Agenda packet, regular meeting, first session — Gilroy City Council, July 5, 2022 (part 2 of 2)

PASSED AND ADOPTED this 5th day of July, 2022 by the following roll call vote:

AYES:COUNCIL MEMBERS:

NOES:COUNCIL MEMBERS:

ABSTAIN:COUNCIL MEMBERS:

ABSENT:COUNCIL MEMBERS:

APPROVED:

Marie Blankley,Mayor
ATTEST:
_______________________
Thai Nam Pham, City Clerk

10.4.a
Packet Pg. 227 Attachment: DRAFT Resolution - Charter Amendment (2022) - Ballot Measure Language Amendment (3889 : Ballot Measure Amendment)

EXHIBIT A TO RESOLUTION NO. 2022-XX
4890-7867-2418v1
NON-BC\04706083
That the citizens of the City of Gilroy do hereby enact the following amendment to the City Charter:

1.That Section 1109 of the City Charter be amended to read as follows:

Section 1109. Contracts for Public Projects.

Every public project involving an expenditure of City monies of more than Thirty-Five Thousand Dollars ($35,000)greater than the amount allowed for informal bidding pursuant to Section 22032 of the California Public Contract Code,or successor statute, as the same may be amended from time to time,for the construction or improvement of public buildings, works, drains, sewers, utilities, parks and streets (exclusive of projects for maintenance and repair of streets) shall be let by contract to the lowest responsive and responsible bidder, or through best value contracting,after notice by one or more of the following methods:

A.pPublication in athe official newspaper of general circulation in the City by one or more insertions, the first of which shall be at least seven (7) days before the time for opening bids. This method of publication shall be used if available; B.Publication electronically so that the notice is publicly available to the general community of potential bidders;
C.Publication in a trade journal specified by the Uniform Cost Accounting Act Commission by one or more insertions, the first of which shall be at least seven (7) days before the time for opening bids; or
A.D.By using a list of qualified contractors, which includes responsible contractors who have bid in the past and qualified contractors who ask to be included on the list..

The Council may reject any and all bids, if deemed excessive or unsatisfactory and readvertise for bids, or provide for the work to be procured in the open market, but in no case of open market procurements shall the price paid be higher than the responsible low bid rejected.

The Council, without advertising for bids, following the adoption of a resolution declaring that the project can be performed more economically by day labor, or the materials or supplies furnished at a lower price in the open market, may have the project done in the manner stated without further complying with the provisions of this section.

For contracts equal to or in excess of One Million Dollars ($1,000,000) the Council may negotiate and award a Design-Build Contract without formal public bidding if the Council finds that such a contract would save money or result in faster project completion. The process for competitively selecting a design-build contractor shall be consistent with the California Public Contract Code.

2.That Section 1111 of the City Charter be amended to read as follows:

10.4.b
Packet Pg. 228 Attachment: DRAFT Resolution - Charter Amendment (2022) - Exhibit A - Amended and Restated (3889 : Ballot Measure Amendment)

EXHIBIT A TO RESOLUTION NO. 2022-XX
4890-7867-2418v1
NON-BC\04706083
Section 1111. Contracts for Official Advertising.

The Cityouncil shall procure services contract annually for the official advertising in a newspaper of general circulation in of the City in accordance with the California Government Code and the City’s purchasing policyfor the ensuing fiscal year. In the event there is more than one daily newspaper of general circulation in the City, the Council shall advertise for sealed bids for the work. The advertisement shall set forth distinctly and specifically the work contemplated to be done. The Council shall let the contract for such official advertising to the lowest responsible bidder publishing a daily newspaper of general circulation in the City which has been in existence at least one year at the time of awarding the contract; provided, however, that the Council may reject any and all bids and re-advertise in its discretion.

3.That Section 1503(h) of the City Charter be amended to read as follows:
(h) “Newspaper of general circulation within the City” is as defined by the Government Code of the State of California.

10.4.b
Packet Pg. 229 Attachment: DRAFT Resolution - Charter Amendment (2022) - Exhibit A - Amended and Restated (3889 : Ballot Measure Amendment)

City of Gilroy

STAFF REPORT
Agenda Item Title: Resolution Declaring a Portion of the Gilroy Sports Park Property as Surplus Pursuant to Government Code Section 54221
Meeting Date:July 5, 2022
From:Jimmy Forbis, City Administrator
Department:Administration
Submitted By:Jimmy Forbis, City Administrator
Prepared By:Jimmy Forbis, City Administrator
Strategic Plan Goals
•Develop a Financially
Resilient Organization
•Ensure Neighborhood
Equity from City
Services
ý Promote Economic
Development
Activities
ý Promote Safe,
Affordable Housing for All
ý Maintain and Improve
City Infrastructure

RECOMMENDATION
Adopt a resolution of the City Council of the City of Gilroy declaring a portion of the Gilroy Sports Park Property (approximately 9.1 acres) to be surplus land, and direct staff to proceed in conformance with the State Surplus Lands Act regarding the potential disposition of said property.

EXECUTIVE SUMMARY
The City owns several parcels of land on the southern edge of town collectively referred to as the Gilroy Sports Park.The Gilroy Sports Park is planned for development in phases. Phases I and II have been developed. Phase III is the next site identified for development.

11.1 Packet Pg. 230

A portion of the total site, referred to as Phase III in the Gilroy Sports Park, is not currently in use by the City in its undeveloped state. The site is included in the Sports Park Master Plan, including an indoor sports facility of approximately 100,000 square feet. The property has been shown in the Sports Park Master Plan for over 20 years.

These parcels include 808-21-028 and 808-21-026, and total approximately 9.1 acres.

The City does not have plans to use the Gilroy Sports Park Phase III site for city government uses as defined in the Surplus Land Act. In order to consider other possible uses for the property, including leasing the site, the City is subject to the requirements of the Surplus Land Act (Government Code Section 54220, et seq.).

Although the Surplus Land Act (SLA) has been around for some time, recent legislation has amended several aspects of the Act and the process cities must follow. The purpose of the amendments is to promote affordable housing development on unused or underutilized public land throughout the state to respond to the existing affordable housing crisis. The amendments to the SLA adopted with AB 1486 and AB 1255 clarify and strengthen reporting and enforcement provisions of the SLA to promote increased compliance with the SLA.

The first step in the process is for the City Council to declare, by resolution, the property as surplus.

Because the SLA has changed and this is only the City’s second time declaring surplus land under the new regulations, staff has provided a detailed overview of the process and an example of the timeframe for the subsequent steps involved should Council adopt the resolution.

POLICY DISCUSSION
Should the City Council declare the portion of city-owned Gilroy Sports Park intended to be leased as surplus, thereby beginning the process subject to the requirements of the Surplus Land Act?

BACKGROUND
Surplus Land Act
The SLA requires local agencies in California to make land that is no longer needed for agency use available for purchase or lease by public agencies or housing developers, either for park, recreation or open space uses, or for affordable housing. The California Department of Housing and Community Development (“HCD”) enforces the SLA and has issued comprehensive guidelines (the “HCD Guidelines”) interpreting, and in some cases supplementing, the requirements of the SLA. Compliance with the SLA is required anytime a local agency proposes to sell or lease land except in the case of:

1.Certain short-term leases.

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2.Disposition for “agency use”.

3.Disposition of “exempt surplus land.” Certain dispositions are declared to be exempt from most of the SLA’s requirements. If an agency proposes to dispose of land for an exempt purpose, it must first find that the land is “exempt surplus land” and must notify HCD accordingly. Exempt purposes include disposition for certain affordable housing uses and the exchange of property owned by the local agency for other land needed for agency use.

If a local agency proposes to dispose of land and none of the three circumstances listed above applies, then the agency must first declare the property “surplus.” Any action taken by the local agency to dispose of the property without first declaring it surplus is improper and may be voidable. After the local agency declares the land surplus, it must deliver a Notice of Availability in a form prescribed by HCD to HCD, all housing developers on a list maintained by HCD that have requested notice, and certain public agencies, including housing authorities, parks agencies, and school districts. For 60 days after the Notice of Availability is sent, any party entitled to notice may propose to negotiate the purchase or lease of the land for housing, open space, or school facilities. (The term “open space” is used here for convenience to refer to a park, recreation, or open space use.)
If no requests to negotiate are received during the 60-day period, then the local agency may dispose of the land to any party using any procedure allowed by law. However, during the 60-day period, the local agency may not take any steps to negotiate the disposition of the land with any party, including by issuing a request for proposals. Also, if the ultimate disposition of the land is for housing purposes, then the local agency must impose affordability restrictions on the land, as specified in the SLA. Before disposing of the land, the local agency is required to submit information regarding its compliance with the SLA to HCD. HCD has 30 days to review the information submitted by the local agency. If HCD finds a violation of the SLA, then it should provide notice of that violation by the end of the 30-day review period.

