City of Gilroy
STAFF REPORT
Agenda Item Title: Award a Contract to Teichert Construction for the FY23 Citywide Pavement Rehabilitation Project No.
23-PW-278 and Approve a Total Project Expenditure
of $6,688,412
Meeting Date: May 1, 2023
From: Jimmy Forbis, City Administrator
Department: Public Works
Submitted By: Daryl Jordan, Public Works Director
Prepared By: Julie Oates, Engineer II
STRATEGIC PLAN GOALS Maintain and Improve City Infrastructure
RECOMMENDATION
a) Adopt a resolution of the City Council of the City of Gilroy amending the budget for the City of Gilroy for Fiscal Year 2022-2023 and appropriating proposed expenditure amendments; and
b) Award a Contract to Teichert Construction in the amount of $6,080,374.35 with an additional project contingency of $608,037.65 (10%), for a total construction cost of $6,688,412.00 for the FY23 Citywide Pavement Rehabilitation Project, No. 23-PW278, and authorize the City Administrator to execute the contract and associated documents.
EXECUTIVE SUMMARY
On November 16, 2020, Council approved the Capital Improvement Program for Fiscal Years 2020-2021 through 2024-2025. Council adopted the Fiscal Year 2022 and Fiscal Year 2023 Biennial Budget on June 7, 2021, and approved the City’s 5-Year Street Repair Program on September 13, 2021.
Staff received three bids for constructing the FY23 Citywide Pavement Rehabilitation Project, No. 23-PW-278 (Project). The lowest responsive Base Bid (including 10%
8.2 p. 173 of 1163
Award a Contract to Teichert Construction for the FY23 Annual Citywide Pavement Rehabilitation Project No. 23-PW-278
City of Gilroy City Council Page 2 of 4 May 1, 2023 1
0 contingency) was $4,025,450. The Project solicited four Bid Alternates in addition to the base bid. The total Project cost for the Base Bid and the four Bid Alternates (including 10% contingency) is $6,688,412. Additional fund balances in the various street funds have accrued due to increased Gas Tax and SB-1 contributions. These additional funds are being proposed to be incorporated into the overall project costs. Staff recommends Council adopt a resolution to amend the budget for Fiscal Year 2022-2023 and increase appropriations by $2,887,660 in Gas Tax Funds (205) and by $400,752 in SB-1 Road Funds (210) to fully fund the Project.
BACKGROUND
On March 8, 2021, Public Works Engineering staff presented an Introduction to the City’s 5-Year Street Repair Program. This included discussions on pavement alternatives, pavement restoration approaches, pavement program funding scenarios, and funding options. Through those discussions, Council approved a blended pavement restoration approach and approved an increase to the City’s annual paving budget from $1.8M per year to $3.9M per year for the next five years to improve the City’s Pavement Condition Index (PCI) from its then-current rating of 62 to a projected rating of 67.
On September 13, 2021, Council approved the City’s 5-Year Street Repair Program.
Construction of the FY22 Citywide Paving Project began in August 2022 and included pavement milling and asphalt concrete overlay, asphalt rubber cape seal, slurry seal, micro surfacing, installation of ADA-compliant curb ramps, striping improvements, and other incidental work. Due to cold-weather temperatures that occurred unusually early in the season, the FY22 Citywide Paving Project was suspended in October 2022. The FY22 Citywide Paving Project is now resuming and is expected to be completed within the next several weeks.
The street segments included in the FY23 Citywide Pavement Rehabilitation Project are listed in Attachment 1. Public Works Department staff selected the Project’s Street segments based on the City’s pavement management software program, StreetSaver.
The list of streets was previously approved by Council, and feedback was received from the Public Works Operations Street Maintenance Section.
ANALYSIS
In addition to the 116 street segments in the Base Bid, the FY23 Citywide Pavement Rehabilitation Project also included the following five Bid Alternates:
1. Santa Barbara Drive from Third Street to Montebello Drive (Grind & Overlay)
2. Mantelli Drive from Santa Teresa Blvd to Calle Del Rey (Grind & Overlay)
3. Montebello Drive from Santa Barbara Drive to Wren Avenue (Grind & Overlay)
4. Leavesley Road from Arroyo Circle to City Limit (Grind & Overlay)
5. Leavesley Road from Arroyo Circle to City Limit (Full Depth Reclamation) Bid Alternates 4 and 5 are the same segment of Leavesley Road but utilize different pavement treatments. Bid Alternate 5 provides a lower cost than Bid Alternate 4,
8.2 p. 174 of 1163
Award a Contract to Teichert Construction for the FY23 Annual Citywide Pavement Rehabilitation Project No. 23-PW-278
City of Gilroy City Council Page 3 of 4 May 1, 2023 1
0 resulting in an equal or better product. As a result, Bid Alternate 4 has been excluded from further consideration.
The FY23 Citywide Pavement Rehabilitation Project was advertised in the San Jose Mercury News and on the City’s website on March 10, 2023. Staff conducted the bid opening on April 3, 2023. Staff received three bids for the Project. A summary of the bids is provided below.
Description of Work Teichert
Construction
McKim
Corporation
Granite Rock
Company
Base Bid - 116 Street Segments at
Various Locations (Various
Treatments)
$3,659,500.00 $3,750,428.10 $4,040,270.69
Bid Alternate No. 1 - Santa Barbara
Dr from Third St to Montebello Dr
(Mill & 2-Inch Overlay)
$231,805.50 $275,174.50 $201,739.50
Bid Alternate No. 2 - Mantelli Dr
from Santa Teresa Blvd to Calle Del
Rey (Mill & 3-Inch Overlay)
$522,369.70 $718,308.03 $603,530.25
Bid Alternate No. 3 - Montebello Dr
from Santa Barbara Dr to Wren Ave
(Mill & 2-Inch Overlay)
$292,227.50 $361,476.88 $276,627.50
Bid Alternate No. 5 - Leavesley Rd
from Arroyo Cir to City Limit (Full
Depth Reclamation)
$1,374,471.65 $1,621,520.30 $1,064,361.65
Total $6,080,374.35 $6,726,907.81 $6,186,529.59
The lowest responsive bid was determined by a complete bid submittal package, including the Base Bids. Staff recommends awarding the contract to the lowest responsive bidder, Teichert Construction, with a total bid of $6,080,374.35 (including Bid Alternates 1, 2, 3, and 5). The Engineer’s estimate was prepared using the City’s historical data from previous similar projects and by analyzing trends in the public works construction industry. The lowest responsive Base Bid is approximately one percent higher than the Engineer’s Estimate. When including the Bid Alternates, the overall lowest responsible bidder’s bid is approximately 7% higher than the Engineer’s Estimate.
ALTERNATIVES
The alternative to the staff recommendation is to reject all bids. Staff does not recommend this option.
FISCAL IMPACT/FUNDING SOURCE
The Total Bid, including the Base Bid and Bid Alternates 1, 2, 3, and 5, is $6,080,374.35. Staff recommends including a contingency of $608,037.65 (10%) for a total construction allocation of $6,688,412.00. The 10% contingency accounts for
8.2 p. 175 of 1163
Award a Contract to Teichert Construction for the FY23 Annual Citywide Pavement Rehabilitation Project No. 23-PW-278
City of Gilroy City Council Page 4 of 4 May 1, 2023 1
0 unforeseen conditions or necessary field changes in the scope of work during construction. In June 2021, Council adopted the FY22 and FY23 Operating and Capital budgets and appropriated $3,400,000 for the FY23 Annual Paving Program from the General Fund (Fund 100), SB-1 Road Funds (210), and Measure B (212).
Council approved the City’s 5-Year Street Repair Program on September 13, 2021. At that time, the staff report identified an additional $500,000 from either SB-1 or Measure B fund balances, for a total of $3,900,000 in funding for the FY22 and FY23 Citywide Pavement Maintenance Projects.
Staff recommends the City Council adopt a resolution to amend the FY23 budget to appropriate an additional $3,288,412 for a total of $6,688,412 to construct the Project.
There are sufficient funds in Gas Tax Funds (205) and SB-1 Road Funds (210) to fully fund the Project.
Funding Source Adopted FY23 Budget Proposed FY23 Budget Proposed Budget Amendment
210 – Road Funds $900,000 $1,300,752 $400,752
212 – Measure B $900,000 $900,000 $0
205 – Gas Taxes $0 $2,887,660 $2,887,660
100 – General Fund $1,600,000 $1,600,000 $0
Total $3,400,000 $6,688,412 $3,288,412
PUBLIC OUTREACH
Project stakeholders, including residents, schools, and businesses affected by the Project, will be notified ten working days and 48 hours in advance of the start of construction in each neighborhood. The City will also conduct extensive public outreach through a social media campaign.
NEXT STEPS
Upon the Council’s approval of this contract, the contract will be executed, and Staff will work with the contractor to develop a final project schedule. Construction is expected to begin in June 2023 and be completed in October 2023.
Attachments:
1. FY23 Citywide Pavement Rehabilitation Project Street Segments
2. Draft Resolution Budget Amendment
3. Teichert Construction - Agreement
8.2 p. 176 of 1163
RESOLUTION 2023-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GILROY AMENDING THE BUDGET FOR THE CITY OF
GILROY FOR 2022-2023 AND APPROPRIATING
PROPOSED EXPENDITURE AMENDMENTS
WHEREAS, the City Administrator prepared and submitted to the City Council a budget for the City of Gilroy for Fiscal Years 2021-2022 and 2022-2023, and the City Council carefully examined, considered, and adopted the same on June 7, 2021; and WHEREAS, City Staff has prepared and submitted to the City Council proposed amendments to said budget for Fiscal Year 2022-2023 for the City of Gilroy in the staff report dated May 1, 2023, for the FY23 Citywide Pavement Rehabilitation Project, City Project No. 23-PW-278.
NOW, THEREFORE, BE IT RESOLVED THAT the appropriations for Fiscal Year 2022-2023 for the Gas Taxes Fund 205 shall be increased by $2,887,660 and the Roads Fund 210 shall be increased by $400,752.
PASSED AND ADOPTED by the City Council of the City of Gilroy at a regular meeting duly held on the 1st day of May 2023 by the following roll call vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
APPROVED:
Marie Blankley, Mayor
ATTEST:
_______________________
Thai Nam Pham, City Clerk
8.2 p. 177 of 1163
FY23 Citywide Pavement Maintenance Project Street Segments - Base Bid Segment No Street Name From To
1 ADAMS CT MURRAY AVE END
2 ANSON CT LEARNARD WY END
3 APACHE CT END RODEO DR
4 ARAPAHO DR DURANGO LN BENBOW DR
5 ARNOLD DR CULDESAC HANNA ST CULDESAC EAST
6 AVEZAN WAY TATUM AVE ST CLAR AVE
7 BABBS CREEK DR THOMAS RD END
8 BENBOW DR SAGE HILL DR ARAPAHO DR
9 BENNETT CT SEVERANCE ST END
10 BENNETT ST CHURCH ST SEVERANCE ST
11 BERRYBUSH CT OAK BROOK WY END
12 BLACKBERRY CT OAK BROOK WY END
13 BOSQUE ST JARDIN WY TAOS WY
14 BRAZOS ST JARDIN WY TAOS WY
15 BRIARBERRY LN RANCHO HILLS DR PHEASANT DR
16 CALLE DEL REY LERMA LN LONG MEADOW DR
17 CHAPPELL CT END CHURCH ST
18 CHURCH ST LONDON DR TENTH ST
19 CHURCH ST LAS ANIMAS AV FARRELL AVE
20 CIMINO ST LUCHESSA AVE CHARLES LUX DR
21 COLUMBINE CT MANTELLI DR BULBOUT
22 CONNELL CT LAS ANIMAS AV END
23 CUMBERLAND DR MILLER AVE ORCHARD DR
24 DURANGO LN WAGON WY ARAPAHO DR
25 EL INVIERNO DR WREN AVE EL VERANO WY
26 EL TORO DR HANNA ST LA COCHE WY
27 EL VERANO WY LA PRIMAVERA WY EL INVIERNO DR
28 FELLOM CT MURRAY AV END
29 FERAGALLI CT HIRASAKI DR CUL DE SAC
30 FESTA AGLIO CT HIRASAKI DR CUL DE SAC
8.2 p. 178 of 1163
FY23 Citywide Pavement Maintenance Project Street Segments - Base Bid Segment No Street Name From To
31 FESTA AGLIO DR HIRASAKI AV PADOVA DR
32 FINCH LN TWINBERRY WY LOGANBERRY DR
33 FINE DR RIDGEWAY DR LEARNARD WY
34 FOREST ST OLD GILROY ST SIXTH ST
35 FREEMAN CT LAS ANIMAS RD END
36 GARFIELD CT MURRAY AV END
37 GASCONY CT AVEZON WAY CUL DE SAC
38 GLENWOOD DR EL CERRITO WY WELBURN AVE
39 GOSHAWK CT END LOGANBERRY DR
40 GRANT CT MURRAY AVE END
41 GREYSTONE CT KERN AVE END
42 HACIENDA DR ORTEGA CIR END
43 HANNA ST WELBURN AVE NORTH END
44 HERITAGE WY LIONS CREEK DR SOLEDAD ST
45 HIRASAKI AVE LONG MEADOW DR END
46 HOGAN WY END SADDLER DR
47 JACARANDA WY SOUTH END NORTH END
48 JARDIN WY BRAZOS ST BOSQUE ST
49 KENNEDY CT MURRAY AV END
50 LA ALONDRA WY WREN AVE WELBURN AVE
51 LA PALOMA WY WREN AVE WELBURN AVE
52 LA PRIMAVERA WY WREN AVE TAOS WAY
53 LARIAT DR SAGE HILL DR ARAPAHO DR
54 LAS ANIMAS AV MONTEREY RD 750' E/O MONTEREY RD
55 LEARNARD WY MANTELLI DR BRENTWOOD LN
56 LILLY AVE LIMAN AVE RONAN AVE
57 LOGANBERRY DR PARTRIDGE DR PHEASANT DR
58 LONE DEER WY LONGMEADOW DR END
59 MADISON CT MURRAY AV END
60 MARIPOSA ST ORINDA WY JACARANDA WY
8.2 p. 179 of 1163
FY23 Citywide Pavement Maintenance Project Street Segments - Base Bid Segment No Street Name From To
61 MARTIRI CT HIRASAKI DR CUL DE SAC
62 MARTIRI DR HIRASAKI AV PADOVA DR
63 MOCKINGBIRD LN RED HAWK DR PHEASANT DR
64 MONTICELLI CT HIRASAKI DR CUL DE SAC
65 MONTICELLI DR HIRASAKI AV PADOVA DR
66 MORO CT HIRASAKI DR CUL DE SAC
67 MORO DR HIRASAKI AV PADOVA DR
68 MURAOKA DR NAGAREDA DR YAMANE DR
69 NAGAREDA DR FOREST DR MURAOKA DR
70 NINTH ST HANNA ST CHURCH ST
71 OAK BROOK WY THOMAS RD GREENFIELD DR
72 OLD GILROY ST CHESTNUT ST CROCKER LN
73 OLEA CT W END CDS E END CDS
74 ORINDA WY MARIPOSA ST LONG MEADOW DR
75 OUSLEY DR MUIR DR SOLIS DR
76 PADOVA DR SIENA CT MORO DR
77 PAMPAS LN ORINDA WY JACARANDA WY
78 PARTRIDGE DR END CALLE DEL REY
79 PEACOCK CT CALLE DEL REY END
80 PHEASANT DR THISTLE WY CALLE DEL REY
81 POLK CT MURRAY AVE END
82 RANCHO HILLS DR MANTELLI DR CARRIAGE DR
83 RANCHO HILLS DR VALLEY OAKS DR NORTHERN TERMINUS
84 RASPBERRY CT OAK BROOK WY END
85 RED HAWK DR MOCKINGBIRD LN CALLE DEL REY
86 RIDGEWAY DR RANCHO HILLS DR FINE DR
87 RONAN AVE WREN AVE CHURCH ST
88 SAGE HILL DR RODEO DR BENBOW DR
89 SAGEWOOD CT RED HAWK DR NORTH END (CUL-DE-SAC)
90 SANTA PAULA DR SAN MIGUEL DR HACIENDA DR
8.2 p. 180 of 1163
FY23 Citywide Pavement Maintenance Project Street Segments - Base Bid Segment No Street Name From To
91 SENEGAL CT CUL DE SAC LOGANBERRY DR
92 SHERWOOD DR CULDESAC HANNA ST CULDESAC EAST
93 SIENA CT HIRASAKI DR CUL DE SAC
94 SIENA DR HIRASAKI DR SORRENTO CT
95 SIXTH ST CHESTNUT ST ROGERS LN
96 SNOWBERRY CT OAK BROOK WY END
97 SOLEDAD ST HERTIAGE WY LERMA LN
98 SORRENTO CT HIRASAKI DR CUL DE SAC
99 SORRENTO DR HIRASAKI DR PADOVA DR
100 ST CLAR AVE KERN AVE AVEZAN WAY
101 STEPHAN CT PRINCEVALLE ST END
102 SWALLOW LN TWINBERRY WY LOGANBERRY DR
103 TAOS WAY RONAN AVE LA PRIMAVERA WAY
104 TATUM AVE KERN AVE AVEZAN WAY
105 THIRD ST SANTA BARBARA DR 240' EAST OF SANTA PAULA DR 106 THISTLE WY PHEASANT DR BRIARBERRY LN
107 TRIMBLE CT CHURCH ST CUL DE SAC
108 TWINBERRY WY FINCH LN SWALLOW LN
109 VALBUSA DR SOLANA DR JACARANDA WY
110 WEAVER CT END WOODWORTH WY
111 WILLY CT MURRAY AV CUL DE SAC
112 WREN AVE UVAS PARK DR SIXTH ST
113 WREN AVE RONAN AVE TATUM AVE
114 YAMANE DR MURAOKA DR FOREST DR
115 DOWDY/CARMEL SEVENTH ST EIGHTH ST
116 CARMEL/PRINCEVALLE SEVENTH ST EIGHTH ST
FY23 Citywide Pavement Maintenance Project Street Segments - Bid Alts Segment No2 Street Name From To
BID ALT 1 SANTA BARBARA THIRD ST MONTEBELLO DR
BID ALT 2 MANTELLI DR CALLE DEL REY SANTA TERESA BLVD
BID ALT 3 MONTE BELLO DR SANTA BARBARA DR WREN AVE
BID ALT 5 LEAVESLEY RD 200' E/O ARROYO CIR CITY LIMIT
8.2 p. 181 of 1163
8.2 p. 182 of 1163
8.2 p. 183 of 1163
8.2 p. 184 of 1163
8.2 p. 185 of 1163
8.2 p. 186 of 1163
8.2 p. 187 of 1163
8.2 p. 188 of 1163
8.2 p. 189 of 1163
8.2 p. 190 of 1163
8.2 p. 191 of 1163
8.2 p. 192 of 1163
City of Gilroy
STAFF REPORT
Agenda Item Title: Approval of a Third Amendment to the Agreement for Professional Services with Park Consulting Group in
the amount of $379,760 for the Tyler EnerGov Land
Management System Implementation Completion
($181,810) and Post-Production Issue Resolution,
Support, and Enhancement Services ($197,950)
Meeting Date: May 1, 2023
From: Jimmy Forbis, City Administrator
Department: Community Development
Submitted By: Sharon Goei, Community Development Director Prepared By: Sharon Goei, Community Development Director STRATEGIC PLAN GOALS Not Applicable
RECOMMENDATION
Approve and authorize the City Administrator to execute the third amendment to the Agreement for Professional Services with Park Consulting Group for the following tasks:
a) Extending the Agreement through August 31, 2023, and adding $181,810 to the current Agreement, increasing the total not-to-exceed amount to $465,810, to complete implementation of the Tyler EnerGov Land Management System; and b) Further extending the Agreement through June 30, 2025, and adding $197,950 to the Agreement, increasing the total not-to-exceed amount to $663,760, for twentytwo months of post-production issue resolution, support, and enhancement services in FY 2024 and 2025.
EXECUTIVE SUMMARY
Since 2022, City staff, particularly the subject matter experts on each functional team, have been making significant efforts, working in collaboration with Park Consulting Group (PCG) in the implementation of the Tyler EnerGov Land Management System.
8.3 p. 193 of 1163
Approval of a Third Amendment to the Agreement for Professional Services with Park Consulting Group in the amount of $379,760 for the Tyler EnerGov Land Management System Implementation Completion ($181,810) and Post-Production Issue Resolution, Support, and Enhancement Services ($197,950)
City of Gilroy City Council Page 2 of 6 May 1, 2023
Due to prioritization for mandatory workplan items across City teams and departments, staff has worked with PCG to develop a revised timeline. The current Professional Services Agreement amount of $284,000 with PCG has been able to absorb several months of the extended timeline. Staff recommends an amendment to the Agreement, increasing the total contract amount by $379,760 to the new total of $663,760 and extending the Agreement to June 30, 2025, for the following tasks:
1. $181,810 for finalizing the EnerGov system configuration and providing user training support, production cutover preparation, on-site go-live support, and post-go-live issue resolution and stabilization.
2. $197,950 for extending the agreement for two additional years of post-production issue resolution, support, and enhancement services in FY 2024 and 2025.
Staff looks forward to launching the Tyler EnerGov Land Management System and continuing system improvements to increase efficiencies for City teams and enhance services for customers and applicants.
BACKGROUND
In December 2021, the City executed a Professional Services Agreement with Park Consulting Group (PCG) in the amount of $284,000 for the continued implementation of the Tyler EnerGov Land Management System (LMS) project. The project experienced challenges and delays in 2020 and 2021 that a prior consultant was not able to overcome, at which point City staff evaluated and determined that an alternate consulting firm with direct experience implementing EnerGov would be needed to assist the City with EnerGov system implementation.
Park Consulting Group commenced work on the EnerGov LMS project in January 2022.
Since then, Park Consulting Group has been working with City staff and has been performing system design and configuration; developing case types and workflow; mapping data and migration activities; managing project timeline and deliverables; providing continuous communication with City staff; and proactively identifying and addressing issues and conflicts within the project team and third-party vendor partners (such as Tyler and Lynx Technologies).
ANALYSIS
Staff is seeking to amend the City’s Professional Services Agreement with Park Consulting Group (PCG) to complete the project activities to achieve system go-live and to have PCG provide close to two years of post-production issue resolution, support, and enhancement services for the City’s Tyler EnerGov Land Management System.
The EnerGov LMS project was restarted in January 2022 with PCG to replace the existing SunGard system capabilities and processes as well as to deploy EnerGov’s extended system capabilities to better serve City staff and customers. These
8.3 p. 194 of 1163
Approval of a Third Amendment to the Agreement for Professional Services with Park Consulting Group in the amount of $379,760 for the Tyler EnerGov Land Management System Implementation Completion ($181,810) and Post-Production Issue Resolution, Support, and Enhancement Services ($197,950)
City of Gilroy City Council Page 3 of 6 May 1, 2023
capabilities include centralized processing and tracking of permits and plans, including processes currently outside of SunGard, such as integrated cashiering. The capabilities also include expanded online services such as the community portal, online inspection requests, online invoice payments, and digital plan submittal processing for all plan reviews. The project’s go-live date was rescheduled to October 2022.
As the project progressed forward, prioritization for mandatory workplan items had to take place across Community Development, Public Works, and Information Technology teams. City staff has re-planned the project and extended the timeline to complete the core system configuration, development, and user testing and training activities by spring 2023, with a new projected go-live date in June/July 2023 and stabilization through August 2023.
EnerGov System Set-up, Training Support, Go-Live, and Post-Go-Live Stabilization
The current Agreement amount with PCG has been able to absorb several months of the extended timeline. Staff is now seeking an amendment to extend funding to have consultant support with system go-live and post-go-live stabilization, which include finalizing the EnerGov system configuration and providing user training support, production cutover preparation, on-site go-live support, and post-go-live issue resolution and stabilization.
Staff is seeking an amendment to the Agreement to extend funding by $181,810 for these professional services. Park Consulting Group would provide services as summarized below:
Finalize EnerGov System Set-up and Configuration: PCG would set up and stabilize the EnerGov back-end in preparation for go-live, including Geographic Information System (GIS), Bluebeam (plan/drawing markup tool), and data conversion. PCG would address configuration change impacts due to feedback during user acceptance testing with Tyler Technologies and staff subject matter experts. PCG would coordinate closely with Tyler to implement configuration and system changes.
Provide Training Support: PCG would support staff subject matter experts in training preparation and end-user training. PCG would share examples and best practices to assist in developing standard operating procedures for City staff and instructional guides for applicants. PCG would provide support services in developing a training plan, training environment deployment, training documentation, and coordination of end-user training. PCG would update the configuration from feedback during training with Tyler Technologies.
Prepare EnerGov Cutover and Go-Live: PCG would provide the City support services for go-live preparation. This would include cutover support with Tyler Technologies to make final preparations for the City’s EnerGov system go-live.
8.3 p. 195 of 1163
Approval of a Third Amendment to the Agreement for Professional Services with Park Consulting Group in the amount of $379,760 for the Tyler EnerGov Land Management System Implementation Completion ($181,810) and Post-Production Issue Resolution, Support, and Enhancement Services ($197,950)
City of Gilroy City Council Page 4 of 6 May 1, 2023
Provide EnerGov Go-Live Support Services: During the go-live week, PCG would provide support on-site, working directly with staff to resolve issues. Services would include PCG providing operations and functional user support to resolve configuration and functional issues. Services would also include PCG supporting the design, configuration, deployment, and resolution of priority enhancements during the go-live week.
Perform EnerGov Fee Configuration: PCG would configure fee updates based on the fee schedules effective July 2023.
Provide Post-Go-Live EnerGov Issue Resolution and Stabilization Services: PCG would perform system troubleshooting, including reporting and system changes. PCG would work closely with City staff to resolve issues arising in the immediate months after go-live. PCG would also coordinate with City staff to implement priority system enhancements.
EnerGov Post-Production Issue Resolution, Support, and Enhancement Services After EnerGov go-live and stabilization through August 2023, staff recommends that the City continue the Professional Services Agreement for PCG to provide close to two years of post-production issue resolution, support, and enhancement services for the City’s Tyler EnerGov Land Management System. These services total $197,950 for ten months in FY 2024 and 12 months in FY 2025 and would include issue resolution, support, and enhancement services; report development services; and fee configuration services. These services will maintain the continuity of knowledge and technical expertise, and extending the Agreement to FY 2025 at this time provides predictability and stability of costs.
The EnerGov post-production issue resolution, support, and enhancement services would include the following at $164,200 for 22 months ($7,300 per month for 4 months and $7,500 per month for 18 months): PCG would provide feedback on leading best practices to maximize system capabilities. PCG would provide services in supporting and improving EnerGov configuration, including case types, workflows, custom fields, citizen portal configuration, and fees. PCG would provide configuration details for issues resolved and enhancements deployed. PCG would review City-developed reports and configuration as requested.
PCG would also provide report development services at an estimated $15,750 to design, develop, and deploy non-standard forms and statistical reports generated from EnerGov. PCG would review the specifications document and provide feedback. PCG would develop stored procedures and queries required for reports and forms. PCG would prepare documents and coordinate with City staff to share with Tyler Technologies. PCG would enhance and update forms and reports as requested. PCG would meet with City staff and Tyler related to the design, development, and deployment of forms and reports.
8.3 p. 196 of 1163
Approval of a Third Amendment to the Agreement for Professional Services with Park Consulting Group in the amount of $379,760 for the Tyler EnerGov Land Management System Implementation Completion ($181,810) and Post-Production Issue Resolution, Support, and Enhancement Services ($197,950)
City of Gilroy City Council Page 5 of 6 May 1, 2023
For EnerGov fee configuration in FY 2025, at an estimated $18,000, PCG would configure fee updates based on the fee schedules effective July 2024.
ALTERNATIVES
Council may choose not to approve the third amendment to the Agreement. Staff does not recommend this option as this would halt the implementation of the EnerGov Land Management System.
FISCAL IMPACT/FUNDING SOURCE
In February 2020, the City Council invested significant resources to modernize the City’s information technology, notably a new enterprise resource planning (ERP) and land management system (LMS), with a total cost of $3,725,860, including multi-year licensing and implementation. While both projects experienced delays in implementation for a multitude of reasons, staff has been able to remain within the budget for both projects by utilizing savings from licensing fees for modules determined to no longer fit the need of the organization and travel and implementation-related savings as the systems have primarily been implemented remotely during the pandemic.
The Tyler EnerGov Land Management System project is budgeted and funded from the City’s Information Technology Fund (620). There are adequate budgetary appropriations and fund balance to accommodate the additional expenditure for the current fiscal year. There are projected year-end savings in personnel expenditures due to vacancies and materials and services expenditures for FY 2023 to accommodate the additional $181,810 needed in the current fiscal year to complete the implementation.
Pending Council approval, the FY 2024 and FY 2025 costs of $197,950 will be included in the recommended budget accordingly.
NEXT STEPS
If approved, the third amendment to the Agreement will be executed, and staff will work with Park Consulting Group to complete the activities to launch the EnerGov system and continue system improvements.
8.3 p. 197 of 1163
Approval of a Third Amendment to the Agreement for Professional Services with Park Consulting Group in the amount of $379,760 for the Tyler EnerGov Land Management System Implementation Completion ($181,810) and Post-Production Issue Resolution, Support, and Enhancement Services ($197,950)
City of Gilroy City Council Page 6 of 6 May 1, 2023
Attachments:
1. Attachment 1 - Draft 3rd Amendment to the Agreement for Professional Services with Park Consulting Group
2. Attachment 2 - 2nd Amendment to the Agreement for Professional Services with Park Consulting Group
3. Attachment 3 – 1st Amendment to the Agreement for Professional Services with Park Consulting Group
4. Attachment 4 - Agreement for Professional Services with Park Consulting Group
8.3 p. 198 of 1163
-1- 4845-8215-5540v1
MDOLINGER\04706083
THIRD AMENDMENT TO THE AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN THE CITY OF GILROY AND PARK CONSULTING GROUP, INC. FOR THE CITY’S TYLER ENERGOV LAND MANAGEMENT SYSTEMS (LMS) PROJECT WHEREAS, the City of Gilroy, a municipal corporation (“City”), and Park Consulting Group, Inc. entered into that certain agreement entitled Professional Services for the City’s Tyler EnerGov Land Management Systems (LMS) Project, effective on 2/7/2022, hereinafter referred to as “Original Agreement”; and
WHEREAS, City and Park Consulting Group, Inc. have determined it is in their mutual interest to amend certain terms of the Original Agreement.
NOW, THEREFORE, FOR VALUABLE CONSIDERATION, THE PARTIES AGREE AS FOLLOWS:
1. The first paragraph of Article 1 (Term of Agreement) of the Original Agreement shall be amended to read as follows:
“This Agreement will become effective retroactively on 12/1/2021 and will continue in effect through 6/30/2025 unless terminated in accordance with the provisions of Article 7 of this Agreement.”
2. Article 4 Section A (Consideration) of the Original Agreement shall be amended to read as follows:
“In consideration for the services to be performed by CONSULTANT, CITY agrees to pay CONSULTANT the amounts set forth in Exhibit “D” (“Payment Schedule”). In no event however shall the total compensation paid to CONSULTANT exceed $663,760.”
3. Exhibit “B” (Scope of Services) of the Original Agreement is hereby replaced with the attached Exhibit “B”.
4. Exhibit “C” (Milestone Schedule) of the Original Agreement is hereby replaced with the attached Exhibit “C”.
5. This Amendment shall be effective on 5/2/2023.
6. Except as expressly modified herein, all of the provisions of the Original Agreement shall remain in full force and effect. In the case of any inconsistencies between the Original Agreement and this Amendment, the terms of this Amendment shall control.
7. This Amendment may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
IN WITNESS WHEREOF, the parties have caused this Amendment to be executed as of the dates set forth besides their signatures below.
8.3 p. 199 of 1163
-2- 4845-8215-5540v1
MDOLINGER\04706083
CITY OF GILROY Park Consulting Group, Inc.
By: By:
[signature] [signature]
Jimmy Forbis Glenn Park
[employee name] [name]
City Administrator President
[title/department] [title]
Date: Date:
Approved as to Form ATTEST:
City Attorney City Clerk
8.3 p. 200 of 1163
EXHIBIT “B”
SCOPE OF SERVICES
Park Consulting Group (PCG) will provide the City of Gilroy professional services for the City’s Tyler EnerGov Land Management Systems (LMS) Project:
• Services:
PCG will provide the following resources and services to support the City to get the EnerGov project back on-track to Go-Live:
Resources:
Resource Allocation Assigned Resource
Project Manager 4 Hours Per Week Glenn Park
Functional Consultants 30 Hours Per Week Bryan Tung/
David Bloomgren
Report Developer 20 Custom Reports/ Forms Jared Tan
Project Manager Responsibilities:
• Manage project scope, goals and deliverables that support business goals in collaboration with the IT Department, senior management, and stakeholders. • Effectively communicate project expectations to team members and stakeholders in a timely, clear fashion and ongoing basis.
• Monitor project expectations with team members and other stakeholders. • Review project timeline, milestones and deliverables with City leadership and Tyler Tech PM
• Attend project meetings with staff and project stakeholders. This may include internal project briefings and project briefings with Tyler, in addition to others as requested.
• Review and provide input on all contracts with external vendors for integrations development and change orders.
• Coordinate escalation for questions and issues from the Project Team • Address and/or escalate issues / risks as they come up. • Delegate tasks and responsibilities to appropriate team members responsible to own deliverables for the project.
• Proactively identify issues and conflicts within the project team, third party vendor partners, and the business as needed; consult with city management to formulate a plan to resolve.
• Proactively communicate changes in project scope, identify potential crises, and devise contingency plans; communicate possible changes in scope to IT management and departments and divisions that are affected. • Ensure that project risks are identified, documented, communicated, and addressed in a timely manner.
• Provide feedback on leading best practices to maximize system capabilities. • Provide feedback on leading best practices for project implementation and
8.3 p. 201 of 1163
deployment processes.
Functional Consultant Responsibilities :
Design and Configuration:
• Support review of fee schedule and compare to LMS configuration to verify accurate fee setup.
• Support coordination of the configuration review and validation of templates. • Support City configuration resources in making any needed changes to configuration.
• Support and review EnerGov configuration to verify accurate setup to configuration documentation and requirements.
• Support and review City-owned shared configuration including case type development, CSS, automations, georules, etc.
• Support and review data mapping and migration activities from legacy system to EnerGov.
User Acceptance Testing:
• Support the development of a user testing strategy and plan. • Support test case/ script creation with responsible team members/ SMEs. • Support user acceptance participant training and walkthroughs. • Support setup for test case scenarios.
• Support user acceptance testing / retesting effort with City-designated testing leads and testers.
• Support prioritization and tracking of user acceptance testing / retesting results in testing tracking system.
End User Training:
• Support development of training plan and train-the-trainer approach. • Support review of training environment setup and deployment. • Support coordination and facilitation of end user training with staff trainers. • Support training documentation and job aid development as required by staff.
Cutover and Go-Live Activities:
• Support Production cutover, Go-Live, post-Go-Live stabilization, and system troubleshooting (reporting, system enhancements, regulatory changes, etc.). • Support the design, deployment, and onboarding of post-Go-Live / warranty enhancements.
Report Developer Responsibilities:
• Provide report development services to design, develop, and deploy City-assigned non-standard forms and statistical reports generated from EnerGov. City will provide a list of prioritized and ranked reports to be delivered • Forms and reports will be developed utilizing Crystal Reports • Park Consulting Group will own and perform the following services related to forms and reports design and development:
8.3 p. 202 of 1163
• Review specifications document and provide feedback as required to ensure requirements are fully understood for development
• Design and develop .RPT templates required for forms and reports (the City may have the opportunity to design and develop .RPT templates to conserve hours for PCG report development. This will be determined on a case-by-case basis by PCG)
• Develop stored procedures and queries required for forms and reports • Prepare .RPT and stored procedures development package to be sent to Tyler Tech
• Send .RPT and stored procedures as required by Tyler Tech and cc: City (PCG can also manage this process through a City facilitated process) • Maintain, enhance, update, and support forms and reports as requested • Attend meetings with City and Tyler Tech related to design, development, and deployment of forms and reports
Other Project Responsibilities:
• Provide services for project team as needed throughout the LMS implementation project, as requested.
• Key Assumptions:
• PCG shall be responsible for advisory, implementation support services, and project management as requested by the City.
• Due to the City’s desire to expedite the EnerGov project to Go-Live, the scope of the project will be focused on migrating existing LMS processes from Sungard and build upon the current LMS processes with extended EnerGov capabilities. Other processes, capabilities, and user groups not associated to the existing LMS processes from SunGard will be descoped in order to meet project timelines. • City will provide a primary project contact that is available throughout the duration of services.
• City will provide process leads and subject matter experts to serve as project team members that are available throughout the duration of services to successfully deliver PCG services. Required minimum of 50% FTE per Lead/ SME. • City estimates PCG should have the full ability to deliver the project remotely with no on-site visits and/ or incurred travel costs.
• Park Consulting Group provides a broad range of LMS implementation, advisory, and development services. City may request additional services outside of the scope of services and duration and will be considered based on the established hourly rates.
• City will work with Tyler Tech to provide the following for PCG:
• Adequate software licensing for PCG to perform services • Tyler Tech Sharepoint access
• Login and access to EnerGov environments
• Regular database backups of the EnerGov environment with the most up-to-date configuration and all related populated test data
8.3 p. 203 of 1163
• Database backups to be transferrable to PCG technical environments to develop forms and reports
• Cost:
Resource Build & Validate
(5 Months)
Testing, Training, &
Go-Live (5 Months)
TOTAL
Project Manager $19,500 (20 Hrs/ Mo) $19,500 (20 Hrs/ Mo) $39,000 Functional
Consultant $105,000 (120 Hrs/ Mo) $105,000 (120 Hrs/ Mo) $210,000
Report Developer $35,000 (20 Reports) $35,000
TOTAL $159,000 $124,500 $284,000
• Total Not-to Exceed: $284,000
• PCG’s services will be billed based on the following hourly rate(s):
Park Consulting Resources 2021-23 Rates
Principal LMS Consultant/ Project Manager $195/ hour
LMS Functional Consultant $175/ hour
Report Developer $175/ hour
GIS Consultant $175/ hour
SCOPE OF SERVICES AND COST FOR AMENDMENT 3
Park Consulting Group (PCG) will provide the City of Gilroy professional services for the City’s Tyler EnerGov Land Management Systems (LMS) Project.
Services:
All scope of services below also includes tasks, activities, and resources detailed in Amendment 2 of the agreement between PCG and the City of Gilroy. The following services are additional to the services provided in Amendment 2. The scope of services described above is from Amendment 2 and is the same as in Amendment 1 and the original agreement.
The City of Gilroy is seeking to amend the City’s agreement with Park Consulting Group for consulting services for the City’s Tyler EnerGov Land Management Systems (LMS) Project.
After a project pause was placed on the project in mid-2021, the project was restarted in January 2022 to replace existing Sungard capabilities and processes as well as deploy EnerGov’s extended system capabilities to better serve Gilroy staff and constituents. These capabilities include centralized processing and tracking of Permits and Plans, including processes currently outside of Sungard including Code Enforcement and integrated Cashiering, and expanded online services including the Citizen Portal, public records search capabilities, online inspection requests, online invoice payments, and digital plan submittals (paper-less) processing for all plan check users. The project was replanned to Go-Live in October 2022.
8.3 p. 204 of 1163
As the project progressed forward, staffing constraints were encountered across the Community Development, Public Works, and IT teams throughout 2022. With the impacts from the project staffing challenges, the City has replanned the project and extended the project timeline to complete the core system Configuration, Development, and User Testing activities by spring 2023, with a new projected Go-Live date of June 2023 and stabilization through August 2023.
The current contract budget with Park Consulting Group has been able to absorb 4 of 11 months of the extended timeline, and the project team is seeking an amendment to extend funding to the Go-live, which includes finalizing the EnerGov system setup, training support, cutover preparation and support, and onsite and post-production Go-Live support and stabilization.
Remaining Project Activities
• EnerGov System Setup
Park Consulting Groups services will be focused on continuing momentum of complete remaining project activities with staff and Tyler Tech. This will include setting up and stabilizing the EnerGov back-end in preparation for Go-Live including GIS, Bluebeam, and Data Conversion. Additionally, tasks and activities will be planned to address EnerGov configuration change impacts due to feedback during final UAT reviews with Tyler Tech and the Gilroy SMEs. The City provided PCG with the finalized list of requested configuration and system changes for Go-Live. PCG will implement the changes that can be deployed without impacting the project budget and timeline for a June 2023 Go-Live. All other configuration and system changes and requests will be deferred to Tyler Tech or to be considered after Go-Live. • Training Support
Park Consulting Groups will provide 8-12 hours per week of support with staff / SMEs that are owning training preparation. With any remaining support hours, Gilroy may request PCG for configuration changes / updates from feedback during the training sessions with Tyler Tech. Tyler Tech and Gilroy SMEs will own delivering end-user training.
• EnerGov Go-Live Preparation and Cutover
Park Consulting Group will provide the City support for Go-Live preparation. This will include Cutover support services with Tyler Tech to make final preparations for the City’s EnerGov system Go-Live. Post-UAT/ Pre-Go-Live configuration enhancements and issue resolution will be established with Tyler Tech to stabilize the City’s production system.
• EnerGov Onsite Support Services
The City is seeking EnerGov Post Go-Live support services from Park Consulting Group during the first week of Go-Live. Services will include configuration and functional updates and issue resolution. Support will be provided onsite by 2 resources and will be available during City of Gilroy’s business hours. The City is seeking Park Consulting Group to provide the following Post Go-Live support services:
- Provide operations and functional user support during Go-Live week for configuration and functional issues.
8.3 p. 205 of 1163
- Support the design, configuration, deployment, and resolution of requested priority post-Go-Live enhancements.
• Post Go-Live EnerGov Issue Resolution and Stabilization Services:
- Duration of Services: Up to 80 hours per month (2.5 months) - PCG will provide EnerGov post-Go-Live support and enhancement services as requested by the City. This will include supporting, implementing, and reviewing EnerGov configuration including case types, workflows, custom fields, CSS configuration, and fees.
- PCG will receive and respond to requests from the City’s primary point of contact (POC) from the City (or designated back-up).
• EnerGov Fee Configuration:
- PCG will be responsible for the configuration of requested fee updates provided by the City’s Community Development and Public Works departments related to the fiscal year 2023/24 fee schedule updates. The approved and adopted fee schedule will be provided as the reference source for the configuration. The estimated effort is based on the fee schedule only requiring CPI increase fee updates and no other calculation, input, and/or variable additions or changes will be needed for the 2023/24 fees.
Cost Proposal:
The City is seeking an amendment to extend funding. The additional request for services is in alignment with PCG’s previous monthly invoicing amounts.
Requested Services Total
System Setup (2 months @ $25,500/ mo) $51,000
Training Support (2.5 months @ $10,240/ mo) $25,600
EnerGov Go-Live Preparation and Cutover (1 week) $7,600 Go-Live Onsite Support (1 week onsite, 2 resources, includes travel) $20,000 EnerGov Fee Configuration: 1 month (Est. @ 90 hrs – billed @ $195/hr) $17,550 Post Go-Live Issue Resolution and Stabilization: 2.5 months (~$14,625/mo) $36,560 ~15% Contingency* $23,500
TOTAL $181,810
*Contingency will only be utilized for critical (showstopper) issue resolution and time extension beyond the planned Go-Live Post-Production Issue Resolution, Support, and Enhancement Services:
The City of Gilroy has requested Park Consulting Group to provide 2 years of EnerGov postproduction issue resolution and enhancement services for the City’s Tyler EnerGov Land Management Systems (LMS) Project.
EnerGov Issue Resolution and Enhancement Services:
- PCG will attend meetings, etc. as available. This will include working sessions. - Provide feedback on leading best practices to maximize EnerGov system capabilities. - PCG will provide EnerGov post-Go-Live support and enhancement services as requested by the City. This will include supporting, implementing, and reviewing EnerGov
8.3 p. 206 of 1163
configuration including case types, workflows, custom fields, CSS configuration, and fees.
- PCG will provide configuration walkthroughs or details for resolved issues and deployed enhancements. City may choose to record walkthroughs as needed. - PCG will review City-deployed configuration and developed reports as requested. - PCG will receive and respond to requests from the City’s primary point of contact (POC). - PCG should have the full ability to deliver services remotely with no on-site visits and/ or incurred travel costs. If onsite visits are requested, travel expenses and time will be reimbursed.
- Duration of Services: 22 months - Up to 40 hours per month EnerGov Report Development:
- Provide report development services to design, develop, and deploy non-standard forms and statistical reports generated from EnerGov.
- Reports and Forms will be developed with the use of Crystal Reports. - Stored procedures and queries required for reports and forms will be developed. - Prepare template and stored procedures development package to be sent by City to Tyler Tech
- Coordinate with City POC to send RPT file and stored procedures/ queries to Tyler Tech Support
- Coordinate access with City POC of required database back-up. - Notify City POC of deployed reports within all applicable modules and case types.
Respond to feedback and requested updates.
EnerGov Fee Configuration:
• PCG will be responsible for the configuration of requested fee updates provided by the City’s Community Development and Public Works departments related to the fiscal year 2024/25 fee schedule updates. The approved and adopted fee schedule will be provided as the reference source for the configuration. The estimated effort is based on the fee schedule only requiring CPI increase fee updates and no other calculation, input, and/or variable additions or changes will be needed for the 2024/25 fees.
Cost Proposal:
The total not to exceed amount will be the following:
Requested Optional Services Total
EnerGov Issue Resolution and Enhancement Services:
2023 4 months: Up to 40 hrs/ month (fixed $7,300/mo)
6 months: Up to 40 hrs/ month (fixed $7,500/mo)
12 months: Up to 40 hrs/ month (fixed $7,500/mo)
EnerGov Fee Configuration: 1 month (Est. @ 90 hrs – billed @ $200/hr) EnerGov Report Development: (Est. @ 90 hrs – billed @ $175/hr for work requested in 2023 and $185/hr for work requested in 2024-2025)
$29,200
$45,000
$90,000
$18,000
$15,750
TOTAL* $197,950
8.3 p. 207 of 1163
EXHIBIT “C”
MILESTONE SCHEDULE
8.3 p. 208 of 1163
City of Gilroy
Agreement/Contract Tracking
Today’s Date: October Ϯϳ, 2022 Your Name: Monica Sendejas Contract
Type:
Services over $5k - Consultant Phone Number: 408-846-0266 Contract Effective Date:
(Date contract goes into effect)
12/1/2021
Contract Expiration Date: 12/31/2023
Contractor / Consultant Name:
(if an individual’s name, format as
last name, first name)
Park Consulting Group, Inc.
Contract Subject:
(no more than 100 characters)
Professional services for the City's Tyler EnerGov Land Management Systems (LMS) Project
Contract Amount:
(Total Amount of contract. If no
amount, leave blank)
Ψ284͕000͘ϬϬ
By submitting this form, I confirm
this information is complete:
¾ Date of Contract
¾ Contractor/Consultant name and complete address
¾ Terms of the agreement (start date, completion date or “until project completion”, cap of compensation to be paid)
¾ Scope of Services, Terms of Payment, Milestone Schedule and exhibit(s) attached
¾ Taxpayer ID or Social Security # and Contractors License # if applicable
¾ Contractor/Consultant signer’s name and title
¾ City Administrator or Department Head Name, City Clerk (Attest), City Attorney (Approved as to Form)
Routing Steps for Electronic Signature
Risk Manager
City Attorney Approval As to Form
City Administrator or Department Head
City Clerk Attestation
^ŚĂƌŽŶ'ŽĞŝ͕ŽŵŵƵŶŝƚLJĞǀĞůŽƉŵĞŶƚŝƌĞĐƚŽƌ
8.3 p. 209 of 1163
-1- 4845-8215-5540v1
MDOLINGER\04706083
SECOND AMENDMENT TO THE AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN THE CITY OF GILROY AND PARK CONSULTING GROUP, INC. FOR THE CITY’S TYLER ENERGOV LAND MANAGEMENT SYSTEMS (LMS) PROJECT WHEREAS, the City of Gilroy, a municipal corporation (“City”), and Park Consulting Group, Inc. entered into that certain agreement entitled Professional Services for the City’s Tyler EnerGov Land Management Systems (LMS) Project, effective on 2/7/2022, hereinafter referred to as “Original Agreement”; and
WHEREAS, City and Park Consulting Group, Inc. have determined it is in their mutual interest to amend certain terms of the Original Agreement.
NOW, THEREFORE, FOR VALUABLE CONSIDERATION, THE PARTIES AGREE AS FOLLOWS:
1. The first paragraph of Article 1 (Term of Agreement) of the Original Agreement shall be amended to read as follows:
“This Agreement will become effective retroactively on 12/1/2021 and will continue in effect through 12/31/2023 unless terminated in accordance with the provisions of Article 7 of this Agreement.”
2. This Amendment shall be effective on 1/1/2022.
3. Except as expressly modified herein, all of the provisions of the Original Agreement shall remain in full force and effect. In the case of any inconsistencies between the Original Agreement and this Amendment, the terms of this Amendment shall control.
4. This Amendment may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
IN WITNESS WHEREOF, the parties have caused this Amendment to be executed as of the dates set forth besides their signatures below.
CITY OF GILROY Park Consulting Group, Inc.
By: By:
[signature] [signature]
Jimmy Forbis Glenn Park
[employee name] [name]
City Administrator President
[title/department] [title]
Date: Date:
Approved as to Form ATTEST:
City Attorney City Clerk
8.3 p. 210 of 1163
City of Gilroy
Agreement/Contract Tracking
Today’s Date: March 17, 2022 Your Name: Monica Sendejas Contract
Type:
Services over $5k - Consultant Phone Number: 408-846-0266 Contract Effective Date:
(Date contract goes into effect)
12/1/2021
Contract Expiration Date: 12/31/2022
Contractor / Consultant Name:
(if an individual’s name, format as
last name, first name)
Park Consulting Group, Inc.
Contract Subject:
(no more than 100 characters)
1 st AmendmenProfessional services for the City's Tyler EnerGov Land Management Systems (LMS) Project
Contract Amount:
(Total Amount of contract. If no
amount, leave blank)
By submitting this form, I confirm
this information is complete:
➢ Date of Contract
➢ Contractor/Consultant name and complete address
➢ Terms of the agreement (start date, completion date or “until project completion”, cap of compensation to be paid)
➢ Scope of Services, Terms of Payment, Milestone Schedule and exhibit(s) attached
➢ Taxpayer ID or Social Security # and Contractors License # if applicable
➢ Contractor/Consultant signer’s name and title
➢ City Administrator or Department Head Name, City Clerk (Attest), City Attorney (Approved as to Form)
Routing Steps for Electronic Signature
Risk Manager
City Attorney Approval As to Form
City Administrator or Department Head
City Clerk Attestation
DocuSign Envelope ID: FFCA2D69-F014-40DA-B8EC-9EDF42A6805E 8.3 p. 211 of 1163
-1-
4845-8215-5540v1
MDOLINGER\04706083
FIRST AMENDMENT TO THE AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN THE CITY OF GILROY AND PARK CONSULTING GROUP, INC. FOR THE CITY’S TYLER ENERGOV LAND MANAGEMENT SYSTEMS (LMS) PROJECT WHEREAS, the City of Gilroy, a municipal corporation (“City”), and Park Consulting Group, Inc. entered into that certain agreement entitled Professional Services for the City’s Tyler EnerGov Land Management Systems (LMS) Project, effective on 2/7/2022, hereinafter referred to as “Original Agreement”; and
WHEREAS, City and Park Consulting Group, Inc.have determined it is in their mutual interest to amend certain terms of the Original Agreement.
NOW, THEREFORE, FOR VALUABLE CONSIDERATION, THE PARTIES AGREE AS FOLLOWS:
1. Article 1 (Term of Agreement) of the Original Agreement shall be amended to read as follows:
“This Agreement will become effective retroactively on 12/1/2021 and will continue in effect through 12/31/2022 unless terminated in accordance with the provisions of Article 7 of this Agreement.”
2. Except as expressly modified herein, all of the provisions of the Original Agreement shall remain in full force and effect. In the case of any inconsistencies between the Original Agreement and this Amendment, the terms of this Amendment shall control.
3. This Amendment may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
IN WITNESS WHEREOF, the parties have caused this Amendment to be executed as of the dates set forth besides their signatures below.
CITY OF GILROY Park Consulting Group, Inc.
By: By:
[signature] [signature]
Jimmy Forbis Glenn Park
[employee name] [name]
City Administrator President
[title/department] [title]
Date: Date:
Approved as to Form ATTEST:
City Attorney City Clerk
DocuSign Envelope ID: FFCA2D69-F014-40DA-B8EC-9EDF42A6805E 3/22/2022 3/17/2022
8.3 p. 212 of 1163
DocuSign Envelope ID: BF3CFF35-95FC-4EEC-800D-A3DDBBDE0469 City of Gilroy
Agreement/Contract Tracking
Today’s Date: February 9, 2022 Your Name: Monica Sendejas Contract 408-846-0266
Type:
Services over $5k - Consultant Phone Number:
Contract Effective Date:
(Date contract goes into effect)
Contract Expiration Date:
Contractor / Consultant Name:
(if an individual’s name, format as
last name, first name)
2/7/2022
12/31/2022
Park Consulting Group, Inc.
Contract Subject:
(no more than 100 characters)
Professional services for the City's Tyler EnerGov Land Management Systems (LMS) Project
Contract Amount: 284000
(Total Amount of contract. If no
amount, leave blank)
By submitting this form, I confirm ➢ Date of Contract
this information is complete: ➢ Contractor/Consultant name and complete address ➢ Terms of the agreement (start date, completion date or “until project completion”, cap of compensation to be paid)
Scope of Services, Terms of Payment, Milestone Schedule and exhibit(s) attached
Taxpayer ID or Social Security # and Contractors License # if applicable
➢
➢
➢ Contractor/Consultant signer’s name and title
➢ City Administrator or Department Head Name, City Clerk (Attest), City Attorney (Approved as to Form)
Routing Steps for Electronic Signature
Risk Manager
City Attorney Approval As to Form
City Administrator or Department Head
City Clerk Attestation
8.3 p. 213 of 1163
DocuSign Envelope ID: BF3CFF35-95FC-4EEC-800D-A3DDBBDE0469
TYPE OF DOLLAR THRESHOLD / SIGNING AUTHORITY
PROCURMENT
STAFF LEVEL
$0-$999.99
DEPARTMENT HEAD CITY ADMINISTRATOR COUNCIL APPROVAL
$1,000-$49,999.99 $50,000-$99,999.99 $100,000-Above
EQUIPMENT
/SUPPLIES/
MATERIALS
• Vendor selection at
discretion of staff
• Informal • Informal •
•
•
•
Formal Bid
bid/quotation –
3 quotes (verbal
or written)
bid/quotation –
3 written quotes
Purchasing
Summary form w/
City Administrator
Approval
Advertisement
Council Approval
Purchase
Requisition signed
by City
•
Furniture, hoses,
parts, pipe
manholes, office
supplies, fuel, tools,
PPE items, etc…
•
•
Purchasing
Summary form
w/ Purchasing
Approval
Purchase
Requisition
Administrator
• Purchase
Payment Method Requisition
Purchase Card or
Payment Request (if
vendor does not accept
credit cards)
Payment Method
Purchase Order*
Payment Method
Purchase Order
Payment Method
Purchase Order
GENERAL SERVICES •
•
Vendor selection at
discretion of staff
May require insurance
documents depending
on scope/ nature of
work
• Informal •
•
Informal Bid/RFP
quotation – 3
written quotes
Purchasing
Summary form w/
City Administrator
Approval
Standard
Agreement
Purchase
Requisition
• Formal
bid/quotation –
3 quotes (verbal
or written)
Bid/RFP/RFQ
Advertisement
Council Approval
Standard
Agreement
Purchase
Janitorial, landscape
maintenance,
equipment repair,
installation, graffiti
abatement, service
inspections,
•
•
• Purchasing •
Summary form
w/ Department
Head Approval
Standard
Agreement
Purchase
•
•
•
Requisition
uniform cleaning,
etc…
Payment Method
Purchase Card (if
incorporated)
•
•
Signed Payment Request (if so
proprietor or partner)
Requisition
Payment Method
Purchase Order*
Payment Method
Purchase Order
Payment Method
Purchase Order
PROFESSIONAL
SERVICES
•
•
Vendor selection at the
discretion of staff
Purchase Summary
Form w/ Purchasing
Approval
Standard Agreement
signed by Department
Head
•
•
RFP/RFQ to at
least 3
consultants
•
•
RFP/RFQ to a list
of consultants
Evaluation
Spreadsheet w/
City Administrator
Approval
Standard
Agreement
Purchase
Requisition
•
•
•
•
Formal RFP/RFQ
Advertisement
Council Approval
Standard
Agreement signed
by City
Administrator
Purchase
Requisition
Consultants,
architects,
designers, auditors,
etc...
Purchase
Summary Form
w/ Department
Head Approval
Standard
Agreement
Purchase
•
•
•
•
•
•
•
Purchase Requisition
Requisition
Payment Method
Purchase Order
Payment Method
Purchase Order
Payment Method
Purchase Order
Payment Method
Purchase Order
8.3 p. 214 of 1163
DocuSign Envelope ID: BF3CFF35-95FC-4EEC-800D-A3DDBBDE0469
AGREEMENT FOR SERVICES
(For contracts over $5,000 - CONSULTANT)
This AGREEMENT made this 7th day of February, 2022, between:
CITY: City of Gilroy, having a principal place of business at 7351 Rosanna Street, Gilroy, California
and CONSULTANT: Park Consulting Group, Inc, having a principal place of business at 200 Spectrum Center Drive #300, Irvine, CA 92618.
ARTICLE 1. TERM OF AGREEMENT
This Agreement will become effective on 02/07/2022 and will continue in effect through 12/31/2022 unless terminated in accordance with the provisions of Article 7 of this Agreement.
Any lapse in insurance coverage as required by Article 5, Section D of this Agreeme terminate this Agreement regardless of any other provision stated herein. all
__
Initial
ARTICLE 2. INDEPENDENT CONTRACTOR STATUS
It is the express intention of the parties that CONSULTANT is an independent contractor and not an employee, agent, joint venturer or partner of CITY. Nothing in this Agreement shall be interpreted or construed as creating or establishing the relationship of employer and employee between CITY and CONSULTANT or any employee or agent of CONSULTANT. Both parties acknowledge that CONSULTANT is not an employee for state or federal tax purposes.
CONSULTANT shall not be entitled to any of the rights or benefits afforded to CITY’S employees, including, without limitation, disability or unemployment insurance, workers’ compensation, medical insurance, sick leave, retirement benefits or any other employment benefits. CONSULTANT shall retain the right to perform services for others during the term of this Agreement.
ARTICLE 3. SERVICES TO BE PERFORMED BY CONSULTANT
A. Specific Services
CONSULTANT agrees to: Perform the services as outlined in Exhibit “A” (“Specific Provisions”) and Exhibit “B” (“Scope of Services”), within the time periods described in Exhibit “C” (“Milestone Schedule”).
