Agenda packet — Gilroy City Council, December 8, 2025 (part 1 of 3)

December 8, 2025 | 6:00 PM Page 1 of 9 City Council
Regular Meeting

CITY COUNCIL

REGULAR MEETING
AGENDA

CITY CHAMBERS, CITY HALL
7351 ROSANNA STREET, GILROY, CA
95020
MONDAY, DECEMBER 8, 2025 | 6:00 PM
MAYOR
Greg Bozzo

COUNCIL MEMBERS
Dion Bracco
Tom Cline
Terence Fugazzi
Zach Hilton
Carol Marques
Kelly Ramirez
CITY COUNCIL PACKET MATERIALS ARE AVAILABLE ONLINE AT www.cityofgilroy.org AGENDA CLOSING TIME IS 5:00 P.M. THE TUESDAY PRIOR TO THE MEETING

COMMENTS BY THE PUBLIC WILL BE TAKEN ON AGENDA ITEMS BEFORE ACTION IS TAKEN BY THE CITY COUNCIL. Public testimony is subject to reasonable regulations, including but not limited to time restrictions for each individual speaker. **Please limit your comments to 3 minutes.** The amount of time allowed per speaker may vary at the Mayor’s discretion depending on the number of speakers and length of the agenda.

Written comments on any agenda item may be emailed to the City Clerk’s Office at [email protected] or mailed to the Gilroy City Clerk’s Office at City Hall, 7351 Rosanna Street, Gilroy, CA 95020. Comments received by the City Clerk’s Office by 1 p.m. on the day of a Council meeting will be distributed to the City Council prior to or at the meeting and available for public inspection with the agenda packet located in the lobby of Administration at City Hall, 7351 Rosanna Street prior to the meeting. Any correspondence received will be incorporated into the meeting record. Items received after the 1 p.m. deadline will be provided to the City Council as soon as practicable. Written comments are also available on the City’s Public Records Portal at bit.ly/3NuS1IN.

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

If you challenge any planning or land use decision made at this meeting in court, you may be limited to raising only those issues you or someone else raised at the public hearing held at this meeting, or in written correspondence delivered to the City Council at, or prior to, the public hearing. Please take notice that the time within which to seek judicial review of any final administrative determination reached at this meeting is governed by Section 1094.6 of the California Code of Civil Procedure.

A Closed Session may be called during this meeting pursuant to Government Code Section 54956.9 (d)(2) if a point has been reached where, in the opinion of the legislative body of the City on the advice of its legal counsel, based on existing facts and circumstances, there is a significant exposure to litigation against the City.

Materials related to an item on this agenda submitted to the City Council after distribution of the agenda packet are available with the agenda packet on the City website at www.cityofgilroy.org subject to the Staff’s ability to

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Regular Meeting
post the documents before the meeting.

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

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

FOR MORE INFORMATION ON YOUR RIGHTS UNDER THE OPEN GOVERNMENT

ORDINANCE, TO RECEIVE A FREE COPY OF THE ORDINANCE OR TO REPORT A

VIOLATION OF THE ORDINANCE, CONTACT THE OPEN GOVERNMENT COMMISSION STAFF AT (408) 846-0204.

If you need assistance with translation and would like to speak during public comment, please contact the City Clerk a minimum of 72 hours prior to the meeting at 408-846-0204 or e-mail the City Clerk’s Office at [email protected].

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

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

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

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

The agenda for this regular meeting is outlined as follows:

1. OPENING

1.1. Call to Order

1.2. Pledge of Allegiance

1.3. Invocation

1.4. City Clerk's Report on Posting the Agenda

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1.5. Roll Call

1.6. Orders of the Day

1.7. Employee Introductions

2. PRESENTATIONS TO THE COUNCIL

2.1. Presentation of the 2025 City of Gilroy Highlights Video

2.2. Children's Advocacy Center (CAC) For South County Presentation

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

AGENDA BUT WITHIN THE SUBJECT MATTER JURISDICTION OF THE CITY

COUNCIL
This portion of the meeting is reserved for persons desiring to address the Council on matters within the Gilroy City Council’s jurisdiction but not on the agenda. Persons wishing to address the Council are requested to complete a Speaker’s Card located at the entrances and handed to the City Clerk. Speakers are limited to 1 to 3 minutes each, varying at the Mayor’s discretion depending on the number of speakers and length of the agenda. The law does not permit Council action or extended discussion of any item not on the agenda except under special circumstances. If Council action is requested, the Council may place the matter on a future agenda.

