Agenda packet — Gilroy City Council, February 26, 2024 (part 1 of 2)

February 26, 2024 | 6:00 PM Page 1 of 7 City Council Regular Meeting Agenda

CITY COUNCIL

REGULAR MEETING
AGENDA

CITY COUNCIL CHAMBERS, CITY HALL
7351 ROSANNA STREET, GILROY, CA
95020
MONDAY, FEBRUARY 26, 2024 | 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.

February 26, 2024 | 6:00 PM Page 2 of 7 City Council Regular Meeting Agenda

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

3. COUNCIL CORRESPONDENCE (Informational Only)

4. PRESENTATIONS TO THE COUNCIL

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

AGENDA BUT WITHIN THE SUBJECT MATTER JURISDICTION OF THE

CITY COUNCIL
February 26, 2024 | 6:00 PM Page 3 of 7 City Council Regular Meeting Agenda
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 them to City Hall, 7351 Rosanna Street, Gilroy, CA 95020, by 1:00 p.m. 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.

5. 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)
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, VTA Policy Advisory Committee
Council Member Cline – Gilroy Economic Development Partnership (alternate), Gilroy Gardens Board of Directors (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

6. FUTURE COUNCIL INITIATED AGENDA ITEMS
February 26, 2024 | 6:00 PM Page 4 of 7 City Council Regular Meeting Agenda

7. CONSENT CALENDAR
Items under the Consent Calendar are deemed routine and approved with one motion. If a Council member or a member of the public wishes for a separate discussion on an item, it must be requested for removal before the Council's approval vote. If removed, the item will be discussed in its original order.

7.1. Approval of the Action Minutes of the February 5, 2024 City Council Regular Meeting

7.2. Accept and File Quarterly Cash and Investment Report as of December 31, 2023

7.3. Approval of Final Map and PIA Tract 10594 700 W. 6th Street Subdivision

7.4. Approval of Notice of Acceptance of Completion for Property Improvement Agreement No. 2017-06, Ballybunion Dr and Santa Teresa Blvd Roundabout

7.5. Adoption of a Resolution of the City Council of the City of Gilroy Approving a Fiscal Year 2024 Budget Amendment for $20,813 for a County of Santa Clara Office of Emergency Management Training and Exercise Grant

7.6. Adoption of a Resolution of the City Council of the City of Gilroy Approving a Fiscal Year 2024 Budget Amendment of $33,080.66 for a County of Santa Clara Health Care System Grant

8. BIDS AND PROPOSALS

8.1. Award a Contract in the amount of $408,134 to Blue Raster for Bicycle and Pedestrian Geographic Information Systems Consultant Services and Approve a Budget Amendment in the Measure B Fund

1. Staff Report: Bryce Atkins, Assistant to the City Administrator

2. Public Comment

3. Possible Action:

Council:
a. Award a contract to Blue Raster for $408,134 for bicycle and pedestrian geographic information systems consultant services, and authorize the City Administrator to execute the agreement and any non-financial amendments to the agreement.
b. Adopt a resolution amending the FY24 adopted budget to increase appropriations in the Measure B Fund (Fund 212) by $408,134.

8.2. Award a Contract to Kimley-Horn and Associates, Inc. for the Design of Two Traffic Signals Project No. 24-RFP-PW-498 in the amount of $149,854, Approve a Project Contingency of $29,971, and Approve a Total Project Expenditure of $179,825 for Design Services

1. Staff Report: Heba El-Guindy, Public Works Director

2. Public Comment

3. Possible Action:

February 26, 2024 | 6:00 PM Page 5 of 7 City Council Regular Meeting Agenda
Award a contract to Kimley-Horn and Associates, Inc. in the amount of $149,854 and approve a project contingency of $29,971 for a total project expenditure of $179,825 for the Design of Two Traffic Signals Project No. 24- RFP-PW-498 and authorize the City Administrator to execute the contract and associated documents.

9. PUBLIC HEARINGS

10. UNFINISHED BUSINESS

11. INTRODUCTION OF NEW BUSINESS

11.1. Consideration of a Ceasefire Resolution

1. Staff Report: Bryce Atkins, Assistant to the City Administrator

2. Public Comment

3. Possible Action:

Council discussion and direction.

11.2. Consent of the Appointment of Beth Minor as Interim City Clerk (Retired Annuitant) Effective February 27, 2024, and Adoption of a Resolution of the City Council of the City of Gilroy Approving the Appointment and Employment Agreement

1. Staff Report: LeeAnn McPhillips, Administrative Services and Human Resources Director / Risk Manager

2. Public Comment

3. Possible Action:
a. Consent the City Administrator’s recommendation to appoint Beth Minor as Interim City Clerk (as a retired annuitant) effective February 27, 2024.
b. Adopt a Resolution of the City Council of the City of Gilroy approving the appointment of Beth Minor as Interim City Clerk (Retired Annuitant) pursuant to California Government Code Section 21221(h) and authorizing the City Administrator to execute the employment agreement.

11.3. Receive Fiscal Year 2023-2024 (FY24) Mid-Year Budget Report and Adopt a Budget Amendment Resolution

1. Staff Report: Harjot Sangha, Finance Director

2. Public Comment

3. Possible Action:
a. Receive Mid-Year Budget Report for FY24.
b. Adopt a Resolution of the City Council of the City of Gilroy Amending the Appropriations for FY24 in Fund 293.

February 26, 2024 | 6:00 PM Page 6 of 7 City Council Regular Meeting Agenda

11.4. FY24 and FY25 Departmental Workplan Updates

1. Staff Report: Bryce Atkins, Assistant to the City Administrator

2. Public Comment

3. Possible Action:

Council receive the report.

11.5. Council-Initiated Agenda Item Policy

1. Staff Report: Bryce Atkins, Assistant to the City Administrator

2. Public Comment

3. Possible Action:

Council provide direction regarding the draft policy.

11.6. Accept the Annual Comprehensive Financial Report for Fiscal Year-Ended June 30, 2023

1. Staff Report: Harjot Sangha, Finance Director

2. Public Comment

3. Possible Action:

Accept and file the report.

12. CITY ADMINISTRATOR'S REPORTS

13. CITY ATTORNEY'S REPORTS

14. CLOSED SESSION

14.1. CONFERENCE WITH LABOR NEGOTIATORS - COLLECTIVE BARGAINING UNIT Pursuant to GC Section 54957.6 and GCC Section 17A.11 (4); Collective Bargaining Units: Local 2805, IAFF Fire Unit Representing Gilroy Fire Fighters
City Negotiators: Jimmy Forbis, City Administrator, LeeAnn McPhillips, HR Director
Anticipated Issues(s) Under Negotiation: Wages, Hours, Benefits, Working Conditions; Memorandums of Understanding: City of Gilroy and Gilroy Fire Fighters Local 2805.

14.2. CONFERENCE WITH REAL PROPERTY NEGOTIATORS Pursuant to GC Sec. 54956.8 and GCC Sec.17A.8 (a) (2)
Property: Gilroy Gardens Theme Park, 3050 Hecker Pass Highway, Gilroy, CA (APN’s: 810-17-024, 810-17-026, 810-17-029, 810-17-030, 810-17-031, 810-18-002, 810-18-013, 810-19-005, 810-19-007, 810-19-010, 810-19-011, 810-19-014)
Negotiators: Jimmy Forbis, City Administrator
Other Party to Negotiations: Gilroy Gardens Family Theme Park, LLC Under Negotiations: Price and terms of payment for sale or lease.

February 26, 2024 | 6:00 PM Page 7 of 7 City Council Regular Meeting Agenda

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

FUTURE MEETING DATES
March 2024
4 Regular Meeting - 6:00 p.m
18 Regular Meeting - 6:00 p.m
April 2024
8 Regular Meeting - 6:00 p.m
15 Regular Meeting - 6:00 p.m
May 2024
6 Regular Meeting - 6:00 p.m
20 Regular Meeting - 6:00 p.m
Meetings are live streamed on the City of Gilroy’s website at gilroy.city/meetings and on YouTube at https://bit.ly/45jor03.

Access the 2024 City Council Meeting Calendar at https://bit.ly/3LLzY1n.

CAUTION: This email originated from an External Source. Please use proper judgment and caution when opening attachments, clicking links, or responding to this email.

From: Joseph P Thompson
To: Gilroy Dispatch Editor; Brad Kava; All Council Members; chamber of commerce Gilroy California; Tammy Brownlow; [email protected]; Mayor Marie Blankley; Thai Pham; SBC Board of Supervisors; [email protected]; Supervisors; Angela Curro; [email protected]; Sanbenitocog Info; RTDillon; [email protected]; Roxy Montana
Subject: EXTERNAL - CAHSRA"S LATEST "BUSINESS PLAN" UP FOR REVIEW, PUBLIC COMMENT: WILL OUR ELECTED LEADERS DEFEND THE TAXPAYERS? OR BETRAY US?
Date: Sunday, February 11, 2024 10:20:22 AM
GUEST EDITORIAL: LETTER TO EDITOR, DISPATCH, FREELANCE, MORGAN HILL TIMES--- PUBLIC COMMENT: NEXT MEETING; REAL OR VIRTUAL; REGULAR OR SPECIAL; PUBLIC

WORKSHOP

OR PRIVATE RETREAT---
Ah Mon Amis,
CAHSRA's new "business plan," which is up for review and public comment, is not a "business" plan,
it's a bankruptcy plan, an insolvency plan.

Like VTA, they would take about 1% of the total costs from passengers, and require taxpayers thru gas taxes to pay the balance 99% to make it go. Like COG, and all the other transit agencies.

If truth be told, it is a plan funded on taxpayer subsidies, for the most part, and a very small percentage
by fares paid by riders. It is a roadmap to a trainwreck, a financial disaster like VTA, Caltrain, Amtrak, ACE
Train, SMART Train, BART, Metroliner and Lite Rail boondoggles.

Conceived insolvent, born bankrupt, and kept running by ever-increasing taxpayers' dollars; hemorrhaging losses, berserk bloated wages, salaries, benefits and pensions for the public sector union members all the while motorists must pay higher gas taxes and vehicle fees to reward the fraud, waste and abuse at another public sector monstrosity, a Supermassive Black Hole.

Alternative private sector options exist, but the turf protectors at CAHSRA will never even discuss them.

In 2008 Californians voted for self-sufficient high speed rail, not a bigger Amtrak.

If CAHSRA adopts the new proposed "business plan," then they ought to next plan their Ch. 9 Bankruptcy because they will be insolvent, bankrupt, from the start. Better yet, a Ch. 7 liquidation bankruptcy would be called for since their method of crucifying taxpayers to make public sector transit work deserves to be put out of existence.

If it was a horse, we'd do the humane thing. Instead, they propose taxing motorists higher gas taxes, a Road to Serfdom like Lenin's ideas.

Joe Thompson
Past-Chair, Legislation Committee Transportation Lawyers Assn.

Past-President, 1999-2001, 2006, Gilroy-Morgan Hill Bar Assn.

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1 Beth Minor
From: Chris fowler <[email protected]>
Sent: Monday, February 12, 2024 12:27 PM
To: All Council Members
Subject: EXTERNAL - You've set a precedent
For Walmart's Drugging, Vandalism with Assault & Battery to include sexual abuse.

I don't care you have, I suspect it has something to do with employment or favors from those types.

Creepy but your Gilroy and it shows blatantly.

I don't appreciate your silence but none of Walmart s intended victims do.

Mr.Fowler
Get Outlook for Android
CAUTION: This email originated from an External Source. Please use proper judgment and caution when opening attachments, clicking links, or responding to this email.
2/26/2024 Regular Meeting
AGENDA ITEM #4.1

4.1 p. 13 of 478
1 Beth Minor
From: Chris fowler <[email protected]>
Sent: Wednesday, February 21, 2024 8:15 AM
To: All Council Members
Subject: EXTERNAL - Walmart Drugging attacks.

I'm purchasing a gun to defend myself from future Walmart Druggings and sexual battery as well police cover ups of these attacks.

You have failed to protect your community from police abuses as well Walmarts drugging raped.

Please don't blame for them causing their own murders as mines only for defense not some Walmart revenge.

I feel so sorry for your community having people like you protecting them.

Get Outlook for Android
CAUTION: This email originated from an External Source. Please use proper judgment and caution when opening attachments, clicking links, or responding to this email.
2/26/2024 Regular Meeting
AGENDA ITEM #4.1

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Page 1 of 9 ends

City of Gilroy
City Council Regular Meeting Minutes
Monday, February 5, 2024 | 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
There was none.

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, Council Member
Tom Cline, Council Member
Zach Hilton, Council Member
Carol Marques, Mayor Pro Tempore
Fred Tovar, Council Member
Marie Blankley, Mayor
Absent None

1.6. Orders of the Day
There were none.

1.7. Employee Introductions
Finance Director Sangha introduced Jeanette Cid, Accounting Assistant I.

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

3. PRESENTATIONS TO THE COUNCIL

3.1. 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 speakers spoke on items that were not on the agenda.

Ann Marie McCauley criticized the inadequacy of short-term services for the unhoused, stressing the need for long-term housing solutions to address homelessness effectively.

DRAFT

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Ron Kirkish criticized Plan Bay Area 2050 for its costly and progressive approach to societal issues, promising to detail its provisions in future council meetings.

Ana Mendoza requested the City Council review an ordinance related to mobile parks in Gilroy, indicating future discussions with tenants, and advocated for a resolution to support Palestinian community members, emphasizing the need to address hate and protect residents.

Robert Zepeda raised concerns about the COVID-19 vaccine, citing a specific obituary to argue that negative outcomes and deaths related to the vaccine are not being adequately communicated to the public.

The following members urged the City Council to adopt a ceasefire resolution for Israel and Palestine:

Noshaba Afzal
Reyna Deniz
Sal Akhter
Aisha Wahdani
Zain Yahya
Amina Kemici
Handy Abbass
There being no further speakers, Mayor Blankley closed Public Comment.

4. REPORTS OF COUNCIL MEMBERS
Council Member Bracco reported on Santa Clara County Library Joint Powers Authority. He also expressed gratitude towards St. Mary’s Catholic School children for sending letters and portraits.

Council Member Armendariz had no report.

Council Member Marques had no report.

Council Member Hilton on Silicon Valley Clean Energy Authority JPA Board Council Member Cline had no report.

Council Member Tovar thanked Gilroy Foundation Executive Director Jaclyn Muro for discussing collaboration opportunities with the City, focusing on downtown input, working with Gavilan College, and developing scholarships for Gilroy students pursuing advanced degrees. He also expressed gratitude for a card received from Saint Mary's Catholic School Mayor Blankley reported on VTA Board of Directors. She also shared her appreciation for personalized gestures from Saint Mary’s Catholic School for Catholic Schools Week.

5. COUNCIL CORRESPONDENCE

5.1. City Administrator Response to Request from the Local Agency Formation Commission (LAFCO) Board to Provide Implementation Plans for the 2023 Countywide Fire Service Review Recommendations
Council acknowledged the item.

6. FUTURE COUNCIL INITIATED AGENDA ITEMS
Council Member Tovar requested the Council to introduce a resolution on ceasefire in DRAFT

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Regular Meeting Minutes
Palestine and Israel. The item received majority support.

7. CONSENT CALENDAR
Council Member Cline requested that Item 7.3 be pulled from the Consent Calendar.

Mayor Blankley opened Public Comment.

Jeff Orth reported on Item 7.4 feedback from Fifth Street business owners on parklets, noting all are fine with its presence but suggest making it less obtrusive by cleaning up trash, removing the roof, lowering walls, and angling corners to reduce its size and visual impact.

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

Motion: Approve the Consent Calendar with the exclusion of Item 7.3.

RESULT: Pass
MOVER: Rebeca Armendariz, Council Member
SECONDER: Fred Tovar, Council Member
AYES: Council Member Armendariz, Council Member Bracco, Council Member Cline, Council Member Hilton, Mayor Pro Tempore Marques, Council Member Tovar, Mayor Blankley
NOES: None
ABSENT: None
ABSTAIN: None

7.1. Approval of the Action Minutes of the January 22, 2024 City Council Regular Meeting
A motion was made to approve the minutes.

7.2. Approve the Third Amendment to the Agreement with Swimming Swan LLC to Extend the Agreement by One Year for $250,348
A motion was made to approve the third amendment to the agreement with Swimming Swan LLC.

7.3. Tentative Map Time Extension Request No. 2, Without Any Changes to Project Approval, to Subdivide 8.36 Acres, Creating 14 Single-Family Residential Lots, Two Common Parcels, and One Public Park Parcel, Located at the Northerly End of Greenfield Drive, APN 808-20-008 (TM 16- 02)
The item was pulled out of the Consent Calendar for further discussion.

7.4. Extension and Maintenance of Existing Parklet Permits Until Adoption and Implementation of a Formal Downtown Parklet Program
A motion was made to approve the extension and maintenance of existing parklet permits until adoption and implementation of a formal downtown parklet program.

DRAFT

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Regular Meeting Minutes

7.5. Adopt a Resolution of the City Council of the City of Gilroy Authorizing Execution of Administering Agency-State Master Agreements for State and Federal-Aid Funded Projects
A motion was made to adopt the Resolution.

Enactment No.: Resolution No. 2024-05

7.6. Resolution of the City Council of the City of Gilroy Declaring Weeds a Nuisance
A motion was made to adopt the resolution.

Enactment No.: Resolution No. 2024-06

7.3. Tentative Map Time Extension Request No. 2, Without Any Changes to Project Approval, to Subdivide 8.36 Acres, Creating 14 Single-Family Residential Lots, Two Common Parcels, and One Public Park Parcel, Located at the Northerly End of Greenfield Drive, APN 808-20-008 (TM 16- 02)
Council Member Cline recused himself from the item due to a conflict of interest.

Motion: Adopt a resolution approving a 12-month time extension of Tentative Map TM 16-02, without any changes to project approval, to subdivide 8.36 acres, creating 14 single-family residential lots, two common parcels, and one public park parcel located at the northerly end of Greenfield Drive, APN 808-20-008 (TM 16-02).

RESULT: Pass
MOVER: Fred Tovar, Council Member
SECONDER: Dion Bracco, Council Member
AYES: Council Member Armendariz, Council Member Bracco, Council Member Hilton, Mayor Pro Tempore Marques, Council Member Tovar, Mayor Blankley
NOES: None
ABSENT: None
RECUSED: Council Member Cline

Enactment No.: Resolution No. 2024-04

8. BIDS AND PROPOSALS

8.1. Award a Contract to ASG Builders for the FY24 Annual CDBG Sidewalk/Curb Ramp Project No. 24-PW-285 in the amount of $97,290, Approve a Project Contingency of $19,458, and Approve a Total Project Expenditure of $116,748 for Construction
Interim Public Works Director Bjarke provided staff presentation and responded to Council Member questions.

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

DRAFT

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Motion: Award a contract to ASG Builders in the amount of $97,290 and approve a project contingency of $19,458 for the FY24 Annual CDBG Sidewalk/Curb Ramp Project (No. 24-PW-285) and authorize the City Administrator to execute the contract and associated documents.

RESULT: Pass
MOVER: Dion Bracco, Council Member
SECONDER: Rebeca Armendariz, Council Member
AYES: Council Member Armendariz, Council Member Bracco, Council Member Cline, Council Member Hilton, Mayor Pro Tempore
Marques, Council Member Tovar, Mayor Blankley
NOES: None
ABSENT: None
ABSTAIN: None

8.2. Award a Contract to Hexagon Transportation Consultants, Inc. for the First Street (SR152)/Kern Avenue Traffic Signal Design Project No. 24-RFP-PW494 in the amount of $264,685, Approve a Project Contingency of $39,703, and Approve a Total Project Expenditure of $304,388 for Design Services Interim Public Works Director Bjarke 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 of the City Council of the City of Gilroy amending the Fiscal Year 2023-2024 budget and appropriating an additional $121,821 from the Traffic Impact Fund (425) and award a contract to Hexagon Transportation Consultants, Inc. in the amount of $264,685 and approve a project contingency of $39,703 for a total project expenditure of $304,388 for the design and preparation of bid documents for the First Street (SR152)/Kern Avenue Traffic Signal Design Project No. 24-RFP-PW-494 and authorize the City Administrator to execute the contract and associated documents.

RESULT: Pass
MOVER: Tom Cline, Council Member
SECONDER: Rebeca Armendariz, Council Member
AYES: Council Member Armendariz, Council Member Bracco, Council Member Cline, Council Member Hilton, Mayor Pro Tempore
Marques, Council Member Tovar, Mayor Blankley
NOES: None
ABSENT: None
ABSTAIN: None

Enactment No.: Resolution No. 2024-07
DRAFT

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8.3. Award a Contract to HydroScience Engineers, Inc. for the Design of Water Utility Improvements Project No. 24-RFP-PW-497 in the amount of $842,790, Approve a Project Contingency of $126,419, and Approve a Total Project Expenditure of $969,209 for Design Services
Interim Public Works Director Bjarke 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 of the City Council of the City of Gilroy to increase the Fiscal Year 2023-2024 (FY24) and decrease the 2024-2025 (FY25) budget by $605,038 in the Water Fund (Fund 705) and award a contract to HydroScience Engineers, Inc. in the amount of $842,790 and approve a project contingency of $126,419 for a total project expenditure of $969,209 for the design and preparation of bid documents for Water Utility Improvements Project No. 24-RFP-PW-497 and authorize the City Administrator to execute the contract and associated documents.

RESULT: Pass
MOVER: Dion Bracco, Council Member
SECONDER: Fred Tovar, Council Member
AYES: Council Member Armendariz, Council Member Bracco, Council Member Cline, Council Member Hilton, Mayor Pro Tempore
Marques, Council Member Tovar, Mayor Blankley
NOES: None
ABSENT: None
ABSTAIN: None

Enactment No.: Resolution No. 2024-08

8.4. Award a Contract to Villalobos & Associates for the FY24 Annual Citywide Curb Ramp Project No. 24-PW-286 in the amount of $104,130, Approve a Project Contingency of $10,413, and Approve a Total Project Expenditure of $114,543 for Construction
Interim Public Works Director Bjarke provided staff presentation and responded to Council Member questions.

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

DRAFT

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Motion: Award a contract to Villalobos & Associates in the amount of $104,130, approve a project contingency of $10,413, approve a total project expenditure of $114,543 for the construction of the Fiscal Year 2024 (FY24) Annual Citywide Curb Ramp Project (No. 24-PW-286), and authorize the City Administrator to execute the contract and associated documents.

RESULT: Pass
MOVER: Fred Tovar, Council Member
SECONDER: Rebeca Armendariz, Council Member
AYES: Council Member Armendariz, Council Member Bracco, Council Member Cline, Council Member Hilton, Mayor Pro Tempore
Marques, Council Member Tovar, Mayor Blankley
NOES: None
ABSENT: None
ABSTAIN: None

9. PUBLIC HEARINGS
There were none.

10. UNFINISHED BUSINESS
There were none.

11. INTRODUCTION OF NEW BUSINESS

11.1. Approval to Enter into an Exclusive Negotiating Agreement with BayEcotarium for Potential Uses of the (Hecker Pass) Recreation Gateway Area
Economic Development Manager Valencia provided staff presentation and responded to Council Member questions.

Mayor Blankley opened Public Comment.

Ron Kirkish shared local concerns about selling Gilroy Gardens, stressing its value for tourism, economy, and youth employment, and urged the council to scrutinize the intentions of any potential buyers.

Jane Howard offered the Gilroy Garden’s board's support in negotiations with BayEcotarium and recommended Council Member Marques for the negotiating team due to her knowledge of the Gardens.

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

DRAFT

7.1 p. 21 of 478
February 5, 2024 | 6:00 PM Page 8 of 9 City Council
Regular Meeting Minutes
Motion: Approve an Exclusive Negotiating Rights Agreement between the City of Gilroy and Bay.org (BayEcotarium) and authorize the City Administrator to execute all related documents.

RESULT: Pass
MOVER: Fred Tovar, Council Member
SECONDER: Marie Blankley, Mayor
AYES: Council Member Armendariz, Council Member Bracco, Council Member Cline, Council Member Hilton, Mayor Pro Tempore
Marques, Council Member Tovar, Mayor Blankley
NOES: None
ABSENT: None
ABSTAIN: None
Motion: Establish an ad hoc committee with Mayor Blankley and Council Members Bracco and Cline, along with the City Administrator, to form the City's negotiation team.

RESULT: Pass
MOVER: Marie Blankley, Mayor
SECONDER: Dion Bracco, Council Member
AYES: Council Member Bracco, Council Member Cline, Mayor Pro Tempore Marques, Mayor Blankley
NAYS: Council Member Armendariz, Council Member Hilton, Council Member Tovar
ABSENT: None
ABSTAIN: None

12. CITY ADMINISTRATOR'S REPORTS
City Administrator Forbis provided his report.

13. CITY ATTORNEY'S REPORTS
There were none.

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

Mayor Blankley recessed the Regular Meeting at 7:22 PM.

The City Council convened into Closed Session at 7:29 PM.

A motion was made to stay in Closed Session. The vote was unanimous.

DRAFT

7.1 p. 22 of 478
February 5, 2024 | 6:00 PM Page 9 of 9 City Council
Regular Meeting Minutes

14.1. CONFERENCE WITH LABOR NEGOTIATORS – COLLECTIVE BARGAINING UNIT Pursuant to GC Section 54957.6 and GCC Section 17A.11 (4); Collective Bargaining Units: Local 2805, IAFF Fire Unit Representing Gilroy Fire Fighters
City Negotiators: Jimmy Forbis, City Administrator, LeeAnn McPhillips, HR Director
Anticipated Issues(s) Under Negotiation: Wages, Hours, Benefits, Working Conditions; Memorandums of Understanding: City of Gilroy and Gilroy Fire Fighters Local 2805.

No reportable action.

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.

No reportable action.

15. ADJOURN TO OPEN SESSION
Mayor Blankley reported out of Closed Session, as shown above.

16. ADJOURNMENT
Mayor Blankley adjourned the meeting at 7:56 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
DRAFT

7.1 p. 23 of 478

Page 1 of 2 ends

City of Gilroy

STAFF REPORT
Agenda Item Title: Accept and File Quarterly Cash and Investment Report as of December 31, 2023
Meeting Date: February 26, 2024
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
Accept and file the quarterly cash and investment report as of December 31, 2023.

BACKGROUND
The quarterly investment reports are prepared pursuant to the City’s investment policy to keep the City Council apprised of the City’s investment activities.

ANALYSIS
As of December 31, 2023, the City’s cash and investments totaled $179.3 million, of which $69.2 million is invested with the Local Agency Investment Fund (LAIF), and $103.0 million is invested in US Treasury securities. The fiscal year-to-date interest earnings are $3.6 million, which includes accrued interest as well as amortization of the discount on the US Treasury securities.

In addition, approximately $24.0 million is held by Fiscal Agents in the Trustee capacity for various bond issues such as bond proceeds, debt service reserves, bond payments, and post-employment benefits related to pension. The majority of this balance ($19.9 million) consists of the City of Gilroy’s share of the Acquisition and Construction Funds for the SCRWA Plant Expansion Project.

7.2 p. 24 of 478
Accept and File Quarterly Cash and Investment Report as of December 31, 2023 City of Gilroy City Council Page 2 of 2 February 26, 2024

FISCAL IMPACT/FUNDING SOURCE
There are no direct fiscal impacts to receiving and filing the quarterly cash and investment report. This is an activity included in the Finance Department’s annual workplan.

Attachments:

Cash and Investment Report as of December 31, 2023

7.2 p. 25 of 478
City of Gilroy
investment report
DeCember 2023

7.2 p. 26 of 478

TABLE OF CONTENTS

1. 2.
3 PORTFOLIO SUMMARY REPORT..........................................................................................1 - 3 INVESTMENTS BY ISSUER REPORT................................................................................... 4 - 5 INVESTMENT ACTIVITY…………………………………………………………………………….. 6 - 7 QUARTERLY MOVEMENT OVER THE LAST TWELVE MONTHS........................................ 8 MOVEMENT OVER THE LAST TWO YEARS - GRAPHICAL PRESENTATION.................... 9 INVESTMENT PORTFOLIO - GRAPHICAL PRESENTATION................................................ 10 - 11 INTEREST EARNINGS: FISCAL YEARS 2014 - 2024............................................................ 12 MONIES HELD BY FISCAL AGENTS REPORT………….……............................................... 13

4. 5.

6. 7.

8. 7.2
p. 27 of 478
City of Gilroy
7351 Rosanna Street
Gilroy, CA 95020
(408)846-0294
City of Gilroy
Portfolio Management
Portfolio Summary
December 31, 2023
Par
Value
69,150,574.70
Market
Value
69,150,574.70
87,107,237.72
15,118,396.95
Book
Value
69,150,574.70
87,926,764.41
15,118,396.95
% of
Poꢁolio

40.16 Days to
Maturity
ꢂM
360 Equiv.
ꢃM
365 Equiv.

3.960
Investments Term
481
ꢀIF 1 3.906

4.779

5.222
Treasury Notes Securities
Treasury Bill -Amoꢀizing
89,605,000.00
15,649,000.00

51.06 246
242

4.845

8.78 302 5.294
174,404,574.70 171,376,209.37 172,195,736.06 100.00% 273 147 4.467 4.529 Investments
Cash
Passbook/Checking
(not included in yield calculations)
7,124,122.94 7,124,122.94 7,124,122.94 0.000 0.000
Total Cash and Investments 181,528,697.64 178,500,332.31 179,319,859.00 273 147 4.467 4.529 Total Earnings December 31 Month Ending Fiscal Year To Date Current Year 659,703.34 3,567,670.12
Average Daily Balance
Effective Rate of Return
3 Month T-Bill Benchmark:
174,678,278.34

4.45%
173,802,553.12

4.07%

5.40%
NOTES:

1. See "Monies Held by Fiscal Agents" for additional amounts held in the capacity of a trustee.

2. The Maturity Aging Factor of the City's Poꢀfolio= 4.90 months.

3. The unrealized gain resulting from an increase in Market Values obtained from U.S. Bank of all Securities (excluding LAIF)= $923,003.76

4. The LAIF balance shown includes $5,430,581.32 in bond proceeds from the Gilroy Libraꢁ 201O Bonds that can be used exclusively ꢂr the construction of the library.

5. The City of Gilroy invested an additional $40M in US. Government Issues from Industrial LAIF.

This is to certiꢃ that this schedule of investments is in compliance with the City of Gilroy's investment policy and that there are adequate funds available to meet the City's budgeted and actual expenses for the next six months.
02/16/2024
H
ꢄꢅꢆꢇꢈꢉꢊꢋ ꢆꢅrꢉꢇd 07/01/2023-12/31/2023

Page 1 of 13 ends

7.2 p. 28 of 478
City of Gilroy
Portfolio Management
ꢀꢁꢂꢃꢁꢄꢅꢁ Detaꢅꢄs - Investments
December 31, 2023
Average
Balance
Purchase Stated
Rate
YTM
360
YTM Days to
365 Maturi�
Maturity
CUSIP Investment# Date
Issuer Date Par Value Market Value Book Value
LAIF
SYSLAIF01
SYSLAIF03
LAIF05
LAIF01
LAIF03
LAIF05
LAIF - City of Gilroy
LAIF - Industrial Dev. Auth.