If a request to negotiate the purchase or lease of the land for housing, open space, or school facilities is received during the 60-day period, then a 90-day negotiation period begins as soon as the 60-day response period ends. During that time, the local agency must negotiate the disposition of the land in good faith. Where more than one request to negotiate is received, the local agency must prioritize the requests as follows:

1.A parks agency proposing to use the land as open space is entitled to priority if, (i) the land being offered is already being used and is proposed to be used for open space purposes, or (ii) the land is designated for open space use in the local general plan and is proposed to be developed for that purpose.

2.Except as described above, a proposal to use the land for housing with at least 25% of the units deed restricted as affordable is entitled to priority.

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3.If the local agency receives more than one proposal for affordable housing, then priority depends first on the number of units proposed and second on the level of affordability proposed.

The fact that one proposal is entitled to priority does not mean that the local agency cannot consider other proposals. However, if the local agency concludes a deal with a party other than the party entitled to priority, then it must justify its actions to HCD.

The SLA states that the local agency is not required to conclude a deal with any party submitting a proposal if, during the 90-day negotiation period, the agency negotiated in good faith but was unable to reach agreement on “sales price and terms or lease terms.” However, the HCD Guidelines limit the local agency’s discretion further by requiring it to conclude a deal with any party submitting a request to negotiate unless:
(1) the local agency concludes a deal with another party; (2) the local agency and the party cannot reach agreement on “sales price” or “lease terms”; or (3) the party’s proposal does not satisfy reasonable conditions identified by the local agency in its Notice of Availability, which must be reviewed and approved by HCD in advance. If a party to the negotiation requests to purchase or lease only a portion of the surplus land, the local agency may, but is not required, to entertain this proposal.

One issue that may arise during negotiations is whether the local agency may withdraw its Notice of Availability and decide not to dispose of the land or to dispose of it for agency use or an exempt purpose. The SLA is silent on this issue, but the HCD Guidelines require the local agency to proceed with negotiations if it received a timely request to negotiate. Prior to receiving a request to negotiate, the local agency may change its mind by issuing a Notice of Withdrawal.

The local agency may not refuse to negotiate disposition for housing even if housing is not an allowed use of the land under the applicable general plan and zoning. However, a local agency that controls land use is not required to rezone the land or change its land use designation to accommodate housing. For sites where housing is allowed, the local agency cannot negotiate a lower density than would otherwise be allowed or require compliance with design standards that would not otherwise apply.

After the conclusion of the negotiation period the local agency must submit information to HCD of its compliance with the SLA. HCD has 30 days to review the information submitted by the local agency. If HCD finds a violation of the SLA, then it should provide notice of that violation by the end of the 30-day review period. The local agency should then cure the violation within 60 days unless it believes no violation occurred, in which case it is required to provide a written explanation of its position to HCD. Once this process is completed, the local agency may dispose of the land if a deal was reached during the 90-day period. If no deal was reached, then the local agency may proceed to dispose of the land to any party and by any means allowed by law.

However, if the land will be sold for housing purposes, then the local agency is required to impose affordability restrictions on the land, as specified in the SLA.

11.1 Packet Pg. 233

If HCD notices a violation by the local agency of the SLA,as described above, and if the local agency neither cures the violation nor satisfies HCD that no violation occurred, then HCD may report the violation to the Attorney General. The Attorney General or a beneficially interested private party may bring an action to enforce the SLA, and if the court determines that a violation of the SLA occurred that was not cured prior to the disposition of the land, then the court must order the local agency to deposit 30% of the proceeds of the disposition into an affordable housing fund. If the local agency is ever found to dispose of land in violation of the SLA in the future, it will be required to deposit 50% of the proceeds of such disposition into an affordable housing fund.

Site Information
The site being considered for surplus status is a portion of the Gilroy Sports Park facility grounds. In 1999, the Sports Park Master Plan was approved. Development initiated in 2006 for Phase I and II. Phase III is the location where the subject property is located. In 2020, the City amended the Sports Park Master Plan for Phase III to consider a potential ice center. The total Sports Park area is 78 acres and is located in unincorporated Santa Clara County, directly adjacent and south of the Gilroy City Limit.

Phase III comprises 9.1 acres along the southern perimeter of the property. The Master Plan for this location has proposed a building footprint of 100,000 square feet, and 387 parking spaces.

The subject property crosses multiple parcels. Below are the Assessor’s Parcel Numbers for the respective parcels affected.
808-21-028
808-21-026
808-21-027 (potentially a portion could be impacted by parking lot construction)

ANALYSIS
The subject site does not qualify as exempt from the SLA under the three circumstances described above. Therefore, in order to consider disposing of the property the City must first declare the property “surplus”. Disposal of the property includes either the sale or long-term lease (generally considered anything longer than five years).

Upon adoption of the resolution declaring the property as surplus, staff anticipates the following steps.

1.Submit a Notice of Availability (NOA) to agencies and requesting entities as required by HCD.

2.Wait 60 days from the date the NOA was sent.During that time, entities interested in negotiating the purchase of the property should submit requests to negotiate to the City.

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3.If no requests are received by the end of the 60-day response period, the City may proceed to dispose of the property by other means, but prior to disposition, the City must report on its compliance with the Act to HCD.

4.If any requests are received, then the City is required to negotiate with the respondent(s) for at least 90-days.This is a total 90-day period, not a separate period for each respondent.If no agreement is reached with a respondent by the end of the 90-day negotiation period,then the City may dispose of the property by other means, subject to certain terms and conditions set forth in the SLA if the land will be used for housing. Whether the City chooses to dispose of the property with any respondent or if the City will not dispose of the property to a respondent, the City is required to report on its compliance with the SLA to HCD.

5.HCD has 30 days to respond to the City’s report with a Notice of Violation. If no Notice of Violation is received within 30 days of HCD’s receipt the City’s report, then the City is deemed to have complied with the SLA.

It should be noted that the SLA restricts the City from negotiating with prospective buyers or lessees prior to going through the SLA process.It is important to note that negotiations began regarding the property in May of 2019, which by the SLA guidelines would exempt the property from changes to SLA requirements effective January 1, 2020, if and disposition could occur by December 31, 2022. Until recently, it was assumed that the City could meet this deadline. To comply with the SLA requirements, negotiations will cease with the Sharks Sports & Entertainment LLC until the completion of the SLA process.

ALTERNATIVES
The City Council may choose not to declare the property as surplus. The City would continue to retain the property but not be able to lease the property for other uses. The City cannot consider any sale or long-term lease of the property unless the SLA process is followed.

FISCAL IMPACT/FUNDING SOURCE
There is no fiscal impact with this action. Any property sale, whether to an entity responding to the NOA or otherwise would be brought to the City Council for consideration and action. The fiscal impacts of that action would be discussed in detail at that time.

CONCLUSION
There are no plans to use the subject property for city government uses. In order to consider leasing the property for other uses, the City is subject to the requirements of the Surplus Land Act (Government Code Section 54220, et seq.). The first step in this process is for the City Council to declare, by resolution, the property as surplus.

11.1 Packet Pg. 235

NEXT STEPS
Once Council adopts the resolution and declares the property as surplus, staff will begin the steps as outlined above, beginning with submitting a Notice of Availability (NOA) to agencies and requesting entities as required by HCD.

PUBLIC OUTREACH
Outreach for this process will be conducted in accordance with HCD and State requirements.

Attachments:

1.Draft Resolution -Sports Park SLA

11.1 Packet Pg. 236

RESOLUTION NO. 2022-__

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY
DECLARING PURSUANT TO GOVERNMENT CODE SECTION 542 21
THAT REAL PROPERTY OWNED BY THE CITY AT 5925 MONTEREY
FRONTAGE ROAD IS “SURPLUS LAND” WITHIN THE MEANING OF