B. Method of Performing Services
CONSULTANT shall determine the method, details and means of performing the above-described services. CITY shall have no right to, and shall not, control the manner or determine the method of accomplishing CONSULTANT’S services.
4835-2267-0361v1
LAC\04706083 -1-
8.3 p. 215 of 1163
DocuSign Envelope ID: BF3CFF35-95FC-4EEC-800D-A3DDBBDE0469 C. Employment of Assistants
CONSULTANT may, at the CONSULTANT’S own expense, employ such assistants as CONSULTANT deems necessary to perform the services required of CONSULTANT by this Agreement, subject to the prohibition against assignment and subcontracting contained in Article 5 below. CITY may not control, direct, or supervise CONSULTANT’S assistants in the performance of those services. CONSULTANT assumes full and sole responsibility for the payment of all compensation and expenses of these assistants and for all state and federal income tax, unemployment insurance, Social Security, disability insurance and other applicable withholding.
D. Place of Work
CONSULTANT shall perform the services required by this Agreement at any place or location and at such times as CONSULTANT shall determine is necessary to properly and timely perform CONSULTANT’S services.
ARTICLE 4. COMPENSATION
A. Consideration
In consideration for the services to be performed by CONSULTANT, CITY agrees to pay CONSULTANT the amounts set forth in Exhibit “D” (“Payment Schedule”). In no event however shall the total compensation paid to CONSULTANT exceed $284,000.
B.
CONSULTANT shall submit invoices for all services rendered.
C. Payment
Invoices
Payment shall be due according to the payment schedule set forth in Exhibit “D”. No payment will be made unless CONSULTANT has first provided City with a written receipt of invoice describing the work performed and any approved direct expenses (as provided for in Exhibit “A”, Section IV) incurred during the preceding period. If CITY objects to all or any portion of any invoice, CITY shall notify CONSULTANT of the objection within thirty (30) days from receipt of the invoice, give reasons for the objection, and pay that portion of the invoice not in dispute. It shall not constitute a default or breach of this Agreement for CITY not to pay any invoiced amounts to which it has objected until the objection has been resolved by mutual agreement of the parties.
D. Expenses
CONSULTANT shall be responsible for all costs and expenses incident to the performance of services for CITY, including but not limited to, all costs of equipment used or provided by CONSULTANT, all fees, fines, licenses, bonds or taxes required of or imposed against CONSULTANT and all other of CONSULTANT’S costs of doing business. CITY shall not be responsible for any expenses incurred by CONSULTANT in performing services for CITY, except for those expenses constituting “direct expenses” referenced on Exhibit “A.” 4835-2267-0361v1
LAC\04706083 -2-
8.3 p. 216 of 1163
DocuSign Envelope ID: BF3CFF35-95FC-4EEC-800D-A3DDBBDE0469 ARTICLE 5. OBLIGATIONS OF CONSULTANT
A. Tools and Instrumentalities
CONSULTANT shall supply all tools and instrumentalities required to perform the services under this Agreement at its sole cost and expense. CONSULTANT is not required to purchase or rent any tools, equipment or services from CITY.
B. Workers’ Compensation
CONSULTANT agrees to provide workers’ compensation insurance for CONSULTANT’S employees and agents and agrees to hold harmless, defend with counsel acceptable to CITY and indemnify CITY, its officers, representatives, agents and employees from and against any and all claims, suits, damages, costs, fees, demands, causes of action, losses, liabilities and expenses, including without limitation reasonable attorneys’ fees, arising out of any injury, disability, or death of any of CONSULTANT’S employees.
C. Indemnification of Liability, Duty to Defend
1. As to professional liability, to the fullest extent permitted by law, CONSULTANT shall defend, through counsel approved by CITY (which approval shall not be unreasonably withheld), indemnify and hold harmless CITY, its officers, representatives, agents and employees against any and all suits, damages, costs, fees, claims, demands, causes of action, losses, liabilities and expenses, including without limitation attorneys’ fees, to the extent arising or resulting directly or indirectly from any willful or negligent acts, errors or omissions of CONSULTANT or CONSULTANT’S assistants, employees or agents, including all claims relating to the injury or death of any person or damage to any property.
2. As to other liability, to the fullest extent permitted by law, CONSULTANT shall defend, through counsel approved by CITY (which approval shall not be unreasonably withheld), indemnify and hold harmless CITY, its officers, representatives, agents and employees against any and all suits, damages, costs, fees, claims, demands, causes of action, losses, liabilities and expenses, including without limitation attorneys’ fees, arising or resulting directly or indirectly from any act or omission of CONSULTANT or CONSULTANT’S assistants, employees or agents, including all claims relating to the injury or death of any person or damage to any property.
D. Insurance
In addition to any other obligations under this Agreement, CONSULTANT shall, at no cost to CITY, obtain and maintain throughout the term of this Agreement: (a) Commercial Liability Insurance on a per occurrence basis with a minimum combined single limit coverage of $1,000,000 per occurrence for all damages due to bodily injury, sickness or disease, or death to any person, and damage to property, including the loss of use thereof; and (b) Professional Liability Insurance (Errors & Omissions) with a minimum coverage of $1,000,000 per occurrence or claim, and $2,000,000 aggregate; provided however, Professional Liability Insurance written on a claims made basis must comply with the requirements set forth below. Professional Liability Insurance 4835-2267-0361v1
LAC\04706083 -3-
8.3 p. 217 of 1163
DocuSign Envelope ID: BF3CFF35-95FC-4EEC-800D-A3DDBBDE0469 written on a claims made basis (including without limitation the initial policy obtained and all subsequent policies purchased as renewals or replacements) must show the retroactive date, and the retroactive date must be before the earlier of the effective date of the contract or the beginning of the contract work. Claims made Professional Liability Insurance must be maintained, and written evidence of insurance must be provided, for at least five (5) years after the completion of the contract work. If claims made coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a retroactive date prior to the earlier of the effective date of the contract or the beginning of the contract work, CONSULTANT must purchase so called “extended reporting” or “tail” coverage for a minimum of five (5) years after completion of work, which must also show a retroactive date that is before the earlier of the effective date of the contract or the beginning of the contract work. As a condition precedent to CITY’S obligations under this Agreement, CONSULTANT shall furnish written evidence of such coverage (naming CITY, its officers and employees as additional insureds on the Comprehensive Liability insurance policy referred to in (a) immediately above via a specific endorsement) and requiring thirty (30) days written notice of policy lapse or cancellation, or of a material change in policy terms.
E. Assignment
Notwithstanding any other provision of this Agreement, neither this Agreement nor any duties or obligations of CONSULTANT under this Agreement may be assigned or subcontracted by CONSULTANT without the prior written consent of CITY, which CITY may withhold in its sole and absolute discretion.
F. State and Federal Taxes
As CONSULTANT is not CITY’S employee, CONSULTANT shall be responsible for paying all required state and federal taxes. Without limiting the foregoing, CONSULTANT acknowledges and agrees that:
•
•
•
•
•
CITY will not withhold FICA (Social Security) from CONSULTANT’S payments;
CITY will not make state or federal unemployment insurance contributions on CONSULTANT’S behalf;
CITY will not withhold state or federal income tax from payment to CONSULTANT;
CITY will not make disability insurance contributions on behalf of CONSULTANT;
CITY will not obtain workers’ compensation insurance on behalf of CONSULTANT.
4835-2267-0361v1
LAC\04706083 -4-
8.3 p. 218 of 1163
DocuSign Envelope ID: BF3CFF35-95FC-4EEC-800D-A3DDBBDE0469 ARTICLE 6. OBLIGATIONS OF CITY
A. Cooperation of City
CITY agrees to respond to all reasonable requests of CONSULTANT and provide access, at reasonable times following receipt by CITY of reasonable notice, to all documents reasonably necessary to the performance of CONSULTANT’S duties under this Agreement.
B. Assignment
CITY may assign this Agreement or any duties or obligations thereunder to a successor governmental entity without the consent of CONSULTANT. Such assignment shall not release CONSULTANT from any of CONSULTANT’S duties or obligations under this Agreement.
ARTICLE 7. TERMINATION OF AGREEMENT
A. Sale of Consultant’s Business/ Death of Consultant.
CONSULTANT shall notify CITY of the proposed sale of CONSULTANT’s business no later than thirty (30) days prior to any such sale. CITY shall have the option of terminating this Agreement within thirty (30) days after receiving such notice of sale. Any such CITY termination pursuant to this Article 7.A shall be in writing and sent to the address for notices to CONSULTANT set forth in Exhibit A, Subsection V.H., no later than thirty (30) days after CITY’ receipt of such notice of sale.
If CONSULTANT is an individual, this Agreement shall be deemed automatically terminated upon death of CONSULTANT.
B. Termination by City for Default of Consultant
Should CONSULTANT default in the performance of this Agreement or materially breach any of its provisions, CITY, at CITY’S option, may terminate this Agreement by giving written notification to CONSULTANT. For the purposes of this section, material breach of this Agreement shall include, but not be limited to the following:
1. CONSULTANT’S failure to professionally and/or timely perform any of the services contemplated by this Agreement.
2. CONSULTANT’S breach of any of its representations, warranties or covenants contained in this Agreement.
CONSULTANT shall be entitled to payment only for work completed in accordance with the terms of this Agreement through the date of the termination notice, as reasonably determined by CITY, provided that such payment shall not exceed the amounts set forth in this Agreement for the tasks described on Exhibit C” which have been fully, competently and timely rendered by CONSULTANT. Notwithstanding the foregoing, if CITY terminates this Agreement due to CONSULTANT’S default in the performance of this Agreement or material breach by CONSULTANT of any of its provisions, then in addition to any other rights and remedies CITY 4835-2267-0361v1
LAC\04706083 -5-
8.3 p. 219 of 1163
DocuSign Envelope ID: BF3CFF35-95FC-4EEC-800D-A3DDBBDE0469 may have, CONSULTANT shall reimburse CITY, within ten (10) days after demand, for any and all costs and expenses incurred by CITY in order to complete the tasks constituting the scope of work as described in this Agreement, to the extent such costs and expenses exceed the amounts CITY would have been obligated to pay CONSULTANT for the performance of that task pursuant to this Agreement.
C. Termination for Failure to Make Agreed-Upon Payments Should CITY fail to pay CONSULTANT all or any part of the compensation set forth in Article 4 of this Agreement on the date due, then if and only if such nonpayment constitutes a default under this Agreement, CONSULTANT, at the CONSULTANT’S option, may terminate this Agreement if such default is not remedied by CITY within thirty (30) days after demand for such payment is given by CONSULTANT to CITY.
D. Transition after Termination
Upon termination, CONSULTANT shall immediately stop work, unless cessation could potentially cause any damage or harm to person or property, in which case CONSULTANT shall cease such work as soon as it is safe to do so. CONSULTANT shall incur no further expenses in connection with this Agreement. CONSULTANT shall promptly deliver to CITY all work done toward completion of the services required hereunder, and shall act in such a manner as to facilitate any the assumption of CONSULTANT’s duties by any new consultant hired by the CITY to complete such services.
ARTICLE 8. GENERAL PROVISIONS
A. Amendment & Modification
No amendments, modifications, alterations or changes to the terms of this Agreement shall be effective unless and until made in a writing signed by both parties hereto.
B. Americans with Disabilities Act of 1990
Throughout the term of this Agreement, the CONSULTANT shall comply fully with all applicable provisions of the Americans with Disabilities Act of 1990 (“the Act”) in its current form and as it may be amended from time to time. CONSULTANT shall also require such compliance of all subcontractors performing work under this Agreement, subject to the prohibition against assignment and subcontracting contained in Article 5 above. The CONSULTANT shall defend with counsel acceptable to CITY, indemnify and hold harmless the CITY OF GILROY, its officers, employees, agents and representatives from and against all suits, claims, demands, damages, costs, causes of action, losses, liabilities, expenses and fees, including without limitation reasonable attorneys’ fees, that may arise out of any violations of the Act by the CONSULTANT, its subcontractors, or the officers, employees, agents or representatives of either.
C. Attorneys’ Fees
If any action at law or in equity, including an action for declaratory relief, is brought to enforce or interpret the provisions of this Agreement, the prevailing party will be entitled to reasonable 4835-2267-0361v1
LAC\04706083 -6-
8.3 p. 220 of 1163
DocuSign Envelope ID: BF3CFF35-95FC-4EEC-800D-A3DDBBDE0469 attorneys’ fees, which may be set by the court in the same action or in a separate action brought for that purpose, in addition to any other relief to which that party may be entitled.
D. Captions
The captions and headings of the various sections, paragraphs and subparagraphs of the Agreement are for convenience only and shall not be considered nor referred to for resolving questions of interpretation.
E. Compliance with Laws
The CONSULTANT shall keep itself informed of all State and National laws and all municipal ordinances and regulations of the CITY which in any manner affect those engaged or employed in the work, or the materials used in the work, or which in any way affect the conduct of the work, and of all such orders and decrees of bodies or tribunals having any jurisdiction or authority over the same. Without limiting the foregoing, CONSULTANT agrees to observe the provisions of the Municipal Code of the CITY OF GILROY, obligating every contractor or subcontractor under a contract or subcontract to the CITY OF GILROY for public works or for goods or services to refrain from discriminatory employment or subcontracting practices on the basis of the race, color, sex, religious creed, national origin, ancestry of any employee, applicant for employment, or any potential subcontractor.
F. Conflict of Interest
CONSULTANT certifies that to the best of its knowledge, no CITY employee or office of any public agency interested in this Agreement has any pecuniary interest in the business of CONSULTANT and that no person associated with CONSULTANT has any interest that would constitute a conflict of interest in any manner or degree as to the execution or performance of this Agreement.
G. Entire Agreement
This Agreement supersedes any and all prior agreements, whether oral or written, between the parties hereto with respect to the rendering of services by CONSULTANT for CITY and contains all the covenants and agreements between the parties with respect to the rendering of such services in any manner whatsoever. Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein, and that no other agreement, statement or promise not contained in this Agreement shall be valid or binding.
No other agreements or conversation with any officer, agent or employee of CITY prior to execution of this Agreement shall affect or modify any of the terms or obligations contained in any documents comprising this Agreement. Such other agreements or conversations shall be considered as unofficial information and in no way binding upon CITY. 4835-2267-0361v1
LAC\04706083 -7-
8.3 p. 221 of 1163
DocuSign Envelope ID: BF3CFF35-95FC-4EEC-800D-A3DDBBDE0469 H. Governing Law and Venue
This Agreement shall be governed by and construed in accordance with the laws of the State of California without regard to the conflict of laws provisions of any jurisdiction. The exclusive jurisdiction and venue with respect to any and all disputes arising hereunder shall be in state and federal courts located in Santa Clara County, California.
I. Notices
Any notice to be given hereunder by either party to the other may be effected either by personal delivery in writing or by mail, registered or certified, postage prepaid with return receipt requested.
Mailed notices shall be addressed to the parties at the addresses appearing in Exhibit “A”, Section V.H. but each party may change the address by written notice in accordance with this paragraph.
Notices delivered personally will be deemed delivered as of actual receipt; mailed notices will be deemed delivered as of three (3) days after mailing.
J. Partial Invalidity
If any provision in this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions will nevertheless continue in full force without being impaired or invalidated in any way.
K.
All dates and times referred to in this Agreement are of the essence.
L. Waiver
Time of the Essence
CONSULTANT agrees that waiver by CITY of any one or more of the conditions of performance under this Agreement shall not be construed as waiver(s) of any other condition of performance under this Agreement.
Executed at Gilroy, California, on the date and year first above written.
CONSULTANT: CITY:
Park Consulting Group CITY OF GILROY
By: By:
Name: Glen Park
Title: President
Name: Jimmy Forbis
Title: City Administrator
Social Security or Taxpayer
Identification Number 47-1892447
4835-2267-0361v1
LAC\04706083 -8-
8.3 p. 222 of 1163
DocuSign Envelope ID: BF3CFF35-95FC-4EEC-800D-A3DDBBDE0469 Approved as to Form
City Attorney
ATTEST:
City Clerk
4835-2267-0361v1
LAC\04706083 -9-
8.3 p. 223 of 1163
DocuSign Envelope ID: BF3CFF35-95FC-4EEC-800D-A3DDBBDE0469 EXHIBIT “A”
SPECIFIC PROVISIONS
I. PROJECT MANAGER
CONSULTANT shall provide the services indicated on the attached Exhibit “B”, Scope of Services (“Services”). (All exhibits referenced are incorporated herein by reference.) To accomplish that end, CONSULTANT agrees to assign Glen Park, who will act in the capacity of Project Manager, and who will personally direct such Services.
Except as may be specified elsewhere in this Agreement, CONSULTANT shall furnish all technical and professional services including labor, material, equipment, transportation, supervision and expertise to perform all operations necessary and required to complete the Services in accordance with the terms of this Agreement.
II. NOTICE TO PROCEED/COMPLETION OF SERVICE
A. NOTICE TO PROCEED
CONSULTANT shall commence the Services upon delivery to CONSULTANT of a written “Notice to Proceed”, which Notice to Proceed shall be in the form of a written communication from designated City contact person(s). Notice to Proceed may be in the form of e-mail, fax or letter authorizing commencement of the Services. For purposes of this Agreement, Cindy McCormick shall be the designated City contact person(s). Notice to Proceed shall be deemed to have been delivered upon actual receipt by CONSULTANT or if otherwise delivered as provided in the Section V.H. (“Notices”) of this Exhibit “A”.
B. COMPLETION OF SERVICES
When CITY determines that CONSULTANT has completed all of the Services in accordance with the terms of this Agreement, CITY shall give CONSULTANT written Notice of Final Acceptance, and CONSULTANT shall not incur any further costs hereunder. CONSULTANT may request this determination of completion when, in its opinion, it has completed all of the Services as required by the terms of this Agreement and, if so requested, CITY shall make this determination within two (2) weeks of such request, or if CITY determines that CONSULTANT has not completed all of such Services as required by this Agreement, CITY shall so inform CONSULTANT within this two (2) week period.
III. PROGRESS SCHEDULE
The schedule for performance and completion of the Services will be as set forth in the attached Exhibit “C”.
IV. PAYMENT OF FEES AND DIRECT EXPENSES
Payments shall be made to CONSULTANT as provided for in Article 4 of this Agreement. 4835-2267-0361v1
LAC\04706083 -1-
8.3 p. 224 of 1163
DocuSign Envelope ID: BF3CFF35-95FC-4EEC-800D-A3DDBBDE0469 Direct expenses are charges and fees not included in Exhibit “B”. CITY shall be obligated to pay only for those direct expenses which have been previously approved in writing by CITY.
CONSULTANT shall obtain written approval from CITY prior to incurring or billing of direct expenses.
Copies of pertinent financial records, including invoices, will be included with the submission of billing(s) for all direct expenses.
V. OTHER PROVISIONS
A. STANDARD OF WORKMANSHIP
CONSULTANT represents and warrants that it has the qualifications, skills and licenses necessary to perform the Services, and its duties and obligations, expressed and implied, contained herein, and CITY expressly relies upon CONSULTANT’S representations and warranties regarding its skills, qualifications and licenses. CONSULTANT shall perform such Services and duties in conformance to and consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California.
Any plans, designs, specifications, estimates, calculations, reports and other documents furnished under this Agreement shall be of a quality acceptable to CITY. The minimum criteria for acceptance shall be a product of neat appearance, well-organized, technically and grammatically correct, checked and having the maker and checker identified. The minimum standard of appearance, organization and content of the drawings shall be that used by CITY for similar purposes.
B. RESPONSIBILITY OF CONSULTANT
CONSULTANT shall be responsible for the professional quality, technical accuracy, and the coordination of the Services furnished by it under this Agreement. CONSULTANT shall not be responsible for the accuracy of any project or technical information provided by the CITY. The CITY’S review, acceptance or payment for any of the Services shall not be construed to operate as a waiver of any rights under this Agreement or of any cause of action arising out of the performance of this Agreement, and CONSULTANT shall be and remain liable to CITY in accordance with applicable law for all damages to CITY caused by CONSULTANT’S negligent performance of any of the services furnished under this Agreement.
C. RIGHT OF CITY TO INSPECT RECORDS OF CONSULTANT
CITY, through its authorized employees, representatives or agents, shall have the right, at any and all reasonable times, to audit the books and records (including, but not limited to, invoices, vouchers, canceled checks, time cards, etc.) of CONSULTANT for the purpose of verifying any and all charges made by CONSULTANT in connection with this Agreement. CONSULTANT shall maintain for a minimum period of three (3) years (from the date of final payment to CONSULTANT), or for any longer period required by law, sufficient books and records in accordance with standard California accounting practices to establish the correctness of all charges submitted to CITY by CONSULTANT, all of which shall be made available to CITY at the CITY’s offices within five (5) business days after CITY’s request. 4835-2267-0361v1
LAC\04706083 -2-
8.3 p. 225 of 1163
DocuSign Envelope ID: BF3CFF35-95FC-4EEC-800D-A3DDBBDE0469 D. CONFIDENTIALITY OF MATERIAL
All ideas, memoranda, specifications, plans, manufacturing procedures, data (including, but not limited to, computer data and source code), drawings, descriptions, documents, discussions or other information developed or received by or for CONSULTANT and all other written and oral information developed or received by or for CONSULTANT and all other written and oral information submitted to CONSULTANT in connection with the performance of this Agreement shall be held confidential by CONSULTANT and shall not, without the prior written consent of CITY, be used for any purposes other than the performance of the Services, nor be disclosed to an entity not connected with the performance of the such Services. Nothing furnished to CONSULTANT which is otherwise known to CONSULTANT or is or becomes generally known to the related industry (other than that which becomes generally known as the result of CONSULTANT’S disclosure thereof) shall be deemed confidential. CONSULTANT shall not use CITY’S name or insignia, or distribute publicity pertaining to the services rendered under this Agreement in any magazine, trade paper, newspaper or other medium without the express written consent of CITY.
E. NO PLEDGING OF CITY’S CREDIT.
Under no circumstances shall CONSULTANT have the authority or power to pledge the credit of CITY or incur any obligation in the name of CITY.
F. OWNERSHIP OF MATERIAL.
All material including, but not limited to, computer information, data and source code, sketches, tracings, drawings, plans, diagrams, quantities, estimates, specifications, proposals, tests, maps, calculations, photographs, reports and other material developed, collected, prepared (or caused to be prepared) under this Agreement shall be the property of CITY, but CONSULTANT may retain and use copies thereof subject to Section V.D of this Exhibit “A”.
CITY shall not be limited in any way in its use of said material at any time for any work, whether or not associated with the City project for which the Services are performed. However, CONSULTANT shall not be responsible for, and City shall indemnify CONSULTANT from, damages resulting from the use of said material for work other than PROJECT, including, but not limited to, the release of this material to third parties for work other than on PROJECT.
G. NO THIRD PARTY BENEFICIARY.
This Agreement shall not be construed or deemed to be an agreement for the benefit of any third party or parties, and no third party or parties shall have any claim or right of action hereunder for any cause whatsoever.
4835-2267-0361v1
LAC\04706083 -3-
8.3 p. 226 of 1163
DocuSign Envelope ID: BF3CFF35-95FC-4EEC-800D-A3DDBBDE0469 H. NOTICES.
Notices are to be sent as follows:
CITY: Jimmy Forbis, City Administrator
City of Gilroy
7351 Rosanna Street
Gilroy, CA 95020
CONSULTANT: Park Consulting Group
Attn: Glenn Park
200 Spectrum Center Drive, Suite 300
Irvine, CA 92618
I. FEDERAL FUNDING REQUIREMENTS.
If the box to the left of this sentence is checked, this Agreement involves federal funding and the requirements of this Section V.I. apply.
If the box to the left of this sentence is checked, this Agreement does not involve federal funding and the requirements of this Section V.I. do not apply.
1. DBE Program
CONSULTANT shall comply with the requirements of Title 49, Part 26, Code of Federal Regulations (49 CFR 26) and the City-adopted Disadvantaged Business Enterprise programs.
2. Cost Principles
Federal Acquisition Regulations in Title 48, CFR 31, shall be used to determine the allowable cost for individual items.
3. Covenant against Contingent Fees
The CONSULTANT warrants that he/she has not employed or retained any company or person, other than a bona fide employee working for the CONSULTANT, to solicit or secure this Agreement, and that he/she has not paid or agreed to pay any company or person, other than a bona fide employee, any fee, commission, percentage, brokerage fee, gift or any other consideration, contingent upon or resulting from the award or formation of this Agreement. For breach or violation of this warranty, the Local Agency shall have the right to annul this Agreement without liability or, at its discretion, to deduct from the agreement price or consideration, or otherwise recover, the full amount of such fee, commission, percentage, brokerage fee, gift or contingent fee.
4835-2267-0361v1
LAC\04706083 -4-
8.3 p. 227 of 1163
DocuSign Envelope ID: BF3CFF35-95FC-4EEC-800D-A3DDBBDE0469 EXHIBIT “B”
SCOPE OF SERVICES
See attached
4835-2267-0361v1
LAC\04706083 -1-
8.3 p. 228 of 1163
DocuSign Envelope ID: BF3CFF35-95FC-4EEC-800D-A3DDBBDE0469
PARK CONSULTING GROUP
SCOPE OF SERVICES AND COST PROPOSAL
Park Consulting Group (PCG) will provide the City of Gilroy professional services for the City’s Tyler EnerGov Land Management Systems (LMS) Project:
• Our proposed services:
PCG is recommending the following resources and proposed services to support the City to get the EnerGov project back on-track to Go-Live:
Proposed Resources:
Resource
Project Manager
Functional Consultants
Allocation
4 Hours Per Week
30 Hours Per Week
Assigned Resource
Glenn Park
Bryan Tung/
David Bloomgren
Report Developer 20 Custom Reports/ Forms Jared Tan
Project Manager Responsibilities:
•
•
Manage project scope, goals and deliverables that support business goals in collaboration with the IT Department, senior management and stakeholders.
Effectively communicate project expectations to team members and stakeholders in a timely, clear fashion and ongoing basis.
Monitor project expectations with team members and other stakeholders.
Review project timeline, milestones and deliverables with City leadership and Tyler Tech PM
•
•
•
•
Attend project meetings with staff and project stakeholders. This may include internal project briefings and project briefings with Tyler, in addition to others as requested.
Review and provide input on all contracts with external vendors for integrations development and change orders.
•
•
•
Coordinate escalation for questions and issues from the Project Team Address and/or escalate issues / risks as they come up.
Delegate tasks and responsibilities to appropriate team members responsible to own deliverables for the project.
•
•
•
Proactively identify issues and conflicts within the project team, third party vendor partners, and the business as needed; consult with city management to formulate a plan to resolve.
Proactively communicate changes in project scope, identify potential crises, and devise contingency plans; communicate possible changes in scope to IT management and departments and divisions that are affected.
Ensure that project risks are identified, documented, communicated, and addressed in a timely manner.
•
•
Provide feedback on leading best practices to maximize system capabilities.
Provide feedback on leading best practices for project implementation and deployment processes.
Page | 1
8.3 p. 229 of 1163
DocuSign Envelope ID: BF3CFF35-95FC-4EEC-800D-A3DDBBDE0469
PARK CONSULTING GROUP
Functional Consultant Responsibilities:
Design and Configuration:
• Support review of fee schedule and compare to LMS configuration to verify accurate fee setup.
•
•
Support coordination of the configuration review and validation of templates.
Support City configuration resources in making any needed changes to configuration.
•
•
•
Support and review EnerGov configuration to verify accurate setup to configuration documentation and requirements.
Support and review City-owned shared configuration including case type development, CSS, automations, georules, etc.
Support and review data mapping and migration activities from legacy system to EnerGov.
User Acceptance Testing:
•
•
•
•
•
Support the development of a user testing strategy and plan.
Support test case/ script creation with responsible team members/ SMEs.
Support user acceptance participant training and walkthroughs.
Support setup for test case scenarios.
Support user acceptance testing / retesting effort with City-designated testing leads and testers.
• Support prioritization and tracking of user acceptance testing / retesting results in testing tracking system.
End User Training:
•
•
•
•
Support development of training plan and train-the-trainer approach.
Support review of training environment setup and deployment.
Support coordination and facilitation of end user training with staff trainers.
Support training documentation and job aid development as required by staff.
Cutover and Go-Live Activities:
• Support Production cutover, Go-Live, post-Go-Live stabilization, and system troubleshooting (reporting, system enhancements, regulatory changes, etc.).
Support the design, deployment, and onboarding of post-Go-Live / warranty enhancements.
•
Report Developer Responsibilities:
• Provide report development services to design, develop, and deploy Cityassigned non-standard forms and statistical reports generated from EnerGov.
City will provide a list of prioritized and ranked reports to be delivered Forms and reports will be developed utilizing Crystal Reports Park Consulting Group will own and perform the following services related to forms and reports design and development:
•
•
•
•
Review specifications document and provide feedback as required to ensure requirements are fully understood for development
Design and develop .RPT templates required for forms and reports (the City Page | 2
8.3 p. 230 of 1163
DocuSign Envelope ID: BF3CFF35-95FC-4EEC-800D-A3DDBBDE0469
PARK CONSULTING GROUP
may have the opportunity to design and develop .RPT templates to conserve hours for PCG report development. This will be determined on a case-by-case basis by PCG)
•
•
Develop stored procedures and queries required for forms and reports Prepare .RPT and stored procedures development package to be sent to Tyler Tech
• Send .RPT and stored procedures as required by Tyler Tech and cc: City (PCG can also manage this process through a City facilitated process) Maintain, enhance, update, and support forms and reports as requested Attend meetings with City and Tyler Tech related to design, development, and deployment of forms and reports
•
•
Other Project Responsibilities:
• Provide services for project team as needed throughout the LMS implementation project, as requested.
• Key Assumptions:
•
•
PCG shall be responsible for advisory, implementation support services, and project management as requested by theCity.
Due to the City’s desire to expedite the EnerGov project to Go-Live, the scope of the project will be focused on migrating existing LMS processes from Sungard and build upon the current LMS processes with extended EnerGov capabilities. Other processes, capabilities, and user groups not associated to the existing LMS processes from SunGard will be descoped in order to meet project timelines.
City will provide a primary project contact that is available throughout the duration of services.
City will provide process leads and subject matter experts to serve as project team members that are available throughout the duration of services to successfully deliver PCG services. Required minimum of 50% FTE per Lead/ SME.
•
•
•
•
City estimates PCG should have the full ability to deliver the project remotely with no on-site visits and/ or incurred travel costs.
Park Consulting Group provides a broad range of LMS implementation, advisory, and development services. City may request additional services outside of the scope of services and duration and will be considered based on the established hourly rates.
• City will work with Tyler Tech to provide the following for PCG:
• Adequate software licensing for PCG to perform proposed services • Tyler Tech Sharepoint access
• Login and access to EnerGov environments
• Regular database backups of the EnerGov environment with the most up-to-date configuration and all related populated test data • Database backups to be transferrable to PCG technical environments to develop forms and reports
Page | 3
8.3 p. 231 of 1163
DocuSign Envelope ID: BF3CFF35-95FC-4EEC-800D-A3DDBBDE0469
PARK CONSULTING GROUP
• Cost Proposal:
Resource
Project Manager
Functional Consultant
Report Developer
TOTAL
Build & Validate
(5 Months)
$19,500
(20 Hrs/ Mo)
$105,000
(120 Hrs/ Mo)
$35,000
(20 Reports)
$159,000
Testing, Training, & Go-Live
(5 Months)
TOTAL
$39,000
$210,000
$35,000
$284,000
$19,500
(20 Hrs/ Mo)
$105,000
(120 Hrs/ Mo)
$124,500
•
•
•
Total Not-to Exceed: $284,000
Duration of Services: December 1, 2021 – December 31, 2023 PCG’s services will be billed based on the following hourly rate(s):
Park Consulting Resources
Principal LMS Consultant/ Project Manager
LMS Functional Consultant
Report Developer
2021-23 Rates
$195/ hour
$175/ hour
$175/ hour
GIS Consultant $175/ hour
Page | 4
8.3 p. 232 of 1163
DocuSign Envelope ID: BF3CFF35-95FC-4EEC-800D-A3DDBBDE0469 EXHIBIT “C”
MILESTONE SCHEDULE
See attached
4835-2267-0361v1
LAC\04706083 -1-
8.3 p. 233 of 1163
DocuSign Envelope ID: BF3CFF35-95FC-4EEC-800D-A3DDBBDE0469 EnerGov Project Timeline
EnerGov Project Timeline
2021 2022
Sept Oct Nov Dec
V2021.1.3
(Dec 6)
Jan Feb Mar Apr May Jun Jul Aug Sept Oct
Go-Live
Q3 2022 Configuration & Build User Testing & Training
~5 Months ~5 Months
Process
Inventory
End-to-End
Prototype
Configuration
Process
Training Process Config + Unit Testing
CSS/ Decision Engine Config
UAT System Training
Config Updates (if needed)
Go-Live Support Global
Setup
Automations Georules
Report Specs Legend
Report Build
City-owned with PCG
City-owned DC Pass #1 DC Pass #2 DC Pass #3 DC Pass #4 DC #5 Final Pass
Data Conversion
Integrations
+Timing Pass
Tyler Tech-owned Munis / Tyler Cashiering Integration Build 7 8.3
p. 234 of 1163
DocuSign Envelope ID: BF3CFF35-95FC-4EEC-800D-A3DDBBDE0469 EXHIBIT “D”
PAYMENT SCHEDULE
Within 30 days of receipt of invoice based on time and materials per rates in Exhibit B 4835-2267-0361v1
LAC\04706083
8.3 p. 235 of 1163
DocuSign Envelope ID: BF3CFF35-95FC-4EEC-800D-A3DDBBDE0469
CERTIFICATE OF LIABILITY INSURANCE DATE (MM/DD/YYYY)
1/14/2022
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS
CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.
IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed.
If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s).
CONTACT PRODUCER Rachelle Williams
714-505-7000
NAME: Wood Gutmann & Bogart Insurance Brokers PHONE
15901 Red Hill Ave.
Tustin CA 92780
FAX
(A/C, No, Ext): (A/C, No): 714-573-1770
E-MAIL
ADDRESS: [email protected]
INSURER(S) AFFORDING COVERAGE NAIC #
Citizen Insurance of America
The Hanover Insurance Co
License#: 0679263 INSURER A :
INSURED PARKC-2 INSURER B :
INSURER C :
INSURER D :
INSURER E :
INSURER F :
Park Consulting Group, Inc.
200 Spectrum Center Dr Ste 300
Irvine CA 92618
COVERAGES CERTIFICATE NUMBER:1372017995 REVISION NUMBER:
THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
INSR
LTR
ADDL SUBR
INSD WVD
POLICY EFF POLICY EXP TYPE OF INSURANCE POLICY NUMBER (MM/DD/YYYY) (MM/DD/YYYY) LIMITS A COMMERCIAL GENERAL LIABILITY OB3D808332 1/18/2022 1/18/2023 $ 2,000,000
EACH OCCURRENCE
DAMAGE TO RENTED
CLAIMS-MADE OCCUR PREMISES (Ea occurrence) $ 1,000,000
X 500 MED EXP (Any one person) $ 5,000
PERSONAL & ADV INJURY
GENERAL AGGREGATE
$ 2,000,000
GEN'L AGGREGATE LIMIT APPLIES PER: $ 4,000,000
PRO- POLICY JECT LOC PRODUCTS - COMP/OP AGG $ 4,000,000 $ OTHER:
COMBINED SINGLE LIMIT AUTOMOBILELIABILITY $
$
$
$
$
(Ea accident)
ANY AUTO BODILY INJURY (Per person)
OWNED SCHEDULED
AUTOS
NON-OWNED
AUTOS ONLY
BODILY INJURY (Per accident) AUTOS ONLY
HIRED PROPERTY DAMAGE
AUTOS ONLY (Per accident)
UMBRELLA LIAB
EXCESS LIAB
OCCUR EACH OCCURRENCE
AGGREGATE
$
$
$
CLAIMS-MADE
DED RETENTION $
PER OTHER
B WORKERS COMPENSATION
AND EMPLOYERS' LIABILITY
ANYPROPRIETOR/PARTNER/EXECUTIVE
OFFICER/MEMBEREXCLUDED?
(Mandatory in NH)
W23H631525 6/1/2021 6/1/2022 X STATUTE
Y / N
E.L. EACH ACCIDENT $ 1,000,000 N / A
E.L. DISEASE - EA EMPLOYEE $ 1,000,000
E.L. DISEASE - POLICY LIMIT $ 1,000,000
If yes, describe under
DESCRIPTION OF OPERATIONS below
B
B
Errors & Omissions
Cyber & Privacy Security
LH3H431766
LH3H431766
1/18/2022
1/18/2022
1/18/2023
1/18/2023
Each Limit
Aggregate
$2,000,000
$2,000,000
DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) The City of Gilroy, it’s officers, employees, agents, and representatives are named as additional insured on the General Liability per attached 3911006 0816 as required by written contract subject to the terms and conditions of the policy.
CERTIFICATE HOLDER CANCELLATION
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE
THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS.
City of Gilroy
7351 Rosanna Street AUTHORIZED REPRESENTATIVE Gilroy CA 95020 © 1988-2015 ACORD CORPORATION. All rights reserved.
ACORD 25 (2016/03) The ACORD name and logo are registered marks of ACORD
8.3 p. 236 of 1163
DocuSign Envelope ID: BF3CFF35-95FC-4EEC-800D-A3DDBBDE0469 8.3 p. 237 of 1163
DocuSign Envelope ID: BF3CFF35-95FC-4EEC-800D-A3DDBBDE0469 8.3 p. 238 of 1163
DocuSign Envelope ID: BF3CFF35-95FC-4EEC-800D-A3DDBBDE0469 8.3 p. 239 of 1163
City of Gilroy
STAFF REPORT
Agenda Item Title: Award of a Contract to David J. Powers & Associates, Inc. in the Amount of $360,069 with a Project
Contingency of $36,007 (10%), for a Total Cost of
$396,076 for 10th Street Bridge at Uvas Creek
Environmental Compliance Services, Project M 16-10
and Adopt a Resolution Amending the Budget for the
City of Gilroy for 2022-2023 and Appropriating
Proposed Expenditure Amendments
Meeting Date: May 1, 2023
From: Jimmy Forbis, City Administrator
Department: Community Development
Submitted By: Sharon Goei, Community Development Director Prepared By: Melissa Durkin, Planner II
STRATEGIC PLAN GOALS Ensure Neighborhood Equity from City Services Maintain and Improve City Infrastructure
RECOMMENDATION
a) Award a Contract to David J. Powers & Associates, Inc. in the amount of $360,069 with an additional project contingency of $36,007 (10%), for a total cost of $396,076 for 10th Street Bridge at Uvas Creek environmental compliance services and authorize the City Administrator to execute the contract and associated documents; and
b) Adopt a resolution amending the budget for the City of Gilroy for 2022-2023 and appropriating proposed expenditure amendments.
BACKGROUND
Tenth Street (10th Street) is a key component of the City’s mobility infrastructure. This street has long been planned as one of Gilroy’s primary east-west connector streets, linking State Route (SR) 101 with Santa Teresa Boulevard, providing vehicle, bicycle, and pedestrian connectivity between Gilroy’s east and west sides.
8.4 p. 240 of 1163
Award of a Contract to David J. Powers & Associates, Inc. in the Amount of $360,069 with a Project Contingency of $36,007 (10%), for a Total Cost of $396,076 for 10th Street Bridge at Uvas Creek Environmental Compliance Services, Project M 16-10 and Adopt a Resolution Amending the Budget for the City of Gilroy for 2022-2023 and Appropriating Proposed Expenditure Amendments
City of Gilroy City Council Page 2 of 4 May 1, 2023
Tenth Street currently terminates on the east side of Uvas Creek at Uvas Parkway and the west side of Uvas Creek at De Anza Place. Construction of the 10th Street Bridge over Uvas Creek will connect these two segments, resulting in a continuous roadway extending from Santa Teresa Boulevard to SR 101.
The City of Gilroy is seeking a grant to fund bridge construction. The City Council directed staff to begin the bridge design and environmental compliance processes while staff sought grant funding. City staff has taken the following actions to move forward in this direction:
• In 2016, the City began the CEQA proposal process. The decision was made not to proceed at that time due to a lack of funding for bridge construction and uncertainty on the scope of bridge design and associated improvements. • In 2020, the City began the CEQA process again. The decision was made not to proceed for the same reason as in 2016.
• In 2021, the City held a request for proposals (RFP) process for environmental services. Three proposals were received. Details are described in the next section.
• In 2022, the City’s Public Works Department worked with the bridge consultant to finalize the scope of bridge design and associated improvements. The environmental documentation can now proceed.
ANALYSIS
Staff released a request for proposals (RFP) on June 25, 2021, for the 10th Street Bridge at Uvas Creek Environmental Compliance Services. Staff advertised the RFP in the San Jose Mercury News and on the City’s Bid Posting webpage. An addendum to the RFP was published on July 21, 2021.
The Request for Proposals (RFP) identified the City’s desire to retain the services of a qualified consultant to provide environmental services for the 10th Street Bridge at Uvas Creek project. The scope of work included California Environmental Quality Act (CEQA) and National Environmental Protection Act (NEPA) documentation for the proposed bridge and Santa Clara Valley Habitat Plan permitting. The RFP required the studies to follow Caltrans Office of Local Assistance procedures and utilize formats published on the Caltrans Standard Environmental Reference (SER) website because the project proposes to use federal funds.
Project Proposals: The City received three proposals. Two proposals were from consultants from the City’s On-Call Consultant Selection List (David J. Powers & Associates, Inc. and Michael Baker International), and one was from a firm not on the list (MIG). A fourth firm (FirstCarbon Solutions) submitted a letter declining to bid.
8.4 p. 241 of 1163
Award of a Contract to David J. Powers & Associates, Inc. in the Amount of $360,069 with a Project Contingency of $36,007 (10%), for a Total Cost of $396,076 for 10th Street Bridge at Uvas Creek Environmental Compliance Services, Project M 16-10 and Adopt a Resolution Amending the Budget for the City of Gilroy for 2022-2023 and Appropriating Proposed Expenditure Amendments
City of Gilroy City Council Page 3 of 4 May 1, 2023
Proposal Evaluation: In accordance with the RFP and the City’s standard evaluation and scoring criteria, proposals were evaluated based on the consultant’s corporate and team member qualifications and experience; understanding of the scope of services; reference quality and responses; and the overall quality of the response to the RFP.
This was a qualifications-based process, so consultant costs were not considered part of the evaluation.
The proposals were reviewed and scored separately by the reviewers. The strengths and weaknesses of each consultant team were discussed, and the individual scores were averaged to determine the preferred consultant team. The rank and budget for each consultant are provided in the table below.
Rank Consultant Name Total Budget
1 David J. Powers & Associates, Inc. $387,0301
2 Michael Baker International (MBI) $399,7752
3 MIG $299,9662
David J. Powers & Associates, Inc. and Michael Baker International demonstrated extensive experience providing environmental services for bridge projects that involve compliance with Caltrans Office of Local Assistance procedures. The third firm, MIG, did not demonstrate the same level of experience.
EXCLUSIONS
The scope of work is for CEQA and NEPA environmental compliance only. The scope of work does not include noticing and filing costs; post-CEQA environmental work needed to complete necessary permitting; preparation of a restoration plan; or obtaining any regulatory permits.
ALTERNATIVES
Council could choose to reject all proposals. Staff does not recommend this option as this would delay the environmental analysis for the bridge, potentially jeopardizing grant opportunities that could fund bridge construction. The costs associated with this project are also likely to rise if a new Request for Proposals process occurs. 1 David J. Powers identified some tasks as optional tasks. Staff has determined these tasks will be necessary, so they are included in the total budget.
2 Staff has determined a hydroacoustical analysis will be required. Neither MBI nor MIG included this analysis in their proposals. This task would add costs to their proposed budgets.
8.4 p. 242 of 1163
Award of a Contract to David J. Powers & Associates, Inc. in the Amount of $360,069 with a Project Contingency of $36,007 (10%), for a Total Cost of $396,076 for 10th Street Bridge at Uvas Creek Environmental Compliance Services, Project M 16-10 and Adopt a Resolution Amending the Budget for the City of Gilroy for 2022-2023 and Appropriating Proposed Expenditure Amendments
City of Gilroy City Council Page 4 of 4 May 1, 2023
FISCAL IMPACT/FUNDING SOURCE
The funding for this project will be drawn from the City’s Traffic Impact Fee Fund (fund 425). There are sufficient monies in this fund to pay for the proposed environmental services. Funding for this contract will be appropriated in Fiscal Year 2023 (FY23) since funds will be encumbered in FY23. The FY23 budget will need to be amended to appropriate funds for these services. A resolution approving this amendment is included as staff report attachment 2.
NEXT STEPS
Upon Council’s approval, the contract with David J. Powers & Associates, Inc. will be executed, and the consultant will begin work.
Attachments:
1. David J. Powers Agreement for 10th Street Bridge at Uvas Creek Environmental Compliance Services
2. Draft Resolution Amending the City of Gilroy 2022-2023 Budget and Appropriating Proposed Expenditure Amendments
8.4 p. 243 of 1163
-1- 4835-2267-0361v1
LAC\04706083
AGREEMENT FOR SERVICES
(For contracts over $5,000 - CONSULTANT)
This AGREEMENT made this 1st day of May, 2023, between:
CITY: City of Gilroy, having a principal place of business at 7351 Rosanna Street, Gilroy, California
and CONSULTANT: David J. Powers & Associates, Inc., having a principal place of business at 1871 The Alameda, Suite 200, San Jose, CA 95126.
ARTICLE 1. TERM OF AGREEMENT
This Agreement will become effective on May 1, 2023 and will continue in effect through completion of the scope of work unless terminated in accordance with the provisions of Article 7 of this Agreement.
Any lapse in insurance coverage as required by Article 5, Section D of this Agreement shall terminate this Agreement regardless of any other provision stated herein. ______ Initial
ARTICLE 2. INDEPENDENT CONTRACTOR STATUS
It is the express intention of the parties that CONSULTANT is an independent contractor and not an employee, agent, joint venturer or partner of CITY. Nothing in this Agreement shall be interpreted or construed as creating or establishing the relationship of employer and employee between CITY and CONSULTANT or any employee or agent of CONSULTANT. Both parties acknowledge that CONSULTANT is not an employee for state or federal tax purposes.
CONSULTANT shall not be entitled to any of the rights or benefits afforded to CITY’S employees, including, without limitation, disability or unemployment insurance, workers’ compensation, medical insurance, sick leave, retirement benefits or any other employment benefits. CONSULTANT shall retain the right to perform services for others during the term of this Agreement.
ARTICLE 3. SERVICES TO BE PERFORMED BY CONSULTANT
A. Specific Services
CONSULTANT agrees to: Perform the services as outlined in Exhibit “A” (“Specific Provisions”) and Exhibit “B” (“Scope of Services”), within the time periods described in Exhibit “C” (“Milestone Schedule”).
B. Method of Performing Services
CONSULTANT shall determine the method, details and means of performing the above-described services. CITY shall have no right to, and shall not, control the manner or determine the method of accomplishing CONSULTANT’S services.
8.4 p. 244 of 1163
-2- 4835-2267-0361v1
LAC\04706083
C. Employment of Assistants
CONSULTANT may, at the CONSULTANT’S own expense, employ such assistants as CONSULTANT deems necessary to perform the services required of CONSULTANT by this Agreement, subject to the prohibition against assignment and subcontracting contained in Article 5 below. CITY may not control, direct, or supervise CONSULTANT’S assistants in the performance of those services. CONSULTANT assumes full and sole responsibility for the payment of all compensation and expenses of these assistants and for all state and federal income tax, unemployment insurance, Social Security, disability insurance and other applicable withholding.
D. Place of Work
CONSULTANT shall perform the services required by this Agreement at any place or location and at such times as CONSULTANT shall determine is necessary to properly and timely perform CONSULTANT’S services.
ARTICLE 4. COMPENSATION
A. Consideration
In consideration for the services to be performed by CONSULTANT, CITY agrees to pay CONSULTANT the amounts set forth in Exhibit “D” (“Payment Schedule”). In no event however shall the total compensation paid to CONSULTANT exceed $360,069.
B. Invoices
CONSULTANT shall submit invoices for all services rendered.
C. Payment
Payment shall be due according to the payment schedule set forth in Exhibit “D”. No payment will be made unless CONSULTANT has first provided City with a written receipt of invoice describing the work performed and any approved direct expenses (as provided for in Exhibit “A”, Section IV) incurred during the preceding period. If CITY objects to all or any portion of any invoice, CITY shall notify CONSULTANT of the objection within thirty (30) days from receipt of the invoice, give reasons for the objection, and pay that portion of the invoice not in dispute. It shall not constitute a default or breach of this Agreement for CITY not to pay any invoiced amounts to which it has objected until the objection has been resolved by mutual agreement of the parties.
D. Expenses
CONSULTANT shall be responsible for all costs and expenses incident to the performance of services for CITY, including but not limited to, all costs of equipment used or provided by CONSULTANT, all fees, fines, licenses, bonds or taxes required of or imposed against CONSULTANT and all other of CONSULTANT’S costs of doing business. CITY shall not be responsible for any expenses incurred by CONSULTANT in performing services for CITY, except for those expenses constituting “direct expenses” referenced on Exhibit “A.”
8.4 p. 245 of 1163
-3- 4835-2267-0361v1
LAC\04706083
ARTICLE 5. OBLIGATIONS OF CONSULTANT
A. Tools and Instrumentalities
CONSULTANT shall supply all tools and instrumentalities required to perform the services under this Agreement at its sole cost and expense. CONSULTANT is not required to purchase or rent any tools, equipment or services from CITY.
B. Workers’ Compensation
CONSULTANT agrees to provide workers’ compensation insurance for CONSULTANT’S employees and agents and agrees to hold harmless, defend with counsel acceptable to CITY and indemnify CITY, its officers, representatives, agents and employees from and against any and all claims, suits, damages, costs, fees, demands, causes of action, losses, liabilities and expenses, including without limitation reasonable attorneys’ fees, arising out of any injury, disability, or death of any of CONSULTANT’S employees.
C. Indemnification of Liability, Duty to Defend
1. As to professional liability, to the fullest extent permitted by law, CONSULTANT shall defend, through counsel approved by CITY (which approval shall not be unreasonably withheld), indemnify and hold harmless CITY, its officers, representatives, agents and employees against any and all suits, damages, costs, fees, claims, demands, causes of action, losses, liabilities and expenses, including without limitation attorneys’ fees, to the extent arising or resulting directly or indirectly from any willful or negligent acts, errors or omissions of CONSULTANT or CONSULTANT’S assistants, employees or agents, including all claims relating to the injury or death of any person or damage to any property.
2. As to other liability, to the fullest extent permitted by law, CONSULTANT shall defend, through counsel approved by CITY (which approval shall not be unreasonably withheld), indemnify and hold harmless CITY, its officers, representatives, agents and employees against any and all suits, damages, costs, fees, claims, demands, causes of action, losses, liabilities and expenses, including without limitation attorneys’ fees, arising or resulting directly or indirectly from any act or omission of CONSULTANT or CONSULTANT’S assistants, employees or agents, including all claims relating to the injury or death of any person or damage to any property.
D. Insurance
In addition to any other obligations under this Agreement, CONSULTANT shall, at no cost to CITY, obtain and maintain throughout the term of this Agreement: (a) Commercial Liability Insurance on a per occurrence basis, including coverage for owned and non-owned automobiles, with a minimum combined single limit coverage of $1,000,000 per occurrence for all damages due to bodily injury, sickness or disease, or death to any person, and damage to property, including the loss of use thereof; and (b) Professional Liability Insurance (Errors & Omissions) with a minimum coverage of $1,000,000 per occurrence or claim, and $2,000,000 aggregate; provided however, Professional Liability Insurance written on a claims made basis must comply with the requirements
8.4 p. 246 of 1163
-4- 4835-2267-0361v1
LAC\04706083
set forth below. Professional Liability Insurance written on a claims made basis (including without limitation the initial policy obtained and all subsequent policies purchased as renewals or replacements) must show the retroactive date, and the retroactive date must be before the earlier of the effective date of the contract or the beginning of the contract work. Claims made Professional Liability Insurance must be maintained, and written evidence of insurance must be provided, for at least five (5) years after the completion of the contract work. If claims made coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a retroactive date prior to the earlier of the effective date of the contract or the beginning of the contract work, CONSULTANT must purchase so called “extended reporting” or “tail” coverage for a minimum of five (5) years after completion of work, which must also show a retroactive date that is before the earlier of the effective date of the contract or the beginning of the contract work.
As a condition precedent to CITY’S obligations under this Agreement, CONSULTANT shall furnish written evidence of such coverage (naming CITY, its officers and employees as additional insureds on the Comprehensive Liability insurance policy referred to in (a) immediately above via a specific endorsement) and requiring thirty (30) days written notice of policy lapse or cancellation, or of a material change in policy terms.
E. Assignment
Notwithstanding any other provision of this Agreement, neither this Agreement nor any duties or obligations of CONSULTANT under this Agreement may be assigned or subcontracted by CONSULTANT without the prior written consent of CITY, which CITY may withhold in its sole and absolute discretion.
F. State and Federal Taxes
As CONSULTANT is not CITY’S employee, CONSULTANT shall be responsible for paying all required state and federal taxes. Without limiting the foregoing, CONSULTANT acknowledges and agrees that:
• CITY will not withhold FICA (Social Security) from CONSULTANT’S payments;
• CITY will not make state or federal unemployment insurance contributions on CONSULTANT’S behalf;
• CITY will not withhold state or federal income tax from payment to CONSULTANT;
• CITY will not make disability insurance contributions on behalf of CONSULTANT;
• CITY will not obtain workers’ compensation insurance on behalf of CONSULTANT.
8.4 p. 247 of 1163
-5- 4835-2267-0361v1
LAC\04706083
ARTICLE 6. OBLIGATIONS OF CITY
A. Cooperation of City
CITY agrees to respond to all reasonable requests of CONSULTANT and provide access, at reasonable times following receipt by CITY of reasonable notice, to all documents reasonably necessary to the performance of CONSULTANT’S duties under this Agreement.
B. Assignment
CITY may assign this Agreement or any duties or obligations thereunder to a successor governmental entity without the consent of CONSULTANT. Such assignment shall not release CONSULTANT from any of CONSULTANT’S duties or obligations under this Agreement.
ARTICLE 7. TERMINATION OF AGREEMENT
A. Sale of Consultant’s Business/ Death of Consultant.
CONSULTANT shall notify CITY of the proposed sale of CONSULTANT’s business no later than thirty (30) days prior to any such sale. CITY shall have the option of terminating this Agreement within thirty (30) days after receiving such notice of sale. Any such CITY termination pursuant to this Article 7.A shall be in writing and sent to the address for notices to CONSULTANT set forth in Exhibit A, Subsection V.H., no later than thirty (30) days after CITY’ receipt of such notice of sale.
If CONSULTANT is an individual, this Agreement shall be deemed automatically terminated upon death of CONSULTANT.
B. Termination by City for Default of Consultant
Should CONSULTANT default in the performance of this Agreement or materially breach any of its provisions, CITY, at CITY’S option, may terminate this Agreement by giving written notification to CONSULTANT. For the purposes of this section, material breach of this Agreement shall include, but not be limited to the following:
1. CONSULTANT’S failure to professionally and/or timely perform any of the services contemplated by this Agreement.
2. CONSULTANT’S breach of any of its representations, warranties or covenants contained in this Agreement.
CONSULTANT shall be entitled to payment only for work completed in accordance with the terms of this Agreement through the date of the termination notice, as reasonably determined by CITY, provided that such payment shall not exceed the amounts set forth in this Agreement for the tasks described on Exhibit C” which have been fully, competently and timely rendered by CONSULTANT. Notwithstanding the foregoing, if CITY terminates this Agreement due to CONSULTANT’S default in the performance of this Agreement or material breach by CONSULTANT of any of its provisions, then in addition to any other rights and remedies CITY
8.4 p. 248 of 1163
-6- 4835-2267-0361v1
LAC\04706083
may have, CONSULTANT shall reimburse CITY, within ten (10) days after demand, for any and all costs and expenses incurred by CITY in order to complete the tasks constituting the scope of work as described in this Agreement, to the extent such costs and expenses exceed the amounts CITY would have been obligated to pay CONSULTANT for the performance of that task pursuant to this Agreement.
C. Termination for Failure to Make Agreed-Upon Payments Should CITY fail to pay CONSULTANT all or any part of the compensation set forth in Article 4 of this Agreement on the date due, then if and only if such nonpayment constitutes a default under this Agreement, CONSULTANT, at the CONSULTANT’S option, may terminate this Agreement if such default is not remedied by CITY within thirty (30) days after demand for such payment is given by CONSULTANT to CITY.
D. Transition after Termination
Upon termination, CONSULTANT shall immediately stop work, unless cessation could potentially cause any damage or harm to person or property, in which case CONSULTANT shall cease such work as soon as it is safe to do so. CONSULTANT shall incur no further expenses in connection with this Agreement. CONSULTANT shall promptly deliver to CITY all work done toward completion of the services required hereunder, and shall act in such a manner as to facilitate any the assumption of CONSULTANT’s duties by any new consultant hired by the CITY to complete such services.
ARTICLE 8. GENERAL PROVISIONS
A. Amendment & Modification
No amendments, modifications, alterations or changes to the terms of this Agreement shall be effective unless and until made in a writing signed by both parties hereto.
B. Americans with Disabilities Act of 1990
Throughout the term of this Agreement, the CONSULTANT shall comply fully with all applicable provisions of the Americans with Disabilities Act of 1990 (“the Act”) in its current form and as it may be amended from time to time. CONSULTANT shall also require such compliance of all subcontractors performing work under this Agreement, subject to the prohibition against assignment and subcontracting contained in Article 5 above. The CONSULTANT shall defend with counsel acceptable to CITY, indemnify and hold harmless the CITY OF GILROY, its officers, employees, agents and representatives from and against all suits, claims, demands, damages, costs, causes of action, losses, liabilities, expenses and fees, including without limitation reasonable attorneys’ fees, that may arise out of any violations of the Act by the CONSULTANT, its subcontractors, or the officers, employees, agents or representatives of either.
C. Attorneys’ Fees
If any action at law or in equity, including an action for declaratory relief, is brought to enforce or interpret the provisions of this Agreement, the prevailing party will be entitled to reasonable
8.4 p. 249 of 1163
-7- 4835-2267-0361v1
LAC\04706083
attorneys’ fees, which may be set by the court in the same action or in a separate action brought for that purpose, in addition to any other relief to which that party may be entitled.
D. Captions
The captions and headings of the various sections, paragraphs and subparagraphs of the Agreement are for convenience only and shall not be considered nor referred to for resolving questions of interpretation.
E. Compliance with Laws
The CONSULTANT shall keep itself informed of all State and National laws and all municipal ordinances and regulations of the CITY which in any manner affect those engaged or employed in the work, or the materials used in the work, or which in any way affect the conduct of the work, and of all such orders and decrees of bodies or tribunals having any jurisdiction or authority over the same. Without limiting the foregoing, CONSULTANT agrees to observe the provisions of the Municipal Code of the CITY OF GILROY, obligating every contractor or subcontractor under a contract or subcontract to the CITY OF GILROY for public works or for goods or services to refrain from discriminatory employment or subcontracting practices on the basis of the race, color, sex, religious creed, national origin, ancestry of any employee, applicant for employment, or any potential subcontractor.
