Gilroy City Council
December 8, 2025

With regard to meeting the 65-percent and 100-percent trash capture obligations, consider the following alternatives:

1. Proceed with the installation of fabrication and installation of up to 427 additional trash capture devices to meet subsequent mandates. Staff is not recommending the alternative for meeting the 100-percent MS4 compliance obligation at this time. Staff believes there is value in assessing the viability of hydrodynamic separators and Track 2 compliance methods prior to proceeding with this option.

2. The City Council may direct staff to pursue the study of hydrodynamic separators in priority land use areas. This option is recommended given the relative ease of installation and maintenance. As noted previously, hydrodynamic separators have a substantial upfront capital cost, and the City has no specific funding source available for installation.

3. The City Council may direct staff to pursue the Track 2 compliance method, considered a “last resort” option by the Water Board. Staff remains concerned about the viability of Track 2 given the method is considered a "last resort" option available to jurisdictions lacking the financial capacity to implement a certified Track 1 method. It is also difficult to estimate the costs of Track 2, particularly given that the Water Board can regularly reassess and modify a Plan under Track 2. Costs could well exceed the costs of the certified trash capture devices.

FISCAL IMPACT/FUNDING SOURCE
The Stormwater Management Fund (422) has sufficient funding to complete Phase 1 (30-percent compliance) connector pipe screens. Fund 422 is derived from developer fees specific to post-construction stormwater treatment systems. The estimated cost of 73 trash capture systems is estimated at $200,000 to $250,000. There will be ongoing operational and maintenance costs, which will be paid from PW Operations' operating budget. Eventually, PW Operations will need to purchase a Regenerative Street Sweeper, which is estimated to cost $450,000.

The costs of 100-percent compliance will depend on the direction of the City Council and are subject to detailed review at a later time.

PUBLIC OUTREACH
Staff will continue presenting trash management practices at community events and outreach campaigns.

NEXT STEPS
Based on Council direction:

• Staff will initiate the RFP process for the installation of the 73 certified trash capture devices.
• Staff will develop an integrated program to provide equivalent full trash capture equivalency. This may require the use of consultants due to the complex nature of the program and staff availability.

Attachments:

1. Attachment A - Sample Outfalls

2. Attachment B - Locations

Attachment A - Sample Outfalls

Note: Map is for reference purposes only.

City of Gilroy
9,028 City of Gilroy, GIS Services

0.3 WGS_1984_Web_Mercator_Auxiliary_Sphere 1:

0.14 Miles 0 0.3
Premium Outlets - 24 Trash Capture Devices
Outfall
1st Upstream Manhole
Floor & Decor
KP
Premium Outlets

Note: Map is for reference purposes only.
9,028 City of Gilroy, GIS Services

0.3 WGS_1984_Web_Mercator_Auxiliary_Sphere 1:

0.14 Miles 0 0.3
City of Gilroy
Gilroy Crossings - 43 Trash Capture Devices
Outfall
1st Upstream
Manhole
1st Upstream Manhole
Outfall
UNFI
Gilroy Crossings

Note: Map is for reference purposes only.
4,514 City of Gilroy, GIS Services

0.1 WGS_1984_Web_Mercator_Auxiliary_Sphere 1:

0.07 Miles 0 0.1
City of Gilroy
Gilroy Gardens - 6 Trash Capture Devices
Approximate Outfall
Location
1st Upstream Manhole
Gilroy Gardens

City of Gilroy

STAFF REPORT
Agenda Item Title: Mayoral Appointments of Council Members to Serve in Regional Representative Seats and Seats on Local Boards and Committees
Meeting Date: December 8, 2025
From: Brad Kilger, Interim City Administrator
Department: Administration
Submitted by: Kim Mancera, City Clerk
Prepared by: Kim Mancera, City Clerk
STRATEGIC PLAN GOALS:

RECOMMENDATION
Approve representative seat assignments as determined by Mayor Bozzo per California Government Code Section 40605.

EXECUTIVE SUMMARY

BACKGROUND
Pursuant to California Government Code Section 40605, Mayor Bozzo has reviewed the Council's appointments to regional and local boards and committees. After a thorough examination, he has recommended changes in appointments for 2026. Below is the list of appointments for 2026.

Board or Committee Name Representative(s) Alternate(s)
Association of Bay Area
Governments (ABAG)
Zach Hilton Kelly Ramirez
Cal Train Citizen Advisory

Committee (CAC)
Cal Train Policy Group (LPMG) Tom Cline Zach Hilton
Gilroy Gardens Board of
Directors
Greg Bozzo Kelly Ramirez
Sister Cities Carol Marques Tom Cline
Gilroy Youth Task Force Tom Cline Kelly Ramirez
Santa Clara Expressway Plan
2040 Policy Advisory Board
(PAB)
Tom Cline Zach Hilton
Santa Clara County Library Joint
Powers Authority
Dion Bracco Carol Marques
Santa Clara Habitat Agency
Governing Board
Carol Marques Kelly Ramirez
Santa Clara Valley Agency
Implementation Board
Carol Marques Kelly Ramirez
Santa Clara Water Commission Dion Bracco Terence Fugazzi Valley Water Joint Water
Resource Committee
Dion Bracco, Greg
Bozzo
Silicon Valley Clean Energy
Authority JPA Board
Zach Hilton Tom Cline
Silicon Valley Regional
Interoperability Authority Board
(SVRIA)
Tom Cline Terence Fugazzi
South County Regional
Wastewater Auth. (SCRAW) (3)
Dion Bracco,
Terence Fugazzi,
Kelly Ramirez
Carol Marques
South County Youth Task Force
Policy Team
Greg Bozzo Zach Hilton
Source Wise Advisory
VTA Bike Ped. Advisory
Committee
Emily Miller
VTA Board of Directors Greg Bozzo
VTA Mobility Partnership Tom Cline, Terence
Fugazzi

VTA Policy Advisory Committee Zach Hilton Tom Cline
Visit Gilroy, Calif. Welcome
Center
Terence Fugazzi Tom Cline
Santa Clara Housing and
Community Development
Advisory Commission (HCDAC)
Kelly Ramirez Greg Bozzo
Cities Association of Santa Clara
County
Kelly Ramirez Greg Bozzo
A red-lined version of the updated roster is attached. The Downtown Committee and Gilroy Economic Development Partnership have been removed from the list. These committees expired following completion of their duties.

ANALYSIS

ALTERNATIVES

FISCAL IMPACT/FUNDING SOURCE
There is no fiscal impact.

PUBLIC OUTREACH
This item was listed on the agenda for tonight and the agenda was posted outside of Council Chambers.

NEXT STEPS
The City Clerk will update the list to reflect the approved appointments.

Attachments:

1. 2026 Proposed Regional Roster

City of Gilroy
2026 City Roster of County, Regional,
and Statewide Bodies

Approved
Association of Bay Area Governments (ABAG)
Member(s): Carol MarquesZach Hilton Phone Number: (510) 464-7900 Alternate(s): Kelly Ramirez ABAG is the official comprehensive planning agency for the San Francisco Bay area region. ABAG's mission is to strengthen cooperation and coordination among local governments. In doing so, ABAG addresses social, environmental, and economic issues that transcend local borders.

Meeting Information: General Assembly meetings are held in the spring and fall each year.

CalTrain Citizen Advisory Committee (CAC)*
Member(s): Steven Seebart1N/A Phone Number: (650) 508-6347 Alternate(s): N/A CAC is composed of nine volunteer members who serve in an advisory capacity to the tri-county policy board, providing input on the needs of current and potential rail customers, and reviewing and commenting on staff proposals and actions as requested by the board.

Meeting Information:
3 rd Wednesday of each month | 5:40 p.m.

Edward J. Bacciocco Auditorium
SamTrans Administrative Offices, 2nd Floor
250 San Carlos Ave., San Carlos, CA (two blocks west of the San Carlos Caltrain Station)
CalTrain Policy Group (LPMG)
Member(s): Zach HiltonTom Cline Phone Number: (650) 508-6493 Alternate(s): Tom ClineZach Hilton The Local Policy Maker Group (LPMG) is an advisory group, comprised of officials from the cities and counties along the Caltrain corridor.

