Agenda packet — Gilroy City Council, March 6, 2023 (part 2 of 2)

the reduction in the overall sign area, justifies a 5 foot height increase above the normal Zoning standards.

5. The minor increase in height, and reduction in sign area, would not create adverse effects on surrounding areas. The sign modification would not create any potential traffic hazards, would maintain a high quality appearance, remains in harmony with the development, presents a favorable image of the city and promotes a high quality, well design sign that is in scale with the project and in keeping with similar signage along the freeway.

6. The amendment conforms to the intent of the original planned unit development approval.

7. Pursuant to CEQA Guidelines Section 15162, the Planning Commission determines that the project is covered by the Mitigated Negative Declaration prepared for the shopping center planned unit development project (SCH#2021060521), and that no subsequent environmental document shall be required, given that substantial evidence in the record demonstrates none of the determinations that would exclude the project from coverage by Section 15162 are applicable.

NOW, THEREFORE, BE IT FURTHER RESOLVED that the Planning Commission of the City of Gilroy hereby recommends to the City Council approval of AS 22-24, subject to the following condition:
 AS 20-20 Condition of approval No. 1 is amended to note that Sheet 11 (Pylon Sign) of the Comprehensive Sign Plan, dated 3.16.2021 prepared by Bootz & Duke, shall be replaced with the revised Sheet 11 allowing a Pylon Sign with a maximum height of 80 feet, maximum overall width of 34 feet, and sign area of 515 square feet.

PASSED AND ADOPTED this 2
nd day of February, 2023 by the following roll call vote:

AYES: Elle, Kushner, Leongardt, Lewis, Montez, Ramirez, Chair Bhandal NOES: None
ABSTAIN: None
ABSENT: None
ATTEST: APPROVED:
_________________________________ __________________________________ Sharon Goei, Secretary Manny Bhandal, Chairperson
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Project AS 22-24 Attachment:

Link to MND SCH # 2021060521

1. Click: https://www.cityofgilroy.org/298/Development-Activity-Projects

2. Select the 10th and Chestnut Street Commercial Project from the list of projects

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1 RESOLUTION NO. 2023-__

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY TO

APPROVE AN AMENDMENT TO THE PLAZA ALLIUM PUD SIGN
PROGRAM FOR PROPERTY LOCATED AT 450 E NINTH STREET,

CHESTNUT STREET AND E TENTH STREET/AUTOMALL PARKWAY,
APN: 841-66-36, 37, 38 AND 39 (FILE NUMBER AS 22-24)
WHEREAS, On October 18, 2022 an application was filed by Evergreen 10th and Chestnut LLC proposing to amend the commercial planned unit development sign program standards adopted for the subject site under original approval AS 20-14; and WHEREAS, On September 20, 2021, an initial study/mitigated negative declaration was certified as the environmental document for the project, in compliance with the California Environmental Quality Act; and
WHEREAS, the Planning Commission held a duly noticed public hearing on February 2, 2023, at which time the Planning Commission received and considered the staff report as well as all evidence received including written and oral public testimony related to the project; and WHEREAS, the Planning Commission recommended approval of the project to the City Council by a unanimous vote; and
WHEREAS, the City Council held a duly noticed public hearing on March 6, 2023, at which time the City Council received and considered the staff report as well as all evidence received including written and oral public testimony related to the project; and WHEREAS, the location and custodian of the documents or other materials which constitute the record of proceedings upon which the project approval is based is the Community Development Department, Planning Division.

NOW, THEREFORE, BE IT RESOLVED that the City Council hereby makes the following findings, consistent with Municipal Code Section 30.50.50 (Planned Development Approval), in support of AS 22-24, amending sign program standards established by Planned Unit Development approval AS 20-14:

FINDINGS

1. The findings for PUD approval AS 20-14 in Resolution No 2021-53 remain valid with the amendment to the PUD sign standards, based on the additional findings made below.

2. The amendment as proposed and conditioned conforms to the Gilroy general plan in terms of general location and standards of development, as the modification maintains the same design quality, scale and appearance from the freeway, thus remains consistent with Policy LU 8.7.

3. The amendment continues to support the retail commercial development approved for the site which fills the specific need of the area.

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-2-
RESOLUTION NO. 2023 - __

4. The signage would continue to provide a harmonious, integrated plan and together with the reduction in the overall sign area, justifies a 5 foot height increase above the normal Zoning standards.

6. The amendment conforms to the intent of the original planned unit development approval.

NOW, THEREFORE, BE IT FURTHER RESOLVED that the City Council hereby approves AS 22-24, subject to the following condition:
• AS 20-20 Condition of approval No. 1 is amended to note that Sheet 11 (Pylon Sign) of the Comprehensive Sign Plan, dated 3.16.2021 prepared by Bootz & Duke, shall be replaced with the revised Sheet 11 allowing a Pylon Sign with a maximum height of 80 feet, maximum overall width of 34 feet, and sign area of 515 square feet.

PASSED AND ADOPTED this 6th day of March, 2023 by the following roll call vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

APPROVED:
__________________________
Marie Blankley, Mayor
ATTEST:
_________________________________
Thai Pham, City Clerk

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City of Gilroy

STAFF REPORT
Agenda Item Title: Approval of the Updated City of Gilroy Purchasing Policy
Meeting Date: March 6, 2023
From: Jimmy Forbis, City Administrator
Department: Finance
Submitted By: Harjot Sangha, Finance Director
Prepared By: Harjot Sangha, Finance Director
STRATEGIC PLAN GOALS Develop a Financially Resilient Organization

RECOMMENDATION
Approve the updated City of Gilroy Purchasing Policy.

EXECUTIVE SUMMARY
The City placed a ballot measure, also known as Measure D, on the November 8, 2022, general election ballot to amend certain sections of the City’s Charter (“Charter”) relating to the procurement of public projects and modernization of the public noticing and bid solicitation requirements.

The results of the general elections were certified on December 8, 2022, and the Measure passed with 72% approval. As a result, staff is returning with the City’s Purchasing Policy (“Policy”) that incorporates the related changes.

ANALYSIS
The changes to the Charter included the following:

1. Increasing the formal bidding threshold for public projects from $35,000 to be consistent with the California Public Contract Code.
a. Policy sections updated: 3.3, 4.2, 4.4, and 4.5

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Approval of the Updated City of Gilroy Purchasing Policy City of Gilroy Page 2 of 4 February 27, 2023 5
8 The California Public Contract Code section 22032 outlines the dollar amount thresholds for formal and informal bidding of Public Projects by local agencies. The Code allows local agencies to bid informally on public projects that cost up to $200,000, with projects with costs more than $200,000 required to be let to contract by formal bidding procedures. The approved Charter amendment attained consistency with these thresholds.

Now, the Purchasing Policy is being updated to be consistent. It is important to note that although the formal bidding dollar threshold for public projects is increased to be consistent with the California Public Contract Code (currently $200,000), the dollar threshold authority to award City contracts in the existing purchasing policy will remain the same. The City Council will continue to award purchases or contracts for goods and services, now including public works construction contracts, of $100,000 or more

2. Adding best-value contracting as a procurement option. a. Policy sections updated: 1.1 and 4.5
The City’s existing formal bidding procedures required selecting a public project contractor based exclusively on the lowest responsive and responsible bidder (the lowest price). The approved Charter amendment allows the City to utilize Best Value Contracting (BVC) as a procurement option for public works projects. Using BVC allows selecting a contractor on criteria other than just the price. The additional objective criteria typically consider the contractor’s qualifications and experience, with the cost being an element but not the sole deciding factor. The BVC procurement will utilize the City’s existing formal bidding process for public works projects where bids are solicited, and contractors submit sealed bids with a price proposal. The key difference is that the BVC procurement will require the contractors to submit qualifications and experience information for evaluation. Unlike the current process where the lowest apparent bidder is announced at the bid opening for public projects, under the BVC procurement process, the pricing information will remain sealed until the panel completes scoring the bidder’s qualifications and experience. This ensures the pricing information does not influence the panel’s evaluations. Ultimately, the evaluation criteria established to score qualifications and pricing information is utilized to select the winning contractor.

3. Adding design-build contracting as a procurement option. a. Policy sections updated: 1.1 and 4.2
The City’s existing bidding process requires separate contracting for the two general phases of a public project – design and construction. For example, when developing a public project, the City first contracts with a design firm to design the project plans and specifications. Once

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Approval of the Updated City of Gilroy Purchasing Policy City of Gilroy Page 3 of 4 February 27, 2023 5
8 developed, the City solicits competitive bids from contractors for the project's construction according to the designed plans and specifications.

Design-build is a public project procurement method in which a public project's design and construction are bid and procured from a single entity.

The approved Charter amendment allows for design-build contracting for public projects equal to or in excess of $1 million, provided the process for competitively selecting a design-build contractor is consistent with the California Public Contract Code.

4. Modernizing the public noticing/bid solicitation rules in the Charter. a. Policy sections updated: 4.5 and 4.6
The existing language for public projects contract procurement required the bids to be published in a newspaper of general circulation in the City.

The approved charter amendment expands these provisions to add an electronic publication, publication in a trade journal, and use of a list of qualified contractors as additional options that may be used in addition to, or in-lieu of under certain circumstances, a newspaper of general circulation. In addition, the approved amendment removes the daily requirement of a newspaper of general circulation since no newspapers serving Gilroy publish every day of the week and updates the definition of “newspaper of general circulation within the City” to be consistent with the California Government Code.

Other Changes to Purchasing Policy

1. Increased staff level of award authority from $2,999 to $4,999 a. Policy sections updated: 3.3, 4.2, 4.4, and 4.9
The current purchasing policy grants staff the authority to make purchases up to $2,999. Given that the cost of basic/small parts/products and services has increased in recent years, the staff recommends increasing this amount to $4,999.The Policy still requires staff to make such procurements by price shopping to ensure the City receives the best value in exchange for public funds.

2. Administrative/Clarification Changes
a. Policy sections updated: 3.3, 3.6, 4.5, 4.6, 7.2, 8, and 9.1 Staff is also recommending other minor updates to various sections that are administrative in nature or provide further clarification.

Notable items include:
• Addition of new definitions to the glossary with respect to the updated charter amendments

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Approval of the Updated City of Gilroy Purchasing Policy City of Gilroy Page 4 of 4 February 27, 2023 5
8 • Updating local preference percentage (5%) to be consistent throughout the document
• Omitting the existing central supply store section as it is no longer relevant/applicable
• Adding requirements for prevailing wage language to be included in contracts
• Updated section and page references throughout the document based on the updated table of contents

ALTERNATIVES
There are two types of changes being proposed to the purchasing Policy 1) consistency with the voter-approved Charter amendments; and 2) staff-initiated administrative/clarification updates.

The proposed changes related to the Charter amendment are not recommended to be further amended by Council as they align with the respective updated Charter sections and are consistent with the California Public Contract Code, as applicable.

Council can amend or reject the staff-initiated administrative/clarification updates. This is not recommended, as the proposed changes would further streamline processes for procuring small purchases. Other updates merely clarify definitions or ambiguities in interpreting the existing policy language.

FISCAL IMPACT/FUNDING SOURCE
There is no fiscal impact to updating the Purchasing Policy. The effort was accommodated within the Finance Department’s existing work plan. The Policy updates are consistent with the recently approved Charter amendments, which primarily update the procurement process for Public Projects.

NEXT STEPS
The Policy will be posted on the City’s website and communicated internally to the organization upon approval. Related training will be provided to City staff on the changes to the procurement process.

Attachments:

1. Updated Purchasing Policy – March 2023

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RESOLUTION NO. 2022-36

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF GILROY CALLING AND GIVING NOTICE OF, ON ITS

OWN MOTION, THE SUBMISSION TO THE ELECTORS

OF THE CITY OF GILROY AT A SPECIAL MUNICIPAL

ELECTION, TO BE CONSOLIDATED WITH THE
STATEWIDE GENERAL ELECTION ON NOVEMBER 8,
2022, A BALLOT MEASURE PROPOSAL TO AMEND
SECTIONS 1109, 1111 AND 1503 OF THE CITY OF GILROY

CITY CHARTER TO MODIFY CONSTRUCTION

CONTRACT PROCUREMENT AND THE BIDDING

PROCESS
WHEREAS, a General election on Tuesday, November 8, 2022, has been called by Resolution No. 2022-25, adopted on Monday, May 16, 2022, and WHEREAS, pursuant to authority provided by the California Constitution, Article XI and the Government Code, Title 4, Division 2, Chapter 2 ( commencing at Section 34450) and the Election Code Division 9, Chapter 3, Article 3 ( commencing at Section 9255) of the State of California, the City Council of the City of Gilroy desires to submit to the voters a proposed charter amendment relating to construction contract procurement and the bidding process, and to place the measure on the ballot for the next General Election on November 8, 2022; and WHEREAS, the City Council is authorized and directed by statute to submit the proposed charter amendment to the voters.

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

Section 1. A Special Municipal Election is hereby called and ordered to be held in the City of Gilroy on November 8, 2022 to vote on a ballot measure to amend Sections 1109 and 1111 of Article XI, and Section 1503 of Article XV of the Gilroy City Charter to modify construction contract procurement and the bidding process, which shall be deemed ratified, pursuant to Government Code Section 34459, if a majority of the electors voting on the measure vote to approve the measure. The full text of the proposed City Charter amendment is attached as Exhibit A and incorporated by reference in this Resolution.

Section 2. The ballot measure will be placed on the ballot for the November 8, 2022 election which shall be substantially in the following form:

MEASURE_______
Construction Contract Procurement and Public Noticing Modernization Shall the City of Gilroy Charter be amended to:

Modify the bidding threshold from $ 35,000 to the
amount authorized by California Public Contract Code
Section 22032;
Establish authority to procure for Design- Build and
Best Value contracts;
Allow modernization of public noticing?
YES
NO
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Resolution No. 2022- 36
Charter Amendment
City Council Regular Meeting | June 20, 2022

Page 2 of 3 ends

Section 3. That the vote requirement for the measure to pass is a majority (50% +1) of the votes cast.

Section 4. The City Council hereby requests the Board of Supervisors of the County of Santa Clara, California to permit the Registrar of Voters of Santa Clara County to render to the City of Gilroy such services as the City Clerk of the City of Gilroy may request relating to the conduct of the above-described Special Municipal Election with respect to the following matters:

Coordination of election precincts, polling places, voting booths, voting systems and election officers; printing and mailing of voter pamphlets; preparation of the tabulation of the results of votes cast and all other services necessary to conduct an election.

Section 5. The City Council hereby requests, consents to, and orders that the Registrar of Voters of the County of Santa Clara consolidate the Special Municipal Election called and ordered to be held on November 8, 2022 with any other election that may be held on that date.

Section 6. The City Council hereby authorized the Board of Supervisors of Santa Clara County, California to canvass the returns of the Special Municipal Election.

Section 7. The City Council hereby directs the City Clerk to reimburse the County of Santa Clara in full for any of the above- mentioned services which may be performed by the Registrar of Voters, upon presentation of a bill to the City, with funds already appropriated to the City Clerk for election purposes.

Section 8. The City Council hereby directs the City Clerk to take all actions necessary to facilitate the Special Municipal Election in the time frame specified herein and comply with provisions of the Elections Code of the State of California, City Charter, Ordinances, Resolutions and Policies regarding the conduct of the Special Municipal Election.

Section 9. Pursuant to Section 12111 of the California Elections Code, the City Council hereby directs the City Clerk to: ( a) cause a synopsis of the proposed measure to be published at least one time not later than one week before the election in the Gilroy Dispatch, a newspaper of general circulation within the City of Gilroy; ( b) consolidate the Notice of Measure to be Voted with the Notice of Election into a single notice; (c) cause copies of the full text of the proposed measure set forth in the attached Exhibit A to be printed in the Voter Information Portion of the Sample Ballot; (d) cause copies of the Sample Ballot to be mailed to each of the qualified electors of the City of Gilroy; and ( e) do all other things required by law to submit the specified measure above to the electors of the City of Gilroy at the Special Municipal Election, including causing the full text of the proposed measure to be made available in the Office of the City Clerk at no cost and posted on the City Clerk's website.

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Resolution No. 2022- 36
Charter Amendment
City Council Regular Meeting | June 20, 2022

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Section 10. Pursuant to Sections 9282 and 9285 of the California Elections Code, the City Council hereby approves the submittal of direct arguments for and against the ballot measure, if any, and authorizes the City Council or any member or members of the Council to author and submit a ballot measure argument in favor of the ballot measure and approves the submittal of rebuttal arguments in response to arguments for and against the ballot measure and authorizes the City Council or any member or members of the City Council to author and submit a rebuttal, if any.

Section 11. The City Council hereby directs the City Clerk to transmit a copy of the measure qualifying for placement on the ballot to the City Attorney for preparation of an impartial analysis.

Section 12. The City Council hereby acknowledges that the consolidated election will be held and conducted in the manner prescribed in California Elections Code Section 10418.

Section 13. This resolution shall take effect immediately upon adoption.

PASSED AND ADOPTED this 20th day of June, 2022 by the following roll call vote:

AYES: COUNCIL MEMBERS: ARMENDARIZ, BRACCO, HILTON,
LEROE-MUÑOZ, TOVAR, BLANKLEY
NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS: MARQUES
APPROVED:

Marie Blankley, Mayor
ATTEST:

Thai Nam Pham, City Clerk
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EXHIBIT A TO RESOLUTION NO. 2022-36
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 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. Publication in a 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;
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
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:

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EXHIBIT A TO RESOLUTION NO. 2022-36
4890-7867-2418v1
NON-BC\04706083
Section 1111. Contracts for Official Advertising.

