Gilroy City Council
May 19, 2025

9 Annual Military Equipment Use Report 2024

7. The procedures by which members of the public may register complaints or concerns or submit questions about the use of each specific type of military equipment, and how the Department will ensure that each complaint, concern, or question receives a response in a timely manner.

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Summary of Military Equipment Usages
The City of Gilroy provides law enforcement services twenty-four hours a day, seven days a week, serving a city population of over 58,000. The Department is committed to deescalating situations, and using force is reserved for instances where less intrusive options are not feasible. In 2024, the Gilroy Police Department responded to approximately 65,993 calls for service. Officers used force on only fifty-four (54) occasions of those calls for service, representing 0.0008% of the total calls for service. Of the force options utilized, military equipment in the form of projectiles and/or chemical irritants was only used during four (4) or less than 0.00003% of all contacts. These statistics illustrate the relatively few instances of force used by Gilroy police officers in relation to overall contacts. Moreover, the force used involving military equipment is an even smaller subset of the overall force used during this time.

While the Gilroy Police Department’s inventory of military equipment is varied, the mere possession of the equipment does not warrant its use for every incident. The Gilroy Police Department recognizes that critical incidents are unpredictable and can be very dynamic in nature. Various military equipment options can greatly assist incident commanders, officers, and specific units in swiftly and safely resolving those incidents. The use of military equipment is restricted to certain instances and, in some cases, only by specific units.

This section outlines the military equipment usage from January 1, 2024, to December 31, 2024. Certain items of military equipment, particularly consumables (ammunition, diversionary devices, pepper balls, chemical agents, etc.), are regularly used throughout the year for training to maintain proficiency. Training usage is not captured in this section. This section only provides data for the operational use of military equipment listed within this Annual Military Equipment Use Report.

Outreach and Community Engagement
The Gilroy Police Department is committed to improving the trust and confidence between the Department and the community it serves. As the Department strives to enhance community relationships and continues to be a progressive leader among law enforcement agencies nationwide, we want to ensure the public can access how its Police Department operates and engages with the public. The Gilroy Police Department regularly utilizes select military equipment, including Unmanned Aircraft Systems, Armored Rescue Vehicles, the Mobile Command Vehicle, and Crisis Negotiation Team Vehicles, during outreach and community events for public awareness, transparency, and education. Military equipment may also be displayed during community events to provide a safe environment for the public to enjoy the great amenities the City of Gilroy offers.

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The following is the data for Military Equipment Use by category from January 1, 2024, through December 31, 2024:

Unmanned Aircraft Systems (UAS)
Unmanned Aircraft Systems were utilized for a total of one hundred sixteen (116) hours.

Authorized usages:
• Collection of evidence in the form of aerial photography/video in support of an investigation (i.e., shooting scenes, homicide scenes). • Support of SWAT and Patrol during high-risk, tactical, or other public safety lifepreserving missions (i.e., interior visual assessments of structures or outdoor areas to gain intelligence prior to officers entering a dwelling or contacting a potentially armed or resistive subject that may be hiding). • Delivery of items (i.e., HNT phone) during critical incidents to engage in deescalation and/or crisis intervention techniques to resolve incidents peacefully. • Conduct aerial searches for missing persons.
• Provide aerial observation to assist in managing natural disasters (i.e., fires, floods, storms).

Unauthorized usages:
• There have been zero (0) reported violations of the military equipment use policy.

Robots
Robots were utilized a total of zero (0) time.

Authorized usages:
• Support of SWAT and Patrol during high-risk, tactical, or other public safety life preservation missions to include:
• Opening doors to clear buildings for public safety and life preservation missions. • Provide interior visual assessments of structures or outdoor areas to gain intelligence before officers enter a dwelling or contact a potentially armed or resistive subject that may be hiding).
• Delivery of items (i.e., HNT phone) during critical incidents to engage in deescalation and/or crisis intervention techniques to resolve incidents peacefully.

Unauthorized usages:
• There have been zero (0) reported violations of the military equipment use policy.

Armored Vehicle
The BearCat was utilized a total of thirteen (13) times.

Authorized usages:

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• Support SWAT and Patrol during critical incidents by providing greater safety to community members and officers beyond the protection level of a shield and/or personal body armor.
• Community engagement events offer transparency and allow the community to better understand what equipment we have and how it is used.

Unauthorized usages:
• There have been zero (0) reported violations of the military equipment use policy.

Mobile Command Vehicle (MCV)
The Mobile Command Vehicle was utilized thirteen (13) times.

Authorized usages:
• Utilized as a command post for critical incidents during complex events. • Natural disasters (i.e., mutual aid for large-scale fires or flooding). • Other large-scale events to provide high visibility and public safety.

Unauthorized usages:
• There have been zero (0) reported violations of the military equipment use policy.

Hostage Negotiation Team (HNT) Van
The Hostage Negotiation Team Van was utilized zero (0) times.

Authorized usages:
• Utilized as a mobile office for critical incidents during complex events. • Provide shelter and an access point for computer systems for negotiation team members.

Unauthorized usages:
• There have been zero (0) reported violations of the military equipment use policy. 40mm Launchers and Munitions
The 40mm Launcher was utilized during one (1) call for service. • 40mm Impact-related rounds – utilized during one (1) call for service • 40mm OC-related rounds – utilized during zero (0) calls for service • 40mm related CS-related rounds – utilized during zero (0) calls for service • 40mm pyrotechnic-related rounds - utilized during zero (0) calls for service • 40mm warning/signaling-related rounds – utilized during zero (0) calls for service Authorized usages:

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• Safely address an individual who displays self-destructive, dangerous, or combative behavior.
• Safely address an armed, potentially armed, or violent individual. • During riot/crowd control and civil unrest incidents where the use of the 40mm is considered objectively reasonable to defend against a threat to life or serious bodily injury to any individual, including any peace officer, or to bring an objectively dangerous and unlawful situation safely and effectively under control (in compliance with Assembly Bill 48).
• Circumstances to gain a tactical advantage during critical incidents or high-risk entries where public safety and/or officer safety is at risk. (i.e., breaking out a vehicle window to get an unobstructed view of an armed barricaded individual). • Potentially vicious animal (i.e., an aggressive animal trying to harm member(s) of the community or an officer).

Unauthorized usages:
• There have been zero (0) reported violations of the military equipment use policy.

Combined Tactical Systems LC5 Launching Cup
The Combined Tactical Systems LC5 Launching Cup was utilized zero (0) times.

Authorized usages are covered under Chemical Agents and Smoke Canister.

Unauthorized usages:
• There have been zero (0) reported violations of the military equipment use policy.

Less Lethal Shotguns and Munitions
Less Lethal Shotguns were utilized during one (1) call for service.

Authorized usages:
• Safely address an individual who displays self-destructive, dangerous, or combative behavior.
• Safely address an armed, potentially armed, or violent individual. • During riot/crowd control and civil unrest incidents where the use of the beanbag shotgun is considered objectively reasonable to defend against a threat to life or serious bodily injury to any individual, including any peace officer, or to bring an objectively dangerous and unlawful situation safely and effectively under control (in compliance with Assembly Bill 48).
• Circumstances where a tactical advantage can be obtained (e.g., making highrisk entries, including disabling surveillance cameras). • Potentially vicious animal (i.e., an aggressive animal trying to harm member(s) of the community or an officer)
Unauthorized usages:

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• There have been zero (0) reported violations of the military equipment use policy.

Rifles and Munitions
Rifles were utilized zero (0) times.

Authorized usages:
• In accordance with California Penal Code section 835a and GPD Policy Manual Section 300 (Use of Force)
Unauthorized usages:
• There have been zero (0) reported violations of the military equipment use policy.

Diversionary Devices
Diversionary Devices were utilized a total of eight (8) times.

Authorized usages:
• Support SWAT during call-outs and high-risk warrant services • Distract dangerous suspects during assaults
• Hostage rescue incidents
• High-risk room entries
Unauthorized usages:
• There have been zero (0) reported violations of the military equipment use policy.

Chemical Agents and Smoke Canisters
Chemical Agents and Smoke Canisters were utilized zero (0) times. • CS Canister/Grenade – utilized zero (0) times
• OC Canister/Grenade - utilized zero (0) times
• Smoke Canister/Grenade - utilized zero (0) times
• OC Fogger - utilized zero (0) times
• OC Stream - utilized zero (0) times
Authorized usages:
• Safely address an individual who displays self-destructive, dangerous, or combative behavior.
• During riot/crowd control and civil unrest incidents where the use of chemical agents is considered objectively reasonable to defend against a threat to life or serious bodily injury to any individual, including any peace officer, or to bring an objectively dangerous and unlawful situation safely and effectively under control (in compliance with Assembly Bill 48).

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• Circumstances to gain a tactical advantage during critical incidents or high-risk entries where public safety and/or officer safety is at risk. • Potentially vicious animal (i.e., an aggressive animal trying to harm member(s) of the community or an officer).

Unauthorized usages:
• There have been zero (0) reported violations of the military equipment use policy.

PepperBall Launchers and Projectiles
PepperBall Launchers were utilized during zero (0) calls for service.

Authorized usage:
• Safely address an individual who displays self-destructive, dangerous, or combative behavior.
• Safely address an armed, potentially armed, or violent individual. • During riot/crowd control and civil unrest incidents where the use of the 40mm is considered objectively reasonable to defend against a threat to life or serious bodily injury to any individual, including any peace officer, or to bring an objectively dangerous and unlawful situation safely and effectively under control (in compliance with Assembly Bill 48).
• Circumstances to gain a tactical advantage during critical incidents or high-risk entries where public safety and/or officer safety is at risk (i.e., deploying into a structure/vehicle where a barricaded subject is, resulting in a peaceful surrender).
• Potentially vicious animal (i.e., an aggressive animal trying to harm member(s) of the community or an officer).

Unauthorized usages:
• There have been zero (0) reported violations of the military equipment use policy.

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Inventory by Equipment Type
January 1, 2024, through December 31, 2024
Note: The inventory of certain items of consumable military equipment (i.e., ammunition, diversionary devices, chemical agents, etc.) frequently fluctuates throughout the year due to operational usage, training usage, operational wear, and/or manufacturer-recommended replacement guidelines. While the Gilroy Police Department strives to provide accuracy in its inventory reporting, this report reflects approximations of certain consumable items of military equipment during the time period listed above.

Unmanned Aircraft System (UAS)
Equipment Name and Model / Manufacturer Quantity
Lemur 2 / Brinc 1
Avata 2 / DJI 2
Matrice 30T / DJI 1
Mavic 2 Enterprise / DJI 1
Mavic Mini 2 / DJI 4
Robots
Equipment Name and Model / Manufacturer Quantity
Avatar Tactical Robot / Robotex 1
Vantage Patrol Robot / Transcend 1
Throwbot 2 / Recon Robotics 1
Armored Vehicles
Equipment Name and Model / Manufacturer Quantity
Bearcat G2 / Lenco 1
Mobile Command Vehicle (MCV)
Equipment Name and Model / Manufacturer Quantity
M2, Custom Built / Freightliner 1
Hostage Negotiation Team (HNT) Van
Equipment Name and Model / Manufacturer Quantity
Communication Van, Custom Built / Kodiak 1
40mm Launchers and Munitions

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Equipment Name and Model / Manufacturer Quantity
40mm Launchers
40mm Single Shot Launcher #1425 / Defense Technology 7
40mm Tactical 4-Shot Launcher #1440 / Defense Technology 2 40mm Munitions
40mm Exact Impact Sponge Round #6325 / Defense Technology 50 rounds Less Lethal Shotguns and Munitions
Equipment Name and Model / Manufacturer Quantity
Less Lethal Shotgun
Model 590, 12-Gauge Shotgun / Mossberg 10
Less Lethal Munitions
12-Gauge Super-Sock Beanbag Round / Combined Systems, Inc. 150 rounds Combined Systems LC5 Launching Cup
Equipment Name and Model / Manufacturer Quantity
LC5 Launching Cup / Combined Systems, Inc. 2
Diversionary Devices
Equipment Name and Model / Manufacturer Quantity
7290 Flash-Bang / Combined Systems, Inc. 2
7290M Mini Flash-Bang / Combined Systems, Inc. 30
Rifles and Munitions
Equipment Name and Model / Manufacturer Quantity
Rifles
M4 Commando / Colt 11
M4 Carbine / Colt 5
700 / Remington 5
M16A1 / Colt 16
M14 / Springfield 1
Chemical Agents and Smoke Canisters

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Equipment Name and Model / Manufacturer Quantity
Maximum HC Smoke Large-Style Canister, #1073 / Defense
Technology
2 canisters
White Smoke Tactical Canister Grenade, #8210 / Combined Tactical Systems
6 canisters
Riot CS Smoke Grenade, #8230 / Combined Tactical Systems 30 canisters Riot CS Smoke Grenade, #6230 / Combined Tactical Systems 7 Canisters Baffled Riot CS Smoke Grenade, #5230B / Combined Tactical Systems 30 canister 37mm Single Shot Launcher #SL1-37 / Penn Arms 6
37mm Rifled Barricade Penetrating, #BP50C / Sage Control Ordinance 0 canisters 37mm Rifles Barricade Penetrating, #BP5CS / Sage Control Ordinance 0 canisters 37mm Impact/Chemical, #K03OC / Sage Control Ordinance 0 canisters PepperBall Launchers and Projectiles
Equipment Name and Model / Manufacturer Quantity
FTC Launcher / PepperBall 6
Live Projectile / PepperBall 1000 projectiles
Inert Projectile / PepperBall 1000 projectiles

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Fiscal Impact
January 1, 2024 – December 31, 2024
Currently, the Gilroy Police Department maintains a workforce comprised of over 69 fulltime equivalent (FTE) sworn peace officer positions and 39 FTE professional staff positions.

The department’s adopted budget for FY 2024 was approximately $32,331,188, 77% of which is allocated for personnel expenses. The portion of the budget allocated for military equipment expenditures represents only a tiny fraction of the Department’s operating costs. However, the funds spent on military equipment are integral to providing the necessary resources and materials to keep the community and officers safe. The significance and enhanced capability of the current military equipment inventory is immense and cannot be understated from a public safety perspective.

The following table summarizes equipment-related expenditures for the calendar year 2024 and the projection of expenses for the calendar year 2025. Equipment expenditures include the acquisition of new equipment, the replacement of damaged equipment, and the ongoing maintenance of the controlled equipment.

Military Equipment Expenditures by Category and Year
Category 2024
Annual
Cost/Maintenance
(approximate)
2025
Projected Annual
Cost/Maintenance
(approximate)
Unmanned Aircraft System (UAS)
Maintenance
$12,800 $10,000
Robot Maintenance $0 $1,000
Armored Vehicle Maintenance $0 $360,500
Mobile Command Vehicle (MCV) $0 $12,500
Hostage Negotiation Team (CNT)
Van
$0 $125,000
40mm Launchers and Munitions $2,800 $250
Less Lethal Shotgun and Munitions
Maintenance
$0 $250
Combined Systems LC5 Launching
Cup
$0 $0
Diversionary Devices $0 $250
Rifles and Munitions Maintenance $5,800 $1,250
Chemical Agent and Smoke
Canisters
$450 $450

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PepperBall Launchers and
Projectiles Maintenance
$150 $150
TOTAL $22,000 $511,600

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JANUARY 1, 2024- DECEMBER 31, 2024

CONSUMABLE MILITARY EQUIPMENT ACQUISITIONS
Projected consumable military equipment acquisitions are anticipated to be consistent with current replenishment schedules and quantities for consumables. A variety of commercial factors (i.e., supply and demand, inflation, supply chain issues, etc.) may influence the fiscal impact of future military equipment acquisitions, and ongoing military equipment consumables can vary according to inventory levels that fluctuate as a result of training, operational usage, or manufacturer recommended replacement guidelines.

Categories of consumable military equipment are listed below:
• Chemical Agent and Smoke Canisters
• Specialty Munitions (40mm Munitions and Less Lethal Munitions) • Diversionary Devices
• PepperBall Projectiles
Funding for most of the consumable military equipment is anticipated to be sourced from the existing police budget.

NON-CONSUMABLE MILITARY EQUIPMENT ACQUISITIONS
Projected non-consumable military acquisitions are anticipated to be limited at this time.

Any unanticipated replacements of existing non-consumable military equipment will be initiated on a case-by-case basis dependent on operational need, operational wear, or end of serviceable lifespan and will be consistent with the Council-approved policy for acquisitions of military equipment. Categories of non-consumable military equipment are listed below:
• Unmanned Aircraft System (UAS)
• Robots
• Armored Vehicle
• Mobile Command Vehicle (MCV)
• Hostage Negotiation Team (HNT) Van
• 40mm Launchers
• 37mm Launchers
• Less Lethal Shotguns
• Combined Systems LC5 Launching Cup
• Rifles
• PepperBall Launchers

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Projected Acquisitions
The Department has the following projected acquisitions of non-consumable military equipment:

1. The acquisition of a single Lenco BearCat, NIJ Level IV, Armored Rescue Vehicle has been initiated. This Armored Vehicle's procurement is funded from two distinct sources:
the Police Department’s Asset Forfeiture Account and Salary Savings from Fiscal Year 2022/23. It is expected to be delivered by June 2025.

2. The Hostage Negotiation Team (HNT) plans to request the acquisition of a Dodge ProMaster Van, or a similar vehicle, to replace the current HNT Van, which was acquired in 1991 and has reached the end of its serviceable lifespan (20 years).

The remainder of non-consumable military equipment will consist of ongoing maintenance costs. Funding for the majority of non-consumable military equipment is anticipated to be sourced from the existing police budget.

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Department Transparency
Community Complaints/Concerns/Comments
In some instances, the application and use of military equipment may raise questions and/or concerns among community members. It is vitally important that the Department address these questions.

The Gilroy Police Department is committed to full and fair investigations of community member complaints. As such, the Department has sound internal procedures for thorough and impartial investigations. Resolving complaints in a fair, impartial, and expeditious manner will ensure the department's consistently high level of integrity and efficiency.

The following is a summary of formal investigations, including officer-involved shootings and the use of military equipment, as investigated by the Gilroy Police Department’s Internal Affairs Division from January 1, 2024, through December 31, 2024.

Complaints or Concerns:

There were zero (0) complaints or concerns related to the use of military equipment.

Officer-Involved Shootings (OIS):

There were zero (0) OIS incidents that occurred involving the use of military equipment.

Response to Procedure Violations
California Assembly Bill 481, enacted California Government Code section 7072(a)(3), requires local law enforcement agencies to provide information regarding military equipment use procedure violations and responses to those violations. In accordance with the new law, the Gilroy Police Department has actively tracked this information.

There were zero (0) reported violations of the military equipment use policy.

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Internal Audits
California Assembly Bill 481 requires local law enforcement agencies to include the results of any internal audits or inspections conducted and any responsive actions in its annual military equipment use report. When an audit is conducted, inspectors shall refer to the department’s military equipment use policy for established guidelines regarding funding, acquisition, or use of military equipment.

The Gilroy Police Department’s operations commander has been assigned the duty of auditing its military equipment use. The Commander has developed a tracking and auditing process to ensure compliance, consistency, accountability, and transparency, as outlined in GPD Policy Manual Section 708 (Military Equipment Use).

Internal Audit Results
The Operations Commander conducted an annual audit on department-approved military equipment use from March 1, 2024, through March 31, 2024. The details and results of each audit are listed below:

AUDIT—The Special Operations Commander completed an audit of department military equipment. The audit scope included inspecting equipment type and quantity, verifying serial numbers, and noting discrepancies compared to the approved GPD Military Equipment Use policy. The audit methodology included onsite inspections and statistical sampling, supported by generally accepted government auditing standards.

FINDINGS—During the Military Equipment Use Audit, the Special Operations Commander did not find any complaints related to the department’s military equipment use policy. All military equipment was collected, inventoried, and identified, giving the department a 100% compliance rate.

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Summary of Military Equipment
The inventory of military equipment, particularly consumable material (diversionary devices, various munitions, chemical agent and smoke canisters, etc.) fluctuates regularly.

Fluctuation is based on a variety of factors, including but not limited to operational usage, operational deterioration, training, maintenance, and expiration and replenishment guidelines.

The Gilroy Police Department is committed to transparency in disclosing its military equipment inventory and related information to our community and elected officials in compliance with the law.

The following are the various types, descriptions, and guidelines for usage of military equipment currently employed by the Gilroy Police Department. (NOTE: The manufacturer descriptions and source photos contained within are referenced via publicly accessible website source citations. The website source citations utilized in this report are for equipment descriptive purposes only and are not an endorsement of a particular product or vendor by The City of Gilroy or The Gilroy Police Department. Additionally, the language used by the manufacturer to describe such equipment use is included in this report as required by California Government Code section 7070(d)(1), however, the descriptions may not align with the actual methods of use in accordance with Gilroy Police Department Policy, as well as local, state, and federal law.)

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Unmanned Aircraft Systems (UAS)
Unmanned Aircraft Systems (UAS): An unmanned aircraft system of any type that can sustain direct flight, whether remotely controlled or via pre-programing, and all the attached systems designed for gathering information via photography, recording, or any other means.

Capability: The Gilroy Police Department uses Unmanned Aircraft Systems (UAS) of varying sizes and capabilities to enhance public safety. The UAS can be deployed when its view would assist officers or incident commanders with the following situations, which include but are not limited to major collision investigations, search for missing persons, natural disaster management, crime scene photography, SWAT, tactical or other public safety and lifepreservation missions, and in response to specific requests from local, state, or federal fire authorities for fire response and/or prevention. The UAS are used in compliance with all federal, state, and local laws.

Usage: It is the policy of the Gilroy Police Department to utilize UAS only for official law enforcement purposes, and in a manner that respects the privacy of our community, pursuant to state and federal law. Additionally, only assigned operators who have completed the required training shall be permitted to operate any UAS during approved missions.

Legal and Procedural Rules: The use of this equipment shall comply with the authorizations and prohibitions set forth in GPD Policy Manual Section 706 (Vehicle Use), FAA Regulation 14 CFR Part 107 Small Unmanned Aircraft Systems, and Penal Code section 13652, initiated by California Assembly Bill 48. More information about the rules for public safety agencies can be found on the FAA website at https://www.faa.gov/uas/public_safety_gov/. The use of UAS is governed by federal, state and local laws and regulations. The Federal Aviation Admiration (FAA) governs all aircraft rules and regulations, including those applicable to UAS, for flight within the US National Airspace.

Training Requirements: All department UAS operators are licensed by the Federal Aviation Administration for UAS operation and each UAS operator must attend regular department trainings.

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The Department currently possesses the following Unmanned Aircraft Systems:

Brinc Lemur 2
QUANTITY 1
LIFESPAN 3-5 years
INITIAL COST $24,000/unit
Manufacturer: Brinc
Manufacturer Description: The Brinc Lemur is a next-generation tactical drone engineered specifically for public safety operations, including law enforcement, search and rescue, and emergency response missions. Designed and manufactured in the United States, the LEMUR 2 integrates advanced hardware and software to enhance situational awareness, facilitate communication, and improve operational safety in high-risk environments. (Description Source: https://brincdrones.com/lemur-2/)
DJI Avata 2
QUANTITY 2
LIFESPAN 3-5 years
INITIAL COST $1,050/unit
Manufacturer: DJI
Manufacturer Description: The DJI Avata 2 is DJI's latest FPV (First-Person View) drone, designed to deliver an immersive and intuitive flying experience for both beginners and seasoned pilots. Paired with the new DJI Goggles 3 and RC Motion 3 controller, the Avata 2 offers enhanced imaging, safety features, and extended flight capabilities. (Description Source: https://www.dji.com/avata-2?utm_source=chatgpt.com)

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DJI Matrice 30T
QUANTITY 1
LIFESPAN 3-5 years
INITIAL COST $18,250/unit
Manufacturer: DJI
Manufacturer Description: The DJI Matrice 30T is a drone that is aimed at professionals and search and rescue teams. It has a 46-minute flight time, a thermal sensor, and a laser range finder. It also has a 48MP 1/2” CMOS zoom camera with 5x-16x optical zoom and 200x digital zoom. It can also be equipped with an optional thermal camera. (Description Source: https://enterprise.dji.com/matrice-30) DJI Mavic 2 Enterprise
QUANTITY 1
LIFESPAN 3-5 years
INITIAL COST $5,000/unit
Manufacturer: DJI
Manufacturer Description: Designed to empower a new generation of workers, the Mavic 2 Enterprise is the ultimate expression of a tool that delivers beyond expectation to meet current workplace challenges and future demands. The DJI Mavic 2 Enterprise Dual features visible & thermal imagery, integrated radiometric FLIR thermal sensor, adjustable parameters for emissivity & reflective surfaces, and multiple display modes (FLIR MSX, Infrared & Visibility).

This is a remotely operated battery-powered aircraft designed to be operated within sight of the operator or a spotter. Each aircraft is equipped with a camera capable of relaying a real-time image back to the operator.