Meeting Information:

Bi-monthly 4th Thursday | 5:30 p.m.

Edward J. Bacciocco Auditorium
SamTrans Administrative Offices, 2nd Floor
250 San Carlos Ave., San Carlos, CA (two blocks west of the San Carlos Caltrain Station)
Downtown Committee
Phone Number: Member(s): Terence Fugazzi Kelly Ramirez
(408) 846-0204 Carol Marques
The Downtown Committee is an Advisory Committee of members from the City Council and stakeholders in downtown Gilroy to provide recommendations and input into the completion of the adopted downtown recommendations, and other downtown-related activities.

Meeting
Information:

Second Tuesday of the month| 8:00 a.m.

Council Chambers
7351 Rosanna Street, Gilroy, CA 95020
* Gilroy resident is appointed to this body.
1 Term ends June 30, 20256.

City of Gilroy
2026 City Roster of County, Regional,
and Statewide Bodies

Approved
Gilroy Economic Development Partnership
Member(s): N/A Phone Number: (408) 842-6436 | (408) 842-6437 Alternate(s): N/A
The Gilroy Economic Development Partnership consists of representatives from the Gilroy Chamber of Commerce, Gilroy Downtown Business Association, Visit Gilroy/California Welcome Center, Gilroy Gardens, Gilroy Garlic Festival, Gavilan College, and the City of Gilroy. The group was created to focus on the economic development of three specific recreation/tourism initiatives: Gilroy Sports Park, the city-owned 536 acres at Gilroy Gardens, and Downtown Gourmet Alley.

Meeting
Information:
4th Wednesday of each month | 8:00 a.m.

Cordevalle
1 Cordevalle Club Drive, San Martin, CA 95046
Gilroy Gardens Board of Directors
Member(s): Greg Bozzo Phone Number: (408) 840-7100 Alternate(s): Kelly Ramirez Gilroy Gardens Board of Directors is a non-profit educational institution whose mission is to educate and inspire families, especially children, to appreciate horticulture and the importance of trees in our lives by providing fun and memories in a beautiful garden setting.

Meeting
Information:
2nd Thursday of each month | 3:00 p.m.

Gilroy Gardens Operations Office Board Room
Gilroy Gardens Family Theme Park
3050 Hecker Pass Hwy, Gilroy, CA 95020
Gilroy Sister Cities Association
Member(s): Kelly RamirezCarol Marques Phone Number: (408) 310-8059 Alternate(s): Tom Cline The association furthers positive relations under the umbrella of Sister Cities International, funding and arranging student exchanges and tours of dignitaries from Gilroy’s six sister cities from the countries of Japan, France, Italy, Portugal, Mexico, and Palau to foster deeper cross-cultural understanding and global cooperation towards sustainable economic and community development.

Meeting
Information:
2nd Tuesday of each month | 6:00 p.m.

Brownell School
7701 Hanna St, Gilroy, CA

City of Gilroy
2026 City Roster of County, Regional,
and Statewide Bodies

Approved
Gilroy Youth Task Force
Member(s): Tom Cline Phone Number: (408) 846-0440 Alternate(s): Kelly Ramirez The specific purpose of this corporation is to eliminate illegal gang activity, graffiti, and illegal alcohol and drug sales, distribution, and use within the Gilroy area and to provide the education, skills, and community activities to promote a drug and gang-free lifestyle, in order to maintain and enhance the quality of life in Gilroy.

Meeting
Information:

January
Gilroy Senior Center Meeting Room
Gilroy Senior Center
7371 Hanna St, Gilroy, CA
South County Youth Task Force Policy Team
Member(s): Greg Bozzo
Phone Number: (408) 299-5010 Zach Hilton
Alternate(s): Zach HiltonN/A
Formed to address the influences and impacts of gangs on south county youth and their communities to reduce juvenile delinquent behaviors, reduce recruitment of youth into gangs, and reduce gang violence within the boundaries of Gilroy, Morgan Hill, and the unincorporated County areas of San Martin.

Meeting
Information:
3 rd Wednesday of odd-numbered months | 10:00 a.m.-12:00 p.m. Alternates between Gilroy and Morgan Hill
Cities Association of Santa Clara County
Member(s): Greg BozzoKelly
Ramirez Phone Number: (408) 766-9534
Alternate(s): Greg Bozzo
The guiding principle remains to promote cooperation among the cities and advocate for positive action and enhance the quality of life for the residents of our county.

Meeting
Information:

Santa Clara County Expressway Plan 2040 Policy Advisory Board (PAB) Member(s): Tom Cline Phone Number: (408) 573-2438 Alternate(s): Zach Hilton The PAB provides an elected officials’ forum for policy input to the Expressway Plan 2040 – a long-range plan for the eight-county expressways and transportation corridor Meeting
Information:

Meets 5 times per year | 6:30 p.m.

SCC Board of Supervisors Chambers
70 W. Hedding St., San Jose, CA 95110

City of Gilroy
2026 City Roster of County, Regional,
and Statewide Bodies

Approved
Santa Clara County Library Joint Powers Authority
Member(s): Dion Bracco Phone Number: (408) 293-2326 x3090 Alternate(s): Carol Marques Provides policy direction and governance for the Santa Clara County Library District and oversees the County library budget, services, and programs for the service areas.

Meeting
Information:
4th Thursday of the months of January, April, October at 12:00 pm 1st Thursday in June at 12:00 pm
Santa Clara County Library District Services and Support Center 1370 Dell Avenue
Campbell, CA 95008
Santa Clara Valley Habitat Agency Governing Board
Member(s): Carol Marques Phone Number: (408) 779-7261 Alternate(s): N/AKelly Ramirez The SC Valley Habitat Agency established a two-tiered governance structure consisting of a Governing Board and an Implementation Board. The four Local Partners (Santa Clara County, Gilroy, Morgan Hill, and San Jose) form the Governing Board for the Implementing Agency.

Meeting
Information:

Min. of twice annually the third Thurs. of March and September | 4:00 p.m.

Santa Clara Valley Habitat Agency
535 Alkire Ave., Suite 100 Morgan Hill, CA 95037
Santa Clara Valley Habitat Agency Implementation Board
Member(s): Carol Marques Phone Number: (408) 779-7261 Alternate(s): Kelly RamirezN/A The SC Valley Habitat Agency Implementation Board comprises the four Governing Board members, together with two Habitat Plan permittees, the Santa Clara Valley Water District, and VTA. The Board oversees the majority of the operations of the Habitat Agency.

Meeting
Information:

Third Thursday of odd-numbered months | 4:00 p.m.

Santa Clara Valley Habitat Agency
535 Alkire Ave., Suite 100 Morgan Hill, CA 95037
Santa Clara Valley Water Commission
Member(s): Dion Bracco Phone Number: (408) 630-2883 Alternate(s): Terence Fugazzi The Water Commission assists the Valley Water Board with issues pertaining to water supply and water quality, as well as policy matters that are of interest to the cities and Santa Clara County.

City of Gilroy
2026 City Roster of County, Regional,
and Statewide Bodies

Approved
Meeting
Information:

Quarterly Jan, April, July, & October | 12:00 p.m.

Valley Water Board Room
5700 Almaden Expressway, San Jose, CA 95118

Valley Water Joint Water Resources Committee
Member(s): Dion Bracco
Phone Number: (408) 630-2408 Greg Bozzo
Alternate(s): N/A
This six-member Committee shall advance common South County water interests and receive input on future needs for groundwater management in the Llagas groundwater sub-basin; facilitate policy discussion and sharing of technical information on water supply planning for South County; identify demand for recycled water and share technical information on its use and implement the South County Recycled Water Master Plan. (Meets quarterly at SCRWA Treatment Plant) Meeting
Information:

Quarterly | 9:00 a.m.

SCRWA Treatment Plant
500 Southside Dr.

