trust Agre ement, all rights, powers and privileges conferred and duties and liabilities imposed upon the City by the provisions of this Trust Agreement shall be exercised or performed by the City or by such officers, board, body, district, authority or commission as may be required by law to exercise such powers or to perform such duties.
Section 8.08 Trust Agreement to Constitute a Contract . This Trust Agreement is executed by the City for the benefit of the Bondholders and constitutes a contract with the Bondholders.
Section 8.09 City to Perform Pursuant to Continuing Disclosure Certificate. The City hereby covenant s and agree s that it will comply with and carry out all of the provisions of t he Continuing Disclosure Certificate . Notwithstanding any other provision of this Trust Agreement, failure of the City to comply with the Continuing Disclosure Certificate shall not be considered an Event of Default under this Trust Agreement; provided, however, the obligations of the City to comply with the provisions of the Continuing Disclosure Cert ificate shall be enforceable by any Participating Underwriter or any Holder of Outstanding Bonds, or by the Trustee on behalf of the Holders of Outstanding Bonds; provided, further, that the Trustee shall not be required to take any enforcement action what soever except at the written direction of the Holders of not less than a majority in aggregate principal amount of the Bonds at the time Outstanding who shall have provided the Trustee with security and indemnity to its satisfaction, including without limi tation, attorney’s fees and expenses. The Participating Underwriter ’s, Holders’ and Trustee’s rights to enforce the provisions of the Continuing Disclosure Certificate shall be limited solely to a right, by action in mandamus or for specific performance, to compel performance of the City’s obligations under the Continuing Disclosure Certificate . Notwithstanding the foregoing, the City shall be entitled to amend or rescind the Continuing Disclosure Certificate to the extent permitted by law.
ARTICLE IX
INVESTMENTS
Section 9.01 Investments Authorized. Money held by the Trustee in any fund or account hereunder shall be invested by the Trustee in Permitted Investments pending application as provided herein solely at the prior written direction of an Authorized City Representative, shall be registered in
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23 the name of the Trustee where applicable, as Trustee, and shall be held by the Trustee. The City shall direct the Trustee prior to 12:00 p.m. Pacific time on the second Business Day before the date on which a Permitted Investment m atures or is redeemed as to the reinvestment of the proceeds thereof. In the absence of such direction, the Trustee shall invest in investments authorized under clause (8) contained in the definition of “Permitted Investments.” The Trustee may rely on the City’s certification in such investment instructions that such investments are permitted by law and by any policy guidelines promulgated by the City. Money held in any fund or account hereunder may be commingled for purposes of investment only.
The Trus tee may purchase from or sell to itself or any affiliate, as principal or agent, investments authorized by this Section 9.01. Any investments and reinvestments shall be made after giving full consideration to the time at which funds are required to be ava ilable hereunder and giving due regard to the safety of such funds and the date upon which such funds will be required for the uses and purposes required by this Trust Agreement. The Trustee or any of its affiliates may act as agent in the making or disposing of any investment and may act as sponsor or advisor with respect to any Permitted Investment. For investment purposes, the Trustee may commingle the funds and accounts established hereunder, but shall account for each separately.
Section 9.02 Reports. The Trustee shall furnish monthly to the City a report or statement of all investments made by the Trustee and of all amounts on deposit in each fund and account maintained hereunder.
The City acknowledges that to the extent regulations of the Comptroller of t he Currency or other applicable regulatory entity grant the City the right to receive brokerage confirmations of security transactions as they occur, the City specifically waives receipt of such confirmations to the extent permitted by law. The Trustee wi ll furnish the City periodic cash transaction statements which include detail for all investment transactions made by the Trustee hereunder.
Section 9.03 Valuation and Disposition of Investments . For the purpose of determining the amount in any fund or account hereunder, all Permitted Investments shall be valued at the market value thereof not later than July 1 of each year. The Trustee may sell or present for redemption, any Permitted Investment so purchased by the Trustee whenever it shall be necessary in order to p rovide money to meet any required payment, transfer, withdrawal or disbursement from any fund or account hereunder, and the Trustee shall not be liable or responsible for any loss resulting from such investment or sale, except any loss resulting from its own negligence or willful misconduct.
Section 9.04 Application of Investment Earnings . Investments in any Fund or Account shall be deemed at all times to be a part of such Fund or Account, an d any profit realized from such investment shall be credited to such Fund or A ccount and any loss resulting from such investment shall be charged to such Fund or Account. Interest earnings on investments in any Fund or Account shall be deposited in the Bond Interest Account of the Revenue Fund.
ARTICLE X
DEFEASANCE
Section 10.01 Discharge of Bonds; Rele ase of Trust Agreement . Bonds or portions thereof (such portions to be in an Authorized Denomination) which have been paid in full or which are deemed to have been paid in full shall no longer be entitled to the benefits of this Trust
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24 Agreement except for the purposes of payment from moneys and Defeasance Securities. When all Bonds which have been issued under this Trust Agreement have been paid in full or are deemed to have been paid in full, and all other sums payable hereunder by the City, including al l necessary and proper fees, compensation and expenses of the Trustee and any Paying Agents, have been paid or are duly provided for, then the Trustee shall cancel, discharge and release this Trust Agreement, shall execute, acknowledge and deliver to the C ity such instruments of satisfaction and discharge or release as shall be requisite to evidence such release and such satisfaction and discharge and shall assign and deliver to the City any amounts at the time subject to this Trust Agreement which may then be in the Trustee’s possession, except funds or securities in which such funds are invested and held by the Trustee or the Paying Agents for the payment of the principal, premium, if any, and interest on the Bonds.
Section 10.02 Bonds Deemed Paid.
(a) A Bond shall be deeme d to be paid within the meaning of this Article XI and for all purposes of this Trust Agreement when (i) payment with respect thereto of the principal, interest and premium, if any, either (1) shall have been made or caused to be made in accordance with the terms of the Bonds and this Trust Agreement or (2) shall have been provided for, as certified to the Trustee by a Consultant who is a certified public accountant, by irrevocably depositing with the Trustee in trust and irrevocably setting aside exclusively for such payment: (x) moneys sufficient to make such payment, and/or (y) Defeasance Securities maturing as to principal and interest in such amounts and at such times as will insure the availability of sufficient moneys to make such payment, and (ii) all necessary and proper fees, compensation and expenses of the Trustee and any Paying Agents pertaining to the Bonds with respect to which such deposit is made shall have been paid or provision made for the payment thereof. At such times as Bonds shall be deemed to be paid hereunder, such Bonds shall no longer be secured by or entitled to the benefits of this Trust Agreement, except for the purposes of payment from such moneys and Defeasance Securities. (b) Notwithstanding the foregoing paragraph, no deposit u nder clause (i)(2) of the immediately preceding paragraph shall be deemed a payment of such Bonds until (i) proper notice of redemption of such Bonds shall have been given in accordance with Section 4.01, or in the event such Bonds are not to be redeemed w ithin the next succeeding 60 days, until the City shall have given the Trustee irrevocable instructions to notify, as soon as practicable, the holders of the Bonds in accordance with Section 4.01, that the deposit required by clause (i)(2) above has been made with the Trustee and that such Bonds are deemed to have been paid in accordance with this Article XI and stating the maturity or redemption date upon which moneys are to be available for the payment of the principal of, premium, if any, and unpaid inte rest on such Bonds; or (ii) the maturity of such Bonds.
ARTICLE XI
DEFAULTS AND REMEDIES
Section 11.01 Events of Default . Each of the following events shall constitute and is referred to in this Trust Agreement as an “Event of Default”:
(a) a failure to pay the principal or premium, if any, on any of the Bonds when the same shall become due and payable at maturity or upon redemption;
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25 (b) a failure to pay any installment of interest on any of the Bonds when such interest shall become due and payable;
(c) a failure by the City to obser ve and perform any covenant, condition, agreement or provision (other than as specified in clauses (a) and (b) of this Section 11.01) contained in the Bonds or in this Trust Agreement on the part of the City to be observed or performed, which failure shall continue for a period of 60 days after written notice, specifying such failure and requesting that it be remedied, shall have been given to the City by the Trustee; provided, however, that the Trustee shall be deemed to have agreed to an extension of such period if corrective action is initiated by the City within such period and is being diligently pursued; or (d) if the City files a petition in voluntary bankruptcy, for the composition of its affairs or for its corporate reorganization under any state or fed eral bankruptcy or insolvency law, or makes an assignment for the benefit of creditors, or admits in writing to its insolvency or inability to pay debts as they mature, or consents in writing to the appointment of a trustee or receiver for itself.
Upon its actual knowledge of the occurrence of any Event of Default, the Trustee shall immediately give written notice thereof to the City.
Section 11.02 Remedies.
(a) Upon the occurrence and continuance of any Event of Default, the Trustee in its discretion may, and shall upon the written direction of the holders of a majority of the Total Bond Obligation of the Bonds then Outstanding and, in each case, receipt of indemnity to its satisfaction, in its own name and as the Trustee of an express trust:
(1) by mandamus, or other suit, acti on or proceeding at law or in equity, enforce all rights of the Bondholders hereunder, as the case may be, and require the City to carry out any agreements with or for the benefit of the Bondholders and to perform its or their duties under the Refunding Law or any other law to which it is subject and this Trust Agreement; provided that any such remedy may be taken only to the extent permitted under the applicable provisions of this Trust Agreement;
(2) bring suit upon the defaulted Bonds;
(3) commence an action or suit in equity to require the City to account as if it were the trustee of an express trust for the Bondholders; or (4) by action or suit in equity enjoin any acts or things which may be unlawful or in violation of the rights of the Bondholders hereunder. (b) The Trustee shall be under no obligation to take any action with respect to any Event of Default unless the Trustee has actual knowledge of the occurrence of such Event of Default.
Section 11.03 Restoration to Former Position . In the event that any proceeding tak en by the Trustee to enforce any right under this Trust Agreement shall have been discontinued or abandoned for any reason, or shall have been determined adversely to the Trustee, then the City, the Trustee and the Bondholders shall be restored to their fo rmer positions and rights hereunder,
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26 respectively, and all rights, remedies and powers of the Trustee shall continue as though no such proceeding had been taken.
Section 11.04 Bondholders’ Right to Direct Proceedings on their Behalf . Anything in this Trust Agreement to the contrary notwithstanding, Holders of a majority in Total Bond Obligation shall have the right, at any time, by an instrument in writing executed and delivered to the Trustee, to direct the time, method and place of conducting all remedial proceedings on their behalf available to the Trustee under this Trust Agreement to be taken in connection with the enforcement of the terms of this Trust Agreement or exercising any trust or power conferred on the Trustee by this Trust Agreement; provided that such di rection shall not be otherwise than in accordance with the provisions of the law and this Trust Agreement and that there shall have been provided to the Trustee security and indemnity satisfactory to the Trustee against the costs, expenses and liabilities to be incurred as a result thereof by the Trustee; provided further that the Trustee shall have the right to decline to follow any such direction which in the opinion of the Trustee would be unjustly prejudicial to Bondholders not parties to such direction.
Section 11.05 Limitation on Bondholders’ Rights to Institute Proceedings. No owner of any Bond shall have the right to institute any suit, action or proceeding at law in equity, for the protection or enforcement of any right or remedy under this Trust Agreement, or a pplicable law with respect to such Bond, unless (a) such owner shall have given to the Trustee written notice of the occurrence of an Event of Default; (b) the owners of not less than a majority in Total Bond Obligation shall have made written request upon the Trustee to exercise the powers heretofore granted or to institute such suit, action or proceeding in its own name; (c) such owner or said owners shall have tendered to the Trustee reasonable indemnity against the costs, expenses and liabilities to be incurred in compliance with such request; (d) the Trustee shall have refused or failed to comply with such request for a period of 60 days after such written request shall have been received by and said tender of indemnity shall have been made to, the Trus tee and (e) the Trustee shall not have received contrary directions from the owners of a majority in aggregate principal amount of the Total Bonds Obligation.
Section 11.06 No Impairment of Right to Enforce Payment . Notwithstanding any other provision in this Trust Agreement, the right of any Bondholder to receive payment of the principal of and interest on such Holder’s Bond, on or after the respective due dates expressed therein, or to institute suit for the enforcement of any such payment on or after such respective date, shall not be impaired or affected without the consent of such Bondholder.
Section 11.07 Proceedings by Trustee Without Possession of Bonds . All rights of action under this Trust Agreement or under any of the Bonds secured hereby which are enforceable by the Trustee may be enforced by it without the possession of any of the Bonds, or the production thereof at the trial or other proceedings relative thereto, and any such suit, action or proceeding instituted by the Trustee shall be brought in its name for the equal and ratable benefit of the Bondholders, as the case may be, subject to the provisions of this Trust Agreement.
Section 11.08 No Remedy Exclusive. No remedy herein conferred upon or reserved to the Trustee or to Bondholders is intended to be exclusive of any other remedy or remedies, and each and every such remedy shall be cumulative, and shall be in addition to every other remedy given hereunder, or now or hereafter existing at law or in equity or by statute; provided, however, that any conditions set forth herein to th e taking of any remedy to enforce the provisions of this Trust
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27 Agreement or the Bonds shall also be conditions to seeking any remedies under any of the foregoing pursuant to this Section 11.08.
Section 11.09 No Waiver of Remedies . No delay or omission of the Trustee or of any Bondholder to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver of any such default, or an acquiescence therein and every power and remedy given by this Article XII to the Trustee and to the Bondholders, respectively, may be exercised from time to time and as often as may be deemed expedient.
Section 11.10 Application of Moneys.