LAIF LIBRARY
28,719,992.34
35,000,001.04
5,430,581.32
28,719,992.34
35,000,001.04
5,430,581.32
28,719,992.34
35,000,001.04
5,430,581.32

3.960

3.906

3.960

3.960 --3.90
-
6 --3.-960--
Subtotal and Average 68,827,994.05 69,150,574.70 69,150,574.70 69,150,574.70 - 3.906 3.960 Treasury Notes Securities
912828Z52
91282CGX3
91282CAB7
9128283V0
91282CEK3
9128284M9
91282CFA4
91282CDV0
912828YM6
912828X70
9128282N9
91282CDV0
USB-10
USB-11
USB-14
USB-15
USB-16
USB-17
USB-18
USB-5
USB-6
USB-7
USB-8
USB-9
U. S. TREASURY NOTES
U. S. TREASURY NOTES
U. S. TREASURY NOTES
U. S. TREASURY NOTES
U. S. TREASURY NOTES
U. S. TREASURY NOTES
U. S. TREASURY NOTES
U. S. TREASURY NOTES
U. S. TREASURY NOTES
U.S. TREASURY NOTES
U. S. TREASURY NOTES
U.S. TREASURY NOTES
05/01/2023
07/31/2023
11/07/2023
11/07/2023
11/07/2023
11/07/2023
11/07/2023
11/01/2022
11/01/2022
11/01/2022
11/01/2022
01/31/2023
8,419,000.00
8,186,000.00
8,915,000.00
506,000.00
11,938,000.00
646,000.00
12,078,000.00
7,720,000.00
7,527,000.00
7,612,000.00
7,586,000.00
8,472,000.00
7,994,093.07
8,019,414.90
8,276,471.26
491,636.97
11,825,104.94
627,576.31
11,912,302.15
7,581,040.00
7,218,844.62
7,462,119.72
7,379,129.78
8,319,504.00
8,182,296.60
8,075,095.07
8,276,471.26
491,636.97
11,825,104.94
627,576.31
11,912,302.15
7,697,454.79
7,357,566.41
7,550,121.75
7,485,243.53
8,445,894.63

1.375

3.875

0.250

2.500

2.875

3.000

0.875

1.500

2.000

2.125

4.037

4.881

4.970

5.171

5.366

5.059

5.361

4.513

4.093

4.949

5.039

5.243

5.441

5.129

5.436

4.576
396 01/31/2025
485 04/30/2025
577 07/31/2025
396 01/31/2025
120 04/30/2024
485 04/30/2025
212 07/31/2024
30 01/31/2024
304 10/31/2024
120 04/30/2024
212 07/31/2024

4.296 4.355

4.521

4.466

4.584

4.528

0.875 --4.6 9
-
3 --4.-758---30
Subtotal and Average 87,823,269.87 89,605,000.00 87,107,237.72 87,926,764.41 01/31/20244.779 4.845 246 Treasury Bill -Amoꢀizing
912797JB4
912797HE0
USB-12
USB-13
U.S. TREASURY BILL
U.S. TREASURY BILL
11/02/2023
11/02/2023
3,401,000.00
12,248,000.00
3,387,507.66
11,730,889.29
3,387,507.66
11,730,889.29

4.925 5.055 5.125 29 01/30/2024

5.000 --5.2 7
-
0 --5.-343--3-04
Subtotal and Average 10/31/2024
Total and Average
15,085,902.82
174,678,278.34
15,649,000.00 15,118,396.95
171,376,209.37
15,118,396.95
172,195,736.06

5.222 5.294 242
174,404,574.70 4.467 4.529 147

Page 2 of 13 ends

7.2 p. 29 of 478
City of Gilroy
Portfolio Management
Portfolio Details - Cash
December 31, 2023
Average
Balance
Purchase
Date
Stated
Rate
YTM
360
YTM Days to
CUSIP Investment# Issuer Par Value Market Value 365 Maturiꢀ 6,618,763.21
Book Value
Wells Fargo Checking
SYSWFB WELLS FARGO WELLS FARGO 6,618,763.21 6,618,763.21 0.000 0.000 Other Banks-Misc.Account-Petty Cash

SYSUNDERCOV

SYS/MUFG

SYSPETTY

SYS/USBANK

SYSBAIL

SYSDISCOVERY
SYSICS

UNDERCOV
MUFG
PETTY

USB-CASH
BAIL

DISCOVERY
ICS

CHASE BANK

MUFG / UNION BANK

PETTY CASH
07/01/2023
07/01/2023
07/01/2023
07/01/2023
07/01/2023
07/01/2023
07/01/2023
07/01/2023
698.30

0.00 2,661.56
627.46
698.30

0.00 2,661.56
627.46

0.000

0.000
U. S. BANK

WELLS FARGO

WORKING CASH

0.00 0.00 0.00
121,621.01
378,156.40
1,595.00
121,621.01
378,156.40
1,595.00
121,621.01
378,156.40
1,595.00

0.000 0.000
SYSWORKING WORKING 0.000 0.000
Average Balance o.oo
Total Cash and Investments 174,678,278.34 181,528,697.64 178,500,332.31 179,319,859.00 4.467 4.529 147

Page 3 of 13 ends

7.2 p. 30 of 478
City of Gilroy
7351 Rosanna Street
Gilroy, CA 95020
(408)846-0294
City of Gilroy
Investments by Issuer
Active Investments
Grouped by Type - Sorted by Type
December 31, 2023
Investment
Class
Current
Bale
ꢂarket ꢁꢂ Redemption Call
CUSIP Investment# Securiꢀ Type Remaining Cost Market Value 365 Collateral Pate Pate Type: CHECKING ACCOUNTS

CHASE BANK
SYSUNDERCOV UNDERCOV Other Banks-isc.AccountPey Cash Fair 698.30 698.30
69830 12/31/2023
Subtotal and Average 698.30
LAIF - City of Gilroy
SYSLAIF01 LAIF01 LAIF Fair 28,719,992.34
28,719,992.34

3.960

3.960
28,719,992.34 12/31/2023
28,719,992.34

3.960
Subtotal and Average 3.960
LAIF - Industrial Dev. Auth.

SYSLAIF03 LAIF03 LAIF
LAIF
Fair 35,000,001.04
35,000,001.04
35,000,001.04 12/31/2023
35,000,001.04

3.960
Subtotal and Average 3.960

LAIF LIBRARY
LAIF05 LAIF05 Fair 5,430,58132
5,430,581.32
5,430,581.32 12/31/2023
5,430,581.32

3.960
Subtotal and Average 3.960

MUFG / UNION BANK
SYS/MUFG MUFG OherBanksisc.AccounPey Cash Fair 0.00

0.00 0.00
Subtotal and Average 0.00

PETTY CASH
SYSPETTY PETTY Other Banks-iscAccounPey Cash Fair 2,661.56 2,661.56
2,661.56 12/31/2023
Subtotal and Average 2,661.56

WELLS FARGO

SYSWFB WELLS FARGO
BAIL
Wells Fargo Checking Fair 6,618,763.21

0.00 6,618,763.21 12/31/2023
SYSBAIL OherBanksiscAccounPey Cash 0.00
OherBanksiscAccountPey Cash
Other Banks-iscAccount-Pey Cash
Fair
Fair
Fair

SYSDISCOVERY
SYSICS

DISCOVERY
ICS
121,621.01
378,156.40
121,621.01 12/31/2023
378,156.40 12/31/2023

Page 4 of 13 ends

7.2 p. 31 of 478
City of Gilroy
Investments by Issuer
Grouped by Type - Soed by Type
Investment
Class
Current
Bil
Market YTM Redemption
365
Call
Remaining Cost Market Value
7,118,540.62
CUSIP Investment#

WORKING
Security Type D

Cati cam Collateral
Subtotal and Average 7,118,540.62

WORKING CASH
SYSWORKING Other Banks-Misc.AccountPey Cash Fair 1,595.00 1,595.00 12/31/2023 Subtotal and Average 1,595.00 1,595.00
Type: NOT CALLABLE
U.S. BANK
SYS/USBANK USB-CASH Other Banks-Misc.AccounPey Cash Fair 627.46 627.46 12/31/2023 Subtotal and Average 627.46 627.46
U.S. TREASURY BILL
912797JB4
912797HE0
USB-12
USB-13
Treasury Bill -Amoizing
Treasury Bill -Amortizing
Fair
Fair
3,359,592.48
11,628,827.96

4.925

5.000
3,386,987.88 12/31/2023
11,772,287.68 12/31/2023

5.125 01/30/2024

5.343 10/31/2024
29 304
Subtotal and Average 14,988,420.44 15,159,275.56 5.340 244 U. S. TREASURY NOTES
912828252
91282CGX3
91282CAB7
9128283V0
91282CEK3
9128284M9
91282CFA4
91282CDVO
912828YM6
912828X70
9128282N9
91282CDV0
USB-10 Treasury Notes Securities
Treasury Notes Securities
Treasury Notes Securities
Treasury Notes Securities
Treasury Notes Securities
Treasury Notes Securities
Treasury Notes Securities
Treasury Notes Securities
Treasury Notes Securities
Treasury Notes Securities
Treasury Notes Securities
Treasury Notes Securities
Fair
Fair
Fair
Fair
Fair
Fair
Fair
Fair
Fair
Fair
Fair
Fair
8,035,851.31
8,039,879.90
8,215,606.30
489,642.10
11,773,361.37
625,487.03
11,869,314.50
7,377,312.75
7,120,136.45
7,330,453.97
7,282,780.07
8,154,384.72

1.375

3.875

0.250

2.500

2.875

3.000

0.875

1.500

2.000

2.125

0.875
8,122,735.39 12/31/2023
8,112,489.72 12/31/2023
8,349,075.80 12/31/2023
494,139.36 12/31/2023
11,828,886.68 12/31/2023
631,891.36 12/31/2023
11,935,479.60 12/31/2023
7,693,443.20 12/31/2023
7,319,179.53 12/31/2023
7,532,302.36 12/31/2023
7,458,024.18 12/31/2023
8,442,856.32 12/31/2023

4.093 01/31/2025

4.949 04/30/2025

5.039 07/31/2025

5.243 01/31/2025

5.441 04/30/2024

5.129 04/30/2025

5.436 07/31/2024

4.576 01/31/2024

4.355 10/31/2024

4.584 04/30/2024

4.528 07/31/2024

4.758 01/31/2024
396
485
577
396
120
485
212
30 304
120
212
30 USB-11
USB-14
USB-15
USB-16
USB-17
USB-18
USB-5
USB-6
USB-7
USB-8
USB-9
Subtotal and Average
Total and Average
86,314,210.47 87,920,503.50
179,354,476.70

4.936 250
177,577,328.55 4.392 142

Page 5 of 13 ends

7.2 p. 32 of 478
City of Gilroy
7351 Rosanna Street
Gilroy, CA 95020
(408)846-0294
City of Gilroy
Purchases Report
Sorted by Type -Type
October 1, 2023 - December 31, 2023
Sec.
e Issuer
Original Purchase Principal
Purchased
Accrued Interest Rate at
at Purchase
Purchase
Maturity Ending
Investment # Type T Par Value Date Book Value CUSIP Payment Periods Date YTM yp

NOT CALLABLE
912797JB4
912797HE0
91282CAB7
9128283V0
91282CEK3
9128284M9
91282CFA4
USB-12
USB-13
USB-14
USB-15
USB-16
USB-17
USB-18
NOT
NOT
NOT
NOT
NOT
NOT
NOT

ATD USTB

TRC USTN

TRC USTN
3,401,000.00 11/02/2023 01/30 -At Maturity 3,359,592.48 11,628,827.96
8,215,606.30

4.925 01/30/2024

5.000 10/31/2024

0.250 07/31/2025

5.055

5.270

5.039
3,387,507.66
12,248,000.00 11/02/2023 10/31 -At Maturity 11,730,889.29 8,276,471.26
491,636.97
11,825,104.94
627,576.31
8,915,000.00 11/07/2023 01/31 - 07/31
506,000.00 11/07/2023 01/31 - 07/31
11,938,000.00 11/07/2023 04/30 -Final Pmt.
646,000.00 11/07/2023 04/30 - 10/31
12,078,000.00 11/07/2023 01/31 - 07/31
5,995.82
3,403.13
5,739.42
357.16
489,642.10
11,773,361.37
625,487.03

2.500 01/31/2025

2.500 04/30/2024

2.875 04/30/2025

3.000 07/31/2024

5.243

5.441

5.129
11,869,314.50 97,477.34 5.436 11,912,302.15
Subtotal
Total Purchases
49,732,000.00 47,961,831.74
47,961,831.74
112,972.87
112,972.87
48,251,488.58
49,732,000.00 48,251,488.58

Page 6 of 13 ends

7.2 p. 33 of 478
City of Gilroy
7351 Rosanna Street
Gilroy, CA 95020
(408)846-0294
City of Gilroy
Maturity Report
Sorted by Maturity Date
Amounts due during October 1, 2023 - December 31, 2023
Sec.
e Issuer
Maturity Purchase
Date
Rate

Book Value
at Maturi
Maturity
Proceeds
Net
CUSIP Investment# Type T Par Value Date at Maturi Interest Income yp 91282CDD0 USB-4 NOT TRC USTN 7,771,000.00 10/31/2023 11/01/2022 0.375 7,771,000.00 14,570.63 7,785,570.63 14,570.63 Total Maturities 7,771,000.00 7,771,000.00 14,570.63 7,785,570.63 14,570.63

Page 7 of 13 ends

7.2 p. 34 of 478
Quarterly Movement over the Last 4 Quarters

DESCRIPTION MAR
2023

JUN SEP DEC
2023
% of Total
2023 2023 DEC
LAIF:

CITY OF GILROY

GILROY INDUSTRIAL DEV AGENCY

LIBRARY
36,912,724
74,431,995
5,304,370
45,121,206
74,233,655
5,340,121
30,016,288
74,821,324
5,382,048
28,719,992
35,000,001
5,430,581
69,150,575

16.68%

20.33%

3.15%
SUB TOTAL 116,649,089 124,694,981 110,219,660 40.16%

CERTIFICATE OF DEPOSITS
US GOVERNMENTAL AGENCIES:

TREASURY NOTES SECURITIES

TREASURY BILL-AMORTIZING

FEDERAL NATIONAL MORTGAGE AGCY

FEDERAL AGRICULTURAL MORTGAGE AGCY

FEDERAL HOME LOAN BANK
60,916,089
0 61,547,102
0 62,171,563
0 87,926,764
15,118,397

51.06%

8.78%

FEDERAL HOME LOAN MORTGAGE CORP

FEDERAL FARM CREDIT BANK
SUB TOTAL 60,916,089 61,547,102 62,171,563 103,045,161 59.84% GRAND TOTAL (Book Value) 177,565,178 186,242,083 172,391,223 172,195,736 100.00% Note: The LAIF balance shown for Dec 2023, includes $5,430,581.32 in bond proceeds from the Gilroy Library 2010 Bonds that can be used exclusively for the construction of the library.

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City of Gilroy
Investments From:

December 31, 2021 to December 31, 2023
200,000,000
180,000,000
160,000,000
140,000,000
120,000,000
100,000,000
80,000,000
60,000,000
40,000,000
20,000,000
0 December
2021
March
2022
June
2022
September
2022
December
2022
March
2023
June
2023
September
2023
December
2023
LAIF US GOVT. AGENCIES

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Book Value by Investment Type
As of December 31, 2023
Treasury Bill ‐ Amortizing, Cash or Equivelent, $7M, 4% $15M, 8%
LAIF, $69M, 39%
Treasury Notes Securities,
$88M, 49%
Value of Portfolio: $179,319,859

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Portfolio By Maturity
As Of December 31, 2023
Medium Term (1 to 5 years),
$26M, 14%
LAIF and Bank Checking Accounts,
$76M, 43%
Short Term (less than 1 year),
$77M, 43%
Value of Portfolio: $179,319,859

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City of Gilroy
Interest Earnings FY2014 - FY2024
Interest Earnings
8,000,000
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0 13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 22/23 23/24 est* Fiscal Years
*Estimate of full year interest earnings for FY23/24

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CITY OF GILROY

MONIES HELD BY FISCAL AGENTS
DESCRIPTION VALUE **
AS OF 12/31/23
HIGHWAY 152 SPECIAL TAX BONDS SERIES 2018
SPECIAL TAX FUND - Bond REVENUE - HELD BY U.S. BANK - GL Acct 810-10435 GOLDMAN SACHS MONEY MARKET FUND #466, CUSIP #3814W265
RESERVE FUND - HELD BY U.S. BANK - GL Acct 810-10430
6,970.33
GOLDMAN SACHS MONEY MARKET FUND #466, CUSIP #3814W265
SPECIAL TAX FUND - INTEREST ACCOUNT - HELD BY U.S. BANK - GL Acct 810-10550 GOLDMAN SACHS MONEY MARKET FUND #466, CUSIP #3814W265
SPECIAL TAX FUND - PRINCIPAL ACCOUNT - HELD BY U.S. BANK - GL Acct 810-10445 GOLDMAN SACHS MONEY MARKET FUND #466, CUSIP #3814W265
295,473.62

0.12 0.63
GILROY PUBLIC FACILITIES FINANCING AUTHORITY REFUNDING LEASE REV BONDS 2020A REVENUE FUND - HELD BY U.S. BANK - GL Acct 520-10435
GOLDMAN SACHS FINANCIAL SQUARE MMKT #466, CUSIP #38141W265 INTEREST ACCOUNT - HELD BY U.S. BANK - GL Acct 520-10440 GOLDMAN SACHS FINANCIAL SQUARE MMKT #466, CUSIP #38141W265 PRINCIPAL ACCOUNT - HELD BY U.S. BANK - GL Acct 520-10445 GOLDMAN SACHS TR FINL SQ GV ADM #466, CUSIP #38141W265
158.97
197.61
547.39
GILROY PUBLIC FACILITIES FINANCING AUTHORITY REFUNDING LEASE REV BONDS 2022A INTEREST ACCOUNT - HELD BY U.S. BANK - GL Acct 510-10440 FIRST AM.GOVT OB FD CL D, CUSIP #31846V401, U.S. TREASURY BILL #912796C31 PRINCIPAL ACCOUNT - HELD BY U.S. BANK - GL Acct 510-10445

45.11 FIRST AM.GOVT OB FD CL D, CUSIP #31846V401, U.S. TREASURY BILL #912796C31 141.08 GILROY PUBLIC FACILITIES FINANCING AUTHORITY WASTEWATER REV BONDS 2021A BOND PAYMENT FUND - HELD BY U.S. BANK - GL ACCT 700-10428 FIRST AM.GOVT OB FD CL D, CUSIP #31846V401, U.S. TREASURY BILL #912796C31, ACQUISITION AND CONSTRUCTION FUND - HELD BY U.S. BANK - GL Acct 700-10426 FIRST AM.GOVT OB FD CL D, CUSIP #31846V401
1,382.83
1,380.58
LAIF MONEY MARKET FUND #5399989H9 19,896,321.57
GILROY POST - EMPLOYMENT BENEFITS TRUST HELD BY PARS 3,804,562.68 TOTAL 24,007,182.52
** Market Values reported by U.S. Bank

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Page 1 of 2 ends

City of Gilroy

STAFF REPORT
Agenda Item Title: Approval of Final Map and PIA Tract 10594 700 W. 6th Street Subdivision
Meeting Date: February 26, 2024
From: Jimmy Forbis, City Administrator
Department: Public Works
Submitted By: Heba El-Guindy, Public Works Director
Prepared By: Jorge Duran, Development Engineer
STRATEGIC PLAN GOALS Promote Economic Development Activities

RECOMMENDATION
Approve the Final Map and Property Improvement Agreement No. 2023-02 for the 700 W 6th Street Development, Tract 10594, APN’s 799-26-033, 799-26-037, 799-26-049, 799-26-050, 799-26-051, and 799-269-052.

BACKGROUND
On May 11, 2022, Warmington Residential submitted an application requesting a tentative map to subdivide 3.70 acres into 19 single family residential lots.

On July 7, 2022, the Planning Commission considered Tentative Map 22-01 in accordance with the Gilroy Zoning Code, and other applicable standards and regulations, and found that it conformed to the City’s General Plan and recommend Tentative Map 22-01 for Council approval.

On August 1, 2022, Warmington Residential received Tentative Map Approval (TM 22- 01) to subdivide 3.70 acres into 19 single family residential lots with 0.26 acres of private open space, and 0.35 acres to be used for a private street. The subject property is located at 700 W 6th Street, Tract 10594, APN’s 799-26-033, 799-26-037, 799-26- 049, 799-26-050, 799-26-051, and 799-269-052. [Reference: Resolution No. 2022-57 and TM 22-01]

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Approval of Final Map and PIA Tract 10594 700 W. 6th St Subdivision City of Gilroy City Council Page 2 of 2 February 26, 2024 1 4 DISCUSSION
The owner and developer are requesting City Council approval of the Tract 10594 Final Map and to enter into a Property Improvement Agreement (PIA 2023-02) with the City for the project’s public improvements. These improvements include new street construction, grading, paving, curb, gutter, sidewalk, landscape, lighting, storm drain, water, sewer, undergrounding of overhead utilities, and necessary utility extension and connection to serve the development. As part of the Property Improvement Agreement the developer is required to provide Faithful Performance and Payment Bonds of $2,201,728.00 for 100% of the estimated construction cost of the improvements.

The Tract 10594 Final Map and Property Improvement Agreement 2023-02 are ready for recording with Santa Clara County upon approval by Council.

ALTERNATIVES
Council may deny the request to approve the Property Improvement Agreement (PIA 2023-02). Staff does not recommend this option because it will impose unnecessary delay for the development of the site.

FISCAL IMPACT
There is no net impact to the General Fund. Plan check and inspection fees have been collected to cover the costs associated with this action. The Developer has submitted bonding and insurance for the above-referenced Property Improvement Agreement and Final Map.

Attachments:

1. Exhibit A - Vicinity Map

2. Exhibit B - PIA

3. Exhibit C - Final Map

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-1-
RECORDING REQUESTED BY:

City of Gilroy
WHEN RECORDED, MAIL TO:

City Clerk
City of Gilroy
7351 Rosanna Street
Gilroy, CA 95020
(SPACE ABOVE THIS LINE FOR RECORDER’S USE)
Property Improvement Agreement No. 2023-02
Heritage on 6th – TRACT 10594
APN: 799-26-033, 037, 049, 050, 051, 052
Warmington 6th Street Gilroy LLC

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PROPERTY IMPROVEMENT AGREEMENT

RESIDENTIAL

AGREEMENT FOR IMPROVEMENT OF STREETS AND

OTHER PUBLIC WORKS FACILITIES
Property Improvement Agreement No. 2023-02
This Property Improvement Agreement (“Agreement”) is made and entered into this ____ day of ___________________ 20____, by and between the City of Gilroy, a municipal corporation, herein called the “City,” and Warmington 6th Street Gilroy LLC, herein called the “Developer”.

WHEREAS, a final map of subdivision or building permit (Site Clearance) application has been submitted to the City for approval and acceptance, covering certain real estate and property improvements on the Subdivision known as and called Heritage on 6
th, a legal description of which is attached hereto
and incorporated herein as Exhibit “A” (the “Property”), and as described in the project improvement plans entitled 700 W. 6th Street Improvement Plans Tract 10594, as Exhibit B.

WHEREAS, the Owner is the fee owner of the Property and requires certain utilities and public works facilities in order to service the Property under the minimum standards established by the City and, WHEREAS, the City, by and through its City Council, has enacted certain Codes, Ordinances and Resolutions and certain Rules and Regulations have been promulgated concerning the subject matter of this Agreement and,
WHEREAS, the City has certain responsibilities for maintenance and operation of such utilities and public service facilities after acceptance by City, and for providing the necessary connecting system, general plant and appurtenances, and the City is agreeing to discharge those responsibilities, provided that Developer has faithfully and fully complied with all of the terms, covenants, conditions to be performed by Developer pursuant to this Agreement.

NOW THEREFORE, in consideration of the foregoing premises and in order to carry on the intent and purpose of said Codes, Ordinances, Resolutions and Regulations and established policies of the City and the laws of the State of California and the United States of America it is agreed by and between the parties as follows:

SECTION 1
That all Codes, Ordinances, Resolutions, Rules and Regulations and established policies of the City and the laws of the State of California and the United States of America concerning the subject matter of this Agreement are hereby referred to and incorporated herein to the same effect as if they were set out at length herein. Said Codes, Ordinances, Resolutions, Rule and Regulations include, but are not limited to, the following: The Code of the City of Gilroy, the current Zoning Ordinance, and the currently adopted Uniform Building Code.

SECTION 2
The Developer agrees:
a. To perform each and every provision required by the City to be performed by the Developer in each and every one of said Codes, Ordinances, Resolution, Rules and other Regulations and established

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policies of the City and the laws of the State of California and the United States of America, including without limitation, the California Labor Code and California Public Contract Code. Developer further agrees and acknowledges that it is its obligation to determine whether, and to what extent, the work performed under this Agreement is subject to any Codes, Ordinances, Resolutions, Rules and other Regulations and established policies of the City and the laws of the State of California, the United States of America, the California Labor Code and Public Contract Code relating to public contracting and prevailing wage laws.
b. To grant to the City without charge, free and clear of encumbrances, any and all easements and rights of way in and to the Property necessary for the City in order that its water, electricity, storm drain, and/or sewer lines in or to said Property may be extended. c. To indemnify, defend with counsel of City’s choice and hold the City free and harmless from all suits, fees, claims, demands, causes of action, costs, losses, damages, liabilities and expenses (including without limitation attorneys’ fees) incurred by City in connection with (i) any damage done to any utility, public facility or other material or installation of the City on said Property which the Developer or any contractor or subcontractor of the Developer, or any employee of the foregoing, shall do in grading or working upon said Property; or (ii) arising or resulting directly or indirectly from any act or omission of Developer or Developer’s contractors, or subcontractors, or any employee of the foregoing in connection with the work performed by them in connection with this Agreement, including without limitation all claims relating to injury or death of any person or damage to any property.
d. To construct and improve all public works facilities and other improvements described in this Agreement and the improvement plans submitted to the City of Gilroy entitled 700 W. 6th Street Improvement Plans Tract 10594 shown as Exhibit B, in furtherance of this Agreement on file with the City of Gilroy. All construction and improvements shall be completed in accordance with all standards established in the Codes, Ordinances, Resolutions, Rules and Regulations and established policies of the City and the laws of the State of California and the United States of America and this agreement, and in accordance with the grades, plans, and specifications approved by the City Engineer.

Developer shall furnish two good and sufficient bonds, a Payment Bond on a form provided by the City and a Faithful Performance Bond, both of which shall be secured from a surety company admitted to do business in California. Each bond shall set forth a time period for performance by the contractor of its obligations and the terms and conditions on which the City may obtain the proceeds of the bond.

The Faithful Performance Bond shall be in an amount not less than one hundred percent (100%) of the total estimated amount payable for the improvements described in this Agreement, and shall secure payment to City and the Developer of any loss due to the default of the contractor or its inability or refusal to perform its contract. The performance bond shall by its terms remain in full force and effect for a period of not less than one year after completion of the improvements by Developer and acceptance of the improvements by City, to guarantee the repair and replacement of defective material and faulty workmanship. Upon completion of the improvements by Developer and acceptance of the improvements by City, Developer may substitute for the performance bond securing maintenance described above, a separate maintenance bond issued by an admitted surety in the amount of ten percent (10%) of the total contract price of the improvements (provided that the amount of said bond shall not be less than One Thousand Dollars ($1,000) to cover the one-year maintenance period.

The Payment Bond shall be in an amount not less than one hundred percent (100%) of the total estimated amount payable for the improvements described in this Agreement. The Payment Bond shall secure the payment of those persons or entities to whom the Developer may become legally

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indebted for labor, materials, tools, equipment, or services of any kind used or employed by the contractor or subcontractor in performing the work, or taxes or amounts to be withheld thereon. The Payment Bond shall provide that the surety will pay the following amounts should the Contractor or a Subcontractor fail to pay the same, plus reasonable attorneys’ fees to be fixed by the court if suit is brought upon the bond: (1) amounts due to any of the persons named in California Civil Code Section 9100; (2) amounts due under the Unemployment Insurance Code with respect to work or labor performed for the improvements described in this Agreement; and (3) any amounts required to be deducted, withheld, and paid over to the Employment Development Department from the wages of employees of the Contractor and Subcontractors pursuant to Section 13020 of the Unemployment Insurance Code with respect to the work and labor. The Payment Bond shall, by its terms, inure to the benefit of any of the persons named in Civil Code Section 3181 so as to give a right of action to those persons or their assigns in any suit brought upon the bond.

Simultaneously with the submission of its building permit application (Site Clearance), the Developer shall submit the following for both the surety that furnishes the Payment Bond and the surety that furnishes the Faithful Performance Bond: (1) a current printout from California Department of Insurance’s website (www.insurance.ca.gov) showing that the surety is permitted to do business in the State; or (2) a certificate from the Clerk of the County of Santa Clara that the surety’s certificate of authority has not been surrendered, revoked, canceled, annulled, or suspended or in the event that it has, that renewed authority has been granted.
e. Except as otherwise expressly provided in this Agreement, all plan check and inspection fees which are payable by Developer pursuant to the attached comprehensive fee schedule are due and payable to the City prior to Council approval of the final map of the subdivision. Upon approval of the final map or the building permit covering the real estate to be improved and before any work is done therein, the Developer shall pay to the City all other sums payable by Developer pursuant to the attached comprehensive fee schedule.
f. At all times during the term of this Agreement and until the improvements constructed by Developer are accepted by City, Developer shall, at no cost to City obtain and maintain (a) a policy of general liability and property damage insurance in the minimum amount of One Million Dollars ($1,000,000), combined single limit for both bodily injury and property damage; (b) workers’ compensation insurance as required by law; and (c) broad form “Builder’s Risk” property damage insurance with limits of not less than 100% of the estimated value of the improvements to be constructed by Developer pursuant to this Agreement.

All such policies shall provide that thirty (30) days written notice must be given in advance to City prior to termination, cancellation, or modification. The insurance specified in (a) above shall name City as an additional insured and the insurance specified in (c) shall name City as a loss payee, and shall provide that City, although an additional insured or loss payee, may recover for any loss suffered by reason of the acts or omissions of Developer or Developer’s contractors or subcontractors or their respective employees. Developer hereby waives, and Developer shall cause each of its contractors and subcontractors to waive, all rights to recover against City for any loss or damage arising from a cause covered by the insurance required to be carried pursuant to this Agreement or actually carried by Developer in connection with the work described in this Agreement, and will cause each insurer to waive all rights of subrogation against City in connection therewith. All policies shall be written on an occurrence basis and not on a claim made basis and shall be issued by insurance companies acceptable to City. Prior to commencing any work pursuant this Agreement, Developer shall deliver to City the insurance company’s certificate evidencing the required coverage, or if required by City a copy of the policies obtained.

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SECTION 3
That all the provisions of this Agreement and all work to be done pursuant to the terms of this Agreement are to be completed to City’s satisfaction within two year from and after the date and year of this Agreement first above written. Developer shall maintain such public works facilities and other improvements described in this Agreement at Developer’s sole cost and expense at all times prior to acceptance by City in a manner which will preclude any hazard to life or health or damage to property.

SECTION 4
That the faithful and prompt performance by the Developer of each and every term and condition contained herein is made an express condition precedent to the duty of the City to perform any act in connection with this transaction, and the failure, neglect or refusal of the Developer to so perform, or to pay any monies due hereunder when due shall release the City from any and all obligations hereunder and the City, at its election, may enforce the performance of any provision herein, or any right accruing to the City or may pursue any remedy whatsoever it may have under applicable laws or the Codes, Ordinances, Resolutions, Rules and Regulations of the City, in the event of any such default by Developer.

SECTION 5
That this Agreement, including without limitation the general stipulations outlined in Section 6 below, is an instrument affecting the title or possession of the real property and runs with the land. Except as expressly provided in the second sentence of Item 34 of the general stipulations set forth in Section 6 below (relating to the payment of reimbursement to the original Developer named in this Agreement), all the terms, covenants and conditions herein imposed shall be binding upon and inure to the benefit of City, Developer, the successors in interest of Developer, their respective successors and permitted assigns and all subsequent fees owners of the Property. The obligations of the Developer under this Agreement shall be the joint and several obligations of each and all of the parties comprising Developer if Developer consists of more than one individual and/or entity. Upon the sale or division of the Property, the terms of this Agreement shall apply separately to each parcel and the fee owners of each parcel shall succeed to the obligations imposed on Developer by this Agreement.

SECTION 6

1. That the following general stipulations shall be completed subject to the approval of the Public Works Director/City Engineer.

2. The Project shall comply with all Tentative Map conditions and applicable mitigation measures as contained in City Council Resolution 2022-57 (TM 22-01approval).

3. All work within the public right-of-way shall be subject to the approval of the City Engineer.

4. The Developer shall perform all work in compliance with the City of Gilroy Specifications Standards Design Criteria and is subject to all laws of this community by reference. Street improvements and the design of all storm drainage, sewer lines, and all street sections shall be in accordance with City Standards Plans and shall follow the most current City Master plan for streets and each utility.

5. The developer shall defend, indemnify, and hold harmless the City, its City Council, Planning Commission, agents, officers, and employees from any claim, action, or proceeding against the City or its City Council, Planning Commission, agents, officer, and employees to attack, set aside, void, or annul an approval of the City, City Council, Planning Commission, or other board, advisory

7.3 p. 48 of 478
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agency, or legislative claim, action, or proceeding against it, and will cooperate fully in the defense.

This condition is imposed pursuant to California Government Code Section 66474.9.

6. No building permit shall be issued in connection with this project if the Owner or Developer of such development (i) is not in compliance with the City’s Residential Development Ordinance (City Zoning Ordinance Sections 50.60 et seq.) referred to as the RDO, any conditions of approval issued in connection with such development or other City requirements applicable to such development; or (ii) is in default under any agreement entered into with the City in connection with such development pursuant to the RDO. The project must also comply with any of condition of exemption granted from the RDO, including but not limited to time limits in obtaining City approvals and completion of construction of the dwelling units.

7. The City shall be notified at least three (3) weeks prior to the start of any construction work and at that time the contractor shall provide a project schedule and a 24-hour emergency telephone number list.

8. At least three weeks prior to commencement of work, the developer shall post the site and mail to owners of property within (500’) five hundred feet of the exterior boundary of the project site, to the homeowner associations of nearby residential projects and to the Engineering Division, a notice that construction work will commence on or around the stated date. The notice shall include a list of contact persons with name, title, phone number and area of responsibility. The person responsible for maintaining the list shall be included. The list shall be current at all times and shall consist of persons with authority to initiate corrective action in their area of responsibility. The names of individuals responsible for dust, noise and litter control shall be expressly identified in the notice.

9. The developer shall create prior to construction, for City Engineer approval, a construction staging plan that addresses the ingress and egress location for all construction vehicles, employee parking and material storage area separate from occupied residential units. All construction vehicles, employee parking, and material storage shall be contained with the project boundary and there shall be no impact to public right of way or easements.