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(Description source: https://www.dji.com/mavic-2-enterprise) DJI Mavic Mini 2
QUANTITY 4
LIFESPAN 3-5 years
INITIAL COST $500/unit
Manufacturer: DJI
Manufacturer Description: This is a remotely operated battery-powered aircraft designed to be operated within sight of the operator or a spotter. Each aircraft is equipped with a camera capable of relaying a real-time image back to the operator. (Description Source: https://www.dji.com/mini-2)

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Robots
Robots: A machine that operates on the ground and can be controlled remotely, as well as all the supporting or attached systems designed for gathering information through photographs, recordings, or other means.

Capability: Robots can protect against suspected and known explosive hazards. They are also used in tactical support of special operations and can gather visual/audio data, deliver a Hostage Negotiation Team phone, open doors, and clear buildings.

Usage: It is the policy of the Gilroy Police Department to utilize Robots only for official law enforcement purposes, and in a manner that respects the privacy of our community.

Additionally, only assigned operators who have completed the required training shall be permitted to operate any Robots.

Legal and Procedural Rules: The use of this equipment shall comply with the authorizations and prohibitions set forth in GPD Policy Manual Section 706 (Vehicle Use). It is the policy of the Gilroy Police Department to utilize a robot only for official law enforcement purposes pursuant to state and federal law, including the provisions of Penal Code section 13652, initiated by California Assembly Bill 48.

Training Requirements: Robot operators shall receive department training in the safe handling of the robots and show competence in the operation of the equipment.

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The Department currently possesses the following Robots:

Robotex Avatar Tactical Robot
QUANTITY 1
LIFESPAN 8-10 years
INITIAL COST $25,000/unit
Manufacturer: Robotex
Manufacturer Description: The AVATAR enhances the capabilities of SWAT and tactical response teams by allowing them to quickly and safely inspect dangerous situations, there is no longer a need to send personnel in before you’ve had a chance to assess the situation. The AVATAR Robots are regarded by tactical teams as a standard operational tool, like a firearm, vehicle, or piece of body armor.
(Description source: https://www.acornpd.com/robotex-avatar-tactical-robot) Transcend Vantage Patrol Robot
QUANTITY 1
LIFESPAN 8-10 years
INITIAL COST $25,000/unit
Manufacturer: Transcend
Manufacturer Description: Transcend’s Vantage robot is the first technological breakthrough in law enforcement robotics in the last 30 years. Its double patented automatic stair and obstacle mobility technology has given officers an unprecedented tool for successful mobile reconnaissance. It’s ability to deploy hot gas in a safe and fully contained enclosure has been a game changer for many situations, especially barricaded subjects. The Vantage can be used by anyone without prior training to climb stairs, overcome clothes and random obstacles. Its

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communication signals can penetrate a vast array of wall materials at distance and it’s designed to be affordable for years to come.
(Description source: https://www.transcendrobotics.com/vantage) Recon Robotics Throwbot 2
QUANTITY 1
LIFESPAN 8-10 years
INITIAL COST $8,500/unit
Manufacturer: Recon Robotics
Manufacturer Description: The Throwbot® 2 (TB2) robot is a throwable micro-robot platform that enables operators to obtain instantaneous video and audio reconnaissance within indoor or outdoor environments. Designed to withstand repeated drops of up to 30 feet (9 m) onto concrete, the Throwbot® 2 robot can be thrown into hazardous situations in order to allow operators to quickly make informed decisions when seconds count. This micro-robot is designed to be able to crawl over a variety of terrain, clearing obstacles up to 2″ (5 cm) tall. Conversion kits are available which can increase the ability of the Throwbot® 2 robot to cross obstacles up to 4″ (10 cm) tall or to carry and tow a combined 4 lbs (1.8 kg) of payloads using integrated mount points or a Picatinny Rail accessory. (Description source: https://reconrobotics.com/products/throwbot-2-robot/)

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Armored Vehicles
Armored Vehicle: Commercially-produced, wheeled, armored personnel vehicle utilized for law enforcement purposes.

Capability: Armored vehicles are utilized in response to critical incidents to enhance officer and community safety, improve scene contamination and stabilization, and assist in resolving critical incidents.

Usage: Armored vehicles shall only be authorized by a watch commander or SWAT commander based on the specific circumstances of a critical incident. Armored vehicles shall only be used by officers trained in their deployment and in a manner consistent with Department policy and training.

Legal Procedural Rules: The use of this equipment shall comply with the authorizations and prohibitions outlined in GPD Policy Manual Section 706 (Vehicle Use). The Gilroy Police Department utilizes armored vehicles only for official law enforcement purposes and pursuant to state and federal law.

Training Requirements: All drivers/operators shall attend formalized instruction and be trained in vehicle operations and practical driving instruction.

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The Department currently possesses the following Armored Vehicles:

Lenco BearCat G2
QUANTITY 1
LIFESPAN 25 years
INITIAL COST $360,500/unit
Manufacturer: Lenco
Manufacturer Description: The Lenco BearCat G2 is the standard tactical armored vehicle for special operations units within the US Law Enforcement community. The G2 has excellent on- road driving characteristics and maneuverability in tight urban settings. The large floor plan seats 10 – 12 fully equipped officers with a long list of tactical features only found on the Lenco BearCat line of armored SWAT vehicles for Police and Government. (Description Source: https://www.lencoarmor.com/model/bearcat-g2-police-government/)

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Mobile Command Vehicle (MCV)
Mobile Incident Command Vehicle: A completely self-contained command post designed to provide shelter, access to department computers, and restroom facilities for extended events.

This vehicle can also be used to facilitate mobile booking for incidents that may involve mass arrests, and other uses include pre-planned or significant events, which require on-site planning and incident command personnel.

Capability: As a mobile base of operation, this vehicle contains specialized command, control, and communications equipment which can be used during critical incidents, large events, natural disasters, and community events.

Usage: The MCV is to be utilized for planned or unplanned events. Only officers trained in the deployment and operations of the MCV, in a manner consistent with Department policy and training, are authorized to operate it.

Legal and Procedural Rules: The use of this equipment shall comply with the authorizations and prohibitions set forth in GPD Policy Manual Section 706 (Vehicle Use). It is the policy of the Gilroy Police Department to use the MCV only for official law enforcement purposes, and in accordance with California state law regarding the operation of motor vehicles.

Training Requirements: The driver/operator shall receive training in the safe handling of the vehicle on a closed training course. Once the operator has shown competence in vehicle handling, the driver/operator will drive the vehicle throughout the city with an experienced driver.

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The Department currently possesses the following Mobile Command Vehicles:

Mobile Command Vehicle (MCV)
QUANTITY 1
LIFESPAN 20 years (Chassis)
6 years (IT System)
INITIAL COST $699,186/unit
Manufacturer: Freightliner
Manufacturer Description: The MCV is a Freightliner MT-55 custom built by LDV Inc. It is a fully functioning Mobile Public Safety Answering Point (PSAP) and is a backup to our existing Dispatch Center. The MCV is a shared asset used by the Morgan Hill Police Department and the Gilroy Police Department during critical incidents, pre-planned large events, searching for missing persons, natural disasters, and community events. (Description Source: https://www.ldvusa.com/category/emergency-response-vehicles/ldvmobile-command-center/)

37 Annual Military Equipment Use Report 2024
Hostage Negotiation Team (HNT) Van
Hostage Negotiation Team Vehicle: A completely self-contained command post designed to provide shelter, access to Department computers, and a mobile office for extended events.

Capability: As a mobile base of operation, this vehicle contains specialized command and communications equipment which can be used during critical incident callouts where SWAT/HNT have been called.

Usage: The HNT van may be used by officers and staff who have been properly trained in the safe handling of the vehicle. The driver of the vehicle shall have a valid California driver’s license.

Legal and Procedural Rules: The use of this equipment shall comply with the authorizations and prohibitions set forth in GPD Policy Manual Section 706 (Vehicle Use) and shall be in accordance with California state law regarding the operation of motor vehicles.

Training Requirements: The driver/operator shall receive training in the safe handling of the vehicle on a closed training course. Once the operator has shown competence in vehicle handling, the driver/operator will drive the vehicle throughout the city with an experienced driver.

38 Annual Military Equipment Use Report 2024
The Department currently possesses the following Hostage Negotiation Team Van:

Hostage Negotiation Team (HNT) Van
QUANTITY 1
LIFESPAN 20 years
INITIAL COST No Cost/unit
Manufacturer: Kodiak
Manufacturer Description: The HNT Van was custom-built for the State of California in 1991 from a Kodiak Communication Van and transferred to GPD in 2013. (Description Source unavailable due to customization)

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40mm Launchers and Munitions
40mm Launchers: A single-shot or multi-shot impact weapon launcher capable of firing an array of 40mm rounds.

Capability: 40mm launchers can fire a variety of ammunition with a maximum effective range of one hundred thirty-one feet (131 feet).

Usage: The use of the 40mm may be deployed to limit the escalation of conflict where employment of lethal force is prohibited or undesirable. The range of the weapon system helps to maintain space between officers and a suspect and reduce the immediacy of the threat, which is the principle of de-escalation. This system has additional uses which include but are not limited to self-destructive, dangerous, and/or combative individuals, riot/crowd control and in civil unrest incidents, circumstances where a tactical advantage can be obtained, against potentially-vicious animals, and in training exercises or displayed during community events.

Legal and Procedural Rules: The use of this equipment shall comply with the authorizations and prohibitions set forth in GPD Policy Manual Section 308 (Use of Force). It is the policy of the Gilroy Police Department to utilize 40mm munitions only for official law enforcement purposes, and pursuant to state and federal law.

Training Requirements: Sworn members utilizing 40mm less lethal chemical agent or impact rounds are trained in their use by P.O.S.T.-certified less lethal and chemical agent instructors.

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The Department currently possesses the following 40mm launchers:

Defense Technology 40mm Single Shot Launcher #1425
QUANTITY 7
LIFESPAN 25 years
INITIAL COST $1,000/unit
Manufacturer: Defense Technology
Manufacturer Description: Manufactured exclusively for Defense Technology®, the 1425 40LMTS is a tactical single shot launcher that features the Rogers Super Stoc™ expandable gun stock and an adjustable Integrated Front Grip (IFG) with light rail. The ambidextrous Lateral Sling Mount (LSM) and QD mounting systems allow both a single- and two-point sling attachment. Users have the option of customizing the 40LMTS with an array of enhanced optics and sighting systems through the launcher’s Picatinny rail mounting system. The 40LMTS will fire standard 40mm less lethal ammunition, up to 4.8” in cartridge length, but it is NOT designed to fire 40mm high velocity HE ammunition.
(Description Source: https://www.defense-technology.com/wpcontent/uploads/2020/06/DT_40MM_Single_Launcher_Sell_Sheet.pdf) Defense Technology 40mm Tactical 4-Shot Launcher, #1440 QUANTITY 2
LIFESPAN 25 years
INITIAL COST $1,850/unit
Manufacturer: Defense Technology

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Manufacturer Description: The Defense Technology® #1440 is a Tactical 40mm 4-Shot Launcher that features an expandable ROGERS Super Stoc™ and an adjustable Picatinny mounted front grip. The Tactical 4-Shot will fire standard 40mm Less Lethal ammunition, up to

4.8 inches in cartridge length. Lightweight and tactical, this weapon is NOT designed to fire 40mm High Velocity HE ammunition. The Picatinny Rail Mounting System will accept a wide array of enhanced optics/sighting systems.
(Description Source: https://www.defense-technology.com/wp-content/uploads/2020/06/40mmTactical-4-Shot-Launcher.pdf)

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The Department currently possesses the following 40mm munitions:

Defense Technology 40mm Exact Impact Sponge Round #6325 QUANTITY 50
LIFESPAN 6 years
INITIAL COST $18/unit
Manufacturer: Defense Technology
Manufacturer Description: The Exact Impact 40mm Sponge Round is a point-of-aim, pointof- impact direct-fire round. This lightweight, high-speed projectile consisting of a plastic body and sponge nose that is spin stabilized via the incorporated rifling collar and the 40mm launcher’s rifled barrel. The round utilizes smokeless powder as the propellant, and, therefore have velocities that are extremely consistent.
(Description Source: https://www.defense-technology.com/product/exact-impact-40-mmstandard-range-sponge-round/)

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Less Lethal Shotgun and Munitions
Less Lethal Shotgun: The less lethal shotgun is a standard Mossberg Model 590, 12-gauge shotgun that has been outfitted with an orange-colored stock and foregrip to distinguish from lethal weapons.

Capability: The less lethal shotgun can fire a 12-gauge Super-Sock Beanbag Round with a maximum effective range of seventy-five (75) feet. The range of the weapon system helps to maintain space between officers and a suspect reducing the immediacy of the threat, which is a principle of de-escalation.

Usage: The use of the less lethal shotgun may be deployed to limit the escalation of conflict where employment of lethal force is prohibited or undesirable. The range of the weapon system helps to maintain space between officers and a suspect and reduce the immediacy of the threat, which is the principle of de-escalation. Situations for use of the less lethal weapon system may include, but are not limited to self-destructive, dangerous, and/or combative individuals, riot/crowd control and civil unrest incidents, circumstances where a tactical advantage can be obtained, potentially vicious animals, and training exercises or approved demonstrations.

Legal and Procedural Rules: The use of this equipment shall comply with the authorizations and prohibitions set forth in GPD Policy Manual Section 308 (Use of Force). It is the policy of the Gilroy Police Department to utilize the less lethal shotgun only for official law enforcement purposes, and pursuant to state and federal law.

Training Requirements: All GPD officers are required to complete department training on the Mossberg Model 590 less lethal shotgun system. GPD SWAT operators receive additional department training on the use of less lethal shotgun operations.

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The Department currently possesses the following Less Lethal Shotgun(s):

Mossberg Model 590, 12-gauge shotgun
QUANTITY 10
LIFESPAN 25 years
INITIAL COST $620/unit
Manufacturer: Mossberg
Manufacturer Description: The Mighty 590. With decades of military and law enforcement duty and countless performance and success stories under its belt, it’s no surprise that the 590 chosen for duty around the globe is also the ideal choice for home defense needs. With a range of customized stock and sight features right out of the box, and three gauge offerings, the ruggedly-built 590 lineup offers the variety of capacities, finishes, and configurations that will best fit your needs.
(Description source: https://www.mossberg.com/firearms/shotguns/590.html)

45 Annual Military Equipment Use Report 2024
The Department currently possesses the following Less Lethal Shotgun ammunition:

Combined Tactical Systems Super-Sock Bean Bag
QUANTITY 150

LIFESPAN N/A
INITIAL COST $7/unit
Manufacturer: Combined Tactical Systems, Inc.

Manufacturer Description: The Model 2581 Super-Sock is in its deployed state immediately upon exiting the barrel. It does not require a minimum range to “unfold” or “stabilize.” The Super-Sock is an aerodynamic projectile, and its accuracy is relative to the shotgun, barrel length, environmental conditions, and the operator. The Super-Sock is first in its class providing the point control accuracy and consistent energy to momentarily incapacitate violent, non- compliant subjects. Effective range is 75ft.
(Description source: https://www.combinedsystems.com/product/2581-12ga-super-sock-beanbag-priced-individually-per-cartridge-must-order-in-quantities-of-5/)

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Combined Tactical Systems LC5 Launching Cup
Combined Tactical Systems LC5 Launching Cup: A cup that attaches to the department’s less lethal shotguns, which allows officers to launch canisters of chemical agents or smoke.

Capability: The Combined Tactical Systems LC5 Launching Cup is capable of being attached to almost any 12-gauge shotgun, including GPD’s Mossberg 590 12-gauge less lethal shotguns, and firing all Combined Tactical Systems 5 series munitions.

Usage: The use of the Combined Tactical Systems LC5 Launching Cup may be deployed to limit the escalation of conflict where employment of lethal force is prohibited or undesirable.

The range of the weapon system helps to maintain space between officers and a suspect and reduce the immediacy of the threat, which is the principle of de-escalation. This system has additional uses which include but are not limited to self-destructive, dangerous, and/or combative individuals, riot/crowd control and civil unrest incidents, circumstances where a tactical advantage can be obtained, potentially vicious animals, and training exercises or approved demonstrations.

Legal and Procedural Rules: The use of this equipment shall comply with the authorizations and prohibitions set forth in GPD Policy Manual Section 308 (Use of Force). It is the policy of the Gilroy Police Department to utilize this equipment only for official law enforcement purposes, and pursuant to state and federal law.

Training Requirements: Officers utilizing the launching cups are trained by California P.O.S.T.- certified chemical agent instructors.

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The Department currently possesses the following Launching Cup(s):

Combined Tactical Systems LC5 Launching Cup
QUANTITY 2
LIFESPAN 25 years
INITIAL COST $275/unit
Manufacturer: Combined Tactical Systems, Inc.

Manufacturer Description: The LC5 Launching Cups are designed for the 5200 series grenades. The cups can be attached to virtually any 12ga shotgun, and the munition launched with our model 2600 launching cartridge. These can be fired from most 12ga smooth bore shotguns.
(Description Source: https://www.combinedsystems.com/product/lc5-and-lc6-launching-cups/)

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Diversionary Devices
Diversionary Devices: Canisters that emit a loud noise and bright light that is used to distract dangerous persons.

Capability: A Diversionary device is ideal for distracting dangerous suspects during assaults, hostage rescue, room entry or other high-risk arrest situations. To produce atmospheric overpressure and brilliant white light and, as a result, a diversionary device can cause short-term (6 - 8 seconds) physiological/psychological sensory deprivation to give officers a tactical advantage.

Usage: Diversionary devices are used during training and tactical events when a diversion or distraction are believed to be an effective tool to bring an event to a safe resolution.

Diversionary devices shall only be used by officers who have been trained in their proper use, in hostage and barricaded subject situations, in high-risk (search/arrest) warrant services where there may be extreme hazards to officers, during other high-risk situations where their use would enhance officer safety, and during training exercises.

Legal and Procedural Rules: The use of this equipment shall comply with the authorizations and prohibitions set forth in GPD Policy Manual Section 308 (Use of Force). It is the policy of the Gilroy Police Department to utilize diversion devices only for official law enforcement purposes, and pursuant to state and federal law.

Training Requirements: Prior to using this equipment, officers must attend diversionary device training that is conducted by California POST certified instructors.

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The Department currently possesses the following Diversionary Devices:

Combined Tactical Systems, 7290-2 Flash-Bang
QUANTITY 2

LIFESPAN N/A
INITIAL COST $52/unit
Manufacturer: Combined Tactical Systems, Inc.

Manufacturer Description: This is a non-bursting, non-fragmenting multi-bang device that produces a thunderous bang with an intense bright light. Ideal for distracting dangerous suspects during assaults, hostage rescue, room entry or other high risk arrest situations. (Description Source: https://www.combinedsystems.com/product/7290-2-flash-bang-aluminumbody-low-roll-doublebang-priced-individually-must-order-in-quantities-of12/#:~:text=7290%2D2%20%E2%80%93%20This%20is%20a,other%20high%20risk%20arres t%20situations.)
Combined Tactical Systems, 7290M Mini Flash-Bang
QUANTITY 30

LIFESPAN N/A
INITIAL COST $42/unit
Manufacture: Combined Tactical Systems, Inc.

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Manufacture Description: The CTS 7290M Mini Flash-Bang is the newest generation in the evolution of the Flash-Bang. Our Model 7290M Flash-Bang exhibits all the same attributes of its larger counterpart but in a smaller and lighter package. Weighing in at just 15 ounces the new 7290M is approximately 30% lighter than the 7290 but still has the same 180db output of the 7290 and produces 6-8 million candela of light. The patented design of the 7290M, incorporates a porting system that eliminates movement of the body at detonation even if the top or bottom of the device should be in contact with a hard surface. In addition, internal adjustments have greatly reduced smoke output.
(Description Source: https://www.combinedsystems.com/product/7290m-mini-bang-steel-bodypriced-individually-must-order-in-quantities-of-12/)

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Rifles and Munitions
Rifles: The rifle is a gun that is fired from shoulder level, having a longer, grooved barrel intended to make bullets spin and thereby have greater accuracy over a long distance.

Capability: The rifle provides officers the ability to engage hostile suspects at distances generally greater than the effective distance of their handguns. Additionally, rifles offer advantages over handguns, such as increased accuracy potential and the ability to defeat soft body armor. However, rifles are not appropriate for every situation.

Usage: To be used as precision weapons to address a threat with more precision and/or greater distances than a handgun, if present and feasible.

Legal and Procedural Rules: The use of this equipment shall comply with the authorizations and prohibitions set forth in GPD Policy Manual Section 308 (Use of Force). It is the policy of the Gilroy Police Department to utilize rifles only for official law enforcement purposes, and pursuant to state and federal law regarding the use of force.

Training Requirements: Prior to using a rifle, officers must be certified by POST instructors in the operation of the rifle. Additionally, all members that operate any rifle are required to pass a range qualification annually.

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The Department currently possesses the following rifles:

Colt M4 Commando
QUANTITY 11
LIFESPAN 10 years
INITIAL COST $1,222/unit
Manufacturer: Colt
Manufacturer Description: A rifle that fires an intermediate-power cartridge (5.56mm) which is more powerful than a standard pistol but less powerful than a standard rifle. It is a shortbarreled rifle (10.5”) which allows a trained officer better control inside of structures with greater accuracy than a handgun.
(Description Source: https://www.colt.com/)
Colt M4 Carbine
QUANTITY 5
LIFESPAN 10 years
INITIAL COST $1,062/unit
Manufacturer: Colt
Manufacturer Description: A rifle that fires an intermediate-power cartridge (5.56mm) which is more powerful than a standard pistol but less powerful than a standard rifle. It is a shortbarreled rifle (14.5”) which allows a trained officer better control inside of structures with greater accuracy than a handgun.

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(Description Source: https://www.colt.com/)
Remington 700
QUANTITY 5
LIFESPAN 10 years
INITIAL COST $2,160/unit
Manufacturer: Remington
Manufacturer Description: A bolt-action rifle with precision optics that fires a .308 Winchester cartridge. The .308 rifle allows SWAT Snipers to accurately engage hostile suspects at great distances. The .308 rifles are used exclusively by officers assigned to the SWAT Sniper Team.

These rifles are typically deployed with the SWAT Sniper Team during high-risk SWAT operations and special events or instances wherein Sniper Over Watch Teams are needed. (Description Source: https://www.remarms.com/rifles/bolt-action/model-700/) Colt M16A1
QUANTITY 16
LIFESPAN 10 years
INITIAL COST No Cost/unit
Manufacturer: Colt
Manufacturer Description: The M16A1 rifle is a lightweight, air cooled, gas operated magazine fed, and shoulder fired weapon that can be fired in semi-automatic.

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(Description Source: https://www.colt.com/detail-page/col-crm16a1-556-20-30rd) Springfield M14
QUANTITY 1
LIFESPAN 10 years
INITIAL COST No Cost/unit
Manufacturer: Springfield
Manufacturer Description: The M14 served with distinction as the standard issued rifle of the United States military after the revered M1 Garand. The windage and elevation adjustable rear sight makes zeroing the rifle a pleasure, while the two-stage military trigger, detachable box magazine, op-rod, and roller cam bolt provide functional ease of operation and faithful reliability.
(Description Source: https://www.springfield-armory.com/m1a-series-rifles/m1a-standardissue-rifles)

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Chemical Agent and Smoke Canisters
Chemical Agent and Smoke Canisters: Canisters that contain chemical agents that are released when deployed
Capability: Chemical agent and smoke canisters have a vast variety of individual capabilities and applications. Chemical agent and smoke canisters carry the agent into the environment in a variety of methods, including but not limited to a micro-pulverized solid (powder), a liquid mist (fogger), a liquid or foam stream, burning pellets (smoke), pyrotechnic devices, and vapor aerosols. Exposure to chemical agents normally causes no lasting effects. This equipment has various indoor and outdoor capabilities and uses. Chemical agents shall be used with caution and only by trained personnel.

Usage: Chemical agent and smoke canisters are used to limit the escalation of conflict where employment of lethal force is prohibited or undesirable. Situations for use of the less lethal weapon systems may include, but are not limited to, self-destructive individuals, dangerous and/or combative individuals, riot/crowd control and civil unrest incidents, circumstances where a tactical advantage can be obtained, potentially vicious animals, and in training exercises or displayed during community events.

Legal and Procedural Rules: The use of this equipment shall comply with the authorizations and prohibitions set forth in GPD Policy Manual Section 308 (Use of Force). It is the policy of the Gilroy Police Department to utilize chemical agents only for official law enforcement purposes, in accordance with the department’s Use of Force Policy, and pursuant to state and federal law.

Training Requirements: GPD Officers utilizing chemical agent and smoke canisters are certified by California POST less lethal and chemical agent instructors.