(a) Any moneys received by the Trustee for the benefit of Bondholders, by any receiver or by any Bondholder pursuant to any right given or action taken under the provisions of this Article XII, after payment of the costs and expenses of the proceedings resulting in the collection of such moneys and of the fees, expenses, liabilities and advances incurred or made by t he Trustee (including without limitation reasonable fees and reasonable expenses of its attorneys , agents and advisors), shall be deposited in the Revenue Fund and all moneys so deposited in the Revenue Fund during the continuance of an Event of Default sh all be applied (i) first, to the payment to the persons entitled thereto of all installments of interest then due on the Bonds, with interest on overdue installments, if lawful, at the rate per annum borne by the Bonds, as the case may be, in the order of maturity of the installments of such interest (if the amount available for such interest installments shall not be sufficient to pay in full any particular installment of interest, then to the payment ratably, according to the amounts due on such installment), and if the amount available for such interest shall not be sufficient to make payment thereof, then to the payment thereof ratably according to the respective aggregate amounts due and (ii) second, to the payment to the persons entitled thereto of the unpaid principal, as applicable, of any of the Bonds which shall have become due with interest on such Bonds at their respective rate from the respective dates upon which they became due (if the amount available for such unpaid principal and interest shal l not be sufficient to pay in full Bonds due on any particular date, together with such interest, then to the payment ratably, according to the amount of principal and interest due on such date, in each case to the persons entitled thereto, without any dis crimination or privilege among Holders of Bonds), and, if the amount available for such principal and interest shall not be sufficient to make full payment thereof, then to the payment thereof ratably according to the respective aggregate amounts due. (b) Whenever moneys are to be applied pursuant to the provisions of this Section 11.10, such moneys shall be applied at such times, and from time to time, as the Trustee shall determine, having due regard to the amount of such moneys available for application and the likelihood of additional moneys becoming available for such application in the future. Whenever the Trustee shall apply such funds, it shall fix the date (which shall be an Interest Payment Date unless it shall deem another date more suitable) upon which such application is to be made and upon such date interest on the amounts to be paid on such date shall cease to accrue. The Trustee shall give notice of the deposit with it of any such moneys and of the fixing of any such date by Mail to all Bondhold ers and shall not be required to make payment to any Bondholder until such Bonds shall be presented to the Trustee for appropriate endorsement or for cancellation if fully paid.
Section 11.11 Severability of Remedies. It is the purpose and intention of this Article XII to provide rights and remedies to the Trustee and the Bondholders which may be lawfully granted under the provisions of applicable law, but should any right or remedy herein granted be held to be
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28 unlawful, the Trustee and the Bondholders shall be entitled , as above set forth, to every other right and remedy provided in this Trust Agreement and by applicable law.
Section 11.12 Additional Events of Default and Remedies . So long as any Bonds are Outstanding, the Events of Default and remedies as set forth in this Article XII may be supplemented with additional Events of Default and remedies as set forth from time to time in a supplemental agreement.
ARTICLE XII
TRUSTEE; REGISTRAR
Section 12.01 Acceptance of Trusts. The Trustee hereby accepts and agrees to execute the trusts specifically imposed upon it by this Trust Agreement, but only upon the additional terms set forth in this Article XIII, to all of which the City agrees and the respective Bondholders agree by their acceptance of delivery of any of the Bonds.
Section 12.02 Duties of Trustee.
(a) If an Event of Default has occurred and is continuing, the Trustee shall exercise its rights and powers and use the same degree of care and skill in their exercise as a prudent person would exercise or use under the circumstances in the conduct of such person’s own affairs. (b) Except during the continuance of an Event of Default:
(i) the Trustee shall perform only those duties that are specifically set forth in this Trust Agreement and no others and no implied duties or obligations shall be read into Trust Agreement as to the Trustee; and
(ii) in the absence of negligence on its part, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed, upon certificates or opinions furnished to the Trustee and conforming to the requirements of this Trust Agreement. (c) The Trustee may not be relieved from liability for its own negligent action, its own negligent failure to act or its own willful misconduct, except that:
(i) this paragraph does not limit the effect of paragraph (b) of this Section 12.02;
(ii) the Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer unless the Trustee was negligent in ascertaining the pertinent facts; (iii) the Trustee shall not be liable with respect to any action it ta kes or fails to take in good faith in accordance with a direction received by it from Bondholders or the City in the manner provided in this Trust Agreement; and
(iv) no provision of this Trust Agreement shall require the Trustee to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder or in the exercise of any of its rights or powers.
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29 (d) Every provision of this Trust Agreement that in any way relates to the Trustee is subject to all the paragraphs of this Section 12.02. (e) The Trustee may refuse to perform any duty or exercise any right or power unless it receives indemnity reasonably satisfactory to it against any loss, liability or expense. (f) The Trustee shall not be liable for interest on any cash held by it except as the Trustee may agree with the City.
Section 12.03 Rights of Trustee.
(a) The recitals of facts contained herein and in the Bonds shall be taken as statements of the City, and the Trustee assumes no responsibility for the correctness of the same (other th an the certificate of authentication of the Trustee on each Bond), and makes no representations as to the validity or sufficiency of this Trust Agreement or of the Bonds or of any Permitted Investment and shall not incur any responsibility in respect of an y such matter, other than in connection with the duties or obligations expressly assigned to or imposed upon it herein or in the Bonds. The Trustee shall, however, be responsible for its representations contained in its certificate of authentication on th e Bonds. The Trustee shall not be liable in connection with the performance of its duties hereunder, except for its own negligence, willful misconduct or breach of the express terms and conditions hereof. The Trustee and its directors, officers, employee s or agents may in good faith buy, sell, own, hold and deal in any of the Bonds and may join in any action which any Holder of a Bond may be entitled to take, with like effect as if the Trustee was not the Trustee under this Trust Agreement.
(b) The Trustee ma y execute any of the trusts or powers hereof and perform the duties required of it hereunder by or through attorneys, agents or receivers, and shall be entitled to advice of counsel concerning all matters of trust and its duty hereunder, and the opinion of such counsel shall be authorization for any action taken or not taken in reliance on such opinion, but the Trustee shall not be answerable for the negligence or misconduct of any such attorney, agent or receiver selected by it with due care.
(c) No permissive power, right or remedy conferred upon the Trustee hereunder shall be construed to impose a duty to exercise such power, right or remedy. (d) The Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certifica te, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, coupon or other paper or document but the Trustee, in its discretion, may make such further inquiry or investigation into such facts or matters as it m ay see fit, and, if the Trustee shall determine to make such further inquiry or investigation, it shall be entitled to examine the books, records and premises of the City, personally or by agent or attorney. (e) The Trustee shall not be responsible for the app lication or handling by the City of any moneys transferred to or pursuant to any requisition or request of the City in accordance with the terms and conditions hereof.
(f) Whether or not therein expressly so provided, every provision of this Trust Agreement relating to the conduct or affecting the liability of or affording protection to the Trustee shall be subject to the provisions of this Article XIII.
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30 (g) The Trustee shall be protected in acting upon any notice, resolution, request, consent, order, certificate, report, facsimile transmission, electronic mail, opinion, note or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties.
(h) The Trustee shall not be considered in breach of or in default in it s obligations hereunder or progress in respect thereto in the event of delay in the performance of such obligations due to unforeseeable causes beyond its control and without its fault or negligence, including, but not limited to, Acts of God or of the pub lic enemy or terrorists, acts of a government, acts of the other party, fires, floods, epidemics, quarantine restrictions, strikes, freight embargoes, earthquakes, explosion, mob violence, riot, inability to procure or general sabotage or rationing of labor, equipment, facilities, sources of energy, material or supplies in the open market, litigation or arbitration involving a party or others relating to zoning or other governmental action or inaction pertaining to the project, malicious mischief, condemnat ion, and unusually severe weather or delays of suppliers or subcontractors due to such causes or any similar event and/or occurrences beyond the control of the Trustee.
(i) The Trustee agrees to accept and act upon facsimile transmission of written instructions and/or directions pursuant to this Trust Agreement provided, however, that:
(x) subsequent to such facsimile transmission of written instructions and/or directions the Trustee shall forthwith receive the originally executed instructions and/or direction s, (y) such originally executed instructions and/or directions shall be signed by a person as may be designated and authorized to sign for the party signing such instructions and/or directions, and (z) the Trustee shall have received a current incumbency c ertificate containing the specimen signature of such designated person.
Section 12.04 Individual Rights of Trustee . The Trustee in its individual or any other capacity may become the owner or pledgee of Bonds and may otherwise deal with the City with the same rights it would have if it were not Trustee. Any Paying Agent or other agent may do the same with like rights.
Section 12.05 Trustee’s Disclaimer . The Trustee makes no representations as to the validity or adequacy of this Trust Agreement or the Bonds, it shall not be accounta ble for the City’s use of the proceeds from the Bonds paid to the City and it shall not be responsible for any statement in any official statement or other disclosure document or in the Bonds other than its certificate of authentication.
Section 12.06 Notice of Defaults . If an event occurs which with the giving of notice or lapse of time or both would be an Event of Default, and if the event is continuing and if it is actually known to the Trustee, the Trustee shall mail to each Bondholder notice of the event within 90 days after it occurs. Except in the case of a default in payment or purchase on any Bonds, the Trustee may withhold the notice to Bondholders if and so long as a committee of its Responsible Officers in good faith determines that withholding the notice is in the interests of the Bondholders.
Section 12.07 Compensation of Trustee . The C ity shall from time to time, but only in accordance with a written agreement in effect with the Trustee, pay to the Trustee reasonable compensation for its services and shall reimburse th e Trustee for all its reasonable advances and expenditures, including but not limited to advances to and fees and expenses of independent appraisers, accountants, consultants, counsel, agents and attorneys -at-law or other experts employed
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31 by it in the exer cise and performance of its powers and duties hereunder. The Trustee shall not otherwise have any claims or lien for payment of compensation for its services against any other moneys held by it in the funds or accounts established hereunder, except as pro vided in Section 11.10, but may take whatever legal actions are lawfully available to it directly against the City. To the extent permitted by applicable law, the City agrees to indemnify and save the Trustee, its officers, employees, directors and agents , harmless against any costs, expenses, claims or liabilities whatsoever, including, without limitation, fees and expenses of its attorneys, that it may incur in the exercise and performance of its powers and duties hereunder which are not due to its negligence or willful misconduct. The agreement contained in this Section shall survive the payment of the Bonds, the discharge of this Trust Agreement and the appointment of a successor trustee.
Section 12.08 Eligibility of Trustee . This Trust Agreement shall always have a Trustee that is a trust company, a bank or association having trust powers and is organized and doing business under the laws of the United States or any state or the District of Columbia, is subject to supervision or examination by United States, state or District of Columbia authority and has a combined capital and surplus of at least $100,000,000 as set forth in its most recent published annual report of condition.
Section 12.09 Replacement of Trustee.
(a) The Trustee may resign as trustee hereunder by notifying the City in writing prior to the proposed effective date of the resignation. The Holders of a majority in Total Bond Obligation of the Bonds may remove the Trustee by notifying the removed Trustee a nd may appoint a successor Trustee with the City’s consent. The City may remove the Trustee, by notice in writing delivered to the Trustee 30 days prior to the proposed removal date; provided, however, that the City shall have no right to remove the Trustee during any time when an Event of Default has occurred and is continuing unless (i) the Trustee fails to comply with the foregoing Section, (ii) the Trustee is adjudged a bankrupt or an insolvent, (iii) the Trustee otherwise becomes incapable of acting o r (iv) the City determines that the Trustee’s services are no longer satisfactory to the City. No resignation or removal of the Trustee under this Section shall be effective until a new Trustee has taken office. If the Trustee resigns or is removed or fo r any reason is unable or unwilling to perform its duties under this Trust Agreement, the City shall promptly appoint a successor Trustee. (b) A successor Trustee shall deliver a written acceptance of its appointment to the retiring Trustee and to the City. Immediately thereafter, the retiring Trustee shall transfer all property held by it as Trustee to the successor Trustee, the resignation or removal of the retiring Trustee shall then (but only then) become effective and the successor Trustee shall have all the rights, powers and duties of the Trustee under this Trust Agreement. If a Trustee is not performing its duties hereunder and a success or Trustee does not take office within 60 days after the retiring Trustee delivers notice of resignation or the City delivers notice of removal, the retiring Trustee, the City or the Holders of a majority in Total Bond Obligation of the Bonds may petition any court of competent jurisdiction for the appointment of a successor Trustee.
Section 12.10 Successor Trustee or Agent by Merger . If the Trustee, any Paying Agent or Registrar consolidates with, merges or converts into, or transfers all or substantially all its asset s (or, in the case of a bank or trust company, its corporate trust business) to, another corporation, the resulting, surviving or transferee corporation without any further act shall be the successor Trustee, Paying Agent or Registrar.
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32 Section 12.11 Registrar. The City shall appoint the Registrar for the Bonds and may from time to time remove a Registrar and name a replacement upon notice to the Trustee. The City hereby appoints the Trustee as Registrar. Each Registrar, if other than the Trustee, shall designate to th e Trustee, the Paying Agent, and the City its principal office and signify its acceptance of the duties imposed upon it hereunder by a written instrument of acceptance delivered to the City and the Trustee under which such Registrar will agree, particularl y, to keep such books and records as shall be consistent with prudent industry practice and to make such books and records available for inspection by the City, the Trustee, and the Paying Agent at all reasonable times.
Section 12.12 Other Agents. The City or the Trust ee may from time to time appoint other agents to perform duties and obligations under this Trust Agreement which agents may include, but not be limited to, authenticating agents all as provided by resolution of the City.
Section 12.13 Several Capacities . Anything in th is Trust Agreement to the contrary notwithstanding, the same entity may serve hereunder as the Trustee, Registrar and any other agent as appointed to perform duties or obligations under this Trust Agreement or an escrow agreement, or in any combination of such capacities, to the extent permitted by law.