Gilroy, CA 95020
South County Regional Wastewater Authority (SCRWA)
Member(s): Dion Bracco
Terence Fugazzi
Kelly Ramirez Phone Number: (408) 848-0480
Alternate(s): Carol Marques
Serves as the governing body of the Authority, which provides the treatment and disposal of wastewater and recycled water for the cities of Gilroy and Morgan Hill.

Meeting
Information:

Meets Quarterly | 8:00 a.m.

SCRWA Treatment Plant
1500 Southside Dr.

Gilroy, CA 95020
Santa Clara County Housing and Community Development Advisory Commission (HCDAC) Member(s): Kelly Ramirez Phone Number: (408) 299-5001 Alternate(s): Greg Bozzo The HCDAC advises the County Board of Supervisors regarding Urban County CDBG and HOME Programs
Meeting
Information:

TBD| 6:15 pm
Santa Clara County Board of Supervisors Chambers

City of Gilroy
2026 City Roster of County, Regional,
and Statewide Bodies

Approved
70 W Hedding St., San Jose, CA 95110
Silicon Valley Clean Energy Authority JPA Board
Member(s): Zach Hilton Phone Number: (408) 721-5301 Alternate(s): Tom Cline Twelve communities in Santa Clara County formed a Joint Powers Agency named the Silicon Valley Clean Energy Authority (SVCE), a local non-profit public agency that will run a Community Choice Energy (CCE) program.

Meeting
Information:

Second Wednesday of each month | 7:00 pm
Santa Clara County Board Room
70 W Hedding St., San Jose, CA 95110
Silicon Valley Regional Interoperability Authority Board (SVRIA) Member(s): Tom Cline Phone Number: (408) 630-2408 Alternate(s): Terence Fugazzi The nine-person SVRIA Board of Directors provides strategic guidance to staff, and the Working Committee reviews and approves the annual budget, hires the Executive Director and General Counsel, and oversees SVRIA activities. The Silicon Valley Regional Interoperability Authority (SVRIA) exists to identify, coordinate, and implement communications interoperability solutions to its member agencies to seamlessly integrate voice and data communications between law enforcement, fire, and rescue services, emergency medical services, and emergency management for routine operations, critical incidents, and disaster response and recovery. SVRIA also provides strategic planning support for its members.

Meeting
Information: Quarterly in March, June, September, and November Sourcewise Advisory Council*
Member(s): Dyanne Hofstad2
Phone Number: (408) 350-3200 Alternate(s): N/A
The purpose of the Council is to advise Sourcewise and its Board of Directors about the needs of older adults and disabled persons in the county, to advocate on behalf of the most vulnerable and those of greatest need within the community, and to inform the community of resources and services available through Sourcewise.

Meeting
Information:
1 st Monday of each month (10 x per year) | 12:00 p.m.-2:00 p.m.

Meetings via Zoom until further notice
Valley Transportation Authority (VTA) Bicycle Pedestrian Advisory Committee (BPAC) * Member(s): Eugene Bernosky3 Emily Miller Phone Number: (408) 321-5555 Alternate(s) N/A * Gilroy residents are appointed to these bodies.
2 Term ends July 1, 2026.
3 Term ends June 30, 20246.

City of Gilroy
2026 City Roster of County, Regional,
and Statewide Bodies

Approved
:

The BPAC comprises 16 members representing each of the 15 cities and the county. It also has one exofficio (non-voting) position for the Silicon Valley Bicycle Coalition. The BPAC advises the Board on funding and planning issues for bicycle and pedestrian projects. It also serves as the countywide bicycle advisory committee for Santa Clara County.

Meeting
Information:
2 nd Wednesday of each month | 6:30 p.m.

Teleconference
VTA Board of Directors
Phone Number: (408) 321-5680 Member(s): Mark Turner (MH) (Gilroy-Morgan Hill Rotation) Alternate(s): Greg Bozzo
VTA Board of Directors sets VTA policy, amends the VTA Administrative Code, supports or opposes state or federal legislation, adopts the annual VTA budget, approves collective bargaining agreements and recommends major capital improvement projects to the appropriate regional, state and federal funding authorities.

Meeting
Information:
1 st Thursday of each month | 5:30 p.m.

SCC Board of Supervisors Chambers
70 W. Hedding St., San Jose, CA 95110
VTA Mobility Partnership Committee
Member(s): Tom Cline
Phone Number: (408) 321-5907 Terence Fugazzi
Alternate(s): N/A
Comprised of San Benito Co. Board Members, Gilroy, Hollister, and Morgan Hill Council Members along with VTA technical staff to jointly look at Highway 152 and 25 corridors.

Meeting
Information:

Bi-monthly
Gilroy City Council Chambers
7351 Rosanna St., Gilroy, CA
VTA Policy Advisory Committee
Member(s): Zach Hilton Phone Number: (408) 321-5680 Alternate(s): Tom Cline The PAC ensures that all jurisdictions within the county have access to the development of VTA's policies.

Meeting
Information:
2nd Thursday of each month | 4:00 p.m.

Conference Room B104
VTA River Oaks Campus
3331 North First Street, San Jose, CA 95134
Visit Gilroy California Welcome Center Board
Phone Number: (408) 842-6436 Member(s): Terence Fugazzi (as suggested for Visit Gilroy Board appointment) Alternate(s): Tom Cline

City of Gilroy
2026 City Roster of County, Regional,
and Statewide Bodies

Approved

The Welcome Center is in place to enhance the image and economy of the City by marketing the city and assisting to facilitate a viable business community.

Meeting
Information:
3rd Thursday of each month | 8:00 a.m.

Location varies within Gilroy

City of Gilroy
2026 City Roster of County, Regional,
and Statewide Bodies

Approved
VTA Policy Advisory Committee
Member(s): Zach Hilton Phone Number: (408) 321-5680 Alternate(s): Tom Cline The PAC ensures that all jurisdictions within the county have access to the development of VTA's policies.

Meeting
Information:
2nd Thursday of each month | 4:00 p.m.

Conference Room B104
VTA River Oaks Campus
3331 North First Street, San Jose, CA 95134
Visit Gilroy California Welcome Center Board
Phone Number: (408) 842-6436 Member(s): Terence Fugazzi (as suggested for Visit Gilroy Board appointment) Alternate(s): Tom Cline The Welcome Center is in place to enhance the image and economy of the City by marketing the city and assisting to facilitate a viable business community.

Meeting
Information:
3rd Thursday of each month | 8:00 a.m.

Location varies within Gilroy

City of Gilroy

STAFF REPORT
Agenda Item Title: Appointment of Council Member Zach Hilton to the position of Mayor Pro Tempore for 2026
Meeting Date: December 8, 2025
From: Brad Kilger, Interim City Administrator
Department: Administration
Submitted by: Kim Mancera, City Clerk
Prepared by: Kim Mancera, City Clerk
STRATEGIC PLAN GOALS:

RECOMMENDATION
Appointment of Council Member Zach Hilton to the position of Mayor Pro Tempore for 2026.

EXECUTIVE SUMMARY

BACKGROUND
Section 502 of the Charter is entitled "Mayor Pro Tempore," and describes the following:
"At the first meeting of the Council following the election or appointment of a member to the Council, the Council shall elect one of its members as Mayor Pro Tempore who shall act as Mayor during the absence or inability of the Mayor to act. In the case of the temporary absence or disability of both the Mayor and the Mayor Pro Tempore, the Council shall elect one of its members to act as Mayor Pro Tempore." The role of the Mayor Pro Tempore is to serve in a leadership role in the absence of the Mayor. For example, if the Mayor were to be ill on the evening of a Council meeting, the Mayor Pro Tempore would lead and run the meeting.

In 2018, then Mayor Roland Velasco, with the assistance of the City Attorney's Office, researched the Mayor Pro Tempore selection process. It was determined, and reported in the 2018 staff report, that the Council has authority to elect a Mayor Pro Tempore when it desires to do so, and that the Council can determine the length of time the Mayor Pro Tempore will serve in that capacity. It was also determined, if the Council decides to institute a form of rotation for the position, that is allowable under the Charter. As stated above, the only Charter restriction is the requirement to elect a Mayor Pro Tempore following the election or appointment of a new Council Member.