THE SURPLUS LAND ACT, FINDING THAT SUCH DECLARATION IS

EXEMPT FROM ENVIRONMENTAL REVIEW UNDER THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT, AND TAKING RELATED ACTIONS
WHEREAS, the City of Gilroy is the owner in fee simple of that certain unincorporated real property commonly known as the Gilroy Sports Park, which comprises approximately 80 acres, more or less, and which is located at 5925 Monterey Frontage Road, Assessor’s Parcel Nos.808-21- 026, -028, and -030 (the “Sports Park”); and
WHEREAS, the City’s Sports Park Master Plan (the “Master Plan”)contemplates construction of an indoor sports complex (the “Sports Complex”) within the Sports Park on land comprising a portion of Assessor’s Parcel Nos. 808-21-026 and -028, and more particularly designated as the “project site” in Exhibit A, attached hereto and made a part hereof by this reference (the “Property”), which comprises approximately 9.1 acres, more or less; and WHEREAS, on May 19, 2019, the City entered an Exclusive Negotiating Agreement (the “ENA”) with Sharks Sports & Entertainment LLC (“SSE”) to attempt in good faith to negotiate an agreement with SSE to assist in the development of the Sports Complex and to operate it for the benefit of the City (“Operating Agreement”); and
WHEREAS, on January 1, 2020, AB 1486 took effect, which revised the Surplus Land Act, Government Code Section 54220, et seq., to impose new obligations on local public agencies with respect to the disposition of land, and which conferred new enforcement powers on t he California Department of Housing and Community Development (“HCD”); and WHEREAS, Government Code Section 54234 provides that a disposition of local public agency land is subject to the law as it existed prior to January 1, 2020, if the land was subje ct to an existing exclusive negotiating agreement effective as of September 30, 2019, and is disposed of by December 31, 2022; and
WHEREAS, the ENA has been extended by the City Council multiple times, including most recently on June 20, 2022; and
WHEREAS, to provide adequate time for both parties to conduct due diligence and to complete negotiations, it now appears that an Operating Agreement with SSE will not be concluded by December 31, 2022; and
WHEREAS, the City desires to retain the Property for recreational use by members of the public, but the proposed use of the Property as a Sports Complex is not “agency use” within the meaning of Government Code Section 54221(c), as construed by HCD; and

11.1.a
Packet Pg. 237 Attachment: Draft Resolution - Sports Park SLA (3844 : Sports Park Surplus Land Act)

Resolution No. 2022-XX
Surplus Land Act –5925 Monterey Frontage Road
City Council Regular Meeting | July 5, 2022

Page 2 of 5 ends

WHEREAS, unless and until negotiations are concluded, the City is unable to determine whether an Operating Agreement would constitute a “disposition,” as that term is used in the Surplus Land Act, and as it is construed by Section 102(h) of HCD’s Surplus Land Act Guidelines; and WHEREAS, the Property is not exempt surplus land in the that none of the circumstances stated in Government Code Section 54221(f) applies; and WHEREAS, the Property is not in active use by the City for any purpose except to be held for future use as part of the Gilroy Sports Park, the City does not have any current plan for the Property other than to develop the Sports Complex , and the City has never committed i tself to developing the Sports Complex; and
WHEREAS, based on the foregoing facts and circumstances, the City is unable to determine at this time whether entry into an Operating Agreement would be subject to compliance with the Surplus Land Act, as amended by AB 1486, including by declaring the Property surplus, providing Notice of Availability, accepting offers from eligible parties to acquire the Property, and negotiating in good faith upon receipt of any such offer or offers ; and WHEREAS, to obtain financing to construct the Sports Complex, the City and any potential lenders require certainty that entry into an Operating Agreement will not subject the City to penalties pursuant to Government Code Section 54230.5, so that it has been determi ned to be in the City’s best interest to pause negotiations with SSE to provide an opportunity to complete the process outlined in the prior recital, and not to resume negotiations unless and until HCD confirms such compliance as provided for in its Surplus Land Act Guidelines; and
WHEREAS,the Property is designated as a park and recreational facility in the Master Plan and in the City’s General Plan, so that first priority in negotiations pursuant to Government Code Section 54277 shall be given to a public agency that agrees to develop the Property for parks and recreational purposes; and
WHEREAS, the City Council’s action in adopting this resolution is exempt from review under the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidel ines Section 15061(b)(3) because it can be seen with certainty that declaring the Property surplus and directing staff to issue a written Notice of Availability will not have a foreseeable significant effect on the physical environment in that the City has not committed the Property to any particular use at this time, predicting the impacts of any future use of the Property following its disposition by the City would be wholly speculative, and none of the circumstances in CEQA Guidelines Section 15300.2 applies;

11.1.a
Packet Pg. 238 Attachment: Draft Resolution - Sports Park SLA (3844 : Sports Park Surplus Land Act)

Resolution No. 2022-XX
Surplus Land Act –5925 Monterey Frontage Road
City Council Regular Meeting | July 5, 2022

Page 3 of 5 ends

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Gilroy as follows:

1.That the City Council finds that the foregoing recitals are true and correct.

2.That the City Council hereby declares that the Property is surplus and not necessary for the City’s use.

3.That the City Clerk is hereby directed to send a Notice of Availability to the entities designated in Government Code Section 54222. The Notice of Availability shall be sent in a manner set forth in Section 201 of HCD’s Surp lus Land Act Guidelines.

4.That the officers and staff of the City are authorized hereby to do all things necessary or proper to effectuate the purposes of this Resolution, and that any such actions previously taken are hereby ratified and confirmed.

PASSED AND ADOPTED this 5th day of July, 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

11.1.a
Packet Pg. 239 Attachment: Draft Resolution - Sports Park SLA (3844 : Sports Park Surplus Land Act)

Resolution No. 2022-XX
Surplus Land Act –5925 Monterey Frontage Road
City Council Regular Meeting | July 5, 2022

Page 4 of 5 ends

EXHIBIT A

DEPICTION OF THE PROPERTY

11.1.a
Packet Pg. 240 Attachment: Draft Resolution - Sports Park SLA (3844 : Sports Park Surplus Land Act)

Resolution No. 2022-XX
Surplus Land Act –5925 Monterey Frontage Road
City Council Regular Meeting | July 5, 2022

Page 5 of 5 ends

11.1.a
Packet Pg. 241 Attachment: Draft Resolution - Sports Park SLA (3844 : Sports Park Surplus Land Act)

City of Gilroy

STAFF REPORT
Agenda Item Title: Gourmet Alley/Downtown Ad Hoc Committee Recommendations
Meeting Date:July 5, 2022
From:Jimmy Forbis, City Administrator
Department:Administration
Submitted By:Jimmy Forbis, City Administrator
Prepared By:Karine Decker, Management Analyst -Economic Development Strategic Plan Goals
•Develop a Financially
Resilient Organization
•Ensure Neighborhood
Equity from City
Services
ý Promote Economic
Development
Activities
•Promote Safe,
Affordable Housing for All
•Maintain and Improve
City Infrastructure

RECOMMENDATION
Approve the Gourmet Alley/Downtown Ad Hoc committee recommendations.

EXECUTIVE SUMMARY
On November 1, 2021 the City Council approved the formation of an ad hoc committee for Downtown/Gourmet Alley (Committee). Councilmembers Armendariz, Marques and Tovar volunteered to join the Committee, with Councilmember Tovar appointed by the Committee as Chair and Councilmember Marques as Vice-Chair.

The Committee began meeting monthly starting in January 2022. Discussions were focused on identifying challenges and opportunities to spur revitalization downtown. As

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a result of these discussions, the Committee has developed four recommendations to date to present to Council.The Committee recommendations are:
1)Update the Downtown Strategic Plan
2)Develop New Ordinances to Address Vacancies and Noise 3)Pursue Opportunities for an Assessment District
4)Develop a Downtown Parking Management Plan

BACKGROUND
As a basis for the recommendations set forth by the Committee, the following challenges were identified.
1)The Downtown Strategic Plan was completed in November of 2006 and needs to be updated. The Strategic Plan is a visioning document, intended to recommend economic development strategies to attract viable and desirable businesses to selected districts within the Downtown Specific Plan Area. While many of recommendations in the Strategic Plan remain viable, the 16 years that have passed since its completion have seen many important changes in Gilroy.

Population growth, changing demographics, market conditions and economic factors especially post-COVID are not reflected and are important factors in determining future revenue generating, sustainable economic development. 2)Vacant buildings downtown are an eyesore, and present a significant challenge in redevelopment and revitalization efforts. Despite some progress, many buildings have remained vacant for many years. In an effort to address this problem, the Committee is recommending a new ordinance or policy to further incentivize property owners to market and lease their vacant commercial buildings in order to stimulate development and bring new businesses downtown.

The Committee has also discussed the possibility of a “vacancy tax” that would assess a charge on property owners for their vacant/undeveloped buildings.

Further, as new development occurs downtown, and a nighttime economy begins to form, the development of a noise ordinance is being proposed by the Committee in order to buffer the surrounding residential neighborhoods from nuisance and ensure compliance by new business establishments. 3)An assessment district is a financing tool used by many vibrant downtowns to provide an ongoing funding source for projects identified within that district such as façade and beautification projects, signage, street cleaning, graffiti removal, lighting, and additional security. Other projects can also be identified and funded as part of an assessment district as well.

The recommendation for the formation of an assessment district in Gilroy’s downtown is found in both the Downtown Specific Plan and the Downtown Strategic Plan but has never been implemented. As a result of renewed interest

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in the revitalization of downtown, the Committee is reviving the recommendation to pursue the formation of an assessment district as a priority. 4)As more commercial and residential space is developed downtown, questions surrounding the number and availability of parking spots for employees, residents and visitors is raised. Therefore, the committee recommends pursuing the development of a parking management plan to help address and identify solutions to meet the parking needs downtown which may include fees for parking and development of a parking enforcement program.