Section 12.14 Accounting Records and Reports of Trustee. (a) The Trustee shall at all times keep, or cause to be kept, proper books of record and account in which complete and accurate entries shall be made of all transaction s made by it relating to the proceeds of the Bonds and all Funds and Accounts established pursuant to this Trust Agreement and held by the Trustee. Such books of record and account shall be available for inspection by the City and any Bondholder, or his a gent or representative duly authorized in writing, at reasonable hours and under reasonable circumstances. (b) The Trustee shall file and furnish to the City and to each Bondholder who shall have filed his name and address with the Trustee for such purpose (at such Bondholder’s cost), on an annual basis (or, with respect to the City, such other interval that the City may request), a complete financial statement (which may be its regular account statements and which need not be audited) covering receipts, disbur sements, allocation and application of moneys in any of the funds and accounts established pursuant to this Trust Agreement for the preceding year.
Section 12.15 No Remedy Exclusive. No remedy herein conferred upon or reserved to the City is intended to be exclusive of any other remedy or remedies, and each and every such remedy shall be cumulative, and shall be in addition to every other remedy given hereunder, or now or hereafter existing at law or in equity or by statute.
ARTICLE XIII
MODIFICATION OF THIS TRUST AGREEMENT
Section 13.01 Limitations. This Trust Agreement shall not be modified or amended in any respect subsequent to the first delivery of fully executed and authenticated Bonds except as provided in and in accordance with and subject to the provisions of this Article XIV.
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33 Section 13.02 Supplemental Agreements Not Requiring Consent of Bondholders. (a) The City may, from time to time and at any time , without the consent of or notice to the Bondholders, execute and deliver supplemental agreements supplementing and/or amending this Trust Agreement as follows:
(i) to cure any defect, omission, inconsistency or ambiguity in this Trust Agreement;
(ii) to add to the covenants and agreements of the City in this Trust Agreement other covenants and agreements, or to surrender any right or power reserved or conferred upon the City, and which shall not adversely affect the interests of the Bondholders; (iii) to confirm, as further assurance, any interest of the Trustee in and to the Funds and Accounts held by the Trustee or in and to any other moneys, securities or funds of the City provided pursuant to this Trust Agreement or to otherwise add security for the Bondholders; (iv) to comply with the requirements of the Trust Indenture Act of 1939, as from time to time amended;
(v) to modify, alter, amend or supplement this Trust Agreement in any other respect which, in the judgment of the City, is not materially adverse to the Bondholders; (vi) to qualify the Bonds for a rating or ratings by any Rating Agency; and (vii) to authorize the issuance of Additional Bonds in accordance with this Trust Agreement.
(b) Before the City shall, pursuant to this Section 14.02, execute any supplemental agreement there shall have been delivered to the City an opinion of Bond Counsel to the effect that such supplemental agreement (i) is authorized or permitted by this Trust Agreement and the Refunding Law, and (ii) will, upon the execution and delivery thereof, be valid and binding upon the City in accordance with its terms, subject to the typical exceptions.
Section 13.03 Supplemental Agreement Requiring Consent of Bondholders. (a) Except for any supplemental agreement entered into pursuant to Section 14.02, the Holders of not less than a majority in Total Bond Obligation shall have the right from time to time to consent to and approve the execution by the City of any supplemental agreement deemed necessary or desirable by the City for the purposes of modifying, altering, amending, supplementing or rescinding, in any particular, any of the terms or provisions contained in this Trust Agreement or in a supplemental agreement; provided, however, that, unless approved in writing by the Holders of all the Bonds then Outstanding, nothing contained herein shall permit or be construed as permitting (i) a change in the times, amounts or currency of payment of the principal of or interest on any Outstandi ng Bonds or (ii) a reduction in the principal amount or redemption price of any Outstanding Bonds or the rate of interest thereon; and provided that nothing contained herein, including the provisions of Section 14.03(b) below, shall, unless approved in wri ting by the Holders of all the Bonds then Outstanding, permit or be construed as permitting (1) a preference or priority of any Bond or Bonds over any other Bond or Bonds or (2) a reduction in the aggregate principal amount of Bonds the consent of the Holders of which is required for any such supplemental
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34 agreement. Nothing herein contained, however, shall be construed as making necessary the approval by Holders of the execution of any supplemental agreement as authorized in Section 14.02. (b) If at any time the City shall desire to enter into any supplemental agreement for any of the purposes of this Section 14.03, the City shall cause notice of the proposed execution of the supplemental agreement to be given by Mail to all Holders. Such notice shall briefly set forth the nature of the proposed supplemental agreement and shall state that a copy thereof is on file at the office of the City for inspection by all Holders.
(c) Within two weeks after the date of the first mailing of such notice, the Cit y may execute and deliver such supplemental agreement in substantially the form described in such notice, but only if there shall have first been delivered to the City (i) the required consents, in writing, of Holders and (ii) an opinion of Bond Counsel st ating that such supplemental agreement is authorized or permitted by this Trust Agreement and other applicable law, complies with their respective terms and, upon the execution and delivery thereof, will be valid and binding upon the City in accordance with its terms.
(d) If Holders of not less than the percentage of Bonds required by this Section 14.03 shall have consented to and approved the execution and delivery thereof as herein provided, no Holders shall have any right to object to the adoption of such su pplemental agreement, or to object to any of the terms and provisions contained therein or the operation thereof, or in any manner to question the propriety of the execution and delivery thereof, or to enjoin or restrain the City from executing the same or from taking any action pursuant to the provisions thereof.
Section 13.04 Effect of Supplemental Agreements . Upon execution and delivery of any supplemental agreement pursuant to the provisions of this Article XIV, this Trust Agreement and all supplemental agreements shall be, and shall be deemed to be, modified and amended in accordance therewith, and the res pective rights, duties and obligations under this Trust Agreement and all supplemental agreements of the City, the Trustee, the Registrar, any Paying Agent and all Holders shall thereafter be determined, exercised and enforced under this Trust Agreement an d all supplemental agreements, subject in all respects to such modifications and amendments.
Section 13.05 Supplemental Agreements to be Part of this Trust Agreement . Any supplemental agreement adopted in accordance with the provisions of this Article XIV shall thereafter form a part of this Trust Agreement or the supplemental agreement which they supplement or amend, and all of the terms and conditions contained in any such supplemental agreement as to any provision authorized to be contained therein shall be and shall be deemed to be part of the terms and conditions of this Trust Agreement which they supplement or amend for any and all purposes.
ARTICLE XIV
MISCELLANEOUS PROVISIONS
Section 14.01 Parties in Interest . Except as herein otherwise specifically provided, nothing in this Trust Agreement expressed or implied is intended or shall be construed to confer upon any person, firm or corporation other than the City, the Paying Agent, the Trustee, and the Bondholders any right, remedy or claim under or by reason of this Trust Agreement, this Trust Agreement being intended to be for the sole and exclusive benefit of the City, the Paying Agent, the Trustee and the Bondholders.
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35 Section 14.02 Severability. In case any one or more of the provisions of this Trust Agreement, or of any Bonds issued hereunder shall , for any reason, be held to be illegal or invalid, such illegality or invalidity shall not affect any other provisions of this Trust Agreement or of Bonds, and this Trust Agreement and any Bonds issued hereunder shall be construed and enforced as if such illegal or invalid provisions had not been contained herein or therein.
Section 14.03 No Personal Liability of City Officials; Limited Liability of City to Bondholders.
(a) No covenant or agreement contained in the Bonds or in this Trust Agreement shall be deemed to be the covenant or agreement of any present or future official, officer, agent or employee of the City in his individual capacity, and neither the members of the City Council of the City nor any person executing the Bonds shall be liable personally on the Bonds o r be subject to any personal liability or accountability by reason of the issuance thereof. (b) Except for the payment when due of the payments and the observance and performance of the other agreements, conditions, covenants and terms required to be performed by it contained in this Trust Agreement, the City shall not have any obligation or liability to the Bondholders with respect to this Trust Agreement or the preparation, execution, delivery, transfer, exchange or cancellation of the Bonds or the receipt, d eposit or disbursement of the payments by the Trustee, or with respect to the performance by the Trustee of any obligation required to be performed by it contained in this Trust Agreement.
Section 14.04 Execution of Instruments; Proof of Ownership. (a) Any request, directio n, consent or other instrument in writing required or permitted by this Trust Agreement to be signed or executed by Bondholders or on their behalf by an attorney-in-fact may be in any number of concurrent instruments of similar tenor and may be signed or e xecuted by such Bondholders in person or by an agent or attorney -in-fact appointed by an instrument in writing or as provided in the Bonds. Proof of the execution of any such instrument and of the ownership of Bonds shall be sufficient for any purpose of this Trust Agreement and shall be conclusive in favor of the Trustee with regard to any action taken by it under such instrument if made in the following manner:
(i) the fact and date of the execution by any person of any such instrument may be proved by the c ertificate of any officer in any jurisdiction who, by the laws thereof, has power to take acknowledgments within such jurisdiction, to the effect that the person signing such instrument acknowledged before him the execution thereof, or by an affidavit of a witness to such execution; and
(ii) the ownership of Bonds shall be proved by the registration books kept under the provisions of Section 3.01 hereof;
(b) Nothing contained in this Section 15.04 shall be construed as limiting the Trustee to such proof. The Truste e may accept any other evidence of matters herein stated which it may deem sufficient. Any request, consent of, or assignment by any Bondholder shall bind every future Bondholder of the same Bonds or any Bonds issued in lieu thereof in respect of anything done by the Trustee or the City in pursuance of such request or consent.
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36 Section 14.05 Governing Law; Venue . This Trust Agreement is made in the State under the Constitution and laws of the State and is to be so construed. If any party to this Trust Agreement initiates any legal or equitable action to enforce the terms of this Trust Agreement, to declare the rights of the parties under this Trust Agreement or which relates to this Trust Agreement in any manner, each such party agrees that the place of making and for performance of this Trust Agreement shall be the City of Gilroy, State of California, and the proper venue for any such action is the Superior Court of the State of California, in and for the City of Gilroy.
Section 14.06 Notices.
(a) Any notice, request, direction, designat ion, consent, acknowledgment, certification, appointment, waiver or other communication required or permitted by this Trust Agreement or the Bonds must be in writing except as expressly provided otherwise in this Trust Agreement or the Bonds.
(b) Except as oth erwise required herein, all notices required or authorized to be given to the City, the Trustee and Paying Agent pursuant to this Trust Agreement shall be in writing and shall be sent by registered or certified mail, postage prepaid, to the following addresses:
1. if to the City, to:
City of Gilroy
7351 Rosanna Street
Gilroy, California 95020
Attention: City Administrator
2. if to the Trustee and Paying Agent, to:
_____________
_____________
_____________
Attention: ____________
Ref: City of Gilroy POB
or to such other addresses as may from time to time be furnished to the parties, effective upon the receipt of notice thereof given as set forth above.
Section 14.07 Holidays. If the date for making any payment or the last date for performance of any act or the exercising of any right, as provided in this Trust Agreement, shall not be a Business Day, such payment may, unless otherwise provided in this Trust Agreement be made or act performed or right exercised on the next succeeding Business Da y with the same force and effect as if done on the nominal date provided in this Trust Agreement, and no interest shall accrue for the period from and after such nominal date.
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37 Section 14.08 Captions. The captions and table of contents in this Trust Agreement are for convenience only and do not define or limit the scope or intent of any provisions or Sections of this Trust Agreement.
Section 14.09 Counterparts. This Trust Agreement may be signed in several counterparts, each of which will be an original, but all of them together constitute the same instrument. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.]
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IN WITNESS WHEREOF, the parties hereto have executed this Trust Agreement by their officers thereunto duly authorized as of the date first above written.
CITY OF GILROY
By:
City Administrator
ATTEST:
City Clerk
____________________, as Trustee
By:
Authorized Officer
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EXHIBIT “A”
FORM OF BOND
Unless this Bond is presented by an authorized representative of The Depository Trust Company, a New York corporation (“DTC”), to the City of Gilroy or its agent for registration of transfer, exchange, or payment, and any Bond issued is registered in the name of Cede & Co. or in such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such oth er entity as is requested by an authorized representative of DTC), ANY
TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein.
No. ____ $_____________
CITY OF GILROY
2022 TAXABLE PENSION OBLIGATION BONDS
Neither the faith and credit nor the taxing power of the State of California or any public agency is pledged to the payment of the principal of, or interest on, this Bond.
Maturity
Interest Rate
Per Annum
Dated
Date
CUSIP
NO.
June 1, ____ _____% ___________, 2022 _____________
REGISTERED OWNER: CEDE & CO.
PRINCIPAL AMOUNT: _________________ AND NO/100 DOLLARS THE CITY OF GILROY, a charter city duly organized and validly existing under and pursuant to the Constitution and the laws of the State of California, for value received, hereby promises to pay to the registered owner named above or registered assigns, on the maturity date specified above, the principal sum specified above together with interest on such principal sum at the rates determined as herein provided on each Interest Payment Date (hereinafter defined) from the Interest Payment Date next preceding the date of authentication and deliv ery thereof, unless (i) such date of authentication is an Interest Payment Date in which event interest shall be payable from such date of authentication; (ii) it is authenticated after a Record Date and before the close of business on the immediately foll owing Interest Payment Date, in which event interest thereon shall be payable from such Interest Payment Date; or (iii) it is authenticated prior to the close of business on the first Record Date, in which event interest thereon shall be payable from its D ated Date ; provided, however, that if at the time of authentication of any Bond interest thereon is in default, interest thereon shall be payable from the Interest Payment Date to which interest has previously been paid or
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made available for payment or, if no interest has been paid or made available for payment, from its Dated Date . The principal hereof and premium, if any, hereon are payable when due upon presentation hereof at the Principal Office of ____________________, as trustee (together with any successor as trustee under the Trust Agreement (hereinafter defined), the “ Trustee”), in lawful money of the United States of America.