Therefore, at this time, Mayor Bozzo is recommending that Council Member Zach Hilton be selected to serve as the Mayor Pro Tempore for calendar year 2026.

ANALYSIS

ALTERNATIVES
Not Applicable.

FISCAL IMPACT/FUNDING SOURCE
There is no fiscal impact.

PUBLIC OUTREACH
This item was listed on the agenda for tonight and the agenda was posted outside of Council Chambers.

NEXT STEPS
Attachments:

None

City of Gilroy

STAFF REPORT
Agenda Item Title: Consent the Appointment of Scot Smithee (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: December 8, 2025
From: Brad Kilger, Interim City Administrator
Department: Administrative Services
Submitted by: LeeAnn McPhillips, Assistant City Administrator/HR Director Prepared by: LeeAnn McPhillips, Assistant City Administrator/HR Director STRATEGIC PLAN GOALS: Not Applicable

RECOMMENDATION
a) Consent the City Administrator's recommendation to appoint Scot Smithee (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 Scot Smithee (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 Scot Smithee (CalPERS retired annuitant) as Interim Police Chief effective upon successful completion of the Peace Officer Standards & Training (POST) hiring requirements (estimated to be December 15, 2025), and approve the resolution consenting to the appointment and authorizing the City Administrator to execute the employment

agreement.

Mr. Smithee is a California Public Employees’ Retirement System (CalPERS) retired annuitant, having retired as Gilroy's Police Chief in 2020. 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. Scot Smithee will serve as Interim Police Chief until the new Gilroy City Administrator selects a Police Chief. It is estimated that a new City Administrator will be selected on January 5, 2026, with an official start date to follow. One of the first significant decisions for the new City Administrator will be to select and recommend the appointment of the next Police Chief. It is estimated that a selection will be made @ February 2026 with a start date to follow mandatory POST hiring requirements.

BACKGROUND
Scot Smithee retired from the position of Police Chief effective June 1, 2020. As most know, Chief Smithee retired in 2015 from the position of Police Captain and later came out of retirement in 2017 to serve as Gilroy’s Police Chief. He also served as the Interim Fire Department Director prior to the hiring of Fire Chief Fleeup. Mr. Smithee has agreed to return again to serve as the Interim Police Chief while the City completes the recruitment for a new Police Chief. This appointment is necessary due to the quick departure of Interim Police Chief Ken Binder who was recently appointed as the San Mateo County Sheriff. The Police Chief recruitment process is already underway and a selection will be made by the new City Administrator as noted above.

California Government Code Section 21221(h), allows an agency to hire a retired annuitant to serve in an “interim” position when there is an immediate need for expertise and specialized skills and a recruitment is underway for the position. The city has a Police Chief recruitment underway with the assistance of Peckham & McKenney executive search. We expect a new Police Chief will start work in the March 2026 time frame. 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, Scot Smithee agrees to perform the following duties related to the Gilroy Police Department:

1. 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.

2. Formulate and enforce departmental rules, policies and procedures, and maintain effective discipline.

3. Manage the selection and assignment of Police Department employees.

4. Review and approve departmental personnel actions.

5. Direct the administration of staff training programs.

6. Formulate the annual departmental budget, and control budget expenditures.

7. Prepare regular and requested oral and written reports for presentation to the City Administrator and the City Council.

8. Direct the preparation of internal reports, orders and directives.

9. Direct the preparation of external reports such as criminal statistic reports to the Federal Bureau of Investigation, Department of Justice, and California Highway Patrol.

10. Administer the communications operations, records, permits and licensing.

11. Administer the Law Enforcement Branch of the City’s Emergency Operations Center.

12. Coordinate Police service activities with those of other law enforcement and related organizations.

13. Confer with attorneys and others in connection with prosecution of law violators, defending and protecting the City against civil liability and administrative personnel practices.

14. Attend public administration conferences, meetings, and seminars.

15. Perform public liaison work to maximize citizen support and to formulate and explain Police policies, programs and activities.

16. Perform Police and field duties including but not limited to incident command of major operations.

17. Perform other related duties as assigned.

As Interim Police Chief, Scot Smithee will continue to report directly to the City Administrator and shall comply with all City rules, policies, guidelines, regulations, and laws.

To ensure continuity in the management of the Police Department during a critical time period, it is recommended that the City Council consent the appointment of Scot Smithee as Interim Police Chief (retired annuitant) and approve the resolution consenting the appointment and authorizing the Interim City Administrator to execute the employment agreement.

CalPERS is currently reviewing the resolution and employment agreement associated with this staff report. If any mandatory updates are needed, those attachments will be updated and routed/posted.

ANALYSIS
n/a

ALTERNATIVES
The recommended alternative is to consent the appointment of Scot Smithee as the Interim Police Chief (retired annuitant) and adopt the resolution approving his

appointment and employment agreement. The alternative would be not to approve the interim appointment and the City would need to identify someone else to serve as the Interim Police Chief. This alternative is 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 $8,200 per month, which is all general fund savings. Over a four-month period, the savings will total approximately $32,800.

PUBLIC OUTREACH
n/a

NEXT STEPS
Upon Council approval, the Interim City Administrator and Scot Smithee will sign the employment agreement. Other than completion of any final POST hiring requirements, the shift to Interim Police Chief will be seamless. Completion of the POST requirements began shortly after Chief Binder announced his departure and should be completed by December 15, 2025. The Police Chief hiring process will remain on track with the new City Administrator selecting a new Police Chief shortly after hire. The interim assignment will end upon the hiring of a regular Police Chief.

Attachments:

1. Smithee Scot Council Resolution for Interim Police Chief Appointment 21221h

12.8.25 2. Scot Smithee Employment Agreement Dec 2025 Exhibit A

RESOLUTION NO. 2025-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF GILROY APPOINTING SCOT SMITHEE AS INTERIM

POLICE CHIEF 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, Scot Smithee retired from California Public Employees’ Retirement System employment in 2020; and
WHEREAS, the position of Police Chief is currently vacant with a selection to be made by the new City Administrator within a reasonable time period following the City Administrator starting employment; and
WHEREAS, Interim Police Chief Binder resigned from his interim Police Chief assignment rather quickly in mid-November to accept appointment with another agency; and WHEREAS, Scot Smithee has over 30 years of experience in law enforcement and extensive expertise in Police Department management for a local government, including having served as Police Chief for the City of Gilroy for over three years; and WHEREAS, the Gilroy City Council desires to consent the City Administrator’s recommendation to appoint retired annuitant Scot Smithee to the vacant position of Interim Police Chief for the City of Gilroy under Government Code Section 21221(h), effective upon completion of Peace Officer Standards and Training (POST) hiring requirements (estimated to be on or about December 15, 2025); and
WHEREAS, an appointment under Government Code Section 21221(h) requires that the City has initiated steps to begin the recruitment process for the vacant position; and WHEREAS, this Section 21221(h) appointment shall only be made once and therefore will end on the date immediately preceding the date on which the permanent replacement for the vacant position of 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 Scot Smithee; and WHEREAS, the entire employment agreement between Scot Smithee 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 SCOT SMITHEE AS

INTERIM POLICE CHIEF AND APPROVING EMPLOYMENT AGREEMENT City Council Meeting | December 8, 2025

WHEREAS, the maximum base monthly salary for this position is $23,427.67 and the hourly equivalent is $135.16 and the minimum base monthly salary for this position is $17,056.25 and the hourly equivalent is $98.40; and
WHEREAS, the hourly rate to be paid to Scot Smithee will be $135.16; and WHEREAS, Scot Smithee 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 Scot Smithee as described herein and detailed in the attachment employment agreement and that this appointment is necessary to fill the critically needed position of Police Chief for the City of Gilroy to provide the specialized skills necessary to lead and manage the City’s Police Department.

3. The City Council hereby authorizes the appointment of Scot Smithee to Interim Police Chief effective upon completion of all POST hiring requirements (on or about December 15, 2025) 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 Scot Smithee.

4. The employment agreement with Scot Smithee, 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 on December 8, 2025, effective on completion of all POST hiring requirements (on or about December 15, 2025).