The City shall procure services for the official advertising in a newspaper of general circulation in the City in accordance with the California Government Code and the City’s purchasing policy.

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.

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CERTIFICATE OF THE CLERK
I, THAI NAM PHAM, City Clerk of the City of Gilroy, do hereby certify that the attached Resolution No. 2022-36 is an original resolution, or true and correct copy of a city Resolution, duly adopted by the Council of the City of Gilroy at a Regular Meeting of said held on Council held Monday, June 20, 2022, at which meeting a quorum was present.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of the City of Gilroy this Monday, June 20, 2022.

Thai Nam Pham, CMC, CPMC
City Clerk of the City of Gilroy
Seal)
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Updated: March 6, 2023
March 2020
City of Gilroy
Purchasing Policy

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Purchasing Policy
Table of Contents
i
Table of Contents
Section 1 – Purchasing Policy Overview .............................................................................................. 1

1.1 Purchasing Policy Overview .................................................................................................... 1 Section 2 – Code of Conduct and Ethics ............................................................................................... 3

2.1 Code of Conduct Overview ...................................................................................................... 3

2.2 Conflict of Interest ...................................................................................................................... 3

2.3 No Gratuities ............................................................................................................................... 3

2.4 Conduct with Vendors .............................................................................................................. 3

2.5 Disciplinary Actions for Policy Violations.............................................................................. 4 Reference .................................................................................................................................... 4 Section 3 – Purchasing System Authorities and Responsibilities ................................................... 5

3.1 Decentralized Purchasing System Overview ......................................................................... 5

3.2 General Categories of Purchases .............................................................................................. 5

3.3 Authority to Award Contracts ................................................................................................. 6

3.4 Responsibilities of Purchasing Division .................................................................................. 7

3.5 Responsibilities of City Staff ..................................................................................................... 7

3.6 Authorized and Unauthorized Purchases .............................................................................. 8

3.7 Contracting Requirements ........................................................................................................ 9 Section 4 – Procurement Mthods.......................................................................................................... 11

4.1 Procurement Methods Overview ........................................................................................... 11

4.2 Selecting the Appropriate Procurement Method ................................................................. 11

4.3 Purchasing Card Program ................................................................................................... 13

4.4 Informal Procurement Procedures ......................................................................................... 14

4.5 Formal Bidding Procedures .................................................................................................... 15

4.6 Request for Proposals .............................................................................................................. 19

4.7 Two-step Competitive Bidding Processes ............................................................................ 21

4.8 Emergency Procurement ......................................................................................................... 22

4.9 Purchases Exempt from Competitive Bidding ................................................................. 2223

4.10 Cooperative Purchases .......................................................................................................... 24 Section 5 – Specification Development .............................................................................................. 26

5.1 Specifications for Competitive Bidding – Overview ........................................................... 26 Section 6 – Sourcing and Standardization ......................................................................................... 28

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Table of Contents
ii

6.1 Sourcing and Standardization Overview ............................................................................. 28

6.2 Single and Sole Sourcing ......................................................................................................... 28

6.3 Standardization ........................................................................................................................ 28 Section 7 – Special Policies and Programs ......................................................................................... 29

7.1 Special Programs and Policies Overview ............................................................................. 29

7.2 Local Purchasing Preference ................................................................................................... 29

7.3 Minority, Disabled and Woman Owned Business Policy Statement ................................ 30

7.4 Environmentally Preferable Purchasing Policy ................................................................... 31

7.5 Policies and Procedures for Purchases Utilizing Federal Grant Funding ........................ 31 Section 8 – Purchasing-related Instructions and Procedures .......................................................... 32

8.1 Bid/Proposal Protest Procedures ............................................................................................ 32

8.2 Certificates of Insurance and Coverage Requirements ....................................................... 33

8.3 Instructions to Bidders............................................................................................................. 33

8.5 Lease, Rental and Lease-to-Purchase Procurements ........................................................... 34

8.5 Life Cycle Cost Analysis .......................................................................................................... 34

8.6 Service Provider Evaluation ................................................................................................... 35

8.7 Surplus Property Disposal ...................................................................................................... 35

8.8 Used Automobile Purchases ................................................................................................... 37 Section 9 – Glossary of Terms............................................................................................................... 38

9.1 Definitions ................................................................................................................................. 38

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Purchasing Policy
Section 1 – Purchasing Policy Overview
1 Section 1 – Purchasing Policy Overview

1.1 Purchasing Policy Overview
The purpose of this manual is to provide basic information for procuring goods and services consistent with adopted policies and procedures, and best practices. This manual is intended to provide sufficient information and reference detail to enable City employees to be fully aware of, and comply with, City purchasing policies, and to effectively participate in the purchasing program.

This section of the purchasing policies and procedures manual establishes the legal requirements of the procurement function within the City organization and establishes procurement expectations to safeguard fairness, system integrity and ethical practices.

1. Legal Requirements. The legal bases for the purchasing system are established below.  Several sections of the City Charter enumerate authorities relative to purchasingrelated functions:
 Section 703. Establishes that the City Administrator:
 Can enter into contracts on behalf of the city involving Councilappropriated expenditures and bid or proposals approved by Council.
 Will implement a citywide purchasing system.
 Section 800. Requires in paragraph 4 that purchasing rules and regulations be included in the administrative code which shall be amended by ordinance as necessary.
 Section 1104. Specifies in paragraph 3 that during any fiscal year city employees cannot spend or incur any obligations to spend money for any purpose without a budgeted appropriation.
 Section 1109. Contains requirements for bidding letting public works construction projects, including best value and design-build contracting.  Section 1110. Contains certain requirements that bidders must follow when bidding on city projects.

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Section 1 – Purchasing Policy Overview
2  The City Code Section 2.43(c) establishes the responsibilities of the purchasing function.

2. Expectations of Fair and Open Procurement.
 Secure goods and services at the lowest possible cost commensurate with the quality needed.
 Endeavor to obtain the most open competition possible for all purchases.  Encourage competitive pricing from responsive and responsible business providers that are qualified, capable and willing to meet the city’s requirements.  Fulfill the requirements of Charter and City Code in the procurement of goods and services.
 Safeguard the city’s reputation for fairness, integrity and ethical practices.

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Purchasing Policy
Section 2 – Code of Conduct and Ethics
3 Section 2 – Code of Conduct and Ethics

2.1 Code of Conduct Overview
All employees are responsible for impartially assuring fair competitive access to city procurement opportunities by responsible suppliers and contractors. In addition, all employees shall conduct themselves in a manner that avoids any impropriety, or appearance of impropriety, and that fosters the highest level of public confidence in the integrity of Gilroy’s purchasing system.

2.2 Conflict of Interest
No employee shall participate in a city procurement when the employee knows that:

1. The employee or the employee’s spouse, domestic partner, child, stepchild, parent or stepparent will benefit financially from the procurement; and/or

2. The employee or the employee’s spouse, domestic partner, child, stepchild, parent or stepparent is negotiating or has an employment arrangement contingent on or will be affected by the procurement.

Upon discovery of an actual or potential conflict of interest, an employee shall immediately withdraw from further participation in the procurement.

2.3 No Gratuities
No city employee shall solicit, demand, accept or agree to accept a gift of goods or services, payment, loan, advance, deposit of money, or employment offer presented, promised in return for, or in anticipation of favorable consideration in a city procurement.

2.4 Conduct with Vendors
Conduct with vendors who provide goods or services to the city shall be fair, open and transparent. City employees shall:

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Purchasing Policy
Section 2 – Code of Conduct and Ethics
4 1. Refrain from showing favoritism to vendors or being unduly influenced.

2. Safeguard confidentiality when required to do so.

3. Select vendors on the basis of meeting appropriate and fair criteria.

2.5 Disciplinary Actions for Policy Violations
City employees shall abide by and be accountable for the codes of conduct established in this section. Policy violations may result in disciplinary actions in accordance with the city’s established procedures, consistent with state law.

Governing Law(s) and Reference Documents

1. Section 809 of the City Charter

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Section 3 – Purchasing System Authorities and Responsibilities 5 Section 3 – Purchasing System Authorities and Responsibilities

3.1 Decentralized Purchasing System Overview
The city has adopted a decentralized purchasing system. This means that for most purchases, requesting departments can directly solicit bids or proposals and place orders with suppliers, subject to the limitations established in policy and subject to the approval of the appropriate award authority. Nothing precludes staff from seeking procurement assistance from the finance director or purchasing coordinator, especially to clarify policies, processes and procedures.

In a decentralized purchasing system, it is very important that all employees understand and abide by the city’s procurement rules/polices and ensure their fair and consistent application.

3.2 General Categories of Purchases
City purchase categories generally consist of the following categories, for which different procurement methods may apply (see Section 4, Procurement Methods, page 11):

1. Goods. The purchase of goods consists of materials, equipment and supplies needed by any department.

2. Services. City staff may require contracts for services, which fall into two categories:
a. General Services. Services rendered such as custodial services, building/ equipment maintenance, and machinery/equipment rental, excluding contracts for public works projects or professional services.
b. Professional Services. Services provided by a person or firm engaged in a profession based on highly specialized and/or technical knowledge or skill, such as the professions of accountant, attorney, artist, architect, landscape architect, construction manager, engineer, environmental consultant, dentist, physician, training or educational consultant, or land surveyor, and whose services are considered distinct and unique to such a degree that bidding of such services may not be feasible, if appropriately justified and documented (see Subsection

4.9, Exemptions from Competitive Bidding, page 220).

3. Public Works Projects. Public works pertain to the construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind, including demolitions, and the construction and installation of drainage systems, lighting and signaling systems, sewer and water systems, and park and

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Section 3 – Purchasing System Authorities and Responsibilities 6 recreational facilities. Maintenance required to preserve a public improvement is not considered a public work.

3.3 Authority to Award Contracts
The following section outlines the various contract award authorities established under the decentralized Purchasing System.

1. Award Authority. Contract award authority is established by dollar threshold for each of the following entities:
a. City Council. Purchases or contracts for goods and services, including public works construction contracts, of $100,000 or more, and public works contracts exceeding $35,000, must be awarded by the City Council. b. City Administrator. Purchases or contracts, including public works construction contracts, up to $99,999 may be awarded by the City Administrator, with the exception of public works contracts exceeding $35,000.
c. Department Heads. As authorized by the City Administrator, department heads may make purchases and enter into contracts for goods and services, including public works construction contracts, up to $49,999, and for public works construction contracts up to $34,999.
d. Staff. Purchases up to $42,999 may be made at the staff level as designated by department directors.

2. Authority to Legally Bind City. Unless specifically authorized as established in this section or elsewhere in adopted and written City policy, staff other than the City Administrator and department heads cannot enter into contractual arrangements to purchase goods or services or otherwise legally bind the City for such purchases.

3. Award Authority Determined by One Transaction. For the purpose of determining the appropriate award authority, contract amounts are defined by what constitutes a single or one transaction. This rule also applies to competitive bidding (the estimate of dollar value of the transaction dictates the level of bidding required). a. One-time Purchases. Each discrete, one-time purchase is a single transaction. b. Blanket Purchase Orders. The contract term of a blanket purchase order is generally considered a single transaction, subject to total contract length requirements established in a competitive bidding process. See also Subsection

3.7.6.b on page 99.

Examples: A blanket order in the amount of $10,000 that is issued for vehicle parts for a one-year period is a single transaction. Subsequent annual renewals of the blanket order are considered separate, single transactions.

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Section 3 – Purchasing System Authorities and Responsibilities 7 A five-year blanket order for on-call maintenance work in the amount of $25,000 each year (for a total of $125,000) requires Council approval. c. Contract Amendments. Dollar increases to existing contracts require the sum of the original contract to be added to the amount of the amendment to determine the single transaction value.

Example: The City Administrator awards a contract for $75,000 and a $30,000 amendment is required. The resulting transaction is $105,000, now requiring Council approval.

3.4 Responsibilities of Purchasing Division

1. Purchasing Function. As established in Section 2.43(c) of the City Code, the purchasing division is responsible for:
a. Purchasing materials, supplies, and equipment (goods) and services for use by all departments when appropriate.
b. Preparing standard specifications for goods and services wherever possible. c. Maintaining a purchase order system and issuing purchase orders as required. d. Verifying that all bids and proposals are in accordance with policy requirements. e. Establishing and operating a system of stores for the bulk purchase of commonly used items.
f. Selling surplus personal property of the City, subject to the determinations and approval of department heads, the City Administrator and the City Council.

3.5 Responsibilities of City Staff

1. Responsibilities of all employees. As keepers of the public trust, all City employees are required to discharge their duties fairly, impartially and with the highest degree of integrity. In support of these concepts as they apply to the purchase of goods and services, City staff shall:
a. Clearly identify procurement needs and the availability of funding. b. Work with the purchasing coordinator to develop suitable competitive specifications.
c. Participate in the evaluation of bids and proposals as required. d. Inspect goods delivered and services performed to determine conformity with established requirements and contractual obligations.
e. Authorize payment for conforming goods and services. f. Notify the purchasing coordinator of non-conforming goods or services. g. Document tangible or intangible value to the city when requisitioning goods or services without competition.
h. Recognize that fair and open competition results in better value to the city. i. Understand and be accountable for the policies and procedures established for purchasing goods and services.

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Section 3 – Purchasing System Authorities and Responsibilities 8 2. Purchasing Requisition Required. Goods and services purchases that will require a contract, purchase order, or blanket purchase order, including public works construction, must be initiated with a properly documented and approved purchase requisition which includes:
a. Concise description of the purchase which adequately communicates need. b. Actual or estimated dollar amount.
c. Valid charge/project and object number.
d. Verification of available funding or identification that funding is needed. e. Price quotes with recommended vendor selection and appropriate award justification.
f. Bid exemption documentation as required.

3.6 Authorized and Unauthorized Purchases
This section defines authorized and unauthorized purchases and how they are memorialized and establishes that employees can be held responsible for unauthorized purchases that are not ratified by the appropriate award authority.

1. Authorized Purchases. Purchases are authorized only when the appropriate award authority has approved the purchase. Only the City Council, City Administrator, and department heads, or authorized designee in writing from the City Administrator, may legally bind the city to a contract.

2. Unauthorized Purchases. Purchases approved by anyone other than the designated award authorities are unauthorized. It is the responsibility of every employee to understand the policy requirements and avoid unauthorized purchases to the greatest extent possible.

3. Ratification Process Required. Unauthorized purchases are required to be can be validated only if ratified by the appropriate award authority, in its sole and absolute discretion. For unauthorized purchases to be considered for ratification, the following steps must occur:
a. The employee making the unauthorized purchase must provide a written explanation of why the purchase was made.
b. The written explanation must be reviewed and approved by the appropriate award authority.

4. Restitution. In the event that a vendor has been paid and the unauthorized purchase is not subsequently ratified, the employee may be held responsible for reimbursing the city.

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Section 3 – Purchasing System Authorities and Responsibilities 9 3.7 Contracting Requirements
The following section explains the various contracting requirements associated with making purchases with City funds.

1. Contract Award. A contract is not considered to be awarded until it is approved by the appropriate award authority, i.e., the City Council, City Administrator or authorized department head as described in Section 3.6 above.

2. Standard Contract Terms and Conditions. Use of the city’s standard contracts (or terms and conditions for purchase orders) provided by the City Attorney are preferable to using vendor-provided contracts. If presented with a vendor-provided agreement, staff should attempt to replace it with the city’s standard agreement or standard terms and conditions for purchase orders. The purchasing coordinator can assist with the negotiation process as necessary.

3. Written Contract Requirement. Written contracts on city templates provided by the City Attorney are required for services with a value of $10,000 or more. Services with a value of less than $10,000 should be put on purchase orders with standard terms and conditions, unless compelling factors such as liability or risk dictate the use of a written agreement.

4. City-provided Scope of Work Requirement. Contracts should include well-defined scopes of work provided by city staff and the use of consultant or vendor-provided work scopes should be minimized to the greatest extent possible.

5. No Contract Splitting. Under no circumstances can any contract be split or separated into smaller components to determine the appropriate award authority or for any other purpose.

6. Contract Types. The city utilizes several different types of contracts depending on the nature of the purchase and requirements of the City Attorney’s Office. a. Purchase Orders. Purchase orders are used to make discrete, non-recurring purchases of goods and/or services. Depending on the cost and complexity of the purchase, a written agreement may be required. Purchase orders are required for most city transactions.
b. Blanket Purchase Orders. Blanket purchase orders are term contracts, usually established for one-year periods for routine, recurring or as-needed purchases of goods and/or services. Blanket purchase orders can be renewed annually according to the terms established through competitive bidding or negotiation, or as approved by the appropriate award authority. Blanket purchase orders may also be established for multi-year periods and/or as master goods/services agreements.

Blanket purchase orders may be established for as-needed small construction or maintenance projects and/or for urgent or emergency repairs where time is of the

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Section 3 – Purchasing System Authorities and Responsibilities 10 essence. These types of arrangements are referred to as Job Order Contracts (JOCs) and are bid on a unit cost basis with contracts awarded based on not-toexceed amounts approved by the appropriate award authority. c. Service Agreements. Depending on the cost and complexity, agreements may be required for general or professional services. These are referred to as General Services Agreements (GSAs), Professional Services Agreements (PSAs), Master Service Agreements (MSAs) or Master Professional Service Agreements (MPSA). d. Confirming Orders. Confirming orders are written purchase orders that confirm previously placed verbal orders. This form of contract may be utilized for urgent or emergency purchases but requesting departments must use prudent judgment.

