City of Gilroy
STAFF REPORT
Agenda Item Title: Adopt a Resolution Forming the Downtown Committee and Appoint Public Members to the
Committee
Meeting Date: May 1, 2023
From: Jimmy Forbis, City Administrator
Department: Administration
Submitted By: Bryce Atkins, Assistant to the City Administrator Prepared By: Bryce Atkins, Assistant to the City Administrator STRATEGIC PLAN GOALS Promote Economic Development Activities Maintain and Improve City Infrastructure
RECOMMENDATION
Council:
a) Adopt the resolution forming the Downtown Committee; and b) Appoint public members to the Committee.
BACKGROUND
At the April 17, 2023 City Council Regular Meeting, the City Council considered a draft resolution and determined details regarding the formation of the Downtown Committee (Committee). The basic tenants of the attached resolution, as identified by the Council at the above-referenced meeting, include:
• Downtown area is to be designated with boundaries from First to Tenth Streets and Railroad to Eigleberry Streets
o Membership shall consist of 15 total voting members
o Five Council Members - Mayor Blankley and Council Members Bracco, Armendariz, Marques, and Tovar
o Each can pick two public members from residents, business owners, or property owners from downtown Gilroy
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Adopt a Resolution Forming the Downtown Committee
City of Gilroy City Council Page 2 of 3 May 1, 2023
o Chair and Vice-Chair are Council Members Marques and Tovar, respectively
o Eight members are required to form a quorum, with a simple majority to pass a motion, but at least three Council Members must agree on the vote o Council adopted Boards and Commissions Attendance Policy shall apply to public members; Council Members control the seats they appoint, so they can reappoint the seats that they control if vacated • Committee members carry out the work; Committee cannot direct staff but may make recommendations to the Council to issue direction to staff • Term of the committee shall be for 24 months
o Meetings shall be held on the floor of the City Council Chambers at 8 AM on the second Tuesday of the month, starting in May 2023. Meetings will start monthly for the first few months and may decrease frequency to once every two months or quarterly at the determination of the Committee • Scope and Powers (duties)
o First meeting, the Committee will reassign priority of recommendations that remain and how to define progress on those tasks, then the Committee may pursue additional recommendations or work. o Reporting back will be done as needed and determined by the Committee or Council
The direction from Council was to bring the revised resolution back to Council at the first meeting in May on the Council Consent Calendar.
Council members serving on the new committee are being asked to appoint their two selected public members to the Committee during this agenda item in preparation for the first Committee meeting on Monday, May 9, 2023.
ALTERNATIVES
Council may amend or reject the proposed resolution.
FISCAL IMPACT/FUNDING SOURCE
None. The Committee cannot direct staff, so the decision to form the Committee or the work of the Committee will not obligate funding. Any needed funding would be part of a recommendation brought to the Council as a future agenda item.
PUBLIC OUTREACH
This matter was discussed and included on the posted agenda for the public meeting of April 17, 2023. The item was also included on the publicly posted agenda for this meeting.
NEXT STEPS
Once the resolution is adopted, the first meeting of the Committee will be held on
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Adopt a Resolution Forming the Downtown Committee
City of Gilroy City Council Page 3 of 3 May 1, 2023
Tuesday, May 9, 2023, at 8 AM at the Gilroy City Council Chambers. There will be reports issued by the Committee of their activities to the City Council at Council meetings in the future.
Attachments:
1. Draft Resolution forming the Downtown Committee
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RESOLUTION NO. 2023-__
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY
ESTABLISHING A DOWNTOWN COMMITTEE
WHEREAS, the City Council of the City of Gilroy wishes to create an Advisory Committee of members from the City Council and stakeholders in downtown Gilroy to provide recommendations and input into the completion of the adopted downtown recommendations of the City Council in the first year, and other downtown related activities in the second year; and
WHEREAS, for purposes of this Downtown Committee, downtown Gilroy is defined as the area bordered by First Street to the north, Tenth Street to the south, Eigleberry Street to the west, and Railroad Street to the east.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Gilroy does hereby establish the Downtown Committee (Committee), with the duties, powers and structure as follows:
Membership. The total membership of the Committee shall be fifteen (15) members. The Committee shall consist of five Council Members as appointed by the City Council. Each appointed Council Member may appoint two additional members of their choice from the residential community, business owners or property owners from downtown Gilroy.
Members shall serve for the term of the Committee as defined below. Members of the Committee are tasked to complete the work of the Committee, with limited staff support as identified in the Powers and Scope section below.