10. All area within 15-ft of the existing south boundary wall shall not be disturbed until a wall assessment is complete to determine that wall is not impacted by the site improvements. Wall assessment shall be prepared by the Geotechnical Engineer and approved by the City prior to any construction or disturbance within 15-ft of the existing boundary wall. Install temporary orange construction fence 15-ft from existing wall along project boundary.

11. Schedule the construction of improvements along existing public roads so that the work affecting vehicular traffic is completed with a minimum interruption to traffic.

12. All work shall be coordinated so that the existing residents on all adjacent streets have access to their properties.

13. Before construction utilizing combustible materials may proceed, an all-weather access must be provided to within 150 feet of the building site; and at least one in service fire hydrant must be available within 150 feet of each portion of the site wherein this construction is to take place.

Location of the fire hydrants will be determined by the Fire Chief.

14. Developer shall submit for City approval a critical path construction schedule from start of construction to final occupancy, which shall include a detailed phasing plan (including traffic control

7.3 p. 49 of 478
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for each proposed phase). Schedule shall be approved prior to start of construction. Any deviation from the approved construction schedule and phasing plan shall be coordinated with the City Engineer. Deviating from the approved construction schedule and phasing plan without prior coordination with the City Engineer may prolong issuance of further building permits. In addition, a 5-week look-ahead schedule shall be provided weekly for general site inspection coordination and construction management.
(a) Upon request by the City Engineer, the developer shall provide information for public outreach purposes, which may include maps and schedules for each phase of construction.

15. One hard copy and electronic copy of the approved/stamped PG&E Joint Trench Plans shall be submitted to the Engineering Division for approval. PG&E approved plans shall incorporate any and all City comments related to Joint Trench scope of work. The Developer will not be allowed to commence joint trench work “at-risk” without PG&E and City approval. The Developer assumes responsibility for any required redesign, and all costs associated with the redesign and additional city review resulting from final PG&E-approved joint trench plans. Design revisions and ultimate joint trench construction shall be completed to the satisfaction of the City Engineer.

16. No utility boxes are allowed to be constructed in the sidewalk.

17. The developer shall obtain the required Habitat Conservation Plan (HCP) Permit and pay the applicable fees prior to the issuance of grading permit work or improvement plan approval.

18. Site preparation and fill construction shall be conducted under the observation of, and tested by, a licensed soils or geotechnical engineer. A report shall be filed with the City of Gilroy stating that all site preparation and fill construction meets the requirements of the geotechnical investigation. This shall be subject to review and approval by the Building Division. [CBC]

19. All grading operations and soil compaction activities shall be per the approved soils report and shall meet with the approval of the City Engineer.

20. New and existing utility lines, appurtenances, and associated equipment, including but not limited to electrical transmission, street lighting, and cable television shall be required to be placed underground. [Municipal Code Section 21, Article V]

21. Construction activity shall be restricted to the period between 7:00 a.m. to 7:00 p.m. Mondays through Fridays. Saturday work is not allowed but can be requested for specific activities in writing. If approved, work hours shall be 9:00 a.m. to 7:00 p.m. and only with approval by the City Engineer and if City inspection services are available. Saturday work, if approved, will also require additional inspection overtime fees. No work shall be done on Sundays and City Holidays. The City Engineer will apply additional construction period restrictions, as necessary, to accommodate standard commute traffic along arterial roadways and along school commute routes.

22. Any damage resulting from project construction operations to existing city infrastructure on or adjacent to the subject property shall be repaired to the satisfaction of the City Engineer, at the full expense of the developer/contractor. This shall include slurry seal, overlay, street reconstruction, and repair to curb, gutter and sidewalk, driveway approach if reasonably deemed warranted by the City Engineer.

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23. Offsite Frontage W. 6th Street and Princevalle Street improvements as shown in the 700 W. 6th Street Improvement Plans Tract 10594 shall be constructed as the first phase of work and shall be completed prior to the first building occupancy. This includes all pavement widening, pavement grinding and paving, microsurface, signing, striping, lighting, joint trench, underground rule 20, curb, gutter, sidewalk, landscape, storm drain, water, sanitary sewer, and stormwater management facilities.

24. It is the responsibility of the project’s homeowner’s association or other legal entity to maintain the landscaping fronting W 6th Street and Princevalle Street . Prior to the issuance of the first building permit or as otherwise determined by the City Engineer, the Developer of the site shall enter into a Landscape Installation and Maintenance Agreement with the City for landscaping within the City right-of-way. The Developer shall record this agreement, against the property or properties involved, with the County of Santa Clara and it shall be binding on all subsequent owners of land.

25. Grading and any site work between September 15 and April 15 will require a winterized grading work plan. The winterized grading work plan shall identify all active and non-active areas on site and shall include a 7-month schedule during the winter months. All non-active areas shall be hydroseeded or approved soil seal. All active areas shall identify and describe the following:
construction activities, equipment, number of construction workers, and a written plan describing how these areas will be protected in any rain event. Site work of any kind and grading will not be allowed after September 15 unless a winterized grading plan is approved by the City Engineer.

26. This project is subject to post-construction stormwater quality requirements per Section 27D of the Gilroy Municipal Code.

27. Storm water BMP Operation and Maintenance Agreement (a) Prior to the issuance of any building permit requiring stormwater management BMPs or as otherwise determined by the City Engineer, the owner(s) of the site shall enter into a formal written Stormwater BMP Operation and Maintenance Agreement with the City. The City shall record this agreement, against the property or properties involved, with the County of Santa Clara and it shall be binding on all subsequent owners of land served by the storm water management treatment BMPs. The City-standard Stormwater BMP Operation and Maintenance Agreement will be provided by Public Works Engineering. (b) This Agreement shall require that the BMPs not be modified and BMP maintenance activities not alter the designed function of the facility from its original design unless approved by the City prior to the commencement of the proposed modification or maintenance activity. (c) This Agreement shall also provide that in the event that maintenance or repair is neglected, or the stormwater management facility becomes a danger to public health or safety, the city shall have the authority to perform maintenance and/or repair work and to recover the costs from the owner.
(d) All on-site stormwater management facilities shall be operated and maintained in good condition and promptly repaired/replaced by the property owner(s), an owners’ or homeowners’ association or other legal entity approved by the City. (e) Any repairs or restoration/replacement and maintenance shall be in accordance with Cityapproved plans.

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(f) The property owner(s) shall develop a maintenance schedule for the life of any stormwater management facility and shall describe the maintenance to be completed, the time period for completion, and who shall perform the maintenance. This maintenance schedule shall be included with the approved Stormwater Runoff Management Plan.

28. Stormwater BMP Inspections will be required for this project and shall adhere to the following:
(a) The property owner(s) shall be responsible for having all stormwater management facilities inspected for condition and function by a knowledgeable third party. (b) Unless otherwise required by the City Engineer or designee, stormwater facility inspections shall be done at least twice per year, once in Fall, in preparation for the wet season, and once in Winter. Written records shall be kept of all inspections and shall include, at minimum, the following information:

1. Site address;

2. Date and time of inspection;

3. Name of the person conducting the inspection;

4. List of stormwater facilities inspected;

5. Condition of each stormwater facility inspected;

6. Description of any needed maintenance or repairs; and

7. As applicable, the need for site re-inspection.

29. Upon completion of each inspection, an inspection report shall be submitted to Public Works Engineering no later than October 1st for the Fall report, and no later than March 15th of the following year for the Winter report.

30. A minimum of one exterior monument shall be set. Additional monuments can be required by the City Engineer or City Surveyor as deemed necessary. Location of monuments shall be tied out prior to work.

31. In accordance with the California Professional Land Surveyors’ Act (Business and Professions Code) Chapter 15 Sections 8771 and 8725, California Penal Code 605, and California Government Code 27581, the developer, their employees, subcontractors, and/or any person performing construction activities that will or may disturb an existing roadway/ street monument, corner stake, or any other permanent surveyed monument shall show all current monuments on the plans and shall ensure that a Corner Record and/or Record of Survey are filed with the County Surveyor Office prior to disturbing said monuments. All disturbed or destroyed monuments shall be reset and filed in compliance with Section 8771 at the developer’s sole expense.

32. Bonding as required by section 2.d of this agreement will be accepted for the proposed improvements for an amount of $2,201,728 as shown on the attached Cost Estimate spreadsheet.

33. If there are any reimbursements payable to the Developer, they must be specifically identified in this Agreement. Any such reimbursements shall be payable to the original Developer named in this Agreement above and shall not inure to the benefit of any subsequent owners of all or any portion of the Property. All reimbursements payable to Developer shall be subject to the City’s reimbursement policies and ordinances in effect from time to time, including without limitation any expiration dates identified in such policies and ordinances. Such reimbursement shall be solely contingent upon the availability of the City’s Traffic Impact Fee Funds and in no case shall the reimbursement be paid

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beyond ten (10) years after the execution of the Agreement. In addition to any other conditions, requirements and limitations set forth in the City’s reimbursement policies and ordinances from time to time, (i) in no event shall any reimbursements be payable to Developer if City determines in its sole and absolute discretion from time to time that there are not sufficient reserves then on hand in the specific reimbursement fund from which Developer’s reimbursement is payable, over and above any amounts anticipated to be required to be expended from such reimbursement fund, which reserves, at a minimum, are equal to at least half of the remaining average yearly anticipated expenditures of such reimbursement fund as determined by City from time to time; (ii) City may, in its sole and absolute discretion, make partial reimbursement payments to Developer in yearly increments, as determined by City; and (iii) City may defer payments in any given year if projects deemed by City to be of high importance are determined by City, in its sole and absolute discretion, to be warranted or necessary, and the funds in such reimbursement fund are designated by the City for use on such projects of high importance.

The Developer shall be reimbursed for the following traffic improvements and impact fee credits.

Reimbursements for traffic improvements will be made as a credit to the Traffic Impact Fees.

Reimbursements for the existing condition impact fee credits will be made as credit to their respective Impact Fee. Refer to the impact fee credit in Exhibit C City of Gilroy Public Works Department Engineering Division Cost Estimate (attached).
a) W 6th. Street and Princevalle Intersection Curb Ramps: Total of two (2) curb ramps to be installed on the north-east and south-east quadrants of the intersection. The reimbursable amount for this work is $10,000.00.
b) W 6th Street Pavement Restoration: Total of 8150 sq-ft of 2-inch grind and pave, north half of W. 6th Street from the west boundary line to the intersection of W 6th & Princevalle Street.

The reimbursable amount for this street segment is $40,750.00.

SECTION 7
That the attached Development Cost Schedule enumerates all fees and their extensions.

1. TOTAL AMOUNT DUE CITY $ 830,581.52

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CITY OF GILROY
By:

Jimmy Forbis
City Administrator
Date: ________________________________
ATTEST:

Thai Pham, City Clerk
APPROVED AS TO FORM:

Andrew L. Faber, City Attorney

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DEVELOPER:

Warmington 6th Street Gilroy LLC.

By:

Name: Michael G. Riddlesperger
Title: Chief Financial Officer
Date:

NOTE: If Developer is a corporation, the complete legal name and corporate seal of the corporation and the corporate titles of the persons signing for the corporation shall appear above.

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EXHIBIT A
Real property in the City of Gilroy, County of Santa Clara, State of California, described as follows:

PARCEL ONE:

A PORTION OF LOS ANIMAS RANCH LOT 16, AS SHOWN ON MAP NO. 7 ACCOMPANYING THE FINAL REPORT OF THE REFEREES IN THE PARTITION ACTION OF WENDY MILLER, ET AL, VS. MASSEY

THOMAS, ET AL, IN THE SUPERIOR COURT OF THE STATE OF CALIFORNIA, IN AND FOR THE COUNTY OF SANTA CLARA, CASE NO. 5536, AND BEING ALSO A PORTION OF THAT CERTAIN 169.06 ACRE TRACT CONVEYED BY MILLER & LUX INCORPORATED, A CORPORATION, TO F.E. STELLING BY DEED DATED JANUARY 27, 1927 AND RECORDED IN BOOK 296 OF OFFICIAL RECORDS, PAGE 249, RECORDS OF SANTA CLARA COUNTY, CALIFORNIA, MORE PARTICULARLY DESCRIBED AS FOLLOWS:

BEGINNING AT A POINT AT THE INTERSECTION OF THE SOUTHERLY LINE OF SIXTH STREET WITH

PROLONGATION OF THE WESTERLY LINE OF PRINCEVALLE STREET AND RUNNING THENCE ALONG THE WESTERLY LINE OF PRINCEVALE STREET SOUTH 20°00' EAST 383.50 FEET; THENCE LEAVING THE WESTERLY LINE OF PRINCEVALLE STREET SOUTH 70°00' WEST 202.88 FEET; THENCE NORTH 76°30' WEST 226.82 FEET; THENCE NORTH 20°01' WEST 258.27 FEET TO A POINT IN THE SOUTHERLY LINE OF SIXTH STREET; THENCE ALONG SAID SOUTHERLY LINE OF SIXTH STREET NORTH 69°49' EAST 392.11 FEET TO THE POINT OF BEGINNING.

EXCEPTING THEREFROM THAT PORTION THEREOF DESCRIBED AS FOLLOWS:

BEGINNING AT A POINT IN THE SOUTHERLY LINE OF SIXTH STREET AT THE NORTHEAST CORNER OF LOT 14 OF TRACT NO. 4466, LOMA ORCHARD, UNIT NO 1, AS SHOWN ON MAP THEREOF FILED FOR RECORD IN BOOK 235 OF MAPS, AT PAGE 42, RECORDS OF SANTA CLARA COUNTY, AND RUNNING THENCE ALONG THE SOUTHERLY LINE OF SIXTH STREET NORTH 65°59' EAST 121.00 FEET; THENCE LEAVING SAID SOUTHERLY LINE SOUTH 11°30' EAST 19.00 FEET; THENCE ALONG A CURVE TO THE LEFT, FROM A TANGENT BEARING OF SOUTH 11°30' EAST HAVING A RADIUS OF 260 FEET THROUGH A CENTRAL ANGLE OF 66°30' FOR A DISTANCE OF 301.77 FEET; THENCE ALONG A NON-TANGENT LINE SOUTH 89°00' EAST 73.50 FEET; THENCE ALONG A CURVE TO THE RIGHT FROM A TANGENT BEARING OF NORTH 2°00' WEST HAVING A RADIUS OF 200 FEET, THROUGH A CENTRAL ANGLE OF 36°50' FOR A DISTANCE OF 128.57 FEET; THENCE ALONG A NON-TANGENT LINE NORTH 35°57'20" EAST 13.16 FEET TO THE WESTERLY LINE OF PRINCEVALLE STREET; THENCE ALONG SAID WESTERLY LINE SOUTH 20°00' EAST 188.50 FEET; THENCE LEAVING THE WESTERLY LINE OF PRINCEVALLE STREET SOUTH 70°00' WEST 202.88 FEET; THENCE NORTH 76°30' WEST 226.82 FEET; THENCE NORTH 20°01' WEST 258.27 FEET TO THE POINT OF BEGINNING.

PARCEL TWO:

ALL OF PARCEL A, AS SHOWN UPON THAT CERTAIN MAP ENTITLED, "PARCEL MAP PTN. OF LAS ANIMAS RANCHLOT NO. 16 LAS ANIMAS RANCHO PARTITION SUIT, MAP NO. 7 SUPERIOR COURT CASE NO. 5536", WHICH MAP WAS FILED FOR RECORD IN THE OFFICE OF THE RECORDER OF THE COUNTY OF SANTA CLARA, STATE OF CALIFORNIA, ON DECEMBER 12, 1980 IN BOOK 477 OF MAPS, AT PAGES 1 AND 2.

PARCEL THREE:

A PORTION OF PARCELS B AND D IN THE CITY OF GILROY, STATE OF CALIFORNIA AS SHOWN ON THE PARCEL MAP FILED DECEMBER 12, 1980 IN BOOK 477 OF MAPS, AT PAGES 1 AND 2 AND MORE PARTICULARLY DESCRIBED AS FOLLOWS:

BEGINNING AT AN IRON PIPE AT A COMMON CORNER OF PARCEL A AND D DISTANT S. 20°01' E., 258.27 FEET FROM THE SOUTHERLY RIGHT OF WAY OF SIXTH STREET (80 FEET WIDE) AS SHOWN ON SAID MAP; THENCE ALONG THE WESTERLY LINE OF PARCEL D AS SHOWN ON SAID MAP, S. 13°30' W.,

44.81 FEET; THENCE ALONG THE NEW COMMON LINE OF PARCELS B AND D, S. 76°30' E., 181.30 FEET;

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THENCE ALONG A CURVE TO THE LEFT WITH A RADIUS OF 300 FEET, THROUGH A CENTRAL ANGLE OF 07°51'52", AN ARC LENGTH OF 41.18 FEET; THENCE FROM A TANGENT BEARING OF N. 53°56'38" E., ALONG A CURVE TO THE LEFT WITH A RADIUS OF 245 FEET, THROUGH A CENTRAL ANGLE OF 43°41'08", AN AND LENGTH OF 186.80 FEET; THENCE ALONG THE PERIMETER OF PARCEL B AS SHOWN ON SAID MAP, N. 89°00' W. 73.50 FEET; THENCE ALONG A CURVE TO THE RIGHT WITH A RADIUS OF 260 FEET, THROUGH A CENTRAL ANGLE OF 27°45'31" AN ARC LENGTH OF 125.97 FEET; THENCE S. 47° W., 68.79 FEET; THENCE S. 49° E., 15.00 FEET; THENCE S. 38° W., 85.00 FEET; THENCE N. 76°30' W.,

27.00 FEET TO THE POINT OF BEGINNING.

THIS LEGAL DESCRIPTION IS MADE PURSUANT TO THAT CERTAIN CERTIFICATE OF COMPLIANCE LOT LINE ADJUSTMENT, RECORDED MAY 3, 1990, AS DOCUMENT NO. 10510443 OF OFFICIAL RECORDS.

PARCEL FOUR:

A PORTION OF PARCELS B, C AND D IN THE CITY OF GILROY, STATE OF CALIFORNIA AS SHOWN ON THE PARCEL MAP FILED DECEMBER 12, 1980 IN BOOK 477 OF MAPS, AT PAGE 1 AND 2, AND MORE PARTICULARLY DESCRIBED AS FOLLOWS:

BEGINNING AT THE NORTHERLY CORNER OF PARCEL C ON THE WESTERLY RIGHT OF WAY OF PRINCEVALLE STREET (60 FEET WIDE), DISTANT S. 20° E., 195.07 FEET FROM THE SOUTHERLY RIGHT OF WAY OF SIXTH STREET (80 FEET WIDE) AS SHOWN ON SAID MAP; THENCE ALONG THE WESTERLY RIGHT OF WAY OF PRINCEVALLE STREET, S. 20°E., 250.58 FEET; THENCE S. 70° W., 100.00 FEET; THENCE ALONG A CURVE TO THE RIGHT WITH A RADIUS OF 300 FEET, THROUGH A CENTRAL ANGLE OF 25°38'08", AN ARC LENGTH OF 134.23 FEET; THENCE FROM A TANGENT BEARING OF N. 53°57'58" E., ALONG THE ARC OF A CURVE TO THE LEFT WITH A RADIUS OF 245 FEET, THROUGH A CENTRAL ANGLE OF 43°41'08", AN ARC LENGTH OF 186.80 FEET TO THE POINT OF REVERSE CURVATURE WITH A CURVE TO THE RIGHT WITH A RADIUS OF 200 FEET, THROUGH A CENTRAL ANGLE OF 36°50' AN ARC LENGTH OF 128.57 FEET; THENCE N. 35°57'20" E., 13.17 FEET TO THE POINT OF BEGINNING.

THIS LEGAL DESCRIPTION IS MADE PURSUANT TO THAT CERTAIN CERTIFICATE OF COMPLIANCE LOT LINE ADJUSTMENT, RECORDED MAY 3, 1990, AS DOCUMENT NO. 10510443 OF OFFICIAL RECORDS.

APN: 799-26-033 (Parcel One);
799-26-037 (Parcel Two);
799-26-049 and 799-26-050 (Parcel Three); and
799-26-051 and 799-26-052 (Parcel Four)

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EXHIBIT B – Cover Sheet Improvement Plans

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EXHIBIT C

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City of Gilroy

STAFF REPORT
Agenda Item Title: Approval of Notice of Acceptance of Completion for Property Improvement Agreement No. 2017-06,
Ballybunion Dr and Santa Teresa Blvd Roundabout
and Traffic Impact Fund (TIF) Reimbursement
Meeting Date: February 26, 2024
From: Jimmy Forbis, City Administrator
Department: Public Works
Submitted By: Heba El-Guindy, Public Works Director
Prepared By: Heba El-Guindy, Public Works Director
STRATEGIC PLAN GOALS Promote Economic Development Activities

RECOMMENDATION

1. Approve the Notice of Acceptance of completion for Property Improvement Agreement No. 2017-06, Ballybunion Dr and Santa Teresa Blvd Roundabout.

2. Adopt a resolution amending the Fiscal Year 2023-24 (FY24) budget in the Traffic Impact Fee Fund (Fund 425) to appropriate $2,336,800, for Traffic Impact Fee Project reimbursement, pursuant to the Traffic Impact Fee Reimbursement Policy.

BACKGROUND
In May 2014, Filice Family Estate, a California Limited Partnership (Developer), received Tentative Map approval which included the Ballybunion Dr and Santa Teresa Blvd Roundabout. [Reference: Resolution No. 2014-19, TM 13-08]. The approvals were to construct the roundabout, utilities, landscaping, lighting, and walls.

On September 18, 2017, Lennar Homes of California, Inc., (formerly CalAtlantic Group, Inc.) received Council approval of Property Improvement Agreement 2017-06 for the development of the Ballybunion Dr and Santa Teresa Blvd Roundabout and related Public Improvements.

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Notice of Acceptance of Completion for Ballybunion and Sta Teresa Roundabout City of Gilroy City Council Page 2 of 3 February 26, 2024 1 5 The developer has paid plan check and inspection fees and submitted bonding and insurance for the above-referenced property improvement agreement.

DISCUSSION
Chapter 21, Article III, Section 21.81 of the City Code allows the City Council to authorize a reduction in the payment and performance bonds that the builder provided prior to the Property Improvement Agreements being accepted by Council. The amount of the bond reduction is consistent with the amount of work completed at the time of the request. A Maintenance Bond in the amount of 10% of the construction cost ensures that defective or damaged improvements will be corrected during the one-year maintenance warranty period. The project’s actual improvement costs have been reviewed to ensure that the Maintenance Security amount covers any anticipated issue with the installed improvements.

The developer, Lennar Homes of California, Inc. (formerly CalAtlantic Group, Inc.), requests a reduction of the Ballybunion Dr and Santa Teresa Blvd Roundabout Faithful Performance and Payment Bonds to a Maintenance Bond. This Maintenance Bond is 10% of the bond’s value for the Roundabout improvements bond, reducing it from the original $1,217,545 to $121,754.50 The original security provided for 100% of the estimated construction cost and payment for roundabout improvements, which consist of new pavement, grading, curb, gutter, sidewalk, utilities, landscape, electrical lighting, utility, storm, water, and sewer.

The project is fully complete, and the Notice of Completion document is ready for acceptance and recordation with Santa Clara County. Attachment 3 contains the Notice of Completion.

The Ballybunion Dr and Santa Teresa Blvd Roundabout is included in the list of roadway improvements that make up the City’s Traffic Impact Fee Program. As such, the cost to build the improvements are eligible to be reimbursed from the Traffic Impact Fee Fund, pursuant to the Traffic Impact Fee (TIF) Reimbursement Policy. Staff recommends City Council adopt the attached resolution amending the appropriations in the Traffic Impact Fee Fund (425) in the amount of $2,336,800 so that the developer can be duly reimbursed.

ALTERNATIVES
Council may deny the request to approve the Notice of Acceptance and reduction of bonds or not adopt the budget amendment resolution. However, the developer has completed all improvements per the approved Property Improvement Agreement No. 2017-06 and the TIF reimbursement policy. Staff does not recommend either of these alternative as it will impose unnecessary delay for the site’s development and put the City at legal risk for not complying with the established reimbursement policy.

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Notice of Acceptance of Completion for Ballybunion and Sta Teresa Roundabout City of Gilroy City Council Page 3 of 3 February 26, 2024 1 5 FISCAL IMPACT/FUNDING SOURCE
There is no net impact to the General Fund. The developer has paid plan check and inspection fees and submitted bonding and insurance for the above-referenced Property Improvement Agreement. The Faithful Performance and Payment Bonds held as security would be reduced from the original $1,217,545 to $121,754.50. In addition, the budget amendment would appropriate $2,336,800 in the Traffic Impact Fee Fund (Fund 425) for the TIF reimbursement.

Attachments:

1. Exhibit A – Vicinity Map

2. Exhibit B – PIA

3. Exhibit C – Notice of Completion

4. Exhibit D – Resolution

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SEPARATE PAGE PURSUANT TO GOVT. CODE 27361.6
RECORDING REQUESTED BY:

City of Gilroy
WHEN RECORDED MAIL TO:

City Clerk
City of Gilroy
7351 Rosanna Street
Gilroy, CA 95020

NOTICE OF ACCEPTANCE OF COMPLETION
NOTICE IS HEREBY GIVEN that work agreed to be performed under the property agreement between the City of Gilroy, a municipal corporation, whose address is 7351 Rosanna Street, Gilroy, CA 95020, and the Contractor mentioned below who developed said project, was accepted as completed by the City of Gilroy on the .

Project No.: Property Improvement Agreement No. 2017-06, Santa Teresa/Ballybunion/Luchessa Roundabout and Class I Trail
Contractor Name: Lennar Homes of California (Formerly CalAtlantic Group, Inc.) Contractor Address: 2603 Camino Ramon, 525, San Ramon, CA 94583 Surety on Contract: Harco National Insurance Company
Location of Project: Intersection of Santa Teresa/Ballybunion/Luchessa Description of Work: Road, Trail, and Utility Improvements Interest of City: x Owner in Fee: Vendee under Agreement to Purchase; Lessee; x Owner of Easements; Holder of License; x Owner of Streets; x Owner of Utilities, Water, Sewer, Storm Systems
Owner's Name: City of Gilroy
Work Done:_Public Improvements include construction of the Santa Teresa/Ballybunion/Luchessa Roundabout, Class I Trail, and utilities.____________________________________________ This notice is given in accordance with the provisions of Section 3093 of the Civil Code of the State of California.

The undersigned declares:

That he is an officer of the City of Gilroy, that he has read the foregoing Notice of Acceptance of Completion and knows the contents thereof; and that the same is true of his own knowledge, except as to those matters that he believes it to be true.

I certify under penalty of perjury that the foregoing is true and correct. Executed at the City of Gilroy, County of Santa Clara, State of California on February_26, 2024.

CITY OF GILROY

STATE OF CALIFORNIA

COUNTY OF SANTA CLARA BY
Jorge Duran
TITLE Interim City Engineer.

This document is for the benefit of the City of Gilroy. Request for Recordation without fee is made in accordance with Section 27383 of the Government Code of the State of California.

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SEPARATE PAGE PURSUANT TO GOVERNMENT CODE SECTION 27361.6 RECORDING REQUESTED BY: )
)
City of Gilroy )
)
)
)
WHEN RECORDED, MAIL TO: )
City Clerk )
City of Gilroy )
7351 Rosanna Street )
Gilroy, CA 95020 )
RECORDED WITHOUT FEE PER CALIFORNIA GOVERNMENT CODE SECTION 27383 (SPACE ABOVE THIS LINE FOR RECORDER'S USE)

NOTICE OF ACCEPTANCE OF COMPLETION
PROPERTY IMPROVEMENT AGREEMENT NO. 2017 – 06
Santa Teresa/Ballybunion/Luchessa Roundabout and Class I Trail DEVELOPER NAME : Lennar Homes of California (Formerly CalAtlantic Group, Inc.)

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RESOLUTION NO. 2024-XX

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF GILROY AMENDING THE BUDGET FOR
THE CITY OF GILROY FOR 2023-2024 AND

APPROPRIATING FUNDS IN THE TRAFFIC IMPACT

FEE FUND
WHEREAS, the City Administrator prepared and submitted to the City Council a budget for the City of Gilroy for Fiscal Years 2023-2024 and 2024-2025, and the City Council carefully examined, considered and adopted the same on June 5, 2023; and WHEREAS, City Staff has prepared and submitted to the City Council proposed amendments to said budget for Fiscal Year 2023-2024 for the City of Gilroy in the staff report dated February 26, 2024 for the Acceptance of Completion for Property Improvement Agreement No. 2017-06, Ballybunion Dr and Santa Teresa Blvd Roundabout.

NOW, THEREFORE, BE IT RESOLVED THAT the appropriations for Fiscal Year 2023-2024 in Fund 425 – Traffic Impact Fee Fund shall be increased by $2,336,800.

PASSED AND ADOPTED this 26th day of February 2024 by the following roll call vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

APPROVED:

Marie Blankley, Mayor
ATTEST:
_______________________
Beth Minor, Interim City Clerk

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City of Gilroy

STAFF REPORT
Agenda Item Title: Adoption of a Resolution of the City Council of the City of Gilroy Approving a Fiscal Year 2024 Budget
Amendment for $20,813 for a County of Santa Clara
Office of Emergency Management Training and
Exercise Grant
Meeting Date: February 26, 2024
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
Adopt a resolution of the City Council of the City of Gilroy amending the budget for Fiscal Year 2024 and appropriating proposed budget amendments of $20,813.

EXECUTIVE SUMMARY
The City of Gilroy was awarded a grant from the County of Santa Clara Office of Emergency Management (OEM) to pay for overtime associated with an Incident Response to Terrorist Bombings (IRTB) Train-the-Trainer course. The County of Santa Clara OEM awards grants annually to Fire Departments and other emergency response agencies within Santa Clara County to provide funding for critical emergency and disaster training. The Gilroy Fire Department was awarded $20,813 to fund the overtime for four (4) Fire Department personnel to attend the Federal Emergency Management Agency (FEMA) sponsored IRTB Train-the-Trainer course in May 2024.

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Adoption of a Resolution of the City Council of the City of Gilroy Approving a Fiscal Year 2024 Budget Amendment for $20,813 for a County of Santa Clara Office of Emergency Management Training and Exercise Grant
City of Gilroy City Council Page 2 of 3 February 26, 2024

BACKGROUND
The County of Santa Clara OEM allocates yearly training and exercise grants to fire and emergency response agencies within Santa Clara County. These grants focus on preparing agencies to build, sustain, mitigate, and improve each agency’s ability to prepare and respond to terrorist threats and disasters.

ANALYSIS
The grants awarded by the County of Santa Clara OEM enhance the capabilities of Santa Clara County fire departments and emergency response agencies to prepare and effectively respond to terrorist attacks.

Due to current fiscal constraints, participation in the IRTB Train-the-Trainer course is only feasible with grant funding. FEMA is sponsoring this course at no cost to the Department; however, FEMA will not pay for the overtime the Department will incur during this multi-day training course. This grant will provide the overtime funding needed to allow four (4) Fire Department personnel to attend. The Department will further benefit from this training when the four (4) personnel train department staff on the techniques they learned during this training course.

The Fire Department has benefitted from the grants the County of Santa Clara OEM has awarded the Department over the years. In prior years, grant funds were used to participate in Emergency Medical Services (EMS) trainings, including last year’s Basic and Advanced Tactical Medic Training.

City Council action is required to appropriate the grant funds into the FY 24 budget for Fund 100 to receive this grant funding. The proposed FY 24 appropriations are as follows:

Expenditure Fund: 1003510-50130 - Overtime
Revenue Fund: 1003500-47330 - Reimburesment

ALTERNATIVES
The City Council may reject the acceptance of the County of Santa Clara OEM grant for $20,813. However, staff does not recommend this option as it would prevent staff from participating in critical terrorist preparedness training that will benefit the City’s first responders and Gilroy residents.

FISCAL IMPACT/FUNDING SOURCE
Approval of this action would increase the revenue and the expenditure appropriations in the Fire Operations budget in the General Fund (100) by $20,813.

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Adoption of a Resolution of the City Council of the City of Gilroy Approving a Fiscal Year 2024 Budget Amendment for $20,813 for a County of Santa Clara Office of Emergency Management Training and Exercise Grant
City of Gilroy City Council Page 3 of 3 February 26, 2024

PUBLIC OUTREACH
This item was included in the publicly posted agenda for this meeting.

NEXT STEPS
Upon Council approval, staff will register four (4) Fire Department personnel for the IRTB Train-the-Trainer course scheduled in May 2024.

Attachments:

1. Budget amendment resolution

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RESOLUTION NO. 2024-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY

AMENDING THE BUDGET FOR THE CITY OF GILROY FOR FISCAL
YEAR 2024 IN THE PROPOSED FIRE EXPENDITURE AND

REVENUE FUNDS AND APPROPRIATING PROPOSED

AMENDMENTS
WHEREAS, the City Administrator prepared and submitted to the City Council a budget for the City of Gilroy for Fiscal Years 2024 and 2025, and the City Council carefully examined, considered, and adopted the same on June 5, 2023; and
WHEREAS, City Staff has prepared and submitted to the City Council a proposed amendment to said budget for Fiscal Year 2024 for the City of Gilroy in the staff report dated February 26, 2024, for the related Fire Department expenditure and revenue funds, appropriating funding received from the County of Santa Clara Office of Emergency Management; and WHEREAS, the City Council has carefully examined and considered the same and is satisfied with said budget amendments.