The Committee will continue to meet over the next few months and may consider additional recommendations to the City Council.

ALTERNATIVES
The options before Council are to approve all four of the Committee’s recommendations, to approve only some of the recommendations made, or reject all the recommendations made.Since the recommendations presented to Council would not result in any policy changes without future Council approval, staff recommends that the committee recommendations be approved as presented. That would enable staff to dedicate time and resources in developing a policy recommendation to the full City Council.

FISCAL IMPACT/FUNDING SOURCE
No budget amendment is being requested at this time, however a mid-cycle (FY23) adjustment or Fiscal Year 2024 (FY24) recommendations may be necessary for cost associated with updating the Strategic plan, completing a feasibility study for an assessment district or developing a parking management plan. If a budget adjustment is required, staff will return to Council for its consideration of such an amendment.

CONCLUSION
Staff recommends that the Committee’s recommendations be approved by Council as presented.

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City of Gilroy

STAFF REPORT
Agenda Item Title: Approval of Gilroy Firefighters IAFF Local 2805 Memorandum of Understanding and Related Salary Schedules for the Period July 1, 2022 Through June 30, 2026
Meeting Date:July 5, 2022
From:Jimmy Forbis, City Administrator
Department:Human Resources Department
Submitted By:LeeAnn McPhillips, Administrative Services/HR Director/Risk Manager
Prepared By:LeeAnn McPhillips, Administrative Services/HR Director/Risk Manager
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 2022-2023 to implement the terms of the Gilroy Firefighters, IAFF, Local 2805 Memorandum of Understanding (MOU) for FY 23, appropriating proposed expenditure amendments, and authorizing the inclusion of appropriate funds in the future FY 24, FY 25, and FY 26 budgets for salary and benefit expenditures related to the implementation of the MOU. b)Approve the Memorandum of Understanding between the City and Gilroy Firefighters, IAFF, Local 2805 for the period July 1, 2022 -June 30, 2026.

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c)Adopt a Resolution of the City Council of the City of Gilroy approving the July 1, 2022, July 1, 2023, July 1, 2024 and July 1, 2025 salary schedules associated with the Gilroy Firefighters, IAFF, Local 2805 Memorandum of Understanding.

EXECUTIVE SUMMARY
The City of Gilroy is a public employer. As such, and consistent with the Meyers-Milias- Brown Act (MMBA), the City engages in a collective bargaining process with represented employees through bargaining units. The process typically occurs over a three to four-month period before the expiration of the existing labor contract. City employees (except executives and certain others) are organized into five different bargaining units and are represented by unions. The product of the collective bargaining process is an MOU (“memorandum of understanding” or “Memoranda” for plural).

MOUs specify the terms and conditions of employment.

Gilroy Firefighters, International Association of Firefighters (IAFF), Local 2805 is the labor group that represents Fire Captains, Fire Engineers, and Firefighters (Licensed Paramedics).The agenda item tonight is to review and approve the MOU for the IAFF, Local 2805 bargaining group for the next four fiscal years, FY23 –FY 26.

BACKGROUND
Staff concluded negotiations with the Gilroy Firefighters Association, IAFF, Local 2805, for a successor Memorandum of Understanding (MOU)including salary schedules for the time period of July 1, 2022 –June 30, 2026, in conformance with Council direction.

This MOU covers thirty-eight (38) non-management employees in the Gilroy Fire Department.

The IAFF, Local 2805 employees gave up their FY 21 salary increase of 3.5% and did not receive any salary increase in FY 22. In addition, this labor group experienced other benefit concessions in FY 21 to assist with balancing the budget during the Covid economic downturn. Therefore, the focus of these negotiations was to increase the salary schedule for purposes of recruitment and retention of employees. Retaining talented employees is a priority for the organization and ensures high quality services for the Gilroy community. The four-year term will provide stability for the employees and the organization overall and allows staff to plan and budget for the planned increases.

The main areas of change for the IAFF, Local 2805 MOU are summarized below:
·Four-year contract (July 1, 2022 –June 30, 2022).
·Add Retention Steps to the salary schedule:
·Step F (approximately 5% above current Step E) effective 7/1/22 –requires completion of 5 years of service and meets standards or better performance evaluation. Employee must have been at Step E for one year.

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·Step G (approximately 5% above Step F) effective 7/1/23 –requires completion of 10 years of service and a meets standards or better performance evaluation. Employee must have been at Step F for one year. ·Step H (approximately 5% above Step G) effective 7/1/24 –requires completion of 15 years of service and a meets standards or better performance evaluation. Employee must have been at Step G for one year. ·Step I (approximately 5% above Step H) effective 7/1/25 –requires completion of 20 years of service and a meets standards or better performance evaluation.

Employee must have been at Step H for one year.
·Increase salary range for the Fire Engineer classification by approximately 2.5% effective July 1, 2022.
·Implement change to annual physical exam process and utilize a new vendor that provides cancer screenings.
·Expand residency requirement from 90 minutes to 180 minutes. ·Increase number of potential support paramedics from nine to twelve. ·Continue the current cost share program for health care; 5% increase to the City contribution toward medical and dental allotment for 2023 and 2024; employee picks up any remaining cost for medical and dental insurance premiums.In 2025 and 2026, in lieu of the 5% increase to the city contributions, employees will receive a $75 per month City contribution to the retiree medical trust program.

A final copy of the MOU and the corresponding salary schedules are attached for Council’s review and approval. Staff worked with bargaining team members to prepare the changes to the MOU documents. The final draft of the MOU has been reviewed by representatives of the bargaining unit and a designated representative from the negotiating team has signed-off on the final document. The remaining members of the IAFF, Local 2805 negotiations team and the City negotiations team will sign the document following Council approval.

FISCAL IMPACT
The cost to implement the MOU salary and benefit changes over the four-year period is estimated to be approximately $825,000 or an average of $206,250 per fiscal year. The full amount will be charged to the General Fund.

Attachments:

1.Draft Budget Amendment Resolution for IAFF, Local 2805 MOU

2.IAFF Local 2805 MOU with Exhibits

3.Draft Resolution -IAFF Local 2805 Salary and Salary Schedules for 2022-2026 MOU

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RESOLUTION NO. 2022-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

GILROY AMENDING THE BUDGET FOR THE CITY OF
GILROY FOR 2022-2023 TO IMPLEMENT THE TERMS OF
THE GILROY FIREFIGHTERS IAFF, LOCAL 2805

MEMORANDUM OF UNDERSTANDING (MOU) FOR FY
23, APPROPRIATING PROPOSED EXPENDITURE

AMENDMENTS, AND AUTHORIZING THE INCLUSION OF
APPROPRIATE FUNDS IN THE FUTURE FY 24, FY 25,
AND FY 26 BUDGETS FOR SALARY AND BENEFIT

EXPENDITURES RELATED TO THE IMPLE MENTATION

OF THE MOU
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 2022-2023 for the City of Gilroy in the staff report dated July 5, 2022 for the Approval of Memorandum of Understanding with Gilroy Firefighters, IAFF, Local 2805 and Related Salary Schedules from July 1, 2022 through June 30, 2026 .

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GILROY, AS FOLLOWS:

1.The appropriations for Fiscal Year 2022-2023 shall be increased by the Finance Director to implement the terms of the Gilroy Firefighters IAFF, Local 2805 Memorandum of Understanding pertaining to Fiscal Year 2022 -2023 Budget of the City.

2.The appropriate funds to implement the remaining terms of the Memorand um of Understanding shall be included in the FY 24, FY 25, and FY 26 future budgets.

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Resolution No. 2022-XX
Budget Amendment Resolution –IAFF, Local 2805 MOU
City Council Regular Meeting | July 5, 2022

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PASSED AND ADOPTED this 5th day of July, 2022 by the following roll call 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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RESOLUTION NO. 2022-XX

A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF GILROY ESTABLISHING THE JULY 1, 2022,
JULY 1, 2023, JULY 1, 2024, AND JULY 1, 2025 SALARY

SCHEDULES FOR EMPLOYEES REPRESENTED BY

THE GILROY, INTERNATIONAL ASSOCIATION OF
FIREFIGHTERS (IAFF), LOCAL 2805
WHEREAS, the City Council does establish salaries for city officers and employees by resolution.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GILROY, AS FOLLOWS:

1.The salaries effective July 1, 2022 for the employees represented by the Gilroy, IAFF, Local 2805 as set forth in the attached salary schedule consisting of one (1) page is hereby approved and established adding Step F and increasing the range for Fire Engineer by approximately 2.5%.

2.The salaries effective July 1, 2023 for the employees represented by the Gilroy, IAFF, Local 2805 as set forth in the attached salary schedule consisting of one (1) page is hereby approved and established adding Step G.

3.The salaries effective July 1, 2024 for the employees represented by the Gilroy, IAFF, Local 2805 as set forth in the attached salary schedule consisting of one (1) page is hereby approved and established adding Step H.

4.The salaries effective July 1, 2025 for the employees represented by the Gilroy, IAFF, Local 2805 as set forth in the attached salary schedule consisting of one (1) page is hereby approved and established adding Step I.

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Resolution No. 2022-XX
IAFF, Local 2805 Salary Schedules July 1, 2022 - June 30, 2026 City Council Regular Meeting | July 5, 2022

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PASSED AND ADOPTED this 5th day of July, 2022 by the following roll call 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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City of Gilroy

STAFF REPORT
Agenda Item Title: Approval of AFSCME, Local 101 General Unit and AFSCME, Local 101 Supervisory Unit Memoranda of Understanding and Related Salary Schedules for the Period July 1, 2022 Through June 30, 2026
Meeting Date:July 5, 2022
From:Jimmy Forbis, City Administrator
Department:Human Resources Department
Submitted By:LeeAnn McPhillips, Administrative Services/HR Director/Risk Manager
Prepared By:LeeAnn McPhillips, Administrative Services/HR Director/Risk Manager
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 FY 23 to implement the terms of the AFSCME, Local 101 Memoranda of Understanding (MOU) for FY 23 and authorizing the inclusion of appropriate funds in the future FY 24, FY 25, and FY 26 budgets for salary and benefit expenditures related to the implementation of the MOUs. b)Approve the Memoranda of Understanding with AFSCME, Local 101 General Unit and AFSCME, Local 101 Supervisory Unit for the period July 1, 2022 -June

11.4 Packet Pg. 372

30, 2026.
c)Adopt a Resolution of the City Council of the City of Gilroy approving the July 1, 2022, July 1, 2023, July 1, 2024, and July 1, 2025 salary schedules associated with the AFSCME, Local 101 General unit.
d)Adopt a Resolution of the City Council of the City of Gilroy approving the July 1, 2022, July 1, 2023, July 1, 2024, and July 1, 2025 salary schedules associated with the AFSCME, Local 101 Supervisory unit.

MOUs specify the terms and conditions of employment.

AFSCME, Local 101 has two bargaining units with the City of Gilroy, a General Employee Unit and a Supervisory Employee Unit.The agenda item tonight is to review and approve the MOUs for the two AFSCME, Local 101 bargaining groups for the next four fiscal years, FY23 –FY 26.

BACKGROUND
Staff recently concluded negotiations with AFL-CIO, AFSCME, Local 101 General and Supervisory groups (approximately 100 members) for successor Memoranda of Understanding (MOUs) including salary schedules for the time period of July 1, 2022 – June 30, 2026, in conformance with Council direction.Final copies of the MOUs and the corresponding salary schedules are attached for Council’s review and approval. Staff worked with bargaining team members to prepare the changes to the MOU documents.

The final draft of the MOUs have been reviewed by representatives of the bargaining unit and a designated representative from the negotiating team has signed-off on the final documents. The remaining members of the AFSCME negotiations team and the City negotiating team will sign the documents following Council approval.

The AFSCME unit employees did not receive any salary increase in FY 22. The focus of these negotiations was to increase the salary schedule for purposes of recruitment and retention of employees. Retaining talented employees is a priority for the organization and ensures high quality services for the Gilroy community. The four-year term will provide stability for the employees and the organization overall and allows staff to plan and budget for the planned increases.

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The main areas of change for the AFSMCE, Local 01 General and Supervisory Unit MOUs are summarized below:
·Four-year contracts (July 1, 2022 –June 30, 2026)
·Salary increases as follows:
·3% cost of living salary increase effective July 1, 2022 ·3% cost of living salary increase effective July 1, 2023 ·3% cost of living salary increase effective July 1, 2024 ·1% cost of living salary increase effective July 1, 2025 ·Add Retention Steps to the salary schedules:
·Step F (approximately 5% above current Step E) effective 7/1/22 –requires completion of 5 years of service and meets standards or better performance evaluation. Employee must have been at Step E for one year. ·Step G (approximately 5% above Step F) effective 7/1/23 –requires completion of 10 years of service and a meets standards or better performance evaluation. Employee must have been at Step F for one year. ·Step H (approximately 5% above Step G) effective 7/1/24 –requires completion of 15 years of service and a meets standards or better performance evaluation. Employee must have been at Step G for one year. ·City contribution to medical and dental premiums will be frozen at the January 1, 2022 rate.
·Request for City Council to give future consideration to adding two observed holidays –Cesar Chavez Day (March 31) and Juneteenth (June 19) ·Other minor clean-up/clarification language to update the MOUs –no cost associated with these updates

FISCAL IMPACT
The cost for the new MOU changes over the four-year period is estimated to be $1,503,208 or approximately $375,802 annually (average). Approximately 56% of this cost is charged to the General Fund and 44% to other funds.

Attachments:

1.Draft Resolution -Budget Amendment for AFSCME, Local 101 MOUs

2.AFSCME General Unit MOU July 1, 2022 to June 30, 2026 with Exhibits

3.AFSCME Supervisory Unit MOU July 1, 2022 to June 30, 2026 with Exhibits

4.Salary Resolution and Salary Schedules for AFSCME Local 101 General Unit MOU July 1, 2022 -June 30, 2026

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5.Salary Resolution and Salary Schedules for AFSCME Local 101 Supervisory Unit MOU July 1, 2022 -June 30, 2026

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RESOLUTION NO. 2022-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

GILROY AMENDING THE BUDGET FOR THE CITY OF
GILROY FOR 2022-2023 TO IMPLEMENT THE TERMS OF
THE GILROY AFSCME, LOCAL 101, GENERAL AND

SUPERVISORY UNITS,MEMORANDA OF
UNDERSTANDING (MOUS ) FOR FY 23, APPROPRIATING

PROPOSED EXPENDITURE AMENDMENTS, AND

AUTHORIZING THE INCLUSION OF APPROPRIATE
FUNDS IN THE FUTURE FY 24, FY 25, AND FY 26

BUDGETS FOR SALARY AND BENEFIT EXPENDITURES

RELATED TO THE IMPLEMENTATION OF THE MOU
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 2022-2023 for the City of Gilroy in the staff report dated July 5, 2022 for the Approval of Memoranda of Understanding with Gilroy AFSCME, Local 101, General and Supervisory Units,and Related Salary Schedules from July 1, 2022 through June 30, 2026.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GILROY, AS FOLLOWS:

1.The appropriations for Fiscal Year 2022-2023 shall be increased by the Finance Director to implement the terms of the Gilroy AFSCME, Local 101, General and Supervisory Units, Memoranda of Understanding pertaining to Fiscal Year 2022-2023 Budget of the City.

2.The appropriate funds to implement the remaining terms of the Memorand a of Understanding shall be included in the FY 24, FY 25, and FY 26 future budgets.

11.4.a
Packet Pg. 376 Attachment: Draft Resolution - Budget Amendment for AFSCME, Local 101 MOUs (3863 : AFSCME MOU and Salary Schedules)

Resolution No. 2022-XX
Budget Amendment Resolution –AFSCME, Local 101 MOUs
City Council Regular Meeting | July 5, 2022

Page 2 of 2 ends

PASSED AND ADOPTED this 5th day of July, 2022 by the following roll call vote:

AYES:COUNCIL MEMBERS:

NOES:COUNCIL MEMBERS:

ABSTAIN:COUNCIL MEMBERS:

ABSENT:COUNCIL MEMBERS:

APPROVED:

Marie Blankley,Mayor
ATTEST:
_______________________
Thai Nam Pham, City Clerk

11.4.a
Packet Pg. 377 Attachment: Draft Resolution - Budget Amendment for AFSCME, Local 101 MOUs (3863 : AFSCME MOU and Salary Schedules)