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The Department currently possesses the following chemical agent and smoke canisters:

Defense Technology, Maximum HC Smoke Large Canister, #1073 QUANTITY 2
LIFESPAN 5 years
INITIAL COST $38/unit
Manufacturer: Safariland, LLC / Defense Technology
Manufacturer Description: The Maximum Smoke Grenade is designed specifically for outdoor use in crowd control situations with a high volume continuous burn that expels its payload in approximately 1.5 – 2 minutes through four gas ports located on the top of the canister. This grenade can be used to conceal tactical movement or to route a crowd. The volume of smoke and agent is vast and obtrusive. This launchable grenade is 6.0 in. by 2.6 in. and holds approximately 2.9 oz. of active agent.
(Description Source: https://www.defense-technology.com/product/maximum-smoke-hc-largestyle-canister/) Combined Tactical Systems, White Smoke Canister Grenade, #8210 QUANTITY 6
LIFESPAN 5 years
INITIAL COST $24/unit
Manufacturer: Combined Tactical Systems

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Manufacturer Description: Small diameter pyrotechnic irritant smoke grenade for outdoor use to disperse crowds. Emits smoke for up to 30 seconds and is small enough to carry in a pocket. Can be hand thrown or launched.
(Description Source: https://www.combinedsystems.com/product/8210-white-smoke-tacticalcanister-grenade/) Combined Tactical Systems, Riot CS Smoke Grenade, #8230 QUANTITY 30
LIFESPAN 5 years
INITIAL COST $32/unit
Manufacturer: Combined Tactical Systems
Manufacturer Description: The smallest diameter burning grenade that discharges a high volume of smoke and chemical agent through multiple emission ports. Specifically for outdoor use and it should not be deployed on rooftops, in crawl spaces or indoors due to fire producing capability. Can be hand thrown or launched.
(Description Source: https://www.combinedsystems.com/product/8230-outdoor-tacticalgrenade-cs/) Combined Tactical Systems, Riot CS Smoke Grenade, #6230 QUANTITY 7
LIFESPAN 5 years
INITIAL COST $40/unit

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Manufacturer: Combined Tactical Systems
Manufacturer Description: Pyrotechnic canister grenade emitting smoke through multiple emission ports for 30 to 40 seconds. May be launched or hand thrown. (Description Source: https://www.combinedsystems.com/product/6230-cs-canister-grenade/) Combined Tactical Systems, Baffled Riot CS Smoke Grenade, #5230B QUANTITY 30
LIFESPAN 5 years
INITIAL COST $40/unit
Manufacturer: Combined Tactical Systems
Manufacturer Description: Pyrotechnic grenade designed for indoor use delivering a maximum amount of irritant smoke throughout multiple rooms with minimal risk of fire. (Description Source: https://www.combinedsystems.com/product/5230b-cs-baffled-canistergrenade-pyro-low-flame-potential-2/) Penn Arms, 37mm Single Shot Launcher, #SL1-37
QUANTITY 6
LIFESPAN 25 years
INITIAL COST $1575/unit
Manufacturer: Penn Arms

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Manufacturer Description: A single shot break open frame launcher with smooth bore barrel.

Features include: double-action trigger, trigger lock push button and hammer lock safeties, 47mm 1:47 twist rifled 12 inch barrel, combination weaver rail with ghost ring and bead sight, overall length of 29 inches (742.95mm) with fixed stock, unloaded wight 5.906 lbs (2.67 kg), utilizes 37mm munitions.
(Description Source: https://www.combinedsystems.com/product/l137-1-single-launcher-fixedstock-w-iron-sights-l1-37/) Sage Control Ordinance, 37mm Rifled Barricade Penetrating, #BP5OC QUANTITY 0
LIFESPAN 5 years
INITIAL COST $20/unit
Manufacturer: Sage Control Ordinance
Manufacturer Description: The BP5 is a non-pyrotechnic barricade penetrating munition capable of delivering micro-pulverized chemical agents through barricades from a rifled 37mm launcher. The BP5 achieves superior accuracy and penetration through a combination of barrel rifling and projectile design. The projectile is made of frangible plastic and is filled with a micro-pulverized powdered chemical agent. The BP5 is designed to penetrate windows, doors, and other barriers. The micro-pulverized powder payload is released upon impact. (Description Source: http://www.sageinternationalltd.com/SCOI/ammunition.html) Sage Control Ordinance, 37mm Rifled Barricade Penetrating, #BP5CS QUANTITY 0
LIFESPAN 5 years
INITIAL COST $20/unit

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Manufacturer: Sage Control Ordinance
Manufacturer Description: The BP5 is a non-pyrotechnic barricade penetrating munition capable of delivering micro-pulverized chemical agents through barricades from a rifled 37mm launcher. The BP5 achieves superior accuracy and penetration through a combination of barrel rifling and projectile design. The projectile is made of frangible plastic and is filled with a micro-pulverized powdered chemical agent. The BP5 is designed to penetrate windows, doors, and other barriers. The micro-pulverized powder payload is released upon impact. (Description Source: http://www.sageinternationalltd.com/SCOI/ammunition.html) Sage Control Ordinance, 37mm Impact/Chemical, #K03OC
QUANTITY 0
LIFESPAN 5 years
INITIAL COST $20/unit
Manufacturer: Sage Control Ordinance
Manufacturer Description: The K03 is a direct-fire crush nose chemical impact baton round that is designed to be used in situations where a combination of kinetic energy and chemical agents is preferred for the incapacitation of hostile and/or non-compliant individuals. Upon impact, the K03 projectile imparts blunt trauma and additionally releases a micro-pulverized CS or OC powder payload as the baton nose is crushed.
(Description Source: http://www.sageinternationalltd.com/SCOI/ammunition.html)

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PepperBall Launchers and Projectiles
PepperBall Launcher: A device that discharges PAVA powder projectiles.

Capability: A PepperBall Launcher can quickly and accurately deploy small, non-lethal projectiles (“Pepper Balls”) from an effective distance of 150 feet, that produce a chemical that can rapidly produce sensory irritation or disabling physical effects in humans, which disappear within a short time following termination of exposure.

Usage: PepperBall equipment is used to limit the escalation of conflict where employment of lethal force is prohibited or undesirable. Situations for use of the less lethal weapon systems may include but, are not limited to self-destructive individuals, dangerous and/or combative individuals, riot/crowd control and civil unrest incidents, circumstances where a tactical advantage can be obtained, potentially vicious animals, and in training exercises or displayed during community events.

Legal and Procedural Rules: The use of this equipment shall comply with the authorizations and prohibitions set forth in GPD Policy Manual Section 308 (Use of Force). It is the policy of the GPD to utilize PepperBall Launchers only for official law enforcement purposes, and pursuant to state and federal law.

Training Requirements: GPD officers utilizing PepperBall launchers and projectiles are trained in their use by California POST certified less lethal and chemical agent instructors.

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The Department currently possesses the following PepperBall equipment:

PepperBall FTC Launcher
QUANTITY 6
LIFESPAN 20 years
INITIAL COST $499/unit
Manufacturer: PepperBall
Manufacturer Description: Compact and lightweight, the PepperBall FTC is the industry gold standard for crowd-control and other applications where accuracy and reliability is a factor. The FTC features a modular design with a rapid feeding loader and firing rate of 10-12 RPS. (Description Source: https://store-c19drjba2a.mybigcommerce.com/content/PEP-21006-FTCSpecs.pdfhttps://shop.pepperball.com/products/pepperball-vks%E2%84%A2- carbine) PepperBall Live Projectile
QUANTITY 1000
LIFESPAN 3 years
INITIAL COST $2/unit
Manufacturer: PepperBall
Manufacturer Description: The live PepperBall® round contains 2.0% PAVA. It is effective for direct impact and area saturation when there is no line of sight. PAVA is based on one of the hottest of the six capsaicinoids found in pepper plants. PepperBall products contain only

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safe, pure, non-oil based PAVA and are non-flammable. Ingredient consistency ensures each projectile operates with quality and effectiveness.
(Description Source: https://pepperball.com/projectiles/pepperball-live/) PepperBall Live Projectile
QUANTITY 1000
LIFESPAN 3 years
INITIAL COST $0.80/unit
Manufacturer: PepperBall
Manufacturer Description: The inert PepperBall® round contains harmless, scented powder.

This projectile is best suited for training, qualifications, and direct impact when chemical exposure is not desired.
(Description Source: https://pepperball.com/projectiles/pepperball-inert/)

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Conclusion
The acquisition and use of military equipment in our communities may impact the public’s safety and welfare. The public has a right to know about any funding, acquisition, or use of military equipment by local government officials, as well as a right to participate in the local government’s decision to fund, acquire, or use such equipment. When making decisions regarding how military equipment is funded, acquired, or used, the Gilroy Police Department gives strong consideration to the public’s welfare, safety, civil rights, and civil liberties.

In a continued effort for greater transparency, the Gilroy Police Department places high regard to meaningful public input in the use of military equipment in our community, in an effort to increase the safety of the public. Any member of the public can submit a question or concern regarding military equipment use by contacting the Gilroy Police Department’s Administrative Division via email at [email protected]. The Department will strive to provide a timely response to the community’s questions and concerns regarding the use of military equipment.

Any member of the public can submit a complaint to any member of the Department and in any form (i.e., in person, telephone, email, etc.). Once the complaint is received, it should be routed to the Administrative Division.

City of Gilroy

STAFF REPORT
Agenda Item Title: Acceptance of Cash and Investment Report as of March 31, 2025
Meeting Date: May 19, 2025
From: Jimmy Forbis, City Administrator
Department: Finance
Submitted by: Harjot Sangha, Finance Director
Prepared by: Rosemary Guerrero, Finance Manager
STRATEGIC PLAN GOALS: Develop a Financially Resilient Organization

RECOMMENDATION
Accept and file the cash and investment report as of March 31, 2025.

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, 2025, the City’s cash and investments totaled $189.5 million, of which primary investments include: $52.4 million in the Local Agency Investment Fund (LAIF), $108.6 million in US Treasury securities, and $27.3 million in the California CLASS PRIME Fund. The fiscal year interest earnings are $6.4 million, which includes accrued interest as well as amortization of the discount on the US Treasury securities.

The effective rate of return is 4.5%.

In addition, approximately $14.5 million is held by Fiscal Agents in the Trustee capacity for various bond issues such as bond proceeds, debt service reserves, bond payments, and other post-employment benefits (OPEB) and pensions. The majority of this balance ($8.9 million) consists of the City of Gilroy’s share of the Acquisition and Construction Funds for the SCRWA Plant Expansion Project, and the remaining portion primarily

consists of the Section 115 Trusts for OPEB and pension ($5.4 million).

ALTERNATIVES
None.

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:

1. Investment Report 3-31-2025- Signed

City of Gilroy
Investment Report
march 2025

TABLE OF CONTENTS

1. PORTFOLIO SUMMARY REPORT.......................................................................................... 1 - 3

2. INVESTMENTS BY ISSUER REPORT................................................................................... 4 - 5 3 INVESTMENT ACTIVITY…………………………………………………………………………….. 6 - 7

4. QUARTERLY MOVEMENT OVER THE LAST TWELVE MONTHS........................................ 8

5. MOVEMENT OVER THE LAST TWO YEARS - GRAPHICAL PRESENTATION.................... 9

6. INVESTMENT PORTFOLIO - GRAPHICAL PRESENTATION................................................ 10 - 11

7. INTEREST EARNINGS: FISCAL YEARS 2015 - 2025............................................................ 12

8. MONIES HELD BY FISCAL AGENTS REPORT………….……............................................... 13

City of Gilroy
Portfolio Management
March 31, 2025
City of Gilroy
7351 Rosanna Street
Gilroy, CA 95020
(408)846-0294
Portfolio Summary
% of
Portfolio
Book
Value Investments
Market
Value
Par
Value
Days to
Term Maturity
YTM
360 Equiv.

YTM
365 Equiv.

LAIF 52,367,619.00 52,367,619.00 52,367,619.00 27.82 1 1 4.241 4.300 Treasury Notes Securities 110,060,500.00 108,725,516.69 108,566,844.50 57.68 527 260 4.573 4.636 Other Banks-Misc.Account-Petty Cash 27,285,683.61 27,285,683.61 27,285,683.61 14.50 1 1 4.351 4.412 188,220,147.11 100.00%
Investments
189,713,802.61 188,378,819.30 305 150 4.448 4.510
Cash
(not included in yield calculations)
Passbook/Checking 1,258,021.97 1,258,021.97 1,258,021.97 1 1 0.000 0.000 189,478,169.08 Total Cash and Investments 190,971,824.58 189,636,841.27 305 150 4.448 4.510 Current Year
March 31
730,501.50
Fiscal Year To Date
6,373,307.26
Average Daily Balance
Effective Rate of Return
191,935,543.68 187,843,692.52

4.48% 4.52%
Total Earnings Month Ending
6 Month T-Bill Benchmark: 4.08%
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 Portfolio = 5.00 months.

3. The unrealized gain resulting from an increase in Market Values obtained from U.S. Bank of all Securities (excluding LAIF) = $158,672

4. The LAIF balance shown includes $5,738,756 in bond proceeds from the Gilroy Library 2010 Bonds that can be used exclusively for the construction of the library.

This is to certify 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.
__________________________________________________ ____________________ Harjot Sangha, Finance Director
Reporting period 07/01/2024-03/31/2025

05/02/2025

YTM
Par Value Book Value 365
Maturity
Date
Stated
Market Value Rate
March 31, 2025
Portfolio Details - Investments
Average
Balance Issuer
Portfolio Management
City of Gilroy
Days to
Maturity
YTM
CUSIP Investment # 360
Purchase
Date
LAIF
SYSLAIF01 LAIF01 LAIF - City of Gilroy 37,894,654.82 37,894,654.82 37,894,654.82 4.400 4.340 4.400 1 SYSLAIF03 LAIF03 LAIF - Industrial Dev. Auth. 8,734,208.55 8,734,208.55 8,734,208.55 4.400 4.340 4.400 1 LAIF05 LAIF05 LAIF LIBRARY 5,738,755.63 5,738,755.63 5,738,755.63 4.400 4.340 4.400 1 Subtotal and Average 52,061,167.39 52,367,619.00 52,367,619.00 52,367,619.00 4.340 4.400 1 Treasury Notes Securities
91282CGX3 USB-11 07/31/2023 8,186,000.00 8,182,398.16 8,179,368.57 3.875 4.881 4.949 29 04/30/2025 91282CAB7 USB-14 11/07/2023 8,915,000.00 8,795,449.85 8,781,097.09 0.250 4.970 5.039 121 07/31/2025 9128284M9 USB-17 11/07/2023 646,000.00 645,237.72 644,898.38 2.875 5.059 5.129 29 04/30/2025 91282CJE2 USB-20 01/31/2024 9,294,000.00 9,336,380.64 9,323,214.14 5.000 4.368 4.429 213 10/31/2025 91282CHN4 USB-21 04/30/2024 9,905,300.00 9,919,266.47 9,893,416.21 4.750 5.052 5.122 121 07/31/2025 912828ZL7 USB-22 04/30/2024 10,747,600.00 10,713,852.54 10,708,446.54 0.375 5.067 5.138 29 04/30/2025 91282CAB7 USB-23 07/31/2024 868,700.00 857,050.73 856,092.57 0.250 4.720 4.786 121 07/31/2025 91282CAT8 USB-24 07/31/2024 10,461,900.00 10,227,134.96 10,203,101.98 0.250 4.606 4.670 213 10/31/2025 91282CBH3 USB-25 07/31/2024 10,092,000.00 9,785,001.36 9,755,362.73 0.375 4.499 4.562 305 01/31/2026 91282CJV4 USB-26 10/31/2024 9,694,000.00 9,704,081.76 9,694,758.18 4.250 4.178 4.236 305 01/31/2026 91282CBW0 USB-27 01/31/2025 20,000,000.00 19,308,200.00 19,277,088.11 0.750 4.158 4.216 394 04/30/2026

4.420
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
3130B4XH9 USB-28 FEDERAL HOME LOAN 02/04/2025 11,250,000.00 11,251,462.50 11,250,000.00 4.420 4.359 674 02/04/2027 Subtotal and Average 108,462,748.66 110,060,500.00 108,725,516.69 108,566,844.50 4.573 4.636 260 Other Banks-Misc.Account-Petty Cash
CLASS PRIME CLASS California Class 27,285,683.61 27,285,683.61 27,285,683.61 4.412 4.351 4.412 1 Subtotal and Average 28,067,935.59 27,285,683.61 27,285,683.61 27,285,683.61 4.351 4.412 1 Total and Average 191,906,109.51 189,713,802.61 188,378,819.30 188,220,147.11 4.476 4.538 150

YTM
Par Value Book Value 365
Stated
Market Value Rate
March 31, 2025
Portfolio Details - Cash
Average
Balance Issuer
Portfolio Management
City of Gilroy
Days to
Maturity
YTM
CUSIP Investment # 360
Purchase
Date
Wells Fargo Checking
SYSWFB WELLS FARGO WELLS FARGO 1,014,373.96 1,014,373.96 1,014,373.96 0.000 0.000 1 Other Banks-Misc.Account-Petty Cash
SYSUNDERCOV UNDERCOV CHASE BANK 07/01/2024 698.30 698.30 698.30 0.000 0.000 1 SYS/MUFG MUFG MUFG / UNION BANK 07/01/2024 0.00 0.00 0.00 0.000 0.000 1 SYSPETTY PETTY PETTY CASH 07/01/2024 2,661.56 2,661.56 2,661.56 0.000 0.000 1 SYS/USBANK USB-CASH U. S. BANK 07/01/2024 21,347.16 21,347.16 21,347.16 0.000 0.000 1 SYSBAIL BAIL WELLS FARGO 07/01/2024 0.00 0.00 0.00 0.000 0.000 1 SYSDISCOVERY DISCOVERY WELLS FARGO 07/01/2024 131,208.54 131,208.54 131,208.54 0.000 0.000 1 SYSICS ICS WELLS FARGO 07/01/2024 86,137.45 86,137.45 86,137.45 0.000 0.000 1 SYSWORKING WORKING WORKING CASH 07/01/2024 1,595.00 1,595.00 1,595.00 0.000 0.000 1

0.00 191,935,543.68 190,971,824.58 4.448 4.510 150
Average Balance 1
Total Cash and Investments 189,636,841.27 189,478,169.08

City of Gilroy
Investments by Issuer
City of Gilroy
7351 Rosanna Street
Gilroy, CA 95020
(408)846-0294
Grouped by Type - Sorted by Issuer
Active Investments
March 31, 2025
Market
Market Value Date
Redemption
Security Type Date
Current
Rate
Call
CUSIP Investment # Date Collateral
Investment
Class
YTM
365 Book Value
Type: CHECKING ACCOUNTS

CHASE BANK
SYSUNDERCOV UNDERCOV Other Banks-Misc.Account-Petty Cash Fair 698.30 698.30 03/31/2025 1 Subtotal and Average 698.30 698.30 1
California Class
CLASS PRIME CLASS Other Banks-Misc.Account-Petty Cash Fair 27,285,683.61 4.412 27,285,683.61 03/31/2025 4.412 1 Subtotal and Average 27,285,683.61 27,285,683.61 4.412 1 LAIF - City of Gilroy
SYSLAIF01 LAIF01 LAIF Fair 37,894,654.82 4.300 37,894,654.82 03/31/2025 4.300 1 Subtotal and Average 37,894,654.82 37,894,654.82 4.300 1 LAIF - Industrial Dev. Auth.

SYSLAIF03 LAIF03 LAIF Fair 8,734,208.55 4.300 8,734,208.55 03/31/2025 4.300 1 Subtotal and Average 8,734,208.55 8,734,208.55 4.300 1

LAIF LIBRARY
LAIF05 LAIF05 LAIF Fair 5,738,755.63 4.300 5,738,755.63 03/31/2025 4.300 1 Subtotal and Average 5,738,755.63 5,738,755.63 4.300 1

MUFG / UNION BANK
SYS/MUFG MUFG Other Banks-Misc.Account-Petty Cash Fair 0.00 0.00 1 Subtotal and Average 0.00 0.00

PETTY CASH
SYSPETTY PETTY Other Banks-Misc.Account-Petty Cash Fair 2,661.56 2,661.56 03/31/2025 1 Subtotal and Average 2,661.56 2,661.56 1
U. S. BANK
SYS/USBANK USB-CASH Other Banks-Misc.Account-Petty Cash Fair 21,347.16 21,347.16 03/31/2025 1

Market
Market Value Date
Redemption
Security Type Date
Current
Rate
Call
Date Collateral
Grouped by Type - Sorted by Issuer
Investments by Issuer
City of Gilroy
CUSIP Investment #
Investment
Class
YTM
365 Book Value
Subtotal and Average 21,347.16 21,347.16 1

WELLS FARGO
SYSWFB WELLS FARGO Wells Fargo Checking Fair 1,014,373.96 1,014,373.96 03/31/2025 1 SYSBAIL BAIL Other Banks-Misc.Account-Petty Cash Fair 0.00 0.00 1 SYSDISCOVERY DISCOVERY Other Banks-Misc.Account-Petty Cash Fair 131,208.54 131,208.54 03/31/2025 1 SYSICS ICS Other Banks-Misc.Account-Petty Cash Fair 86,137.45 86,137.45 03/31/2025 1 Subtotal and Average 1,231,719.95 1,231,719.95 1

WORKING CASH
SYSWORKING WORKING Other Banks-Misc.Account-Petty Cash Fair 1,595.00 1,595.00 03/31/2025 1 Subtotal and Average 1,595.00 1,595.00 1
Type: NOT CALLABLE
U. S. TREASURY NOTES
91282CGX3 USB-11 Fair 8,179,368.57 3.875 8,182,398.16 03/31/2025 4.949 04/30/2025 29 91282CAB7 USB-14 Fair 8,781,097.09 0.250 8,795,449.85 03/31/2025 5.039 07/31/2025 121 9128284M9 USB-17 Fair 644,898.38 2.875 645,237.72 03/31/2025 5.129 04/30/2025 29 91282CJE2 USB-20 Fair 9,323,214.14 5.000 9,336,380.64 03/31/2025 4.429 10/31/2025 213 91282CHN4 USB-21 Fair 9,893,416.21 4.750 9,919,266.47 03/31/2025 5.122 07/31/2025 121 912828ZL7 USB-22 Fair 10,708,446.54 0.375 10,713,852.54 03/31/2025 5.138 04/30/2025 29 91282CAB7 USB-23 Fair 856,092.57 0.250 857,050.73 03/31/2025 4.786 07/31/2025 121 91282CAT8 USB-24 Fair 10,203,101.98 0.250 10,227,134.96 03/31/2025 4.670 10/31/2025 213 91282CBH3 USB-25 Fair 9,755,362.73 0.375 9,785,001.36 03/31/2025 4.562 01/31/2026 305 91282CJV4 USB-26 Fair 9,694,758.18 4.250 9,704,081.76 03/31/2025 4.236 01/31/2026 305 91282CBW0 USB-27 Fair 19,277,088.11 0.750 19,308,200.00 03/31/2025 4.216 04/30/2026 394 3130B4XH9 USB-28 4.420 11,251,462.50 674
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
Federal Home Loan Fair 11,250,000.00 03/31/2025 4.420 02/04/2027 Subtotal and Average 108,566,844.50 108,725,516.69 4.636 259 Total and Average 189,478,169.08 189,636,841.27 4.480 149

City of Gilroy
7351 Rosanna Street
Gilroy, CA 95020
(408)846-0294
City of Gilroy
Purchases Report
Sorted by Type - Type
January 1, 2025 - March 31, 2025
Original
Par Value
Ending
Book Value
Sec.

Type Type
Maturity
YTM
Accrued Interest
CUSIP Investment # Issuer Payment Periods at Purchase Date Purchase
Date
Principal
Purchased
Rate at
Purchase

NOT CALLABLE
91282CBW0 USB-27 NOT TRC USTN 20,000,000.00 01/31/2025 04/30 - 10/31 19,167,000.00 38,121.55 0.750 04/30/2026 4.216 19,277,088.11 3130B4XH9 USB-28 NOT TRC FHLB 11,250,000.00 02/04/2025 08/04 - 02/04 11,250,000.00 4.420 02/04/2027 4.420 11,250,000.00 Subtotal 31,250,000.00 30,417,000.00 38,121.55 30,527,088.11 Total Purchases 31,250,000.00 30,417,000.00 38,121.55 30,527,088.11

City of Gilroy
7351 Rosanna Street
Gilroy, CA 95020
(408)846-0294
City of Gilroy
Maturity Report
Sorted by Maturity Date
Amounts due during January 1, 2025 - March 31, 2025
Rate
Par Value at Maturity
Sec.