Written comments to address the Council on matters not on this agenda may be e-mailed to the City Clerk’s Office at [email protected] or mailed to the Gilroy City Clerk’s Office at City Hall, 7351 Rosanna Street, Gilroy, CA 95020. Comments received by the City Clerk’s Office by 1:00 pm on the day of a Council meeting will be distributed to the City Council prior to or at the meeting and available for public inspection with the agenda packet located in the lobby of Administration at City Hall, 7351 Rosanna Street, prior to the meeting. Any correspondence received will be incorporated into the meeting record. Items received after the 1:00pm deadline will be provided to the City Council as soon as practicable. Written material provided by public members under this section of the agenda will be limited to 10 pages in hard copy. An unlimited amount of material may be provided electronically.

3. REPORTS OF COUNCIL MEMBERS
Council Member Bracco – Downtown Committee, Santa Clara County Library Joint Powers Authority, Santa Clara Water Commission, Santa Clara Valley Water Joint Water Resources Committee, SCRWA
Council Member Fugazzi – Santa Clara Water Commission (alternate), Silicon Valley Regional Interoperability Authority Board (alternate), SCRWA, Visit Gilroy California Welcome Center, VTA Mobility Partnership Committee
Council Member Marques – ABAG, Downtown Committee, Santa Clara County Library Joint

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Powers Authority (alternate), Santa Clara Valley Habitat Agency Governing Board, Santa Clara Valley Habitat Agency Implementation Board, SCRWA (alternate) Council Member Hilton – CalTrain Policy Group, Santa Clara County Expressway Plan 2040 Advisory Board (alternate), Silicon Valley Clean Energy Authority JPA Board, South County Youth Task Force Policy Team, VTA Policy Advisory Committee Council Member Ramirez – ABAG (alternate), Gilroy Gardens Board of Directors (alternate), Gilroy Sister Cities, Gilroy Youth Task Force (alternate), SCRWA, Santa Clara Housing and Community Development Advisory Committee
Council Member Cline – CalTrain Policy Group (alternate), Gilroy Sister Cities (alternate), Gilroy Youth Task Force, Santa Clara County Expressway Plan 2040 Advisory Board, Silicon Valley Clean Energy Authority JPA Board (alternate), Silicon Valley Regional Interoperability Authority Board, Visit Gilroy California Welcome Center (alternate), VTA Mobility Partnership Committee, VTA Policy Advisory Committee (alternate)
Mayor Bozzo – Gilroy Gardens Board of Directors, Santa Clara Valley Water Joint Water Resources Committee, South County Youth Task Force Policy Team, VTA Board of Directors (alternate), Santa Clara Housing and Community Development Advisory Committee (alternate)

4. CONSENT CALENDAR
All matters listed under the Consent Calendar are considered by the City Council to be routine and will be enacted by one motion. There will be no separate discussion of these items unless a request is made by a member of the City Council or a member of the public. Any person desiring to speak on any item on the consent calendar should ask to have that item removed from the consent calendar prior to the time the City Council votes to approve. If removed, the item will be discussed in the order in which it appears.

4.1. Approve the minutes of the November 17, 2025 City Council Regular Meeting

4.2. Approve Notice of Acceptance of Completion, and Reduction of the Faithful Performance and Payment Security Bonds for Property Improvement Agreement No. 2020-01, Town Center Multifamily Tract 10472

4.3. Approve Notice of Acceptance of Completion, and Reduction of the Faithful Performance and Payment Security Bonds for Property Improvement Agreement No. 2020-02, Nebbiolo Malvasia The Glen Tract 10520

4.4. Acceptance of the Annual Development Impact Fee Report for Fiscal Year 2024- 2025 as Required under Government Code 66000

4.5. Approval of a Contract Amendment to the Tree Maintenance Contract with West Coast Arborists, Inc in the Amount of $69,319 for Hecker Pass Tree Pruning

4.6. Adopt a FY26 and FY27 Budget Amendment Resolution to the Police Department BSCC Title II Grant Fund for $290,225 and Approve a First Amendment To Agreement for Services of $116,617.50 with Youth Alliance for the South County

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Restorative Justice Youth Diversion Program from January 1, 2026 through September 30, 2026

4.7. Award a Contract to Youth Alliance for $130,105.14 for South County Youth Task Force (SCYTF) School-Based Youth Services