This Bond is one of a duly authorized issue of City of Gilroy 2022 Taxable Pension Obligation Bonds (the “ Bonds”) of the designation indicated on the face hereof. Said authorized issue of Bonds is limited in aggregate principal amount as provided in the Trust Agreement and consists or may consist of one or more series of varying denominations, dates, maturities, interest rates and other provisions, as provided in the Trust Agreement, all issued and to be issued pursuant to the provisions of Articles 10 and 11 (commencing with Section 53570 of Chapter 3 of Division 2 of Title 5 of the California Government Code (the “ Refunding Law”). This Bond is issued pursuant to the Trust Agreement dated as of ________ 1, 2022 by and between the City of Gilroy and ____________________, as trustee, providing for the issuance of the Bonds and setting forth the terms and authorizing the issuance of the Bonds (said Trust Agreement as amended, supplemented or otherwise modified from time to time being the “ Trust Agreement”). Reference is hereby made to the Trust Agreement and to the Refunding Law for a description of the terms on which the Bond s are issued and to be issued, and the rights of the registered owners of the Bonds; and all the terms of the Trust Agreement and the Refunding Law are hereby incorporated herein and constitute a contract between the City and the registered owner from time to time of this Bond, and to all the provisions thereof the registered owner of this Bond, by its acceptance hereof, consents and agrees. All capitalized terms used herein and not otherwise defined shall have the meanings given such terms in the Trust Agreement.
The City is required under the Trust Agreement to make payments on the Bonds from any source of legally available funds. The City has covenanted to make the necessary annual appropriations for such purpose.
The obligation of the City to make paym ents on the Bonds does not constitute an obligation of the City for which the City is obligated to levy or pledge any form of taxation or for which the City has levied or pledged any form of taxation.
This Bond is one of the Bonds described in the Trust Agreement.
Interest on Bonds
Interest shall be computed on the basis of a 360-day year consisting of twelve 30-day months.
The Bonds or the principal portion thereof called for redemption will cease to bear interest after the specified redemption date, prov ided that notice has been given pursuant to the Trust Agreement and sufficient funds for redemption are on deposit at the place of payment on the redemption date.
Redemption of Bonds
Optional Redemption. The Bonds maturing on or after June 1, 20___ may be redeemed at the option of the City from any source of funds on any date on or after June 1, 20___, in whole or in part from such maturities as are selected by the City and by lot within a maturity at a redemption price equal to the principal amount to be redeemed, together with accrued interest to the date of redemption, without premium.
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Make-Whole Redemption of Bonds. The Bonds are subject to redemption prior to June 1, 20___, at the option of the City, in whole or in part (and if in part in any order of maturity selected by the City and within a maturity bearing interest at the same rate on a pro -rata basis as described below), on any date at a redemption price equal to the greater of:
(a) 100% of the principal amount of the Bonds to be redeemed; or (b) the sum of the present value of the remaining scheduled payments of principal and interest to the maturity date of such Bonds to be redeemed, not including any portion of those payments of interest accrued and unpaid as of the date on which such Bonds a re to be redeemed, discounted to the date on which such Bonds are to be redeemed on a semi -annual basis, assuming a 360-day year consisting of twelve 30-day months, at the Comparable Treasury Yield (defined below) plus 15 basis points, plus, in each case, accrued interest on such Bonds to be redeemed to the redemption date.
For purposes of the foregoing, the following terms have the following meanings:
“Calculation Agent” means a commercial bank or an investment banking institution of national standing that is a primary dealer of United States government securities in the United States and designated by the City (which may be one of the institutions that served as an underwriter for the Bonds).
“Comparable Treasury Issue” means the United States Treasury security selected by the Calculation Agent as having a maturity comparable to the remaining term to maturity of the Bonds being redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pric ing new issues of corporate debt securities of comparable maturity to the remaining term to maturity of the Bonds being redeemed. “Comparable Treasury Price” means, with respect to any date on which a Bond or portion thereof is being redeemed, either (a) the average of five Reference Treasury Dealer quotations for the date fixed for redemption, after excluding the highest and lowest such quotations, and (b) if the Calculation Agent is unable to obtain five such quotations, the average of the quotations that are obtained. The quotations will be the average, as determined by the Calculation Agent, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of principal amount) quoted in writing to the Calculation Agent , at 5:00 p.m. New York City time on a date selected by the Calculation Agent which is not less than three business days and not more than 20 business days preceding the date fixed for redemption.
“Comparable Treasury Yield” means the yield that represents the weekly average yield to maturity for the preceding week appearing in the most recently published statistical release designated “H.15(519) Selected Interest Rates” under the heading “Treasury Constant Maturities,” or any successor publication selected by the Calculation Agent that is published weekly by the Board of Governors of the Federal Reserve System and that establishes yields on actively traded United States Treasury securities adjusted to constant maturity, for the maturity corresponding to the remaining term to maturity of the Bonds being redeemed. The Comparable Treasury Yield will be determined no sooner than the third business day nor earlier than the twentieth calendar day preceding the applicable date fixed for redemption. If the H.15(519) statistical release sets forth a weekly average yield for United States Treasury securities that have a constant maturity that is the same as the remaining term to maturity of the Bonds being redeemed, then the Comparable Treasury Yield will
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be equal to s uch weekly average yield. In all other cases, the Comparable Treasury Yield will be calculated by interpolation on a straight -line basis between the weekly average yields on the United States Treasury securities that have a constant maturity (i) closest to and greater than the remaining term to maturity of the Bonds being redeemed; and (ii) closest to and less than the remaining term to maturity of the Bonds being redeemed. Any weekly average yields calculated by interpolation will be rounded to the nearest 1/100th of 1%, with any figure of 1/200th of 1% or above being rounded upward. If, and only if, weekly average yields for United States Treasury securities for the preceding week are not available in the H.15(519) statistical release or any successor publ ication, then the Comparable Treasury Yield will be the rate of interest per annum equal to the semiannual equivalent yield to maturity of the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Pr ice (each as defined herein) as of the date fixed for redemption.
“Reference Treasury Dealer” means a primary dealer of United States Government securities in the United States (which may be one of the institutions that served as an underwriter for the Bonds) appointed by the City and reasonably acceptable to the Calculation Agent.
Mandatory Sinking Fund Redemption of Bonds . The Bonds maturing June 1, 20___ (the “20___ Term Bonds”) are subject to mandatory sinking fund redemption at a redemption price equal to the principal amount thereof, plus accrued interest to the redemption date, without premium. The 20___ Term Bonds shall be so redeemed on the following dates and in the following amounts:
Redemption Date
(June 1)
Principal
Amount
* Final maturity.
Certain Defined Terms
“Interest Payment Date ” means June 1 and December 1 of each year, commencing December 1, 2022.
“Record Date ” means the fifteenth day of each calendar month preceding any Interest Payment Date, regardless of whether such day is a Business Day.
Other Provisions
The rights and obligations of the City and of the holders and registered owners of the Bonds may be modified or amended at any time in the manner, to the extent, and upon the terms provided in the Trust Agreement, which provide, in certain circumstances, for modifications and amendments without the consent of or notice to the registered owners of the Bonds.
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It is hereby certified and recited that any and all acts, conditions and things required to exist, to happen and to be performed, precedent to and in the incurring of the indebtedness evidenced by this Bond, and in the issuing of this Bond, do exist, have happened and have been performed in due time, form a nd manner, as required by the Constitution and statutes of the State of California, and that this Bond, is within every debt and other limit prescribed by the Constitution and the statutes of the State of California, and is not in excess of the amount of B onds permitted to be issued under the Trust Agreement or the Refunding Law.
This Bond shall not be entitled to any benefit under the Trust Agreement, or become valid or obligatory for any purpose, until the certificate of authentication hereon endorsed sha ll have been manually signed by the Trustee.
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IN WITNESS WHEREOF, THE CITY OF GILROY, a charter city duly organized and validly existing under and pursuant to the Constitution and the laws of the State of California, has caused this Bond to be executed in its name and on its behalf by the Mayor of the City Council, and attested by the City Clerk, and this Bond to be dated as of the Dated Date.
CITY OF GILROY
By:
Its: Mayor
ATTEST:
City Clerk
[FORM OF CERTIFICATE OF AUTHENTICATION AND REGISTRATION] This is one of the Bonds described in the within -mentioned Trust Agreement and authenticated the date set forth below.
Dated: __________, 2022
________________, as Trustee
By:
Authorized Signatory
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[FORM OF ASSIGNMENT]
For value received _____________________ hereby sells, assigns and transfers unto __________________ (Tax I.D. No.: __________________) the within Bond and hereby irrevocably constitute and appoints ____________________ attorney, to transfer the same on the books of the City at the office of the Trustee, with full power of substitution in the premises.
NOTE: The signature to this Assignment must
correspond with the name on the face of the within
Registered Bond in every particular, without alteration or enlargement or any change whatsoever.
Dated: _______________
Signature Guaranteed by:
NOTE: Signature must be guaranteed by an eligible
guarantor institution.
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EXHIBIT “B”
FORM OF REQUISITION
TO: ________________ City of Gilroy Use Only
Request No. __
DISBURSEMENT REQUEST: REGARDING ____________ CITY OF GILROY 2022 TAXABLE
PENSION OBLIGATION BONDS
You are hereby requested to pay from the Costs of Issuance Fund established by the Trust Agreement with respect to the above -referenced bonds, to the person, corporation or other entity designated below as Payee, the sum set forth below such designation, in payment of all ( ) or a portion ( ) of the Costs of Issuance described below.
Name of Payee:
Address:
Amount: $____________
Method of Payment: ___________________
Service Provided:
The undersigned hereby certifies that:
(i) s/he is an Authorized City Representative;
(ii) this requisition for payment is in accordance with the terms and provision s of Section 6.01 of the Trust Agreement;
(iii) each item to be paid with the requisitioned funds represents either incurred or due and payable Costs of Issuance;
(iv) such Costs of Issuance have not been paid from other funds withdrawn from the Costs of Issuance Fund; and
(v) to the best of the signatory’s knowledge no Event of Default has occurred and is continuing under the Trust Agreement.
Dated: _____________ CITY OF GILROY
By:
Name:
Title:
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City of Gilroy
STAFF REPORT
Agenda Item Title: Enter into Lease Agreement with Santa Clara County and First Five of California to use San Ysidro Cultural Center as a Family Resource Center.
Meeting Date: January 24, 2022
From: Jimmy Forbis, City Administrator
Department: Administration
Submitted By: Adam Henig
Prepared By: Adam Henig
Strategic Plan Goals
☐ Develop a Financially
Resilient Organization
Ensure Neighborhood
Equity from City
Services
☐ Promote Economic
Development
Activities
☐ Promote Safe,
Affordable Housing for All
☐ Maintain and Improve
City Infrastructure
RECOMMENDATION
Motion to approve entering into a multi -year lease agreement that would net the City $265,000 through June 30, 2026 with First 5 Santa Cla ra County and County of Santa Clara to utilize the San Ysidro Cultural Center for the purpose of a Family Resource Center.
EXECUTIVE SUMMARY
The City of Gilroy is seeking to partner with the County of Santa Clara Probation Department: Neighborhood Safety /Services Unit (NSU), First 5 of Santa Clara County, and Catholic Charities to establish a full -service First 5 Demonstration Family Resource Center (FRC) at San Ysidro Cultural Center located at San Ysidro Park. Through the duration of the agreement, the County would pay $60,000 annually to lease the Center.
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BACKGROUND
For decades, San Ysidro Park was known as a park inaccessible for families, due to illicit and negative activities, including negative risk factors such as rampant drug -use, violence, and v andalism. Under the formation of the Gilroy Gang Task Force, which eventually expanded to the South County Youth Task Force (SCYTF) —comprising of the cities and school districts of Gilroy, Morgan Hill, the County and community -based organizations—one of the identified objectives was activating San Ysidro Park.
Part of the activation process included reopening the San Ysidro Cultural Center in 2014. Through public investment and implementing innovative violence prevention strategies, the Center has served a s a community hub and enabled neighbors to utilize the park in multiple ways. This has included free, pro -social programs supported by NSU and City of Gilroy as part of SCYTF’s East Gilroy engagement strategies. Some examples include:
• Sponsoring multi-generational and multi -cultural special events such as Party in the Park,
• Collaborating with the Santa Clara Public Health Department to promote healthier lifestyles,
• Hosting community- based academic and enrichment pro-social classes for youth and parenting classes for adults.
Notably, the development of San Ysidro Nueva Vida (SYNV), a 75 -member group of resident leaders who work closely with public officials to revitalize their neighborhood, has had a tremendous impact shifting the park’s culture in a positive direction.
Despite the success of the activation , more is needed to address the needs of the neighborhood, especially its youngest residents. The latest proposed program is the establishment of a FIRST 5 Demonstration Family Resource Center (FRC).
ANALYSIS
Compared to rest of Gilroy, residents living in the East Gilroy neighborhood —where the proposed site for the San Ysidro FRC is located —face significant social inequity challenges. For instance, in comparison to the rest of the city, it has a high er proportion of:
• Single parent households
• Households where a language other than English is spoken at home • Households with foreign-born residents
The Median household income in the San Ysidro Park neighborhood was less than half of that in Gilroy. A ch ild living in East Gilroy is twice as likely to live below the Federal Poverty Level compared to children in the entire city. Overcrowded housing conditions, increased access to tobacco and alcohol retailers, and higher than normal County teen
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birth rates demonstrates a community in need of support. An FRC can address these disparities.