11.4.b
Packet Pg. 378 Attachment: AFSCME General Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.b
Packet Pg. 379 Attachment: AFSCME General Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.b
Packet Pg. 380 Attachment: AFSCME General Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.b
Packet Pg. 381 Attachment: AFSCME General Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.b
Packet Pg. 382 Attachment: AFSCME General Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.b
Packet Pg. 383 Attachment: AFSCME General Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.b
Packet Pg. 384 Attachment: AFSCME General Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.b
Packet Pg. 385 Attachment: AFSCME General Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.b
Packet Pg. 386 Attachment: AFSCME General Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.b
Packet Pg. 387 Attachment: AFSCME General Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.b
Packet Pg. 388 Attachment: AFSCME General Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.b
Packet Pg. 389 Attachment: AFSCME General Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.b
Packet Pg. 390 Attachment: AFSCME General Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.b
Packet Pg. 391 Attachment: AFSCME General Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.b
Packet Pg. 392 Attachment: AFSCME General Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.b
Packet Pg. 393 Attachment: AFSCME General Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.b
Packet Pg. 394 Attachment: AFSCME General Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.b
Packet Pg. 395 Attachment: AFSCME General Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.b
Packet Pg. 396 Attachment: AFSCME General Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.b
Packet Pg. 397 Attachment: AFSCME General Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.b
Packet Pg. 398 Attachment: AFSCME General Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.b
Packet Pg. 399 Attachment: AFSCME General Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.b
Packet Pg. 400 Attachment: AFSCME General Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.b
Packet Pg. 401 Attachment: AFSCME General Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.b
Packet Pg. 402 Attachment: AFSCME General Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.b
Packet Pg. 403 Attachment: AFSCME General Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.b
Packet Pg. 404 Attachment: AFSCME General Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.b
Packet Pg. 405 Attachment: AFSCME General Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.b
Packet Pg. 406 Attachment: AFSCME General Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.b
Packet Pg. 407 Attachment: AFSCME General Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.b
Packet Pg. 408 Attachment: AFSCME General Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.b
Packet Pg. 409 Attachment: AFSCME General Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.b
Packet Pg. 410 Attachment: AFSCME General Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.b
Packet Pg. 411 Attachment: AFSCME General Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.b
Packet Pg. 412 Attachment: AFSCME General Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.b
Packet Pg. 413 Attachment: AFSCME General Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.b
Packet Pg. 414 Attachment: AFSCME General Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.b
Packet Pg. 415 Attachment: AFSCME General Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.b
Packet Pg. 416 Attachment: AFSCME General Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.b
Packet Pg. 417 Attachment: AFSCME General Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.b
Packet Pg. 418 Attachment: AFSCME General Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.b
Packet Pg. 419 Attachment: AFSCME General Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.b
Packet Pg. 420 Attachment: AFSCME General Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.b
Packet Pg. 421 Attachment: AFSCME General Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.b
Packet Pg. 422 Attachment: AFSCME General Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.b
Packet Pg. 423 Attachment: AFSCME General Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.b
Packet Pg. 424 Attachment: AFSCME General Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.b
Packet Pg. 425 Attachment: AFSCME General Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.b
Packet Pg. 426 Attachment: AFSCME General Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.c
Packet Pg. 427 Attachment: AFSCME Supervisory Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.c
Packet Pg. 428 Attachment: AFSCME Supervisory Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.c
Packet Pg. 429 Attachment: AFSCME Supervisory Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.c
Packet Pg. 430 Attachment: AFSCME Supervisory Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.c
Packet Pg. 431 Attachment: AFSCME Supervisory Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.c
Packet Pg. 432 Attachment: AFSCME Supervisory Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.c
Packet Pg. 433 Attachment: AFSCME Supervisory Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.c
Packet Pg. 434 Attachment: AFSCME Supervisory Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.c
Packet Pg. 435 Attachment: AFSCME Supervisory Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.c
Packet Pg. 436 Attachment: AFSCME Supervisory Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.c
Packet Pg. 437 Attachment: AFSCME Supervisory Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.c
Packet Pg. 438 Attachment: AFSCME Supervisory Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.c
Packet Pg. 439 Attachment: AFSCME Supervisory Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.c
Packet Pg. 440 Attachment: AFSCME Supervisory Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.c
Packet Pg. 441 Attachment: AFSCME Supervisory Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.c
Packet Pg. 442 Attachment: AFSCME Supervisory Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.c
Packet Pg. 443 Attachment: AFSCME Supervisory Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.c
Packet Pg. 444 Attachment: AFSCME Supervisory Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.c
Packet Pg. 445 Attachment: AFSCME Supervisory Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.c
Packet Pg. 446 Attachment: AFSCME Supervisory Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.c
Packet Pg. 447 Attachment: AFSCME Supervisory Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.c
Packet Pg. 448 Attachment: AFSCME Supervisory Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.c
Packet Pg. 449 Attachment: AFSCME Supervisory Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.c
Packet Pg. 450 Attachment: AFSCME Supervisory Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.c
Packet Pg. 451 Attachment: AFSCME Supervisory Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.c
Packet Pg. 452 Attachment: AFSCME Supervisory Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.c
Packet Pg. 453 Attachment: AFSCME Supervisory Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.c
Packet Pg. 454 Attachment: AFSCME Supervisory Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.c
Packet Pg. 455 Attachment: AFSCME Supervisory Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.c
Packet Pg. 456 Attachment: AFSCME Supervisory Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.c
Packet Pg. 457 Attachment: AFSCME Supervisory Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.c
Packet Pg. 458 Attachment: AFSCME Supervisory Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.c
Packet Pg. 459 Attachment: AFSCME Supervisory Unit MOU July 1, 2022 to June 30, 2026 with Exhibits (3863 : AFSCME MOU and Salary Schedules)

11.4.d
Packet Pg. 460 Attachment: Salary Resolution and Salary Schedules for AFSCME Local 101 General Unit MOU July 1, 2022 - June 30, 2026 (3863 : AFSCME

11.4.d
Packet Pg. 461 Attachment: Salary Resolution and Salary Schedules for AFSCME Local 101 General Unit MOU July 1, 2022 - June 30, 2026 (3863 : AFSCME

11.4.d
Packet Pg. 462 Attachment: Salary Resolution and Salary Schedules for AFSCME Local 101 General Unit MOU July 1, 2022 - June 30, 2026 (3863 : AFSCME

11.4.d
Packet Pg. 463 Attachment: Salary Resolution and Salary Schedules for AFSCME Local 101 General Unit MOU July 1, 2022 - June 30, 2026 (3863 : AFSCME

11.4.d
Packet Pg. 464 Attachment: Salary Resolution and Salary Schedules for AFSCME Local 101 General Unit MOU July 1, 2022 - June 30, 2026 (3863 : AFSCME

11.4.d
Packet Pg. 465 Attachment: Salary Resolution and Salary Schedules for AFSCME Local 101 General Unit MOU July 1, 2022 - June 30, 2026 (3863 : AFSCME

11.4.d
Packet Pg. 466 Attachment: Salary Resolution and Salary Schedules for AFSCME Local 101 General Unit MOU July 1, 2022 - June 30, 2026 (3863 : AFSCME

11.4.d
Packet Pg. 467 Attachment: Salary Resolution and Salary Schedules for AFSCME Local 101 General Unit MOU July 1, 2022 - June 30, 2026 (3863 : AFSCME

11.4.d
Packet Pg. 468 Attachment: Salary Resolution and Salary Schedules for AFSCME Local 101 General Unit MOU July 1, 2022 - June 30, 2026 (3863 : AFSCME

11.4.d
Packet Pg. 469 Attachment: Salary Resolution and Salary Schedules for AFSCME Local 101 General Unit MOU July 1, 2022 - June 30, 2026 (3863 : AFSCME

11.4.d
Packet Pg. 470 Attachment: Salary Resolution and Salary Schedules for AFSCME Local 101 General Unit MOU July 1, 2022 - June 30, 2026 (3863 : AFSCME

11.4.d
Packet Pg. 471 Attachment: Salary Resolution and Salary Schedules for AFSCME Local 101 General Unit MOU July 1, 2022 - June 30, 2026 (3863 : AFSCME

11.4.d
Packet Pg. 472 Attachment: Salary Resolution and Salary Schedules for AFSCME Local 101 General Unit MOU July 1, 2022 - June 30, 2026 (3863 : AFSCME

11.4.d
Packet Pg. 473 Attachment: Salary Resolution and Salary Schedules for AFSCME Local 101 General Unit MOU July 1, 2022 - June 30, 2026 (3863 : AFSCME

11.4.e
Packet Pg. 474 Attachment: Salary Resolution and Salary Schedules for AFSCME Local 101 Supervisory Unit MOU July 1, 2022 - June 30, 2026 (3863 :

11.4.e
Packet Pg. 475 Attachment: Salary Resolution and Salary Schedules for AFSCME Local 101 Supervisory Unit MOU July 1, 2022 - June 30, 2026 (3863 :

11.4.e
Packet Pg. 476 Attachment: Salary Resolution and Salary Schedules for AFSCME Local 101 Supervisory Unit MOU July 1, 2022 - June 30, 2026 (3863 :

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Packet Pg. 477 Attachment: Salary Resolution and Salary Schedules for AFSCME Local 101 Supervisory Unit MOU July 1, 2022 - June 30, 2026 (3863 :

11.4.e
Packet Pg. 478 Attachment: Salary Resolution and Salary Schedules for AFSCME Local 101 Supervisory Unit MOU July 1, 2022 - June 30, 2026 (3863 :

11.4.e
Packet Pg. 479 Attachment: Salary Resolution and Salary Schedules for AFSCME Local 101 Supervisory Unit MOU July 1, 2022 - June 30, 2026 (3863 :

City of Gilroy

STAFF REPORT
Agenda Item Title: Approval of Updated July 1, 2022, July 1, 2023, July 1, 2024, and July 1, 2025 Salary Schedules for Unrepresented
Confidential Non-Exempt Employees and Unrepresented
Hourly Part-Time/Temporary/Seasonal Employees
Meeting Date:July 5, 2022
From:Jimmy Forbis, City Administrator
Department:Human Resources Department
Submitted By:LeeAnn McPhillips, Administrative Services/HR Director/Risk Manager
Prepared By:LeeAnn McPhillips, Administrative Services/HR Director/Risk Manager
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 FY 23 to implement the terms of the full-time, unrepresented, confidential, non-exempt employees and unrepresented, hourly, part-time/temporary/seasonal employees salary resolutions, appropriating proposed expenditure amendments, and authorizing the inclusion of appropriate funds in the future FY 24, FY 25, and FY 26 budgets for salary and benefit expenditures related to the implementation of the salary resolutions.