F. Conflict of Interest
CONSULTANT certifies that to the best of its knowledge, no CITY employee or office of any public agency interested in this Agreement has any pecuniary interest in the business of CONSULTANT and that no person associated with CONSULTANT has any interest that would constitute a conflict of interest in any manner or degree as to the execution or performance of this Agreement.
G. Entire Agreement
This Agreement supersedes any and all prior agreements, whether oral or written, between the parties hereto with respect to the rendering of services by CONSULTANT for CITY and contains all the covenants and agreements between the parties with respect to the rendering of such services in any manner whatsoever. Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein, and that no other agreement, statement or promise not contained in this Agreement shall be valid or binding.
No other agreements or conversation with any officer, agent or employee of CITY prior to execution of this Agreement shall affect or modify any of the terms or obligations contained in any documents comprising this Agreement. Such other agreements or conversations shall be considered as unofficial information and in no way binding upon CITY.
8.4 p. 250 of 1163
-8- 4835-2267-0361v1
LAC\04706083
H. Governing Law and Venue
This Agreement shall be governed by and construed in accordance with the laws of the State of California without regard to the conflict of laws provisions of any jurisdiction. The exclusive jurisdiction and venue with respect to any and all disputes arising hereunder shall be in state and federal courts located in Santa Clara County, California.
I. Notices
Any notice to be given hereunder by either party to the other may be effected either by personal delivery in writing or by mail, registered or certified, postage prepaid with return receipt requested.
Mailed notices shall be addressed to the parties at the addresses appearing in Exhibit “A”, Section V.H. but each party may change the address by written notice in accordance with this paragraph.
Notices delivered personally will be deemed delivered as of actual receipt; mailed notices will be deemed delivered as of three (3) days after mailing.
J. Partial Invalidity
If any provision in this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions will nevertheless continue in full force without being impaired or invalidated in any way.
K. Time of the Essence
All dates and times referred to in this Agreement are of the essence.
L. Waiver
CONSULTANT agrees that waiver by CITY of any one or more of the conditions of performance under this Agreement shall not be construed as waiver(s) of any other condition of performance under this Agreement.
Executed at Gilroy, California, on the date and year first above written.
CONSULTANT: CITY:
David J. Powers & Associates, Inc. CITY OF GILROY
By: By:
Name: Akoni Danielsen Name: Jimmy Forbis
Title: President Title: City Administrator
Social Security or Taxpayer
Identification Number 77-0219577
8.4 p. 251 of 1163
-9- 4835-2267-0361v1
LAC\04706083
Approved as to Form ATTEST:
City Attorney City Clerk
8.4 p. 252 of 1163
-1- 4835-2267-0361v1
LAC\04706083
EXHIBIT “A”
SPECIFIC PROVISIONS
I. PROJECT MANAGER
CONSULTANT shall provide the services indicated on the attached Exhibit “B”, Scope of Services (“Services”). (All exhibits referenced are incorporated herein by reference.) To accomplish that end, CONSULTANT agrees to assign Patrick Kallas, who will act in the capacity of Project Manager, and who will personally direct such Services.
Except as may be specified elsewhere in this Agreement, CONSULTANT shall furnish all technical and professional services including labor, material, equipment, transportation, supervision and expertise to perform all operations necessary and required to complete the Services in accordance with the terms of this Agreement.
II. NOTICE TO PROCEED/COMPLETION OF SERVICE
A. NOTICE TO PROCEED
CONSULTANT shall commence the Services upon delivery to CONSULTANT of a written “Notice to Proceed”, which Notice to Proceed shall be in the form of a written communication from designated City contact person(s). Notice to Proceed may be in the form of e-mail, fax or letter authorizing commencement of the Services. For purposes of this Agreement, Melissa Durkin shall be the designated City contact person(s). Notice to Proceed shall be deemed to have been delivered upon actual receipt by CONSULTANT or if otherwise delivered as provided in the Section V.H. (“Notices”) of this Exhibit “A”.
B. COMPLETION OF SERVICES
When CITY determines that CONSULTANT has completed all of the Services in accordance with the terms of this Agreement, CITY shall give CONSULTANT written Notice of Final Acceptance, and CONSULTANT shall not incur any further costs hereunder. CONSULTANT may request this determination of completion when, in its opinion, it has completed all of the Services as required by the terms of this Agreement and, if so requested, CITY shall make this determination within two (2) weeks of such request, or if CITY determines that CONSULTANT has not completed all of such Services as required by this Agreement, CITY shall so inform CONSULTANT within this two (2) week period.
III. PROGRESS SCHEDULE
The schedule for performance and completion of the Services will be as set forth in the attached Exhibit “C”.
IV. PAYMENT OF FEES AND DIRECT EXPENSES
Payments shall be made to CONSULTANT as provided for in Article 4 of this Agreement.
8.4 p. 253 of 1163
-2- 4835-2267-0361v1
LAC\04706083
Direct expenses are charges and fees not included in Exhibit “B”. CITY shall be obligated to pay only for those direct expenses which have been previously approved in writing by CITY.
CONSULTANT shall obtain written approval from CITY prior to incurring or billing of direct expenses.
Copies of pertinent financial records, including invoices, will be included with the submission of billing(s) for all direct expenses.
V. OTHER PROVISIONS
A. STANDARD OF WORKMANSHIP
CONSULTANT represents and warrants that it has the qualifications, skills and licenses necessary to perform the Services, and its duties and obligations, expressed and implied, contained herein, and CITY expressly relies upon CONSULTANT’S representations and warranties regarding its skills, qualifications and licenses. CONSULTANT shall perform such Services and duties in conformance to and consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California.
Any plans, designs, specifications, estimates, calculations, reports and other documents furnished under this Agreement shall be of a quality acceptable to CITY. The minimum criteria for acceptance shall be a product of neat appearance, well-organized, technically and grammatically correct, checked and having the maker and checker identified. The minimum standard of appearance, organization and content of the drawings shall be that used by CITY for similar purposes.
B. RESPONSIBILITY OF CONSULTANT
CONSULTANT shall be responsible for the professional quality, technical accuracy, and the coordination of the Services furnished by it under this Agreement. CONSULTANT shall not be responsible for the accuracy of any project or technical information provided by the CITY. The CITY’S review, acceptance or payment for any of the Services shall not be construed to operate as a waiver of any rights under this Agreement or of any cause of action arising out of the performance of this Agreement, and CONSULTANT shall be and remain liable to CITY in accordance with applicable law for all damages to CITY caused by CONSULTANT’S negligent performance of any of the services furnished under this Agreement.
C. RIGHT OF CITY TO INSPECT RECORDS OF CONSULTANT
CITY, through its authorized employees, representatives or agents, shall have the right, at any and all reasonable times, to audit the books and records (including, but not limited to, invoices, vouchers, canceled checks, time cards, etc.) of CONSULTANT for the purpose of verifying any and all charges made by CONSULTANT in connection with this Agreement. CONSULTANT shall maintain for a minimum period of three (3) years (from the date of final payment to CONSULTANT), or for any longer period required by law, sufficient books and records in accordance with standard California accounting practices to establish the correctness of all charges submitted to CITY by CONSULTANT, all of which shall be made available to CITY at the CITY’s offices within five (5) business days after CITY’s request.
8.4 p. 254 of 1163
-3- 4835-2267-0361v1
LAC\04706083
D. CONFIDENTIALITY OF MATERIAL
All ideas, memoranda, specifications, plans, manufacturing procedures, data (including, but not limited to, computer data and source code), drawings, descriptions, documents, discussions or other information developed or received by or for CONSULTANT and all other written and oral information developed or received by or for CONSULTANT and all other written and oral information submitted to CONSULTANT in connection with the performance of this Agreement shall be held confidential by CONSULTANT and shall not, without the prior written consent of CITY, be used for any purposes other than the performance of the Services, nor be disclosed to an entity not connected with the performance of the such Services. Nothing furnished to CONSULTANT which is otherwise known to CONSULTANT or is or becomes generally known to the related industry (other than that which becomes generally known as the result of CONSULTANT’S disclosure thereof) shall be deemed confidential. CONSULTANT shall not use CITY’S name or insignia, or distribute publicity pertaining to the services rendered under this Agreement in any magazine, trade paper, newspaper or other medium without the express written consent of CITY.
E. NO PLEDGING OF CITY’S CREDIT.
Under no circumstances shall CONSULTANT have the authority or power to pledge the credit of CITY or incur any obligation in the name of CITY.
F. OWNERSHIP OF MATERIAL.
All material including, but not limited to, computer information, data and source code, sketches, tracings, drawings, plans, diagrams, quantities, estimates, specifications, proposals, tests, maps, calculations, photographs, reports and other material developed, collected, prepared (or caused to be prepared) under this Agreement shall be the property of CITY, but CONSULTANT may retain and use copies thereof subject to Section V.D of this Exhibit “A”.
CITY shall not be limited in any way in its use of said material at any time for any work, whether or not associated with the City project for which the Services are performed. However, CONSULTANT shall not be responsible for, and City shall indemnify CONSULTANT from, damages resulting from the use of said material for work other than PROJECT, including, but not limited to, the release of this material to third parties for work other than on PROJECT.
G. NO THIRD PARTY BENEFICIARY.
This Agreement shall not be construed or deemed to be an agreement for the benefit of any third party or parties, and no third party or parties shall have any claim or right of action hereunder for any cause whatsoever.
8.4 p. 255 of 1163
-4- 4835-2267-0361v1
LAC\04706083
H. NOTICES.
Notices are to be sent as follows:
CITY: Sharon Goei
City of Gilroy
7351 Rosanna Street
Gilroy, CA 95020
CONSULTANT: Akoni Danielsen
David J. Powers & Associates, Inc.
1871 The Alameda, Suite 200
San Jose, CA 95126
I. FEDERAL FUNDING REQUIREMENTS.
If the box to the left of this sentence is checked, this Agreement involves federal funding and the requirements of this Section V.I. apply.
If the box to the left of this sentence is checked, this Agreement does not involve federal funding and the requirements of this Section V.I. do not apply.
1. DBE Program
CONSULTANT shall comply with the requirements of Title 49, Part 26, Code of Federal Regulations (49 CFR 26) and the City-adopted Disadvantaged Business Enterprise programs.
2. Cost Principles
Federal Acquisition Regulations in Title 48, CFR 31, shall be used to determine the allowable cost for individual items.
3. Covenant against Contingent Fees
The CONSULTANT warrants that he/she has not employed or retained any company or person, other than a bona fide employee working for the CONSULTANT, to solicit or secure this Agreement, and that he/she has not paid or agreed to pay any company or person, other than a bona fide employee, any fee, commission, percentage, brokerage fee, gift or any other consideration, contingent upon or resulting from the award or formation of this Agreement. For breach or violation of this warranty, the Local Agency shall have the right to annul this Agreement without liability or, at its discretion, to deduct from the agreement price or consideration, or otherwise recover, the full amount of such fee, commission, percentage, brokerage fee, gift or contingent fee.
8.4 p. 256 of 1163
-1- 4835-2267-0361v1
LAC\04706083
EXHIBIT “B”
SCOPE OF SERVICES
Attached.
8.4 p. 257 of 1163
1 10TH STREET BRIDGE AT UVAS CREEK
NEPA/CEQA COMPLIANCE & PERMITTING
UPDATED APPROACH AND SCOPE
July 8, 2022
PROJECT DESCRIPTION
The 10th Street Bridge at Uvas Creek Project (Project) would connect two existing segments of 10th Street in the City of Gilroy by constructing a bridge over Uvas Creek.
Improvements to 10th Street and other nearby roadways are also included in the Project.1 The Project would implement a key improvement to the City’s transportation network as identified in the Gilroy General Plan.
Project Components
The components of the Project are described as follows:
10th Street Bridge at Uvas Creek: A new bridge would be constructed over Uvas Creek that would connect two existing segments of 10th Street. The new bridge would have a width of approximately 74 feet and a length of approximately 315 feet. It would include two vehicular traffic lanes, a median to accommodate nearby intersections as well as shielded bicycle lanes and pedestrian sidewalks on both sides. The bridge would be a 3- span structure. The piers and abutments would be located outside of the low-flow channel of Uvas Creek. To accommodate the new bridge, the profile of 10th Street and Uvas Park Drive would be raised on approach embankments.
Uvas Creek Levee Trail “Breezeway” Bridge and Connections: This component of the Project would consist of a short (31-foot long) bridge on 10th Street immediately east of the proposed Uvas Creek bridge. The bridge would be located behind the east levee of Uvas Creek and would allow users of the Uvas Creek Levee Trail to pass unimpeded under 10th Street. Connections between 10th Street and the trail would also be constructed to accommodate those cyclists and pedestrians entering or exiting the trail at that location.
Uvas Creek Levee Trail Realignment: To accommodate the proposed bridge, as well as to improve public safety and accommodate the request of the Santa Clara Valley Water District to shift the levee to match the new “back of walk”, a short segment of the Uvas Creek Levee Trail north and south of 10th Street would be realigned. 1 Uvas Creek is assumed to flow in a north-south orientation and 10th Street is assumed to be oriented in an east-west direction.
8.4 p. 258 of 1163
2 10th Street/Orchard Drive Intersection and Crosswalk Improvements: To accommodate the realignment of 10th Street and to improve intersection safety, the curb returns and driveway at Gilroy High School will be reconstructed. Minor improvements to the High School driveway/parking lot entrance are proposed to match grade and connect the sidewalks.
10th Street/Uvas Park Drive Roundabout: A roundabout would be constructed at the intersection of 10th Street and Uvas Park Drive.
10th Street Improvements: Between De Anza Place on the west and Orchard Drive on the east, improvements to 10th Street would be constructed as needed. These improvements would consist of sidewalks, bikeways, crosswalks, restriping, signing, curb-and-gutter, storm drain, lighting, and repaving.
Construction Phasing
To accommodate winter flows in Uvas Creek, the proposed project work activities would be built in two construction stages (Stage 1 and Stage 2) between April 15 and December
31. Prior to these construction stages for the bridge work, site preparations for this work would be completed including but not limited to tree removal, grading of access roads, and creation of work pads outside the creek/levee.
Stage 1 Bridge Construction: This would include construction of the 10th Street Bridge foundation systems, which would be built outside of the active flow channel of Uvas Creek. This stage also includes construction of any temporary foundations to support temporary falsework supports, desired by the contractor, to build the overhead bridge superstructures in Stage 2. In this stage, approximately 32 abutment piles, and 6 intermediate support columns (all piles constructed to a depth of approximately 40 feet below ground surface) for the larger 10th Street Bridge would be completed by December
31. In the case of the much smaller Breezeway Bridge, which is located outside the riparian corridor, it is anticipated that only the deep piles would be installed in Stage 1. The abutments and wing walls may not be constructed in Stage 1 because these components could limit access for construction of the 10th Street Bridge. See discussion in Stage 2 for more information. Stage 1 construction would also include installation of underground piles for the Breezeway Bridge, which would include 16 piles at a depth of approximately 40 feet below ground surface.
Stage 1 Roadway and Levee Construction: In addition to the bridge construction undertaken in Stage 1, roadway and drainage work will likely be constructed. Because the project requires a fair amount of import borrow to build the approach embankments, design engineers anticipate the Contractor could time construction of the 10th Street project to coincide with other projects that same Contractor may be undertaking elsewhere which are generating “excess material”. This approach could benefit the
8.4 p. 259 of 1163
3 Contractor by allowing them to enjoy efficiency thereby making them the “low-bidder”, but the availability of the material may control their project approach and schedule regarding “how much roadwork” they build in Stage 1.
Because the clayey material over-excavated from the subgrade for the roadway conforms will be used in the reconstructed levees, engineers anticipate the levee construction occurs coincident with the construction of the roadway conforms. This could be either Stage 1 or Stage 2.
Stage 2 Bridge Construction: This would include the construction of the approximately 315-foot-long 10th Street Bridge. This stage would start with the placement of temporary supports (falsework). The center portion of this falsework would span the Uvas Creek active flow channel and could be supported on piles constructed in Stage 1. The falsework would include minor earthwork to create level dirt pads to support this falsework system.
Falsework placed adjacent to the 25-year flood event zone would be required for approximately eight months (between April 15 to December 31) and would be installed during the dry season. All falsework and leveling pads would be removed, and the temporary piles would be cut off below grade by December 31. No work would occur during rain events and no pile driving would occur after October 31. Erosion control measures would be installed at the end of the dry season and additional measures would be employed 24 hours prior to a forecasted rain event.
After the superstructure of the 10th Street Bridge is constructed, construction of the Breezeway Bridge would begin and continue through winter months using appropriate erosion and sediment control BMPs. The bridge would be built on top of the piles already constructed in Stage 1.
Stage 2 Roadway/Levee Construction: Outside the footprint of the bridges, construction will continue on the partially completed roadway, trail and drainage improvements which were begun in Stage 1. Because the bridge construction will require a fair amount of laydown room, and because the Contractor will likely want to use the unpaved roadway. trail approaches for staging materials and equipment, engineers anticipate the paving will occur late in the project.
At the time this “Project Description” was prepared, engineers anticipated that the Contractor will be able to work double-shifts or perhaps ‘round the clock during key operation for the bridge work in order to provide enough “cure time” for the various concrete pours. Up to 3 months of “cure” time could be required within the April 15 to December 31 work windows over the creek. Engineers anticipate that progress on the bridge work will affect the roadway work because the Contractor may not want to complete the approach roadways until after the bridges are complete in order to protect the finished work. Should restrictions be placed on construction methods which limit work hours, nighttime construction lighting, noise, or other factors which control the Contractor’s progress, the final roadwork may have to occur after December 31, as weather permits.
8.4 p. 260 of 1163
4 Traffic and Construction Detours
Since the proposed 10th Street and Breezeway Bridges are located away from active roadways, the Project does not anticipate the need for construction detours for construction of the vehicular and pedestrian/cyclist bridges. The bridge and levee modification would be constructed before the elevated roadway approaches and roundabout are built.
Roadwork necessary for the construction of the approach fills and roundabout would require Uvas Park Drive to be temporarily closed at Miller Street and 10th Street to be closed at Orchard Drive for approximately 12 months.
Due to potential hazards to pedestrians from construction activities, the Uvas Creek Levee Trails on both sides of Uvas Creek would be temporarily closed until the bridges are substantially complete. It is anticipated that the trail closure would coincide with Stage 2 Bridge Construction and be approximately six months, but the closure could be longer, depending on the amount of work the Contractor completes in Stage 1. It could be that the partially constructed project is not available for public use, and in the interest of safety (and to provide significant cost savings) the trail closures would remain in place through all of Stage 1 and Stage 2.
Construction Access and Laydown Areas
Bridge construction would require the use of large heavy equipment and large amounts of construction material that would require the use of large laydown areas for construction staging.
Uvas Park Drive Parking Area: The temporary event parking area between Uvas Park Drive and the Valley Water levee that was formally used when the annual Gilroy Garlic Festival was held at Christmas Hill Park would be utilized as a construction access and laydown area for the Project. It is anticipated that this staging area would be needed for approximately 30 months.
On the west side of the creek, engineers envision construction access is from the following points:
Christmas Hill Park: Construction access would be required through Christmas Hill Park, for construction of the bridge foundations, support columns, and erection of falsework for the construction of the bridge structure. It is anticipated that a portion of Christmas Hill Park south of the amphitheater would be temporarily closed for approximately 18 months to provide construction access.
“Old Road” on west side of 10th St, north De Anza Place: To provide a route for the delivery of “smaller things”, construction access will be provided from the existing “stub” of 10th Street, descending down the old existing asphalt road on the west side of 10th St.
8.4 p. 261 of 1163
5 To provide overhead clearance, engineers envision trees will need to be trimmed and perhaps the old roadway resurfaced. While this access is not likely feasible for large trucks and trailers, it provides an efficient route for smaller equipment along with material and personnel from the 10th Street corridor
Paved Trail: Intersection of De Anza Place / Lopez Way: Constructed as part of the Glen Loma Development, a paved trail now exists at the intersection of De Anza Place / Lopez Way, descending from the retention basin to the west bank of Uvas Creek.
Engineers envision that this trail could be reconfigured to accommodate construction traffic should it be needed. At the end of the project, the trail may need to be repaved / repaired to restore it to pre-construction condition.
TASK 1: SCOPING
David J. Powers & Associates (DJP&A) will attend up to two project team meetings and two site visits to provide the design team with information regarding environmental issues and constraints.
TASK 2: NEPA COMPLIANCE
Since the project will utilize federal funds, compliance with the National Environmental Policy Act (NEPA) and related federal statutes will be required. DJP&A will undertake the required studies, following the Caltrans Office of Local Assistance procedures and utilizing the formats published on the Caltrans Standard Environmental Reference (SER) website.
DJP&A will complete Preliminary Environmental Study (PES) forms and attachments and attend the Caltrans field review meeting. Following the field review, Caltrans will determine the level of environmental review necessary, and the technical studies required to be prepared. This scope assumes the project will qualify for a Categorical Exclusion (CE) under NEPA and the following technical studies and memos will be required. All of the following technical studies and memos will be prepared by DJP&A or a subconsultant under contract to DJP&A, except for the Location Hydraulic Study, which will be prepared by the project engineer and provided to DJP&A.
• Air Quality and Greenhouse Gas Assessment
• Noise Study Report
• Archaeological Resources Report
• Historic Properties Survey Report
• Natural Environment Study
• Biological Assessment
• Traffic Memo
• Location Hydraulic Study
• Initial Site Assessment
• Visual Impact Assessment (Minor)
8.4 p. 262 of 1163
6 • Equipment Staging Memo
• Water Quality Memo
• Right-of-Way/Community Impacts Memo
• Section 4(f) Concurrence Letter
The scopes for the studies to be prepared by DJP&A or our subconsultants are described below.
Task 2a: Air Quality and Greenhouse Gas Assessment
This task will be undertaken by Illingworth & Rodkin (I&R), a subconsultant of DJP&A that specializes in air quality analyses that comply with Caltrans standards. The air quality and greenhouse gas assessment will include the following components:
Setting - Develop baseline conditions that describe meteorology/climate of the project area, existing air quality conditions, federal, state and local air quality rules and regulations, and approved air quality plans. Air pollutants and their effect on human health will also be described.
Construction Air Quality Impacts - A construction emissions assessment will be conducted for all elements of the project, including the bicycle and pedestrian portions.
Construction emissions will be quantified using the Sacramento AQMD Road Construction Emissions Model (Version 8.1.0) and will include analysis of constructionperiod GHG emissions (CO2, CH4, N2O, and CO2e. Mitigation and minimization methods will be discussed to reduce the project’s emissions
Regional Air Quality Impacts - Identify SIP conformity requirements for the project and develop conformity language suitable for the air quality analysis. This will include consultation with MTC, Santa Clara Valley Transportation Authority, and Caltrans regarding project inclusion in the latest transportation plans and programs.
CO Hot Spot Analysis - A qualitative discussion will be included to address CO since the project has now been designated attainment by U.S. EPA.
Assess Project Air Pollutant and GHG Emissions - Use CT-EMFAC along with traffic data to predict daily air pollutant and annual GHG emissions. Project and no project emissions will be computed and evaluated based on current State and local guidance. The effect of transportation control measures in reducing project emissions will be described. Note that special traffic inputs are required, and Caltrans should be consulted to confirm these inputs.
Mobile Source Air Toxics - Use the FHWA guidance procedures to address MSAT emissions from the project. This task will involve the computation of MSAT emissions using the latest version of the CT-EMFAC model.
8.4 p. 263 of 1163
7 PM2.5 Analysis - PM2.5 will be analyzed based on the latest FHWA Guidance. A determination of the project’s designation as to whether it will be considered a project of air quality concern (POAQC) or not will be completed through consultation with statewide Air Quality task force. If the project is found not to be a POAQC, then a qualitative analysis will be conducted following the guidance outlined in the FHWA PM2.5/PM10 Guidance.
Health Risk Assessment - Use construction and roadway toxic air contaminant and PM2.5 emissions with the U.S. EPA AERMOD model to assess local health risk impacts per BAAQMD guidance in their CEQA Air Quality Guidelines.
Deliverables - An air quality technical report will be prepared using Caltrans format and will address the FHWA/Caltrans requirements.
Task 2b: Noise Study Report
A traffic noise study will be conducted in accordance with the Traffic Noise Analysis Protocol developed by Caltrans. The protocol requires identification of noise impacts at different types of activity areas affected by the project. The noise study will address both the State and Federal noise abatement criteria. This task will be undertaken by Illingworth & Rodkin (I&R), a subconsultant of DJP&A that specializes in noise analyses that comply with Caltrans standards. The noise study report includes the following components:
Existing Ambient Noise Environment - Ambient noise measurements were completed in April 2017 along the project corridor. These measurements included two long-term and six short-term measurements. On the east side of Uvas Creek, no major construction projects have been completed since 2017 that will cause a substantial increase in noise levels. To the west of the creek, residential construction, which was on-going at the time of the measurements in 2017 has continued; however, 10th Street does not yet extend to Santa Teresa Boulevard. Therefore, only local traffic accessing the residential development would be expected. Considering construction vehicles were the main noise source in 2017, the traffic noise will not be substantially different. New noise measurements will not be necessary.
Model Noise Levels - FHWA’s TNM will be used to predict noise levels with and without the project. Traffic noise modeling will be conducted in accordance with the Caltrans recommended procedures.1 The previously developed models will be updated to reflect the updated project plans and traffic conditions. These updated future model will be used to predict future noise levels.
Noise Barrier Analysis - Where noise impacts are identified, noise abatement will be considered for feasibility and reasonableness per Caltrans Noise Policy. A feasible noise barrier would achieve a minimum 5 dBA of noise reduction. A noise barrier must also provide a minimum 7 dBA of noise reduction at one receptor to meet the reasonableness design goal. Reasonableness of noise abatement/mitigation measures is not determined in the NSR; however, information that would assist the Project Engineer in determining
8.4 p. 264 of 1163
8 reasonableness would be provided. The reasonableness cost allowance of feasible noise barriers will be calculated based on procedures outlined in the Caltrans Traffic Noise Analysis Protocol.
Construction Noise and Vibration - Noise and vibration levels at nearby sensitive land uses will be calculated for each phase of construction. Construction noise will be predicted using methods outlined in the Protocol that utilize the Roadway Construction Noise Model (RCNM). Construction vibration levels would be calculated based on published data. The calculations would depend on the availability of construction plans and schedules.
Hydroacoustic Assessment - If determined to be necessary, a hydroacoustic assessment will be prepared by I&R to assess impacts to fish species in Uvas Creek potentially impacted by noise. Preparation of the hydroacoustic analysis includes quantifying existing hydroacoustic levels in the project area and predicting sound levels that would be generated in the water during pile driving.
Deliverables - A Noise Study Report, in Caltrans format, would be prepared and submitted to local agencies and Caltrans.
Task 2c: Cultural Resources Studies
Archaeological Survey Report (ASR)
This task will be undertaken by Albion Environmental, Inc., a subconsultant of DJP&A that specializes in cultural resource assessment that comply with Caltrans standards and Section 106 of the National Historic Preservation Act.
Area of Potential Effect (APE) Map - Albion will work with the City of Gilroy, Caltrans, and David J. Powers & Associates to define archaeological and architectural APEs for the project. David J. Powers will submit draft APE maps to Caltrans for approval prior to the initiation of the archaeological survey.
Archival Research - A record search will be requested from the Northwest Information Center, Sonoma State University, Rohnert Park, to include the APE and a 1/2-mile radius around it. Albion will also gather archival maps of the area and consult historic aerial photography archived by the library at the University of California to locate any structures or other features on the landscape within the APE. Additionally, environmental factors such as surface slope, distance to known perennial water sources, and the distance to perennial stream confluences, combined with relevant data from soil surveys and Quaternary geology maps to estimate the age and extent of the deposits exposed at the surface within the APE, and provide guidance for determining the general sensitivity for buried archaeological sites to exist within the APE.
8.4 p. 265 of 1163
9 Native American Consultation - A working relationship with the Native American community and individual Tribal representatives is essential to the success of the cultural resource inventory effort, and ultimately project success. As part of this project, the Tribes and individuals identified by the NAHC will be contacted by Albion to inform them about the Project, ascertain Tribal interests and information, and open dialog to elicit and consider their concerns about the treatment of precolonial archaeological materials, particularly ancestral remains and grave goods.
Archaeological Survey - An on-foot archaeological survey of the project area will be undertaken. All open areas (not covered by asphalt and concrete) will be inspected for such cultural evidence as historic artifacts and features and prehistoric indicators like midden soil, flaked lithics, groundstone, and shell. Any necessary standard DPR 523 forms (Primary Record and Archaeological Site Record) will be completed. The ASR will be submitted to Caltrans for review, and revisions will be made as necessary.
Deliverables - Draft and Final ASRs. An ASR for submission by the City of Gilroy to Caltrans will be prepared following the guidelines in the Caltrans SER, Volume 2, Exhibit
5.1. It will include a summary of the records search results, Native American consultations, brief historic and ethnographic background sections, description of field methodology, results of the survey, and necessary maps. It will also include any site records prepared for the project area.
Historic Properties Survey Report (HPSR)
The HPSR is a summary report that includes the final draft of the APE map, discusses documentation efforts, the findings of the ASR (and, if necessary, an Extended Phase I ASR), and summarizes the National Register eligibility conclusions for cultural resources.
The document also provides evidence of coordination with Native American groups, local government, and other interested persons and organizations, and requests the concurrence of the State Office of Historic Preservation if needed. The final draft of the ASR will be attached as an appendix. The HPSR and appendices will be submitted to Caltrans PQS for review and revisions will be made as necessary.
Deliverables - Draft and Final HPSRs and appendices for submission to Caltrans will be prepared, following the guidelines in the Caltrans SER, Volume 2, Exhibit 2.6.
AB 52 Consultation
Notice Letters - After obtaining a list of Native American stakeholders from the City, Albion will draft the formal AB 52 Notice Letters and send them to the City; the City will mail the letters on official City letterhead. This Notice to Tribes will include a brief project description, a map of the project location, lead agency contact information, and a statement that the Tribe has 30 days to request consultation. It is best practice to follow up Formal Consultation Notices with emails and phone calls. At the City’s request, Albion will follow up with the Tribes via email and/or phone.
8.4 p. 266 of 1163
10 Consultation Meetings - Within 30 days of receiving a Tribe’s written request for consultation, Albion will assist the City in the consultation process. As part of the consultation process, Tribes may request meetings to discuss Tribal Cultural Resources, project alternatives, significant effects, and the development of mitigation measures to avoid or mitigate a significant effect. Albion will facilitate these meetings, documenting the discussions between the City and the Tribes.
Deliverables - After consultation ends, Albion will prepare a report documenting all communications with the Tribes, discussing if any potential Tribal Cultural Resources were identified during the consultation process, documenting any additional concerns that the Tribal members may have with regards to the proposed work, and documenting any measures developed to avoid or mitigate a significant effect on a TCR to be included in the environmental document. The report will follow AB 52 requirements and ensure that any confidential information submitted by a California Native American Tribe during the consultation process will not be included in the publicly available environmental document or otherwise disclosed.
Task 2d: Biological Resources Studies
This task will be undertaken by H.T. Harvey & Associates (HTH), a subconsultant of DJP&A that specializes in biological resource assessments that comply with Caltrans standards and the Endangered Species Act.
Natural Environment Study (NES)
HTH will prepare an NES per Caltrans Office of Local Assistance procedures and the latest template (currently dated June 2020) on the Caltrans Standard Environmental Reference (SER) website. NES preparation will involve the following tasks:
Background Review – HTH ecologists will review the most recent project plans, biological reports prepared for other projects in the project vicinity, the Santa Clara Valley Habitat Plan, and additional sources of information for any updates on applicable regulations, special-status species listing designations, or occurrences of special-status species in the project vicinity. These sources may include U.S. Geological Survey quadrangle maps, U.S. Fish and Wildlife Service (USFWS) National Wetland Inventory Maps, the California Natural Diversity Database (CNDDB), other technical literature related to the biotic resources of the project vicinity, regional planning documents (such as General Plan policies), species data compiled by the California Native Plant Society (CNPS) or other public interest groups, and resource agency data.
Field Surveys - A plant/wetlands ecologist and a wildlife ecologist will conduct a single reconnaissance-level field survey of the project site to put into context the information generated in during the Background Review; to identify any changes in existing biological resources conditions that have occurred since our previous site visits in May 2017; and to assess and map biological resources in any limited portions of the project area that
8.4 p. 267 of 1163
11 were not covered previously. These ecologists will describe and map any changes in biotic communities/land cover types, boundaries of potentially sensitive or regulated habitats, or habitat for or evidence of special-status species that have occurred since their previous work on the project site or that need to be added to our previous work based on slight changes in the extent of the project. The habitat mapping will be adequate to identify the boundaries of any land cover types for CEQA/NEPA assessment and VHP permitting.
During the field visit, the wildlife ecologist will conduct habitat surveys for the least Bell’s vireo and tricolored blackbird per VHP Conditions 16 and 17, respectively. Per VHP requirements, these surveys will cover the project area plus a 250-foot radius around the project area. The 2017 field surveys determined that no suitable breeding habitat for these species was present in or adjacent to the project area, but these habitat surveys will be updated to ensure that the VHP application is based on current data. No other speciesspecific surveys are proposed at this time.
Prepare NES - The data collected during our background review and field surveys will be used as the basis for preparing an NES per current Caltrans guidelines. Graphics will be produced to portray the site vicinity, habitat types, CNDDB records for special-status species, impact areas, and, if appropriate, proposed mitigation sites.
Deliverables - The NES will be submitted for review and comment. This task also includes time to respond to comments from Caltrans, assuming the comments do not require major revisions.
Biological Assessment
Although the project will be covered by the VHP, federally listed species regulated by NMFS are not covered by the VHP. We understand that NMFS, USACE, and the Santa Clara Valley Habitat Agency (SCVHA) are working on a Programmatic Biological Opinion (PBO) that would provide FESA Section 7 incidental take coverage for VHP-covered projects that meet certain criteria. However, that PBO has not yet been finalized, and some FESA Section 7 consultation between Caltrans (acting as the lead federal agency, on behalf of the Federal Highway Administration) and the USFWS and NMFS will be necessary for the project.
HTH will prepare two documents to facilitate FESA consultation for the project:
• A Biological Assessment (BA), in accordance with the latest Caltrans procedures and template, describing the project’s impacts on the South-Central California Coast steelhead. This federally listed (threatened) species is known to occur in the reach of Uvas Creek where the project is located. Once finalized, the BA would be provided to NMFS by Caltrans to initiate formal consultation (if any take of steelhead will occur) or informal consultation (if avoidance and minimization measures are adequate to avoid take) with NMFS under Section 7 of FESA. • A memo, following the template developed by the USFWS and SCVHA, documenting the project’s potential impacts to USFWS-regulated, federally listed
8.4 p. 268 of 1163
12 species such as the California tiger salamander and California red-legged frog, and providing information on the project’s compliance with the VHP. Once finalized, this memo would be provided by the City of Gilroy to the SCVHA and the USFWS.
Deliverables - These documents will be submitted to the City of Gilroy and Caltrans for review and comment.
Valley Habitat Plan Permit Application
HTH will prepare all documents required to obtain a VHP permit. All field surveys required by the VHP to inform the permit application will be completed as described above. Using this information, the following application materials will be prepared:
• Coverage Screening Form
• Reporting Form for Public Projects, including fee calculations and all required attachments
Deliverables - These permit application materials will be submitted to the City of Gilroy for review and comment.
Task 2e: Initial Site Assessment (ISA)
This task will be undertaken by Cornerstone Earth Group, a subconsultant of DJP&A that specializes in Initial Site Assessments that comply with Caltrans standards.
Regulatory Agency Database Review - Cornerstone will acquire a report from a firm specializing in the search of readily available environmental agency databases to help establish the presence and type of contamination incidents reported in the site vicinity.
The database search report will follow general ASTM E 1527-13 requirements.
Cornerstone will review the results of this database search and attempt to identify those facilities that appear likely to have significantly impacted the site based on inferred groundwater flow direction and proximity.
Agency File Review - To obtain commonly known and reasonably ascertainable information on on-site hazardous materials releases readily identified as being open cases under the County Local Oversight Program (LOP) and/or identified as being open cases on the Geotraker and/or Envirostor databases, readily available files will be reviewed online.
Site History Review - To help develop a history of the previous uses of the site and adjacent area, the study will include a review of the following sources, if they are readily available:
8.4 p. 269 of 1163
13 • Aerial photographs
• Topographic maps
• City directories
• Sanborn fire insurance maps
ISA Checklist Form - Cornerstone will complete the standard Caltrans ISA Hazardous Waste Checklist.
Site Hydrogeology - Based on readily available public information (California 's Geo Tracker database and USGS topographic maps) and our local experience, we will prepare a brief summary of anticipated site hydrogeology, including approximate depth to ground water and flow direction. This information is useful in evaluating the potential for nearby hazardous material releases, if any, to significantly affect site ground water quality.
Site Reconnaissance - If reasonably safe, Cornerstone will make one site visit to observe existing conditions from public right-of-way and note readily observable indicators of past or present activities that may have or could, in their opinion, cause significant site contamination. In addition, Cornerstone will collect readily available information on current site usage. Cornerstone will also conduct a brief drive-by survey of the adjacent properties to note the current land use and, to the extent readily observable, note facilities that appear likely to use, handle or store significant quantities of hazardous materials. This reconnaissance will only be made from public roadways.
Deliverable - Cornerstone will prepare an ISA for the site presenting the results of the study, our conclusions, and recommendations. The report will include a vicinity map, site plan, and selected copies of the records obtained and reviewed. The conclusions and recommendations presented in the report will be based on our interpretation of the readily available information reviewed and the conditions observed. Cornerstone will summarize the recognized environmental conditions, if any, derived from the readily observed site conditions and reasonable ascertainable information. Cornerstone will attempt to identify and comment on significant data gaps that affect the ability to identify recognized environmental conditions.
Task 2f: Visual Impact Analysis (Minor)
This task will be undertaken by Alta Planning + Design, a subconsultant of DJP&A that specializes in visual impact analyses that comply with Caltrans standards.
Visual Impact Analysis - Alta will prepare a Visual Impact Analysis (VIA) following the Caltrans Minor VIA template. The VIA will include discussion and analysis of two key views of the proposed project. Alta will develop up to two (2) photo simulations, one for each key view. The photo simulations will be based on the project description and engineering plans.
8.4 p. 270 of 1163
14 Deliverables – The VIA will be submitted to the City of Gilroy and Caltrans for review and comment.
Task 2g: Equipment Staging Memo
DJP&A will prepare a short memo describing the location(s) where equipment and materials will be staged during the construction phase of the project. The location(s) for staging will be provided to DJP&A by the design team or the City.
Task 2h: Water Quality Memo
DJP&A will prepare a short memo describing the measures to be implemented by the project in compliance with current regulations to prevent or reduce water quality impacts during construction and operation. This information will be provided to DJP&A by the design team or the City.
Task 2i: Traffic Memo
DJP&A will prepare a short memo describing the traffic handling and staging plan to be implemented during project construction. This information will be provided to DJP&A by the design team or the City.
Task 2j: Right-of-Way/Community Impacts Memo
DJP&A will prepare a short memo describing the permanent and temporary right-of-way impacts of the proposed project. The project is currently expected to require a construction access easement through existing private open space located at APN 808- 19-020 (Private Open Space). The memo will also describe any impacts to the community, but such impacts are anticipated to be minimal given the nature of the project.
Task 2k: Section 4(f) Concurrence Letter
DJP&A will assist the City in complying with the Section 4(f) process, a federal requirement that applies to transportation projects that use land from a public park. This scope assumes that the project will require a construction easement from through Christmas Hill Park and temporary closure of the Uvas Creek Trail, which would trigger the 4(f) process. It is assumed that the impact on the Park would be both minor and temporary under Section 4(f) and, therefore, Caltrans will require only a “letter of concurrence” from the City of Gilroy Recreation Division to this effect. DJP&A will undertake the coordination needed for this process and, if requested, will assist the City by drafting a letter on behalf of the Recreation Division.
8.4 p. 271 of 1163
15 Task 2l: Caltrans Environmental Compliance Report
Prior to the issuance of a CE under NEPA, Caltrans requires that an Environmental Compliance Report (ECR) be prepared. DJP&A will prepare the ECR on behalf of Caltrans and transmit the ECR to Caltrans.
TASK 3: INITIAL STUDY/MITIGATED NEGATIVE DECLARATION
Task 3a: Initial Study/Mitigated Negative Declaration
DJP&A will prepare an Initial Study/Mitigated Negative Declaration (IS/MND) in compliance with the California Environmental Quality Act (CEQA). The IS/MND will utilize the format required by the City at the time it is prepared. DJP&A will respond to comments received by the City upon completion of the circulation of the Initial Study and will attend one meeting before the Gilroy Planning Commission and one meeting before the Gilroy City Council. DJP&A will also prepare the Mitigation Monitoring and Reporting Program.
This scope assumes the technical studies and memos prepared to complete the NEPA analysis will be used to complete the CEQA analysis. No additional studies will be prepared for the CEQA analysis, except for the transportation and traffic operations analysis described below.
Task 3b: Transportation and Traffic Operations Analysis This task will be undertaken by Hexagon Transportation Consultants, a subconsultant of DJP&A with an office in Gilroy that specializes in preparing transportation analyses.
Vehicle Miles Travelled (VMT) Analysis
Historically, traffic impact analysis has focused on the identification of traffic impacts and potential roadway improvements based on delays to relieve traffic congestion that may result due to proposed/planned growth. However, with the adoption of SB 743 legislation, public agencies are required (effective July 2020) to base transportation impacts on VMT rather than level of service that typically uses delay as its metric. The change in measurement is intended to better evaluate the effects on the state’s goals for climate change and multi-modal transportation. Therefore, a VMT evaluation is included as part of this proposed scope.
The CEQA transportation analysis for the project will consist of both a project-level and General Plan VMT analysis using the City’s TDF model. The transportation analysis will be based on City of Gilroy transportation policies and supplemented with guidelines and recommendations from the Governor’s Office of Planning and Research (OPR) Technical Advisory on Evaluating Transportation Impacts in CEQA, December 2018.
8.4 p. 272 of 1163
16 VMT Evaluation - Per OPR’s guidance for the evaluation of transportation improvement projects, the VMT evaluation will consider the effect of the proposed Tenth Street extension and bridge project on all major roadways within a general sphere of influence.
Hexagon will use the City’s TDF model developed for the recently completed 2040 General Plan Updated study to develop existing (baseline) VMT and the change in VMT with the proposed project. Per OPR’s recommendations for the evaluation of transportation improvement projects, the determination of significant VMT impact will be based on the extent to which the project causes a significant increase in VMT on the affected roadways.
Description of CEQA Impacts and Recommendations – If the results of the VMT evaluation determine that the project would increase VMT, recommendations will be formulated that identify the locations and potential improvements or modifications necessary to mitigate impacts. Mitigation could include improvements to the transit, bicycle, and pedestrian infrastructure.
Local Transportation Analysis
The traffic operations analysis will consist of a near-term and long-term (General Plan) evaluation of the effects of the roadway network adjustments that are proposed as part of the Tenth Street Extension project on other surrounding roadways and intersections that would be most affected by the project. The supplemental operations analysis will include level of service analysis at a limited number of intersections. However, the determination of project impacts per CEQA requirements will be based solely on VMT metrics. Peak hour operations at existing intersections along the Tenth Street corridor between Uvas Parkway and Princevalle Street as well as the future intersections/roundabout along Tenth Street will be evaluated. Average daily traffic (ADT) will be used to evaluate the effects of the new roadway extension on surrounding roadways. This proposal includes analysis of the following ten existing/future intersections and 14 roadway segments:
Study Intersections
1. Miller Avenue and Luchessa Avenue
2. Miller Avenue and Uvas Park Drive
3. Orchard Drive and Tenth Street
4. Valley Forge Drive and Tenth Street
5. Princevalle Street and Tenth Street
6. Tenth Street/Miller Avenue and Santa Teresa Boulevard
7. Uvas Parkway and Tenth Street
8. De Anza Street and Tenth Street
9. Charles Lux Drive and Tenth Street
10. Luchessa Avenue and Tenth Street
8.4 p. 273 of 1163
17 Study Roadway Segments
1. Tenth Street, between Church Street and Monterey Road
2. Tenth Street, between Hanna Street and Glenview Drive
3. Tenth Street, between Valley Forge Drive and Princevalle Street
4. Uvas Parkway, between Tenth Street and Miller Avenue
5. Uvas Park Drive, between Miller Avenue and Wren Avenue
6. Miller Avenue, between Christmas Park and Luchessa Avenue
7. Miller Avenue, between Luchessa Avenue and Santa Teresa Boulevard
8. Miller Avenue, between Yorktown Drive and Uvas Parkway
9. Luchessa Avenue, between Hyde Park Drive and Church Street
10. Luchessa Avenue, between Princevalle Street and Thomas Road
11. Luchessa Avenue, between Thomas Road and Village Place
12. Santa Teresa Boulevard, between Miller Avenue and Thomas Road
13. Thomas Road, between Luchessa Avenue and Oak Brook Way
14. Santa Teresa Boulevard, between Ballybunion Drive and Miller Avenue Scenarios to be Evaluated - The study intersections and roadway segments will be evaluated under the following scenarios:
Existing Conditions: Traffic volumes representing Year 2021 traffic conditions. New peak hour intersection traffic counts will be completed at each of the existing study intersections along with 24-hour directional counts along the roadway segments.
Year 2040 General Plan No Project Conditions: General Plan forecasted traffic volumes and planned transportation network improvements, as evaluated in the 2040 General Plan Update traffic study, without the Tenth Street extension and bridge project.
Year 2040 General Plan Project Conditions: General Plan forecasted traffic volumes and planned transportation network improvements, as evaluated in the 2040 General Plan Update traffic study, including the Tenth Street extension and bridge project.
Construction Roadway Closures - The project may require the temporary closure of Uvas Parkway between Miller Avenue and 10th Street during construction. A qualitative evaluation of the effect of the temporary construction roadway closures will be completed.
The evaluation will consist of the identification of changes in traffic patterns due to the roadway closures and locations where temporary traffic control/roadway adjustment may be necessary. The effects of construction activities near the High School drop-off/pick-up also will be qualitatively evaluated.
Deliverables - Hexagon will prepare a transportation analysis report that documents the project improvement assumptions, analysis methodologies, and findings.
8.4 p. 274 of 1163
18 TASK 4: NOTICES
DJP&A will prepare the Notice of Intent to adopt a Mitigated Negative Declaration and Notice of Completion (NOC) and OPR summary form for submission of the IS/MND to the State Clearinghouse.
Assumptions
The following assumptions were made in preparation of this scope of work:
• The City of Gilroy will be the CEQA Lead Agency.
• The City will undertake mailings, prepare public/newspaper notices. • The City will file the Notice of Intent at the County Clerk and pay the filing fee. • The City will prepare and file the CEQA Notice of Determination at the State Clearinghouse and County Clerk.
• The City will pay the Notice of Determination filing fee to the County Clerk. • If indications of cultural resources are found during preparation of the ASR, Caltrans may require subsurface testing and preparation of an Extended Phase I Archaeological Survey Report (XPI). This scope does not include preparation of an XPI.
• If project right-of-way takes occur on parcels containing structures, Caltrans may require preparation of an Historic Resources Evaluation Report (HRER) for structures older than 50 years on affected parcels. This scope does not include preparation of an HRER.
• This scope includes follow-up communication with up to ten (10) Tribes during the consultation process.
• This scope includes up to five (5) virtual tribal consultation meetings. • The project falls within the Permit Area of the VHP and is considered a Covered Activity under the VHP which is defined as “a project conducted by, or is subject to the jurisdiction of, one of the Permittees” (which includes the City of Gilroy) and falls into the broader category of Urban Development.
• This scope does not include a detailed wetland delineation report adequate for project permitting or conducting a site visit with the U.S. Army Corps of Engineers (USACE) to obtain verification of jurisdictional boundaries. • This scope does not include development of City-specific CEQA VMT impact thresholds.
• This scope does not include obtaining regulatory agency permits (e.g., RWQCB Section 401, USACE Section 404, and CDFW Section 1600 permits). • This scope does not include preparation of habitat restoration plans. • The project will not require permanent park ROW.
• This scope does not include a creek diversion analysis. • A Location Hydraulic Study will be prepared by the project engineer.
Date of Latest Revision: July 8, 2022
8.4 p. 275 of 1163
-1- 4835-2267-0361v1
LAC\04706083
EXHIBIT “C”
MILESTONE SCHEDULE
N/A
8.4 p. 276 of 1163
4835-2267-0361v1
LAC\04706083
EXHIBIT “D”
PAYMENT SCHEDULE
Attached.
8.4 p. 277 of 1163
10th Street/Uvas Creek Budget
David J. Powers & Associates, Inc.
Budget for NEPA and CEQA Compliance
ODC's
$ 352 per hour $ 268 $ 191 per hour $ 151 per hour $ 101 per hour Sub- & Permit Task Hours Amount Hours Amount Hours Amount Hours Amount Hours Amount Consultant Fees Total NEPA Compliance
Natural Environmental Study 1 $ 352 1 $ 268 6 $ 1,148 $ - $ - $ 32,735 $ 34,504 Biological Assessment 1 $ 352 1 $ 268 4 $ 765 $ - $ - $ 16,693 $ 18,079 Equipment Staging Memo 1 $ 352 1 $ 268 6 $ 1,148 $ - $ - $ 1,769 Air Quality and Greenhouse Gas Analysis 1 $ 352 1 $ 268 4 $ 765 $ - $ - $ 25,215 $ 26,601 Archaeological Survey Report 1 $ 352 1 $ 268 4 $ 765 $ - $ - $ 12,780 $ 14,166 Historic Properties Survey Report 1 $ 352 1 $ 268 4 $ 765 $ - $ - $ 5,281 $ 6,667 Water Quality Memo 1 $ 352 1 $ 268 4 $ 765 16 $ 2,416 $ - $ 3,802 Initial Site Assessment 1 $ 352 1 $ 268 8 $ 1,530 $ - $ - $ 4,860 $ 7,011 Location Hydraulic Study 1 $ 352 1 $ 268 4 $ 765 $ - $ - $ 1,386 Right-of-Way/Community Memo 1 $ 352 1 $ 268 4 $ 765 10 $ 1,510 $ - $ 2,896 Noise Study Report 1 $ 352 1 $ 268 4 $ 765 $ - $ - $ 24,579 $ 25,965 Visual Impact Assessment (Minor) 1 $ 352 1 $ 268 4 $ 765 $ - $ - $ 21,014 $ 22,400 Section 4(f) Concurrence Letter 1 $ 352 1 $ 268 8 $ 1,530 $ - $ - $ 2,151 Traffic Memo 1 $ 352 1 $ 268 8 $ 1,530 $ 2,151
Environmental Compliance Report 1 $ 352 1 $ 268 8 $ 1,530 $ - $ - $ 2,151 Preliminary Environmental Study 1 $ 352 1 $ 268 10 $ 1,913 20 $ 3,020 $ - $ 5,554 NEPA CE 1 $ 352 1 $ 268 4 $ 765 $ - $ - $ 1,386
CEQA Compliance
Project Description 1 $ 352 1 $ 268 4 $ 765 4 $ 604 $ - $ 1,990 1st Admin Draft IS 1 $ 352 4 $ 1,074 20 $ 3,826 30 $ 4,530 20 $ 2,014 $ 150 $ 11,946 2nd Admin Draft IS 1 $ 352 1 $ 268 10 $ 1,913 8 $ 1,208 4 $ 403 $ 50 $ 4,195 Screencheck $ - 1 $ 268 8 $ 1,530 6 $ 906 4 $ 403 $ 1,500 $ 4,608 Response to Comments 1 $ 352 1 $ 268 10 $ 1,913 4 $ 604 $ - $ 50 $ 3,188 Native American Consultation $ - 1 $ 268 2 $ 383 $ - $ - $ 6,168 $ 6,819 Transportation Analysis 1 $ 352 5 $ 1,342 4 $ 765 $ - $ - $ 71,200 $ 73,660 CEQA Notices $ - 1 $ 268 4 $ 765 12 $ 1,812 $ - $ 2,846 Permits $ - $ -
VHP Reporting Form 1 $ 352 $ 4 $ 1,074 4 $ 765 $ - $ - $ 11,208 $ 13,399 Project Management $ - $ -
Project Management 10 $ 3,524 $ 10 $ 2,685 30 $ 5,739 15 $ 3,111 $ 15,058 Meetings $ - $ -
PDT Meetings (Assume 10) 20 $ 7,047 $ 20 $ 5,369 40 $ 7,652 $ - $ - $ 100 $ 20,168 Public/Community Mtgs 15 $ 5,286 $ 15 $ 4,027 15 $ 2,869 $ - $ - $ 150 $ 12,332 TOTALS 68 $ 23,961 81 $ 21,746 245 $ 46,866 125 $ 16,611 28 $ 2,819 $ 234,844 $ 2,000 $ 348,847 Optional Tasks
Hydroacoustics Analysis $ - $ - $ - $ - $ 11,222 $ 11,222 TOTALS WITH OPTIONAL TASKS 68 $ 23,961 81 $ 21,746 245 $ 46,866 125 $ 16,611 28 $ 2,819 $ 246,066 $ 2,000 $ 360,069 Date of Latest Revision: March 27, 2023
Senior Principal PM Principal PM Project Manager Assoc. PM Graphic Artist
8.4 p. 278 of 1163
RESOLUTION NO. 2023-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GILROY AMENDING THE BUDGET FOR THE CITY OF
GILROY FOR 2022-2023 AND APPROPRIATING
PROPOSED EXPENDITURE AMENDMENTS
WHEREAS, the City Administrator prepared and submitted to the City Council a budget for the City of Gilroy for Fiscal Years 2021-2022 and 2022-2023, and the City Council carefully examined, considered, and adopted the same on June 7, 2021; and WHEREAS, City Staff has prepared and submitted to the City Council proposed amendments to said budget for Fiscal Year 2022-2023 for the City of Gilroy in the staff report dated May 1, 2023, for the award of a contract to David J. Powers & Associates, Inc. for 10th Street Bridge environmental compliance services, project M 16-10.
NOW, THEREFORE, BE IT RESOLVED THAT the appropriations for Fiscal Year 2022-2023 for the Traffic Impact Fee Fund (fund 425) shall be increased by $396,076.
PASSED AND ADOPTED this 1st day of May 2023 by the following roll call vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
APPROVED:
Marie Blankley, Mayor
ATTEST:
_______________________
Thai Nam Pham, City Clerk
8.4 p. 279 of 1163
City of Gilroy
STAFF REPORT
Agenda Item Title: Emergency Shelters Zoning Amendment
Meeting Date: May 1, 2023
From: Jimmy Forbis, City Administrator
Department: Community Development
Submitted By: Sharon Goei, Community Development Director Prepared By: Cindy McCormick, Customer Service Manager
STRATEGIC PLAN GOALS Promote Safe Affordable Housing for All
RECOMMENDATION
Staff has analyzed the proposed project and recommends that the City Council:
a) Based on its independent analysis, find that approval of the Emergency Shelters Zoning Amendment is exempt from review under the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15061(b)(3) in that it can be seen with certainty that the Emergency Shelters Zoning Amendment would not result in a significant environmental effect, and none of the circumstances set forth in CEQA Guidelines Section 15300.2 applies; b) Motion to read the ordinance by title only and waive further reading; and c) Introduce an Ordinance of the City Council of the City of Gilroy approving amendments to the Gilroy City Code, Chapter 30 (Zoning), Article XLI Section
30.41.32 (Specific Provisions—Emergency Shelters), Article II Section 30.2.20 (Definitions), and Article XI Section 30.11.10C (Residential Use Table) regarding Emergency Shelters (Z 23-03).
EXECUTIVE SUMMARY
Government Code Section 65583 requires that the housing element identify adequate sites for housing, including emergency shelters, and further regulates development standards for emergency shelters. Assembly Bill 2339 amends Sections 65583 and 65863 of the Government Code, adding specificity on how jurisdictions define and
9.1 p. 280 of 1163
Emergency Shelters Zoning Amendment
City of Gilroy City Council Page 2 of 6 May 1, 2023 1
0 regulate emergency shelters and plan for emergency shelters in their housing elements.
The proposed amendment to Gilroy City Code sections 30.41.32, 30.2.20, and
30.11.10C would bring the Gilroy City Code into conformance with State law.
BACKGROUND
On January 27, 2023, the City of Gilroy received comments from the California Department of Housing and Community Development (HCD) regarding the draft Gilroy 2023-2031 Housing Element. Among other comments, HCD staff noted that the draft Housing Element could not be found in compliance with State law until the City’s zoning regulations regarding emergency shelters are modified.
Existing City Code: The Gilroy City Code Chapter 30 (Zoning), Article XLI Section
30.41.32 (Specific provisions—Emergency shelters), Article II. 30.2.20 (Definitions), and Article XI Section 30.11.10(c) (Residential use table) currently regulate emergency shelters within the city. Since adopting these regulations, State legislation has modified how cities and counties regulate emergency shelters.
Environmental Assessment: The City of Gilroy Planning Division has determined that there is no substantial evidence that the proposed Zoning Amendment (“Project”) would have a significant effect on the environment, and therefore the Project is exempt from the California Environmental Quality Act (“CEQA”). Pursuant to CEQA Guidelines Section 15061(B)(3), the Project is exempt from CEQA under the common-sense exemption that CEQA applies only to projects which have the potential to cause a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.
Planning Commission Review: On April 20, 2023, the Planning Commission considered the Draft Ordinance and recommended approval.
ANALYSIS
Chapter 654, Statutes of 2022 (AB 2339) was approved by the Governor and filed with the Secretary of State on September 28, 2022. AB 2339 amends Sections 65583 and 65863 of the Government Code; adding specificity on how jurisdictions regulate and plan for emergency shelters in their housing elements. AB 2339 expands the definition of “emergency shelters” to include other interim interventions, including but not limited to navigation centers, bridge housing, and respite or recuperative care. AB 2339 also requires jurisdictions to identify zoning designations including residential and mixed-use residential zones that allow emergency shelters as a permitted use without a conditional use or another discretionary permit.
9.1 p. 281 of 1163
Emergency Shelters Zoning Amendment
City of Gilroy City Council Page 3 of 6 May 1, 2023 1
0 Furthermore, pursuant to Government Code Section 65583, emergency shelters shall only be subject to the following written, objective standards:
The maximum number of beds or persons permitted to be served nightly by the facility.
Sufficient parking to accommodate all staff working in the emergency shelter, provided that the standards do not require more parking for emergency shelters than other residential or commercial uses within the same zone. The size and location of exterior and interior onsite waiting and client intake areas.
The provision of onsite management.
The proximity to other emergency shelters, provided that emergency shelters are not required to be more than 300 feet apart.
The length of stay.
Lighting.
Security during hours that the emergency shelter is in operation.