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

PASSED AND ADOPTED this 8
th day of December, 2025 by the following roll call
vote:

Resolution No. 2025-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY APPOINTING SCOT SMITHEE AS

INTERIM POLICE CHIEF AND APPROVING EMPLOYMENT AGREEMENT City Council Meeting | December 8, 2025

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

APPROVED:

Greg Bozzo, Mayor
ATTEST:
_______________________
Kim Mancera, 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 Scot Smithee, 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 City of Gilroy for over thirty years to include three (3) years as Police Chief; and
B. Retired Annuitant retired from the City of Gilroy effective June 1, 2020 and began collecting a retirement pension from the California Public Employees’ Retirement System (CalPERS); and C. The City has a vacancy in the position of Police Chief, a regular position for which the City is conducting a recruitment for a permanent appointment; and D. The City has an immediate need for an employee to temporarily perform the position of Police Chief, a position involving specialized skills and training and which is critically necessary to the ongoing 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 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.

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.

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 Peace Officer Standards & Training (POST) hiring requirements (estimated to be December 15, 2025) until such time as a permanent 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 $135.16 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 employees’ compensation.

Retired Annuitant agrees and acknowledges that he shall not perform any services under this Agreement or as an extra help retired annuitant 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 preapproved 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 location 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 December, 2025.

Employer: City of Gilroy
Brad Kilger, Interim City Administrator
Employment Effective Date
Retired Annuitant
Scot Smithee
Approved as to Form:

Andrew L. Faber, City Attorney
Attest:

Kim Mancera, City Clerk

City of Gilroy

STAFF REPORT
Agenda Item Title: Consent the Appointment of Karl Bjarke (CalPERS Retired Annuitant) as the Interim Utilities Director Effective December 23, 2025 and Adoption of a Resolution Approving the
Appointment and Employment Agreement
Meeting Date: December 8, 2025
From: Brad Kilger, Interim City Administrator
Department: Administrative Services
Submitted by: LeeAnn McPhillips, Assistant City Administrator/HR Director Prepared by: LeeAnn McPhillips, Assistant City Administrator/HR Director STRATEGIC PLAN GOALS: Not Applicable

RECOMMENDATION
a) Consent the City Administrator's recommendation to appoint Karl Bjarke (CalPERS Retired Annuitant) as Interim Utilities Director effective December 23, 2025. b) Adopt a resolution of the City Council of the City of Gilroy approving the appointment of Karl Bjarke (CalPERS Retired Annuitant) as Interim Utilities Director effective December 23, 2025 pursuant to Government Code Section 21221(h) and authorizing the City Administrator to execute the employment agreement.

EXECUTIVE SUMMARY
To ensure continuity in the leadership and management of the Utilities Department, it is recommended that the City Council consent to the appointment of Karl Bjarke (CalPERS retired annuitant) as Interim Utilities Director effective December 23, 2025 and approve the resolution consenting to the appointment and authorizing the City Administrator to execute the employment agreement. This date will allow for some overlap transition time with retiring Utilities Director Heath McMahon whose last day of work is December 29, 2025 (retirement effective December 30, 2025).

BACKGROUND
As noted above, due to the upcoming retirement of Utilities Director Heath McMahon, the City of Gilroy will have a vacancy in the position of Utilities Director. The City plans to commence a recruitment for a Utilities Director prior to December 23, 2025 and hire an Interim Utilities Director to serve while the recruitment is being conducted. Former Morgan Hill Public Works Director Karl Bjarke is available to serve as the Interim Utilities Director. Mr. Bjarke is a California Public Employees’ Retirement System (CalPERS) retired annuitant having retired in 2017. He has the education, skills, and experience to hit the ground running and serve as Gilroy’s Interim Utilities Director beginning December 23, 2025.

Mr. Bjarke has over twenty-eight years of related municipal work experience. He served the City of Morgan Hill for over fifteen years most recently in the capacity of Public Works Director (six years). Prior to serving as the Director, Mr. Bjarke was the Deputy Public Works Director for approximately nine years. He has significant experience in the aeras of Water and Wastewater. He also holds a State of California Professional Engineer license. Given his work in Morgan Hill, Mr. Bjarke is well versed with the South County Regional Wastewater Authority (SCRWA), Valley Transportation Authority (VTA), Santa Clara Valley Water District (SCVWD), Caltrans, and other similar agencies important to the work of Utilities. Mr. Bjarke has previously served as Gilroy’s interim Public Works Director on two occasions when the position was vacant and under recruitment.

California Government Code Section 21221(h) allows an agency to hire a retired annuitant to serve in an “interim” position when there is an immediate need for expertise and specialized skills and a recruitment is underway for the position. Prior to December 23, 2025, the City will initiate a recruitment for a new Utilities Director and complete the selection process in the next four to six 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 Utilities Director role, and as an officer of the City, Karl Bjarke agrees to perform the following duties related to the Gilroy Utilities Department:
• Serve as head of the Utilities Department and technical advisor to the City Administrator and other department heads on utilities related matters. • Develop and direct the implementation of goals, objectives, policies, procedures, and work standards for the Utilities Department.
• Plan, organize, assign, direct, review, and evaluate utilities and utility-related engineering activities, including project planning, design, construction, and inspection.
• Plan, organize, assign, direct, review, and evaluate all maintenance activities, including the, water and wastewater utilities.

• Plan, organize, and direct the City utilities program which includes: water supply, treatment, storage, conservation, distribution, facilities, and customer service operations; wastewater collection, treatment, and redistribution. • Implement the City’s Water, Wastewater Master Plans and long-term South County Regional Wastewater Authority (SCRWA) Capital Improvement Plan. • Forecast water usage needs, develop plans for water distribution and recycling accordingly, and allocate funds as necessary.
• Coordinate with Valley Water to ensure the City’s long-term sustainability of water supply needs are met and groundwater supplies are properly protected. • Perform preliminary and final engineering review and consultation on public and private utility-related projects with developers, designers, and project engineers; review and sign maps, plans, specifications, and projects for compliance with sound engineering practices and existing laws; review initial studies and environmental impact reports for adequate mitigation of utility infrastructure impacts.
• Confer with City officials and community groups on proposed utilities projects. • Prepare and present comprehensive technical reports.
• Make presentations before Boards, Commissions, and the City Council. • Direct the departmental budget to include: preparing section budgets, preparing the annual five-year and ten-year capital improvement budgets for utility projects, preparing, and administering the SCRWA budget, and monitoring revenues and expenditures.
• Research, develop, and monitor grant funding, programs, and projects. • Research, analyze, and make recommendations for cost effective departmental operations to include: designing, administering, and evaluating departmental programs and services; addressing process issues; and implementing required changes.
• Select, train, and evaluate department personnel.
• Monitor developments related to municipal utilities matters; evaluate their impact upon City operations and recommend policy and procedural improvements. • Coordinate the activities of the Utilities Department with those of other departments and agencies. Meet with and represents the City in project development and negotiations with regional agencies such as Valley Water and our SCRWA partner, City of Morgan Hill.
• Serve as the City’s representative on all local, regional, and state-level boards including those at Valley Water to ensure that the City has representation for all matters impacting Gilroy rate payers.
• May be assigned to support the Operations Branch, or other branches, of the city’s Emergency Operations Center.
• Perform related work as assigned.

As Interim Utilities Director, Karl Bjarke will report directly to the City Administrator and shall comply with all City rules, policies, guidelines, regulations, and laws. Mr. Bjarke will be paid $131.22 per hour with no other benefits or incentives.

CalPERS is currently reviewing the resolution and employment agreement associated with this staff report. If any mandatory updates are needed, those attachments will be updated and routed/posted.

ANALYSIS
n/a

ALTERNATIVES
The recommended alternative is to consent the appointment of Karl Bjarke as the Interim Utilities Director (retired annuitant) and adopt the resolution approving his appointment and employment agreement. The alternative would be not to approve the interim appointment and the City would need to identify someone else to serve as the Interim Utilities Director. This alternative is 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 enterprise funds (water and wastewater) approximately $6,800 per month. Over a four-month period, the savings will total approximately $27,200 - $40,800.