NOW, THEREFORE, BE IT RESOLVED that appropriations to the expenditure and revenue accounts in the General Fund, are hereby increased by $20,813 for Fiscal Year 2024.

PASSED AND ADOPTED this 26th day of February 2024 by the following roll call vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

APPROVED:
______________________________
Marie Blankley, Mayor
ATTEST:

Beth Minor, Interim City Clerk

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Resolution No. 2024-XX
Resolution Amending FY 2024 General Fund Budget
City Council Regular Meeting | Monday, February 26, 2024

Page 2 of 2 ends

CERTIFICATE OF THE CLERK
I, BETH MINOR, Interim City Clerk of the City of Gilroy, do hereby certify that the attached Resolution No. 2024-XX is an original resolution, or true and correct copy of a City Resolution, duly adopted by the Council of the City of Gilroy at a Regular Meeting of said held on Council held Monday, February 26, 2024, with a quorum present.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of the City of Gilroy this February 26, 2024.
____________________________________
Beth Minor
Interim City Clerk of the City of Gilroy
(Seal)

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City of Gilroy

STAFF REPORT
Agenda Item Title: Adoption of a Resolution of the City Council of the City of Gilroy Approving a Fiscal Year 2024 Budget
Amendment of $33,080.66 for a County of Santa Clara
Health Care System Grant
Meeting Date: February 26, 2024
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
Adopt a resolution of the City Council of the City of Gilroy amending the budget for Fiscal Year 2024 and appropriating proposed budget amendments of $33,080.66.

EXECUTIVE SUMMARY
The City of Gilroy was awarded a grant from the County of Santa Clara Health System to purchase Emergency Medical Services (EMS) equipment and supplies. The County of Santa Clara Health System awards grants annually to Fire Departments and EMS providers within Santa Clara County to provide funding to equip these agencies with critical EMS equipment and supplies. The Gilroy Fire Department was awarded $33,080.66 to purchase needed EMS software, equipment, and supplies.

BACKGROUND
The County of Santa Clara Health System allocates yearly grants to Fire and EMS providers within Santa Clara County. Each year, the County of Santa Clara Health System and Fire and EMS provider representatives vote on the type and category of EMS equipment and supplies to fund with that year's grant allocation. This year's EMS

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Adoption of a Resolution of the City Council of the City of Gilroy Approving a Fiscal Year 2024 Budget Amendment of $30,080.66 for a County of Santa Clara Health Care System Grant City of Gilroy City Council Page 2 of 3 February 26, 2024 funding supports purchasing an electronic medication tracking system and iPads to collect patient care data in the field.

ANALYSIS
The County of Santa Clara Health System grant enhances the Fire Department's capabilities when responding to emergency calls for service.

This grant will allow the Fire Department to replace its current manual medication tracking system with an electronic system. This system tracks when medications have been received and used and maintains an electronic log of who checks in and checks out medication. The system also alerts staff when medication is nearing expiration and when it is time to reorder medication.

The purchase of new engine iPads will replace the Department's aging inventory.

Properly functioning iPads are critical tools for the Department's paramedics, who capture crucial patient data when responding to medical calls.

The Fire Department has benefitted from the grants the County of Santa Clara Health System has awarded the Department over the years. In prior years, grant funds were used to purchase Automated External Defibrillators (AEDs) and Automated Chest Compression (ACC) devices.

City Council action is required to appropriate the grant funds into the FY24 Fire Operations budget in the General Fund (100) to receive and expend this grant funding.

ALTERNATIVES
The City Council may reject the acceptance of the County of Santa Clara Health System grant in the amount of $33,080.66. However, staff does not recommend this option as it would require the Department to delay the purchase of this equipment until alternative funding can be identified.

FISCAL IMPACT/FUNDING SOURCE
Approval of this action would increase the revenue, and related expenditure appropriations, in the Fire Operations budget in the General Fund (1003510) by $33,081.

PUBLIC OUTREACH
This item was included in the publicly posted agenda for this meeting.

NEXT STEPS
Upon Council approval, staff will finalize the purchase of the electronic medication

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Adoption of a Resolution of the City Council of the City of Gilroy Approving a Fiscal Year 2024 Budget Amendment of $30,080.66 for a County of Santa Clara Health Care System Grant City of Gilroy City Council Page 3 of 3 February 26, 2024 tracking system and the engine iPads.

Attachments:

1. Budget amendment resolution.

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RESOLUTION NO. 2024-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY

AMENDING THE BUDGET FOR THE CITY OF GILROY FOR
FISCAL YEAR 2024 IN THE PROPOSED FIRE EXPENDITURE AND

REVENUE FUNDS AND APPROPRIATING PROPOSED

NOW, THEREFORE, BE IT RESOLVED that appropriations to the expenditure and revenue accounts in the General Fund, are hereby increased by $20,813 for Fiscal Year 2024.

PASSED AND ADOPTED this 26th day of February 2024 by the following roll call vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

APPROVED:
______________________________
Marie Blankley, Mayor
ATTEST:

Beth Minor, Interim City Clerk

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Resolution No. 2024-XX
Budget Amendment
City Council Regular Meeting | February 26, 2024

Page 2 of 2 ends

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of the City of Gilroy this February 27, 2024.
____________________________________
Beth Minor
Interim City Clerk of the City of Gilroy
(Seal)

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City of Gilroy

STAFF REPORT
Agenda Item Title: Award a Contract in the amount of $408,134 to Blue Raster for Bicycle and Pedestrian Geographic
Information Systems Consultant Services and
Approve a Budget Amendment in the Measure B Fund
Meeting Date: February 26, 2024
From: Jimmy Forbis, City Administrator
Department: Administration
Submitted By: Bryce Atkins, Assistant to the City Administrator Prepared By: Bryce Atkins, Assistant to the City Administrator STRATEGIC PLAN GOALS Ensure Neighborhood Equity from City Services

RECOMMENDATION
Council:
a. Award a contract to Blue Raster for $408,134 for bicycle and pedestrian geographic information systems consultant services, and authorize the City Administrator to execute the agreement and any non-financial amendments to the agreement.
b. Adopt a resolution amending the FY24 adopted budget to increase appropriations in the Measure B Fund (Fund 212) by $408,134.

BACKGROUND
The City receives funding from an allocation of Measure B, adopted in 2016, for the intent of education and encouragement for bicycle and pedestrian activity (E/E Funds).

The City receives an allocation each year based on an allocation formula managed by the Santa Clara Valley Transportation Authority (VTA). These funds can be used for education and encouragement activities but cannot be used for capital projects or improvements.

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Award a Contract to [Consultant] for Bicycle and Pedestrian Geographic Information Systems Consultant Services
City of Gilroy City Council Page 2 of 5 February 26, 2024 A Geographic Information System (GIS) mapping of the City's bicycle and pedestrian paths and trails has been a recurring project on the annual program of projects.

The City issued an RFP on December 12, 2023, with a final closing date of January 31, 2024. The City received six proposals.

ANALYSIS
The project entails a consultant to use global positioning systems (GPS) to map out the City’s various bicycle and pedestrian trails and paths, incorporate other bicycle and pedestrian activities such as Safe Routes to School Data and the County’s Public Health Active Transportation grant efforts, and map other features in the City’s bicycle and pedestrian network to educate and encourage residents to walk, jog, and bike along the pathway networks in the City. Upon successful mapping and providing all data and GIS layers to our IT Department for incorporation into our GIS systems, the project includes providing the data to various GPS mapping programs to allow routes for walking and biking to be available when mapping travel routes through the City.

Below are the six proposals received, and the associated cost quotes, in alphabetical order.

Firm Name Cost
Estimate
Evaluator’s
Combined
Score
Arini Geographics $124,130 83
Blue Raster $408,134 169
Evari GIS $149,000 128
Geomate $55,300 84
Houseal Levigne $79,950 147
Kaart $63,700 124
Staff is requesting Council to approve the award of the project to Blue Raster, despite the cost proposal being the highest. The scope of the RFP involves using manual GPS to map the network, including fine details including path width, composition, direction of flow, etc. As part of the question-and-answer portion of the RFP process, one of the submitters inquired about the use of artificial intelligence (AI) to compile the data and handle the mapping. After consulting with our GIS Analyst, the data with AI (even as recently as a year ago) still requires significant cleanup and the chance of errors and inaccuracies are high. Thus, it was determined that the work must be manually captured, that the use of AI, aerial, or street imagery to conduct the mapping or assessment is not acceptable, and that physical GPS-based mapping is required.

Despite this, only one firm submitted a methodology that matches this requirement, which is Blue Raster. The other firms propose to use either AI, aerial imagery, street imagery, or a combination of all three, to complete their work. This data collection work

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Award a Contract to [Consultant] for Bicycle and Pedestrian Geographic Information Systems Consultant Services
City of Gilroy City Council Page 3 of 5 February 26, 2024 is also the largest cost item for Blue Raster, and accounts for a combined $357,749 of their estimated project costs. However, the increase in accuracy and detailed collection of pedestrian and bicycle network assets (fix-it stations, benches, water fountains, trail classifications, public art locations, etc.) will be valuable data to have, as well as the precision in data and awareness of network features for those using the public facing system and online resources.

Proposed Scope of Work
Below is the proposed scope of work as called for in the RFP. The scope specifics are still under refinement with Blue Raster to ensure that the detailed procedures and steps in the project are captured and correct. This is summarized from the RFP scope.

Task 1: Project Management and Coordination with City Staff and Outside Expertise • The Consultant will schedule regular conference calls with City staff to review the project status and provide summaries of work completed and projected work plan for the remainder of the project. Invoices must be submitted electronically to the City’s project manager.

Task 2: GPS Mapping of Locations
Utilizing GPS, the Consultant shall map:
• Bicycle lanes, paths, and all other bicycle designated routes and areas. • Sidewalks and walking trails, paths, and all other pedestrian designated routes and areas.
• Key features and equipment along the above routes, including bicycle fixing stations, public drinking fountains, bike racks with distinction as to type, location of any wayfinding signs, and other public amenities along the above lanes, paths and routes, including any public art.
• Mapping shall include the width, length, and other physical features of the various lanes and paths, as well as identifying which classifications and qualities are present in each of the above.

Task 3: Creation of GIS layers for City
• Consultant shall enter the data acquired in Task 2 into GIS layers, at least one layer for the bicycle trails and path network, and at least one layer for the pedestrian trails and path network. Final number of layers are subject to the selected proposal, and the proposed scope of work enhancements, as described in the proposal contents section below.

Task 4: Creation and/or Coordination of Public Facing Websites and Portals of Certain GIS Maps
• Consultant shall create a public facing, interactive map on the City’s website, or a separate website that would be under the control of the City, which shall provide a visual representation of the various bike and pedestrian facilities the City has, including any features such as the City’s Bike Fix-It stations, drinking fountains,

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Award a Contract to [Consultant] for Bicycle and Pedestrian Geographic Information Systems Consultant Services
City of Gilroy City Council Page 4 of 5 February 26, 2024 and other features along the possible routes. The map will also feature the Safe Routes to School pathways and County Encouragement maps. • Consultant will also provide the information to mapping and navigation software providers to facilitate navigation along the bicycle and pedestrian pathways.

Funding Source
The funding for this project is coming from the Measure B E/E funds. According to VTA staff, the City has accumulated approximately $265,000 to-date in Measure B E/E funds. In consultation with VTA staff, the City may engage the full cost of the consultant now, and complete the project. The City would then invoice VTA and be reimbursed each fiscal year until the full balance is reimbursed. No General Fund sources are proposed for use in this project. A resolution amending the City’s adopted budget is attached to appropriate the contract amount. As additional funding allocations becomes available from VTA for Measure B E/E funds in future fiscal years, staff will then submit the reimbursement invoices to VTA until the expenditure in the Measure B fund for this project is fully reimbursed.

About Blue Raster
Blue Raster is a firm that specializes in GIS and software development for federal, state, and local governments. They have been in existence for 22 years and have 31 employees with various specialties within this field. The proposal also incorporates a subcontractor to do the GPS field work, Windrose Surveying and Land Services, that will provide survey teams to collect the physical data in person and provide to Blue Raster’s team for processing.

The City’s RFP evaluation team, comprised of our GIS Analyst and one of our Public Works engineers, ranked the methodology for Blue Raster as the highest of all submittals, and the firm and staffing team qualifications were in the higher rankings of the firms. Staff feels that Blue Raster is the consulting firm with the best project approach and team at this time to deliver this project.

Conclusion
Staff is recommending that Council authorize the City Administrator to execute the agreement, as well as authorize any amendments for the duration of the project, except any that increase the not-to-exceed total contract amount of $408,134. Any amendments that would seek to increase the total contract amount would come back to Council for approval.

ALTERNATIVES
Council may choose to not award the contract or reject all bids. This is not recommended as the project proposals have been received and evaluated, and the proposed project is in keeping with the intent of the Measure B E/E funds and the Program of Projects. Re-bidding the project to modify the scope would reset the project to the RFP development phase, adding further time to implement the project.

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Award a Contract to [Consultant] for Bicycle and Pedestrian Geographic Information Systems Consultant Services
City of Gilroy City Council Page 5 of 5 February 26, 2024

FISCAL IMPACT/FUNDING SOURCE
$408,134 - Measure B Bicycle and Pedestrian Program. Upon completion of the project, the City will invoice VTA to draw down majority of the expenditure from the current allocation in the amount of $265,000 and draw down the remaining $143,134 from future fiscal year allocations. No General Fund sources are proposed for use by this project.

PUBLIC OUTREACH
The item was included on the publicly posted agenda for this meeting. Additionally, there will be a public outreach campaign developed by City staff to advertise this project and the final webpage for the maps and awareness events along the City’s bicycle and pedestrian networks.

NEXT STEPS
If approved, staff will finalize the contract with Blue Raster, and commence the project.

ATTACHMENTS

1. Resolution – Budget Amendment – Measure B Fund 212

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RESOLUTION NO. 2024-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY

AMENDING THE BUDGET FOR THE CITY OF GILROY FOR
FISCAL YEAR 2023-24 IN THE MEASURE B FUND AND

APPROPRIATING PROPOSED EXPENDITURE AMENDMENTS
WHEREAS, the City Administrator prepared and submitted to the City Council a budget for the City of Gilroy for Fiscal Years 2023-24 and 2024-2025, and the City Council carefully examined, considered and adopted the same on June 5, 2023; and WHEREAS, City Staff has prepared and submitted to the City Council a proposed amendment to said budget for Fiscal Year 2023-24 for the City of Gilroy in the staff report dated February 26, 2024 for the Bicycle and Pedestrian GIS Consultant Services Contract; and WHEREAS, the City Council has carefully examined and considered the same and is satisfied with said budget amendment.

NOW, THEREFORE, BE IT RESOLVED THAT appropriations for Fiscal Year 2023-24 are hereby increased in the Measure B Fund, Fund 212, by $408,134.

PASSED AND ADOPTED this 26th day of February 2024 by the following roll call vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

APPROVED:
______________________________
Marie Blankley, Mayor
ATTEST:

Beth Minor, Interim City Clerk

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Resolution No. 2024-XX
Measure B Bicycle and Pedestrian GIS Project Budget Amendment City Council Regular Meeting | February 26, 2024

Page 2 of 2 ends

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of the City of Gilroy this Date.
____________________________________
Beth Minor
Interim City Clerk of the City of Gilroy
(Seal)

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City of Gilroy

STAFF REPORT
Agenda Item Title: Award a Contract to Kimley-Horn and Associates, Inc. for the Design of Two Traffic Signals Project No. 24-
RFP-PW-498 in the amount of $149,854, Approve a
Project Contingency of $29,971, and Approve a Total
Project Expenditure of $179,825 for Design Services
Meeting Date: February 26, 2024
From: Jimmy Forbis, City Administrator
Department: Public Works
Submitted By: Heba El-Guindy, Public Works Director
Prepared By: Julie Oates, Engineer II
STRATEGIC PLAN GOALS Maintain and Improve City Infrastructure

RECOMMENDATION
Award a contract to Kimley-Horn and Associates, Inc. in the amount of $149,854 and approve a project contingency of $29,971 for a total project expenditure of $179,825 for the Design of Two Traffic Signals Project No. 24-RFP-PW-498 and authorize the City Administrator to execute the contract and associated documents.

EXECUTIVE SUMMARY
The Design of Two Traffic Signals Project No. 24-RFP-PW-498 (Project) includes the design and preparation of bid documents for new traffic signals at the Luchessa Avenue/Church Street and Monterey Street/I.O.O.F. Avenue intersections. These projects are included in the Fiscal Year 2024-2028 Capital Improvement Program (CIP), adopted by the City Council on June 5, 2023. The proposed not-to-exceed contract amount is $149,854. Staff requests authorization for an additional $29,971 for contingency, for a total project expenditure of $179,825 for design services. Staff recommends the City Council award a contract to Kimley-Horn and Associates, Inc. of Oakland, CA, to design and prepare the bid documents for the Project.

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Award a Contract to Kimley-Horn and Associates, Inc. for the Design of Two Traffic Signals Project No. 24-RFP-PW-498 in the amount of $149,854, Approve a Project Contingency of $29,971, and Approve a Total Project Expenditure of $179,825 for Design Services City of Gilroy City Council Page 2 of 3 February 26, 2024

BACKGROUND
The Project includes the design and preparation of bid documents for two new traffic signals. These projects are included in the Fiscal Year 2024-2028 Capital Improvement Program (CIP), adopted by the City Council on June 5, 2023.

1. Luchessa / Church Traffic Signal Installation (800350)

2. Monterey / I.O.O.F. Traffic Signal Installation (800370) Signalization of these intersections will enhance pedestrian and vehicular safety and improve traffic operations for all modes of travel. The Supplemental EIR for the Gilroy Ice Center at the Outdoor Sports Park calls for the installation of a traffic signal at the intersection of Luchessa / Church Street to mitigate traffic needs.

Traffic signal improvements at the Luchessa Avenue / Church Street intersection will include safety lighting, pedestrian countdown signals, a marked crosswalk across Luchessa Avenue, and upgrades to meet ADA compliance.

Traffic signal improvements at the Monterey Street / I.O.O.F. Avenue intersection will include safety lighting, pedestrian countdown signals, and upgrades to meet ADA compliance. In addition, due to the proximity of the Union Pacific Railroad (UPRR) tracks, the design will include signal interconnection with the nearby at-grade highwayrailroad crossing east of the intersection.

The two signal projects have been bundled together to provide time and cost savings in the design and in the future construction of the improvements.

ANALYSIS
On December 29, 2023, a Request for Proposals (RFP) was issued to the seven consultants on the City’s prequalified list of design consultants (from a previous Request for Qualifications) for the design of traffic signal improvements.

Staff received three proposals from the following consultant teams:

1. Hexagon Transportation Consultants, Inc.

2. Iteris, Inc.

3. Kimley-Horn and Associates, Inc.

The proposals were evaluated by an internal scoring committee and ranked per the criteria identified in the RFP. Kimley-Horn and Associates, Inc. was ranked the highest and was selected based on their local knowledge, experience, project understanding, and project approach.

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Award a Contract to Kimley-Horn and Associates, Inc. for the Design of Two Traffic Signals Project No. 24-RFP-PW-498 in the amount of $149,854, Approve a Project Contingency of $29,971, and Approve a Total Project Expenditure of $179,825 for Design Services City of Gilroy City Council Page 3 of 3 February 26, 2024

ALTERNATIVES
The alternative to the staff recommendation is to not award the contract. Staff does not recommend this option because it would delay the design, and ultimately, the construction of the traffic signal improvements.

FISCAL IMPACT/FUNDING SOURCE
The proposed cost for the design services is $149,854. Staff recommends a contingency of $29,971 (20%) to address any unanticipated changes or requests from outside agencies (e.g., UPRR or CA PUC due to the proximity of an at-grade highwayrailroad crossing). Therefore, the total expenditure allocation request is $179,825.

The Project will be funded by the Traffic Impact Fund (425). The design phase traffic installation at both intersections is included in the FY24 budget (CIP Project #800350 and 800370).

PUBLIC OUTREACH
There is no public outreach planned during the design phase of the project. Appropriate public outreach will be conducted for the construction phase of the project.

NEXT STEPS
If Council approves the proposed contract with Kimley-Horn and Associates, Inc., staff will direct the consultant to begin the design process. Final design and bid documents are anticipated to be completed in October 2024. Bidding and construction would begin soon after the design and bid documents are completed.

Attachments:

1. Kimley-Horn and Associates, Inc. - Agreement

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Page 1 of 2 ends

City of Gilroy

STAFF REPORT
Agenda Item Title: Consideration of a Ceasefire Resolution Meeting Date: February 26, 2024
From: Jimmy Forbis, City Administrator
Department: Administration
Submitted By: Bryce Atkins, Assistant to the City Administrator Prepared By: Bryce Atkins, Assistant to the City Administrator STRATEGIC PLAN GOALS Not Applicable

RECOMMENDATION
Council discussion and direction.

BACKGROUND
At the February 5, 2024 regular City Council meeting, after receiving public comments, a Council-initiated agenda item was brought forth to consider the adoption of a ceasefire resolution regarding the Hamas – Israel conflict.

ANALYSIS
Staff has collected a few resolutions from other cities that have adopted resolutions regarding this matter. The resolutions vary in the claims made in the recitals and some variance in the nature of the peace/ceasefire request and terms of the called-for ceasefire. Staff is not making any recommendations regarding the Council-initiated discussion on a potential ceasefire resolution.

ALTERNATIVES
Council may issue direction to staff as it may deem appropriate.

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Consideration of a Cease-Fire Resolution
City of Gilroy City Council Page 2 of 2 February 26, 2024

FISCAL IMPACT/FUNDING SOURCE
None – this item carries no known fiscal impact.

PUBLIC OUTREACH
This agenda item was included on the publicly posted agenda for this meeting.

NEXT STEPS
Staff will implement direction received by the City Council.

Attachments:

1. Resolution of the City of Gilroy for Peace in the Middle East - submitted by Mayor Blankley

2. Cease Fire Resolution - submitted by Council Member Hilton

3. Sample Peace Resolution JCRC

4. Santa Cruz Peace Resolution

5. Hollister Resolution

6. Long Beach Resolution

7. Montebello Resolution

8. Oakland Resolution

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Resolution of the City of Gilroy, California for Peace in the Middle East Whereas, the City of Gilroy, CA acknowledges the suffering of the peoples of the Middle East and affirms our shared humanity; and
Whereas, the City of Gilroy, CA recognizes the history of conflicts in the Middle East and values peaceful conflict resolution; and
Whereas, the City of Gilroy, CA calls for collaborative efforts supporting peaceful dialogue among all parties involved; and
Whereas, the City of Gilroy, CA looks forward to a future where all can live with dignity and security in Peace around the world.

Now, therefore, I, Marie Blankley, Mayor of the City of Gilroy, on this 26th day of February 2024, along with my colleagues on the City Council, do hereby urge our community to develop and participate in activities that foster tolerance, empathy, education, understanding of people of all backgrounds and religious faiths, and promote peaceful conflict resolution among all parties.

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A RESOLUTION CALLING FOR A PERMANENT CEASEFIRE IN ISRAEL AND

PALESTINE
WHEREAS, Gilroy is dedicated to fostering a community that embraces diversity, values all life, and upholds the principles of equality and human rights; and WHEREAS, incidents of anti-Semitic, anti-Arab, and anti-Muslim bigotry and violence are on the rise within our country, posing a significant threat to the well-being and safety of our diverse communities and all Americans; and acknowledges the suffering of Palestinians and Israelis, and affirms our shared humanity; WHEREAS, we express profound sorrow and condemnation for the tragic loss of innocent Israeli lives in the horrific attack on October 7th; and WHEREAS, we express profound sorrow and condemnation for the loss of innocent Palestinian lives from the horrific indiscriminate bombing upon the civilian population of Gaza.

WHEREAS, Gilroy supports the dignity and safety of all residents in any community in which all human life is precious and valued, and the targeting of civilians-no matter their faith or ethnicity, or country of origin- is abhorrent; and WHEREAS, over two million Palestinian lives in Gaza, including Israeli hostages, are at imminent risk if a permanent cease-fire is not achieved and continuous humanitarian aid is not assured; and
WHEREAS, Gilroy strives for people in our community with disparate perspectives to unite in our advocacy for peaceful and respectful dialogue for the good of humanity.

NOW THEREFORE BE IT RESOLVED, that Gilroy calls for:
1) an immediate permanent ceasefire for sustainable peace to urgently end the current violence; and
2) the immediate release of all Israeli & Palestinian hostages; and 3) an immediate end to the blockade and siege of Gaza, with the prompt provision of humanitarian assistance to Gaza including supplying food, water, fuel, and medical supplies which are indispensable for the survival of the civilian population of Gaza; and 4) all parties to fully comply with their obligations under international law; and 5) affirms the American Academy of Pediatrics’ following policy statement:

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• Children should never be harmed because of the religious, cultural, and other beliefs and values of the child and/or their family;
• Harm to children should never be used as a tool or tactic of war or conflict; • Children should be protected from the direct effects of armed conflicts and their food, housing, health, and other basic needs safeguarded.

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Resolution Calling for Peace and Supporting Communities Impacted by the 2023 Israel-Hamas Conflict
WHEREAS, on October 7, 2023, Hamas terrorists attacked villages and towns in southern Israel from Gaza, murdering at least 1,200 Israeli citizens and foreign nationals, and fired thousands of rockets at cities and towns across Israel; and
WHEREAS, the resulting war between Israel and Hamas has tragically claimed the lives of tens of thousands of Palestinians in Gaza and led to the displacement of over a million people; and WHEREAS, the humanitarian situation in Gaza has deteriorated and there are ongoing international efforts to maintain humanitarian safe-zones and ensure civilians in Gaza have access to food, water, and other supplies; and
WHEREAS, Hamas kidnapped and is currently holding over 120 people hostage; and WHEREAS, many members of the CITY community have family and friends directly impacted by the Israel-Hamas conflict; and
WHEREAS, as with any foreign affairs issues, the CITY community has a diversity of opinions regarding the Israel-Hamas War and the broader Israeli-Palestinian conflict; and WHEREAS, many residents throughout CITY already live in heightened anxiety due to increasingly high levels of antisemitism and Islamophobia in California and the United States, which is being amplified by the conflict; and
THEREFORE, BE IT RESOLVED, CITY condemns the horrific attacks against Israeli civilians and mourns the loss of all innocent lives in Gaza and Israel; and BE IT FURTHER RESOLVED, that the CITY calls for peaceful and just resolution to the Israel-Hamas War, provision of life-saving humanitarian aid in Gaza, the release of all hostages in Gaza, and the removal of Hamas from rule in Gaza; and BE IT FURTHER RESOLVED, CITY affirms the right of self-determination for both Jews and Palestinians, and will support efforts to ensure both peoples can coexistence peacefully, living side by side; and
BE IT FURTHER RESOLVED, CITY is committed to ensuring the protection of all vulnerable religious and cultural centers, uplifting events that seek to bring diverse communities together, and rejecting inflammatory, threatening and violent language of all kind; and BE IT FURTHER RESOLVED, CITY remains committed to calling out all forms of hate, preventing this conflict for sowing division in CITY, and encouraging residents to show compassion and understanding to support their neighbors who may be in great pain.

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Resolu'on
City of Santa Cruz California Resolution for Peace in
the Middle East
Whereas the City of Santa Cruz, CA acknowledges the
suffering of the peoples of the Middle East and affirms our shared humanity.

Whereas the City of Santa Cruz, CA recognizes the history of conflicts in the Middle East.

Whereas the City of Santa Cruz, CA values peaceful conflict resolution.

Therefore, be it resolved that the City of Santa Cruz,
California:

1. Acknowledges the suffering of the peoples of the Middle East.

2. Affirms our shared humanity and wish for peace.

3. Calls for collaboraAve efforts supporAng peaceful dialogue among all parAes involved.

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4. Urges our community to develop and parAcipate in
acAviAes that foster tolerance, empathy, educaAon, and
understanding of people of all backgrounds and religious faiths.

5. Looks forward to a future where all can live with dignity and security in PEACE.

6. Declares that (day/month) will be “City of Santa Cruz, California Peace Day” where all can have the opportunity to parAcipate in acAviAes and dialogue that promotes
peace in the Middle East and around the world.

Please note:

Words we believe would be divisive:

Hamas
Hezbollah
Jews
PalesAne/PalesAnians
Gaza/Gazans
Israel/Israelis
Ceasefire
Genocide

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RESOLUTION NO. 2023-240

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOLLISTER AFFIRMING THE CITY OF HOLLISTER’S SUPPORT FOR AN IMMEDIATE CEASEFIRE IN GAZA

AND ISRAEL
WHEREAS, the City of Hollister recognizes the importance of peace and security for all communities and nations around the world regardless of national, ethnic or religious affiliations; and
WHEREAS, the City of Hollister advocates for the safety, dignity, freedom, and equality of all people, regardless of religion, race, or nationality; and WHEREAS, the City of Hollister recognizes that all human life is precious; and WHEREAS, since October 7, 2023, armed violence has claimed the lives of and wounded thousands of individuals in Gaza and Israel; and WHEREAS, lives continue to be at imminent risk if a ceasefire is not achieved without delay; and
NOW, THEREFORE, BE IT RESOLVED that the City of Hollister joins other cities in calling on our Congress Members to demand an immediate ceasefire to urgently end the current violence in Gaza and Israel.

NOW BE IT FURTHER RESOLVED that a copy of this resolution be sent to the offices of Assemblymember Robert Rivas, State Senator Anna Caballero, Governor of California Gavin Newsom, U.S. Congressional Representative Zoe Lofgren, U.S.

Senator Laphonza Butler, U.S. Senator Alex Padilla, and U.S. President Joe Biden, urging them to take immediate action to use their position and influence to end violence.

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Resolution No. 2023-240
PASSED AND ADOPTED, by the City Council of the City of Hollister at a regular meeting held this 4th day of December 2023, by the following vote:

AYES: Councilmembers Resendiz, Morales, Burns, and Mayor Casey NOES: None
ABSTAINED: None
ABSENT: Councilmember Perez
Mia Casey, Mayor
ATTEST: APPROVED AS TO FORM:

Lozano Smith Attorneys at Law
____
Jennifer Woodworth, MMC, City Clerk Mary F. Lerner, City Attorney I, Jennifer Woodworth, MMC, City Clerk of the City of Hollister, do hereby certify that the attached Resolution No. 2023-240 is an original resolution, or true and correct copy of a City resolution, duly adopted by the Council of the City of Hollister at a regular meeting held on this 4th day of December 2023, at which meeting a quorum was present.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Hollister this 4th day of December 2023.

Jennifer Woodworth, MMC
City Clerk of the City of Hollister

11.1 p. 160 of 478

A PROCLAMATION OF THE CITY COUNCIL OF THE CITY OF LONG BEACH

SUPPORTING A PEACEFUL RESOLUTION TO THE ONGOING CONFLICT AND HUMANITARIAN CRISIS IMPACTING GAZA AND ISRAEL.

WHEREAS, the City of Long Beach has a longstanding commitment to advocating for peace, social justice, equity, safety, and fostering mutual respect and understanding for all people, regardless of religion, race, or nationality; and WHEREAS, since October 8th, 2023, the day following the attacks by Hamas militants on Israel, Long Beach’s city leadership has publicly acknowledged the ongoing violence and humanitarian crisis impacting Gaza and Israel; and
WHEREAS, on November 14th, 2023, the City of Long Beach issued a statement affirming the City’s values of unity, respect, and understanding in light of the significant loss of Palestinian and Israeli lives, and condemning the increasing reports of AntiSemitic, Islamophobic, Anti-Jewish, and Anti-Arab incidents that have occurred since October 7th; and
WHEREAS, following news of a temporary ceasefire and the release of civilian hostages, Mayor Richardson issued a statement on November 28th, 2023, reiterating calls for a permanent ceasefire, the safe return of all hostages, and lasting peace in the region; and
WHEREAS, the Long Beach City Council has previously adopted statements and resolutions on statewide, national, and international affairs deemed important to the diverse residents and constituencies that the Council represents; and WHEREAS, a growing number of cities throughout California and across the country have approved or are actively considering statements calling for peace, a lasting ceasefire and the safe return of all hostages, including Stanton, Oakland, San Francisco, Sacramento, Santa Ana, Seattle, Detroit, Providence, and Atlanta, among others; and
WHEREAS, international organizations including the United Nations General Assembly, the World Health Organization, the U.S. Agency for International Development, and the International Rescue Committee have made calls for a ceasefire and the return of

11.1 p. 161 of 478
remaining hostages to prevent the further loss of civilian lives, and to be in accordance with international humanitarian law.

NOW, THEREFORE, the City Council of the City of Long Beach proclaims as follows:

Section 1. The City of Long Beach stands firmly on the foundation of peace, unity, respect, and understanding. The City Council recognizes that Palestinian lives and Israeli lives have the same value, and that all human life is precious. The City Council acknowledges the current humanitarian crisis in Gaza, and has condemned the attacks on Israel. Palestinian people deserve self-determination. Israel has a right to defend itself. Palestinians and Israelis equally deserve dignity, security, and to live without harm.