Type Type
Maturity
Date
Maturity
Interest Proceeds Income
Net
CUSIP Investment # Issuer
Purchase
Date
Book Value
at Maturity
912797JR9 USB-19 NOT ATD USTB 11,000,000.00 01/23/2025 01/25/2024 4.501 11,000,000.00 500,610.00 11,000,000.00 0.00 912828Z52 USB-10 NOT TRC USTN 8,419,000.00 01/31/2025 05/01/2023 1.375 8,419,000.00 57,880.63 8,476,880.63 57,880.63 9128283V0 USB-15 NOT TRC USTN 506,000.00 01/31/2025 11/07/2023 2.500 506,000.00 6,325.00 512,325.00 6,325.00 Total Maturities 19,925,000.00 19,925,000.00 564,815.63 19,989,205.63 64,205.63

DESCRIPTION JUN SEP Dec Mar % of Total
2024 2024 2024 2025 Dec
LAIF:

CITY OF GILROY 42,981,586 29,247,773 42,446,881 37,894,655 20.13% GILROY INDUSTRIAL DEV AGENCY 8,340,144 8,532,782 8,633,796 8,734,209 4.64% GILROY LIBRARY 2010 BOND 5,543,745 5,606,295 5,672,780 5,738,756 3.05% SUB TOTAL 56,865,475 43,386,850 56,753,457 52,367,619 27.82% CALIFORNIA CLASS 27,751,932 26,626,920 26,991,063 27,285,684 14.50% US GOVERNMENTAL AGENCIES:

TREASURY NOTES SECURITIES 82,669,517 83,773,381 86,486,293 108,566,845 57.68% TREASURY BILL-AMORTIZING 22,757,163 23,040,185 10,969,743 - 0.00% SUB TOTAL 105,426,680 106,813,566 97,456,037 108,566,845 57.68% GRAND TOTAL (Book Value) 190,044,087 176,827,336 181,200,557 188,220,147 100.00% Quarterly Movement over the Last 4 Quarters

0 20,000,000
40,000,000
60,000,000
80,000,000
100,000,000
120,000,000
140,000,000
160,000,000
180,000,000
200,000,000
March
2023
June
2023
September
2023
December
2023
March
2024
June
2024
September
2024
December
2024
March
2025
City of Gilroy
Investments From:

March 31, 2023 to March 31, 2025
LAIF CALIFORNIA CLASS US GOVT. AGENCIES

LAIF, $52M, 28%
California Class, $27M, 14%
Treasury Notes Securities,
$109M, 57%
Cash or Equivalent, $1M, 1%
Book Value by Investment Type
As of March 31, 2025
Value of Portfolio: $189,478,169

LAIF, CA Class, Bank Checking
Accounts, $80M, 43%
Short Term (less than 1 year),
$78M, 41%
Medium Term (1 to 5 years),
$31M, 16%
Value of Portfolio: $189,478,169
Portfolio By Maturity
As Of March 31, 2025

0 1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 22/23 23/24 24/25 est* Interest Earnings
Fiscal Years
*Estimate of full year interest earnings for FY24/25
City of Gilroy
Interest Earnings FY2015 - FY2025

CITY OF GILROY

MONIES HELD BY FISCAL AGENTS
DESCRIPTION VALUE **
AS OF 3/31/25
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 6,722.92 RESERVE FUND - HELD BY U.S. BANK - GL Acct 810-10430
GOLDMAN SACHS MONEY MARKET FUND #466, CUSIP #3814W265 291,494.17 SPECIAL TAX FUND - INTEREST ACCOUNT - HELD BY U.S. BANK - GL Acct 810-10550 GOLDMAN SACHS MONEY MARKET FUND #466, CUSIP #3814W265 0.00 SPECIAL TAX FUND - PRINCIPAL ACCOUNT - HELD BY U.S. BANK - GL Acct 810-10445 GOLDMAN SACHS MONEY MARKET FUND #466, CUSIP #3814W265 0.00 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 1,113.06 INTEREST ACCOUNT - HELD BY U.S. BANK - GL Acct 520-10440 GOLDMAN SACHS FINANCIAL SQUARE MMKT #466, CUSIP #38141W265 2.06 PRINCIPAL ACCOUNT - HELD BY U.S. BANK - GL Acct 520-10445 GOLDMAN SACHS TR FINL SQ GV ADM #466, CUSIP #38141W265 4.50 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 237.97 PRINCIPAL ACCOUNT - HELD BY U.S. BANK - GL Acct 510-10445 FIRST AM.GOVT OB FD CL D, CUSIP #31846V401, U.S. TREASURY BILL #912796C31 1,096.73 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, 872.08 ACQUISITION AND CONSTRUCTION FUND - HELD BY U.S. BANK - GL Acct 700-10426 LAIF MONEY MARKET FUND #5399989H9 8,875,497.91
GILROY POST - SECTION 115 TRUST HELD BY PARS
OPEB 998,004.72
PENSION 4,362,711.40
TOTAL 14,537,757.52
** Market Values

City of Gilroy

STAFF REPORT
Agenda Item Title: Adopt a Resolution Approving the Fiscal Year 2025-26 Road Rehabilitation Projects for Funding by Senate Bill 1, the Road Repair and Accountability Act of 2017 Funds
Meeting Date: May 19, 2025
From: Jimmy Forbis, City Administrator
Department: Public Works
Submitted by: John Doughty, Public Works Director
Prepared by: Julie Oates, Engineer
STRATEGIC PLAN GOALS: Maintain and Improve City Infrastructure

RECOMMENDATION
Adopt a Resolution of the City Council of the City of Gilroy adopting a list of projects for Fiscal Year 2025-26 to be funded by SB 1: The Road Repair and Accountability Act of 2017.

BACKGROUND
Senate Bill 1, (SB 1) (Beall, Chapter 5, Statutes of 2017), The Road Repair and Accountability Act of 2017 provides significant, stable, and ongoing state transportation funding. These are funds dedicated to fixing aging roads and bridges, improving goods movement, and reducing traffic congestion. SB 1 is anticipated to generate $54 billion over the ten years following voter approval, split between state and local agencies.

SB 1 enables cities and counties to address significant maintenance, rehabilitation, and safety needs on their local streets and roads system. SB 1 provides approximately $1.5 billion per year for local streets and roads. In providing this funding, the Legislature has increased the role of the California Transportation Commission (Commission), including oversight of SB 1 based on the development of guidelines, review of project lists submitted by cities and counties, reporting to the State Controller, and receiving reports on completed projects.

In June 2024, Council approved a resolution and a list of projects to be constructed using the FY25 funding. The FY25 program is expected to be completed in the fall of 2025. The updated list of proposed street segments for paving using FY2025-26 SB 1 funding, consistent with the Council-adopted 5-year paving program, is attached.

To date, the City has received $6,204,696 from the State Controller of SB 1 funds.

ANALYSIS
To receive the available SB 1 funds, the City must adopt the list of SB 1 funded pavement maintenance projects through a resolution. “Projects”, in this case, means a list of streets that we anticipate will receive pavement maintenance with SB 1 funds.

Pavement maintenance can be done in one project or combined with other planned pavement maintenance projects. A resolution, listing the streets to be included in the annual SB 1 funded project, is due to the Commission by July 1, 2025.

The street segments were selected using the City’s StreetSaver pavement management program and using the Council-directed blended system to identify streets for rehabilitation. Street segments are selected to provide the greatest improvement in the average Pavement Condition Index (PCI) for a given funding level. Staff also considers Average Daily Traffic (ADT), Street Functional Classifications (Residential, Collector, or Arterial), current Pavement Condition Index (PCI), types of treatment required, and geographic equity when selecting streets for inclusion on this list.

ALTERNATIVES
Council may amend the resolution identifying the projects for funding. This is not recommended, as the project list is developed utilizing the methodology outlined above to develop the list, pulling in several different source data to help maximize the effectiveness of the street segment improvements throughout the City's streets and roads network.

FISCAL IMPACT/FUNDING SOURCE
The FY 2025-26 SB 1 Road Maintenance and Rehabilitation Account (RMRA) projected revenues of $1.6 million are included as a revenue source for Fund 210 (Road Maintenance and Rehab) in the City’s CIP under Annual Citywide Pavement Rehabilitation Project No. 800060 as part of the FY 2025-26 project budget.

SB 1 requires that cities maintain a minimum level of General Fund spending on streets and roads, at levels equal to or greater than their annual average expenditures during FY10, FY11, and FY12, which is known as the “maintenance of effort” (MOE) requirement. The bill authorizes the State Controller’s Office to audit local governments for compliance and subject local governments to reimbursing the state for noncompliance. For Gilroy, per the State Controller’s Office, this amounts to approximately

$1.2 million annually from the General Fund (which is the average of 3-year expenditures on street maintenance from FY10 - FY12). The City will meet the required MOE for FY26 as it typically expends more than the required $1.2 million within the street maintenance program funded by the General Fund, and in addition, expends Measure B, SB1, and other Gas Tax funds for the annual pavement rehabilitation project.

NEXT STEPS
The attached resolution, once approved, will be sent to the California Transportation Commission for approval to allow the City of Gilroy to receive its share of the SB 1 local pavement maintenance funding.

Attachments:

1. Draft Resolution No. 2025-XX

RESOLUTION 2025-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

GILROY ADOPTING A LIST OF PROJECTS FOR FISCAL
YEAR 2025-26 FUNDED BY SB 1: THE ROAD REPAIR AND
ACCOUNTABILITY ACT OF 2017
WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and Signed into law by the Governor in April 2017 to address the significant multi-modal transportation funding shortfalls statewide; and
WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the residents of our City are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year; and WHEREAS, the City must adopt by resolution a list of projects proposed to receive fiscal year funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1, which must include a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement; and WHEREAS, the City of Gilroy will receive an estimated $1,601,310 in RMRA funding in Fiscal Year 2025-26 from SB 1; and
WHEREAS, this is the ninth year in which the City is receiving SB 1 funding and will enable the City to continue essential road maintenance and rehabilitation projects, safety improvements, repairing and replacing aging bridges, and increasing access and mobility options for the traveling public that would not have otherwise been possible without SB 1; and WHEREAS, the City has undergone a robust public process to ensure public input into our community’s transportation priorities/the project list, including the implementation of an online service request portal called “Gilroy Connect” which is available on the City’s website and as a standalone mobile application, and allows residents to submit, track, and monitor requests, including requests for street maintenance and rehabilitation; and WHEREAS, the City used a Pavement Management System to develop the SB 1 project list to ensure revenues are being used on the most high-priority and cost-effective projects that also meet the communities priorities for transportation investment by considering pavement condition, traffic volumes, complete streets, and prioritizing streets in critical disrepair; and WHEREAS, the funding from SB 1 will help the City maintain and rehabilitate approximately 720,000 square feet of pavement on major collectors and arterials and work towards implementing the complete streets ordinance; and WHEREAS, the 2023 California Statewide Local Streets and Roads Needs Assessment found that the City’s streets and roads are in good condition, and this revenue will help us increase the overall quality of our road system and keep our streets and roads in good condition; and

WHEREAS, the SB 1 project list and overall investment in our local streets and roads infrastructure with a focus on basic maintenance and safety, investing in complete streets infrastructure, and using cutting-edge technology, materials and practices, will have significant positive co-benefits for those who live, work, and visit the City of Gilroy.

NOW, THEREFORE IT IS HEREBY RESOLVED, ORDERED AND FOUND by the City Council of the City of Gilroy, as follows:

1. The foregoing recitals are true and correct.

2. The following list of newly proposed projects will be funded in-part or solely with Fiscal Year 2025-26 Road Maintenance and Rehabilitation Account revenues:

Project Title: FY26 Citywide Pavement Rehabilitation Project Project Description: Milling and placement of asphalt concrete pavement; adjustment of utilities to grade; roadway striping, signage, and markings; traffic signal loop replacement; and other incidental work.

Project Location: The following locations identified are subject to change based on priority needs or available funding: Mantelli Dr from Santa Teresa Blvd to Church St, Monterey Road from Eighth St to Tenth St, Murray Ave from I.O.O.F. Ave to Chestnut St, and Sixth St from Wren Ave to Church St.

Estimated Project Schedule: Start in May 2026 to Completion in September 2026 based on the component being funded with RMRA funds
Estimated Project Useful Life: 5 to 10 years
PASSED AND ADOPTED by the City Council of the City of Gilroy at a regular meeting duly held this 19th day of May, 2025, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

APPROVED:

Greg Bozzo, Mayor
ATTEST:
_______________________
Bryce Atkins, City Clerk’s Office

City of Gilroy

STAFF REPORT
Agenda Item Title: Approve the Amended and Restated Funding Agreement Between the City of Gilroy and Santa Clara Valley
Transportation Authority for the 2016 Measure B Bicycle and Pedestrian Education and Encouragement Program
Meeting Date: May 19, 2025
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 approve the agreement.

BACKGROUND
In November 2016, Santa Clara County voters approved 2016 Measure B, a 30-year, half-cent countywide sales tax devoted to enhancing transit, highways, expressways, and active transportation (bicycles, pedestrian, and complete streets) within Santa Clara County. The ballot states that: (A) Santa Clara Valley Transportation Authority (VTA) would be the administrator of the tax; and (B) 2016 Measure B revenues would fund nine defined program categories of transportation projects. The VTA Board of Directors is responsible for 2016 Measure B policy decisions.

One of these program categories is Bicycle Pedestrian Education and Encouragement funding ("Bike and Ped EE"). The City has been the recipient of these funds in years past, and has funded such projects as bike helmets, Bike to Wherever Day events, face masks, and most recently the Bicycle Pedestrian GIS Project. This large project consumed the remaining funds in the Measure B Bike and Ped EE and has the next two years' worth of allocations earmarked to complete the reimbursement for the funds expended on this project.

Funding was secured through a contract between VTA and participating cities. The agreement currently establishing the City's access to these funds is set to expire at the end of June.

ANALYSIS
The existing agreement is set to expire at the end of June 2025. There is a need to ensure that the City maintains eligibility to receive the funding, including completion of the reimbursement for funding spent, and a need for VTA to issue out the funds that are collected under Measure B to be allocated to the City. There are no financial contributions required by the City to access these funds, and no drawbacks to entering into the agreement. Furthermore, there are no significant program changes, as the agreement establishes rules and procedures as they are performed and directed by VTA currently. Therefore, staff recommends the City Council approve of entering into the agreement. Funding is provided through a formula, and agreements with the same terms and funding formulas are entered into with other municipalities in the County.

Future allocations may become available for another qualified purpose once the reimbursement is completed.

ALTERNATIVES
Council may choose to reject the agreement. This is not recommended as the City would no longer have access to these funds.

FISCAL IMPACT/FUNDING SOURCE
The revenue from this program area has historically been approximately $50,000 per fiscal year, varying based on total tax revenue received that is applicable to the program. It is anticipated that allocations would remain generally similar, adjusting with changes in funding generated through the countywide retail transaction and use tax.

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

NEXT STEPS
If approved, staff will process the agreement with VTA.

Attachments:

1. 2016 Measure B Bike and Ped Education and Encouragement Master Agreement - Amended and Restated - Gilroy

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AMENDED AND RESTATED FUNDING AGREEMENT

BETWEEN

CITY OF GILROY
AND

SANTA CLARA VALLEY TRANSPORTATION AUTHORITY
FOR
2016 MEASURE B BICYCLE & PEDESTRIAN EDUCATION AND ENCOURAGEMENT PROGRAM THIS AMENDED AND RESTATED FUNDING AGREEMENT (“AGREEMENT”) is entered into as of July 1st, 2025 (“EFFECTIVE DATE”) and is by and between the CITY OF GILROY (“RECIPIENT”) and SANTA CLARA VALLEY TRANSPORTATION AUTHORITY (“VTA”). RECIPIENT and VTA may be individually referred to as “PARTY” or collectively referred to as “PARTIES.”
I. RECITALS

1. Whereas, on June 24, 2016, the VTA Board of Directors (“VTA BOARD”) adopted a resolution to place a ballot measure before the voters of Santa Clara County (“SCC”) in November 2016 to authorize a one-half of one percent retail transaction and use tax (“2016 MEASURE B”) for 30 years for nine transportation-related program categories;

2. Whereas, on November 8, 2016, the voters of Santa Clara County enacted 2016 MEASURE B for 30 years to pay for the nine transportation-related program categories;

3. Whereas, on October 5, 2017, the VTA BOARD established the 2016 Measure B Program (“PROGRAM”) and adopted the 2016 Measure B Program Category Guidelines (“GUIDELINES”). In addition, VTA established a program manual (“PROGRAM MANUAL”). Both the GUIDELINES and the PROGRAM MANUAL are incorporated into this Agreement by this reference and available at www.vta.org or upon request to VTA;

4. Whereas, the PROGRAM includes a Bicycle & Pedestrian program category (“BIKE/PED CATEGORY”) to fund bicycle and pedestrian projects and educational programs;

5. Whereas, the BIKE/PED CATEGORY consists of three sub-categories, including the education & encouragement program (“BIKE/PED E&E PROGRAM”);

6. Whereas, the duration of 2016 MEASURE B will be 30 years from the initial year of collection, beginning April 1, 2017, and continuing through March 31, 2047;

7. Whereas, the PARTIES executed a funding agreement for the BIKE/PED E&E PROGRAM funds on November 20, 2019 which expires on June 30, 2025 (“PRIOR AGREEMENT”); and

8. Whereas, the PARTIES desire to amend and restate the PRIOR AGREEMENT to, among other things, specify the terms and conditions under which VTA will administer BIKE/PED E&E PROGRAM funds allocated to VTA and RECIPIENT through the life of the PROGRAM.

NOW, THEREFORE, in consideration of the mutual promises contained in this AGREEMENT, the PARTIES agree as follows:

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II. AGREEMENT

1. BIKE/PED E&E PROGRAM DEFINITION
The BIKE/PED E&E PROGRAM covers activities and the development and distribution of materials that are designed and intended to satisfy the following goals within RECIPIENT’s jurisdiction: (i) promote, educate, and/or encourage safe walking or bicycling for residents or visitors of every age and ability; (ii) communicate to residents and visitors the benefits of walking and bicycling; and (iii) communicate to school children, residents, and visitors the rights and responsibilities of pedestrians, bicyclists, and motorists.

2. TERM OF AGREEMENT
The term of this AGREEMENT will commence on the EFFECTIVE DATE and continue through March 31, 2047, or until BIKE/PED E&E PROGRAM CATEGORY funds allocated to RECIPIENT have been expended entirely, whichever occurs later.

Notwithstanding the foregoing, the PARTIES may terminate this AGREEMENT pursuant to Section II, Paragraph 13.

3. ELIGIBLE USE OF FUNDS
A. RECIPIENT may use RECIPIENT’s allocated BIKE/PED E&E PROGRAM funds only for activities/projects that (i) are offered/available to individuals who live, work, or attend school in RECIPIENT’S boundaries or school districts, and (ii) VTA has pre-approved in writing (each, an “E&E PROJECT”). Only VTA’s AUTHORIZED REPRESENTATIVE (defined in Section II, Paragraph 15 below), or designee, has authority to approve an E&E PROJECT.

B. VTA will consider for approval the following types of activities / projects:
i. Organization and implementation of K-12 Safe Routes to Schools programs and activities. ii. Organization and implementation of Vision Zero programs. “Vision Zero” is defined by the Vision Zero Network campaign as the “Strategy to eliminate all traffic fatalities and severe injuries while increasing safe, healthy, equitable mobility for all,” which definition is adopted for purposes of this AGREEMENT.
iii. Organization and implementation of open streets events. “Open streets events” are defined by the Open Streets Project (an advocacy project and collaboration between 8 80 Cities and Street Plans) as “Programs that temporarily open streets to people by closing them to cars,” which definition is adopted for purposes of this AGREEMENT. iv. Creation and implementation of marketing to encourage mode shift towards active transportation.
v. Development and distribution of maps that promote places to walk or bike. vi. Education of walking and bicycling skills to adults and children. vii. Working with law enforcement officials to ensure common understanding and consistent application among law enforcement officials of traffic laws related to biking and walking. viii. Organization and implementation of broad or targeted safety campaigns to promote safe driving, walking, and bicycling behavior.*

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ix. Creation and distribution of marketing materials to encourage safe walking, biking, and driving.*
x. Purchase and distribution of bicycle helmets, lights, reflective vests, or other bicycle/pedestrian safety equipment to be used in education/encouragement activities. xi. Purchase and distribution of incentives for education/encouragement activities. xii. Organization and implementation of crosswalk stings or other activities that educate roadway users on traffic laws. Crosswalk stings are activities conducted by law enforcement to educate the public about crosswalk right of way laws that may or may not include citations.
xiii. Organization and implementation of special community events focused on achieving the BIKE/PED E&E PROGRAM goals described in Section II, Paragraph 1, such as community rides or walks.
xiv. Energizer stations and other Bike to Wherever Day activities. xv. Implementation of valet bicycle parking.
xvi. Community-based bicycle/pedestrian surveys of facilities and surrounding areas to learn, observe, and identify bicycle and pedestrian hot spots. xvii. Any other program or activity VTA pre-approves in writing. *Any safety campaign or public service announcement targeted to motorists must focus on safe, responsible, and respectful motorist interactions with pedestrians and bicyclists.

C. RECIPIENT is permitted to use BIKE/PED E&E PROGRAM funds allocated for (i) direct costs and staff time costs incurred by RECIPIENT to support E&E PROJECTS, and (ii) costs incurred for evaluation of the E&E PROJECTS (as required under Section II, Paragraph 4).

D. Notwithstanding any other provision of this AGREEMENT, RECIPIENT is not permitted to use BIKE/PED E&E PROGRAM funds for capital improvements.

E. E&E PROJECTS may be targeted and limited to specific demographics including, but not limited to, school children, seniors, or people with disabilities to the extent not prohibited by applicable law.

F. Only BIKE/PED E&E PROGRAM costs incurred by RECIPIENT on or after July 1, 2017, will be eligible for reimbursement.

4. EVALUATION REQUIREMENTS
A. RECIPIENT must identify (i) the project reach and scale of each E&E PROJECT and (ii) one or more metric(s) that will be used to evaluate whether the goal was achieved. Examples of acceptable metrics are set forth in Attachment A, attached hereto and incorporated herein.

B. RECIPIENT must identify and obtain VTA’s prior written approval of the frequency and schedule of each E&E PROJECT evaluation.

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5. MAXIUMUM FUNDING ALLOCATIONS
A. RECIPIENT’S maximum funding allocation for each fiscal year (July 1st through June 30th of the following calendar year) will be based upon the VTA BOARD’s Adopted Biennial Budget for the BIKE/PED E&E PROGRAM and the annual fund distribution formula described below.

B. Annual Fund Distribution Formula. The BIKE/PED E&E PROGRAM annual fund distribution formula is calculated every two fiscal years (in line with VTA’s budget cycle) and is based on the following:
i. First, at the same time that VTA plans and finalizes its budget for the two upcoming fiscal years, the VTA BOARD determines the allocation of 2016 MEASURE B funds for the two upcoming fiscal years.
ii. Second, the VTA BOARD determines the amount of 2016 MEASURE B funds to be allocated amongst the PROGRAM categories and subcategories, including the BIKE/PED E&E PROGRAM CATEGORY.
iii. Third, an allocation is made to VTA and the County of Santa Clara for countywide (with respect to Santa Clara County) BIKE/PED E&E PROGRAM activities (“COUNTYWIDE ACTIVITIES”). Per the GUIDELINES, COUNTYWIDE ACTIVITIES will receive 25% of available BIKE/PED E&E POGRAM funds.
iv. Fourth, the 2016 Measure B funds remaining for the BIKE/PED E&E PROGRAM category allocation are calculated by deducting the amount allocated for COUNTYWIDE ACTIVITIES in subparagraph (iii), immediately above, from the total BIKE/PED E&E PROGRAM category allocation (“REMAINING FUNDS”).
v. Fifth, VTA determines the percentage of the total population of SCC (“TOTAL SCC POP”) of each city (“CITY POP”) and of the unincorporated areas of SCC (“SCC UNINCORP POP”) to determine allocations to each city. For purposes of these calculations, the TOTAL SCC POP includes unincorporated areas and is based on the then most current California Department of Finance’s more current annual population estimates at the time of allocation determination, i.e., Report E-1, or any successor report. Each CITY POP is divided by the TOTAL SCC POP, and then the result is multiplied by 100. The result for each city is the “CITY PERCENTAGE SHARE” (for SCC, the ”SCC PERCENTAGE SHARE”). vi. SIXTH, each CITY PERCENTAGE SHARE (including the SCC PERCENTAGE SHARE) is multiplied by the REMAINING FUNDS to determine the dollar amount that would be allocated to each city based on their CITY PERCENTAGE SHARE; however, no allocation is yet made at this step. Cities that would receive less than $10,000 as a result of the calculation described in Subsection (v) will be identified as low population cities (“LOW POP CITIES”). vii. Seventh, each city is allocated $10,000 (“10K ALLOCATIONS”). LOW POP CITIES will not be allocated any additional funds beyond the 10K ALLOCATIONS made to each city as described in this Subsection (vii). The minimum 10k ALLOCATIONS will continue through fiscal year 2025. Following fiscal year 2025, the minimum allocated to LOW POP CITIES will increase by

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$2,000 every five years. See the “LOW POP CITES ALLOCATION SCHEDULE” included in this AGREEMENT as Attachment B, attached hereto and incorporated herein. viii. Eighth, the modified REMAINING FUNDS are calculated by subtracting the cumulative total of allocations made to LOW POP CITIES from the REMAINING FUNDS (“MOD REMAINING FUNDS”).
ix. Ninth, a modified Santa Clara County population is calculated by deducting the SCC UNINCORP POP and all LOW POP CITIES from the TOTAL SCC POP (“MODIFIED POPULATION”).
x. Tenth, a modified population percentage share (“MOD CITY PERCENTAGE SHARE”) is calculated for all cities that are not LOW POP CITIES (“NON-LOW POP CITIES”) by dividing the NON-LOW POP CITY’S total population by the MODIFIED POPULATION and multiplying the result by 100.
xi. Eleventh, each NON-LOW POP CITY’S MOD CITY PERCENTAGE SHARE is multiplied by the MOD REMAINING FUNDS to calculate each NON-LOW POP CITY’s additional allocation of 2016 Measure B funds for the BIKE/PED E&E PROGRAM category. This allocation will be made in addition to the 10K ALLOCATION described above.