7. Key Contracting Prerequisites. Contractors or vendors conducting business in the city or working on city property or in city rights-of-way must be properly licensed, insured, and otherwise comply with all lawful requirements such as obtaining a business license as required by the Finance Department and having appropriate insurance coverage as required by the risk manager. The contractor or vendor must include the City of Gilroy as an “additional insured” on their insurance policy and provide up-to-date insurance certificates with required policy endorsements. These requirements must be met before any work can commence.

Governing Law(s) and Reference Documents

1. Section 2.43(c) of the City Code

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11 Section 4 – Procurement Methods

4.1 Procurement Methods Overview
This section outlines the various methods of procurement to be used by employees who have authority and/or responsibility for procurement processes and procedures.

Below are guiding principles by which staff participating in procurement processes must abide:
 Purchases shall be based on competitive bidding processes whenever possible, unless otherwise exempt in accordance with Subsection 4.9, Purchases Exempt from Competitive Bidding on page 220.
 The complexity of the bidding process, and the applicable requirements, increase with the dollar value of the procurement.
 Under no circumstances shall purchases be artificially split to use a more simplified process.  In situations where goods and/or services can be defined with a high degree of specificity, then a contract will be awarded to the lowest responsive and responsible bidder through a bid process.
 If the purchase is solution-based and cannot be exactly defined, then a best-value process may be used where the city can pay a higher price for a good and/or service if the overall value can be justified.
 Measured use of cooperative purchasing programs and piggyback agreements, which leverage volume purchases, secure value pricing and reduce administrative overhead, is encouraged.
 Staff must take into account the city’s special policies and procedures for many procurements. These include environmental procurement, application of the 53% local purchasing preference (except for public works construction and professional services), disadvantaged business enterprises and purchases using federal grant funds (see Section 7, Special Policies and Programs, page 3127).

4.2 Selecting the Appropriate Procurement Method
To select an appropriate procurement method, employees should know the category of purchase (type of goods, services or public works project) and have an estimated cost in mind.

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12 For goods and services purchases, competitive bidding and approval thresholds are determined by each transaction.

2.1.Goods and services transactions $42,999 or less. Goods and services $42,999 or less may be made without a competitive process. This amount is consistent with the threshold established for purchases utilizing federal funding (see Subsection 7.5, Policies and Procedures for Purchases Utilizing Federal Grant Funding, page 3129). ). However, nothing should preclude employees from “value shopping” to help ensure that the best possible value is being obtained in exchange for public funds.However, staff are encouraged to price shop whenever possible to ensure the city is receiving the best value in exchange for public funds.

3.2.Goods and services transactions between $53,000 and $99,999. Goods and services with an estimated value between $53,000 and $99,999 in a single transaction must be procured using the methods established in the Informal Procurement Procedures in Subsection 4.4 below.

4.3.Goods and services purchases $100,000 or more. Goods and services purchases with an estimated value of $100,000 or more in a single transaction must be procured using formal bidding or proposal procedures established in Subsection 4.5, Formal Bidding Procedures on page 153.

4. Public works projects. In accordance with Section 1109 of the City Charter, Public works projects anticipated to cost equal to or less than the amount allowed for informal bidding pursuant to section 22032 of the California Public Contract Code, currently $200,000, as the same may be amended from time to time, may be let using Informal Bidding Procedures outlined in section 4.4, on page 14.

In accordance with Section 1109 of the City Charter, Public works projects anticipated to exceed $35,000 the amount allowed for informal bidding pursuant to section 22032 of the California Public Contract Code, currently $200,000 or less, as the same may be amended from time to time, must be conducted through sealed bidding and shall be let by contract to the lowest responsive and responsible bidder, or through best value contracting, and awarded by Council, in further accordance with the bidding procedures established in Subsection 4.5, Formal Bidding Procedures, on page 153. a. Design-Build public works projects. For public works projects with contracts equal to or in excess of $1,000,000, the City Council may negotiate and award a Design-Build Contract without formal sealed 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 contract shall be consistent with the California Public Contract Code. The procurement shall be made in accordance with the bidding procedures established in subsection 4.6, Request for Proposals on page 19, and shall include the following:

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13 i. Bridging documents shall be prepared by a design professional designated by the City, identifying the scope and estimated price or cost of the public works project and including additional requirements or information necessary to adequately describe the City’s needs for the project. This may include, not limited to, the size, type, and design character of the project, the performance specifications covering the quality of the supplies, materials, equipment, and workmanship, or preliminary plans or building layout plans. The design professional, which prepares the bridging documents, may not subsequently submit or participate in the proposal submitted for an award of design-build contract, or have any financial interest in any designbuild entity or team which submits a design-build contract construction proposal or which provides the design-build services.
ii. A formal request for proposal shall include the bridging documents described in section 4.2.4.a.(i) above, a request for qualification, and the design-build contract documents approved by the City Attorney.
iii. Design-build entities may be required to pre-qualify in order to be eligible to submit a proposal for the design-build project by responding to the request for qualifications in advance of the date set for the submission of the proposals. A standard template for statement of qualification shall be established and provided in the request outlining the qualification criteria consistent with, but not limited to, section 22164(b) of the California Public Contract Code. The City may establish and maintain a qualified list of design-build entities based on the qualification process for soliciting proposals on future new design-build projects. iv. The design-build contract may be awarded to a responsive, responsible design-build entity on the basis of either the lowest lump-sum price or the “best value” provided, as defined in the formal request for proposals. A design-build contract that is awarded on the best value basis shall be evaluated based solely on the selection criteria and procedures set forth in the formal request for proposals. v. The design-build contract shall require the design-build entity and its subcontractors to comply with the requirements of Section 22164(c) of the California Public Contract Code, as amended from time to time.

5. 5.34.3 Purchasing Card Program
As an alternative, efficient method of making small dollar purchases, a purchasing card program has been established for use by employees based on operational need. In many

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14 instances, purchasing cards can be used to buy needed materials and supplies, rather than using purchase orders.

Purchasing cards are approved by department heads and issued by the purchasing coordinator, to be used in strict accordance with the Purchasing Card Policy.

4.4 Informal Procurement Procedures
Informal procurement procedures apply to purchases of goods and services anticipated to be less than $100,000, and for public works project anticipated to cost equal to or less than the amount allowed for informal bidding pursuant to Section 22032 of the California Public Contract Code, currently $35,000200,000, as the same may be amended from time to time. Such purchases may be made by staff in accordance with this section.

1. Purchases $42,999 or less. Purchases of goods and services less than $53,000 may be made by staff without obtaining price quotes. However, staff are encouraged to price shop whenever possible to ensure the city is receiving the best value in exchange for public funds.

2. Purchases between $53,000 and $24,999. Purchases in this estimated price range may be made by staff with department director approval and based, to the best extent possible, on at least three written price quotes. Contracts are typically awarded to the lowest responsive and responsible provider, but best value determinations can be made on factors in addition to pricing if the justification is properly documented and in the best interest of the City.

3. Purchases between $25,000 and $99,999. Purchases of goods and services in this estimated price range (and public works projects less than $35,000) may be made using informal bid and/or request for proposal documents, as follows:
a. Invitation to Quote. Use this template for goods and/or services with an estimated cost at or below $49,999 (or for a lower threshold amount if required by a department head or the purchasing coordinator). If a contract is not being awarded to the lowest responsive and responsible bidder, the purchasing requisition must contain a concise explanation to justify the selection, including evaluation factors if appropriate or requested by the purchasing coordinator.
b. Informal Request for Proposals (RFP). Use this template for services (or in some cases specialized goods or a mix of goods and services) between $50,000 and $99,999 that are procured through a best value, rather than low bid, process. Informal RFPs may also be required for professional services less than $50,000 as required by department heads.

Best value procurements are awarded based on factors in addition to price (e.g., the city may pay more for a solution if the overall value can be justified), and are conducted through an evaluation process similar to but less formal than that required for formal competitive proposals (see Subsection 4.6, Request for Proposals, on page 196).

4. Public works projects equal to or less than the amount allowed for informal bidding pursuant to California Public Contract Code. Procurement of public works projects

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15 estimated to cost equal to or less than the amount allowed for informal bidding pursuant to Section 22032 of the California Public Contract Code, currently $200,000, as the same may be amended from time to time, may be made using the informal bid, subject to the appropriate award authority outlined in section 3.3 and contracting requirements outlined in section 3.7:
a. Invitation to Quote. Use this template for public works construction contracts with an estimated cost at or below $200,000, and to the best extent possible, with at least three written price quotes. If a contract is not being awarded to the lowest responsive and responsible bidder, the designee shall provide a written statement or report of the procurement to the appropriate award authority and must contain a concise explanation to justify the selection, including evaluation factors as appropriate.

4.5.Prevailing Wage Requirements. The payment of prevailing wages is required for maintenance contracts over $15,000 and construction contracts over $25,000. Additionally, such contracts must follow California Department of Industrial Relations (DIR) contractor registration requirements for contractors and their subcontractors (see also Subsection

4.5.3.h on page 175). Suitable language regarding this requirement should be in all such contracts.

4.5 Formal Bidding Procedures
Formal sealed bidding using an Invitation for Bids (IFB) is required for purchases anticipated to be more than $100,000, including materials and equipment (goods), certain services, and public works construction projects greater than $35,000200,000. Contracts associated with formal bids are awarded to the lowest responsive and responsible bidder with the exception of public works construction projects that may be awarded by using the best value contracting per Section 1109 of City Charter. The requirements detailed below apply.

1. Coordination with Purchasing. These actions must be coordinated with Purchasing before conducting a formal bid process:
a. Obtain a Bid Number. The purchasing coordinator will assign a bid number that will be used to track the project throughout its life cycle. b. Request Bid Opening Date. The purchasing coordinator will determine availability of Council chambers to conduct the public bid opening. c. Creation of Bid File. All bidding documents created in conjunction with each bid must be sent to the purchasing coordinator so that a bid file constituting the city’s official record can be kept in strict accordance with the records retention schedule.

2. Advertising the Bid Opportunity. All formal bids should be publicly noticed by the purchasing coordinator or designated staff for at least 14 calendar days, (except for public works construction projects governed by section 1109 of the City charter) prior to the date and time set for receiving bids, either in a local newspaper of general circulation

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16 in the City (for public works construction) or on the City’s website, unless a shorter timeframe is warranted.

For public works construction projects, the notice shall be given by one or more of the following methods per Section 1109 of the City Charter:
 Publication in newspaper of general circulation in the City by one or more insertions, the first of which shall be at least (7) days before the time of opening bids. This method of publication shall be used if available;  Publication electronically so that the notice is publicly available to the general community of potential bidders;
 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 (7) days before the time of opening bids; or

2. 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.
a. Notice Inviting Bids. The Notice Inviting Bids (NIB) specifies:
i. The date, time and place where and when bids will be received, publicly opened and the bids of each bidder read out loud.
ii. The name of the staff member to whom bids must be addressed. iii. General description of the goods, services or construction work required.

3. Invitation for Bids (IFB). An Invitation for Bids (IFB) is the bid template required for use with formal bids. The IFB must include at least the following elements:
a. Notice Inviting Bids. The IFB must include the bid notice that was used to advertise the bid.
b. Instructions to Bidders. Bid documents must include instructions to bidders to explain the bidding process, and explain the city’s requirements (see also Subsection 8.34, Instructions to Bidders, page 331).
b. For public works construction projects, the bid document must identify the process by which the award will be made, either exclusively based on lowest responsive and responsible bidder, or best value contracting based on objective criteria to determine the best combination of price and qualifications. c. Bid Specifications. Detailed specifications that provide technical design and/or performance requirements are required for all IFBs.
d. Subcontractor Listing. Contractors bidding on city projects must include a listing of subcontractors.

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17 e. Non-collusion Affidavit. Contractors bidding on city projects must provide a notarized affidavit certifying that they have not colluded with any other entity in providing a bid.
f. Bid Forms and Schedules. The bid document must include applicable bid forms and schedules necessary for determining the lowest responsive and responsible bidders.
g. Bond Forms as Required. Many awarded projects will require that contractors provide executed faithful performance bonds (to guarantee their work) and payment bonds (to guarantee payments to subcontractors). h. Contractor/Subcontractor DIR Registration Section. Bids for construction and maintenance work must include a form for contractors to provide their Department of Industrial Relations (DIR) contractor registration numbers (applies to contractors and their subcontractors) to ensure prevailing wage compliance. This information must be provided by City staff to the DIR on the PWC-100 Form following contract award.
i. Draft Contract if required. The bid documents must include a draft contract with the city’s terms and conditions.
j. Instructions for Bid Addenda. Questions received within 10 business days of the due date will be answered in the form of a properly issued bid addendum.

No change or modification to the plans or specifications can be made without such notification. Bid addenda must be provided to all holders of official bid documents and posted to the city’s website.

4. Bid Security. A bid security in the form of a bid bond, cash, certified check or other acceptable instrument, in an amount not exceeding 10% of the bid price, may be required. If a bid security is required, it must be stated in the bid documents.

5. Public Bid Opening. Sealed bids will be publicly opened in the presence of at least one witness (typically the purchasing coordinator) at the time and location specified. If members of the public are present, the names of each bidder and their total bid pricing will be read aloud, and the apparent low bidder will be announced.

5. For public works construction projects, if the best value procurement option is utilized, there shall be no public bid opening until the experience and qualifications information is evaluated by a designated evaluation panel. The pricing information shall remain sealed until the panel completes the evaluation to ensure the panel’s evaluations are not influenced by the pricing information.

6. Late Bids. Under no circumstances can late bids be accepted.

7. Bid Summary. Following the bid opening a bid summary will be prepared by the user department and posted to the city’s website.

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18 8. Evaluating Bids and Awarding a Contract. The contract award process includes steps detailed below.
a. Bid Analysis. Each bidder will be evaluated by designated staff to determine whether their bid is responsive (complies with all material requirements of the bid) and if they are responsible (have the skill and ability necessary to complete the work).
b. Council Report. The user department will prepare a report to Council recommending contract award to the lowest responsive and responsible bidder and/or a recommendation for bid rejection.
b. If best value procurement option is utilized for public works construction projects, the report shall include the justification for the selection including the evaluation factors utilized to making the determination. c. Bid Rejection. The finance director will issue any notice of rejection of any and all bids, or any non-responsive bids, and the bid may be re-advertised at the city’s discretion, except that Council is the rejecting authority for all public works bids deemed excessive or unsatisfactory, per Section 1109 of the City Charter. If a contractor provides more than one bid for the same work, those bids must be rejected by the appropriate rejection authority (Section 1110 of the City Charter).
d. Determining Bidder’s Responsiveness and/or Responsibility. Bids determined to be non-responsive at the bid opening shall not be accepted. Subsequent determinations of bid responsiveness and bidder responsibility during the due diligence period must be carefully considered, with the latter requiring a much higher level of due process for contractors.
e. Bid Protest Procedures. In the event of a protest by a contractor who has submitted a timely bid, the protesting party must be afforded the opportunity to voice their concerns through the formal process outlined in Section 8, Purchasing-related Instructions and Procedures on page 320. f. Contract Execution. Upon Council approval, designated staff will prepare and send a contract package, including performance and payment bonds and identification of any other requirements such as insurance, business license, etc., to the awarded contractor.

If the contractor fails to enter into the contract, their bid bond will be forfeited and deposited in the general fund. If a bid bond was not required (in the case of goods or services purchases), then the contractor who fails to execute the contract will be liable for the difference between its bid and the next lowest bid, plus administrative expenses and any required legal costs.

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19 9. Prevailing Wage Requirements. Maintenance contracts exceeding $15,000 and construction contracts exceeding $25,000 can only be awarded to contractors who are registered with the DIR (including any subcontractors) for the purpose of determining prevailing wage compliance. Suitable language regarding this requirement should be in all such contracts. Awarded contracts must be registered with the DIR by designated staff within 30 days of award. Awarding a contract to a contractor who is not registered with the DIR can result in penalties to the City.

10. Return of Bid Securities. Once a contract has been executed, the security accompanying the accepted bids, and the unsuccessful bids, must be returned.

11. Submit Purchasing Requisition. Following contract approval by Council, a requisition must be submitted to the purchasing coordinator so a purchase order can be generated.

4.6 Request for Proposals
Competitive sealed proposals using a Request for Proposals (RFP) process are used when contracting for services estimated to be more than $100,000, or for solutions where procurement needs cannot be determined with a high degree of specificity, unless otherwise exempt from competition as described in Subsection 4.9, Purchases Exempt from Competitive Bidding on page 220. Such procurements are conducted by competitive negotiation processes, rather than awarding a contract to the lowest responsive and responsible bidder, as follows:

1. Coordination with Purchasing. These actions must be coordinated with the purchasing coordinator before conducting a formal proposal process:
a. Obtain an RFP Number. The purchasing coordinator will assign an RFP number that will be used to track the project throughout its life cycle. b. Creation of an RFP File. All proposal documents created in conjunction with each RFP must be sent to the purchasing coordinator so that a file constituting the city’s official record can be kept in strict accordance with records retention policies.

2. Request for Proposals. An RFP using the city’s standard template(s) must be prepared and advertised.

3. Best Value. RFPs are awarded based on the best overall value to the city, as opposed to lowest responsive and responsible bid, and include evaluation of qualitative and/or quantitative factors in addition to price.

4. Advertising the RFP Opportunity. RFPs will be publicly noticed by the purchasing coordinator at least 14 calendar days prior to the date and time set for receiving proposals, either in a local newspaper of a general circulation in the City (if requiredavailable) or on the city’s website, unless a shorter timeframe is warranted.

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20 5. RFP Document Contents. The RFP document shall include, at minimum, a Notice Inviting Proposals; instructions to proposers, including protest procedures if warranted; evaluation factors and their relative importance; specifications, requirements or scope(s) of work describing the required goods and/or services; proposal forms and schedules; any required bond forms; insurance requirements; and contract terms and conditions.