The following table provides a summary of the proposed amendments provided in the attached Ordinance.
Draft Ordinance Summary
On-Site Management and Security. This section was modified to remove the requirements for a management plan since the City no longer has discretionary approval through a conditional use permit. This section now requires on-site management and security during all hours the emergency shelter operates. The code did not previously require on-site security; however, a requirement for on-site security is permitted under State law.
Maximum Number of Beds. This section was modified to include more specificity, including information needed for a ministerial building permit application since the City can no longer require a conditional use permit.
Exterior and Interior Onsite Waiting and Client Intake Area. Subjective language such as “sufficient size” was removed from this section and replaced with provisions required under the California Building Code.
Parking. Parking requirements tied to the number of beds were removed since State law only allows the requirement of parking for staff. State caveats regarding consistency with parking for other residential or commercial uses within the same zone were also added.
Lighting. No changes were needed.
Length of Stay. This provision was carried over from the City’s current definition of an emergency shelter.
9.1 p. 282 of 1163
Emergency Shelters Zoning Amendment
City of Gilroy City Council Page 4 of 6 May 1, 2023 1
0 Proximity to Other Emergency Shelters. This new provision is allowed per State law.
Location. This new provision is needed to illustrate compliance with State law which requires identification of zoning designations that allow emergency shelters as permitted use without a conditional use or other discretionary permit.
Definitions (Section 30.2.20).
The definition of Emergency shelter was amended to include “other interim interventions, including, but not limited to, a navigation center, bridge housing, and respite or recuperative care.”
A new definition for Emergency bridge housing was added pursuant to Gov. Code sec. 8698(e). It means “any new or existing facilities, including, but not limited to, housing in temporary structures, including, but not limited to, emergency sleeping cabins consistent with the requirements of subdivision (h) of Section 8698.3 that are reserved for homeless persons and families, together with community support facilities, including, but not limited to, showers and bathrooms adequate to serve the anticipated number of residents all of which may be located on property leased or owned by a political subdivision. An emergency bridge housing community shall include supportive and self-sufficiency development services, have the ultimate goal of moving homeless persons to permanent housing as quickly as reasonably possible, and limit rents and service fees to an ability-to-pay formula reasonably consistent with the United States Department of Housing and Urban Development’s requirements for subsidized housing for low-income persons.”
A new definition for Navigation center was added pursuant to Health and Safety Code sec. 50216. It means “Housing First, low-barrier, service-enriched shelter focused on moving homeless individuals and families into permanent housing that provides temporary living facilities while case managers connect individuals experiencing homelessness to income, public benefits, health services, shelter, and housing.” Residential Use Table (Section 30.11.10C). This section was amended to allow emergency shelters by right in the R4 zoning district. Since the City has not yet adopted a “First Street Corridor mixed use” zoning designation, this code section references the adopted General Plan Mixed Use land use designation.
The following staff analysis demonstrates that the amendment carries out the general purpose of the Zoning Ordinance and applicable General Plan goals and policies.
General Plan Consistency: The proposed project is consistent with: 1) the Gilroy 2040 General Plan Land Use Goal LU 3 to provide a variety of housing types that offer choices for Gilroy residents and create complete, livable neighborhoods; 2) the Gilroy 2015-2023 Housing Element Goal H-1 (Housing Production) to provide adequate residential sites to accommodate projected housing needs and encourage the production of a variety of housing types; and 3) Gilroy 2015-2023 Housing Element
9.1 p. 283 of 1163
Emergency Shelters Zoning Amendment
City of Gilroy City Council Page 5 of 6 May 1, 2023 1
0 Goal H-2 (Affordable Housing) to encourage and support the provision of affordable housing in Gilroy.
Zoning Ordinance Purpose: The Zoning Ordinance is the primary tool by which the City implements the policies of the General Plan. The Zoning Ordinance is, among other purposes, intended to guide and regulate each development in accordance with the General Plan and the objectives and standards set forth therein. The City’s performance standards and specific provisions regarding emergency shelters were written to ensure that emergency shelters are operated in a manner that appropriately address the needs of homeless individuals and families, consistent with the requirements of Government Code Section 65583.
Zoning Text Amendment Review: The attached draft Ordinance includes findings demonstrating that the amendment is necessary to carry out the general purpose of the Zoning Ordinance and applicable General Plan goals and policies. Pursuant to Section
30.52.60, the City Council may approve, modify, or disapprove a proposed ordinance amendment. The action by the City Council shall be final and conclusive.
ALTERNATIVES
Staff recommends that the City Council approve the draft changes to City Code.
Alternatively, the City Council can deny the zoning amendment or recommend modifications to the Ordinance. However, this is not recommended since the City would remain out of compliance with State law.
FISCAL IMPACT/FUNDING SOURCE
Staff time and resources required to adopt new zoning regulations to implement State requirements are typically funded under the Department’s operational budget and through the City’s General Fund. No other funding resources are necessary at this time.
PUBLIC OUTREACH
A notice of the May 1, 2023 City Council Regular Meeting was advertised in The Gilroy Dispatch on Friday, April 21, 2023, meeting the requirement of having the public hearing advertised at least ten days before the meeting. The City Council Public Hearing Packets are available through the City’s webpage. No public comments on the proposed amendment have been received as of the writing of this staff report.
NEXT STEPS
If approved by the Council, the Ordinance would take effect 30 days following the second reading of the Ordinance, which is tentatively scheduled for May 15, 2023. The effective date of the Ordinance would occur before the end of HCD’s 60-day review period following the resubmittal of the Gilroy 2023-2031 Housing Element.
9.1 p. 284 of 1163
Emergency Shelters Zoning Amendment
City of Gilroy City Council Page 6 of 6 May 1, 2023 1
0 Attachments:
1. Draft Ordinance
9.1 p. 285 of 1163
ORDINANCE NO. 2023-XX
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF GILROY AMENDING THE GILROY CITY CODE,
CHAPTER 30 (ZONING), ARTICLE XLI SECTION
30.41.32 (SPECIFIC PROVISIONS—
EMERGENCY SHELTERS), ARTICLE II SECTION
30.2.20 (DEFINITIONS), AND ARTICLE XI SECTION
30.11.10(C) (RESIDENTIAL USE TABLE) REGARDING
EMERGENCY SHELTERS
WHEREAS, the Gilroy City Code Chapter 30 (Zoning), Article XLI Section
30.41.32 (Specific provisions—Emergency shelters), Article II Section
30.2.20 (Definitions), and Article XI Section 30.11.10(c) (Residential use table) currently regulate emergency shelters within the city; and
WHEREAS, State Planning and Zoning Law requires the City of Gilroy to adopt a comprehensive, long-term general plan for the physical development of the city that includes a housing element; and
WHEREAS, State law requires that the housing element identify adequate sites for housing, including emergency shelters; and
WHEREAS, Assembly Bill No. 2339, CHAPTER 654 was approved by the Governor and filed with the Secretary of State on September 28, 2022, and amended Sections 65583 and 65863 of the Government Code; and
WHEREAS, Assembly Bill No. 2339 revises the requirements of the housing element, in connection with zoning designations that allow residential use, including mixed use, where emergency shelters are allowed as a permitted use without a conditional use or other discretionary permit; and
WHEREAS, Assembly Bill No. 2339 requires that emergency shelters only be subject to specified written, objective standards; and
WHEREAS, Assembly Bill No. 2339 specifies that the definition of emergency shelter shall include other interim intervention, including, but not limited to, navigation centers, bridge housing, and respite or recuperative care; and WHEREAS, Assembly Bill No. 2339 requires an amendment to Gilroy City Code Chapter 30 (Zoning), Article XLI Section 30.41.32 (Specific provisions— Emergency shelters), Article II Section 30.2.20 (Definitions), and Article XI Section
30.11.10(c) (Residential use table); and
WHEREAS, adoption of the Zoning Ordinance text amendment is exempt from review under the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15061(b)(3) in that it can be seen with certainty that the Zoning Ordinance text amendment would not result in a significant environmental effect, and none of the circumstances set forth in CEQA Guidelines Section 15300.2 applies; and
9.1 p. 286 of 1163
Ordinance No. 2023-XX
Emergency Shelter Amendment Ordinance
City Council Regular Meeting | May 1, 2023
WHEREAS, on April 20, 2023 the Planning Commission held a duly noticed public meeting, 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 proposed Zoning Amendment (Z 23-03); and WHEREAS, on April 20, 2023 the Planning Commission recommended the City Council approve Zoning Amendment X 23-03 amending Gilroy City Code Chapter 30 (Zoning), Article XLI Section 30.41.32 (Specific provisions—Emergency shelters), Article II Section 30.2.20 (Definitions), and Article XI Section 30.11.10(c) (Residential use table) regarding emergency shelters; and
WHEREAS, the City Council held a duly noticed public hearing on May 1, 2023, at which time the City Council received and considered the zoning ordinance text amendment, took and considered written and oral public testimony including the staff report, and all other documentation related to the proposed Zoning Amendment (Z 23- 03); and
WHEREAS, in accordance with City of Gilroy Chapter 30 (Zoning), Article LII (Amendment to the Zoning Ordinance), the Planning Commission has recommended, and the City Council finds, that the proposed Zoning Ordinance text amendment is necessary to carry out the general purpose of the Zoning Ordinance, and applicable General Plan goals and policies including Gilroy 2040 General Plan Land Use Goal LU 3 to provide a variety of housing types that offer choices for Gilroy residents and create complete, livable neighborhoods; Gilroy 2015-2023 Housing Element Goal H-1 (Housing Production) to provide adequate residential sites to accommodate projected housing needs and encourage the production of a variety of housing types; and Gilroy 2015-2023 Housing Element Goal H-2 (Affordable Housing) to encourage and support the provision of affordable housing in Gilroy; 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 office of the City Clerk.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GILROY DOES HEREBY ORDAIN AS FOLLOWS:
SECTION I
Gilroy City Code, Chapter 30 (Zoning), Article XLI, Section 30.41.32 is hereby modified as follows:
30.41.32 Specific provisions—Emergency shelters.
In addition to the development standards in the underlying zoning district, the following standards apply to emergency shelters. In the event of conflict between these standards and the underlying zoning district regulations, the provisions of this section shall apply.
9.1 p. 287 of 1163
Ordinance No. 2023-XX
Emergency Shelter Amendment Ordinance
City Council Regular Meeting | May 1, 2023
(a) On-Site Management and Security Plan. The emergency shelter shall provide on-site management and security during all hours that the emergency shelter is in operation. A management plan is required for all emergency shelters to address management experience, good neighbor issues, transportation, client supervision, screening of clients to ensure compatibility with the services provided at the facility, food services, security, and training, counseling and treatment programs for clients. Such plan shall be submitted to and approved by the planning manager and police chief prior to operation of the emergency shelter. The plan shall include a floor plan that demonstrates compliance with the physical standards of this section. The operator of each emergency shelter shall annually submit the management plan with updated information for review and approval.
(b) Maximum Number of Beds. The maximum number of beds permitted to be served nightly by the facility emergency shelter shall not be limited. However, the number of beds within any single room in a of the emergency shelter shall not exceed fifty (50) unless a larger number is approved on a temporary basis in advance by the planning manager community development director and police chief. A floor plan that includes the maximum number of beds proposed for the emergency shelter shall be included in the application for a building permit.
(c) Exterior and Interior Onsite Waiting and Client Intake Area. An indoor intake area shall be provided and be of sufficient size to accommodate the maximum number of clients anticipated to request sheltering at any given time in addition to providing the minimum interior floor area required to comply with the maximum occupant load requirements of the California Building Code. In addition, an exterior area shall be provided for clients waiting for the shelter to open. The waiting area shall be of sufficient size to accommodate the maximum number of clients anticipated to be waiting for the shelter to open at any given time. Theis exterior waiting area shall be physically separated and visually screened from the public right-of-way. The method for determining the maximum number of clients requesting sheltering and the number of clients and waiting for the shelter to open shall be included in the shelter management plan and approved by the planning manager and police chief. A site plan and floor plan that includes the size and location of the exterior and interior onsite waiting and intake areas shall be included in the application for a building permit.
(d) Parking. One (1) parking stall shall be provided per employee and volunteer on the shift with the greatest number of employees and volunteers, provided that the total number of parking stalls does not exceed the minimum parking that would be required for other residential or commercial uses within the same zone. In addition, one (1) parking stall shall be provided for every ten (10) beds in the shelter. (e) Lighting. Parking lots and pedestrian walkways of shelters that are open after dusk shall provide lighting of a minimum horizontal illumination of two (2) foot candles for those areas.
9.1 p. 288 of 1163
Ordinance No. 2023-XX
Emergency Shelter Amendment Ordinance
City Council Regular Meeting | May 1, 2023
(f) Length of Stay. The maximum length of stay shall be limited to one hundred eighty (180) days per calendar year or less [Health and Safety Code Section 50801(e)].
(g) Proximity to Other Emergency Shelters. The minimum distance between emergency shelters shall be 300 feet.
(h) Location. Emergency Shelters shall be permitted by right in the R4 zone district and areas designated Mixed Use (MU) on the Gilroy 2040 General Plan land use diagram.
SECTION II
Gilroy City Code, Chapter 30 (Zoning), Article II, Section 30.2.20 is hereby modified as follows:
30.2.20 (Definitions)
“Emergency shelter” means housing with minimal supportive services for homeless persons that is limited to occupancy of one hundred eighty (180) days per calendar year or less by a homeless person. No individual or household may be denied emergency shelter because of an inability to pay. [Health and Safety Code Section 50801(e)] The definition of emergency shelter includes other interim interventions, including, but not limited to, a navigation center, emergency bridge housing, and respite or recuperative care.
“Emergency bridge housing” means any new or existing facilities, including, but not limited to, housing in temporary structures, including, but not limited to, emergency sleeping cabins consistent with the requirements of subdivision (h) of Section 8698.3 that are reserved for homeless persons and families, together with community support facilities, including, but not limited to, showers and bathrooms adequate to serve the anticipated number of residents all of which may be located on property leased or owned by a political subdivision. An emergency bridge housing community shall include supportive and selfsufficiency development services, have the ultimate goal of moving homeless persons to permanent housing as quickly as reasonably possible, and limit rents and service fees to an ability-to-pay formula reasonably consistent with the United States Department of Housing and Urban Development’s requirements for subsidized housing for low-income persons.
“Navigation center” means Housing First, low-barrier, service-enriched shelter focused on moving homeless individuals and families into permanent housing that provides temporary living facilities while case managers connect individuals experiencing homelessness to income, public benefits, health services, shelter, and housing.
SECTION III
9.1 p. 289 of 1163
Ordinance No. 2023-XX
Emergency Shelter Amendment Ordinance
City Council Regular Meeting | May 1, 2023
Gilroy City Code, Chapter 30 (Zoning), Article XI, Section 32.11.10(c). is hereby modified as follows:
30.11.10(c) (Residential use table)
A1 RR R1 R2 R3 R4 RH ND
Community Garden X X X X X X *
Emergency Shelter7 C C C C C C X C *
Golf Course or County
Club
C C C C C C *
* = Refer to the master plan or specific plan adopted for the neighborhood district area in which the property is located.
7 Emergency shelters shall be subject to the performance standards listed in section 30.41.32. Emergency Shelters shall be permitted by right in the R4 zone district and areas designated Mixed Use (MU) on the Gilroy 2040 General Plan land use diagram. Additionally, emergency shelters in the agriculture and residential zoning districts shall only serve families. For the purpose of this section, a “family” is defined as having one (1) or more individuals under eighteen (18) years of age who reside with a parent or with another person with care and legal custody of that individual (including foster parents) or with a designee of that parent or other person with legal custody. Family also includes a pregnant woman or a person who is in the process of adopting or otherwise securing legal custody of any individual under eighteen (18) years of age.
SECTION IV
If any section, subsection, subdivision, sentence, clause, or phrase of this Ordinance is for any reason held to be unconstitutional or otherwise void or invalid by any court of competent jurisdiction, the validity of the remaining portion of this Ordinance shall not be affected thereby.
SECTION V
Pursuant to section 608 of the Charter of the City of Gilroy, this Ordinance shall be in full force and effect thirty (30) days from and after the date of its adoption.
9.1 p. 290 of 1163
Ordinance No. 2023-XX
Emergency Shelter Amendment Ordinance
City Council Regular Meeting | May 1, 2023
PASSED AND ADOPTED this __ day of May 2023 by the following roll call vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
APPROVED:
Marie Blankley, Mayor
ATTEST:
_______________________
Thai Nam Pham, City Clerk
9.1 p. 291 of 1163
City of Gilroy
STAFF REPORT
Agenda Item Title: Adoption of the Gilroy 2023 - 2031 Housing Element Meeting Date: May 1, 2023
From: Jimmy Forbis, City Administrator
Department: Community Development
Submitted By: Sharon Goei, Community Development Director Prepared By: Cindy McCormick, Customer Service Manager
STRATEGIC PLAN GOALS Promote Safe Affordable Housing for All
RECOMMENDATION
Staff has analyzed the proposed project and recommends that the City Council:
a) Based on its independent analysis, find that the adoption of the Gilroy 2023-2031 Housing Element is exempt from review under the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15061(b)(3) in that it can be seen with certainty that the Gilroy 2023-2031 Housing Element would not result in a significant environmental effect, and none of the circumstances set forth in CEQA Guidelines Section 15300.2 applies; and
b) Adopt a resolution adopting a general plan amendment to repeal the Gilroy 2015- 2023 Housing Element and adopt the Gilroy 2023-2031 Housing Element, in substantial compliance with State Housing Element Law (GPA 22-01); and c) Direct the Community Development Director, or designee, to submit the Gilroy 2023-2031 Housing Element and all associated documentation to the Department of Housing and Community Development (HCD), and further authorize the Community Development Director, or designee, to make any changes to the Housing Element necessary to make it internally consistent, conform to State Housing Element Law as provided in Government Code 65580 et seq, and address any changes or amendments requested by HCD to achieve certification.
9.2 p. 292 of 1163
Adoption of Gilroy 2023 - 2031 Housing Element
City of Gilroy City Council Page 2 of 13 May 1, 2023
EXECUTIVE SUMMARY
The City of Gilroy has prepared a draft update to the General Plan’s Housing Element, consistent with State law. In addition to affirmatively furthering fair housing, the policies and programs within the draft Housing Element demonstrate the City’s commitment to accommodate Gilroy’s 1,773-unit Regional Housing Needs Allocation (RHNA) for the 2023-2031 (6th Cycle) Housing Element. Public engagement has been a critical component of this 6th cycle Housing Element update, and many of the programs have been modified or added in response to public input.
BACKGROUND
California Government Code Title 7, Division 1, Chapter 3, Article 10.6 [65580 – 65589.11] regulates the use and requirements of housing elements in California. State law requires that the City update its General Plan Housing Element every eight years.
The draft Gilroy 2023 – 2031 Housing Element will replace the City’s 2015-2023 Housing Element. The proposed goals, policies, and programs are consistent with the City’s other General Plan elements, including the Land Use Element, Potential Hazards Element, and Environmental Justice Element.
Environmental Review. The Gilroy 2023-2031 Housing Element does not require any rezoning to accommodate its regional housing need allocation and is consistent with the Gilroy 2040 General Plan Environmental Impact Report. The City of Gilroy Planning Division has determined that there is no substantial evidence that the proposed Gilroy 2023-2031 Housing Element (“Project”) would have a significant effect on the environment, and therefore the Project is exempt from the California Environmental Quality Act (“CEQA”). Pursuant to CEQA Guidelines Section 15061(B)(3), the Project is exempt from CEQA under the common-sense exemption that CEQA applies only to projects which have the potential to cause a significant effect on the environment.
Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.
ANALYSIS
Draft Housing Element Update Process. The City of Gilroy’s 2023-2031 Draft Housing Element was prepared with input from the community, Planning Commission, and City Council. Following public hearings with the Planning Commission and City Council, the City submitted a draft Housing Element to HCD for review on October 31, 2022. In January and February 2023, City staff met with HCD staff to discuss their January 27, 2023 comments on the October 2022 draft and better understand how the City can revise the draft to be substantially compliant with State law and receive HCD certification.
Based upon discussions with HCD staff, staff revised the draft Housing Element to include additional information, analysis, and programs that should bring the draft into
9.2 p. 293 of 1163
Adoption of Gilroy 2023 - 2031 Housing Element
City of Gilroy City Council Page 3 of 13 May 1, 2023
compliance with State law. Based on the experiences of jurisdictions throughout the State, additional refinements may be necessary following HCD’s 60-day review (anticipated July 2023); however, staff expects these changes to be relatively minor.
The recommendation and resolution include language authorizing the Community Development Director to make any changes to the Housing Element necessary to make it internally consistent, conform to State Housing Element Law as provided in Government Code 65580 et seq, and address any changes or amendments requested by HCD to achieve certification. Any substantial changes would be brought back to the Council for final approval.
Consequences for late adoption. Almost all cities and counties across the state have missed their statutory deadline for adopting a compliant housing element (1/31/23 in the Bay Area). Several federal, state, and regional funding programs consider housing element compliance an eligibility or ranking criterion. Furthermore, local governments that have not adopted a compliant housing element are vulnerable to litigation, suspension of local control on building matters, and court approval of housing developments. However, conversations between City staff and HCD staff have been very productive, and staff has adequately addressed the comments received by HCD.
Additionally, given Gilroy’s history of approving affordable and market-rate housing projects, and our collaborative working relationships with applicants, the risk of litigation or court action is low. Furthermore, the sites identified in the Housing Element Sites Inventory do not require any rezoning. Therefore, the City would not be subject to Assembly Bill 1398, which requires rezoning to be completed within one year if a compliant Housing Element is not adopted by 5/31/23.
Planning Commission Recommendation. On April 20, 2023, the Planning Commission considered the Draft Housing Element, dated April 13, 2023, and recommended approval of the CEQA exemption and the Draft Housing Element.
The attached Planning Commission staff report provides a summary of community outreach, a summary of the required components of the Housing Element (e.g., the affirmatively furthering fair housing chapter), a list of Housing Element Goals, and background information on RHNA, the RHNA buffer, and the no net loss inventory which can be modified by staff should any RHNA deficiencies occur within the adopted Inventory. See the attached staff report for this additional information.
Following the April 20th Planning Commission, the City made refinements to the draft, including typographical and grammatical corrections, and changes that better address HCD’s recommended changes to achieve certification. A revised draft was then posted to the City website on April 27, 2023 for further public review. All edits can be viewed through the redlined version of the current draft. A clean copy is also provided for easier reading. The draft Housing Element, HCD response matrix, and statutory compliance checklist are attached to this staff report as links.
A summary of the changes as they relate to the January 27, 2023 HCD comment letter is provided below. Comments are broken down by topic (e.g., fair housing).
9.2 p. 294 of 1163
Adoption of Gilroy 2023 - 2031 Housing Element
City of Gilroy City Council Page 4 of 13 May 1, 2023
AFFIRMATIVELY FURTHERING FAIR HOUSING (AFFH)
Fair Housing Enforcement and Capacity - Added information regarding fair housing enforcement and outreach capacity, including data from the Department of Housing and Urban Development’s Office of Fair Housing and Equal Opportunity (FHEO). Local data was also collected from Project Sentinel regarding the number of calls received on behalf of the City since 2017 and the number of cases managed since 2015. Data included the complaint type, the complainant’s age, and racial characteristics as requested by HCD.
Segregation and Integration (Income) - Added data from the American Community Survey (ACS) on the quantity of the population within each household income level in the City. Included a chart on households per income level and a map showing median income by census tract. Modified Program A-10 to provide more flexibility in the units allowed under SB 9 by allowing triplexes and fourplexes as an alternative design to a traditional duplex with an ADU or a junior ADU. This program will encourage the development of middle-income housing throughout the City, including high-resource areas primarily comprised of detached single-family residences.
Racially and Ethnically Concentrated Area of Poverty (R/ECAP) - Added more analysis of recent improvements to streetscapes and amenities in the R/ECAP. A map showing the year structures were built was included to illustrate why housing conditions may differ in the R/ECAP than elsewhere in the City. Included a map and location of curb and ADA improvements in the R/ECAP funded by CDBG. Added local data analysis by code enforcement regarding concentrations of healthcare facilities, transit, and employment opportunities in the R/ECAP.
Disproportionate Housing Needs - Included local data from code enforcement staff, the City’s Quality of Life officers, and the South County Compassion Center regarding the unhoused population, including location concentrations, migration patterns, and general characteristics such as race and mental illness. Added data on the number of units in need of rehabilitation or repair.
AFFH Identified Sites - Added a table to compare census tracts in the City and to show that there is no significant, pervasive pattern of segregation that could be exacerbated by site selection or location. Included a map to show the bounds of the census tracts that intersect with Gilroy to illustrate that many discrepancies in the opportunity scoring may be due to land uses outside the City bounds. Cited programs that promote housing mobility and housing options for various income levels in high-opportunity areas.
Local Data and Knowledge - Included discussions with service providers regarding developmental disabilities and fair housing complaints. Included survey data from local farmworkers, seniors, and the City’s youth regarding the top housing issues they face.
Other Relevant Factors - Expanded discussion of historical land use patterns, including racial covenants in other Santa Clara County cities. Included local data from the City’s Historical Context Statement, which presents the history of Gilroy’s built environment and the current land use patterns in the City. Added a discussion of the Urban Growth Boundary and the ballot initiative (Measure H) that led to its creation.
9.2 p. 295 of 1163
Adoption of Gilroy 2023 - 2031 Housing Element
City of Gilroy City Council Page 5 of 13 May 1, 2023
Contributing Factors to Fair Housing Issues – Based on the need to provide more housing opportunities outside the R/ECAP, the City added Program A-10 to allow triplexes and fourplexes on corner lots in the R-1 and R-2 zoning districts. This program will encourage the development of middle-income housing in high-resource areas primarily comprised of detached single-family residences.
HOUSING NEEDS
Extremely Low-Income (ELI) Households - The Housing Element includes Table 21, which shows overpayment by tenure compared between each income level.
Comprehensive Housing Affordability Strategy (CHAS) data was added to show rates of overcrowding for ELI households compared to all income levels. The element includes a discussion of how overcrowding occurs when extremely low-income households cannot afford residential units with sufficient size to accommodate a large household. Under Program A-12, the City will develop a policy to incentivize housing for large households, extremely low-income households, farm workers, and households with members with intellectual or developmental disabilities. Under Program E-11, the City will facilitate and support affordable housing for extremely low-income and special-needs households by meeting with and assisting affordable housing developers and homeless service providers and pursuing funding sources to assist special-needs households such as extremely low-income households, farmworkers, large families, seniors, and persons with disabilities.
Housing Conditions - Included estimates on the number of units needing repair or replacement in the City. Included local data from the City's code enforcement officers regarding neighborhoods with housing conditions in potentially higher need of rehabilitation and replacement.
Special Housing Needs – Included local survey data focused on housing issues experienced by farmworkers, seniors, and Gilroy youth. Included local data from a Developmental Disabilities Housing Needs Analysis provided by Housing Choices (e.g., needed housing types, the number of people with a developmental disability in the City by age and living arrangement). City staff also met with intellectually or developmentally disabled (I/DD) individuals, their caregivers, and staff from Housing Choices and the San Andreas Regional Center, who provide services to I/DD individuals at Villa Esperanza, a low-income apartment development for the I/DD community. To further accommodate and facilitate housing for special needs households, the City modified programs A-2 (Surplus Lands/Affordable Housing on City-Owned Sites) and E-7 (housing for farmworkers) and added Programs E-10 (housing for disabled persons), E11 (housing for ELI/special needs households), and E-12 (flexible standards for projects that accommodate extremely low-income and Special Needs Households). The unhoused analysis was updated to reflect the 2022 Point in Time homeless count.
SITES
Progress toward the RHNA - All of the pipeline projects can be counted in the planning period. None of the projects received a final occupancy or building permit before June 30, 2022. No known barriers to development, phasing, or other relevant
9.2 p. 296 of 1163
Adoption of Gilroy 2023 - 2031 Housing Element
City of Gilroy City Council Page 6 of 13 May 1, 2023
factors would prohibit the pipeline projects from completion. Table 76 (Pipeline Projects Counted in the 6th Cycle) was updated to reflect the status of each project, including the status of planning applications and building permits.
Realistic Capacity - The Housing Element was revised to discuss which zones allow 100 percent non-residential uses. The realistic capacity calculation is partly based on recent permits and inquiries that illustrate the trend of maximizing residential and minimizing commercial uses in mixed-use zones. City staff noted that inquiries coming into the City are primarily for 100 percent residential or mixed-use. Staff also noted concerns from developers over the viability of commercial uses outside the historic downtown core. Approximately 30% of the very low-income opportunity site units and approximately 45% of the moderate-income opportunity site units are located in the City’s Downtown Expansion District and First Street Corridor District. To increase the likelihood that sufficient RHNA units are built in these two districts, the City added Program E ‑ 12 (Downtown Expansion District and Mixed-Use Corridor Flexibility). This Program will allow 100 percent residential projects in the Downtown Expansion District and flexibility for non-residential units in the First Street Mixed Use Corridor, should projects meet certain criteria or provide housing for special needs groups (e.g., extremely low-income).
Suitability of Nonvacant Sites - Expanded the discussion on non-vacant site details to include maximum FAR and residential density requirements. Included proximity to relevant resources such as schools, daycare facilities, and grocery stores. Took site characteristics, surrounding uses, and development constraints into consideration when evaluating each site’s development potential. Added a No Net Loss Inventory Program to replace opportunity sites or pipeline projects that are not developed or are developed with fewer units than anticipated. Included examples of inquiry for residential development on non-vacant lots. Updated the analysis and site inventory to clarify which sites are vacant and non-vacant. One parcel was being used for parking that was being categorized as vacant and recategorized as non-vacant. Despite this minor increase in the percentage of lower-income RHNA units on non-vacant sites, Government Code Section 65583.2(g)(2) does not apply to Gilroy since only 31.2% of the proposed lower-income RHNA sites (including the buffer) are met through nonvacant sites (less than 50%).
Replacement Housing Requirements - Modified Program B-7 (Zoning Ordinance Update) to amend the Zoning Ordinance to require that any demolished residential units on the Sites Inventory be replaced pursuant to Government Code Section 65583.2(g).
Zoning for Moderate and Above Moderate-income Households (AB 725) - There are 155 moderate RHNA units remaining after pipeline projects and projected ADUs. 167 moderate-income RHNA opportunity sites allow for at least four units of development. Thus, the City complies with Government Code Section 65583.2(c)(4).
The allocation of moderate units is shown in Appendix B. There is no remaining need of above-moderate units, as they are all met through pipeline projects.
Environmental Constraints - Expanded the discussion on environmental and infrastructure constraints to describe the environmental conditions related to sites in the
9.2 p. 297 of 1163
Adoption of Gilroy 2023 - 2031 Housing Element
City of Gilroy City Council Page 7 of 13 May 1, 2023
Downtown Specific Plan area and provided examples of environmental conditions impacting recent housing projects.
Accessory Dwelling Units (ADU) - On April 24, 2023, City staff worked with HCD to reconcile the HCD dashboard and City records regarding the number of ADUs issued building permits. The Housing Element has been updated to reflect that the City issued seven (7) ADU permits in 2018 and 13 ADUs permits in 2020.
Electronic Sites Inventory - Pursuant to Government Code section 65583.3, the City will submit an electronic version of the adopted sites inventory to HCD.
ZONING FOR A VARIETY OF HOUSING TYPES
Emergency Shelters - Expanded the discussion on emergency shelters to include analysis regarding acreage capacity to accommodate the RHNA and emergency shelters without overlapping capacity. The analysis addresses parcel size, proximity to services, transportation, and zoning amendments to address identified constraints.
Amended Program E-3 (Emergency Shelter Standards) to address and analyze any constraints regarding emergency shelters. On May 1, 2023, the City Council is scheduled to consider the first reading of an Ordinance to amend the City’s existing emergency shelters regulations to allow emergency shelters by-right in the City’s R4 and new mixed-use zone along First Street by removing the conditional use permit requirement in those zones. The definition of emergency shelter was amended to include “other interim interventions, including, but not limited to, a navigation center, bridge housing, and respite or recuperative care”. The revisions also remove the reference to families and amend standards related to on-site management, waiting and intake areas, and parking based on the number of staff only. This action implements Program E-3 (Emergency Shelter Standards) and the requirements of Chapter 654, Statutes of 2022 (AB 2339), and Government Code Section 65583(a)(4).
Transitional and Supportive Housing - Added clarification to the discussion on transitional and supportive housing to affirmatively state that the City's transitional and supportive housing standards are in full compliance with Government Code Section 65583(a)(5).
Permanent Supportive Housing - Added program E-13 (Supportive Housing) to allow supportive housing by-right in zones where multifamily and mixed uses are permitted, pursuant to Government Code Section 65651.
Land Use Controls - Expanded the Downtown Specific Plan development standards table to include yard, height, density, and building form requirements Expanded the Zoning Ordinance discussion to include residential densities, planned development exceptions, lot size, floor area, and lot coverage. Expanded the discussion on the cumulative effect of development standards to address constraints on land use controls.
Amended Program B-7 (Zoning Ordinance update) to evaluate development standards (e.g., parking) for all zones, including DTSP zones.
Land Use Controls - The City currently processes applications consistent with State density bonus law. As discussed in the Housing Element, multiple projects have utilized the density bonus, including the Villages at Santa Teresa/Hecker Pass Apartments (100
9.2 p. 298 of 1163
Adoption of Gilroy 2023 - 2031 Housing Element
City of Gilroy City Council Page 8 of 13 May 1, 2023
units), and the 1st and Kern Apartments (120 units). Program A-12 (Incentives Beyond Density Bonus State Law) goes beyond State law to offer incentives targeted at special needs and extremely low-income households.
Accessory Dwelling Units (ADUs) - Added Program A-15 (ADU Ordinance Updates), which directs the City to update the zoning ordinance to conform to current State law regarding ADUs. Under this program, the City will replace the ADU deed restriction requirement with an owner affidavit form that does not require recordation at the County. This change will streamline the process for approving ADUs in the City of Gilroy. To further incentivize ADU production, the City will increase the allowable ADU floor area from 1,000 square feet to 1,200 square feet.
Building Codes - Expanded the Building Code analysis to identify and evaluate locally adopted codes, including the recently adopted reach codes.
Fees and Exaction – In addition to discussing current school fees, the Housing Element summarizes planning and development impact fees in Table 67 (Planning Related Fees) and Table 68 (Development Impact Fees). These fees were then compared to other cities in Santa Clara County in 2022, resulting in Table 69 (Total Fees per Unit, Regional Comparison) and Table 70 (Fees as Percentage of Total Development Costs, Regional Comparison). Fees in Gilroy generally fall in the midrange comparatively. Furthermore, development has not slowed following fee increases in 2022, indicating that Gilroy’s fees are reasonably set and do not represent a constraint on development. ADU impact fees are discussed in the Constraints chapter.
The City modified Program A-8 (Financial Incentives for Affordable ADUs) to evaluate ADU impact fees as a potential constraint for affordable housing.
On/Off Site Improvements - Expanded the discussion of on- and off-site improvement requirements to include analysis of subdivision-level improvement requirements for a typical development. Based on recent proposals submitted and entitled citywide for a range of housing types, the City's residential site improvement requirements do not create an undue constraint on residential development.
Local Processing and Permit Procedures - Expanded the analysis on development review and permitting procedures to include the administrative vs. discretionary permitting procedures for single-family, multi-family, and planned unit development projects.
Constraints on Housing for Persons with Disabilities (Reasonable Accommodation) - Added Program E-10 (Development and Rehabilitation of Housing for Persons with Disabilities) to evaluate the City’s reasonable accommodation standards and procedures, and revise, as necessary, regulations that act as potential constraints to accommodating persons with disabilities.
Constraints on Housing for Persons with Disabilities (Group Homes) - Added Program E-10 (Development and Rehabilitation of Housing for Persons with Disabilities) to evaluate and revise as necessary the permit requirements for residential care homes (i.e., group homes) in medium- and higher-density residential zones.
9.2 p. 299 of 1163
Adoption of Gilroy 2023 - 2031 Housing Element
City of Gilroy City Council Page 9 of 13 May 1, 2023
Nongovernmental Constraints - Expanded the discussion on requests to develop below the anticipated density and how this affects the assumptions in the sites inventory. Added discussion of the typical time between entitlement approval and requests for building permits.
Energy Conservation - Included an energy conservation section to analyze energy conservation opportunities and existing programs in residential development in the City and County. In November 2022, the City adopted the 2022 California Building Code with local amendments. The reach code amendments (e.g., EV charging) were based on the model code amendment initiated by Silicon Valley Clean Energy and incorporated adjustments resulting from outreach and stakeholder input from the local community. In early 2023, the City of Gilroy launched Solar Automated Permit Processing Plus (SolarAPP+), an online portal that simplifies and accelerates rooftop solar photovoltaic (PV) permitting processes, allowing residential solar photovoltaic systems to be installed quicker.
At-risk units - Updated Table 29 and the at-risk units analysis, consistent with HCD records. The City also updated Table 30 regarding replacement costs.
HOUSING PROGRAMS
Housing Programs (Sufficient Sites) – Revised Program A-1 (No Net Loss Inventory and Monitoring) to include the addition of a no net loss inventory list; revised Program A-2 (Surplus Lands/Affordable Housing on City-Owned Sites) to advertise City-owned surplus lands to affordable housing providers, the Santa Clara County Office of Supportive Housing, and developers of special needs housing; Program A-6 (ADU Tracking and Monitoring) was amended to include an update to the ADU strategy if annual production and affordability rates do not match the estimates included in the Housing Sites and Resources chapter; modified Program A-10 (Facilitate Missing Middle / Middle-Income Housing) to provide more flexibility in the type of units allowed under SB 9 by allowing triplexes and fourplexes as an alternative design to a traditional duplex with an ADU or a junior ADU. Added Program E-12 (Downtown Expansion District and Mixed-Use Corridor Flexibility) to allow 100% Residential in the Downtown Expansion District and provide flexibility for mixed-use projects that accommodate extremely low-income and Special Needs Households along the First Street Corridor.
Housing Program A-2 (City-owned Lands) - Program A-2 (Surplus Lands/Affordable Housing on City-Owned Sites) was modified to include a goal of developing at least 21 lower-income units through the Surplus Lands Act and to review the entire list of Cityowned sites by the end of Q4 2025 to determine which additional sites should be declared as surplus. This program also commits the City to advertise any surplus land opportunities to affordable housing providers, the Santa Clara County Office of Supportive Housing, and developers of special needs housing (e.g., extremely lowincome, disabled, farmworker housing), when they become available.
Housing Program E-3 (Emergency Shelter Zoning) - On May 1, 2023, the City Council considered the first reading of an Ordinance to amend the City’s existing emergency shelters regulations to allow emergency shelters by-right in the City’s R4 and new mixed-use zone along 1st Street by removing the conditional use permit
9.2 p. 300 of 1163
Adoption of Gilroy 2023 - 2031 Housing Element
City of Gilroy City Council Page 10 of 13 May 1, 2023
requirement in those zones. The definition of emergency shelter was amended to include “other interim interventions, including, but not limited to, a navigation center, bridge housing, and respite or recuperative care.” The revisions also remove the reference to families and amend standards related to on-site management, waiting and intake areas, and parking based on the number of staff only. This action implements Program E-3 (Emergency Shelters) and the requirements of Chapter 654, Statutes of 2022 (AB 2339), and Government Code Section 65583(a)(4).
Housing Program D-4 (Pursue Funding for Affordable Housing) - Program D-4 was amended to reference the use of PLHA funds for eligible activities, including the predevelopment, development, acquisition, rehabilitation, and preservation of affordable housing. Amendments also commit the City to meet with affordable housing developers to identify development opportunities and provide support for funding applications, consider incentives and concessions beyond State Density Bonus Law, and provide priority processing.
Housing Programs (Extremely Low-income and Special Needs Households) - In addition to the changes to Program D-4 noted above, the City added Program E-11 (Housing For Extremely Low Income and Special Needs Households) to commit to specific annual outreach with affordable housing developers to identify development opportunities, provide site information, assist in the entitlement processes, and consider on a case-by-case basis other incentives, including but not limited to fee deferrals and modification of standards. Program G-1 (Collaboration with Development Community) was amended to specifically contact affordable housing developers and developers of special needs households for their participation in the annual developer roundtable meeting, with the goal of at least four participating in the annual roundtable.
Housing Programs (Farmworkers) - Program E-7 (Development and Conservation of Housing for Farmworkers) was modified to add the following commitment: At least once a year, the City will forward information about City-owned land and other development opportunities to developers and service providers who may be interested in developing more farmworker housing in Gilroy. Programs E-11 (Housing for Extremely Low Income and Special Needs Households) were added to commit to specific annual outreach with affordable housing developers to identify development opportunities. Eden Housing which manages three (3) farmworker housing developments in Gilroy is included on the list. Program E-11 also identifies PLHA funding as a potential source for developing farmworker housing.
Housing Programs (Governmental Constraints) – New programs were added, and existing programs were amended to remove governmental constraints on housing production. Program A-6 (ADU Tracking and Monitoring) was amended to include an update to the ADU strategy if annual production and affordability rates do not match the estimates included in the Housing Sites and Resources chapter. Program A-8 (Financial Incentives for Affordable ADUs) was amended to evaluate ADU impact fees if ADU production is lower than anticipated. Program A-10 (Missing Middle / Middle Income Housing) was amended to allow triplexes and fourplexes on corner lots in the R-1 and R-2 districts with a minimum 6,000 sf lot size. A-15 (ADU Ordinance Updates) was amended to replace the ADU deed restriction requirement with an owner affidavit form
9.2 p. 301 of 1163
Adoption of Gilroy 2023 - 2031 Housing Element
City of Gilroy City Council Page 11 of 13 May 1, 2023
that does not require recordation at the County and to increase the allowable floor area from 1,000 to 1,200 square feet. A-16 (SB 9 Procesing) was added to update the City’s SB 9 webpage to include step-by-step, user-friendly instructions for processing SB 9 units and lot splits in Gilroy. Program B-3 (SB35/SB330) was amended to include the creation of checklists and instructions for reviewing and approving SB35 and SB330 projects. Under Program B-7 (Zoning Ordinance update) the City will evaluate development standards for all zones including the Downtown Specific Plan zones for potential governmental constraints. Under Program B-9 (Building Department Webpage), the City will update the Building Department webpage to include information required pursuant to AB 2234, which should help reduce applicant time and cost and increase certainty. Under Program B-10 (Zoning Code Annual Updates), the City will establish a process to update City policies, codes and ordinances to comply with new State laws affecting housing and land use. Under Program E-3 (Emergency Shelters), the City has drafted an update to the zoning ordinance to comply with Assembly Bill (AB) 2339, AB 139, and Government Code Section 65583(a)(4) regarding emergency shelters. Program E-12 (Downtown Expansion District and Mixed-Use Corridor Flexibility) will allow 100% Residential in the Downtown Expansion District and flexibility for the non-residential portion of mixed-use projects that accommodate extremely lowincome and Special Needs Households.
Housing Programs (AFFH) - Program A-10 (Missing Middle / Middle Income Housing) was amended to allow triplexes and fourplexes on all corner lots in the R-1 and R-2 districts with a minimum 6,000 sf lot size to encourage the development of missing middle housing throughout the City, including high-resource areas primarily comprising detached single-family residences. Programs A-11 (Inclusionary Policy) and A-12 (Incentives Beyond Density Bonus State Law) will facilitate affordable housing opportunities in the City’s higher resource / higher income areas. Under Program E-10 (Development and Rehabilitation of Housing for Persons with Disabilities), the City will evaluate and revise standards and procedures related to reasonable accommodation and residential care homes (i.e., group homes) as necessary to remove governmental constraints. Program F-3 (Place-Based Improvements in Downtown Gilroy) will improve conditions in the City’s R/ECAP area. Program G-2 (Community Outreach and Inclusion in the Decision-Making Process) includes geographic targeting in the R/ECAP area.
Similarly, Program G-4 (Increased Outreach in Downtown Areas) directs the City to consider the viewpoints and concerns of all neighborhoods within Gilroy, specifically the R/ECAP area when drafting the High-Speed Rail Station Area Plan and when updating the Downtown Specific Plan. Under Program G-7 (Bilingual Engagement), the City will increase Spanish language engagement given the City’s large Hispanic population, which is further facilitated by the recent expansion of the City’s bilingual pay benefits, which should increase the number of bilingual staff available to assist the Spanishspeaking community.
9.2 p. 302 of 1163
Adoption of Gilroy 2023 - 2031 Housing Element
City of Gilroy City Council Page 12 of 13 May 1, 2023
Housing Program A-6 (ADU Tracking and Monitoring) - Program A-6 was modified to update the ADU strategy if annual production and affordability rates do not match the estimates included in the Housing Sites and Resources section.
Program E-1 (Priority Water and Sewer Service) - Modified Program E-1 (Priority Water and Sewer Service for Affordable Housing Developments) to specify that the City shall review and update, as necessary, the Water and Sewer Service Priority Policy to ensure future affordable projects will receive service priority. This policy is currently in place. Under Program E-1, the Housing Element will be provided to water and sewer service providers upon adoption.
MISCELLANEOUS
Quantified Objectives - Revised Table 86 to include a goal for conservation beyond just preservation numbers.
General Plan Consistency – Program B-11 was added to ensure that consistency between the General Plan and Housing Element is reviewed as part of the Annual Progress Report (APR), before April 1st of each year. As amendments to the General Plan are made, the City will also review and revise the Housing Element for ongoing consistency.
Public Participation - The public participation process discussion in the Introduction chapter of the Housing Element was expanded to include summaries of public comments and how the comments were considered and incorporated into the Housing Element. Summaries of recent outreach efforts and survey results were also added.
ALTERNATIVES
Staff is recommending approval of the Draft Gilroy 2023-2031 Housing Element.
Alternatively, the City Council could direct staff to add, remove, or modify the proposed text, site inventory, or any recommended goals, policies, and programs. Any revisions made following the City Council Public Hearing will be posted on the City website and then forwarded to HCD for final review.
FISCAL IMPACT/FUNDING SOURCE
The City was awarded $150,000 in Local Early Action Planning (LEAP) grant funding and $36,203 in Regional Early Action Planning (REAP) grant funding to help reimburse costs associated with the preparation of the Housing Element. Furthermore, the approved Community Development budget includes adequate funding to pay the $306,155 consultant contract to update the Housing Element and offset consultant costs associated with the preparation of an Inclusionary Housing Policy, estimated to cost approximately $90,000. Adopting the 2023-2031 Housing Element would result in fiscal impacts related to implementing the Housing Element Programs. These programs include but are not limited to amendments to City codes and policies intended to reduce governmental constraints that may limit or constrain the production of housing to meet local and regional housing needs and the goals and objectives of the General Plan.
Most of the work (e.g., code amendments) would largely be accommodated within
9.2 p. 303 of 1163
Adoption of Gilroy 2023 - 2031 Housing Element
City of Gilroy City Council Page 13 of 13 May 1, 2023
existing staffing resources and departmental work plans; however, some of the programs will require consultants (e.g., Inclusionary Policy, Affordable Housing Incentives Policy, and Model Plans).
PUBLIC OUTREACH
A notice of the May 1, 2023 City Council Regular Meeting was advertised in The Gilroy Dispatch on Friday, April 21, 2023 (no less than 10 days prior to the meeting). City staff also emailed the Housing Element update distribution list and advertised the Housing Element update in the City’s April 21st newsletter. The City Council public hearing packets are available through the City’s webpage.
NEXT STEPS
Any revisions made following the City Council Public Hearing will be posted on the City website and then forwarded to HCD for final review. Based on the experiences of jurisdictions throughout the State, additional refinements may be necessary following HCD’s 60-day review (anticipated July 2023); however, staff expects these changes to be relatively minor. The recommendation and resolution include language authorizing the Community Development Director to make any changes to the Housing Element necessary to make it internally consistent, conform to State Housing Element Law as provided in Government Code 65580 et seq, and address any changes or amendments requested by HCD to achieve certification. Any substantial changes would be brought back to the Council for final approval.
Attachments:
1. Draft Resolution
2. April 20, 2023 Planning Commission Public Hearing Staff Report
3. HCD Comment Letter, Dated January 27, 2023
4. Statutory Compliance Completeness Checklist
5. HCD Comment Response Matrix
6. Draft Housing Element (clean copy), Draft Housing Element (redlined changes)
9.2 p. 304 of 1163
RESOLUTION NO. 2023-XX
A RESOLUTION OF THE CITY OF GILROY CITY COUNCIL ADOPTING
A RESOLUTION, ADOPTING A GENERAL PLAN AMENDMENT TO
REPEAL THE GILROY 2015-2023 HOUSING ELEMENT AND ADOPT
THE GILROY 2023-2031 HOUSING ELEMENT, IN SUBSTANTIAL
COMPLIANCE WITH STATE HOUSING ELEMENT LAW (GPA 22-01)
WHEREAS, the California Legislature has found that “California has a housing supply and affordability crisis of historic proportions, and the consequences of failing to effectively and aggressively confront this crisis are hurting millions of Californians, robbing future generations of the chance to call California home, stifling economic opportunities for workers and businesses, worsening poverty and homelessness, and undermining the state’s environmental and climate objectives” (Gov. Code Section 65589.5); and WHEREAS, State Housing Element Law (Government Code Sections 65580 et seq.) requires that the City Council adopt a Housing Element for the eight-year period 2023-2031 to accommodate the City of Gilroy (City) Regional Housing Need Allocation (RHNA) of 1,773 housing units, comprised of 669 very-low-income units, 385 low-income units, 200 moderate-income units, and 519 above moderate-income units; and WHEREAS, to comply with State Housing Element Law, the City of Gilroy has prepared the Gilroy 2023-2031 Housing Element (Housing Element) in substantial compliance with State Housing Element Law and has identified sites that can accommodate housing units meeting the City’s RHNA; and
WHEREAS, as provided in Government Code Section 65350 et. seq., adoption of the Housing Element constitutes a General Plan Amendment; and WHEREAS, as provided in Government Code Sections 65352 – 65352.5 the City of Gilroy referred the Housing Element update to all California Native American tribes on the contact list provided by the Native American Heritage Commission and to other entities listed; and
WHEREAS, no California Native American tribe requested consultation; and WHEREAS, the preparation, adoption, and implementation of the Housing Element requires a diligent effort to include all economic segments of the community; and WHEREAS, the City conducted extensive community outreach beginning in August 2021 and including a dedicated website, hard copy and online surveys in English and Spanish, stakeholder interviews, two bilingual virtual community workshops, an Equity Advisory Group meeting, a bilingual joint public study session with the Planning Commission and City Council, public hearings with the Planning Commission and City Council on the first public draft of the 2023-2031 Housing Element, farmworker outreach, Youth Commission outreach, Gavilan College outreach, senior citizen outreach, and intellectually and developmentally disabled community outreach; and WHEREAS, in accordance with Government Code Section 65585 (b), on September 12, 2022, the City posted the first draft of the Housing Element and requested public comment for a minimum 30-day review period; and
9.2 p. 305 of 1163
Resolution No. 2023-XX
2023-2031 Housing Element
City Council Regular Meeting | May 1, 2023
WHEREAS, between October 12, 2022, and October 31, 2022, the City made revisions to the September 12, 2022 draft Housing Element in response to public comments; and
WHEREAS, on October 31, 2022, the City submitted the revised draft Housing Element to the State Department of Housing and Community Development (HCD) for its review; and
WHEREAS, on January 27, 2023, the City received a letter from HCD providing its findings regarding the October 31, 2022 Draft Housing Element; and WHEREAS, on April 13, 2023, the City published a revised draft Housing Element responding to HCD’s findings and requested public comment on the draft; and WHEREAS, the Gilroy 2023-2031 Housing Element does not require any rezoning to accommodate its regional housing need allocation and is consistent with the Gilroy 2040 General Plan Environmental Impact Report; and
WHEREAS, the adoption of the Housing Element is exempt from review under the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15061(b)(3) in that it can be seen with certainty that the Housing Element would not result in a significant environmental effect, and none of the circumstances set forth in CEQA Guidelines Section 15300.2 applies; and
WHEREAS, on April 20, 2023, the Planning Commission conducted a duly and properly noticed public hearing to take public testimony and consider the Housing Element and all pertinent maps, documents, and exhibits, including HCD’s findings, the City’s response to HCD’s findings, the staff report and all attachments, and oral and written public comments; and
WHEREAS, on April 20, 2023, the Planning Commission recommended that the City Council find that the adoption of the Housing Element is exempt from review under the California Environmental Quality Act Guidelines Section 15061(b)(3) and adopt a resolution adopting a general plan amendment to repeal the Gilroy 2015-2023 Housing Element and adopt the Gilroy 2023-2031 Housing Element, in substantial compliance with State Housing Element Law (GPA 22-01); and
WHEREAS, on May 1, 2023, the City Council conducted a duly and properly noticed public hearing to take public testimony and consider the Housing Element and all pertinent maps, documents, and exhibits, including HCD’s findings, the City’s response to HCD’s findings, the staff report and all attachments, and oral and written public comments; and
WHEREAS, as required by Government Code Section 65585(e), the City Council has considered the findings made by the Department of Housing and Community Development in their January 27, 2023 letter to the City of Gilroy, and in further consideration of Government Code Section 65585(f), has authorized the Community
9.2 p. 306 of 1163
Resolution No. 2023-XX
2023-2031 Housing Element
City Council Regular Meeting | May 1, 2023
Development Director, or designee, to make any changes to the Housing Element necessary to make it internally consistent, conform to State Housing Element Law as provided in Government Code 65580 et seq, and address any changes or amendments requested by HCD to achieve certification; 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 of Gilroy City Council hereby finds that, based on substantial evidence in the record:
1. The foregoing recitals are true and correct and are incorporated by reference into this action.
2. The Gilroy 2015-2023 Housing Element is exempt from review under the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15061(b)(3) in that it can be seen with certainty that the Housing Element would not result in a significant environmental effect, and none of the circumstances set forth in CEQA Guidelines Section 15300.2 applies.
3. The Gilroy 2023-2031 Housing Element substantially complies with Housing Element Law, as provided in Government Code 65580 et seq., and contains all provisions required by State Housing Element Law, as shown in Attachment A to this resolution, incorporated herein.
4. As required by Government Code Section 65585(e), the City Council has considered the findings made by the Department of Housing and Community Development included in the Department’s letter to the City of Gilroy dated January 27, 2023, consistent with Government Code Section 65585(f), and as described in Attachment B to this resolution, incorporated herein, the City Council has changed the Housing Element in response to the findings of the Department to substantially comply with the requirements of State Housing Element Law as interpreted by HCD.
5. The Gilroy 2015-2023 Housing Element is hereby repealed in its entirety, and Gilroy 2023-2031 Housing Element, as shown in Attachment C to this Resolution, incorporated herein, is adopted.
6. This Resolution shall become effective upon adoption by the City Council.
7. The Community Development Director, or designee, is hereby directed to file all necessary material with the Department of Housing and Community Development and to make any changes to the Housing Element necessary to make it internally consistent, conform to State Housing Element Law as provided in Government Code 65580 et seq, and address any changes or amendments requested by HCD to achieve certification.
9.2 p. 307 of 1163
Resolution No. 2023-XX
2023-2031 Housing Element
City Council Regular Meeting | May 1, 2023
8. The Community Development Director or designee is hereby directed to distribute copies of the Housing Element in the manner provided in Government Code Sections 65357 and 65589.7.
PASSED AND ADOPTED by the City Council of the City of Gilroy at a regular meeting duly held on the 1st day of May 2023 by the following roll call vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
APPROVED:
Marie Blankley, Mayor
ATTEST:
_______________________
Thai Nam Pham, City Clerk
9.2 p. 308 of 1163
9.2 p. 309 of 1163
9.2 p. 310 of 1163
9.2 p. 311 of 1163
9.2 p. 312 of 1163
9.2 p. 313 of 1163
9.2 p. 314 of 1163
9.2 p. 315 of 1163
9.2 p. 316 of 1163
STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT
DIVISION OF HOUSING POLICY DEVELOPMENT
2020 W. El Camino Avenue, Suite 500
Sacramento, CA 95833
(916) 263-2911 / FAX (916) 263-7453
www.hcd.ca.gov
January 27, 2023
Sharon Goei, Director
Community Development Department
City of Gilroy
7351 Rosanna Street
Gilroy, CA 95020
Dear Sharon Goei:
RE: City of Gilroy’s 6th Cycle (2023-2031) Draft Housing Element Thank you for submitting the City of Gilroy’s (City) draft housing element update received for review on October 31, 2022. Pursuant to Government Code section 65585, subdivision (b), the California Department of Housing and Community Development (HCD) is reporting the results of its review. Our review was facilitated by a conversation on January 18, 2023. In addition, HCD considered comments from YIMBY Law and Greenbelt Alliance, YIMBY Law and Campaign for Fair Housing Elements, Housing Action Coalition (Via a meeting), and Silicon Valley at Home, pursuant to Government Code section 65585, subdivision (c).
The draft element addresses many statutory requirements; however, revisions will be necessary to comply with State Housing Element Law (Article 10.6 of the Gov. Code).
The enclosed Appendix describes the revisions needed to comply with State Housing Element Law.
For your information, pursuant to Assembly Bill 1398 (Chapter 358, Statutes of 2021), if a local government fails to adopt a compliant housing element within 120 days of the statutory deadline (January 31, 2023), then any rezoning to make prior identified sites available or accommodate the regional housing needs allocation (RHNA), including for lower-income households, shall be completed no later than one year from the statutory deadline pursuant to Government Code section 65583, subdivision (c)(1)(A) and Government Code section 65583.2, subdivision (c). Otherwise, the local government’s housing element will no longer comply with State Housing Element Law, and HCD may revoke its finding of substantial compliance pursuant to Government Code section 65585, subdivision (i). Please be aware, if the City fails to adopt a compliant housing element within one year from the statutory deadline, the element cannot be found in substantial compliance until these rezones are completed.
9.2 p. 317 of 1163
Sharon Goei, Director
Public participation in the development, adoption and implementation of the housing element is essential to effective housing planning. Throughout the housing element process, the City should continue to engage the community, including organizations that represent lower-income and special needs households, by making information regularly available and considering and incorporating comments where appropriate. Please be aware, any revisions to the element must be posted on the local government’s website and to email a link to all individuals and organizations that have previously requested notices relating to the local government’s housing element at least seven days before submitting to HCD.
Several federal, state, and regional funding programs consider housing element compliance as an eligibility or ranking criteria. For example, the CalTrans Senate Bill (SB) 1 Sustainable Communities grant; the Strategic Growth Council and HCD’s Affordable Housing and Sustainable Communities programs; and HCD’s Permanent Local Housing Allocation consider housing element compliance and/or annual reporting requirements pursuant to Government Code section 65400. With a compliant housing element, the City will meet housing element requirements for these and other funding sources.
For your information, some general plan element updates are triggered by housing element adoption. HCD reminds the City to consider timing provisions and welcomes the opportunity to provide assistance. For information, please see the Technical Advisories issued by the Governor’s Office of Planning and Research at:
https://www.opr.ca.gov/planning/general-plan/guidelines.html.