C. RECIPIENT’s allocations are subject to change based on allocations made by the VTA BOARD pursuant to the PROGRAM.

D. BIKE/PED E&E PROGRAM allocations may be banked and remain unspent for a maximum of three fiscal years, provided that (i) RECIPIENT provides VTA with a satisfactory explanation for why the allocation is not being spent and (ii) VTA provides RECIPIENT with written approval for such explanation. In this instance, RECIPIENT must begin drawing funds during the fourth fiscal year.

Following the third fiscal year of banked allocations and within the fourth fiscal year, RECIPIENT must provide to VTA the required documentation as described in Section II, Paragraph 7. In this fourth fiscal year, RECIPIENT must submit, at minimum, one invoice for funds towards an E&E PROJECT.

If RECIPIENT fails to do the above by the end of the fourth fiscal year and no funds have been spent in the past four consecutive fiscal years, then allocations will be returned by VTA to the pool of 2016 MEASURE B funds allocated to the BIKE/PED E&E PROGRAM category for redistribution in the next allocation cycle pursuant to the formula above.

E. All funds will be available to RECIPIENT on a reimbursement basis only.

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6. VTA’s OBLIGATIONS
VTA will:

A. Annually report to the public the amount of BIKE/PED E&E PROGRAM revenues allocated and distributed to RECIPIENT.

B. Annually report to the public a summary of E&E PROJECT evaluation metrics submitted by RECIPIENT, as required in Section II, Paragraph 4.

C. Conduct an assessment regarding the effectiveness of the BIKE/PED E&E PROGRAM using approved metrics and data provided by RECIPIENT (pursuant to Section II, Paragraph 4) related to RECIPIENT’s E&E PROJECT(s).

D. Biennially, or however frequently as VTA determines is appropriate based upon the number of ongoing E&E PROJECTs, report to the public the effectiveness of the BIKE/PED E&E PROGRAM based on the assessment described immediately above in Section II, Paragraph 6(C).

E. Remit the amount due to the RECIPIENT under an invoice within thirty (30) calendar days of receipt of a complete and proper, fully documented invoice complying with the requirements set forth herein.

7. RECIPIENT’s OBLIGATIONS
RECIPIENT must:

A. Comply with 2016 Measure B reporting requirements.

B. Ensure that all 2016 MEASURE B funds are expended on allowable BIKE/PED E&E PROGRAM expenditures as described above in Section II, Paragraph 3, ELIGIBLE USE OF FUNDS.

C. Annually complete and submit to VTA, by October 1st of each year, RECIPIENT’s proposed work program for the BIKE/PED E&E PROGRAM, in which RECIPIENT must set forth proposed E&E PROJECTS and develop all such E&E PROJECTS that are approved by VTA as eligible. RECIPIENT’s proposed metrics and frequency of E&E PROJECT evaluation must be included with the proposed work program (see Section II, Paragraph 4); VTA must provide approval of the proposed metrics and frequency of evaluation.

D. Annually submit to VTA, by October 1st of each year, a summary of the prior fiscal year’s completed E&E PROJECTS.

E. Submit to VTA, on a frequency as approved by VTA, the evaluation of the completed E&E PROJECTS pursuant to Section II, Paragraph 4.

F. If applicable, annually submit to VTA, by October 1st of each year, an explanation of why no BIKE/PED E&E PROGRAM funds are planned for expenditure during the upcoming fiscal year.

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G. Annually complete and submit to VTA, by October 1st of each year, any accompanying reporting requirements for the BIKE/PED E&E PROGRAM.

H. Submit to VTA all records including contractors’ invoices, miscellaneous invoices, and force account charges as substantiation for invoices submitted to VTA for reimbursement hereunder.

I. Maintain financial records, books, documents, papers, accounting records, and other evidence pertaining to costs related to this AGREEMENT for five (5) years. RECIPIENT shall make such records available to VTA upon VTA’s written request for review and audit purposes. Financial audits will be performed at VTA’s sole discretion.

J. Submit invoices to VTA, no more frequently than monthly, for reimbursement of eligible E&E PROJECT costs (see Section II, Paragraph 3) RECIPIENT must submit invoices within one year of the date RECIPIENT incurs the cost submitted on the invoice for reimbursement (unless otherwise approved by VTA in writing).

K. At all times during this AGREEMENT, RECIPIENT must comply with the insurance requirements and specifications of the attached Attachment C, Insurance Requirements. RECIPIENT may, in its discretion, elect to self-insure, but any such self-insurance must meet the requirements and specifications in Attachment C.

8. INDEMNIFICATION
Neither VTA nor any officer or employee thereof will be responsible for any damage or liability arising out of or relating to RECIPEINT’s negligent acts or omissions, recklessness, or willful misconduct under or in connection with any work, authority, or jurisdiction associated with this AGREEMENT. Pursuant to California Government Code §895.4, RECIPIENT must fully defend, indemnify, and hold harmless VTA from all suits or actions of every name, kind, and description arising from an injury (as defined by California Government Code §810.8) arising out of or relating to RECIPEINT’s negligent acts or omissions, recklessness, or willful misconduct under or in connection with any work, authority, or jurisdiction delegated to RECIPIENT under this AGREEMENT. This provision will survive the termination or expiration of this AGREEMENT.

9. INSURANCE
At all times during this Agreement, RECIPIENT must comply with the insurance requirements and specifications of Attachment C, Insurance Requirements, attached hereto and incorporated herein.

RECIPIENT may, in its discretion, elect to self-insure, but any such self-insurance must meet the requirements and specifications in Attachment C.

10. ADDITIONAL INSURED AND INDEMNITY PROVISION
In any agreement executed between the RECIPIENT and a third party for purposes related in any way to the subject matter of this Agreement (“Third Party Contract”), RECIPIENT must require that VTA be named as (i) an additional insured on a primary and non-contributory basis with separation of insureds and waiver of subrogation on all policies of insurance, except when not applicable and (ii) an indemnified party in any indemnity provision contained in the Third Party Contract. Third Party Contracts must contain insurance requirements with coverages at least as broad as, and limits at least as great as, the requirements of Attachment C.

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11. COMPLIANCE WITH APPLICABLE LAW
In execution of any E&E PROJECT and performance of its responsibilities set forth herein, RECIPIENT must comply with all applicable requirements of local, state, and federal law.

12. COMPLIANCE WITH 2016 MEASURE B REQUIREMENTS
A. In its performance under this AGREEMENT, RECIPIENT must comply, and must ensure E&E PROJECT compliance, with all PROGRAM requirements including, but not limited to, the GUIDELINES and PROGRAM MANUAL.

B. VTA may, in its sole discretion, make changes to the GUIDELINES and/or the PROGRAM MANUAL at any time. If VTA makes such changes, VTA will notify RECIPIENT within a reasonable time of such changes.

13. TERMINATION
A. Either PARTY may at any time terminate this Agreement by giving ten (10) business days written notice of such termination to the other PARTY. Notice must identify the effective date of such cancellation and must be provided in accordance with the terms and conditions of this AGREEMENT.

B. In the event of termination under this section, City must submit its final invoice to VTA within thirty (30) calendar days of the effective date of termination, and such invoice will be solely for ELIGIBLE COSTS RECIPIENT incurred prior to termination.

14. AUDITS AND RECORDS
A. RECIPIENT must maintain, and must require their contractors to maintain, in accordance with generally accepted accounting principles and practices, complete books, accounts, records, and data pertaining to services performed under this AGREEMENT, including the costs of contract administration. Such documentation must be supported by properly executed payrolls, invoices, contracts, and vouchers evidencing in detail the nature and propriety of any charges and must be sufficient to allow a proper audit of services. All checks, payrolls, invoices, contracts, and other accounting documents pertaining in whole or in part to the services must be clearly identified and readily accessible.

B. For the duration of the AGREEMENT, and for a period of five years after final payment, each PARTY and its representatives must have access during normal business hours to any books, accounts, records, data, and other relevant documents (“RECORDS”) of the other PARTY that are pertinent to this AGREEMENT for audits, examinations, excerpts, and transactions. The other PARTY must furnish copies of the RECORDS upon request.

15. NOTICES / AUTHORIZED REPRESENTATIVES
A. Notices. Any notice which may be required under this AGREEMENT (i) must be in writing, (ii) will be effective one (1) business day after personal service or delivery by certified mail, and (iii) must be given by personal service or certified mail the other PARTY’S AUTHORIZED REPRESENTATIVE at the addresses set forth below, or to such other address that may be specified in writing by a PARTY.

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B. Authorized Representatives.

VTA:

Marcella Rensi
Deputy Director, Programming and Grants
Santa Clara Valley Transportation Authority
3331 N First Street
San Jose, CA 95134
Email: [email protected]
RECIPIENT:

City Administrator
City of Gilroy
7351 Rosanna Street
Gilroy, CA, 95020
Email: [email protected]
Written notification to the other PARTY must be provided, in advance, for changes in the name or address of the individuals identified above.

The individual identified above for RECIPIENT is RECIPIENT’s BIKE/PED E&E PROGRAM Liaison (“LIAISON”). The LIAISON shall be (i) the liaison to VTA pertaining to implementation of this AGREEMENT and (ii) the contact for information about the BIKE/PED E&E PROGRAM and E&E PROJECTS.

16. GENERAL TERMS AND CONDITIONS
A. Headings. The subject headings of the articles and paragraphs in this AGREEMENT are included for convenience only and will not affect the construction or interpretation of any of its provisions.

B. Incorporation of Exhibits and Attachments. All exhibits and attachments referenced in this AGREEMENT are incorporated into it by this reference.

C. Construction and Interpretation of Agreement. This AGREEMENT, and each of its provisions, terms, and conditions, has been reached as a result of negotiations between the PARTIES.

Accordingly, each PARTY expressly acknowledges and agrees that (i) this AGREEMENT will not be deemed to have been authored, prepared, or drafted by any particular PARTY and (ii) the rule of construction to the effect that ambiguities are to be resolved against the drafting party will not be employed in the interpretation of this AGREEMENT or in the resolution of disputes.

D. Amendment. No alteration or variation of the terms of this AGREEMENT will be valid unless made in writing and signed by both of the PARTIES hereto, and no oral understanding or AGREEMENT not incorporated herein will be binding on any of the PARTIES hereto.

E. Entire Agreement. This AGREEMENT constitutes the entire agreement between the PARTIES relating to the subject matter and supersedes all prior negotiations, contracts, agreements, or understandings, whether oral or written, of the PARTIES regarding the subject matter.

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F. Representation of Authority. Each PARTY to this AGREEMENT represents and warrants that each person whose signature appears hereon has been duly authorized and has the full authority to execute this AGREEMENT on behalf of the entity that is a PARTY to this AGREEMENT.

G. No Waiver. The failure of either PARTY to insist upon the strict performance of any of the terms, covenant, and conditions of this AGREEMENT will not be deemed a waiver of any right or remedy that either PARTY may have, and will not be deemed a waiver of either PARTY’s right to require strict performance of all of the terms, covenants, and conditions hereunder.

H. Dispute Resolution.
a. If a question or allegation arises regarding (i) interpretation of this AGREEMENT or its performance, or (ii) the alleged failure of a PARTY to perform, the PARTY raising the question or making the allegation must give written notice thereof to the other PARTY. The PARTIES must promptly meet in an effort to resolve the issues raised. If the PARTIES fail to resolve the issues raised, alternative forms of dispute resolution, including mediation, may be pursued by mutual agreement. It is the intent of the PARTIES to avoid litigation as a method of dispute resolution to the greatest extent possible.
b. Notwithstanding the foregoing, nothing in this Paragraph 16 will be deemed to prevent a PARTY from filing suit or an administrative action to preserve its right to assert a claim within any applicable statute of limitations. To the extent practicable, the PARTIES will negotiate in good faith to create a tolling agreement to toll such statute(s) of limitations to allow for the PARTIES to engage in dispute resolution provisions of this AGREEMENT prior to filing of such actions.

I. Severability. If any term, covenant, condition or provision of this AGREEMENT, or the application thereof to any person or circumstance, shall to any extent be held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms, covenants, conditions and provisions of this AGREEMENT, or the application thereof to any person or circumstance, shall remain in full force and effect and shall in no way be affected, impaired or invalidated thereby.

J. Governing Law. The laws of the State of California will govern this AGREEMENT, as well as any claim that might arise between RECIPIENT and VTA, without regard to conflict of law provisions.

K. Venue. Any lawsuit or legal action arising from this AGREEMENT must be commenced and prosecuted in the courts of Santa Clara County, California. RECIPIENT agrees to submit to the personal jurisdiction of the courts located in Santa Clara County, California for the purpose of litigating all such claims.

L. Use of Work. All PARTIES may retain a copy of all material produced under this AGREEMENT for use in their general activities.

M. Attribution to VTA. RECIPIENT must include attribution to VTA that indicates part of the work was funded by PROGRAM Funds. This provision applies to any project or publication that was funded in part or in whole by PROGRAM Funds. Acceptable forms of attribution include 2016 MEASURE B’s branding on E&E PROJECT-related documents, public information materials, and any other applicable documents. VTA will provide Program branding to RECIPIENT.

Rev 1.17.25 Page 11 of 19
N. Non-discrimination. The PARTIES and any contractors performing services on behalf of the PARTIES (“CONTRACTORS”) will not unlawfully discriminate or permit discrimination, harass, or allow harassment against any person or group of persons because of race, color, religious creed, national origin, ancestry, age (over 40), sex, gender, gender identity, gender expression, sexual orientation, marital status, pregnancy or childbirth (including related conditions), medical condition (including cancer), mental disability, physical disability (including HIV and AIDS), genetic information, or military and veteran’s status, or in any manner prohibited by federal, state, or local laws. In addition, the PARTIES and CONTRACTORS must not unlawfully deny any of their employees family care leave to which they are entitled or discriminate against such employees on the basis of having to use family care leave. The PARTIES and CONTRACTORS must ensure that the evaluation and treatment of their employees and applicants for employment is free of such discrimination and harassment.

O. Relationship of the Parties. It is understood that this is an AGREEMENT by and between independent parties and does not create the relationship of agent, servant, employee, partnership, joint venture or association, or any other relationship other than that of independent contractor.

P. Execution in Counterparts / Electronic Signature. This AGREEMENT may be executed in one or more counterparts, each of which will be deemed an original but all of which will constitute one and the same instrument. An electronic copy of a signed contract, or an electronically signed contract, has the same force and legal effect as a contract executed with an original ink signature.

The term “electronic copy of a signed contract” refers to a copy of an original signed contract that meets the admissibility standards of a writing described in Evidence Code §1550. The term “electronically signed contract” means a contract that is executed by applying an electronic signature using technology approved by each of the Parties.

Q. Authority to Execute Agreement. Each PARTY to this AGREEMENT represents and warrants that each person whose signature appears hereon has been duly authorized and has the full authority to execute this AGREEMENT on behalf of the entity that is a PARTY to this AGREEMENT.

R. Third Party Beneficiaries. This AGREEMENT does not, and is not intended to, confer any rights or remedies upon any person or entity other than the PARTIES.

S. Survival. All representations, warranties, and covenants contained in this AGREEMENT, or in any instrument, certificate, exhibit, or other writing intended by the PARTIES to survive this AGREEMENT, shall survive the termination or expiration of this AGREEMENT, including but not limited to all terms (1) providing for indemnification; (2) relating to the California Public Records Act; (3) relating to maintenance of data; and (4) relating to PARTIES’ obligations upon and following termination or expiration of this AGREEMENT.

Signatures of PARTIES on following page.

Rev 1.17.25 Page 12 of 19
IN WITNESS WHEREOF, VTA and RECIPIENT have caused their undersigned, duly authorized signatories to execute this AMENDED AND RESTATED FUNDING AGREEMENT as of the EFFECTIVE DATE.

SANTA CLARA VALLEY CITY OF GILROY

TRANSPORTATION AUTHORITY
Carolyn M. Gonot
Jimmy Forbis
City Administrator
General Manager/CEO
Date Date
Approved as to Form Approve as to Form
Evelynn Tran
General Counsel
Andrew L. Faber, Esq.

City Attorney
Date Date
Attest:

Bryce Atkins
Acting City Clerk
Date

Rev 1.17.25 Page 13 of 19

ATTACHMENT A
Example Evaluation Requirement Metrics
Evaluation metrics include, but are not limited to, the ones used below. • Project reach - A metric measuring the total number of people or entities that participated in the activity or received a physical item provided by the program. o Hypothetical Example: Online media safety campaign had 10,000 unique views, resulting in 2,000 people taking the “I will drive, walk, and bike safely and responsibly” pledge. • Mode shift - A metric measuring the change in the number or percentage of people who replaced another mode of transportation with walking or biking. o Hypothetical Example: At the end of the school year, 200 bicycles were counted in the bike cage, an increase of 20% over the number of bicycles counted at the beginning of the year.
• Behavior change - A metric measuring the change in the number or percentage of people who changed their travel habits, including but not limited to frequency of walking or biking. o Hypothetical Example: Individualized marketing packets were provided to 1,200 households. 200 households requested additional information. Before and after surveys showed that 5% of households that requested additional information switched to biking, walking, or taking transit more.
• Safety improvements – A metric measuring the change in risky/safe behavior or the change in crashes.
o Hypothetical Example: After the crosswalk sting, motorists were observed yielding to pedestrians 8 out of 10 times, an increase of 10% over the yielding rate before the crosswalk sting. However, these rates decreased over time, suggesting that continued events or infrastructure changes are needed to permanently improve driver behavior. • Community Engagement – A metric measuring the number or percentage of people who become involved in a program on an ongoing basis.
o Hypothetical Example: At the end of five Train the Trainer events, of the 25 trainees, ten agree to lead Safe Routes to School activities at their schools.

Rev 1.17.25 Page 14 of 19

ATTATCHMENT B

LOW POP CITES ALLOCATION SCHEDULE
Cities that would receive less than $10,000 as a result of the allocation calculations are instead allocated $10,000 minimum per fiscal year. The minimum $10,000 allocation will continue through fiscal year 2028. Following fiscal year 2028, the minimum allocated to LOW POP CITIES will increase every biennial budget cycle.

The allocation schedule starting fiscal year 2028 is as follows:

Fiscal Year (FY) Allocation Amount to LOW POP CITIES
FY 2028 $12,000
FY 2029 $12,000
FY 2030 $12,000
FY 2031 $12,000
FY 2032 $12,000
FY 2033 $12,000
FY 2034 $14,000
FY 2035 $14,000
FY 2036 $14,000
FY 2037 $14,000
FY 2038 $14,000
FY 2039 $14,000
FY 2040 $16,000
FY 2041 $16,000
FY 2042 $16,000
FY 2043 $16,000
FY 2044 $16,000
FY 2045 $16,000
FY 2046 $18,000
FY 2047 $18,000

Rev 1.17.25 Page 15 of 19

ATTACHMENT C

INSURANCE REQUIREMENTS
RECIPIENT’S ATTENTION IS DIRECTED TO THE INSURANCE REQUIREMENTS BELOW. IT IS HIGHLY

RECOMMENDED THAT RECIPIENT CONFER WITH THEIR INSURANCE CARRIERS OR BROKERS IN

ADVANCE OF PROPOSAL SUBMISSION TO DETERMINE THE AVAILABILITY OF INSURANCE CERTIFICATES AND ENDORSEMENTS REQUIRED BY THIS AGREEMENT.

INSURANCE
Without limiting RECIPIENT’s obligation to indemnify and hold harmless VTA, RECIPIENT must procure and maintain for the duration of the AGREEMENT insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the Work hereunder by RECIPIENT, its agents, representatives, or employees, or subcontractors. The cost of such insurance must be included in AGREEMENT price. In the event of any material change in the AGREEMENT Scope of Services, VTA reserves the right to change the insurance requirements set forth herein. RECIPIENT must furnish complete copies of all insurance policies, within three (3) business days of any request for such by VTA.

A. Liability and Workers’ Compensation Insurance

1. Minimum Scope of Coverage
Coverage must be at least as broad as:
a. Insurance Services Office General Liability coverage (“occurrence” form CG 0001). General Liability insurance written on a “claims made” basis is not acceptable. b. Insurance Services Office Business Auto Coverage, Insurance Services Office form number CA 0001, covering Automobile Liability, code 1 “any auto.” Auto Liability written on a “claimsmade” basis is not acceptable. c. Workers’ Compensation insurance as required by the Labor Code of the State of California, and Employer’s Liability insurance.
d. Professional Liability, including limited contractual liability coverage, covering liability arising out of any negligent act, error, mistake or omission in the performance of RECIPIENT’s services under this AGREEMENT. This coverage must be continuously maintained for a minimum of two (2) years following completion of this AGREEMENT. This coverage may be written on a “claims made” basis, if so, please see special provisions in Section B.

2. Minimum Limits of Insurance
RECIPIENT must maintain limits no less than:

Rev 1.17.25 Page 16 of 19
a. General Liability (including Umbrella/Excess insurance): $2,000,000 limit per occurrence for bodily injury, personal injury, and property damage. If a General Liability or other form with a general aggregate limit is used, either the general aggregate limit must apply separately to this project/location or the general aggregate limit must be twice the required occurrence limit. This requirement may be satisfied by a combination of General Liability insurance with Excess or Umbrella policies, but in no event may the General Liability primary policy limit per occurrence be less than $2,000,000, unless Umbrella/Excess policies feature inception and expiration dates concurrent with the underlying policy, “Follow Form” coverage, and a “Drop Down”.
b. Automobile Liability $1,000,000 limit per accident for bodily injury and property damage. c. Workers’ Compensation and Employer’s Liability: Statutory Workers’ Compensation limits and Employer’s Liability limits of $1,000,000 per accident. d. Professional Liability: $2,000,000 each occurrence/aggregate minimum limit per claim.

This requirement may be satisfied by a combination of Professional Liability insurance with Excess or Umbrella policies, but in no event may the Professional Liability primary policy limit per occurrence be less than $2,000,000, unless Umbrella/Excess policies feature inception and expiration dates concurrent with the underlying policy, “Follow Form” coverage, and a “Drop Down” provision.

3. Self-Insured Retention
The certificate of insurance must disclose the actual amount of any deductible or self-insured retention, or lack thereof, for all coverages required herein. Any self-insured retention or deductible in excess of $50,000 ($100,000 if RECIPIENT is a publicly-traded company) must be declared to and approved by VTA. If RECIPIENT is a governmental authority such as a state, municipality or special district, self-insurance is permitted. To apply for approval for a level of retention or deductible in excess of $50,000, RECIPIENT must provide a current financial report including balance sheets and income statements for the past three years, so that VTA can assess RECIPIENT’s ability to pay claims falling within the self-insured retention or deductible.

Upon review of the financial report, if deemed necessary by VTA in its sole discretion, VTA may elect one of the following options: to accept the existing self-insured retention or deductible; require the insurer to reduce or eliminate the self-insured retention or deductible as respects VTA, its directors, officers, officials, employees and volunteers; or to require RECIPIENT to procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. Applicable costs resulting therefrom will be borne solely by RECIPIENT. RECIPIENT may request execution of a nondisclosure agreement prior to submission of financial reports.

B. Claims Made Provisions (not applicable to General Liability or Automobile Liability) Claims-made coverage is never acceptable for General Liability or Auto Liability. Claims-made may be considered for Professional, Environmental/Pollution, or Cyber Liability. If coverage is written on a claims-made basis, the Certificate of Insurance must clearly state so. In addition to all other coverage requirements, such policy must provide that:

Rev 1.17.25 Page 17 of 19

1. The policy must be in effect as of the date of this AGREEMENT and the retroactive date must be no later than the date of this AGREEMENT.

2. If any policy is not renewed or the retroactive date of such policy is to be changed, RECIPIENT must obtain or cause to be obtained the broadest extended reporting period coverage available in the commercial insurance market. This extended reporting provision must cover at least two (2) years.

3. No prior acts exclusion may be added to the policy during the contract period.

4. The policy allows for reporting of circumstances or incidents that might give rise to future claims.

C. Other Provisions
The policies must contain, or be endorsed to contain, the following provisions:

1. General Liability and Automobile Liability
a. VTA, its directors, officers, officials, employees and volunteers are to be named as additional insureds as respects: liability arising out of activities performed by or on behalf of RECIPIENT, including VTA’s general supervision of RECIPIENT; products and completed operations of RECIPIENT and its subcontractors; premises owned, occupied or used by RECIPIENT; or automobiles owned, leased, hired or borrowed by RECIPIENT. The coverage must contain no special limitations on the scope of protection afforded to VTA, its directors, officers, officials, employees, or volunteers. Additional Insured endorsements must provide coverage at least as broad as afforded by the combination of ISO CG 20 10 10 01 and CG 20 37 10 01.
b. Any failure to comply with reporting provisions of the policies may not affect coverage provided to VTA, its directors, officers, officials, employees, or volunteers. c. RECIPIENT’s insurance must apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s liability. d. The General Liability General Aggregate limit must apply per project, not per policy. e. The General Liability policy must be endorsed to remove the exclusion for railroad liabilities, with coverage at least as broad as afforded by ISO CG 24 17.

2. All Coverages
a. The insurer must agree to waive all rights of subrogation against VTA, its directors, officers, officials, employees, and volunteers for losses arising from work performed by RECIPIENT and its subcontractors for VTA.

Rev 1.17.25 Page 18 of 19
b. RECIPIENT’s insurance coverage must be primary insurance as respects VTA, its directors, officers, officials, employees, and volunteers. Self-insurance or insurance that may be maintained by VTA, its directors, officers, officials, employees, or volunteers may apply only as excess to RECIPIENT’s insurance. RECIPIENT’s insurance must not seek contribution from VTA’s insurance program.

3. Other Insurance Provisions
a. The Certificate must disclose the actual amount of the Deductible or Self-Insured Retention
b. If any coverage forms or endorsements required by this AGREEMENT are updated by their publishers, whether they be the insurance carrier(s), the Insurance Services office, or the American Association of Insurance Services, during the duration of this AGREEMENT, VTA reserves the rights to require RECIPIENT to procure said coverage forms or endorsements using the updated versions upon the next renewal cycle.

D. Acceptability of Insurers
Insurance and bonds must be placed with insurers with an A.M. Best’s rating of no less than A VII (financial strength rating of no less than A and financial size category of no less than VII), unless specific prior written approval has been granted by VTA.

E. Certificates of Insurance
RECIPIENT must furnish VTA with a Certificate of Insurance. The certificates for each insurance policy are to be signed by an authorized representative of that insurer. The certificates must be issued on a standard ACORD Form. The RECIPIENT must instruct their insurance broker/agent to submit all insurance certificates and required notices electronically in PDF format to [email protected]. All endorsements must be attached to the ACORD certificate in a single PDF document.

The certificates must (1) identify the insurers, the types of insurance, the insurance limits, the SIRs/deductibles or lack thereof and the policy term, (2) include copies of all the actual policy endorsements required herewith, and (3) in the “Certificate Holder” box include:

Santa Clara Valley Transportation Authority (“VTA”)
3331 North First Street
San Jose, CA 95134-1906
In the Description of Operations/Locations/Vehicles/Special Items Box, the VTA Contract number must appear, the list of policies scheduled as underlying on the Umbrella/Excess policy must be listed, Certificate Holder must be named as additional insured, and Waiver of Subrogation must be indicated as endorsed to all policies as stated in the Contract Documents.

Rev 1.17.25 Page 19 of 19
It is a condition precedent to award of this AGREEMENT that all insurance certificates and endorsements be received and approved by VTA before AGREEMENT execution. No work may be performed until insurance is in full compliance. VTA reserves the rights to require complete, certified copies of all required insurance policies, at any time.

If RECIPIENT receives notice that any of the insurance policies required by this Exhibit may be cancelled or coverage reduced for any reason whatsoever, RECIPIENT must immediately provide written notice to VTA that such insurance policy required by this Exhibit is canceled or coverage is reduced.

F. Maintenance of Insurance
If RECIPIENT fails to maintain insurance as required herein, VTA, at its option, may suspend payment for work performed and/or may order RECIPIENT to suspend work at RECIPIENT’s expense until a new policy of insurance is in effect.

Ed. Rev. 10-1-19

City of Gilroy

STAFF REPORT
Agenda Item Title: Public Hearing Pursuant to Government Code Section 3502.3 (AB 2561) to Receive a Report on City of Gilroy
Vacancies, and Recruitment and Retention Efforts
Meeting Date: May 19, 2025
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
Receive the informational report on City of Gilroy Vacancies, and Recruitment and Retention Efforts Pursuant to Government Code Section 3502.3 (AB 2561).

EXECUTIVE SUMMARY
Assembly Bill ("AB") 2561, codified in Government Code Section 3502.3, passed in 2024 with a January 1, 2025, effective date, and requires public agencies to hold a public hearing to address the status of job vacancies prior to the adoption of the final budget. During this public hearing, the City must present information on the status of job vacancies and the City's recruitment and retention efforts. If necessary, the City will identify any necessary changes to policies, procedures, and recruitment activities that may lead to obstacles in the hiring process. The City's employee bargaining units have been informed of the May 19, 2025, public hearing and shall be entitled to make a presentation at the hearing related to vacancies within their respective bargaining unit.

This report is for informational purposes only as the recommended action is for the Council to receive the report as required by law.

BACKGROUND

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City of Gilroy City Council Page 2 of 9 May 19, 2025
AB 2561 amends the Meyers-Milias-Brown Act ("MMBA") and was introduced to address the issue of job vacancies in local government, which adversely affects the delivery of public services and employee workload. Among other requirements, the bill mandates that public agencies conduct a public hearing to present the status of vacancies, recruitment, and retention efforts during a public hearing before the agency's governing body prior to the adoption of the agency's final budget and identify any necessary changes to policies, procedures, and recruitment activities that may lead to obstacles in the hiring process.

In compliance with the new legal obligations, the City is required to present the following information at the public hearing:

1. The status of vacancies at the City of Gilroy.

2. Information on the City of Gilroy's recruitment and retention efforts.

3. Obstacles in the City of Gilroy's policies, procedures, and recruitment activities that create challenges in the hiring process.

If the number of vacancies within a single bargaining unit meets or exceeds 20% of the total number of authorized full-time positions, the staff presentation will also include the following information:

1. The total number of job vacancies within the bargaining unit.

2. The total number of applicants for vacant positions within the bargaining unit.

3. The average number of days to complete the hiring process from when a position is posted.

4. Opportunities to improve compensation and other working conditions.

ANALYSIS
Vacancy Rate Data:

As of May 5, 2025, there are no bargaining units in Gilroy with a vacancy rate exceeding 20%. Below are the full-time position vacancy rates by bargaining unit and overall.

Bargaining Unit FT
Positions
Vacancies Vacancy Rate
AFSCME, Local 101 119 13 10.9%
Gilroy Police Officers Association (GPOA) 70 7 10.0%
Gilroy Management Association (GMA) 43 8 18.6%
IAFF, Gilroy Firefighters, Local 2805 40 0 0.00%
Unrepresented Employees 19 1 5.3%
TOTAL 291 29 10.0%
Gilroy's vacancy rate is similar to other agencies. Other agencies have vacancy rates ranging from 7 - 16% overall. Vacancy rates vary by bargaining unit and agency. As an

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example, Gilroy, IAFF, Local 2805 has a 0% vacancy rate. However, another CA agency with similar Fire/EMS positions reported a vacancy rate of 16%. Many agencies are reporting higher vacancy rates in professional-level engineering-related positions.

Another CA agency reported a 19.44% vacancy rate in their police bargaining unit as compared to Gilroy's vacancy rate of 10%. However, that same agency's overall vacancy rate is 7.82% compared to Gilroy's 10% overall vacancy rate.

It is important to note that some of Gilroy's vacancies are tied to new positions that were approved in the mid-cycle budget process and/or are tied to the newly created Utilities Department.

Also, when evaluating vacancy rate data, smaller agencies or smaller bargaining groups can appear to have a higher vacancy rate even with a small number of vacancies due to the small size of the overall headcount in the agency or bargaining unit.

While AB 2561 is a new law that went into effect on January 1, 2025, providing publicly available information regarding Gilroy's recruitment efforts is not new to our agency. At each Personnel Commission meeting, staff provides a current Recruitment and Employment Status Report to the Commission. This regular report includes information on all current recruitment processes, the status of each process, and the status of hires and separations.

Vacancies by Bargaining Unit and Recruitment Status:

The chart below is a summary of current vacancies and the status of the recruitment process. The City's recruitment and selection efforts are dynamic and are being worked on daily, so keep in mind this information is a snapshot in time and can change quickly.

AFSCME, Local 101 Gilroy Police
Officers
Association
(GPOA)
Gilroy
Management
Association
(GMA)
IAFF, Gilroy
Firefighters,
Local 2805
Unrepresented
Employees
Code Enforcement Officer -
accepting applications;
closes 5/27/25
Police Officer
(6) -
• 1
conditional
offer
• 1 position
tied to
Gilroy CSO
in Academy
• 1 lateral in
background
• 3 trainees in
background
City Engineer -
accepting
applications;
closes 6/6/25
No vacancies
- 3 Trainees
in Academy
(not
deployable
yet)
Council
Services,
Records, &
Election
Manager (City
Clerk) - position
posted;
accepting
applications

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AFSCME, Local 101 Gilroy Police
Officers
Association
(GPOA)
Gilroy
Management
Association
(GMA)
IAFF, Gilroy
Firefighters,
Local 2805
Unrepresented
Employees
Engineering
Technician/Inspector -
department interviews
5/14/25
Detention
Services
Officer -
accepting
applications;
open until
filled
Deputy Director of
Community
Development -
accepting
applications;
closes 6/2/25
Fire Captain
Promotion
Process -
one Fire
Captain
position
underfilled by
a Firefighter
Trainee
(Licensed
Paramedic)
Environmental Engineer -
preparing for posting week
of 5/19/25
Fire Division Chief
- accepting
applications;
closes 5/27/25
Management Assistant -
candidate in background
check
Management
Analyst -
evaluating
eligibility list for
department
interviews
Maintenance Worker I (2) -
completing internal transfer
process; preparing position
for posting
Senior Civil
Engineer -
reposting position
Operations Services
Supervisor - Wastewater -
department interview
Senior
Environmental
Engineer/Wastew
ater - accepting
applications; open
until filled; using
search firm that
specializes in
Utilities positions
Planner I/II - accepting
applications; closes 6/2/25
Utilities Business
Manager -
accepting
applications; open
until filled; using
search firm that
specializes in
Utilities positions
Police Records Technician I
(2) - one candidate in
background check; one
candidate being scheduled
for department assessment
Utilities
Operations
Manager -
accepting
applications; open
until filled; using
search firm that
specializes in
Utilities positions

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City of Gilroy City Council Page 5 of 9 May 19, 2025
AFSCME, Local 101 Gilroy Police
Officers
Association
(GPOA)
Gilroy
Management
Association
(GMA)
IAFF, Gilroy
Firefighters,
Local 2805
Unrepresented
Employees
Public Safety
Communicator/Trainee (2) -
two candidates in
background phase - reports
under review
Senior Equipment Mechanic
- accepting applications;
closes 6/9/25
Turnover Data
The chart below summarizes turnover data by bargaining unit for calendar year 2024:

Turnover
Type/BU
AFSCME GPOA GMA Fire Local
2805
Unrep
EEs
Totals
Retirement 1 2 1 3 1 8
Voluntary
Resignation
2 1 2 1 1 7
Involuntary
Resignation*
4 0 0 0 1 5
Total 7 3 3 4 3 20
*Includes release from probation, termination, or resign in lieu of release/termination Twenty full-time positions turned over in calendar year 2024. Based on the average number of full-time employees in 2024 (265), the City's 2024 employee turnover rate was about 7.5%. However, only 2.6% is attributable to voluntary turnover such as a resignation to take a position with another employer. 3% of the turnover is due to retirements and 1.9% is tied to involuntary separations such as release from probation, termination, or a resignation in lieu of release/termination.

Recruitment and Retention Efforts:

The Human Resources (HR) Team has implemented various programs and efforts to achieve efficiency, effectiveness, and provide excellent service in the recruitment and selection process. These efforts are summarized below:
• Easy Application Process & Improved Candidate Experience: Gilroy utilizes an online platform for the recruitment process - NeoGov Insight. This software allows the team to organize and track the various steps of the hiring process so there is a smooth process for candidates, hiring managers, and the HR team.

Further, the system offers an easy-to-navigate online system for applicants to submit an online application. Once a candidate establishes a profile in NeoGov,

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the candidate can access it, update it, and use it to apply for additional positions with the City of Gilroy or other agencies using the same system. The system has a built-in communication tool that allows staff to send notifications to candidates at various steps of the process along with reminder notifications. NeoGov is the primary system used by most government agencies so candidates looking for government positions are familiar with the system and can use it with ease. Candidates can set up preferences in their profile to be notified when certain positions are open for recruitment by certain agencies. Further, Gilroy works hard to ensure a positive environment for candidates going through the hiring process steps. We strive to welcome candidates and give them positive encouragement when participating in the hiring process. We make ride-alongs and sit-alongs available for certain positions and encourage candidates to get to know what it would be like to work for the City of Gilroy. At times, an option for a Zoom interview is afforded to candidates when they are unable to take a block of time away from work or when a candidate may have a long distance to travel to Gilroy for an interview.
• Reduced Recruitment Timelines: Each recruitment process has a recruitment plan and schedule with deadlines. The HR team really considers how long certain positions need to be posted to achieve a high-quality applicant pool. For some positions, HR has been able to reduce the posting period down to fiveseven days while achieving a strong applicant pool. Further, for many positions, written tests have been eliminated in favor of interviews and practical exercises and Gilroy uses various schools and testing centers where candidates can schedule tests to fit their schedule. As an example, the Peace Officer Standards & Training (POST) written exam and agility exam for Police Officers is offered at various community colleges in the region on a variety of dates. Candidates applying for Police Officer can schedule the exams when they best fit their schedule and then upload their test results via the NeoGov Insight portal. The portal is accessible 24/7 so candidates can complete the application process at any time and/or respond to any emails or notifications at any time. By planning out the recruitment schedule in advance, candidates can plan in advance for interview dates and hiring managers can block calendars to ensure we keep the process moving forward. Gilroy has an expedited re-hire process for seasonal/summer recreation employees, many of whom are college students that return to Gilroy for the summer months. Gilroy has also had some employees who left employment to try another job or due to relocation and have returned to City of Gilroy employment via an expedited rehire process. • Review of Job Classifications & Recruitment Request Forms: Prior to commencing a recruitment process, HR works with the hiring manager to review the job description to ensure duties and requirements are current. Having an accurate job description will help match qualified candidates for the position.

Further, hiring managers can access an easy-to-fill-out Recruitment Request Form to capture all information needed to start the recruitment process. HR works with the hiring manager to identify the added value/ideal candidate qualifications and skills sets to target in the recruitment. First-year projects are

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identified when appropriate to market the job and the cool things the new hire will get to work on if hired to the position.
• Advertising & Outreach: HR posts jobs in various locations to attract candidates. The most popular places candidates find out about our jobs is the City of Gilroy website, City of Gilroy social media, GovernmentJobs.com which is a site tied to the NeoGov Insight applicant tracking system, and referral by current and former City of Gilroy employees. In addition, ads are posted on various job boards tied to professional organizations related to the position as well as sites that outreach to underrepresented groups. Gilroy's Communications & Engagement Team also market Gilroy's jobs on various social media sites which seems to really increase our local applicant pool. Lastly, from time-to-time members of the Gilroy team (HR and Departments) attend job fairs and other events to market the City of Gilroy as an employer.
• Employee Referral Program: Gilroy recently implemented an Employee Referral Program to encourage our employees to take part in the recruitment process by identifying strong candidates for positions across all city departments.

Employees can earn $500 if a referred candidate is hired to a full-time position and another $500 if the candidate passes probation. Starting with July 1, 2023, twelve employees have received referral bonuses. This new program was received positively by employees.
• Use of Search Firms: When needed, the City of Gilroy utilizes the assistance of search firms for hard-to-fill positions and/or high-level management positions. For example, a search firm assisted us in finding our new Fire Chief who began work on May 5th as well as our Public Works Director who began work on March 3rd.

Currently, a search firm with specific experience in the Utilities industry is assisting with filling three management positions in the Utilities Department.

Search firms selected have a strong network of candidates and teams that dedicate themselves to marketing and outreach positions. As you know, our City Engineer recently left for another position and, because he had not worked for the City of Gilroy for one year, the search firm is conducting a new search free of charge as they offer a one-year guarantee.
• Competitive Wages & Benefits: Through our collective bargaining process, Gilroy strives to offer competitive salaries and benefits that will attract and retain high-quality employees.
• Positive Work Environment/Culture & Quality of Life: Gilroy offers a positive work environment for our employees where we encourage employees to take ownership of their position, provide excellent customer service, have fun doing their job, and continuously learn and grow in their role and prepare for their next role. The positive culture is something that requires continuous care and work by everyone on the Gilroy team. This is a priority in the organization and starts at the top and also starts day one with the onboarding process. The team in all departments works hard to ensure warm welcome and training for new hires. In

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City of Gilroy City Council Page 8 of 9 May 19, 2025
addition, ongoing training and development opportunities, stretch assignments, and rotation of work are some of the ways Gilroy works on retaining employees once hired. Efforts are not one size fits all and managers adjust their efforts based on the employee's goals and capabilities. Fun events organized by the Employee Appreciation Committee build camaraderie across all city departments. Lastly, with employees being our most important asset to delivering top-notch services to the community, we recognize that employees are "human" and are looking for ways to balance work-life and home-life so things like alternate work schedules are very valuable to our employees and aid with retention. Offering wellness programs and benefits that allow employees to care for their minds and bodies is another way we improve the quality of life for Gilroy employees. Specialized public safety employee wellness programs, our Annual Health & Wellness Fair, and our employee assistance program offerings all contribute to this effort. A positive and supportive work environment can be just as important as competitive wages.
• Building Our Bench: Given the challenges of filling certain jobs and the smaller available workforce, we have implemented programs to build our own bench. A couple of examples are our college summer internship program, which has led to future new hires. A couple of examples include a Communications Summer College Intern who is now one of our 911 Dispatchers and a Youth Task Force Summer College Intern from two years ago who was just hired full-time after completing her bachelor's degree. This former intern began the police academy on May 9th and will be out there serving the community as a Police Officer in about twenty weeks. In addition, we have a part-time Police Cadet Program that recently started, which offers a paid part-time position to students working on a college degree with the goal of them becoming future full-time Gilroy Police Department employees. The skills learned as a part-time Police Cadet will prepare the employee for a wide variety of job opportunities. Lastly, through stretch assignments, training programs, leadership academies, and mentorship, employees have the opportunity to advance to various positions within the organization. Just this week, three employees were promoted to the position of Police Corporal. Earlier this month, an employee was promoted to an Analyst position, and a couple months ago three Firefighters were promoted to the rank of Fire Engineer. There are many additional examples of awesome Gilroy employees who have worked hard to advance and take on new challenges in service to the Gilroy community.

Even with all the efforts described above, there is always more to do to recruit and retain great employees. Competition for qualified applicants in certain fields such as engineering, utilities, police, dispatching, paramedicine, planning, and high-level management remains a challenge and can lead to longer vacancies. Many government agencies are experiencing challenges in attracting interest in public sector careers, highlighting an important opportunity to inspire and engage future talent. Human Resources appreciates the strong partnership and collaboration with departments and hiring managers as hiring new employees to serve the community is a very important function and directly correlates to delivery of service. Recruitment and retention are a

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City of Gilroy City Council Page 9 of 9 May 19, 2025
continuous effort not only by human resources but by all managers and employees throughout the organization.

FISCAL IMPACT/FUNDING SOURCE
There is no fiscal impact tied to this report other than the staff time to prepare the report.

PUBLIC OUTREACH
Out of an abundance of caution, a formal public hearing notice was prepared and posted in the local newspaper. However, staff have confirmed with legal counsel that a formal public hearing notice is not required in the future as this is an informational report with no formal action recommended.

SHARE THIS: Date Published: 09/23/2024 09:00 PM
AB-2561 Local public employees: vacant positions. (2023-2024) Assembly Bill No. 2561
CHAPTER 409
An act to add Section 3502.3 to the Government Code, relating to public employment. [ Approved by Governor September 22, 2024. Filed with Secretary of State September 22, 2024. ]

LEGISLATIVE COUNSEL'S DIGEST
AB 2561, McKinnor. Local public employees: vacant positions.

Existing law, the Meyers-Milias-Brown Act (act), authorizes local public employees, as defined, to form, join, and participate in the activities of employee organizations of their own choosing for the purpose of representation on matters of labor relations. The act requires the governing body of a public agency to meet and confer in good faith regarding wages, hours, and other terms and conditions of employment with representatives of recognized employee organizations and to consider fully presentations that are made by the employee organization on behalf of its members before arriving at a determination of policy or course of action.

This bill would, as specified, require a public agency to present the status of vacancies and recruitment and retention efforts at a public hearing at least once per fiscal year, and would entitle the recognized employee organization to present at the hearing. If the number of job vacancies within a single bargaining unit meets or exceeds 20% of the total number of authorized full-time positions, the bill would require the public agency, upon request of the recognized employee organization, to include specified information during the public hearing. By imposing new duties on local public agencies, the bill would impose a state-mandated local program. The bill would also include related legislative findings.

The California Constitution requires local agencies, for the purpose of ensuring public access to the meetings of public bodies and the writings of public officials and agencies, to comply with a statutory enactment that amends or enacts laws relating to public records or open meetings and contains findings demonstrating that the enactment furthers the constitutional requirements relating to this purpose.

This bill would make legislative findings to that effect.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement shall be made pursuant to these statutory provisions for costs mandated by the state pursuant to this act, but would recognize that a local agency or school district may pursue any available remedies to seek reimbursement for these costs.

Vote: majority Appropriation: no Fiscal Committee: yes Local Program: yes THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

SECTION 1. The Legislature finds and declares as follows:

Home Bill Information California Law Publications Other Resources My Subscriptions My Favorites

(a) Job vacancies in local government are a widespread and significant problem for the public sector affecting occupations across wage levels and educational requirements.
(b) High job vacancies impact public service delivery and the workers who are forced to handle heavier workloads, with understaffing leading to burnout and increased turnover that further exacerbate staffing challenges. (c) There is a statewide interest in ensuring that public agency operations are appropriately staffed and that high vacancy rates do not undermine public employee labor relations.

SEC. 2. Section 3502.3 is added to the Government Code, to read:
3502.3. (a) (1) A public agency shall present the status of vacancies and recruitment and retention efforts during a public hearing before the governing board at least once per fiscal year. (2) If the governing board will be adopting an annual or multiyear budget during the fiscal year, the presentation shall be made prior to the adoption of the final budget.
(3) During the hearing, the public agency shall identify any necessary changes to policies, procedures, and recruitment activities that may lead to obstacles in the hiring process. (b) The recognized employee organization for a bargaining unit shall be entitled to make a presentation at the public hearing at which the public agency presents the status of vacancies and recruitment and retention efforts for positions within that bargaining unit.
(c) If the number of job vacancies within a single bargaining unit meets or exceeds 20 percent of the total number of authorized full-time positions, the public agency shall, upon request of the recognized employee organization, include all of the following information during the public hearing:
(1) The total number of job vacancies within the bargaining unit. (2) The total number of applicants for vacant positions within the bargaining unit. (3) The average number of days to complete the hiring process from when a position is posted. (4) Opportunities to improve compensation and other working conditions. (d) This section shall not prevent the governing board from holding additional public hearings about vacancies. (e) The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application. (f) For purposes of this section, “recognized employee organization” has the same meaning as defined in subdivision (a) of Section 3501.

SEC. 3. The Legislature finds and declares that Section 2 of this act, which adds Section 3502.3 to the Government Code, furthers, within the meaning of paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the purposes of that constitutional section as it relates to the right of public access to the meetings of local public bodies or the writings of local public officials and local agencies. Pursuant to paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the Legislature makes the following findings:

It is in the public interest, and it furthers the purposes of paragraph (7) of subdivision (b) of Section (3) of Article I of the California Constitution, to ensure that information concerning public agency employment is available to the public.