The FRC would be managed by First 5 of Santa Clara County and implemented by the provider, Catholic Charities. Together, these agencies, with support from the City, will institute the FIRST 5 System of Care’s evidenced -based programs, which consist of the following:
• High quality curriculum - Providing workshops and programs such as Positive Parenting Program , 24/7 Dad, InsideOut Dad, SEEDS of Literacy, and Strengthening Families;
• Prevention and Intervention strategies: this comprises of health and dental screenings (prevention), addressing child abuse and neglect, and intervention supports for older youth
• Growing and strengthening resident -driven initiative: collaborating with SYNV to ensure the appropriate strategies are being address and the community is heard.
The County is planning to spend approximately $ 467,000 annually on the FRC, including the $60,000 to lease the space from the City. The City will continue to be present and involved at San Ysidro Park. City staff will share an office with the FRC provider and continue to engage with residents through SYNV, enrichment programs, public health outreach, and special events. The City will also have a designated representative on the San Ysidro Collaborative Council, an interagency body established to discuss and resolve matters of shared interest and concern regarding the use, operation, and maintenance of the FRC.
FISCAL IMPACT
The County would pay the City $60,000 an nually to lease the Center through June 30, 2026. This is to cover janitorial support, wear and tear of the facilities as well as utilities such as water, gas and electricity. The City will not be responsible for telecommunications or internet access.
ALTERNATIVES
The City would not enter into a lease agreement with Santa Clara County for the purpose of opening a family resource center. Staff does not recommend this option.
Attachments:
1. San Ysidro FRC Lease Agreement
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-1- 4849-2150-1429v5
SSCORDELIS\04706083
DUAL TENANT LEASE
(San Ysidro Beacon of Hope Family Resource Center)
THIS LEASE, for reference purposes only, dated December 17, 2021, but made effective as of the latest of the dates on which the Parties execute this LEASE, is entered into by and between THE CITY OF GILROY, a muni cipal corporation (“Landlo rd”), FIRST 5 SANTA CLARA COUNTY, a public entity (“Tenant 1”), an d COUNTY OF SANTA CLARA, a political subdivision of the State of California (“Tenant 2” and together with Tenant 1, the “Tenants” and each a “Tenant”) (the Landlord and Tenants are each a “Party” and are collectively the “Parties”).
1. PREMISES.
Landlord hereby leases to Tenants, and Tenants hereby hire from Landlord, the building commonly known as the San Ysidro Park Cultural Center (“Premises”), located at 7700 Murray Avenue, Gilroy, California 950 20 within Assessor’s Parcel No. 841-03- 081.
2. LEASE TERM.
2.1 Term. The term of this Lease (“Term”) shall commence on February 1, 2022 (the “Commencement Date”) and expire on June 30, 2026.
Notwithstanding the foregoing, any Party shall ha ve the right to term inate the Lease prior to its natural expiration by giving the other Pa rties not less than ninety (90) days’ prior written notice, which notice shal l set forth the effective date of termination. This Lease shall also be subject to termination as el sewhere provided in this Lease. “Lease Termination” shall mean the expiration or sooner termination of this Lease.
2.2 Delay in Commencement Date. If Landlord does not deliver possession of the Premises on the Commencement Date, Landlord shall not be liable for any damage caused thereby, nor shall this Leas e be voidable, provide d, however, that if Landlord has not delivered possession of th e Premises to Tenants by the Commencement Date, Tenants may terminate this Lease by de livering written notice to Landlord prior to delivery of possession by Landlord, in which case no rent or other payments shall be due by Tenants to Landlord. The expiration date of this Lease shall not be extended by such delay.
If Tenants, with Landlord’s consent, take possession of the Premises prior to the Commencement Date, Tenants sha ll do so subject to all of the covenants and conditions hereof.
2.3 Acceptance. Tenants hereby accep t the Premises in its “AS IS” condition without representation or warranty of any kind, express or implied, and subject to all applicable laws. Upon taki ng possession of the Premises, Tenants shall be deemed to have accepted the Premises as being in good an d sanitary order, condition and repair, and to have accepted the Premises in its existi ng condition, subject to all applicable laws, covenants, conditions, restrictions, easements and other matter s of record. Landlord shall have no obligation to construct any improvements on or within the Premises for the benefit of Tenants. Neither Landlor d nor Landlord’s agents, employ ees or other representatives makes any representation or warranty as to the suitability of the Premises for the conduct of Tenants’ business, the condition of the Premis es, or the use or occupancy which may be made thereof, and Tenants have independently investigated and are satisfied that the Premises are and will be suitable for Tenant s’ intended use. Tenants shall be solely responsible for installing or arranging for any security de vices or services desired by Tenants for the Premises and the safety of persons or property upon the Premises, and Landlord shall have no obligation or liability with respect to the provision or lack of provision of such security devices or services.
3. RENT.
3.1 Rent. Landlord agrees to lease the Premises to Tenants in exchange for $60,000 per year (“Rent”), which shall be pa yable in monthly installments of $5,000 each, with each monthly installment due on the 10th day of the month to which the installment applies. All Rent shall be paid in lawful money of the United States to Landlord at the address specified in this Lease for purposes of notice, or to such other persons or at
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such other places as may be designated in writing by Landlord from time to time. All Rent shall be paid without offset or deduction and, except as otherwise expressly provided in this Lease, without prior notice or demand.
4. TAXES.
4.1 Real Property Taxes. Tenants sh all pay, before the same become delinquent, all Real Property Taxes imposed against Landlord or Tenants in connection with this Lease or against the Premises. As used in this Lease, “Real Property Taxes” means any form of assessment, license, f ee, rent tax, levy or tax (other than net income, estate, successor or inheritance taxes), now or hereafter imposed by any authority having the direct or indirect power to tax or by any city (including Landlor d), county, stat e or federal government or any improvement or other district or division thereof, whether or not now customary or within the contemplation of the parties, ordinary or extraordinary, general or special, or resulting from increased rate or va luation, together with any taxes levied or assessed in lieu of, in substitution for, or in addition to existing taxes and assessments against the Premises, including without limitation any possessory interest tax. In connection with California Revenue and Taxation Code section 107.6, Landlord states and Tenants acknowledge that by entering into this Lease, a possessory interest subject to property taxes may be created. Tenants or ot her parties in whom the possesso ry interest has vested may be subject to the payment of property taxes levied on such interest.
4.2 Tax on Leasehold or Personal Property. Tenants shall be responsible for and shall pay before delinquency all municipal, county or state taxes, levies and fees of every kind and nature including, but not limited to, general or special assessments assessed during the Term against any leasehold interest or trade fixtures or personal property of any kind, owned or leased by or placed in, upon or about the Premises by Tenants. Tenants agree to pay before delinquency the amount of all taxes levied upon or measured by the rent payable hereunder, whether as a so-called sales tax, tran saction privilege tax, excise tax, or otherwise. If such ta xes, levies or fees are a ssessed, levied, or imposed upon Landlord or any portion of the Premises, Landlo rd shall give Tenants a statement of the amount applicable to the Premises. If a separa te assessment of the improvements is not available from the appropriate governmental authority, Landlord and Tenants will agree on a reasonable allocation that shall be binding on Tenants.
5. CONDUCT OF BUSINESS BY TENANTS.
5.1 Use of the Premises. Tenants shall use the Premises solely as a community based Family Resource Center (FRC) for sharing information and providing support services to children and their parents/caregivers (“Project”). FRCs foster connections between families, early educators, schools and other community resources to support children’s and families’ health, development and well-being at home, school and in the community by encouraging families in the community to participate in an array of programs and activities provided on site. Community meetings, trainings and workshops related to FRC services may be held in the FRC space or other shared used space. Tenants may collaborate with any other public agency to provide such services, provided that Landlord is notified of such collaboration. Any additional programs and/or services shall be subject to approval or disapproval by the City of Gilroy City Administrator or his/her designee prior to implementation. Except for janitorial service providers, Landlord and Tenants and the FRC Provider (as that term is defined in subparagraph 5.1.1) shall be the sole key holders to the Premises with alarm access.
5.1.1 Neither Tenants nor the Family Resource Center contract provider selected by Tenant 1 (the “ FRC Provider ”) shall use or permit the use of the Premises in any way which would violate any of the terms of th is Lease, or the certificate of occupancy for the Property, or the laws of the State of California, County of Santa Clara, City of Gilroy (and/or any other applicable laws), or any directions, rules or regulations of the Health Officer, Fire Marshall, or Building Inspector. Tenants’ activities shall be subject to the City of Gilroy’s Facility Use Guidelines in the form attached hereto as Exhibit A. No change to the City of Gilroy Facility Use Guidelines shall be bi nding upon Tenants with respect to this Lease Agreement without Tenants’ prior written consent. In no event shall Tenants conduct any activity or service on the Premises that would be determined under applicable laws to be legally obscene, or that would, if exhibited or occurring with respect
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to a commercial business or establishment, be subject to regulation under Chapter 2A of the City Gilroy Code (which regulates adult businesses), as such Chapter may be amended from time to time. Tenants further agree not to use any material to advertise programs or recruit participants for FRC activities which material is itsel f legally obscene or governed by Chapter 2A of the Gilroy City Code. Landlord may request to review any recruiting materials created or distributed by Tenants or the FRC Provider with respect to the Premises, and to meet and confer with Tenants and the FRC Provider in the event Landlord is concerned that such materials are legally obscene or governed by Chapter 2A of the Gilroy City Code. Tenants and the FRC Provider shall make all best efforts to ensure a safe, respectful, and culturally appropriate environment in and around the Premises.
5.1.2 Designated Representative. Landlord, Tenants, and the FRC Provider shall each designate at least one and no more than two representatives familiar with or involved in the programs provided at the Premises, with whom other parties, or their authorized agents, may confer regarding th is Lease and the use of the FRC (each a “Designated Representative”). The San Ysidro Collaborative Council (“Council”) is hereby established as an interagency body established to discuss a nd resolve matters of shared interest and concern regarding the use, operation and maintenance of the FRC. The Council’s membership shall be the Designated Representatives and one community leader from the San Ysidro Nueva Vida Resident Coalition. The Council shall (i) discuss, coordinate, and address all safe ty and security matters associ ated with the Project; (ii) discuss service delivery strategies and coll aboration efforts with other community and governmental organizations; and (iii) prepare and continually revise a comprehensive plan to ensure that the Premises, including connected structures, are clean, free from debris, and accessible to the community and public (“Occupancy Plan”). Tenants and Landlord hereby agree to cooperate in coordinating progr ams and activities conducted on Property by meeting once per month. Meeting dates shall be coordinated in advance to ensure ongoing collaboration and coordination between Tenants, Landlord, and the FRC Provider.
5.1.3 Shared Use of Premises. Landlord shall have the right, with prior notice, to access and use the Premises at any time when it is not being actively used by Tenants or the FRC Provider. Landlord an d Tenants agree and acknowledge that the area immediately outside the Premises is a public park, and Tenants shall have the same (but not more) rights to use such park as the general public.
5.1.4 Office space for Landlord. Landlord and Tenants agree that at least one office space shall be provided for C ity of Gilroy Recreation Staff in a location mutually agreed upon by Landl ord, Tenants, and FRC Provide r. Any alteration of the Premises necessary to accommodate such a request shall be made at Landlord’s sole expense.
5.2 Background Checks. Tenants and the FRC Provider will adopt policies for all adult agents and employees of Tenants and the F RC Provider working for the Project and having access to children to have obtained any required criminal background checks and TB testing.
5.3 Contract Provider for FRC. Landlord acknowledges that Tenant 1 intends to enter into a contract with a service provider to operate the Project and to serve as the FRC Provider as the term FRC Pr ovider is used in subparagraph 5.1.1. The requirements of this Lease shall be included in the contract between Tenant 1 and the FRC Provider. A copy of this Lease shall be given to the FRC Provider. A copy of the contract between Tenant 1 and the FRC Provider shall be given to the Landlord, if requested.
5.4 Compliance with Law. Tenants, at their expense, shall comply promptly with all applicable laws regulating the use by Tena nts of the Premises and the conduct of their activities on the Premises, incl uding without limitation all copyright laws and licensing requirements, and any permits that may be required in connection with outdoor events. Tenants shall not use or affirmatively permit the use of the Premises in any manner that will tend to crea te a nuisance. Tenants shal l place no loads upon the floors, walls or ceilings in excess of the maximum designed load determined by Landlord or which endanger the structure; nor place any harmful liquids in the drainage systems; nor dump or store waste materials or refuse or allow such to remain ou tside the Buildi ng, except in enclosed trash areas provided, if any. Tenant s shall not store or pe rmit to be stored or
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otherwise place any other material of any nature whatsoever outside the Building. Tenants and Tenants’ agents, officers, directors, employees, contractor s, representatives, servants, licensees or invitees (collectively “Tenants’ Ag ents”) shall not use, store or dispose, or affirmatively allow the use, storage or disposal of, any Hazardous Materials on any portion of the Premises, except for standard cleaning and office supply materials used and disposed of in compliance with applicable laws. As used in th is paragraph, Hazardous Materials means any chemical, substance or material whic h has been or is hereafter determined by any federal, state or local govern mental authority to be capable of posing risk of injury to health or safety, including without limitat ion, petroleum, asbest os, polychlorinated biphenyls, radioactive materials and radon gas.