We are committed to assist the City in addressing all statutory requirements of State Housing Element Law. If you have any questions or need additional technical assistance, please contact Connor Finney, of our staff, at [email protected].
Sincerely,
Paul McDougall
Senior Program Manager
Enclosure
9.2 p. 318 of 1163
City of Gilroy’s 6th Cycle (2023-2031) Draft Housing Element Page 1 January 27, 2023
APPENDIX
CITY OF GILROY
The following changes are necessary to bring the City’s housing element into compliance with Article 10.6 of the Government Code. Accompanying each recommended change, we cite the supporting section of the Government Code.
Housing element technical assistance information is available on HCD’s website at https://www.hcd.ca.gov/planning-and-community-development/hcd-memos. Among other resources, the housing element section contains HCD’s latest technical assistance tool, Building Blocks for Effective Housing Elements (Building Blocks), available at https://www.hcd.ca.gov/planning-and-community-development/housing-elements/buildingblocks and includes the Government Code addressing State Housing Element Law and other resources.
A. Housing Needs Resources and Constraints
1. Affirmatively further[ing] fair housing in accordance with Chapter 15 (commencing with Section 8899.50) of Division 1 of Title 2…shall include an assessment of fair housing in the jurisdiction. (Gov. Code, § 65583, subd. (c)(10)(A).) Fair Housing Enforcement and Capacity: The housing element must include a summary of fair housing enforcement and outreach capacity. The analysis must address how the City complies with state and federal fair housing laws, including regulations, lawsuits, and related enforcement actions. The element should also quantify local complaints and discuss characteristics relative to protected characteristics (e.g., disability, race, familial status)
Segregation and Integration (Income): The element discusses areas of higher concentration of lower and moderate-income households and poverty, including coincidences with race. However, the element should also consider American Community Survey data for income categories related to median incomes and discuss areas of relatively higher income then expand the discussion of income using local data and knowledge as well as other relevant factors like zoning and land use.
Racially and Ethnically Concentrated Area of Poverty (RECAP): While the element identifies the RECAP and discusses some current efforts such as the environmental justice element, it should expand the discussion of this area to better formulate appropriate policies and programs. For example, the element could examine and compare the quality of life relative to other neighborhoods (e.g., parks, streetscapes, schools, safe routes to schools, infrastructure, community amenities, housing conditions, neighborhood conditions).
Disproportionate Housing Needs: The element includes some general information on persons experiencing homelessness and housing conditions but should also evaluate those needs, impacts and patterns within the City, such as areas of higher need. For
9.2 p. 319 of 1163
City of Gilroy’s 6th Cycle (2023-2031) Draft Housing Element Page 2 January 27, 2023
homelessness, the element should examine disproportionate impacts on protected characteristics (e.g., race, disability) and patterns of need, including access to transportation and services. For housing conditions, the element should discuss any areas of potentially higher needs of rehabilitation and replacement. The element may utilize local data and knowledge such as service providers and code enforcement officials to assist this analysis.
Affirmatively Furthering Fair Housing (AFFH) and Identified Sites: The element includes some discussion of identified sites to accommodate the regional housing needs allocation (RHNA) and fair housing conditions. For example, the element discusses the low and moderate-income RHNA in areas of higher concentrations of lower and moderate-income households. But the discussion should address the RHNA for all income categories by location instead of fair housing categories to better evaluate whether identified sites exacerbate or improve fair housing conditions. The discussion should also quantify the RHNA by income group and location and evaluate impacts on existing patterns. For example, the element could quantify the lower, moderate and above moderate-income RHNA in the central eastern part of the City, discuss impacts on the existing number of households relative to socio-economic characteristics (e.g., income, TCAC resource, overpayment, displacement) and then evaluate whether the inventory exacerbates or improves fair housing conditions. This same analysis should be performed for the northwestern and other parts of the City.
Local Data and Knowledge: The element must include local data, knowledge, and other relevant factors to discuss and analyze any unique attributes about the City related to fair housing issues. The element should complement federal, state, and regional data with local data and knowledge where appropriate to capture emerging trends and issues, including utilizing knowledge from local and regional advocates and service providers, City staff and related local and county planning documents.
Other Relevant Factors: The element must include other relevant factors that contribute to fair housing issues in the City. For instance, the element can analyze historical land use (zoning, ballot initiatives, growth controls), information about redlining/greenlining, disinvestment, and other issues that impacted socio-economic patterns complemented by the state and federal data.
Contributing Factors to Fair Housing Issues: Based on the outcomes of a complete analysis, the element should re-assess contributing factors and particularly prioritize those factors then formulate appropriate policies and programs.
2. Include an analysis of population and employment trends and documentation of projections and a quantification of the locality's existing and projected needs for all income levels, including extremely low-income households. (Gov. Code, § 65583, subd. (a)(1).)
Include an analysis and documentation of household characteristics, including level of payment compared to ability to pay, housing characteristics, including overcrowding, and housing stock condition. (Gov. Code, § 65583, subd. (a)(2).)
9.2 p. 320 of 1163
City of Gilroy’s 6th Cycle (2023-2031) Draft Housing Element Page 3 January 27, 2023
Analyze any special housing needs such as elderly; persons with disabilities, including a developmental disability; large families; farmworkers; families with female heads of households; and families and persons in need of emergency shelter. (Gov. Code, § 65583, subd. (a)(7).)
Extremely Low-Income (ELI) Households: The element (p. 71) reports that approximately 80 percent of ELI households experience housing problems then, with no further discussion, concludes the City is preparing an inclusionary requirements and density bonus ordinance. While inclusionary and density bonuses can be meaningful policies, the element should examine the needs of ELI households to better formulate policies and programs. The analysis should evaluate tenure, overcrowding, overpayment, disproportionate impacts relative to other income groups, resources, past strategies and their effectiveness and magnitude of housing needs.
Housing Conditions: The element discusses housing units by age, number of units lacking plumbing and kitchen facilities and recent code enforcement activities but should still estimate (City-wide) the number of units in need of rehabilitation and replacement.
Special Housing Needs: While the element includes some quantification of special housing needs, it must still analyze those needs. The analysis should include, but is not limited to, factors such as trends, household income, tenure, housing types, zoning, available resources, effectiveness of past strategies and an evaluation of the magnitude of the need. Local officials, special needs service providers, or social and health service providers may be able to assist with information to complete the analysis.
In addition, the analysis should quantify the number of persons with developmental disabilities as well as update homelessness numbers from the most recent PIT count.
3. An inventory of land suitable and available for residential development, including vacant sites and sites having realistic and demonstrated potential for redevelopment during the planning period to meet the locality’s housing need for a designated income level, and an analysis of the relationship of zoning and public facilities and services to these sites. (Gov. Code, § 65583, subd. (a)(3).)
Progress toward the RHNA: While the element may utilize constructed, permitted, approved and pending projects toward the RHNA, it must also demonstrate their availability in the planning period. Availability should confirm the projects have not been reported before the beginning of the projection period (June 30, 2022) and account for the likelihood of project completion in the planning period, including the status, necessary steps to issue permits, any barriers to development, phasing, build-out horizons, dropout rates and other relevant factors.
Realistic Capacity: Where zoning allows 100 percent nonresidential uses, the calculation of residential capacity should account for the likelihood of 100 percent nonresidential development. For example, the element could analyze all development activity in nonresidential zones allowing 100 percent nonresidential uses, how often
9.2 p. 321 of 1163
City of Gilroy’s 6th Cycle (2023-2031) Draft Housing Element Page 4 January 27, 2023
residential development occurs and adjust residential capacity calculations, policies, and programs accordingly. This analysis may incorporate any proposed policies such as residential performance standards, prohibition of commercial uses and should clarify that all zones allow residential uses, particularly 100 percent residential uses.
Suitability of Nonvacant Sites: The element must demonstrate the potential for additional development on nonvacant sites. While the element (p. 181) notes recent trends on sites with existing uses and includes general descriptions of nonvacant sites, it should evaluate the extent existing uses impeded additional development and demonstrate the potential for redevelopment in the planning period, including sites identified in prior planning periods. The analysis should address market demand for the existing use and existing leases, contracts or other conditions that would perpetuate the existing use or prevent additional residential development. The element should include a discussion of why the uses will likely discontinue or be redeveloped in the planning period and should consider additional indicators of the potential for redevelopment such as age and condition of the existing structure, expressed developer or property owner interest, existing versus allowable floor area, and other factors.
In addition, based on public comments, the inventory may contain sites with existing uses that are labeled as vacant. The element should make corrections, as appropriate.
Replacement Housing Requirements: If the sites inventory identifies sites with existing residential uses, the element must include a replacement housing program for units affordable to lower-income households Pursuant to Government Code section 65583.2, subdivision (g). Absent a replacement housing program, these sites are not adequate sites to accommodate lower-income households. The replacement housing program has the same requirements as set forth in Government Code section 65915, subdivision (c) (3).
Zoning for Moderate and Above Moderate-income Households (AB 725): For jurisdictions that are considered Metropolitan, pursuant to Government Code section 65583.2, subdivision (c)(4), the element must identify at least 25 percent of the remaining moderate and above moderate RHNA on sites that allow at least four units of housing (e.g., four plex or greater).
Environmental Constraints: While the element generally describes environmental conditions, it should also describe how those conditions relate to identified sites and evaluate any other known conditions (e.g., shape, easements, contamination) that could preclude or impact housing development on identified sites in the planning period.
Accessory Dwelling Units (ADU): While the element demonstrates a sufficient methodology to utilize ADUs toward the RHNA, the figures differ from HCD’s records.
HCD records show no ADUs reported in 2018 and 13 ADUs reported in 2020. The City should reconcile these differences either in the element or correcting the annual progress reports pursuant to Government Code section 65400.
9.2 p. 322 of 1163
City of Gilroy’s 6th Cycle (2023-2031) Draft Housing Element Page 5 January 27, 2023
Electronic Sites Inventory: Pursuant to Government Code section 65583.3, subdivision (b), upon adoption of the housing element, the City must submit an electronic version of the sites inventory with its adopted housing element to [email protected]. HCD has not received a copy of the electronic inventory. Please note, the City must utilize standards, forms, and definitions adopted by HCD when preparing the sites inventory.
Please see HCD’s housing element webpage at https://www.hcd.ca.gov/planning-andcommunity-development/housing-elements for a copy of the form and instructions. The City can reach out to HCD at [email protected] for technical assistance.
Zoning for a Variety of Housing Types:
• Emergency Shelters: Zoning to permit emergency shelters without discretionary action was required within the first year of the 4th cycle planning period. The element appears to explain that zoning to permit emergency shelters without discretionary action is not available. If this is the case, the element cannot be found in compliance until the appropriate zoning is established since the first year in the 4th cycle of the planning period has lapsed. In addition, the element commits to amend the R4 zone and mentions approximately 10 acres available to accommodate the need for emergency shelters. However, how this acreage overlaps with capacity to accommodate the RHNA is unclear and the element should include specific discussion of available capacity to accommodate the need for emergency shelters separate from capacity to accommodate the RHNA.
The analysis of capacity should also address typical parcel sizes and proximity to transportation and services. If necessary, the element should consider additional zones. Finally, the element should specifically list development standards, identify any potential constraints, including parking and specifically commit to address constraints in Program E-3 (Emergency Shelters Zoning).
For your information, statute was recently amended to specify how to demonstrate suitable sites and sufficient capacity to accommodate the need for emergency shelters. Future submittals may need to address these requirements.
For more information and applicable timing, see HCD’s AB 2993 memorandum at https://www.hcd.ca.gov/sites/default/files/docs/planning-and-community/ab2339- notice.pdf.
• Transitional and Supportive Housing: Transitional housing and supportive housing must be permitted as a residential use in all zones allowing residential uses and only subject to those restrictions that apply to other residential dwellings of the same type in the same zone. (Gov. Code, § 65583, subd. (a)(5).) The City appears to subject transitional and supportive housing for seven or persons to a conditional use permit, unlike other residential uses. The element must either clarify transitional and supportive housing standards are permitted in compliance with statutory requirements or add or revise programs to comply with the statutory requirements.
• Permanent Supportive Housing: Supportive housing shall be a use by-right in zones where multifamily and mixed uses are permitted, including nonresidential
9.2 p. 323 of 1163
City of Gilroy’s 6th Cycle (2023-2031) Draft Housing Element Page 6 January 27, 2023
zones permitting multifamily uses pursuant to Government Code section 65651.
The element must demonstrate compliance with this requirement and include programs as appropriate.
4. An analysis of potential and actual governmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the types of housing identified in paragraph (1) of subdivision (c), and for persons with disabilities as identified in the analysis pursuant to paragraph (7), including land use controls, building codes and their enforcement, site improvements, fees and other exactions required of developers, and local processing and permit procedures... (Gov. Code, § 65583, subd. (a)(5).)
An analysis of potential and actual nongovernmental constraints upon the maintenance, improvement, or development of housing for all income levels, including… …requests to develop housing at densities below those anticipated in the analysis required by subdivision (c) of Government Code section 65583.2 and the length of time between receiving approval for a housing development and submittal of an application for building permits for that housing development that hinder the construction of a locality’s share of the regional housing need in accordance with Government Code section 65584... (Gov. Code, § 65583, subd. (a)(6).)
Land Use Controls: The element must identify and analyze all relevant land use controls impacts as potential constraints on a variety of housing types. The analysis should analyze land use controls independently and cumulatively with other land use controls.
The analysis should specifically address requirements related to parking, heights, lot coverage, allowable density ranges and development standards for the Downtown Specific Plan by zone. The analysis should address any impacts on cost, supply, housing choice, affordability, timing, approval certainty and ability to achieve maximum densities.
In addition, the element concludes the City complies with State Density Bonus Law (SDBL) pursuant to Government Code section 65915 but should include a discussion to support this conclusion or add or modify programs to comply with SDBL. For example, the element should discuss application requirements, decision-making criteria and consistency with various benefits under SDBL such as density bonuses, concessions and incentives, development standard modifications and parking reductions.
Accessory Dwelling Units (ADUs): The element indicates the City modifies its zoning code to ease barriers to the development of ADU’s. However, after a cursory review of the City’s ordinance, the department discovered several areas which were not consistent with State ADU law. This includes, but is not limited to, excessive development standards, requiring existing dwellings to correct nonconforming zoning conditions prior to approval of and ADU, maxim and minimum size restrictions, allowing additional conditions to be imposed by the City Manager, among others. The Department will provide a complete listing of ADU noncompliance issues under a separate cover. As a result, the element should add a program to update the City’s ADU ordinance to comply with State law.
9.2 p. 324 of 1163
City of Gilroy’s 6th Cycle (2023-2031) Draft Housing Element Page 7 January 27, 2023
Building Codes: The element should identify and evaluate any local amendments to the building code for impacts on housing costs.
Fees and Exaction: The element provides a cumulative analysis of fees on various housing types but should also list all the various planning and impact fees, including to better evaluate the impacts on housing development costs. The element should also include a specific analysis on ADU impact fees as a constraint to ADU production.
On/Off Site Improvements: The element states the City requires on and off-site improvements but should also identify subdivision level improvement requirements for a typical development, such as minimum street widths (e.g., 40-foot minimum street width), and analyze their impact as potential constraints on housing supply and cost.
For additional information and a sample analysis, see the Building Blocks at https://www.hcd.ca.gov/planning-and-community-development/housingelements/building-blocks/codes-and-enforcement-and-onsite-offsite-improvementstandards.
Local Processing and Permit Procedures: The element lists procedural steps for permits but should also analyze the procedures for a typical single family and multifamily development complying with zoning. The analysis should address the approval body, the number of public hearing if any, approval findings and any other relevant information. The analysis should address impacts on housing supply (number of units), cost, feasibility, timing and approval certainty.
Constraints on Housing for Persons with Disabilities: The element should analyze potential constraints on housing for persons with disabilities, as follows:
Reasonable Accommodation: The element describes the reasonable accommodation procedure (p. 158) but should specifically analyze decisionmaking criteria such as approval findings. For example, the procedure includes a decision-making factor of potential impacts on surrounding uses – a conditional use permit (CUP) finding which can acts as a constraint. The element should analyze this factor and add or modify programs to address the constraint. • Group Homes: The element indicates group homes for six or less persons and seven or more persons are excluded from the A zone, unlike single family uses.
The element should analyze this as a constraint and include a program to address the constraint. Additionally, group homes for seven or more persons are subject to a CUP. The element should analyze the CUP requirement and add or modify programs to address the constraint.
Nongovernmental Constraints: The element should include a discussion about requests for development at lesser densities than assumptions in the sites inventory. In addition, the element should include a discussion of the typical time between entitlement approval and requests for building permits. The discussion should address any
9.2 p. 325 of 1163
City of Gilroy’s 6th Cycle (2023-2031) Draft Housing Element Page 8 January 27, 2023
hinderances on housing development and programs should be added as appropriate to address constraints.
5. An analysis of opportunities for energy conservation with respect to residential development. Cities and counties are encouraged to include weatherization and energy efficiency improvements as part of publicly subsidized housing rehabilitation projects.
This may include energy efficiency measures that encompass the building envelope, its heating and cooling systems, and its electrical system. (Gov. Code, § 65583, subd. (a)(8).)
Energy Conservation: The element must include analysis of energy conservation opportunities in residential development. The analysis should facilitate the adoption of housing element policies and programs. For example, programs could provide incentives to promote higher density housing along transit, encourage green building techniques and materials in new construction and remodels, promote energy audits and participation in utility conservation programs, and facilitate energy conserving retrofits upon resale of homes. For additional information and sample analysis, see the Building Blocks at https://www.hcd.ca.gov/planning-and-community-development/housingelements/building-blocks/opportunities-energy-conservation.
6. An analysis of existing assisted housing developments that are eligible to change from low-income housing uses during the next 10 years due to termination of subsidy contracts, mortgage prepayment, or expiration of restrictions on use. (Gov. Code, § 65583, subd. (a)(9).)
The analysis of at-risk unit must estimate the total cost of producing new rental housing that is comparable in size and rent levels, to replace the units that could change from low-income use, and an estimated cost of preserving the assisted housing developments. This cost analysis for replacement housing may be done aggregately and does not have to contain a project-by-project cost estimate. The analysis should also reconcile the number of at-risk units with HCD’s records. HCD will send a list of atrisk properties under separate cover.
B. Housing Programs
1. Identify actions that will be taken to make sites available during the planning period with appropriate zoning and development standards and with services and facilities to accommodate that portion of the city’s or county’s share of the regional housing need for each income level that could not be accommodated on sites identified in the inventory completed pursuant to paragraph (3) of subdivision (a) without rezoning, and to comply with the requirements of Government Code section 65584.09. Sites shall be identified as needed to facilitate and encourage the development of a variety of types of housing for all income levels, including multifamily rental housing, factory-built housing, mobilehomes, housing for agricultural employees, supportive housing, single-room occupancy units, emergency shelters, and transitional housing. (Gov. Code, § 65583, subd. (c)(1).
9.2 p. 326 of 1163
City of Gilroy’s 6th Cycle (2023-2031) Draft Housing Element Page 9 January 27, 2023
As noted in Finding A3, the element does not include a complete site analysis; therefore, the adequacy of sites and zoning were not established. Based on the results of a complete sites inventory and analysis, the City may need to add or revise programs to address a shortfall of sites or zoning available to encourage a variety of housing types. In addition, the element should be revised, as follows:
• Program A-2 (City-owned Lands): The Program should go beyond reviewing parcels and commit to a schedule of actions to facilitate development, including numerical objectives.
• Program E-3 (Emergency Shelter Zoning): The Program should be modified with specific commitment to amend zoning based on the outcomes of a complete analysis as noted in Finding A3. Specific commitment includes listing the actual standards that will be revised. In addition, the Program should specifically commit to permit emergency shelters without discretionary action.
2. Assist in the development of adequate housing to meet the needs of extremely low-, very low-, low-, and moderate-income households Gov. Code, § 65583, subd. (c)(2).) The element must include a program(s) to assist in the development of housing affordable to lower-income households, including extremely low-income (ELI) and special needs households, as follows:
• Program D-4 (Pursue Funding for Affordable Housing): The Program should specifically commit to annual outreach with affordable housing developers to identify development opportunities and provide assistance such as supporting funding application, providing funding, incentives and concessions beyond SDBL, fee waivers and priority processing.
• Extremely Low-income and Special Needs Households: Programs must be revised or added to assist in the development of housing for ELI and special needs households. Program actions could include assisting with funding applications, prioritizing some funding for housing developments, offering financial incentives or regulatory concessions to encourage the development of housing types, such as multifamily, single-room occupancy (SRO) units. For additional information, see the Building Blocks at
https://www.hcd.ca.gov/planning-and-community-development/housingelements/building-blocks/extremely-low-income-housing-needs. • Farmworkers: the element should include specific commitment to address the needs of farmworkers. For example, the element could commit to proactive actions to coordinate with nonprofit developers, employers, and other related organizations, to explore funding and incentives and to identify specific development opportunities.
3. Address and, where appropriate and legally possible, remove governmental and nongovernmental constraints to the maintenance, improvement, and development of
9.2 p. 327 of 1163
City of Gilroy’s 6th Cycle (2023-2031) Draft Housing Element Page 10 January 27, 2023
housing, including housing for all income levels and housing for persons with disabilities. The program shall remove constraints to, and provide reasonable accommodations for housing designed for, intended for occupancy by, or with supportive services for, persons with disabilities. (Gov. Code, § 65583, subd. (c)(3).) As noted in Finding A4, the element requires a complete analysis of potential governmental and nongovernmental constraints. Depending upon the results of that analysis, the City may need to revise or add programs and address and remove or mitigate any identified constraints.
4. Promote and affirmatively further fair housing opportunities and promote housing throughout the community or communities for all persons regardless of race, religion, sex, marital status, ancestry, national origin, color, familial status, or disability, and other characteristics... (Gov. Code, § 65583, subd. (c)(5).)
As noted in Finding A1, the element must include a complete analysis of AFFH. The element must be revised to add goals and actions based on the outcomes of a complete analysis. Goals and actions must specifically respond to the analysis and to the identified and prioritized contributing factors to fair housing issues and must be significant and meaningful enough to overcome identified patterns and trends. Actions must have specific commitment, milestones, geographic targeting and metrics or numeric objectives and, as appropriate, must address housing mobility enhancement, new housing choices and affordability in higher opportunity or income areas, placebased strategies toward community revitalization and displacement protection.
5. Develop a plan that incentivizes and promotes the creation of accessory dwelling units that can be offered at affordable rent... (Gov. Code, § 65583, subd. (c)(7).) Program A-6 (ADU Tracking and Monitoring): While the Program commits to annually track ADU production, it should also track ADU affordability and should include discrete timing and specific commitment if ADU assumptions are not realized such as committing to additional incentives and rezoning within six months.
C. Quantified Objectives
Establish the number of housing units, by income level, that can be constructed, rehabilitated, and conserved over a five-year time frame. (Gov. Code, § 65583, subd. (b) (1 & 2).)
While the element includes quantified objectives for new construction, rehabilitation, and conservation by income group; it should consider quantified objectives for conservation (beyond at-risk preservation). For your information, the quantified objectives do not represent a ceiling, but rather set a target goal for the City to achieve, based on needs, resources, and constraints.
9.2 p. 328 of 1163
City of Gilroy’s 6th Cycle (2023-2031) Draft Housing Element Page 11 January 27, 2023
D. General Plan Consistency
In construing the provisions of this article, the Legislature intends that the general plan and elements and parts thereof comprise an integrated, internally consistent and compatible statement of policies for the adopting agency. (Gov. Code, § 65300.5) While the element discusses how internal consistency will be achieved with other elements of the general plan as part of the housing element update, it should also discuss how internal consistency will be maintained throughout the planning period. For example, the element could include a program to conduct an internal consistency review of the General Plan as part of the annual General Plan implementation report required by Government Code section 65400. The annual report can also assist future updates of the housing element. For additional information and a sample program, see the Building Blocks at https://www.hcd.ca.gov/planning-and-community-development/housing-elements/buildingblocks/analysis-consistency-general-plan-and-coastal-zone-requirements.
E. Water and Sewer Priority
The housing element adopted by the legislative body and any amendments made to that element shall be immediately delivered to all public agencies or private entities that provide water or sewer services for municipal and industrial uses, including residential, within the territory of the legislative body. Each public agency or private entity providing water or sewer services shall grant a priority for the provision of these services to proposed developments that include housing units affordable to lower income households. (Gov.
Code, § 65589.7)
Program E-1 (Priority Water and Sewer Service): If the City is the water or sewer provider, the Program should specifically commit to establish a written procedure to grant priority service to developments with units affordable to lower-income households. In addition, local governments are required to immediately deliver the housing element to water and sewer service providers.
F. Public Participation:
Local governments shall make a diligent effort to achieve public participation of all economic segments of the community in the development of the Housing Element, and the element shall describe this effort. (Gov. Code, § 65583, subd.(c)(9).) While the element includes a general summary of the public participation process, it must also summarize the public comments and describe how they were considered and incorporated into the element. For additional information, see the Building Blocks at https://www.hcd.ca.gov/planning-and-community-development/housing-elements/buildingblocks/public-participation.
9.2 p. 329 of 1163
Housing Element Completeness Checklist 1/1/2021
HOUSING ELEMENT COMPLETENESS CHECKLIST
A Quick Reference of Statutory Requirements for
Housing Element Updates
Updated 1/2021
The purpose of this completeness checklist is to assist local governments in the preparation of their housing element. It includes the statutory requirements of Government Code section 65580 – 65588. Completion of this checklist is not an indication of statutory compliance but is intended to provide a check to ensure that relevant requirements are included in the housing element prior to submittal to the Department of Housing and Community Development pursuant to Government Code section 65585(b). For purposes of the Checklist the term “analysis” is defined as a description and evaluation of specific needs, characteristics, and resources available to address identified needs.
For technical assistance on each section visit California Housing and Community Development Building Blocks Technical Assistance (https://www.hcd.ca.gov/communitydevelopment/building-blocks/index.shtml)
9.2 p. 330 of 1163
Housing Element Completeness Checklist 1/1/2021 2
Checklist
Public Participation
Government Code section 65583, subdivision (c)(8)
Description of Requirement Page
Number
Description of the diligent efforts the jurisdiction made to include all economic segments of the community and/or their representatives in the development and update of the housing element
Summary of the public input received and a description of how it will be considered and incorporated into the housing element.
Review and Revise
Government Code section 65588, subdivision (a)
Description of Requirement Page
Number
Progress in implementation – A description of the actual results or outcomes of the previous element’s goals, objectives, policies, and programs (e.g. what happened).
Effectiveness of the element – For each program, include an analysis comparing the differences between what was projected or planned in the element and what was achieved.
Appropriateness of goals, objectives, policies, and programs –A description of how the goals, objectives, policies, and programs in the updated element are being changed or adjusted to incorporate what has been learned from the results of the previous element. (e.g. continued, modified, or deleted.) Special needs populations – Provide a description of how past programs were effective in addressing the housing needs of the special populations. This analysis can be done as part of describing the effectiveness of the program pursuant to (2) if the jurisdiction has multiple programs to specifically address housing needs of special needs populations or if specific programs were not included, provide a summary of the cumulative results of the programs in addressing the housing need terms of units or services by special need group.
AB 1233 – Shortfall of sites from the 5th cycle planning period – Failure to implement rezoning required due to a shortfall of adequate sites to accommodate the 5th cycle planning period RHNA for lower-income households triggers the provisions of Government Code section 65584.09.
Comments:
1-4, 80-82 4-10, 81 9-25 9-25 9-25
3-7
2-3
9.2 p. 331 of 1163
Housing Element Completeness Checklist 1/1/2021 3
Housing Needs Assessment – Quantification and Analysis of Need Government Code section 65583, subdivision (a)(1)(2) and section 65583.1, subdivision (d)
For information on how to credit reductions to RHNA See “Housing Element Sites Inventory Guidebook” at HCD’s technical assistance memos (https://www.hcd.ca.gov/communitydevelopment/housing-element/housing-element-memos.shtml) Description of Requirement Page
Number
Population (e.g., by age, size, ethnicity, households by tenure) and employment trends
Household characteristics including trends, tenure, overcrowdings and severe overcrowding
Overpayment by income and tenure
Existing housing need for extremely low-income households Projected housing needs: Regional Housing Needs Allocation (RHNA) by income group, including projected extremely low-income households Housing stock conditions, including housing type, housing costs, vacancy rate Estimate of the number of units in need of replacement and rehabilitation Identification and Analysis of the Housing Needs for Special Needs Populations
Government Code section 65583, subdivision (a)(7)
Description of Requirement Page
Number
Elderly
Persons with Disabilities, including Developmental Disabilities Large Households
Farmworkers (seasonal and permanent)
Female Headed Households
Homeless (seasonal and annual based on the point in time count Optional: Other (e.g. students, military)
Comments:
29-38 36-46 43-45 722836-43 53-54 61-64 56-61 64-67 70-72 66-67 67-70 NA
9.2 p. 332 of 1163
Housing Element Completeness Checklist 1/1/2021 4
Affirmatively Further Fair Housing - An Assessment of Fair Housing – Required for Housing Element due after 1/1/2021.
Government Code section 65583, subdivision (c)(10)(A)
Part 1 Outreach
Description of Requirement Page
Number
Does the element describe and incorporate meaningful engagement that represents all segments of the community into the development of the housing element, including goals and actions?
Part 2 Assessment of Fair Housing
Description of Requirement Page
Number
Does the element include a summary of fair housing enforcement and capacity in the jurisdiction?
The element must include an analysis of these four areas:
Integration and segregation patterns and trends
Racially or ethnically concentrated areas of poverty
Disparities in access to opportunity
Disproportionate housing needs within the jurisdiction, including displacement risk
Each analysis should include these components:
Local: Review and analysis of data at a local level
Regional impact; Analysis of local data as it compares on a regional level Trends and patterns: Review of data to identify trends and patterns over time Other relevant factors, including other local data and knowledge Conclusion and findings with a summary of fair housing issues Part 3 Sites Inventory
Description of Requirement Page
Number
Did the element identify and evaluate (e.g., maps) the number of units, location and assumed affordability of identified sites throughout the community (i.e., lower, moderate, and above moderate income RHNA) relative to all components of the assessment of fair housing?
Did the element analyze and conclude whether the identified sites improve or exacerbate conditions for each of the fair housing areas (integration and segregation, racially and ethnically concentrated areas of poverty, areas of opportunity, disproportionate housing needs including displacement)? Comments:
2-10 88-90 90-108 108-114 114-129 129-140
225-245 225-245
■
■
■
■
■
9.2 p. 333 of 1163
Housing Element Completeness Checklist 1/1/2021 5
Part 4 Identification of Contributing Factors
Description of Requirement Page
Number
Did the element identify, evaluate, and prioritize the contributing factors to fair housing issues?
Part 5 Goals and Actions Page
Description of Requirement Page
Number
Did the element identify, goals and actions based on the identified and prioritized contributing factors?
Do goals and actions address mobility enhancement, new housing choices and affordability in high opportunity areas, place-based strategies for preservation and revitalization, displacement protection and other program areas? Programs must include the following components:
Actions must be significant, meaningful and sufficient to overcome identified patterns of segregation and affirmatively further fair housing.
Metrics and milestones for evaluating progress on programs/actions and fair housing results.
Affordable Housing Units At-Risk of Conversion to Market Rate Government Code section 65583, subdivision (a)(9)
See Preserving Existing Affordable Housing (https://www.hcd.ca.gov/policyresearch/preserving-existing-affordable-housing.shtml) Description of Requirement Page
Number
Provide an inventory of units at-risk of conversion from affordable to market-rate rents within 10 years of the beginning of the planning period. The inventory must list each development by project name and address, the type of governmental assistance received, the earliest possible date of change from low-income use, and the total number of elderly and nonelderly units that could be lost from the locality’s low-income housing stock in each year.
Provide an estimate and comparison of replacement costs vs. preservation costs
Identify qualified entities to acquire and manage affordable housing Identify potential funding sources to preserve affordable housing Comments:
147-150 151-152
153-162
52-53
53-54 51-52 54-55 ■
■
9.2 p. 334 of 1163
Housing Element Completeness Checklist 1/1/2021 6
Analysis of Actual and Potential Governmental Constraints Government Code section, 65583, subdivisions (a)(5), (a)(4), (c)(1), and section 65583.2, subdivision (c)
See “Accessory Dwelling Unit Handbook” at HCD’s Accessory Dwelling Unit Assistance page (https://www.hcd.ca.gov/policy-research/accessorydwellingunits.shtml) Description of Requirement Page
Number
Land use controls (e.g. parking, lot coverage, heights, unit size requirements, open space requirements, Accessory Dwelling Unit (ADU) requirements, floor area ratios, growth controls (e.g., caps on units or population or voter approval requirements, conformance with the requirements of SB 330), inclusionary requirements, consistency with State Density Bonus Law and Housing Accountability Act, and consistency with zoning and development standard website publication and transparency requirements pursuant to Gov. Code § 65940.1 subd. (a)(1)(B)).
Local processing and permit procedures (e.g., typical processing times, permit types/requirements by housing type and zone, decision making criteria/findings, design/site/architectural review process and findings, description of standards [objective/subjective], planned development process). Element should also describe whether the jurisdiction has a process to accommodate SB 35 streamline applications and by-right applications for permanent supportive housing and navigation centers.
Building codes and their enforcement (e.g., current application of the California Building Code, any local amendments, and local code enforcement process and programs)
On and Off-Site improvement requirements (e.g., street widths, curbing requirements)
Fees and other exactions (e.g., list all fees regardless of entity collecting the fee, analyze all planning and impact fees for both single family and multifamily development, provided typical totals and proration to total development costs per square foot, and consistency with fee website publication and transparency requirements pursuant to Gov. Code § 65940.1 subd. (a)(1)(A)).
Housing for persons with disabilities (e.g. definition of family, concentrating/siting requirements for group homes, reasonable accommodation procedures, application of building codes and ADA requirements, zoning for group homes and community care facilities)
Analysis of locally-adopted ordinances that directly impact the cost and supply of housing (e.g. inclusionary ordinance, short-term rental ordinance) Comments:
162-178 187-196
197 1998-200
191-194 196-197
184-187
9.2 p. 335 of 1163
Housing Element Completeness Checklist 1/1/2021 7
An Analysis of Potential and Actual Nongovernmental Constraints Government Code section, 65583, subdivision (a)(6)
Description of Requirement Page
Number
Availability of financing
Price of land
Cost of Construction
Requests to develop housing below identified densities in the sites inventory and analysis
Typical timeframes between approval for a housing development project and application for building permits
Does the analysis demonstrate the jurisdiction’s action(s) to mitigate nongovernmental constraints that create a gap between planning for housing to accommodate all income levels and the construction of housing to accommodate all income levels? Zoning for a Variety of Housing Types
Government Code section, 65583, subdivisions (a)(4), (c)(1), and subdivision 65583.2 subdivision (c)
Provide an analysis of zoning and availability of sites for a variety of housing types including the following:
Description of Requirement Page
Number
Multifamily Rental Housing
Housing for Agricultural Employees (permanent and seasonal) (compliance with Health and Safety Code sections 17021.5, 17021.6, and 17021.8 Emergency Shelters (including compliance with new development/parking standards pursuant to AB 139/Gov. Code § 65583 subd. (a)(4)(A)).
Low Barrier Navigation Centers
Transitional Housing
Supportive Housing (including compliance with AB 2162, statutes of 2019) Single-Room Occupancy Units
Manufactured homes, including compliance with Gov. Code § 65852.3 Mobile Home Parks
Accessory Dwelling Units
Comments:
197-198 196 197 195-196 181-184 134 134 176-177 177-178 178 178 178 178 178 176 ■
9.2 p. 336 of 1163
Housing Element Completeness Checklist 1/1/2021 8
Site Inventory and Analysis
Government Code, section 65583, subdivision (a)(3), section 65583.1, subdivision See “Housing Element Sites Inventory Guidebook” and “Default Density Standard Option” at HCD’s technical assistance memos (https://www.hcd.ca.gov/communitydevelopment/housing-element/housing-element-memos.shtml) See Site Inventory Form (https://www.hcd.ca.gov/community-development/housingelement/docs/Site_inventory_template09022020.xlsm) and Site Inventory Form Instructions (https://www.hcd.ca.gov/community-development/housingelement/docs/Site_inventory_instructions.pdf) Site Inventory – The site inventory must be prepared using the form adopted by HCD.
A electronic copy of the site inventory is due at the time the adopted housing element is submitted to HCD for review and can be sent to [email protected].
Site Inventory
Description of Requirement Page
Number
Sites Inventory Form Listing: Parcel listing by parcel number, size, general plan and zoning, existing uses on non-vacant sites, realistic capacity, level of affordability by income group, publicly owned sites (optional).
Prior Identified Sites: Address whether sites are adequate to accommodate lower income needs based on identification in the prior planning period for nonvacant sites or two or more for vacant sites.
Map of sites
Did the jurisdiction use the sites inventory form adopted by HCD? Site Inventory Analysis and Methodology
Description of Requirement Page
Number
RHNA Progress: List the number of pending, approved or permitted units by income group based on actual or anticipated sales prices and rents since the beginning of the projection period
Environmental Constraints: Address any known environmental or other constraints, conditions or circumstances, including mitigation measures, that impede development in the planning period
Appropriate density: Identification of zoning to accommodate RHNA for lowerincome households:
• Identify zones meeting the “default” density (Gov. Code § 65583.2 subd. (c)(3)(B)) or;
• Identify and analyze zones with densities less than the “deemed appropriate” (default) density that are appropriate to accommodate lower RHNA.
Comments:
222-231 222-231
297
206-207 211-214
211
■
9.2 p. 337 of 1163
Housing Element Completeness Checklist 1/1/2021 9
Description of Requirement Page
Number
Capacity: Describe the methodology used in quantifying the number of units that can be accommodated on each APN:
• If development is required to meet a minimum density, identify the minimum density, or;
• Describe the methodology used to determine realistic capacity accounting for land use controls and site improvement requirements, typical density trends for projects of similar affordability, and current or planned infrastructure. • For sites with zones allowing non-residential uses, demonstrate the likelihood of residential development
Infrastructure: Existing or planned infrastructure to accommodate the regional housing need, including water, sewer and dry utilities
Small and large sites: Sites identified to accommodate lower RHNA that are less than one-half acre or larger than 10 acres require analysis to establish they are adequate to accommodate the development of affordable units.
Affirmatively Furthering Fair Housing: Identified sites throughout the community that affirmatively furthers fair housing (see page 5 of checklist) Nonvacant Sites Analysis: For nonvacant sites, demonstrate the potential and likelihood of additional development within the planning period based on extent to which existing uses may constitute an impediment to additional residential development, past experience with converting existing uses to higher density residential development, current market demand for the existing use, any existing leases or other contracts that would perpetuate the existing use or prevent redevelopment of the site for additional residential development, development trends, market conditions, and regulatory or other incentives or standards to encourage additional residential development on these sites If nonvacant sites accommodate 50 percent or more of the lower-income RHNA, demonstrate the existing use is not an impediment to additional development and will likely discontinue in the planning period, including adopted findings based on substantial evidence.
Nonvacant sites that include residential units (either existing or demolished) that are/were occupied by, or subject to, affordability agreements for lower-income households within 5 years are subject to a housing replacement program. (Gov.
Code § 65583.2 subd. (g)(3))
Please note: This checklist does not include new requirements related to zoning for sites accommodating the moderate and above moderate income pursuant to AB 725, statutes of 2020 as this requirement is not enacted until 2022.
Comments:
207-208
219-241 N/A 83-127
221-241
N/A 221-241
9.2 p. 338 of 1163
Housing Element Completeness Checklist 1/1/2021 10
Alternative Methods to Accommodate the RHNA: Optional
Description of Requirement Page
Number
Accessory Dwelling Units: Analyze the number and affordability level of ADU units projected to be built within the planning period, including resources and incentives and other relevant factors such as potential constraints, and the likelihood of availability for rent
Existing Residential Units: number and affordability level of units rehabilitated, converted or preserved that meet the provisions of alternative adequate sites. In addition, this includes units in a motel, hotel, or hostel that are converted to residential units and made available to persons experiencing homelessness as part of a COVID-19 response and acquisition of mobile home park. If using this option, the adequate site alternative checklist must be provided.
Other: Jurisdictions are encouraged to consult with HCD regarding other alternative methods options including new manufactured housing park hookups, floating homes/live aboard berths, conversion of military housing, adaptive reuse of commercial uses, or other housing opportunities unique to the community to ensure their adequacy to accommodate RHNA.
Other Miscellaneous Requirements
Also see Technical Advisories issued by the Governor’s Office of Planning and Research at:
New state legislation related to General Plans Appendix C (http://opr.ca.gov/docs/OPR_Appendix_C_final.pdf) and Fire Hazard Planning General Plan Technical Advice Series (http://opr.ca.gov/docs/Final_6.26.15.pdf) Description of Requirement Page
Number
Description of the means by which consistency with the general plan will be achieved and maintained. (Gov. Code § 65583 subd. (c)(8)) Description of construction, demolition, and conversion of housing for lowerand moderate-income households within the Coastal Zone (if applicable). (Gov.
Code § 65588 subds. (c) and (d))
Description of opportunities for energy conservation in residential development. (Gov. Code § 65583 subd. (a)(8))
Description of consistency with water and sewer priority requirements pursuant to SB 1087 (Gov. Code § 65589.7)
Other elements of the general plan triggered by housing element adoption:
• Disadvantaged Communities (Gov. Code § 65302.10)
• Flood Hazard and Management (Gov. Code § 65302 subds. (d)(3) and (g)(2)(B))
• Fire Hazard (Gov. Code § 65302 and 65302.5)
• Environmental Justice (Gov. Code § 65302 subd. (h))
• Climate Adaptation
Comments:
216-217
NANA
158-166
NA
202-203 201
NA
9.2 p. 339 of 1163
Housing Element Completeness Checklist 1/1/2021 11
Schedule of Actions/Programs
Government Code, section 65583, subdivisions (c)(1 – 7), and (10) For adequate site programs See “Housing Element Sites Inventory Guidebook” at HCD’s technical assistance memos (https://www.hcd.ca.gov/community-development/housingelement/housing-element-memos.shtml) Program Description Program numbers Page
number
Program(s) to provide adequate sites (large/small
sites, incentives for mixed use/nonvacant sites,
publicly owned sites, annexation, etc)
If required: Program to accommodate a shortfall
of adequate sites to accommodate the lower
RHNA. This program must meet the specific
criteria identified in Gov. Code § 65583.2 subd.
(h) and (i).
If required: Program to accommodate an
unaccommodated need from the previous
planning period pursuant to Gov code §
65584.09
If required: Program when vacant/nonvacant
sites to accommodate lower RHNA have been
identified in multiple housing elements, if
needed. (Gov. Code § 65583.2 subd. (c))
If required: Program to provide replacement
units when occupied by, or deed restricted to
lower-income households within the last 5 years,
if needed. (Gov. Code § 65583.2 subd. (g)(3))
Program(s) to assist in the development of housing to
accommodate extremely-low, very-low, low or
moderate-income households, including special
needs populations
Program to address governmental and
nongovernmental constraints to the maintenance,
improvement, and development of housing
Program(s) to conserve and improve the condition of
the existing affordable housing stock
Comments:
255-265
255 255 256-284 266-269 271-272 A-1 - A-16A-1 A-1 A-2, A-12, D-4, E-11-13 B-1 - B-9 C-1 , C-2
9.2 p. 340 of 1163
Housing Element Completeness Checklist 1/1/2021 12
Program Description Program numbers Page
number
Program(s) to promote and affirmative further fair
housing opportunities
Program(s) to preserve units at-risk of conversion
from affordable to market-rate rents.
Program(s) to incentivize and promote the creation of
accessory dwelling units that can be offered at an
affordable rent.
Do programs specify specific clear commitment, meaningful actions, that will have beneficial impact within the planning period?
Do programs identify timing, objectives (quantified where appropriate), and responsible parties, if appropriate for implementation?
Quantified Objectives
Government Code, section 65583, subdivisions (b)
For an example table addressing this requirement visit California Housing and Community Development Building Blocks (https://www.hcd.ca.gov/community-development/buildingblocks/program-requirements/program-overview.shtml) Description of Requirement Page
Number
Estimate the number of units likely to be constructed, rehabilitated and conserved or preserved by income level, including extremely low-income, during the planning period
Comments:
285-288 271,274 255-291 253 F1 - F5 C-1,C-6 A-1,6,7,8,0,15, G-3 ■
■
9.2 p. 341 of 1163
City of Gilroy Response to Comment Matrix
HCD Letter Dated 01-27-23
1 HCD Comment Chapter /
Page Number City Response - HEU Revisions / Programs
AFFIRMATIVELY FURTHERING FAIR HOUSING (AFFH)
Fair Housing Enforcement and Capacity: The housing element must include a summary of fair housing enforcement and outreach capacity.
The analysis must address how the City complies with state and federal fair housing laws, including regulations, lawsuits, and related enforcement actions. The element should also quantify local complaints and discuss characteristics relative to protected characteristics (e.g., disability, race, familial status).
Fair Housing
Enforcement and
Outreach
Capacity/98-100
Fair Housing Enforcement and Capacity: Added information regarding fair housing enforcement and outreach capacity, including data from the Department of Housing and Urban Development’s Office of Fair Housing and Equal Opportunity (FHEO). Noted that there are no active lawsuits in the City. Local data was also collected from Project Sentinel, regarding the number of calls received on behalf of the City since 2017 and the number of cases managed since 2015. Local data included the type of complaint, age of complainant, and racial characteristics as requested by HCD.
Segregation and Integration (Income): The element discusses areas of higher concentration of lower and moderate-income households and poverty, including coincidences with race. However, the element should also consider American Community Survey data for income categories related to median incomes and discuss areas of relatively higher income then expand the discussion of income using local data and knowledge as well as other relevant factors like zoning and land use.
Figure 14:
Households per
Income Level, 2021
and Figure 15:
Median Household
Income, 2019/107-
109
Segregation and Integration (Income): Added data from the American Community Survey (ACS) on the quantity of the population within each household income level in the City.
Included a chart on households per income level and a map showing median income by census tract. Included local data on historical land use patterns in the eastern and western portions of the City. Modified Program A-10 to provide more flexibility in the type of units allowed under SB 9 by allowing triplexes and fourplexes as an alternative design to a traditional duplex with an ADU or a junior ADU. This program will encourage the development of middle-income housing throughout the City, including high-resource areas primarily comprised of detached single-family residences.
Racially and Ethnically Concentrated Area of Poverty (RECAP): While the element identifies the RECAP and discusses some current efforts such as the environmental justice element, it should expand the discussion of this area to better formulate appropriate policies and programs. For example, the element could examine and compare the quality of life relative to other neighborhoods (e.g., parks, streetscapes, schools, safe routes to schools, infrastructure, community amenities, housing conditions, neighborhood conditions).
R/ECAPs/118-123 Racially and Ethnically Concentrated Area of Poverty (RECAP): Added more analysis of recent improvements to streetscapes and amenities in the R/ECAP. Included a map of year structures were built to illustrate why housing conditions may be different in the R/ECAP than elsewhere in the City. Included map and location of curb and ADA improvements in the R/ECAP funded by CDBG. Added local data analysis by code enforcement staff regarding concentrations of health care facilities, transit, and employment opportunities in the R/ECAP.
9.2 p. 342 of 1163
City of Gilroy Response to Comment Matrix
HCD Letter Dated 01-27-23
2 HCD Comment Chapter /
Page Number City Response - HEU Revisions / Programs
Disproportionate Housing Needs: The element includes some general information on persons experiencing homelessness and housing conditions but should also evaluate those needs, impacts and patterns within the City, such as areas of higher need. For homelessness, the element should examine disproportionate impacts on protected characteristics (e.g., race, disability) and patterns of need, including access to transportation and services. For housing conditions, the element should discuss any areas of potentially higher needs of rehabilitation and replacement. The element may utilize local data and knowledge such as service providers and code enforcement officials to assist this analysis.
Substandard
Housing/141-148
Disproportionate Housing Needs: Included local data from code enforcement staff, the City’s Quality of Life officer, and the South County Compassion Center regarding the unhoused population including location concentrations, migration patterns, use of transit and services, and general characteristics such as race and mental illness. Added local data on the number of dwelling units in Gilroy in need of rehabilitation or repair.
Affirmatively Furthering Fair Housing (AFFH) and Identified Sites: The element includes some discussion of identified sites to accommodate the regional housing needs allocation (RHNA) and fair housing conditions. For example, the element discusses the low and moderate-income RHNA in areas of higher concentrations of lower and moderate-income households. But the discussion should address the RHNA for all income categories by location instead of fair housing categories to better evaluate whether identified sites exacerbate or improve fair housing conditions.
The discussion should also quantify the RHNA by income group and location and evaluate impacts on existing patterns. For example, the element could quantify the lower, moderate and above moderate-income RHNA in the central eastern part of the City, discuss impacts on the existing number of households relative to socio-economic characteristics (e.g., income, TCAC resource, overpayment, displacement) and then evaluate whether the inventory exacerbates or improves fair housing conditions. This same analysis should be performed for the northwestern and other parts of the City.
City Overview/92-
97 Affirmatively Furthering Fair Housing (AFFH) and Identified Sites: Added a table to compare census tracts in the City and to show that there is no significant, pervasive pattern of segregation that could be exacerbated by site selection or location. Included a map to show the bounds of the census tracts that intersect with Gilroy to illustrate that many discrepancies in the opportunity scoring may be due to land uses outside the City bounds.
Cited programs that promote housing mobility and housing options of various income levels in high opportunity areas.
9.2 p. 343 of 1163
City of Gilroy Response to Comment Matrix
HCD Letter Dated 01-27-23
3 HCD Comment Chapter /
Page Number City Response - HEU Revisions / Programs
Local Data and Knowledge: The element must include local data, knowledge, and other relevant factors to discuss and analyze any unique attributes about the City related to fair housing issues. The element should complement federal, state, and regional data with local data and knowledge where appropriate to capture emerging trends and issues, including utilizing knowledge from local and regional advocates and service providers, City staff and related local and county planning documents.
Other Contributing
Factors/151-154
Persons with
Disabilities 117-
118
Local Data and Knowledge: Included discussions with service providers regarding developmental disabilities and fair housing complaints. Included survey data from local farmworkers, seniors, and the City’s youth regarding the top housing issues they face.
Included local data from planning staff, code enforcement staff, the City’s Quality of Life officer, Project Sentinel, and the South County Compassion Center on various issues throughout the Housing Element text.
Other Relevant Factors: The element must include other relevant factors that contribute to fair housing issues in the City. For instance, the element can analyze historical land use (zoning, ballot initiatives, growth controls), information about redlining/greenlining, disinvestment, and other issues that impacted socio-economic patterns complemented by the state and federal data.
Other Contributing
Factors/151-154
Other Relevant Factors: Expanded discussion of historical land use patterns, including racial covenants in other Santa Clara County cities. Included local data from the City’s Historical Context Statement, which presents the history of Gilroy’s built environment that contributed to the current land use patterns in the City. Added a discussion of the Urban Growth Boundary and the ballot initiative (Measure H) that led to its creation.
Contributing Factors to Fair Housing Issues: Based on the outcomes of a complete analysis, the element should re-assess contributing factors and particularly prioritize those factors then formulate appropriate policies and programs.
Contributing
Factors/154-166
Contributing Factors to Fair Housing Issues: Based on the need to provide more housing opportunities outside the R/ECAP, the City added Program A-10 to allow triplexes and fourplexes on corner lots in the R-1 and R-2 zoning districts. This program will encourage the development of middle-income housing in high-resource areas primarily comprised of detached single-family residences. Programs A-11 (Inclusionary Policy) and A-12 (Incentives Beyond Density Bonus State Law) will facilitate affordable housing opportunities in the City’s higher resource / higher income areas. Program F-3 (Place-Based Improvements in Downtown Gilroy) will improve conditions in the City’s R/ECAP area.
Program G-2 (Community Outreach and Inclusion in the Decision-Making Process) includes geographic targeting in the R/ECAP area. Similarly, Program G-4 (Increased Outreach in Downtown Areas) directs the city to consider the viewpoints and concerns of all
9.2 p. 344 of 1163
City of Gilroy Response to Comment Matrix
HCD Letter Dated 01-27-23
4 HCD Comment Chapter /
Page Number City Response - HEU Revisions / Programs
neighborhoods within Gilroy, and specifically the R/ECAP area when drafting the HighSpeed Rail Station Area Plan and when updating the Downtown Specific Plan. Under Program G-7 (Bilingual Engagement), the City will increase Spanish language engagement given the City’s large Hispanic population which is further facilitated by the recent expansion of the City’s bilingual pay benefits, which should increase the number of bilingual staff available to assist the Spanish-speaking community.
HOUSING NEEDS
Extremely Low-Income (ELI) Households: The element (p. 71) reports that approximately 80 percent of ELI households experience housing problems then, with no further discussion, concludes the City is preparing an inclusionary requirements and density bonus ordinance. While inclusionary and density bonuses can be meaningful policies, the element should examine the needs of ELI households to better formulate policies and programs. The analysis should evaluate tenure, overcrowding, overpayment, disproportionate impacts relative to other income groups, resources, past strategies and their effectiveness and magnitude of housing needs.
Extremely LowIncome
Households/82-85
Extremely Low-Income (ELI) Households: The element includes Table 21, which shows overpayment by tenure compared between each income level. CHAS data was added to show rates of overcrowding for ELI households compared to all income levels. The element includes a discussion of how overcrowding occurs when extremely low-income households cannot afford residential units with sufficient size to accommodate a large household.
Under Program E-11, the City will facilitate and support affordable housing for extremely low income and special needs households by meeting with and assisting affordable housing developers and homeless service providers, and pursuing funding sources, to assist special needs households, such as extremely low-income households, farmworkers, large families, seniors, and persons with disabilities. Under Program A-12, the City will develop a policy to incentive housing for large households, extremely low-income households, farmworkers, and households with members with intellectual or developmental disabilities.
Housing Conditions: The element discusses housing units by age, number of units lacking plumbing and kitchen facilities and recent code enforcement activities but should still estimate (City-wide) the number of units in need of rehabilitation and replacement.
Housing
Conditions/61
Substandard
Housing/141-142
Housing Conditions: Included local data from the City's code enforcement officers regarding neighborhoods with housing conditions in potentially higher need of rehabilitation and replacement. Included local data on the estimated number of units in need of repair or replacement in the City.
Special Housing Needs: While the element includes some quantification of special housing needs, it must still analyze those needs. The analysis Special Housing
Needs/66-85
Special Housing Needs: The unhoused analysis was updated to reflect the 2022 Point in Time homeless count. Included local data from a Developmental Disabilities Housing
9.2 p. 345 of 1163
City of Gilroy Response to Comment Matrix
HCD Letter Dated 01-27-23
5 HCD Comment Chapter /
Page Number City Response - HEU Revisions / Programs
should include, but is not limited to, factors such as trends, household income, tenure, housing types, zoning, available resources, effectiveness of past strategies and an evaluation of the magnitude of the need. Local officials, special needs service providers, or social and health service providers may be able to assist with information to complete the analysis.
In addition, the analysis should quantify the number of persons with developmental disabilities as well as update homelessness numbers from the most recent PIT count.
Needs Analysis provided by Housing Choices (e.g., unique needs of disabled individuals, needed housing types, the number of people with a developmental disability in the City by age and living arrangement). Included local data from meetings with intellectually and developmentally disabled (I/DD) individuals, their caregivers, and staff from Housing Choices and the San Andreas Regional Center. Included information on Villa Esperanza, a facility that provides low-income apartment units and services for persons with disabilities.
Included local data from surveys focused on housing issues experienced by farmworkers, seniors, and Gilroy youth.
To further accommodate and facilitate housing for special needs households, the City modified programs A-2 (Surplus Lands/Affordable Housing on City-Owned Sites) and E-7 (housing for farmworkers) and added Programs E-10 (housing for disabled persons), E-11 (housing for ELI/special needs households), and E-12 (flexible standards for projects that accommodate extremely low-income and Special Needs Households). Program G-1 (Collaboration with Development Community) was amended to specifically contact affordable housing developers and developers of special needs households for their participation in the annual developer roundtable meeting, with the goal of at least four participating in the annual roundtable.
SITES
Progress toward the RHNA: While the element may utilize constructed, permitted, approved and pending projects toward the RHNA, it must also demonstrate their availability in the planning period. Availability should confirm the projects have not been reported before the beginning of the projection period (June 30, 2022) and account for the likelihood of project completion in the planning period, including the status, necessary steps to issue permits, any barriers to development, phasing, build-out horizons, dropout rates and other relevant factors.
Entitled and
Pending Pipeline
Projects/225-226
Progress toward the RHNA: All of the pipeline projects can be counted in the planning period. None of the projects received final occupancy or a final building permit before June 30, 2022. There are no known barriers to development, phasing, or other relevant factors that would prohibit the pipeline projects from completion. Table 76 (Pipeline Projects Counted in the 6th Cycle) was updated to reflect the status of each project, including the status of planning applications and building permits.
9.2 p. 346 of 1163
City of Gilroy Response to Comment Matrix
HCD Letter Dated 01-27-23
6 HCD Comment Chapter /
Page Number City Response - HEU Revisions / Programs
Realistic Capacity: Where zoning allows 100 percent nonresidential uses, the calculation of residential capacity should account for the likelihood of 100 percent nonresidential development. For example, the element could analyze all development activity in nonresidential zones allowing 100 percent nonresidential uses, how often residential development occurs and adjust residential capacity calculations, policies, and programs accordingly. This analysis may incorporate any proposed policies such as residential performance standards, prohibition of commercial uses and should clarify that all zones allow residential uses, particularly 100 percent residential uses.
Realistic
Capacity/217-218
Realistic Capacity: The Housing Element was revised to discuss which zones allow 100 percent non-residential uses. The realistic capacity calculation is partly based on recent permits and inquiries that illustrate the trend of maximizing residential and minimizing commercial uses in mixed-use zones. City staff noted that inquiries coming into the City are primarily for 100 percent residential or mixed-use. Staff also noted concerns from developers over the viability of commercial uses outside the historic downtown core.
Approximately 29.9 percent of the very low-income opportunity site units and approximately 44.9 percent of the moderate-income opportunity site units are located in the City’s Downtown Expansion District (20.4% and 44.9%) and First Street Corridor District (9.5% and 0%). To increase the likelihood that a sufficient number of residential units are built in this District, the City added Program E ‑ 12 (Downtown Expansion District and Mixed-Use Corridor Flexibility). This Program will allow 100 percent residential projects in the Downtown Expansion District should projects meet certain criteria or provide housing for special needs groups (e.g., extremely low-income).
Suitability of Nonvacant Sites: The element must demonstrate the potential for additional development on nonvacant sites. While the element (p. 181) notes recent trends on sites with existing uses and includes general descriptions of nonvacant sites, it should evaluate the extent existing uses impeded additional development and demonstrate the potential for redevelopment in the planning period, including sites identified in prior planning periods. The analysis should address market demand for the existing use and existing leases, contracts or other conditions that would perpetuate the existing use or prevent additional residential development. The element should include a discussion of why the uses will likely discontinue or be redeveloped in the planning period and should consider additional indicators of the potential for redevelopment such as age and condition of the existing structure, Non-Vacant Site
Details: 231-251
Program A-1/265
Appendix B/308-
310
Suitability of Nonvacant Sites: Expanded the discussion on non-vacant site details to include maximum FAR and residential density requirements. Included proximity to relevant resources such as schools, daycare facilities, and grocery stores. Took site characteristics, surrounding uses, and development constraints into consideration when evaluating each site’s development potential. Included examples of inquiry for residential development on non-vacant lots.