PUBLIC OUTREACH
n/a

NEXT STEPS
Upon Council approval, the Interim City Administrator and Karl Bjarke will sign the employment agreement. Mr. Bjarke will begin work on December 23, 2025 to allow for a smooth transition of leadership in the Utilities Department. Further, a recruitment process for Utilities Director will be initiated prior to December 23, 2025 as required by CalPERS.

Attachments:

1. Bjarke Karl Council Resolution for Interim Utilities Director Appointment 21221h

12.8.25 2. Bjarke Karl Employment Agreement Dec 2025 Exhibit A

RESOLUTION NO. 2025-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF GILROY APPOINTING KARL BJARKE AS INTERIM

UTILITIES DIRECTOR 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, Karl Bjarke retired from California Public Employees’ Retirement System employment in December 2017; and
WHEREAS, the position of Utilities Director will become vacant later this month due to the retirement of Utilities Director Heath McMahon; and
WHEREAS, Karl Bjarke has over 28 years of experience in the area of public works and municipal engineering, to include the areas of water and wastewater and served as the City of Morgan Hill Public Works Director from 2011 - 2017; and
WHEREAS, Karl Bjarke has served two times as Gilroy’s Interim Public Works Director when the position was vacant and has familiarity with Gilroy policies, processes, and procedures; and
WHEREAS, the Gilroy City Council desires to consent the City Administrator’s recommendation to appoint retired annuitant Karl Bjarke to the vacant position of Interim Utilities Director for the City of Gilroy under Government Code Section 21221(h), effective December 23, 2025; 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, a step that will be completed prior to December 23, 2025; and
WHEREAS, this Section 21221(h) appointment shall only be made once and therefore will end on the date immediately preceding the date on which the permanent replacement for the vacant position of Utilities Director for the City of Gilroy commences his or her employment or, if earlier, the date that this appointment is terminated by the City or Karl Bjarke; and WHEREAS, the entire employment agreement between Karl Bjarke 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 KARL BJARKE AS

INTERIM UTILITIES DIRECTOR AND APPROVING EMPLOYMENT AGREEMENT City Council Meeting | December 8, 2025

WHEREAS, the maximum base monthly salary for this position is $23,427.67 and the hourly equivalent is $135.16 and the minimum base monthly salary for this position is $17,056.25 and the hourly equivalent is $98.40; and
WHEREAS, the hourly rate to be paid to Karl Bjarke will be $131.22; and WHEREAS, Karl Bjarke 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 Karl Bjarke as described herein and detailed in the attachment employment agreement and that this appointment is necessary to fill the critically needed position of Utilities Director for the City of Gilroy to provide the specialized skills necessary to lead and manage the City’s Utilities Department.

3. The City Council hereby authorizes the appointment of Karl Bjarke to Interim Utilities Director effective December 23, 2025 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 Utilities Director for the City of Gilroy commences his or her employment or, if earlier, the date that this appointment is terminated by the City or Karl Bjarke.

4. The employment agreement with Karl Bjarke, 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 on December 8, 2025, and is effective December 31, 2025.

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

PASSED AND ADOPTED this 8
th day of December, 2025 by the following roll call
vote:

Resolution No. 2025-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY APPOINTING KARL BJARKE AS

INTERIM UTILITIES DIRECTOR AND APPROVING EMPLOYMENT AGREEMENT City Council Meeting | December 8, 2025

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

APPROVED:

Greg Bozzo, Mayor
ATTEST:
_______________________
Kim Mancera, 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 Karl Bjarke, an individual (“Retired Annuitant”) effective December 23, 2025 (“Effective Date”).

RECITALS
A. Retired Annuitant previously was employed by the City of Morgan Hill and other California Public Employees’ Retirement System (CalPERS) employers since 1989, having previously served as Morgan Hill’s Public Works Director from 2011-2017; and
B. Retired Annuitant retired from public service effective December 2, 2017 and began collecting a retirement pension from the California Public Employees’ Retirement System (CalPERS); and C. The City has a vacancy in the position of Utilities Director, a regular position for which the City will commence steps to initiate the recruitment for a permanent appointment prior to December 23, 2025; and
D. The City has an immediate need for an employee to temporarily perform the position of Utilities Director, a position involving specialized skills and training, and which is critically necessary to the on-going duties and functions of the City’s Utilities Department; and E. Retired Annuitant has the necessary qualifications, experience, and abilities to assist City in the duties of leadership and management of the Utilities 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
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 December 23, 2025 until such time as a permanent replacement for the position of Utilities Director 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 Utilities Department:
• Serve as head of the Utilities Department and technical advisor to the City Administrator and other department heads on utilities related matters.
• Develop and direct the implementation of goals, objectives, policies, procedures, and work standards for the Utilities Department.
• Plan, organize, assign, direct, review, and evaluate utilities and utility-related engineering activities, including project planning, design, construction, and inspection. • Plan, organize, assign, direct, review, and evaluate all maintenance activities, including the, water and wastewater utilities.
• Plan, organize, and direct the City utilities program which includes: water supply, treatment, storage, conservation, distribution, facilities, and customer service operations; wastewater collection, treatment, and redistribution.
• Implement the City’s Water, Wastewater Master Plans and long-term South County Regional Wastewater Authority (SCRWA) Capital Improvement Plan.
• Forecast water usage needs, develop plans for water distribution and recycling accordingly, and allocate funds as necessary.
• Coordinate with Valley Water to ensure the City’s long-term sustainability of water supply needs are met and groundwater supplies are properly protected. • Perform preliminary and final engineering review and consultation on public and private utilityrelated projects with developers, designers, and project engineers; review and sign maps, plans, specifications, and projects for compliance with sound engineering practices and existing laws; review initial studies and environmental impact reports for adequate mitigation of utility infrastructure impacts.
• Confer with City officials and community groups on proposed utilities projects. • Prepare and present comprehensive technical reports.
• Make presentations before Boards, Commissions, and the City Council. • Direct the departmental budget to include: preparing section budgets, preparing the annual fiveyear and ten-year capital improvement budgets for utility projects, preparing, and administering the SCRWA budget, and monitoring revenues and expenditures. • Research, develop, and monitor grant funding, programs, and projects. • Research, analyze, and make recommendations for cost effective departmental operations to include: designing, administering, and evaluating departmental programs and services; addressing process issues; and implementing required changes.
• Select, train, and evaluate department personnel.
• Monitor developments related to municipal utilities matters; evaluate their impact upon City operations and recommend policy and procedural improvements. • Coordinate the activities of the Utilities Department with those of other departments and agencies.

Meet with and represents the City in project development and negotiations with regional agencies such as Valley Water and our SCRWA partner, City of Morgan Hill.

• Serve as the City’s representative on all local, regional, and state-level boards including those at Valley Water to ensure that the City has representation for all matters impacting Gilroy rate payers. • May be assigned to support the Operations Branch, or other branches, of the city’s Emergency Operations Center.
• Perform related work 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 $131.22 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 employees’ compensation.

Retired Annuitant agrees and acknowledges that he shall not perform any services under this Agreement or as an extra help retired annuitant 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 preapproved 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 location for services will be at the following addresses:

Gilroy Utilities Department, 250 W. Sixth Street, Gilroy, California 95020 Gilroy Corporation Yard, 613 Old Gilroy 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 December, 2025.