Attendance and Vacancies. Council Members retain control of the seats that they appoint, and when such seats are vacated, the Council Member originally appointing that seat shall reappoint another qualifying candidate as described above to that seat. The Council Vacancy Policy on boards and commissions shall apply to the public members, including removal for excess absences.
Presiding Officers. Council Member Marques shall be the Chair of the Committee and preside over the meetings of the Committee. Council Member Tovar shall be Vice-Chair and perform the duties of Committee Chair in the absence of Chair Marques. The City Administrator will provide administrative support to the Committee.
Term. The Committee shall have a term of twenty-four (24) months, ending on April 30, 2025. At the expiration of the term, the Committee shall automatically be dissolved unless the term is extended by the City Council.
Meetings. The Committee shall initially hold meetings monthly. The meetings shall be held in the Gilroy City Council Chambers at 8:00 AM on the second Tuesday of each month, beginning in May 2023. The meeting schedule may be changed by the Committee to meet less frequently, for example, quarterly. The Committee may hold special meetings on an as-needed basis at the call of the Chair or as otherwise requested by the City Council. A quorum of the Committee shall consist of eight Committee members. The affirmative vote of a simple majority of the members present, which must include the
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Resolution No. 2023-XX
Formation of Downtown Committee
City Council Regular Meeting | May 1, 2023
affirmative vote of at least three Council Members, shall be required for the Committee to take any action.
Powers and Scope. The Committee will have the authority and duty to:
(a) Act in an advisory capacity to the City Council and City Administrator in matters pertaining to downtown Gilroy, as defined in the recitals above, with an initial focus on the outstanding downtown recommendations that were adopted by the City Council in October 2022. Once the work on those recommendations is prioritized and a workplan is underway by Committee members, other topics and recommendations relating to other downtown Gilroy subject matters may be explored;
(b) Report back to the Council periodically at frequencies determined by the Committee, but no less than annually. The Committee has no authority to provide direction to City staff but may make recommendations to the full Council for their consideration of providing direction to staff; (c) Identify problems and, with Council approval, study such problems, activities, and concerns regarding the downtown, hold forums on such problems, and recommend programs, policies, and procedures to the City Administrator and City Council which the Committee finds necessary or desirable;
(d) Perform such other duties related to downtown Gilroy as may be directed by the City Council.
Operation of the Committee. The work of the Committee shall be performed by the members of the Committee. The City Council, by this Resolution, hereby dedicates City staff resources limited to performing administrative functions to support the Committee, which is limited to agenda preparation and posting, meeting attendance, and meeting minutes preparation. The Committee shall comply and be governed by the State Ralph M. Brown Act and all other applicable State laws and local ordinances and policies. The Committee has purely advisory functions, and the public members are not considered to be “public officials” for the purposes of the Fair Political Practices Act.
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Resolution No. 2023-XX
Formation of Downtown Committee
City Council Regular Meeting | May 1, 2023
PASSED AND ADOPTED this 1st day of May 2023 by the following vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
APPROVED:
Marie Blankley, Mayor
ATTEST:
_______________________
Thai Nam Pham, City Clerk
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City of Gilroy
STAFF REPORT
Agenda Item Title: Fiscal Year 2023 General Fund Forecast Update Meeting Date: May 1, 2023
From: Jimmy Forbis, City Administrator
Department: Finance
Submitted By: Harjot Sangha, Finance Director
Prepared By: Harjot Sangha, Finance Director
STRATEGIC PLAN GOALS Develop a Financially Resilient Organization
RECOMMENDATION
Receive report.
EXECUTIVE SUMMARY
This report aims to provide the City Council with an update on the Fiscal Year (FY) 2023 General Fund forecast, the budget development process to date, and what the City Council can expect in the forthcoming release of the FY24 and FY25 recommended budget. The General Fund forecast chart is not included in this report primarily as the budget is still in the final development phase. The forecast chart will be included with the release of the recommended biennial budget and presented to Council during the budget workshop.
BACKGROUND
The City Council last received a forecast update at the January 28th Strategic Planning Workshop and the March 13th Goal/Priority Setting Workshop, primarily based on the FY23 amended budget with updates to the City’s major tax bases. Concurrently, the City kicked off its FY24 and FY25 biennial budget development process, and departments have prepared budgets that aligned with the recommended workplans submitted to Council.
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Receive an Update on the General Fund Forecast
City of Gilroy City Council Page 2 of 5 May 1, 2023
ANALYSIS
General Fund
Revenues
For FY23, The General Fund’s budgeted revenues are $63.6 million. While the projected actuals vary by revenue category, overall, the annual revenues are projected to align with the amended budget.
Notable highlights:
• Since March 2023 update, the City has received an updated sales tax report which yields a further reduction in sales tax revenues for FY23 of approximately $0.5 million than previously reported. Notable decreases are in the transportation, general retail, and construction categories. The total sales tax for the year is expected to come in $1.1 million under budget. • Utility user tax is expected to come in at $6.3 million, or $0.8 million better than budget. The increase is primarily in the energy segments of the tax base, including gas and electricity.
• The franchise tax is expected to come in at $2.2 million, or $0.4 million better than budget. The increase is primarily in the gas and electric franchise and the refuse garbage franchise from the agreement approved by Council in December of 2022.
Expenditures
For FY23, the General Fund’s budgeted expenditures are $64.8 million. The actual expenditures for the year are projected to be $63.6 million, approximately $1.2 million under budget. The central services and general government budget are expected to come in higher than budget due to increased facilities' operational, and general liability insurance and claim costs.
General Fund Revenues by
Category
FY23
Amended
Budget
FY23
Projected
Actuals
% of
Budget
Sales Tax $ 22.6 $ 21.5 95%
Property Tax 19.2 19.4 101%
Utility User Tax 5.5 6.3 115%
Franchise Tax 1.8 2.2 122%
Transient Occupancy Tax 1.8 1.9 106%
Business License 0.7 0.7 100%
Other Revenues 12.0 11.8 98%
Total $ 63.6 $ 63.8 100%
(In Millions)
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Receive an Update on the General Fund Forecast
City of Gilroy City Council Page 3 of 5 May 1, 2023
Since the March 2023 update, Council took another notable action to approve an extension to the Memorandum of Understanding (MOU) with the Gilroy Police Officers Association (GPOA) through June 30, 2025. The fiscal impacts related to the extension will be included in the recommended budget. It is important to highlight that with the extension of the GPOA agreement, Council has successfully approved multi-year labor contracts for all of the bargaining units. This helps provide stability for the employees and the organization for the next budget cycle.
The General Fund is projected to end FY23 with a $34.6 million fund balance, or about 54%. The minimum required fund balance is 30%. Utilization of the fund balance will be recommended in FY24 and FY25, as further discussed in the report.
FY24 and FY25 Budget Development Update
The City commenced its biennial budget development in January 2023. On January 28, the City Council conducted a Strategic Planning session to review the existing workplans and Council-initiated items and added new legislative agenda items for the FY24 and FY25 budgets. At the March 13th Goal/Priority Setting Workshop, Council resolved pending discussions from the January 28 meeting and received and affirmed the recommended departmental workplan items for the FY24 and FY25. Since then, departments have prepared budgets aligning with the workplan tasks, which will be reflected in the forthcoming recommended budget.
General Fund Revenues
Overall, the City’s tax-based revenues for FY24 are projected to remain the same, with slower growth. As noted above, the sales tax revenue is projected to decrease on average $0.4 million a year from FY24 onwards but is expected to be offset by increases in the utility user tax and franchise tax revenues related to increases in General Fund Expenditures by
Department/Function
FY23
Amended
Budget
FY23
Projected
Actuals
% of
Budget
Administration $ 3.1 $ 2.7 87%
Recreation Transfer 1.5 1.5 100%
Other Transfers 1.3 1.3 100%
Finance 1.0 1.0 100%
Human Resources 1.6 1.5 94%
Police 26.6 25.5 96%
Fire 13.2 13.4 102%
Public Works 8.7 8.1 93%
Community Development 4.6 4.7 102%
Central Services 1.7 2.3 135%
Other General Government 1.5 1.6 107%
Total $ 64.8 $ 63.6 98%
(In Millions)
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City of Gilroy City Council Page 4 of 5 May 1, 2023
energy segments. In March, staff shared with the Council that the County notified the City will receive the excess Educational Revenue Augmentation Fund (ERAF) allocation of $1.8 million for FY24. A portion of the annual property tax revenue collected by the County goes to the ERAF to support local school districts. When the amount contributed to ERAF exceeds the minimum cost of funding local schools, excess funds are returned to the county, cities, and special districts. The City has received this revenue source annually for the last decade, but its allocation has been challenged recently. This revenue source will be pivotal in the recommended budget, as discussed in the section below.
Over the last several years, the City has built up health reserves which are recommended to be expended on one-time strategic initiatives.
General Fund Expenditures
The primary expenditure category for the General Fund is personnel, approximately 73%. As mentioned above, the City Council has successfully approved multi-year labor contracts for all bargaining units, including the GPOA, most recently. The planned increases will be reflected in the recommended budget for FY24 and FY25. Other operational expenditure categories, including materials and services and internal services such as facilities, general liability, and information technology, are projected to be higher than forecasted. This is mainly a result of inflation and increased costs to operate and maintain the City’s aging facilities and infrastructure.
In March 2023, staff discussed with Council the approach and philosophy for the FY24 and FY25 budget development, including aligning one-time revenues to one-time expenditures and any ongoing revenues to ongoing operational expenditures. Staff also previewed many of the one-time expenditure needs with the Council, which include:
• Infrastructure: Citywide streets and improvements for park restrooms, fire stations, and replacement of aging fleet.
• Equipment and Supplies: Equipment for public safety, including bodyworn cameras, mobile radios, breathing apparatus, and other safety equipment. • Planning: Civic Center Master Plan, Downtown Specific Plan, Climate Action Plan, TDM/VMT policies, and Youth Center planning
• Liability: Pension and other post-employment benefits, worker’s compensation, and general liabilities
Infrastructure investment will continue to be the theme of the FY24, and FY25 recommended budget, and these strategic initiatives will be recommended to be funded utilizing the General fund balance.
As for ongoing expenditures, there is a need for additional personnel to maintain the current service levels. Staff is evaluating the ERAF and will make any personnel additions contingent upon ERAF becoming the primary ongoing revenue source. The ERAF calculation has been challenged by the California School Boards Association (CSBA) in recent years, with the initial Writ of the Mandate being denied. The CSBA has
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Receive an Update on the General Fund Forecast
City of Gilroy City Council Page 5 of 5 May 1, 2023
filed a Notice of Appeal to the Third District Court of Appeal, and the outcome is yet to be determined.
Any General Fund position recommendations will be aligned with the need to maintain or enhance current service levels and will be based primarily on General Fund budget priorities, such as public safety. Non-General Fund positions, such as for utilities, will be recommended based on the operational needs and need for delivery of the capital improvement program.
Capital Improvement Program (CIP)
Concurrent with the FY24 and FY25 operational budget, staff have also developed the recommended five-year, FY24 through FY28, CIP. The CIP will contain projects largely based on the various infrastructure masterplans, including the most recently approved water and wastewater masterplans, but will also include other grant-related and Council supported projects such as the additional contributions for the Street repair program, Ice Center infrastructure improvements, and the Civic Center Master Plan. The draft CIP will be presented to Council at the May 3 workshop.
The City has had much success in recent years with applying for and receiving grants related to infrastructure improvements. Council can expect these grant projects to be included in the recommended five-year CIP, such as the Gourmet and Railroad Alley improvements, San Ysidro Park healthy living enhancements and improvements, and corporation yard electric vehicle charging.
Schedule and Next Steps
May 3 – CIP Workshop
May 11 – Recommended FY24 and FY25 Budget Available
May 22 – FY24 and FY25 Budget Workshop
May 22 – Community Budget Meeting
June 5 – Council Adoption for the Operating and CIP Budgets
FISCAL IMPACT/FUNDING SOURCE
There are no fiscal impacts associated with preparing and receiving this report. The recommended FY24 and FY25 and CIP budgets and related budgetary effects will be presented to Council at the respective budget workshops.
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City of Gilroy
STAFF REPORT
Agenda Item Title: Council Consideration of a City Council Proclamation and Recognition Policy
Meeting Date: May 1, 2023
From: Jimmy Forbis, City Administrator
Department: Administration
Submitted By: Bryce Atkins, Assistant to the City Administrator Prepared By: Bryce Atkins, Assistant to the City Administrator STRATEGIC PLAN GOALS Not Applicable
RECOMMENDATION
Council adopt the City Council Proclamation and Recognition Policy.
BACKGROUND
With the frequency of requests for proclamations received by the City, a policy regulating how proclamations are requested from the City Council would ensure that proclamations requests are made in an organized approach and with complete information. The policy would establish conditions that assist in minimizing staff time consumed to create proclamation documents and ensure sufficient information and time for processing to either go to the City Council or be presented via other means. This staff report presents the draft policy for Council adoption.
ANALYSIS
Staff is bringing to Council for consideration and direction the attached policy for its review and direction. The policy is generally consistent with other cities’ policies in its general terms.
The proposed policy identifies a listing of requirements that must be met for proclamations and recognition items requested by the City Council to be considered.
The key policy terms are listed below:
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Council Consideration of a Proclamation Policy
City of Gilroy City Council Page 2 of 2 May 1, 2023
• Submission of a request does not guarantee the issuance of a proclamation. • Only one proclamation may be issued per event, but multiple proclamations may be issued for the same day, week, month, and/or year.
• The subject must be relevant to the City of Gilroy community. • The person or group requesting the proclamation or recognition, or the person being recognized, is a member of the City of Gilroy community. • The request shall include either a sample proclamation to be used as a guide or provide sufficient information to assist the City Clerk and minimize staff time preparing the proclamation.
• The proclamation or recognition will be signed by the Mayor or Mayor Pro Tempore in the Mayor’s absence.
• Requests from Council or community members for proclamations or recognitions shall be submitted to the Mayor and City Administrator for approval at least ten (10) business days before the Council Meeting, date of the event, or date of picking up the document, depending upon if it is being presented at a Council meeting, at an event, or to be mailed or picked up.
ALTERNATIVES
Council may modify or reject the proposed policy.
FISCAL IMPACT/FUNDING SOURCE
None. The processing of proclamation requests is a practice currently performed and will not impact the City financially.
PUBLIC OUTREACH
This item was included in the publicly posted agenda for tonight’s regular Council Meeting.
NEXT STEPS
If approved, staff will then finalize the document and share the policy on the City’s website and through the City’s communication channels.
Attachments:
1. Draft Council Proclamation and Recognition Policy
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City of Gilroy
City Council Proclamation Policy
Adopted: May 1, 2023
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Purpose/Background
The purpose of this policy is to establish guidelines for the issuance of proclamations and recognitions.
Policy
Proclamations are public announcements or recognitions directing attention to, or recognition of, local residents, organizations, special events or special days, months or years, or other special causes. Proclamations are not statements of policy. Submission of a request does not guarantee the issuance of a proclamation. Only one proclamation may be issued per event, but multiple proclamations may be issued for the same day, week, month, and/or year.
All conditions and criteria identified below must be met before a proclamation or recognition will be considered.
1. Conditions required for all proclamations and recognition requests:
a. The subject must be relevant to the City of Gilroy community. b. The person or group requesting the proclamation or recognition, or the person or group being recognized, is a member of the City of Gilroy community.
c. The request must include either a sample proclamation to be used as a guide or shall provide sufficient information to assist the City Clerk and minimize staff time in preparing the proclamation.
d. The proclamation or recognition will be signed by the Mayor or Mayor Pro Tempore in the Mayor’s absence.
2. Proclamations or Recognitions to be presented at a City Council meeting:
a. Requests from Council or community members for proclamations or recognitions must be submitted to the Mayor and City Administrator for approval at least ten (10) business days prior to the Council Meeting, complete with information described in item 1(c) above. In the case of recognitions of particular groups or persons, the person or group being recognized must be a member of the City of Gilroy community. b. The requesting group will have a representative at the City Council meeting to receive the proclamation or recognition from the Mayor or Mayor Pro Tempore in the Mayor’s absence, except that requests for recognition of a special day, week, month or year that is recognized in solidarity as an expression of sentiment shall not be presented to any particular group or individual but will be read aloud by the Mayor or Mayor Pro Tempore in the Mayor's absence.
c. Presentation at a specific City Council meeting is not guaranteed.
3. Proclamations or Recognitions not to be presented at a City Council meeting:
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a. Requests from Council or community members for proclamations or recognitions must be submitted to the Mayor and City Administrator for approval at least ten (10) business days prior to the requested receipt date, complete with information described in item 1(c) above. b. The proclamation or recognition will be mailed to or picked up by the requestor.
c. For proclamations or recognitions not to be presented at a City Council meeting the request may be granted at the Mayor’s discretion.
4. Proclamations or Recognitions to be presented at an event:
a. Requests from Council or community members for proclamations or recognitions must be submitted to the Mayor and City Administrator for approval at least ten (10) business days prior to the event, complete with information described in item 1(c) above.
b. The proclamation or recognition will be presented by the Mayor. In the Mayor’s absence, the proclamation or recognition will be presented by a Council Member or staff member attending the event.
c. For proclamations or recognitions to be presented at an event, the request may be granted at the Mayor’s discretion.
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