4.8. Approve the Second Amendment to the Agreement with Cal-West Lighting & Signal Maintenance, Inc. for Streetlight and Traffic Signal Maintenance Services, and Adopt a Resolution Approving a Budget Amendment for the Signal/ Street Light Maintenance Project (Project No. 800340)

4.9. Receive Report Regarding Upcoming 2026 Commission Vacancies per Maddy Act

4.10. Authorization for Council Member Travel to the League of California Cities 2026 Mayors and Council Members Academy

4.11. Adopt an Ordinance to Amend Board and Commission Terms and Appointment Process

4.12. Authorize the Surplus of Sixteen Vehicles/Equipment and Authorize the Disposal of the Surplus by Auction

4.13. Claim of Antonio Garcia (The City Administrator recommends a "yes" vote under the Consent Calendar shall constitute denial of the claim)

4.14. Claim of Stephanie Moretto (The City Administrator recommends a "yes" vote under the Consent Calendar shall constitute denial of the claim)

4.15. Claim of Jeff Scherck (The City Administrator recommends a "yes" vote under the Consent Calendar shall constitute denial of the claim)

5. PUBLIC HEARINGS

5.1. Consider Extending the Urgency Interim Ordinance Prohibiting the Issuance of Tobacco Retailer Permits for a Period of Ten (10) Months and Fifteen (15) Days within the Downtown Specific Plan Area

1. Disclosure of Ex-Parte Communications

2. Staff Report:

Sharon Goei, Community Development Director

3. Open Public Hearing

4. Close Public Hearing

5. Possible Action:

1. Determine this action is exempt from environmental review under California Environmental Quality Act (CEQA) pursuant to Section 15262, Section 15060(c)(2), 15060(c)(3), and 15061(b)(3) of the

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CEQA Guidelines: and

2. Adopt an extension of the Urgency Interim Ordinance established to prohibit the issuance or approval of any new Tobacco Retailer Permit for an additional ten (10) months and fifteen (15) days within the Gilroy Downtown Specific Plan Area.

3. Review, approve and issue the 10-day report as required by Government Code Section 65858(d) for the extension of the temporary moratorium.

6. INTRODUCTION OF NEW BUSINESS

6.1. Commemorative Flag Application Review for Calendar Year 2026

1. Staff Report:

Bryce Atkins, Assistant to the City Administrator

2. Public Comment

3. Possible Action:

Council consideration regarding the Commemorative Flag Flying Application for the Progressive Pride Flag.

6.2. Consideration of options and recommendations for meeting State-mandated stormwater trash capture requirements.

1. Staff Report:

John Doughty, Public Works Director

2. Public Comment

3. Possible Action:

It is recommended that the City Council authorize staff to immediately:

1. Prepare and advertise a Request for Proposal (RFP) for the fabrication and installation of 73 connector pipe screens (a type of certified full trash capture system) to meet the City's December 2026, 30-percent MS4 trash capture mandate; and

2. In conjunction with the bid award, return to City Council with a budget amendment to add the Connector Pipe Screen Project into the FY 26 Capital Budget with funding from Stormwater Management Fund (422).

It is further recommended that the City Council direct staff to:

1. Conduct an engineering study and finance plan to implement hydrodynamic separators to meet the 65-percent and 100-percent MS4 trash capture requirements; or

2. In alternative, develop a plan for meeting 65-percent and 100-percent

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MS4 trash capture mandates under the Track 2 compliance option.

6.3. Mayoral Appointments of Council Members to Serve in Regional Representative Seats and Seats on Local Boards and Committees

1. Staff Report:

Kim Mancera, City Clerk

2. Public Comment

3. Possible Action:

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

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

1. Staff Report:

Kim Mancera, City Clerk

2. Public Comment

3. Possible Action:

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

6.5. 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

1. Staff Report:

LeeAnn McPhillips, Assistant City Administrator/HR Director

2. Public Comment

3. Possible Action:
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.

6.6. 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

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1. Staff Report:

LeeAnn McPhillips, Assistant City Administrator/HR Director

2. Public Comment

3. Possible Action:
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.

6.7. 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 Post-Retirement Employment

1. Staff Report:

Brad Kilger, City Administrator

2. Public Comment

3. Possible Action:
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.

7. CITY ADMINISTRATOR'S REPORTS

8. CITY ATTORNEY'S REPORTS

9. CLOSED SESSION

9.1. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Pursuant to Government Code Section 54956.8 and Gilroy City Code Section 17A.8
Property: APN 808-58-004

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Negotiators: Brad Kilger, Interim City Administrator, John Doughty, Director Public Works
Other Party to Negotiations: John Filice, Glen Loma
Negotiations: Price and Term of Payment for Sale and/or Lease

10. ADJOURN TO OPEN SESSION

11. ADJOURNMENT

FUTURE MEETING DATES
January 2026
05 26
City Council Regular Meeting - 6:00 p.m.