6. MAINTENANCE, REPAIRS, AND ALTERATIONS.
6.1 Landlord’s Responsibility. During th e term of this Lease or any extension thereof Landlord shall be responsible for maintaining and repairing the Premises, including by ensuring that the exte rior of the Premises and exterior fixtures remain in at least as good a condition as when received by Tenants under this Lease. The Landlord shall be responsible for en suring (at a minimum) that a bi-annual maintenance on the HVAC equipment is completed, all required fire alarm and fire sprinkler equipment inspections and maintenance, and annual roof and roof drain maintenance. Tenants shall be responsible for any and all damage or injury caused by the sole acts or omissions of Tenants or Tenants’ Agents or FRC Provider.
6.2 Tenants’ Responsibility. Tenants shall, during the Term, keep the Premises in good order and condition.
6.3 Condition Upon Surrender. On Lease Termination, Tenants shall remove their personal property and trade fixtures from the Premises, surrender the Premises to Landlord in at least as good a condition as when received by Tenants under this Lease, ordinary wear and tear excepted, subject to Paragraph 8.1 below. At Landlord’s option, Landlord shall have the right to require th at Tenants remove a ny and all alterations, additions, signs, artwork or improvements made by Tenants during the Term of this Lease and perform any necessary repairs caused by such removal to the condition that existed prior to the installation of such alteration, addition, sign, artw ork or improvement and in accordance with all applicable laws in effect as of the date of such repair.
6.4 Improvements by Tenants. Tenants shall not, without prior written consent of Landlord (which consent shall not be unreasonably denied), make or install any alterations, improvements, or additions (collectively, “Alterations”) to the Premises. Before commencing any Alterations, Tenants shall submit plans and specifications to Landlord for Landlord’s approval. At least ten (10) days prior to undertaking construction or installation of any Alterations, Tenants shall give written notice to Landlord setting forth the date work is to commence. Landlord shall have the ri ght at all reasonable t imes to post and keep posted on the Premises such notices of non-responsibility as Landlord may deem necessary for the protection of Landlord and the Premises from mechanic’s and materialman’s liens.
All Alterations shall be installed at Tenants’ sole cost and expense, in compliance with all applicable laws, permit requirements and any covenants, conditions or restrictions of record, by a licensed contractor, shall be done in a good and workmanlike manner conforming in quality and design with the Premises existing as of the date the Premises were delivered to Tenants under this Lease, and shall not diminish the value of the Premises. All Alterations made by Tenants shall be and become the pr operty of Landlord upon installation and shall not be deemed Tenants’ personal property; pr ovided, however, that Landlord may, at its option, require that Tenants, at Tenants’ expense, remove any or all Alterations installed by Tenants and repair the Premises to their condition that existed prior to the installation of the Alternations and in accordance with all applicable laws in effect as of the date of such repair.
This paragraph shall survive the Lease Term ination. Notwithstanding any other provision of this Lease, Tenants shall be solely res ponsible for the maintena nce and repair of any Alterations made by Tenants to the Premises.
7. INSURANCE AND INDEMNITY.
7.1 Tenants’ Insurance. Tenants shall at all times during the Term, at Tenants’ sole cost and expense, maintain in effect the following insurance:
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(i) Worker’s compensation insurance in not less than the minimum amounts required by law;
(ii) Commercial general liability insurance (at least as broad as the most commonly available ISO Commercial General Li ability policy form CG 00 01), or such successor comparable form of coverage in the broadest form then available, for the mutual benefit of Landlord and Tenants, against any and all claims and liabilities arising out of the ownership, use, occupancy or ma intenance of the Premises, or Tenants’ activities thereon.
The minimum limit of coverage of such policy shall be in the amount of not less than One Million Dollars ($1,000,000) per occurrence a nd annual aggregate, shall include an extended liability endorsement providing contractual liability coverage (which shall include without limitation coverage for Tenants’ i ndemnification, defens e and hold harmless obligations in this Lease), and shall contain a severability of interest clause or a cross liability endorsement. Such insurance shal l further insure Landlord and Tenants against liability for property damage of at least One Million Dollars ($1,000,000); and (iii) Business automobile liability in surance having a combined single limit of not less than One Million Dollars ($1,000,000) per occurrence and insuring Tenants against liability for claims for bodily injur y, death, or property damage, arising out of ownership, maintenance, or use of any owned, hired or non-owned automobiles.
7.2 General Requirements. No pol icy maintained by Tenants under Paragraph 7.1 shall contain a deductible greater than Two Thousand Five Hundred Dollars ($2,500). No policy shall be cance lable or subject to reduction of coverage without thirty (30) days prior written notice to Landlord (except for nonpayment which shall require not less than ten (10) days notice). Such policies of insurance shall be issued as primary policies and not contributing with or in excess of coverage that Landlord may carry, by an insurance company authorized to do business in California for the issuance of such type of insurance coverage and having an AM Best financial strength rating or A+ or better. All deductibles shall be deemed self-insured with full waiver of subrogation. All Tenants policies shall contain an endorsement that the insurer waives its right to subrogation. The types of insurance and minimum limits specified above are the minimum required by Landlord, and Landlord may from time to time require changes and/or additions thereto to meet changed circumstances or as otherwise reasonabl y required by Landlord, including without limitation changes in the purchasing power of the dollar and changes consistent with the standards required by other landlords in Santa Clara County, California. Tenants’ obligations under this Lease shall not be limited to the amount of any insurance required of or carried by Tenants under Paragraph 7.1 and Tenants are responsible for insuring that the amount of insurance carried by Tenants are sufficient for Tenants’ purposes. All insurance required to be carried by Tenants hereunder sh all be in companies, on forms and with loss payable clauses satisfactory to Landlord and copi es of policies of such insurance, certified by the insurer to be a true and correct copy of the insurance policies, shall be delivered to Landlord by Tenants prior to the Commencemen t Date. A new certified policy shall be delivered to Landlord at least thirty (30) da ys before expiration of the old policy. The liability policies to be carried by Tenants under this Lease shall name Landlord and its agents, employees and designated lenders as additional insureds. All policies shall provide coverage on an occurrence basis and not on a claims made basis.
7.3 Waiver of Liability. Landlord and Tenants each hereby waive any and all rights of recovery against the other or against the employees , representatives and agents of such other party for loss of or damage to such waiving party or its property or the property of others under its control, arising from any cause to the extent insured against under any insurance policy carried by such waiving party and to the extent such waiver is permitted under such insurance policy and does not prejudice c overage under such policy.
Tenants shall obtain and furnish evidence to Landlord of the waiver by Tenants’ insurance carriers of any right of subrogation against Landlord.
7.4 Parties to Hold Each Other Harmless. The Parties (each an “Indemnitor”) hereby agree to defend, indemn ify and hold harmless the other and their respective employees, representatives and agents (each an “Indemnitee”) from and against any and all claims, damages, lo sses, liabilities, j udgments or expenses (including without limitation attorneys’ fees) due to any cause, including without limitation those relating to bodily injury, property damage or copyright infringement, wh ich are caused by the sole
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negligence or willful miscondu ct of the Indemnitor or its respective employees, representatives or agents in connection with this Lease, except to the extent caused by the willful misconduct or negligence of an Indemnitee. This paragraph and each Indemnitor’s obligation hereunder shall survive Lease Termination.
7.5 Landlord’s Disclaimer. Landlord shall not be liable for injury or damage which may be sustained by the pers on, goods, wares, merchandise or property of Tenants, their employees, invitees or customers or any other person in or about the Premises caused by or resulting from fire, steam, electricity, gas, water or rain which may leak or flow from or into any part of the Premises, or from the breakage, le akage, obstruction or other defects of the pipes, sprinklers, wire s, appliances, plumbing, air conditioning or lighting fixtures of the same, or from any other cause, whether such damage or injury results from conditions arising upon the Premises or from other sources.
7.6 Notwithstanding anything to the c ontrary in Paragraph 7, in the event Tenants self-insure for any of the c overage required above, that Tenant’s self- insurance may satisfy the requirements of Paragraph 7. Tenants must provide Landlord with a written Certificate of Insurance documen ting coverage and deductibles along with appropriate written endorsemen ts addressed to Landlord sett ing forth the type of self- insurance maintained by that Tenant. Landlord shall have the sole discretion to determine if the self-insurance coverage satisfies the requirements of Paragraph 7.
8. REPAIRS AND RESTORATION.
8.1 Damage. Landlord shall have no ob ligation to rebuild, restore or repair all or any portion of the Premises in the event of any damage or destruction thereto from any cause. If at any time during the Term the Premises are damaged to the extent such damage materially interferes with Tenants’ continued use of the Premises, and Landlord elects not to rebuild, restore or repair, Tenants’ sole right shall be to terminate this Lease by giving written notice of termination. Notwithstanding Tenants’ election to terminate the Lease pursuant to this paragr aph, if the damage was caused by Tenants and/or Tenants’ Agents, Tenants shall reimburse Landlord for all costs incurred by Landlord in repairing or rebuilding the Premises to the extent such costs exceed any Net Insurance Proceeds received by Landlord from any insurance policy. As used in this Lease, “Net Insurance Proceeds” shall mean the proceeds of insurance received from the insurer, less costs of recovery. This paragraph and Tenants’ obligations hereunder shall survive Lease Termination.
8.2 Notice, Rent Abatement, Refixturing. Tenants shall notify Landlord in writing immediately upon the occurrence of any damage or destruction to all or any portion of the Premises. There shall be no abatement of Rent payable hereunder and Tenants shall have no claim against Landlord for any damage suffered by Tenants by reason of any such damage, destruction, repair or restoration. In no event shall any damage, destruction, restoration or repair of any por tion of the Premises result in an extension of the expiration date of the Lease.
9. ASSIGNMENT AND SUBLETTING.
9.1 Landlord’s Consent Required. Tenants shall not, either voluntarily, involuntarily, or by operation of la w (i) assign, sell or otherwise transfer all or any part of the Tenants’ interest in this Lease or in the Premises, or (ii) permit any part of the Premises to be sublet, occupied or used by anyone othe r than Tenants or (iii) permit any person to succeed to any interest in this Lease or the Premises, (all of the foregoing being collectively referred to as a “Transfer”). In no event shall Landlord be required to consent to any Transfer. Tenants recognize and acknowledge th at Landlord has agreed to enter into this Lease because of Tenants’ operation as pub lic entities actively dedicated to providing a range of community-based serv ices and programs to improv e the educational and health outcomes of community members to be conduc ted at the Premises will bestow upon the community of the City of Gilroy. Tenants acknowledge and agree that the prohibition against Transfer is th erefore fair and reasonable. In no event shall Tenants hypothecate, mortgage, pledge or encumber Tenants’ interest in this Lease or in the Premises or otherwise use the Lease as a security device in any manner, nor shall Tenant s transfer any right appurtenant to this Lease or the Premises separate from a permitted Transfer. Tenants expressly agree that the provi sions of this Article are no t unreasonable standards or
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conditions for purposes of Section 1951.4(b)(2) of the California Civil Code, as amended from time to time, under the federal Bankruptcy Code, or for any other purpose.
10. EMINENT DOMAIN.
10.1 Automatic Termination. If the entire Premises, or so much of either as to make the Premises not reasonably ade quate for the conduct of Tenants’ business in Tenants’ reasonable judgment shall be taken under the power of eminent domain, this Lease shall automatically terminate as of the da te on which the conde mning author ity takes possession.
10.2 Rent Abatement. If a portion of the Premises is taken by power of eminent domain which does not result in a terminat ion of this Lease, then this Lease shall continue in full force and effect as to the part of the Premises not so taken. There shall be no abatement of Rent payable hereunder and Tenants shall have no claim against Landlord for any damage suffered by Tenants by reason of any taking of the Premises under the power of eminent domain.
10.3 Condemnation Award. Any award for any taking of all or any part of the Premises under the power of eminent do main shall be the property of Landlord, whether such award shall be made as compensation for diminution in value of the leasehold or for taking of the fee. In no event shall Landlord be obligated to make any repairs or perform any restoration or othe r work required as a result of a taking. Nothing contained herein, however, shall be deemed to preclude Tenants from obta ining, or to give Landlord any interest in, any award to Te nants for loss of or damage to Tenants’ trade fixtures and removal of personal property and Tenants’ moving expenses.
10.4 Sale Under Threat of Condemnation. A sale by Landlord to any authority having the power of eminent domain, either under threat of condemnation or while condemnation proceedings are pending, shall be deemed a taking under the power of eminent domain for all purposes under this Arti cle. Each Party to this Agreement waives the provisions of California Code of Civil Procedure Section 1265.130 allowing a Party to petition the Superior Court to terminate this Lease in the event of a taking.
11. UTILITY SERVICES. Landlord shall arrange and pay for janitorial services and janitorial supplies to the Premises and shall arrange and pay for water, sewer, gas, and electric, services to the Premises. Tenant 1 or the FRC Provider shall arrange for telephone, cable, and internet services that Tenant 1 or the FRC Provider desires for the Premises.
Except in the event that such damage, failure, or interruption is caused solely by the negligence or willful misconduct of Landlord or Landlord’s agents, Landlord shall not be liable in damages or otherwise for any failur e or interruption of cable, internet, and telephone services being furnished to the Premises, including without limitation any security or alarm system or service, and no such failure or interruption shall affect Tenants’ obligations under this Lease. Landlord shall be entitled to cooperate voluntarily, and Tenants agree to cooperate, with the efforts of governmental authorities or utility suppliers in reducing energy or other resource consumption.
12. DEFAULTS, REMEDIES.
12.1 Defaults. The occurrence of any one or more of the following events shall constitute a default hereunder by Tenants:
12.1.1 The abandonment of the Premises by Tenants. Abandonment is defined to include, but is not limited to, any absence by Te nants from the Premises for fifteen (15) consecutive days or longer.
12.1.2 The failure by Tenants to make any payment required by this Lease as and when due.
12.1.3 The failure by Tenants to timely observe or perform any of the express or implied covenants or provisions of this Lease to be observed or performed by Tenants, which this Lease characterizes as a non-curable default.
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12.1.4 The failure by Tenants to timely observe or perform any of the express or implied covenants or provisions of this Lease to be observed or performed by Tenants, other than as specified in Paragraphs 12.1.1 or 12.1.2 above, and other than those that this Lease characterizes as a non-curable default, provided, however, Tenants shall not be deemed to be in default in the performance of any such express or implied covenants or provisions of this Lease unless and until they have failed to perform such obligation within thirty (30) days after written notice by Landlord to Tenants specifying wherein Tenants have failed to perform such obligation; provided, further, that if the nature of Tenants’ obligation is such that more than thirty (30) days are required for their performance then Tenants shall not be deemed to be in default if they shall commence such performance within such thirty- day period and thereafter diligently prosecute the same to completion. Notwithstanding any other provision of this Leas e, in no event shall Tenants be liable to Landlord for consequential damages, or loss of or inte rference with Landlord’ s business, including without limitation lost profits.
12.1.5 (a) The making by Tenants of any general assignment for the benefit of creditors; (b) th e appointment of a trustee or receiver to take possession of substantially all of Tenants’ asse ts located at the Premises or of Tenants’ interest in this Lease, where possession is not restored to Tenants within thirty (30) days, or (c) the attachment, execution or other judicial seizure of substantially all of Tenants’ assets located at the Premises or of Tenants’ interest in this Lease, where seizure is not discharged within thirty (30) days.
12.2 Remedies. Upon a default, Landlord shall have the following remedies, in addition to all other rights and remedies provided by law or otherwise provided in this Lease, to which Landlord may resort cumulatively or in the alternative:
12.2.1 Landlord may continue this Leas e in full force and effect, and this Lease shall continue in full force and effect as long as Landlord does not terminate this Lease, and Landlord shall have the right to collect Rent when due. No act by Landlord other than giving written notice to Tenants shall ter minate this Lease. Acts of maintenance, efforts to relet the Premises or the appointment of a receive r on Landlord’s initiative to protect Landlord’s interest under this Lease sh all not constitute a te rmination of Tenants’ right to possession.
12.2.2 Landlord may terminate this L ease and Tenants’ right to possession of the Premises at any time (i) if such default is in the payment of Rent or other default referred to in Paragraph 12.1.2 and it is not cured within three (3) days after written notice from Landlord, or, (ii) with respect to the defaults referred to in Paragraphs 12.1.1 or
12.1.4, if such default is not cured within thirty (30) days after written notice from Landlord; provided, however, that if the natu re of Tenants’ default is such that more than thirty (30) days are reasonably required fo r its cure, if Tenants do not commence to cure the default within the thirty (30) day period or do not diligently and in good faith prosecute the cure to completion within a reasonable time thereafter, or (iii) with respect to a default described in Paragraph 12.1.3, upon delivery to Tenants of not less than ten (10) days prior written notice of termination, or (iv) with respect to a default specified in Paragraph 12.1.5, if such default is not cured within the respective time specified in that paragraph. The Parties agree that any notice given by Landlord to Tenants pursuant to this Paragraph 12.2.2 shall be sufficient notice for purposes of California Code of Civil Procedure Section 1161 and Landlord shall not be required to give any additional notice in order to be entitled to commence an unlawful detainer proceeding. On termination, Landlord has the right to remove all of Tenants’ personal property, signs and trade fixtures and store same at Tenants’ cost and to recover from Tenants as damages:
12.2.2.1 The worth at the time of award of unpaid Rent and other sums due and payable which had been earned at the time of termination; plus
12.2.2.2 The worth at the time of aw ard of the amount by which the unpaid Rent and other sums due and paya ble which would have been payable after termination until the time of award exceeds the amount of such Rent loss that Tenants prove could have been reasonably avoided; plus
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12.2.2.3 The worth at the time of aw ard of the amount by which the unpaid Rent and other sums due and payable for the balance of the Term after the time of award exceeds the amount of such rental loss that Tenants prove could be reasonably avoided; plus
12.2.2.4 Any other amount necessary to compensate Landlord for all the detriment proximately caused by Tenant s’ failure to perform Tenants’ obligations under this Lease, or which, in the ordinary c ourse of things, would be likely to result therefrom; plus
12.2.2.5 Such other amounts in addition to or in lieu of the foregoing as may be permitted by the laws of the State of California.
The “worth at the time of award” of the amounts referred to in Paragraphs
12.2.2.1 and 12.2.2.2 is computed by allowing interest at the Stipulated Rate (defined in Paragraph 6). The “worth at the time of awar d” of the amount referred to in Paragraph
12.2.2.3 is computed by discounting such amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of award plus one percent (1%).
12.2.3 No delay or omission of Landlor d to exercise any right or remedy shall be construed as a waiver of any such right or remedy or of any default by Tenants hereunder.
12.3 Default by Landlord. Landlord shall not be deemed to be in default in the performance of any obligation require d to be performed by it hereunder unless and until it has failed to perform such obligation with in thirty (30) days after written notice by Tenants to Landlord specifying wherein Landlord has failed to perform such obligation; provided, however, that if the nature of Landlord’s obligation is such that more than thirty (30) days are required for its performance then Landlord shall not be deemed to be in default if it shall commence such performance within such thirty-day period and thereafter diligently prosecute the same to completion. Notwithstanding any other provision of this Lease, in no event shall Landlord be liable to Tenants for consequential damages, or loss of or interference with Tenants’ business, including without limitation lost profits.
12.4 Expenses of Prevailing Party. If either party incurs any expense, including reasonable attorneys’ fees, in connection with any action or proceeding instituted by either party arising out of this Lease, the party pr evailing in such action or proceeding shall be entitled to recover its reasonable expenses including attorneys’ fees from the other party in a final, non-appealable judgment.
13. SIGNS. Tenants shall not, without Landlord’s prior written consent (which consent shall not be unreasonably denied), install or affix to any portion of the Premises any exterior or interior window, door or other signs, lettering, placards or the like (collectively “Signs”). If Landlord consents to the erection of any signs, su ch signs shall comply with any reasonable sign criteria imposed by Landlord and all applicable laws.
14. RIGHT OF ENTRY. After reasonable written notice to Tenants and FRC Provider, Landlord and its agents shall be permitted to access the Premises during the FRC Provider’s daytime business hours, or at such other hours mutually agreed to by Landlord, Tenants, and the FRC Provider, for the purposes of ascertaining if they are in good repair, making repairs or installations which Landlor d may be permitted to make hereunder, performing Landlord’s obligations under this Lease, protecting the Premises, posting notices of nonresponsibility, and exhibiting the same to prospective purchasers, lenders, or tenants.
15. TRANSFER OF LANDLORD’S INTEREST. U pon any transfer or transfers of Landlord’s interest in the Premises, the transferor shall be automatically relieved of any and all obligations and liabilities on the part of Landlord accruing from and after the date of such transfer, provided that the transferee is lia ble for any and all oblig ations and liabilities on the part of Landlord accruing fro m and after the date of such transfer. Tenants shall not unreasonably refuse to attorn to any transferee of Landlord’s interest in the Premises.
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16. INTEREST. Any amount due from Tenant s to Landlord hereunder which is not paid when due shall bear interest from the due date until paid an annual rate of interest (the “Stipulated Rate”) equal to the greater of (i) ten percent (10%); or (ii) five percent (5%) plus the rate established by the Federal Reserve Ba nk of San Francisco, as of the twenty-fifth (25th) day of the month immediately preceding the due date, on advances to member banks under Sections 13 and 13(a) of the Federal Reserve Act, as now in effect or hereafter from time to time amended. Payment of such inte rest shall not excuse or cure any default by Tenants under this Lease.
17. PROHIBITED TRANSACTION. Tenants re present and warrant that neither Tenants nor any of their affiliates have engaged in any dealings or transactions, directly or indirectly, (i) in contraven tion of any U.S., internationa l or other money laundering regulations or conventions now or hereafter in effect, or any enabling legislation or executive order relating thereto, or (ii) in contravention of Executive Order No. 13244 issued by the President of the United Stat es (Executive Order Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism) or any regulations promulgated thereunder, as may be amended or supplemented from time to time (“Anti-Terrorism Order”), or (iii) on behalf of te rrorists or terrorist organizations, including those persons or enti ties that are included on any relevant lists maintained by the United Nations, North A tlantic Treaty Organiza tion, Organization of Economic Cooperation and Development, Financ ial Action Task Force, U.S. Office of Foreign Assets Control, U.S. Securities & Exchange Commission, U.S. Federal Bureau of Investigation, U.S. Central Intelligence Agency , U.S. Internal Revenue Service, or any country or organization, all as may be amended from time to time. Tenants represent and warrant that neither Tenants nor any of their affiliates are a person described in section 1 of the Anti-Terrorism Order and neither Tenants nor any of their affiliates have engaged in any dealings or transactions, or otherwise been associated with any such person. If at any time any of the representations and warranties in th is paragraph becomes false then it shall be considered a non-curable default by Tenants under this Lease.
18. MISCELLANEOUS.
18.1 Time of Essence. Time is of the essence with respect to the performance of every provision of this Lease.
18.2 Captions. The article and paragraph captions contained in this Lease are for convenience only and shall not be considered in the construction or interpretation of any provision hereof.
18.3 Entire Agreement and Amendments. This Lease contains all of the agreements of the Parties hereto with respect to any matter covered or mentioned in this Lease, and no other agreement or understanding pertaining to any such matter shall be effective for any purpose. No provision of this Lease may be amended or added to except by an agreement in writing signed by the Partie s hereto or their respective successors in interest.
18.4 Notice. Any notice required or permitted to be given hereunder shall be in writing, shall be sent by email to the em ail addresses identified below, and may also be served personally (which includes wit hout limitation delivery by overnight courier services) or by mail. All notices shall be sent to the following addresses:
Landlord: City of Gilroy
7351 Rosanna Street
Gilroy, CA 95020-6141
Attn: Jimmy Forbis
Tenants: FIRST 5 Santa Clara County
4000 Moorpark Ave #200
San José, CA 95117
[email protected]
County of Santa Clara
70 West Hedding St.
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San José, CA 95110
[email protected]
FRC Provider: Catholic Chari ties of Santa Clara County 2625 Zanker Road
San José, CA 95134
[email protected]
Any notice given by email shall be deemed to have been received and effective at the time of transmission. Any notices delivered by othe r means shall be deem ed effectively given three (3) days after being deposited in the United States mail, registered or certified, postage prepaid and addressed as specifi ed above. Any Party may by written notice to the others specify a different a ddress for notice purposes. Notwith standing the foregoing, any legal notices required to be sent by one Party to another (including wit hout limitation, a notice pursuant to California Code of Civil Procedur e Section 1161) shall be delivered in the manner required or allowed by law.
18.5 Holdover. This Lease shall termin ate without further notice at the expiration of the Term. Any holding over after Lease Termination with the consent of Landlord shall be construed to be a tenanc y from month to month, but otherwise on the same terms and conditions set forth in this Lease.
18.6 Broker Fees. Tenants warrant and re present that they have had no dealings with any real estate broker in conn ection with the negotiatio n of this Lease.
Tenants agree to defend, indemnify and hold Landlord and Landlord’s employees, representatives and agents harmless from and against any and all clai ms, losses, damages, liabilities, judgments or expenses (including without limitation attorney’s fees) arising out of or in connection with claims made by any broker or individual for commissions or fees resulting from Tenants’ execution of this L ease, which obligations shall survive Lease Termination. For the avoidance of doubt, Tenants disclose that they have conferred with a real estate agent employed by the County of Santa Clara in connection with the negotiation of this Lease. The Parties agree that such conferral does not constitute a “dealing” for purposes of this paragraph.
18.7 Acceptance. Delivery of this Lease, duly executed by Tenants, constitutes an offer to lease the Premises, and under no circumstances shall such delivery be deemed to create an option or reservation to lease the Premises for the benefit of Tenants.
This Lease shall only become effective and binding upon full execution hereof by Landlord and delivery of a signed copy to Tenants.
18.8 Waiver. The waiver by a Party of any breach of any term, condition or covenant of this Lease shall not be deem ed to be a waiver of such provision or any subsequent breach of the same or any other term, condition or covenant of this Lease. The subsequent acceptance of Rent hereunder by Landl ord shall not be deemed to be a waiver of any preceding breach at the time of acceptance of such payment. No covenant, term, or condition of this Lease shall be deemed to have been waived by a Party unless such waiver is in writing and signed by that Party.
18.9 Separability. If one or more of the provisions c ontained herein, except for the payment of Rent, is for any reason held to be invalid, illegal, or unenforceable in any respect, such invalidit y, illegality or unenforceabilit y shall not affect any other provision of this Lease, but this Lease shall be construed as if such invalid, illegal or unenforceable provision had not been contained herein.
18.10 Liens. Tenants shall pay for all labor and services performed for, and all materials used by or furnished to Tenants or Tenants’ Agents and keep the Premises free from any liens aris ing out of work performed, mate rials furnished, or obligations incurred by Tenants or Tenants’ Agents with respect to the Premises. Tenants shall indemnify, hold harmless and defend Landlord and Landlord’s employees, representatives and agents from and against any liens, demand s, claims, judgments, losses, liabilities, damages, expenses or encumbra nces (including all reasonable attorney’s fees) arising out of any work performed by or se rvices performed for or materi als used by or furnished to
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Tenants or Tenants’ Agents with respect to the Premises. Tenants shall do all things necessary to prevent the filing of any mechanic’s or other liens against the Premises or any part thereof by reason of work, labor, services or materials supplied to Tenants, or anyone holding the Premises, or any part thereof, thr ough or under Tenants. If any such lien shall at any time be filed against the Premises, Te nants shall either cause the same to be discharged of record within ten (10) days after the date of filing of the same, or, if Tenants in Tenants’ discretion and in good faith determine that such lien should be contested, Tenants shall furnish such security as may be necessary or required to (a) prevent any foreclosure proceedings against the Premises du ring the pendency of such contest, and (b) cause a mutually satisfactory title company to remove such lien as a matter affecting title to the Premises. If Tenants shall fail to discharge such lien within such period or fail to furnish such security, then, in addition to any othe r right or remedy of Landlord resulting from Tenants’ said default, Landlord may, but shall not be obligated to, discharge the same either by paying the amount claimed to be due or by procuring the discharge of such lien by giving security or in such other manner as is, or may be, prescribed by law. Tenants shall repay to Landlord on demand all sums disbursed or deposited by Landlord pursuant to the foregoing provisions of this paragraph including Landlord’s costs, expenses and reasonable attorneys’ fees incurred by Landlord in connection therewit h, with interest there on at the Stipulated Rate. Nothing contained herein shall imply any consent or agreement on the part of Landlord to subject Landlord’s estate to liabil ity under any mechanics’ or the lien law.
Tenants shall give Landlord adequate opportunity and Landlord shall have the right to post such notices of non-responsibil ity as are provided for in the mechanics’ lien laws of California. Tenants’ obligations pursuant to this paragraph shall survive Lease Termination.
18.11 Encumbrances. This Lease is subject and subordinate to ground and underlying leases, mortgages, deeds of trust and other m onetary liens (collectively “Encumbrances”) which may now affect the Pr emises, to any covenants, conditions or restrictions of record, and to all renewals, modifications, consolidations, replacements and extensions thereof; provided, however, if the holder or holders of any such Encumbrance (“Holder”) shall require that this Lease be prior and superior thereto, within seven (7) days after written request of Landlord to Tenants, Tenants shall execute, have acknowledged and deliver any and all documents or instruments, in the form presented to Tenants, which Landlord or Holder deems necessary or desira ble for such purposes. Landlord shall have the right to cause this Lease to be and beco me and remain subject and subordinate to any and all Encumbrances which are now or may hereafter be executed covering the Premises or any renewals, modifications, consolidations, replacements or extensions thereof, for the full amount of all advances made or to be ma de thereunder and without regard to the time or character of such advances, together with interest thereon and subject to all the terms and provisions thereof. Within ten (10) days af ter Landlord’s written re quest, Tenants shall execute any and all documents required by Landlord or the Holder to make this Lease subordinate to any lien of the En cumbrance. If Tenants fail to do so, then in addition to such failure constituting a default by Tenants, it shall be deemed that this Lease is so subordinated to such Encumbrance. Tenants hereby attorn and agree to attorn to any entity purchasing or otherwise acquiring the Premises at any sale or other proceeding or pursuant to the exercise of any other rights, powers or remedies under such Encumbrance so long as the Lease remains in effect.
18.12 Landlord’s Right to Perform Tenants’ Covenants. If Tenants fail to make any payment or perform any other act on its part to be made or performed under this Lease (after any applicable notice a nd cure period has elapsed), Landlord may, but shall not be obligated to and without waiving or releasing Tenants from any obligation of Tenants under this Lease, make such payment or perform such other act to the extent Landlord may deem desirable, and in connection therewith, pay expenses and employ counsel. All sums so paid by Landlord and all penalties, interest and co sts in connection therew ith shall be due and payable by Tenants immediately on demand, togeth er with interest at the Stipulated Rate from date of payment by Landlord to the date of payment by Tenants to Landlord, plus collection costs and attorneys’ fees.
18.13 Tenants’ Remedy. Neither Landl ord’s employees, agents, nor representatives, nor any other person or ent ity other than Landlord, nor any of their respective assets, shall be liable for Landlord’s breach of this Lease.
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18.14 Exhibits. All exhibits, amendmen ts, riders and addenda attached hereto are hereby incorporated herein and made a part hereof.
18.15 Conditions. All agreements of Tenants contained in this Lease, whether expressed as conditions or covenants, shall be construed to be both conditions and covenants, conferring upon Landlord, in the event of a breach thereof, the right to terminate this Lease.
18.16 No Partnership or Joint Venture. Nothing in this Lease shall be construed as creating a partne rship or joint venture between Landlord, Tenants, the FRC Provider, or any other party, or cause Landlord to be responsible for the debts or obligations of Tenants or any other party.
18.17 Construction. This Lease shall not be construed either for or against Tenants or Landlord, but shall be construed in accordance with the general tenor of the language.
18.18 Joint and Several Liability. The obligations of each Tenant under this Lease shall be joint and several (irresp ective of whether any particular provisions reference a single “Tenant”, “Tenant 1” and/or “Tenant 2”). And, for the avoidance of doubt, any references to the obligations of mult iple “Tenants” shall also be the obligation of each individual “Tenant” (it being the intent of the Parties that one Tenant is not relived of its obligations hereunder if another Tenant does not perform).
18.19 Binding Effect. Subject to the pr ovisions of Paragraphs 9, 10, and 15, all of the provisions hereof shall bind and in ure to the benefit of the Parties hereto and their respective heirs, legal representatives, successors and permitted assigns.
18.20 Governing Law, Venue. The Lease shall be construed and enforced in accordance with the laws of the State of California. Proper venue for legal action regarding the Lease shall be in the County of Santa Clara.
18.21 Compliance with All Laws, Incl uding Nondiscrimination, Equal Opportunity, and Wage Theft Prevention.
18.21.1 Compliance with All Laws: Landlord shall comply with all applicable Federal, State, and local laws, regulations, rules, and policies (collectively, “Laws”), including but not limited to the non-discrimination, equal opportunity, and wage and hour Laws referenced in Paragraphs 18.21.2 and 18.21.3.
18.21.2 Compliance with Non-Discrimin ation and Equal Opportunity Laws: Landlord shall comply w ith all applicable Laws c oncerning nondiscrimination and equal opportunity in employment and contrac ting, including but not limited to the following: Santa Clara County’ s policies for contractors on nondiscrimination and equal opportunity; Title VII of the Civil Rights Act of 1964 as amended; Americans with Disabilities Act of 1990; the Age Discrimination in Employment Act of 1967; the Rehabilitation Act of 1973 (Sections 503 and 504); the Equal Pay Act of 1963; California Fair Employment and Housing Act (Gov. C ode § 12900 et seq.); California Labor Code sections 1101, 1102, and 1197.5; and the Genetic Information Nondiscrimination Act of 2008. In addition to the foregoing, Landlord shall not discriminate against any subcontractor, employee, or applicant for employment because of age, race, color, national origin, ancestry, religion, sex, gender identity, gender expression, sexual orientation, mental disability, physical disability, medical condition, political belief, organizational affiliation, or marital status in the recruitment, selec tion for training (includi ng but not limited to apprenticeship), hiring, employmen t, assignment, promotion, layo ff, rates of pay or other forms of compensation. And, Landlord shall no t discriminate in the pr ovision of services provided under this contract because of age, ra ce, color, national origin, ancestry, religion, sex, gender identity, gender expression, sexual orientation, mental disability, physical disability, medical condition, political beliefs, organizational affiliations, or marital status.
18.21.3 Compliance with Wage and Hour Laws: Landlord shall comply with all applicable federal, state, and loca l wage and hour laws, in cluding, but not limited to, the Federal Fair Labor Standards Act, the California Labor Code, and any Minimum
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Wage Ordinance enacted by the County. If La ndlord is found by a court or by final administrative action of an investigatory govern ment agency to have violated applicable wage and hours laws, in the five years prior to or during the term of the Lease, which have not been satisfied per County guidelines, such violation will be considered a material breach of this Lease and, notwithstanding anything to th e contrary in this Lease, may result in the election by County to terminate this Lease.
18.22 Third Party Beneficiaries. The Lease does not, and is not intended to, confer any rights or remedi es upon any person or entity other than the Parties and the FRC Provider.
18.23 Certified Access Specialist Inspec tion. For purposes of California Civil Code Section 1938, Landlord hereby disclo ses to Tenants that, as of the Effective Date, to Landlord’s actual knowledge, the Premises have not undergone inspection by a Certified Access Specialist (“CASp”). Pursuant to California Civil Code Section 1938(e), Landlord hereby further discloses to Tenants the following: “A Certified Access Specialist (CASp) can inspect the subject premises and determine whether the subject premises comply with all of the applicable construc tion-related accessibility standards under state law. Although state law does not require a CASp inspection of the subject premises, the commercial property owner or lessor may not prohibit the lessee or tenant from obtaining a CASp inspection of the subject premises for the occupancy or potential occupancy of the lessee or tenant, if requested by the lessee or tenant. The parties shall mutually agree on the arrangements for the time and manner of the CASp inspection, the payment of the fee for the CASp inspection, and the cost of making any repairs necessary to correct violations of construction-related accessibility standards within the premises.” Notwithstanding the foregoing and/or anything to th e contrary contained in this Lease, Landlord and Tenants hereby agree and acknowledge that, in the even t Tenant requests a CASp inspection, then, with respect to such CASp inspection requested by Tenants:
(a) Tenants shall provide Landlord with no less than twenty (20) business days’ prior written notice and, upon receip t of such notice, Landlord sh all have the right to have one (1) or more representatives present during such inspection. (b) Tenants hereby agree and acknowle dges that they shall (x) provide Landlord with a copy of any and all findings, reports and/or other materials (collectively, the “CASp Report”) provided by the CASp im mediately following Tenants’ receipt thereof, (y) at all times maintain (and cause to be maintained) the CASp Report and its findings (and any and all other materials related thereto) confidential and (z) pay for the CASp inspection and CASp Report at Tenants’ sole cost and expe nse. If Tenants receive a disability access inspection certificate, as described in subdivision (e) of California Civil Code Section 55.53, in connection with or followi ng any CASp inspection underta ken on behalf, or for the benefit, of Tenants, then Tenants shall cause such certificate to be provided immediately to Landlord.
(c) If the CASp Report identifies any viol ation(s) of applicable construction- related accessibility st andards (“CASp Violation(s)”), Te nants shall immediately provide written notice to Landlord of any and all such CASp Violation(s). In such event, Tenants shall, at Tenants’ sole cost and expense, pe rform, or cause to be performed, any repairs, modifications and/or other work necessary to correct such CASp Vi olation(s) (any such repairs, modifications and/or other work being collectively referred to herein as the “CASp Work”). Tenants shall commence (or cause the commencement of) such CASp Work no later than fifteen (15) busin ess days after Landlord’s rece ipt of the CASp Report in accordance with the terms and conditions of this Lease. Tenants shall diligently prosecute (or cause to be diligently prosecuted) to completion all such CASp Work in a lien free, good and workmanlike manner, and, upon completion, obtain an updated CASp Report showing that the Premises then comply with all applicable construction-related accessibility standards. Any and all cost and expense associated with the CASp Work and/or the updated CASp Report (which Tenants shall provide to Landlord immediately upon Tenants’ receipt thereof) shall be at Tenants’ sole cost and expense.
(d) Without limiting the generality of the foregoing, Tenants hereby agree and acknowledge that: (i) Tenants assume all risk of, and agrees that Landlord shall not be liable for, any and all loss, cost, damage, expense and liability (including, without limitation, court
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costs and reasonable attorneys' fees) sustained as a result of the Premises not having been inspected by a Certified Access Specialist (CASp) ; (ii) Tenants’ indemnity obligations set forth in this Lease shall include any and all cl aims relating to or arising as a result of the Premises not having been inspected by a Ce rtified Access Specialist (CASp); and (iii) Landlord may require, as a c ondition to its consent to a ny alterations, additions or improvements, that the same be inspected a nd certified by a Certif ied Access Specialist (CASp) (following completion) as meeting all applicable construction-related accessibility standards pursuant to California Civil Code Section 55.53.
18.24 Counterparts/Electronic Signatures. This Lease may be executed in any number of counterparts, and all of such counterparts so execute d together shall be deemed to constitute one and the same agre ement, and each such counterpart shall be deemed to be an original provided all of the Parties have fully executed this Lease. Unless otherwise prohibited by law or County policy, the Parties agree that an electronic copy of this Lease, or an electronically signed Lease, has the same force and legal effect as the Lease executed with an original ink signature. The term “electronic copy of this Lease” refers to a transmission by facsimile, electronic mail, or other electronic means of a copy of the original signed Lease in a portable document format. The term “electronically signed Lease” means the Lease that is executed by applying an electronic sign ature using technology approved by the County.
18.25 No-Smoking Policy. Consistent with the County’s No-Smoking Policy, as set forth in the Board of Supervisors Policy Manual section 3.47 (as amended from time to time), the Parties, and their ag ents and representatives, and the FRC Provider agree that smoking shall be prohibited inside the Premises and within 30 feet of the Premises.
IN WITNESS WHEREOF, the Parties hereto have execut ed this Lease on the dates set forth below.
For FIRST 5 Santa Clara County (Tenant 1):
___________________________________
Patricia Gardner
Chief Executive Officer
Approved as to form and legality:
____________________________
Ravi Rajendra
Deputy County Counsel
____________________________
Date
____________________________
Date
For County of Santa Clara (Tenant 2):
___________________________________
Jeffrey Draper
Director, Facilities and Fleet Department
Approved as to form and legality:
____________________________
Mona Williams
Deputy County Counsel
____________________________
Date
____________________________
Date
For City of Gilroy (Landlord):
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___________________________________
Jimmy E. Forbis, Jr.
City Administrator
ATTEST:
____________________________
Thai Nam Pham
City Clerk
Approved as to form:
____________________________
Andy Faber
City Attorney
____________________________
Date
____________________________
Date
____________________________
Date
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