6. Evaluation Program. Once RFP responses are received, the proposals will be confidentially evaluated and scored in accordance with criteria and procedures established by the user department with input of the purchasing coordinator as necessary. Interviews, presentations, site visits, etc., may be conducted depending on the nature of the procurement.

Once a top-rated proposer is identified, good faith negotiations will commence. If an agreement cannot be reached in consideration of cost and/or scope, the next highestrated proposer will be engaged, and so on, until a mutually acceptable agreement is reached.

7. Qualifications-Based Selection Procedures. RFPs for certain professional or specialized services may, by law, require Qualifications-Based Selection (QBS) procedures where consultants or consulting firms are evaluated on their demonstrated competence and professional qualifications before pricing can be considered. The QBS selection process is typically associated with architectural, engineering, environmental, land surveying and construction management firms in accordance with Section 4525 et. seq. of the California Government Code or its federal counterpart, the Brooks Act. However, nothing shall preclude staff from utilizing a QBS process for other types of RFPs if in the best interest of the city.

Once a top-rated proposer is identified, then scope and fee negotiations commence. If an acceptable contract cannot be finalized in consideration of scope and/or cost, then the purchasing coordinator may commence scope and fee discussions with the next highestrated proposer, and so on, until a mutually acceptable agreement is reached. This type of process is also referred to as a Request for Qualifications (RFQL) or Request for Statements of Qualifications (RSQ).

8. Process Integrity. To protect the identity of the proposers and safeguard the integrity of the evaluation process, all City employees participating in the evaluation of competitively sealed proposals shall maintain strict confidentiality as well as disclose any real or perceived conflicts of interest that may arise.

The Finance Director and/or City Attorney will review any disclosed potential conflicts of interest and make a determination about the evaluator’s continued participation in the procurement.

9. One Response Received. If only one RFP response is received and staff wishes to proceed with the procurement (rather than rejecting the proposal), the purchasing

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21 coordinator will document the effort used to generate proposal responses prior contract negotiations.

10. Rejection of proposals. The finance director will issue any notice of rejection of any and all proposals, or any non-responsive proposals, and the RFP would may then be readvertised at the City’s discretion.. If a proposer provides more than one RFP response for the same work, those responses must be rejected (Section 1110 of the City Charter).

11. Late Proposals Refused. RFP responses received after the designated closing date and time cannot be accepted and must be returned unopened unless opening is required for identification purposes.

12. Awarding a Contract. The contract award process includes the following steps:
a. Council Report. Following the technical evaluation and competitive negotiation processes, the user department will prepare a report to Council recommending contract award to the firm whose solution provides the best value to the city. b. Determining Proposer Responsiveness and/or Responsibility. Determinations of proposer responsiveness and responsibility must be carefully considered, with the latter requiring a much higher level of due process for contractorsand any determination of non-responsibility should be reviewed by the City Attorney.
c. Proposal Protest Procedures. In the event of a protest by a proposer who has submitted a timely RFP response, the protesting party must be afforded the opportunity to voice their concerns through the formal process outlined in Section 8, Purchasing-related Instructions and Procedures on page 320. d. Contract Execution. Prior to Council approval, staff can begin the contract execution process by obtaining signature(s) from the awardee. Upon Council approval, the contract execution process can be completed.

13. Submit Purchasing Requisition. Following contract approval by Council, a requisition must be submitted to the purchasing coordinator so that a purchase order can be generated.

4.7 Two-step Competitive Bidding Processes
For some procurements, it may be advantageous to conduct a two-step competitive process where the first step is used to “shortlist” or prequalify interested firms. This type of procurement begins with a Request for Qualifications (RFQ or RFQL) process, followed by either an Invitation for Bids (IFB) or a Request for Proposals (RFP) process, depending on the situation.

The RFQ/IFB process (RFQ/B) can be utilized to contract for important construction projects or maintenance service contracts for which detailed specifications can be articulated. At the outset, the prequalification process utilizes minimum threshold requirements that prospective bidders

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22 must meet (determined by an evaluation process) to provide a sealed bid, to be awarded to the lowest responsive and responsible bidder.

The RFQ/RFP process (RFQ/P) can be an effective way to contract for services or system solutions where professional or technical expertise or complex functional requirements, are critical and overriding considerations. In this type of procurement, submitting firms are evaluated based on their qualifications (which can include minimum threshold requirements), followed by a competitive negotiation.

Governing Law(s) and Reference Documents

1. City Charter

2. City Code

3. California Department of Industrial Relations (DIR) Contractor Registration Information

4. California Qualifications Based Selection (QBS) Requirements

5. Federal Brooks Act

4.8 Emergency Procurement
This section establishes the fundamental elements required for emergency procurements.

1. Emergency Procurements Defined. Emergency procurements are those purchases defined as immediately necessary for the preservation of life, health or property, or for the continued operation of a department. Emergency procurements required as the result full or partial activations of the Emergency Organization shall be conducted in conjunction with Chapter 9 of the City Code (Emergency Organization and Functions).

2. Authority and Responsibility. The City Administrator or their designee may make or authorize others to make emergency procurements, regardless of cost.

3. Competitive Bidding. Emergency procurements shall be made with such competition as is practical under the circumstances, or that is required for reimbursement funding, and shall be limited to those goods and services necessary to satisfy the emergency need.

4. Written Report and Ratification Required. In such circumstances where emergency procurements are required, the department head or designee shall provide a written report of the procurement to the appropriate award authority, including a description of the emergency and the basis for selection of the contractor. A copy of this report shall be included in the procurement records maintained by the purchasing coordinator.

4.9 Purchases Exempt from Competitive Bidding
This section describes the types of purchases that may be exempted from competitive bidding requirements, subject to the appropriate approvals.

1. Enumerated Bid Exemptions. The following may be appropriately justified as exemptions to the competitive bidding requirement:

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23 a. Emergency procurements as defined herein.
b. Situations where solicitations of bids or proposals would for any reason be unavailing or impossible.
c. Professional or specialized services as defined in Subsection 3.2, General Categories of Purchases on page 5.
d. Public library collection materials.
e. Insurance, bonds or financial services.
f. Single or sole source goods or services as defined herein. g. Highly specialized equipment developed or designed for a special activity or function or whose purpose is in the best interests of the City due to compatibility with existing equipment or training of personnel. h. Procurements funded by grants, donations or gifts when any special conditions require the purchase of particular materials and/or services. i. Purchase of surplus property owned by another public entity, or payment to other public entities or utilities.
j. Membership dues, conventions, training, travel arrangements, or advertisements in magazines, newspapers, or other media. k. Works of art, entertainment or performance.
l. Goods procured for resale to the public.
m. Where competitive bids or proposals have been solicited and no bid or proposal has been received. In such situations the City Administrator may proceed to have the goods procured or services performed without further competitive bidding.
n. Computer software license or subscription renewals.
o. Human Resources investigation, legal services, and medical services, including but not limited to, fitness for duty evaluations, expert witnesses, and other employment related medical services.
p. Regulatory permits.
q. Subscriptions.
r. Reimbursements and/or refunds of payments made to the City. s. In other cases when specifically authorized by the Council (if over $100,000) after a finding and determination that it is in the best interests of the city.

2. Negotiations. The purchasing coordinator or designated staff can conduct negotiations, if/as appropriate, as to price, delivery and terms and may require the submission of cost or price data in connection with the award of a contract that does not require competitive bidding.

3. Competitive Bidding When Possible. Nothing in this section shall preclude the solicitations of competitive bids or proposals, when possible.

4. Documentation and Approval Required. Goods or services proposed to be exempt from a competitive bidding process must be appropriately documented and approved before a transaction can be conducted, as follows:

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24 a. Purchases greater than $50,000 require City Administrator approval that must accompany a purchase requisition before a purchase is made. b. Purchases between $53,000 and $49,999 require approval by the Finance Director or designee that must accompany a purchase requisition before a purchase is made.

Governing Law(s) and Reference Documents

1. Chapter 9 of the City Code

4.10 Cooperative Purchases
This section discusses fundamental elements of cooperative purchasing programs. Use of purchasing cooperatives is encouraged as a way of obtaining goods and services by aggregating volume, securing value pricing, and reducing administrative overhead. Measured use of purchasing cooperatives can significantly reduce the time and resources needed to competitively bid goods and services contracts.

1. Authority to Use Cooperative Purchasing Programs. The purchase of goods and/or services made under cooperative purchase programs, leveraging purchasing agreements maintained or utilized by the state, county or other public or quasi-public agencies, is authorized under Section 703 of the City Charter, Powers and Duties of the City Administrator. Cooperative purchasing contracts must be approved by the appropriate award authority.

2. Competitive Bidding. Cooperative purchasing programs should be based on competitively awarded contracts whenever possible, and documentation as to the advantage of the cooperative purchase will be retained by the purchasing coordinator in conjunction with the value analysis requirements listed below.

3. Purchasing Cooperatives. There are numerous purchasing cooperatives the staff can evaluate for use. Some leading cooperatives include state contracts such as California Multiple Award Schedules (CMAS) of the Department of General Services (DGS); U.S.

Communities Cooperative Purchasing; National Joint Powers Alliance (NJPA); NASPO ValuePoint (formerly WSCA-NASPO, or the Western States Contracting AllianceNational Association of State Procurement Officials); and federal General Services Administration (GSA) procurements (GSA Advantage for State and Local Governments).

4. Value Analysis. The determination to make a purchase using a purchasing cooperative agreement requires an analysis to determine whether the procurement represents the best value to the city. Purchases using any given cooperative need not be based on the absolute lowest pricing and may consider factors in addition to price such as the time and/or resources needed to competitively bid the good or service. The analysis will be

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25 performed and documented by user departments, with assistance provided by the purchasing coordinator.

5. Piggyback Contracting. Subject to the appropriate approval authority, authorized staff may enter into contracts for goods and services purchases, the pricing and terms of which have been previously established by another public agency. The following requirements apply to piggyback contracts, and must be verified by the purchasing coordinator prior to contract award:
a. The parties to the original contract agree to the piggyback. b. The contract is for identical or nearly identical goods and/or services. c. The original contract resulted from competitive bidding or proposal procedures similar to those required by the city.
d. The original contract was awarded within two years of the city’s purchase, or written justification is provided to support the use of an older solicitation. e. The price of the purchase is comparable to that estimated by the requesting department.

Provided that the above conditions are met and the purchase is approved by the appropriate award authority, the purchasing coordinator will issue a purchase order and/or execute (or cause to be executed) a separate contract with the vendor selected by the originating agency which incorporates by reference the original solicitation, terms, conditions and prices.

Governing Law(s) and Reference Documents

1. Section 703 of the City Charter

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26 Section 5 – Specification Development

5.1 Specifications for Competitive Bidding – Overview
Specifications define precise requirements for the solicitation of goods and/or services. Writing specifications is a collaborative process between user departments and the purchasing coordinator to translate specific needs into detailed requirements.

1. Definition. A specification is a precise description of the physical characteristics, quality, or desired outcomes of a commodity to be procured, which a supplier must be able to produce or deliver to be considered for contract award.

2. Collaborative Process. Writing bids or proposal specifications is a collaborative process between user department and purchasing to develop specifications with the goal of promoting competition.

3. Clear Language. Specifications should use plain language that is relevant to and understood by the bidding community.

4. Promote Competition. Good specifications should promote and not unduly restrict competition. Use of restrictive specifications must be properly justified in accordance with the provisions of this section.

5. Specification Attributes. There are essentially two types of specifications: design and performance. Specifications typically contain elements of design and performance and may be viewed as a continuum with each element on opposing ends. a. Design Specifications. Design specifications establish the characteristics that a commodity must possess, and may include manufacturing details such as engineered plans, drawings or blueprints.
b. Performance Specifications. Performance specifications describe a commodity’s desired outcome.
i. Functional Descriptions or Requirements. Performance specifications may utilize functional descriptions of defined tasks or desired results.

Functional requirements are typically used for solutions such as software systems.
ii. Brand Name Specifications. In areas where the city has standardized a particular product such as fleet vehicles, staff may use one brand name manufacturer, subject to approval by a department head (see also Section 6, Sourcing and Standardization on page 286). Brand name specifications are restrictive, limit competition, and can result in increased cost. Use of brand name specifications must be carefully evaluated before using them in competitive bid documents.

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27 iii. Brand Name or Approved Equal. Specifications that contain “brand name or approved equal” are based on functional equivalency and should be used whenever possible to promote competition and reduce pricing.

6. Specification Development. Specification development is a critical part of the competitive bidding process. In many cases specifications can be highly complex and technical and require subject-matter expertise beyond that of city staff. The following steps should be considered when developing specifications. a. Collaborate. Meet with stakeholders of the procurement to formulate and understand needs, and to internally peer review the specifications. b. Conduct Market Research and Analysis. Research and analysis help inform product design and/or performance and create understanding of market and supply chain trends.
c. Contact Other Public Agencies. Other public agencies may have conducted a similar procurement and can share information and valuable insight. d. Seek Professional Assistance. In some instances, contractors or consultants must be engaged to create complex or highly technical specifications.

Note: NEVER obtain or accept specifications directly from a potential bidder. This will give the bidder an unfair competitive advantage, require that the bidder be disqualified, and may result in protest actions or legal challenges.

Governing Law(s) and Reference Documents

1. Best practice document on specifications

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Section 6 – Sourcing and Standardization
28 Section 6 – Sourcing and Standardization

6.1 Sourcing and Standardization Overview
It is city policy that purchases be based on competitive bidding whenever possible to maximize the best value in the expenditure of public funds. Competition tends to be limited when goods or services are sourced to one entity or standardized to one particular brand or manufacturer.

Careful consideration must be given before a decision is made to standardize products and/or to request single or sole sourced procurements.

6.2 Single and Sole Sourcing

1. Single Source. Single source is defined as the selection of a good or service that may be available from two or more sources, but there is compelling reason to select one particular vendor.

2. Sole Source. Sole source is defined as the selection of a good or service that can only be obtained from one supplier or manufacturer because of its specialized, proprietary or unique in character.

Single and sole source procurements must be properly documented and approved in accordance with city policies and procedures.

6.3 Standardization

1. Standardization. Standardization is an organized process to adopt one product or group of products to be used by the city, such as particular computer hardware or software.

Product standardization may be utilized to create efficiencies, enhance safety, increase productivity, promote brand consistency, or to foster interoperability.

Product standardization decisions are made by consensus of the executive team after careful consideration and review of recommendations from staff.

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Section 7 – Special Policies and Programs
29 Section 7 – Special Policies and Programs

7.1 Special Programs and Policies Overview
Depending on the amount and/or type of purchase, there are several policies and programs that must be considered. These include:
 Application of Local Purchasing Preference;
 Minority, Disabled and Woman Owned Business Policy Statement;  Environmentally Preferable Products; and
 Policies and Procedures for Purchases Utilizing Federal Grant Funds.

Each is described below.

7.2 Local Purchasing Preference
The City Council has established a 5% local purchasing preference to be given to local businesses who respond to bidding opportunities or otherwise contract with the city (excluding public works construction and professional services), under the following guidelines and conditions.

1. Definition of Local Business. A local business is defined as a vendor or contractor who:
a. Has a fixed place of business in the city limits and the point of sale (for the business’s sales tax reporting purposes) occurs within the city limits, b. Is current in the payment of their business license tax, and c. Is in compliance with city laws and does not owe money to the city.

2. Applicable Purchasing Methods. The local preference will be applied to competitive bidding or letting contracts for the purchase of goods and applicable/associated services, whether by formal bid, informal bid, or competitive proposal processes.

3. Making the Calculation. The local preference calculation will be determined as follows:
a. The purchasing coordinator will apply a 5% discount to the total bid pricing provided by the local business for the purpose of calculating the lowest responsive and responsible bidder.

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30 b. If a competitive negotiation process is used, then the local business will be assigned 5% of the total evaluation points.

4. Inapplicability. Application of the local business preference does not apply in the following situations:
a. Purchases of goods and services through legal contracts of other governmental jurisdictions or public agencies, or cooperative purchasing agreements; b. Contracts for professional or legal services;
c. Purchases or contracts which are funded, in whole or in part, by a governmental entity, or private and public grants and the laws, regulations or policies governing such funding prohibit application of the local preference; and d. Purchases made under emergency situations.

5. Reserved Rights. The local purchasing preference does not prohibit the Council or purchasing coordinator from comparing quality or basing purchasing decisions on the quality of goods and/or services.

6. Notification. Information regarding the local purchasing preference should be provided to prospective bidders to the best extent possible, but failure to do so will not be grounds for invalidation of any purchase order or contract awarded under the city’s purchasing policies.

7.3 Minority, Disabled and Woman Owned Business Policy Statement It is the policy of the City to ensure full and equitable opportunities for minority business enterprises, women business enterprises, disabled business enterprises, and local small businesses.

To assure equitable opportunities for participation, the purchasing coordinator or designated staff carry out the following programs:
 Contractors must sign a certification that they and their subcontractors are in compliance with the City’s Fair Employment Practices Policy  City staff works to actively develop vendors in these disadvantaged classifications on a day-to-day basis.
 Bidding opportunities will be provided to known vendors in targeted groups.  The purchasing coordinator will assist in the development of technical assistance programs for these disadvantaged classifications.

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31 7.4 Environmentally Preferable Purchasing Policy
Purchases for goods and services shall ascribe, wherever and whenever possible, to the Environmentally Preferable Purchasing Policy. The current policy can be found at the below link.
https://www.cityofgilroy.org/DocumentCenter/View/13566/Reso-2007-50-EnvironmentalPreferable-Purchasing-Policy

7.5 Policies and Procedures for Purchases Utilizing Federal Grant Funding
When purchasing goods and services under a federal grant award, the city is required to follow the provisions of 2 CFR Part 200 Subpart A §200.318 General Procurement Standards through §200.326 Contract Provisions.

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Section 8 – Purchasing-related Instructions and Procedures 32 Section 8 – Purchasing-related Instructions and Procedures This section contains several purchasing-related instructions and procedures.

8.1 Bid/Proposal Protest Procedures
Contractors who have submitted timely bids or proposals may wish to protest or appeal a contracting decision or procurement made by the appropriate award authority. Protest actions must follow the procedures provided below. Protests of appeals, which are not submitted in accordance with these procedures, will not be considered.

1. Protesting Party. Only bidders or proposers who have submitted timely bids or proposals can initiate a protest action or appeal.

2. Protest Procedures. The following procedural steps must be followed to consider a protest:
a. The protest must be in writing and hand delivered or /sent by registered mail.

Once received, it will be date stamped at the Finance Department counter. b. The protest must be filed received within five working days after the announced decision to award a contract.
c. Copies of the protest and all supporting documentation must be concurrently transmitted to all other parties with a direct financial interest that may be adversely impacted by the outcome of the protest. Such parties shall include all other bidders who appear to have a reasonable prospect of receiving an award depending upon the outcome of the protest.
d. The protesting party must bear all of its own costs and fees in conjunction with protest or appeals processes.

3. Protest Filing. The written protest shall:
a. Include the name, street address, business phone number and email address of the protestor.
b. Identify the project under protest by name, IFB, RFP or quotation number. c. Contain a concise statement of the grounds for protest. d. Include all supporting documentation.

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Section 8 – Purchasing-related Instructions and Procedures 33 4. Protest Review Prior to Award. The purchasing coordinator or designated staff will withhold contract award pending disposition of the protest unless it is determined that an emergency exists. Upon review with the City Attorney, the purchasing coordinator or designee will respond in writing to the material issues raised in the protest no later than ten working days after receipt of the protest.

5. Right of Appeal. The protestor may appeal the initial determination to the finance director in writing within five working days after notification of the purchasing coordinator’s decision. The finance director will review the submitted information and render a final decision within ten working days.

6. Protest Received and Reviewed After Contract Award. Protests after award will not be considered unless the protest concerns a matter which arises after the award or could not have been discovered or reasonably known prior to award.

8.2 Central Supply Stores
A central supply storeroom for commonly used supplies has been established in the Finance Department and may be accessed by all employees on a self-serve basis. Departments are not charged for supplies.

Notify the purchasing coordinator if a stock outage is noticed or if any specific supply is getting low, and the item(s) will be restocked. Office supplies not carried in the central storeroom can be evaluated for stock based on need (notify the purchasing coordinator) or obtained through blanket purchase orders or on purchasing cards. The purchasing coordinator can also assist with special orders for items not commonly carried.

8.23 Certificates of Insurance and Coverage Requirements To minimize the city’s exposure to loss, all contractors must be appropriately insured and must include the city as an “additional insured” on their insurance policy. Contractors are also responsible for up-to-date insurance certificates with required policy endorsements that provide the city with required insurance coverage and indemnity provisions.

The Human Resources/Risk Management Department maintains current insurance requirements. Please refer to the insurance requirements in effect at the time of procurement.

8.34 Instructions to Bidders
Clear, concise and consistent instructions to bidders and proposers (hereafter “bidders”) are a key part of the bidding process and help to enhance process clarity and ensure that prospective offerors are informed of all city requirements.

The instructions inform bidders how to prepare and submit bids, establish mandatory requirements, cover the bid addendum process, and how to withdraw or protest bids, among many other items. The instructions for IFBs and RFPs are similar but contain important differences due to the way contracts are awarded (low bid versus best value). The instructions for each type of competitive process are contained in the bidding templates.

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Section 8 – Purchasing-related Instructions and Procedures 34 In some cases, modifications can be made to the instructions, but this must be done in consultation with the purchasing coordinator and/or City Attorney’s Office.

8.55 Lease, Rental and Lease-to-Purchase Procurements
In some cases it may be beneficial to rent or lease equipment rather than purchasing it due to funding availability, length of time the equipment is needed, etc. Under certain circumstances it may be optimal to purchase the equipment at the end of the lease period. Equipment rentals or leasing may make the best economic sense in these situations:
 Week-to-week or month-to-month rentals of short duration (less than one year).  Leasing for short timeframes (more than six months but less than three years).  Renting/leasing to evaluate equipment suitability prior to purchase. In these instances, a “no-cost” purchase order may be a better option if the vendor is willing.  Leasing equipment when a new or improved design is imminent and the leasing charges can be applied to the purchase cost of the new item.  Securing a lease to purchase because the purchase price exceeds the current appropriation.

When considering equipment rental, lease or lease-to-purchase agreements, it is highly recommended that the following provisions be negotiated and included in the agreement:
 Lease and lease-to-purchase agreements should include a non-appropriation clause for multi-year financing.
 Agreements under any scenario should include a “cancellation for convenience” clause.  A percentage of payments should be applied to an eventual purchase.  Leasing agreements must include the annual interest rate, along with a payment schedule that shows each principal and interest payment (to be forwarded to the Accounting Division).
 A lease-to-purchase agreement for capital equipment should have a minimum life expectancy of five years.

Equipment leasing must be carefully considered. Leased equipment costs more than purchasing outright, and if the equipment is not purchased, the city cannot take advantage of any residual value.

8.56 Life Cycle Cost Analysis
Life cycle analysis, or total cost of ownership (TCO), considers the long-term cost of equipment assets and citywide systems such as the financial system. Costs include acquisition, installation, ongoing maintenance and end of life disposal.

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Section 8 – Purchasing-related Instructions and Procedures 35 8.67 Service Provider Evaluation
When preparing to contract for services, it is important to evaluate service providers to determine whether they are independent contractors or if they are more appropriately characterized as temporary employees.

8.78 Surplus Property Disposal
All city equipment, supplies, and vehicles (“personal property” or “property”) will eventually reach the end of their useful life and must be disposed of, and to the best extent possible, generate revenue through sale or traded-in when new equipment is purchased. The following procedures apply to the disposal of surplus property:
 Surplus Disposal. It is the responsibility of department heads to determine when an item is obsolete or excess surplus property. After such determination is made, the surplus property may be transferred to another department or used as a trade-in for new equipment. Surplused items may be donated, sold through a competitive sealed bid process, or sold at public auction to another governmental or non-profit entity. For final disposal, City Council shall approve of items to be surplused.  Sale of Surplus Property. As required by Section 2.43(c)(6) of the City Code, the sale of surplus property is subject the approval of the City Administrator except that sale of property having a value consistent with those classified as fixed assets by the fixed asset accounting rules in effect at the time of the request must be approved by Council.  Property List. The department surplusing an item shall submit a list of property items, the current value, and the asset number, if applicable, to the purchasing coordinator. The purchasing coordinator will periodically compile a list of excess items and provide it to all departments for review, and will subsequently obtain approval from the City Administrator and/or City Council. Upon approval, the following three options are available to dispose of the items:
o Sale to Another Governmental Entity. Surplus personal property may be sold at fair market value to another governmental entity (or non-profit organization).

Such entity will have no more than 3 weeks to accept or reject the offer. If accepted, the entity will be invoiced by Accounts Receivable. All applicable sales tax shall be included. Note: The receiving entity is responsible for transportation and liability of the item
o Auction. This option provides a convenient and efficient means of disposing surplus. After an item has been declared surplus, the purchasing coordinator will coordinate with the surplusing department to arrange for pickup by the auction company.
o Competitive Bids. The purchasing coordinator may require that sealed bids be obtained for certain surplus equipment, such as vehicles with considerable resale value. Sealed bids shall be advertised in a newspaper of general

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Section 8 – Purchasing-related Instructions and Procedures 36 circulation (if available), and on the City’s website, 10 days prior to the bid opening. Prospective bidders shall have the opportunity to evaluate the equipment prior to bid opening as prescribed by the purchasing coordinator.

Award will be made to the bidder most responsive to the City’s needs.

The equipment shall be bid upon in “as-is” condition with no warranty, and a 10% deposit in the form of a money order or cashier’s check must be submitted at the time of bid opening, with a balance due within 7 calendar days. Deposits will be returned to unsuccessful bidders within 14 calendar days.  Donations of Surplus and Preferred Recipients. In order of preference, surplus items may be donated to: 1) the Gilroy Unified School District; 2) the Gilroy Chamber of Commerce. Surplus property unlikely to generate significant revenue and that are not transferred to other departments may be donated to other public agencies, to Gilroy’s sister cities, or to non-profit organizations.

Any donation of surplus property to a non-profit organization shall be approved by the City Council upon findings that the non-profit is qualified under section 501(c)(3) of the Internal Revenue Code and that the donation will benefit the City and its constituents.

All donations pursuant to this section shall be without warranty, express or implied, and the transferee shall agree to defend, indemnify and hold harmless the City, its officers and employees, from any claim, cause of action, damage, loss or liability arising out of the condition of the property or its use by the organization or subsequent transferee.
 Specialized Police Department Surplus. Upon the request of the Gilroy Police Chief and with City Council approval, surplus items of a unique nature, i.e., guns, vests, and other protective equipment may be disposed of in an appropriate manner to suitable recipients. Disposal shall incorporate the Range Master’s Policy in regard to the sale of guns to a Gilroy police officer or other law enforcement officer.  Stolen Property. All stolen property shall be held by the police department for a period of 6 months. Periodic lists shall be prepared by the police department and submitted to the purchasing coordinator, to be agendized and declared surplus. Items will be disposed of in the most equitable manner. The only exception is Bicycles, which shall only be sold at public auction once declared surplus.
 Tracking Surplus. Regardless of the value established in policy, departments shall furnish a memorandum to the purchasing coordinator for tracking low value items.

Broken or unrepairable items considered trash need not be listed in the memorandum.  Revenue. The revenue received for the sale of surplus property shall be deposited in the General Fund or other appropriate fund for certain equipment sales.

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Section 8 – Purchasing-related Instructions and Procedures 37 8.89 Used Automobile Purchases
For efficiency purposes, the Council has waived formal bidding procedures for purchasing used vehicles under the following conditions:
 A budgeted appropriation exists.
 A determination is made by the fleet manager that purchasing a used vehicle is in the city’s best interest.
 All Gilroy used-car vendors are notified of the city’s intent to purchase.

The following procedures and requirements must be followed to purchase a used vehicle:
 The fleet manager will develop specifications based on the user department’s needs.  The fleet manager will solicit at least three written quotes utilizing informal procurement procedures; two of which must be solicited from Gilroy vendors.  The used vehicle must have less than 25,000 miles and be less than 2 years old.  A thorough inspection of each vehicle under consideration will be performed by Fleet Division staff, who will make a recommendation for purchase.  The fleet manager will submit a purchasing requisition for department head authorization.
 After the issuance of a purchase order, Fleet Division staff will arrange for transportation to the city and ensure vehicle registration. They are also responsible for submitting sale documentation to accounts payable in a timely manner.  The fleet manager will prepare a report for Council review.

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Section 9 – Glossary of Terms
38 Section 9 – Glossary of Terms

9.1 Definitions
This section defines relevant purchasing terms and terminology in use by the City of Gilroy.

Agreement. A mutual, written understanding between two or more competent parties, whereby one party agrees to perform as defined in the agreement and the other party agrees to compensation for the performance rendered in accordance with the agreement conditions.

Agreement and contract may be used synonymously.

Amendment. An agreed upon modification to an existing contract.

Appropriation. Authorization by the City Council to expend budgeted funding for city operations and infrastructure, or other designated purposes.

Award. The acceptance of a bid or proposal; the presentation of a purchase agreement by the award authority to a bidder or offeror.

Award Authority. The governing body or staff person authorized to approve the purchase of goods and services on behalf of the city; the staff person(s) authorized to approve or execute procurement contracts and otherwise legally bind the city.

Best Value Procurement. A procurement that is awarded based on factors in addition to price. Best value procurements are mainly conducted through the competitive proposal process.

Bid Addendum. A bid addendum is a document issued to all known participants (“planholders”) in a competitive bid process that makes a change to the bid documents/project (i.e., changes to specifications), or process (like a bid due date extension).

Bid Opening. The process in which sealed bids are publicly opened, in the presence of at least one witness, at the time and place specified in the invitation for bids.

Blanket Purchase Order (BPO). A limited-term contract for goods and/or services based on unit pricing, typically for one-year renewable periods. BPOs may be established with indefinite quantities, allowing end users flexibility to order products when needed, or for on-call services.

Change Order. A contract modification consisting of additions or reductions in work or materials approved by the City Council or purchasing coordinator.

Commodity. Goods consisting of supplies, materials and equipment.

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Purchasing Policy
Section 9 – Glossary of Terms
39 Competitive Bidding. The process of soliciting and obtaining formal and informal bids, including price quotations, from competing sources, by which an award is made to the lowest responsive and responsible bidder.

Competitive Proposals. The process of soliciting and obtaining formal and informal proposals from competing sources, by which an award is made to the proposer whose solution provides the best value to the city. The award may be made based on factors in addition to price, e.g., a higher price can be paid for goods and/or services if the value can be justified.

Conflict of Interest. A conflict of interest in conjunction with a city purchase is a situation where an employee or a member of the employee’s family stands to benefit financially from the procurement.

Contract. See Agreement.

Cooperative Procurements. A variety of arrangements whereby two or more public entities purchase goods and/or services from the same supplier or multiple suppliers using a single competitive bid or proposal; the combining of the requirements of two or more public entities to leverage the benefits of volume purchases, including administrative savings and other demonstrable advantages.

Design-build. A public works contracts procurement method in which both the design and construction of a project are procured from a single entity.

Design-build contract. A public works contracts equal to or in excess of one million dollars ($1,000,000) for a project to be constructed using a design-build process.

Design-build entity. A partnership, corporation or other legal entity that provides licensed contracting, architectural or engineering services for a design-build contract.

Design professional. A professional, either City staff or an outside consultant licensed by the State of California, who develops the criteria package which may include, but is not limited to, facility program, design criteria, performance specifications and other project-specific technical materials.

Encumbrance. An accounting entry that commits an appropriated dollar amount to be spent.

Formal Sealed Bid. A procurement method for goods and/or services anticipated to be greater than $100,000 whereby sealed Invitations for Bids (IFBs) are submitted and publicly opened, with a contract awarded to the lowest responsive and responsible bidder.

Formal Sealed Proposal. A procurement method for goods and/or services anticipated to be greater than $100,000 whereby sealed Requests for Proposals (RFPs) or similar proposal documents are submitted and reviewed by an evaluation committee based on established criteria, with a contract awarded to the responsive and responsible proposer whose solution provides the best overall value to the city.

General Services. Work performed or services rendered by independent contractors such as custodial services, building and equipment maintenance, machinery and equipment rental, and utility services, excluding contracts for public works.

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Purchasing Policy
Section 9 – Glossary of Terms
40 Goods. Supplies, materials and equipment to be furnished or used by any department of the city, including items purchased by the city and furnished to contractors for use in public works projects.

Informal Bid or Proposal. Competitive bids or proposals anticipated to be $100,000 or less conducted under informal procurement procedures.

Invitation for Bids (IFB). The type of bid document typically used in a competitive (formal) sealed bidding process. Components include but may not be limited to a bid invitation, instructions to bidders, bid schedule(s), terms and conditions and technical specifications.

Job Order Contract. As-needed contracts for small construction or maintenance projects and/or for urgent or emergency repairs where time is of the essence. These types of contracts are bid on a unit cost basis and awarded based on not-to-exceed amounts approved by the appropriate award authority. Job Order Contracts may be established as Master Agreements.

Local Purchasing Preference. A 53% bid preference granted to local bidders whose principal place of business is located within city limits, subject to policy limitations.

Lowest Responsive and Responsible Bidder. The bidder to be awarded a contract who fully complies with all material bid requirements, whose past performance and financial capacity is determined to be acceptable and has offered the lowest price.

Master Agreement. A contract that is awarded to multiple qualified providers pursuant to a primary agreement with a standard set of terms and conditions, typically created under a competitive proposal process. Once established, services are distributed among providers with discrete project work negotiated through task orders; also referred to as Master Service Agreements (MSA) or Master Professional Service Agreements (MPSA).

Piggybacking. A form of intergovernmental cooperative purchasing whereby the city utilizes the contract pricing and terms of another government agency.

Prevailing Wages. The wage rates, including fringe benefits, paid to a majority of workers in a geographic area for the same type of work on similar projects as established by the California Department of Industrial Relations.

Professional Services. Services provided by a person or firm engaged in a profession based on highly specialized and/or technical knowledge or skill; services considered distinct and unique to such a degree that bidding may not be feasible, if appropriately justified and documented. Some examples include accountants, attorneys, artists, architects, engineers and physicians.

Public Works. The construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind, including demolitions, and the construction and installation of drainage systems, lighting and signaling systems, sewer and water systems, and park and recreational facilities.

Purchasing Coordinator. Designated finance staff responsible for issuing bid #s, coordinating the issuance and opening of bids and proposals, reviewing requisitions, and issuing purchasing orders.

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Purchasing Policy
Section 9 – Glossary of Terms
41 Purchase Order. A legally binding contract issued by purchasing staff to a vendor which includes the terms and conditions of a transaction.

Purchase Requisition. The document required to be submitted through the financial system to begin the procurement process. Purchase requisitions must be properly documented and approved for the procurement process to proceed.