11.5 Packet Pg. 480

b)Adopt a Resolution of the City Council of the City of Gilroy approving the July 1, 2022, July 1, 2023, July 1, 2024 and July 1, 2025 salary schedules for full-time, unrepresented, confidential, non-exempt employees.
c)Adopt a Resolution of the City Council of the City of Gilroy approving the July 1, 2022, July 1, 2023, July 1, 2024 and July 1, 2025 salary schedules for the unrepresented, non-exempt/hourly, part-time/temporary/seasonal employees.

EXECUTIVE SUMMARY
The City of Gilroy has groups of unrepresented employees who do not belong to a union/employee association. The non-management unrepresented employee groups are as follows:
a.)Full-Time, Confidential, Non-Exempt Employees (3 employees) b.)Part-Time/Temporary/Seasonal, Hourly Employees (approximately 20 employees)
The agenda item tonight is to review and approve the salary schedules for these two employee groups for the period FY 23 –FY 26.

Recruitment and retention of these unrepresented employees is also very important to the organization.

BACKGROUND
Consistent with Council direction, staff has prepared the resolutions and salary schedules for the two groups of unrepresented non-exempt/hourly employees of the City.The details for each group are noted below:

Full-Time,Unrepresented, Confidential, Non-Exempt Employees:

Consistent with the package for the AFSCME, Local 101 labor group, this group of three full-time, confidential, unrepresented employees will receive the same salary and benefit increases as identified for the AFSCME labor group and summarized below:
·Salary increases as follows:
·3% cost of living salary increase effective July 1, 2022 ·3% cost of living salary increase effective July 1, 2023 ·3% cost of living salary increase effective July 1, 2024 ·1% cost of living salary increase effective July 1, 2025 ·Add Retention Steps to the Full-Time, Confidential Unrepresented Employee salary schedules:

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·Step F (approximately 5% above current Step E) effective 7/1/22 –requires completion of 5 years of service and meets standards or better performance evaluation. Employee must have been at Step E for one year. ·Step G (approximately 5% above Step F) effective 7/1/23 –requires completion of 10 years of service and a meets standards or better performance evaluation. Employee must have been at Step F for one year. ·Step H (approximately 5% above Step G) effective 7/1/24 –requires completion of 15 years of service and a meets standards or better performance evaluation. Employee must have been at Step G for one year. ·City contribution to medical and dental premiums will be frozen at the January 1, 2022 rate.

All other benefits are consistent with the AFSCME, Local 101 General Unit labor group.

Part-Time/Temporary/Seasonal Hourly Employees:

This group of employees is primarily made up of hourly employees in the Recreation Department as well as other part-time/temporary/seasonal employees in other City departments. This group of employees will receive the following cost of living increases to their hourly rates as noted on the attached Part-Time/Temporary/Seasonal Hourly Salary Schedule:
·3% cost of living salary increase effective July 1, 2022 ·3% cost of living salary increase effective July 1, 2023 ·3% cost of living salary increase effective July 1, 2024 ·1% cost of living salary increase effective July 1, 2025

FISCAL IMPACT
The cost for the above increases is estimated as follows:
·Full-Time, Confidential, Non-Exempt Employees –the cost to implement the above referenced salary and benefit changes over the four-year period totals $42,182 or on average approximately $10,546 per fiscal year. Approximately 82% of the cost will be charged to the General Fund and 18% to other funds. ·Part-Time/Temporary/Seasonal Hourly Employees –the cost to implement the above referenced hourly pay rate changes over the four-year period totals $90,800 or on average approximately $22,700 per fiscal year. Approximately 44% of the cost will be charged to the General Fund and 56% to other funds.

Attachments:

1.Draft Resolution -Budget Amendment for NE Conf Unrep and PT Hourly Employees

2.Resolution and Salary Schedules for FT Unrepresented Confidential NE Employees July 1, 2022 -June 30, 2026

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3.Resolution and Salary Schedules for Unrepresented Part-Time Temporary Seasonal Hourly Employees July 1, 2022 -June 30, 2026

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RESOLUTION NO. 2022-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

GILROY AMENDING THE BUDGET FOR THE CITY OF
GILROY FOR 2022-2023 TO IMPLEMENT THE TERMS OF

THE FULL-TIME, UNREPRESENTED, NON -EXEMPT

EMPLOYEES AND UNREPRESENTED, HOURLY, PART -

TIME/TEMPORARY/SEASONAL EMPLOYEES SALARY
RESOLUTIONS FOR FY 23, APPROPRIATING PROPOSED

EXPENDITURE AMENDMENTS, AND AUTHORIZING THE

INCLUSION OF APPROPRIATE FUND S IN THE FUTURE
FY 24, FY 25, AND FY 26 BUDGETS FOR SALARY AND

BENEFIT EXPENDITURES RELATED TO THE

IMPLEMENTATION OF THE SALARY RESOLUTIONS
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 2022-2023 for the City of Gilroy in the staff report dated July 5, 2022 for the Approval of Salary Resolutions for Full-Time, Unrepresented, Confidential, Non-Exempt Employees and Unrepresented, Part -Time/Temporary/Seasonal, Hourly Employees for July 1, 2022 through June 30, 2026 .

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GILROY, AS FOLLOWS:

1.The appropriations for Fiscal Year 2022-2023 shall be increased by the Finance Director to implement the terms of the Salary Resolutions for Full-Time, Unrepresented, Confidential, Non-Exempt Employees and Unrepresented, Part -Time/Temporary/Seasonal, Hourly Employees pertaining to Fiscal Year 2022-2023 Budget of the City.

2.The appropriate funds to implement the remaining terms of the Salary Resolutions for Full- Time, Unrepresented, Confidential, Non -Exempt Employees and Unrepresented, Part- Time/Temporary/Seasonal, Hourly Employees shall be included in the FY 24, FY 25, and FY 26 future budgets.

11.5.a
Packet Pg. 484 Attachment: Draft Resolution - Budget Amendment for NE Conf Unrep and PT Hourly Employees (3883 : Salary Schedules for Unrepresented

Resolution No. 2022-XX
Budget Amendment Resolution –FT/Non-Exempt/Confidential and PT Hourly Unrepresented Employees City Council Regular Meeting | July 5, 2022

Page 2 of 2 ends

PASSED AND ADOPTED this 5th day of July, 2022 by the following roll call vote:

AYES:COUNCIL MEMBERS:

NOES:COUNCIL MEMBERS:

ABSTAIN:COUNCIL MEMBERS:

ABSENT:COUNCIL MEMBERS:

APPROVED:

Marie Blankley,Mayor
ATTEST:
_______________________
Thai Nam Pham, City Clerk

11.5.a
Packet Pg. 485 Attachment: Draft Resolution - Budget Amendment for NE Conf Unrep and PT Hourly Employees (3883 : Salary Schedules for Unrepresented

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Packet Pg. 486 Attachment: Resolution and Salary Schedules for FT Unrepresented Confidential NE Employees July 1, 2022 - June 30, 2026 (3883 : Salary

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Packet Pg. 487 Attachment: Resolution and Salary Schedules for FT Unrepresented Confidential NE Employees July 1, 2022 - June 30, 2026 (3883 : Salary

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Packet Pg. 488 Attachment: Resolution and Salary Schedules for FT Unrepresented Confidential NE Employees July 1, 2022 - June 30, 2026 (3883 : Salary

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Packet Pg. 489 Attachment: Resolution and Salary Schedules for FT Unrepresented Confidential NE Employees July 1, 2022 - June 30, 2026 (3883 : Salary

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Packet Pg. 490 Attachment: Resolution and Salary Schedules for FT Unrepresented Confidential NE Employees July 1, 2022 - June 30, 2026 (3883 : Salary

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Packet Pg. 491 Attachment: Resolution and Salary Schedules for FT Unrepresented Confidential NE Employees July 1, 2022 - June 30, 2026 (3883 : Salary