Employer: City of Gilroy
Brad Kilger, Interim City Administrator
Post-Retirement Employment [21221(h)]
Effective Date
December 23, 2025
Retired Annuitant
Karl Bjarke
Approved as to Form:

Andrew L. Faber, City Attorney
Attest:

Kim Mancera, City Clerk

City of Gilroy

STAFF REPORT
Agenda Item Title: Consent the Appointment of LeeAnn McPhillips (CalPERS Retired Annuitant as of December 31, 2025) as the Interim Administrative Services & Human Resources Director/Risk Manager Effective December 31, 2025 and Adoption of a
Resolution Approving the Appointment and Employment
Agreement and Waiving the 180-Day Wait Period for PostRetirement Employment Meeting Date: December 8, 2025
From: Brad Kilger, Interim City Administrator
Department: Administration
Submitted by: Brad Kilger, City Administrator
Prepared by: Brad Kilger, City Administrator
STRATEGIC PLAN GOALS: Not Applicable

RECOMMENDATION
a) Consent the City Administrator's recommendation to appoint LeeAnn McPhillips (CalPERS Retired Annuitant as of December 31, 2025) as Interim Administrative Services & Human Resources Director/Risk Manager effective December 31, 2025.

b) Adopt a resolution of the City Council of the City of Gilroy approving the appointment of LeeAnn McPhillips (CalPERS Retired Annuitant as of December 31, 2025) as Interim Administrative Services & Human Resources Director/Risk Manager effective December 31, 2025 and waiving the 180-day wait period for post-retirement employment pursuant to Government Code Section 21221(h) and Section 7522.56 authorizing the City Administrator to execute the employment agreement.

EXECUTIVE SUMMARY
To ensure continuity in the leadership and management of the Administrative Services & Human Resources/Risk Management Department, it is recommended that the City Council consent to the appointment of LeeAnn McPhillips (CalPERS retired annuitant

effective December 31, 2025) as Interim Administrative Services & Human Resources Director/Risk Manager effective December 31, 2025 and approve the resolution consenting to the appointment, waiving the 180-day wait period, and authorizing the City Administrator to execute the employment agreement. This date will ensure continuity for the City and the Department and will ensure that vital work continues until the recruitment process can be completed and a smooth transition can occur.

BACKGROUND
After over twenty-six years with the City of Gilroy, LeeAnn McPhillips has elected to retire effective December 31, 2025. With this retirement, the City of Gilroy will have a vacancy in the position of Administrative Services & Human Resources Director/Risk Manager. The City plans to commence a recruitment for a new Director prior to December 31, 2025. Ms. McPhillips has agreed to continue in an interim capacity while the recruitment process is being conducted and to ensure a smooth handoff to the next Director. Given that she has been serving in this capacity for many years and has significant institutional knowledge, it will be a great help to the City to have her continue in a part-time basis until the position is filled. Due to some family obligations, Ms.

McPhillips will work an average of 30 hours per week – some weeks may be more or less depending on the needs of the City and her family obligations.

California Government Code Section 21221(h) allows an agency to hire a retired annuitant to serve in an “interim” position when there is an immediate need for expertise and specialized skills and a recruitment is underway for the position. Prior to December 31, 2025, the City will initiate a recruitment for a new Director and complete the selection process in the next four to six months. Further, the retired annuitant may not work more than 960 hours in a fiscal year (July 1 – June 30) and cannot receive any compensation other than the hourly rate of pay for the work performed by other employees performing comparable duties.

In addition, Government Code Section 7522.56 eliminates the 60-day bona fide separation from employment prior to establishing a post-retirement employment arrangement and allows the agency to adopt a resolution to waive the 180-day wait period for post-retirement employment when the retiree is older than the normal retirement age contained in any formula which computes the retiree’s retirement allowance. Ms. McPhillips meets this requirement.

In the Interim Administrative Services & Human Resources Director/Risk Manager role, and as an officer of the City, LeeAnn McPhillips agrees to perform the following duties related to the Gilroy Administrative Services & Human Resources/Risk Management Department:
• Lead, manage, and supervise the functions of Human Resources, Risk Management, Facilities, & Fleet.
• Serve as a member of the Senior Executive/Department Head team.

• resources programs, including recruitment and selection, classification and pay, labor relations, equal employment, risk management, and training. • Represent the City in contract negotiations with representatives of bargaining units, and work with employee representatives to foster positive employee relations.
• Administer the City's risk management/risk avoidance program, including general liability and workers' compensation claims; represent the City at meetings with third party administrator.
• Manage the City's benefits, health, and safety programs. • Identify, plan, and coordinate staff development training for City employees. • Supervise and conduct classification and compensation studies. • Assign, review, coordinate and evaluate the work of Human Resources staff members; provide necessary training and guidance; take appropriate disciplinary actions.
• Draft, recommend, and implement administrative policies and procedures related to Human Resources, labor relations, and Risk Management. • Administer, interpret, and apply provisions of personnel policies and regulations, memoranda of understanding, and related policy documents. • Advise and assist managers on personnel and labor relations matters, including employment, disciplinary actions, grievances, and performance problems and evaluations.
• Serve as staff to City Personnel Commission; prepare agendas and recommendations.
• Supervise the preparation and maintenance of records and reports, including personnel files, required statistical reporting, and related documents. • Investigate allegations of sexual harassment, employment discrimination, and other policy violations; monitor the City's equal employment program. • Serve on internal and external committees and represent the City in related professional areas.
• Develop and assist in the development and implementation of goals, objectives, policies, priorities, and work standards.
• Prepare and present reports, recommendations, and analyses related to assigned areas of work.
• Develop specifications, evaluate proposals, and recommend selection of consultants/contractors; monitors and administer consultant/contractor agreements/contracts.
• Prepare, or oversee the preparation, and administer budget for Human Resources, Risk Management, Facilities, and Fleet.
• Assist City Administrator in the evaluation of the Administrative Services functions for possible reorganization of the Facilities and Fleet functions. • Perform related work as assigned.

As Interim Administrative Services & Human Resources Director/Risk Manager, LeeAnn McPhillips will report directly to the City Administrator and shall comply with all City

rules, policies, guidelines, regulations, and laws. Ms. McPhillips will be paid $135.16 per hour (her current base salary rate) with no other benefits or incentives.

ANALYSIS
n/a

ALTERNATIVES
The recommended alternative is to consent the appointment of LeeAnn McPhillips as the Interim Administrative Services & Human Resources Director/Risk Manager (retired annuitant) and adopt the resolution approving her appointment and waiving the 180-day wait period for post-retirement employment and employment agreement. The alternative would be not to approve the interim appointment and the City would need to identify someone else to serve as the Interim Administrative Services & Human Resources Director/Risk Manager. This alternative is not recommended.

FISCAL IMPACT/FUNDING SOURCE
This interim appointment provides a cost savings to the city as only the hourly rate for the position is paid to the retired annuitant and not any benefits. It is estimated that this interim appointment will save the city approximately $6,800 per month (general fund).

Over a four-six month period, the savings will total approximately $27,200 - $40,800.

PUBLIC OUTREACH
n/a

NEXT STEPS
Upon Council approval, the Interim City Administrator and LeeAnn McPhillips will sign the employment agreement. Ms. McPhillips will begin work in the Interim capacity on December 31, 2025. Further, a recruitment process for a new Director will be initiated prior to December 31, 2025 as required by CalPERS.

Attachments:

1. McPhillips LeeAnn Council Resolution for Interim AS & HR Director RIsk Mgr Appointment 21221h and 180 Day Waiver 12.8.25

2. McPhillips LeeAnn Employment Agreement Dec 2025 Exhibit A

RESOLUTION NO. 2025-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF GILROY APPOINTING LEEANN MCPHILLIPS AS

INTERIM ADMINISTRATIVE SERVICES & HUMAN

RESOURCES DIRECTOR/RISK MANAGER, APPROVING
EMPLOYMENT AGREEMENT, AND WAIVING THE 180-

DAY WAIT PERIOD
WHEREAS, in compliance with Government Code section 7522.56 the City of Gilroy must provide CalPERS this certification resolution when hiring a retiree before 180 days has passed since his or her retirement date; and
WHEREAS, LeeAnn McPhillips, will retire from the City of Gilroy in the position of Administrative Services & Human Resources Director/Risk Manager, effective December 31, 2025; and
WHEREAS, section 7522.56 requires that post-retirement employment commence no earlier than 180 days after the retirement date, which is June 30, 2026 (date of 181st day after retirement) without this certification resolution; and
WHEREAS, section 7522.56 provides that this exception to the 180-day wait period shall not apply if the retiree accepts any retirement-related incentive; and WHEREAS, the Gilroy City Council, the City of Gilroy, and LeeAnn McPhillips certify that LeeAnn McPhillips has not and will not receive a Golden Handshake or any other retirementrelated incentive; and WHEREAS, section 7522.56 provides that if the retiree is older than the normal retirement age based on all the retiree’s retirement formulas, the employer may establish an agreement with the retiree for post-retirement employment in advance of the retiree’s retirement date; and WHEREAS, the Gilroy City Council desires to consent the City Administrator’s recommendation to appoint LeeAnn McPhillips as an interim appointment retired annuitant to the vacant position of Administrative Services & Human Resources Director/Risk Manager for the City of Gilroy under Government Code section 21221(h), effective December 31, 2025; 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, a step that will be completed prior to December 31, 2025; and
WHEREAS, this Section 21221(h) appointment shall only be made once and therefore will end on the date immediately preceding the date on which the permanent replacement for the vacant position of Administrative Services & Human Resources Director/Risk Manager for the City of Gilroy commences his or her employment or, if earlier, the date that this appointment is terminated by the City or LeeAnn McPhillips; and
WHEREAS, the entire employment agreement between LeeAnn McPhillips and the City of Gilroy has been reviewed by this body and is attached hereto as Exhibit A; and WHEREAS, no matters, issues, terms, or conditions related to this employment and appointment have been or will be placed on a consent calendar; and