SEC. 4. No reimbursement shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code for costs mandated by the state pursuant to this act. It is recognized, however, that a local agency or school district may pursue any remedies to obtain reimbursement available to it under Part 7 (commencing with Section 17500) and any other law.

21791321.1
City of Gilroy

STAFF REPORT
Agenda Item Title: Sixth Public Hearing Regarding the City's Transition from an At-Large to a District-Based Elections
System for the Purpose of Receiving the
Demographer’s Presentation on the Transition
Process and Selecting a Final District Elections Map
from the Remaining Two Draft Map – Maps D and F;
as well as Determining the Order of Elections – that is - Which Three Districts Will Be on the Ballot in the
November 2026 Election and Which Three Districts
Will Be on the 2028 Ballot; Determining Whether
Candidates for City Council Must be Residents and
Electors of the District in Which They Seek Election
for Any Period of Time Prior to Filing Their
Nomination Papers and Declaring Their Intent to Run;
and Introduce Ordinance of the City Council of the
City of Gilroy declaring henceforth that City Council
elections will be districted, adopting a districting
map, declaring the order of elections, and potentially
imposing a residency requirement on Council
candidates
This Public Hearing item shall be heard at 7:00 p.m.
or soon thereafter
Meeting Date: May 19, 2025
From: Andrew Faber, City Attorney
Department: City Attorney
Submitted By: Andrew Faber, City Attorney
Prepared By: Andrew Faber, City Attorney
STRATEGIC PLAN GOALS Not Applicable

RECOMMENDATION
That the City Council:

1. Select either Draft Map D or Draft Map F as the official district map.

2. Determine which districts will be on the ballot in 2026 and which in 2028.

21791321.1

3. If desired by the Council, impose a residency requirement of no greater than 30 days upon candidates prior to filing their nomination papers.

4. Motion to read the ordinance by title only and waive further reading.

5. Introduce an Ordinance of the City Council of the City of Gilroy officially declaring that henceforth, the City Council elections will be districted, including the determinations made regarding items 1-3 above.

BACKGROUND
The City of Gilroy ("City") currently has an at-large election system, where each of the City's six Councilmembers are elected to staggered four-year terms by voters throughout the City. The mayor is also elected at-large to a four-year term.

1. Letter Alleging Violation of the CVRA and the City’s Resolution of Intent to Transition from At-Large to District-Based Elections.

On December 16, 2024, the City received a letter alleging a violation of the California Voting Rights Act (“CVRA”). The letter asserts that the City is in violation of the CVRA because the City's councilmember elections are at-large as opposed to by district and there exists racial polarization and vote dilution. On February 24, 2025, the City Council adopted a resolution declaring its intent to transition to a district-based electoral system commencing with the November 2026 Election.

2. Public Hearings, Public Input, and Community Workshops.

On March 3, 2025, and March 17, 2025, the City Council held the first and second of five public hearings required for the City’s transition to by-district elections. Public Hearings Nos. 1 and 2 were held prior to any draft maps being drawn. Redistricting Partners, the City’s retained demographer, made presentations at both public hearings regarding the CVRA, the transition process from at-large to district elections, the potential composition and number of districts, as well as the public input process.

Members of the public provided input at both hearings regarding communities of interest in and the various attributes of the City of Gilroy to aid in the districting process. At the close of the March 17th hearing, having considered the public's input and the presentation by Redistricting Partners, the City Council provided direction to the demographer to begin drawing draft maps for a by-district electoral system comprised of six districts and an at-large mayor.

In addition, on March 25 and March 29, 2025, the City hosted two workshops—offering childcare and language translation — where Redistricting Partners gave a presentation on districting, facilitated a Q&A session, engaged the public in map-drawing, and gathered additional public input.

On April 7, 2025, Public Hearing No. 3 was held to receive public and City Council feedback on the first set of draft maps. After considering this public input and the presentation by the demographer, the City Council provided direction to Redistricting Partners on proposed revisions to the draft maps to be considered and new maps drawn.

21791321.1
On April 21, 2025, Public Hearing No. 4 was held to receive public and City Council feedback on the second set of draft maps. After considering this public input and the presentation by the demographer, the City Council provided direction to Redistricting Partners on proposed revisions to the draft maps to be considered and new maps drawn.

Two weeks later, on May 5, 2025, Public Hearing No. 5 was held to receive public and City Council feedback on the second set of draft maps. After considering this public input and the presentation by the demographer, the City Council provided direction to Redistricting Partners on the final two maps for consideration at the final public hearing No. 6.

3. Draft Map Development.

Based on public input and City Council feedback at (the prior hearings and) the May 5 Public Hearing No. 5, the City Council selected two draft maps (Draft D and Draft F) for final consideration at the May 19, 2025 Public Hearing. These draft maps were designed to incorporate and address the public’s concerns and the direction provided by the City Council, all the while ensuring that the draft maps comply with both the CVRA and the Federal Voting Rights Act, as well as the sound map drawing/ demographic principles and meeting the requirements of the Fair Maps Act. These draft maps incorporate the underlying Census tract geography to establish the boundaries of individual City Council districts. In drawing these maps, every care was taken to honor neighborhoods and communities of interest as identified through public input.

Furthermore, each of the maps complies with the 10% total deviation requirement between the largest to smallest district by population. Further explanation of the public input received and analysis that went in to drafting each of these draft maps will be provided by Redistricting Partners on May 19, 2025, at Public Hearing No. 6. These map drafts have been posted on the City's website since Thursday, May 8, 2025.

On May 19, 2025, Public Hearing No. 6, draft Maps D and F will be considered by the City Council.1 One map will be selected for adoption as the six-district electoral map for City Council elections. The public is again invited to provide their input on these draft maps before the City Council selects one of the maps.

4. Other Matters/ Order of Elections & Residency Requirements.

In addition to the consideration of maps, the City Council also must determine the order of elections – that is, which three districts will be on the ballot in November of 2026, and which three districts will be on the ballot in November of 2028, as City Council terms are staggered under state law. The City Council will make this decision once it has selected a final map. The decision on the order of elections must be made “in the spirit of the California Voting Rights Act,” which aims to increase public participation in the electoral process as well as the ability of minority voters to elect candidates of their choice. In 1 If the Council makes or directs any changes to the map drafts, that new map may not be selected as the final map on May 19, 2025. Rather, the new map draft with changes must be posted to the City's districting website for 7 days before any action is taken.

21791321.1
making this decision, the City Council may consider any number of factors including but not limited to projected turnout in the 2026 and 2028 elections, where the current atlarge incumbents live vis a vis the new districts, which of the current at-large City councilmembers' terms are ending, the composition of each district, continuity, and of course the public input that Council receives on these questions.

The City Council may also determine whether candidates for City Council must be residents of the district in which they seek election for any period of time prior to filing their nomination papers. Pursuant to Government Code section 34882, a candidate running for a city councilmember position is not eligible to hold that office unless they reside in the geographical area making up the district from which they are elected at the time their nomination papers are issued. There is no requirement related to a minimum residency period, and the City is not required to impose such a requirement. In fact, neighboring cities have taken different positions on this issue – some have imposed a 30-day residency requirement – the legal maximum in California – while others have imposed no minimum residency requirement. The City currently has no minimum residency requirement, and the City Council invites the public to provide their input on this topic.

The proposed ordinance for City Council consideration is attached to this staff report.

This ordinance may be used for any map and the sequence of elections selected by the City Council. This ordinance will be introduced (the “first reading”) on May 19, 2025, and adoption (“the second reading”) is scheduled for the June 2, 2025 City Council meeting.

FISCAL IMPACT/FUNDING SOURCE
There is no fiscal impact to hold this meeting as the City has already retained the services of outside legal counsel and a demographer to assist in the transition to district-based elections.

ENVIRONMENTAL REVIEW
None.

PUBLIC OUTREACH
Throughout the process in this transition to district elections, the City has engaged in a robust effort to encourage participation and inclusivity as a part of the process.

The City has also provided multiple ways for the public to submit feedback through inperson and online formats such as map drawing, fillable Communities of Interest forms, and submission of public comment. Members of the public have been encouraged to regularly visit the City’s districting webpage at:
https://www.cityofgilroy.org/1069/Transition-to-District-Based-Elections Members of the public can access all meeting materials as well as provide input on the districting process and draft maps via the City’s website.

21791321.1

PREVIOUS COUNCIL CONSIDERATION
During the regular meeting of February 24, 2025, the City Council adopted a Resolution declaring its Intent to Transition to District-Based Elections pursuant to California Elections Code Section 10010, with the transition taking effect for the November 2026 and 2028 Elections.

During the regular meeting of March 3, 2025, the City Council held its first public hearing – Public Hearing No. 1 - related to the transition to district-based elections.

There, the City's demographer, Redistricting Partners, made a presentation on the CVRA and the transition process for preparing district boundaries.

On March 17, 2025, the City Council held Public Hearing No. 2 at which the City’s demographer, Redistricting Partners, made a second presentation on the transition process for preparing district boundaries and how to use the City’s online map-drawing tool, “Districtr.” The City Council also determined on that date that the City of Gilroy will continue to have six City Council members – now in six distinct districts – and an atlarge mayor.

On March 25 and March 29, 2025, the City hosted two workshops—offering childcare and language interpretation—where Redistricting Partners gave a presentation on districting, facilitated a Q&A session, engaged the public in map-drawing, and gathered further public input.

On April 7, 2025, the City Council held Public Hearing No. 3 to receive public and City Council feedback on this first set of draft maps. The City Council, after considering public input, provided direction to Redistricting Partners on proposed map revisions and new maps to be drawn for Public Hearing No. 4 on April 21, 2025.

On April 21, 2025, the City Council held Public Hearing No. 4 to receive public and City Council feedback on the second set of draft maps. The City Council, after considering public input, provided direction to Redistricting Partners on proposed map revisions and new maps to be drawn for Public Hearing No. 5 on May 5, 2025.

Two weeks later, on May 5, 2025, Public Hearing No. 5 was held was held to receive public and City Council feedback on the second set of draft maps. After considering this public input and the presentation by the demographer, the City Council provided direction to Redistricting Partners on the final two draft maps for consideration – Draft Maps D and F - at the final Public Hearing No. 6.

Attachments:

1. Draft Map D

2. Draft Map F

3. Draft Ordinance No. 2025-XXX

City of Gilroy
Draft D: JH05 modified

City of Gilroy
Draft D: JH05 modified
1 2 3 4 5 6
Population 10,227 10,079 10,058 9,484 10,092 9,752
Deviation 278 130 109 -465 143 -197
Deviation % 2.8% 1.3% 1.1% -4.7% 1.4% -2.0%
Other 2,304 4,860 3,247 1,218 2,532 4,535
Other % 22.5% 48.2% 32.3% 12.8% 25.1% 46.5%
Latino 6,396 3,637 6,078 7,875 6,647 3,126
Latino % 62.5% 36.1% 60.4% 83.0% 65.9% 32.1%
Asian 1,260 1,371 546 251 754 1,864
Asian % 12.3% 13.6% 5.4% 2.6% 7.5% 19.1%
Black 267 211 187 140 159 227
Black % 2.6% 2.1% 1.9% 1.5% 1.6% 2.3%
2020 Census
1 2 3 4 5 6
Total CVAP 5,922 6,820 6,686 3,618 5,544 7,095
Other CVAP 1,325 3,369 2,183 795 1,925 3,548
Other CVAP % 22.4% 49.4% 32.7% 22.0% 34.7% 50.0%
Latino CVAP 3,891 2,438 3,879 2,488 2,808 2,380
Latino CVAP % 65.7% 35.7% 58.0% 68.8% 50.6% 33.5%
Asian CVAP 552 989 428 202 648 940
Asian CVAP % 9.3% 14.5% 6.4% 5.6% 11.7% 13.2%
Black CVAP 154 24 196 133 163 227
Black CVAP % 2.6% 0.4% 2.9% 3.7% 2.9% 3.2%
Citizen Voting Age Population (CVAP)

City of Gilroy
Draft D: JH05 modified
District 1
Other % Latino % Asian % Black %
2020 Census
Other % Latino % Asian % Black %
Citizen Voting Age Population
Population Deviation Deviation % Other Other % Latino Latino % Asian Asian % Black Black % 10,227 278 2.8% 2,304 22.5% 6,396 62.5% 1,260 12.3% 267 2.6% Total CVAP Other CVAP Other CVAP % Latino CVAP Latino CVAP % Asian CVAP Asian CVAP % Black CVAP Black CVAP % 5,922 1,325 22.4% 3,891 65.7% 552 9.3% 154 2.6%

City of Gilroy
Draft D: JH05 modified
District 2
Other % Latino % Asian % Black %
2020 Census
Other % Latino % Asian % Black %
Citizen Voting Age Population
Population Deviation Deviation % Other Other % Latino Latino % Asian Asian % Black Black % 10,079 130 1.3% 4,860 48.2% 3,637 36.1% 1,371 13.6% 211 2.1% Total CVAP Other CVAP Other CVAP % Latino CVAP Latino CVAP % Asian CVAP Asian CVAP % Black CVAP Black CVAP % 6,820 3,369 49.4% 2,438 35.7% 989 14.5% 24 0.4%

City of Gilroy
Draft D: JH05 modified
District 3
Other % Latino % Asian % Black %
2020 Census
Other % Latino % Asian % Black %
Citizen Voting Age Population
Population Deviation Deviation % Other Other % Latino Latino % Asian Asian % Black Black % 10,058 109 1.1% 3,247 32.3% 6,078 60.4% 546 5.4% 187 1.9% Total CVAP Other CVAP Other CVAP % Latino CVAP Latino CVAP % Asian CVAP Asian CVAP % Black CVAP Black CVAP % 6,686 2,183 32.7% 3,879 58.0% 428 6.4% 196 2.9%

City of Gilroy
Draft D: JH05 modified
District 4
Other % Latino % Asian % Black %
2020 Census
Other % Latino % Asian % Black %
Citizen Voting Age Population
Population Deviation Deviation % Other Other % Latino Latino % Asian Asian % Black Black % 9,484 -465 -4.7% 1,218 12.8% 7,875 83.0% 251 2.6% 140 1.5% Total CVAP Other CVAP Other CVAP % Latino CVAP Latino CVAP % Asian CVAP Asian CVAP % Black CVAP Black CVAP % 3,618 795 22.0% 2,488 68.8% 202 5.6% 133 3.7%

City of Gilroy
Draft D: JH05 modified
District 5
Other % Latino % Asian % Black %
2020 Census
Other % Latino % Asian % Black %
Citizen Voting Age Population
Population Deviation Deviation % Other Other % Latino Latino % Asian Asian % Black Black % 10,092 143 1.4% 2,532 25.1% 6,647 65.9% 754 7.5% 159 1.6% Total CVAP Other CVAP Other CVAP % Latino CVAP Latino CVAP % Asian CVAP Asian CVAP % Black CVAP Black CVAP % 5,544 1,925 34.7% 2,808 50.6% 648 11.7% 163 2.9%

City of Gilroy
Draft D: JH05 modified
District 6
Other % Latino % Asian % Black %
2020 Census
Other % Latino % Asian % Black %
Citizen Voting Age Population
Population Deviation Deviation % Other Other % Latino Latino % Asian Asian % Black Black % 9,752 -197 -2.0% 4,535 46.5% 3,126 32.1% 1,864 19.1% 227 2.3% Total CVAP Other CVAP Other CVAP % Latino CVAP Latino CVAP % Asian CVAP Asian CVAP % Black CVAP Black CVAP % 7,095 3,548 50.0% 2,380 33.5% 940 13.2% 227 3.2%

City of Gilroy
Draft F: "Fair-1" modification

City of Gilroy
Draft F: "Fair-1" modification
1 2 3 4 5 6
Population 9,851 9,847 9,557 10,225 10,543 9,669
Deviation -98 -102 -392 276 594 -280
Deviation % -1.0% -1.0% -3.9% 2.8% 6.0% -2.8%
Other 4,778 2,637 4,496 1,798 3,164 1,823
Other % 48.5% 26.8% 47.0% 17.6% 30.0% 18.9%
Latino 3,513 6,098 2,980 7,572 6,790 6,806
Latino % 35.7% 61.9% 31.2% 74.1% 64.4% 70.4%
Asian 1,349 907 1,849 650 470 821
Asian % 13.7% 9.2% 19.3% 6.4% 4.5% 8.5%
Black 211 205 232 205 119 219
Black % 2.1% 2.1% 2.4% 2.0% 1.1% 2.3%
2020 Census
1 2 3 4 5 6
Total CVAP 6,700 5,968 7,123 4,310 6,281 5,303
Other CVAP 3,316 1,415 3,667 1,208 2,562 977
Other CVAP % 49.5% 23.7% 51.5% 28.0% 40.8% 18.4%
Latino CVAP 2,386 3,823 2,307 2,499 3,155 3,714
Latino CVAP % 35.6% 64.1% 32.4% 58.0% 50.2% 70.0%
Asian CVAP 974 603 924 426 388 444
Asian CVAP % 14.5% 10.1% 13.0% 9.9% 6.2% 8.4%
Black CVAP 24 127 225 177 176 168
Black CVAP % 0.4% 2.1% 3.2% 4.1% 2.8% 3.2%
Citizen Voting Age Population (CVAP)

City of Gilroy
Draft F: "Fair-1" modification
District 1
Other % Latino % Asian % Black %
2020 Census
Other % Latino % Asian % Black %
Citizen Voting Age Population
Population Deviation Deviation % Other Other % Latino Latino % Asian Asian % Black Black % 9,851 -98 -1.0% 4,778 48.5% 3,513 35.7% 1,349 13.7% 211 2.1% Total CVAP Other CVAP Other CVAP % Latino CVAP Latino CVAP % Asian CVAP Asian CVAP % Black CVAP Black CVAP % 6,700 3,316 49.5% 2,386 35.6% 974 14.5% 24 0.4%

City of Gilroy
Draft F: "Fair-1" modification
District 2
Other % Latino % Asian % Black %
2020 Census
Other % Latino % Asian % Black %
Citizen Voting Age Population
Population Deviation Deviation % Other Other % Latino Latino % Asian Asian % Black Black % 9,847 -102 -1.0% 2,637 26.8% 6,098 61.9% 907 9.2% 205 2.1% Total CVAP Other CVAP Other CVAP % Latino CVAP Latino CVAP % Asian CVAP Asian CVAP % Black CVAP Black CVAP % 5,968 1,415 23.7% 3,823 64.1% 603 10.1% 127 2.1%

City of Gilroy
Draft F: "Fair-1" modification
District 3
Other % Latino % Asian % Black %
2020 Census
Other % Latino % Asian % Black %
Citizen Voting Age Population
Population Deviation Deviation % Other Other % Latino Latino % Asian Asian % Black Black % 9,557 -392 -3.9% 4,496 47.0% 2,980 31.2% 1,849 19.3% 232 2.4% Total CVAP Other CVAP Other CVAP % Latino CVAP Latino CVAP % Asian CVAP Asian CVAP % Black CVAP Black CVAP % 7,123 3,667 51.5% 2,307 32.4% 924 13.0% 225 3.2%

City of Gilroy
Draft F: "Fair-1" modification
District 4
Other % Latino % Asian % Black %
2020 Census
Other % Latino % Asian % Black %
Citizen Voting Age Population
Population Deviation Deviation % Other Other % Latino Latino % Asian Asian % Black Black % 10,225 276 2.8% 1,798 17.6% 7,572 74.1% 650 6.4% 205 2.0% Total CVAP Other CVAP Other CVAP % Latino CVAP Latino CVAP % Asian CVAP Asian CVAP % Black CVAP Black CVAP % 4,310 1,208 28.0% 2,499 58.0% 426 9.9% 177 4.1%

City of Gilroy
Draft F: "Fair-1" modification
District 5
Other % Latino % Asian % Black %
2020 Census
Other % Latino % Asian % Black %
Citizen Voting Age Population
Population Deviation Deviation % Other Other % Latino Latino % Asian Asian % Black Black % 10,543 594 6.0% 3,164 30.0% 6,790 64.4% 470 4.5% 119 1.1% Total CVAP Other CVAP Other CVAP % Latino CVAP Latino CVAP % Asian CVAP Asian CVAP % Black CVAP Black CVAP % 6,281 2,562 40.8% 3,155 50.2% 388 6.2% 176 2.8%

City of Gilroy
Draft F: "Fair-1" modification
District 6
Other % Latino % Asian % Black %
2020 Census
Other % Latino % Asian % Black %
Citizen Voting Age Population
Population Deviation Deviation % Other Other % Latino Latino % Asian Asian % Black Black % 9,669 -280 -2.8% 1,823 18.9% 6,806 70.4% 821 8.5% 219 2.3% Total CVAP Other CVAP Other CVAP % Latino CVAP Latino CVAP % Asian CVAP Asian CVAP % Black CVAP Black CVAP % 5,303 977 18.4% 3,714 70.0% 444 8.4% 168 3.2%

ORDINANCE NO. 2025-XX

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GILROY

TO ESTABLISH THE ELECTION OF MEMBERS OF THE CITY

COUNCIL BY SIX DISTRICTS, ESTABLISH THE BOUNDARIES,

IDENTIFICATION NUMBERS, AND THE ELECTION ORDER OF

EACH DISTRICT, ESTABLISH A RESIDENCY REQUIREMENT TO

SEEK A COUNCIL SEAT FROM EACH DISTRICT, AND RELATED

ACTIONS
WHEREAS, the City of Gilroy has historically used an at-large method of election, which is consistent with the guarantees of Section 7 of Article 1 and of Section 2 of Article II of the California Constitution; and
WHEREAS, the City's at-large electoral system elects six at-large members to the City Council and an at-large mayor to staggered four-year terms; and WHEREAS, California Government Code Section 34886 permits the City Council to change the method of election by ordinance to a “by-district” system in which each member of the City Council is elected only by the voters in the district in which the candidate resides, in accordance with California Government Code Section 34871; and WHEREAS, a by-district system can also be consistent with the guarantees of Section 7 of Article I and of Section 2 of Article II of the California Constitution; and WHEREAS, on February 24, 2025, the City Council adopted Resolution No. 2025-07 which initiated the process of establishing a by-district election system to replace the current at-large system commencing with the 2026 election; and WHEREAS, under the provisions of California Elections Code Section 10010, a city that changes from an at-large city council method of election to a by-district city council method of election must hold a total of five public hearings, which includes at least two (2) public hearings regarding potential voting district boundaries prior to the release and consideration of any draft voting district maps, and two (2) public hearings following the release of draft voting district maps; and / / /

WHEREAS, on March 3, 2025 and March 17, 2025, pursuant to California Elections Code Section 10010(a)(1), the City Council held public hearings where the public was invited to provide input regarding the composition of the City’s voting districts before any draft maps were drawn, and the City Council of the City of Gilroy considered and discussed the same; and
WHEREAS, at the public hearing of the City Council on March 17, 2025, the City Council also invited input on whether to have six (6) districts and an at-large directlyelected Mayor, or seven (7) districts with the Mayor selected by the City Council on a rotating basis, and voted to proceed with a six-district system with an at-large directly elected Mayor, directing its demographer to draft maps that divide the City into six (6) districts in preparation for the April 7, 2025 public hearing; and WHEREAS, on April 7, 2025, April 21 2025, and May 5, 2025 pursuant to California Elections Code Section 10010(a)(2), the City Council held public hearings where the public was invited to provide input regarding the content of the draft maps that had been released and published at least seven (7) days before each public hearing and the proposed sequence of the elections, and the City Council of the City of Gilroy considered and discussed the same; and
WHEREAS, at its public hearing on April 7, 2025, the City Council reviewed twenty-four draft maps prepared by Redistricting Partners based on public input and direction received at the March 17, 2025, public hearing, and provided direction and proposed revisions regarding the draft maps and new maps; and WHEREAS, at its public hearing on April 21, 2025, the City Council reviewed draft maps that had previously been submitted and created by the public and/ or created by Redistricting Partners, and provided further direction on changes to the boundaries in these draft maps and also drew additional draft maps for consideration; and WHEREAS, at its public hearing on May 5, 2025, the City Council selected Map D and Map F as the final maps – one of which would be selected at the May 19, 2025 Public Hearing – and noted that it would take up the questions on the order of elections

(that is, which three new districts would be on the 2026 ballot and which three districts would be on the 2028 ballot) and whether candidates running for City Council must be residents of the district in which they seek election or any period of time prior to filing their nomination paper; and
WHEREAS, at its public hearing on May 19, 2025, the City Council selected Map ____ as the final map to serve the purposes and objectives of the California Voting Rights Act to increase participation in the electoral process and to enable minority voters to elect candidates of their choice, determined the identification numbers for the districts [if applicable], identified Districts #, #, and # as those districts that would select City Council candidates in in 2026, and identified Districts #, #, and # as those districts that would select City Council candidates in 2028; and
WHEREAS, at its public hearing on May 19, 2025, the City Council determined that candidates running for City Council must be residents of the district in which they seek election for at least thirty (30) days prior to filing their nomination papers; and WHEREAS, these actions by the City Council do not change the schedule or method of selection of the City's at-large mayor; and
WHEREAS, throughout the foregoing process, the City engaged in a significant amount of public outreach and engagement above and beyond the public hearings and other procedures required by California Elections Code Section 10010, including hosting a webpage dedicated to districting; inviting the submission of community of interest forms to allow the public to provide input on keeping communities of interest in single districts to the extent possible; hosting workshops on the Districting process; inviting the submission of draft maps by the public using an interactive mapping tool; and providing districting information to local and to good government, civic engagement, and minority groups active within the City; and,
WHEREAS, the purposes of this Ordinance are to: enact, pursuant to California Government Code Section 34886, an ordinance providing for the election of members of the City Council of the City of Gilroy by district in six (6) single-member districts as reflected in the voting district map referred to as Map ___ and attached as Exhibit A to

this Ordinance, in furtherance of the California Voting Rights Act of 2001 (Chapter 1.5 [commencing with Section 14025] of Division 14 of the Elections Code) to encourage by-district elections as one method to implement the guarantees of Section 7 of Article I and of Section 2 of Article II of the California Constitution; to establish which three districts are on the ballot in 2026 and which three are on the ballot in 2028; and, to establish a thirty-day (30) residency requirement that requires candidates for City Council to live in the district in which they will run for at least 30 days prior to filing their nomination papers.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GILROY DOES HEREBY ORDAIN AS FOLLOWS:

SECTION I
INCORPORATION OF RECITALS:

The recitals set forth above are true and correct and are hereby incorporated herein by this reference as if fully set forth in their entirety.