Qualified list of design-build entities. A list of design-build entities selected based on a competitive selection process and who are determined to be qualified to act as a design-build entity for the City on public works projects equal to or in excess of one million dollars ($1,000,000).

Ratification. The process by which an unauthorized purchase is approved or ratified by the appropriate award authority after-the-fact.

Request for Proposals (RFP). The solicitation document used to solicit proposals for goods and/or services from potential providers.

Request for Qualifications (RFQL). Also referred to as Requests for Statements of Qualifications (RSQ), this type of solicitation seeks to establish qualified applicants or pools of applicants for asneeded services, sometimes under Master Professional Service Agreements (MPSA); most commonly used for architectural and engineering services or other highly specialized consultants.

Request for Quotations (RFQ). The type of bid document used for obtaining competitive quotes through the informal procurement procedures.

Responsible Bidder. A bidder is considered responsible if they possess the demonstrated ability, capacity, experience and skill to provide the goods and/or services in accordance with the city’s requirements; has a record of satisfactory or better performance under prior contracts with the city and other entities; and has complied with laws, regulations and guidelines governing prior or existing contracts.

Responsive Bidder. A person or entity who has submitted a bid which conforms in all material respects to a bid or proposal solicitation.

Single Source. A good or service that may be available from more than one source, but a compelling justification can be made to obtain the good or service from one particular vendor.

Sole Source. A situation where a good or service can only be obtained from one source due to its proprietary or specialized nature.

Specification. A precise description of the physical characteristics, quality, or desired outcomes of a commodity to be procured, which a supplier must be able to produce or deliver to be considered for award of a contract. There are two types of specifications: design and performance.

Standardization. The process to adopt one product or group of products to be used by the city, such as particular computer hardware or software.

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Purchasing Policy
Section 9 – Glossary of Terms
42 Surplus Property. Supplies, materials, and equipment that is no longer used or has become obsolete, to be sold, exchanged or donated by the purchasing coordinator in accordance with policy provisions covering surplus property donations.

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Page 1 of 6 ends

City of Gilroy

STAFF REPORT
Agenda Item Title: Update on the Status of Council and Departmental Workplans
Meeting Date: March 6, 2023
From: Jimmy Forbis, City Administrator
Department: Administration
Submitted By: Bryce Atkins, Assistant to the City Administrator Prepared By: Bryce Atkins, Assistant to the City Administrator

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 receive the update.

EXECUTIVE SUMMARY
Staff is bringing an updated status report for the Fiscal Year 2022 and 2023 Council Legislative Agenda and departmental workplans (collectively, the “Workplan”). Overall, work is progressing on these items, with a few additional items being completed between the January 28, 2022 Strategic Planning Workshop and today. There are also a few other items recommended for removal or consolidation with other Workplan items.

BACKGROUND
The City’s Workplan was adopted as part of the budget process in 2021 and incorporated into the Fiscal Year 2022 and 2023 budgets. There was a total of 124 initial items included. These include the 16 items in the City Council’s Legislative Agenda, with the remaining being items included in the departmental workplans.

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Update on the Status of Council and Departmental Work Plans City of Gilroy Page 2 of 6 March 6, 2023

ANALYSIS
Purpose
This report is intended to provide the foundation for the Workplan discussion and prioritization at the special meeting on March 13, 2023. Staff received the feedback from Council at the January 28, 2023 Strategic Planning Session, requesting more specific timelines and for updates that better demonstrate the status of the projects. Staff has compiled the attached, revised Workplan update. Staff will provide a presentation on the status of these items on the March 6, 2023 City Council Regular Meeting.

The remaining Workplan items will be brought back on the March 13 special meeting to discuss and prioritize the tasks to make the next two-year Workplan. At that meeting, the new items that the City’s departments wish to add, as well as the 12 items requested by the City Council at the Strategic Planning Session in January, will be included on the Workplan to be prioritized for the following two-year cycle.

Revisions
Since the original report presented on January 28, 13 items have since been completed.

1. ERP Implementation in Finance’s workplan

2. ERP Implementation in IT’s workplan

3. Multifunction Printer Replacement City-wide

4. Type I Fire Engine Build and Deployment

5. Development of specifications and purchase a second Type I and Type III Engine

6. Develop and Implement Fleet Maintenance/Repairs Alternative Solutions

7. Customer Service Training for employees

8. Pursue Opportunities for City-Owned 536 Acres at Hecker Pass

9. Pursue Opportunities for Sports Park

10.Pursue Grant Opportunities

11.Downtown Committee Recommendation: Implement a Façade/Painting Improvements or Plywood/Blight Removal Program

12.Downtown Committee Recommendation: Create a downtown Building/Planning Fee Reduction Program

13.Downtown Committee Recommendation: Downtown Jumpstart Kickoff Meeting However, staff has made a few changes in the attached Workplan update document since last being presented. These changes include:

1. A new column with anticipated completion timeframes has been added. Based on feedback from Council at the January 28th Strategic Planning Study Session, staff has added timeframes to better identify the status of projects that are currently underway and when they might be completed. The timeframes are

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Update on the Status of Council and Departmental Work Plans City of Gilroy Page 3 of 6 March 6, 2023
presented in calendar year and quarter format. For example, if an item is anticipated to be completed in August of 2023, it would read 2023 - Q3. This report is based on calendar years, and not fiscal years, to avoid confusion by members of the public who may not be familiar with the fiscal year the City operates within.

2. Revised descriptions for the updates have been made, some with progress updates between the two reports, and others simply providing more information than was included before.

3. Three new status types have been added:
a. Pending, meaning the project is waiting on another process, step, or external requirement to proceed further.
b. Consolidated, meaning that the task is being combined with another. Most of these consolidations are the Council Legislative Agenda items that had duplicates in a department’s workplan to implement them. There are also a few that had two departments working on the same project, listed separately. There were nine items that were consolidated with duplicate items on the Workplan.
c. Removed, meaning that the project, for reason(s) identified in the update column, are being removed from the Workplan. There were five such items, and the reason for their removal is listed in the update.

4. A few of the Workplan items were multiple projects within themselves. As such, the items of implementing the Unhoused and Downtown ad hoc Committees’ recommendations have been split apart, with each of their recommendations being listed as their own Workplan item. This increased the total number of projects listed from the original 124 to 146.

5. With the Downtown Committee being reformed, the recommendations have been pulled from the departmental workplans as the Committee is anticipated to receive reports separately on their performance and report back to the City Council. The downtown recommendations and status are included as a separate attachment.

6. Below is a table showing the number of items initially with the expansion described in change #4 listed above, and then adjustments to reach the current total of 60 items remaining in the Workplan1.
1 The items moved to the Downtown Committee will still require staff time, but are going to be accounted for differently as the reporting of these items, and discussions relating to them, will be handled in a Council Downtown Committee.

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Update on the Status of Council and Departmental Work Plans City of Gilroy Page 4 of 6 March 6, 2023
Below is a table that shows the items in the Workplan update list that are recommended for consolidation or removal, as well as a very brief statement about the reason for the action taken.

Item Reason
Consolidation Recommended Items
Downtown Façade Program Consolidated with Downtown Committee Recommendation
Develop Inclusionary Housing/Affordable
Housing Incentive (in‐lieu fee) Policy
Combining with Council Legislative Item
for In-Lieu Fees vs. Allocations
Begin Downtown Specific Plan (Grant
Dependent)
Combining with Council Legislative Item
for the Downtown Specific Plan Update
Develop/Revise Permanent Parklet &
Outdoor Dining Policies
Combining with Council Legislative Item
for Downtown Parklets
Develop Climate Action Plan/Greenhouse
Gas Reduction Policy
Consolidated with the Council Legislative
Agenda item regarding Climate Action
and Benchmarks
Evaluate the South County Pilot
Psychiatric Emergency Response Team
(PERT)
Consolidated with the Council Legislative
Agenda Item regarding Public
Safety/Mental Health Response Team
Pilot Program to Activate Gourmet Alley Consolidated with the Public Works Gourmet Alley Workplan Item
Development of a Downtown Parking
Management Plan
Combining with Council Legislative Item
for the Downtown Parking Management
Plan
Climate Action Benchmarks
Public Works item being consolidated
with Community Development’s Climate
Action Workplan item
Development of a Permanent Parklet
Policy with CDD
Combining with Council Legislative Item
for Downtown Parklets
Removal Recommended Items
Homeless Ad Hoc Committee
Recommendations
Combined Item being broken out to
multiple items. Removing now redundant
item.

Develop Community Engagement Plan
for PG&E Power Outages
Changes made by PG&E processes and
low frequency and impact levels of Public
Safety Power Shutoffs make this effort of
minimal benefit.

Revised Total Number of Items 146
Completed -66 45%
Consolidated -10 7%
Removed -5 3%
Moved to Downtown Committee -6 4%
Total of Remaining Items 59 40%

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Update on the Status of Council and Departmental Work Plans City of Gilroy Page 5 of 6 March 6, 2023
Item Reason
Earned Media Strategy
Benefits are limited compared to the staff
time and resources that would be
required to do this successfully, and
positive results are not guaranteed.

Over the Top Media Franchise Fees
Similar endeavors in other communities
have resulted in litigation where such
efforts have resulted in defeat for those
communities.

Incorporate County Mobile Crisis
Response Team
Recommended for removal due to
continued delays by SCCEMSA to
implement this program, and lack of
adequate local facilities to take on the
patient load.

Project Timing
Below is a table showing the number of items that are scheduled per quarter for each calendar year from the remaining Workplan items, to show the breakdown of timeframes for items. Each item has its own timeframe included in the attached comprehensive list.

Calendar Year – Quarter Number of Items
2023 – Q1 2
2023 – Q2 10
2023 – Q3 16
2023 – Q4 6
2024 – Q1 6
2024 – Q2 9
2024 – Q3 2
2024 – Q4 4
2025 – Q1 1
2025 – Q3 1
2028 – Q2 1
2030 – Q2 1
Total 59
Based on the project timing estimates, 68% of the remaining workplan items will be completed within the next twelve months. This calculation is before anything is added at the Special Meeting on March 13, 2023, which may see changes in the timeframe based on the prioritization identified by the City Council.

ALTERNATIVES
None - this is an informational item.

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Update on the Status of Council and Departmental Work Plans City of Gilroy Page 6 of 6 March 6, 2023

FISCAL IMPACT/FUNDING SOURCE
None - this is an informational item.

PUBLIC OUTREACH
This item was included on the publicly posted agenda for this Council meeting. The topic was previously discussed at the January 28, 2022 Strategic Planning Workshop.

NEXT STEPS
None - this is an informational item. The Workplan will be updated as part of the twoyear budget process that will be completed in June of 2023. This report will be the foundation to build upon at the March 13, 2023 Special Meeting for prioritizing and finalizing the Workplan.

Attachments:

1. Current Workplan Update

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Workplan Items Update - Completed
Item # Workplan Item Responsible
Department Category Status Council Update
1 Council Legislative Agenda - Renter Protection Policies Administration Discretionary Completed The item returned to Council, where direction was given not to proceed.
2 Council Legislative Agenda - 5-Year Street Repair Public Works Core Completed Council approved a five-year plan. FY22 Paving Project in progress.

FY23 Paving Project is currently in design.
3 Council Legislative Agenda - Grant Writing Administration Discretionary Completed The City has secured a grant writing firm to aid in the researching, applying, and reporting for grants. Additionally, Council has approved the creation of a Management Analyst - Grants position, where pursuing grants and outside funding is their full focus. This position recruitment is in the interview phase now.
4 Council Legislative Agenda - Unhoused Community Administration Discretionary Completed Completed and Ongoing. The Unhoused Ad Hoc Committee was formed and completed development of the recommendations adopted by the City Council. Some tasks have been completed, while some are ongoing. The City Council will receive reports and issue direction going forward to continue these ongoing efforts. The Community Development Department will be taking over the housing functions from Administration.
5 Council Legislative Agenda - Reach Codes Community
Development
Discretionary Completed Staff presented to City Council reach codes as part of the full Building Code adoption on 11/7/2022. Ordinance was adopted by Council on 11/21/2022. Reach codes became effective on 1/1/2023.
6 Council Legislative Agenda - RV Towing Policy Police Discretionary Completed Staff report and presentation on our local efforts was provided to the City Council on April 18, 2022.
7 Create Gourmet Alley Stakeholder Working Group Administration Core Completed the Gourmet Alley Committee converted into the ad hoc Downtown Committee. The Downtown Committee operated for a year, and developed nine recommendations that are now under the
supervision of the City Council.
8 Develop Social Media Policy Administration Core Completed The Social Media Use Policy was adopted by Council on September 28, 2022.
9 Enhance the Current Social Media Strategy Administration Core Completed Presentation was provided to Council in December. 10 Hire Economic Development Manager Administration Core Completed This task was completed with the hiring of the Management Analyst for Economic Development. With the departure of the staff person, the City is currently recruiting for an Economic Development Manager. Depending upon the candidate pool, the position may be filled before the close of the fiscal year.
11 Coordinate identifying and/or applying for Grants Administration Discretionary Completed The City has secured a grant writing firm to aid in the researching, applying, and reporting for grants. Additionally, Council has approved the creation of a Management Analyst - Grants position, where pursuing grants and outside funding is their full focus.

11.2 p. 317 of 332
Workplan Items Update - Completed
Item # Workplan Item Responsible
Department Category Status Council Update
12 Enterprise Resource Planning Implementation ‐ Human
Capital Module
Human Resources Core Completed The Human Capital Management (HCM) module went live 7/1/22. 13 C19 Response for Employees & Future Re‐Opening of
City Office and Return of Employees
Human Resources Core Completed Covid-19 response and reopening of City offices completed. Covid-19 employee compliance is ongoing.
14 Complete Labor Contract Negotiations and Implement
Approved MOU (AFSCME FY 21 & 22); Fire & GMA (FY
22 & 23)
Human Resources Core Completed New labor contracts have been approved by Council for all groups noted.
15 Health Insurance Open Enrollment Human Resources Core Completed Open enrollment was successfully completed for 2023 with all updated rates, benefits, and deductions entered in to the HCM system.
16 General Liability Risk Assessment Human Resources Core Completed All required risk assessments have been completed with the Municipal Pooling Authority and Local Agency Workers Compensation Excess insurance risk pools.
17 Employee Ergonomics Human Resources Core Completed This project is complete, and ergonomics assessments are continuing on an as-needed basis
18 Orientation and Training of New Fleet Superintendent and Equipment Mechanic
Fleet Core Completed Both positions have been filled, onboarding completed, job specific training is ongoing.
19 Biennial Inspection Terminal Certification for medium and heavy duty trucks
Fleet Mandated Completed All required inspections have been successfully completed. 20 Adopt Objective Design Criteria (Code & Policy
Updates)
Community
Development
Core Completed Multifamily residential and mixed-use residential Objective Design Standards were adopted by Council on 10/18/2021.
21 Complete Development Fee Updates Community
Development
Core Completed Staff completed fee updates in June 2022 and configured new fees in permit system in summer 2022.
22 Implementation of New RHNA Cycle Community
Development
Core Completed Staff prepared the Housing Element to implement 2023-2031 RHNA.

RHNA cycle spans from January 2023 through January 2031. The RHNA progress for the first year of the new cycle will be reported in March 2024.
23 Present CDBG & Housing Trust Fund Policy Discussion
& Recommendations
Community
Development
Discretionary Completed Housing Trust Fund policy recommendations were presented to Council on 2/28/2022. CDBG 2022-23 funding allocations were presented to Council and approved by Council on 5/16/2022. 24 Reach Codes Community
Development
Discretionary Completed Staff presented to City Council reach codes as part of the full Building Code adoption on 11/7/2022. Ordinance was adopted by Council on 11/21/2022. Reach codes became effective on 1/1/2023.
25 Update Historic Site Sections of Zoning Code & Historic Resource Policies
Community
Development
Core Completed Draft changes were vetted by the former Historic Heritage Committee in January 2022. This section of the code will be updated at the same time as the entire Zoning Code.
26 Evaluate Funding Options for Pension Costs Finance Discretionary Completed City Council adopted a Pension Funding Policy and completed the legal process to position the City to refinance its pension obligations when the markets conditions become favorable.

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Workplan Items Update - Completed
Item # Workplan Item Responsible
Department Category Status Council Update
27 Cybersecurity Assessment, Plan & Implementation IT Mandated Completed Assessment and Plan completed. Implementation will be phased in over several years.
28 Police Records Management System Replacement IT Core Completed This system has been replaced, and the project is complete 29 Complete Council Chambers Audio/Visual
Modernization Project
IT Core Completed The audio and video upgrades have completed, including new projector, displays, audio equipment, among other improvements. 30 Initiate "Stop" Data Collection (Racial Identity &
Profiling Act) Plan
Police Mandated Completed Data collection was implemented in December 2021. Currently data is being collected via the new CAD/RMS RIMS.
31 Implement Department Legitimacy Training Program
(Principled Policing, Implicit Bias, Procedural Justice) Police Mandated Completed Completed Department-wide LGBQT+, crisis intervention, and deescalation training. Five GPD staff are Principled Policing trainers and are responsible for training the entire agency. Ongoing training is made available for newly hired personnel.
32 Increase Trust Building Efforts between Community
and PD
Police Core Completed The GPD has been hosting events to help increase community trust in the Department. Such events include National Night Out, Ice Cream with A Cop, Youth Academy, Community Police Academy (CPA) and other ongoing efforts.
33 Increase De‐escalation Training ‐ CIT (Crisis Intervention Training)
Police Core Completed De-escalation training was incorporated into internal defensive tactics and firearms training.
34 Conduct an Internal Departmental Survey/Focus Group
Led by supervisors
Police Discretionary Completed The focus group was completed prior to April 2021 Leadership Team Building Workshop
35 Implement Youth Engagement/South County Youth
Diversion Program
Police Discretionary Completed This program was successfully implemented in December of 2021. A $1 million BSCC grant was secured to assist with future funding of the program.
36 Develop 5‐Year Street Repair Program Public Works Core Completed Council approved the 5-year Pavement Plan. FY22 Paving Project is currently in progress, and the FY23 Paving Project is in design. 37 Implement CityWorks CMMS Program at Corp Yard Public Works Core Completed The City's Public Works Department has deployed a new customer service program that is currently being used to track and report customer service requests.
38 Implement Family Resource Center (FRC) at San Ysidro Cultural Center (SYCC)
Recreation Core Completed A lease was awarded to Santa Clara County. The FRC was in operation from March 2022 through September 2022 (provider could no longer offer services). The County was seeking a replacement, but has decided to terminate the lease. Other social services are being provided at SYCC.
39 Publish Seasonal Recreation Activity Guide in English and Spanish
Recreation Core Completed The first recreation guide published in English and Spanish was in Winter 2021. It continues to be published in English and Spanish. 40 Explore issuing RFP for Independent Pool Operator at Christopher High School (CHS) Aquatic Center
Recreation Discretionary Completed The City contracted with a pool operator to manage the CHS Aquatic Center. The agreement is for two years (2022 and 2023) with an option for 2024.

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Workplan Items Update - Completed
Item # Workplan Item Responsible
Department Category Status Council Update
41 Expand Fee‐based Recreation Programs Recreation Discretionary Completed There were several new programs and services that were offered through the Recreation Division. They include a hip hop dance class, a youth basketball league, a youth soccer league, senior day trips, senior walking group, and mariachi class for East Gilroy youth. 42 Increase Overall Recreation Program Participation
Levels
Recreation Discretionary Completed There was a 22% increase in overall recreation program participation from 2021 to 2022 (3,747 to 4,573).
43 Explore Needs Assessment Recommendation to
Transform Senior Center into Multi‐Generational
Community Center
Recreation Discretionary Completed The proposal to transform the Senior Center into a Multi-generational community center, which was recommended by the Parks and Recreation Commission, was not passed by Council (July 2020). 44 Unhoused Committee Recommendation - Proactively
Support Affordable Housing
Community
Development
Core Completed Staff continues to support ongoing affordable housing efforts in housing production through projects, preserving existing units, and protecting residents from displacement. Staff partners with community-based organizations to provide assistance to residents to prevent homelessness. Staff is expanding community outreach to connect residents with housing resources and unhoused residents with service providers.
45 Unhoused Committee Recommendation - Purchase
Garbage Truck (Converted to Dump Truck)
Administration Discretionary Completed Staff secured a truck with a custom made dump bed to be used to help remove garbage. The truck has been in use now for over one year.
46 Unhoused Committee Recommendation - Ensure All
Property Owners are Accountable for Maintaining
Properties Clean
Community
Development
Core Completed Code Enforcement continues to enforce property standards enforceable within the City Code. The City continues working with public agencies when their properties require clearing and maintenance.
47 Unhoused Committee Recommendation - Partner with
Morgan Hill
Community
Development
Discretionary Completed The City has partnered with Morgan Hill on several issues, and will continue to do so on an ongoing basis.
48 Unhoused Committee Recommendation - Continue
Supporting Unhoused Service Providers Through CDBG
Grant Funding
Community
Development
Discretionary Completed The City is supporting unhoused service providers through Permanent Local Housing Allocation funding and allocating funding to communitybased organizations to help unhoused residents meet their basic needs and to connect them with services providers that can help them attain housing.
49 Unhoused Committee Recommendation - Coordinate
Monthly Check-in Meetings with Lead Unhoused
Providers to Address Local Unhoused Issues
Community
Development
Discretionary Completed Community Development Department now leads the Unhoused Service Providers Network in monthly meetings, and will continue on an ongoing basis.
50 Unhoused Committee Recommendation - Endorse
Community Plan to End Homelessness
Administration Discretionary Completed The City Council officially endorsed this plan in 2021. 51 Unhoused Committee Recommendation - Hire Quality
of Life Officer(s)
Police Core Completed The Police Department completed the selection process to fulfill this function and report back to the City Council on progress.

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Workplan Items Update - Completed
Item # Workplan Item Responsible
Department Category Status Council Update
52 Unhoused Committee Recommendation - Explore
Differences Between a Police Officer and Community
Services Officer
Police Discretionary Completed The differences were presented to the committee and the Quality of Life Team was determined to be filled with Police Officers 53 Unhoused Committee Recommendation - Partner with
County Office of Supportive Housing to Access Their
Programs and Services
Administration/
Community
Development
Discretionary Completed The City has partnered with the Office of Supportive Housing (OSH) on several programs and participates in joint meetings with OSH and local agencies. The PLHA funding and program are attributable to the City's partnership with OSH. This item has transitioned from Administration to Community Development Department. Staff is partnering with OSH on the affordable housing development at 8th and Alexander Street and will continue to increase collaboration with OSH on affordable housing programs and services.
54 Enterprise Resource Planning Implementation (ERP) Finance Core Completed The ERP implementation was performed in 3 phases - (Ph. 1) financials, (Ph. 2) human capital management, and (Ph. 3) utility billing. All three phases are complete and systems are "Live". As the new systems are utilized to perform data processing, staff expects additional modifications and adjustments to the configuration will be warranted but the scope of this ongoing nature of this work will be minimal.
55 Enterprise, Resource, Planning Implementation ‐ Tyler Munis
Information
Technology
Core Completed The ERP implementation was performed in 3 phases - (Ph. 1) financials, (Ph. 2) human capital management, and (Ph. 3) utility billing. All three phases are complete and systems are "Live". IT's role will transition from an implementation support to an ongoing system administration role to include activities such as coordination of system updates with the software vendor, and providing user(s) security/access controls as needed.
56 Multifunction Printer Replacement (citywide) Information Technology
Core Completed The new fleet of multifunction printers has been installed across all city facilities.
57 Type I Fire Engine Build and Deployment (Rosenbauer) Fire Core Completed The Fire Department took delivery of the two Rosenbauer Type I Engines in January 2023.
58 Develop Specifications and Purchase 2nd Type I Engine and Type III Engine
Fire Core Completed The Apparatus Committee developed the Type I & Type III engine specifications. The new specifications will apply to future Type I and Type III apparatus purchases.
59 Develop and Implement Fleet Maintenance/Repairs
Alternative Solutions
Fire Core Completed Fire and fleet department staff developed and implemented a plan for the repair and maintenance of the fire departments apparatus and response vehicles.

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Workplan Items Update - Completed
Item # Workplan Item Responsible
Department Category Status Council Update
60 Customer Service Training for Employees Human Resources Core Completed Some customer service training has been provided within departments. Additionally, customer service training is covered during employee onboarding. The goal is to develop a more formal customer service training program for all new hires and a refresher course for all city staff. This will be an ongoing effort. The planning for the training has been completed, and is being implemented on an ongoing basis 61 Pursue Opportunities for City‐Owned 536 Acres at
Hecker Pass
Administration Discretionary Completed The City completed the Surplus Land Act (SLA) on the majority of the hillside property adjacent to the Gilroy Gardens Family Theme Park for entering into discussion with recreation-based businesses interested in this property. The remaining portion is currently undergoing the SLA process. Negotiations will commence with any interested parties and offers that come in under the SLA process. If nothing comes in, or no deal is reached in negotiations, the City will then determine which opportunities to continue with.
62 Pursue Opportunities for Sports Park Administration Discretionary Completed The Surplus Lands Act was completed on a portion of the Sports Park for the Ice Center, and now staff is continuing the negotiation with the Sharks. The pursuit of opportunities has been completed. 63 Pursue Grant Opportunities (SB2, REAP, ABAG, etc.) Community Development
Discretionary Completed City was awarded LEAP and REAP grants and utilized them for the Housing Element. Staff continues to seek grant funding. This item is now an ongoing practice, and is consolidated with the grant writing item that is also completed.
64 Downtown Committee Recommendation - Implement a
Façade/Painting Improvements or Plywood/Blight
Removal Program
Administration Discretionary Completed This one-year program has commenced. The City Council approved this program on January 23, 2023 for a one-year period. There will be continued advertisement of the program throughout this calendar year about the program, and staff will return with a report as the program period nears its end.
65 Downtown Committee Recommendation - Create a
Downtown Building/Planning Fee Reduction Program
Administration Discretionary Completed This two-year program has commenced. The City Council approved this program at the end of January for a two-year period. There will be continued advertisement of the program throughout this calendar year about the program, and staff will return with a report at the midpoint, and as the program nears completion of its term. 66 Downtown Committee Recommendation - Kickoff
Meeting
Administration Discretionary Completed The kickoff meeting was held in October 2022 to introduce the Downtown Jumpstart Program

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Worplan Items Update - Remaining Items
Item # Workplan Item Responsible
Department Category Status
Anticipated Completion
Timeframe (Calendar Year -
Quarter)
Council Update
1 Council Legislative Agenda - In-Lieu
Fees vs. Allocations
Community
Development
Core Pending 2024 - Q2 The policy is noted in the draft Housing Element. In preparation for Housing Element adoption and funding identification for policy development, staff intends to create an RFP for affordable housing policy(ies) development and in-lieu fee study in spring 2023. Staff anticipates bringing a proposed policy to Council in 2024. 2 Council Legislative Agenda -
Downtown/Rule 20 Undergrounding
Public Works Core Pending 2025- Q3 The PG&E Rule 20 program schedules currently have a typical twoyear time frame. These dates are estimates and often are deferred to longer timelines dependent on the availability of PG&E staff and resource availability.
3 Council Legislative Agenda -
Downtown Specific Plan
Community
Development
Core Pending 2024 - Q3 Staff continues to seek grant funding. Staff is meeting with the High Speed Rail Authority and VTA to stay informed of their plans for the transit station. Staff will coordinate efforts with the HSR Station Area Plan and the Downtown Parking Management Plan.
4 Council Legislative Agenda and
Downtown Committee
Recommendation - Parking
Management
Public Works Core In Progress 2024 - Q1 Public outreach meetings are underway. Staff and our consultant are compiling input from downtown property owners, surrounding areas and the Gilroy pubic at large to provide feedback for the overall parking analysis.
5 Council Legislative Agenda -
Downtown Parklets
Community
Development/ Public
Works
Discretionary Pending 2024 - Q2 Pending the results from the Downtown Parking Management Plan/Study, staff will resume effort on these policies. Temporary policies are in place while we await feedback from the Downtown Parking Management Plan for additional input on impacts. The work is pending the completion of the Downtown Parking Management Plan.
6 Council Legislative Agenda - Climate
Action Benchmarks
Community
Development
Mandated Pending 2024 - Q4 Staff is seeking grant funding to develop a plan, including establishing benchmarks. A consultant will be needed. Staff submitted an initial grant concept for Caltrans review in February, and will be submitting a formal grant application to fund both the Climate Action Plan and the VMT/TDM policy work.
7 Council Legislative Agenda - Economic
Incentives/Job Protection
Administration Core In Progress 2025 - Q1 The City Council has adopted the incentives program from the Downtown Committee, and has approved two incentives programs as a result. These programs commenced in February and will continue for a year, with the permit fee reimbursement program lasting two years. Staff will now be returning to Council in April to determine what job protections policies that the Council is interested in potentially pursuing.

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Worplan Items Update - Remaining Items
Item # Workplan Item Responsible
Department Category Status
Anticipated Completion
Timeframe (Calendar Year -
Quarter)
Council Update
8 Council Legislative Agenda - Public
Safety/Mental Health Response Team
Police Core Pending 2024 - Q1 When available designated staff from Mobile Crisis will respond to calls for service involving mental health crisis. The department hopes to explore a more permanent option in South County such as with PERT (Psychiatric Emergency Response Team). PD continues to search for grant opportunities to implement this program. 9 Council Legislative Agenda - Access to
Technology
Administration Discretionary In Progress 2023 - Q3 This item will now be coming to Council in April. This item is discretionary, and has been delayed due to demands on other projects and initiatives. Staff will be coming before Council to determine the policy intent of Council with addressing issues surrounding access to technology.
10 Council Legislative Agenda and
Unhoused Ad Hoc Committee
Recommendation - Safe Parking
Policy
Administration Discretionary In Progress 2024 - Q2 The Safe Parking program was presented to the City Council, and an RFP was issued. The only proposal was rejected. No safe parking program has yet been able to be implemented. These efforts have been transferred to the Community Development Department.

Future programming relating to a Safe Parking program will be evaluated in FY24.
11 Implementation of Homeless Ad Hoc
Committee Recommendations
Administration Core Removed N/A - Removed Staff is removing this broad item, as each of the individual, specific recommendations now have their own work plan items for better tracking and reporting purposes. The items are listed with the title beginning "Unhoused Committee Recommendation - " and then the specific recommendation title. All 14 items are included, both on this sheet as well as the completed items listing.
12 Develop City Logo Policy Administration Core Pending 2024 - Q2 This task has been pending the implementation of the Social Media Policy and its language protecting the use of the City Logo in those media channels . Staff will be initiating the work on this policy, and is anticipated to be completed within a year.
13 Complete EOC Operations Plan Administration Core In Progress 2023 - Q3 The Draft Emergency Operations Center (EOC) Operations Plan is currently in production. Staff will be presenting the draft plan to the City Council by the end of fiscal year 2023. The EOC Operations Plan will then be finalized after Council's review.
14 Develop Community Engagement
Plan for PG&E Power Outages
Administration Discretionary Removed N/A - Removed Staff is removing this workplan item. PG&E has made many changes over the past two years to lessen the number and frequency of shutoffs, as well as notifications, inspections, and faster reactivation of power lines. Staff attends meetings every quarter with PG&E regarding their outreach and grid improvements to lessen this need. In reviewing the past few years' worth of data, the number of public safety power shutoffs has been minimal.

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Worplan Items Update - Remaining Items
Item # Workplan Item Responsible
Department Category Status
Anticipated Completion
Timeframe (Calendar Year -
Quarter)
Council Update
15 Develop Process for Film Permits Administration Discretionary In Progress 2023 - Q3 Draft application forms and procedures have been created and internally reviewed among the City's departments. Staff is transitioning to developing fillable formats and to develop appropriate fees. Once the fee proposal is ready, staff will return with a user fee for consideration of Council to adopt. Once the fee is established, the project will complete and the process will be updated on an as-needed basis. This item should be returning to Council by this fall for fee adoption, if not before.
16 Earned Media Strategy (Media
Outreach)
Administration Discretionary Removed N/A - Removed Staff is removing this item. An earned media strategy typically is a way to induce articles in media to get more exposure without paying for it. At this time, such a strategy has not been developed yet, and is not something that is perceived to add much value for the cost of staff time to try to attract such media exposure. 17 Downtown Façade Program Administration Discretionary Consolidated N/A - Consolidated This workplan item is now consolidated with the program under the Downtown Committee Recommendation. The project is complete, as the program is in place and available to downtown businesses and property owners.
18 Update Human Resources Rules and
Regulations
Human Resources Core Pending 2024 - Q2 This update project was put on hold due to other work priorities, staffing, and Covid. However, the project is still needed. Therefore, the goal is to start the project in the third quarter of 2023 and complete it by the second quarter of 2024.
19 Update to Performance Management
System ‐ Coaching Model
Human Resources Core Pending 2023 - Q4 This project was put on hold due to other work priorities, staffing and Covid. However, a revised version of the project is needed. Staff plans to work on updated performance management forms to simplify the evaluation process by the fourth quarter of 2023. 20 Initiate Lease Purchase for Two Front
Line Type I Fire Engine and One Type
III Fire Engine
Fleet Core In Progress 2023 - Q2 Two Type I fire engines were identified and purchased using the Lease-to-Own model. The two Type I fire engines were constructed and have been received by the City. Staff is currently evaluating options for purchasing a Type III engine and any recommendations will be brought to Council for approval by the end of the second quarter of 2023.
21 Remove Dilapidated Arbor at Wheeler Facilities Mandated In Progress 2023 - Q1 Removal of the arbor is in process and will be completed in the first quarter of 2023.

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Worplan Items Update - Remaining Items
Item # Workplan Item Responsible
Department Category Status
Anticipated Completion
Timeframe (Calendar Year -
Quarter)
Council Update
22 Replace HVAC System at City Hall (if
funded)
Facilities Discretionary Pending 2023 - Q3 Engineering plans completed, however, bid was $3.8M over the $3M budgeted (total cost $6.8M) so project has been put on hold.