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Packet Pg. 492 Attachment: Resolution and Salary Schedules for Unrepresented Part-Time Temporary Seasonal Hourly Employees July 1, 2022 - June 30, 2026

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Packet Pg. 493 Attachment: Resolution and Salary Schedules for Unrepresented Part-Time Temporary Seasonal Hourly Employees July 1, 2022 - June 30, 2026

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Packet Pg. 494 Attachment: Resolution and Salary Schedules for Unrepresented Part-Time Temporary Seasonal Hourly Employees July 1, 2022 - June 30, 2026

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Packet Pg. 495 Attachment: Resolution and Salary Schedules for Unrepresented Part-Time Temporary Seasonal Hourly Employees July 1, 2022 - June 30, 2026

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Packet Pg. 496 Attachment: Resolution and Salary Schedules for Unrepresented Part-Time Temporary Seasonal Hourly Employees July 1, 2022 - June 30, 2026

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Packet Pg. 497 Attachment: Resolution and Salary Schedules for Unrepresented Part-Time Temporary Seasonal Hourly Employees July 1, 2022 - June 30, 2026

City of Gilroy

STAFF REPORT
Agenda Item Title: Payment of a One-Time Retention Incentive in the Amount of $3,000 for All Full-Time City of Gilroy Employees as Allowed by the American Rescue Plan Act of 2021
Meeting Date:July 5, 2022
From:Jimmy Forbis,City Administrator
Department:Human Resources Department
Submitted By:LeeAnn McPhillips, Administrative Services/HR Director/Risk Manager
Prepared By:LeeAnn McPhillips, Administrative Services/HR Director/Risk Manager
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
Adopt a Resolution of the City Council of the City of Gilroy approving a one-time retention incentive payment of $3,000.00 for all full-time City of Gilroy employees using funds provided by the American Rescue Plan Act of 2021 and amending the Fiscal Year 2022-23 adopted budget.

BACKGROUND
In March 2021 the Federal Government passed the American Rescue Plan Act (ARPA) of 2021, which had total funding of $1.9 trillion. This included $350 billion in funding to

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States, Local Governments, and Tribal Governments. This program is separate from the Federal grants targeting both institutions and businesses that were impacted by the Covid-19 Pandemic. In May 2021, the Gilroy City Council took action to accept $10.9M in ARPA funds and a staff report was presented to Council discussing the one-time funds.

The federal government has identified allowable uses for the ARPA funds which includes an expanded set of eligible uses to restore and support public sector employment by providing retention incentives. Over the last two years, most Gilroy employees gave up future raises, current compensation,and other benefits to help balance the City’s budget and avoid further layoffs.Recruiting and retaining excellent employees to serve the Gilroy community is a top priority for the organization. Gilroy, like other employers, has faced some challenges when trying to fill positions and trying to retain top talent. Therefore, following the ARPA rules, the Council can approve one- time employee payments in an effort to recognize and retain our workforce.

POLICY DISCUSSION
Should a portion (approximately 6.5%)of the one-time ARPA funds be used as a one- time retention incentive to retain the City’s high-quality employees?

ANALYSIS
The cost to hire and train a new employee can vary greatly depending upon the position. According to various human resources professional organizations, the average cost to hire a new full-time employee is approximately $4,500 and the cost to train a new hire is significantly more.It takes the average employee six to eight months to reach full productivity after being hired to a new job and a significant portion of that time is devoted to training the new employee. As such, the total cost of employee turnover typically ranges from 20-33% of the position’s salary or more.

Considering the above turnover costs and corresponding impact to the organization, providing a one-time retention incentive payment is a reasonable and prudent action to take at this time. The one-time retention incentive payment amount for each ongoing full-time employee who is employed for the full July monthly pay period (July 1, 2022 – July 31, 2022)is recommended to be $3,000. The intention is to communicate to the current City of Gilroy employees that their hard work and dedication to the community is appreciated. Employees can choose where they work, and there are many available jobs in today’s market,and this retention incentive sends a message of thanks to Gilroy employees for choosing to work for Gilroy versus another employer. Retaining employees is a priority for the organization and this one-time employee acknowledgement will go a long way in recognizing the Gilroy team and letting them know the Council wants them to stay working for the City of Gilroy.

Providing one-time payments to employees from the ARPA funds has occurred at many other public agencies over the last year. The one-time payment amounts have varied

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from $10,000 per employee to $500 per employee. Some agencies have made one- time lump sum payments, as being suggested here in Gilroy, while others have provided additional premium pay amounts per hour or per month over a period of time.

At this time, given the current labor market, retention bonuses are also common in some facets of the private sector.

ALTERNATIVES
The alternative is to not provide the one-time retention incentive payment of $3,000 to full-time City of Gilroy employees.

FISCAL IMPACT/FUNDING SOURCE
The cost to provide this one-time payment to approximately 235 full-time employees is $705,000. This amount is about 6.5% of the $10.9M in ARPA funding received. While the payment is considered taxable income to the employee, it is not reported to CalPERS for retirement. And, since the payment is not part of the negotiated labor agreement, it is not included in the employee’s regular rate of pay for purposes of applicable overtime calculations.

NEXT STEPS
If approved, the one-time retention incentive payment will be included with the next employee payroll to be issued on August 1, 2022.

Attachments:

1.Draft Resolution Authorizing a One-Time Retention Incentive Payment for Full-Time Emmployees Using ARPA Funds

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RESOLUTION NO. 2022-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

GILROY APPROVING A ONE-TIME RETENTION INCENTIVE

PAYMENT FOR CURRENT, ONGOING, FULL -TIME CITY OF

GILROY EMPLOYEES USING AMERICAN RESCUE PLAN
ACT FUNDING AND AMENDING THE FISCAL YEAR 2022 -23

ADOPTED BUDGET
WHEREAS, the American Rescue Plan Act (ARPA) of 2021 was signed into law on March 11, 2021; and
WHEREAS, the ARPA, amongst various other provisions, established the Coronavirus State and Local Fiscal Recovery Funds (SLFRF) to provide the state and local governments with resources needed to respond to the pandemic and its economic impacts; and WHEREAS, the City of Gilroy experienced a negative economic impact as a result of the Covid-19 pandemic, which resulted in the implementation of a General Fund Recovery Plan and included compensation and benefit concessions from City employees; and WHEREAS, the City Council of the City of Gilroy accepted $10.9M in funding from ARPA in May of 2021; and
WHEREAS, the Department of the Treasury has established the Final Rule which outlines provisions of eligible and ineligible uses of the ARPA funds; and WHEREAS, the Final Rule allows the use of ARPA funds for employee retention incentives to restore and support government employment ; and WHEREAS, the City Council of the City of Gilroy wishes to provide a one-time Retention Incentive to all ongoing, full-time City of Gilroy employees utilizing a portion of the ARPA funds received; and
WHEREAS, the City Council of the City of Gilroy does establish salaries, benefits, and other payments for city officers and employees by resolution ; and 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.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GILROY, AS FOLLOWS:

1.All current, ongoing, full-time City of Gilroy employees shall receive a one- time Retention Incentive payment in the amount of $3,000.00 if employed for the full July, 2022 pay period of July 1, 2022 through, and including, July 31, 2022.

11.6.a
Packet Pg. 501 Attachment: Draft Resolution Authorizing a One-Time Retention Incentive Payment for Full-Time Emmployees Using ARPA Funds (3884 : One-

Resolution No. 2022-XX
One-Time Employee Retention Incentive Payment
City Council Regular Meeting | July 5, 2022

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2.Authorize the City Administrator to direct the disbursement of the one -time Retention Incentive payment (taxable income) via the payroll checks to be issued on August 1, 2022.

3.That the City’s previously adopted Fiscal Year 2022-23 Budget, as the same has been amended to date, is hereby further amended .

4.That the City Clerk is hereby authorized and directed to forward a copy of this Resolution to the City’s Finance Director, who i s hereby authorized and directed to take all actions necessary to implement the terms of this Resolution pertaining to the Fiscal Year 2022-23 Budget of City.

PASSED AND ADOPTED this 5th day of July, 2022 by the following roll call vote:

AYES:COUNCIL MEMBERS:

NOES:COUNCIL MEMBERS:

ABSTAIN:COUNCIL MEMBERS:

ABSENT:COUNCIL MEMBERS:

APPROVED:

Marie Blankley,Mayor
ATTEST:
_______________________
Thai Nam Pham, City Clerk

11.6.a
Packet Pg. 502 Attachment: Draft Resolution Authorizing a One-Time Retention Incentive Payment for Full-Time Emmployees Using ARPA Funds (3884 : One-

Gilroy City CouncilJuly 5, 2022

Gilroy City Council
July 5, 2022