City Council Regular Meeting - 6:00 p.m.

February 2026
09 23
City Council Regular Meeting - 6:00 p.m.

City Council Regular Meeting - 6:00 p.m.

March 2026
02 16
City Council Regular Meeting - 6:00 p.m.

City Council Regular Meeting - 6:00 p.m.

Meetings are webstreamed on the City of Gilroy’s website at gilroy.city/meetings.

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November 17, 2025 | 6:00 PM

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1. OPENING

1. Call to Order
City of Gilroy
DRAFT
City Council
Minutes
Monday, November 17, 2025 | 6:00 PM
The meeting was called to order by Mayor Bozzo at 6:00 PM.

2. Roll Call
Attendance Attendee Name
Present Council Member Dion Bracco
Council Member Tom Cline
Council Member Terence Fugazzi
Council Member Carol Marques
Council Member Kelly Ramirez
Mayor Greg Bozzo
Absent Council Member Zach Hilton

3. City Clerk's Report on Posting the Agenda
City Clerk Kim Mancera reported on the Posting of the Agenda.

4. Pledge of Allegiance
Council Member Cline led the Pledge of Allegiance.

5. Invocation
Pastor Trevor Van Laar with Gilroy Presbyterian Church led the Invocation.

6. Orders of the Day
None.

7. Employee Introductions
Finance Director Harjot Sangha introduced Accounting Assistant Nallely Martinez.

2. CEREMONIAL ITEMS - Proclamations and Awards

1. Open Government Week Proclamation
Chair Shane Somavia provided the Open Government Commission year-end report and presentation.

3. PRESENTATIONS TO THE COUNCIL

1. Annual Presentation by the Planning Commission
Chair Manny Bhandal provided the Planning Commission year-end report and

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presentation.

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

AGENDA BUT WITHIN THE SUBJECT MATTER JURISDICTION OF THE CITY

COUNCIL
Mayor Bozzo opened public comment at 6:20 P.M.

Ann Marie McCauley - commented on the unhoused issue in Gilroy and thanked Mayor Bozzo and Council Member Ramirez for being involved.

Paul Van Pelt - commented on his RV being towed from in front of his house.

Greg Felios - commented on the State of the City address.

Ron Kirkish - commented on the information he received regarding the DA rejecting prosecuting referrals in 2025.

With no further speakers, Mayor Bozzo closed public comment.

4. REPORTS OF COUNCIL MEMBERS

1. Council Member Bracco – Downtown Committee, Santa Clara County Library Joint Powers Authority, Santa Clara Water Commission, Santa Clara Valley Water Joint Water Resources Committee, SCRWA
Council Member Fugazzi – Santa Clara Water Commission (alternate), Silicon Valley Regional Interoperability Authority Board (alternate), SCRWA, Visit Gilroy California Welcome Center, VTA Mobility Partnership Committee Council Member Marques – ABAG, Downtown Committee, Santa Clara County Library Joint Powers Authority (alternate), Santa Clara Valley Habitat Agency Governing Board, Santa Clara Valley Habitat Agency Implementation Board, SCRWA (alternate)
Council Member Hilton – CalTrain Policy Group, Santa Clara County Expressway Plan 2040 Advisory Board (alternate), Silicon Valley Clean Energy Authority JPA Board, South County Youth Task Force Policy Team, VTA Policy Advisory Committee
Council Member Ramirez – ABAG (alternate), Gilroy Gardens Board of Directors (alternate), Gilroy Sister Cities, Gilroy Youth Task Force (alternate), SCRWA, Santa Clara Housing and Community Development Advisory Committee
Council Member Cline – CalTrain Policy Group (alternate), Gilroy Sister Cities (alternate), Gilroy Youth Task Force, Santa Clara County Expressway Plan 2040 Advisory Board, Silicon Valley Clean Energy Authority JPA Board (alternate), Silicon Valley Regional Interoperability Authority Board, Visit Gilroy California Welcome Center (alternate), VTA Mobility Partnership

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Committee, VTA Policy Advisory Committee (alternate)
Mayor Bozzo – