Agenda packet — Gilroy City Council, November 6, 2023 (part 1 of 2)

November 6, 2023 | 6:00 PM Page 1 of 6 City Council Regular Meeting Agenda Packet

CITY COUNCIL

REGULAR MEETING

AGENDA PACKET

CITY COUNCIL CHAMBERS, CITY HALL
7351 ROSANNA STREET, GILROY, CA
95020
MONDAY, NOVEMBER 6, 2023 | 6:00 PM
MAYOR
Marie Blankley

COUNCIL MEMBERS
Rebeca Armendariz
Dion Bracco
Tom Cline
Zach Hilton
Carol Marques
Fred Tovar
CITY COUNCIL PACKET MATERIALS ARE AVAILABLE ONLINE AT www.cityofgilroy.org AGENDA CLOSING TIME IS 5:00 P.M. THE TUESDAY PRIOR TO THE MEETING PUBLIC COMMENTS ON AGENDA ITEMS ARE TAKEN BEFORE THE CITY COUNCIL TAKES ACTION. Please keep your comments to 3 minutes. Time restrictions may vary based on the Mayor's discretion.

Send written comments on any agenda item to [email protected] or City Hall, 7351 Rosanna Street, Gilroy, CA 95020. Comments received by 1 p.m. on the meeting day will be distributed to the City Council before the meeting. Comments are also available at bit.ly/3NuS1IN.

In compliance with the Americans with Disabilities Act, the City will make reasonable arrangements to ensure accessibility to this meeting. If you need special assistance to participate in this meeting, please contact the City Clerk’s Office at least 72 hours prior to the meeting at (408) 846-0204 or [email protected] to help ensure that reasonable arrangements can be made.

If you dispute any planning or land use decision from this meeting in court, you may only raise issues you or someone else presented at this meeting's public hearing or in written letters to the City Council before the hearing.

Be aware that the time to seek a judicial review of any final decision made at this meeting is defined by Section 1094.6 of the California Code of Civil Procedure.

During this meeting, a Closed Session may be called under Government Code Section 54956.9 (d)(2). This will happen if, in the City's legislative body's opinion (based on current facts, circumstances, and legal advice), there's a significant risk of a lawsuit against the City.

Additional materials submitted after agenda distribution are available on www.cityofgilroy.org as soon as possible.

KNOW YOUR RIGHTS UNDER THE GILROY OPEN GOVERNMENT ORDINANCE Government's duty is to serve the public, reaching its decisions in full view of the public.

Commissions, task forces, councils and other agencies of the City exist to conduct the people's business. This ordinance assures that deliberations are conducted before the people and that City operations are open to the people's review.

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FOR MORE INFORMATION ON YOUR RIGHTS UNDER THE OPEN GOVERNMENT ORDINANCE, TO

RECEIVE A FREE COPY OF THE ORDINANCE OR TO REPORT A VIOLATION OF THE ORDINANCE, CONTACT THE OPEN GOVERNMENT COMMISSION STAFF AT (408) 846-0204.

If you need translation assistance, contact the City Clerk 72 hours before the meeting at 408-846-0204 or [email protected].

Si necesita un intérprete durante la junta y gustaría dar un comentario público, comuníquese con el Secretario de la Ciudad un mínimo de 72 horas antes de la junta al 408-846-0204 o envíe un correo electrónico a la Oficina del Secretario de la Ciudad a [email protected].

To access written translation during the meeting, please scan the QR Code or click this link:

Para acceder a la traducción durante la reunión, por favor escanee el código QR o haga clic en el enlace:
bit.ly/3FBiGA0
Choose Language and Click Attend | Seleccione su lenguaje y haga clic en asistir Use a headset on your phone for audio or read the transcript on your device.

Use sus auriculares para escuchar el audio o leer la transcripción en el dispositivo.

The agenda for this meeting is outlined as follows:

1. OPENING

1.1. Call to Order

1.2. Pledge of Allegiance

1.3. Invocation

1.4. City Clerk's Report on Posting the Agenda

1.5. Roll Call

1.6. Orders of the Day

1.7. Employee Introductions

2. CEREMONIAL ITEMS - Proclamations and Awards

2.1. Proclamation Proclaiming November 12 – 18, 2023 as United Against Hate Week

2.2. Proclamation Proclaiming November 6, 2023 as Digital NEST Day

3. PRESENTATIONS TO THE COUNCIL

3.1. Annual Presentation by the Open Government Commission

3.2. Open Government Commission Presentation on Hybrid Meetings Agenda Page No. 2 of 279
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3.3. PUBLIC COMMENT BY MEMBERS OF THE PUBLIC ON ITEMS NOT ON THE

AGENDA BUT WITHIN THE SUBJECT MATTER JURISDICTION OF THE

CITY COUNCIL
This part of the meeting allows public address on non-agenda topics within the Council's jurisdiction. To speak, complete a Speaker's Card from the entrances and give it to the City Clerk. Speaking time ranges from 1-3 minutes based on the Mayor's discretion. Extended discussions or actions on non-agenda items are restricted by law. For Council action, the topic may be listed on a future agenda.

Email written comments on non-agenda topics to [email protected] or mail to City Hall, 7351 Rosanna Street, Gilroy, CA 95020, by 1:00 pm on the meeting day. These comments, available at City Hall, will be shared with the Council and included in the meeting record. Late submissions will be shared as soon as possible. A 10-page limit applies to hard-copy materials, but electronic submissions are unlimited.

4. REPORTS OF COUNCIL MEMBERS
Council Member Bracco – Downtown Committee, Santa Clara County Library Joint Powers Authority, Santa Clara Valley Water Joint Water Resources Committee, SCRWA Council Member Armendariz – Downtown Committee, Santa Clara County Library Joint Powers Authority (alternate), Santa Clara Valley Habitat Agency Governing Board, Santa Clara Valley Habitat Agency Implementation Board, Silicon Valley Clean Energy Authority JPA Board (alternate), South County United for Health
Council Member Marques – ABAG, Downtown Committee, Gilroy Gardens Board of Directors, Santa Clara Valley Habitat Agency Governing Board, Santa Clara Valley Habitat Agency Implementation Board, SCRWA (alternate)
Council Member Hilton – CalTrain Policy Group (alternate), Silicon Valley Clean Energy Authority JPA Board, South County United for Health (alternate), VTA Policy Advisory Committee
Council Member Cline – Gilroy Economic Development Partnership (alternate), Gilroy Sister Cities Association, Gilroy Youth Task Force, Silicon Valley Regional Interoperability Authority Board, VTA Policy Advisory Committee (alternate), Visit Gilroy California Welcome Center Board, VTA Mobility Partnership Committee
Council Member Tovar – Downtown Committee, Gilroy Youth Task Force (alternate), Santa Clara County Expressway Plan 2040 Advisory Board,Santa Clara Valley Water Commission, SCRWA, South County Youth Task Force Policy Team Mayor Blankley – ABAG (alternate), CalTrain Policy Group, Downtown Committee, Gilroy Economic Development Partnership, Gilroy Sister Cities Association (alternate), Gilroy Youth Task Force, Santa Clara Valley Water Joint Water Resources Committee, SCRWA, South County Youth Task Force Policy Team, VTA Board of Directors, VTA Mobility Partnership Committee

5. COUNCIL CORRESPONDENCE

6. FUTURE COUNCIL INITIATED AGENDA ITEMS
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7. CONSENT CALENDAR
Consent Calendar items are routinely approved with one motion. For separate discussion, a Council member or public member must request its removal before the approval vote. If removed, it's discussed in its original order.

7.1. Approval of the Action Minutes of the October 16, 2023 City Council Regular Meeting

7.2. Adoption of Revised City of Gilroy Records Management Policy and Compliance with the California Public Records Act (CPRA) Recodification Act (AB 473)

7.3. Removal of Commissioner Kortney Hodge from Parks and Recreation Commission Pursuant to Gilroy City Charter Section 900

7.4. Acceptance of an Assistance to Firefighters Grant in the Amount of $66,583 for the Fire Department

7.5. Approve the Second Amendment to the Agreement with InfoSend, Inc. for Utility Bill Printing, Mailing, and Online Payment Services

8. BIDS AND PROPOSALS

9. PUBLIC HEARINGS

10. UNFINISHED BUSINESS

11. INTRODUCTION OF NEW BUSINESS

11.1. Introduction of an Ordinance Amending Chapters 17A and 24 of the Gilroy City Code in Compliance with the California Public Records Act (CPRA) Recodification Act (AB 473)

1. Staff Report: Thai Nam Pham, City Clerk

2. Public Comment

3. Possible Action:

1. Motion to read the ordinance by title only and waive further reading of the ordinance; and

2. Introduce an ordinance amending Chapters 17A and 24 of the Gilroy City Code.

11.2. Approval of Two (2) Mills Act Agreement Applications for Historic Properties Located at 286 Fifth Street and 7471 Hanna Street

1. Staff Report: Sharon Goei, Community Development Director

2. Public Comment

3. Possible Action:

Staff has analyzed the proposed project, and recommends that the City Council:
a) Based on its independent analysis, find that approval of the Mills Act contracts are exempt from review under the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15331, pertaining to projects involving the maintenance, rehabilitation, restoration, preservation, or reconstruction of historical resources, and Agenda Page No. 4 of 279
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where it can be seen with certainty that the Mills Act contracts would not result in a significant environmental effect; and
b) Approve the Mills Act program request, and authorize the City Administrator to execute a Mills Act Agreement for the property located at 286 Fifth Street; and
c) Approve the Mills Act program request and authorize the City Administrator to execute a Mills Act Agreement for the property located at 7471 Hanna Street.

11.3. Inclusionary Housing Introduction

1. Staff Report: Sharon Goei, Community Development Director

2. Public Comment

3. Possible Action:

Receive report.

12. CITY ADMINISTRATOR'S REPORTS

13. CITY ATTORNEY'S REPORTS

14. CLOSED SESSION

14.1. CONFERENCE WITH LEGAL COUNSEL – PENDING LITIGATION:

Government Code Section 54956.9(d)(1) and Gilroy City Code Section 17A.11(3)(b)
Name of cases: Law Foundation of Silicon Valley v. Superior Court, 6th District Court of Appeal Case No. H049554; and City of Gilroy v. Superior Court, 6th District Court of Appeal
Case No. H049552

14.2. CONFERENCE WITH REAL PROPERTY NEGOTIATORS Pursuant to GC Sec. 54956.8 and GCC Sec.17A.8 (a) (2)
Properties:10th Street Bridge: APNs 808- 19-007, 799-30-006, 799-30-007, 808-19-020, 808-50-999, Thomas Luchessa Bridge: APNs 808-21-025, 808- 21-023, 808-21-021, 808-21-018, New Fire Station: APNs 808-18-003, 808-19- 029
Negotiators: Jimmy Forbis, City Administrator; Other Party to Negotiations: Glen Loma Corporation, John M. Filice, Jr.; Negotiating Price and terms of payment regarding purchase, sale

15. ADJOURN TO OPEN SESSION
Report of any action taken in Closed Session and vote or abstention of each Council Member if required by Government Code Section 54957.1 and GCC Section 17A.13 (a); Public Report of the vote to continue in closed session if required under GCC Section 17A.11 (e).

16. ADJOURNMENT
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FUTURE MEETING DATES
November 2023
20 Regular Meeting - 6:00 p.m
December 2023
4 Regular Meeting - 6:00 p.m
11 Special Meeting - 6:00 p.m
18 Regular Meeting - 6:00 p.m -CANCELEDJanuary 2024
8 Regular Meeting - 6:00 p.m
22 Regular Meeting - 6:00 p.m
Meetings are webstreamed at gilroy.city/meetings.

Access the 2024 City Council Meeting Calendar at https://bit.ly/3LLzY1n Agenda Page No. 6 of 279

2.1. Proclamation Proclaiming November 12 – 18, 2023 as United Against Hate Week
Agenda Item No. 2.1 Agenda Page No. 7 of 279
----6----
~EREAS,

WHEREAS,

WHEREAS,
the United States is a nation of immigrants, whose strength comes from its diversity; and
the Constitution enshrines equality on all individuals, regardless of race, gender, orientation, religion, or political views; and the City of Gilroy wishes to affirm its commitment to the wellbeing and safety of all its diverse communities, including Black, Indigenous and People of Color (BIPOC); Asian American Pacific Islander (AAPI); Lesbian, Goy, Bisexual, Transgender, Queer or Questioning Plus (LGBTQ+); and all others; and
the City of Gilroy wishes to ensure that its BIPOC, AAPI, LGBTQ+, and other diverse communities are not alone and that they can speak out to help stop the spread of bigotry; and
due to the history of violence against communities of Color, we must work together to create community-centered solutions that stop the violence in all communities; and
the City of Gilroy stands together with our diverse communities and calls on all constituents and leaders to join us in condemning racist, homophobic, and harassing attacks against communities of Color, in all forms, and renewing our commitment to speak out against such attacks, defend and protect those targeted, and seek out and punish those who commit hate crimes against any members of our community.

NOW, THEREFORE, I, Marie Blankley, Mayor of the City of Gilroy, together with the Gilroy City Council, on this 6th day of November 2023, do hereby proclaim November 12- 18, 2023, as

UNITED AGAINST HATE WEEK
Attested to by:

MAYOR
""""'-
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Agenda Item No. 2.1 Agenda Page No. 8 of 279

2.2. Proclamation Proclaiming November 6, 2023 as Digital NEST Day Agenda Item No. 2.2 Agenda Page No. 9 of 279
Agenda Item No. 2.2 Agenda Page No. 10 of 279

7.1. Approval of the Action Minutes of the October 16, 2023 City Council Regular Meeting
Agenda Item No. 7.1 Agenda Page No. 11 of 279

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City of Gilroy
City Council Regular Meeting Minutes
Monday, October 16, 2023 | 6:00 PM

1. OPENING

1.1. Call to Order
The meeting was called to order by Mayor Blankley at 6:00 PM.

1.2. Pledge of Allegiance
Council Member Tovar led the Pledge of Allegiance.

1.3. Invocation
Rabbi Faith Joy Dantowitz led the Invocation.

1.4. City Clerk's Report on Posting the Agenda
City Clerk Pham reported on the Posting of the Agenda.

1.5. Roll Call
Attendance Attendee Name
Present Rebeca Armendariz, Council Member
Dion Bracco, Mayor Pro Tempore
Carol Marques, Council Member
Fred Tovar, Council Member
Marie Blankley, Mayor
Absent Tom Cline, Council Member
Zach Hilton, Council Member

1.6. Orders of the Day
There were none.

1.7. Employee Introductions
Human Resources Director McPhillips introduced Angelica Harris, Human Resources Analyst.

2. CEREMONIAL ITEMS - Proclamations and Awards
There were none.

3. PRESENTATIONS TO THE COUNCIL

3.1. Annual Presentation by the Arts and Culture Commission Arts and Culture Commission Chair Melanie Reynisson provided the annual presentation.

3.2. PUBLIC COMMENT BY MEMBERS OF THE PUBLIC ON ITEMS NOT ON THE

AGENDA BUT WITHIN THE SUBJECT MATTER JURISDICTION OF THE

CITY COUNCIL
Mayor Blankley opened Public Comment.

The following members spoke on items that were not on the agenda.

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Ron Kirkish expressed concerns about the rise of inappropriate comments during Zoom meetings in various cities, including Morgan Hill, and noted that the city's officials have decided to discontinue public speaking on Zoom meetings due to incidents of racism, anti-Semitism, and homophobia during their last meeting.

Robert Zepeda expressed a desire for local unity, touched on global conflicts like the one in Israel, criticized the media's influence on perceptions, and briefly mentioned three upcoming initiatives.

Jeff Orth expressed deep gratitude to the city council for their support in improving downtown, including lighting up trees, addressing the sound system, cleaning sidewalks, and creating a positive atmosphere for the community and visitors, highlighted by the successful recent beer crawl event.

There being no further speakers, Mayor Blankley closed Public Comment.

4. REPORTS OF COUNCIL MEMBERS
Council Member Bracco had nothing to report.

Council Member Armendariz expressed appreciation for the Rabbi's comments and urged recognition of the Palestinian lives lost in the ongoing conflict in addition to Israeli casualties. She also shared her participation in a Silicon Valley Clean Energy review of energy-efficient home renovations.

Council Member Marques praised the Gilroy Gardens' Great Big BOO! Event, and reported on the Downtown Committee
Council Member Tovar reported on the Downtown Committee and his recent involvement in South County Heals Kick-Off! Event.

Mayor Blankley reported on SCRWA, Santa Clara Valley Water Joint Water Resources Committee, and VTA Board of Directors.

5. COUNCIL CORRESPONDENCE
There were none.

6. FUTURE COUNCIL INITIATED AGENDA ITEMS
Council Member Armendariz proposed agendizing a discussion on establishing a code of conduct for public speakers at city meetings, believing it would help manage meetings and address potential issues in both in-person and hybrid meetings, referencing incidents like Zoom bombing in other cities. The discussion was open to the council's input, and there was an agreement to consider it as part of future discussions on meetings and presentations; however, it did not receive majority support.

7. CONSENT CALENDAR
Mayor Blankley opened Public Comment. There being no speakers, Mayor Blankley closed Public Comment.

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Motion: Adopt the Consent Calendar.

RESULT: Pass
MOVER: Fred Tovar, Council Member
SECONDER: Dion Bracco, Mayor Pro Tempore
AYES: Council Member Armendariz, Mayor Pro Tempore Bracco, Council Member Marques, Council Member Tovar, Mayor Blankley
ABSENT: Council Member Cline, Council Member Hilton

7.1. Approval of the Action Minutes of the October 2, 2023 City Council Regular Meeting
A motion was made to approve the minutes.

7.2. Acceptance of an Office of Traffic Safety Selective Traffic Enforcement Program Grant in the Amount of $111,000 and Adoption of a Resolution of the City Council of the City of Gilroy Approving a Fiscal Year 2024 Budget Amendment
A motion was made to accept the Office of Traffic Selective Traffic Enforcement Program Grant and adopt a resolution.

Enactment No.: Resolution No.: 2023-59

7.3. Acceptance of an Office of Traffic Safety Traffic Records Improvement Program Grant for $24,800 and Adoption of a Resolution of the City Council of the City of Gilroy Approving a Fiscal Year 2024 Budget Amendment
A motion was made to accept the Office of Traffic Selective Traffic Improvement Program Grant and adopt a resolution.

Enactment No.: Resolution No.: 2023-60

7.4. Acceptance of an Edward Byrne Memorial Justice Assistance Grant for $19,822 for the Police Department and Adoption of a Resolution of the City Council of the City of Gilroy Approving a Fiscal Year 2024 Budget Amendment
A motion was made to accept the Edward Byrne Memorial Justice Assistance Grant and adopt a resolution.

Enactment No.: Resolution No.: 2023-61

7.5. Approval of a Notice of Acceptance of Completion for the Gilroy Sports Park Playground Surface Repair Project No. 23-PW-276 and Approval of a Final Contract Amount with Itech Solution of $144,098.78 A motion was made to approve the Notice of Acceptance of Completion.

8. BIDS AND PROPOSALS
There were none.

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9. PUBLIC HEARINGS

9.1. Public Hearing Regarding the Proposed Water and Wastewater Rate Increases
Finance Director Sangha provided staff presentation and responded to Council Member questions.

Mayor Blankley opened the Public Hearing at 6:48 PM.

The following members spoke in opposition to the item:

Aileene Edsinger
Andrew Didomenico
Matt Newton
Jon Vollertsen
There being no further speakers, Mayor Blankley closed the Public Hearing at 6:57 PM.

City Clerk Pham declared that there were 31 protest letters received after the closure of the Public Hearing.

Motion: Adopt as final the August 2023 Comprehensive Water and Wastewater Utility Rate Study Report prepared by NBS.

RESULT: Pass
MOVER: Dion Bracco, Mayor Pro Tempore
SECONDER: Marie Blankley, Mayor
AYES: Council Member Armendariz, Mayor Pro Tempore Bracco, Council Member Marques, Mayor Blankley
NAYS: Council Member Tovar
ABSENT: Council Member Cline, Council Member Hilton
Motion: Adopt a resolution approving water and wastewater rate adjustments.

RESULT: Fail
MOVER: Dion Bracco, Mayor Pro Tempore
SECONDER: Marie Blankley, Mayor
AYES: Mayor Pro Tempore Bracco, Council Member Marques, Mayor Blankley
NAYS: Council Member Armendariz, Council Member Tovar
ABSENT: Council Member Cline, Council Member Hilton
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Motion: Adopt the resolution approving the water and wastewater rate adjustments at 6% annually over five years.

RESULT: Pass
MOVER: Dion Bracco, Mayor Pro Tempore
SECONDER: Carol Marques, Council Member
AYES: Council Member Armendariz, Mayor Pro Tempore Bracco, Council Member Marques, Council Member Tovar, Mayor
Blankley
ABSENT: Council Member Cline, Council Member Hilton

Enactment No.: Resolution No. 2023-62

10. UNFINISHED BUSINESS

10.1. Recommendations for Updates/Improvements to the Gilroy Garlic Festival Memorial at Christmas Hill Park
City Administrator Forbis provided staff presentation and responded to Council Member questions.

Mayor Blankley opened Public Comment. There being no speakers, Mayor Blankley closed Public Comment.

The Council directed staff to proceed with the actions for updates and improvements to the Gilroy Garlic Festival Memorial at Christmas Hill Park as described in the staff report.

11. INTRODUCTION OF NEW BUSINESS

11.1. Authorize the City Administrator to Enter into a Three-Year Service Agreement with the County of Santa Clara for Animal Sheltering Services for the Period of July 1, 2023, through June 30, 2026
Police Captain Rocha provided staff presentation and responded to Council Member questions.

Mayor Blankley opened Public Comment.

The following speakers spoke in favor of the item:

Karen Fortino
Kathy Hodgdon
Paula Myers
Sharon E. Girard
Michelle Rodriguez
There being no further speakers, Mayor Blankley closed Public Comment.

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Motion: Authorize the City Administrator to sign a three-year service agreement with the County of Santa Clara for Animal Sheltering Services from July 1, 2023, through June 30, 2026.

RESULT: Pass
MOVER: Marie Blankley, Mayor
SECONDER: Fred Tovar, Council Member
AYES: Council Member Armendariz, Mayor Pro Tempore Bracco, Council Member Marques, Council Member Tovar, Mayor
Blankley
ABSENT: Council Member Cline, Council Member Hilton

11.2. Annual Review and Adoption of the City's Investment Policy Finance Director Sangha provided staff presentation and responded to Council Member questions.

Mayor Blankley opened Public Comment. There being no speakers, Mayor Blankley closed Public Comment.

Motion: Adopt a resolution establishing the City’s updated Investment Policy.

RESULT: Pass
MOVER: Carol Marques, Council Member
SECONDER: Fred Tovar, Council Member
AYES: Council Member Armendariz, Mayor Pro Tempore Bracco, Council Member Marques, Council Member Tovar, Mayor
Blankley
ABSENT: Council Member Cline, Council Member Hilton

Enactment No.: Resolution No. 2023-63

12. CITY ADMINISTRATOR'S REPORTS
City Administrator Forbis provided the City Administrator’s report.

13. CITY ATTORNEY'S REPORTS
There were none.

14. ADJOURNMENT
Mayor Blankley adjourned the meeting at 7:49 PM.

I HEREBY CERTIFY that the foregoing minutes were duly and regularly adopted at a regular meeting of the City Council of the City of Gilroy.
/s/Thai Nam Pham, MMC, CPMC
City Clerk
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7.2. Adoption of Revised City of Gilroy Records Management Policy and Compliance with the California Public Records Act (CPRA) Recodification Act (AB 473)
Agenda Item No. 7.2 Agenda Page No. 18 of 279

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City of Gilroy

STAFF REPORT
Agenda Item Title: Adoption of Revised City of Gilroy Records Management Policy and Compliance with CPRA
Recodification Act (AB 473)
Meeting Date: November 6, 2023
From: Jimmy Forbis, City Administrator
Department: City Clerk
Submitted By: Thai Nam Pham, City Clerk
Prepared By: Thai Nam Pham, City Clerk
STRATEGIC PLAN GOALS Not Applicable

RECOMMENDATION
It is recommended that the City Council adopt a revised version of the City of Gilroy Records Management Policy.

EXECUTIVE SUMMARY
The City of Gilroy adopted the Records Management Policy on November 5, 2015, as part of the Council's 2015 strategic planning process. However, with the enactment of the CPRA Recodification Act (AB 473) by the state legislature in 2021, certain California Government Codes referenced in the 2015 policy require an update. The changes brought about by AB 473 were nonsubstantive and intended to reorganize the Public Records Act law without altering its underlying principles.

In light of these legislative changes, a revised policy has been prepared to address the outdated referenced Government Code and incorporate updates related to the City's Electronic Document Management System, Laserfiche, which was not in place at the time of the original policy. The attached revised policy ensures compliance with current regulations and supports the maintenance and preservation of all City records.

Agenda Item No. 7.2 Agenda Page No. 19 of 279
Adoption of Revised City of Gilroy Records Management Policy and Compliance with CPRA Recodification Act (AB 473)
City of Gilroy City Council Page 2 of 2 November 6, 2023 1 2 ANALYSIS
The revised City of Gilroy Records Management Policy addresses the necessary updates to the referenced California Government Codes and incorporates provisions regarding the use of Laserfiche as the City's Electronic Document Management System.

These updates will enable City staff to effectively manage and preserve records in accordance with regulatory requirements.

ALTERNATIVES
The City Council may choose to modify or not to adopt the revised policy. If Council does choose to modify the policy, the proposed modifications should align with requirements and best practices.

FISCAL IMPACT/FUNDING SOURCE
There is no direct fiscal impact associated with the adoption of the revised policy. The policy updates are primarily administrative in nature and can be implemented within existing budgetary resources.

PUBLIC OUTREACH
No public outreach efforts were conducted specifically for this policy revision. However, this agenda item was included in the publicly posted agenda for this meeting. The revised policy aligns with best practices in records management and supports transparency and accountability in the City's operations.

NEXT STEPS
If the City Council adopts the revised City of Gilroy Records Management Policy, it will become the guiding document for all City staff in managing and preserving records. The City Clerk's Office will oversee the implementation and ensure staff members are informed about the policy's requirements and procedures.

Attachments:

1. Draft City of Gilroy Records Management Policy (Redline)

2. Draft City of Gilroy Records Management Policy (Clean) Agenda Item No. 7.2 Agenda Page No. 20 of 279
City of Gilroy
Records Management Policy
Agenda Item No. 7.2 Agenda Page No. 21 of 279
City of Gilroy
Records Management Policy
Adopted MM/DD/YYYY
Agenda Item No. 7.2 Agenda Page No. 22 of 279
City Records Management Policy
City of Gilroy | Office of the City Clerk Page 2 of 26
Table of Contents
Introduction .....................................................................................................................................................4 Modifications and Additions of This Manual................................................................................................4 Contact Us ..................................................................................................................................................4 Chapter 1 - Establishing a Records Management System.............................................................................5 Designating a Records Coordinator............................................................................................................5 Record Inventories......................................................................................................................................5 Chapter 2 - Filing & Storage Practices ...........................................................................................................7 Choosing Files to Maintain..........................................................................................................................7 Selecting Storage Areas .............................................................................................................................7 Naming Conventions...................................................................................................................................7 File System Index........................................................................................................................................8 File Tracking................................................................................................................................................8 Disposition...................................................................................................................................................8 Chapter 3 - Electronic Files ............................................................................................................................9 Retention of Original Documents: ...............................................................................................................9 Electronic File Storage................................................................................................................................9 File Formats ................................................................................................................................................9 Storage........................................................................................................................................................9 Chapter 4 - Identifying Records ....................................................................................................................11 What is a Record?.....................................................................................................................................11 Non-Records.............................................................................................................................................11 Chapter 5 - Access, Privacy, and Freedom of Information...........................................................................12 Records Exempt from Disclosure..............................................................................................................13 Fees ..........................................................................................................................................................15 Chapter 6 - Disposition of Records...............................................................................................................16 Preservation of Permanent Records.........................................................................................................16 Imaging of Records...................................................................................................................................16 Destruction of Records..............................................................................................................................17 Chapter 7 - City of Gilroy Retention Schedule..............................................................................................18 Maintenance of the City’s Record Retention Schedule.............................................................................18 Utilization of the Record Retention Schedule............................................................................................18 Appendix A - Records Inventory ...................................................................................................................19 Conducting a Records Inventory...............................................................................................................20 Inventory Worksheet .................................................................................................................................20 Agenda Item No. 7.2 Agenda Page No. 23 of 279
City Records Management Policy
City of Gilroy | Office of the City Clerk Page 3 of 26
Appendix B - Box Label ................................................................................................................................23 Appendix C – Records Disposition Authorization .........................................................................................24 Agenda Item No. 7.2 Agenda Page No. 24 of 279
Office of the City Clerk |City of Gilroy Page 2
Introduction ..................................................................................................................................................4 Modifications and Additions of This Manual .............................................................................................4 Contact Us.................................................................................................................................................4 Chapter 1 - Establishing a Records Management System..............................................................................5 Designating a Records Coordinator ...........................................................................................................5 Record Inventories ....................................................................................................................................6 Chapter 2 - Filing & Storage Practices............................................................................................................7 Choosing Files to Maintain ........................................................................................................................7 Selecting Storage Areas.............................................................................................................................7 Naming Conventions .................................................................................................................................8 File System Index.......................................................................................................................................8 File Tracking ..............................................................................................................................................8 Disposition ................................................................................................................................................9 Chapter 3 - Electronic Files ..........................................................................................................................10 Electronic File Storage .............................................................................................................................10 File Formats.............................................................................................................................................10 Storage ....................................................................................................................................................11 Chapter 4 - Identifying Records ...................................................................................................................12 What is a Record?....................................................................................................................................12 Non-Records............................................................................................................................................12 Chapter 5 - Access, Privacy and Freedom of Information ............................................................................14 What is a Public Record? .........................................................................................................................14 What Records are Exempt from Disclosure? ...........................................................................................14 Preparing a Record Request Response ....................................................................................................15 Fees .........................................................................................................................................................16 Chapter 6 - Disposition of Records ..............................................................................................................17 Preservation of Permanent Records........................................................................................................17 Agenda Item No. 7.2 Agenda Page No. 25 of 279
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Imaging of Records..................................................................................................................................17 Destruction of Records............................................................................................................................18 Chapter 7 - City of Gilroy Retention Schedule .............................................................................................19 Maintenance of the City’s Record Retention Schedule............................................................................19 Utilization of the Record Retention Schedule..........................................................................................19 Appendix A – Conducting a Records Inventory ...........................................................................................21 Records Inventory Worksheet ................................................................................................................22 Appendix B - Box Label................................................................................................................................23 Appendix C - Records Disposition Authorization .........................................................................................24 Destruction of Obsolete Records Inventory Worksheet..........................................................................26 Agenda Item No. 7.2 Agenda Page No. 26 of 279
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Introduction
Records should be easily accessibleEffective records management is vital for the City of Gilroy to aidsupport staff in completing their work, and to facilitate ensure the efficient operation of the city. A sound records management system provides many benefits toour municipality. Accessible records not only benefit our dedicated employees but also uphold the staff that uses it and the public who have a public's right to examine the City’sCity's records, which document our rich history. This manual is designed to assist city staff in the serves as a comprehensive guide, equipping City staff with the knowledge and tools necessary for effective records management of the City’s records and to ensure for the preservation of our valuable records that document the history of the City.

In addition to the City’sCity's established policies for records management, the City policies, it is obligated to ensureimperative that it is in compliancewe comply with other local, state, and federal mandates that provide direction regarding governing records retention. These mandates provide essential guidance and direction to ensure proper handling and accessibility of records.

In 1968 the California State Legislature passed the
The California Public Records Act (“(CPRA" or the “Act”, Government Code §6250 et seq.), which was modeled after), passed by the California State Legislature in 1968 and amended over time, grants the public access to government information, following the model of the Federal Freedom of Information Act (FOIA), and details what government information is and is not available to the public. In general,). While most records created and held by the City are subjectgenerally open to public examination by the public with the exception of, specific exemption categories. These exist. Further details regarding these exemptions are discussed in further detailcan be found in this manual and are outlined, as well as in the California Government Code §6254 and relevant case law. Theor its successor, along with relevant case law.

To promote transparency and public access, the City of Gilroy enacted legislation in 2008 entitled “the Gilroy Open Government Ordinance” (GCC §17.A which provides for more §17.A) in 2008. This local legislation enhances the public availability of records and fewer reduces the number of exemption categories thancompared to FOIA and the CPRA.

InWithin the State of California, the elected Secretary of State is charged with assumes the responsibility of establishing athe Local Government Records Program (CA GC§12236). The(CA GC§12236). This program was, established in 1999 with the assistance of the City Clerk Association of California, and is overseen by the State Archives to ensure proper records management at the local level.

Locally
At the local level, the Gilroy City Council provides directionguidance and adopts policies regardinggoverning the production, maintenance, preservation, and disposition of records. This guidance is accomplished byreflected in the creation, implementation, and adherence to the City’sCity's Record Retention Schedule. The City’s Retention Schedule is maintained and updated as necessary by the City Clerk., which is created, implemented, and regularly updated by the City Clerk to meet evolving needs and legal requirements.

On November 2, 2015, the Gilroy Council adopted the City Records Management Policy, marking an important milestone in our commitment to effective records management.

Additionally, in 2021, the state legislature enacted the CPRA Recodification Act (AB 473). Effective January 1, 2023, this act renumbered and reorganized the CPRA into a new Division 614 of the Government Code, beginning at §7920.005. Importantly, AB 473 was intended to be entirely non-substantive in effect, with no substantial changes to the law relating to the inspection of public records. Every provision of this act shall be Agenda Item No. 7.2 Agenda Page No. 27 of 279
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applied to Division 614 and AB 73 in a manner consistent with the non-substantive intent of the act.

Modifications and Additions of This Manual
BecauseAs records involve activities that are constantly changing, retention requirements for records frequently require revision. Consequentlymanagement practices continually evolve, this manual will needrequire periodic modifications orand additions to beremain realistic and effective. There may be some retentionRetention periods and disposition requirements that may change between major reviews of the manual.over time, necessitating updates. The Office of the City Clerk welcomes all comments and suggestions concerning these types of for necessary modifications and additions. to ensure the ongoing relevance of this manual.

Office of the City Clerk (408) 846-0204 7351 Rosanna Street Gilroy CA. 95020 7351 Rosanna Street, Gilroy, CA 95020
(408) 846-0204
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Chapter 1 - Establishing a Records Management System
Every day, the City of Gilroy producesgenerates records that document the government's actions of the government and the community's history of the community.. It is the City's responsibility of City to effectively maintain and manage these records and to ensure the continued , ensuring their preservation of those records as essential evidence that haswith enduring and permanent value.

Records management isencompasses more than the retention, storage, and disposition of records; it entails.

It includes all record- keeping the requirements and practices related to record-keeping that allowenable an organization to establish and maintain control over information flow and administrative operations. CompleteA comprehensive records management systems controlsystem controls and managemanages records throughout their life cycle, from their creation through active use, inactive storage, and final disposition.

Records retained Retaining records beyond their necessary duration can lead to an accumulation of documents, making management challenging and potentially hindering the organization's efficient operation, especially when many of these documents may no longer hold value “just in case” m a y p o s s i b l y extend the agency’s legal exposure in the event of adverse litigation or investigation.

Objectives of a Records Management System:
• Develop policies and procedures for records management;. • Conduct a survey or inventory of records in all formats;. • Utilize technology to create, storefor creating, storing, and retrieveretrieving records;. • DestroyProperly destroy records at the end of their retention period and document destruction;. • Store inactive records in a cost-effective and secure location;. • Identify and preserve vital records;.
• Identify and preserve permanent records;.
• Develop a disaster preparedness plan to protect and recover records;. • Implement filing and indexing systems.

Benefits of a Strong Records Management Program:
• Space savings;.
• Reduced expenses for filing equipment;.
• Increased efficiency ofin information retrieval;.
• Compliance with records retention requirements;.
• Identification and protection of vital records;.
• Control over the creation of new records;.
• Identification of historical records.

Designating a Records Coordinator
Each department maywill need to identify a person who will help to coordinateassist in coordinating the department’sdepartment's records program, and who understandspossess an understanding of the retention disposition of the department records. This person does not necessarily have to behold a formalformally designated position whose sole responsibility is solely responsible for records oversight. Often this, it is a person whosomeone to whom the Department Head can delegate decision -making authority to over the department’sdepartment's records.

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Record Inventories
A critical part of An essential step in establishing a recordrecords management system is to identify existing records. Agencies need to know must be aware of what records they have, where they are kepttheir storage locations, the volume of records, and how they are usedutilized. Inventories are not a listdetailed lists of every single page or document. Instead an inventory is done, they are conducted at the record category level and should include:
• Record category – this Category –This should matchalign with the City’sCity's Record Retention Schedule.

During anthe inventory aprocess, new record category mightcategories may be identified and need to be added to the retention schedule.
• What formatFormat(s) is the record is kept in – itRecord Kept In – It is important to note if the record isexists in multiple places and/or formats. or locations. For example, is the record kept instored as hard copycopies in the file room and kept electronically on a computer drive. Ultimately? Ideally, records should not be held in more than one location; howeverduplicated across multiple locations. However, during anthe inventory, it is important to note where all records are so ascrucial to identify all storage locations to avoid duplications.
• The lengthLength of retentionRetention of the records – itRecords – It is important to be as specific as possible, making sure to includeincluding the purpose of the retention period.

Record inventories, when
When well-planned need not , record inventories should take at most a few days or weeks of staff time to conduct.

The City Clerk is available to prepare and assist staff within conducting record inventories and subsequently creatingestablishing a recordrecords management system. It is recommended that the inventory to begin the inventory with active records and those that are unique to the department's function of the department.. This inventory should include all records in the inventory, regardless of format or storage location. Once thesethe categories are identified it, they should be described in such a way so that a person who has no knowledge ofthat even someone unfamiliar with the department or the City can easily understand what is contained in the content of each series.

See Appendix A for Sample Worksheet
For a sample worksheet, refer to Appendix A.

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Chapter 2 - Filing & Storage Practices
When discussingconsidering filing or records, generally thoughts turn to paper files and paper filling systems; however, in record-keeping, it is important to recognize that the City of Gilroy, filing and retentionGilroy's practices are applicableapply to both electronic and hard -copy records. All of the principles applicable to the paper filing system aresystems also important to an electronic filing system and should be applied the same. When creating paper or hold true for electronic filing systems the department should be mindful and create. When establishing a filing system that is simple, easily accessible by, departments should aim for simplicity, easy accessibility for all staff, used department -wide use, and well managedeffective management to ensure proper and timely disposition.

There are several different ways Various methods can be used to establish a filing system:, such as alphabetical, numerical, alphanumeric, by function-based, or series -driven. There areEach type has its pros and cons to each type of filing system, and no onea solution is appropriateshould be found for citywide implementation.

Regardless of what type ofthe chosen filing system a department uses, it is imperative that, records are “must be "filed”" or keptmaintained in accordance towith the City’sCity's Record Retention Schedule. Contact the City Clerk for assistance in developing a filing system.

Choosing Files to Maintain
Maintaining filing systems, especially paper-based ones, can be very costly; particularly paper filing systems as they require the purchase of, requiring expenses for filing supplies, space, and staff time to establish, managefor establishment, management, and retrieve/file materials. Record coordinators should be mindful whenretrieval.

When determining which records their departments are going to maintain. Coordinators, record coordinators should consider the following:
• Is this record listed on the City’s record retention schedule? All records maintainedkept at the department level should be listed on the Citywide or department -specific portion of the record retention schedule.
 Does this record exist electronically? Records that exist electronically should not be printedPrinting electronic records solely for the sole purpose of maintaininghaving a paper copy. is unnecessary. •
• Is my department the office of record? If another department is responsible for maintaining a record, a department may choose totemporarily keep it for a short time in a working file, but there is no need to maintain duplicateshould avoid duplicating files. For exampleinstance, the Office of the City Clerk isserves as the office of record for city council minutes, resolutions, and ordinances. Departments do not need to keepmaintain these records in paper or electronic files as the recordssince they are easily accessible through thea Citywide Electronic Content Management System (ECMS =), such as Laserfiche)..

Selecting Storage Areas
When decidingdetermining where files are going toshould be located, several thingsfactors should be considered:
• Is the file area easily accessible by staff and centrally located tofor staff within the workgroup that will be using the files?
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Is
• Does the room appropriate for records (i.e., spacemeet the requirements for the cabinets to be opened and closed withstoring records, such as ease of opening and closing cabinets, climate controlledcontrol (not damp or wet), well litproper lighting, and freeabsence of critters)?pests? • Can the room be secured to permit the storage of store sensitive or confidential records? Can theIs access be restricted to prevent unauthorized removal and ensure the orderly return of files? Agenda Item No. 7.2 Agenda Page No. 32 of 279
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10 Paper is very heavy and files can add up quickly. Shelving become heavy, and their numbers can accumulate rapidly. To prevent toppling or collapse, shelving and cabinets should be anchored to prevent toppling or collapse.securely. Select shelving that can hold a totalcapable of supporting 50 pounds per square foot. The spacing between shelves should be spaced so that accommodate the easy placement and removal of record storage boxes can be easily placed and removed.

It is not ideal to store
Storing frequently accessed records in storage boxes. is not ideal. Reserve the use of storage boxes for records at, or nearing, the end of their active period, or that are going intothose intended for long -term storage. Boxes should be uniform, itIt is recommended thatto use uniform boxes measuring 15”X10”X12”, be used. Boxes that are larger are "x10"x12". Larger boxes can be more difficult to manage and move. Odd , while odd-sized or multiple -sized boxes do not stack well, and can cause a dangerous collapsemay lead to hazardous collapses or damaged records.

Boxes should be filled, but not packed so tightly that records cannot be easily removed or inserted into the boxor removed. When storing records in boxes, staff should be sure to leave room for any records that might need to be inserted into the box at a later date.potential future additions. Boxes should be clearly labeled withon both short ends, displaying the contents and disposition information on the outside of the box, on both short ends so that it is always showing. See Appendix B for Sample Box Label. Refer to Appendix B for a Sample Box Label.

Naming Conventions
When creatingestablishing a naming convention system, staff should consistently utilize the sameuse commonly understood words and terms for file naming, refraining from usingavoiding abbreviations or jargon.

The naming convention that is established designed for a paper filing system should also be designed so that it can be used usable in an electronic filing environment, and vice versa. Traditionally two components of Typically, a naming system areconsists of the record category and date components. When departments issueassign project numbers, or permit numbers, or something similar where the year is usedinvolved, the year should be represented as a four -digit date. For example a police report should be (e.g., 2011-0001, not 11- 0001.) to ensure clarity. It is recommended that department’sto use categories established in the Record Retention Schedule. Equally important is to Additionally, spell out all words, as to avoid different people will abbreviate the same words differently. There are some universalabbreviations by different individuals. Universal records management abbreviations can be used where applicable.

File System Index
WhenIf a department choosesdecides to use a filing system index the department, it should index whatlist the filed records are filed, and where they are filed. File their locations. The file location information can be as range from providing a high -level as listing the category description of the record category and the office ofholding the files location, or asto providing specific details such as listing the room, file cabinet, and drawer where the file is kept.. This index should be regularly updated as records are added or removed from the system and reviewed annually.

File Tracking
It is importantessential to track files as they are temporarily leave theremoved from filing cabinet, room,cabinets or arerooms or recalled from off- site storage. A sign Sign-out cardcards can be used and inserted into the location from where the file was removed. Ataken. The sign -out card will showshould include the date of the Agenda Item No. 7.2 Agenda Page No. 33 of 279
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11 removal and who hasthe person responsible for the file. This will maintainpractice ensures the integrity of the system and aidaids in the retrieval of the record should it berecords when needed.

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City of Gilroy | Office of the City Clerk Page 12 of 26 Disposition
In a paper filing system it is helpful if the folder is , folders can be set up with a labellabels indicating the date thatwhen the record isrecords become eligible for disposition, along with the naming convention. If thea folder contains records that will have with different disposition dates, itthis information can be noted on the folder label.

This will alertIt alerts staff that the folder will need to be reviewed periodicallyrequires periodic review for the proper disposition of items. For electronic records heldstored in Laserfiche, this the disposition date is assigned whenupon entering the record is entered into the system. If the department is usinguses an electronic system other than Laserfiche, this information should be added toincluded in the file title or in the metadata/properties of the file.

It is important to remember that not all records are meant to be retained indefinitely just because a record exists, it is not required, expected, or feasible that the record will live in perpetuity.they exist. Filing systems records need tomust be reviewed annually, and records should be disposed of in accordance withaccording to the records retention schedule. Permission must be requested prior to the disposition should be obtained before disposing of records, and the approval paperworkdocumentation will then serve as the historyrecord of what occurred with the recordsdisposition process.

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Chapter 3 - Electronic Files
Departments within theThe City of Gilroy may utilizeutilizes an electronic repository towhere departments can store both permanent and transitorytemporary documents. All electronic records are subject tomust follow the retention schedule and shall be disposed of in accordance with it. Once fully implemented, theaccordingly. The City will utilizeutilizes Laserfiche as theour official Trusted System for the storage of storing electronic records.

Retention of Original Documents:

California Government Code 34090 et. seq. permits the City to destroy some original documents after they have been document imaged and retained in accordance withper the Secretary of State’sState's Uniform Statewide Standards. Laserfiche meets the requirements of these standards and willis the City’s Trusted System. However, certain historical records, like those affecting property titles, court records, must be utilized as theretained in their original form, regardless of whether they have been imaged. city’s Trusted System once fully implemented. However; some records of historical nature that begin as hardcopy records must be retained in original form regardless if they have been document imaged. This would include: records affecting the title to real property or liens thereon, court records, minutes, resolutions and ordinances of the legislative body, or of any city board or commission.

Electronic File Storage
While in the previous chapter it was noted that the guiding principles of file management are pretty much the samesimilar for both paper/hard copy and electronic files as they, there are for some differences to consider.

When it comes to electronic files, some differences still remain. Electronic fileswe should be treatedtreat them the same way as paper files when consideringregarding naming conventions, accessibility, retention, and disposition;. Additionally, electronic files can a l s o be assignedhave additional information known ascalled metadata.

Metadata:According to the National Information Standard Organization, “ Metadata is structured information that describes, explains, locates, or otherwise makes it easier to retrieve, use, or manage an information resource.” Clear and ordered, as defined by the National Information Standard Organization. We should use clear and organized metadata should be used to categorize records stored in Laserfiche. This is called descriptive metadata used forhelps in basic identification through preset fields.

It is important to identify the most likely materialrelevant information that would assist a personsomeone searching for a record. The metadata requirements should not be so complex or extensive that it is difficultbe simple and manageable to maintain.

Example: Contract with Valley Landscaping
Type : Contract
Vendor Name : Valley Landscaping
Metadata : Agreement for landscape services at city-owned parks, facilities, and streetscape
Project # : Project # 12-RFP-PW-362
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Metadata: Agreement for landscape services at city owned parks, facilities and streetscape Project # 12-RFP-PW-362
File Formats
When selecting thea format that will be used for document storage, there are two main considerations:

1. What electronic format is permittedallowed for archival storage of records by the California Secretary of State?; and

2. What format is commonly used by staff and the public? When selecting from the file formats permitted by the Secretary of State, itIt is importantcrucial to consider the accessibility of thechoose a format to ensure it is something that is accessible and commonly understood. Most importantlyAdditionally, the format selected format should be something that has hadhave market longevity and proven migration examples.

Electronic to ensure the records can be invaluable, but they can also become obsolete or worse, unusable if the format they are stored in cannot continue to migrate to new and available versionsremain usable over time.

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City of Gilroy | Office of the City Clerk Page 15 of 26 Laserfiche allows f o r storage of many differentsupports various file formats, including files originating in Microsoft Office files, Portable Document Format and Format/A (PDF and PDF/A), and Rich Text Format (RTF).

Storage
There are a variety of ways to store electronic files and media:
• On a local computer;
 On the Local computer storage: Storing files on individual computers is not recommended due to vulnerability and the risk of loss, theft, or damage.
• City network drive: Storing files on the City network via a network drive folder; • CD/DVD or other removable drive;
• Laserfiche (city Laserfiche server)
 Document storage on CD/DVD, removable drives, and/or a local staff computer is inadvisable. Records stored on these mediums are very vulnerable and often difficult, if not impossible, to restore if lost, stolen, or damaged. File storage on the City’s Network via a shared or network drive does provide more provides better security and is backed up for disaster recovery, but still is not the optimal storage place. Network drives usually have specific or limitedbackup options. However, access, thereby preventing the easy to network drives is often restricted, making it challenging to access of city records. Additionally, records stored on network drives are rarely reviewed or, purged and are not, or automatically set to retention. Ideally all of the City’s electronic records would be stored in Laserfiche. The system provides security and redundancy as well as placing retention on the items stored in the system.
 USB, CD/DVD, or other removable drives: Storing records on removable drives is discouraged as they are vulnerable and difficult to restore if lost or damaged.  Laserfiche: Ideally, all electronic records should be stored in Laserfiche. This system offers security, redundancy, and retention capabilities, ensuring the integrity and accessibility of city records.

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City of Gilroy | Office of the City Clerk Page 16 of 26 Chapter 4 - Identifying Records
The simplest way to identifyUnder the California Public Records Act, a 'public record' is defined as any writing or recording that contains information related to the conduct of the public's business, regardless of its physical form or characteristics. This aligns with the City of Gilroy's understanding and interpretation. Records can include various forms such as video, audio files, and writings stored in computer systems used for conducting business.

Identifying records is a crucial step in effective records management. By consulting the City's Retention Schedule, staff can easily determine if a material isqualifies as a record is to consult the City’s Retention Schedule..

If the material in question is identifiedlisted on the schedule, staff is obligated to maintain the recordit must be maintained in accordance with the schedule. One of the most specified retention period. However, sometimes it can be challenging aspects of records management can be determiningto determine if a document or media is a record when it is not identifiedmentioned on the schedule. In these situationssuch cases, staff should conductfollow the records test provided on the followingnext page to assist them in determininghelp make an initial finding regarding the record’s status.determination. If it is still unclear or if the material is clearly a record or if it is clear that the material is a record, but is not included on the schedule, staff should contactreach out to the City Clerk’sClerk's Office for additionalfurther assistance.

What is a Record?
Records areencompass any writing or recording that contains information related to the conduct of the public'sCity's business prepared, owned, used, or retained by the City, regardless of physical form or characteristics. "Regardless ofits physical form" or characteristics. This means that records can include video, audio files, and writings stored in a computer systemsystems used to conductfor conducting business are also records.

SomeCertain records, because of their hold enduring administrative, fiscal, legal, or historical value, and should be permanently retained. These records require that special care and consideration be given to their in terms of storage conditions and enduringlong-term preservation. Examples of permanent records include meeting minutes from Brown Act -governed bodies;, resolutions, and ordinances. ThoseOn the other hand, records with short-term value should, upon reaching the end of the retention period, be destroyed once their retention period expires.

Non-Records
Even thoughWhile records includecover a broad spectrumwide range of recorded information, not all informationmaterials held by the City is a record. Examplesqualify as records. Here are examples of non-records include the following materials:
• Identical copies of documents maintainedstored in the same file;. • Extra copies of printed or processed materials;.
• Superseded manuals and other directives (maintainedkept outside the office of record);). • Blank forms;.
• Materials received from other agencies, peopleindividuals, or businesses that require no action;. • Catalogs, trade journals and other, publications, or papers received from government agencies, commercial firms, or private institutions that require no action and are not part of an actionactive case record.

Non-records do not require need to be scheduled for retention scheduling or undergo destruction authorization or reporting. To controlavoid excessive accumulation, it is necessary to keepretain only current, and useful materials and to destroy, promptly destroying non-records immediately after needs haveonce their purpose has been satisfiedfulfilled. Staff should take carebe careful not to filemix non-record materialmaterials with records when filing.

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City of Gilroy | Office of the City Clerk Page 17 of 26 What is a Record?

1. Was t h e material mandated by statue
or regulation?

2. Does the material support a financial or
legal claim/obligation?

3. Is the material required to operate a City
program or provide program support?

4. Was the material created or received
during the conduct of City business?

5. Does the material document or facilitate:

The City’s actions
Formulation of polices & decisions
City’s directives
Board, committee meeting minutes

6. Does the material protect government and
individual rights and interests?

7. Was the material filed, stored, or
otherwise systematically maintained by the
City?

8. Is the material appropriate for either
permanent or temporary preservation by the
City?

9. Does the material have administrative
fiscal or legal value?
If you answered yes to any of the questions the
material is most likely an official record. This
could include but is not limited to:
● Decision Papers;
● Correspondence;
● Video or Audio Files;
● Reports;
● Publications
If you answered no to the questions the
material is most likely a non-record. This could
include but is not limited to:
● Materials that do not contribute to an
understanding of the City's operations or
decision making processes;
● Materials that have no substantial
programmatic value;
● Extra copies of official records that are
obtained elsewhere such as council staff
reports.

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City of Gilroy | Office of the City Clerk Page 18 of 26 WHAT IS A RECORD?
If you answered yes to any of the
questions, the material is most likely an
official record. This could include but is
not limited to:
 Decision Papers;
 Correspondence;
 Video or Audio Files;
 Reports;
 Publications

1. Was the material mandated by
statute or regulation?

2. Does the material support a
financial or legal
claim/obligation?

3. Is the material required to
operate a City program or
provide program support?

4. Was the material created or
received during the conduct of
City business?

5. Does the material document or
facilitate:
 The City’s actions
 Formulation of policies &
decisions City’s directives
 Board and committee
meeting minutes
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6. Does the material protect
government and individual rights
and interests?

7. Was the material filed, stored, or
otherwise systematically
maintained by the City?

8. Is the material appropriate for
either permanent or temporary
preservation by the City?

9. Does the material have
administrative, fiscal, or legal
value?
If you answered no to the questions,
the material is most likely a non-record.

This could include but is not limited to:
 Materials that do not contribute to
an understanding of the City's
operations or decision-making
processes;
 Materials that have no substantial
programmatic value;
 Extra copies of official records that
are obtained elsewhere, such as
council staff reports.

Chapter 5 - Access, Privacy, and Freedom of Information The City of Gilroy understandsrecognizes and supports the public’s need and more importantly their public's right to access the majority of the records created and maintained by the City. The City shall accept, review, and respond to all public record requests received, regardless of how they were submitted, by whom they are received from or the reason the request was submitted inIn accordance with the California Public Record Request Act (CPRA, California Government Code §6250 et seq.)) and the Gilroy City Code (Open Government Ordinance GCC §17.A). City staff will), the City accepts, reviews, and responds to all public record requests received, regardless of the submission method, source, or purpose of the request. City staff is available to assist in identifying responsive records by, describing the City’sCity's records, location of records and their locations, and providing suggestions in order to avoid obstacles toto ensure unobstructed public access to records.

The City is obligated to respond to all requests within twenty four (24) hours of receipt of a request, either to provideby providing the requested record or to identifyindicating that the record will be provided within no more than ten (10) calendar days of receipt of the request; although . However, most requests can and should be fulfilled in less time. There is nothing in these laws that permit the City to hold a response for ten (10) days when a record is readily accessible.

It is a shorter timeframe. It's important to note that “a "response”" does not necessarily mean the immediate production of records. For the purpose of a public record request a response may It can also be an email or a letter advising the requestor that informing the requester of the Agenda Item No. 7.2 Agenda Page No. 42 of 279
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City of Gilroy | Office of the City Clerk Page 20 of 26 availability of responsive records are available for review,, stating that states that the City does not have any
no records responsive tomatching the request exist, or that the City is invoking theirthe right for a 10 14- day extension (GCC
§17.A.25) should in cases of unusual circumstances exist.

What is a Public Record?
PerAs outlined in Chapter 4 and in accordance with the California Public Records Act (CA CG §6250 et seq. ):

A “public record” includes, a 'public record' encompasses any writing containingor recording that contains information relatingrelated to the City of Gilroy's conduct of the public’spublic business prepared, owned, used or retained by the City of Gilroy regardless of physical form or characteristics. Records are . This includes, but is not just printed or hand written documents, they may belimited to, video recordings or, database information in a database. “Writing” means handwriting, typewriting, printing, photo stating, photocopying, photographing, transmitting by electronic mail or facsimile, and every , and other means of recording upon any tangible thing, any form of communication or representation, including letters, words, pictures, sounds or symbols or any combination thereof, and any record thereby created, regardless of the manner in which the record has been stored.

Staff should always refer back to Chapter 4 for a comprehensive understanding of what constitutes a record and the importance of differentiating between records and non-records.

What
Records are Exempt from Disclosure?
While the intent of the California Public Record Act isCPRA aims to protect the public’sensure public access to records, it also outlines whatexemptions for certain information is not covered by the Act and what informationthat the City is prohibited from releasing. The Act exempts certain records from disclosure in whole or in part, they are outlined in section 6254 of the Government Code and disclosing. These exemptions are defined in § 7927.5000 of the Government Code, as well as case law. This does not mean they are not public records or that disclosure is prohibited. TheIt's important to note that although the City may withhold thethese records, butit can choose to allow greater access if it wishes. (CA GC§ 6253(e)).desired. However, "selective" or "favored" access is prohibited; once it. Once a record is disclosed to one requester, the record isit becomes public for all. (CA GC§ 6254.5).

The Gilroy Open Government Ordinance limits many of the exemptions provided under the CPRA, providing more access to a number of types of records exempted under the California government code.

Some categories of records exempt the Act itself (CA GC§§ 6254(a)-(z)), some by other laws (CA Agenda Item No. 7.2 Agenda Page No. 43 of 279
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Below is a partial list of exemptions:
• Employees' private papers, unless they "relat[e] to the conduct of the public’s business [and are] prepared, owned, used, or retained by the agency." (CA GC §6252(e)).7920.530, or its successor). •
• Computer software "developed by a state or local agency ... includ[ing] computer mapping systems, computer programs, and computer graphic systems.” (§§ 6254.9(a),(b)).(§ 7922.585, or its successor). •
• Records not yet in existence: The CPRA covers only records that already exist, and an agency cannot be required to create a record, list, or compilation. "“Rolling requests"” for future- generated records are not permitted.
• Attorney-Client communications are confidential, including all communications between the City Attorneys, Department Heads, and staff (§§ 7927.705, 7927.205, 7930.110). between the City Attorneys, Department Heads and staff. (§§ 6254(k), 6254.25, 6276.04)
• Home Addresses in DMV, voter registration, gun license, public housing, local agency utility, and public employee records are exempt, as are addresses of certain crime victims. (§§6254(f), (u(§§7923.600, 7923.800~7923.805), , 7927.4156254.1, 6254.3, 6254.4, 6254.16, 6254.21)., 7928.300, 7924.000, 7927.410, 7928.205).
•
• Records concerning agency litigation are exempt, but only until the claim is resolved or settled. The complaint, claim, or records filed in court, records that pre-date the suit (e.g., reports about projects that eventually end in litigation), and final settlement records are public. (§§ 6254(b),7927.200, 7927.2056254.25;; Register Div. of Freedom Newspapers, Inc. v. County of Orange, 158 Cal. App. 3d 893 (1984)).
•
• Personnel, medical and similar files are exempt only if disclosure would reveal intimate, private details. (§ 6254(c)).7927.700). Employment contracts are not exempt. (§ 6254.87928.400). • Police Incident reports, rap sheets and arrest records are exempt (Penal Code §§ 11075, 11105, 11105.1), but information in the "“police blotter"” (time and circumstances of calls to police; name and details of arrests, warrants, charges, hearing dates, etc.) must be disclosed unless disclosure would endanger an investigation or the life of an investigator. Investigative files may be withheld, even after an investigation is over. (CA GC § 6254(f)).7923.600-7923.625). Identifying data in police personnel files and misconduct complaints are exempt, but disclosure may be obtained using special procedures under Evidence Code section§ 1043.

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• Financial data submitted for licenses, certificates, or permits, or given in confidence to agencies that oversee insurance, securities, or banking firms; tax, welfare, and family/adoption/birth records are all exempt. (§§ 6254(d),(k),(l), 6276(§§ 7929.000, 7927.705, 7928.000, 7930.005, or its successors).

Staff who are unsure whether a record should be released, exempted, or redacted should contact the City Clerk’s Office or the City Attorneys’Attorney’s Office.

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In some instances When responding to a response might be advising the requestor the records are available for their review, notification that the city does not hold any responsive records, or initiating request, staff shall provide a written response, such as an extension of the response period. Responses are generally done in writing (either mail or email), when possible. If or letter, unless the requestor cannot be reached in writing, staff in which case any telephone or in-person communication should make a notebe noted on the request form of any telephone or in- person communication. . Once the responsive documents are collected, they must be reviewed to ensure that only records permitted to be disclosedeligible for disclosure are released, and any necessary redactions and citations for withholding have beenare completed, if required.. The staff personmember assisting with the request will then notify the requestor when the records are available for review, or provide them by emailelectronically or in person accordance with, as specified in the initial request. Staff who are unsure ifIf there are any uncertainties regarding whether a record should be released, exempted, or redacted, staff should contact the City Clerk Clerk’s Office and/or the City AttorneyAttorney’s Office for further guidance.

The
Both the California Public Record Act and the Gilroy Open Government Ordinance both describestate that records should be provided in the format in which the City maintains them. This does not mean however that However, the City cannotcan offer a different format, only that webut it cannot require athe requestor to take a record inaccept an alternative format. For example, if a record only exists inonly on paper, the City wouldn’t be able to cannot force the requestor to takereceive the document via email if they would prefer to come in and examinereview the record in person, or purchase a photocopy.

The City isIs not requiredobligated to create a record when a request is made. For example a requestor may ask for a list of the address of all city buildings. If a list does not exist staff is not required to make a list. However, if there are records However, if records containing the requested information are already in the City’s possession that contain the requested information (such as a map that marks each location, or property deeds), the records, they must be provided. There are very limited situations where creatingCreating a record may be appropriate. Consult with the in very limited situations, and guidance should be sought from the City ClerkClerk’s Office to determine the best response if you are unsurecourse of action.

If a request has been made for copies of records are requested, staff may require that payment is received prior to making the copies. In theThe response, advise should include information about the requestor that the responsive records have been identified responsive records, the total cost of reproduction cost, and the provision that copies will be made once payment has beenis received.

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Requestors may have the right to review the requested records during regular business hours, inunder the presence of a cityCity employee, in a placemanner that willdoes not disrupt day-to-day operations. Records may be duplicated. Duplication of records may be allowed, and fees for duplication are listed onin the City’s Fee Schedule and, which should be paid prior to providing copies of records. Duplication ofHowever, the City will not duplicate official architectural, engineering, and building plans will not be produced by the City until the City receiveswithout written permission to do so from the licensed professional who prepared the plan(s),) and the building owner, as required by California Health and Safety Code § 19851.

A requestorRequestors cannot be charged for the staff time it takes to completespent fulfilling a request, the cost of retrieving files from offsite storage, or for any incidental research fee.

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Chapter 6 -–- Disposition of Records
There are several distinct periods in the lifecycle of a record. They are commonly referred to asThe proper disposition of records is an essential part of records management within the City of Gilroy. It involves the active period, inactive period, and final disposition period. The of records. During the active period will vary according to the record, but is generally characterized as a record that is used or referred to , records are frequently during the course of business and should be used and readily accessible. The inactive period isfollows when the record’s regular use of the record declines or ends; however,, but the record is still requiredneeds to be heldretained. The final disposition period is generally the end of the record’s life and a finalrecord's lifecycle, where a decision is made about the record. This can include the , such as scanning of a recordit for long-term electronic storage, or destruction of the recorddestroying it.

The properProper disposition of records is important as it helps protectcrucial for protecting vital and historichistorical records and ensures, ensuring compliance with regulatory retention requirements.

Proper record retention also helps improve the City’s efficiency and manage, and managing the costs of file maintenance, retrieval, and storage.

There are The City of Gilroy primarily utilizes two (2) main types of record dispositions utilized by the Citydisposition: imaging of records in order to purge existing hard copy records, copies and the destruction of non- historical records at the end of the specified retention period. Authorization must be obtainedPrior authorization from the City Department Head, Office of the City Clerk, and Office of the City Attorney prior tois required before any record destruction of records. This is achieved by the propertakes place. The completion of record management forms. is necessary to obtain this authorization. See Appendix C for copies of these forms, and below for further detail about processing requests.

Preservation of Permanent Records
A The City recognizes its fundamental obligation towards the preservation of local government is to care for its permanent records. The In accordance with California Government Code § 12168.7, the City advocates for the utilization of digital preservation methods through a compliant Electronic Document Management System (EDMS), Laserfiche. This modern approach ensures the integrity, authenticity, and accessibility of our records over time.

Digitally preserved records within Laserfiche negate the necessity for physical copies, as long as the digital copies are accurately scanned, verified, and stored within this trusted system as defined by the Government Code. This digital preservation approach extends to historical records such as resolutions, ordinances, and minutes of Brown Act-governed bodies, which can be securely and adequately preserved in digital format within Laserfiche.

However, should there be a compelling legal or historical necessity, the retention of original hard copies will be considered on a case-by-case basis, ensuring the City’s compliance with all applicable laws and regulations concerning record preservation.

The City is committed to maintaining a modern, compliant, and efficient records management practice that have been identified as aligns with state guidelines and best practices, ensuring the long-term preservation and accessibility of its permanent require special handling and storage if they are to be preservedrecords.

Imaging of Records
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As previously mentioned the California Government code does permit the City to destroy some original documents after they have been scanned in accordance with the code. When fully implemented, the Citywide E l e c t r o n i c Content Management System (Laserfiche) w i l l meet the requirements of this code section. However, some records of historical nature, which began as hardcopy records, should be retained regardless if they have been scanned. This would include resolutions, ordinances, and minutes of Brown Act governed bodies.

Before embarking oninitiating a major project to scan records, staff should consult with the City Clerk’s Office as they are prepared and have the expertise to evaluate your for evaluation of current records and assist youassistance in developing a plan to convert existing documents into electronic files, and to migrate using the files toCitywide Electronic Content Management System, Laserfiche. There are parameters surroundingThe City Clerk’s Office has the migration of records into Laserfiche and staff needsexpertise to ensure that all of the conditions have been for migration to Laserfiche are met. It is important to note that Laserfiche is much more thannot just a repository for records. This system was but also selected for itsoffers robust workflow capabilities.

Records ideal for Laserfiche are onesis best suited for managing records that may beexhibit one or more of the following characteristics:
• Used by many Multi-Departmental Usage: Records that are utilized by multiple departments or by many people in the sameindividuals within a single department;. • Regular Access: Permanent records, particularly those that are accessed regularly;frequently. • Long Retention Period: Records that have amandated for long-term retention period;. • Electronic Lifecycle: Records that startare created, managed, and endstored in an electronic format; throughout their lifecycle.

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• Public recordsDemand: Records that are frequently requested by the public;. • Voluminous Series: Record series that are voluminousextensive in volume, making onsite storage impossible, but that are accessed often creatingimpractical, yet require frequent access which would otherwise incur offsite storage and retrieval fees.

Staff should not scan and store records on local or internal drives. These drives often do not provide the same searching, storage, or security features as Laserfiche. Most importantly By consolidating records with these drives are often not purged, creating a strain on the City’s Information Technology infrastructure, and are often times not incharacteristics into Laserfiche, we aim to optimize our records management processes, ensure compliance with retention schedules, and enhance accessibility while reducing storage and retrieval costs.

It is important to avoid scanning and storing records on local or internal drives, as they may lack necessary searching, storage, and security features. Storing records in this manner can strain the City’s information technology infrastructure and may not comply with the City’s Record Retention Schedule.

Destruction of Records
The records classification and retention periods in the The Records Retention Schedule constitute serves as the legal authority for the retention and disposal of official records. NoOnce records shall be destroyed until they have met the minimum retention period listedspecified in the schedule, and disposition has been approved by the Department Head, the City Clerk, and City Attorney, they can be destroyed.

The retention schedule prescribes the method of disposition (Records classified for destruction or secure destruction). Records requiring “destruction” may can be disposed of bythrough traditional recycling methods.

Records requiring “classified for secure destruction” must be disposed of in a way that the record is no longer recognizable or usable by any meansmakes them unrecognizable and unusable, such as through shredding.

Records that are destroyed shall either be done under the supervision of The destruction process should be supervised by a City employee or performed by an approved agency. Upon completion of the request forAfter obtaining authority to destroy obsolete records, the records maycan be destroyed, and thea destruction inventory willshould be maintained.

See Appendix C for Disposition Forms
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The City’sCity of Gilroy has a comprehensive Record Retention Schedule that establishes the retention periods for records and authorizes dispositions for many of thevarious administrative, fiscal, and legal records of the City.

Retention periods areThe schedule is based uponon federal, state, and local mandates, business needs, and general knowledge as to how long records should be kept. Staff shall implementregarding the appropriate duration for record retention. Each department is responsible for implementing the schedule as it appliespertains to their department’sspecific records. The schedule is subject to the followingHowever, there are certain exceptions and limitations to be considered:
•1. Before retaining a record longer thanRetaining Records: Departments should only retain records within the specified retention period indicated in the schedule. If there is a need to retain a record for a longer duration, the department should contact the City Clerk for assistance. Records should not be maintained longer than the retention period indicated on the schedule. The unnecessary retention of Unnecessarily retaining records can be expensivecostly in terms of space and, filing equipment, and costly litigation or discoverypotential legal processes.

This
•2. Litigation or Investigations: The schedule does not authorize the destruction of records that couldmay be deemed relevant to currentongoing or pending litigation or investigations. Records that could potentially be involved in such matters should be preserved until the legal issues are resolved.

The City’s Record Retention Schedule includes retention and disposition ofinformation for records that are common to manymultiple departments are included in the Citywide Schedule. Records unique to particular City Departments are addressed in individual. Individual department schedules address records specific to each department. It is important to note that the City’s Record Retention Schedule is a comprehensive list of the that covers both records subject to release under the California Public Records Act (CPRA) and records retained by the City. The Retention Schedule includes records that are releasable under the California Public Records Act (CPRA), as well as records that are exempt from the Act. While most of the records held by the City holds are releasable, some are notmay be exempt.

Maintenance of the City’s Record Retention Schedule
AsGiven the evolving nature of the way the City conductsCity’s business practices, it is ever changing, we recognizerecognized that records, record types, and record retentions will need to be periodically updated.retention periods may require periodic updates. A comprehensive thorough review and overhaul and review of the schedule is planned every five years. However, minor revisions and additions may need to occur.be necessary in the interim. When thesesuch situations are identifiedarise, staff should contactnotify the City Clerk, who will initiate the schedule revision process. Revisions are generallytypically submitted by staff at the department level, and are thenstaff, reviewed by the City Clerk, and assessed by the City Attorney.

Utilization of the Record Retention Schedule
The retention schedulepurpose of the Record Retention Schedule is intended to directguide City Staff on how longstaff regarding the appropriate length of time to hold Cityretain records, and when and how to dispose of the the proper method for disposing of records after theythat have exceeded their lifecycle. On theThe next page isprovides a sample of a record from the schedule,Schedule, along with category explanations of the categories used in the schedule.

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Whenever possible records have been combined into a series of like items for example “Ceremonial Documents”. In some cases, records are so unique that their record name stands alone such as “Building Permit”.

Also Called: When records go by more than one name, the alternative names are listed here.

Function: In this section the purpose or function of the record is described.

Content: A series of records may be comprised of several document types, documents that most likely will be found in this series are listed.

Total Retention: This is the total amount of time that the City is required, either by federal, state, local statute, or internal policy.

Disposition:

Disposition refers to what will be done at the end of a records lifecycle; either:
destroyed, destroyed securely, or transferred to The Center for Gilroy History.off-site storage
Statutory
Reference:

This section will be used to note any applicable government code related to the record’s retention.

Location: Where the record is stored/can be found.

Note: Any other notes, exceptions, or special instructions relating to the record or record series are listed here.

Approval Date: This is the date that the specific record or record series was approved or updated.

Calendar and Scheduling Records
Also Called:

Function:

Content:

Total Retention:

Disposition:

Statutory Reference:

Note:

Approval Date:

Appointment books, work schedules, planners, daily assignment sheets Records kept that document and facilitate the routine planning and scheduling of meetings, appointments, daily tasks, work assignments, shift assignments, vacation and/or day off schedules.

May include, but not limited to weekly schedule sheets, work schedules, appointment logs, and work assignment memos.
2 years
Destroy
CA GC §34090
February 3, 2014
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Example:

Calendar and Scheduling Records
Also Called: Appointment books, work schedules, planners, daily assignment sheets Function:

Records kept that document and facilitate the routine planning and scheduling of meetings, appointments, daily tasks, work assignments, shift assignments, vacation and/or day off schedules.

Content: May include, but not limited to weekly schedule sheets, work schedules, appointment logs, and work assignment memos.

Total Retention: 2 years
Disposition: Destroy
Statutory
Reference:

CA GC §34090
Note: None
Approval Date: February 3, 2014
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Appendix A - Records Inventory
Conducting a Records Inventory
A records inventory is thea systematic collectionprocess of gathering information for each file folder. A within an organization. Conducting a thorough inventory helps in understanding the nature and volume of records held, which in turn aids in making informed decisions regarding their storage, retention, or destruction. This process can free up to two-thirds of significantly optimize storage space devoted to active , potentially enabling the relocation of lesser-used files. Typically, one-third of the files will be destroyed; one-third transferred to inactive storage, and one-third will remain in prime office space. and the destruction of records that have met their retention periods, based on the applicable laws and organizational policies. The process has also been designed to use the information you gather in manycollected during the inventory process can be used in various ways. The information will be used in subsequent years for the following purposes, including:
• LocateLocating and tracktracking old records stored in boxes or other inactive storage areas;. • FindFinding misfiled or lost file folders;.
• IdentifyIdentifying and correctcorrecting inconsistencies in your filing systems;. • ElectronicCreating an electronic master index (you can dofor easy text searches to find the file you want);.
• CreateGenerating destruction lists in future years by “cut & paste”; • Createand box labels by “cut & paste”;.
• ManageManaging the location of records stored in off-site locations;. • Will assist in meetingMeeting the requirements for an index of records under GCC 17A;. • To useUsing in the event of a disaster so that the mostto locate and protect valuable records are located and protected;.
• The inventory will be utilized to update your Updating the retention schedule, and will to ensure the schedule covers comprehensive coverage of all of your records and will meet your needs.

Do NOT destroyImportant Note: ORIGINAL records should not be destroyed until the destruction approval has been signed. State law allows copies or drafts to be destroyed “"when no longer required”.." Copies and drafts can be destroyed as they are inventoriedduring the inventory process, provided the following conditions are met:
• You are certain the record is a copy, or draft, and is not an original City record;. • If the record contains any confidential data (e.g. citizen’s., citizen's names, phone numbers, etc.),), it must be securely destroyed of securely.

Inventory Worksheet
When conducting a records inventory, it is recommended that you utilize theto use a standardized form below for a consistent to ensure consistency in accounting offor the files on hand. Unlike the . This inventory for destruction, this inventory is meant to should be conducted down toat the file level and should containinclude the exactprecise location of theeach record. Use whatever any available information is available to conciselyclearly identify the record's location of the records. This may be the, such as room names of a room, a, room number, anumbers, or geographical notation such as north or east. When inventorying a notations. For record room it is a good idearooms, it's helpful to start by labeling thelabel file cabinets and then the drawers. For example the file:

File cabinet you start with would be: FC1. Then the drawers (starting at the top) would be Drawers: a, b, c, etc…; .

Files in file cabinet 1, drawer b would be expressed as: FC1-b.

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When preparing records to be storedfor storage in record boxes, it is essentialimportant to ensure that the boxes are clearly labeled and organized so that they can be easily accessed. It is recommended that labels for easy access. The following guidelines should be followed:
 Labels should be applied to the short end of each box so that the for easy review of contents can be easily reviewed. Records boxes.
 Boxes should be filled with records, but not packed so tightly that records cannot be retrievedretrieval or inserted into the box. insertion of records becomes difficult.  A copy of the inventory should also be placed inside the box on top of the records. Below is a sample box label. Minimally, the box should be labeled with the record description, date range, and the date the entire box is eligible for destruction.

Sample Box Label:

Department & Division: Box #
Contents
Record Category Description/Note Date Range
Inventoried By (Print Name)/Date: Date Eligible for Destruction:

Example:

Department & Division: Facilities/Administration Box # 4 of 13 Contents
Record Category Description/Note Date Range
Correspondence City Infrastructure Project (admin) 1/2013 – 12/2014 Inventoried By (Print Name)/Date:

Tom Smith 4/5/2015
Date Box Eligible for Destruction: 12/2016
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Appendix C – Records Disposition Authorization

REQUEST FOR AUTHORITY TO DESTROY OBSOLETE RECORDS
Request No.

This Request for Authority to Destroy Obsolete Records is made pursuant to the:

Gilroy Records Retention Guidelines adopted February 3, 2014, by City Council Resolution No. 2014-11 I hereby request destruction of the records identified on the “Destruction of Obsolete Records Inventory,” attached hereto as Exhibit “A.” The records identified on Exhibit “A” will be referred to as “Obsolete Records.” I have reviewed the Obsolete Records and hereby certify that the “record series numbers,” “office of record/title & content of record”, and “dates of records”, identified on Exhibit “A” attached hereto, accurately and completely describe the Obsolete Records.

I hereby certify that, based upon the Records Retention Guidelines, the City is no longer required to retain these Obsolete Records.

Staff Member/Records Manager Date
Approved by:

Department Head
I hereby certify that I have reviewed the Request for Destruction of Obsolete Records Inventory (Exhibit “A”), and, to my knowledge, the Obsolete Records Inventory does not identify any records which the City is required to retain in accordance with the City Records Retention Guidelines.

Subject to the consent by the City Attorney as provided with the adoption of Resolution 2014-11, I hereby consent to destruction of the Obsolete Records. Based upon the types of documents included in the Obsolete Records Inventory, the method of destruction shall be:

Shredding , Recycling , RME Destruction [to be inserted by City Clerk] I hereby consent to destruction of the Obsolete Records City Clerk Date
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City of Gilroy
Records Management Policy
Adopted MM/DD/YYYY
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Table of Contents
Introduction ................................................................................................................................................. 4 Modifications and Additions of This Manual ............................................................................................. 4 Contact Us............................................................................................................................................... 4 Chapter 1 - Establishing a Records Management System........................................................................... 5 Designating a Records Coordinator ......................................................................................................... 5 Record Inventories................................................................................................................................... 5 Chapter 2 - Filing & Storage Practices......................................................................................................... 7 Choosing Files to Maintain....................................................................................................................... 7 Selecting Storage Areas .......................................................................................................................... 7 Naming Conventions................................................................................................................................ 7 File System Index .................................................................................................................................... 8 File Tracking ............................................................................................................................................ 8 Disposition ............................................................................................................................................... 8 Chapter 3 - Electronic Files ......................................................................................................................... 9 Retention of Original Documents: ............................................................................................................ 9 Electronic File Storage............................................................................................................................. 9 File Formats............................................................................................................................................. 9 Storage.................................................................................................................................................... 9 Chapter 4 - Identifying Records .................................................................................................................11 What is a Record? ................................................................................................................................. 11 Non-Records..........................................................................................................................................11 Chapter 5 - Access, Privacy, and Freedom of Information.........................................................................12 Records Exempt from Disclosure...........................................................................................................13 Fees.......................................................................................................................................................15 Chapter 6 - Disposition of Records ............................................................................................................16 Preservation of Permanent Records ......................................................................................................16 Imaging of Records................................................................................................................................16 Destruction of Records...........................................................................................................................17 Chapter 7 - City of Gilroy Retention Schedule ...........................................................................................18 Maintenance of the City’s Record Retention Schedule...........................................................................18 Utilization of the Record Retention Schedule .........................................................................................18 Appendix A - Records Inventory ................................................................................................................19 Conducting a Records Inventory............................................................................................................20 Agenda Item No. 7.2 Agenda Page No. 66 of 279
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Inventory Worksheet..............................................................................................................................20 Appendix B - Box Label.............................................................................................................................23 Appendix C – Records Disposition Authorization.......................................................................................24 Agenda Item No. 7.2 Agenda Page No. 67 of 279
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Introduction
Effective records management is vital for the City of Gilroy to support staff in their work and ensure the efficient operation of our municipality. Accessible records not only benefit our dedicated employees but also uphold the public's right to examine the City's records, which document our rich history. This manual serves as a comprehensive guide, equipping City staff with the knowledge and tools necessary for effective records management and the preservation of our valuable records.

In addition to the City's established records management policies, it is imperative that we comply with other local, state, and federal mandates governing records retention. These mandates provide essential guidance and direction to ensure proper handling and accessibility of records.

The California Public Records Act (CPRA), passed by the California State Legislature in 1968 and amended over time, grants the public access to government information, following the model of the Federal Freedom of Information Act (FOIA). While most records created and held by the City are generally open to public examination, specific exemption categories exist. Further details regarding these exemptions can be found in this manual, as well as in the California Government Code or its successor, along with relevant case law.

To promote transparency and public access, the City of Gilroy enacted the Gilroy Open Government Ordinance (GCC §17.A) in 2008. This local legislation enhances the public availability of records and reduces the number of exemption categories compared to FOIA and the CPRA.

Within the State of California, the elected Secretary of State assumes the responsibility of establishing the Local Government Records Program (CA GC§12236). This program, established in 1999 with the assistance of the City Clerk Association of California, is overseen by the State Archives to ensure proper records management at the local level.

At the local level, the Gilroy City Council provides guidance and adopts policies governing the production, maintenance, preservation, and disposition of records. This guidance is reflected in the City's Record Retention Schedule, which is created, implemented, and regularly updated by the City Clerk to meet evolving needs and legal requirements.

On November 2, 2015, the Gilroy Council adopted the City Records Management Policy, marking an important milestone in our commitment to effective records management.

Additionally, in 2021, the state legislature enacted the CPRA Recodification Act (AB 473). Effective January 1, 2023, this act renumbered and reorganized the CPRA into a new Division 614 of the Government Code, beginning at §7920.005. Importantly, AB 473 was intended to be entirely non-substantive in effect, with no substantial changes to the law relating to the inspection of public records. Every provision of this act shall be applied to Division 614 and AB 73 in a manner consistent with the non-substantive intent of the act.

Modifications and Additions of This Manual
As records management practices continually evolve, this manual will require periodic modifications and additions to remain realistic and effective. Retention periods and disposition requirements may change over time, necessitating updates. The Office of the City Clerk welcomes comments and suggestions for necessary modifications and additions to ensure the ongoing relevance of this manual.

Office of the City Clerk
7351 Rosanna Street, Gilroy, CA 95020
(408) 846-0204
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Chapter 1 - Establishing a Records Management System
Every day, the City of Gilroy generates records that document the government's actions and the community's history. It is the City's responsibility to effectively maintain and manage these records, ensuring their preservation as essential evidence with enduring and permanent value.

Records management encompasses more than the retention, storage, and disposition of records. It includes all the requirements and practices related to record-keeping that enable an organization to establish and maintain control over information flow and administrative operations. A comprehensive records management system controls and manages records throughout their life cycle, from creation through active use, inactive storage, and final disposition. Retaining records beyond their necessary duration can lead to an accumulation of documents, making management challenging and potentially hindering the organization's efficient operation, especially when many of these documents may no longer hold value.

Objectives of a Records Management System:
• Develop policies and procedures for records management. • Conduct a survey or inventory of records in all formats. • Utilize technology for creating, storing, and retrieving records. • Properly destroy records at the end of their retention period and document destruction. • Store inactive records in a cost-effective and secure location. • Identify and preserve vital records.
• Identify and preserve permanent records.
• Develop a disaster preparedness plan to protect and recover records. • Implement filing and indexing systems.

Benefits of a Strong Records Management Program:
• Space savings.
• Reduced expenses for filing equipment.
• Increased efficiency in information retrieval.
• Compliance with records retention requirements.
• Identification and protection of vital records.
• Control over the creation of new records.
• Identification of historical records.

Designating a Records Coordinator
Each department will need to identify a person who will assist in coordinating the department's records program and possess an understanding of the retention disposition of department records. This person does not necessarily have to hold a formally designated position solely responsible for records oversight. Often, it is someone to whom the Department Head can delegate decision-making authority over the department's records.

Record Inventories
An essential step in establishing a records management system is to identify existing records. Agencies must be aware of what records they have, their storage locations, the volume of records, and how they are utilized.

Inventories are not detailed lists of every single page or document. Instead, they are conducted at the record category level and should include:
• Record Category –This should align with the City's Record Retention Schedule. During the inventory process, new record categories may be identified and added to the retention schedule. • What Format(s) is the Record Kept In – It is important to note if the record exists in multiple formats or locations. For example, is the record stored as hard copies in the file room and electronically on a computer drive? Ideally, records should not be duplicated across multiple locations. However, during the inventory, Agenda Item No. 7.2 Agenda Page No. 69 of 279
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it is crucial to identify all storage locations to avoid duplications. • The Length of Retention of the Records – It is important to be as specific as possible, including the purpose of the retention period.

When well-planned, record inventories should take at most a few days or weeks of staff time to conduct. The City Clerk is available to prepare and assist staff in conducting record inventories and subsequently establishing a records management system. It is recommended to begin the inventory with active records and those unique to the department's function. This inventory should include all records, regardless of format or storage location.

Once the categories are identified, they should be described in a way that even someone unfamiliar with the department or the City can easily understand the content of each series.

For a sample worksheet, refer to Appendix A.

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Chapter 2 - Filing & Storage Practices
When considering filing or record-keeping, it is important to recognize that the City of Gilroy's practices apply to both electronic and hard-copy records. All principles applicable to paper filing systems also hold true for electronic filing systems. When establishing a filing system, departments should aim for simplicity, easy accessibility for all staff, department-wide use, and effective management to ensure proper and timely disposition.

Various methods can be used to establish a filing system, such as alphabetical, numerical, alphanumeric, function-based, or series-driven. Each type has its pros and cons, and a solution should be found for citywide implementation. Regardless of the chosen filing system, records must be "filed" or maintained in accordance with the City's Record Retention Schedule. Contact the City Clerk for assistance in developing a filing system.

Choosing Files to Maintain
Maintaining filing systems, especially paper-based ones, can be costly, requiring expenses for filing supplies, space, and staff time for establishment, management, and retrieval. When determining which records to maintain, record coordinators should consider the following:
• Is this record listed on the City’s record retention schedule? All records kept at the department level should be listed on the Citywide or department-specific portion of the retention schedule. • Does this record exist electronically? Printing electronic records solely for the purpose of having a paper copy is unnecessary.
• Is my department the office of record? If another department is responsible for maintaining a record, a department may temporarily keep it in a working file but should avoid duplicating files. For instance, the Office of the City Clerk serves as the office of record for city council minutes, resolutions, and ordinances.

Departments do not need to maintain these records in paper or electronic files since they are easily accessible through a Citywide Electronic Content Management System (ECMS), such as Laserfiche.

Selecting Storage Areas
When determining where files should be located, several factors should be considered:
• Is the file area easily accessible and centrally located for staff within the workgroup using the files? • Does the room meet the requirements for storing records, such as ease of opening and closing cabinets, climate control (not damp or wet), proper lighting, and absence of pests? • Can the room be secured to store sensitive or confidential records? Is access restricted to prevent unauthorized removal and ensure the orderly return of files? Paper files can become heavy, and their numbers can accumulate rapidly. To prevent toppling or collapse, shelving and cabinets should be anchored securely. Select shelving capable of supporting 50 pounds per square foot. The spacing between shelves should accommodate the easy placement and removal of record storage boxes.

Storing frequently accessed records in storage boxes is not ideal. Reserve the use of storage boxes for records nearing the end of their active period or those intended for long-term storage. It is recommended to use uniform boxes measuring 15"x10"x12". Larger boxes can be more difficult to manage and move, while odd-sized or multiple-sized boxes do not stack well and may lead to hazardous collapses or damaged records.

Boxes should be filled but not packed so tightly that records cannot be easily inserted or removed. When storing records in boxes, staff should leave room for potential future additions. Boxes should be clearly labeled on both short ends, displaying the contents and disposition information. Refer to Appendix B for a Sample Box Label.

Naming Conventions
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When establishing a naming convention system, staff should consistently use commonly understood words and terms for file naming, avoiding abbreviations or jargon. The naming convention designed for a paper filing system should also be usable in an electronic filing environment and vice versa. Typically, a naming system consists of the record category and date components. When departments assign project numbers or permit numbers where the year is involved, the year should be represented as a four-digit date (e.g., 2011-0001, not 11-0001) to ensure clarity. It is recommended to use categories established in the Record Retention Schedule. Additionally, spell out all words to avoid different abbreviations by different individuals. Universal records management abbreviations can be used where applicable.

File System Index
If a department decides to use a filing system index, it should list the filed records and their locations. The file location information can range from providing a high-level description of the record category and the office holding the files to providing specific details such as the room, file cabinet, and drawer. This index should be regularly updated as records are added or removed from the system and reviewed annually.

File Tracking
It is essential to track files as they are temporarily removed from filing cabinets or rooms or recalled from off-site storage. Sign-out cards can be used and inserted into the location from where the file was taken. The sign-out card should include the date of removal and the person responsible for the file. This practice ensures the integrity of the system and aids in the retrieval of records when needed.

Disposition
In a paper filing system, folders can be set up with labels indicating the date when the records become eligible for disposition, along with the naming convention. If a folder contains records with different disposition dates, this information can be noted on the folder label. It alerts staff that the folder requires periodic review for the proper disposition of items. For electronic records stored in Laserfiche, the disposition date is assigned upon entering the record into the system. If the department uses an electronic system other than Laserfiche, this information should be included in the file title or metadata/properties.

It is important to remember that not all records are meant to be retained indefinitely just because they exist.

Filing systems must be reviewed annually, and records should be disposed of according to the records retention schedule. Permission should be obtained before disposing of records, and the approval documentation will serve as the record of the disposition process.

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Chapter 3 - Electronic Files
The City of Gilroy utilizes an electronic repository where departments can store both permanent and temporary documents. All electronic records must follow the retention schedule and be disposed of accordingly. The City utilizes Laserfiche as our official Trusted System for storing electronic records.

Retention of Original Documents:

California Government Code 34090 et. seq. permits the City to destroy some original documents after they have been imaged and retained per the Secretary of State's Uniform Statewide Standards. Laserfiche meets these standards and is the City’s Trusted System. However, certain historical records, like those affecting property titles, court records, must be retained in their original form, regardless of whether they have been imaged.

Electronic File Storage
While the principles of file management are similar for both paper and electronic files, there are some differences to consider. When it comes to electronic files, we should treat them the same way as paper files regarding naming conventions, accessibility, retention, and disposition. Additionally, electronic files can have additional information called metadata.

Metadata:

Metadata is structured information that describes, explains, locates, or makes it easier to retrieve, use, or manage an information resource, as defined by the National Information Standard Organization. We should use clear and organized metadata to categorize records stored in Laserfiche. This descriptive metadata helps in basic identification through preset fields.

It is important to identify the most relevant information that would assist someone searching for a record.

The metadata requirements should be simple and manageable to maintain.

Example:

Type : Contract
Vendor Name : Valley Landscaping
Metadata : Agreement for landscape services at city-owned parks, facilities, and streetscape
Project # : Project # 12-RFP-PW-362
File Formats
When selecting a format for document storage, there are two main considerations:

1. What electronic format is allowed for archival storage by the California Secretary of State?; and

2. What format is commonly used by staff and the public? It is crucial to choose a format that is accessible and commonly understood. Additionally, the selected format should have market longevity and proven migration examples to ensure the records remain usable over time.

Laserfiche supports various file formats, including Microsoft Office files, Portable Document Format and Format/A (PDF and PDF/A), and Rich Text Format (RTF).

Storage
There are a variety of ways to store electronic files and media:
• Local computer storage: Storing files on individual computers is not recommended due to vulnerability and the risk of loss, theft, or damage.

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City of Gilroy | Office of the City Clerk Page 10 of 26 • City network drive: Storing files on the City network via a network drive folder provides better security and backup options. However, access to network drives is often restricted, making it challenging to access city records. Additionally, records stored on network drives are rarely reviewed, purged, or automatically set to retention.
• USB, CD/DVD, or other removable drives: Storing records on removable drives is discouraged as they are vulnerable and difficult to restore if lost or damaged. • Laserfiche: Ideally, all electronic records should be stored in Laserfiche. This system offers security, redundancy, and retention capabilities, ensuring the integrity and accessibility of city records.

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City of Gilroy | Office of the City Clerk Page 11 of 26 Chapter 4 - Identifying Records
Under the California Public Records Act, a 'public record' is defined as any writing or recording that contains information related to the conduct of the public's business, regardless of its physical form or characteristics. This aligns with the City of Gilroy's understanding and interpretation. Records can include various forms such as video, audio files, and writings stored in computer systems used for conducting business.

Identifying records is a crucial step in effective records management. By consulting the City's Retention Schedule, staff can easily determine if a material qualifies as a record. If the material is listed on the schedule, it must be maintained in accordance with the specified retention period. However, sometimes it can be challenging to determine if a document or media is a record when it is not mentioned on the schedule. In such cases, staff should follow the records test provided on the next page to help make an initial determination. If it is still unclear or if the material is clearly a record but not included on the schedule, staff should reach out to the City Clerk's Office for further assistance.

What is a Record?
Records encompass any writing or recording that contains information related to the City's business, regardless of its physical form or characteristics. This means that records can include video, audio files, and writings stored in computer systems used for conducting business.

Certain records hold enduring administrative, fiscal, legal, or historical value and should be permanently retained.

These records require special care and consideration in terms of storage conditions and long-term preservation.

Examples of permanent records include meeting minutes from Brown Act-governed bodies, resolutions, and ordinances. On the other hand, records with short-term value should be destroyed once their retention period expires.

Non-Records
While records cover a wide range of recorded information, not all materials held by the City qualify as records.

Here are examples of non-records:
• Identical copies of documents stored in the same file. • Extra copies of printed or processed materials.
• Superseded manuals and directives (kept outside the office of record). • Blank forms.
• Materials received from other agencies, individuals, or businesses that require no action. • Catalogs, trade journals, publications, or papers received from government agencies, commercial firms, or private institutions that require no action and are not part of an active case record.

Non-records do not need to be scheduled for retention or undergo destruction authorization or reporting. To avoid excessive accumulation, it is necessary to retain only current and useful materials, promptly destroying non-records once their purpose has been fulfilled. Staff should be careful not to mix non-record materials with records when filing.

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City of Gilroy | Office of the City Clerk Page 12 of 26 WHAT IS A RECORD?

1. Was the material mandated by
statute or regulation?

2. Does the material support a
financial or legal claim/obligation?

3. Is the material required to
operate a City program or provide
program support?

4. Was the material created or
received during the conduct of
City business?

5. Does the material document or
facilitate:
• The City’s actions
• Formulation of policies &
decisions City’s directives
• Board and committee
meeting minutes

6. Does the material protect
government and individual rights
and interests?

7. Was the material filed, stored, or
otherwise systematically
maintained by the City?

8. Is the material appropriate for
either permanent or temporary
preservation by the City?

9. Does the material have
administrative, fiscal, or legal
value?
If you answered yes to any of the
questions, the material is most likely an
official record. This could include but is
not limited to:
• Decision Papers;
• Correspondence;
• Video or Audio Files;
• Reports;
• Publications
If you answered no to the questions, the
material is most likely a non-record. This
could include but is not limited to:
• Materials that do not contribute to an
understanding of the City's
operations or decision-making
processes;
• Materials that have no substantial
programmatic value;
• Extra copies of official records that
are obtained elsewhere, such as
council staff reports.

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City of Gilroy | Office of the City Clerk Page 13 of 26 Chapter 5 - Access, Privacy, and Freedom of Information The City of Gilroy recognizes and supports the public's right to access the majority of records created and maintained by the City. In accordance with the California Public Record Request Act (CPRA) and the Gilroy City Code (Open Government Ordinance GCC §17.A), the City accepts, reviews, and responds to all public record requests received, regardless of the submission method, source, or purpose of the request. City staff is available to assist in identifying responsive records, describing the City's records and their locations, and providing suggestions to ensure unobstructed public access to records.

The City is obligated to respond to all requests within 24 hours of receipt, either by providing the requested record or indicating that the record will be provided within ten calendar days. However, most requests can and should be fulfilled in a shorter timeframe. It's important to note that a "response" does not necessarily mean the immediate production of records. It can also be an email or letter informing the requester of the availability of responsive records, stating that no records matching the request exist, or invoking the right for a 14-day extension in cases of unusual circumstances.

As outlined in Chapter 4 and in accordance with the California Public Records Act, a 'public record' encompasses any writing or recording that contains information related to the City of Gilroy's conduct of public business. This includes, but is not limited to, video recordings, database information, and other means of recording communication or representation. Staff should always refer back to Chapter 4 for a comprehensive understanding of what constitutes a record and the importance of differentiating between records and nonrecords.

Records Exempt from Disclosure
While the CPRA aims to ensure public access to records, it also outlines exemptions for certain information that the City is prohibited from disclosing. These exemptions are defined in § 7927.5000 of the Government Code, as well as case law. It's important to note that although the City may withhold these records, it can choose to allow greater access if desired. However, "selective" or "favored" access is prohibited. Once a record is disclosed to one requester, it becomes public for all.

The Gilroy Open Government Ordinance extends access to several types of records that are exempted under the California Government Code. Exemptions can be categorized as exemptions provided under the CPRA itself, exemptions provided by other laws, and exemptions based on case law. Some examples of exemptions include employees' private papers unless they relate to public business, computer software developed by the City, records not yet in existence, attorney-client communications, certain home addresses, records concerning agency litigation, personnel, and medical files, police incident reports, and financial data submitted for licenses or permits. Staff who are still determining whether a record should be released, exempted, or redacted should consult with the City Clerk's Office or the City Attorney's Office for guidance. Below is a partial list of exemptions:
• Employees' private papers, unless they "relat[e] to the conduct of the public’s business [and are] prepared, owned, used, or retained by the agency." (CA GC §7920.530, or its successor). • Computer software "developed by a state or local agency ... includ[ing] computer mapping systems, computer programs, and computer graphic systems.” (§ 7922.585, or its successor). • Records not yet in existence: The CPRA covers only records that already exist, and an agency cannot be required to create a record, list, or compilation. “Rolling requests” for future-generated records are not permitted.
• Attorney-Client communications are confidential, including all communications between the City Attorneys, Department Heads, and staff (§§ 7927.705, 7927.205, 7930.110). • Home Addresses in DMV, voter registration, gun license, public housing, local agency utility, and public employee records are exempt, as are addresses of certain crime victims. (§§7923.600, 7923.800~7923.805, 7927.415, 7928.300, 7924.000, 7927.410, 7928.205).

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City of Gilroy | Office of the City Clerk Page 14 of 26 • Records concerning agency litigation are exempt, but only until the claim is resolved or settled. The complaint, claim, or records filed in court, records that pre-date the suit (e.g., reports about projects that eventually end in litigation), and final settlement records are public. (§§ 7927.200, 7927.205; Register Div. of Freedom Newspapers, Inc. v. County of Orange, 158 Cal. App. 3d 893 (1984)). • Personnel, medical and similar files are exempt only if disclosure would reveal intimate, private details. (§ 7927.700). Employment contracts are not exempt. (§ 7928.400). • Police Incident reports, rap sheets and arrest records are exempt (Penal Code §§ 11075, 11105, 11105.1), but information in the “police blotter” (time and circumstances of calls to police; name and details of arrests, warrants, charges, hearing dates, etc.) must be disclosed unless disclosure would endanger an investigation or the life of an investigator. Investigative files may be withheld, even after an investigation is over. (CA GC § 7923.600-7923.625). Identifying data in police personnel files and misconduct complaints are exempt, but disclosure may be obtained using special procedures under Evidence Code § 1043.
• Financial data submitted for licenses, certificates, or permits, or given in confidence to agencies that oversee insurance, securities, or banking firms; tax, welfare, and family/adoption/birth records are all exempt. (§§ 7929.000, 7927.705, 7928.000, 7930.005, or its successors).

Staff who are unsure whether a record should be released, exempted, or redacted should contact the City Clerk’s Office or the City Attorney’s Office.

Preparing a Response to a Records Request
When responding to a records request, staff shall provide a written response, such as an email or letter, unless the requestor cannot be reached in writing, in which case any telephone or in-person communication should be noted on the request form. Once the responsive documents are collected, they must be reviewed to ensure that only records eligible for disclosure are released, and any necessary redactions and citations for withholding are completed. The staff member assisting with the request will then notify the requestor when the records are available for review, or provide them electronically or in person, as specified in the initial request. If there are any uncertainties regarding whether a record should be released, exempted, or redacted, staff should contact the City Clerk’s Office and/or the City Attorney’s Office for further guidance.

Both the California Public Record Act and the Gilroy Open Government Ordinance state that records should be provided in the format in which the City maintains them. However, the City can offer a different format, but it cannot require the requestor to accept an alternative format. For example, if a record exists only on paper, the City cannot force the requestor to receive the document via email if they prefer to review the record in person or purchase a photocopy.

The City Is not obligated to create a record when a request is made. However, if records containing the requested information are already in the City’s possession, they must be provided. Creating a record may be appropriate in very limited situations, and guidance should be sought from the City Clerk’s Office to determine the best course of action.

If copies of records are requested, staff may require payment prior to making the copies. The response should include information about the identified responsive records, the total reproduction cost, and the provision that copies will be made once payment is received.

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City of Gilroy | Office of the City Clerk Page 15 of 26 Fees
Requestors have the right to review requested records during regular business hours, under the presence of a City employee, in a manner that does not disrupt day-to-day operations. Duplication of records may be allowed, and fees for duplication are listed in the City’s Fee Schedule, which should be paid prior to providing copies of records. However, the City will not duplicate official architectural, engineering, and building plans without written permission from the licensed professional who prepared the plan(s) and the building owner, as required by California Health and Safety Code § 19851.

Requestors cannot be charged for staff time spent fulfilling a request, the cost of retrieving files from offsite storage, or any incidental research fee.

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City of Gilroy | Office of the City Clerk Page 16 of 26 Chapter 6–- Disposition of Records
The proper disposition of records is an essential part of records management within the City of Gilroy. It involves the active period, inactive period, and final disposition period of records. During the active period, records are frequently used and readily accessible. The inactive period follows when the regular use of the record declines or ends, but the record still needs to be retained. The final disposition period is the end of the record's lifecycle, where a decision is made about the record, such as scanning it for long-term electronic storage or destroying it.

Proper disposition of records is crucial for protecting vital and historical records, ensuring compliance with regulatory retention requirements, and managing the costs of file maintenance, retrieval, and storage. The City of Gilroy primarily utilizes two types of record disposition: imaging of records to purge existing hard copies and the destruction of non-historical records at the end of the specified retention period. Prior authorization from the City Department Head, Office of the City Clerk, and Office of the City Attorney is required before any record destruction takes place. The completion of record management forms is necessary to obtain this authorization.

See Appendix C for copies of these forms and below for further detail about processing requests.

Preservation of Permanent Records
The City recognizes its fundamental obligation towards the preservation of its permanent records. In accordance with California Government Code § 12168.7, the City advocates for the utilization of digital preservation methods through a compliant Electronic Document Management System (EDMS), Laserfiche. This modern approach ensures the integrity, authenticity, and accessibility of our records over time.

The City is committed to maintaining a modern, compliant, and efficient records management practice that aligns with state guidelines and best practices, ensuring the long-term preservation and accessibility of its permanent records.

Imaging of Records
Before initiating a major project to scan records, staff should consult with the City Clerk’s Office for evaluation of current records and assistance in developing a plan to convert existing documents into electronic files using the Citywide Electronic Content Management System, Laserfiche. The City Clerk’s Office has the expertise to ensure that all conditions for migration to Laserfiche are met. Laserfiche is not just a repository for records but also offers robust workflow capabilities.

Laserfiche is best suited for managing records that exhibit one or more of the following characteristics:
• Multi-Departmental Usage: Records that are utilized by multiple departments or by many individuals within a single department.
• Regular Access: Permanent records that are accessed frequently. • Long Retention Period: Records mandated for long-term retention. • Electronic Lifecycle: Records that are created, managed, and stored in an electronic format throughout their lifecycle.
• Public Demand: Records that are frequently requested by the public. • Voluminous Series: Record series that are extensive in volume, making onsite storage impractical, Agenda Item No. 7.2 Agenda Page No. 80 of 279
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City of Gilroy | Office of the City Clerk Page 17 of 26 yet require frequent access which would otherwise incur offsite storage and retrieval fees.

By consolidating records with these characteristics into Laserfiche, we aim to optimize our records management processes, ensure compliance with retention schedules, and enhance accessibility while reducing storage and retrieval costs.

Destruction of Records
The Records Retention Schedule serves as the legal authority for the retention and disposal of official records.

Once records have met the minimum retention period specified in the schedule, and disposition has been approved by the Department Head, City Clerk, and City Attorney, they can be destroyed.

Records classified for destruction can be disposed of through traditional recycling methods. Records classified for secure destruction must be disposed of in a way that makes them unrecognizable and unusable, such as through shredding. The destruction process should be supervised by a City employee or performed by an approved agency. After obtaining authority to destroy obsolete records, the records can be destroyed, and a destruction inventory should be maintained.

Appendix C contains the Disposition Forms necessary for record disposition.

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City of Gilroy | Office of the City Clerk Page 18 of 26 Chapter 7–- City of Gilroy Retention Schedule
The City of Gilroy has a comprehensive Record Retention Schedule that establishes the retention periods for various administrative, fiscal, and legal records of the City. The schedule is based on federal, state, and local mandates, business needs, and general knowledge regarding the appropriate duration for record retention. Each department is responsible for implementing the schedule as it pertains to their specific records. However, there are certain exceptions and limitations to be considered:

1. Retaining Records: Departments should only retain records within the specified retention period indicated in the schedule. If there is a need to retain a record for a longer duration, the department should contact the City Clerk for assistance. Unnecessarily retaining records can be costly in terms of space, filing equipment, and potential legal processes.

2. Litigation or Investigations: The schedule does not authorize the destruction of records that may be relevant to ongoing or pending litigation or investigations. Records that could potentially be involved in such matters should be preserved until the legal issues are resolved.

The City’s Record Retention Schedule includes retention and disposition information for records that are common to multiple departments. Individual department schedules address records specific to each department.

It is important to note that the City’s Record Retention Schedule is a comprehensive list that covers both records subject to release under the California Public Records Act (CPRA) and records exempt from the Act. While most records held by the City are releasable, some may be exempt.

Maintenance of the City’s Record Retention Schedule
Given the evolving nature of the City’s business practices, it is recognized that records, record types, and retention periods may require periodic updates. A thorough review and overhaul of the schedule is planned every five years. However, minor revisions and additions may be necessary in the interim. When such situations arise, staff should notify the City Clerk, who will initiate the schedule revision process. Revisions are typically submitted by department staff, reviewed by the City Clerk, and assessed by the City Attorney.

Utilization of the Record Retention Schedule
The purpose of the Record Retention Schedule is to guide City staff regarding the appropriate length of time to retain records and the proper method for disposing of records that have exceeded their lifecycle. The next page provides a sample record from the Schedule, along with explanations of the categories used in the schedule.

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City of Gilroy | Office of the City Clerk Page 19 of 26 Record Name
Whenever possible records have been combined into a series of like items for example “Ceremonial Documents”. In some cases, records are so unique that their record name stands alone such as “Building Permit”.

Also Called: When records go by more than one name, the alternative names are listed here.

Function: In this section the purpose or function of the record is described.

Content: A series of records may be comprised of several document types, documents that most likely will be found in this series are listed.

Total Retention: This is the total amount of time that the City is required, either by federal, state, local statute, or internal policy.

Disposition: Disposition refers to what will be done at the end of a records lifecycle; either:
destroyed, destroyed securely, or transferred to off-site storage Statutory
Reference:

This section will be used to note any applicable government code related to the record’s retention.

Location: Where the record is stored/can be found.

Note: Any other notes, exceptions, or special instructions relating to the record or record series are listed here.

Approval Date: This is the date that the specific record or record series was approved or updated.

Example:

Calendar and Scheduling Records
Also Called: Appointment books, work schedules, planners, daily assignment sheets Function:

Records kept that document and facilitate the routine planning and scheduling of meetings, appointments, daily tasks, work assignments, shift assignments, vacation and/or day off schedules.

Content: May include, but not limited to weekly schedule sheets, work schedules, appointment logs, and work assignment memos.

Total Retention: 2 years
Disposition: Destroy
Statutory
Reference:

CA GC §34090
Note: None
Approval Date: February 3, 2014
Agenda Item No. 7.2 Agenda Page No. 83 of 279
City Records Management Policy
City of Gilroy | Office of the City Clerk Page 20 of 26 Appendix A - Records Inventory
Conducting a Records Inventory
A records inventory is a systematic process of gathering information for each file folder within an organization.

Conducting a thorough inventory helps in understanding the nature and volume of records held, which in turn aids in making informed decisions regarding their storage, retention, or destruction. This process can significantly optimize storage space, potentially enabling the relocation of lesser-used files to inactive storage and the destruction of records that have met their retention periods, based on the applicable laws and organizational policies. The information collected during the inventory process can be used in various ways in subsequent years, including:
• Locating and tracking old records stored in boxes or inactive storage areas. • Finding misfiled or lost file folders.
• Identifying and correcting inconsistencies in filing systems. • Creating an electronic master index for easy text searches. • Generating destruction lists and box labels.
• Managing the location of records stored off-site.
• Meeting the requirements for an index of records under GCC 17A. • Using in the event of a disaster to locate and protect valuable records. • Updating the retention schedule to ensure comprehensive coverage of all records.

Important Note: ORIGINAL records should not be destroyed until the destruction approval has been signed.

State law allows copies or drafts to be destroyed "when no longer required." Copies and drafts can be destroyed during the inventory process, provided the following conditions are met:
• You are certain the record is a copy or draft and not an original City record. • If the record contains any confidential data (e.g., citizen's names, phone numbers), it must be securely destroyed.

Inventory Worksheet
When conducting a records inventory, it is recommended to use a standardized form to ensure consistency in accounting for the files. This inventory should be conducted at the file level and include the precise location of each record. Use any available information to clearly identify the record's location, such as room names, room numbers, or geographical notations. For record rooms, it's helpful to label file cabinets and drawers. For example:

File cabinet: FC1
Drawers: a, b, c, etc.

Files in file cabinet 1, drawer b would be expressed as: FC1-b.

Agenda Item No. 7.2 Agenda Page No. 84 of 279
City Records Management Policy
City of Gilroy | Office of the City Clerk Page 22 of 26 Agenda Item No. 7.2 Agenda Page No. 85 of 279
City Records Management Policy
City of Gilroy | Office of the City Clerk Page 23 of 26 Appendix B - Box Label
When preparing records for storage in record boxes, it is important to ensure that the boxes are clearly labeled and organized for easy access. The following guidelines should be followed:
• Labels should be applied to the short end of each box for easy review of contents. • Boxes should be filled with records, but not packed so tightly that retrieval or insertion of records becomes difficult.
• A copy of the inventory should be placed inside the box on top of the records.

Sample Box Label:

Department & Division: Box #
Contents
Record Category Description/Note Date Range
Inventoried By (Print Name)/Date: Date Eligible for Destruction:

Example:

Tom Smith 4/5/2015
Date Box Eligible for Destruction: 12/2016
Agenda Item No. 7.2 Agenda Page No. 86 of 279
City Records Management Policy
City of Gilroy | Office of the City Clerk Page 24 of 26 Appendix C – Records Disposition Authorization
Agenda Item No. 7.2 Agenda Page No. 87 of 279
City Records Management Policy
City of Gilroy | Office of the City Clerk Page 25 of 26 Agenda Item No. 7.2 Agenda Page No. 88 of 279
City Records Management Policy
City of Gilroy | Office of the City Clerk Page 26 of 26 Agenda Item No. 7.2 Agenda Page No. 89 of 279

7.3. Removal of Commissioner Kortney Hodge from Parks and Recreation Commission Pursuant to Gilroy City Charter Section 900
Agenda Item No. 7.3 Agenda Page No. 90 of 279

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City of Gilroy

STAFF REPORT
Agenda Item Title: Removal of Commissioner Kortney Hodge from Parks and Recreation Commission Pursuant to Gilroy City
Charter Section 900
Meeting Date: November 6, 2023
From: Jimmy Forbis, City Administrator
Department: City Clerk
Submitted By: Thai Nam Pham, City Clerk
Prepared By: Thai Nam Pham, City Clerk
STRATEGIC PLAN GOALS Not Applicable

RECOMMENDATION
Staff recommends that the Council terminate Commissioner Kortney Hodge's term on the Parks and Recreation Commission effective immediately due to lack of attendance and declare the seat vacant pursuant to Section 900 of the City of Gilroy City Charter.

BACKGROUND
The Gilroy City Council appoints Gilroy Parks and Recreation Commissioners. Section 900 of the Gilroy City Charter stipulates that if a member of a board or commission is absent from three (3) consecutive regular meetings without the board or commission's permission, their office shall become vacant and shall be so declared by the Council.

On October 17, 2023, Commissioner Hodge missed her third consecutive regular meeting, having previously been absent on July 18th and September 19th, with no regular meetings scheduled for August. The Commission did not authorize these absences.

Agenda Item No. 7.3 Agenda Page No. 91 of 279
Removal of Commissioner Kortney Hodge from Parks and Recreation Commission Pursuant to Gilroy City Charter Section 900
City of Gilroy City Council Page 2 of 2 November 6, 2023

NEXT STEPS
Should the Council approve the declaration of vacancy at tonight's City Council Meeting, staff will immediately initiate the recruitment process to fill the vacant Parks and Recreation Commission seat. The newly appointed commissioner will serve a term ending on December 31, 2027, as the current seat expires at the end of this year.

Interviews with potential candidates will be conducted during the City Council Special Meeting on December 11th, with the appointment scheduled to be made at the regular meeting on January 8, 2024.

Agenda Item No. 7.3 Agenda Page No. 92 of 279

7.4. Acceptance of an Assistance to Firefighters Grant in the Amount of $66,583 for the Fire Department
Agenda Item No. 7.4 Agenda Page No. 93 of 279

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City of Gilroy

STAFF REPORT
Agenda Item Title: Acceptance of an Assistance to Firefighters Grant in the Amount of $66,583 for the Fire Department
Meeting Date: November 6, 2023
From: Jimmy Forbis, City Administrator
Department: Fire
Submitted By: Jim Wyatt, Fire Chief
Prepared By: Jennifer Fortino, Management Analyst
STRATEGIC PLAN GOALS Maintain and Improve City Infrastructure

RECOMMENDATION

1. Accept the Assistance to Firefighters Grant for $66,583; and

2. Authorize the City Administrator to execute all grant agreements and related documents.

EXECUTIVE SUMMARY
The Federal Emergency Management Agency (FEMA) released a request for grant applications for the “Assistance to Firefighters Grant” (AFG) Program in January 2023.

The purpose of this grant is to fund critically needed resources to equip and train emergency personnel, enhance efficiencies, and support community resilience. The Gilroy Fire Department (GFD) applied for and received an AFG Program grant in the amount of $66,583 to replace a soon-to-be nonoperational air compressor.

BACKGROUND
The FEMA AFG Program is a FEMA grant program that awards federal funding to eligible state, local, tribal, territorial, non-profits, individuals, and institutions of higher learning. The AFG Program provides direct financial assistance to qualified fire departments, emergency medical service (EMS) organizations, and State Fire Training Academies (SFTAs) to train and equip emergency responders with up-to-date critical life-saving training and equipment.

Agenda Item No. 7.4 Agenda Page No. 94 of 279
Acceptance of an Assistance to Firefighters Grant in the Amount of $66,583 for the Fire Department
City of Gilroy City Council Page 2 of 3 November 6, 2023 In September 2023, GFD was notified that the Department was selected to receive an AFG Program grant in the amount of $66,583 to purchase a new air compressor. Air compressors are vital pieces of equipment that provide air to the Self-Contained Breathing Apparatus (SCBA) equipment that firefighters use while responding to fires and other emergencies.

As a condition of accepting the AFG Program grant, GFD is required to provide a 10% cost share. The Department must also participate in an Environmental and Historic Preservation (EHP) review and obtain City Council approval prior to the final acceptance and purchase of the equipment. Once the Council approves the acceptance of the grant, GFD will have 24 months to complete the equipment purchase.

ANALYSIS
GFD currently has two (2) air compressors for the Department’s four (4) fire stations.

One compressor was bought in 2004 and is still within warranty and meets National Fire Protection Association (NFPA) standards. However, the second compressor was installed in 1986 and is out of warranty, parts for it are obsolete, and it does not meet current NFPA standards. This air compressor is incompatible with newer SCBAs, including the SCBAs GFD is in the process of purchasing.

Additionally, the current California Division of Occupational Safety and Health (better known as CAL OSHA) permit for the 1986 air compressor expires in January 2024. CAL OSHA will no longer certify and permit this compressor after January 2024, thereby rendering the compressor nonoperational. Approval of the grant will allow us to replace the air compressor prior to it becoming nonoperational.

Replacing this air compressor is essential to the health and safety of the Department’s firefighters. The new air compressor provides Carbon Monoxide (CO) and Hydrogen Sulfide (H2S) monitoring with an audible alarm that monitors the air being filled in the SCBAs. The 1986 air compressor does not have this feature, therefore putting the Department’s firefighters at risk of breathing toxic air from their SCBAs while they are fighting fires.

ALTERNATIVES
The City Council may reject the acceptance of the AFG Program grant in the amount of $66,583. However, staff does not recommend this option as it would require the Department to absorb the cost within their existing General Fund budget. Staff would be forced to delay the purchase of other vital emergency response equipment to purchase the air compressor.

FISCAL IMPACT/FUNDING SOURCE
Acceptance of this grant requires a City contribution of $6,658.34 from the current FY24 budget within the Fire Operation Division in the General Fund (1003510).

Agenda Item No. 7.4 Agenda Page No. 95 of 279
Acceptance of an Assistance to Firefighters Grant in the Amount of $66,583 for the Fire Department
City of Gilroy City Council Page 3 of 3 November 6, 2023

NEXT STEPS
Upon Council approval and completing the EHP review, staff will finalize the purchase.

All steps involved in the grant process will be completed within the grant’s 24-month performance period.

Agenda Item No. 7.4 Agenda Page No. 96 of 279

7.5. Approve the Second Amendment to the Agreement with InfoSend, Inc. for Utility Bill Printing, Mailing, and Online Payment Services Agenda Item No. 7.5 Agenda Page No. 97 of 279

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City of Gilroy

STAFF REPORT
Agenda Item Title: Approve the Second Amendment to the Agreement with InfoSend, Inc. for Utility Bill Printing, Mailing, and Online Payment Services
Meeting Date: November 6, 2023
From: Jimmy Forbis, City Administrator
Department: Finance
Submitted By: Harjot Sangha, Finance Director
Prepared By: Harjot Sangha, Finance Director
STRATEGIC PLAN GOALS Develop a Financially Resilient Organization

RECOMMENDATION
Approve the second amendment to the agreement with InfoSend, Inc. (InfoSend).

ANALYSIS
The City of Gilroy currently bills for water and wastewater utility services to approximately 15,000 customers on a monthly basis. While the bills are prepared inhouse by City staff, the printing, mailing, and online bill payment services are provided by a third-party processor, InfoSend.

Of the approximately 15,000 customers, about 9,800 are receiving a printed copy of the regular utility bill via mail each month, with the remainder electing to receive their bill via email. In addition, InfoSend also prints and mails approximately 3,000 of final, delinquent, or shut-off notices each month. The City expends approximately $93,000 annually on print and mail services with InfoSend. No changes are recommended to the print and mail services scope with this amendment.

Approximately 10,800 customers, or about 72% of the 15,000 total customers, are enrolled in the City’s online portal hosted by InfoSend. Approximately 9,600 customers, or about 64% of the 15,000 total customers, are currently utilizing the City‘s online portal Agenda Item No. 7.5 Agenda Page No. 98 of 279
Approve the Second Amendment to the Agreement with InfoSend, Inc. for Utility Bill Printing, Mailing, and Online Payment Services
City of Gilroy City Council Page 2 of 3 November 6, 2023 to make utility bill payments on a monthly basis, with the remainder utilizing their personal bank‘s BillPay feature, mailing checks, or making in-person cash or check payments. In total, the City annually expends approximately $153,000 for online utility payment services, including portal management, credit card interchange, and processor fees.

In 2020, the City Council directed staff to pass the payment (credit card and echeck/ACH) processing fees on to the customers who utilize the services. This change was instituted to address the inequity created when the City absorbs the fees for a customer paying a fee (or tax in the case of business license or transient occupancy tax) via debit/credit card vs. a customer paying the same fee via cash or check. The use of debit/credit cards as a payment method has increased significantly over the years, and passing such transaction fees on to the users of the service is now standard practice in the industry. The City has been absorbing these fees, and implementing the new fee model had to be deferred until both the City’s Enterprise Resource Planning ERP) and Land Management Systems (LMS) were live and operational. Both systems have been fully implemented, and the City transitioned to the new fee model for nonutility payments in August 2023 and is now ready to transition the utility payments to the new model as well. An amendment to the agreement with InfoSend is necessary to transition to the new fee model for online utility payments. Under the new fee model, all credit card transactions will be assessed a 2.9% fee, and e-check transactions will be assessed a $1.00 fee. The utility credit card payment fee is the same as currently being assessed for non-utility payments. The fee for e-check for utility payments is slightly lower than currently assessed for non-utility e-check payments by $0.50. By transitioning to this new model, the costs of online utility payment services will be borne by users, and the City will no longer absorb the fees for the online payment services.

The fees will be assessed and collected by InfoSend and their merchant processor. The City will not retain any portion of these fees. Payments can continue to be made by cash or check without a fee.

Staff recommends the transition be made in January 2024 to allow adequate time for notification to the utility customers of the change, especially those that are enrolled in autopay, and provide an opportunity for customers to switch from their current credit card option to the cheaper e-check option if they wish to do so. There will be no impact on the customers enrolled in auto-pay other than they will see a fee added based on their selected auto-pay payment method (credit card or e-check). The communication will begin with mailing the November bill statements and via the City’s existing communication channels, including Email Express, social media, etc.

ALTERNATIVES
The City Council could elect not to approve the second amendment to the agreement with InfoSend. This would be inconsistent with the previous direction and the current fee model for non-utility payments made via credit cards and e-check/ACH methods. Staff does not recommend this option.

Agenda Item No. 7.5 Agenda Page No. 99 of 279
Approve the Second Amendment to the Agreement with InfoSend, Inc. for Utility Bill Printing, Mailing, and Online Payment Services
City of Gilroy City Council Page 3 of 3 November 6, 2023

FISCAL IMPACT/FUNDING SOURCE
The online payment fee model change will reduce the City’s expenditures by an estimated $153,000 annually as the City will no longer absorb the related costs. The InfoSend services are funded by the Water Fund (705) and the Wastewater Fund (700).

PUBLIC OUTREACH
Pending Council approval, staff will notify all utility customers and plan for a transition in January 2024. The communication will begin with mailing the upcoming November bill statements and via the City’s existing communication channels, including Email Express, social media, etc.

Attachments:

1. Second Amendment to the Agreement

2. First Amendment to the Agreement

3. Original Agreement
Agenda Item No. 7.5 Agenda Page No. 100 of 279
1- 4845- 8215- 5540v1
MDOLINGER\ 04706083

SECOND AMENDMENT TO THE AGREEMENT FOR SERVICES BETWEEN THE CITY OF GILROY AND INFOSEND, INC.

WHEREAS, the City of Gilroy, a municipal corporation (“ City”), and InfoSend, Inc.

CONTRACTOR”) entered into that certain agreement entitled Agreement for Services, effective on March 1, 2012, hereinafter referred to as “ Original Agreement”; and entered into that certain First Amendment to the Agreement for Services made as of April 8, 2019, and WHEREAS, City and Infosend, 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 on March 1, 2012, and will continue in effect through December 31, 2025, with automatic subsequent “ Renewal Periods” of 12 months 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 CONTRACTOR, CITY agrees to pay CONTRACTOR the amounts set for in Exhibit “ D” (“ Payment Schedule”). Compensation and rates outlined in Exhibit “D” pertain to monthly service fees and professional fees.”

3. Exhibit B (“ Scope of Services”) of the Original Agreement is hereby replaced with the attached Exhibit B.

4. Exhibit D (“ Payment Schedule”) of the Original Agreement is hereby replaced with the attached Exhibit D.

5. This Second Amendment to the Agreement for Services is entered into as of November 6, 2023, and shall be effective January 1, 2024.

Except as expressly modified herein, all of the provisions of the Original Agreement and the First Amendment shall remain in full force and effect. In the case of any inconsistencies between the Original Agreement or the First Amendment 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.

DocuSign Envelope ID: A394D5CD- 2B5D- 49C6-B67F-EBC2B0A16898 Agenda Item No. 7.5 Agenda Page No. 101 of 279
2- 4845- 8215- 5540v1
MDOLINGER\ 04706083

CITY OF GILROY CONTRACTOR
By: By:
signature] [ signature]
Jimmy Forbis Roxana Weil
employee name] [ name]
City Administrator Executive Vice President
title/department] [ title]
Date: Date:

Approved as to Form ATTEST:

City Attorney City Clerk
DocuSign Envelope ID: A394D5CD- 2B5D- 49C6-B67F-EBC2B0A16898 10/ 30/ 2023
Agenda Item No. 7.5 Agenda Page No. 102 of 279
EXHIBIT B”

SCOPE OF SERVICES
This Exhibit B provides the Scope of Services which CONTRACTOR referred to herein as InfoSend”), shall deliver to CITY to permit the Users to use the products and services to view and pay their bills under this Agreement. The Scope of Services include both Primary Services and Professional Services as described and subject to the limitations herein. To the extent that any term is not expressly defined herein, it shall have the meaning set forth in the Agreement.

I. INFOSEND’ S PRIMARY SERVICES UNDER THIS AGREEMENT
Data Processing, Printing and Mailing Service DPPM Service”): During the term of this Agreement, InfoSend will provide data processing, printing and mailing services. The Service consists of processing data, printing documents, mail preparation, applying postage where applicable) and sending via the United States Postal Service. Document types include but are not limited to bills, postcards and letters. eBusiness Services the eBusiness Services”): During the term of this Agreement InfoSend will provide eBusiness Services. These services can include presenting bills online and/ or accepting and reporting payment transaction information to facilitate ACH and/ or credit card payments via web, Interactive Voice Response IVR), SMS, or Bank Billpay e Lockbox).

Section 1. Data Processing, Printing and Mailing DPPM) Service Description A. Data Transfer and Processing
CITY to transmit data to InfoSend in an agreed upon format. Should CITY make changes to data file format after initial setup is complete, it agrees to pay for the professional services required to accommodate the new file format. See Exhibit C Professional Services for information on initial setup and ongoing programming changes.

CITY will monitor transfer confirmation emails to ensure InfoSend is in receipt of the data. CITY acknowledges that InfoSend will not be responsible or liable for any transferred data which does not result in a confirmation receipt to CITY.

A File Transfer Report will be emailed to the CITY representatives who have opted in to this email. A copy of this report is also available to download from the InfoSend website.

CITY will have access to an online Job Tracking application that shows the progress of each file as it is processed and becomes a batch of documents to be printed and mailed. CITY can see both the original input file name and the InfoSend assigned Job Code”.

InfoSend will process the mailing addresses and perform the following functions:
o Apply CASS certified address validation
o Comply with USPS requirements to obtain pre sort automation rates for qualified CITY mail pieces o Stay current with all USPS regulations required to mail presorted first class mail InfoSend will optionally provide proofs of the final print ready PDF files to CITY to be reviewed and approved before printing begins if requested).

B. Document Printing and Mailing
Batches are printed by InfoSend using a high speed production process onto the agreed upon forms.

Printed documents are put through a quality control process and then released to the mailing department to be inserted into outgoing envelope. A return envelope and any applicable inserts are included as defined by CITY workflow.

After a batch of mail is completed in InfoSend’ s system it will be marked as such in the online Job Tracker and a Process Confirmation Report will be emailed to the CITY representatives who have opted in to this email. A copy of this report is also available to download from the InfoSend website.

Section 2. eBusiness Service Description
A. General System Description
Mobile Ready Customer Engagement: all products are mobile compatible out of the box, with no app store downloads required of customers. Powered by InfoSend' s CCM platform, customer specific messaging and payment reminders are delivered electronically.

DocuSign Envelope ID: A394D5CD- 2B5D- 49C6-B67F-EBC2B0A16898 Agenda Item No. 7.5 Agenda Page No. 103 of 279
Multi Channel Payment Collection: InfoSend' s payment platform will consolidate web, telephone, SMS, CSR, in person EMV and bank payments into a single lockbox file.

One Time and Automatic Payments: allow customers to quickly make a one time payment, as well as sign up to have their payment account auto debited with each billing cycle.

Bill Notification and Presentment: notify customers via email when a new bill is available, and securely deliver exact replica of printed document to customers inbox.

Interactive Voice Response IVR): accept customer payments via automated phone service with InfoSend hosted phone number, enabling CITY phone systems to redirect customers with ease.

SMS Text to Pay: enrolled customers may opt in to receive text notifications of new bills, and reply to have the registered payment method drafted for the amount due, speeding up the time to payment.

Bank Payments MasterCard RPPS): InfoSend can collect payments made via the customer bank and include them within the lockbox file.

PCI Compliant Cloud Based Solution: electronic billing and payment related products hosted in the cloud by InfoSend in a secure PCI Level 1 compliant environment.

B. Data Transfer and Processing
CITY to transmit data to InfoSend in an agreed upon format, using the Data Transfer and Processing workflow described in Section 1.

CITY acknowledges that InfoSend will not be responsible or liable for any transferred data which does not result in a confirmation receipt to CITY.

If the CITY is not using InfoSend’ s DPPM Service, USPS address workflow will not be applied.

Data loaded into the eBusiness system is used to facilitate accurate payments via Web, IVR, SMS or Bank BillPay.

C. Customer Enrollment and Bill Notification
Data loaded into the system will be used to facilitate customer enrollment, using two pieces of information specific to the customer bill.

For enrolled customers, system will send a notification of the new bill available via email.

For enrolled customers who have opted in, system will send an SMS alert.

For customers using the IVR system, bill information will be dictated by text to voice.

For customers paying via Bank BillPay, the account number can be validated by the system prior to accepting payment.

The system is configured to display a PDF replica of the bill image.

D. Customer Payment and Reporting
Customers can make payment via Web, SMS, IVR or Bank BillPay, depending on channels which CITY has requested InfoSend setup.

Payments can be configured to allow Users to pay by bank account and/ or credit/ debit card.

All payments will be reported in a standard daily lockbox” file.

II. INFOSEND’ S PROFESSIONAL SERVICES UNDER THIS AGREEMENT InfoSend’ s Professional Services are the technical services that are required to perform the initial setup of InfoSend’ s Primary Services as described herein in this Exhibit B and the technical services required to make changes to these Primary Services after the initial setup is complete. Once any Primary Service is live and operational Professional Services will not be required unless CITY requests a change or makes changes to its data file format or business rules which necessitates a change to InfoSend’ s system configuration or programming. Examples of InfoSend Professional Services:

Project requirements gathering and analysis hours
Project management and/ or consulting hours
Software development and system configuration hours related to the processing of CITY’ s data Software development and system configuration hours related to document design, web portal setup, business rule configuration, or any other applicable technical services Application testing and deployment hours
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EXHIBIT D”

PAYMENT SCHEDULE
This Exhibit D provides the Fees which InfoSend shall bill to CITY in exchange for Services and explanation for fees which CONTRACTOR referred to herein as InfoSend”) will bill to CITY in exchange for the services provided under this Agreement. To the extent that any term is not expressly defined herein, it shall have the meaning set forth in the Agreement.

InfoSend will invoice CITY monthly and CITY will pay InfoSend the fees for Primary Services and Professional Services, as needed, described and/ or computed herein the Fees”). CITY’ s payment of these invoices is due upon receipt in U.S. dollars and shall be paid NET 30 unless otherwise expressly agreed to by CONTRACTOR. Should CITY dispute any invoices, it must do so within ninety 90) days of the invoice date.

Section 1. Price Escalations to InfoSend Fees
InfoSend reserves the right to increase InfoSend Fees on an annual basis starting with the first anniversary of the Effective Date to account for increases in the cost of materials, labor, and other overhead. The CITY will be notified, in writing, at least thirty 30) days prior to such price increase. An amendment to the Agreement will not be required if the Fees are changed, unless other terms or conditions of the Agreement have changed. Postage fees can change at any time per USPS regulations and do not require an amendment to the Agreement.

Additionally, if CITY uses DPPM Services, InfoSend reserves the right to increase paper, form, and envelope fees as needed, with thirty 30) days’ written notice to CITY, in the event of extraordinary increases to the cost of paper.

InfoSend pricing is predicated on CITY representations of CITY and CITY User transactional usage. Should CITY’ s actual continuous volume and/ or recurring frequency deviate by more than thirty percent 30%) from what CITY has represented to InfoSend in Section 2 below, then InfoSend reserves the right to invalidate the Fees listed in this Agreement. Should this situation arise then InfoSend will notify CITY immediately and negotiate with CITY in good faith to pass on any increased costs to CITY, in accordance with actual CITY and CITY User transactional usage. Should InfoSend and CITY fail to agree upon updated Fees, InfoSend reserves the right to terminate this Agreement with one hundred and eighty 180) days’ notice.

Section 2. CITY Representations
CITY Volume Assumptions
Customers Contacted or Billed Monthly
Printed – approx. 12,200 monthly
Electronic – approx. 10,800 enrolled users
ACH payments per month: average 4500
Average ACH payment: $ 130.00
CC payments per month: average 5100
Average CC payment: $ 145.00
Section 3. DPPM Fees:

Printing and Mailing Service
Data Processing, Printing Mailing Fee per page with up to 4/ 1 ink 0.0654 USPS Postage Pass through
A postage deposit will be required prior to starting service.

Print Color Options colors per side) 0.0704 for 4/4 printing Excess Pages Handwork Surcharge per mail piece) 0.35
Address Updates per hit” address that gets updated) 0.40 NCOA

0.40 ACS
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Prices assume normal ink/toner coverage for business documents. Flood coating the entire page in color or other types of extremely high coverage designs may cost more or not be technically feasible. Extremely high coverage designs can cause content to bleed through to the other side of the page or to cause the page to curl too much to work properly with high speed mail inserting equipment.

Materials
Standard 8.5” x 11” Paper Stock per sheet) 0.0329
Standard Double Window Outgoing 10 Envelope 0.0296
Standard Single Window Return 9 Envelope 0.0253
Outgoing Flat Envelope used for mail pieces with excess pages 0.19 Insert Services
InfoSend Produced Quoted based on specification
Envelope Messaging Snipes) Quoted based on specification Electronic Inserts 0.01 per insert
Inserting Fee
Fee to insert an InfoSend produced or CITY provided marketing or informational insert. CITY provided drop shipped) inserts must be professionally packaged and ready for usage. If folding is required then additional fees apply based on folding requirements. Minimum fee is 0.01 per insert for folding. If inserts are not professionally packaged and damaged in shipment or require additional labor to prepare for inserting then additional fees can apply.

Per item fee assumes the insert will be included in all mail pieces. Selective inserting is available but requirements must be reviewed on a case by case basis to determine if additional fees will apply for setup and handling.

0.01 per insert
Optional Document Services
Professional Services Rate per hour) 150.00
Returned Mail Handling 0.45 per reported returned mail piece Remit Tracking 100 monthly support fee
Section 3.1. Custom Forms/ Envelopes
If CITY has selected the Printing and Mailing Service and at any time requests that InfoSend Fees include the cost of custom CITY specific materials either in this Agreement or since its execution), then CITY understands and accepts that these materials will be purchased in bulk to achieve the lowest possible per unit cost. CITY agrees to purchase any remaining supplies of requested custom materials normally forms or envelopes) if CITY stops using InfoSend’ s Service for any reason. CITY agrees to purchase the remaining supply of custom forms/ envelopes upon CITY’ s request to change the custom forms/ envelopes before the supply has been depleted.

Section 3.2. USPS Postage Rates
Postage rates are determined by the United States Postal Service. All postage rate changes are determined directly by USPS and are independent of any InfoSend service or materials fees. In no event shall any change in the postage rates affect the InfoSend service or materials fees. The CITY will be invoiced the amount of excess for overweight and foreign mail.

Section 3.3. Postage Deposit
InfoSend purchases the postage needed to mail CITY documents on the day of mailing. The postage charges are later invoiced to CITY based on the CITY’ s payment terms. InfoSend requires CITY to submit a postage deposit prior to the first mailing to facilitate the payment terms. This amount will remain in deposit for the duration of the Agreement. Upon Agreement expiration or termination CITY must pay in full any outstanding invoices from InfoSend for payables created under this Agreement; the postage deposit will be refunded within fifteen 15) days of the date that the last open invoice is paid.

The postage deposit amount is calculated by multiplying the estimated number of mail pieces per month by the current 5 Digit pre sorted first class postage rate.

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The postage deposit is subject to ongoing review and may be adjusted at any time to account for changes to CITY average mailing volume or changes to USPS postage rates with at least thirty 30) days’ written notice to CITY. The current postage deposit on hand is 10,010.

Section 4. eBusiness Service Fees
Multi Channel Payments
Bank Account ACH) 1.00 customer service fee
Credit Card CC) 2.9% customer service fee
Above fees cover payment initiation through all channels hosted by InfoSend. All Payment Processing fees will be assessed by a registered ISO of TSYS and included in a merchant statement. All pricing is based on CITY Volume Assumptions” listed and excludes applicable sales tax.

InfoSend reserves the right to revise pricing at ANY time due to increase in average ticket amount, or if the credit card issuing companies raise interchange fees beyond what they are today. If the average payment processing fees for your customer base goes above 2.9%, then the fee charged to your customers will need to be immediately increased.

InfoSend is not responsible for either of the above scenarios having to change due to credit card issuer rules and regulations. In this case, InfoSend will negotiate a new pricing configuration in good faith to ensure compliance with credit card rules and regulations.

Online BillPay Platform
Online BillPay Setup Fee Already Live
Monthly Maintenance 0.00
eBill Load Fee 0.00
Per Enrolled Customer Fee 0.00
Section 5. CITY Go Live and Fees
InfoSend will provide CITY with a Demo instance of the System to approve configuration and simulation of Services. Upon CITY approval of the Demo instance of the System and sample outputs from Services, InfoSend will create a copy of Demo System in Production for completion of final User Acceptance Testing UAT). CITY will be given the UAT Period to complete internal testing prior to initiating Go Live. All Setup and recurring Monthly Fees will become due upon the sooner of a) CITY Go Live with the application or b) 60 days from InfoSend delivery of Production System for UAT.

Section 6. Professional Services Fee and Process for Approval and Payment of Fee The current Professional Services Fee is 150.00 per hour. InfoSend Professional Services Fees can be adjusted once every twelve 12) months to account for increases to the cost of providing these services. InfoSend reserves the right to increase Professional Services Fees on an annual basis, starting with the first anniversary of the Agreement date, if needed. The CITY will be notified, in writing, at least thirty 30) days prior to such price increase. An amendment to the Agreement will not be required if the Professional Services Fees are changed, unless the terms or conditions of the Agreement have changed.

In the event that a project will incur billable Professional Services hours, CITY will be informed before work begins. InfoSend and CITY will execute a Statement of Work for the project that CITY wants InfoSend to undertake. The payment terms for the project depend on the size and scope of the project. The Statement of Work can include payment terms that are different than the terms listed in this Agreement for InfoSend Fees, otherwise these terms will apply and the project fees will be invoiced upon project completion. Small projects that incur less than five 5) hours of Professional Services can be initiated without a Statement of Work if CITY accepts and executes a Programming Quote for this work.

Any project that will take more than five 5) hours of Professional Services work will require both parties to execute a formal Statement of Work. Depending on the nature of the work required, InfoSend will provide one of the following quotation methods:

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Any project that will take more than five 5) hours of Professional Services work will require both parties to execute a formal Statement of Work. Depending on the nature of the work required, InfoSend will provide one of the following quotation methods:

Fixed Quote a fixed project cost will be set. InfoSend may elect to waive this cost in some circumstances. CITY understands and accepts that it must accept the terms and conditions of the Statement of Work for the project and that changes made to the project requirements, data file structure, etc., after the Statement of Work and any amendments to it have been finalized will require CITY to pay for these changes on a Time and Materials basis. CITY will be notified immediately if this scenario arises and will be given an option to keep the original project specifications to keep the fixed quote in place.

Time and Materials Quote should it not be possible to provide a fixed quote due to the nature of a CITY’ s requested project, then InfoSend will provide an estimated number of hours to complete the project and bill the hours on a Time and Materials basis. The Statement of Work will include the terms and conditions for these project types and CITY will be invoiced weekly for the hours spent on the project.

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FIRST AMENDMENT TO THE AGREEMENT FOR SERVICES BETWEEN THE CITY OF GILROY AND INFOSEND, INC.

This First Amendment to the Agreement for Services (" First Amendment") is made and entered into as of lri l , 2019 (" Effective Date"), by and between the City of Gilroy, a California municipal corporation (" CITY"), and InfoSend, Inc. (" CONTRACTOR").

RECITALS
WHEREAS, CITY and CONTRACTOR are parties to that certain Agreement for Services, effective on March 1, 2012, hereinafter referred to as " Original Agreement"; and WHEREAS, CITY and CONTRACTOR have determined it is in their mutual interest to amend certain terms of the Original Agreement.

NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth below and for other valuable consideration, the receipt and adequacy of which is hereby acknowledged, the parties hereto 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 on March 1, 2012 and will continue in effect through January 2, 2022, with automatic subsequent " Renewal Periods" of 12 months unless terminated in accordance with the provisions ofArticle 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 CONTRACTOR, CITY agrees to pay CONTRACTOR the amounts set forth in Exhibit " D" (" Payment Schedule"). In no event however shall the total compensation paid to CONTRACTOR exceed $ 3, 499. 00. Additional compensation as outlined in Exhibit " D" pertains to monthly service fees and professional fees which will not exceed the stated amounts provided."

3. The third sentence in Article 4, Section (" Consideration") of the Original Agreement shall be amended to read as follows:

If CITY objects to all or any portion of any invoice, CITY shall notify CONTRACTOR of the objection within ninety ( 90) days from receipt of the invoice, give reasons for the objection, and pay that portion of the invoice not in dispute."

4. The first paragraph (" Professional Liability") of Article 5, Section C (" Indemnification of Liability, Duty to Defend") of the Original Agreement shall be amended to add the following language:

CONTRACTOR shall not be responsible for actions, omissions or delays in services provided pursuant to this Agreement, resulting from erroneous, late or incomplete data and/ or instructions from CITY. No damages shall be assessed against CONTRACTOR when any delay or breach on CONTRACTOR' s part is caused by failure of CITY to perform responsibilities to any third parties related to this Agreement or any other reason beyond the 4826- 2838- 1836v1
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control of CONTRACTOR, including, without limitation, failures or limitations on the availability of third -party telecommunications or other transmission facilities.

This Article 5. 0 states the entire liability of CONTRACTOR with respect to infringement by any deliverable of CONTRACTOR or resulting from the performance of services under this Agreement by CONTRACTOR."

5. The second paragraph (" Other Liability") of Article 5, Section C (" Indemnification of Liability, Duty to Defend") of the Original Agreement shall be removed in its entirety and hereby replaced with the following language:

As to all other liability, to the fullest extent permitted by law, CONTRACTOR shall defend, indemnify, and hold harmless, through counsel approved by CITY (which approval will not be unreasonably withheld), CITY, its officers, officials, representatives, agents, employees, and volunteers, against any and all suits, damages, costs, fees, claims, demands, causes of action, losses, liabilities, and expenses, including attorneys' fees, that arise out of, pertain to, or relate to any alleged or actual acts, errors, omissions, or willful misconduct of CONTRACTOR or CONTRACTOR' s officers, assistants, subcontractors, employees, or agents in connection with performance of CONTRACTOR' s obligations under this Agreement other than those arising from or related to the services to be performed under this Agreement, including all claims related to the injury or death of any person, or damage to any property, however caused, regardless of any negligence ofCITY, except that CITY shall indemnify CONTRACTOR against any and all suits, damages, costs, fees, claims, demands, causes of action, losses, liabilities, and expenses, including attorneys' fees, that arise out of, pertain to, or relate to the sole or active negligence of CITY, its officers, officials, representatives, agents, employees, or volunteers, related to the CITY' s transmittal of any authorized transaction or file through or CITY' s misuse of CONTRACTOR' s system or services provided under this Agreement."

6. Article 5, Section C (" Indemnification of Liability, Duty to Defend") of the Original Agreement shall be amended to add a third paragraph containing the following language:
3) Limitation of Liability
In no event shall either party be liable to the other for any indirect, punitive, special, exemplary, incidental, consequential ( including loss of data, revenue, profits, use or other economic advantage) arising out of, or in any way connected with the services to be provided under this Agreement, even if the party from which damages are being sought have been previously advised of the possibility of such damages.

CONTRACTOR' s aggregate liability shall not exceed the amounts actually paid by and/ or due from CITY in the ninety ( 90) day period immediately preceding the event giving rise to such claim."

7. Article 6 (" Obligations of City") of the Original Agreement shall be amended to add Section C containing the following language:

C. Compliance with the Law
CITY represents and warrants that it has the legal power and authority to enter into this Agreement. CITY further warrants that it will comply with all laws, regulations, and 4826- 2838- 1836v1
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compliance requirements applicable to CITY' s and CITY' s utilities customers ( the " Users") activities covered by this Agreement."

8. Article 7, Section C (" Termination for Failure to Make Agreed - Upon Payments") of the Original Agreement shall be amended to add the following language:

CITY' s failure to pay any undisputed invoices within ninety ( 90) days of the date due may constitute such default under this Agreement."

9. Article 7 (" Termination ofAgreement") of the Original Agreement shall be amended to add Section E containing the following language:

E. Force Majerure
Neither party shall be liable, or deemed to be in default, to the other for any failure or delay in performing an obligation under this Agreement to the extent that its performance is delayed, impaired or rendered impossible by an event beyond its control, such as natural disasters, war, terrorist acts, riots, labor strikes, civil disturbances, extra -ordinary losses of utilities ( including telecommunications services), completer " hacker" attacks on Internet infrastructure, regulatory restrictions, change in law or regulation or other acts of government authority, including civil and military authorities and courts, fuel or energy shortages, transportation stoppages or slowdowns, the inability to procure parts or raw materials, and/ or acts or omissions of common carrier. These causes will not excuse CITY from paying accrued payables due to CONTRACTOR through any available lawful means acceptable to CONTRACTOR."

10. Article 8 (" General Provisions") of the Original Agreement shall be amended to add Section M containing the following language:

M. Exhibits Incorporated
All exhibits referred to in this Agreement and attached to it are hereby incorporated by reference. In the event there is a conflict between the terms of this Agreement and any of the terms of any exhibit to this Agreement, the terms of this Agreement shall control.

11. Article 8 (" General Provisions") of the Original Agreement shall be amended to add Section N containing the following language:

N. Survival Clause
All of the terms of this Agreement which by their nature extend beyond the expiration or termination of the Agreement, including but not limited to indemnification obligations, confidentiality obligations and limitations ofliability, shall survive expiration or termination of the Agreement and remain in full force and effect."

12. Exhibit " A" (" Specific Provisions") of the Original Agreement shall be removed in its entirety and hereby replaced with the attached Exhibit " A".

13. Exhibit " B" (" Scope of Services") ofthe Original Agreement shall be removed in its entirety and hereby replaced with the attached Exhibit " B".
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14. Exhibit " C" (" Milestone Schedule") of the Original Agreement shall be removed in its entirety and hereby replaced with the attached Exhibit " C".

15. Exhibit "D" (" Payment Schedule") ofthe Original Agreement shall be removed in its entirety and hereby replaced with the attached Exhibit " D".

16. 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.

17. 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 First Amendment to be executed as of the dates set forth beside their signatures below.

CITY: CONTRACTOR:

CITY OF GILROY INFOSEND, INC.

By: By:

VViA14Title: r - LA 1
6 f Social
Security
or Taxpayer Identification Number:
31 Date: Date:
i ' 11 s MIN
Approve
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By: City
Attorney ..,
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EXHIBIT A

SPECIFIC PROVISIONS
I. PROJECT MANAGER
CONTRACTOR 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, CONTRACTOR agrees to assign its Director of CITY Services 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, CONTRACTOR 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
CONTRACTOR shall commence the Services upon CITY' S delivery to CONTRACTOR a written " Notice to Proceed." The Notice to Proceed shall be in the form of a written communication from designated CITY contact person( s). The Notice to Proceed may be in the form of e- mail, fax or letter authorizing commencement of the Services. For purposes of this Agreement, Carmen Medrano will be the designated CITY contact person( s). The Notice to Proceed shall be deemed to have been delivered upon actual receipt by CONTRACTOR or if otherwise delivered as provided in the Section V.H. (" Notices") of this Exhibit A.

B. COMPLETION OF SERVICES
When CITY determines that CONTRACTOR has completed all of the Services in accordance with the terms of this Agreement, CITY shall give CONTRACTOR a written Notice of Final Acceptance, and CONTRACTOR shall not incur any further costs hereunder. CONTRACTOR may request this Notice of Final Acceptance when, in its opinion, it has completed all of the Services as required by the terms of this Agreement and, if so requested, CITY will make a determination of completion within two ( 2) weeks of such request, or if CITY determines that CONTRACTOR has not completed all of such Services as required by this Agreement, CITY will so inform CONTRACTOR within this two ( 2) week period.

III. PAYMENT OF FEES AND DIRECT EXPENSES
Payments shall be made to CONTRACTOR as provided for in Article 4 of this Agreement.

Direct expenses are charges and fees not included in Exhibit B. CITY will only be obligated to pay for those direct expenses that have been previously approved in writing by CITY.

CONTRACTOR will obtain written approval from CITY prior to incurring or billing for direct expenses.
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Copies of pertinent financial records, including invoices, will be included with the submission of billing( s) for all direct expenses.

The recurring nature of CONTRACTOR' s Services result in a rapid rise in financial loss to CONTRACTOR if CITY' s accounts payable process is delayed, particularly when CONTRACTOR is invoicing CITY for postage charges. Therefore, in the event that undisputed invoices remain unpaid for over sixty ( 60) days from due date, unless otherwise expressly agreed to by CONTRACTOR in writing, CONTRACTOR reserves the right to suspend Services until payments are brought current. CONTRACTOR' s accounting staff monitors CITY debt regularly, and will notify CITY in writing before Services are suspended. Should a hold be instated, it will immediately be removed once payment is received.

CONTRACTOR may elect to charge CITY interest on all undisputed invoices that remain unpaid for over sixty ( 60) days from due date at a rate of 1. 5% per month, and any collection costs incurred by CONTRACTOR ( including attorneys' fees).

IV. — OTHER PROVISIONS
A. STANDARD OF WORKMANSHIP
CONTRACTOR 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 CONTRACTOR' S representations and warranties regarding its skills, qualifications and licenses. CONTRACTOR shall perform all 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 will 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 will be that used by CITY for similar purposes.

CONTRACTOR represents and warrants that the Services will materially perform the functions that the CITY has selected under normal use and circumstances and that CONTRACTOR shall use commercially reasonable measures to protect CITY' s data in accordance with Section V.D. of this Exhibit " A" to the extent that it retains such data in the operation of the Services.

Provided that CITY gives CONTRACTOR written notice of failure to meet the foregoing warranty within sixty ( 60) days following delivery of any Services, or as otherwise specified in a Statement of Work (" SOW"), CONTRACTOR warrants that it will use commercially reasonable efforts to correct any Services that fail to comply with the foregoing warranty. If there is no notice by CITY within sixty ( 60) days following delivery of any Services, or as otherwise specified in a SOW it shall be deemed that CITY has accepted the Services.

Except as expressly set forth above, CONTRACTOR disclaims all other representations or warranties, express or implied, made to CITY or any other party, including without limitation, any warranties regarding quality, suitability, merchantability, fitness, for a particular purpose or 4833- 5278- 6061 v2
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otherwise of any services or any good provided incidental to the Services provided under this Agreement, to the extent permitted by applicable law.

CONTRACTOR and its licensors and payment processors do not represent or warrant that (i) the use of the Services will be uninterrupted or error -free, or operate in combination with any other hardware, software, system or data; or ( ii) the Services will not delay in processing or paying.

Service may be subject to the limitations, delays, and other problems inherent in the use of the Internet and electronic communications. CONTRACTOR is not responsible for any delays, delivery failures, or other damage resulting from such problems." B. RESPONSIBILITY OF CONTRACTOR
CONTRACTOR shall be responsible for the professional quality, technical accuracy, and the coordination of the Services furnished by it under this Agreement. CONTRACTOR 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 CONTRACTOR shall be and remain liable to CITY in accordance with applicable law for all damages to CITY caused by CONTRACTOR' S negligent performance of any of the services furnished under this Agreement.

C. RIGHT OF CITY TO INSPECT RECORDS OF CONTRACTOR
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 CONTRACTOR for the purpose of verifying any and all charges made by CONTRACTOR in connection with this Agreement. CONTRACTOR shall maintain for a minimum period of three ( 3) years ( from the date of final payment to CONTRACTOR), 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 CONTRACTOR, all of which shall be made available to CITY at the CITY' s offices within five ( 5) business days after CITY' s request.

D. PRIVACY AND SECURITY
1) 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 CONTRACTOR and all other written and oral information developed or received by or for CONTRACTOR and all other written and oral information submitted to CONTRACTOR in connection with the performance of this Agreement shall be held confidential by CONTRACTOR 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 CONTRACTOR which is otherwise known to CONTRACTOR or is or becomes generally known to the related industry ( other than that which becomes generally known as the result of CONTRACTOR' S disclosure thereof) will be deemed confidential. CONTRACTOR shall not 4833- 5278- 6061v2
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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.

To the fullest extent permitted by law, including without limitation the California Public Records Act ( Gov' t Code § 6250 et seq.), CITY shall not disclose to any third party or use for any purpose inconsistent with this Agreement any confidential or proprietary non-public information it obtains during the term of this Agreement about CONTRACTOR' s business, operations, financial condition, technology, systems, products, services, suppliers, CITYs or prospective CITYs, marketing data, plans, pricing, and models, or personnel, unless required by applicable law. CITY will ensure that its employees and agents similarly abide by the requirements hereof.

CITY will immediately notify CONTRACTOR upon becoming aware of any such violation by such employees or authorized representatives.
2) REGULATORY COMPLIANCE
CONTRACTOR will maintain compliance with required Payment Card Industry ( PCI) Data Security Standards and Cardholder Information Security Standards, applicable rules and regulations of the Health Insurance Portability and Accountability Act (HIPAA), and applicable sections of the Gramm -Leach -Bliley Act of 1999.
3) DATA AND HUMAN RESOURCES SECURITY
CONTRACTOR takes great care in both data and human resources security. CONTRACTOR' s company policy requires all new employees to pass a background check and a drug -screening test, both performed by outside companies. These practices will remain in place for the duration of the Term of this Agreement.

E. NO PLEDGING OF CITY' S CREDIT
Under no circumstances shall CONTRACTOR have the authority or power to pledge the credit of CITY or incur any obligation in the name of CITY.

F. PROPRIETARY RIGHTS
1) LICENSE GRANT AND RESTRICTIONS BY CONTRACTOR
CONTRACTOR agrees to provide to CITY the right to use software and the provision of Services, but in all cases only in full and complete compliance with all of the terms and conditions of this Agreement. Subject to the terms of this Agreement, CONTRACTOR hereby grants, and CITY hereby accepts, for the Term of this Agreement, as provided in Article 1 of this Agreement, a non-exclusive, non -transferable license to access and use and to permit the Users to access and use CONTRACTOR' s system provided under this Agreement ( the " System") via the Internet.

City hereby agrees not to: ( i) reproduce, download, modify, create derivative works from, distribute, or attempt to reverse engineer, decompile, disassemble, or access the source or object code for, the System; ( ii) use the System, or any component thereof, in any manner contrary to 4833- 5278- 6061 v2
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applicable laws or government regulations; or ( iii) otherwise affect, attempt to enable the authorized use ( with or without User ID and/ or password) of the System. 2) OWNERSHIP OF MATERIAL BY CITY
Subject to Subsection ( 1) of Section V.F. of this Exhibit " A", all material including, without limitation, non -source or data code computer information, 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 CONTRACTOR 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 Services rendered under this Agreement. However, CONTRACTOR will not be responsible for, and CITY will indemnify CONTRACTOR from, damages resulting from the use of said material for work other than for the Services, including, l hout limitation, the release of this material to third parties for `,aork other than oli the Services rendered under this Agreement, in accordance with Article 5. C. of this Agreement.

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 will have any claim or right of action hereunder for any cause whatsoever.

H. NOTICES
Notices are to be sent as follows:

CITY: v®
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City of Gilroy
7351 Rosanna Street
Gilroy, CA 95020
CONTRACTOR: mnc.

C/ O 1 055 iZe_- o" t
L4- zHo E. Lo%\,,
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. 4833- 5278- 6061 v2
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1. DBE Program
CONTRACTOR 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 CONTRACTOR warrants that he/ she has not employed or retained any company or person, other than a bona fide employee working for the CONTRACTOR, 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.
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EXHIBIT B

SCOPE OF SERVICES
This Exhibit B provides the Scope of Services which CONTRACTOR ( referred to herein as InfoSend") shall deliver to CITY to permit the Users to use the products and services to view and pay their bills under this Agreement. The Scope of Services include both Primary Services and Professional Services as described and subject to the limitations herein. To the extent that any term is not expressly defined herein, it shall have the meaning set forth in the Agreement.

I. INFOSEND' S PRIMARY SERVICES UNDER THIS AGREEMENT
Data Processing, Printing and Mailing Service (" DPPM Service"): During the Term of this Agreement, InfoSend will provide data processing, printing and mailing services. The Service consists of processing data, printing documents, mail preparation, applying postage where appiicabie) and SeilUJL via the United States Postal Service. Document Types include but are not limited to bills, postcards and letters. eBusiness Services ( the " eBusiness Services"): During the Term of this Agreement InfoSend will provide eBusiness Services. These services can include presenting bills online and/ or accepting and reporting payment transaction information to facilitate ACH and/ or credit card payments via web, Interactive -Voice -Response ( IVR), SMS, or Bank Billpay ( eLockbox).

Section 1. Data Processing, Printing and MailinLr ( DPPM) Service Description A. Data Transfer and Processing
CITY to transmit data to InfoSend in an agreed upon format. Should CITY make changes to data file format after initial setup is complete, it agrees to pay for the professional services required to accommodate the new file format. See Exhibit C — Professional Services — for information on initial setup and ongoing programming changes.

A File Transfer Report will be emailed to the CITY representatives who have opted -in to this email. A copy of this report is also available to download from the InfoSend website.

CITY will have access to an online Job Tracking application that shows the progress of each file as it is processed and becomes a batch of documents to be printed and mailed.

CITY can see both the original input file name and the InfoSend- assigned " Job Code".

InfoSend will process the mailing addresses and perform the following functions:
o Apply CASS- certified address validation
o
Comply with LISPS requirements to obtain pre- sort automation rates for qualified CITY mail pieces
o
Stay current with all USPS regulations required to mail presorted first- class mail InfoSend will optionally provide proofs of the final print -ready PDF files to CITY to be reviewed and approved before printing begins ( ifrequested).

B. Document Printing and Mailing
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Batches are printed by InfoSend using a high- speed production process onto the agreed upon forms.

After a batch of mail is completed in InfoSend' s system it will be marked as such in the online Job Tracker and a Process Confirmation Report will be emailed to the CITY representatives who have opted -in to this email. A copy of this report is also available to download from the InfoSend website.

Section 2. eBusiness Service Description
A. General System Description
Mobile -Ready Customer Engagement: all products are mobile compatible out of the box, with no app store downloads required of customers. Powered by InfoSend' s CCM platform, customer specific messaging and payment reminders are delivered electronically.

Multi - Channel Payment Collection: InfoSend' s payment platform will consolidate web, telephone, SMS, CSR, in -person EMV and bank payments into a single lockbox file.

One -Time and Automatic Payments: allow customers to quickly make a one- time payment, as well as sign up to have their payment account auto debited with each billing cycle.

Bill Notification and Presentment: notify customers via email when a new bill is available, and securely deliver exact replica of printed document to customers inbox or show online via the secure portal.

Interactive Voice Response ( IVR): accept customer payments via automated phone service with InfoSend- hosted phone number, enabling CITY phone systems to redirect customers with ease.

SMS Text -to -Pay: enrolled customers may opt in to receive text notifications of new bills, and reply to have the registered payment method drafted for the amount due, speeding up the time to payment.

Bank Payments ( MasterCard RPPS): InfoSend can collect payments made via the customer bank and include them within the lockbox file.

PCI- Compliant Cloud Based Solution: electronic billing and payment related products hosted in the cloud by InfoSend in a secure PCI- Level 1 compliant environment.

B. Data Transfer and Processing
CITY to transmit data to InfoSend in an agreed upon format, using the Data Transfer and Processing workflow described in Section 1.

If the CITY is not using InfoSend' s DPPM Service, USPS address workflow will not be applied.

Data loaded into the eBusiness system is used to facilitate accurate payments via Web, IVR, SMS or Bank BillPay.

C. Customer Enrollment and Bill Notification
Data loaded into the system will be used to facilitate customer enrollment, using two pieces of information specific to the customer bill.
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For enrolled customers, system will send a notification of the new bill available via email.

For enrolled customers who have opted in, system will send an SMS alert.

For customers using the IVR system, bill information will be dictated by text to voice.

For customers paying via Bank BillPay, the account number can be validated by the system prior to accepting payment.

The system may optionally be configured to display a PDF replica of the bill image.

D. Customer Payment and Reporting
Customers can make payment via Web, SMS, IVR or Bank BillPay, depending on channels which CITY has requested InfoSend setup.

Payments can be configured to allow Users to pay by bank account and/ or credit/ debit card.

All payments will be reported in a standard daily " lockbox" file.

Section 3. Implementation and Support Description
A. Implementation
Dedicated Account Manager acts as primary contact and proj ect manager, coordinating all internal setup activities with InfoSend programming and operations staff.

All setup and training performed virtually, using phone, email, and web - based tools for issue tracking and screen sharing.

All communications, documentation and test files tracked and stored securely within the InfoSend CRM system, allowing other InfoSend personnel to contribute or take ownership of the project.

During programming, InfoSend' s Data Processing platform is configured to automate CITY -specific Quality Assurance ( QA) during processing.

Parallel Testing is run prior to go -live, ensuring all aspects of the application are validated before launch.

Go -Live includes an " all -hands" approach, with all key InfoSend managers required to review the launch day activity and sign off before application output is final.

B. Support
Dedicated Account Manager from implementation also assigned to monitor and provide support.

Dedicated Support Staff for reviewing and responding to incoming issues.

Multiple communication channels available for CITY preference: web support ticketing tool, email, and phone.

Proactive support initiated by InfoSend staff when CITY data issues are detected by InfoSend Quality Control processes.

Issues tracked via InfoSend CRM tool, ensuring full resolution before the ticket can be closed.

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InfoSend' s Professional Services are the technical services that are required to perform the initial setup of InfoSend' s Primary Services as described herein in this Exhibit B and the technical services required to make changes to these Primary Services after the initial setup is complete.

Once any Primary Service is live and operational Professional Services will not be required unless the CITY requests a change or makes changes to its data file format or business rules which necessitates a change to InfoSend' s system configuration or programming.

Examples of InfoSend' s Professional Services:

Project requirements gathering and analysis hours
Project management and/or consulting hours
Software development and system configuration hours related to the processing of CITY' s data
Software development and system configuration hours related to document design, web portal setup, business rule configuration, or any other applicable technical services Application testing and deployment hours
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EXHIBIT C

MILESTONE SCHEDULE
Key milestones are established at kickoff of implementation of Scope of Services as described in Exhibit " B", and are tracked and reported throughout the project. 4833- 5278- 606lv2
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EXHIBIT D

PAYMENT SCHEDULE
This Exhibit D provides the invoice schedule and explanation for fees which CONTRACTOR referred to herein as " InfoSend") will bill to CITY in exchange for the services provided under this Agreement. To the extent that any term is not expressly defined herein, it shall have the meaning set forth in the Agreement.

InfoSend will invoice CITY monthly and CITY will pay InfoSend the fees for Primary Services and Professional Services, as needed, described and/ or computed herein ( the " Fees"). CITY' s payment of these invoices is due upon receipt in U. S. dollars and shall be paid NET 30 unless otherwise expressly agreed to by CONTRACTOR. Should CITY dispute any invoices, it must do so within ninety ( 90) days of the invoice date.

Section 1. Price Escalations to InfoSend Fees
InfoSend Fees can be adjusted once every twelve ( 12) months to account for increases in the cost of materials, labor, and other overhead costs. InfoSend reserves the right to increase InfoSend Fees on a yearly basis ( starting with the first anniversary of the Agreement date). The CITY will be notified, in writing, at least thirty (30) days prior to such price increase. An amendment to the Agreement will not be required if the Fees are changed, unless the terms or conditions of the Agreement have otherwise changed. Postage fees can change at any time per LISPS regulations and do not require an amendment to the Agreement.

In addition to this, if CITY uses the Printing and Mailing Service, it accepts that InfoSend reserves the right to pass on any extraordinarily high increases to the cost of forms or envelopes at any time.

The CITY will be notified, in writing, at least thirty ( 3 0) days prior to such price increase.

InfoSend pricing is predicated on CITY representations of CITY and CITY User transactional usage. Should CITY' s actual continuous volume and/ or recurring frequency deviate by more than thirty percent-( 30%) from what CITY has represented to InfoSend in Section 2 below, then InfoSend reserves the right to invalidate the Fees listed in this Agreement. Should this rare situation arise then InfoSend will notify CITY immediately and negotiate with CITY in good faith to pass on any increased costs to CITY, in line with actual CITY and CITY User transactional usage. As defined in Section 5. 2( iv) of the Agreement, should InfoSend and CITY fail to agree upon updated Fees, InfoSend reserves the right to terminate this Agreement with one hundred eighty ( 180) days' notice.

Section 2. Initial Setup Cost: InfoSend Primary Services The Initial Setup cost for the InfoSend Primary Services described in Exhibit " B" have been provided using a Fixed Quote process, explained in Section 2 below. CITY understands and agrees to these terms, and to the project - specific terms and conditions that will be provided in the Statement of Work that will be created to capture CITY' s specific requirements and data types.

Section 3. Professional Services Fee and Process for Approval and Payment of Fee The Professional Services Fee Rates as previously contracted shall remain in effect.

In the event that a project will incur billable Professional Services hours, CITY shall be informed before work begins. InfoSend and CITY will execute a Statement of Work for project that CITY wants InfoSend to undertake. The payment terms for the project depend on the size and scope of the 4833- 5278- 6061 v2
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project. The Statement of Work can include payment terms that are different than the terms listed in this Exhibit " D", otherwise these terms will apply and the project fees will be invoiced upon project completion. Small projects that incur less than five ( 5) hours of Professional Services can be initiated without a Statement of Work if CITY accepts and executes a Programming Quote for this work.

Any project that will take more than five ( 5) hours of Professional Services work will require both parties to execute a formal Statement of Work. Depending on the nature of the work required, InfoSend will provide one ofthe following quotation methods:

Fixed Quote — a fixed project cost will be set. InfoSend may elect to waive this cost in some circumstances. CITY understands and accepts that it must accept the terms and conditions of the Statement of Work for the project and that changes made to the project requirements, data file structure, etc., after the Statement of Work and any amendments to it have been finalized will require CITY to pay for these changes on a Time and Materials basis. CITY will be notified immediately if this scenario arises and will be given an option to keep the original project specifications to keep the fixed quote in place.

Time and Materials quote — should it not be possible to provide a fixed quote due to the nature of a CITY' s requested project, then InfoSend will provide an estimated number of hours to complete the project and bill the hours on a Time and Materials basis. The Statement of Work will include the terms and conditions for these project types and CITY will be invoiced weekly for the hours spent on the project.

Section 4. CITY Representations
CITY Volume Assumptions
Customers Contacted or Billed Monthly
Approximately 21, 645 documents per month ( statements + past due) Number of Batches Monthly
10 or less ( average of 3- 4)
Averaze Customer Payments Per Month
5800
Section 5. DPPM Fees:

DPPM Rates as previously contracted and amended shall remain in effect.

Finished mail pieces are delivered to the USPS within one ( 1) business day. If samples ( proofs) are requested then the mailing will be completed within one day of sample approval. File upload deadline for next -day mailing is 3: OOPM local time at the production facility designated for your account. If samples are required then they must be approved by 5: 3OPM local time for the file to be mailed by the next business day.
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The below provides the components of the summary price given above. All pricing is based on CITY Volume Assumptions" listed above and excludes applicable sales tax.

Data Processing r
Setup Fee — Data Only Input Files Waived
Datw ceF ssingee (per document) 8r.
5x 11' Form Paper Stock (per sheet) t ! ` 0. 03 Outgoing # 10 'Envelope 0. 0' 28 Return #
9 Envelope0:24 0::
tional Document Services Drop
Shipped Inserts $0. 01 per insert Note:

InfoSend Produced Inserts are priced on request)
Electronic
Inserts0. 015 Professional
Services Rate (per hour) $150 Print
Image Archiving ( Per Document Image), $0. 005 - For 6 Months of Retention with included LISPS mail tracking Fee
Explanations Data
Processing Setup
Fee - Data Only Input: requires the CITY provide a flat data extract, InfoSend creates, hosts and maintains an application togenerate documents. Existing document design is copied. Data
Processing Fee: per document image that is processed by the InfoSend system for output.

Printing
and Mailing Service Print
Fee: price includes black plus blue, green or red simplex printing of variable data and form elements on the front of the page onto white form with aperforation. Postage:

CITYs are invoiced for the exact postage used. Leveraging InfoSend' s USPS compliance and expertise, CITYs are provided the lowest possible LISPS automated rates when CITY batches qualify. 4833-
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Address Updates — NCOALink or ACS: per reported update. InfoSend electronically reports the addresses it received in your data that need to be updated because the customer filed a Change of Address Report with the LISPS. Cost is per update.

Materials
Paper Stock: white paper stock with or without perforation. Paper is 8. 5x11" and 241b. Price includes all inventory costs. A larger 8. 5xl4" format is available at a higher material cost and higher printing cost.

Outgoing # 10 Envelope: # 10 InfoSend Standard Double Window Outgoing Envelope.

Includes security tint printed on the inside of the paper stock and clear film that prevent the contents of the envelope from being viewed. Sourced with sustainably logged paper ( SFI).

Return 99 Envelope: # 9 InfoSend Standard Single Window Return Envelope. Includes the same security tint and SFI paper as the # 10.

Optional Document Services
Drop Shipped Inserts: CITYs can print and fold inserts and ship them to InfoSend to be included with InfoSend produced mail. Additional fee applies if insert arrives at InfoSend but requires folding prior to insertion. Setup fees may apply for programming selective inserting. InfoSend- printed inserts are quoted upon request.

Print Image Archiving: fee per document to process, index, and store a document as a PDF for a set number of months. PDFs are securely accessed using an InfoSend website application. Third party applications can also access the PDFs via a lightweight API with no cost. Setup fees may apply depending on configuration needs.

Electronic Inserts: fee per digital image of a physically produced insert included in the PDF copy of a document. Ensures that CITY representatives and CITY customers can get the same information in the electronic bill as would go out physically.

Professional Services Fee: per hour and performed only upon request for customizations made to processing program or document format after go -live. Work is only started after receiving CITY approval of a formal quote.

Section 5. 1. Custom Forms/ Envelopes
If CITY has selected the Printing and Mailing Service and at any time requests that InfoSend Fees include the cost of custom CITY -specific materials ( either in this Agreement or since its execution), then CITY understands and accepts that 'these materials will be purchased in bulk to achieve the lowest possible per -unit cost. CITY agrees to purchase any remaining supplies of requested custom materials ( normally forms or envelopes) if CITY stops using InfoSend' s Service for any reason.

CITY agrees to purchase the remaining supply of custom forms/ envelopes upon CITY' s request to change the custom forms/ envelopes before the supply has been depleted.

Section 5.2. USPS Postage Rates
Postage rates are determined by the United States Postal Service. All postage rate changes are determined directly by USPS and are independent of any InfoSend service or materials fees. In no event shall any change in the postage rates affect the InfoSend service or materials fees. The CITY will be invoiced the amount of excess for overweight and foreign mail.

Section 5. 3. Postage Deposit
InfoSend purchases the postage needed to mail CITY documents on the day of mailing. The postage charges are later invoiced to CITY based on the CITY' s payment terms. InfoSend requires CITY to submit a postage deposit prior to the first mailing to facilitate the payment terms. This amount will remain in deposit for the duration of the Agreement. Upon Agreement expiration or termination CITY must pay in full any outstanding invoices from InfoSend for payables created under this 4833- 5278- 6061v2
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Agreement; the postage deposit will be refunded within fifteen ( 15) days of the date that the last open invoice is paid.

The postage deposit is subject to an annual review and may be adjusted to account for changes to CITY average mailing volume or changes to LISPS postage rates. There will be no more than one adjustment requested per year, if at all.

The postage deposit amount is calculated by multiplying the estimated number of mail pieces per month by the current 5- Digit pre- sorted first class postage rate. The postage deposit amount due for your account is:

Postage deposit as previously receivedfrom CITY shall remain in effect.

Section 6. eBusiness Service Fees:

InfoSend Electronic Payments and Presentment Pricing
All Payment Processing fees will be assessed by Global Payments and included in a merchant statement. All pricing is based on " CITY Volume Assumptions" listed and excludes applicable sales tax.

Online BillPay Setup Fee Waived
Monthly Maintenance $ 225
Per eBill Loaded $ 0. 03
Per Enrolled Customer Fee $ 0. 08
IVR Setup Fee $ 200
Second Language Recording Setup Fee $ 550
Optional)
Monthly Maintenance $ 225
IVR Per Minute Fee $ 0. 12
SMS Setup Fee Waived
Monthly Maintenance Waived
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SMS Per Text Fee I$ 0.03
ACH Return Fee 5. 00
Chargeback Fee 20
Monthly Minimum 600
eLockbox Setup Fee 1, 499
Per Bank Payment Fee 0. 20
Per Reversal ( Optional) 3. 00
Section 7. Implementation Proiect Cost Subsidization:

InfoSend' s internal costs to complete the project is higher than the Setup fees given. InfoSend has subsidized these fees by factoring in years of service given the term of the agreement. Should CITY cancel the project or terminate the Agreement at its convenience less than two ( 2) years from the Agreement date then it must pay according to the below.

EBPP Setup Fee: 50% of Setup fees quoted.
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s

AGREEMENT FOR SERVICES
This AGREEMENT made this 21 st day of February, between:

CITY: City of Gilroy, having a principal place ofbusiness at 7351 Rosanna Street, Gilroy, California
and CONTRACTOR: InfoSend, Inc., having a principal place of business at 4240 E. La Palma Ave., Anaheim, CA 92807.

ARTICLE 1. TERM OF AGREEMENT
The Initial Term of this Agreement will become effective on 3/ 01/ 2012 and will continue in effect through a period of 36 months ( 3/ 01/ 2015), with automatic subsequent " Renewal Periods" of 12 months unless terminated in accordance with the provisions of Article 7 of this Agreement.

ARTICLE 2. INDEPENDENT CONTRACTOR STATUS
It is the express intention of the parties that CONTRACTOR 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 CONTRACTOR or any employee' or agent of CONTRACTOR. Both parties acknowledge that CONTRACTOR is not an employee for state or federal tax purposes.

CONTRACTOR 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. CONTRACTOR shall retain the right to perform services for others during the term of this Agreement.

ARTICLE 3. SERVICES TO BE PERFORMED BY CONTRACTOR
A. Specific Services
CONTRACTOR 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
CONTRACTOR 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 CONTRACTOR' S services.

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C. Employment ofAssistants
CONTRACTOR may, at the CONTRACTOR' S own expense, employ such assistants as CONTRACTOR deems necessary to perform the services required of CONTRACTOR by this Agreement, subject to the prohibition against assignment and subcontracting contained in Article 5 below. CITY may not control, direct, or supervise CONTRACTOR' S assistants in the performance of those services. CONTRACTOR 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
CONTRACTOR shall perform the services required by this Agreement at any place or location and at such times as CONTRACTOR shall determine is necessary to properly and timely perform CONTRACTOR' S services.

ARTICLE 4. COMPENSATION
A. Consideration
In consideration for the services to be performed by CONTRACTOR, CITY agrees to pay CONTRACTOR the amounts set forth in Exhibit " D" ( " Payment Schedule "). In no event however shall the total compensation for initial setup costs paid to CONTRACTOR exceed 5, 495. 00. Additional compensation as outlined in Exhibit " D" pertains to monthly service fees and professional services fees which will not exceed the stated amounts provided.

B. Invoices
CONTRACTOR 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 CONTRACTOR 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 CONTRACTOR 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.

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1 D. Expenses
CONTRACTOR 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 CONTRACTOR, all fees, fines, licenses, bonds or taxes required of or imposed against CONTRACTOR and all other of CONTRACTOR' S costs of doing business. CITY shall not be responsible for any expenses incurred by CONTRACTOR in performing services for CITY, except for those expenses constituting " direct expenses" referenced on Exhibit " A." ARTICLE 5. OBLIGATIONS OF CONTRACTOR
A. Tools and Instrumentalities
CONTRACTOR shall supply all tools and instrumentalities required to perform the services under this Agreement at its sole cost and expense. CONTRACTOR is not required to purchase or rent any tools, equipment or services from CITY.

B. Workers' Compensation
CONTRACTOR agrees to provide workers' compensation insurance for CONTRACTOR' 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 CONTRACTOR' S employees.

C. Indemnification of Liability, Duty to Defend
1) Professional Liability
To the fullest extent permitted by law, CONTRACTOR shall 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 reasonable attorneys' fees, to the extent caused by any willful or negligent acts, errors or omissions of CONTRACTOR or CONTRACTOR' S assistants, employees or agents, including all claims relating to the injury or death of any person or damage to any property, arising from or related to the services to be performed under this Agreement. 2) Other Liability
To the fullest extent permitted by law, CONTRACTOR shall defend through counsel approved by CITY 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 reasonable attorneys' fees, to the extent arising out of or caused by any act or omission of CONTRACTOR or CONTRACTOR' S assistants, employees or agents, including all claims relating to the injury or death of any person or damage to any property, other than those arising from or related to the services to be performed under this Agreement.

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D. Insurance
In addition to any other obligations under this Agreement, CONTRACTOR shall, at no cost to CITY, obtain and maintain throughout the term of this Agreement: ( a) Commercial Liability Insurance, 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 and aggregate. As a condition precedent to CITY' S obligations under this Agreement, CONTRACTOR shall furnish 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) 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 CONTRACTOR under this Agreement may be assigned or subcontracted by CONTRACTOR without the prior written consent of CITY, which CITY may withhold in its sole and absolute discretion.

F. State and Federal Taxes
As CONTRACTOR is not CITY' S employee, CONTRACTOR shall be responsible for paying all required state and federal taxes. Without limiting the foregoing, CONTRACTOR acknowledges and agrees that:

CITY will not withhold FICA ( Social Security) from CONTRACTOR' S payments;
CITY will not make state or federal unemployment insurance contributions on CONTRACTOR' S behalf,
CITY will not withhold state or federal income tax from payment to CONTRACTOR;
CITY will not make disability insurance contributions on behalf of CONTRACTOR;
CITY will not obtain workers' compensation insurance on behalf of CONTRACTOR.

ARTICLE 6. OBLIGATIONS OF CITY
A. Cooperation of City
CITY agrees to respond to all reasonable requests of CONTRACTOR and provide access, at reasonable times following receipt by CITY of reasonable notice, to all documents reasonably necessary to the performance of CONTRACTOR' S duties under this Agreement.

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B. Assignment
CITY may assign this Agreement or any duties or obligations thereunder to a successor governmental entity without the consent of CONTRACTOR. Such assignment shall not release CONTRACTOR from any of CONTRACTOR' S duties or obligations under this Agreement.

ARTICLE 7. TERMINATION OF AGREEMENT
A. Sale of CONTRACTOR' s Business/ Death of CONTRACTOR.

CONTRACTOR shall notify CITY of the proposed sale of CONTRACTOR' 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 CONTRACTOR set forth in Exhibit A, Subsection V.H., no later than thirty ( 30) days after CITY' receipt of such notice of sale.

If CONTRACTOR is an individual, this Agreement shall be deemed automatically terminated upon death of CONTRACTOR.

B. Termination by City for Default of CONTRACTOR
Should CONTRACTOR 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 CONTRACTOR. For the purposes of this section, material breach of this Agreement shall include, but not be limited to the following:

1. CONTRACTOR' S failure to professionally and /or timely perform any of the services contemplated by this Agreement.

2. CONTRACTOR' S breach of any of its representations, warranties or covenants contained in this Agreement.

CONTRACTOR 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 CONTRACTOR. Notwithstanding the foregoing, if CITY terminates this Agreement due to CONTRACTOR' S default in the performance of this Agreement or material breach by CONTRACTOR of any of its provisions, then in addition to any other rights and remedies CITY may have, CONTRACTOR 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 CONTRACTOR for the performance of that task pursuant to this Agreement.

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C. Termination for Failure to Make Agreed -Upon Payments Should CITY fail to pay CONTRACTOR 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, CONTRACTOR, at the CONTRACTOR' 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 CONTRACTOR to CITY.

D. Transition after Termination
Upon termination, CONTRACTOR shall immediately stop work, unless cessation could potentially cause any damage or harm to person or property, in which case CONTRACTOR shall cease such work as soon as it is safe to do so. CONTRACTOR shall incur no further expenses in connection with this Agreement. CONTRACTOR 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 CONTRACTOR' s duties by any new CONTRACTOR 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 CONTRACTOR 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. CONTRACTOR 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 CONTRACTOR 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 CONTRACTOR, 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 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.

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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 CONTRACTOR 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, CONTRACTOR 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
CONTRACTOR 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 CONTRACTOR and that no person associated with CONTRACTOR 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 CONTRACTOR 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.

H. Governing Law
This Agreement will be governed by and construed in accordance with the laws of the State of California.
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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
CONTRACTOR 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.

CONTRACTOR:

InfoSend, Inc.
t -
By:

Name: ezai
Title: CO
Social Security or Taxpayer
Identification Number 33- 0748516
Approved as to Form
jk' Iity Attorney wbe
WPAPP1764446. 2 - 8-
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CITY:

CITY OF GILROY
By:

Name: Tom Ha nd
Title: City Administrator
ATT ST:
4aAlL(
C er
Agenda Item No. 7.5 Agenda Page No. 137 of 279
EXHIBIT "A"

SPECIFIC PROVISIONS
I. PROJECT MANAGER
CONTRACTOR 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, CONTRACTOR agrees to assign Matt Schmidt, 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, CONTRACTOR 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
CONTRACTOR shall commence the Services upon delivery to CONTRACTOR 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, Carmen Medrano shall be the designated City contact person( s). Notice to Proceed shall be deemed to have been delivered upon actual receipt by CONTRACTOR or if otherwise delivered as provided in the Section V.H. ( "Notices ") of this Exhibit " A ".

B. COMPLETION OF SERVICES
When CITY determines that CONTRACTOR has completed all of the Services in accordance with the terms of this Agreement, CITY shall give CONTRACTOR written Notice of Final Acceptance, and CONTRACTOR shall not incur any further costs hereunder. CONTRACTOR 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 CONTRACTOR has not completed all of such Services as required by this Agreement, CITY shall so inform CONTRACTOR 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 ".

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Agenda Item No. 7.5 Agenda Page No. 138 of 279
IV. PAYMENT OF FEES AND DIRECT EXPENSES
Payments shall be made to CONTRACTOR as provided for in Article 4 of this Agreement.

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.

CONTRACTOR 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
CONTRACTOR 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 CONTRACTOR' S representations and warranties regarding its skills, qualifications and licenses. CONTRACTOR 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 CONTRACTOR
CONTRACTOR shall be responsible for the professional quality, technical accuracy, and the coordination of the Services furnished by it under this Agreement. CONTRACTOR 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 CONTRACTOR shall be and remain liable to CITY in accordance with applicable law for all damages to CITY caused by CONTRACTOR' S negligent performance of any of the services furnished under this Agreement.

C. RIGHT OF CITY TO INSPECT RECORDS OF CONTRACTOR
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 CONTRACTOR for the purpose of verifying any and all charges made by CONTRACTOR in connection with this Agreement. CONTRACTOR shall maintain for a minimum period of three ( 3) years ( from the date of final payment to IVPAPP1764446. 2 _ 10-
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Agenda Item No. 7.5 Agenda Page No. 139 of 279
CONTRACTOR), 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 CONTRACTOR, all of which shall be made available to CITY at the CITY' s offices within five ( 5) business days after CITY' s request.

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 CONTRACTOR and all other written and oral information developed or received by or for CONTRACTOR and all other written and oral information submitted to CONTRACTOR in connection with the performance of this Agreement shall be held confidential by CONTRACTOR 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 CONTRACTOR which is otherwise known to CONTRACTOR or is or becomes generally known to the related industry ( other than that which becomes generally known as the result of CONTRACTOR' S disclosure thereof) shall be deemed confidential. CONTRACTOR 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 CONTRACTOR 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 CONTRACTOR may retain and use copies thereof subject to Section V.D ofthis 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, CONTRACTOR shall not be responsible for, and City shall indemnify CONTRACTOR 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.

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Agenda Item No. 7.5 Agenda Page No. 140 of 279
k
H. NOTICES.

Notices are to be sent as follows:

CITY: Attn.: Barbara Voss, Assistant Finance Director
City of Gilroy
7351 Rosanna Street
Gilroy, CA 95020
CONTRACTOR: InfoSend, Inc.

Attn.: Client Services
4240 E. La Palma Ave.

Anaheim, CA 92807
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.J. apply.

X 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. J. do not apply.

1. DBE Program
CONTRACTOR 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 CONTRACTOR warrants that he /she has not employed or retained any company or person, other than a bona fide employee working for the CONTRACTOR, 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.

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Agenda Item No. 7.5 Agenda Page No. 141 of 279
EXHIBIT " B"

SCOPE OF SERVICES
A. CONTRACTOR shall provide the following services as further described in, and at the rates and prices set forth in, Exhibit " D ", which is attached to this Agreement and incorporated herein:

SERVICE COST
Online BillPay (EBPP) Initial Setup 4, 495. 00
Data Processing and Document Creation —
per page Processed

0. 00
Option 1: All Bills Presented Package 400.00 /month, plus $ 0. 08 per enrolled customer
CSRPay Initial Setup 250.00
Monthly Support for Online BillPay 200. 00 /month
CSRPay Service
Payment Initiation & PCI Compliance
Monthly Support
05 per payment

25. 00 /month
B. Upon the CITY' s written request, CONTRACTOR shall provide all other optional services described in Exhibit " D" at the rates stated therein.

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Agenda Item No. 7.5 Agenda Page No. 142 of 279
EXHIBIT "C"

MILESTONE SCHEDULE
Anticipated Implementation Timeline of 14 -16 Weeks.

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Agenda Item No. 7.5 Agenda Page No. 143 of 279
e
EXHIBIT "D"
Online BiIIPay ( EBPP) Initial Setup Cost: $ 4,495. 00
One time fee - cost for implementing standard offering. The above pricing includes:

InfoSend standard reports including a standard payment posting file. A custom payment - posting N file costs an additional $ 750.

Payment integration to Citizens Business Bank. Integration to a new bank/ payment processor is ILL not included and raises costs significantly ( when available).

N
N
2 Z
Optional CSRPay Initial Setup Cost: $ 250. 00
conjunctionN One time fee - cost for project implementation. This is an optional service that can be used in with Online BiIIPay or Online ePay.
c
O_
N
Please note that Clients must sign off on requirements documents ( Statement of Work, project plan, etc.) before programming and system configuration can begin. Client can be charged additional fees and /or have the project goo live date delayed if requirements are changed after they have been finalized and signed off. a
Professional Services Fee Per Hour $ 150. 00
Per hour and performed only upon request. For customizations made to your Online BiIIPay configuration after go -live. Work is only started after receiving your approval of a formal quote.

Data Processing and Document Per page
Creation - per Page Processed
N
d
Includes the processing of your
custom data. Each time a billing file
forN is received our system will look
thea new customers to add to
U) eBusiness database ( to facilitate
M
enrollment). The system will
process your data and create PDF
versions of your bills.
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Agenda Item No. 7.5 Agenda Page No. 144 of 279
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Option 1: All Bills Presented 400 /mth to load Per bill presented. All invoices will be Package: Presentment and every invoice presented or made available each Storage of all invoices — 12 - 16 each month plus month. Customers will be able to view months of Bill Retention for all bills 0. 08 per enrolled and pay their current bill immediately and customers customer, both after enrolling for the service. per month. The Historical invoices & payment history
enrolled fee is will be available to customer for 18
charged only months, this will build over the initial
once per month 18 months of service. This gives the
regardless of benefit that when a customer enrolls,
how many times their invoice( s) will be available to
a customer them immediately. Includes basic
views it or logs email alerts — for example email
on during the notifying a customer when an invoice
month. This is available to be viewed ( or the
charge includes invoice itself can be put in this email). the first 1, 000 Invoices available will be those
enrollees per reflected since the go live date of the
month. service. Back loading of historical bills
can be done and priced based on
further discussion. This also has the
advantage of making all invoices
available to CSR's through the CSR
tool for viewing during customer
calls, CSR payment functions, CSR
enrollment and recover password
functions and other features.

Monthly Support Fee Per Month 200. 00
Per month fee to support the Online
BillPay service.

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Agenda Item No. 7.5 Agenda Page No. 145 of 279
4 Cost of Print & Mail Service
With a new 4 year agreement for both EBPP AND Print & Mail services, InfoSend will offer to lower Gilroy' s print pricing to the following pricing, a significant price reduction.

InfoSend' s Fees - Print & Mail Services
Transaction Fees — Utility $ 0. 118* Per document fee includes file transfer, processing, # 9 Bills on non - recycled single window return envelope, # 10 double window materials outgoing envelope, and handling of a single -page bill.

Includes current custom solo, preprinted form with static backer already in use by Gilroy. Many other providers do not offer a custom form such as the one we already provide to Gilroy. No minimum run fees. Sales tax inclusive ( all inclusive materials paid for).

Additional Pages $ 0. 07* ea. for each additional page of a multi - page bill.

Setup Fee $ 0. 00 One time fee waived.

Professional Services
Programming Fee $ 150. 00 Per hour. For customizations made to document processing program after go -live. Examples: you change export file format 12 months after go -live.

Postage not included. Current 5 -Digit Presort rate is $ 0.35 ( this is the new, best USPS rate as of 1- 22 -12) and as handled currently, InfoSend will manage Gilroy' s bill mailing to minimize postage costs.

Optional
Electronic Address Updates $ 0.40 ea. Per reported change. InfoSend electronically reports the NCOALink or ACS Occurrence addresses it received in your data that need to be updated because the customer filed a Change of Address Report
with the USPS.

Drop- Shipped Inserts Clients can print and fold inserts and ship them to InfoSend to be mailed with the statements. If folding is required add 1/ 3 page inserts or pre- $ 0. 01 another $ 0.01 to the fee. InfoSend- printed inserts are folded 8'/ z x 11 inserts quoted upon request. No additional cost to selectively insert the # 9 return envelope, leaving it out of direct deposit or auto pay customers.

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Agenda Item No. 7.5 Agenda Page No. 146 of 279

CERTIFICATE OF LIABILITY INSURANCE

DATE ( MM / DDI
2/ 29/ 201212
PRODUCER ( 562) 493 - 3521 FAX: ( 562) 430 - 5300 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION Alandale Insurance Agency ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR
11022 Winners Circle, Ste. 100 ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW..

Los Alamitos CA 90720 INSURERS AFFORDING COVERAGE NAIC # INSURED INSURER A: Sentinel Insurance Company 11000
INFO SEND, INC. INSURER B: Hartford Underwriters Ins Co 30104 4240 E LA PALMA AVE INSURER C: Twin City Fire Ins Co 002235 INSURER D:

ANAHEIM CA 92807 INSURER E:
rr1VFRarFC
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. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.

INSR
LTR
DD' L

NSRD TYPE OF INSURANCE POLICY NUMBER

POLICY EFFECTIVEDATEMMIDDIYYYY POLICY EXPRATIONDATEMM / DD/ YYYY LIMITS REPRESENTATIVES.

AUTHORIZED REPRESENTATIVE

GENERAL LIABILITY
Stacy Marshall / STACYM
EACH OCCURRENCE 1, 000, 000
A X

X COMMERCIAL GENERAL LIABILITY
CLAIMS MADE I—XI OCCUR 72SBAZB7916 2/ 24/ 2012 2/ 24/ 2013

DAMAGE TO RENTED
PREMISES Ea occurrence 1 000 000
MED EXP ( Any one person) 10, 000
PERSONAL & ADV INJURY 1, 000, 000
GENERAL AGGREGATE 2, 000, 000
GEN' L AGGREGATE LIMIT APPLIES PER. PRODUCTS - COMP / OP AGG 2, 000, 000 X POLICY jLOC

AUTOMOBILE LIABILITY

ANY AUTO

COMBINED SINGLE LIMIT
Ea accident) 1, 000, 000

BODILY INJURY
Per person)

B ALL OWNED AUTOS

SCHEDULED AUTOS
72UECPE3966 2/ 18/ 2012 2/ 18/ 2013
X
X

BODILY INJURY
Per accident)

HIRED AUTOS

AUTOSX NON -OWNED

PROPERTY DAMAGE
Per accident)

GARAGE LIABILITY AUTO ONLY - EA ACCIDENT S

OTHER THAN

ACCANYAUTO EA
SAUTOONLY: AGG
EXCESS / UMBRELLA LIABILITY EACH OCCURRENCE S 5, 000, 000 X OCCUR 0 CLAIMS MADE AGGREGATE 5, 000, 000
A DEDUCTIBLE 72SRAZB7916 2/ 24/ 2012 2/ 24/ 2013
SXRETENTION $ 10, 000

C WORKERS COMPENSATION

AND EMPLOYERS' LIABILITY
YIN

ANY PROPRIETOR/ PARTNER / EXECUTIVE
X WC STATU- OTHTORY LIMITS ER
E. L. EACH ACCIDENT 1, 000, 000
OFFICER /MEMBER EXCLUDED?
Mandatory in NH) 72WECLU6992 2/ 1/ 2012 2/ 1/ 2013 E. L. DISEASE - EA EMPLOYEE S 1, 000, 000 If yes, describe under
SPECIAL PROVISIONS below E. L. DISEASE - POLICY LIMIT 1, 000, 000 OTHER

DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES I EXCLUSIONS ADDED BY ENDORSEMENT I SPECIAL PROVISIONS City of Gilroy and its officers, officials and employees are named as additional insured as their interest may appear and coverage is primary / non contributory when required by contract per attached end. # SS0008. * 10 days notice of cancellation for nonpayment of premium

INS025 poosot)
The ACORD name and logo are registered marks of ACORD

SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION City of Gilroy DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL * 30 DAYS WRITTEN 7351 Rosanna Street

NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO DO SO SHALL Gilroy, CA 95020

IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER, ITS AGENTS OR REPRESENTATIVES.

INS025 poosot)
The ACORD name and logo are registered marks of ACORD
Agenda Item No. 7.5 Agenda Page No. 147 of 279
I caorU- oi a 10

BUSINESS LIABILITY COVERAGE FORM
This Paragraph f. applies separately to
you and any additional insured.

3. Financial Responsibility Laws
a. When this policy is certified as proof of
financial responsibility for the future under
the provisions of any motor vehicle
financial responsibility law, the insurance
provided by the policy for " bodily injury"
liability and " property damage" liability will
comply with the provisions of the law to
the extent of the coverage and limits of
insurance required by that law.
b. With respect to " mobile equipment" to
which this insurance applies, we will
provide any liability, uninsured motorists,
underinsured motorists, no -fault or other
coverage required by any motor vehicle
law. We will provide the required limits for
those coverages.

4. Legal Action Against Us
No person or organization has a right under
this Coverage Form:
a. To join us as a party or otherwise bring us
into a " suit" asking for damages from an
insured; or
b. To sue us on this Coverage Form unless
all of its terms have been fully complied
with.

A person or organization may sue us to recover
on an agreed settlement or on a final judgment
against an insured; but we will not be liable for
damages that are not payable under the terms of
this insurance or that are in excess of the
applicable limit of insurance. An agreed
settlement means a settlement and release of
liability signed by us, the insured and the
claimant or the claimant' s. legal representative.

5. Separation Of Insureds
Except with respect to the Limits of Insurance,
and any rights or duties specifically assigned
in this policy to the first Named Insured, this
insurance applies:
a. As if each Named Insured were the only
Named Insured; and
b. Separately to each insured against whom
a claim is made or " suit" is brought.

6. Representations
a. When You Accept This Policy
By accepting this policy, you agree:
1) The statements in the Declarations
are accurate and complete;
2) Those statements are based upon
representations you made to us; and

Page 16 of 24 ends

3) We have issued this policy in reliance
upon your representations.
b. Unintentional Failure To Disclose
Hazards
If unintentionally you should fail to disclose
all hazards relating to the conduct of your
business at the inception date of this
Coverage Part, we shall not deny any
coverage under this Coverage Part
because of such failure.

7. Other Insurance
If other valid and collectible insurance is
available for a loss we cover under this
Coverage Part, our obligations are limited as
follows:
a. Primary Insurance
This insurance is primary except when b.
below applies. If other insurance is also
primary, we will share with all that other
insurance by the method described in c.
below.
b. Excess Insurance
This insurance is excess over any of the
other insurance, whether primary, excess,
contingent or on any other basis:
1) Your Work
That is Fire, Extended Coverage,
Builder' s Risk, Installation Risk or
similar coverage for "your work ";
2) Premises Rented To You
That is fire, lightning or explosion
insurance for premises rented to you
or temporarily occupied by you with
permission of the owner;
3) Tenant Liability
That is insurance purchased by you to
cover your liability as a tenant for
property damage" to premises rented
to you or temporarily occupied by you
with permission of the owner;
4) Aircraft, Auto Or Watercraft
If the loss arises out of the maintenance
or use of aircraft, "autos" or watercraft to
the extent not subject to Exclusion g. of
Section A. — Coverages.
5) Property Damage To Borrowed
Equipment Or Use Of Elevators
If the loss arises out of " property
damage" to borrowed equipment or
the use of elevators to the extent not
subject to Exclusion k, of Section A. —
Coverages.

Form SS 00 08 04 05
Agenda Item No. 7.5 Agenda Page No. 148 of 279

IMPORTANT
If the certificate holder is an ADDITIONAL INSURED, the policy( ies) must be endorsed. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement( s).

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).

DISCLAIMER
This Certificate of Insurance does not constitute a contract between the issuing insurer( s), authorized representative or producer, and the certificate holder, nor does it affirmatively or negatively amend, extend or alter the coverage afforded by the policies listed thereon.

AGUKU ZO ( ZUUV1U1 )
INS025 ( 2ooso>)
Agenda Item No. 7.5 Agenda Page No. 149 of 279
ACORO® CERTIFICATE OF LIABILITY INSURANCE

DATE ( MM / DD/ YYYY)

CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, 02/ 29/ 2012
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 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).

PRODUCER -

CONTACT
Derek C. Jones
Jones and Company Insurance Agency, Inc. PHONE FAX
505 S Villa Real Suite 115
IAa% Ext): ( 714)453 -2220 IC, No: ( 714) 453 - 2230
ADDRESS: derek@dontriskit. com
Anaheim Hills, CA 92807

COMMERCIAL GENERAL LIABILITY
License #: OE39020
INSURER ( S) AFFORDING COVERAGE NAIC #
INSURER A: AXIS Surplus Ins Co 26620

INSURED
INSURER B: AXIS Surplus Ins Co 26620
INFOSEND, INC. INSURER C:
4240 E. LA PALMA AVE INSURER D:

ANAHEIM, CA 92807 INSURER E:

INSURER F :

PERSONAL & ADV INJURY
COVERAGES CERTIFICATE NUMBER: 00000471 - 0 REVISION NUMBER: 13

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.

INSRLTR TYPE OF INSURANCE
ADDL
I
SUBR

D POLICY NUMBER

POLICY EFFMM / DD/ YYYY ) EXPMMIDDIYYYYJ POLICY LIMITS

GENERAL LIABILITY

EACH OCCURRENCE

COMMERCIAL GENERAL LIABILITY

DAMAGE ( RENTED
PREMISESS Ea occurrence
CLAIMS - MADE L- 1 OCCUR MED EXP (Any one person)

PERSONAL & ADV INJURY

GENERAL AGGREGATE
GEN' L AGGREGATE LIMIT APPLIES PER: PRODUCTS - COMP / OP AGG POLICY
PRO
LOC

AUTOMOBILE LIABILITY

COMBED SINGLE LIMIT
Ea accINident
ANY AUTO BODILY INJURY ( Per person)

ALL OWNED SCHEDULED

AUTOS AUTOS
BODILY INJURY ( Per accident)

NON -OWNED

HIRED AUTOS AUTOS

PROPERTY DAMAGE
Per accident

UMBRELLA LIAB

HCLAIMSOCCUR

EACH OCCURRENCE

EXCESS LIAB AGGREGATE
DIED RETENTION $ I $

WORKERS COMPENSATION

AND EMPLOYERS' LIABILITY
YIN
S OTHT RY LIMIT R
ANY PROPRIETOR/ PARTNER/ EXECUTIVE E. L. EACH ACCIDENT
OFFICER/ MEMBER EXCLUDED?
NIA
Mandatory in NH) E. L. DISEASE - EA EMPLOYE
If yes, describe under
DESCRIPTION OF OPERATIONS below E. L. DISEASE - POLICY LIMIT A ERRORS AND OMISSIONS N N MCN000009971101 12/0112011 12/01/ 2012 EACH OCCURENCE 1, 000,000 B ERRORS AND OMISSIONS N N MCN000009971101 12/01/ 2011 12/01/ 2012 AGGREGATE LIMIT 1, 000,000 DESCRIPTION OF OPERATIONS / LOCATIONS I VEHICLES ( Attach ACORD 101, Additional Remarks Schedule, if more space is required) CERTIFICATE HOLDER WILL RECEIVE 10 DAYS NOTICE OF CANCELLATION FOR NON - PAYMENT OF PREMIUM AND 30 DAYS NOTICE OF CANCELLATION FOR POLICY CANCELLATION.

ACORD 25 ( 2010/ 05) The ACORD name and logo are registered marks of ACORD Printed by DCJ on February 29, 2012 at 11: 06AM

SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE

CITY OF GILROY

THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS.
7351 ROSANNA ST
GILROY, CA 95020 AUTHORIZED EPRESENTATIVE
1988 - 2010 ACORD CORPORATION. All rights reserved.

ACORD 25 ( 2010/ 05) The ACORD name and logo are registered marks of ACORD Printed by DCJ on February 29, 2012 at 11: 06AM
Agenda Item No. 7.5 Agenda Page No. 150 of 279
k. CERTIFICATE OF LIABILITY INSURANCE

DATE ( MM /D
0122/ 29/ 2012
PRODUCER ( 562) 493 - 3521 FAX: ( 562) 430 - 5300 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION Alandale Insurance Agency
ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE OR111022WinnersCircle, HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND Ste. 100 ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW.

ANAHEIM CA 92807 INSURER E:

COVERAGES
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

INSRLTR LNSRD DD' TYPE OF INSURANCE POLICY NUMBER
POLICY EFFECTIVEDATEMM / DDlYYYY POLICY EXPRATIONDATEMM / DD/ Yl' YY LIMITS REPRESENTATIVES.

GENERAL LIABILITY I EACH OCCURRENCE 1 000 000
A X

X COMMERCIAL GENERAL LIABILITY
CLAIMS MADE I—XI OCCUR 72SBAZB7916 2/ 24/ 2012

DAMAGE TO RENTED
PREMISES Ea occurrence
2/ 24/ 2013 MED EXP ( Any one person)
1, 000, 000
10, 000
000PERSONAL & ADV 1, 000, INJURY
000GENERALAGGREGATE 2 000
GEN' L AGGREGATE LIMIT APPLIES PER OOOPRODUCTS - COMP /OP AGG 2 000

X POLICY L
PROLOC

AUTOMOBILE LIABILITY

ANY AUTO

COMBINED SINGLE LIMIT
Ea accident) 1, 000, 000
B
X

ALL OWNED AUTOS

SCHEDULED AUTOS
72UECPE3966 2/ 18/ 2012 2/ 18/ 2013

BODILY INJURY
Per person)
X
X

HIRED AUTOS

NON -OWNED AUTOS

BODILY INJURY
j ( Per accident)

PROPERTY DAMAGE
Per accident)

GARAGE LIABILITY AUTO ONLY - EA ACCIDENT

OTHER THAN

ACCANYAUTOEA
AUTO ONLY.

AGG
EXCESS I UMBRELLA LIABILITY EACH OCCURRENCE 5 000 000
X OCCUR F_ CLAIMS MADE AGGREGATE 5, 000, 000
A DEDUCTIBLE 72SRAZB7916 2/ 24/ 2012 2/ 24/ 2013 11
X RETENTION $ 10, 000

C WORKERS COMPENSATION

AND EMPLOYERS' LIABILITY
Y / N

X ORY LIMITS OTER
ANY PROPRIETOR/ PARTNER /EXECUTIVE E. L. EACH ACCIDENT 11900, 000 OFFICER / MEMBER EXCLUDED?
Mandatory in NH) 72WECLU6992 2/ 1/ 2012 2/ 1/ 2013 EL DISEASE - EA EMPLOYE 1, 000 000 If yes, describe under
SPECIAL PROVISIONS below EL DISEASE - POLICY LIMIT 1, 000, 000 OTHER

DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES / EXCLUSIONS ADDED BY ENDORSEMENT / SPECIAL PROVISIONS City of Gilroy and its officers, officials and employees are named as additional insured as their interest may appear and coverage is primary / non contributory when required by contract per attached end. # SS000B. * 10 days notice of cancellation for nonpayment of premium
rFRTIFIr: ATF i4ni nFR r_ANr`FI I ATI( 1N
ACORD 25 ( 2009101) © 1988 - 2009 ACORD CORPORATION. All rights reserved.

INS025 poosot)
The ACORD name and logo are registered marks of ACORD

SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION City of Gilroy DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL * 30 DAYS WRITTEN 7351 Rosanna Street
Gilroy, CA 95020

NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO DO SO SHALL

IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER, ITS AGENTS OR REPRESENTATIVES.

INS025 poosot)
The ACORD name and logo are registered marks of ACORD
Agenda Item No. 7.5 Agenda Page No. 151 of 279
72SBAZB7916

BUSINESS LIABILITY COVERAGE FORM
This insurance does not apply to structural The limits of insurance that apply to additional alterations, new construction and demolition insureds are described in Section D. — Limits Of operations performed by or for that person or Insurance. organization.

How this insurance applies when other insurance

9. Additional Insured — Owners, Lessees Or is available to an additional insured is described in Contractors — Scheduled Person Or the Other Insurance Condition in Section E. — Organization Liability And Medical Expenses General
a. WHO IS AN INSURED under Section C. is Conditions.
amended to include as an additional G. LIABILITY AND MEDICAL EXPENSES insured the person( s) or organization( s)

DEFINITIONS
shown in the Declarations as an Additional
Insured — Owner, Lessees Or Contractors, 1. " Advertisement" means the widespread public but only with respect to liability for " bodily dissemination of information or images that injury", " property damage" or " personal has the purpose of inducing the sale of goods, and advertising injury" caused, in whole or
products or services through:
in part, by your acts or omissions or the a. ( 1) Radio; acts or omissions of those acting on your 2) Television; behalf:
3) Billboard;
1) In the performance of your ongoing 4) Magazine;
operations for the additional
insured( s); or
5) Newspaper;
2) In connection with " your work"
b. The Internet, but only that part of a web
performed for that additional insured
site that is about goods, products or
and included within the " products- services for the purposes of inducing the completed operations hazard ", but sale of goods, products or services; or only if this Coverage Part provides c. Any other publication that is given coverage for " bodily injury" or widespread public distribution. property damage" included within the However, " advertisement" does not include:
products- completed operations
a. The design, printed material, informationhazard
or images contained in, on or upon the
b. With respect to the insurance afforded to
packaging or labeling of any goods or
these additional insureds, this insurance
products; or
does not apply to " bodily injury", " property
damage" or " personal an advertising
b. An interactive conversation between or
injury' arising out of the rendering of, or
among persons through a computer network.
the failure to render, any professional 2. " Advertising idea" means any idea for an architectural, engineering or surveying
advertisement ".
services, including: 3. " Asbestos hazard" means an exposure or 1) The preparing, approving, or failure to threat of exposure to the actual or alleged prepare or approve, maps, shop properties of asbestos and includes the mere drawings, opinions, reports, surveys, presence of asbestos in any form. field orders, change orders, designs or 4. " Auto" means a land motor vehicle, trailer or drawings and specifications; or semi - trailer designed for travel on public 2) Supervisory, inspection, architectural roads, including any attached machinery or or engineering activities. equipment. But " auto" does not include

10. Additional Insured — Co -Owner Of Insured
mobile equipment ".

Premises 5. " Bodily injury" means physical:

WHO IS AN INSURED under Section C. is a. Injury;
amended to include as an additional insured b. Sickness; or the person( s) or Organization( s) shown in the
c. DiseaseDeclarationsasanAdditionalInsured — CoOwner Of Insured Premises, but only with sustained by a person and, if arising out of the respect, to their liability as co -owner of the above, mental anguish or death at any time. premises shown in the Declarations. 6. " Coverage territory" means:

Page 20 of 24 ends

Gilroy City CouncilNovember 6, 2023

Gilroy City Council
November 6, 2023