The next step is to validate bid in the open market. Staff has not started this bid process yet due to other workload demands so this part of the project is noted as pending. Staff is projecting to complete this step by the third or fourth quarter of 2023. 23 Phase I Assessment of Environmental
Remediation Work at Police Shooting
Range
Facilities Mandated In Progress 2023 - Q2 The selection of contractor has been initiated and the selection process will be completed by April 2023. The work is to be completed by the end of June 2023.
24 Oversee Solar Power Project
Installation on City Facilities
Facilities Core In Progress 2023 - Q4 The project was approved by the City Council. Staff expects the work to begin in the second quarter of 2023, and ending in the fourth quarter.
25 Upgrade Safety Labeling for Electrical
Panels
Facilities Mandated In Progress 2023 - Q1 Quotes for the work are being acquired, and the work is anticipated to be completed by the end of the first quarter of 2023. 26 Update General Plan Housing Element Community
Development
Mandated In Progress 2023 - Q2 On 10/31/2022, staff submitted the draft Housing Element to demonstrate how it will accommodate the 2023 – 2031 RHNA to the California Department of Housing and Community Development (HCD) for review. On 1/27/2023, HCD provided comments on the draft. Staff has been revising the draft based on HCD comments and will bring it back to the City Council for review prior to sending a revised draft to HCD for additional review and certification. 27 Publish Annual General Plan &
Housing Element Report
Community
Development
Mandated In Progress 2023 - Q2 Staff has been collecting and organizing data and will bring the annual report to City Council on 3/20/2023.
28 Implement EnerGov Land
Management System (LMS)
Community
Development
Core In Progress 2023 - Q3 Configuration was completed in fall 2022 in coordination with the consultant. Staff has been conducting user acceptance testing and will finalize system setup with the consultant. Training is anticipated to take place in mid-2023, followed by go-live preparation. 29 Update Zoning Code & Zoning Map
(Consistent with adopted General
Plan)
Community
Development
Core In Progress 2023 - Q3 Staff has been reviewing, editing, and refining the consultant's draft, along with the City Attorney. Edits and comments will be sent to the consultant, followed by consultant revisions and staff further review. Staff will present final version at public hearings with Planning Commission and City Council.
30 Develop Inclusionary
Housing/Affordable Housing Incentive
(in‐lieu fee) Policy
Community
Development
Core Consolidated N/A - Consolidated This item is duplicative with the inclusionary housing/in-lieu fee item in the Council Legislative Agenda. This item will be consolidated into the Council item moving forward.

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Worplan Items Update - Remaining Items
Item # Workplan Item Responsible
Department Category Status
Anticipated Completion
Timeframe (Calendar Year -
Quarter)
Council Update
31 Integrate GIS with LMS and Increase
GIS‐based services
Community
Development
Core In Progress 2023 - Q3 Staff has been coordinating with the GIS consultant and the LMS consultant. The GIS Analyst is expected to start in March 2023 and will help facilitate integration with LMS and increase GIS-based services.
32 Begin Downtown Specific Plan (Grant
Dependent)
Community
Development
Core Consolidated N/A - Consolidated Consolidated with the Downtown Specific Plan item in the Council Legislative Agenda.
33 Develop Traffic Level of Service (LOS)
to Vehicle Miles Traveled (VMT)
Policy (Grant Dependent)
Community
Development
Core In Progress 2024 - Q2 Staff is seeking grant funding, exploring options, and collaborating with Public Works to develop a draft policy for Council consideration. An application proposal has been sent to Caltrans for a grant opportunity. A formal application for funding for this task, as well as the Climate Action Plan, will be submitted to fund this project.
34 Develop Traffic Demand Management
(TDM) Policy (Grant Dependent)
Community
Development
Core In Progress 2024 - Q2 Staff is seeking grant funding, exploring options, and collaborating with Public Works to develop a draft policy for Council consideration. This TDM policy is also to be included in the same grant application as the VMT policy discussed above.
35 Implement Customer Bill of
Rights/Customer Service Initiatives
Community
Development
Discretionary Pending 2024 - Q1 This initiative was a discretionary item. Applicants, customers, and mandated items had to be prioritized first due to resource constraints. Staff anticipates resuming the effort in the fall of 2023. 36 Revise Ag Mitigation Policy Community
Development
Discretionary In Progress 2023 - Q4 Staff is working with the City Attorney on potential changes that can provide flexibility.
37 Revise Mobile Vending Permit
Ordinance (16A.13)
Community
Development
Discretionary In Progress 2023 - Q2 Staff is conducting research and anticipates seeking Council direction in spring 2023 for a draft mobile vending policy/ordinance. 38 Develop/Revise Permanent Parklet &
Outdoor Dining Policies
Community
Development
Discretionary Consolidated N/A - Consolidated Consolidated with the Council Legislative Agenda Item for parklets. 39 Develop Climate Action
Plan/Greenhouse Gas Reduction
Policy (Grant Dependent)
Community
Development
Core Consolidated N/A - Consolidated Consolidated with the Council Legislative Item regarding Climate Action and Benchmarks.
40 Develop and Implement Permit
Streamlining Initiatives (non‐LMS)
Community
Development
Discretionary In Progress 2023 - Q3 Staff has been taking a proactive approach to streamlining permit processes in the draft Zoning Code. This will be coming before Council in the third quarter of 2023.
41 Resume File Digitization &
Management
Community
Development
Discretionary Not Started 2024 - Q4 This initiative was a discretionary item and was not started due to resource constraints. Staff hopes to start the effort in late 2024. 42 Pilot Program to Activate Gourmet
Alley
Community
Development
Discretionary Consolidated N/A - Consolidated Consolidated with the Public Works Gourmet Alley Workplan item.

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Worplan Items Update - Remaining Items
Item # Workplan Item Responsible
Department Category Status
Anticipated Completion
Timeframe (Calendar Year -
Quarter)
Council Update
43 Update Fees and Charges Finance Core In Progress 2023 - Q3 The Citywide User Fees schedule update is complete and implemented as of July 2022. Moving forward, the user fee schedule will be adjusted annually in July based on CPI.

The City is also conducting a utility rate study to implement new water and wastewater rates. Introduction of study is expected in April, with new rates implementation to occur effective July 1, 2023. 44 Identify Funding Options For
Unfunded Infrastructure
Finance Discretionary In Progress 2023 - Q2 Staff has worked to identify funding options for projects such as the Downtown Gourmet Parking Lot, 5-Year Street Maintenance Program, and other projects such as solar installation at City facilities and financing of large fire apparatus. This workplan is ongoing in nature. The upcoming budget development will include additional funding options for infrastructure maintenance related projects. Funding for other larger projects such as the potential ice rink facility will be identified in the upcoming 5-year capital improvement program.
45 Over the Top Media Franchise Fees Finance Discretionary Removed N/A - Removed Staff is removing this workplan item. The intent for this workplan was to assess whether online video streaming/service providers are subject to City and County assessed franchise and utility fees. City of Lancaster pursued this in recent years and the Los Angeles courts ruled in favor of the streaming service providers noting that they are exempt from such fees as they do not own or operate infrastructure on public right of way that other existing cable service providers have and maintain.
46 Land Management System
Implementation ‐ Tyler EnerGov
Information
Technology
Core In Progress 2023 - Q3 The system's configuration is complete. The departments are conducting user acceptance training currently, and staff expects the system to be "live" by Summer of 2023. IT's current role is to support the implementation by procuring and coordinating installation of any hardware and 3rd party software licenses to integrate with the Tyler EnerGov system, including GIS. 47 Citywide Desktop Replacement Information
Technology
Core In Progress 2023 - Q2 City received the last fleet of computers to be replaced and expects to have them deployed by April of 2023. The computers require City configurations to be installed and end-user data to be copied prior to deployment of the system.
48 Wi‐Fi Replacement Information
Technology
Core Pending 2023 - Q4 This project is put on hold until the vacant IT Manager and Network Administrator positions are filled to conduct an assessment of the Wi-Fi network and identify the appropriate software/hardware to procure which will meet the organization's current and future needs.

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Worplan Items Update - Remaining Items
Item # Workplan Item Responsible
Department Category Status
Anticipated Completion
Timeframe (Calendar Year -
Quarter)
Council Update
49 Develop and Implement Santa Teresa
Temporary/Permanent Fire Station
Fire Core Pending 2024 - Q2 Fire staff are working with Public Works staff to identify an alternate location for the Santa Teresa Interim Fire Station with preexisting electrical and sewer connections. The current designated location on 10th Street/DeAnza Place will not be ready until at least June 2024.
50 Identify Funding for Chestnut & Las
Animas Station Retrofit Plan
Fire Core In Progress 2023 - Q2 Fire staff are developing a plan with the facilities and public works departments to prioritize seismic retrofit and station modifications, and then determine when partial or full funding will be available to complete this project.
51 Develop and Implement Plan for Over
the Air Mapping
Fire Core Pending 2024 - Q1 The Fire Department received grant funding to purchase new tablets that are compatible with the new CAD system to replace the outdated MDT's on fire apparatus. Once the tablets are placed in service, the over the air mapping feature will be implemented. 52 Improve RMS Incident Data Reporting Fire Core Pending 2024 - Q1 Staff has developed new tabs that capture additional incident data in RMS. Staff has also identified a software program that can analyze the RMS response data to provide more thorough analysis of the Department's emergency responses. The new program will be included in the upcoming FY 24 & 25 budget requests. 53 Incorporate County Mobile Crisis
Response Team
Fire Discretionary Removed N/A - Removed Staff is removing this workplan item due to lack of adequate county mental health facilities to accommodate excessive patient load, and the delay by SCCEMSA to fully implement a countywide behavioral health alternative destination program. City has engaged the County in providing more mental health/addiction services.
54 Implement Legislative Reforms and
Mandates
Police Mandated In Progress 2023 - Q3 AB481 requires annual update to Council on military equipment inventory and use. Scheduled for May 2023. Concealed Carry Weapon (CCW) ruling by Supreme Court removes 'good cause' for CCW application. A policy formalizes the process to issue CCW permits. Most California LEA are completing CCW policies.

The Department will be mandated to constantly implement reforms and mandates as legislation is passed. These are two of the most current mandates the Department is required to complete. 55 Implement Employee Wellness &
Resiliency Program
Police Core In Progress 2023 - Q2 State of California BSCC granted all CA LEA funding to implement or expand peer support/wellness programs. GPD received $43,000 to use by December 2025. This item is scheduled for budget amendment 2/27/23.

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Worplan Items Update - Remaining Items
Item # Workplan Item Responsible
Department Category Status
Anticipated Completion
Timeframe (Calendar Year -
Quarter)
Council Update
56 Conduct a Community Survey Police Discretionary Not Started 2024 - Q2 The Department will explore best practices and methods available to ensure that the survey method chosen is inclusive and addresses the entire community. The Department will benchmark best practices for completing this workplan item. The Department is looking into a grassroots, listening groups and other inclusive and dynamic dialogue methods in the approach to the survey. The Department will be coordinating with SCYTF to assist.
57 Reimplement The CPA: Reimagine
New Community Engagement
Program
Police Discretionary In Progress 2023 - Q3 The Department has completed the Spanish CPA, and anticipates hosting an English CPA this fall. Two youth academies have been held with high success rates with another scheduled for Summer 2023.
58 Establish Supervisor Mentorship
Program
Police Discretionary In Progress 2024 - Q1 Initial presentation provided to supervisory group. Two sergeants were identified and selected to explore and develop new program.

Various programs are being analyzed and will be discussed at the Department's Team Building Workshop in May of 2023.
59 Develop the Police Department's 3
year Strategic Plan
Police Discretionary In Progress 2023 - Q3 The Team Building Workshop (TBW) attended by department supervisory staff will work with a POST representative to formalize the department's strategic plan.
60 Evaluate the South County Pilot
Psychiatric Emergency Response
Team (PERT)
Police Discretionary Consolidated N/A - Consolidated This item is a duplicate of the Council's Legislative Agenda Item Public Safety/Mental Health Response Team, and is being consolidated into that report.
61 Develop a Department Succession
Plan
Police Discretionary In Progress 2023 - Q3 The Department applied for and received a grant from the State for a supervisory Team Building Workshop where the succession plan will be drafted in June of 2023. A committee will be formed to formalize a succession plan and mentorship program (workplan) using law enforcement best practices.
62 Promote Neighborhood Watch
Program (NWP)
Police Discretionary Not Started 2024 - Q3 Department continues to recruit for vacant positions and hopes by 2024 Q3 to have designated positions available to implement a NWP. In the meantime, staff communicates with the public steps to take to enhance community safety through social media,
presentations and community events.
63 Install New Back‐Up Generator at City
Hall (Grant Funded)
Public Works Core In Progress 2023 - Q3 Redesign of the electrical connection has been underway with PG&E since Q3 of last year. Completion of the design should be done in March of 2023 allowing the construction to be completed by June of 2023.
64 Replace Steel Water Service Lines Public Works Core In Progress 2028 - Q2 At the rate of 50 replacements per year our staff has another five years to complete. This schedule has been coordinated with the State Water Authority which they have approved.

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Worplan Items Update - Remaining Items
Item # Workplan Item Responsible
Department Category Status
Anticipated Completion
Timeframe (Calendar Year -
Quarter)
Council Update
65 7th/Eigleberry Parking Lot
Construction
Public Works Discretionary In Progress 2023 - Q2 PG&E is scheduled to install the transformer for the project at the end of March 2023. Upon this final construction milestone the parking lot will be fully functional for overhead lighting, irrigation controls and the auto charging stations.
66 Upgrade Residential Fire Hydrants Public Works Core In Progress 2030 - Q2 Staff is replacing one per month equating 12 per year. This is the reason the completion date is approximately 2030.
67 Conduct Park Trees Assessment Public Works Discretionary In Progress 2024 - Q4 Our tree maintenance consultant has scheduled the completion of this assessment by end of Calendar 2024
68 Development of a Downtown Parking
Management Plan
Public Works Discretionary Consolidated N/A - Consolidated Consolidated with the Downtown Parking Management Plan Council Legislative Agenda item.
69 Climate Action Benchmarks Public Works Discretionary Consolidated N/A - Consolidated Consolidated with the Climate Action Plan item in the Community Development Department's workplan
70 Support Project to Activate Gourmet
Alley
Public Works Discretionary In Progress 2024 - Q4 Staff is reviewing 50% design plans and will be sharing progress with City Council before final approval of construction documents. Staff completed and was awarded the Clean California Grant which will help activate Gourmet Alley. Additional downtown incentives from the Jumpstart Downtown initiative will aid in activating Gourmet Alley. All Gourmet Alley Work is consolidated under this workplan item.
71 Development of a Permanent Parklet
Policy with CDD
Public Works Discretionary Consolidated N/A - Consolidated Consolidated with the Community Development parklet policy item. 72 Unhoused Committee
Recommendation - Organize
Community Cleanup Days
Administration/
Community
Development
Discretionary In Progress 2023 - Q4 This project will commence with the start of the Gourmet Alley Cleanup days, and transition into broader community cleanup days scheduled for volunteers. This is also part of the new initiative that was announced at the February 27th regular City Council meeting. 73 Unhoused Committee
Recommendation - Research Agency
to Provide Drug Rehab, Job Training
and Placement
Administration/
Community
Development
Discretionary Pending 2023 - Q4 Staff applied for grant funding for a drug rehabilitation service to be held within Gilroy, but was not awarded funding. As part of that process, the City reached out to several organizations to recruit to provide this service in Gilroy. None of the organizations responded.

This is dependent on an outside organization being willing to provide these services in Gilroy.
74 Unhoused Committee
Recommendation - Support a Mobile
Garbage Removal Program
Administration/
Community
Development
Discretionary In Progress 2023 - Q3 Staff commenced a contract with a vendor. Due to the existing cleanups and additional work that arose, the contract was consumed in clearing existing encampments of garbage and other garbage issues. Staff announced the start of a new garbage initiative, featuring various means of removing garbage in the city.

This will become an ongoing project.

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Downtown Committee Workplan Update - Remaining Items
Item # Workplan Item Responsible
Department Category Status
Anticipated
Completion
Timeframe (Calendar
Year - Quarter)
Council Update
1 Downtown Committee
Recommendation - Update the
Downtown Strategic Plan
Administration Discretionary Pending 2023 - Q3 Work on this item will be initiated in the first quarter of FY24. The City will be issuing an RFP to hire a consultant to update the strategic plan for the City's downtown area.
2 Downtown Committee
Recommendation - Develop New
Ordinances to Address Vacancies and
Noise
Administration Discretionary Pending 2023 - Q3 This recommendation has not started yet. We have taken initial review of an existing ordinance about vacant properties, involving a registration system, fee, and monitoring. Staff will be evaluating the program to determine if the ordinance is still line effect, due to a sunset provision. Staff will also be working on determining the legality of such ordinances regarding vacancies, and will be reviewing other downtown noise ordinances in the region to put together best practices. The timeframe for the noise ordinance to come back for direction would be in the third quarter of 2023, if not before. The timeframe for the vacancies ordinance is not currently known, due to the research and possibility of it not being legally permissible. Staff will bring an update on this item at the same time as the noise ordinance. 3 Downtown Committee
Recommendation - Pursue
Opportunities for an Assessment
District.

Administration Discretionary In Progress 2023 - Q2 The Downtown Property Business Improvement District feasibility study is underway. The consultant and City staff held a meeting with participating property owners virtually on February 13, 2023. The next stages are for property owners to petition for a ballot to place the assessment district to a vote. Until a qualifying petition is received, the process cannot move forward towards formation. City staff will remain available to assist if a steering committee is formed and continues to work on gathering any petitions. 4 Council Legislative Agenda and
Downtown Committee
Recommendation - Parking
Management
Public Works Core In Progress 2024 - Q1 Public Outreach meetings are underway. Staff and our consultant are compiling input from downtown property owners, surrounding areas and the Gilroy pubic at large to provide feedback for the overall parking analysis. 7 Downtown Committee
Recommendation - Establish a
Downtown Pop-Up Park
Administration Discretionary In Progress 2023 - Q2 Staff is collaborating with the GDBA and will be determining what the park concept will be like. This item will return to Council in May of 2023 for confirmation of design concept, project budget determination, and timeframe.
8 Downtown Committee
Recommendation - Develop
Beautification and Decorative Lighting
Improvements
Administration Discretionary In Progress 2023 - Q2 The City Council approved $100,000 towards this recommendation for developing beautification and decorative lighting in the Gilroy Downtown.

Staff has commenced work on this project, and has been working with the Gilroy Downtown Business Association. Tree trimming in the area will take place in the next few weeks, with lighting improvements being installed during the first weeks of April 2023.

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Gilroy City CouncilMarch 6, 2023

Gilroy City Council
March 6, 2023