Section 2. The City Council calls on our federal leaders to support negotiations that lead to a lasting humanitarian ceasefire in Israel and Gaza, the release of all hostages, the safe passage of food, water, medical supplies, and other life-saving humanitarian aid into Gaza, and a peaceful resolution that achieves both an end to the attacks on Israel by Hamas, and the protection of civilian life in Gaza and Israel.

Section 3. The City Council requests city staff to identify and promote community education resources and services to support Long Beach residents and community members affected by the ongoing conflict, including counseling and mental health services, and support groups led by cultural and religious organizations.

Section 4. The City Council unequivocally condemns all forms of violence, intolerance, racism, and xenophobia, including the recent rise of Anti-Semitic, Islamophobic, Anti-Jewish, and Anti-Arab sentiments, rhetoric, and attacks in our region and across the nation.

Section 5. The City Council requests that a copy of this proclamation be transmitted to Long Beach’s delegation of federal representatives.

Section 6. This proclamation shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting this proclamation.

11.1 p. 162 of 478

11.1 p. 163 of 478

ATTACHMENT A
RESOLUTION NO. 24-06

A RESOLUTION OF THE CITY COUNCIL OF MONTEBELLO,

CALIFORNIA AFFIRMING SUPPORT FOR THE CONGRESSIONAL AND

WORLDWIDE CALLS FOR AN IMMEDIATE CEASEFIRE IN GAZA

RECITALS
WHEREAS, the City of Montebello believes that all people regardless of race, color, national origin, sex, and religion should be able to live in dignity, freedom, and equality without fear of destruction; and
WHEREAS, the City of Montebello condemns the recent rise of Antisemitic, Islamophobic, racist, homophobic, and xenophobic attacks in our State and Region and across the nation; and
WHEREAS, the current assault on Gaza, in response to Hamas’s attack on October 7, 2023 that killed 1,200 people and seized 253 people, has resulted in over 24,000 Palestinians killed by the State of Israel; and
WHEREAS, the City of Montebello recognizes that the current crisis takes place within a long history and affirms the root causes of the crisis needs to be addressed for a pathway to lasting peace and justice to be developed; and WHEREAS, the Federal Government holds immense diplomatic power to save Israeli and Palestinian lives:

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF MONTEBELLO HEREBY RESOLVES, FINDS, AND DECLARES AS FOLLOWS:

SECTION 1. The City of Montebello will identify and support local programs that combat Antisemitism, Islamophobia, racism, homophobic and xenophobic attacks; and SECTION 2. The City of Montebello supports U.S. Congress Resolution H.R. 786 and joins other cities in calling on our congress members to demand: a permanent ceasefire; the release of all hostages and prisoners; the unrestricted entry of humanitarian assistance into Gaza; the restoration of food, water, electricity, and medical supplies to Gaza; the respect for international law; and
SECTION 3. That a copy of this Resolution be sent to the offices of Assemblymember Miguel Santiago, Senator Bob Archuleta, Governor Gavin Newson, U.S. Representative Linda Sanchez, U.S. Senator Laphonza Butler, U.S. Senator Alex Padilla, Secretary of State Antony Blinken, Secretary of Defense Lloyd Austin, and U.S.

President Joe Biden urging them to take immediate action to use their position and influence to end violence.

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RESOLUTION NO. 24-06

Page 2 of 2 ends

SECTION 4. EFFECTIVE DATE. This Resolution shall take effect immediately upon its adoption by the City Council and the City Clerk shall certify to the passage and adoption of this resolution.

APPROVED AND ADOPTED THIS 24TH DAY OF JANUARY 2024.
_______________________________
Scarlet Peralta, Mayor
ATTEST: APPROVED AS TO FORM:

________________________________ ________________________________ Christopher Jimenez, City Clerk Arnold M. Alvarez-Glasman, City Attorney

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS:

CITY OF MONTEBELLO )
I, Christopher Jimenez, City Clerk of the City of Montebello, County of Los Angeles, State of California, hereby certify that the foregoing Resolution No. 2024-XX was passed and adopted by the City Council of the City of Montebello, signed by the Mayor and attested by the City Clerk at a regular meeting of said Council held on the 24th day of January 2024 and that said Resolution was adopted by the following vote, to-wit:

AYES:

NOES:

ABSTAIN:

ABSENT:

The undersigned, City Clerk of the City of Montebello, does hereby attest and certify that the foregoing Resolution is a true, full and correct copy of a resolution duly adopted at a meeting of said City which was duly convened and held on the date stated thereon, and that said document has not been amended, modified, repealed or rescinded since its date of adoption and is in full force and effect as of the date hereof.

DATE:

Christopher Jimenez, City Clerk

11.1 p. 165 of 478
1 APPROVED AS TO FORM AND LEGALITY
________________________
CITY ATTORNEY’S OFFICE

OAKLAND CITY COUNCIL
RESOLUTION NO. ______________ C.M.S.

INTRODUCED BY COUNCILMEMBER CARROLL FIFE
RESOLUTION AFFIRMING OAKLAND’S LOVE LIFE COMMITMENT AND

SUPPORT FOR THE CONGRESSIONAL AND WORLDWIDE CALLS FOR AN

IMMEDIATE CEASEFIRE IN GAZA
WHEREAS, all life is precious and the City of Oakland's official motto “Love Life" calls on elected officials and residents alike to protect life and stand united against violence; and WHEREAS, the City of Oakland condemns the recent rise of Antisemitic, Islamophobic, racist, homophobic, and xenophobic attacks in our city and across the nation, including the doxxing of elected officials, students, professors, journalists, and others speaking truth to power; and WHEREAS, the City of Oakland advocates for the safety, dignity, freedom, and equality of all people, regardless of religion, race, or nationality; and WHEREAS, over one thousand people in Israel and more than eleven thousand Palestinians in Gaza have been killed in a matter of weeks, of whom over five thousand are children; and
WHEREAS, the City of Oakland recognizes that the current crisis takes place within a long history and affirms that, for a pathway to lasting peace and justice to be developed, the root causes of the crisis need to be addressed; and
WHEREAS, Gaza is in a dire humanitarian crisis that is getting worse with each passing day, with the only remaining hospitals running out of fuel and medical supplies, and over 1.5 million Palestinians facing displacement, homelessness, and starvation; and

11.1 p. 166 of 478
2 WHEREAS, international organizations like Amnesty International, the United Nations, the World Health Organization, the US Agency for International Development (USAID), the International Rescue Committee, and many others have made a call for a ceasefire in order to prevent the further loss of life of civilians and to be in accordance with international humanitarian law; and
WHEREAS, sixty six percent of American voters support a ceasefire, according to an October 20th, 2023 Data For Progress poll1, and want to see the U.S. leverage its diplomatic relationships “to prevent further violence and civilian deaths"; now, therefore, be it RESOLVED that the City of Oakland supports U.S. Congress Resolution H.R.786 and joins other cities in calling on our Congress Members to demand: an immediate ceasefire; release of all hostages, the unrestricted entry of humanitarian assistance into Gaza; the restoration of food, water, electricity, and medical supplies to Gaza; and the respect for international law; and calls for a resolution that protects the security of all innocent civilians; and be it FURTHER RESOLVED that a copy of this resolution be sent to city councils in the San Francisco Bay Area, the offices of Assemblymember Mia Bonta, Assemblymember Buffy Wicks, State Senator Nancy Skinner, Governor of California Gavin Newsom, U.S. Representative Barbara Lee, U.S. Senator Laphonza Butler, U.S. Senator Alex Padilla, U.S. President Joe Biden, and U.S.

Vice President Kamala Harris, urging them to take immediate action to use their position and influence to end violence.

IN COUNCIL, OAKLAND, CALIFORNIA,
PASSED BY THE FOLLOWING VOTE:

AYES - FIFE, GALLO, JENKINS, KALB, KAPLAN, RAMACHANDRAN, REID, AND

PRESIDENT FORTUNATO BAS
NOES –
ABSENT –
ABSTENTION –
ATTEST:

ASHA REED
City Clerk and Clerk of the Council of the
City of Oakland, California
1 Data for Progress. “Voters Agree the U.S. Should Call For A Ceasefire and De-escalation of Violence in Gaza to Prevent Civilian Deaths” https://www.dataforprogress.org/blog/2023/10/19/voters-agree-the-us-should-call-for-aceasefire-and-de-escalation-of-violence-in-gaza Oct 20, 2023

11.1 p. 167 of 478
3 11.1
p. 168 of 478
1 Beth Minor
From: Jeff Berta <[email protected]>
Sent: Thursday, February 22, 2024 11:32 AM
To: Public Comments; All Council Members
Subject: EXTERNAL - YES on item 11.1 permanent ceasefire CAUTION: This email originated from an External Source. Please use proper judgment and cauƟon when opening aƩachments, clicking links, or responding to this email.

Hello Mayor and Gilroy City Council Members,
My name is Jeffrey Francis Berta and I’m a Gilroy Community Member. I’m emailing you to ask for your support to approve a resoluƟon calling for a permanent ceasefire in Gaza.

The conƟnued violence inside Gaza is having a devastaƟng impact on PalesƟnians and hostages. The longer the indiscriminate killing conƟnue, the more hatred is advanced.

Some say a ceasefire in Gaza and passing a resoluƟon will cause division within this community. I don’t believe that.

What causes division is killing, murdering of innocent civilians, intenƟonal starvaƟon and collecƟve punishment—exactly what is occurring in Gaza now. Standing for peace and life should never divide. Some say it’s not up to ciƟes to pass proclamaƟons on world affairs. However, the Gilroy City Council itself voted unanimously in support of the Ukrainian ProclamaƟon only a couple years ago. We all inhabit this planet and it is all of our responsibiliƟes to speak up against injusƟce whenever and wherever it occurs. The violence occurring in Gaza has a direct impact to our Gilroy community.

Our government should not be taking American tax payer dollars and handing it to the Israeli government knowing that the money will lead to more death and destrucƟon. Our country has so many pressing issues where this money could directly benefit our own civilians here at home. Please approve item 11.1 and call for a permanent ceasefire in Gaza.

Thank you for your consideraƟon and Ɵme.

Sincerely,
Jeffrey Berta
AGENDA ITEM 11.1
02/26/2024 Regular Meeting

11.1 p. 169 of 478
1 Beth Minor
From: Nana B. <[email protected]>
Sent: Wednesday, February 21, 2024 10:19 AM
To: All Council Members
Subject: EXTERNAL - Please Vote for Ceasefire!
Dear Council members,
Please vote for Ceasefire so we can show our community that we are a peace advocate. We want to instill love and peace in the community, not hate and division of which side we're taking. This debate has been going on since October7 and the majority of us live in fear that this war will exacerbate more hatred and confusion. Let's call for Ceasefire so we can end all suffering and misery and return to our normal lives. -Thanks,
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2/26/2024 Regular Meeting
AGENDA ITEM #11.1

11.1 p. 170 of 478
From: Council Member Zachary Hilton
To: Public Comments
Cc: City Clerk
Subject: Public Comment (February 26) Item #11.1 Resolution Calling For A Permanent Ceasefire in Israel and Palestine Date: Tuesday, February 20, 2024 11:10:55 AM
Attachments: Future Council Initiated Agenda Item Ceasefire Resolution.pdf City Clerk,
Attached is my public comment for (February 26) Item #11.1 Resolution Calling For A Permanent Ceasefire in Israel and Palestine.

Thank you.

Zach Hilton
Gilroy City Council Member
www.zachhilton.com
#HiltonForCouncil @zachhilton_ca
2/26/2024 Regular Meeting
AGENDA ITEM #11.1 11.1
p. 171 of 478
Contact: Zach Hilton
[email protected]
669-270-6232
February 6, 2024
Future Council Initiated Agenda Items- Below is the proposed language that is being submitted for this resolution brought forward by the community to Gilroy City Council through open public comment received during the February 5th Regular Meeting.

Resolution Calling For A Permanent Ceasefire in Israel and Palestine (Community Version)
WHEREAS, Gilroy is dedicated to fostering a community that embraces diversity, values all life, and upholds the principles of equality and human rights; and WHEREAS, incidents of anti-Semitic, anti-Arab, and anti-Muslim bigotry and violence are on the rise within our country, posing a significant threat to the well-being and safety of our diverse communities and all Americans; and acknowledges the suffering of Palestinians and Israelis, and affirms our shared humanity; WHEREAS, we express profound sorrow and condemnation for the tragic loss of innocent Israeli lives in the horrific attack on October 7th; and WHEREAS, we express profound sorrow and condemnation for the loss of innocent Palestinian lives from the horrific indiscriminate bombing upon the civilian population of Gaza.

NOW THEREFORE BE IT RESOLVED, that Gilroy calls for:
1 11.1
p. 172 of 478
1) an immediate permanent ceasefire for sustainable peace to urgently end the current violence; and
2) the immediate release of all Israeli & Palestinian hostages; and 3) an immediate end to the blockade and siege of Gaza, with the prompt provision of humanitarian assistance to Gaza including supplying food, water, fuel, and medical supplies which are indispensable for the survival of the civilian population of Gaza; and 4) all parties to fully comply with their obligations under international law; and 5) affirms the American Academy of Pediatrics’ following policy statement:
• Children should never be harmed because of the religious, cultural, and other beliefs and values of the child and/or their family;
• Harm to children should never be used as a tool or tactic of war or conflict; • Children should be protected from the direct effects of armed conflicts and their food, housing, health, and other basic needs safeguarded. 2 11.1
p. 173 of 478
1 Beth Minor
From: Nadia Jafri <[email protected]>
Sent: Tuesday, February 20, 2024 2:42 PM
To: All Council Members
Subject: EXTERNAL - vote for CEASEFIRE in GAZA
Hello,
My name is Nadia Jafri and I am a constituent. I am requesting you to please vote YES for a Ceasefire in Gaza resolution.

After the US's most recent veto of the Security Council Ceasefire Resolution today, I am so ashamed of what our great country has become.

For a few weeks after the Oct 7 attacks, I was in complete sympathy for the Israeli victims and my unequivocal support was with them and their country.

But since then I have seen a right wing, extremist government's campaign of slaughter, starvation, terror.... and quite frankly, a GENOCIDE that I can no longer ignore.

Our government's complicity in this horror is undeniable. So I beseech you, recognizing that the city council's passing a ceasefire resolution will not affect anything that is going on in Gaza today, please please please show that world that the fine citizenry of Gilroy sees beyond party lines, and supports innocent civilians right to live a life free of terror that has lasted over 135 days.

May God bless us all and may He forgive us our sins.

Thank you.

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2/26/2024 Regular
Meeting AGENDA ITEM
#11.1

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1 Beth Minor
From: Alice Robinson <[email protected]>
Sent: Thursday, February 22, 2024 9:27 AM
To: Public Comments; All Council Members
Subject: EXTERNAL - Approve Item #11.1 Resolution Calling For A Permanent Ceasefire in Israel and Palestine Public Comment (February 26)
Hello Gilroy City Councilmembers,
I am a Jewish-American Bay Area resident, and I am writing to support Item 11.1, the Resolution Calling For A Permanent Ceasefire in Israel and Palestine (Community Version). I believe that at a time of turmoil and division, this resolution will help to unite the community around the most important value we all share: our deep respect for the value of human life.

The resolution will also send a message to the citizens of Gilroy that the city stands against hate of all kinds, including Islamophobia and antisemitism.

Ceasefire resolutions elsewhere in the Bay Area and around the country have united broad coalitions of individuals of different faiths, ethnicities, and countries of origin. I have seen this myself in my own city, where I am joined by other Jewish-Americans, as well as people of conscience of all faiths and no faith, in efforts to bring about a ceasefire resolution.

I am horrified every day by the loss of life and human suffering Israel is inflicting upon the civilian population of Gaza. Like so many Americans, I am feeling unheard by our political leaders who continue to send my hard-earned tax dollars to Israel in the form of military aid. Passing a ceasefire resolution at the city level allows everyday Americans who value human life everywhere in the world and want to build inclusive communities here at home to feel that their voices matter.

Please, pass the Resolution Calling For A Permanent Ceasefire in Israel and Palestine (Community Version) to show the United States and the world that the people of the Bay Area respect the value of human life for all people.

Sincerely,
Alice Robinson
Redwood City
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2/26/2024 Regular Meeting
AGENDA ITEM #11.1

11.1 p. 175 of 478
1 Beth Minor
From: doug Gary <[email protected]>
Sent: Wednesday, February 21, 2024 9:09 PM
To: All Council Members
Subject: EXTERNAL - Feb. 26 Item 11.1 Resolution of Ceasefire, etc.

Please vote FOR item 11.1 (Feb. 26) Resolution calling for a permanent ceasefire in Israel and Palestine.

It is important for all of us to express our humanity by doing every thing we can to stop this slaughter and
immense suffering of innocent people.

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02/26/2024 Regular
Meeting Agenda Item 11.1

11.1 p. 176 of 478
1 Beth Minor
From: Nuzialavi <[email protected]>
Sent: Thursday, February 22, 2024 2:05 AM
To: All Council Members
Subject: EXTERNAL - Ceasefire approval item #11.1
Hello Gilroy city council members
I am writing to express my deep concern of the devastating humanitarian crisis that is unfolding in Gaza, how it is profoundly impacting our Gilroy and south county community, and urging you to pass the ceasefire resolution to take a stand for peace and humanity.

Ceasefire will save lives in thousands, not just by bombs, but with food availability for the besieged people of Gaza.

South county has many different ethnicities, most of whom support a ceasefire. Many have lost family members in the bombing of Gaza.

With a ceasefire, there will be end to the hostilities, which will help communities here curtail Islamophobia, antisemitism, divisiveness and hate
The city council represents the local community, and thus it is responsible to support it’s concerns. A resolution for a ceasefire will demonstrate your true representation of the community During the previous city council meeting on February 5, Gilroy residents shared how our local Gilroy community is being impacted by the continued violence in Gaza. .

This ceasefire resolution is a unifying act to bring our community together as one. Gilroy previously passed proclamations and resolutions supporting Ukraine and standing against hate, and they did not lead to increased hate or division, they united the Gilroy community to support each other.

Diverse communities across the Bay Area, including Hollister, Santa Clara, Richmond, and Oakland have come together to pass resolutions in support of peace and the protecting of all lives in Gaza. These are communities with families, students, and concerned citizens who have experienced personal losses in Palestine, just as here in Gilroy.

The call for a ceasefire is deeply local and relevant to us as community members who advocate for justice and equality, and I believe that the Gilroy city council needs to promote and champion the values of the people they serve and represent.

I urge the city of Gilroy to stand united alongside a majority of Americans in calling for a permanent ceasefire in Gaza, to advocate for sustainable peace in Palestine and Israel, for an immediate end to the killings of all innocent civilians and the release of all Palestinian and Israeli hostages.

UNICEF says 1,000 Palestinian children have had limbs amputated without anesthesia due to the lack of basic medical resources. On average, more than 10 children per day have lost one or both of their legs in Gaza in the past 4 month time period (UN). According to the UN, women and children are the main victims in Gaza, with 2 mothers losing their lives every hour. There are currently over 66,000 children orphaned in the past 4 months in Gaza. 85% of the 2.2M population in Gaza has been made homeless, 1,870,000 people who are living in frigid temperatures with no shelter, no food, no water and no electricity (World Health Organization & UN). 90% of civilians in Gaza have regularly gone a full day without food and are facing death by disease, injury, and starvation, that's 1,980,000 peo Nuzi Alavi
Sent from my iPad
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2/26/2024 Regular
Meeting AGENDA ITEM
#11.1

11.1 p. 177 of 478
2 Sent from my iPad

11.1 p. 178 of 478
1 Beth Minor
From: Emma Hartung <[email protected]>
Sent: Wednesday, February 21, 2024 5:53 PM
To: Public Comments; All Council Members
Subject: EXTERNAL - Approve Item #11.1 Resolution Calling For A Permanent Ceasefire in Israel and Palestine Public Comment (February 26)
Dear Gilroy City Councilmembers,
I'm writing as a local Jewish resident urging you to support Item 11.1, the Resolution Calling For A Permanent Ceasefire in Israel and Palestine (Community Version).

I see it as my duty as a Jewish American and as an educator (formerly middle school, now college) to stand up against genocide. I’ve spent the past five years working with undergraduates at Stanford, and like so many other community members across the county, our students are not okay and will not be okay until a permanent ceasefire is established. We have teenage students desperately fundraising to get their entire families out of Gaza. We have students facing terrifying Islamophobic and anti-Palestinian anti-Arab anti-Muslim threats: I had one Palestinian student tell me that they’ve switched from wearing hijab to wearing hoodies as a hair covering because they’re afraid of being targeted and attacked. We have an Arab student deliberately targeted in a hate crime by a hit and run driver who is still recovering from his injuries. We had a truck parked on campus with a sign in Arabic-only saying “we will shoot you if you approach.” These students all have the support of their peers including Jewish students, but they cannot be students right now – they need an immediate and permanent ceasefire to both save their family members’ lives and de-escalate this Islamophobic rhetoric we’re seeing on the news and social media.

I have heard too many stories through friends and colleagues of bullying and harassment among younger students as well. For example, at Christopher High School just a few weeks ago, students and residents are experiencing a rise in targeted antisemitism and Islamophobia hate. Gilroy children and community are looking to our council members to show true leadership and "Stand United Against Hate". What occurs internationally has a direct impact here.

A ceasefire resolution would demonstrate that our Gilroy city leaders recognize the horrific atrocities occurring in Gaza, the extensive killing of innocent civilians, and the heartbreaking impact on local families. It sends a clear message to all children and families in Gilroy that their leaders advocate for peace and against the killings of any innocent civilians rather than remaining silent while mass killings continue to occur.

Please show the leadership we need by passing a ceasefire resolution to advocate for sustainable peace and an immediate end to the killings of all innocent civilians and the release of all Palestinian and Israeli hostages. Please immediately pass the Resolution Calling For A Permanent Ceasefire in Israel and Palestine (Community Version).

Sincerely,
Emma Hartung
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2/26/2024 Regular
Meeting AGENDA ITEM
#11.1

11.1 p. 179 of 478
1 Beth Minor
From: Raeena Lari <[email protected]>
Sent: Thursday, February 22, 2024 11:29 AM
To: Public Comments; All Council Members
Subject: EXTERNAL - Support item#11.1 Resolution calling for a Permanent Ceasefire (February 26) Attachments: 01292024_RESOLUTION_Recognizing Sustained Peace and Safety for All Children.pdf; Attachment-244201.pdf
Dear Council Members,
I am writing to you in my personal capacity. As a trustee of the area, Gilroy is very close to my heart.

I would like to urge the Gilroy City Council to urgently pass a ceasefire resolution to end the humanitarian crisis in Gaza which is disproportionately impacting women and children. We need a ceasefire to stop the tragic loss of life and to release hostages on both sides.

Gilroy needs to be on the right side of history and add our voice to the following:
 Santa Clara County Democratic Central Committee Resolution https://sccdp.org/wpcontent/uploads/2024/01/A-Call-for-Immediate-Cease-fire-in-Gaza-and-Provision-of-Humanitarian-Aid.pdf  Resolution passed by Santa Clara County Board of Education (attached)  Human Rights Commission Santa Clara County Statement on the War on Gaza (attached)  Statement by Congressman Ro
Khanna https://x.com/reprokhanna/status/1728792989978288434?s=42&t=dTAhxKRjaryXG3OZprnQTQ  Statement by Congresswoman Zoe Lofgren https://lofgren.house.gov/media/press-releases/rep-lofgren-urgesisrael-hamas-all-involved-parties-continue-pursuing-terms  Statement by Senator Dave Cortese:
 "A Message of Peace and Humanity
"In the face of ongoing and unspeakable violence, let us please acknowledge the profound loss of lives, and recognize the humanity of both the Palestinian and Israeli people.

The United States must reassert its leadership role as a negotiator in the pursuit of a lasting peace. This means addressing the root causes of this violence and working to bring about an end to this prolonged period of tragedies in which innocent people and children are bearing the brunt of the suffering.

I join many other elected leaders, locally and globally, as well as countries, organizations, and voices for peace in calling for an urgent and immediate ceasefire.

I believe that this is an attainable reality"
Dave Cortese
California State Senator, District 15"
Looking forward to your support in this movement to make our world safer for all our children, Warmly,
Raeena
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AGENDA ITEM #11.1
02/26/2024 Regular Meeting

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2 11.1
p. 181 of 478

RESOLUTION RECOGNIZING SUSTAINED PEACE AND SAFETY FOR ALL CHILDREN

SANTA CLARA COUNTY BOARD OF EDUCATION
RESOLUTION No. 2432-1
WHEREAS, the Santa Clara County Board of Education (SCCBOE) is committed to promoting inclusive and just conditions where all our students, staff members, and families feel a sense of belonging; and WHEREAS, the SCCBOE acknowledges the suffering of the peoples of the Middle East, including Palestinian and Israeli children, and affirms our shared humanity; and WHEREAS, the SCCBOE previously adopted resolutions “Denouncing Anti-Semitism” and “Denouncing Islamophobia'' and reaffirms our denunciation of Anti-Semitism and Islamophobia; and WHEREAS, we cherish our cultural richness and strive to ensure all communities feel respected and heard, including our Jewish, Muslim, Christian, Israeli-American, Arab-American, Palestinian-American, and other Middle Eastern-American communities; and
WHEREAS, the SCCBOE recognizes the history of conflicts in the Middle East; and WHEREAS, the SCCBOE values peaceful conflict resolutions in the world and in our schools and classrooms; now
THEREFORE, BE IT RESOLVED, that the SCCBOE strives to lead by example in demonstrating to students how people with disparate perspectives can support students’ emotional and mental health needs by uniting in our advocacy for peaceful and respectful dialogue and resolution among all parties involved in the Middle East; and
BE IT FURTHER RESOLVED, that the SCCBOE urges our community to develop and participate in activities that foster respect, empathy, education, and understanding of people of all backgrounds and religious faiths; and
BE IT FURTHER RESOLVED, that the SCCBOE looks forward to a future where all can live with dignity and security in peace; and
BE IT FURTHER RESOLVED, that the SCCBOE believes together as concerned leaders we must foster hate-free communities, classrooms, and schools in which hate speech, bullying, and violence are addressed; and

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BE IT FURTHER RESOLVED that the SCCBOE calls for a ceasefire for sustainable peace and the release of all hostages in the Middle East, including Palestine and Israel, which demonstrates to Santa Clara County students that leaders can advocate for peaceful conflict resolution for the good of humanity and for the sake of children; and
BE IT FURTHER RESOLVED that the SCCBOE affirms the American Academy of Pediatrics’ following policy statement:
• Children should never be harmed because of the religious, cultural, and other beliefs and values of the child and/or their family;
• Harm to children should never be used as a tool or tactic of war or conflict; • Children should be protected from the direct effects of armed conflicts and their food, housing, health, and other basic needs safeguarded; and
BE IT FURTHER RESOLVED that the Santa Clara County Board of Education strives to ensure each and every Santa Clara County student feels safe and valued, and that hate speech, Islamophobia, AntiSemitism, Anti-Palestinian racism, and Anti-Israeli racism must be condemned and eliminated in all learning environments.

PASSED AND ADOPTED by the County Board of Education at a meeting held on January 29, 2024, by the following vote:

AYES: President Berta and Trustees Chon, Di Salvo, Lari, and Mah NOES: none
ABSTAIN: Vice President Rocha and Trustee Sreekrishnan
ABSENT: none
Maimona Afzal Berta, President
Santa Clara County Board of Education

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City of Gilroy

STAFF REPORT
Agenda Item Title: Consent of the Appointment of Beth Minor as Interim City Clerk (Retired Annuitant) Effective February 27,
2024, and Adoption of a Resolution of the City
Council of the City of Gilroy Approving the
Appointment and Employment Agreement
Meeting Date: February 26, 2024
From: Jimmy Forbis, City Administrator
Department: Administrative Services
Submitted By: LeeAnn McPhillips, Administrative Services and Human Resources Director / Risk Manager
Prepared By: LeeAnn McPhillips, Administrative Services and Human Resources Director / Risk Manager
STRATEGIC PLAN GOALS Not Applicable

RECOMMENDATION
a. Consent the City Administrator’s recommendation to appoint Beth Minor as Interim City Clerk (as a retired annuitant) effective February 27, 2024. b. Adopt a Resolution of the City Council of the City of Gilroy approving the appointment of Beth Minor as Interim City Clerk (Retired Annuitant) pursuant to California Government Code Section 21221(h) and authorizing the City Administrator to execute the employment agreement.

EXECUTIVE SUMMARY
To ensure continuity in the coordination of the City Clerk’s Office, it is recommended that the City Council consent the appointment of Beth Minor as Interim City Clerk (retired annuitant) effective February 27, 2024, and approve the resolution consenting the appointment and authorizing the City Administrator to execute the employment agreement.

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Consent of the Appointment of Beth Minor as Interim City Clerk (Retired Annuitant) Effective February 27, 2024 and Adoption of a Resolution of the City Council of the City of Gilroy Approving the Appointment and Employment Agreement
City of Gilroy City Council Page 2 of 4 February 26, 2024 1 5 BACKGROUND
Due to a recent resignation the City of Gilroy has a vacancy in the position of City Clerk.

The City plans to commence a recruitment for City Clerk right away (prior to February 27, 2024) and hire an Interim City Clerk to serve in this position while the recruitment is being conducted. Former Palo Alto City Clerk Beth Minor is available to serve as the Interim City Clerk. Ms. Minor is a California Public Employees’ Retirement System (CalPERS) retired annuitant having retired in 2021. She has the education, skills, and experience to hit the ground running and serve as Gilroy’s Interim City Clerk beginning February 27, 2024. In fact, Ms. Minor has been hired as a temporary, extra-help employee until this interim appointment could be placed on the Council agenda.

Ms. Minor has over twenty-eight years of related municipal work experience. She served in the City of Palo Alto City Clerk’s Office for fourteen years with six of those years as City Clerk and eight years as Assistant City Clerk. Given her work in Palo Alto, Ms. Minor is well versed with the Santa Clara County Registrar of Voters and election processes. In addition, she has experience with Fair Political Practices Commission (FPPC) and the required filings as well as the requirements of the Public Records Act.

She is well-versed in open meeting laws, preparing agenda packets, taking minutes, maintaining records, and all of the important functions of a full-service City Clerk’s Office.

California Government Code Section 21221(h) allows an agency to hire a retired annuitant to serve in an “interim” position when there is an immediate need for expertise and specialized skills and a recruitment is underway for the position. As noted above, prior to February 27, 2024, the city will initiate a recruitment for a new City Clerk and complete the selection process in the next three to four months. Further, the retired annuitant may not work more than 960 hours in a fiscal year and cannot receive any compensation other than the hourly rate of pay for the work performed by other employees performing comparable duties.

In the Interim City Clerk role, Ms. Minor agrees to perform the following duties related to the Gilroy City Clerk’s Office:
a. Develop and direct the implementation of goals, objectives, policies, procedures, and work standards for the City Clerk’s Office.
b. Prepare and complete public noticing of hearings and meetings. c. Prepare and direct the distribution of Council agenda materials. d. Follow-up after Council meetings to ensure that appropriate actions are taken, questions answered, and individuals notified.
e. Develop and/or maintain a Citywide, computer-based records management system.
f. Answer questions regarding City activities, policies, and regulations. g. Distribute and process election documents.
h. Coordinate the formation of assessment districts.

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Consent of the Appointment of Beth Minor as Interim City Clerk (Retired Annuitant) Effective February 27, 2024 and Adoption of a Resolution of the City Council of the City of Gilroy Approving the Appointment and Employment Agreement
City of Gilroy City Council Page 3 of 4 February 26, 2024 1 5 i. Prepare and monitor the budget for the City Clerk’s office. j. Coordinate official filing for Fair Political Practices Commission documents. k. Evaluate and assign work to assigned clerical and/or support personnel and provide for their training and professional development. l. Be responsible for the morale and productivity of the City Clerk’s office. m. Interpret City and Department policies and procedures to assigned employees. n. Provide varied staff assistance to the City Administrator, including providing agenda support for agenda review and other similar meetings, ensuring for agenda production consistent with direction received, attending assigned meetings, proactively communicating matters related to the City Clerk’s office, obtaining information from various departments and conducting studies and projects related to any City function as directed.
o. Coordinate City Clerk activities with those of other City departments to ensure completion of the work.
p. Maintain records of Campaign Statements distribute and file same on all elected officials as required by law.
q. Provide staff support directly, or through delegation to City Clerk’s Office staff, to the Mayor and City Council as requested. Support work includes items such as opening and evaluating mail, scheduling meetings, organizing files, preparing correspondence, gathering information, ordering supplies, coordinating training and/or conference registration, etc.
r. Ensure that the City Council, City Clerk, and Boards & Commissions aspects of the City website are current.
s. Comply with the Open Government Ordinance.
t. Serve as Staff Liaison to Open Government Commission. Prepare agendas and minutes and attend quarterly meetings.
u. Coordinate and/or respond to Public Records Act requests for records and information.
v. Maintain Public Records Act log and ensure compliance as required by Public Records Act.
w. Administer procedure for recruitment of City Council appointed Boards, Commissions, and Committees and maintain Local Appointments List as required by the Maddy Act.
x. Any other duties or assignments typically assigned to the City Clerk.

As Interim City Clerk, Ms. Minor will report directly to the City Administrator for day-today work and shall comply with all City rules, policies, guidelines, regulations, and laws.

For specific work items noted in the City Charter (elections), Ms. Minor will report to the City Council.

Ms. Minor will be paid $69.11 per hour with no other benefits or incentives.

ALTERNATIVES

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Consent of the Appointment of Beth Minor as Interim City Clerk (Retired Annuitant) Effective February 27, 2024 and Adoption of a Resolution of the City Council of the City of Gilroy Approving the Appointment and Employment Agreement
City of Gilroy City Council Page 4 of 4 February 26, 2024 1 5 The alternatives would be not to approve the interim appointment and the city would need to identify someone else to serve as the Interim City Clerk or leave the position vacant. These alternatives are not recommended.

FISCAL IMPACT/FUNDING SOURCE
This interim appointment provides a cost savings to the city as only the hourly rate for the position is paid to the retired annuitant and not any benefits. It is estimated that this interim appointment will save the city approximately $6,000 per month when filled on a full-time basis. Over a four-month period, the savings will total approximately $26,000.

NEXT STEPS
Upon Council approval, the City Administrator will sign the employment agreement. In addition, staff will initiate work to begin the City Clerk recruitment process prior to February 27, 2024.

Attachments:

1. City Council Resolution Appointing Beth Minor as Interim City Clerk February 2024

2. Exhibit A Employment Agreement Beth Minor Retired Annuitant February 2024

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RESOLUTION NO. 2024-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF GILROY APPOINTING BETH MINOR AS INTERIM

CITY CLERK AND APPROVING EMPLOYMENT

AGREEMENT
WHEREAS, Government Code Section 21221(h) permits the City Council to appoint a retired annuitant to a vacant position requiring specialized skills during recruitment for a permanent appointment, and provides that such appointment will not subject the retired person to reinstatement from retirement or loss of benefits so long as it is a single appointment that does not exceed 960 hours in a fiscal year; and
WHEREAS, Beth Minor retired from California Public Employees’ Retirement System employment in July 2021; and
WHEREAS, Beth Minor has over fourteen years of municipal City Clerk’s Office experience and most recently served as the City of Palo Alto City Clerk for six years; and WHEREAS, the position of City Clerk became officially vacant on February 16, 2024, following the resignation of Thai Pham; and
WHEREAS, the Gilroy City Council desires to consent the City Administrator’s recommendation to appoint retired annuitant Beth Minor to the vacant position of Interim City Clerk for the City of Gilroy under Government Code Section 21221(h), effective February 27, 2024; and WHEREAS, Beth Minor has experience leading a full-service City Clerk’s Office to include experience with elections, open meeting requirements, Fair Political Practices Commission regulations, Public Records Act requirements, meeting agendas and minutes preparation, and most all functions found within a municipal City Clerk’s Office; and WHEREAS, an appointment under Government Code Section 21221(h) requires that the City has initiated steps to begin the recruitment process for the vacant position; and WHEREAS, this Section 21221(h) appointment shall only be made once and therefore will end on the date immediately preceding the date on which the permanent replacement for the vacant position of City Clerk for the City of Gilroy commences his or her employment or, if earlier, the date that this appointment is terminated by the City or Beth Minor; and WHEREAS, the entire employment agreement between Beth Minor and the City of Gilroy has been reviewed by this body and is attached hereto as Exhibit A; and WHEREAS, no matters, issues, terms, and/or conditions related to this employment and appointment have been or will be placed on the consent calendar; and WHEREAS, the employment shall be limited to 960 hours per fiscal year; and WHEREAS, the compensation paid to retirees cannot be less than the minimum nor exceed the maximum monthly base salary paid to other employees performing comparable duties, divided by 173.333 to equal the hourly rate; and

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Resolution No. 2024-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY APPOINTING BETH MINOR AS

INTERIM CITY CLERK AND APPROVING EMPLOYMENT AGREEMENT
City Council Meeting | February 26, 2024

Page 2 of 3 ends

WHEREAS, the maximum base monthly salary for this position is $11,978.25 and the hourly equivalent is $69.11 and the minimum base monthly salary for this position is $8.983.33 and the hourly equivalent is $51.83; and
WHEREAS, the hourly rate to be paid to Beth Minor will be $69.11; and WHEREAS, Beth Minor has not and will not receive any other benefit, incentive compensation in lieu of benefits or any other form of compensation in addition to this hourly pay rate.

NOW, THEREFORE, the City Council of the City of Gilroy hereby finds, determines, and resolves as follows:

1. The City Council has considered the full record before it, which may include but is not limited to such things as the staff report, testimony by staff and the public, and other materials and evidence submitted or provided to it. Furthermore, the recitals set forth above are found to be true and correct and are incorporated herein by reference.

2. The City Council hereby certifies the nature of the employment of Beth Minor as described herein and detailed in the attachment employment agreement and that this appointment is necessary to fill the critically needed position of City Clerk for the City of Gilroy to provide the specialized skills necessary to manage the Gilroy City Clerk’s Office functions.

3. The City Council hereby authorizes the appointment of Beth Minor to Interim City Clerk effective on February 27, 2024 pursuant to the authority provided under Government Code Sections 21221(h), which shall end on the date immediately preceding the date on which the permanent replacement for the vacant position of City Clerk for the City of Gilroy commences his or her employment or, if earlier, the date that this appointment is terminated by the City or Beth Minor.

4. The employment agreement with Beth Minor, a copy of which is attached hereto as Exhibit A and will be maintained on file with the Human Resources Department, is approved by the City Council, effective on February 27, 2024.

5. The City Administrator is authorized to execute said agreement on behalf of the City, with such technical amendments as may be deemed appropriate by the City Administrator and City Attorney.

PASSED AND ADOPTED this 26th day of February, 2024 by the following roll call vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

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Resolution No. 2024-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY APPOINTING BETH MINOR AS

INTERIM CITY CLERK AND APPROVING EMPLOYMENT AGREEMENT
City Council Meeting | February 26, 2024

Page 3 of 3 ends

ABSENT: COUNCIL MEMBERS:

APPROVED:

Marie Blankley, Mayor
ATTEST:
_______________________
LeeAnn McPhillips
Assistant City Administrator/
Administrative Services &
Human Resources Director

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City of Gilroy

STAFF REPORT
Agenda Item Title: Receive Fiscal Year 2023-2024 (FY24) Mid-Year Budget Report and Adopt a Budget Amendment
Resolution
Meeting Date: February 26, 2024
From: Jimmy Forbis, City Administrator
Department: Finance
Submitted By: Harjot Sangha, Finance Director
Prepared By: Carina Baksa, Finance Manager
STRATEGIC PLAN GOALS Develop a Financially Resilient Organization

RECOMMENDATION
a. Receive Mid-Year Budget Report for FY24.
b. Adopt a Resolution of the City Council of the City of Gilroy Amending the Appropriations for FY24 in Fund 293.

EXECUTIVE SUMMARY
This report provides the City Council with an update on the Fiscal Year 2024 (FY24) Budget as of December 31, 2023 and appropriates funds in the Opioid Settlement Fund (F293)

BACKGROUND
The FY24 budget was adopted on June 5, 2023, and FY24 activity began on July 1, 2023. The City has now had two full quarters of operations for FY24. Staff presented to Council the First Quarter Financial update on December 11, 2023. This report provides a financial summary of activity for the period of July 1, 2023, through December 31, 2023.

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Receive Fiscal Year 2023-2024 Mid-Year Budget Report and Departmental Workplan Update City of Gilroy City Council Page 2 of 10 February 26, 2024 1 4 Additionally, as part of the National Opioid Settlements with various pharmaceutical companies, settlements are to provide funds for the abatement of the opioid epidemic in California and throughout the United States and require that the companies change the way they conduct their businesses. The City, through an allocation from the State, has received approximately $41,000 in funds to date to continue investing in opioid treatment, education and prevention efforts. Staff requests that the City Council adopt a Resolution increasing the appropriations in the Opioid Settlement Fund for FY24 in the amount of $41,000.

ANALYSIS
General Fund Forecast Update
The City Council last received the General Fund forecast at the December 11, 2023, City Council meeting. The chart below is an updated General Fund Forecast, which incorporates additional revenue adjustments based on the updates the City has received since December 2023.

Following are the notable adjustments to the updated General Fund Forecast:
• Sales Tax – At the October 2, 2023, and December 11, 2023, City Council meetings, staff shared with the City Council that the FY24 sales tax revenue is expected to come in under budget by $0.9 million. Based on the latest sales tax report, there is an additional decline of $0.2 million now projected for FY24, bringing the total to $1.1 million under budget. The additional decline is primarily in the County pool allocation of online sales in the current fiscal year. • Property Tax – At the October 2, 2023, City Council meeting, staff provided an update on the property tax revenue, particularly on developments regarding the Excess Educational Revenue Augmentation Fund (ERAF). The following are two updates regarding property tax revenue forecast and the ERAF. o Real Property Assessment Roll – Based on the latest County information, the annual growth in the real property assessment roll for FY25, countywide, is trending lower compared to the prior years, notably due to fewer home sales occurring which typically trigger a reassessment of

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Receive Fiscal Year 2023-2024 Mid-Year Budget Report and Departmental Workplan Update City of Gilroy City Council Page 3 of 10 February 26, 2024 1 4 property’s assessed value. As of February 1, 2024, The City of Gilroy’s FY25 real property assessment roll growth, compared to the FY24 closed roll, is 3.96%, which is higher than the countywide average of 3.46%. As a point in comparison, Gilroy’s real property assessment roll growth a year ago, as of February 1, 2023, was 5.09%, and the countywide average was

4.56%. Much of the growth for FY25 is projected to be the Proposition 13’s annual consumer price index (CPI) adjustment of 2%, with new construction and transfer of ownership added value. In addition, the County is expecting to receive increased assessment appeals from commercial property owners, likely triggering temporary reductions in assessed value as allowed by Proposition 8. Commercial properties, notably office buildings and shopping centers/malls, are experiencing high vacancy rates and projected to decline in value. If this materializes, property tax revenue from commercial real asset class will also decline.

This will particularly impact cities to the north, such as San Jose, which have a large share of the assessment generated from such property types. For Gilroy, the impact is expected to be not as severe, as almost 80% of the assessed value is from residential properties, and approximately 10% is from commercial. No adjustment is recommended to the secured property tax forecast currently.
o Excess ERAF – Staff previously shared with the City Council that the California School Boards Association (CSBA) legal matter regarding ERAF allocation to charter schools was resolved and the CSBA Appeal was ultimately denied. In January 2024, the Governor released his proposed budget for FY25, which includes a proposal to make a legislative change to allocate ERAF to charter schools, which would reverse the appellate decision. The potential impact of this proposal is approximately $0.2 million reduction in ERAF allocation to the City of Gilroy on a going forward basis. This adjustment is included in the updated forecast.

In addition, as previously shared, the State Controller’s Office (SCO) is reviewing the Excess ERAF calculation for Marin County, a result of which could impact particularly the five bay area counties that generate excess ERAF, including Santa Clara County. The potential impact is approximately 22%, or $0.4 million, reduction in Excess ERAF to the City of Gilroy on a going forward basis. The SCO has asserted a three-year claw back provision as well, under which the County and cities would need to return or provide future offset from Excess ERAF allocations. For the prior three fiscal years, under claw back provision, staff calculated Gilroy’s amount to be $1.2 million. The County of Santa Clara filed a lawsuit against the SCO on this matter in late December 2023. Staff has included the ongoing 22%, or $0.4 million, reduction in the updated forecast. No adjustment for the potential claw back provision is made at this time as staff expect the result of the review and any related agreement reached

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Receive Fiscal Year 2023-2024 Mid-Year Budget Report and Departmental Workplan Update City of Gilroy City Council Page 4 of 10 February 26, 2024 1 4 will likely be on a going forward basis. Staff is monitoring the developments and will provide updates at future quarterly budget updates. • Investment Income – Given the rapid rise in the interest rate environment, the City’s idle cash, which is currently invested in the State’s Local Agency Investment Fund (LAIF) and US Treasury Securities, is projected to generate additional investment income. The General Fund is now projected to generate over $1.0 million in investment income in FY24. Subsequent years’ assumptions have also been adjusted.

Overall, the adjustments resulted in a minor net revenue decrease of $0.2 million and $0.1 million in FY24 and FY25, respectively, and the operating margin is now projected to be negative $0.3 million and $0.8 million, respectively. The General Fund is expected to maintain the minimum required fund balance over the next several years, through FY27, and dip below the required level in the latter two years of the forecast which will need to be addressed in future budget development cycles to ensure the General Fund remains structurally balanced.

General Fund
Revenues
General Fund revenues received through December 31, 2023 total $23.0 million, or 35% of the amended budget of $66.2 million. Revenues received up to this point are typically under the 50% fiscal-year mark, especially tax revenues, due to the lag between when the economic transaction occurs and when the City’s revenues are received. The table below provides a breakdown of General Fund revenues by category and a comparison of the actual revenues for the first quarter to the amended budget.

Sales Tax - The City receives its sales tax revenue approximately two months after funds are collected by the California Department of Tax and Fee Administration. The FY24 budget for sales tax revenue is $21.8 million of which $7.0 million (32%) has been received as of December 31, 2023. Receipts reflect collections for the period of July General Fund Revenues by
Category
FY24 Amended
Budget
Actuals through
December 31, 2023 % of Budget
Sales Tax $ 21.8 $ 7.0 32%
Property Tax 20.4 5.1 25%
Utility User Tax 6.5 2.9 44%
Franchise Tax 2.3 0.4 15%
Transient Occupancy Tax 2.0 0.5 27%
Business License 0.7 0.3 43%
Other Revenues 12.5 6.8 55%
Total $ 66.2 $ 23.0 35%
(In Millions)

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Receive Fiscal Year 2023-2024 Mid-Year Budget Report and Departmental Workplan Update City of Gilroy City Council Page 5 of 10 February 26, 2024 1 4 through November 2023. Based on the previous quarterly sales tax report, it was reported that the City’s sales tax revenue for FY24 was expected to come in under budget by approximately $0.9 million, the latest quarterly report has revised the estimated shortfall to $1.1 million under budget for FY24.

Property Tax - The City’s property tax revenues are received in various intervals from Santa Clara County and are not distributed in even amounts. Property tax installments are typically due in November and April of each fiscal year. The FY24 budget for property tax revenue is $20.4 million of which $5.1 million (25%) has been received as of December 31, 2023. Much of the annual property tax revenue is received in the second half of the fiscal year. At this time, property tax revenue is projected to come in at the budgeted amount.

Utility Users Tax (UUT) - Utility taxes are assessed against the value of energy and telecommunications, such as gas, electricity, steam, cable, and phone charges. The current tax rates are 4.5% for telecommunications and 5% for gas and electricity. The City’s UUT revenues are received one month after the revenues are earned. The FY24 budget for utility user tax is $6.5 million of which $2.9 million (44%) has been received as of December 31, 2023. Receipts to date represent revenue through the month of November. The utility user tax is projected to come in higher than budget.

Franchise Tax - The City receives franchise tax revenue from three franchise types, including gas and electric, cable tv, and garbage/refuse. The FY24 budget for franchise tax is $2.3 million of which $0.4 million (15%) has been received as of December 31, 2023, which primarily reflects quarterly cable franchise payments. The larger portion of franchise tax comes from PG&E, which remits payments once a year and is typically received in the fourth quarter of the fiscal year.

Transient Occupancy Tax (TOT) - The City’s TOT revenue comes from a 9% tax on hotel room rentals under 30 days, as well as from some of the RV parks in the City. The hotels pay within one month after their quarter ends. FY24 budget for TOT is $2.0 million of which $0.5 million (27%) has been received as of December 31, 2023, which reflects one quarter of returns. At this time, TOT revenue is expected to come in at budgeted levels.

Business License - The FY24 budget for Business License fees is $0.7 million of which $0.3 million (43%) has been received as of December 31, 2023. The business license revenue is tied to the timing of the annual renewal of the license. At this time, Business License revenue is expected to come in at budgeted levels.

Other General Fund revenues - This category comprises departmental service charges, general administration charges, fines and forfeitures, and other intergovernmental revenues. The FY24 budget for this aggregate revenue category is $12.5 million of which $6.8 million (55%) has been received as of December 31, 2023. At this time, this revenue is expected to come in at budgeted levels.

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Receive Fiscal Year 2023-2024 Mid-Year Budget Report and Departmental Workplan Update City of Gilroy City Council Page 6 of 10 February 26, 2024 1 4 Expenditures
General Fund expenditures as of December 31, 2023 total $33.1 million, or 45% of the amended budget of $74.1 million. The table below provides a breakdown by department and function. It compares the actual expenditures for the first two quarters to the amended budget. Generally, departments are within or below their expenditure target for this time of the fiscal year. Savings are primarily due to Departmental vacancies.

Non-General Fund
Revenues
The City has approximately 60 non-general funds. The information (revenues and expenditures) for these funds is presented in the table below in aggregate, by fund type, along with a brief description of what is included in these categories.

Non-General Fund revenues received as of December 31, 2023 total $37.4 million or 39% of the amended budget of $95.9 million. Revenues received up to this point are usually under the 50% fiscal-year mark due to the timing of receipts, especially for special revenue and capital/development funds.

General Fund Expenditures
by Department/Function
FY24 Amended
Budget
Actuals through
December 31, 2023 % of Budget
Administration $ 3.8 $ 1.5 41%
Recreation Transfer 1.5 0.8 50%
Other Transfers 1.0 0.5 50%
Human Resources 1.7 0.7 38%
Community Development 6.1 2.5 41%
Finance 1.2 0.5 42%
Fire 15.4 7.3 47%
Other General Government 2.8 1.3 46%
Police 30.8 14.9 48%
Public Works 9.8 2.8 29%
Total $ 74.1 $ 32.8 44%
(In Millions)

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Receive Fiscal Year 2023-2024 Mid-Year Budget Report and Departmental Workplan Update City of Gilroy City Council Page 7 of 10 February 26, 2024 1 4 Special Revenues – The primary source of this fund type is intergovernmental funds in the manner of tax sharing or grants from Federal, State, County, and other regional governments. For the City of Gilroy, these Special Revenues provide funding for transportation (Gas Taxes, Vehicle Registration, and Measure B), public safety (Proposition 172 sales tax, Gang Prevention, and regional task forces), and community development (CDBG and housing) among others. The FY24 budget for Special Revenues is $9.3 million of which $3.0 million (32%) has been received as of December 31, 2023.

Recreation – The Recreation Fund receives an annual allocation of $1.5 million from the General Fund and, in addition, acquires revenues from charges for services or grants related to recreation programs. The services provided by Recreation are seasonal, typically most active during spring and summer. The FY24 budget for Recreation revenue is $2.3 million of which $1.1 million (48%) has been received as of December 31, 2023.

Capital/Development Impact Funds – Revenues in the Capital and Development Impact Funds are primarily generated by new development approvals and the required contributions to offset infrastructure impacts. Revenue depends on the size and impact of the development and the timing of the project; therefore, revenue is not evenly distributed throughout the fiscal year. The FY24 budget for Capital/Development Funds revenue is $32.1 million of which $6.5 million (20%) has been received as of December 31, 2023. In discussion with the Public Works Department there is an indication that large development projects previously expected to materialize in FY24 may be delayed into FY25, thus the related impact fee revenues will also be collected in the next fiscal year.

Debt Service - Debt Service funds receive their revenue from annual property tax levies and/or via interfund transfers from other funds and are typically aligned with the timing of the debt service payment.

Non-General Fund
Revenues by Fund Type
FY24 Amended
Budget
Actuals through
December 31, 2023 % of Budget
Special Revenues $ 9.3 $ 3.0 32%
Recreation 2.3 1.1 48%
Capital/Development 32.1 6.5 20%
Debt Service 5.0 1.6 31%
Internal Service 16.2 7.9 49%
Sewer 16.4 9.0 55%
Water 14.5 8.3 57%
Total $ 95.9 $ 37.4 39%
(In Millions)

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Receive Fiscal Year 2023-2024 Mid-Year Budget Report and Departmental Workplan Update City of Gilroy City Council Page 8 of 10 February 26, 2024 1 4 Internal Service – Internal Service Funds (Information Technology (IT), Fleet, Facilities, Worker’s Compensation, and Liability Funds) primarily receive their revenue from charges to other departments and funds in the City. These charges are typically assessed in equal monthly amounts based on the budget, and therefore, it is expected that the full budgeted amount will be received.

Sewer – The FY24 budget for Sewer revenue is $16.4 million of which $9.0 million (55%) has been received as of December 31, 2023. The Sewer Fund is tracking above for the period. The Sewer Enterprise Fund generates its revenue from utility user charges.

Water – The FY24 budget for Water revenue is $14.5 million of which $8.3 million (57%) has been received as of December 31, 2023. The Water Fund is tracking above for the period. Like the Sewer Fund, the Water Fund generates its revenues from utility user charges.

Expenditures
Non-General Funds expenditures as of December 31, 2023 total $39.2 million, or 29%, of the amended budget. The table below presents the Non-General Fund expenditures by Fund Type.

Special Revenues – The primary expenditures in this fund type are for roads and sidewalk infrastructure, followed by grant related expenditures for the Police Department. As of December 31, 2023, expenditures are at $6.2 million (41%) of the budgeted amount of $15.1 million. Road and infrastructure capital projects typically commence after the winter/rainy season. Therefore, staff expects funds to be encumbered and expenditures to occur in the latter part of the fiscal year.

Recreation – As of December 31, 2023, expenditures are at $0.9 million (43%) of the budgeted amount of $2.1 million. The services provided by Recreation are seasonal, typically most active during spring and the summer.

Non-General Fund
Expenditures by Fund Type
FY24 Amended
Budget
Actuals through
December 31, 2023 % of Budget
Special Revenue $ 15.1 $ 6.2 41%
Recreation 2.1 0.9 43%
Capital/Development 35.1 3.3 10%
Debt Service 4.9 2.9 59%
Internal Service 22.0 7.0 32%
Sewer 36.5 12.5 34%
Water 20.0 6.3 31%
Total $ 135.8 $ 39.2 29%
(In Millions)

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Receive Fiscal Year 2023-2024 Mid-Year Budget Report and Departmental Workplan Update City of Gilroy City Council Page 9 of 10 February 26, 2024 1 4 Capital/Development – As of December 31, 2023, expenditures are at $3.3 million (10%) of the budgeted amount of $35.1 million. The below target spending is primarily in the capital outlay. Several capital projects are currently in their design phases and the Capital/infrastructure construction phase, the larger category of expenditure, typically commence after the winter/rainy season, therefore staff expects funds to be encumbered and expended in the latter part of the fiscal year.

Debt Service – As of December 31, 2023, expenditures are at $2.9 million (59%) of the budgeted amount of $4.9 million. The debt service payments typically include semiannual interest payments, and one annual principal payment.

Internal Services - As of December 31, 2023, expenditures are at $7.0 million (32%) of the budgeted amount of $22.0 million. The City’s internal services funds are IT, Fleet, Facilities, Equipment Outlay, Worker’s Compensation, and Liability Funds.

Sewer – As of December 31, 2023, expenditures are at $12.5 million (34%) of the budgeted amount of $36.5 million. Approximately $27.0 million of this budget is related to capital outlay, primarily the South County Regional Wastewater Authority’s Plant Expansion project which is currently under construction.

Water – As of December 31, 2023, expenditures are at $6.3 million (31%) of the budgeted amount of $20.0 million. Approximately $4.2 million of this budget is related to capital outlay projects, several of which are in their design phases and expected to commence in the latter part of the fiscal year.

FY24 Budget Adjustment
As part of the National Opioid Settlements with various pharmaceutical companies, settlements are to provide funds for the abatement of the opioid epidemic in California and throughout the United States and require that the companies change the way they conduct their businesses. The City of Gilroy, through an allocation from national settlements and funneled via formula through the State of California, has received $41,000 thus far. Staff is recommending the City Council adopt a resolution to appropriate in FY24 $41,000 in the Opioid Settlement Fund (Org/Object Code:
2931000-52610) for the purchase of Narcan (Naloxone) and to continue the City’s campaign of public awareness about opioid addiction.

ALTERNATIVES
There are no recommended alternatives to the Mid-Year financial report for the period ending December 31, 2023.

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Receive Fiscal Year 2023-2024 Mid-Year Budget Report and Departmental Workplan Update City of Gilroy City Council Page 10 of 10 February 26, 2024 1 4 Council could reject the resolution to appropriate the $41,000 in Fund 293 for FY24.

Staff does not recommend this option as it would mean an alternative funding source would need to be utilized for purchase of Narcan, or the City may not purchase the same quantity of Narcan as is possible with use of these funds.

FISCAL IMPACT/FUNDING SOURCE
The fiscal impact of the Mid-Year Financial Report for FY24 has been discussed in the above report.

The fiscal impact of appropriating the $41,000 in the Opioid Settlement Fund would be an increase in budgeted appropriations in Fund 293.

Attachments:

1. Draft Resolution – FY24 Increase Appropriations in Opioid Settlement Fund (F293)

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RESOLUTION NO. 2024-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY

AMENDING THE BUDGET FOR THE CITY OF GILROY FOR FISCAL
YEAR 2024 IN THE EXPENDITURE ACCOUNTS OF THE OPIOID

SETTLEMENT FUND AND APPROPRIATING PROPOSED

AMENDMENTS
WHEREAS, the City Administrator prepared and submitted to the City Council a budget for the City of Gilroy for Fiscal Years 2024 and 2025, and the City Council carefully examined, considered and adopted the same on June 5, 2023; and
WHEREAS, City Staff has prepared and submitted to the City Council a proposed amendment to said budget for Fiscal Year 2024 for the City of Gilroy in the staff report dated February 26, 2024, for the mid-year update, more specifically appropriating funding received from the national opioid settlements; and
WHEREAS, the City Council has carefully examined and considered the same and is satisfied with said budget amendments.

NOW, THEREFORE, BE IT RESOLVED that appropriations to the expenditure accounts in the Opioid Settlement Fund, Fund 293, are hereby increased by $41,000 for Fiscal Year 2024.

PASSED AND ADOPTED this 26th day of February 2024 by the following roll call vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

APPROVED:
______________________________
Marie Blankley, Mayor
ATTEST:

Beth Minor, Interim City Clerk

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Resolution No. 2024-XX
Resolution Amending FY 2024 Opioid Settlement Fund Budget City Council Regular Meeting | February 26, 2024

Page 2 of 2 ends

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Page 1 of 5 ends

City of Gilroy

STAFF REPORT
Agenda Item Title: FY24 and FY25 Departmental Workplan Updates Meeting Date: February 26, 2024
From: Jimmy Forbis, City Administrator
Department: Administration
Submitted By: Bryce Atkins, Assistant to the City Administrator Prepared By: Bryce Atkins, Assistant to the City Administrator STRATEGIC PLAN GOALS Develop a Financially Resilient Organization Ensure Neighborhood Equity from City Services
Promote Economic Development Activities
Promote Safe Affordable Housing for All
Maintain and Improve City Infrastructure

RECOMMENDATION
Council receive the report.

BACKGROUND
At the June 5, 2023 regular meeting, the City Council adopted the FY24 and FY25 operating budgets. As part of that process, the work plans for the various departments of the City were also presented and adopted by the City Council. This report is intended to provide an update on the attainment of those workplan items.

ANALYSIS
The departmental workplans provide a listing of the various projects that the departments are to work on over the two-year budget cycle. Overall, there were 63 workplan items for departments to work on in the listing adopted as part of the two-year cycle. The breakdown of these workplan items contained in Figure 1 below, identified by category. The categories and description of them is below as well.

Categories
• Mandated (13 workplan items)

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FY24 and FY25 Departmental Workplan Updates
City of Gilroy City Council Page 2 of 5 February 26, 2024 1 4 These items are those imposed by regulation, law, or compliance requirement that the City has no discretion to avoid or defer.
• Core (31 workplan items)
Core items represent a fundamental aspect of the department’s purpose. It is what we do as a City, vital but not mandated.
• Discretionary (19 workplan items)
As its name implies, discretionary items are those that are provided by the City for the public good, and is usually Council and/or community driven, but not mandated nor an expected core service of the City.

Figure 1 – Departmental Workplan Items at Adoption
Department Mandated Core Discretionary Total
Administration 0 4 8 12
Administrative Services 0 5 0 5
Community Development 5 6 3 14
Finance 3 4 0 7
IT 1 5 0 6
Fire 0 4 0 4
Police 1 2 6 9
Public Works 3 1 2 6
Total 13 31 19 63
Work across the various workplan items have reached various levels of completion. The update table attached to this staff report also identifies what the status of each item is.

Below in Figure 2, the table identifies the number of workplan items that are in each status.

Figure 2 – Departmental Workplan Item Status Summary
Department Pending Underway Complete Cancelled
Administration 4 4 3 1
Administrative Services 2 3 0 0
Community Development 5 6 3 0
Finance 2 2 2 1
IT 1 4 1 0
Fire 0 3 1 0
Police 1 4 4 0
Public Works 2 4 0 0
Total 17
(27%)
30 (48%)
14 (22%)
2 (3%)
Overall, nearly a quarter of the number of items on the workplan have been completed to-date. Nearly half of the total initial workplan items are underway, and a little more than a quarter of the items are pending.

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FY24 and FY25 Departmental Workplan Updates
City of Gilroy City Council Page 3 of 5 February 26, 2024 1 4 Council Initiated Items
Since the adoption of the departmental workplans, the City Council has added 13 Council-initiated agenda items. These items range in labor hour consumption from a few hours to many days and weeks’ worth of labor hours. Below is the list of the items that have been added during this fiscal year to-date:

1. Report on Security, Safety, and Parking at Las Animas Park

2. JEDI Policy Consultant Update

3. Smoking Prohibition Ordinance Implementation

4. Sidewalk Vending Ordinance

5. Naming the Downtown Pop-Up Park after Donald “Elvis“ Prieto (introduction and discussion) and final approval staff report

6. Gilroy Garlic Festival Memorial Improvements

7. Council-Initiated Agenda Item Policy

8. Downtown Parklet Program

9. Downtown Plywood Storefront Ordinance

10.Downtown Vacancy Ordinance

11.Downtown Noise Ordinance

12.Downtown Beautification

13.Discussion on Rules of Conduct/Hybrid Meetings
These 13 additions increased the total number of tasks by 21%.

Community Development Department (CDD) Workload
The CDD has recently received a significant quantity of Council-initiated items that have been added to their workplan, six of the 13 identified above, over 46% of all Councilinitiated agenda items. The understanding regarding added Council-initiated items has been that whenever an item is added, it is to be prioritized and for as many additional items are added to the workload of the department, an equivalent workload will be removed from the workplan to reflect current workload capacity.

As shown below staff is prioritizing the four newly added downtown items for Community Development against the other 12 current tasks and recommending the following prioritization of the remaining workplan items that have not been completed and the additional items from the Downtown Committee reports. Staff recommends continuing the use of the prioritization scheme that Council authorized with the initial workplan development: Mandated items, then core items, followed last by discretionary items:

1. Climate Action Benchmarks (Mandated)

2. Update Zoning Code and Zoning Map (Core)

3. Develop Vehicle Miles Traveled (VMT) Policy (Core)

4. Develop Transportation Demand Management (TDM) Policy (Core)

5. Partner with the County on 8th and Alexander Affordable Housing Development (Core)

6. Inclusionary Housing Policy/Ordinance (Core)

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FY24 and FY25 Departmental Workplan Updates
City of Gilroy City Council Page 4 of 5 February 26, 2024 1 4 7. Conduct Community Development Focused Fee Study (Core)

8. Safe Parking Policy (Discretionary)

9. Revise Mobile Vending Ordinance (Discretionary)

10.Drive-Throughs Near Residential Areas (Discretionary)

11.Smoking Prohibition Ordinance Implementation (Discretionary)

12.Sidewalk Vending Ordinance (Discretionary)

13.Downtown Parklet Program (Discretionary)

14.Downtown Plywood Storefront Ordinance (Discretionary)

15.Downtown Vacancy Ordinance (Discretionary)

16.Downtown Noise Ordinance (Discretionary)
Community Development currently has several key positions vacant (two retirements in December 2023) that are responsible for the higher-level work of addressing complex assignments and tasks involving legal and procedural functions. The majority of the Council initiated items, as well as the remaining original workplan items require this higher level of work. Community Development, working alongside Human Resources, are working diligently to fill these vacancies with capable staff.

During this past year, it is worth noting that development activities and service demand have been increasing for the Community Development Department. Comparing the same period last fiscal year, at seven months after each fiscal year starts, the development-related revenue in FY 2023 was $1.78M, versus $2.63M in FY 2024.

Revenue represents application and permit fees, reflecting the rising volume and scale of development projects. In examining the Building and Planning counter in-person customer data, in 2022, 3,364 customers were assisted with an average service time of 49 minutes. In 2023, 3,852 customers were assisted with an average service time of 59 minutes. This represents an increase of 61,455 minutes, or 1,024 hours, of counter customer service. The increasing number of customers as well as the length of service time also indicate the rising volume and complexity of development applications and inquiries.

In addition, code enforcement activities have been surging. The number of new cases increased from 944 in 2022 to 1,658 in 2023, reflecting a 76% rise. These development and code enforcement activities represent the day-to-day operation of the Community Development Department. For some types of applications, there are also Statemandated processing and turnaround times that staff must meet. As vacancies get filled, new staff will need to assist and address development projects and enforcement activities. For now, the Department must focus on performing day-to-day activities, implementing mandated programs and policies, and lastly, address core and discretionary workplan items.

Based on staff’s current assessment for the remaining 16 months of the workplan cycle, and the current vacancies and service demand, staff is stating that there is enough capacity to work on the first 12 workplan items. The last four will not be worked on until some of the first 12 workplan items are completed, which would then free up staff labor hours to take on the additional work. Should Council disagree with this prioritization, it

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FY24 and FY25 Departmental Workplan Updates
City of Gilroy City Council Page 5 of 5 February 26, 2024 1 4 may provide direction to staff to elevate one or more workplan items from #13-16 and identify which of the original 12 will not be worked on until more workload capacity becomes available.

ALTERNATIVES
None, this is an informational item.

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

PUBLIC OUTREACH
This report was included on the publicly posted agenda for tonight’s meeting.

NEXT STEPS
None. Should Council determine to provide feedback or direction, staff will receive the information and return to Council should more structured discussion on the item be required.

Attachments:

1. Department Workplan Update Table

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Fiscal Year 2024 and 2025 Council Legislative Agenda
Administration Workplan Item Category Estimated Completion Status Update 1 Develop City Logo Policy Core FY25 - Q4 Underway Work has commenced on this project. Anticipated completion in June of 2025, if not before. 2 Complete the Emergency Operations Center (EOC) Operations Plan Core FY24 - Q4 Underway Draft document under review. Review period anticipated to continue until April 2024. 3 Develop a Justice, Equity, Diversity and Inclusion (JEDI) Policy Core FY25 - Q2 Underway Project is still in progress. Current contract with consultant ends December 2024. Committee and staff training anticipated to commence in March of 2024. 4 Recreational Facility Needs Assessment Implementation Core FY25 - Q4 Pending Project is budgeted to take place in FY25. RFP development will start this current quarter and into the next. Anticipate entering into agreement at the beginning of the fiscal year. 5 Agency to Provide Drug Rehab, Job Training and Placement Discretionary N/A Cancelled No agency has been identified that will fullfill this role within Gilroy. All known service providers are outside of the City Limits. No funding source has been identified in order to incentivize them. Even when looking for grants, no agency responded that they would provide service if as grant was awarded.
6 Mobile Garbage Removal Program Discretionary N/A Complete Two-person crew hired for ongoing, roving garbage removal. Operation now moved to Public Works.

Collaboration continues through various departments on larger garbage removal operations. 7 Downtown Strategic Plan Update Discretionary FY25 - Q4 Pending This will be a cooperative project between Community Development and Economic Development.

This project is budgeted and planned to commence in FY25. 8 Ordinances to Address Vacancies and Noise Downtown Discretionary FY25 - Q2 Pending Staff work on these ordinances will be coordinated with the Downtown Committee. This work is transitioning to the Community Development Department.
9 Pursue Opportunities for an Assessment District Discretionary FY25 - Q2 Underway Staff has developed a draft plan and preliminary petition. To date, not enough support currently exists to support the ballot for the district to form. Work to gather input from more potential district members is underway, including support from the Gilroy Chamber of Commerce. 10 Establish a Downtown Pop-Up Park Discretionary N/A Complete The park has been established. Design changes will now be proposed by the Parks and Recreation Commission.
11 Beautification and Decorative Lighting Improvements Discretionary N/A Complete The decorative lighting improvements and beautification has been completed for the staff direction from the Ad Hoc Committee. Any future work will result from the work of the Downtonw Committee, Beautification of Downtown Subcommittee.
12 Planning for a Community/Youth Center/Civic Center Master Plan Discretionary FY25 - Q4 Pending Project is budgeted to take place in FY25. RFP development will start this current quarter and into the next. Anticipate entering into an agreement at the beginning of the fiscal year.

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Fiscal Year 2024 and 2025 Council Legislative Agenda
Administrative Services Workplan Item Category Estimated Completion Status Update 1 Transition Fleet from Paper to Electronic Work Orders/Documentation Core FY 25 - Q2 Underway The fleet team is in the process of transitioning to electronic work order documentation over hard copy paper records.
2 Performance Management System Update Core FY 25 - Q4 Pending Project not yet started. 3 Evaluate Possible Transition to Biweekly Payroll Core FY 25 - Q3 Underway Initial review underway; evaluating TM HCM system; beginning to develop action task list. 4 Update Human Resources Rules and Regulations Core FY 25 - Q2 Underway Personnel Commission completed training on January 22, 2024; legal review underway. 5 Update the City's Employer-Employee Relations Resolution to Incorporate State Laws
Core FY 25 - Q3 Pending Project has not yet started.

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Fiscal Year 2024 and 2025 Council Legislative Agenda
Community Development Workplan Item Category Estimated Completion Status Update 1 Climate Action Benchmarks Mandated Depending on grant No later than FY27 - Q4 Pending
The Climate Action Plan is combined with VMT/TDM policies. Staff submitted a grant application in January 2024. Applicants will be notified in the summer of 2024. If grant is not awarded, the $400,000 budget will be carried forward to FY25 so staff can issue the RFP to begin work. A project timeline will be provided after grant applicants are notified. 2 Implement AB 2234 for Building Permits Mandated N/A Complete Staff created an AB 2234 webpage along with a checklist and example applications and permits for various types of housing development projects.
3 Update Accessory Dwelling Unit (ADU) Ordinance Mandated N/A Complete City Council approved an ADU Ordinance in December 2023. Staff sent the approved ordinance to the California Department of Housing and Community Development (HCD) in December 2023. 4 Complete 10th Street Bridge Project Environmental Clearance Mandated FY25 - Q4 Underway The project is transferring to Public Works, with assistance currently of Administration during the transition and with vacant management analysts in Public Works. Timeframe is being re-established with consultant, due to retirement of staff member serving as liaison, and may be adjusted to a shorter timeframe.
5 Implement State Housing and Building Laws (SB 6, SB 35, SB 379, AB 2011) Mandated N/A Complete
Staff created a new Planning Division webpage in 2023 with information, checklists, and approval process for AB 2011 and SB 6. Staff also created an SB 35 webpage along with checklist and approval process. Both webpages provide details on applicable residential or mixed-use development.

Projects are processed in accordance with state law. Building Division met SB 379 through implementing an automated permitting platform, integrated with the new Gilroy Online "GO Permit" system, for residential solar energy systems.
6 Update Zoning Code and Zoning Map Core FY25 - Q2 Underway Project has been reassigned due to staff retirement. Initial recommendations are estimated to be scheduled for review by the Planning Commission and City Council at joint study sessions in mid2024. 7 Develop Vehicle Miles Traveled (VMT) Policy Core See Climate Action Pending See Climate Action update. 8 Develop Transportation Demand Management (TDM) Policy Core See Climate Action Pending See Climate Action update. 9 Partner with the County on 8th and Alexander Affordable Housing Development Core Estimated FY28 Underway
Staff has provided input to the County. Draft documents related to the County's Request for Offers process are pending. County will issue a Request for Offers to invite developers to respond and submit proposals.
10 Inclusionary Housing Policy/Ordinance Core FY25 - Q2 Underway Inclusionary housing introduction was presented to the City Council in November 2023. A community workshop was held in November 2023. Consultant and staff are completing analysis and initial recommendations which will be presented to City Council in spring 2024. 11 Conduct Community Development Focused Fee Study Core FY25 - Q4 Pending Work will begin when resources become sufficient, anticipating in FY 25. Staff will conduct fee studies focused on each development services function to fully account for staff time and costs since fee updates have yet to achieve cost recovery. A fee schedule will be developed accordingly. 12 Safe Parking Policy Discretionary FY25 - Q4 Pending Development of a safe parking program needs to be evaluated with other department workplan priorities in FY25.
13 Revise Mobile Vending Ordinance Discretionary FY24 - Q4 (by Economic Development) Underway
This workplan item has transitioned to Economic Development. After adoption of the Downtown Parking Management Plan, work will include researching ordinances and processes from other cities and developing a mobile vending ordinance. Staff anticipates bringing an ordinance to Council by mid2024.

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Fiscal Year 2024 and 2025 Council Legislative Agenda
Community Development Workplan Item Category Estimated Completion Status Update 14 Drive-Throughs Near Residential Areas Discretionary See Zoning Code Underway Regulations for drive-throughs will be included in the comprehensive Zoning Code update.

Council Added 1 Smoking Prohibition Ordinance Implementation Discretionary FY25 - Q1 Underway Staff from several departments collaborated to create a webpage with forms, handouts, signage template, and utility bill insert. Code Enforcement team has been implementing the ordinance through identifying, notifying, and working with 552 properties. As of February 8, 2024, 279 properties met ordinance requirements and 273 properties have yet to comply. Over 120 interactions have occurred with individuals regarding the ordinance. Implementation, community education, and enforcement will continue.

Council Added 2 Sidewalk Vending Ordinance Discretionary FY24 - Q3 Complete City Council adopted the sidewalk vending ordinance in August 2023 and permit fees in September 2023 after staff presented research and drafts between April and September 2023. Staff conducted outreach and education in English and Spanish starting in September 2023 via a new webpage with handouts and documents, notices at physical locations, in-person visits with vendors and businesses on nights and weekends, and community workshops with County Health. Since October 2023, staff has conducted enforcement in English and Spanish with Code Enforcement, Fire Prevention, and Building Inspection teams during weekdays and weekend nights. Field survey and complaint-based enforcement will be ongoing.

Council Added 3 Downtown Parklet Program Discretionary
FY24 - Q3 for Permits
and Initial Direction on
Program Development
(by Community
Development and
Economic Development)
FY24 - Q4 for Formal
Program Development
(by Downtown
Committee)
Underway
The City Council provided direction between August 2023 and February 2024 regarding the temporary program, existing parklet permits, parklet interest survey, and pursuance of a formal program.

The workplan item was originally transitioned to Economic Development and was planned to begin after adoption of the Downtown Parking Management Plan. In January 2024, Council directed Downtown Committee to research and develop a downtown parklet program.

Council Added 4 Downtown Plywood Storefront Ordinance Discretionary TBD Pending City Council received Downtown Committee Plywood Removal Subcommittee report on January 8, 2024 and directed staff to create an ordinance incorporating the Downtown Committee's recommendations for managing plywood-covered storefronts in downtown.

Council Added 5 Downtown Vacancy Ordinance Discretionary TBD Pending City Council received Downtown Committee Vacancy Ordinance Subcommittee report on January 8, 2024 and directed staff to create a vacancy ordinance for downtown incorporating the Downtown Committee's recommendations.

Council Added 6 Downtown Noise Ordinance Discretionary TBD Pending City Council received Downtown Committee Noise Ordinance Subcommittee report on January 22, 2024 and directed staff to create a noise ordinance for downtown incorporating the Downtown Committee's recommendations.

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Fiscal Year 2024 and 2025 Council Legislative Agenda
Finance Workplan Item Category Estimated Completion Status Update 1 Implement GASB1
Statement. 96 - Subscription-based Information
Technology Arrangements
Mandated FY24 - Q2 Complete Implementation was completed as part of Fiscal Year 2023 (FY23) annual financial audit and is included in the FY23 Annual Comprehensive Financial Report (ACFR). 2 Other Post Employment Benefits (OPEB) Actuarial Valuation/Study Mandated FY25 - Q1 Pending Work will commence in FY24 - Q4 and be completed by FY25 - Q1. 3 Implementation of GASB Statement. 101 - Compensated Absences Mandated FY25 - Q4 Pending Work will commence during second half of the Fiscal Year 2025 and be included as part of the annual financial audit and audited statements preparation.
4 Update Fees and Charges Core FY24 - Q2 Complete
The City adjusted the Citywide user fee schedule in July 2023, and completed the Comprehensive Water and Wastewater Rate Study in August 2023. The rates were adopted in October 2023, and the first of the five-year adjustment has been implemented as of January 1, 2024. 5 Utility Customer Water Usage Reports and Portal Core FY25 - Q2 Underway A Request-for-Proposal (RFP) will be issued in FY24 - Q3, with contract and implementation through the rest of 2024.
6 Upgrade City's Online Utility Bill Presentment and Payment System Core FY24 - Q2 Cancelled The City's online utility bill presentment and payment portal was evaluated for upgrade during FY24 Q1. After further review of functionality, features, and compatability with City's other systems, it was determined the upgrade should be deferred until certain features and functionality are available, and the new platform is widely adopted by the vendor’s client base. 7 Transient Occupancy Tax Compliance Review Core FY25 - Q4 Underway An RFP will be issued in FY24 - Q3, with contract and implementation through FY25.

Information Technology Workplan Item Category Estimated Completion Status Update 1 Upgrade Enterprise Resource Planning System to Latest Version Mandated FY24 - Q4 Underway Financial modules testing is complete. Human Capital Management and Payroll testing scheduled to be conducted end of February 2024, with an expected Go Live of April 1st. 2 Land Management System Implementation Core FY24 - Q2 Complete LMS system went live in June/July 2023. System is in post go-live stabilization phase and refinement which is largely administered by the Community Development Department. 3 Implement Cybersecurity Assessment Recommendations Core FY25 - Q4 Underway Certain recommendations have been implemented. Majority of the network related improvements will commence upon hiring of the Network Administrator. 4 Develop Information Technology Asset Lifecycle Plan/Policy Core FY24 - Q4 Underway Policy has been drafted. It is pending IT Steering Committee review and approval. 5 Internet Capacity and Redundancy Upgrades Core FY25 - Q3 Underway Internet capacity upgrades are complete. Internet redundancy work will commence upon hiring of the Network Administrator.
6 Develop a GIS Program Roadmap/Strategic Plan Core FY25 - Q4 Pending This project will commence in FY25 upon completing the migration of the GIS services in-house, expected by June 2024.
1) Governmental Accounting Standards Board

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Fiscal Year 2024 and 2025 Council Legislative Agenda
Fire Workplan Item Category Estimated Completion Status Update 1 Develop and Implement the Santa Teresa Temporary/Permanent Fire Station Core FY24 - Q3 Underway
The Fire Department will no longer lease a modular building due to the increased cost to complete the site work. The Department will continue using the TEEC building as the Interim Santa Teresa Fire Station. Funding was approved to modify the TEEC building so it can operate as a 24/7 fire station.

Modifications are currently underway and will be completed in FY24 - Q3. 2 Identify Funding for Chestnut and Las Animas Station Retrofit Plan Core FY24 - Q2 Complete Funding for this project will be charged to the Equipment Outlay Fund. This project has two phases.

The first phase will begin in FY24 for the design work of the Las Animas and Chestnut Stations.

Approved FY24 funding is $250K per station. The Department anticipates that the construction phase of this project will begin in FY25. Approved funding for the construction phase is $2.5M. 3 Develop and Implement a Plan for Over the Air Mapping Core FY24 - Q3 Underway Currently implementing a new Records Management System that includes this feature. 4 Improve RMS Incident Data Reporting Core FY24 - Q3 Underway Currently implementing a new Records Management System that provides improved data analytics.

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Fiscal Year 2024 and 2025 Council Legislative Agenda
Police Workplan Item Category Estimated Completion Status Update 1 Implement Legislative Reforms and Mandates Mandated 2023-Q4 Complete The Department will be mandated to constantly implement reforms and mandates as legislation is passed. The two most current mandates, AB481, Military Equipment Use and Inventory and Concealed Carry Weapon (CCW) policies were completed.
2 Public Safety/Mental Health Response Team Core 2025-Q1 Underway A no-cost MOU with the County of Santa Clara for a Psychiatric Emergency Response Team (PERT) Justice and Mental Health Collaboration Program is underway. The clinician will be housed at the PD and staff will use best practices for keeping measures by utilizing the RIMS (Records/CAD) system.

Fiscal uncertainty at the county level may cause a delay in finalizing the MOU. 3 Employee Wellness & Resiliency Program Core 2025-Q2 Underway State funding of $43,000 was received in February 2023 and funds are being expended to expand the peer support program and initiatives. Gilroy was selected by the University of San Diego and POST as a model to develop a wellness and resiliency program for other law enforcement agencies. 4 Conduct a Community Survey Discretionary 2024-Q2 Complete Community survey implemented October 2023 using My90 by Axon. A Council presentation was completed in January 2024 and results are posted on the City of Gilroy's Police Department webpage. 5 Reimplement The CPA (Community Police Academy) Discretionary 2023-Q4 Complete Youth, Spanish and English CPA's were completed for 2023 and 2024 academies are scheduled. 6 Supervisor Mentorship Program Discretionary 2024-Q1 Complete Two sergeants were were tasked to explore and develop a mentorship program. Identifying contemporary policing practices, The President's Task Force on 21st Century Policing Implementation Guidebook is being used as part of study sessions with department supervisor staff to mentor and create a blueprint for emerging leaders.
7 Develop the Police Department's Three-Year Strategic Plan Discretionary 2025-Q2 Underway This project is in progress and pending the onboarding of the Department's Community Engagement Coordinator. This project will be one of their first year's goals. 8 Develop a Department Succession Plan Discretionary 2025-Q1 Underway In concert with the mentorship program, a formalized succession plan is being used to develop staff for promotional opportunities to the supervision ranks for Corporal, Sergeant, Captain and Chief of Police and specialized units of Traffic, Anti-Crime Team and Investigations. 9 Promote Neighborhood Watch Program (NWP) Discretionary 2025-Q3 Pending The Department continues to recruit for vacant positions and hopes to onboard a Community Engagement Coordinator to implement a NWP. In the meantime, staff communicates to the public the steps to take to enhance community safety through social media platforms, community engagement and presentations.

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Fiscal Year 2024 and 2025 Council Legislative Agenda
Public Works Workplan Item Category Estimated Completion Status Update 1 Implement State Mandate for City-wide Storm Drain Trash Capture Prog Mandated 35% by 2026 Underway The City has been mapped and trash capture plan identified. Devices have not been installed.

Funding source still needs to be identified.
2 SB1383 Solid Waste Reporting and Enforcement Implementation Mandated FY25 - Q4 Underway The City has not yet determined its enforcement policy. Work is continuing on developing this program and implementing SB 1383 requirements. Staff will continue collaborating on organic waste implementation with Environmental Services staff.
3 Implement State Water Conservation Measures Mandated Ongoing Underway This program is ongoing. 4 Downtown Parking Management Plan Core FY24 - Q3 Complete Final Plan to be approved at March 4, 2024 City Council meeting. 5 Implement Strategies from the Public Works Department Evaluation Discretionary FY25 - Q4 Underway The City has hired a new Utilities Department Director, and is pursuing additional position recruitments. Utilities and Public Works are collaborating on the transition, and taking on elements of the evaluation recommendations respective to each department. 6 Explore a Transit First Policy Discretionary TBD Pending Work on this has not yet begun.

Council
Added 1 Downtown Beautification Discretionary TBD Pending The City Council received the Downtown Committee - Downtown Beautification Subcommittee report on January 22, 2024 and recommended staff to carry out capital projects, maintenance, and programs incorporating the Downtown Committee's recommendations. Multiple departments involved, but mostly Public Works.

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Page 1 of 3 ends

City of Gilroy

STAFF REPORT
Agenda Item Title: Council-Initiated Agenda Item Policy Meeting Date: February 26, 2024
From: Jimmy Forbis, City Administrator
Department: Administration
Submitted By: Bryce Atkins, Assistant to the City Administrator Prepared By: Bryce Atkins, Assistant to the City Administrator STRATEGIC PLAN GOALS Not Applicable

RECOMMENDATION
Council provide direction regarding the draft policy.

BACKGROUND
At the December 11, 2023 meeting of the Gilroy City Council, a Council-initiated agenda item was issued to discuss adoption of a policy/procedure for the submission and consideration of future Council-initiated items on the Council’s agendas. The instruction as part of that direction entailed creating a process to gather information on the future agenda items to allow more specificity and certainty about the nature of future requests, including an estimate of financial impacts or intent of the potential action. This information would then be provided when Council considers adding the item to a future agenda.

ANALYSIS
The current policy statement regarding the addition of future Council agenda items is contained in the adopted Council Norms. Below is an excerpt from the Council Norms relating to this subject.

2. Adding Agenda Items:

2.1. Any Council Member may propose an item for consideration as an agenda item for a future meeting by oral request during the portion of the Council

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Council-Initiated Agenda Item Policy
City of Gilroy City Council Page 2 of 3 February 26, 2024 meeting designated for Future Council Initiated Agenda Items. The Council will decide whether to agendize the item for a future Council meeting.

In conducting research on this subject, there is some variety in the ways other city councils process requests. A few of the cities in Santa Clara County have similar provisions, but most have some form of process for submitting agenda item requests.

Attached to this staff report are excerpts of the various procedures and/or requirements for council members to add items to their councils‘ agendas.

Proposed Policy
The draft policy, attached to this staff report, is modeled after a process called a colleague's memorandum which is used by a few cities (Palo Alto, Sunnyvale), and modifies it to meet the needs of the City of Gilroy with our agenda process generally.

The policy would require for items to be added by a majority of a quorum of the Council following a written submittal about the item. The council member(s) requesting to have an item added to a future agenda would be required to submit a Future Agenda Item Request Memorandum (FAIR Memo).

To summarize the attached policy, there are a few procedural steps:
• Before the FAIR Memo can be submitted, it requires council members proposing agenda items to meet and consult with the City Administrator to understand from an administrative and operational perspective the circumstances and potential impacts from the proposed action.
• After, the council member(s) then prepare the memo, which must comply with the following structure:
o Not exceed two (2) pages.
o Be focused on the need for a future agenda item without advocating for or against the merits of the agenda item being requested.
o Contain a brief summary outlining the request and any relevant background information.
o Contain a fiscal impact estimate.
o Contain a staffing/labor impact estimate.
o Include copies of any resolutions, proclamations, documents and other associated material that is to be considered as part of the proposed action.
• The FAIR Memo, if compliant with the above, would be placed on an agenda within 30-45 days of the request under the Future Agenda Items section. City staff will prepare a brief staff report discussing initial thoughts and considerations about the item, but not a detailed analysis.
• There, the City Council may give direction if the item is to be brought back on a future agenda meeting for discussion and potential action. Council may direct the City Administrator to agendize the matter for Council action at least two meetings out, allowing City staff sufficient time to conduct its analysis and prepare a staff report.

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Council-Initiated Agenda Item Policy
City of Gilroy City Council Page 3 of 3 February 26, 2024 • FAIR Memos that are not compliant will be returned to the submitting council member(s), with a description of precisely how the FAIR Memo does not comply with the policy.

ALTERNATIVES
Council may direct the policy to return as-is to Council for adoption, or with any amendments. Council may also direct work on such a policy to cease.

FISCAL IMPACT/FUNDING SOURCE
None. There are no anticipated costs financially for consideration of such a policy, nor implementing the draft policy discussed. There would be a negligible increase in staff time in processing the requests.

PUBLIC OUTREACH
The topic was raised as part of the discussion on future Council-initiated agenda items on December 11, 2023, and was included on the publicly posted agenda for this meeting.

NEXT STEPS
Staff will incorporate any changes or other direction received and return to Council with a policy for Council action.

Attachments:

1. Draft Council Future Agenda Items Policy.

2. Summary of other Santa Clara County cities’ policies regarding future agenda items.

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City of Gilroy
City Council Future Agenda Item
Policy
Adopted: TBD, 2024

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Purpose/Background
The purpose of this policy is to establish procedural guidelines for the request of future Council-initiated agenda items.

Policy
Future Council-Initiated Agenda Items present an opportunity for City Council Members to request agenda items to be added to future Council meetings for discussion and potential action. Prior to this policy, Council initiated agenda items could be requested with a consensus of the Council without knowledge on the subject or the specific action being asked for before approving the item to be discussed. To aid in the determination of what items are appointed by Council to be discussed at future Council meetings, this policy establishes a set of information to be provided when asking for a future Council agenda item.

All conditions and criteria identified below must be met before a Council-initiated agenda item may be brought to the Council for consideration.

Items may be placed on the agenda by the Mayor, a majority of a quorum of the Council, or by the City Administrator.

For items to be added by a majority of a quorum of the Council, the council member(s) requesting to have an item added to a future agenda must submit a Future Agenda Item Request Memorandum (FAIR Memo).

Before Submitting a FAIR Memo
Prior to preparing a FAIR Memo, Council Members will consult with the City Administrator to discuss the topic, to understand from an administrative and operational perspective the circumstances, planned activities, and other considerations regarding the matter before submitting the request. After the consultation, a FAIR Memo may be prepared and submitted to the City Administrator. Any FAIR Memo that is submitted without the prior consultation shall not be placed on an agenda until such consultation takes place.

Procedure to Submit and Process a FAIR Memo
• Either an individual or group of two or three Councilmembers may prepare a brief FAIR Memo outlining a request to create a future agenda item for the Council to consider at an upcoming Council meeting.
• Councilmembers shall submit FAIR Memos directly to the City Administrator. • Completed FAIR Memos shall be provided to the City Administrator by noon on the Tuesday prior to the Council meeting that the memo is intended to be agendized, to provide time for the City Administrator and City Clerk to process for the Council packet.

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• To avoid a Brown Act violation, FAIR Memos are not to be shared with Councilmembers outside of the group who authored a specific memorandum. • FAIR Memos shall be structured as described below. FAIR Memos shall:
o Not exceed two (2) pages.
o Be focused on the need for a future agenda item without advocating for or against the merits of the agenda item being requested.
o Contain a brief summary outlining the request and any relevant background information.
o Contain a fiscal impact estimate.
o Contain a staffing/labor impact estimate.
o Include copies of any resolutions, proclamations, documents and other associated material that is to be considered as part of the proposed action.
• The City Administrator will review and determine the compliance of the FAIR Memo consistent with this policy and the Ralph M. Brown Act (open meetings law) or provide feedback to the authors.
• The City Administrator will schedule compliant FAIR Memos to be placed on a Council Meeting agenda within 30-45 days of the request. City staff shall prepare a brief staff report discussing initial thoughts and considerations about the item, and to address the fiscal and staff time impact estimates in the FAIR Memo.

Maximum staff time spent on the FAIR Memo shall not exceed an hour. • Compliant FAIR Memos will be included under the Future Agenda Items portion of the Council meeting agenda. There, the City Council may give direction if the item is to be brought back on a future agenda meeting for discussion and potential action. Council may direct the City Administrator to agendize the matter for Council action at least two meetings out, allowing City staff sufficient time to conduct its analysis and prepare a staff report.
• FAIR Memos that are not compliant with this policy shall be returned to the submitting Council Member(s) with a description of precisely how the FAIR Memo does not comply with the policy.

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Excerpts from Other Santa Clara County Cities
Council Members Adding Agenda Items
Cupertino

7. Agendas and Staff Reports

7.1 Future Agenda Items. The City Manager, the City Attorney, the Mayor, or any two Councilmembers may request that an item be added to a future agenda for Council action. The City Manager shall provide a quarterly report to Council regarding the status of future agenda items, which may include a request to remove items from the list of future agenda items. Any item may be removed for the future agenda items list by a majority vote of the City Council.

Los Altos

10.9 Placing items on a future agenda. Members of the City Council may have any matter that can be legally agendized placed on the agenda of the City Council by indicating their desire to do so under that portion of the City Council agenda designated, “Future City Council Agenda Items.” Placing an item on a future agenda requires two Councilmembers to support the item if no staff work is required and three Councilmembers if staff work is required. Unless an item is deemed an urgency exception or emergency exception, as defined in the Norms, Councilmembers shall request the placement of items on future agendas at a public Council meeting.

Los Gatos
I. Preparation of the Agenda
The agenda is prepared by staff in consultation with the Mayor for the Mayor’s final approval. If there is a disagreement between the Mayor and staff, the Mayor makes the ultimate call o the agenda and its items. Any member of the Council may submit a request through the Town Manager or directly to the Mayor to make a change or addition to the agenda. In no event may the subject of whether to amend the agenda be discussed outside of a public meeting by more than two (2) members of the Council.

Items thus proposed to be added to the agenda require the Mayor’s agreement to be added for action.

If the Mayor does not agree, the item shall be listed on the agenda for discussion purposes only under the Council Matters section of the agenda. Council may then discuss whether to place the item on a future agenda for action. Two (2) or more members of the Council must vote in favor of placing an item on a future agenda for action. The Mayor in good faith will make every effort to place the item on the first available Council agenda in consultation with the Town Manager.

IF the wish of the Council is to add an item on the agenda of the current meeting, then the Brown Act generally requires a two-thirds(2/3) vote or a unanimous vote of those present if less than five(5) Council members are present, with a finding that there is a need to take immediate action and the need for action came to the attention of the Town after the agenda was posted.

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Excerpts from Other Santa Clara County Cities
Council Members Adding Agenda Items
Milpitas
B. Agenda Item Submission

1. The City Manager has the primary responsibility for the development of the Council Agenda, ensuring all protocols are followed, and that management of the agenda is closely linked to organizational goals and work plans. Any item that is placed on the agenda shall be in accordance with the City’s Open Government ordinance (MMC I-310) so that it can be clearly understood by members of the community.

2. Mayor or Councilmember:
a. The Mayor or a Councilmember may request the City Manager to add an item to a Council agenda. No staff report or other staff work will occur until the item is discussed before the full City Council. Discussion and prioritization by the City Council will occur on a quarterly basis. b. Councilmembers may make this request verbally during a meeting or may submit a written request to the City Manager at other times.
c. See Section 2.C.4 “Request for Staff Resources” for further details on any associated staff work related an agenda item request.

Requests for Staff Resources
a. Mayor and Councilmember requests to consider new programs, services, or requests for significant allocations of resources, shall be directed to the budget process to the maximum extent possible. b. Mayor or Councilmember requests for minor (generally less than four hours of staff time) research or other staff work must be directed to the City Manager.
c. If more than four hours of staff time will be required to complete the task/project, the item will be placed on the agenda to ask the City Council if time should be spent on the proposed item. A discussion and prioritization of Mayor and Councilmember requests are scheduled on a quarterly basis. d. Mayor and Councilmember requests for more than four hours of staff work for City Council consideration will adhere to all the City of Milpitas Open Government Ordinance provisions, including, but not limited to:
- I-310-2.30 Agenda Requirements. “(b) At least six (6) days before a regular City Council meeting, a preliminary agenda shall be posted containing a meaningful description of each item of business to be transacted.”
- “(c) A description is meaningful if it is sufficiently clear and specific to alert members of the public whose interests are affected by the item that he or she may have reason to attend the meeting or seek more information on the item.
- To achieve the above requirements, all materials must be submitted to the City Clerk, to the extent possible, no less than eight (8) days in advance of a Council meeting. e. Staff responses to a Councilmember inquiry, including the original inquiry, shall be distributed to the Mayor and all City Councilmembers.

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Excerpts from Other Santa Clara County Cities
Council Members Adding Agenda Items
Monte Sereno

7. Agenda
An agenda shall be prepared for each regular meeting containing the specific items of business to be transacted and the order thereof. Items of business may be placed on the agenda by any Council Member, the City Manager, or the City Attorney. The City Manager may advise, but cannot override, on the placement of items for consideration. In addition, a City Council Member may request that an item be placed on a future agenda during the future agenda portion of a City Council Meeting as outlined in Section 9 below.

Morgan Hill
Section 4 – AGENDA CONTENTS

4.2 Placement of items on the agenda: The Mayor, City Manager, or City Attorney may place items on the agenda. Members of the City Council may request items to be added to an upcoming City Council agenda by requesting an item during the “Future Council Initiated Agenda Items” Section of the agenda.

When a Future Council Initiated Agenda Item is requested, the Council Member making the request will send the City Manager a brief summary outlining the request and any relevant background. If the requested item is not included in the current Strategic Priorities Workplan, the team will bring forward the item at a future Council Meeting within 30-45 days of the request via a brief staff report, including the brief summary provided by the requesting Council Member. At that meeting, the City Council will review the request and determine if the majority of the City Council want the items agendized at a future meeting for discussion.

Mountain View
b. Council Request for Agendizing
A Councilmember request for an item to be agendized will be done as an action item with support work of up to one hour by staff. If more than one hour is required, then the item will be agendized to ask Council if time should be spent on preparing a full report on the proposed agenda item.

Palo Alto
K. Council Matters
Any two Council Members may bring forward a colleague memo on any topic to be considered by the entire Council. Two Council Members are required to place such a memo on the agenda, reflective of the Council procedure requiring a motion and a second for consideration of a motion by the Council. Up to four Council Members may sign a colleague memo. The City Attorney recommends that the colleague memo be limited to three Council Members in order to avoid the potential of a Brown Act issue. Prior to preparing a colleague memo, Council Members will consult with the City Manager to determine whether he/she is or is willing and able to address the issues as part of his/her operational authority and within current budgeted resources. Colleague’s memos should have a section that identifies any potential staffing or fiscal impacts of the contemplated action. This section will be drafted by the City Manager.

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Excerpts from Other Santa Clara County Cities
Council Members Adding Agenda Items
Council Members shall provide a copy of the proposed memo with the City Manager or appropriate senior staff prior to finalization. Completed Council colleagues memos shall be provided to the City Clerk’s staff by noon on the Tuesday prior to the Council meeting that the memo is intended to be agendized, to provide time for the City Clerk to process for the Council packet.

The City Council will not take action on the night that a colleague memo is introduced if it has any implications for staff resources or current work priorities which are not addressed in the memo. The Council will discuss the colleague memo and then direct the City Manager to agendize the matter for Council action within two meetings, allowing City staff time to prepare a summary of staffing and resource impacts. Action may be taken immediately by the Council on colleague memos where there are no resource or staffing implications or where these are fully outlined in the colleagues memo. The Brown Act requires that the public be fully informed of the potential action by the Council via the Agenda 72 hours before a scheduled Council meeting. In order to satisfy the Brown Act requirements, the Council should consult with the City Attorney to ensure that the proposed title to the colleague memo contains all actions that the Council Members want completed on the night of the Council review.

Santa Clara
Referral from Members of the City Council in Advance of a Meeting:

After consultation with the City Manager (and/or City Attorney, as appropriate), the Mayor or any individual Councilmember may submit a written request by using the Council Item Request Form to the City Manager’s Office for inclusion of an item on a future City Council agenda,.

An item may be referred to the City Manager for inclusion on a City Council agenda during a Council meeting by City Council action. The procedure for written request from the City Council shall be as follows:

1. Members of the City Council shall use the Council Item Request Form to submit a written request for inclusion of an item on a future City Council agenda.

2. Prior to submitting a Council Item Request from, the Member shall discuss the proposed request with the City Manager (And/or City Attorney, as appropriate) to determine if City staff’s response does not satisfy the Member’s request, the Member shall submit the Council Item Request form for placement on a future City Council agenda.

3. Once the City Clerk’s Office receives the Council Item Request form, it should immediately be forwarded to the City Manager for placement on an agenda, is possible, within two (2) Council meetings after receipt of the original request by the City Clerk’s Office. All written material (Council Item Request Form and any support material) will be submitted on the agenda in the form substantially provided by the requestor without any staff analysis, including fiscal review, legal review and policy review, until the City Council has had the opportunity to provide the direction to the City Manager.

Referrals from Members of the Council at the Council Meeting

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Excerpts from Other Santa Clara County Cities
Council Members Adding Agenda Items
If an issue arises during a Council meeting that may require future City Council action a City Council member may also request, through a referral, that such item be agendized for future Council consideration.

Such a request may be considered by the Council following the “Procedure for Handling Requests at the City Council Meeting” set forth below.

Saratoga
Agenda Items and the Agenda Planner
Items may be placed on the agenda by the Mayor or the City Manager. Additionally, Council Members may request that items be added to a future meeting by making the request at the end of a regular meeting during the Council Items portion of the meeting. If a second Council Member supports the request, the item will be added to a future meeting.

The City Manager and City Clerk hold weekly meetings with the Mayor and Vice Mayor to discuss upcoming agenda items and set the agenda of future meetings.

Future agenda items are identified on the Agenda Planner, which is emailed to the City Council weekly.

The Agenda Planner shows when items will go before the City Council, which section of the agenda the item will appear under, and the staff person preparing the report on the item.

Sunnyvale
Placing Items on the Agenda
Items may be placed on the agenda by the Mayor, a majority of a quorum of the Council, or by the City Manager. The order in which items appear on the agenda shall be determined by the City Manager and approved by the Mayor.

Colleagues Memorandum
•A group of two or three Councilmembers may prepare a brief colleagues memorandum outlining a request to create a future agenda item for the Council to consider at an upcoming Council meeting. •Councilmembers shall submit colleagues memorandums directly to the City Manager. •Colleagues memorandums are not to be shared with Councilmembers outside of the group who authored a specific memorandum.
•Memorandums shall not exceed two (2) pages and shall be focused on the need for a future agenda item without advocating for or against the merits of the agenda item being requested. •The City Manager will review and approve the Colleague Memorandums consistent with this policy and the Ralph M. Brown Act (open meetings law) or provide feedback to the authors. •The City Manager will schedule the approved colleagues memorandum for the next available Council agenda.

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Excerpts from Other Santa Clara County Cities
Council Members Adding Agenda Items
•Completed colleagues memorandums will be included under the Non-Agenda Items &Comments portion of the Council meeting agenda for Council action. •A colleagues memorandum is not required to request an agenda item be added to a future agenda.

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Page 1 of 3 ends

City of Gilroy

STAFF REPORT
Agenda Item Title: Accept the Annual Comprehensive Financial Report for Fiscal Year-Ended June 30, 2023
Meeting Date: February 26, 2024
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
Accept and file the report.

EXECUTIVE SUMMARY
Accept and file the audited Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2023 (FY23).

ANALYSIS
Following the close of each fiscal year on June 30th, the City’s external auditors conduct an audit of the City’s financial records and assist in the compilation of the ACFR.

The objective of external financial reporting is to ensure accountability. The goal of a financial statement audit is to provide users with reasonable assurance from an independent auditor that the information presented in the statements is reliable. The audit for the fiscal year ended June 30, 2023, was recently completed by The Pun Group, LLP (Auditor), Certified Public Accountants.

In conjunction with the annual audit, the City prepares the ACFR to comply with the

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Accept the Annual Comprehensive Financial Report for Fiscal Year-Ended June 30, 2023 City of Gilroy City Council Page 2 of 3 February 26, 2024 requirements to receive the Certificate of Achievement for Excellence in Financial Reporting administered by the Government Finance Officers Association (GFOA). The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standard for preparation of state and local government financial reports. The City’s ACFR has received this award for the previous nine fiscal years, most recently for FY22, and staff believes the current report (FY23) continues to conform to GFOA’s highest standard.

As a result of their annual independent audit of the City’s financial records and statements, the Auditor has rendered an unmodified (“clean”) opinion, the optimal opinion issued by independent auditors, on the City’s financial statements for the fiscal year ended June 30, 2023.

A detailed analysis of the City’s financial position as of June 30, 2023, is included in the Management Discussion and Analysis (MD&A) in the ACFR attached to this staff report.

In accordance with Government Auditing Standards, the auditors also identify any deficiencies in internal control over financial reporting and provide recommendations to City management on correcting these deficiencies. No such deficiencies in internal controls were identified during the FY23 audit.

Summary of the highlights are as follows:

Citywide: The City’s overall net position increased by $8.1 million to $381.8 million from prior fiscal year (FY22). Of the total net position, $100.7 million, or about 26%, remains unrestricted, and the majority of the remaining consists of net investment in capital assets.

General Fund: For ACFR purposes, the City combines its Sidewalk Repair, Golf Course, Parking Management, and Community Recreation special revenue funds with the City’s General Fund for financial statement presentation as required under Governmental Accounting Standards Board (GASB) Statement 54. • Revenues: The actual revenues, excluding transfers, in the General Fund were $2.3 million better than the final budget, primarily due to better than projected investment income attributed to the increase in interest rates, and increased revenues from taxes (property and utility user) and charges for services during the fiscal year.
• Expenditures: The actual expenditures, excluding transfers, in the General Fund were $3.5 million less than the final budget, primarily related to capital outlay which will carry into the next fiscal year, and other general operational savings across departments.
• Fund Balance: The fund balance (for ACFR purposes) in the General Fund increased by $4.0 million to $41.9 million from the prior year.

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Accept the Annual Comprehensive Financial Report for Fiscal Year-Ended June 30, 2023 City of Gilroy City Council Page 3 of 3 February 26, 2024

FISCAL IMPACT/FUNDING SOURCE
There are no direct fiscal impacts to receiving and filing the ACFR. The audit provides Council and other stakeholders with the assurance that the City is meeting its obligation for producing financial reports that are presented fairly and accurately. The annual financial audit is part of the Finance Department’s annual workplan, thus the resources and costs associated with the audit and preparation of the report are included in the adopted budget.

Attachments:

1. Annual Comprehensive Financial Report as of June 30, 2023.

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Annual Comprehensive
Financial Report
Year Ended June 30, 2023

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City of Gilroy
Gilroy, California
Annual Comprehensive Financial Report
and Independent Auditors’ Reports
For the Year Ended June 30, 2023
Prepared by Finance Department
Harjot Sangha, Finance Director
Rosemary Guerrero, Finance Manager

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City of Gilroy
Annual Comprehensive Financial Report
For the Year Ended June 30, 2023
Table of Contents
Page
INTRODUCTORY SECTION (Unaudited)
Letter of Transmittal ...................................................................................................................................................... i Elected Officials & City Staff ..................................................................................................................................... vii Organizational Chart .................................................................................................................................................. viii Map .............................................................................................................................................................................. ix GFOA Certificate of Achievement for Excellence in Financial Reporting .................................................................. x

FINANCIAL SECTION
Independent Auditors’ Report of the Financial Statements ................................................................................... 1 Management’s Discussion and Analysis (Required Supplementary Information) (Unaudited) ......................... 5 Basic Financial Statements:

Government-Wide Financial Statements:

Statement of Net Position .............................................................................................................................. 20 Statement of Activities ................................................................................................................................... 22 Fund Financial Statements:

Governmental Fund Financial Statements:

Balance Sheet .......................................................................................................................................... 29 Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position ......................................................................... 30 Statement of Revenues, Expenditures, and
Changes in Fund Balances ................................................................................................................ 31 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities ...................................................................................................................... 32 Proprietary Fund Financial Statements:

Statement of Net Position ........................................................................................................................ 34 Statement of Revenues, Expenses, and Changes in Net Position ............................................................ 37 Statement of Cash Flows ......................................................................................................................... 38 Fiduciary Fund Financial Statements:

Statement of Fiduciary Net Position ........................................................................................................ 43 Statement of Changes in Fiduciary Net Position ..................................................................................... 44 Notes to the Basic Financial Statements ........................................................................................................... 49

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City of Gilroy
Annual Comprehensive Financial Report
For the Year Ended June 30, 2023
Table of Contents (Continued)
Page
FINANCIAL SECTION (Continued)
Required Supplementary Information (Unaudited)
Schedule of Changes in the Net Pension Liability and Related Ratios– Last Ten Fiscal Years CalPERS Miscellaneous Plan ........................................................................................................................ 96 CalPERS Safety Plan ..................................................................................................................................... 98 Schedule of Plan Contributions - Pension – Last Ten Fiscal Years CalPERS Miscellaneous Plan ...................................................................................................................... 100 CalPERS Safety Plan ................................................................................................................................... 102 Schedule of Changes in the Net OPEB Liability and Related Ratios – Last Ten Fiscal Years ...................... 104 Notes to the Budgetary Comparison Schedules ................................................................................................ 107 Budgetary Comparison Schedules
General Fund ................................................................................................................................................ 108 Supplementary Information:

Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual:

Public Facilities Impact Capital Projects Fund ............................................................................................ 113 Nonmajor Governmental Funds:

Description of Nonmajor Governmental Funds ........................................................................................... 114 Combining Balance Sheet ............................................................................................................................ 116 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances .................................... 124 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual:

Gas Tax Special Revenue Fund ............................................................................................................. 132 Pavement Management Special Revenue Fund ..................................................................................... 133 Public Safety Grants Special Revenue Fund ......................................................................................... 134 Prop 172 Sales Tax Special Revenue Fund ........................................................................................... 135 Community Development Block Grant Special Revenue Fund ............................................................ 136 Rehabilitation Loans Special Revenue Fund ......................................................................................... 137 Housing Trust Fund Special Revenue Fund .......................................................................................... 138 Community Facilities District Special Revenue Fund ........................................................................... 139 Measure B Special Revenue Fund ......................................................................................................... 140 Vehicle License Fee Special Revenue Fund .......................................................................................... 141 Los Arroyos Fund Special Revenue Fund ............................................................................................. 142 CalHome Funds Special Revenue Fund .............................................................................................. 143

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City of Gilroy
Annual Comprehensive Financial Report
For the Year Ended June 30, 2023
Table of Contents (Continued)
Page
Supplementary Information (Continued):

Nonmajor Governmental Funds (Continued):

Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual (Continued):

Opioid Settlement Special Revenue Fund ............................................................................................. 144 Capital Projects Fund ............................................................................................................................ 145 Traffic Impact Capital Projects Fund .................................................................................................... 146 Storm Drains Capital Projects Fund ...................................................................................................... 147 Street Trees Development Capital Projects Fund .................................................................................. 148 Sewer Development Capital Projects Fund ........................................................................................... 149 Water Development Capital Projects Fund ........................................................................................... 150 Gilroy Community Library Capital Projects Fund ................................................................................ 151 Downtown Beautification Capital Projects Fund .................................................................................. 152 Stormwater Management Capital Projects Fund ................................................................................... 153 2013 Refunding Bond Debt Service Fund ............................................................................................. 154 Gilroy Community Library Debt Service Fund ..................................................................................... 155 CA Energy Commission Loan Debt Service Fund ................................................................................ 156 Lease Revenue Bonds Series 2020A Fund ............................................................................................ 157 Henry Miller Fund ................................................................................................................................. 158 Museum Trust Fund .............................................................................................................................. 159 Internal Service Funds:

Combining Statement of Net Position.......................................................................................................... 162 Combining Statement of Revenues, Expenses and Changes in Net Position .............................................. 164 Combining Statement of Cash Flows ........................................................................................................... 166 Fiduciary Funds:

Combining Statement of Fiduciary Net Position ......................................................................................... 171 Combining Statement of Changes in Fiduciary Net Position ...................................................................... 172

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City of Gilroy
Annual Comprehensive Financial Report
For the Year Ended June 30, 2023
Table of Contents (Continued)
Page
STATISTICAL SECTION (Unaudited)
Description of Statistical Section Contents ............................................................................................................... 173 Financial Trends:

Net Position By Component - Last Ten Fiscal Years ............................................................................................ 174 Changes in Net Position - Last Ten Fiscal Years .................................................................................................. 176 Fund Balances of Governmental Funds - Last Ten Fiscal Years ........................................................................... 180 Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years ........................................................ 182 Revenue Capacity:

Sales Tax by Category - Last Eleven Fiscal Years ................................................................................................ 184 Sales Tax Rates - Last Ten Fiscal Years ................................................................................................................ 187 Principal Sales Tax Producers – Last Fiscal Year and Nine Years Ago ................................................................ 188 Citywide Assessed Value and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years .................. 189 Assessed Value of Property by Use Code - Last Five Fiscal Years ...................................................................... 191 Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years .................................................................... 192 Principal Property Taxpayers – Last Fiscal Year and Nine Fiscal Years Ago ...................................................... 194 Property Tax Levies, and Tax Collections, and Delinquency - Last Ten Fiscal Years ......................................... 195 Debt Capacity:

Ratios of Outstanding Debt by Type - Last Ten Fiscal Years ............................................................................... 196 Ratio of General Bonded Debt Outstanding - Last Ten Fiscal Years .................................................................... 198 Schedule of Direct and Overlapping Bonded Debt ................................................................................................ 199 Legal Debt Margin Information - Last Ten Fiscal Years ....................................................................................... 200 Wastewater System – Historical Debt Service Coverage Last Seven Fiscal Years ............................................... 202 Demographic and Economic Information:

Demographic and Economic Statistics – Last Ten Fiscal Years ........................................................................... 205 Principal Employers – Last Fiscal Year and Eight Years Ago .............................................................................. 206 Operating Information:

Full-Time Equivalent City Employees By Function/Program – Last Ten Fiscal Years ........................................ 207 Operating Indicators by Function / Program – Last Ten Fiscal Years ................................................................... 208 Capital Assets By Function – Last Ten Fiscal Years ............................................................................................. 210

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INTRODUCTORY SECTION

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CITY ADMINISTRATOR’S
OFFICE
7351 Rosanna Street
Gilroy, CA 95020
Telephone (408) 846-0202
Facsimile (408) 846-0500
http://www.ci.gilroy.ca.us
February 20, 2024
To the Honorable Mayor, Members of the City Council, and Citizens of Gilroy:

The City of Gilroy’s (City) Charter requires that the City publish a complete set of audited financial statements for each fiscal year. This report is published to fulfill that requirement for the fiscal year ended June 30, 2023.

This Annual Comprehensive Financial Report (ACFR) is submitted for your information and review. The information contained herein has been provided to allow the reader to gain an understanding of Gilroy’s financial activities. Management assumes full responsibility for the completeness and reliability of the information contained in this report. The Management Discussion and Analysis (MD&A) is included to assist the reader in its review of the City’s financial statements. It provides a roadmap for the financial statements and related notes.

To provide a reasonable basis for making these representations, the management of the City has established a comprehensive framework of internal controls that is designed to both protect the government’s assets from loss, theft or misuse and to compile sufficient reliable information for the preparation of the City’s financial statements in conformity with U.S. Generally Accepted Accounting Principles (GAAP). Because the cost of internal controls should not outweigh their benefits, the City’s comprehensive internal controls framework has been designed to provide reasonable, rather than absolute assurance, that the financial statements will be free from material misstatements. Management is committed to maintaining the City’s internal controls to adequately safeguard assets and provide reasonable assurances of proper recording of financial transactions.

The Pun Group LLP, Certified Public Accountants, have issued an unmodified (“clean”) opinion on Gilroy’s financial statements for the year ended June 30, 2023. The independent auditor’s report is located at the beginning of the financial section of this report. The MD&A immediately follows the independent auditor’s report and provides a narrative introduction, overview, and analysis of the basic financial statements.

Profile of the government
The City is the southernmost city in Santa Clara County, approximately 25 miles south of San Jose and about 75 miles south of San Francisco. Gilroy sits at the crossing of U.S. Highway 101 and State Highway 152. The City was first incorporated in 1870 and became a charter city on January 8, 1960. Per the California Department of Finance’s annual demographic report for 2023, as of January 1, 2023, the City had a population estimate of 60,078.

Situated between the Diablo and Santa Cruz mountains in the Santa Clara Valley, the City experiences mild temperatures, while missing most of the coastal fog. The agricultural growing season ranges from 300 to 350 days a year. Over the past few decades, the City has been transitioning from an agricultural economy into a light-industrial and services-based economy.
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The City operates under the Council Administrator form of government. The seven City Council members, including the Mayor, are elected-at-large to four-year terms in alternate slates of three elected every two years, and the Mayor being elected every four years. The City Council appoints the City Administrator, who heads the executive branch of the government, implements City Council directives and policies, and manages the administrative and operational functions through the department directors. The City Administrator appoints the department directors, except for the City Clerk and the City Attorney, which are appointed by the City Council.

The city's budget is a detailed operating and capital improvement plan that identifies estimated costs and activities related to estimated revenues. The City Administrator submits to the City Council a proposed biennial budget for all funds, and the Council then proceeds to make any changes to the proposed budget it deems necessary. Before adopting the proposed budget, the Council holds a public hearing. After the conclusion of the public hearing, the Council may make further revisions to the proposed budget. Thereafter, the Council adopts the budget with revisions, if any. Once adopted, the City Council may make further changes to the budget via budget amendments adopted by a resolution. In addition to the primary government, the City also reports on a Component Unit, the South County Regional Wastewater Authority, a joint powers agreement between the City of Gilroy and the City of Morgan Hill for the sewer treatment plant.

The City is a full-service city. It provides municipal services, including public safety (police and fire), community and economic development, recreation activities, parks and street maintenance, water and sewer utilities, and general City administration. Some City operations are supplemented with service contracts, such as legal services and infrastructure maintenance services. Pacific Gas and Electric Company provides natural gas and electricity. The City provides water service. Wastewater is collected and treated by the South County Regional Wastewater Authority. Recycling and solid waste disposal services are provided in the city by Recology South Valley.

The City is committed to citizen participation in evaluating and enhancing its services. This is achieved via direct community engagement and the City Council’s advisory boards, commissions, and ad-hoc committees.

Economic Setting and Outlook
Gilroy’s economy has been dominated by agriculture and its related industries (food processing, etc.) since the 1800s. However, the growing influence of Silicon Valley and regional population growth have resulted in significant changes in the local economy during the past twenty years. The economic boom in Silicon Valley, which began in the early 1990s, had profound impacts on the local economy, resulting in significant increases in home prices and land values as well as significant decreases in local unemployment. The COVID-19 pandemic fueled a crisis in the housing market, sending demand and prices for homes soaring to all-time highs in an already supply-tight market.

Today, Gilroy’s economy is diversified into non-agricultural commercial and industrial activities such as light manufacturing, wholesale operations, automobile sales, and large retail centers. The Gilroy Outlets, Auto Mall area, and retail developments east of Highway 101 have put the City on the map as a regional retail destination and helped strengthen the City’s tax revenues. Manufacturing and wholesale/distribution operations take advantage of Gilroy’s proximity to Silicon Valley and easy access to Highway 152, leading to Interstate 5 and the Central Valley.

Development activity has also been active in the commercial sector in southeast Gilroy, near Hwy 152, east of 101. Various industrial and warehouse developments anticipate adding jobs to Gilroy. A new retail center at 10th Street and Chestnut Street will include a five-story, 112-room hotel, three restaurants with driveii

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through, a convenience store, a gas station, a carwash, and intersection improvements at 10th Street and Chestnut. These commercial developments provide the City with millions of square feet of retail and professional services space.

Overall, the City’s economic outlook is projected to remain stable in the near-term. Over the last two years, the city’s finances have stabilized with healthy reserve levels due to strong economic recovery from the COVID-induced recession and the unprecedented economic stimulus provided by the federal government.

In 2022, the Federal Reserve adjusted its monetary policy to raise federal fund interest rates to curb high inflation. This shift is the economic policy that remained intact during 2023, where the Federal Reserve increased the federal funds rate from nearly 0% to over 5%. The higher interest rate environment has impacted consumer spending and curbed typically financed business investments. Evidence shows that the Federal Reserve’s adjusted policy is achieving its goal to curb inflation and restoring price stability. Compared to the December 2022 consumer price index (CPI) inflation, CPI inflation fell by 3.1%, from 6.5% in December 2022 to 3.4% in December 2023. Core inflation, which excludes volatile food and energy prices, was 3.9% in December 2023, down 1.8% from its 12-month December 2022 rate of 5.7%. While the inflation stands above the Federal Reserve’s target of 2%, some economics predict that the Federal Reserve has reached the peak in its current cycle of rate hikes and that a weakening economy in 2024 will initiate a mild easing of the federal funds rate by the fourth quarter of 2024, followed by additional easing into 2025.

The General Fund is the most discretionary funding source and funds most of the City’s public services. The General Fund’s primary source of revenues is taxes, including sales, property, utility, franchise, and transient occupancy taxes. The chart below depicts these significant tax revenues and their year-over-year change for five years. Additionally, the top two sources are further discussed below. $20.2 $17.2 $18.3 $21.6 $21.0
$14.5 $15.6 $17.0
$17.9 $19.2
$4.7 $5.2 $4.4
$5.5 $6.6
$1.7 $1.9 $1.7
$1.9 $2.2
$1.8 $1.2 $1.1
$1.5 $1.8
$-
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
Actual Actual Actual Actual Actual
FY 2019 FY 2020 FY 2021 FY 2022 FY 2023
Millions
Sales Tax Property Tax Utility User Tax
Franchise Tax Trasient Occupancy Tax Other Tax
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Sales tax is the largest single source, approximately 32% of total General Fund revenues in FY23, and is very volatile as it relies directly on consumers’ discretionary spending. Sales tax revenue rebounded quickly in the preceding two years as the pandemic-related measures were lifted and economic activity resumed; however, sales tax revenue of $21.0 million in FY23 was $0.6 million lower, or down 3%, compared to FY22’s revenue of $21.6 million, which was a record high. The City’s FY24 budgeted sales tax revenue is $21.8 million and is currently projected to come in at $20.7 million, approximately, $1.1 million, or about 5%, under budget notably due to slowdown in consumer spending in the general retail, construction, and County pool (online sales) sales tax categories.

Property tax is the second largest source, approximately 30% of total General Fund revenues in FY23, and has had steady growth, 7% on average, over the last four years. Property tax revenues totaled $19.2 million, an increase of $1.3 million, or 7%, from the prior year’s $17.9 million. In FY24, the property tax revenue is projected to come in at the budgeted $20.4 million, approximately 6% higher than in FY23. The increases are due to a combination of new developments added to the assessment roll, annual CPI adjustments to assessed values pursuant to Proposition 13, and Excess Education Revenue Augmentation Fund (ERAF) distribution.

The City’s General Fund’s primary expenditure is related to personnel. At the beginning of FY23, the City Council approved various multi-year labor contracts focusing on recruitment and retention, which helps provide stability for the employees and the organization overall and helps to project and budget for the planned increases for the next two fiscal years. In addition, during FY23, the City initiated the first automatic CPI adjustment, 4.2%, to its citywide user fee schedule to ensure it can continue to recoup the costs of providing certain services.

As previously mentioned, the City also provides water and wastewater utility to its residents. The utilities are funded by rates assessed as charges for services to the customers. The rates were last adjusted in 2019.

During FY23, the City engaged a consultant to conduct a comprehensive water and wastewater rate study for both utilities. Subsequently, in October 2023, the City Council approved multi-year rate adjustments for both utilities, commencing on January 1, 2024, with annual increases thereafter for five years. The rates are projected to keep both utilities fiscally sound, keep up with the operational costs, and make the necessary capital investments in the aging infrastructure.

Fiscal Year 2023 (FY23) Financial Results
The City as a whole ended the FY23 with an operating gain, resulting in a change in net position of $8.1 million.

The City’s net pension liabilities increased by $43 million to $103.7 million. The increase in the liabilities was primarily driven by negative investment earnings and higher interest costs on total pension liability which decreased the pension plans’ fiduciary net position during the measurement year.

In the General Fund, the revenues for FY23 were $2.3 million better than budget, primarily due to higher than projected investment income attributed to the rapid increase in interest rate environment, increased revenues from taxes (property and utility user), and charges for services during the fiscal year. Additionally, expenditures were $3.5 million lower than budget, primarily related to capital outlay, which will carry into the next fiscal year, and additional operational savings across all departments. Excluding transfers, the revenues exceeded the expenditure by $3.6 million, resulting in a net increase in fund balance for the General Fund of $4.0 million to $41.9 million.
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Revitalization and Capital Improvements
Commercial development in specific corridors in Gilroy has added millions of square feet of retail and professional services space to the City. Downtown revitalization efforts have helped attract new businesses, retained existing businesses, and created a core area of antique stores, specialty shops, and restaurants.

Restored historic buildings also add to the downtown’s character, including the Old City Hall and the Train Depot. However, some vacant storefronts persist, and the city continues to focus additional efforts on revitalizing these spaces by offering economic incentives to the property and the business owners. Through FY23, the City Council continued its commitment to revitalizing the downtown area to make façade improvements, implementing a blight removal program, and forming a City Council downtown committee.

The Council also authorized several surplus lands act declarations on city-owned properties to allow future development of those real estate assets via strategic partnerships or sales. In addition, a few key projects were completed or initiated during the year, notably the completion of the Downtown Gourmet Parking Lot – 140 surface parking spaces with electric vehicle charging infrastructure - $2.3 million budget, completion of FY22 Citywide Pavement Rehabilitation Project – $4.5 million budget, and award of FY23 Citywide Pavement Rehabilitation Project - $6.7 million budget. The City also took action to commence the design of an indoor, two-rink ice facility at the Gilroy Sports Park in partnership with Sharks Sports and Entertainment LLC.

The City’s capital improvement plan (CIP) provides a 5-year window for projects to be completed within the CIP horizon. The primary funding source is capital project funds - which derive revenues from development impact fees, and special revenue funds – which derive revenues from intergovernmental grants and taxsharing allocations, such as gas taxes. In addition, the City has contributed General Fund dollars to augment the City’s annual pavement rehabilitation program in recent years. The current five-year CIP program was adopted on June 5, 2023, focusing on significant utilities infrastructure improvements based on the updated 2023 water and wastewater master plan.

Long-term Financial Planning
General Fund
The City’s general fund balance as of June 30, 2023, was $41.9 million. The City Council adopted a general fund reserve policy of retaining a general fund reserve equal to 20% of annual general fund expenditures. The policy adopted a separate economic stability reserve used only for limited purposes, at 10% of general fund expenditures. The City prepares a five-year forecast for the fund, which projects the operating revenues and expenditures. The current forecast projects the City to maintain reserve requirements for several years.

However, there are signs of an overall slowdown in the economy as it returns to normalcy, which may require adjustments in future budget cycles to ensure the fund remains structurally balanced. The City adopted its FY24 and FY25 budget on June 5, 2023. As previously mentioned, the City accumulated healthy reserve levels over the past two years. As such, the adopted FY24 and FY25 budgets were crafted in a manner that uses the accumulated fund balances and cautiously plans for new service level enhancements. The budget includes significant one-time investments for street pavement rehabilitation, critical public safety equipment, improvements to various public facilities, and long-term master planning initiatives.

Enterprise Fund
The total net position of the Sewer Fund increased by $1.2 million, to $106.2 million from the prior fiscal year.

The unrestricted net position of the Sewer Fund at the end of the year amounted to $104.3 million, an increase of $19.0 million, or about 22%, from the prior year, offset by a decrease in net investment in capital assets of approximately $17.8 million mainly due to drawdown of the 2021A bond proceeds to finance City’s share of the South County Regional Wastewater Treatment plant expansion project. v

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The total net position of the Water Fund increased by $2.6 million, to $80.2 million from the prior fiscal year.

The unrestricted net position of the Water Fund at the end of the year amounted to $26.0 million, an increase of $2.0 million, or about 8%, from the prior year. The net investment in capital assets increased by $0.6 million to $54.2 million.

In October 2023, the City Council adopted the comprehensive water and sewer utilities rate study and enacted the recommended rate adjustments. The study includes the establishment of operational and capital rehabilitation/replacement. Reserves. As such, both utilities maintain six months of operating expenses as an operational reserve and a 50% of the average annual capital improvement program over the five-year period as a capital reserve. Both utilities are projected to maintain respective reserves for the fiveyear rate adjustment period.

Award and Acknowledgements
The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Gilroy for its annual comprehensive financial report for the fiscal year ended June 30, 2023. This was the nineteenth consecutive year that the City achieved this prestigious award.

To be awarded a Certificate of Achievement, the City had to publish an easily readable and efficiently organized ACFR that satisfied both generally accepted accounting principles and applicable program requirements.

A Certificate of Achievement for Excellence in Financial Reporting is valid for a period of one year only. We believe that our FY23 ACFR meets the Certificate of Achievement for Excellence in Financial Reporting Program’s requirements and are submitting the FY23 ACFR to the GFOA to determine its eligibility for another certificate.

The preparation of this report would not have been possible without the skill, diligence, and commitment of the entire Finance Department staff, specifically Finance Manager Rosemary Guerrero. We wish to thank all departments for their assistance in providing the data necessary to prepare this report. Credit is also due to the Mayor and the City Council for their continuing support for maintaining the highest standards of professionalism in managing Gilroy’s finances and prioritizing financial sustainability.

Respectfully submitted,
Jimmy Forbis Harjot Sangha
City Administrator Finance Director
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City of Gilroy
Elected Officials & City Staff
As of Fiscal Year-End - June 30, 2023

ELECTED OFFICIALS
Marie Blankley Mayor
Dion Bracco Mayor Pro Tempore
Rebeca Armendariz Council Member
Tom Cline Council Member
Zach Hilton Council Member
Carol Marques Council Member
Fred Tovar Council Member

EXECUTIVE STAFF
Jimmy Forbis City Administrator
Sharon Goei Community Development Director
Harjot Sangha Finance Director
Jim Wyatt Fire Chief
LeeAnn McPhillips Assistant City Administrator/Administrative Services and Human Resources Director Pedro Espinoza Police Chief
Karl Bjarke Interim Public Works Director
Bryce Atkins Assistant to the City Administrator
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ORGANIZATION CHART
Gilroy
Community
City Council
City Attorney City Administrator
Community
Development Public Works Administrative Services Finance Police Fire City Clerk
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Gilroy
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2022
Executive Director/CEO
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FINANCIAL SECTION

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200 E. Sandpointe Avenue, Suite 600
Santa Ana, California 92707
INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor and the Members of the City Council of the City of Gilroy
Gilroy, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of City of Gilroy, California (the “City”) as of and for the year ended June 30, 2023, and the related notes to the basic financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the discretely presented component unit (“DCU”), each major fund, and the aggregate remaining fund information of the City, as of June 30, 2023, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Emphasis of Matter
Implementation of New GASB Pronouncements
As discussed in Note 1 and Note 19 to the basic financial statements, the City implemented Governmental Accounting Standards Board (“GASB”) Statement No. 96, Subscription Based Information Technology Arrangements during the year. The implementation of GASB Statement No. 96 requires the City to record subscription assets and corresponding subscription liabilities for all SBITAs with a noncancellable term over one year. As a result of the implementation, the City reported a restatement of its net position in the amount of $377,925. Our opinion is not modified with respect to this matter.

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To the Honorable Mayor and the Members of the City Council of the City of Gilroy
Gilroy, California

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Gilroy City CouncilFebruary 26, 2024

Gilroy City Council
February 26, 2024