Modified Program A-1 (No Net Loss Inventory and Monitoring) to create a No Net Loss Inventory of replacement sites within 18 months of Housing Element certification to ensure the City has adequate sites to accommodate any net loss of RHNA sites or accessory dwelling units (ADUs) that fall below projections.
Updated the analysis and sites inventory to clarify which sites are vacant and non-vacant.
There was one parcel being used for parking that was being categorized as vacant that has
9.2 p. 347 of 1163
City of Gilroy Response to Comment Matrix
HCD Letter Dated 01-27-23
7 HCD Comment Chapter /
Page Number City Response - HEU Revisions / Programs
expressed developer or property owner interest, existing versus allowable floor area, and other factors.
In addition, based on public comments, the inventory may contain sites with existing uses that are labeled as vacant. The element should make corrections, as appropriate.
been recategorized as non-vacant. Despite this minor increase in the percentage of lowerincome RHNA units on non- vacant sites, the requirements of Government Code Section 65583.2(g)(2) do not apply to Gilroy, since only 31.2 percent of the proposed lower-income RHNA sites (including the buffer) are met through non-vacant sites (less than 50%).
Replacement Housing Requirements: If the sites inventory identifies sites with existing residential uses, the element must include a replacement housing program for units affordable to lower-income households Pursuant to Government Code section 65583.2, subdivision (g). Absent a replacement housing program, these sites are not adequate sites to accommodate lower-income households. The replacement housing program has the same requirements as set forth in Government Code section 65915, subdivision (c) (3).
Program B-3/276 Replacement Housing Requirements: Modified Program B-7 (Zoning Ordinance Update) to amend the Zoning Ordinance to require that any demolished residential units on the Sites Inventory be replaced pursuant to Government Code Section 65583.2(g).
Zoning for Moderate and Above Moderate-income Households (AB 725):
For jurisdictions that are considered Metropolitan, pursuant to Government Code section 65583.2, subdivision (c)(4), the element must identify at least 25 percent of the remaining moderate and above moderate RHNA on sites that allow at least four units of housing (e.g., four plex or greater).
Zoning for
Moderate and
Above Moderate
Households/229
Zoning for Moderate and Above Moderate-income Households (AB 725): There are 155 moderate RHNA units remaining after pipeline projects and projected ADUs. There are 167 moderate-income RHNA opportunity sites that allow for at least four units of development.
Thus, the City is compliant with Government Code Section 65583.2(c)(4). The allocation of moderate units is shown in Appendix B. There is no remaining need of above moderate units, as they are all met through pipeline projects.
Environmental Constraints: While the element generally describes environmental conditions, it should also describe how those conditions relate to identified sites and evaluate any other known conditions (e.g., shape, easements, contamination) that could preclude or impact housing development on identified sites in the planning period.
Environmental and
Infrastructure
Constraints/221-
224
Environmental Constraints: Expanded the discussion on environmental and infrastructure constraints to describe the environmental conditions related to sites in the DTSP and provided examples of environmental conditions impacting recent housing projects.
9.2 p. 348 of 1163
City of Gilroy Response to Comment Matrix
HCD Letter Dated 01-27-23
8 HCD Comment Chapter /
Page Number City Response - HEU Revisions / Programs
Accessory Dwelling Units (ADU): While the element demonstrates a sufficient methodology to utilize ADUs toward the RHNA, the figures differ from HCD’s records. HCD records show no ADUs reported in 2018 and 13 ADUs reported in 2020. The City should reconcile these differences either in the element or correcting the annual progress reports pursuant to Government Code section 65400.
Accessory Dwelling
Units/226-227
Programs A-6, A-7,
A-8, A-15 and G3/268-269, 301
Accessory Dwelling Units (ADU): Accessory Dwelling Units (ADU): On April 24, 2023, City staff worked with HCD to reconcile the HCD dashboard and City records. The HCD dashboard should now show seven (7) ADUs in 2018. Upon checking through City records, it was determined that 13 ADUs were issued permits in 2020, while the remaining seven (7) units received “final permits” in 2020 but were “issued permits” in either 2018 or 2019. The Housing Element has been updated to reflect the correct number. Although the overall average of ADUs decreased, the City has proposed five (5) ADU programs that should assist the City in achieving the estimated 140 ADUs over the 2023-2031 planning period.
Additionally, Program A-6 (ADU Tracking and Monitoring) was amended to include an update to the ADU strategy if annual production and affordability rates do not match the estimates included in the Housing Sites and Resources chapter. The full list of ADU programs include Program A-6 (ADU Tracking and Monitoring), A-7 (ADU Pre-Designed Plans), A-8 (Financial Incentives for Affordable ADUs), Program A-15 (ADU Ordinance Updates), and G – 3 (ADU Education).
Electronic Sites Inventory: Pursuant to Government Code section 65583.3, subdivision (b), upon adoption of the housing element, the City must submit an electronic version of the sites inventory with its adopted housing element to [email protected]. HCD has not received a copy of the electronic inventory. Please note, the City must utilize standards, forms, and definitions adopted by HCD when preparing the sites inventory. Please see HCD’s housing element webpage at https://www.hcd.ca.gov/planning-and- communitydevelopment/housing-elements for a copy of the form and instructions.
The City can reach out to HCD at [email protected] for technical assistance.
N/A Electronic Sites Inventory: Pursuant to Government Code section 65583.3, the City will submit an electronic version of the adopted sites inventory to [email protected].
ZONING FOR A VARIETY OF HOUSING TYPES
9.2 p. 349 of 1163
City of Gilroy Response to Comment Matrix
HCD Letter Dated 01-27-23
9 HCD Comment Chapter /
Page Number City Response - HEU Revisions / Programs
Emergency Shelters: Zoning to permit emergency shelters without discretionary action was required within the first year of the 4th cycle planning period. The element appears to explain that zoning to permit emergency shelters without discretionary action is not available. If this is the case, the element cannot be found in compliance until the appropriate zoning is established since the first year in the 4th cycle of the planning period has lapsed. In addition, the element commits to amend the R4 zone and mentions approximately 10 acres available to accommodate the need for emergency shelters. However, how this acreage overlaps with capacity to accommodate the RHNA is unclear and the element should include specific discussion of available capacity to accommodate the need for emergency shelters separate from capacity to accommodate the RHNA. The analysis of capacity should also address typical parcel sizes and proximity to transportation and services. If necessary, the element should consider additional zones. Finally, the element should specifically list development standards, identify any potential constraints, including parking and specifically commit to address constraints in Program E-3 (Emergency Shelters Zoning). For your information, statute was recently amended to specify how to demonstrate suitable sites and sufficient capacity to accommodate the need for emergency shelters. Future submittals may need to address these requirements. For more information and applicable timing, see HCD’s AB 2993 memorandum at
https://www.hcd.ca.gov/sites/default/files/docs/planning-andcommunity/ab2339- notice.pdf.
Emergency
Shelters/186-187
Program E-3/289
Emergency Shelters: Expanded the discussion on emergency shelters to include analysis regarding acreage capacity to accommodate the RHNA and emergency shelters, without overlapping capacity. The analysis now addresses parcel size and proximity to services, transportation, and development standards to address identified constraints. Amended Program E-3 (Emergency Shelter Standards) to ensure any constraints regarding emergency shelters are addressed and analyzed.
On May 1, 2023, the City Council considered the first reading of an Ordinance to amend the City’s existing emergency shelters regulations to allow emergency shelters by-right in the City’s R4 and new mixed-use zone along 1st Street by removing the conditional use permit requirement in those zones. The definition of emergency shelter was amended to include “other interim interventions, including, but not limited to, a navigation center, bridge housing, and respite or recuperative care”. The revisions also remove the reference to families and amend standards related to on-site management, waiting and intake areas, and parking based on the number of staff only. This action implements Program E-3 (Emergency Shelter Standards) and the requirements of Chapter 654, Statutes of 2022 (AB 2339) and Government Code Section 65583(a)(4).
Once approved, the revised Ordinance would take effect prior to the end of HCD’s 60-day review period (approximately mid-June).
Transitional and Supportive Housing: Transitional housing and supportive housing must be permitted as a residential use in all zones allowing residential uses and only subject to those restrictions that apply to other Transitional and
Supportive
Transitional and Supportive Housing: Added clarification to the discussion on transitional and supportive housing to affirmatively state the City's transitional and supportive housing standards are in full compliance with Government Code Section 65583(a)(5).
9.2 p. 350 of 1163
City of Gilroy Response to Comment Matrix
HCD Letter Dated 01-27-23
10 HCD Comment Chapter /
Page Number City Response - HEU Revisions / Programs
residential dwellings of the same type in the same zone. (Gov. Code, § 65583, subd. (a)(5).) The City appears to subject transitional and supportive housing for seven or persons to a conditional use permit, unlike other residential uses. The element must either clarify transitional and supportive housing standards are permitted in compliance with statutory requirements or add or revise programs to comply with the statutory requirements.
Housing/188
Permanent Supportive Housing: Supportive housing shall be a use byright in zones where multifamily and mixed uses are permitted, including nonresidential zones permitting multifamily uses pursuant to Government Code section 65651. The element must demonstrate compliance with this requirement and include programs as appropriate.
Transitional and
Supportive
Housing/188
Program E-13/294
Permanent Supportive Housing: Added program E-13 (Supportive Housing) to allow supportive housing by-right in zones where multifamily and mixed uses are permitted, pursuant to Government Code Section 65651.
Land Use Controls: The element must identify and analyze all relevant land use controls impacts as potential constraints on a variety of housing types. The analysis should analyze land use controls independently and cumulatively with other land use controls. The analysis should specifically address requirements related to parking, heights, lot coverage, allowable density ranges and development standards for the Downtown Specific Plan by zone. The analysis should address any impacts on cost, supply, housing choice, affordability, timing, approval certainty and ability to achieve maximum densities.
In addition, the element concludes the City complies with State Density Bonus Law (SDBL) pursuant to Government Code section 65915 but should include a discussion to support this conclusion or add or modify Land Use
Controls/170-182
Program A-12/273
Program B-7/
278
Land Use Controls: Expanded the Downtown Specific Plan development standards table to include yard, height, density, and building form requirements. Expanded the Zoning Ordinance discussion to include residential densities, planned development exceptions, lot size, floor area, and lot coverage. Expanded the discussion on cumulative effect of development standards to address constraints on land use controls.
Amended Program B-7 (Zoning Ordinance update) to evaluate development standards (e.g., parking) for all zones, including DTSP zones.
The City currently processes applications consistent with state density bonus law. As discussed in the Housing Element, multiple projects have utilized the density bonus, including the Jemcor Apartments (130 units), the Hecker Pass Apartments (100 units), and the 1st and Kern Apartments (120 units).
9.2 p. 351 of 1163
City of Gilroy Response to Comment Matrix
HCD Letter Dated 01-27-23
11 HCD Comment Chapter /
Page Number City Response - HEU Revisions / Programs
programs to comply with SDBL. For example, the element should discuss application requirements, decision-making criteria and consistency with various benefits under SDBL such as density bonuses, concessions and incentives, development standard modifications and parking reductions.
Program A-12 (Incentives Beyond Density Bonus State Law) goes beyond state law to offer incentives targeted at special needs households and extremely low-income households.
Accessory Dwelling Units (ADUs): The element indicates the City modifies its zoning code to ease barriers to the development of ADU’s. However, after a cursory review of the City’s ordinance, the department discovered several areas which were not consistent with State ADU law. This includes, but is not limited to, excessive development standards, requiring existing dwellings to correct nonconforming zoning conditions prior to approval of and ADU, maximum and minimum size restrictions, allowing additional conditions to be imposed by the City Manager, among others. The Department will provide a complete listing of ADU noncompliance issues under a separate cover. As a result, the element should add a program to update the City’s ADU ordinance to comply with State law.
Providing for a
Variety of Housing
Types/186,
Programs A-6, A-7,
A-8, A-15 and G3/268-269, 301
Accessory Dwelling Units (ADUs): Program A-15 (ADU Ordinance Updates) directs the City to update the zoning ordinance to conform to current state law regarding ADUs. Additionally, under this program, the City will replace the ADU deed restriction requirement with an owner affidavit form that does not require recordation at the County. This change will streamline the process for approving ADUs in the City of Gilroy. To further incentivize ADU production, the City will increase the allowable ADU floor area from 1,000 square feet to 1,200 square feet.
In addition, there are several other programs intended to increase the number of ADUs in the City, including Program A-6 (ADU Tracking and Monitoring), A-7 (ADU Pre-Designed Plans), A8 (Financial Incentives for Affordable ADUs), and G – 3 (ADU Education).
Building Codes: The element should identify and evaluate any local amendments to the building code for impacts on housing costs.
Building Code/202 Building Codes: Expanded the Building Code analysis to identify and evaluate locally adopted codes, including the recently adopted reach codes.
Fees and Exaction: The element provides a cumulative analysis of fees on various housing types but should also list all the various planning and impact fees, including to better evaluate the impacts on housing development costs. The element should also include a specific analysis on ADU impact fees as a constraint to ADU production.
Development
Review and
Permitting
Procedures/195-
196, 199
Fees and Exaction: In addition to discussing current school fees, the Housing Element provides a summary of planning and development impact fees in Table 67 (Planning Related Fees) and Table 68 (Development Impact Fees). In 2021/2022, fees were compared to other cities in Santa Clara County, resulting in Table 69 (Total Fees per Unit, Regional Comparison), and Table 70 (Fees as Percentage of Total Development Costs, Regional Comparison). Fees in Gilroy generally fall in the mid-range comparatively. Furthermore, development has not slowed following fee increases in 2022, indicating that Gilroy’s fees are reasonably set and do not represent a constraint on development. ADU impact fees are discussed in the Constraints chapter.
9.2 p. 352 of 1163
City of Gilroy Response to Comment Matrix
HCD Letter Dated 01-27-23
12 HCD Comment Chapter /
Page Number City Response - HEU Revisions / Programs
The City modified Program A-8 (Financial Incentives for Affordable ADUs) to evaluate ADU impact fees as a potential constraint for affordable housing.
On/Off Site Improvements: The element states the City requires on and off-site improvements but should also identify subdivision level improvement requirements for a typical development, such as minimum street widths (e.g., 40-foot minimum street width), and analyze their impact as potential constraints on housing supply and cost.
For additional information and a sample analysis, see the Building Blocks at https://www.hcd.ca.gov/planning-and-communitydevelopment/housing- elements/building-blocks/codes-andenforcement-and-onsite-offsite-improvement- standards.
On/Off Site
Improvement
Requirements/202-
205
On/Off Site Improvements: Expanded the discussion of on- and off-site improvement requirements to include analysis of subdivision level improvement requirements for a typical development. Based on recent proposals submitted and entitled citywide for a range of housing types, the City's residential site improvement requirements do not create an undue constraint on residential development.
Local Processing and Permit Procedures: The element lists procedural steps for permits but should also analyze the procedures for a typical single family and multifamily development complying with zoning. The analysis should address the approval body, the number of public hearing if any, approval findings and any other relevant information. The analysis should address impacts on housing supply (number of units), cost, feasibility, timing and approval certainty.
Administrative vs.
Discretionary
Planning
Permits/192
Program B-5/277
Local Processing and Permit Procedures: Expanded the analysis on development review and permitting procedures to include the administrative vs discretionary permitting procedures for single-family, multi-family, and planned unit development projects.
The City modified Program B-5 (Permit Streamlining) to modify the City’s Zoning Ordinance to streamline the Planned Development approval process, so that projects that do not require a zoning amendment or General Plan amendment can be approved by the Planning Commission rather than requiring review and approval by both the Planning Commission and City Council. This should reduce the planning permit process by approximately two months.
Constraints on Housing for Persons with Disabilities
Reasonable Accommodation: The element describes the reasonable accommodation procedure (p. 158) but should specifically analyze decision- making criteria such as approval findings. For example, the procedure includes a decision-making factor of potential impacts on surrounding uses – a conditional use permit (CUP) finding which can acts Reasonable
Accommodation
Procedures/201,
Program E-10/292
Constraints on Housing for Persons with Disabilities Reasonable Accommodation:
Added Program E-10 (Development and Rehabilitation of Housing for Persons with Disabilities) to evaluate the City’s reasonable accommodation standards and procedures, and revise, as necessary, regulations that act as potential constraints to accommodating persons with disabilities.
9.2 p. 353 of 1163
City of Gilroy Response to Comment Matrix
HCD Letter Dated 01-27-23
13 HCD Comment Chapter /
Page Number City Response - HEU Revisions / Programs
as a constraint. The element should analyze this factor and add or modify programs to address the constraint.
Constraints on Housing for Persons with Disabilities Group Homes: The element indicates group homes for six or less persons and seven or more persons are excluded from the A zone, unlike single family uses. The element should analyze this as a constraint and include a program to address the constraint. Additionally, group homes for seven or more persons are subject to a CUP. The element should analyze the CUP requirement and add or modify programs to address the constraint.
Housing for
Persons with
Disabilities/200
Programs E-10/292
Constraints on Housing for Persons with Disabilities Group Homes: Added Program E-10 (Development and Rehabilitation of Housing for Persons with Disabilities) to evaluate and revise as necessary the permit requirements for residential care homes (i.e., group homes) in medium- and higher-density residential zones.
Nongovernmental Constraints: The element should include a discussion about requests for development at lesser densities than assumptions in the sites inventory. In addition, the element should include a discussion of the typical time between entitlement approval and requests for building permits. The discussion should address any hinderances on housing development and programs should be added as appropriate to address constraints.
Requests to
Develop Below
Anticipated
Density/205-206
Nongovernmental Constraints: Expanded the discussion on requests to develop below the anticipated density and how this affects the assumptions in the sites inventory. Added discussion of the typical time between entitlement approval and requests for building permits.
Energy Conservation: The element must include analysis of energy conservation opportunities in residential development. The analysis should facilitate the adoption of housing element policies and programs.
For example, programs could provide incentives to promote higher density housing along transit, encourage green building techniques and materials in new construction and remodels, promote energy audits and participation in utility conservation programs, and facilitate energy conserving retrofits upon resale of homes. For additional information and sample analysis, see the Building Blocks at
https://www.hcd.ca.gov/planning-and-communityEnergy
Conservation/212-
213
Energy Conservation: Included an energy conservation section to analyze energy conservation opportunities and existing programs in residential development in the City and County. In November 2022, the City adopted the 2022 California Building Code with local amendments. The reach code amendments (e.g., EV charging) were based on the model code amendment initiated by Silicon Valley Clean Energy and incorporated adjustments resulting from outreach and stakeholder input from the local community.
In early 2023, the City of Gilroy launched Solar Automated Permit Processing Plus (SolarAPP+), an online portal that simplifies and accelerates rooftop solar photovoltaic (PV) permitting processes, allowing residential solar photovoltaic systems to be installed quicker.
9.2 p. 354 of 1163
City of Gilroy Response to Comment Matrix
HCD Letter Dated 01-27-23
14 HCD Comment Chapter /
Page Number City Response - HEU Revisions / Programs
development/housing- elements/building-blocks/opportunities-energyconservation.
At-Risk Units: The analysis of at-risk unit must estimate the total cost of producing new rental housing that is comparable in size and rent levels, to replace the units that could change from low-income use, and an estimated cost of preserving the assisted housing developments. This cost analysis for replacement housing may be done aggregately and does not have to contain a project-by-project cost estimate. The analysis should also reconcile the number of at-risk units with HCD’s records. HCD will send a list of at- risk properties under separate cover.
Inventory of AtRisk Units/62-64At-Risk Units: Updated Table 29 and the at-risk unit analysis, consistent with HCD records.
The City also updated Table 30 regarding replacement costs.
HOUSING PROGRAMS
Sufficient Sites: As noted in Finding A3, the element does not include a complete site analysis; therefore, the adequacy of sites and zoning were not established. Based on the results of a complete sites inventory and analysis, the City may need to add or revise programs to address a shortfall of sites or zoning available to encourage a variety of housing types.
Programs A-1, A-2,
and A-6/265-266,
268
Sufficient Sites: Revised Program A-1 (No Net Loss Inventory and Monitoring) to include the addition of a no net loss inventory list; revised Program A-2 (Surplus Lands/Affordable Housing on City-Owned Sites) to proactively advertise City-owned lands to affordable housing providers, the Santa Clara County Office of Supportive Housing, and developers of special needs housing; Program A-6 (ADU Tracking and Monitoring) was amended to include an update to the ADU strategy if annual production and affordability rates do not match the estimates included in the Housing Sites and Resources chapter; modified Program A-10 (Facilitate Missing Middle / Middle Income Housing) to provide more flexibility in the type of units allowed under SB 9 by allowing triplexes and fourplexes as an alternative design to a traditional duplex with an ADU or a junior ADU. Added Program E-12 (Downtown Expansion District and Mixed-Use Corridor Flexibility) to allow 100% Residential in the Downtown Expansion District and provide flexibility for mixed-use projects that accommodate extremely low-income and Special Needs Households.
Program A-2 (City-owned Lands): The Program should go beyond reviewing parcels and commit to a schedule of actions to facilitate development, including numerical objectives.
Program A-2/
266
Program A-2 (City-owned Lands): Program A-2 (Surplus Lands/Affordable Housing on CityOwned Sites) was modified to include a goal of developing at least 21 lower-income units through the Surplus Lands Act and to review the entire list of City owned sites by the end of
9.2 p. 355 of 1163
City of Gilroy Response to Comment Matrix
HCD Letter Dated 01-27-23
15 HCD Comment Chapter /
Page Number City Response - HEU Revisions / Programs
Q4 2025 to determine which additional sites could be declared as surplus. This program also commits the City to proactively advertise any surplus land opportunities to affordable housing providers, the Santa Clara County Office of Supportive Housing, and developers of special needs housing (e.g., extremely low income, disabled, farmworker housing), when they become available.
Program E-3 (Emergency Shelter Zoning): The Program should be modified with specific commitment to amend zoning based on the outcomes of a complete analysis as noted in Finding A3. Specific commitment includes listing the actual standards that will be revised. In addition, the Program should specifically commit to permit emergency shelters without discretionary action.
Program E-3/289 Program E-3 (Emergency Shelter Zoning): On May 1, 2023, the City Council considered the first reading of an Ordinance to amend the City’s existing emergency shelters regulations to allow emergency shelters by-right in the City’s R4 and new mixed-use zone along 1st Street by removing the conditional use permit requirement in those zones. The definition of emergency shelter was amended to include “other interim interventions, including, but not limited to, a navigation center, bridge housing, and respite or recuperative care”. The revisions also remove the reference to families and amend standards related to on-site management, waiting and intake areas, and parking based on the number of staff only.
This action implements Program E-3 (Emergency Shelters) and the requirements of Chapter 654, Statutes of 2022 (AB 2339) and Government Code Section 65583(a)(4).
Once approved, the revised Ordinance would take effect prior to the end of HCD’s 60-day review period (approximately mid-June).
Program D-4 (Pursue Funding for Affordable Housing): The Program should specifically commit to annual outreach with affordable housing developers to identify development opportunities and provide assistance such as supporting funding application, providing funding, incentives and concessions beyond SDBL, fee waivers and priority processing.
Program D-4/287 Program D-4 (Pursue Funding for Affordable Housing): Program D-4 was amended to reference the use of PLHA funds for eligible activities, including the predevelopment, development, acquisition, rehabilitation and preservation of affordable housing.
Amendments also commit the City to meet with affordable housing developers to identify development opportunities and provide support for funding applications, consider incentives and concessions beyond SDBL, and provide priority processing.
Extremely Low-income and Special Needs Households: Programs must be revised or added to assist in the development of housing for ELI and special needs households. Program actions could include assisting with funding applications, prioritizing some funding for housing developments, Programs E-11 and
G-1/293, 299
Extremely Low-income and Special Needs Households: In addition to the changes to Program D-4 noted above, the City added Program E-11 (Housing For Extremely Low Income and Special Needs Households) to commit to specific annual outreach with affordable housing developers to identify development opportunities, provide site
9.2 p. 356 of 1163
City of Gilroy Response to Comment Matrix
HCD Letter Dated 01-27-23
16 HCD Comment Chapter /
Page Number City Response - HEU Revisions / Programs
offering financial incentives or regulatory concessions to encourage the development of housing types, such as multifamily, single-room occupancy (SRO) units. For additional information, see the Building Blocks at https://www.hcd.ca.gov/planning-and-communitydevelopment/housing- elements/building-blocks/extremely-low-incomehousing-needs. information, assist in the entitlement processes, and consider on a case-by-case basis other incentives, including but not limited to fee deferrals and modification of standards.
Program G-1 (Collaboration with Development Community) was amended to specifically contact affordable housing developers and developers of special needs households for their participation in the annual developer roundtable meeting, with the goal of at least four participating in the annual roundtable.
Farmworkers: The element should include specific commitment to address the needs of farmworkers. For example, the element could commit to proactive actions to coordinate with nonprofit developers, employers, and other related organizations, to explore funding and incentives and to identify specific development opportunities.
Program E-7/291
Program E-11/293
Farmworkers: In November and December 2022, the City of Gilroy worked with staff from the Ochoa Migrant Camp to survey resident farmworkers. Twenty-six (26) surveys were completed by the farmworkers with assistance from bilingual staff at the Migrant Camp.
Feedback from the farmworkers was summarized in the Special Needs Groups section in the Housing Needs Assessment chapter of the Housing Element. The City of Gilroy modified Programs E-7 and E-11 to help facilitate needed housing for farmworkers who work in and surrounding Gilroy. Program E-7 (Development and Conservation of Housing for Farmworkers) was modified to add the following commitment: At least once a year, the City will forward information about City-owned land and other development opportunities to developers and service providers who may be interested in developing more farmworker housing in Gilroy. Program E-11 (Housing for Extremely Low Income and Special Needs Households) was added to commit to specific annual outreach with affordable housing developers to identify development opportunities. Eden Housing which manages three (3) farmworker housing development in Gilroy is included on the list. Program E-11 also identifies PLHA funding as a potential source for the development of farmworker housing.
Governmental and Nongovernmental Constraints: As noted in Finding A4, the element requires a complete analysis of potential governmental and nongovernmental constraints. Depending upon the results of that analysis, the City may need to revise or add programs and address and remove or mitigate any identified constraints.
Governmental
Constraints/
beginning 168
Programs/
beginning 265
Governmental and Nongovernmental Constraints: The City expanded the Constraints chapter as noted elsewhere in this response matrix. New programs were added, and existing programs were amended to remove governmental constraints to housing production. Program A-6 (ADU Tracking and Monitoring) was amended to require a focus group event with local stakeholders in spring or fall 2026 to identify appropriate ADU programs to help increase production if annual production and affordability rates do not match RHNA estimates. Program A-8 (Financial Incentives for Affordable ADUs) was
9.2 p. 357 of 1163
City of Gilroy Response to Comment Matrix
HCD Letter Dated 01-27-23
17 HCD Comment Chapter /
Page Number City Response - HEU Revisions / Programs
amended to evaluate ADU impact fees If ADU production is lower than anticipated.
Program A-10 (Missing Middle / Middle Income Housing) was amended to allow triplexes and fourplexes on corner lots in the R-1 and R-2 districts with a minimum 6,000 sf lot size.
Program A-15 (ADU Ordinance Updates) was amended to replace the ADU deed restriction requirement with an owner affidavit form that does not require recordation at the County and to increase the allowable floor area from 1,000 square feet to 1,200 square feet.
Program A-16 (SB 9 Processing) was added to update the City’s SB 9 webpage to include step-by-step, user friendly instructions for processing SB 9 units and lot splits in Gilroy.
Program B-3 (SB35/SB330) was amended to include the creation of checklists and instructions for reviewing and approving SB 35 and SB330 projects. Under Program B-7 (Zoning Ordinance update) the City will evaluate development standards for all zones including the Downtown Specific Plan zones for potential governmental constraints. Under Program B-9 (Building Department Webpage), the City will update the Building Department webpage to include information required pursuant to AB 2234, which should help reduce applicant time and cost and increase certainty. Under Program B-10 (Zoning Code Annual Updates), the City will establish a process to update City policies, codes and ordinances to comply with new State laws affecting housing and land use. Under Program E-3 (Emergency Shelters), the City has drafted an update to the zoning ordinance to comply with Assembly Bill (AB) 2339, AB 139, and Government Code Section 65583(a)(4) regarding emergency shelters. Program E-12 (Downtown Expansion District and Mixed-Use Corridor Flexibility) will allow 100% Residential in the Downtown Expansion District and allow flexibility for the non-residential portion of mixed-use projects that accommodate extremely low-income and Special Needs Households.
AFFH: As noted in Finding A1, the element must include a complete analysis of AFFH. The element must be revised to add goals and actions based on the outcomes of a complete analysis. Goals and actions must specifically respond to the analysis and to the identified and prioritized contributing factors to fair housing issues and must be significant and meaningful enough to overcome identified patterns and trends. Actions Table 57: AFFH
Actions
Matrix/157-166
Programs/
beginning 265
AFFH: Program A-10 (Missing Middle / Middle Income Housing) was amended to allow triplexes and fourplexes on all corner lots in the R-1 and R-2 districts with a minimum 6,000 sf lot size to encourage the development of missing middle housing throughout the City, including high-resource areas primarily comprising detached single-family residences.
Programs A-11 (Inclusionary Policy) and A-12 (Incentives Beyond Density Bonus State Law) will facilitate affordable housing opportunities in the City’s higher resource / higher income
9.2 p. 358 of 1163
City of Gilroy Response to Comment Matrix
HCD Letter Dated 01-27-23
18 HCD Comment Chapter /
Page Number City Response - HEU Revisions / Programs
must have specific commitment, milestones, geographic targeting and metrics or numeric objectives and, as appropriate, must address housing mobility enhancement, new housing choices and affordability in higher opportunity or income areas, place-based strategies toward community revitalization and displacement protection.
areas. Under Program E-10 (Development and Rehabilitation of Housing for Persons with Disabilities), the City will evaluate and revise standards and procedures related to reasonable accommodation and residential care homes (i.e., group homes). Program F-3 (Place-Based Improvements in Downtown Gilroy) will improve conditions in the City’s R/ECAP area. Program G-2 (Community Outreach and Inclusion in the Decision-Making Process) includes geographic targeting in the R/ECAP area. Similarly, Program G-4 (Increased Outreach in Downtown Areas) directs the city to consider the viewpoints and concerns of all neighborhoods within Gilroy, and specifically the R/ECAP area when drafting Area Plans. Under Program G-7 (Bilingual Engagement), the City will increase Spanish language engagement given the City’s large Hispanic population which is further facilitated by the recent expansion of the City’s bilingual pay benefits, which should increase the number of bilingual staff available to assist the Spanish-speaking community.
Program A-6 (ADU Tracking and Monitoring): While the Program commits to annually track ADU production, it should also track ADU affordability and should include discrete timing and specific commitment if ADU assumptions are not realized such as committing to additional incentives and rezoning within six months.
Programs A-6 and
A-15/268, 274
Program A-6 (ADU Tracking and Monitoring): Program A-6 was modified to include the following commitment identifying discrete timing and specific commitments: If the average ADU production is less than 25 units in years 2023, 2024, and 2025, the City will update the ADU strategy by the end of 2026. In this case, the City will hold a focus group event with local stakeholders in spring or fall 2026. The purpose of the collaborative meeting will be to identify appropriate ADU programs to help increase production. If necessary, the City will identify additional RHNA sites in No Net Loss Inventory, as discussed in Program A-1.
Quantified Objectives: While the element includes quantified objectives for new construction, rehabilitation, and conservation by income group; it should consider quantified objectives for conservation (beyond at-risk preservation). For your information, the quantified objectives do not represent a ceiling, but rather set a target goal for the City to achieve, based on needs, resources, and constraints.
Quantified
Objectives/263
Quantified Objectives: Revised Table 86 to include a goal for conservation beyond just preservation numbers.
9.2 p. 359 of 1163
City of Gilroy Response to Comment Matrix
HCD Letter Dated 01-27-23
19 HCD Comment Chapter /
Page Number City Response - HEU Revisions / Programs
General Plan Consistency: While the element discusses how internal consistency will be achieved with other elements of the general plan as part of the housing element update, it should also discuss how internal consistency will be maintained throughout the planning period. For example, the element could include a program to conduct an internal consistency review of the General Plan as part of the annual General Plan implementation report required by Government Code section 65400. The annual report can also assist future updates of the housing element. For additional information and a sample program, see the Building Blocks at https://www.hcd.ca.gov/planning-and-communitydevelopment/housing-elements/building- blocks/analysis-consistencygeneral-plan-and-coastal-zone-requirements.
Relationship to
Other Elements
and Plans/1
Program B-11/280
General Plan Consistency: Program B-11 was added to ensure that consistency between the General Plan and Housing Element is reviewed as part of the Annual Progress Report (APR), prior to April 1st of each year. As amendments are made to the General Plan, the City will also review and revise the Housing Element for ongoing consistency.
Program E-1 (Priority Water and Sewer Service): If the City is the water or sewer provider, the Program should specifically commit to establish a written procedure to grant priority service to developments with units affordable to lower-income households. In addition, local governments are required to immediately deliver the housing element to water and sewer service providers.
Program E-1/289 Program E-1 (Priority Water and Sewer Service): Modified Program E-1 (Priority Water and Sewer Service for Affordable Housing Developments) to specify that the City shall review and update, as necessary, the Water and Sewer Service Priority Policy to ensure future affordable projects will receive service priority. This policy is currently in place. Under Program E-1, the Housing Element will be provided to water and sewer service providers upon adoption.
Public Participation: While the element includes a general summary of the public participation process, it must also summarize the public comments and describe how they were considered and incorporated into the element. For additional information, see the Building Blocks at https://www.hcd.ca.gov/planning-and-communitydevelopment/housing-elements/building- blocks/public-participation.
Public
Participation/1-10
Public Participation: The public participation process discussion in the Introduction chapter of the Housing Element was expanded to include summaries of public comments and how the comments were considered and incorporated into the Housing Element.
Summaries of recent outreach efforts and survey results was also added.
9.2 p. 360 of 1163
CITY OF GILROY
HOUSING ELEMENT
6TH CYCLE
2023 – 2031
HCD Review Draft #2
April 26, 2023
9.2 p. 361 of 1163
Table of Contents ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan i
Table of Contents
INTRODUCTION ............................................................................................................................ 8 Purpose and Content.......................................................................................................................8 Relationship to Other Elements and Plans ...................................................................................8 Public Participation ..........................................................................................................................8 Summary of Comments Received............................................................................................11 REVIEW OF PAST ACCOMPLISHMENTS .................................................................................... 19 Housing Production.......................................................................................................................19 No Net Loss and Adequate Sites..............................................................................................20 Effectiveness at Assisting Special Needs Populations ...............................................................20 Accessibility Improvements ......................................................................................................22 Seniors and Residents with Disabilities...................................................................................22 At-Risk Youth Services ...............................................................................................................23 Unhoused Outreach ..................................................................................................................23 Farmworkers...............................................................................................................................23 2015 – 2023 (5th Cycle) Housing Element Programs ..................................................................25 HOUSING NEEDS ASSESSMENT................................................................................................. 44 Projected Housing Needs..............................................................................................................45 Existing Housing Need...................................................................................................................45 Demographic Characteristics....................................................................................................45 Employment Trends ..................................................................................................................50 Household and Housing Stock Characteristics.......................................................................53 Overpayment..............................................................................................................................60 Overcrowding .............................................................................................................................62 Housing Inventory and Market Conditions.............................................................................63 Preservation of Assisted Units At Risk of Conversion............................................................68 Special Needs Groups....................................................................................................................72 Persons with Disabilities............................................................................................................73 Elderly Persons...........................................................................................................................78 Large Households ......................................................................................................................80 Female-Headed Households ....................................................................................................82 Homeless/Unhoused Population.............................................................................................83 Farmworkers...............................................................................................................................86 Extremely Low-Income Households ........................................................................................88 Summary of Housing Needs.........................................................................................................91
9.2 p. 362 of 1163
Table of Contents ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan ii
AFFIRMATIVELY FURTHERING FAIR HOUSING........................................................................ 93 Introduction, Outreach, and Assessment ...................................................................................93 Introduction................................................................................................................................93 Public Outreach..........................................................................................................................93 Housing Element Survey (focused outreach)..........................................................................97 Stakeholder Meetings................................................................................................................97 Findings .......................................................................................................................................98 City Overview..................................................................................................................................98 Fair Housing Enforcement and Outreach Capacity............................................................. 104 Integration and Segregation...................................................................................................... 106 Race and Ethnicity................................................................................................................... 106 Income...................................................................................................................................... 111 Familial Status.......................................................................................................................... 117 Persons with Disabilities......................................................................................................... 120 Findings .................................................................................................................................... 124 Racially and Ethnically Concentrated Areas of Poverty and Affluence ................................. 124 R/ECAPs .................................................................................................................................... 124 Racially Concentrated Areas of Affluence ............................................................................ 129 Disparities in Access to Opportunities...................................................................................... 130 California Tax Credit Allocation Committee (TCAC) ............................................................ 130 Increasing Housing Opportunities in Higher Resource Areas ........................................... 137 Access to Opportunities, Regional Comparisons ................................................................ 138 Transportation......................................................................................................................... 140 CalEnviroScreen 4.0 ................................................................................................................ 142 Findings .................................................................................................................................... 143 Disproportionate Housing Needs ............................................................................................. 144 Substandard Housing............................................................................................................. 144 Overcrowding .......................................................................................................................... 147 Homelessness ......................................................................................................................... 149 Displacement........................................................................................................................... 153 Findings .................................................................................................................................... 155 Other Contributing Factors........................................................................................................ 156 Historic Immigration and Land Use Patterns ...................................................................... 156 Urban Growth Boundary........................................................................................................ 158 Fair Housing Issues, Contributing Factors, and Meaningful Action ...................................... 159 CONSTRAINTS ON HOUSING .................................................................................................. 173 Governmental Constraints......................................................................................................... 173 Land Use Controls................................................................................................................... 173
9.2 p. 363 of 1163
Table of Contents ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan iii
Providing for a Variety of Housing Types ............................................................................. 188 Residential Development Ordinance.................................................................................... 193 Urban Growth Boundary and Urban Service Area.............................................................. 194 Development Review and Permitting Procedures .............................................................. 196 Housing for Persons with Disabilities ................................................................................... 205 Building Code........................................................................................................................... 207 Code Enforcement.................................................................................................................. 207 On- and Off-Site Improvement Requirements .................................................................... 207 Nongovernmental Constraints.................................................................................................. 209 Requests to Develop Below the Anticipated Density.......................................................... 209 Land Costs................................................................................................................................ 210 Construction Costs.................................................................................................................. 211 Financing Availability............................................................................................................... 212 Federal and State Programs .................................................................................................. 212 Environmental and Infrastructure Constraints ................................................................... 213 HOUSING SITES AND RESOURCES........................................................................................... 219 Land Inventory............................................................................................................................. 219 Housing Allocation.................................................................................................................. 219 Realistic Capacity..................................................................................................................... 221 Assumed Affordability ............................................................................................................ 224 Environmental and Infrastructure Constraints ................................................................... 225 Entitled and Pending Pipeline Projects................................................................................. 229 Accessory Dwelling Units (ADUs)........................................................................................... 230 Ability to Meet the RHNA........................................................................................................ 231 Opportunity Site Details ............................................................................................................. 234 Vacant Sites.............................................................................................................................. 234 Non-Vacant Sites ..................................................................................................................... 234 Non-Vacant Site Details .............................................................................................................. 235 Local Data................................................................................................................................. 235 R4 Northern Cluster................................................................................................................ 236 Monterey Cluster 1 (Downtown Expansion District)........................................................... 238 Monterey Cluster 2 (Gateway/Downtown Expansion District) .......................................... 241 Monterey Cluster 3 (Gateway District).................................................................................. 244 Monterey Cluster 4 (Downtown Expansion District)........................................................... 246 Other Zoning Districts and Designations ............................................................................. 248 Financial Resources .................................................................................................................... 256 Countywide Programs............................................................................................................ 256 U.S. Department of Housing and Urban Development (HUD) Grants ............................. 257 Statewide Resources............................................................................................................... 261 Administrative Resources ...................................................................................................... 262
9.2 p. 364 of 1163
Table of Contents ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan iv
HOUSING GOALS, POLICIES, AND PROGRAMS ..................................................................... 264 Housing Production.................................................................................................................... 264 Removal of Governmental Constraints .................................................................................... 264 Housing Preservation and Rehabilitation ................................................................................ 265 Housing Assistance to Meet the Needs of All Income Levels ................................................ 265 Special Housing Needs ............................................................................................................... 266 Affirmatively Furthering Fair Housing....................................................................................... 266 Education and Outreach ............................................................................................................ 267 Quantified Objectives ............................................................................................................. 267 Programs...................................................................................................................................... 268 APPENDIX A: SITES INVENTORY MAP..................................................................................... 310 APPENDIX B: SITES INVENTORY LIST...................................................................................... 312 APPENDIX C: OUTREACH ......................................................................................................... 330 List of Figures
Figure 1: Population Age Distribution, 2019...................................................................................48 Figure 2: Regional Racial/Ethnic Composition, 2019......................................................................50 Figure 3: Regional Employment by Industry, 2019 ........................................................................52 Figure 4: Regional Home Prices Over Time, 2001–2020................................................................57 Figure 5: Disability by Type, 2019.....................................................................................................74 Figure 6: Developmental Disability by Type Served by San Andreas Regional Center, 2020....76 Figure 7: Census Tracts and RHNA Sites, 2022...............................................................................99 Figure 8: Racial and Ethnic Majority, 2010 ................................................................................... 107 Figure 9: Percentage of the Population that is Non-White, 2018.............................................. 108 Figure 10: Percent non-White Comparison of RHNA Units........................................................ 109 Figure 11: Dissimilarity Index for Race ......................................................................................... 110 Figure 12: Low to Moderate Income Population and RHNA Sites, 2011-2015 ........................ 112 Figure 13: Low to Moderate Income Population Comparison of RHNA Units......................... 113 Figure 14: Households per Income Level, 2021 .......................................................................... 114 Figure 15: Median Household Income, 2019............................................................................... 115 Figure 16: Poverty Status, 2010-2014 and 2015-2019................................................................ 116 Figure 17: Housing Choice Vouchers............................................................................................ 117 Figure 18: Children in Female-Headed Households and RHNA Sites....................................... 118 Figure 19: Female Headed Households Comparison of RHNA Units ....................................... 119 Figure 20: Children in Married-Couple Households ................................................................... 120 Figure 21: Disability Characteristics, Gilroy, 2019 ....................................................................... 121 Figure 22: Population with a Disability, 2010-2014 and 2015-2019.......................................... 122 Figure 23: Population with a Disability Comparison of RHNA Units......................................... 123
9.2 p. 365 of 1163
Table of Contents ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan v
Figure 24: Infrastructure Improvements...................................................................................... 127 Figure 25: R/ECAPs in the City and Vicinity................................................................................... 128 Figure 26: Presence of a R/ECAP Comparison of RHNA Units................................................... 129 Figure 27: RCAAs Vicinity and RHNA Sites.................................................................................... 130 Figure 28: TCAC Economic Score, 2021 ........................................................................................ 132 Figure 29: TCAC Education Score .................................................................................................. 133 Figure 30: TCAC Environmental Score.......................................................................................... 134 Figure 31: TCAC Composite Score and RHNA Sites..................................................................... 136 Figure 32: TCAC Designation Comparison of RHNA Units ......................................................... 137 Figure 33: Existing Single-Family Homes on Corner Lots in R1 and R2 Zones......................... 138 Figure 34: Transit Route Map ........................................................................................................ 141 Figure 35: CES Percentile and RHNA Sites ................................................................................... 142 Figure 36: CalEnviroScreen Percentile Comparison of RHNA Units.......................................... 143 Figure 37: Housing Problems by Tenure and Race/Elderly/Housing Size ................................ 145 Figure 38: Cost Burden by Tenure and Race/Elderly/Housing Size........................................... 145 Figure 39: Overpayment by Owners............................................................................................. 146 Figure 40: Overpayment by Renters............................................................................................. 146 Figure 41: Year Structure Built....................................................................................................... 147 Figure 42: Overcrowded Households........................................................................................... 148 Figure 43: Communities Vulnerable to Displacement................................................................ 155 Figure 44: Gilroy Land Use Map .................................................................................................... 174 Figure 45: Gilroy Special Flood Hazard Areas.............................................................................. 227 Figure 46: Gilroy Wildland Urban Interface Areas....................................................................... 228 List of Tables
Table 1: 5th Cycle RHNA Progress (2015 through 2022).................................................................20 Table 2: Review of 2015 – 2023 (5th Cycle) Housing Element Programs......................................26 Table 3: Gilroy RHNA, 2023–2031 ....................................................................................................45 Table 4: Regional Population Trends, 2010–2020..........................................................................46 Table 5: Average Annual Population Growth Rate.........................................................................46 Table 6: Population Age Distribution, Gilroy...................................................................................47 Table 7: Racial and Ethnic Composition, Gilroy..............................................................................49 Table 8: Employment Trends, Gilroy ...............................................................................................51 Table 9: Major Employers, 2021.......................................................................................................53 Table 10: Change in Households, 2000–2019.................................................................................54 Table 11: Regional Average Household Size...................................................................................54 Table 12: Household Size Distribution, 2019..................................................................................54 Table 13: Median Household Income by Tenure, 2019.................................................................55 Table 14: Income Range by Affordability Level Based on State Area Median Income, 2022....55 Table 15: Household Income by Tenure, 2018...............................................................................56 Table 16: Zillow Home Value Index, 2020 and 2021......................................................................58 Table 17: Average Monthly Rent by Unit Size, 2021.......................................................................58
9.2 p. 366 of 1163
Table of Contents ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan vi
Table 18: Maximum Affordable Rent by Income, Santa Clara County ........................................59 Table 19: Maximum Affordable Monthly Rent by Income Category............................................59 Table 20: Occupancy Rates ...............................................................................................................60 Table 21: Housing Cost as a Percentage of Household Income, 2018 ........................................61 Table 22: Overcrowded Households, 2019.....................................................................................63 Table 23: Housing Units, 2000–2019 ...............................................................................................64 Table 24: Unit Size by Tenure, 2019.................................................................................................64 Table 25: Housing Inventory by Unit Type......................................................................................65 Table 26: Unit Type by Tenure, 2019 ...............................................................................................66 Table 27: Tenure by Housing Age ....................................................................................................67 Table 28: Units Lacking Plumbing or Complete Kitchen Facilities, 2019 .....................................68 Table 29: Potential Units at Risk of Conversion..............................................................................70 Table 30: Replacement Cost.............................................................................................................70 Table 31: Gilroy and Santa Clara County Population with Developmental Disabilities.............75 Table 32: Living Arrangements of Adults with Developmental Disabilities ................................76 Table 33: Householders by Age, 2020 .............................................................................................78 Table 34: Median Household Income for Elderly Households, 2019...........................................78 Table 35: Income Distribution, Elderly Households, 2018 ............................................................79 Table 36: Elderly People with Disabilities, 2019 .............................................................................79 Table 37: Elderly Households by Housing Problems and Tenure, 2018 .....................................80 Table 38: Large Households by Tenure, 2019 ................................................................................81 Table 39: Income Distribution, Large Households, 2015-2019 ....................................................82 Table 40: Large Households by Housing Problems and Tenure, 2018........................................82 Table 41: Female-Headed Households by Tenure, Gilroy, 2019 ..................................................83 Table 42: 2022 Santa Clara County Homeless Census and Survey..............................................84 Table 43: Homeless Facilities in or Adjacent to Gilroy...................................................................86 Table 44: Number of Santa Clara County Farmworkers and Farms, 2017 .................................87 Table 45: Overcrowding by Income Level, 2019.............................................................................89 Table 46: Extremely Low-Income Households with Housing Problems, 2018 ...........................91 Table 47: Comparison of Fair Housing with Respect to Location.............................................. 102 Table 48: Dispute Cases by Income Category, 2015-2022 ......................................................... 105 Table 49: Dispute Cases by Age, 2015-2022 ................................................................................ 105 Table 50: Dispute Cases by Race, 2015- 2022.............................................................................. 106 Table 51: Dissimilarity Index for Income...................................................................................... 111 Table 52: Opportunity Indicators .................................................................................................. 140 Table 53: Overcrowding, 2019....................................................................................................... 149 Table 54: Homeless Facilities in or Adjacent to Gilroy................................................................ 150 Table 55: 2022 Santa Clara County Homeless Census and Survey........................................... 151 Table 56: Permanent Local Housing Allocation Funds for FYs 2022-2024............................... 153 Table 57: Fair Housing Issues, Contributing Factors, and Proposed Action ............................ 160 Table 58: AFFH Actions Matrix....................................................................................................... 162 Table 59: Neighborhood District Target Densities...................................................................... 177
9.2 p. 367 of 1163
Table of Contents ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan vii
Table 60: Downtown Specific Plan Development Standards..................................................... 180 Table 61: Downtown Specific Plan Development Standards (Special Circumstances)........... 181 Table 62: Residential Standards (2022) ........................................................................................ 184 Table 63: Residential Parking Standards (2022).......................................................................... 186 Table 64: Residential Use Table (2022)......................................................................................... 190 Table 65: Permit Processing Time (2022)..................................................................................... 198 Table 66: Permit Processing Time, Months, Regional Comparison (2021-2022)..................... 199 Table 67: Planning Related Fees (August 2022)........................................................................... 200 Table 68: Development Impact Fees (2022)................................................................................. 202 Table 69: Total Fees per Unit, Regional Comparison (2021-2022) ............................................ 203 Table 70: Fees as Percentage of Total Development Costs, Regional Comparison (2021-2022) .............................................................................................................................................. 203 Table 71: 2022 Vacant Lot Sales in Gilroy..................................................................................... 211 Table 72: Disposition of Home Loans, 2020 ................................................................................ 212 Table 73: 2023–2031 RHNA ........................................................................................................... 219 Table 74: Pipeline Projects and ADUs Progress Towards RHNA............................................... 220 Table 75: Target Sites Capacity (15% No Net Loss Buffer of Unmet RHNA)............................. 221 Table 76: Example Multifamily Project Densities ........................................................................ 223 Table 77: Assumed Yields .............................................................................................................. 224 Table 78: Densities, Affordability, and Implementing Zones..................................................... 225 Table 79: Pipeline Projects Counted in 6th Cycle (Proposed, Entitled, Permits Issued)........... 230 Table 80: ADUs Toward the RHNA................................................................................................ 231 Table 81: ADU Affordability Assumptions.................................................................................... 231 Table 82: RHNA Capacity and Buffer ............................................................................................ 232 Table 83: Lower Income RHNA Capacity ...................................................................................... 232 Table 84: Residential Vacant Sites Capacity................................................................................. 234 Table 85: Non-Vacant Site Capacity .............................................................................................. 235 Table 86: CDBG Funded Agencies................................................................................................. 258 Table 87: CARES Act CDBG-CV Funds ........................................................................................... 258 Table 88: Permanent Local Housing Allocation Funds for FYs 2022-2024............................... 260 Table 89: Total Quantified Objectives, 2023 – 2031.................................................................... 267 Table 90: Opportunity Sites ........................................................................................................... 312 Table 91: Pending Project Sites ..................................................................................................... 316
9.2 p. 368 of 1163
Introduction ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 8
Introduction
Purpose and Content
The City of Gilroy’s 2023 – 2031 6th Cycle Housing Element has been prepared in compliance with the State of California Government Code Section 65302 and in conformance with the Housing Element Guidelines as established by the California Department of Housing and Community Development (HCD). This Housing Element sets forth the City’s overall housing objectives in the form of goals, policies, and programs.
Relationship to Other Elements and Plans
This Housing Element identifies goals, policies, and programs that guide housing policy for the City for the 2023 – 2031 planning period. The goals, policies, and programs are consistent with the direction of the City’s other General Plan elements, specifically the Land Use Element, Potential Hazards Element, and the Environmental Justice Element. Each goal is followed by one or more policies that are designed to provide direction to the policy makers that will enable progress toward the goals. Consistency will be reviewed as part of the annual General Plan implementation progress report as required under Government Code Section 65400. As amendments are made to the General Plan, the City will also review and revise the Housing Element for ongoing consistency. Listed after a discussion of the goals and policies are the programs designed to implement the specific goals and policies.
The Housing Element goals, policies, and programs aim to:
• Encourage the development of a variety of housing opportunities and provide adequate sites to meet the 2023 – 2031 Regional Housing Needs Allocation (RHNA).
• Assist in the development of housing to meet the needs of lower- and moderateincome households. • Address and, where appropriate and legally possible, remove governmental constraints to housing development.
• Conserve, preserve, and improve the condition of the existing affordable housing stock.
• Promote equal housing opportunity for all residents to reside in the housing of their choice. These objectives are required by and delineated in State law (California Code Section 65583 [c][1]).
Public Participation
The City of Gilroy made a diligent effort to encourage public participation in the development of the Housing Element. Outreach for the Housing Element update began in 2021, starting with City Council public meetings to introduce the housing element update process and to get initial
9.2 p. 369 of 1163
Introduction ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 9
feedback on potential programs for inclusion in the housing element. The City of Gilroy also participated in a regional (virtual) outreach meeting through the Santa Clara County Collaborative that included residents and stakeholders from Gilroy, Morgan Hill, and the County of Santa Clara; approximately 20 attendees participated in the Gilroy breakout room.
Targeted outreach began in January 2022. This involved engaging a diverse group of people in the planning process, including community members, stakeholders, service providers, educators, and the Planning Commission and City Council in identification of Gilroy’s Housing Element housing issues and goals.
Additional details about the public outreach process can be found in the Affirmatively Furthering Fair Housing Chapter. In summary, the public participation program included:
• Website. An interactive housing element update website, launched in February 2022 and accessed through the City’s webpage, which included a description of the project, how to provide input, workshop dates and video recordings, a link to the Housing Element update survey, FAQs, and the draft Housing Element. • Surveys. A bilingual (Spanish) online community survey was heavily promoted through email list notification, project website, flyers, stakeholder interviews, community workshops, and handed out in person.
• Stakeholder Interviews. Four focus groups were held on Tuesday, March 29 at 1:00 p.m.; Tuesday, April 5 at 1:00 p.m.; Thursday, April 7 at 1:00 p.m.; and Tuesday, April 12 at 10:00 a.m. to gather input from community members and housing service providers.
• Community workshops. Two bilingual virtual community workshops were held on Wednesday, March 30, 2022 at 6:00 PM, and Tuesday, June 28, 2022 at 6:00 PM. The website was updated to include information about the community meetings and the project planner sent emails to notify individuals on the mailing list which included stakeholders, community service providers, and members of the public.
The links to both the English and Spanish language presentation video recording were posted on the Housing Element Update website.
• Equity Advisory Group Meeting. On August 23, 2022, the City gave a presentation to the Santa Clara County Equity Advisory Committee. The purpose of the presentation was to provide a brief summary of Gilroy’s demographics and housing trends, including income levels and housing inventory. The meeting also included a summary of public outreach efforts, survey results, and stakeholder feedback. Staff also introduced the draft housing goals, a snapshot of some of the proposed housing programs, and a look at the RHNA sites inventory map. The session also included questions and answers related to the Housing Element. The Equity Advisory Committee consists of 15 community-based organizations that represent and/or serve the County's diverse community. They include organizations that represent ethnic communities, provide direct services including housing assistance, or work on housing-related issues.
9.2 p. 370 of 1163
Introduction ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 10
• Study Session. One bilingual joint study session with the Planning Commission and City Council was held on August 29, 2022 at 6:00 PM. All the efforts of notifying the public that were made for the two community meetings were repeated for the joint study session. The links to the presentation video recording were posted on the Housing Element Update website. The joint study session focused primarily on RHNA site strategy, housing issues, and proposed programs included in the Housing Element. It included a robust discussion of housing issues and responsive programs to meet the needs of all Gilroy residents. The meeting was well attended by both Spanish and English-speaking residents and stakeholders. • Public Draft Community Meeting. One virtual community meeting was held on Tuesday, September 27, 2022 at 6:00 PM. The link to the presentation video recording was posted on the Housing Element Update website. The meeting provided the community with a high-level overview of the Draft Housing Element chapters and appendices, the overall goals and programs, and then a brief description of some of the programs that could potentially have the highest impact on housing production, removal of governmental constraints, and meeting special housing needs.
• Public Draft City Council and Planning Commission Public Hearings. Following the release of the first public draft, the City held two in-person public hearings. The public hearings were held Monday, October 17, 2022 at 6:00 PM (City Council) and Thursday, October 20, 2022 at 6:00 PM (Planning Commission). The purpose of the meetings was to provide the public and the City’s decision makers with another opportunity to provide comments and suggestions prior to sending the draft to the California Department of Housing and Community Development for their review. • Farmworker Outreach. In November and December 2022, the City of Gilroy worked with staff from the Ochoa Migrant Camp to survey resident farmworkers. Twentysix (26) surveys were completed by the farmworkers with assistance from bilingual staff at the Migrant Camp. Feedback from the farmworkers was summarized in the Special Needs Groups section in the Housing Needs Assessment chapter of the Housing Element. The City of Gilroy also modified Programs E - 7 and E - 11 to help facilitate needed housing for farmworkers who work in and surrounding Gilroy. • Youth Commission and Gavilan College Outreach. On December 12, 2022, City staff attended the Gilroy Youth Commission meeting to discuss the Housing Element update, answer questions, and gather feedback from youth in attendance (~15 to 18 years old). City staff also asked those in attendance to complete the online housing survey and to ask their friends and older siblings to complete the survey.
In an effort to reach out to the young adult community, City staff reached out to members of the Associated Students of Gavilan College (ASGC) student body. Eight (8) surveys were completed by the Youth Commission and Gavilan College community.
9.2 p. 371 of 1163
Introduction ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 11
• Seniors Outreach. On January 25, 2023, City staff made a brief presentation to seniors at the Gilroy Senior Center, informing them about the Housing Element and gathering feedback. Nineteen (19) surveys were completed by seniors in attendance.
• Intellectually and Developmentally Disabled Outreach. On January 24, 2023, the City held a virtual meeting with Housing Choices and intellectually and developmentally disabled (I/DD) stakeholders (primarily parents of I/DD children and I/DD adults), informing them about the Housing Element and gathering verbal feedback. On February 15, 2023, the City also met with and gathered verbal feedback from I/DD residents, caregivers, and staff at Villa Esperanza, a facility that provides low-income apartment units and services for persons with disabilities.