SECTION II
A. SELECTION OF MAP:

From this time forward and commencing with the November 2026 election, City elections for City Council will be by-district, with the City divided into the six (6) electoral districts with identification numbers for the districts, as shown on the final map selected by the City Council – Map ___, and there is no change to the method or schedule of electing the City's Mayor, who will continue to be elected at-large.

B. ORDER OF ELECTIONS:

Districts #, #, and # will be on the ballot in November of 2026, and Districts #, #, and # will be on the ballot in November of 2028, in order to serve the purposes and objectives of the California Voting Rights Act to increase participation in the electoral process and to enable minority voters to elect candidates of their choice.

C. THIRTY-DAY (30) RESIDENCY REQUIREMENT:

Candidates for City Council must be residents of the district in which they seek election for at least thirty (30) days prior to filing their nomination papers.

SECTION III

SEVERABILITY
If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Gilroy hereby declares that it would have passed and adopted this ordinance, and each section, subsection, sentence, clause, or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, or phrases may be declared invalid or unconstitutional.

SECTION IV

TIMING OF EFFECT
Pursuant to section 608 of the Charter of the City of Gilroy, this ordinance shall be in full force and effect thirty (30) days from and after the date it is adopted.

PASSED AND ADOPTED this June 2, 2025, by the following roll call vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

APPROVED:
______________________________
Greg Bozzo, Mayor
ATTEST:

Bryce Atkins, Acting City Clerk

CERTIFICATE OF THE CLERK
I, BRYCE ATKINS, Acting City Clerk of the City of Gilroy, do hereby certify that the attached Ordinance No. 2025-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, June 2, 2025, with a quorum present.

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

City of Gilroy

STAFF REPORT
Agenda Item Title: Adopt a Resolution Setting the 2025 Fireworks Service Fee
Meeting Date: May 19, 2025
From: Jimmy Forbis, City Administrator
Department: Community Development
Submitted By: Sharon Goei, Community Development Director Prepared By: Jonathan Crick, Fire Marshal
STRATEGIC PLAN GOALS Ensure Neighborhood Equity from City Services

RECOMMENDATION
Adopt a Resolution of the City Council of the City of Gilroy setting the 2025 Fireworks Service Fee at $20,519.70 in accordance with Assembly Bill (AB) 1403.

EXECUTIVE SUMMARY
In accordance with AB 1403, the City of Gilroy may charge fireworks-related fees totaling up to seven percent (7%) of the reported gross sales. The fireworks-related fee is comprised of the fireworks booth permit fees, storage yard permit fee, and the Fireworks Service Fee. For 2024, TNT Fireworks reported $463,610.00 in gross sales, establishing a maximum allowable total fee of $32,452.70. Staff recommends setting the 2025 Fireworks Service Fee at $20,519.70, since the permit fees total $11,933.00 (consisting of $11,466.00 fireworks booth permit fees and $467.00 storage yard permit fee). The Fireworks Service Fee will support public education and awareness campaigns, additional public safety staffing to enforce the provisions of the City Code, and fire suppression efforts that are directly related to safe and sane fireworks.

BACKGROUND
The City of Gilroy regulates the sale and use of safe and sane fireworks under Gilroy City Code Section 10A. The City Code establishes a limit of up to 16 booth permits for

Adopt a Resolution Setting the 2025 Fireworks Service Fee City of Gilroy City Council Page 2 of 3 May 19, 2025
1 9
non-profit organizations. The safe and sane wholesale fireworks vendor monitors the existing organizations as well as manages any potential new applicants for a fireworks booth permit that becomes available. There are 14 fireworks booths for 2025 and safe and sane fireworks will be sold to Gilroy residents from July 1-4.

The methodology for determining the Fireworks Service Fee changed last year because of AB 1403, which became effective January 1, 2024. AB 1403 provides guidance regarding public safety, fireworks enforcement, and fireworks funding. AB 1403 allows a city to charge a fee to help offset the actual and reasonable costs incurred by the City for processing and issuing permits, inspecting fireworks stands, conducting public education and awareness campaigns on fireworks safety, enforcing the provisions of the City Code, and fire operation and suppression efforts that are directly related to safe and sane fireworks. AB 1403 also states that the pro rata share of the cost may not exceed seven percent (7%) of the gross sales of the fireworks sold in the city during the applicable period.

ANALYSIS
The safe and sane wholesale fireworks vendor, TNT Fireworks, reported a total 2024 gross sales in Gilroy of $463,610.00. In accordance with AB 1403, the total amount the City may charge for combined fireworks-related fees in 2025 is seven percent (7%) of the gross sales, which is $32,452.70.

The City processed and issued 2025 permits for TNT Fireworks as follows:
• Fireworks Booth Permit Fee: $819.00 per booth × 14 booths = $11,466.00 • Fireworks Storage Yard Permit Fee: $467.00 for one storage yard • Total permit fees: $11,466.00 + $467.00 = $11,933.00
To comply with the seven percent (7%) cap under AB 1403, the Fireworks Service Fee is calculated as follows: $32,452.70 − $11,933.00 = $20,519.70 Staff recommends setting the 2025 Fireworks Service Fee at $20,519.70. The attached Resolution is to adopt the Fireworks Service Fee for implementing the 2025 fireworks mitigation activities.

ALTERNATIVES
The City Council could choose not to adopt a resolution setting the Fireworks Service Fee. Without this fee, increased enforcement and mitigation efforts may not occur, or may require General Fund support. Staff does not recommend this option.

FISCAL IMPACT/FUNDING SOURCE
Adopting the proposed Fireworks Service Fee will help offset City costs associated with additional public safety staffing to enforce the provisions of the City Code, public education and awareness campaigns, and suppression efforts that are directly related to safe and sane fireworks.

Adopt a Resolution Setting the 2025 Fireworks Service Fee City of Gilroy City Council Page 3 of 3 May 19, 2025
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PUBLIC OUTREACH
If and when adopted, community engagement efforts will be undertaken to conduct public education and awareness campaigns in Gilroy through direct mailings, social media publications, and public postings between the adoption and the July 4th holiday.

NEXT STEPS
If approved, staff would implement the 2025 Fireworks Service Fee and fireworks mitigation activities.

Attachments:

1. Draft Resolution for 2025 Fireworks Service Fee

RESOLUTION NO. 2025-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY
SETTING THE 2025 FIREWORKS SERVICE FEE IN ACCORDANCE
WITH ASSEMBLY BILL 1403
WHEREAS, the City of Gilroy regulates the sale and use of safe and sane fireworks under Chapter 10A of the Gilroy City Code; and WHEREAS, Assembly Bill (AB) 1403, effective January 1, 2024, authorizes cities to require a fee to offset the actual and reasonable costs associated with the regulation and enforcement of fireworks sales and use; and
WHEREAS, AB 1403 establishes that the total of all fireworks-related fees charged by a city shall not exceed seven percent (7%) of the gross sales of fireworks sold in the city during the applicable period; and
WHEREAS, TNT Fireworks, the wholesale safe and sane fireworks vendor in the City of Gilroy, reported gross sales of $463,610.00 for the 2024 sales period; and WHEREAS, seven percent (7%) of the reported gross sales is $32,452.70, which represents the maximum allowable total of fireworks-related fees under AB 1403; and WHEREAS, the City has assessed and collected $11,933.00 in fireworks-related permit fees, which includes $11,466.00 in booth permit fees and $467.00 in storage yard permit fees; and
WHEREAS, the Fireworks Service Fee is the difference between the maximum allowable total fee and the permit fees, totaling $20,519.70; and WHEREAS, the Fireworks Service Fee will be used to support fireworks mitigation activities, such as public education, public safety staffing for enforcement of City Code, and fire suppression efforts directly related to the use of safe and sane fireworks.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Gilroy hereby sets the 2025 Fireworks Service Fee at $20,519.70, in accordance with AB 1403 and the reported gross fireworks sales for 2024 from TNT Fireworks, and directs staff to implement the fireworks mitigation activities.

Resolution No. 2025-XX
2025 Fireworks Service Fee
City Council Regular Meeting | May 19, 2025

PASSED AND ADOPTED this 19th day of May 2025 by the following roll call vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

APPROVED:

______________________________
Greg Bozzo, Mayor
ATTEST:

Bryce Atkins, Acting City Clerk

Resolution No. 2025-XX
2025 Fireworks Service Fee
City Council Regular Meeting | May 19, 2025

CERTIFICATE OF THE CLERK
I, BRYCE ATKINS, Acting City Clerk of the City of Gilroy, do hereby certify that the attached Resolution No. 2025-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, May 19, 2025, with a quorum present.

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

City of Gilroy

STAFF REPORT
Agenda Item Title: Consent the Appointment of Ken Binder (CalPERS Retired Annuitant) as the Interim Police Chief Following Successful Completion of all Peace Officer Standards & Training (POST) Hiring Requirements and Adoption of a Resolution
Approving the Appointment and Employment Agreement
Meeting Date: May 19, 2025
From: Jimmy Forbis, City Administrator
Department: Administrative Services
Submitted by: Jimmy Forbis, City Administrator
Prepared by: LeeAnn McPhillips, Assistant City Administrator/HR Director STRATEGIC PLAN GOALS: Not Applicable

RECOMMENDATION
a) Consent the City Administrator's recommendation to appoint Ken Binder (CalPERS Retired Annuitant) as Interim Police Chief effective upon successful completion of all Peace Officer Standards & Training (POST) Hiring Requirements. b) Adopt a resolution of the City Council of the City of Gilroy approving the appointment of Ken Binder (CalPERS Retired Annuitant) as Interim Police Chief pursuant to Government Code Section 21221(h) and authorizing the City Administrator to execute the employment agreement to include setting the employment start date following successful completion of all POST hiring requirements.

EXECUTIVE SUMMARY
To ensure continuity in the leadership and management of the Police Department, it is recommended that the City Council consent to the appointment of Ken Binder (CalPERS retired annuitant) as Interim Police Chief effective upon successful completion of the Peace Officer Standards & Training (POST) hiring requirements, and approve the resolution consenting to the appointment and authorizing the City Administrator to execute the employment agreement.

BACKGROUND
Due to the upcoming retirement (last day of work May 22, 2025) of Police Chief Pedro Espinoza, the City is in the process of working through the steps to fill the Police Chief position. However, this process will not be complete for a few months due to the remaining steps and the required background process required for external candidates.

Therefore, the city has a need for an Interim Police Chief during this time period.

Retired Santa Clara County Sheriff's Office Undersheriff Ken Binder is available to serve in this leadership position.

Mr. Binder is a California Public Employees’ Retirement System (CalPERS) retired annuitant, having retired in December 2024. He has the education, skills, and experience to hit the ground running and serve as Interim Police Chief pending successful completion of all required Peace Officer Standards & Training (POST) hiring requirements for a sworn peace officer/chief.

Mr. Binder has twenty-seven years of law enforcement experience, twenty-six of which were with the Santa Clara County Sheriff's Office (SCCSO). Mr. Binder rose through the ranks of the SCCSO and was promoted to the position of Undersheriff in 2020 where he oversaw daily operations of the Sheriff's Office and played a key role in the leadership team. He holds a Bachelor of Science in Business Administration with a concentration in Finance from San Jose State University and a Master of Arts in Criminal Justice from Arizona State University. He is a graduate of the FBI National Academy, Class 248.

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 recruitment is underway for the position. The city has already completed many of the steps of the recruitment process and this interim assignment is expected to last a few 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 Police Chief role for the Police Department and as an officer of the city, Ken Binder agrees to perform the following duties related to the Gilroy Police Department:
• Administer and manage comprehensive police services such as the preservation of order, protection of life and property and the enforcement of laws and municipal ordinances, all in a strong partnership with the community, using customer service techniques.
• Formulate and enforce departmental rules, policies and procedures, and maintain effective discipline.

• Manage the selection and assignment of Police Department employees. • Review and approve departmental personnel actions.
• Direct the administration of staff training programs. • Formulate the annual departmental budget, and control budget expenditures. • Prepare regular and requested oral and written reports for presentation to the City Administrator and the City Council.
• Direct the preparation of internal reports, orders and directives. • Direct the preparation of external reports such as criminal statistic reports to the Federal Bureau of Investigation, Department of Justice, and California Highway Patrol.
• Administer the communications operations, records, permits and licensing. • Administer the Law Enforcement Branch of the City’s Emergency Operations Center.
• Coordinate Police service activities with those of other law enforcement and related organizations.
• Confer with attorneys and others in connection with prosecution of law violators, defending and protecting the City against civil liability and administrative personnel practices.
• Attend public administration conferences, meetings, and seminars. • Perform public liaison work to maximize citizen support and to formulate and explain Police policies, programs and activities.
• Perform Police and field duties including but not limited to incident command of major operations.
• Perform other related duties as assigned.

As the Interim Police Chief, Ken Binder will report directly to the City Administrator and shall comply with all City rules, policies, guidelines, regulations, and laws. Mr. Binder will be paid $127.40 per hour with no other benefits or incentives.

ALTERNATIVES
The alternative would be not to approve the interim appointment. The city would then need to alternatively identify someone else to serve in this role 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 $7,000 per month when filled on a full-time basis. Over a three-four-month period, the savings will total approximately $21,000 – $28,000.

NEXT STEPS
Upon Council approval, the City Administrator will direct the completion of the POST hiring requirements which are already underway and, upon successful completion of these requirements, will sign the employment agreement and set the employment start date. In addition, staff will continue to complete the remaining steps of the Police Chief recruitment process until an ongoing appointment is made.

Attachments:

1. Resolution for Interim Appointment and Employment Agreement

2. Exhibit A – Employment Agreement for Ken Binder

RESOLUTION NO. 2025-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF GILROY APPOINTING KEN BINDER AS INTERIM

POLICE CHIEF TO LEAD AND MANAGE THE POLICE

DEPARTMENT 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, Ken Binder retired from California Public Employees’ Retirement System employment on December 31, 2024; and
WHEREAS, Ken Binder has twenty-seven years of municipal public safety experience and most previously served as the Santa Clara County Sheriff’s Office Undersheriff from 2020 - 2024; and WHEREAS, the position of Police Chief will become vacant on May 23, 2025 following the retirement of Pedro Espinoza; and
WHEREAS, the Gilroy City Council desires to consent the City Administrator’s recommendation to appoint retired annuitant Ken Binder to lead and manage the Gilroy Police Department in the position of Interim Police Chief for the City of Gilroy under Government Code Section 21221(h), effective upon successful completion of all Peace Officer Standards & Training (POST) hiring requirements; and
WHEREAS, Ken Binder has extensive experience leading and managing a public safety department and experience with all administrative aspects of leading and managing a California law enforcement department; 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 ongoing regular replacement for the vacant position of Police Chief for the City of Gilroy commences his or her employment or, if earlier, the date that this appointment is terminated by the City or Ken Binder; and WHEREAS, the entire employment agreement between Ken Binder 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

Resolution No. 2025-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY APPOINTING KEN BINDER AS

INTERIM POLICE CHIEF FOR THE GILROY POLICE DEPARMENT AND APPROVING EMPLOYMENT

AGREEMENT
City Council Meeting | May 19, 2025

WHEREAS, the maximum base monthly salary for this position is $22,745.33 and the hourly equivalent is $131.23 and the minimum base monthly salary for this position is $16,559.50 and the hourly equivalent is $95.54; and
WHEREAS, the hourly rate to be paid to Ken Binder will be $127.40; and WHEREAS, Ken Binder 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 Ken Binder as described herein and detailed in the attachment employment agreement and that this appointment is necessary to fill the critically needed position of Interim Police Chief for the City of Gilroy Police Department to provide the specialized skills necessary to lead and manage the City’s police department functions.

3. The City Council hereby authorizes the appointment of Ken Binder to Interim Police Chief effective a date following successful completion of all POST hiring requirements 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 Police Chief for the City of Gilroy commences his or her employment or, if earlier, the date that this appointment is terminated by the City or Ken Binder.

4. The employment agreement with Ken Binder, 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 a date following successful completion of all POST hiring requirements.

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 19th day of May, 2025 by the following roll call vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

Resolution No. 2025-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY APPOINTING KEN BINDER AS

INTERIM POLICE CHIEF FOR THE GILROY POLICE DEPARMENT AND APPROVING EMPLOYMENT

AGREEMENT
City Council Meeting | May 19, 2025

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

APPROVED:

Greg Bozzo, Mayor
ATTEST:
__________________________
Bryce Atkins, Acting City Clerk

EXHIBIT A

RETIRED ANNUITANT EMPLOYMENT AGREEMENT
The Retired Annuitant Employment Agreement (“Agreement”) is made by and between the City of Gilroy, a municipal corporation of the State of California (“City”) and Ken Binder, an individual (“Retired Annuitant”) effective upon successful completion of all required Peace Officer Standards & Training (POST) hiring requirements (“Effective Date”).

RECITALS
A. Retired Annuitant previously was employed by the County of Santa Clara, a California Public Employees’ Retirement System (CalPERS) employer, having previously served as the Santa Clara County Sheriff’s Office Undersheriff from 2020-2024; and B. Retired Annuitant retired from public service effective December 31, 2024 and began collecting a retirement pension from the California Public Employees’ Retirement System (CalPERS); and
C. The City will have a vacancy in the position of Police Chief beginning May 23, 2025, a regular position for which the City has already commenced steps to recruit a permanent appointment beginning in February 2025; and
D. The City has an immediate need for an employee to temporarily perform the position of Interim Police Chief, a position involving specialized skills and training, and which is critically necessary to the on-going duties and functions of the City’s Police Department; and E. Retired Annuitant has the necessary qualifications, experience, and abilities to assist City in the duties of leadership and management of the Police Department; and F. Retired Annuitant’s employment is authorized by Government Code section 21221(h), which permits the City to appoint a CalPERS retired annuitant to a vacant position requiring specialized skills during recruitment for a permanent replacement; and G. City desires to retain the services of Retired Annuitant in accordance with California Government Code Section 21221(h) and Retired Annuitant agrees to provide certain services to City under the strict terms and conditions set out in this Agreement; and H. The appointment of this retired annuitant prior to 180 days post-retirement is allowable under Government Code 7522.56 as the Interim Police Chief is a public safety position.

In consideration of this matter described above and of the mutual benefits and obligations set forth in this Agreement, the receipt and sufficiency of which consideration is hereby acknowledged, the parties of this Agreement agree as follows:

AGREEMENT
Section 1. Term of Services
The term of this Agreement is from successful completion of all POST hiring requirements until such time as a regular ongoing replacement for the position of Police Chief has been selected and has commenced employment, unless terminated sooner as provided below.

Section 2. Scope of Services
Retired Annuitant, as an officer of the city, agrees to perform the following duties related to the Gilroy Police Department:
• Administer and manage comprehensive police services such as the preservation of order, protection of life and property and the enforcement of laws and municipal ordinances, all in a strong partnership with the community, using customer service techniques. • Formulate and enforce departmental rules, policies and procedures, and maintain effective discipline.
• Manage the selection and assignment of Police Department employees. • Review and approve departmental personnel actions.
• Direct the administration of staff training programs. • Formulate the annual departmental budget, and control budget expenditures. • Prepare regular and requested oral and written reports for presentation to the City Administrator and the City Council.
• Direct the preparation of internal reports, orders, and directives. • Direct the preparation of external reports such as criminal statistic reports to the Federal Bureau of Investigation, Department of Justice, and California Highway Patrol. • Administer the communications operations, records, permits and licensing. • Administer the Law Enforcement Branch of the City’s Emergency Operations Center. • Coordinate Police service activities with those of other law enforcement and related organizations.
• Confer with attorneys and others in connection with prosecution of law violators, defending and protecting the City against civil liability and administrative personnel practices. • Attend public administration conferences, meetings, and seminars. • Perform public liaison work to maximize citizen support and to formulate and explain Police policies, programs, and activities.
• Perform Police and field duties including but not limited to incident command of major operations.
• Perform other related duties as assigned.

Retired Annuitant will report directly to the City Administrator. Retired Annuitant shall comply with all City rules, policies, guidelines, regulations, and laws.

Section 3. Compensation; Hours
City agrees to compensate Retired Annuitant at $127.40 per hour for all services provided under this Agreement. Payments from City to Retired Annuitant shall be made during the normal payroll cycles of other City employees.

City has reviewed and compared the hourly rate set forth in this Section with other employees performing comparable duties and the hourly rate set forth in this Section does not exceed such other employee’s compensation.

Retired Annuitant agrees and acknowledges that he shall not perform any services under this Agreement exceeding a total of nine hundred sixty (960) hours during any fiscal year (July 1 to June 30) inclusive of any hours worked during the same period for other CalPERS employers as a retired annuitant. Retired Annuitant shall record his hours on a pre-approved timesheet that shall be submitted to the City every month.

The position is a temporary, hourly assignment which is generally not expected to exceed 40 hours per week. The City, through the City Administrator, will assign Retired Annuitant hours to work. Due to the nature of the position, it is understood that the workday and workweek hours may vary, however Retired Annuitant shall not work overtime (i.e. in excess of 40 hours per week) as payment of overtime is prohibited under Government Code Section 21221(h).

There are no other benefits, incentives, compensation in lieu of benefits or other forms of compensation in addition to the hourly pay rate set forth in this Section.

Section 4. Location
The primary locations for services will be at the following addresses:

Gilroy Police Department, 7301 Hanna Street, Gilroy, California 95020 Gilroy City Hall, 7351 Rosanna Street, Gilroy, California 95020 Section 5. Compliance with Laws
This Agreement will be construed in accordance with and governed by the laws in the State of California. In the event that suit shall be brought by any of the parties, the parties agree that venue shall be exclusively vested in the state courts of the County of Santa Clara, or if federal jurisdiction is appropriate, exclusively in the United States District Court, Northern District of California, San Jose, California. Retired Annuitant shall comply with all applicable laws, rules, policies, and guidelines. Retired Annuitant agrees and acknowledges that the State of California and the governing body of the California Public Employees’ Retirement System enact strict laws, regulations and guidelines relating to services provided by “retired annuitants” to public agencies contracting with the California Public Employees’ Retirement System. Retired Annuitant agrees to comply with all applicable laws, regulations and guidelines relating to the services provided under this Agreement.

Section 6. Termination
This Agreement may be terminated by either party for convenience by providing written notice to the other party.

Section 7. Miscellaneous
a. Retired Annuitant has read each and every part of this Agreement and Retired Annuitant freely and voluntarily has entered into this Agreement. This Agreement is a negotiated document and shall not be interpreted for or against any party by reason of the fact that such party may have drafted this Agreement or any of its provisions.
b. If a court of competent jurisdiction finds or rules that any provision of this Agreement is invalid, void, or unenforceable, the provisions of this Agreement not so adjusted shall remain in full force and effect. The invalidity in whole or in part of any provision of this Agreement shall not void or affect the validity of any other provision of this Agreement. c. This Agreement represents the entire and integrated agreement between City and Retired Annuitant and supersedes all prior negotiations, representations, or agreements, either written or oral.

In witness where of the parties have duly affixed their signatures on this __ day of ______, 2025.

Employer: City of Gilroy
_______________________
Jimmy Forbis, City Administrator Employment Effective Date Retired Annuitant:

Ken Binder
Approved as to Form:

Andrew L. Faber, City Attorney
Attest:

Bryce Atkins, Acting City Clerk