Resolution No. 2025-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY APPOINTING LEEANN MCPHILLIPS

AS INTERIM ADMINISTRATIVE SERVICES & HUMAN RESOURCES DIRECTOR/RISK MANAGER AND

APPROVING EMPLOYMENT AGREEMENT
City Council Meeting | December 8, 2025

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
WHEREAS, the maximum base monthly salary for this position is $23,427.67 and the hourly equivalent is $135.16 and the minimum base monthly salary for this position is $17,056.25 and the hourly equivalent is $98.40; and
WHEREAS, the hourly rate to be paid to LeeAnn McPhillips will be $135.16; and WHEREAS, LeeAnn McPhillips 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 LeeAnn McPhillips as described herein and detailed in the attachment employment agreement and that this appointment is necessary to fill the critically needed position of Administrative Services & Human Resources Director/Risk Manager for the City of Gilroy to provide the specialized skills necessary to lead and manage the City’s Administrative Services & Human Resources/Risk Management Department.

3. The City Council hereby authorizes the appointment of LeeAnn McPhillips to Interim Administrative Services & Human Resources Director/Risk Manager effective December 31, 2025 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 Administrative Services & Human Resources Director/Risk Manager for the City of Gilroy commences his or her employment or, if earlier, the date that this appointment is terminated by the City or LeeAnn McPhillips.

4. The City Council hereby authorizes the appointment of LeeAnn McPhillips to Interim Administrative Services & Human Resources Director/Risk Manager effective December 31, 2025 pursuant to the authority provided under Government Code Section 7522.56 which eliminates the 60-day bona fide separation from employment prior to establishing a post-retirement employment arrangement and adopting a resolution to waive the 180-day wait period for post-retirement employment as LeeAnn McPhillips is older than the highest normal retirement age contained in any formula which computes her retirement allowance.

Resolution No. 2025-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY APPOINTING LEEANN MCPHILLIPS

AS INTERIM ADMINISTRATIVE SERVICES & HUMAN RESOURCES DIRECTOR/RISK MANAGER AND

APPROVING EMPLOYMENT AGREEMENT
City Council Meeting | December 8, 2025

5. The employment agreement with LeeAnn McPhillips, 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 on December 8, 2025, and is effective December 31, 2025.

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

PASSED AND ADOPTED this 8
th day of December, 2025 by the following roll call
vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

APPROVED:

Greg Bozzo, Mayor
ATTEST:
_______________________
Kim Mancera, City Clerk

EXHIBIT A

RETIRED ANNUITANT EMPLOYMENT AGREEMENT
The Retired Annuitant Employment Agreement (“Agreement”) is made by and between LeeAnn McPhillips, an individual (“Retired Annuitant”) effective December 31, 2025 (“Effective Date”).

RECITALS
A. Retired Annuitant previously was employed by the City of Gilroy and City of Morgan Hill, CalPERS employers since 1990, having served as Gilroy’s Administrative Services & Human Resources Director/Risk Manager from 2020-2025 and Gilroy’s Human Resources Director/Risk Manager from 1999 - 2020; and
B. Retired Annuitant will retire from public service effective December 31, 2025 and will begin collecting a retirement pension from the California Public Employees’ Retirement System (CalPERS); and
C. The City will have a vacancy in the position of Administrative Services & Human Resources Director/Risk Manager, a regular position for which the City will commence steps to initiate the recruitment for a permanent appointment prior to December 31, 2025; and D. The City has an immediate need for an employee to temporarily perform the position of Administrative Services & Human Resources Director/Risk Manager, a position involving specialized skills and training, and which is critically necessary to the on-going duties and functions of the City of Gilroy and the City’s Administrative Services & Human Resources/Risk Management Department; and
E. Retired Annuitant has the necessary qualifications, experience, and abilities to assist City in the duties of leadership and management of the Administrative Services & Human Resources/Risk Management 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. Retired Annuitant’s employment is authorized by Government Code section 7522.56 which eliminates the 60-day bona fide separation from employment prior to establishing a post-retirement employment arrangement and allows the agency to adopt a resolution to waive the 180-day wait period for post-retirement employment when the retiree is older than the normal retirement age contained in any formula which computes the retiree’s retirement allowance. Retired Annuitant meets this requirement.

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 December 31, 2025 until such time as a permanent replacement for the position of Administrative Services & Human Resources Director/Risk Manager 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 Administrative Services & Human Resources/Risk Management Department:
• Lead, manage, and supervise the functions of Human Resources, Risk Management, Facilities, & Fleet. • Serve as a member of the Senior Executive/Department Head team. • Plan, organize, supervise, and participate in the activities of the City's human resources programs, including recruitment and selection, classification and pay, labor relations, equal employment, risk management, and training.
• Represent the City in contract negotiations with representatives of bargaining units, and work with employee representatives to foster positive employee relations. • Administer the City's risk management/risk avoidance program, including general liability and workers' compensation claims; represent the City at meetings with third party administrator. • Manage the City's benefits, health, and safety programs. • Identify, plan, and coordinate staff development training for City employees. • Supervise and conduct classification and compensation studies. • Assign, review, coordinate and evaluate the work of Human Resources staff members; provide necessary training and guidance; take appropriate disciplinary actions. • Draft, recommend, and implement administrative policies and procedures related to Human Resources, labor relations, and Risk Management.
• Administer, interpret, and apply provisions of personnel policies and regulations, memoranda of understanding, and related policy documents.
• Advise and assist managers on personnel and labor relations matters, including employment, disciplinary actions, grievances, and performance problems and evaluations. • Serve as staff to City Personnel Commission; prepare agendas and recommendations. • Supervise the preparation and maintenance of records and reports, including personnel files, required statistical reporting, and related documents.
• Investigate allegations of sexual harassment, employment discrimination, and other policy violations; monitor the City's equal employment program.
• Serve on internal and external committees and represent the City in related professional areas. • Develop and assist in the development and implementation of goals, objectives, policies, priorities, and work standards.
• Prepare and present reports, recommendations, and analyses related to assigned areas of work.

• Develop specifications, evaluate proposals, and recommend selection of consultants/contractors; monitors and administer consultant/contractor agreements/contracts. • Prepare, or oversee the preparation, and administer budget for Human Resources, Risk Management, Facilities, and Fleet.
• Assist City Administrator in the evaluation of the Administrative Services functions for possible reorganization of the Facilities and Fleet functions.
• Perform related work 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 $135.16 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 employees’ compensation.

Retired Annuitant agrees and acknowledges that she shall not perform any services under this Agreement or as an extra help retired annuitant 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 her hours on a preapproved 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 location for services will be at the following addresses:

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 December, 2025.

Employer: City of Gilroy
Brad Kilger, Interim City Administrator
Post-Retirement Employment [21221(h)]
Effective Date
December 31, 2025
Retired Annuitant
LeeAnn McPhillips
Approved as to Form:

Andrew L. Faber, City Attorney
Attest:

Kim Mancera, City Clerk