Summary of Comments Received
During the initial outreach process (prior to the release of the public draft) the City heard comments ranging from: difficulty paying rent, mortgage or down payment; homelessness; and insufficient housing supply including affordable housing, farm-worker housing, and preference on locations for future housing. Many of the programs proposed as well as the RHNA sites inventory in the 2023-2031 Housing Element reflect the community input. In summary, the community engagement and input yielded the following themes and feedback:
• Affordability: Participants expressed the difficulties to afford homes and rent in Gilroy and the larger region; specifically identifying first time home buyers, farm workers and seniors as key impacted groups. Participants expressed concern that Gilroy incomes are lower comparatively to the regional median; therefore, housing that may be affordable for the surrounding region may not be affordable for Gilroy residents. Program A - 11 consists of the development of an Inclusionary Housing Policy to establish inclusionary housing requirements so that new developments reserve a percentage of the total units for lower- and moderate-income households.
• Importance of Investment in East Gilroy: Participants noted a disparity in housing and quality of infrastructure and amenities between the east side and west side of the City. Participants noted the importance of investing in downtown to provide access to necessary resources and adequate infrastructure concurrently with housing development. Program F - 3 is included to ensure place-based investments and improvements are occurring in the eastern areas of Gilroy, especially in the downtown area.
• Education and Outreach: Participants expressed a lack of community engagement and education on affordable housing, accessory dwelling units (ADUs), available housing services and programs, and housing policy. Programs G - 2, G - 3, G - 5, and G - 8 implement outreach and education strategies to increase community awareness about ADUs, housing resources, and available fair housing support.
Program G - 4 provides focused outreach in the downtown area.
9.2 p. 372 of 1163
Introduction ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 12
• Prioritizing Extremely Low-Income Housing: Participants addressed the need for prioritizing development of extremely low-income units. Additionally, residents expressed the need to prioritize the allocation of these extremely low-income units to existing Gilroy residents. Program A - 12 considers adopting an incentives beyond density bonus state law program that targets extremely low-income populations and other special needs. Program E - 9 is included to develop a priority system for current residents of Gilroy and individuals working in Gilroy to inhabit these special needs households.
• Disparity of income between the City and the larger region. The large difference between the median income in the City and the regional area median income (AMI) was frequently noted in outreach. The difference was $33,871 (24%) in 2020.
Participants expressed the inability to afford lower-income units based on the AMI category income limits. Program E - 9 is included to develop a priority system for the allocation of extremely low-income units, including prioritizing current residents of Gilroy.
A summary of outreach is also provided in the Housing Needs Assessment and Affirmatively Furthering Fair Housing chapters. For complete survey results and additional detail on outreach, see Appendix C: Outreach.
Public Comments on the September 12, 2022, Draft Housing Element Update The City of Gilroy held a 30-day public review period on the draft Housing Element from September 12, 2022, to October 12, 2022. Twenty-two comment letters and emails were received between January and October 12. The City received two (2) additional comment letters following the end of the 30-day review period. The City of Gilroy received comments from affordable housing advocates and residents. Concerns included RHNA sites analysis, community engagement, and program enhancements. While generally supportive of the City’s draft Housing Element efforts, several comments requested additional or enhanced programs as well as additional analysis or rationale on the site selection. Many of the suggested programs were included in some variation in the draft housing element. Program examples include enhancing the ADU program, seeking more grants and technical assistance, and enhancing community engagement and education.
Comments fell into several categories including:
▪ ADU promotion and incentives (see Program A - 6 and A - 7) ▪ Tools, techniques, and funding sources to increase affordable housing (see Program D - 1, D - 2, D – 3, D - 4, and D - 5)
▪ Streamline permit process (see Program A - 9 and B - 5) ▪ Provide rationale for RHNA sites and how they Affirmatively Further Fair Housing and the needs of Gilroy (addressed in the AFFH and Needs Assessment sections)
9.2 p. 373 of 1163
Introduction ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 13
▪ Expand on community and stakeholder engagement process (see Program G - 1 and G - 2)
▪ Displacement and tenant protections (See Program F - 5) ADUs
Commenters called for more programs and incentives for ADU production and affordability, through methods like reduction of development standards and incentives for below market rate units. Commenters also suggested funding programs for ADU production through a Community Development Financial Institutions Fund (CDFI) program. The original draft included Program A - 6 to track and monitor its ADU production to ensure that annual production matches the RHNA assumption. Program A - 7 commits the City to providing pre designed plans to expedite development review as an incentive to production. In response to public comments received on the draft, the City added a new ADU program (A - 8) which creates a financial assistance program for homeowners who build ADUs with an affordability restriction. The City added program A - 15 (ADU Ordinance Updates) which directs the City to update the zoning ordinance to conform to current state law regarding ADUs. Under this program, the City will replace the ADU deed restriction requirement with an owner affidavit form that does not require recordation at the County. This change will streamline the process for approving ADUs in the City of Gilroy. To further incentivize ADU production, the City will increase the allowable ADU floor area from 1,000 square feet to 1,200 square feet. The City also modified its ADU Education Program (G - 3) by including an effort to consolidate its building department and planning department ADU webpages into one so that all ADU information is in one single place online.
Affordable Housing Incentives and Funding
Several commenters expressed a desire for the City to include examples of funding sources and other tools to support and incentivize the development of affordable housing, such as grants through the Metropolitan Transportation Commission and the Association of Bay Area Governments. The original draft included Programs D - 1, D - 2, D – 3, D - 4, and D - 5 to support housing developers and homeless service providers in financing the development of affordable housing. Program D-2 was amended to include the Metropolitan Transportation Commission and the Association of Bay Area Governments as additional funding sources. As noted above, the revised draft submitted to HCD also includes Program A - 8 which creates a financial assistance program, for homeowners who build ADUs with an affordability restriction.
Permitting
A number of the letters expressed concerns regarding the development process in the City and the constraints that result from the process. Commenters recommended several strategies to improve the transparency and turn-around time for getting permits approved.
The original draft included Programs B - 5 to streamline the permitting process for affordable housing and Program A - 9 that implements a new online permitting system. The revised draft
9.2 p. 374 of 1163
Introduction ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 14
submitted to HCD includes Program B - 8 which creates an Entitlement Roadmap Webpage on the City’s website that provides simple and clear information on how to navigate the City’s permitting process, including projects that can be approved ministerially or through a staff level administrative process.
Engagement and Education
Commenters called for a more extensive community engagement process to reach as many stakeholders as possible and keep them involved throughout the process. Commenters iterated the importance of the promotion and education on housing programs and resources and provided strategies to address this topic. The original draft included Program G - 1 and G - 2 to create education and awareness and to enhance the City community outreach strategy and relations. The revised draft submitted to HCD adds three new programs to improve engagement and education (G - 6, G - 7, and G - 8). Program G - 6 consists of educating the public on homelessness, consolidating information on resources for the unhoused population, and restarting monthly meetings of the unhoused service providers group. Program G - 7 increases bilingual services and advertises the City of Gilroy’s collective bargaining bilingual pay benefit to attract new staff that can assist the Spanish-speaking community in the City.
Program G - 8 creates a Help Center Webpage to provide a centralized resource for tenants and landlords to receive information on local laws, assistance to apply for rent relief, and legal aid.
Tenant Protections
Anti-displacement and tenant protections were prominent issues discussed by commenters.
Several programs were suggested to address these concerns, including tenant relocation assistance, eviction reduction, security deposit limits, Fair Chance Ordinance, legal assistance, and first refusal to purchase. The City amended Program F - 5 to include organizing a focus group to explore displacement prevention polices and completing an analysis of best practices in jurisdictions that are similar to Gilroy, within approximately two years of Housing Element adoption.
Program Changes in Response to Public Comment
In response to public comment the City made a number of additions and changes to its programs during the 10-day revision period in October 2022. The following additions and changes were made to programs to accommodate the needs of the community. ▪ Modified Program A - 6 (ADU Tracking and Monitoring and Ordinance Updates) to include the commitment to coordinate with HCD and revise the ADU ordinance in conformance with state law.
▪ Added Program A - 8 (Incentives for Affordable ADUs) to develop a financial assistance program for homeowners who build ADUs with an affordability restriction or commitment to offering housing choice vouchers, upon securing adequate funding for the program.
9.2 p. 375 of 1163
Introduction ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 15
▪ Modified Program A - 11 (Inclusionary Housing Policy) to include a requirement that developers market both Below-Market-Rate (BMR) units and accessible/adaptable units in developments.
▪ Modified Program A - 12 (Incentives Beyond Density Bonus State Law) to include households with intellectual and developmental disabilities as a special needs group to consider in the expanded program. The City also noted that the Inclusionary Policy could be structured like a Density Bonus program with incentives that are tiered by level of affordability provided.
▪ Added Program A - 14 (Coordination with Santa Clara Office of Supportive Housing) to continue the partnership regarding the development of affordable housing on the property at 8th and Alexander, including offering impact fee waivers. ▪ Added Program B - 8 (Entitlement Roadmap Webpage) to develop a website to provide clear and simple information about the City’s permitting process for residential development. Information will include a flow chart, FAQs, live links, and application forms.
▪ Modified Program D-2 (Funding Sources to Assist Homeownership) to include the Metropolitan Transportation Commission and the Association of Bay Area Governments as additional funding sources.
▪ Modified Program E 6 (Reduced Parking Requirements for Senior Housing) to include discussion of AB 2097 which prohibits minimum parking requirement for projects within one half-mile of public transit.
▪ Modified Program F - 5 (Displacement Prevention Policy) to include organizing a focus group to explore displacement prevention polices and completing an analysis of best practices in jurisdictions that are similar to Gilroy.
▪ Modified Program G - 3 (ADU Education) committing the City to consolidate its two ADU webpages into one page, so that all ADU information is located in a single location. ▪ Added Program G - 6 (Unhoused Population Education and Outreach) to educate the public about the unhoused population and homelessness in the City. The program develops a dedicated website on homelessness, creates printed information for distribution at City Hall and by code enforcement officials in the field, posts resources for the unhoused population on the City website, and commits the City to restarting the unhoused service providers group meetings.
▪ Added Program G - 7 (Bilingual Engagement) to increase availability of bilingual outreach materials and advertise the City of Gilroy’s collective bargaining bilingual pay benefit to attract new staff that can converse with the City’s Spanish-speaking population.
9.2 p. 376 of 1163
Introduction ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 16
Program Changes in Response to HCD Comments
Sufficient Sites. The City revised Program A-1 (No Net Loss Inventory and Monitoring) to include the addition of a no net loss inventory list; revised Program A - 2 (Surplus Lands/Affordable Housing on City-Owned Sites) to advertise City-owned lands to affordable housing providers, the Santa Clara County Office of Supportive Housing, and developers of special needs housing; Program A - 6 (ADU Tracking and Monitoring) was amended to include an update to the ADU strategy if annual production and affordability rates do not match the estimates included in the Housing Sites and Resources chapter; modified Program A - 10 (Facilitate Missing Middle / Middle Income Housing) to provide more flexibility in the type of units allowed under SB 9 by allowing triplexes and fourplexes as an alternative design to a traditional duplex with an ADU or a junior ADU. Added Program E - 12 (Downtown Expansion District and Mixed-Use Corridor Flexibility) to allow 100% Residential in the Downtown Expansion District and provide flexibility for mixed-use projects that accommodate extremely low-income and Special Needs Households.
Governmental Constraints. New programs were added, and existing programs were amended to remove governmental constraints to housing production. Program A - 6 (ADU Tracking and Monitoring) was amended to include an update to the ADU strategy if annual production and affordability rates do not match the estimates included in the Housing Sites and Resources chapter. Program A - 8 (Financial Incentives for Affordable ADUs) was amended to evaluate ADU impact fees If ADU production is lower than anticipated. Program A - 10 (Missing Middle / Middle Income Housing) was amended to allow triplexes and fourplexes on corner lots in the R-1 and R-2 districts with a minimum 6,000 sf lot size. A-15 (ADU Ordinance Updates) was amended to replace the ADU deed restriction requirement with an owner affidavit form that does not require recordation at the County and to increase the allowable floor area from 1,000 square feet to 1,200 square feet. A - 16 (SB 9 Processing) was added to update the City’s SB 9 webpage to include step-by-step, user friendly instructions for processing SB 9 units and lot splits in Gilroy. Program B - 3 (SB35/SB330) was amended to include the creation of checklists and instructions for reviewing and approving SB 35 and SB330 projects, and Zoning Ordinance amendments to ensure that any demolished units shall be replaced pursuant to Government Code Section 65915(c)(3) and Government Code Section 65583.2(g). Under Program B - 7 (Zoning Ordinance update) the City will evaluate development standards for all zones including the Downtown Specific Plan zones for potential governmental constraints. Under Program B - 9 (Building Department Webpage), the City will update the Building Department webpage to include information required pursuant to AB 2234, which should help reduce applicant time and cost and increase certainty. Under Program B - 10 (Zoning Code Annual Updates), the City will establish a process to update City policies, codes and ordinances to comply with new State laws affecting housing and land use. Under Program E - 3 (Emergency Shelters), the City has drafted an update to the zoning ordinance to comply with Assembly Bill (AB) 2339, AB 139, and Government Code Section 65583(a)(4) regarding emergency shelters. Program E - 12 (Downtown Expansion District and Mixed-Use Corridor Flexibility) will allow 100% Residential in the Downtown Expansion District and allow flexibility
9.2 p. 377 of 1163
Introduction ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 17
for the non-residential portion of mixed-use projects that accommodate extremely lowincome and Special Needs Households.
Affirmatively Furthering Fair Housing (AFFH). Program A - 10 (Missing Middle / Middle Income Housing) was amended to allow triplexes and fourplexes on all corner lots in the R-1 and R-2 districts with a minimum 6,000 sf lot size to encourage the development of missing middle housing throughout the City, including high-resource areas primarily comprising detached single-family residences. Programs A - 11 (Inclusionary Policy) and A - 12 (Incentives Beyond Density Bonus State Law) will facilitate affordable housing opportunities in the City’s higher resource / higher income areas. Under Program E - 10 (Development and Rehabilitation of Housing for Persons with Disabilities), the City will evaluate and revise standards and procedures related to reasonable accommodation and residential care homes (i.e., group homes) as necessary to remove governmental constraints. Program F - 3 (Place-Based Improvements in Downtown Gilroy) will improve conditions in the City’s R/ECAP area. Program G - 2 (Community Outreach and Inclusion in the Decision-Making Process) includes geographic targeting in the R/ECAP area. Similarly, Program G - 4 (Increased Outreach in Downtown Areas) directs the city to consider the viewpoints and concerns of all neighborhoods within Gilroy, and specifically the R/ECAP area when drafting the High-Speed Rail Station Area Plan and when updating the Downtown Specific Plan. Under Program G - 7 (Bilingual Engagement), the City will increase Spanish language engagement given the City’s large Hispanic population which is further facilitated by the recent expansion of the City’s bilingual pay benefits, which should increase the number of bilingual staff available to assist the Spanish-speaking community
9.2 p. 378 of 1163
18 CITY OF GILROY
HOUSING ELEMENT
6TH CYCLE
REVIEW OF PAST ACCOMPLISHMENTS
9.2 p. 379 of 1163
Review of Past Accomplishments ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 19
Review of Past Accomplishments
California Government Code Section 65588(a) requires that each jurisdiction review its housing element as frequently as is appropriate and evaluate:
• The appropriateness of the housing goals, objectives, and policies in contributing to the attainment of the state housing goal.
• The effectiveness of the housing element in attainment of the community’s housing goals and objectives.
• The progress in implementation of the housing element.
According to the State HCD, the review is a three-step process:
• Review the results of the previous element’s goals, objectives, and programs. The results should be quantified where possible but may be qualitative where necessary.
• Compare what was projected or planned in the previous element to what was actually achieved. Determine where the previous housing element met, exceeded, or fell short of what was anticipated.
• Based on the above analysis, describe how the goals, objectives, policies, and programs in the updated element are being changed or adjusted to incorporate what has been learned from results of the previous element.
Housing Production
The City of Gilroy had a total RHNA allocation of 1,088 units in the 5th Cycle. As of December 2022, 2,605 units have been permitted during the 5th Cycle, exceeding the overall allocation by 1,517 units. About 60 percent of these new units were affordable to above-moderate incomes.
The City produced nearly five (5) times (490%) the low-income allocation, approximately 46% of its moderate-income allocation, and approximately 68% of its very-low income allocation.
There is a remaining RHNA need of 75 very low-income units and 117 moderate income units.
The following table includes data through the end of 2022, consistent with the 2022 annual progress report submitted to HCD.
9.2 p. 380 of 1163
Review of Past Accomplishments ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 20
Table 1: 5
th Cycle RHNA Progress (2015 through 2022)
Very Low Low Moderate Above
Moderate Total
5 th Cycle RHNA
Allocation 236 160 217 475 1,088
Building
Permits Issued 161 785 100 1,559 2,605
Remaining
Requirement 75 - 117 - 192
No Net Loss and Adequate Sites
The 2015 – 2023 Housing Element identified adequate capacity for its 5 th Cycle allocation of
units, identifying a surplus of 526 lower-income units and 960 above moderate- income units.
Additionally, in 2020, the City updated its General Plan to increase densities for specified land use designations and allow mixed-use residential along the First Street commercial corridor.
These amendments increased zoned capacity for all income levels in Gilroy.
The City reviewed its 5
th Cycle sites, past approvals, and the Zoning Ordinance and determined that it has maintained adequate sites to meet the RHNA for all income levels throughout the 2015 – 2023 planning cycle.
Effectiveness at Assisting Special Needs Populations
This section reviews the City’s progress on assisting populations with special housing needs during the 5th Cycle. The City of Gilroy supports the preservation of long-term housing stability and affordability. The City has received and allocated funding to improve access to needs that improve the quality of life among seniors, the homeless, and extremely low-income households during the 2015 to 2023 planning cycle.
Funding for housing, homeless services, and special needs populations during the 5th Cycle was provided through the federal Community Development Block Grant (CDBG) program, CDBG CARES ACT-Corona Virus (CDBG-CV), and the Housing Trust Fund (HTF).
CDBG Funding. For the 2021 – 2022 fiscal year funding cycle, the City allocated $205,905 in CDBG funds toward community service needs, including senior services ($17,560), youth services ($38,452), health services ($10,250). and home repair ($140,000). For the 2022 – 2023 fiscal year, the City allocated $205,452 in CDBG funds towards senior services ($10,000), youth services ($55,452), and home repair ($140,000). Specific programs and recipients varied slightly between the two fiscal years.
CDBG-CV Funding. The City also allocated $613,154 in CDBG-CV funds towards programming that would address the impacts resulting from the COVID-19 pandemic, including St. Joseph’s Rental Assistance ($287,309), small business assistance ($225,486), and YMCA Healthy Food Delivery ($100,359).
9.2 p. 381 of 1163
Review of Past Accomplishments ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 21
PLHA Funding. The City Council approved the replacement of the HTF with the Permanent Housing Allocation (PLHA) Fund, making more funds available for public service programs addressing basic needs and homelessness prevention. Although the HTF will no longer be made available for public service programs or rehabilitation purposes, it will continue to be used to partially cover staff and consulting service costs to monitor affordable rental and ownership agreements until the money is depleted.
PLHA funding allocations are also based on priorities identified in the City of Gilroy 2020-2025 Consolidated Plan and 2020-2021 Annual Action Plan1. High priority items identified in the plan include special needs services for the elderly, special need services for youth, homeless supportive services, and rehabilitation of existing affordable housing. By partnering with the County and a broad range of community-based organizations, the City is expanding homelessness prevention and basic needs services to assist Gilroy families and individuals who are experiencing, or at risk of, homelessness.
o The City received PLHA funding from the State through application and partnership with Santa Clara County. As a new resource, the City is implementing $474,000 in program funds during the first two years of the PLHA Program. With $110,000 over two years, St. Joseph’s Family Center provides emergency rental assistance, utility assistance, and other supportive programs that help diminish the risk of becoming homeless.
o With $40,000 over two years, Project Sentinel provides fair housing services and investigates complaints to address housing discrimination for Gilroy residents. o With $40,000 over two years, Project Sentinel provides a landlord-tenant counseling and dispute resolution program to help resolve housing conflict and protect Gilroy residents from displacement.
o With $40,000 over two years, Community Agency for Resources Advocacy and Services provides rental and deposit assistance to prevent homelessness for Gilroy families and individuals.
o With $80,000 over two years, South County Compassion Center provides services to unhoused Gilroy residents to meet their basic needs and to connect them with services that can help them attain permanent housing.
o With $70,000 over two years, St. Joseph’s Family Center provides training and employment readiness to prepare individuals that are homeless or at risk of homelessness for stability and greater self-sufficiency. o With $54,000 over two years, The Health Trust delivers meals to low income and homebound seniors at risk of food insecurity, allowing them to remain in their homes.
11 City of Gilroy 2020-2025 Consolidated Plan and 2020-2021 Annual Action Plan. https://www.cityofgilroy.org/DocumentCenter/View/11526/City-of-Gilroy-2020-2025-Consolidated-Plan-and-AAP-FINAL
9.2 p. 382 of 1163
Review of Past Accomplishments ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 22
o With $40,000 over two years, Silicon Valley Independent Living Center provides Gilroy residents with disabilities counseling, emergency rental assistance, and housing search services to obtain safe, affordable, and accessible long-term housing.
As can be seen above, Gilroy is allocating and implementing federal and state grant funding to assist Gilroy’s vulnerable communities and create safe and healthy neighborhoods for all. In general, these programs have been successful at providing new opportunities, resources, and procedures to assist special needs populations. The City is committed to furthering fair housing and supporting special needs populations and has included several programs in its 6 th Cycle Element to further address the housing needs of all groups.
Accessibility Improvements
The need to revitalize older City infrastructure, particularly accessibility for elderly persons and persons with disabilities is identified as a top priority in the City’s 2020 – 2025 Consolidated Plan and 2020 – 2021 Annual Action Plan. The Consolidated Plan further identifies accessibility improvements such as wheelchair ramps, curbing, and sidewalks as one solution to this need.
In November 2021, the City awarded $70,592 in CDBG funding to a consultant to design and prepare construction documents for off-site improvements in front of the Gateway Senior affordable Apartments, located at 6500 Monterey Road. The scope of work included design of a standalone HAWK (High-Intensity Activated Crosswalk) system for safe pedestrian crossing, design of two ADA compliance curb ramps and minor concrete work, and design of new striping for pedestrian crossing and safety. The full construction cost of the CIP project is estimated to be $314,400. For the 2022-2023 fiscal year funding cycle, the City also allocated $145,090 in CDBG funds toward improving sidewalks and curb ramps throughout the City.
Seniors and Residents with Disabilities
The City also identifies supportive services for seniors and persons with disabilities under the Special Needs section of the 2020-2025 Consolidated Plan. As noted above, the City allocated a portion of the CDBG funds and a portion of the PLHA funds towards senior services and residents with disabilities.
Over the two fiscal years from 2021 to 2023, CDBG funds included $18,560 for the Live Oak Adult Day Care program and $8,643 for the Meals on Wheels program which provides access to hot meal deliveries 5-days per week to people with disabilities and seniors who are unable to leave the house. Similarly, $100,359 of the CDBG-CV funds were allocated towards the local YMCA’s food distribution program for homebound seniors impacted by the COVID-19 pandemic and shelter in place orders.
Over the two-year period from 2022-2024, PLHA funds included $54,000 for the Health Trust that delivers meals to low income and homebound seniors at risk of food insecurity, allowing them to remain in their homes, and $40,000 for Silicon Valley Independent Living Center which provides counseling for Gilroy residents with disabilities, emergency rental assistance, and housing search services to obtain safe, affordable, and accessible long-term housing.
9.2 p. 383 of 1163
Review of Past Accomplishments ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 23
The Recreational Division at City Hall provides seniors access to a free Box/Dine in lunch in partnership with the YMCA at the Gilroy Senior Center on 7371 Hanna Street. Free groceries from the Second Harvest Food Bank are available at San Ysidro Park on 7700 Murray Avenue.
At-Risk Youth Services
The 2020 – 2025 Consolidated Plan also identified Gilroy’s at-risk youth as a priority need for the City. Over the 2021 – 2023 (two-year) fiscal cycles, a portion of the CDBG funds discussed above were allocated towards Gilroy’s at-risk youth. The Community Agency for Resources Advocacy and Services (CARAS) RYSE (Reaching our Young people to Succeed and Empower with Unlimited Potential) program received $8,500 to provide support to at-risk young girls through crime prevention, gang intervention, youth empowerment, and recreational activities.
The Boys and Girls Club Ochoa Clubhouse CORE Enrichment Program received $8,500 to empower kids and teens to excel in school, become good community members, and lead healthy, productive lives through education, learning, the arts, health and wellness, character and leadership, sports and recreation, and workforce readiness. The Gilroy Youth Center received $76,904 for engaging high-risk youth and their families with social, recreational and educational programs that support and enhance their quality of life through communitybased recreation. The Gilroy Youth Center is a free program for income eligible residents, providing an after-school program during the school year and a day camp during the summer.
Unhoused Outreach
A portion of the PLHA funds and CDBG-CV funds discussed above was allocated towards homelessness prevention. The following agencies received PLHA Funding for FY 22-23 and FY 23-24: St. Joseph’s Family Center received $110,000 to provide emergency rental assistance, utility assistance, and other supportive programs that help diminish the risk of becoming homeless. St. Joseph’s Family Center received an additional $70,000 to provide training and employment readiness to prepare individuals that are homeless or at risk of homelessness for stability and greater self-sufficiency. Community Agency for Resources Advocacy and Services received $40,000 to provide rental and deposit assistance to prevent homelessness for Gilroy families and individuals. South County Compassion Center received $80,000 to provide services to unhoused Gilroy residents to meet their basic needs and to connect them with services that can help them attain permanent housing.
Through its CDBG-CV funds, the City provided $287,309 in support to Saint Joseph's Family Center's Rental Assistance program. This program is designed to prevent homelessness through emergency rental assistance and deposits. The funds helped very-low-income tenants who have been impacted by COVID-19 with paying a portion of their rents to avoid eviction.
The Program benefited an estimated 231 low-income individuals.
Farmworkers
Due to the seasonal nature of farm work, many households have a difficult time securing safe, habitable, and affordable housing. There are 56 dwelling units within Gilroy City limits to meet the permanent and seasonal housing needs of extremely low-income and low-income
9.2 p. 384 of 1163
Review of Past Accomplishments ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 24
farmworkers. These units are located in the following three (3) housing developments, owned and managed by Eden Housing:
• The Trees, with 14 units
• Aspen Grove, with 24 units
• Maple Gardens with 18 units
In addition, the Santa Clara County Housing Authority (SCCHA) provides 100 farmworker housing units through the Ochoa Migrant Center, located just outside of the Gilroy City boundary. The center serves as a migrant camp 8 months out of the year (April through November) for farmworkers and their families. There are 33 three-bedroom apartments and 67 two-bedroom apartments within the 100-unit development. During the off-season (midDecember through mid-March), the Ochoa Migrant Center provides temporary housing for the unhoused.
9.2 p. 385 of 1163
Review of Past Accomplishments ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 25
2015 – 2023 (5th Cycle) Housing Element Programs
This section illustrates the City of Gilroy’s accomplishments and status in implementing the housing programs identified for the 2015-2023 5
th Cycle, as well as the continued
appropriateness of each program for the 2023-2031 6
th Cycle. Programs that have been
successfully completed or that consist of routine staff functions are marked as “remove,” as these programs are no longer necessary for the 6th Cycle. Previous programs that are continued with no or minor modifications are marked as “continue.” Finally, programs marked as “modify” or “consolidate” are programs that will be continued, but have updated goals and metrics, and may involve combining multiple existing programs into a single 6th Cycle program for ease of use and streamlining.
9.2 p. 386 of 1163
Review of Past Accomplishments ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 26
Table 2: Review of 2015 – 2023 (5th Cycle) Housing Element Programs 5th Cycle
Program
Number
Program Name Objective Time Frame Accomplishments Continued Appropriateness
6th Cycle
Program
Number
HOUSING PRODUCTION
H-1.A Publicize
Residential Sites
Inventory
The City shall make the residential sites
inventory available to developers by
publicizing it on the City website and
providing copies of the sites to developers.
The City shall update the list of sites annually,
or as projects are approved on the sites.
Post on website
within 6 months
of adoption;
update annually,
or as needed
The most recent Residential
Vacant Land Inventory was
completed in October 2022 and is
available on the City’s website.
Retain – modify to
include clear
objectives and
additional
developer
outreach.
A - 4
H-1.B Residential
Development
Ordinance
The City shall review and revise, as
appropriate, the Residential Development
Ordinance to ensure that it does not pose a
constraint on the maintenance, improvement
and development of housing; and provides
capacity to meet the City’s RHNA need.
Furthermore, the City will encourage the
development of housing that is affordable to
a variety of income groups through the
Residential Development Ordinance by
comparing its features with the
Neighborhood District Ordinance and making
any changes to ensure the two policies are
compatible.
Review of RDO
following
adoption of the
New General Plan
(estimated FY
2015/16)
Senate Bill 330, signed by the
governor in 2019, prohibits a
jurisdiction from implementing any
provision that limits the number of
approvals or permits or puts a cap
on the number housing units that
can be approved or constructed, or
limits population. As a result, the
Residential Development
Ordinance is now null and void and
will be repealed as part of the City's
comprehensive zoning update in
2023.
Retain - modify:
The RDO will be
repealed as a part
of the City’s
comprehensive
zoning update in
2023.
B - 1
9.2 p. 387 of 1163
Review of Past Accomplishments ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 27
5th Cycle
Program
Number
Program Name Objective Time Frame Accomplishments Continued Appropriateness
6th Cycle
Program
Number
H-1.C Variety of
Housing in
Neighborhood
Districts
The City shall review and revise, as
appropriate, the Neighborhood District Policy
to ensure that it encourages the
development of housing that is affordable to
a variety of income groups by comparing its
features with the Residential Development
Ordinance and making any changes to
ensure the two policies are compatible and
designed to reach the same goals.
Review of
Neighborhood
District Policy in
conjunction with
the New General
Plan preparation
(estimated FY
2015/16)
The Residential Development
Ordinance is no longer in effect.
The 2040 General Plan includes a
new higher density Neighborhood
District designation, allowing a
greater range of housing types
from single family detached
dwellings (0-7 du/ac) to higher
density multi-family dwellings (16-
30du/ac).
Retain – modify
the
Neighborhood
District policy to
eliminate any
references to the
RDO (see
discussion above)
and provide
standards related
to the new
density ranges
and affordable
housing
requirements.
A - 5
H-1.D Facilitate Infill
Development
The City shall coordinate efforts with private
and non-profit developers, and other housing
related groups to encourage the construction
of residential development through a menu
of regulatory incentives (e.g., streamlined
review and other methods that will effectively
encourage infill development). The City shall
monitor infill development on a biannual
basis to ensure the effectiveness of programs
to encourage housing development. If, based
on its biannual review, the City finds that
additional programs are needed to facilitate
infill development, the City shall revise
programs as appropriate.
Monitor biennially
starting in 2016
Between January 1, 2015 and
December 31, 2022, the City
permitted 2,605 new residential
units. The City’s residential
development standards are
generally very permissive. For
example, single-family and multifamily residential projects that comply with objective development
and design standards can
generally be approved through a
ministerial or administrative
review process, without the need
for public hearings.
Furthermore, multi-family
development is typically built with
moderate to high densities, with
higher densities allowed through
Retain – modify
with a program
that will “Facilitate
Missing Middle
Housing” by
streamlining the
entitlement
process with a
ministerial
process for
duplexes,
triplexes and
quadplexes in
specified areas of
the City, that
meet objective
design standards.
A - 9
9.2 p. 388 of 1163
Review of Past Accomplishments ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 28
5th Cycle
Program
Number
Program Name Objective Time Frame Accomplishments Continued Appropriateness
6th Cycle
Program
Number
the State Density Bonus law.
H-1.E Monitor Permit
Requirements,
Processing
Procedures and
Land Use
Controls
To ensure permit requirements and
processing procedures do not constrain
residential development, the City shall
evaluate current requirements and
procedures on a biannual basis. The City shall
consult builders and other parties engaged in
housing development activities to identify
concerns. If permitting requirements are
determined to be a constraint to residential
development the City shall modify permitting
requirements and/or procedures to address
constraints, as feasible.
Biennial
evaluation
starting in 2016
and implement
changes as
appropriate
In 2020, the City awarded the
contract for the purchase and
implementation of a Land
Management System to Tyler
Technologies for the
implementation of EnerGov to
manage and track land
development applications, business
and professional licenses, special
event permits, code enforcement
cases, and fire prevention/pretreatment/ hazardous materials management. The City and Tyler
teams kicked off the project in
September of 2020 with an
anticipated "go-live" in 2023.
Applicants will be able to check the
status of their permit online and
staff will have greater control over
the workflow. The City also
continues to hold development
stakeholder roundtable meetings
(virtual in 2020) to maintain a dialog
with the Development Community.
Topics included bicycle parking,
objective design standards, and a
potential update to the City's
Downtown Specific Plan.
Retain - modify by
splitting into two
programs. One
for the Land
Management
System
Implementation
and one that is
streamlining the
permit process as
a part of the 2023
comprehensive
Zoning Ordinance
update
A - 8 and
B - 5
9.2 p. 389 of 1163
Review of Past Accomplishments ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 29
5th Cycle
Program
Number
Program Name Objective Time Frame Accomplishments Continued Appropriateness
6th Cycle
Program
Number
H-1.F Zoning to
Encourage and
Facilitate SingleRoom
Occupancy Units
The City shall revise the Zoning Ordinance to
establish explicit definitions for and
regulatory standards addressing single-room
occupancy units.
Review and
Amend Zoning
Ordinance
(estimated FY
2015/16)
following
adoption of the
New General Plan
Not completed. The City will include
a definition for and regulatory
standards addressing single-room
occupancy units as part of the 2023
Zoning Update.
Retain - modify E - 2
H-1.G Study MicroUnitsThe City shall conduct a study of the appropriateness of “micro-units” in Gilroy
and the existing barriers in the Zoning
Ordinance to the provision of micro-units.
Based on the findings of the study, the City
will make a determination of the
appropriateness of micro-units in Gilroy and,
if determined appropriate, identify methods
for eliminating barriers, and establish
appropriate development standards.
FY 2017/18 Not completed. The City will define
“micro-units” in Gilroy as part of the
2023 Zoning Update.
Retain – modify
The draft 2023 –
2031 Housing
Element includes
a program to
develop
incentives for
micro-units which
help contribute to
the City’s
affordable by
design housing
stock.
E - 5
AFFORDABLE HOUSING
H.2.A Develop
Affordable
Housing
Incentives
The City shall review and revise, as
appropriate, current incentives and
regulatory concessions available to
developers for the development of affordable
housing throughout the city, and especially
within the Downtown Gilroy Specific Plan
area and Neighborhood District. Incentives
and regulatory concessions may include, but
are not limited to parking reductions, and
reduced setbacks. The City shall also provide
technical assistance, as feasible; information
Review incentives
within 1-year of
Housing Element
adoption; revise,
as appropriate;
Monitor
effectiveness of
incentives and
regulatory
concession
biennially, staring
Partially Complete. The City
continues to monitor development
in the Neighborhood
District areas (e.g., Glen Loma) and
the Downtown Specific Plan area
and provide technical assistance to
potential developers.
The draft 2023-2031 Housing
Element includes a program to
Retain – modify
The draft 2023-
2031
Housing Element
also anticipates
new development
in the
downtown area
including
A - 10
9.2 p. 390 of 1163
Review of Past Accomplishments ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 30
5th Cycle
Program
Number
Program Name Objective Time Frame Accomplishments Continued Appropriateness
6th Cycle
Program
Number
on State and Federal funding opportunities;
and marketing to potential developers.
The City shall continue to monitor
development within the City’s Downtown
area on a biannual basis to ensure the
implementation of the Specific Plan’s policy
on encouraging the development of a mix of
retail, office and higher density residential
uses. The City shall encourage the
development of uses within the area to
closely follow the recommended land use
assumptions contained in the Specific Plan. If,
based on its biannual review, the City finds
that the proportion of residential uses to
non-residential uses are not being developed
as assumed in the Specific Plan, the City shall
investigate additional incentives, concessions
or assistance and revise programs as
appropriate.
in 2016; Ongoing
monitoring of
development
within Downtown
Specific Plan.
adopt an Affordable Housing Policy.
The City continues to seek grant
funding to update the
Downtown Specific Plan to ensure
that the City’s vision for the
downtown is implemented.
affordable
housing units
H-2.B Pursue Funding
for Affordable
Housing
The City shall pursue funding from State,
Federal, and regional sources and support
applications for funding to help increase the
supply of affordable housing. Funding
programs may include but are not limited to:
• One Bay Area Grants awarded by the
Association of Bay Area Governments;
• HCD Local Housing Trust Fund Program;
• HUD Section 811 funding for supportive
housing for extremely low-income
residents;
• The state Infill Infrastructure Grant
program, sponsored by the Department
At least biennially,
or as funding
opportunities
become available
The City evaluates funding
opportunities as they arise and
apply as appropriate. The City also
facilitates public hearings on behalf
of private developers who wish to
seek tax credit financing for an
affordable housing project.
Retain D - 4
9.2 p. 391 of 1163
Review of Past Accomplishments ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 31
5th Cycle
Program
Number
Program Name Objective Time Frame Accomplishments Continued Appropriateness
6th Cycle
Program
Number
of Housing and Community
Development (HCD); and
• The State Multifamily Housing Program
(MHP), sponsored by HCD.
H-2.C Community
Development
Block Grant
Program
The City shall continue to administer the
Community Development Block Grant
Program for all eligible activities, including
acquisition, rehabilitation, home buyer
assistance, economic development, homeless
assistance, public services, and public
improvements. The City shall continue to
inform non-profit organizations of funding
availability through the City’s website and
informational packets at City Hall.
Annually The City continues to administer
the CDBG program and funds
eligible activities as funding allows.
One such activity is a housing
rehabilitation program that helps
low income individuals with
accessibility improvements. The city
has provided a grant to Rebuilding
Together Silicon Valley to operate
and expand the Home Repair,
Rehabilitation and Modification
program in Gilroy. This program
provides a wide range of home
repair, accessibility, mobility and
rehabilitation improvements for
low income homeowners.
Retain D - 5
9.2 p. 392 of 1163
Review of Past Accomplishments ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 32
5th Cycle
Program
Number
Program Name Objective Time Frame Accomplishments Continued Appropriateness
6th Cycle
Program
Number
H-2.D Housing Trust
Fund
The City shall continue to administer the
City’s Housing Trust Fund for all eligible
activities, including new construction,
acquisition, rehabilitation, home buyer
assistance, homeless assistance, public
services related to housing, and preservation
of affordable housing. The City shall continue
to inform non-profit organizations of funding
availability through the City’s website and
informational packets at City Hall.
Annually Completed. During most of the 5th
cycle planning period, the City
allocated Housing Trust funds
towards housing-related activities.
These activities include fair housing
services, tenant landlord
counseling services, and homeless
prevention services. In 2022, the
City replaced the HTF with the
Permanent Housing Allocation
(PLHA) Fund, making more funds
available for public service
addressing homeless basic need
programs as well as programs that
focus on homelessness prevention.
Retain – modify to
reflect funds are
from the PLHA
rather than the
Housing Trust
Fund
D - 1
9.2 p. 393 of 1163
Review of Past Accomplishments ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 33
5th Cycle
Program
Number
Program Name Objective Time Frame Accomplishments Continued Appropriateness
6th Cycle
Program
Number
H-2.E Funding Sources
to Assist
Homeownership
The City shall pursue potential sources of
additional funding for homeownership
assistance, including the availability of State
HCD, CalHFA funds, HOME, and County
funds. The City shall improve public outreach
activities through the compilation of
resources for down payment assistance,
silent second mortgages, and other means of
acquiring a home.
Development of
resources for
public
dissemination by
December 2015;
ongoing review of
additional
funding sources
Partially completed. The City has
posted on its website links to
organizations who offer
homebuyer assistance, including
the Housing Trust of Silicon Valley,
an organization that helps first-time
homebuyers secure Below Market
Rate (BMR) down payment
assistance.
On December 6 and December 8,
2022, the City co-hosted
Spanish and English Webinars
(respectively) to educate the public
on the Santa Clara County
Empower Homebuyers Down
Payment Assistance Program. The
webinar was co-hosted with the
City of Morgan Hill and the Housing
Trust of Silicon Valley.
Retain - modify D - 2
H-2.F Section 8
Referrals
The City shall continue to provide Section 8
referral services and information to City
residents. The City shall make information on
the Section 8 voucher program available on
the City website.
Post on website
by January 2016;
provide referral
on an ongoing
basis
Completed. The City has posted on
its website a link to the Housing
Authority of Santa Clara County
website. Here individuals can learn
more about Housing Choice
voucher eligibility and determine if
the current waiting list is accepting
any additional households.
Retain D - 3
9.2 p. 394 of 1163
Review of Past Accomplishments ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 34
5th Cycle
Program
Number
Program Name Objective Time Frame Accomplishments Continued Appropriateness
6th Cycle
Program
Number
H-2.G Development of
Housing for
Extremely LowIncome
Households
The City shall review and incorporate
appropriate regulatory incentives, financial
incentives, and other policies that encourage
the development of housing units for
extremely low-income households. The City
shall encourage and support the
development of housing for extremely lowincome households within future affordable housing projects through various strategies
and programs that may include assistance
with entitlement processing; and modifying
development standards and granting
concessions and incentives for projects that
provide housing for lower income families.
Review and
amend Zoning
Ordinance
(estimated FY
2015/16), as
appropriate,
following
adoption of the
New General Plan
Partially completed. The City
continues to encourage developers
to include extremely low-income
units in their housing projects. Staff
are available to meet with
developers and discuss various
incentives and concessions,
consistent with State density bonus
law.
Retain – modify
by including an
incentives beyond
density bonus
state law program
with incentives
for ELI
households, and
inclusionary
housing policy.
A - 10 and
A - 11
H-2.H Water and Sewer
Service Priority
The City shall review and update every five
years, as necessary, the Water and Sewer
Service Priority Policy to ensure future
affordable projects will receive service
priority.
Review every 5
years, starting
December 2015
Completed. The Gilroy collection
system includes about 140 miles of
sewer mains. Policies in the new
2040 General Plan provide for
reliable sewer service for all
residents and businesses through a
cooperative effort between the City
and SCRWA. The General Plan also
includes policies to ensure the
provision of healthy, safe water for
all users in Gilroy through facilities,
policies, programs, and regulations.
Retain and Modify E - 1
9.2 p. 395 of 1163
Review of Past Accomplishments ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 35
5th Cycle
Program
Number
Program Name Objective Time Frame Accomplishments Continued Appropriateness
6th Cycle
Program
Number
HOUSING PRESERVATION AND REHABILITATION
H-3.A Housing
Rehabilitation
To enhance the quality of existing
neighborhoods, the City shall continue to
implement the City’s Housing Rehabilitation
Program. The City will continue using
Community Development Block Grant (CDBG)
funds to assist in the improvement of
substandard housing.
Ongoing The City currently funds a housing
rehabilitation program that
provides accessibility
improvements to very low income
households. The City has provided
a grant to Rebuilding Together
Silicon Valley to operate and
expand the Home Repair,
Rehabilitation and Accessibility
Modification program in Gilroy.
This program will provide a wide
range of home repair, accessibility,
mobility and limited rehabilitation
improvements for low income
homeowners.
Retain C - 2
H-3.B Code
Enforcement
Program
To ensure continued maintenance of housing
quality, condition, and use, the City shall
continue to enforce building codes to
address existing exterior and interior code
violations. Within current staffing limits, the
City shall contact owners of units identified as
substandard, offering inspection services and
providing information on the City’s
Rehabilitation Loan Program and
landlord/tenant information and mediation
services.
Ongoing The City continues to enforce
building codes to address code
violations. Code enforcement
officers work with owners of units
identified as substandard, offering
inspection services and providing
information on the City’s programs
and services.
.
Retain – modify to
set quantified
objective
C - 3
9.2 p. 396 of 1163
Review of Past Accomplishments ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 36
5th Cycle
Program
Number
Program Name Objective Time Frame Accomplishments Continued Appropriateness
6th Cycle
Program
Number
H-3.C Monitoring of
Units At-Risk of
Converting to
Market Rate
The City shall provide for regular monitoring
of deed-restricted units that have the
potential of converting to market rate. In
order to proactively address units at-risk of
conversion, the City shall develop a program
to partner with non-profit housing providers
and develop a preservation strategy. This
strategy will at least include biennial contact
with property owners of affordable units,
identification of funds to purchase and
preserve affordable units, noticing of tenants
and technical assistance with applications for
funds.
Ongoing To date, no multi-family affordable
housing units have converted to
market rate or are at-risk of
conversion. Many of the complexes
have undergone significant
rehabilitation to update and
prolong the longevity of the units.
The city has contracted with
HouseKeys to serve as Program
Administrator of the city's BMR
home ownership and rental
property program. HouseKeys will
continue to evaluate the city's
current multi-family affordable
housing stock to determine if any
developments are at-risk of
conversion.
Retain C - 1
H-3.D Resale Control
on OwnerOccupied Below
Market Rate
Units
The City shall continue to implement resale
controls on owner-occupied Below Market
Rate (BMR) units to ensure that affordable
units provided through public assistance or
public action are retained for 30 years or
more as affordable housing stock.
Ongoing The City has contracted with
HouseKeys to serve as Program
Administrator of the city's BMR
home ownership and rental
property program.
Retain C - 4
H-3.E Rent and Income
Restrictions on
Rental BelowMarket Rate
Units
The City shall continue to implement rent and
income restrictions on rental Below Market
Rate (BMR) units to ensure that affordable
units provided through public assistance or
public action are retained for 30 years or
more as affordable housing stock.
Ongoing The City has contracted with
HouseKeys to serve as Program
Administrator of the city's BMR
home ownership and rental
property program to to help ensure
that the homeowners and property
owners are complying with
affordable housing requirements.
Retain C - 5
9.2 p. 397 of 1163
Review of Past Accomplishments ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 37
5th Cycle
Program
Number
Program Name Objective Time Frame Accomplishments Continued Appropriateness
6th Cycle
Program
Number
HOUSING OPPORTUNITY FOR RESIDENTS WITH SPECIAL NEEDS
H-4.A Housing for
Large Families
The City shall review and revise the Zoning
Ordinance, as appropriate, to incorporate
appropriate regulatory incentives, and other
policies that encourage the development of
rental housing units with three or more
bedrooms to accommodate the needs of
large families. The City shall encourage and
support the development of rental housing
for large families within future affordable
housing projects through various strategies
and programs that may include assistance
with site identification and entitlement
processing; and modifying development
standards and granting concessions and
incentives.
Review and
amend Zoning
Ordinance
(estimated FY
2015/16), as
appropriate,
following
adoption of the
New General Plan
Not completed. The City will
consider the appropriateness of
regulatory incentives and other
policies that encourage the
development of rental housing
units with three or more bedrooms
to accommodate the needs of large
families in Gilroy as part of the
2023 Zoning Update and the 2023 –
2031 Housing Element incentives
beyond density bonus law
program.
Remove and
consolidate with
Density Bonus
Incentives
program
The 2023 – 2031
Housing Element
includes a
program to
develop
incentives to
encourage the
development of
housing to
accommodate the
needs of large
families in Gilroy.
A - 11
H-4.B Development of
Housing for
Seniors
The City shall consider areas for new senior
housing development, including residential
care facilities, that are convenient to public
transit and within walking distance to
shopping and restaurants, and incorporate
appropriate regulatory incentives, financial
incentives, and other policies that encourage
the development of housing for seniors. The
City shall continue to accept Senior only and
Affordable Senior Housing projects through
the RDO Exemption program to encourage
the development of these projects.
Review and
amend Zoning
Ordinance
(estimated FY
2015/16), as
appropriate,
following
adoption of the
New General Plan
Not completed. As noted above,
the Residential Development
Ordinance is no longer in effect.
The City will consider areas for new
senior housing development,
including residential care facilities,
as part of the 2023 Zoning Update.
Retain – modify.
The RDO is no
longer in effect.
Housing for
seniors is a need
that will be
considered and
incorporated into
the incentives
beyond density
bonus state law
A - 11
9.2 p. 398 of 1163
Review of Past Accomplishments ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 38
5th Cycle
Program
Number
Program Name Objective Time Frame Accomplishments Continued Appropriateness
6th Cycle
Program
Number
H-4.C Reduced Parking
Standards for
Senior Housing
The City shall conduct a study to determine if
reduced parking standards for senior
housing is appropriate in Gilroy. Based on the
findings of the study, the City may revise the
Zoning Ordinance, as necessary, to reduce
parking standards for senior housing.
Conduct study
and review
Zoning Ordinance
(estimated FY
2015/16) (as
appropriate)
following
adoption of the
New General Plan
Not completed. The City will
consider reduced parking
standards for senior housing as
part of the Zoning Ordinance
update, which will be completed in
2023.
Retain E - 6
H-4.D Development
and
Conservation of
Housing for
Farmworkers
The City shall continue to partner with the
Housing Authority of Santa Clara County and
various non-profit organizations to explore
and implement ways of providing affordable
farmworker housing. The City shall assist with
requests by developers for State and Federal
funding for development of multi-family
housing within city limits.
Outreach to Santa
Clara Housing
Authority and
non-profit
organizations
biennially starting
in 2016, and
identify and
pursue
development, as
appropriate
The City maintains communication
with Santa Clara County and other
organizations regarding the need
for farmworker housing and the
potential for expanding
farmworker housing in Gilroy.
There is currently farm worker
housing in Gilroy, including three
apartment buildings (managed by
Eden Housing). The Ochoa Migrant
Camp (managed by EAH Housing) is
just outside of city boundaries. The
Ochoa Migrant camp is seasonal,
following the surrounding harvest
season. During the off season, it is
used to accommodate un-housed
families.
Retain E - 7
9.2 p. 399 of 1163
Review of Past Accomplishments ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 39
5th Cycle
Program
Number
Program Name Objective Time Frame Accomplishments Continued Appropriateness
6th Cycle
Program
Number
H-4.E Consistency with
the Employee
Housing Act
The City shall update the Zoning Ordinance
to be consistent with the Employee Housing
Act (Health and Safety Code 17021), which
generally requires employee housing to be
permitted by-right, without a CUP, in singlefamily zones for less than six persons, and in all zones that allow agricultural uses with no
more than 12 units or 36 beds.
Review and
amend Zoning
Ordinance
(estimated FY
2015/16)
following
adoption of the
New General Plan
Not completed. The City will update
the Zoning Ordinance to be
consistent with the Employee
Housing Act (Health and Safety
Code 17021). The zoning update
will be completed in 2023.
Retain E - 8
H-4.F Support
Homeless
Service
Providers
The City shall continue to support the efforts
of agencies providing emergency shelter for
homeless residents, including providing
funding when feasible and appropriate.
Ongoing The City provides funding to
homeless service providers
through both its CDBG and
HTF/PLHA programs. Services
include referrals to the Santa Clara
County Continuum of Care
program, case management,
homelessness prevention and
provision of basic need items.
The City hosts monthly meetings
with Unhoused Service
Providers. The goal of USP Network
is to increase collaboration
and partnership among the service
providers and the City of
Gilroy to connect the unhoused
with services.
Consolidate with
other programs;
the PLHA and
CDBG funds
includes funding
for homelessness
prevention
services and
homelessness
assistance
D – 1 and
D - 5
H-4.G Home Access
Grants
The City shall continue to administer Home
Access Program to provide very low-income
disabled residents with help in safely entering
and exiting their homes and accessing
essential areas within their homes.
Ongoing This program was eliminated from
the consolidated plan. The City
continues to look at programs that
can help its very-low income
disabled residents, including the
Home Access Program.
Remove and
consolidate with
Housing
Rehabilitation
program
C - 2
9.2 p. 400 of 1163
Review of Past Accomplishments ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 40
5th Cycle
Program
Number
Program Name Objective Time Frame Accomplishments Continued Appropriateness
6th Cycle
Program
Number
H-4.H Coordinate with
the San Andreas
Regional Center
The City shall work with the San Andreas
Regional Center to implement an outreach
program informing residents of the housing
and services available for persons with
developmental disabilities. The City shall
make information available on the City
website.
Initiate
coordinate by
2016
The San Andreas Regional Center
provides services to residents at
Villa Esperanze in Gilroy.
Remove N/A
H-4.I Zoning
Ordinance
Amendments for
Transitional and
Supportive
Housing
The City shall update the Zoning Ordinance
to be fully compliant with State law and allow
transitional and supportive housing in all
zones that allow residential uses, subject to
the same restrictions that apply to other
residential uses of the same type in the same
zone.
Amend Zoning
Ordinance
(estimated FY
2015/16)
following
adoption of the
New General Plan
Completed. The Zoning Ordinance
allows transitional and supportive
housing in all residential zoning
districts, subject to the same
restrictions that apply to other
residential uses of the same type in
the same zone.
Remove N/A
FAIR HOUSING
H-5.A Fair Housing
Counseling
The City shall continue to provide funds to
and contract with a non-profit agency to
provide fair housing assistance including
landlord/tenant counseling, homebuyer
assistance, and improvement or removal of
identified impediments. The City shall
disseminate information about fair housing
assistance through pamphlets in City-owned
buildings and other public locations (e.g., City
Hall, Library, post office, other community
facilities) and by posting information on the
City website.
Ongoing The City funds fair housing
counseling services through its
Housing Trust/PLHA Fund program.
It also publishes the availability of
both tenant/landlord counseling
and fair housing services via its
website.
Retain F - 2
9.2 p. 401 of 1163
Review of Past Accomplishments ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 41
5th Cycle
Program
Number
Program Name Objective Time Frame Accomplishments Continued Appropriateness
6th Cycle
Program
Number
EXPANDING OUTREACH
H-6.A Interagency
Collaboration for
Lower Cost
Housing
The City shall continue participation in
Countywide housing assistance programs,
and collaborate with other public agencies
and non-profit housing sponsors in the use
of available programs to provide lower-cost
housing in Gilroy.
Ongoing Abode Services provides a direct
subsidy to one individual at the
Cherry Blossom Apartments,
owned by the City, through a
partnership with the City and
Community Solutions. The City also
facilitates TEFRA hearings, as
needed, to allow for the
development and rehabilitation of
affordable housing units
throughout the City.
Consolidate – roll
into programs to
outreach for
developers and a
program to
provide for
rehabilitation of
affordable
housing units.
G - 1 and
C - 2
H-6.B Collaboration
with
Development
Community
The City shall continue to establish
relationships with and provide technical
assistance to both for-profit and non-profit
development companies working in the area
of affordable housing, facilitating innovative
partnerships and collaborative approaches to
affordable housing development. The City will
especially utilize the Housing Advisory
Committee to address housing issues and
provide outreach to the development
community.
Ongoing The City continues to establish
collaborative relationships with forprofit and non-profit development companies to find innovative
approaches to affordable housing
development in Gilroy. The housing
advisory duties now fall under the
Planning Commission, a decisionmaking body with authority to approve or recommend approval of
housing developments in Gilroy.
City staff continue to provide
outreach to the development
community.
Retain and
modify
G - 1
9.2 p. 402 of 1163
Review of Past Accomplishments ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 42
5th Cycle
Program
Number
Program Name Objective Time Frame Accomplishments Continued Appropriateness
6th Cycle
Program
Number
H-6.C Community
Access to
Housing
Information
To ensure the Gilroy community is provided
the highest level of access to information, the
City shall evaluate the effectiveness of
existing outreach and community education
efforts and develop a comprehensive
outreach strategy for the delivery of housing
information. The outreach strategy will
consider various methods of delivery,
including print media, mailers, web-based
information, and other methods that
consider economic and cultural
considerations unique to the City of Gilroy.
Develop housing
information
strategy by June
2016
The City's 2040 General Plan,
adopted in November 2020,
includes goals, policies, and
implementation actions regarding
outreach and community
education efforts including various
methods of delivery, such as print
media, mailers, web-based
information, and other methods
that consider economic and
cultural considerations unique to
the City of Gilroy.
City hosts monthly meetings with
Unhoused Service
Providers. The goal of USP Network
is to increase collaboration
and partnership among the service
providers and the City of
Gilroy to connect the unhoused
with services.
Retain G - 5
H-6.D Annual Review
of Housing
Element
Pursuant to HCD Requirements, the City shall
conduct an annual implementation review of
the Housing Element. The review will include
the following information: a log of new
residential development permits and
completion reports; inventory of units built in
the Extremely Low-, Very Low- and LowIncome categories, an update or inventory of approved projects; an annual estimate of
population from the State Department of
Finance; and available vacant land and zoning
survey.
Annually to HCD The City has submitted Annual
Progress Reports in from 2015
through 2022.
Remove N/A
9.2 p. 403 of 1163
43 CITY OF GILROY
HOUSING ELEMENT
6TH CYCLE
HOUSING NEEDS ASSESSMENT
9.2 p. 404 of 1163
Housing Needs Assessment ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 44
Housing Needs Assessment
The housing needs assessment discusses the varied needs of all segments of the community.
Components that dictate housing need are population trends, demographics, employment trends, household characteristics, housing stock characteristics, housing inventory and market conditions, and preservation of at-risk units. The assessment also analyzes the housing needs of various special needs groups including elderly persons, large households, female-headed households, persons with disabilities (including intellectual and developmental disabilities), homeless/unhoused persons, farmworkers, and extremely low-income households. These components are presented within the context of Gilroy, Santa Clara County, and other regional or neighboring areas as appropriate. The needs assessment guides the identification of appropriate goals, policies, and programs for the City to implement during the 2023–2031 Housing Element Cycle.
The needs assessment uses multiple data sources for analysis. Primary data sources include the 2019 American Community Survey (ACS), the 2014–2018 Comprehensive Housing Affordability Strategy (CHAS) published by the US Department of Housing and Urban Development (HUD), and the 2020 US Census. CHAS provides information related to households with housing problems, including overpayment, overcrowding, and those without complete kitchen facilities and plumbing systems. The CHAS data is based on the 2014–2018 ACS data files but differs from the standard files by including a variety of housing need variables split by HUD-defined income limits and HUD-specified household types. CHAS data uses the HUD Area Median Family Income (HAMFI), which is similar to the area median income (AMI) used by the California Department of Housing and Community Development (HCD), except that it does not utilize the income categories described below. Both the AMI and HAMFI use the same median income from the metropolitan statistical area. In Gilroy, the calculation for the San Jose/Sunnyvale/Santa Clara metropolitan statistical area is used. Tables that use HAMFI instead of AMI are noted.
Note that data from the different sources and different years may have varying estimates for totals such as population or number of households.
Some of the data is broken down by income group. HCD uses five income categories to evaluate housing need based on the AMI for each metropolitan statistical area. The AMI is used for both funding and planning purposes. The categories and their corresponding percentages of the AMI are as follows:
• Extremely low-income households, 0% to 30% of the AMI • Very low-income households, between 31% and 50% of the AMI • Low-income households, between 51% and 80% of the AMI • Moderate-income households, between 81% and 120% of the AMI • Above moderate-income households, above 120% of the AMI
9.2 p. 405 of 1163
Housing Needs Assessment ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 45
Extremely low-, very low-, and low-income households may be grouped together for planning purposes and referred to as “lower-income households.”
Projected Housing Needs
California General Plan law requires that each city and county have land zoned to accommodate its fair share of the regional housing need. A local jurisdiction’s “fair share” of regional housing need is the number of additional housing units needed to accommodate the forecasted household growth, replace the loss of existing housing units, and achieve vacancy rates that contribute to a stable and healthy housing market. HCD determines the projected housing need for each region. The housing unit need as determined by HCD for the 2023–2031 planning period for the Bay Area region is 441,176 units. The Association of Bay Area Governments (ABAG) is responsible for allocating housing needs to each jurisdiction within the Bay Area region, which includes Gilroy. Housing unit allocations are divided into four income categories: very low, low, moderate, and above moderate. Gilroy’s RHNA is a total of 1,773 units, as shown in Table 3.
Table 3: Gilroy RHNA, 2023–2031
Income Group % of County AMI Units % of Units
Very Low* 31–50% 669 37.7%
Low 51–80% 385 21.7%
Moderate 81–120% 200 11.3%
Above Moderate > 120% 519 29.3%
Total - 1,773 100%
Source: ABAG, Regional Housing Needs Allocation, 2023-2031. *Note: Pursuant to AB 2634, local jurisdictions are also required to project the needs of extremely low-income households (0– 30% of AMI). The projected extremely low-income need can be assumed as 50 percent of the total need for the very low-income households.
Existing Housing Need
Demographic Characteristics
Understanding the demographic characteristics and trends in a city is an important facet of planning for the needs of a community. This section summarizes the population size, age, and racial/ethnic composition of the City of Gilroy and region.
Population Growth Trends
The City of Gilroy is one of 15 cities in Santa Clara County. Gilroy is the southernmost incorporated city in Santa Clara County and is surrounded by the unincorporated county. The 2020 US Census estimated the population of Gilroy at 59,520, an increase of over 10,500 from 2010. Table 4 displays the population trends of Gilroy and surrounding areas, including areas in southern Santa Clara County and northern Santa Cruz County. Gilroy’s population increase
9.2 p. 406 of 1163
Housing Needs Assessment ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 46
was similar to Morgan Hill and Hollister, but more than double the growth rate of Watsonville and Santa Clara County as a whole.
Table 4: Regional Population Trends, 2010–2020
City 2010 2020 % Change
Gilroy 48,821 59,520 21.9%
Morgan Hill 37,882 45,483 20.1%
Watsonville 51,199 52,590 2.7%
Hollister 34,928 41,678 19.3%
Santa Clara County 1,781,642 1,936,259 8.7%
Source: US Census, 2010 and 2020.
Both the City of Gilroy and Santa Clara County continue to see steady population growth.
According to the US Census and the California Department of Finance, Gilroy experienced an average annual growth rate of 1.6 percent between 2010 and 2020, which was higher than the County’s average annual growth rate (AAGR) of 1 percent, as shown in Table 5. The growth rate in Gilroy remained steady in comparison to the period from 2000 through 2010, which was 1.7 percent. Table 5 compares the AAGRs of the City and County from 2000 through 2020.
Table 5: Average Annual Population Growth Rate
Jurisdiction
2000 2010 2020 2000–2010 2010–2020
Total Population Population
Increase AAGR Population Increase
AAGR
Gilroy 41,464 48,821 59,520 7,357 1.7% 10,699 1.6%
Santa Clara
County 1,682,585 1,781,642 1,936,259 99,057 0.6% 154,617 1.0% Source: Decennial Census, 2020
Age Composition
Table 6 summarizes the population’s age distribution and percentage change from 2000 to 2019. Different age groups have varying housing needs that may fluctuate across the stages of life. Generally, both the young adult (20 to 34 years old) and the elderly (65 years and older) live in apartments, condominiums, and smaller single-family units. Persons over 65 may also need accommodations so that they can age in place. Persons between the ages of 35 to 65 are more likely to live in single-family homes during this stage of life, per the census estimates. 2 From 2010 to 2019, the largest increases in population were in age groups from 55 to 84 years of age. There was a slower rate of growth in the 25 to 34 years age group and a negative change 2 https://censusreporter.org/data/table/?table=B25125&geo_ids=16000US0629504&primary_geo_id=16000US0629504.
9.2 p. 407 of 1163
Housing Needs Assessment ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 47
in the 4 years and younger and the 85 years and older age group. This data suggests that there is an increasing need for senior focused housing in Gilroy, which may take the form of agerestricted developments, smaller units, increased support services, and housing with proximity to healthcare.
Table 6: Population Age Distribution, Gilroy
Age Group 2000 2010 2019
% Change
(2000–2010)
% Change
(2010–2019)
Age 0-4 3,903 4,144 3,738 6.2% -9.8%
Age 5-14 7,550 8,419 9,885 11.5% 17.4%
Age 15-24 6,194 6,934 8,079 11.9% 16.5%
Age 25-34 6,790 6,718 7,006 -1.1% 4.3%
Age 35-44 6,750 7,386 8,439 9.4% 14.3%
Age 45-54 4,919 6,613 7,553 34.4% 14.2%
Age 55-64 2,543 4,509 6,123 77.3% 35.8%
Age 65-74 1,522 2,326 3,656 52.8% 57.2%
Age 75-84 958 1,237 1,756 29.1% 42.0%
Age 85+ 335 535 531 59.7% -0.7%
Source: US Census 2000, 2010, 2019
Figure 1 shows the age distribution of Gilroy and Santa Clara County in 2019. The distribution is largely similar between the two. Gilroy has a higher percentage of the population that is 24 years or younger, while the County has a larger percentage of the population between 25 and 39 years of age. The County’s population above 45 years of age is also higher than Gilroy.
9.2 p. 408 of 1163
Housing Needs Assessment ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 48
Figure 1: Population Age Distribution, 2019
Source: ACS 2019
Race and Ethnicity
An understanding of the racial and ethnic trends in a region contributes to an analysis of housing demand. Non-White populations occupy multifamily units at a higher rate. 3 Race and
ethnicity characteristics also can be associated with income levels. Table 7 summarizes the racial and ethnic composition of the population in 2010 and 2019. As of 2019, 59 percent of Gilroy residents of any race were of Hispanic or Latino origin and 41 percent were NonHispanic. Of the Non-Hispanic population, 28 percent were white, and 9.1 percent were Asian or Pacific Islander. Between 2010 and 2019, the White Non-Hispanic population percentage declined by 3.4 percent, while the Asian or Pacific Islander population percentage increased by 2.2 percent, and the Hispanic or Latino population increased by 1.3 percent. 3 ACS Five Year Estimates Table B25032.
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
% of Population
Age
City of Gilroy Santa Clara County
9.2 p. 409 of 1163
Housing Needs Assessment ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 49
Table 7: Racial and Ethnic Composition, Gilroy
Racial/Ethnic Group
2010 2019
Number % Number %
Not Hispanic or Latino
White 15,335 31.4% 15,877 28%
Black 709 1.5% 610 1.1%
American Indian & Alaska Native 180 0.4% 113 0.2%
Asian or Pacific Islander 3,351 6.9% 5,160 9.1%
Some other race alone 58 0.1% 0 0%
Two or more races 974 2.0% 1,460 2.6%
Subtotal 20,607 42.3% 23,220 41%
Hispanic or Latino
White 13,339 27.3% 26,640 46.9%
Black 233 0.5% 262 0.5%
American Indian & Alaska Native 651 1.3% 215 0.4%
Asian or Pacific Islander 208 0.4% 168 0.3%
Some other race alone 12,264 25.1% 4,807 8.5%
Two or more races 1,519 3.11% 1,454 2.6%
Subtotal 28,214 57.7% 33,546 59%
Total 48,821 100% 56,766 100%
Source: ACS 2019 Five Year Estimates.
Figure 2 displays the racial and ethnic makeup of Gilroy, Santa Clara County, and the entire Bay Area region. The racial and ethnic makeup of Gilroy varies from that of the region.
Comparatively, Gilroy’s Hispanic or Latino population (59 percent) is more than double that of the County (25 percent) and region (24 percent). Gilroy has a slightly smaller White, nonHispanic or Latino population (28 percent) than Santa Clara County (32 percent) and the Bay Area region (39 percent). Gilroy’s Asian/Pacific Islander population (9 percent) is also much smaller than the County (37 percent) and the region (27 percent).
9.2 p. 410 of 1163
Housing Needs Assessment ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 50
Figure 2: Regional Racial/Ethnic Composition, 2019
Source: US Census Bureau, ACS 2015–2019, Table B03002.
Employment Trends
Employment trends in a region also influence housing needs. Significant employment opportunities in Santa Clara County have led to a growth in demand for housing in proximity to jobs. The quality and/or pay of available employment can determine the need for various housing types and prices.
Table 8 shows the labor force and employment trends in Gilroy in 2010, 2014, and 2019. The labor force has increased by over 5,000 from 2010 to 2019. The unemployment rate increased from 2010 to 2014 but decreased from 2014 to 2019. The unemployment rate for Gilroy (3.9 percent) was higher than the County’s unemployment rate (3.5 percent) in 2019, according to the 2019 census.
9%
37%
27% 1%
2%
6%
28%
32% 39%
3%
4% 5% 59%
25% 24%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
Gilroy Santa Clara County Bay Area
Percent of Population
Hispanic or Latinx
Other Race or Multiple Races, Non-Hispanic
White, Non-Hispanic
Black or African American, Non-Hispanic
Asian / API, Non-Hispanic
American Indian or Alaska Native, Non-Hispanic
9.2 p. 411 of 1163
Housing Needs Assessment ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 51
Table 8: Employment Trends, Gilroy
Year Labor Force Employment Unemployment Unemployment
Rate
2010 23,354 21,272 2,068 6.2%
2014 26,213 23,272 2,930 7.9%
2019 29,620 27,955 1,665 3.9%
Source: ACS Five Year Estimates, 2010, 2014, 2019.
Figure 3 displays the employment share by industry in Gilroy, Santa Clara County, and the entire Bay Area region. The employment by industry breakdown is similar between the City, County, and Bay Area region, with a few differences. Gilroy has a smaller percentage of workers employed in the financial and professional services than Santa Clara County and the Bay Area. It has a higher percentage of workers employed in the retail, construction, and agriculture/natural resources industries. Since there are more people in comparatively lowerpaying industries, there may be an increased need for housing for low- and moderate-income households in Gilroy.
9.2 p. 412 of 1163
Housing Needs Assessment ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 52
Figure 3: Regional Employment by Industry, 2019
Source: US Census ACS 2015–2019, Table C24030.
Table 9 shows the major employers in the City of Gilroy. As of 2021, Christopher Ranch is the largest single employer in Gilroy with 780 employees. Other large employers in Gilroy include Saint Louise Hospital (535 employees), Gavilan College (450 employees), and Olam International (400 employees).
3% 2% 0%
11% 5% 6%
16% 26% 26%
30% 27% 30%
2% 5% 4%
17%
21% 17%
13%
8% 9%
8% 6% 8%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Gilroy Santa Clara County Bay Area
Share of Employed Residents
Place
Other
Retail
Manufacturing, Wholesale & Transportation
Information
Health & Educational Services
Financial & Professional Services
Construction
Agriculture & Natural Resources
9.2 p. 413 of 1163
Housing Needs Assessment ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 53
Table 9: Major Employers, 2021
Company Number of Employees
Christopher Ranch 780
Saint Louise Hospital 535
Gavilan College 450
Olam International 400
Walmart 360
Community Solutions 323
Costco 272
Rebekah Children Services 240
Monterey Gourmet Foods 230
United Natural Foods Inc 205
Kaiser Permanente 175
Headstart Nursery 165
Source: Gilroy Chamber of Commerce, 2021.
Household and Housing Stock Characteristics
This section describes Gilroy’s household characteristics, including data on household size, income, median sale prices, rental prices, and vacancy rates. The US Census Bureau defines a family as related persons living within a single housing unit. The US Census Bureau defines a household as all persons living in a single housing unit, whether they are related or not. A household can be one person, a single family, multiple families, or any group of related or unrelated persons.
As shown in Table 10, the number of households in Gilroy continues to grow at a faster pace than the County and the State. In 2019, the US Census Bureau reported 16,126 households in Gilroy, a 13.8 percent increase from 2010. In comparison, total households in Santa Clara County increased by 6 percent between 2010 and 2019, while total households in California increased by 3.7 percent.
9.2 p. 414 of 1163
Housing Needs Assessment ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 54
Table 10: Change in Households, 2000–2019
Area 2000 2010 2019
% Change
2000-2010
% Change
2010-2019
Gilroy 11,894 14,175 16,126 19.2% 13.8%
Santa
Clara
County
565,863 604,204 640,215 6.8% 6.0%
California 11,502,870 12,577,498 13,044,266 9.3% 3.7%
Source: US Census 2000, 2010, 2019.
The average number of persons per household in Gilroy was 3.5 in 2020, an increase from 2010. As shown in Table 11, the average number of persons per household in Gilroy continues to be higher than the State and County average by 0.5 persons.
Table 11: Regional Average Household Size
Geography 2010 2020
Gilroy 3.4 3.5
Santa Clara County 2.9 3.0
California 2.9 3.0
Source: US Census 2010 SF1, DP-1 and US Census 2020.
Table 12 shows the household size distribution of Gilroy, Santa Clara County, and the Bay Area region. Gilroy has a lower percentage of one-person households (14.5 percent) than Santa Clara County (20.3 percent) and the Bay Area region (24.7 percent). Gilroy’s percentage of 2- and 3–4 person households is similar to the County and region, while the City’s percentage of households with 5 or more people (24.3 percent) is nearly twice that of Santa Clara County (12.4 percent). The high proportion of large households influences the needs for a variety of larger unit types and may correlate with some presence of overcrowding.
Table 12: Household Size Distribution, 2019
Geography 1 Person % 2 Person % 3-4
Person %
5 Person
or More
% Total
Gilroy 2,345 14.5% 4,353 27% 5,512 34.2% 3,916 24.3% 16,126 Santa Clara
County 130,090 20.3% 196,510 30.7% 234,061 36.6% 79,554 12.4% 640,215 Bay Area 674,587 24.7% 871,002 31.9% 891,588 32.6% 294,257 10.8% 2,731,434 Source: US Census Bureau, ACS 5-Year Data (2015-2019), Table B11016-H2.
The median household income for Gilroy in 2019 was $101,616, an increase of over $25,000 from the median income of $76,060 in 2012. However, Gilroy’s 2019 median household
9.2 p. 415 of 1163
Housing Needs Assessment ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 55
income ($101,616) was about $22,439 less than the 2019 median income for the County ($124,055). In the City, the median income for owner-occupied households ($134,115) was significantly higher than the median income for renter-occupied households ($60,022) in 2019.
Table 13: Median Household Income by Tenure, 2019
Jurisdiction and Tenure 2019 Median Income
City of Gilroy $101,616
Owner-Occupied Households $134,115
Renter-Occupied Households $60,022
Santa Clara County $124,055
Owner-Occupied Households $155,139
Renter-Occupied Households $91,265
Source: ACS 2019 Table B25119.
The State of California uses five income categories to determine eligibility for housing programs based on area median income (AMI) for a family. Because eligibility is based on the AMI for a 4-person household in Santa Clara County, cities such as Gilroy, which have a lower median income than the AMI, will have more residents that qualify for housing programs.
However, many low-income families in Gilroy have difficulty paying for housing even with housing program subsidies, which are based on the County AMI. In 2019, Gilroy’s median income ($101,616) was $22,439 less than the Santa Clara County AMI ($124,055) at that time.
This disparity is in part due to the fact that Gilroy is located farther from high-paying technology and finance jobs in the Bay Area and Silicon Valley than the remainder of Santa Clara County jurisdictions. Table 14 shows the State-defined income ranges for each income category based on the 2022 Santa Clara County AMI of $168,500 for a household of four, a significant increase from 2019.
Table 14: Income Range by Affordability Level Based on State Area Median Income, 2022 Affordability Category % of County Median Income Range
Extremely Low Income 30% ≤ $50,550
Very Low Income 31%-50% $50,550 ≤ $84,250
Low Income 51%-80% $84,250 ≤ $131,750
Moderate Income 81%-120% $131,750 ≤ $202,200
Above Moderate Income > 120% > $202,200
Source: California Department of Housing and Community Development, 2022.
Table 15 uses HUD HAMFI. As discussed above, the difference between HAMFI and AMI is that HAMFI is a HUD-defined term that does not utilize HCD income categories. Table 15 provides a breakdown of income level by tenure in Gilroy, using the 2014–2018 CHAS data. The table
9.2 p. 416 of 1163
Housing Needs Assessment ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 56
shows that just under 40 percent of households in Gilroy are renter-occupied, compared to
43.2 percent of households in the County. In Gilroy, 42.5 percent of the population falls into the extremely low-, very low-, and low-income categories, highlighting the need for affordable housing options in the City.
Table 15: Household Income by Tenure, 2018
Income Level
Renter-Occupied Owner-Occupied Total Occupied
Housing Units
Number % Number % Number %
City of Gilroy
Less than or equal to 30% of
HAMFI 1,995 12.3% 644 4.0% 2,639 16.3%
Greater than 30%
but less than or equal to 50% of
HAMFI
1,340 8.3% 894 5.5% 2,234 13.8%
Greater than 50%
but less than or equal to 80% of
HAMFI
1,040 6.4% 965 6.0% 2,005 12.4%
Greater than 80%
but less than or equal to 100% of
HAMFI
605 3.7% 1,035 6.4% 1,640 10.1%
Greater than 100% of HAMFI 1,420 8.8% 6,259 38.6% 7,679 47.4% Total 6,400 39.5% 9,797 60.5% 16,197 100.0%
Santa Clara County
Less than or equal to 30% of
HAMFI 55,360 8.7% 27,980 4.4% 83,340 13.1%
Greater than 30%
but less than or equal to 50% of
HAMFI
35,920 5.7% 27,635 4.3% 63,555 10.0%
Greater than 50%
but less than or equal to 80% of
HAMFI
34,260 5.4% 32,440 5.1% 66,700 10.5%
Greater than 80%
but less than or equal to 100% of
HAMFI
24,640 3.9% 28,655 4.5% 53,295 8.4%
Greater than 100% of HAMFI 124,680 19.6% 243,955 38.4% 368,635 58.0% Total 274,860 43.2% 360,665 56.8% 635,525 100.0%
Source: HUD 2014-2018 CHAS data.
9.2 p. 417 of 1163
Housing Needs Assessment ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 57
Median Home Sales Price
Figure 4 shows the change in home prices in Gilroy, Santa Clara County, and the Bay Area region from January 2001 to December 2020. While each geography follows the same general trend over time, Gilroy home prices are lower than the other two geographies. Notably starting after 2005, Santa Clara County home prices trend higher than the Bay Area region on average.
After 2007, the housing market slowdown affected home sale prices in Gilroy, which decreased by approximately 50 percent between mid-2007 and early 2012. Since 2012, the median sales prices for new and resale homes in Gilroy have steadily increased, with a minor dip at the start of the COVID-19 pandemic. However, Gilroy home prices remain significantly lower than the County. As shown in Table 16, the November 2021 median home price in Gilroy ($1,000,000) was $405,000 less than Santa Clara County ($1,405,000).
Figure 4: Regional Home Prices Over Time, 2001–2020
Source: Zillow.com, 2020.
As shown in Table 16, the median home price in Gilroy increased almost 20% in a one-year period, from $835,000 in November 2020 to $1,000,000 in November 2021. Comparatively, the median sales price in Santa Clara County increased by 15 percent. Since a household can typically qualify to purchase a home that is 2.5 to 3.0 times the annual income of that household, Gilroy’s median income of $101,616 in 2019 implies that the median sales price $100,000
$300,000
$500,000
$700,000
$900,000
$1,100,000
$1,300,000
$1,500,000
20012002200320042005200620072008200920102011201220132014201520162017201820192020 Bay Area Santa Clara County Gilroy
9.2 p. 418 of 1163
Housing Needs Assessment ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 58
should have been around $305,000. Looking ahead, the $1,000,000 median sales price in November 2021 indicates a high potential of cost burden in the City.
Table 16: Zillow Home Value Index, 2020 and 2021
Jurisdiction November 2020 November 2021 % Change
Gilroy $835,000 $1,000,000 20%
Campbell $1,420,000 $1,640,000 15%
Santa Clara $1,380,000 $1,560,000 13%
San Jose $1,120,000 $1,330,000 19%
Morgan Hill $1,050,000 $1,260,000 20%
Santa Clara County $1,225,000 $1,405,000 15%
Source: Zillow Housing Market Data, 2021.
Rental Prices and Affordability
Table 17 summarizes the average monthly rent of market-rate housing in Gilroy by unit size in 2021. According to Zumper, the average rental rate for a one-bedroom unit was $1,850; a twobedroom unit was $2,285; and a three-bedroom unit was $3,100.
Table 17: Average Monthly Rent by Unit Size, 2021
Unit Size Average Monthly Rent
Studio $1,600
1 bedroom $1,850
2 bedrooms $2,285
3 bedrooms $3,100
4 bedrooms $3,775
Source: Zumper, August 2021.
Using the assumption that any rent that exceeds 30 percent of household income renders the resident cost-burdened, Table 18 shows the maximum monthly rent that a household in Santa Clara County (including Gilroy) can afford based on income and the number of bedrooms in the household.
9.2 p. 419 of 1163
Housing Needs Assessment ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 59
Table 18: Maximum Affordable Rent by Income, Santa Clara County Typical Unit
Size Income (hourly) Income (annually)
Income
(monthly)
Maximum
Affordable rent
(30% of
income)
Studio $42.85 $89,120 $7,426.67 $2,228
One Bedroom $49.19 $102,320 $8,526.67 $2,558
Two Bedroom $58.67 $122,040 $10,170 $3,051
Three
Bedroom
$76.62 $159,360 $13,280 $3,984
Four
Bedroom
$88.33 $183,720 $15,310 $4,593
Source: National Low Income Housing Coalition. Out of Reach 2021.
Table 19 shows the maximum affordable monthly rent by affordability category.
Table 19: Maximum Affordable Monthly Rent by Income Category Affordability
Category % of County Median Income Range Maximum AffordableMonthly Rent Extremely Low
Income 30% ≤ $50,550 $1,264
Very Low Income 31%-50% $50,550 ≤ $84,250 $2,106
Low Income 51%-80% $84,250 ≤ $131,750 $3,294
Moderate Income 81%-120% $131,750 ≤ $202,200 $5,055
Above Moderate
Income > 120% > $202,200 -
Source: California Department of Housing and Community Development, 2022.
Current average rents in Gilroy (Table 17) would allow a moderate-income household, making $131,750, to afford a rental unit of most any size, since such households can afford up to $5,055 in rent. However, extremely low-income households would likely be cost-burdened in any size unit, since the maximum rent they can afford would be $1,264 (less than the rent for a studio apartment). The average monthly rent for a two-bedroom unit in Gilroy ($2,285) would be unaffordable to a four-person household in the extremely low- and very low-income groups, as shown in Table 19. This disparity leads to overcrowding, which is discussed later in this chapter. The disparity between incomes and housing costs indicates a need for more housing options at a variety of unit sizes available, especially to households below the AMI.
9.2 p. 420 of 1163
Housing Needs Assessment ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 60
Vacancy Rates
Vacancy rates are indicators of housing supply and demand that reflect the degree of housing choice that is available. Higher vacancy rates can induce downward price pressure, while low vacancy rates can influence upward price pressures. Low vacancy rates usually indicate high demand and/or low supply conditions in the housing market. Too low a vacancy rate can force prices up, making it more difficult for lower- and moderate-income households to find housing. For rental units, a 7 to 8 percent vacancy rate is considered “healthy”. For owneroccupied housing, a vacancy rate of 2 percent or below is considered “healthy.” In 2013, the vacancy rate in Gilroy was 4.6 percent, decreasing to 2.9 percent in 2019. Table 20 summarizes the number of occupied and vacant units in Gilroy from 2013 to 2019.
Table 20: Occupancy Rates
Occupancy Status 2013 % 2019 %
Occupied Housing Units 14,657 95.4% 16,126 97.1%
Vacant Housing Units 701 4.6% 482 2.9%
Total Housing Units 15,358 100% 16,608 100%
Source: ACS 5 Year Estimates, 2013 and 2019.
Overpayment
Overpayment is defined as households paying more than 30 percent of their gross income on housing-related expenses, including rent or mortgage payments and utilities. Severe overpayment occurs when households pay 50 percent or more of their gross income for housing. Households paying greater than 30 percent of their gross income on housing-related expenses are considered cost burdened. Higher costs for housing may contribute to households having a limited ability to cover other everyday living expenses. The impact of housing costs is more apparent for extremely low-, very low-, and low-income households, and especially renter households.
Table 21 illustrates housing cost as a percentage of household income by tenure, showing the number and percentage of households that are experiencing cost burden and severe cost burden for both Gilroy and Santa Clara County. In 2018, 9,079 Gilroy households, or 56.3 percent, experience some form of overpayment, with 18.1 percent of households experiencing severe overpayment. This is an increase of 1,769 households from 2012. At about 56.3 percent, Gilroy experiences overpayment at a slightly higher rate than the County, where 50.2 percent of households experience some sort of overpayment.
9.2 p. 421 of 1163
Housing Needs Assessment ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 61
Table 21: Housing Cost as a Percentage of Household Income, 2018 Housing Income
Range
Households
Percentage of Income Spent on Housing
Overpayment
(>30%income on
housing)
Severe Overpayment
(>50% income on housing)
Number % Number % Number %
City of Gilroy: Owner Households
Less than or
equal to
30% of HAMFI
645 4.0% 470 2.9% 400 2.5%
Greater than 30%
but less than or
equal to
50% of HAMFI
895 5.6% 550 3.4% 330 2.0%
Greater than 50%
but less than or
equal to
80% of HAMFI
975 6.1% 465 2.9% 240 1.5%
Greater than 80%
of HAMFI 7,305 45.4% 1,160 7.2% 165 1.0%
Total 9,820 61.0% 2,645 16.4% 1,135 7.0%
City of Gilroy: Renter Households
Less than or
equal to
30% of HAMFI
1,885 11.7% 1,590 9.9% 1,230 7.6%
Greater than 30%
but less than or
equal to
50% of HAMFI
1,339 8.3% 979 6.1% 395 2.5%
Greater than 50%
but less than or
equal to
80% of HAMFI
1,030 6.4% 590 3.7% 165 1.0%
Greater than 80%
of HAMFI 2,029 12.6% 350 2.2% 0 0.0%
Total 6,283 39.0% 3,509 21.8% 1,790 11.1%
Santa Clara County: Owner Households
9.2 p. 422 of 1163
Housing Needs Assessment ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 62
Housing Income
Range
Households
Percentage of Income Spent on Housing
Overpayment
(>30%income on
housing)
Severe Overpayment
(>50% income on housing)
Number % Number % Number %
Less than or
equal to
30% of HAMFI
25,960 4.1% 20,765 3.3% 16,670 2.6%
Greater than 30%
but less than or
equal to
50% of HAMFI
27,625 4.4% 15,370 2.4% 9,725 1.5%
Greater than 50%
but less than or
equal to
80% of HAMFI
32,435 5.2% 15,680 2.5% 6,870 1.1%
Greater than 80%
of HAMFI 272,605 43.3% 46,610 7.4% 7,635 1.2%
Total 358,625 57.0% 98,425 15.6% 40,900 6.5%
Santa Clara County: Renter Households
Less than or
equal to
30% of HAMFI
51,035 8.1% 45,275 7.2% 35,590 5.7%
Greater than 30%
but less than or
equal to
50% of HAMFI
35,940 5.7% 29,750 4.7% 15,250 2.4%
Greater than 50%
but less than or
equal to
80% of HAMFI
34,270 5.4% 21,565 3.4% 5,615 0.9%
Greater than 80%
of HAMFI 149,320 23.7% 22,390 3.6% 1,165 0.2%
Total 270,565 43.0% 118,980 18.9% 57,620 9.2%
Source: HUD 2014-2018 CHAS data.
Overcrowding
An overcrowded housing unit is defined by the US Census Bureau as a housing unit occupied by more than one person per room (excluding bathrooms, kitchen, hallway, and closet space).
Occupancy by more than 1.5 persons per room constitutes severe overcrowding.
9.2 p. 423 of 1163
Housing Needs Assessment ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 63
Overcrowding can affect public facilities and services, reduce the quality of the physical environment, and create conditions that contribute to deterioration of the housing stock.
Additionally, overcrowding can indicate that a community does not have an adequate supply of affordable housing and/or variety of suitable housing units to meet the needs of the community. Table 22 summarizes overcrowding in Gilroy by tenure. Approximately 1,482 households in Gilroy, roughly 9.2 percent, were experiencing overcrowding in 2019. This included 347 owners and 1,135 rental households. Instances of overcrowding vary by tenure, with renters experiencing higher levels of overcrowding than owners.
Table 22: Overcrowded Households, 2019
Persons per Room
Owners Renters Total
Overcrowded
Households
% of
Total
Overcrowded
Households
% of
Total
Overcrowded
Households
% of
Total
City of Gilroy
1.01 to 1.50 285 1.8% 665 4.1% 950 5.9%
>1.50 62 0.4% 470 2.9% 532 3.3%
Total Overcrowded 347 2.2% 1,135 7.0% 1,482 9.2%
Santa Clara County
1.01 to 1.50 7,526 1.2% 21,951 3.4% 29,477 4.6%
>1.50 2,340 0.4% 17,983 2.8% 20,323 3.2%
Total Overcrowded 9,866 1.6% 39,934 6.2% 49,800 7.8%
Source: ACS 2019 Table B25014.
Housing Inventory and Market Conditions
This section discusses the housing stock and market conditions in Gilroy, including change in housing units, unit size, unit type, age of housing stock, and housing conditions. By analyzing past and current housing trends, future housing needs can be assessed.
Table 23 summarizes the number of housing units in the City and County from 2000 to 2019.
In 2000, Gilroy had 12,167 housing units. By 2010, the number of housing units increased to 14,854, and in 2019 the Census reported 16,608 housing units in the City. According to the California Department of Finance, 2.5 percent of housing units in the County are within Gilroy’s boundaries, representing an increase of 0.4 percent from 2000 to 2019.
9.2 p. 424 of 1163
Housing Needs Assessment ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 64
Table 23: Housing Units, 2000–2019
Year Gilroy Santa Clara County Gilroy as % of Total Santa Clara County Units
2000 12,167 579,329 2.1%
2010 14,854 631,920 2.4%
2019 16,608 672,495 2.5%
Source: US Census 2000 SF3, H1, US Census 2010 SF1, H1, and Department of Finance Table E-5, 2019.
Table 24 summarizes Gilroy’s distribution of unit size by tenure in 2019. The most common unit size for renter-occupied units was two-bedroom units, followed by three-bedroom units.
Owner-occupied units had more bedrooms, on average, than renter-occupied units.
Table 24: Unit Size by Tenure, 2019
Unit Size
Owner-Occupied Renter-Occupied
Total Occupied
Housing Units
Units % Units % Units %
No
bedroom
15 0.1% 218 1.4% 233 1.5%
1 bedroom 126 0.8% 972 6% 1,098 6.8%
2 bedrooms
632 3.9% 2,601 16.1% 3,233 20%
3 bedrooms
3,895 24.2% 1,481 9.2% 5,376 33.4%
4 bedrooms
4,016 24.9% 685 4.2% 4,701 29.1%
5 or more
bedrooms
1,230 7.6% 255 1.6% 1,485 9.2%
Total 9,914 61.5% 6,212 38.5% 16,126 100%
Source: ACS 2019 Table B25042.
Table 25 summarizes Gilroy’s housing inventory by unit type from 2000 to 2021. From 2010 to 2021, the number of units for all housing types increased, except for single-family attached units and mobile homes, which remained the same at 887 and 317 units, respectively. The US Census defines single-family attached houses as houses running together or that are attached, such as townhomes4. In 2021, there were 11,739 single-family detached units in Gilroy, 4 US Census Appendix A. Subject Definitions and Table Index. https://www2.census.gov/programssurveys/ahs/2017/2017%20AHS%20Definitions.pdf
9.2 p. 425 of 1163
Housing Needs Assessment ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 65
comprising the largest percentage of housing stock, at almost 70 percent. Multifamily housing made up just over 23 percent of the housing stock with 3,883 units.
Comparatively, Santa Clara County had fewer detached single-family housing units (51.7 percent) and more multifamily housing units (35.8 percent) in 2021.
Table 25: Housing Inventory by Unit Type
Housing Type
2000 2010 2021
Number % Number % Number %
City of Gilroy
Single family, detached 7,768 63.8% 9,997 67.3% 11,739 69.8% Single family, attached 742 6.1% 887 6.0% 887 5.3%
Multifamily 3,225 26.5% 3,653 24.6% 3,883 23.1%
Mobile homes 432 3.6% 317 2.1% 317 1.9%
Total Housing Units 12,167 100% 14,854 100% 16,826 100% Santa Clara County
Single family, detached 323,923 55.9% 344,586 54.5% 351,726 51.7% Single family, attached 52,736 9.1% 61,517 9.7% 66,146 9.7% Multifamily 182,999 31.6% 206,779 32.7% 243,502 35.8%
Mobile homes 19,102 3.3% 19,038 3.0% 18,924 2.8%
Total Housing Units 578,760 100% 631,920 100% 680,298 100% Source: US Census 2000 SF3, H30 and California Department of Finance Table E-5, 2010 and 2021.
Table 26 displays occupied housing units by tenure in Gilroy in 2019. 5 The majority of owneroccupied housing units were single-family detached units (82.3 percent), while renter-occupied units were predominantly multifamily (96.7 percent).
5 This excludes vacant housing units.
9.2 p. 426 of 1163
Housing Needs Assessment ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 66
Table 26: Unit Type by Tenure, 2019
Building Type Owner
Occupied % Renter Occupied % Total
Detached SingleFamily Homes8,967 82.3% 1,933 17.7% 10,900 Attached SingleFamily Homes398 41.6% 559 58.4% 957
Multifamily
Housing
125 3.3% 3,615 96.7% 3,740
Mobile Homes 424 80.2% 105 19.8% 529
Source: ACS 2019 Table B25032.
Age of Housing Stock
The age of a housing unit is often an indicator of housing conditions. In general, housing that is 30 years or older may exhibit need for repairs based on the useful life of materials. Housing over 50 years old is considered aged and is more likely to exhibit a need for major repairs. The number of housing units in need of repair and replacement is discussed separately in this chapter. Many federal and state programs use age of housing as one factor to determine housing needs and the availability of funds for housing and community development.
Table 27 summarizes the age of housing stock by tenure in 2019. Approximately 56.2 percent of units were built prior to 1990 and 19.9 percent of units were built before 1970. The City has seen very little rental family housing stock built within the past two decades: only 1,092 rental units were built between 2000 and 2019, compared to 3,112 new owner-occupied units. This disparity in building ages by tenure indicates a need for new rental housing options.
9.2 p. 427 of 1163
Housing Needs Assessment ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 67
Table 27: Tenure by Housing Age
Year Tenure: Owner Tenure: Renter Total
Built 2014 or later 764 4.7% 32 0.2% 796 4.9%
Built 2010 to 2013 383 2.4% 226 1.4% 609 3.8%
Built 2000 to 2009 1,965 12.2% 834 5.2% 2,799 17.4%
Built 1990 to 1999 1,570 9.7% 1,290 8% 2,860 17.7%
Built 1980 to 1989 1,388 8.6% 1,145 7.1% 2,533 15.7%
Built 1970 to 1979 1,887 11.7% 1,428 8.9% 3,315 20.6%
Built 1960 to 1969 724 4.5% 477 2.9% 1,201 7.5%
Built 1950 to 1959 642 3.6% 216 1.3% 858 5.3%
Built 1940 to 1949 223 1.4% 90 0.6% 313 1.9%
Built 1939 or earlier 368 2.3% 474 2.9% 842 5.2%
Total 9,914 61.5% 6,212 38.5% 16,126 100%
Source: ACS 2019 Table B25036.
Housing Conditions
Housing is considered substandard when conditions are found to be below the minimum standard of living defined in the California Health and Safety Code. Substandard housing units include those in need of repair and/or replacement. Households living in substandard conditions are considered to be in need of housing assistance, even if they are not seeking alternative housing arrangements, due to threats to health and safety.
A household is considered substandard, or to have a housing problem, if it has one or more of the four following housing problems:
• Housing unit lacks complete kitchen facilities
• Housing unit lacks complete plumbing facilities
• Housing unit is overcrowded
• Household is cost burdened
In addition to structural deficiencies and standards, the lack of infrastructure and utilities often serves as an indicator for substandard conditions. Table 28 summarizes the number of units lacking plumbing or complete kitchen facilities. According to the 2019 ACS three-year estimates, 47 occupied units in Gilroy lacked complete plumbing facilities. Of these, 23 were owner occupied and 24 were renter occupied. A total of 49 units lacked complete kitchen facilities. Of those, 16 were owner-occupied and 33 were renter-occupied. It should be noted that there is potential for overlap in the number of substandard housing units, as some units may lack both complete plumbing and kitchen facilities.
9.2 p. 428 of 1163
Housing Needs Assessment ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 68
Table 28: Units Lacking Plumbing or Complete Kitchen Facilities, 2019 Units
Owner
Occupied
% of Total
Units
Renter
Occupied
% of Total
Units Total
% of
Total
Units
Lacking Complete
Plumbing Facilities 23 0.2% 24 0.2% 47 0.3%
Lacking Complete
Kitchen Facilities 16 0.1% 33 0.2% 49 0.3%
Source: ACS 2019 B25049 and B25053.
Local Data
Code enforcement activities in the City of Gilroy are conducted by two Code Enforcement officers. From July 1, 2021 to June 30, 2022, code enforcement responded to 78 complaints about substandard housing conditions or other issues reported by residents. The majority of neighborhood complaints related to issues other than substandard housing conditions, including a person living in an RV, junk in the front yard, trash dumped in the alley, and illegal garage conversion. The City estimates that about 2 percent of housing, or about 320 units in the City, are in need of significant rehabilitation or replacement.
Over the two-year 2021–2023 fiscal years, the City utilized CDBG funds to address housingrelated issues in Gilroy. The City allocated $280,000 in CDBG funds to Rebuilding Together Silicon Valley to implement a wide range of home repair, accessibility, mobility, and rehabilitation improvements for low income homeowners. Affordable housing is preserved by providing critical safety home repairs and accessibility modifications for low income, often elderly, homeowners at no cost so that these residents are not displaced and can remain in their existing homes in a safe and healthy environment.
The City also allocated $81,475 in CDBG funds toward rehabilitation of the Cherry Blossom affordable housing development.
Preservation of Assisted Units At Risk of Conversion
Jurisdictions are required by state Housing Element law to analyze government-assisted housing that is eligible to convert from low-income to market-rate housing over the next 10 years. State law identifies housing assistance as a rental subsidy, mortgage subsidy, or mortgage insurance to an assisted housing development. Government-assisted housing might convert to market-rate housing for a variety of reasons, including expiring subsidies, required mortgage repayments, or expiration of affordability restrictions.
Qualified Entities
Under Government Code Section 65863.11, owners of federally assisted projects must provide a Notice of Opportunity to Submit an Offer to Purchase to qualified entities (nonprofit or forprofit organizations) that agree to preserve the long-term affordability if they should acquire
9.2 p. 429 of 1163
Housing Needs Assessment ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 69
at-risk projects at least one year before the sale or expiration of use restrictions. Qualified entities have first right of refusal for acquiring at-risk units. Qualified entities are nonprofit or for-profit organizations with the legal and managerial capacity to acquire and manage at-risk properties, and which agree to maintain the long-term affordability of projects. The following is a list of qualified entities from HCD for Santa Clara County that could potentially acquire and manage properties if any were at risk of converting to market rate in the future. • Cambrian Center, Inc.
• Charities Housing Development Corp.
• Palo Alto Senior Housing Project, Inc.
• Mid-Peninsula Housing Coalition
• Affordable Housing Foundation
• Palo Alto Housing Corp (Alta Housing)
• Satellite Housing Inc.
• ROEM Development Corporation
• Silicon Valley at Home
• L + M Fund Management LLC
Inventory of At-Risk Units
Per Government Code Section 65863.10, assisted housing developments are defined as multifamily, rental housing complexes that receive government assistance under any of the specified federal, state, and/or local programs.6 There are approximately 1,926 assisted affordable housing units in Gilroy. The City is currently inventorying its assisted housing developments to determine which developments are at risk of conversion.
As shown in Table 29, Maria Way Home, Glenview Drive Home, and Parkview Apartments all have estimated affordability end years in the next four () years. Thus, there are 55 units within three projects that are at risk of conversion to market rate before 2031. Program C - 6 is included to complete the inventory of assisted units in the City. Should the units expire during the 6
th Cycle, the City will ensure that owners are contacted and advanced notice to tenant is provided.
6 HCD Building Blocks, https://www.hcd.ca.gov/planning-and-community-development/housing-elements/buildingblocks/assisted-housing-developments-risk-conversion
9.2 p. 430 of 1163
Housing Needs Assessment ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 70
Table 29: Potential Units at Risk of Conversion
Project Address Total
Units
Assisted
Units
Estimated
Affordability
End Year
Maria Way Home 780 Maria Way 5 5 8/21/2022
Glenview Drive Home 6940 Glenview Drive 5 5 12/19/2026
Parkview Apartments
(Pierce Street
Apartments)
181 Pierce Street 54 45 3/31/2023
Total 64 55
Source: LIHTC Database, 2022.
Replacement Costs
The California Tax Credit Allocation Committee’s 2020 report provides estimates and data on the cost of building assisted units. It estimates that the average cost of an assisted unit in the State of California is $439,827.
7 However, the estimated cost in Santa Clara County is higher, with an average per unit cost of $607,463.
Table 30 summarizes the estimated replacement costs per unit using construction cost estimates from the UC Berkeley Terner Center’s 2018 Construction Cost Index and average unit sizes in the City of Gilroy from RentCafe. Combined, they provide an estimate for replacement costs by unit size specific to Gilroy. It ranges from $261,690 for a one-bedroom unit to $494,520 for a four-bedroom unit. However, at the time of publication, construction costs have increased due to supply issues associated with the COVID-19 pandemic.
Table 30: Replacement Cost
Unit Size
Construction
Cost per Square
Foot
Average Square
Foot/ Unit
Replacement
Cost per Unit
Number of
At-Risk Units
Total
Replacement
Cost
1 bedroom $390 671 $261,690 8 $ 2,093,520
2 bedroom $390 901 $351,390 17 $ 5,973,630
3 bedroom $390 1,091 $425,490 20 $ 8,509,800
4 bedroom $390 1,268 $494,520 10 $4,945,200
Total -- -- -- 55 $ 21,522,150
Source: 2018 UC Berkeley Terner Center Construction Cost Index, RentCafe 7 California Tax Credit Allocation Committee, 2020 Annual Report. https://www.treasurer.ca.gov/CTCAC/2020/annualreport/2020- TCAC.pdf
9.2 p. 431 of 1163
Housing Needs Assessment ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 71
Financial Resources
A variety of programs exist to assist cities to acquire, replace, or subsidize at-risk affordable housing units. The following summarizes financial resources available to the City of Gilroy.
Preservation Strategies
There are many options to preserving units, including providing financial incentives to project owners to extend low-income use restrictions; purchasing affordable housing units by a nonprofit or public agency; or providing local subsidies to offset the difference between the affordable and market rate. Scenarios for preservation will depend on the type of project at risk.
Tenant-based subsidies could be used to preserve the affordability of housing. The Housing Authority of Santa Clara County and local nonprofit agencies provide Section 8 Housing Choice Vouchers to lower-income households. These agencies could request funding from the City to provide vouchers for residents if additional sources of revenue were available.
Federal Programs
Community Development Block Grant (CDBG) – CDBG funds are awarded to cities on a formula basis for housing activities. The primary objective of the CDBG program is the development of viable communities through the provision of decent housing, a suitable living environment, and economic opportunity for principally low- and moderate-income persons.
CDBG funds can be used for housing acquisition, rehabilitation, economic development, and public services.
HOME Investment Partnership – HOME is a flexible grant program and funds are awarded on a formula basis for housing activities. HOME considers local market conditions, inadequate housing, poverty, and housing production costs. HOME funding is provided to jurisdictions to assist rental housing or homeownership through acquisition, construction, reconstruction and/or rehabilitation of affordable housing.
Section 8 Rental Assistance / Housing Vouchers Program – The Section 8 Rental Assistance / Housing Vouchers Program provides rental assistance payments to owners of private, market-rate units on behalf of very low-income tenants.
Section 811/202 Program – Nonprofit and consumer cooperatives can receive no interest capital advances from HUD under the Section 202 program for the construction of very lowincome rental housing for seniors and persons with disabilities. These funds can be used in conjunction with Section 811, which can be used to develop group homes, independent living facilities, and immediate care facilities. Eligible activities include acquisition, rehabilitation, new construction, and rental assistance.
State Programs
California Housing Finance Agency (CalHFA) Multifamily Programs – CalHFA’s Multifamily Programs provide permanent financing for the acquisition, rehabilitation, and preservation or
9.2 p. 432 of 1163
Housing Needs Assessment ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 72
new construction of rental housing that includes affordable rents for low- and moderateincome families and individuals. One of the programs is the Preservation Acquisition Finance Program, which is designed to facilitate the acquisition of at-risk affordable housing developments and provide low-cost funding to preserve affordability.
Low-Income Housing Tax Credit (LIHTC) – This program provides tax credits to individuals and corporations that invest in low-income rental housing. The LIHTC program creates affordable housing opportunities when the developer of a project “sells” the tax credits to an investor or investors who contribute equity to the development in exchange for an ownership position in the project.
California Community Reinvestment Corporation – The California Community Reinvestment Corporation is a multifamily affordable housing lender whose mission is to increase the availability of affordable housing for low-income families, seniors, and residents with special needs by facilitating private capital flow from its investors for debt and equity to developers of affordable housing. Eligible activities include new construction, rehabilitation, and acquisition of properties.
Program Efforts to Preserve At-Risk Units
Through the Community Development Department, the City monitors the list of affordable housing units and their eligibility to convert to market-rate housing. Constant monitoring allows the City to anticipate the time frame by which affordability covenants would expire, thus permitting the City to implement various resources to ensure the continued affordability of the housing units. Through the Consolidated Annual Performance and Evaluation Report (CAPER), the City annually checks with the regional HUD division on the status of rental multifamily housing units that are funded with federal subsidies. To monitor for-sale affordable units, the City’s BMR Program Administrator annually sends a “Below Market-Rate” pamphlet in English and Spanish to all property owners under a resale restriction program.
The pamphlet reminds the owners that their home is currently in the program and directs them to contact City staff when they plan to sell, refinance, or transfer ownership of their property. The City is including Programs C - 1, C - 2, C - 4, and C - 5 for preservation of at-risk and other below market-rate units.
Quantified Objectives
Housing Element law requires that cities establish a maximum number of units that can be converted over the planning period. As shown in Table 29, three (3) assisted projects with a total of 55 units may be at risk of converting to market-rate housing within the planning period.
Program C - 1 and C - 6 are included to confirm the expiration dates and preserve at-risk units.
Special Needs Groups
Certain segments of the population may have more difficulty finding decent, affordable housing due to special needs. This section identifies the housing needs for elderly persons, large households, female-headed households, persons with disabilities (including
9.2 p. 433 of 1163
Housing Needs Assessment ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 73
developmental disabilities), homeless persons, farmworkers, and extremely low-income households. People may belong to more than one special needs group. Identifying special needs groups helps to fully assess Gilroy’s housing needs and develop appropriate programs and actions to address them. The City maintains a list on its website of affordable rentals in Gilroy and what population each property serves.
Persons with Disabilities
The US Census Bureau provides information on the number of persons with disabilities of varying types and degrees. According to the US Census Bureau, a person is considered to have a disability if they have difficulty performing certain functions or difficulty with certain social roles. Affordability of appropriate housing and access, both within the home and to/from the home site, are the primary challenges for persons with disabilities. Access often requires specially designed dwelling units. Additionally, housing locations near public facilities and public transit are important for this special needs group. The 2019 ACS survey estimates that 8 percent of Gilroy, 8 percent of Santa Clara County, and 10 percent of the Bay Area region have a disability.8
The US Census Bureau provides information on the number of persons with disabilities of varying types and degrees. The types of disabilities included in the Census are:
• Hearing difficulty: deaf or has serious difficulty hearing • Vision difficulty: blind or has serious difficulty seeing even with glasses • Cognitive difficulty: has serious difficulty concentrating, remembering, or making decisions
• Ambulatory difficulty: has serious difficulty walking or climbing stairs • Self-care difficulty: has difficulty dressing or bathing • Independent living difficulty: has difficulty doing errands alone, such as visiting a doctor’s office or shopping
Figure 5 shows an estimate of the number of Gilroy residents with disabilities by type of disability and age group. The most prevalent types of disability are cognitive, ambulatory, and independent living difficulty. Note that individuals may have more than one type of disability.
Ambulatory issues are the highest reported disability citywide. A large population with walking difficulty creates a need for single-story housing, elevators, transit access, wheelchair access, larger homes for live-in help, and proximity to health facilities. For many in need of live-in help or living assistance, accessory dwelling units (ADUs) may serve as a caregiver unit. The City is including Program A - 7 to develop an ADU program that includes pre designed “model” plans for ADUs that meet zoning, building, and fire codes. This will decrease the cost of ADU construction for potential caregiver units. Additionally, per Program E - 10, the City will evaluate 8 US Census Bureau, American Community Survey 5-year Data (2015–2019), Table B18101.
9.2 p. 434 of 1163
Housing Needs Assessment ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 74
and revise its reasonable accommodation standards and procedures as they pertain to potential constraints to accommodating persons with disabilities.
Figure 5: Disability by Type, 2019
Source: ACS 2019 Table B18108.
Persons with Developmental Disabilities
A subgroup of disabled residents is those who are developmentally disabled. Housing Element law mandates that an analysis of special needs of disabled persons, including persons with developmental disabilities, be included in Housing Elements.
Local Data
Kalisha Webster with Housing Choices.org works with the intellectual and developmentally disabled residents of Villa Esperanza in Gilroy. Ms. Webster provided a Developmental Disabilities Housing Needs Analysis for the City’s draft Housing Element that included the following information.
People with disabilities face additional housing challenges. Many people with disabilities live on fixed incomes and are in need of specialized care, yet often rely on family members for assistance due to the high cost of care. When it comes to housing, people with disabilities generally are not only in need of lower-income housing but accessibly designed housing, which offers greater mobility and opportunity for independence. Unfortunately, the need typically outweighs what is available, particularly in a housing market with such high demand. People with disabilities are at a higher risk for housing insecurity, homelessness and institutionalization, particularly when they lose aging caregivers. 0 500
1,000
1,500
2,000
2,500
Hearing
Difficulty
Vision
Difficulty
Cognitive
Difficulty
Ambulatory
Difficulty
Self Care
Difficulty
Independent
Living
Difficulty
Population by Age
Disability Type
<18 years old 18-64 years old ≥65 years old
9.2 p. 435 of 1163
Housing Needs Assessment ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 75
Many developmentally disabled persons are able to live and work independently. However, more severely disabled individuals require a group living environment with supervision, or an institutional environment with medical attention and physical therapy. When developmental disabilities exist before adulthood, the first housing issue for the developmentally disabled is the transition from living with a parent/guardian as a child to an appropriate level of independence as an adult.
The City of Gilroy is home to 520 people with developmental disabilities, as shown in Table 31.
The table below shows that Gilroy has a lower concentration of adults with developmental disabilities than other jurisdictions in Santa Clara County; 59 percent of Gilroy residents with developmental disabilities are 18 and older compared to 63 percent in Santa Clara County.
Instead, a higher proportion of Gilroy’s residents with developmental disabilities are under age 18 (41% vs 37%). As discussed below, a lack of affordable housing with supportive services could be one of the factors contributing to fewer adults with developmental disabilities being able to live in the City of Gilroy.
Table 31: Gilroy and Santa Clara County Population with Developmental Disabilities Age Gilroy Santa Clara County
Under 18 212 (41%) 4,016 (37%)
18 and older 308 (59%) 6,737 (63%)
Total 520 10,753
Source: Gilroy data provided by San Andreas Regional Center as of November 2021. County data based on county-level data published by Department of Developmental Services as of June 2021.
Living Arrangements of Gilroy Adults with Developmental Disabilities Local Data
According to the Developmental Disabilities Housing Needs Analysis report prepared specifically for Gilroy by Kalisha Webster with Housing Choices.org, assessing the housing needs of adults with developmental disabilities is of particular importance because, as they age, the adults will require a residential option outside the family home, whereas the family home is the preferred living option for children with developmental disabilities. Living arrangements for adults with developmental disabilities in Gilroy closely mirror that of all adults with developmental disabilities in the County. As of November 2021, the San Andreas Regional Center reported that the family home is the most common living arrangement for Gilroy adults with developmental disabilities, with 65 percent of adults continuing to live in the family home; the same percentage is found throughout the County. Only 8 percent of Gilroy adults with developmental disabilities have successfully transitioned to living in their own apartment, which is lower than the County’s percentage, at 11 percent. This is most likely due to a lack of deeply affordable housing in the City. The availability of extremely low income (30% AMI) housing is needed for adults with developmental disabilities to live independently. As of 2021, 26 percent of Gilroy adults with developmental disabilities were reported to be living in
9.2 p. 436 of 1163
Housing Needs Assessment ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 76
licensed care facilities, higher than the County overall (23%). Opportunities for adults to live in a licensed care facility are declining throughout the County, thus fueling the need for affordable housing with supportive services, to decrease the risk of homelessness or displacement when a parent or family member is no longer able to provide housing for the developmentally disabled individual.
Table 32: Living Arrangements of Adults with Developmental Disabilities Adult Living Arrangements Gilroy Santa Clara County
In the family home 200 (65%) 4,362 (65%)
Own apartment with supportive services 26 (8%) 756 (11%) Licensed Facilities 79 (26%) 1,525 (23%)
Other (including homeless) 3 (1%) 94 (1%)
Total Adults 308 6,737
Source: Kalisha Webster, Housing Choices.org
The San Andreas Regional Center provides service to developmentally disabled individuals throughout Santa Clara, Santa Cruz, San Benito, and Monterey Counties. According to the California Department of Developmental Services, as of December 2020, the San Andreas Regional Center served 17,309 residents with developmental disabilities in the region. Figure 6 displays the breakdown of type of developmental disabilities served at the San Andreas Regional Center. The largest populations served are those with an intellectual disability (42 percent) followed by autism (31 percent).
Figure 6: Developmental Disability by Type Served by San Andreas Regional Center, 2020 Source: California Department of Developmental Services, 2020. 31%
8%
7%
42%
12%
Disability Type
Autism
Epilepsy
Cerebral Palsy
Intellectual Disability
Other Diagnosis
9.2 p. 437 of 1163
Housing Needs Assessment ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 77
Outreach to Services Providers
Local Data
On January 24, 2023, in collaboration with Housing Choices, the City held a virtual meeting for intellectually and developmentally disabled (I/DD) stakeholders (primarily parents of I/DD children and I/DD adults). The meeting was attended by 11 participants, with representatives from Housing Choices and the San Andreas Regional Center in attendance. Housing Choices was born as an advocacy organization, mobilizing stakeholders to create new housing opportunities for people with developmental and other disabilities and are committed to educating local elected officials, city and county housing staff, and housing developers about the opportunity to plan for and include people with developmental and other disabilities in their local housing plans. The San Andreas Regional Center is a community-based, private nonprofit corporation funded by the State of California to serve people with developmental disabilities as required by the Lanterman Developmental Disabilities Act.
On February 15, 2023, City staff also met with 12 I/DD residents, caregivers, and staff at Villa Esperanza, a single-story 21-unit low-income apartment development that includes services for intellectually and developmentally disabled (I/DD) individuals. The Villa Esperanza housing development is managed by Eden Housing and receives services from Housing Choices and the San Andreas Regional Center. Approximately 25% of the units have live-in caregivers. Some of the units are occupied by families with children.
Both meetings were helpful in providing staff with a better understanding of I/DD community needs. Participants expressed a need for extremely low-income housing since I/DD individuals generally rely on social security income. The City is including Programs A - 6, A - 7, and A - 8 to promote the construction of and incentivize the affordability of ADUs for I/DD individuals and their caregivers. The City is also including Program A - 11 to develop an inclusionary housing policy and Program A - 12 to develop incentives beyond density bonus state law to facilitate the creation of extremely low-income units in higher opportunity areas. The City is also including Program E - 11 to prioritize funds to assist special needs households, such as persons with disabilities.
Participants also expressed a need for project-based vouchers. The City is including Programs A - 8 and D – 3, which include providing financial assistance for homeowners who build ADUs with an affordability restriction or commitment to offering housing choice vouchers. The City will notify interested residents and provide technical assistance to residents who need help applying to the Santa Clara County Housing Authority (SCCHA) voucher program.
Another identified need by participants was housing and services for both independent living and supportive living skills. For individuals in need of independent living assistance, accessory dwelling units (ADUs) may serve as a caregiver unit. The City is including Program A - 7 to develop an ADU program that includes predesigned “model” plans for ADUs that meet zoning, building, and fire codes. This will decrease the cost of ADU construction for potential caregiver units. Additionally, per Program E - 10, the City will evaluate and revise its reasonable
9.2 p. 438 of 1163
Housing Needs Assessment ▐
City of Gilroy Housing Element ▐ 6
th Cycle Housing Plan 78
accommodation standards and procedures as they pertain to potential constraints to accommodating persons with disabilities.
Elderly Persons
Elderly persons are considered a special needs group because they are more likely to have fixed incomes. Elderly persons are generally defined as people aged 65 years and older. They often spend a higher percentage of their income on food, housing, medical care, and personal care compared to non-elderly persons. Elderly persons may have special needs related to housing location and construction. Because of limited mobility, elderly persons typically need easier access to medical services, amenities such as shopping, and public transit. In terms of housing construction, elderly persons may need ramps, handrails, elevators, lower cabinets and counters, and special security devices to allow for greater self-protection.
According to the 2020 US Census, and as shown in Table 33, Gilroy has a slightly lower percentage of elderly householders than the County; 19 percent of Gilroy’s residents were elderly, while 21.3 percent of the County’s residents were elderly.
Table 33: Householders by Age, 2020
Householder Age
Gilroy Santa Clara County
Households % Households %
15-24 Years 271 1.7% 15,468 2.4%
25-34 Years 1,990 12.3% 107,194 16.8%
35-64 Years 10,794 66.9% 381,415 59.7%
65-74 Years 1,921 11.9% 74,305 11.6%
75 Plus Years 1,150 7.1% 61,833 9.7%
Total 16,126 100% 640,215 100%
Source: 2019 ACS 5 Year Estimates.
As indicated in Table 34, the 2019 median household income for households with a resident aged 65 and older was $71,432 in Gilroy and $75,758 in Santa Clara County. This is compared to the citywide median income of $101,616 and countywide median income of $133,076 in 2019. The lower income is likely because fewer elderly persons are working full-time, and most income comes from Social Security and/or part-time work.
Table 34: Median Household Income for Elderly Households, 2019 Householder Age City of Gilroy Median Income Santa Clara County Median Income
65 Years and Older $71,432 $75,758
All Households $101,616 $133,076
Source: ACS 2019 5 Year Estimates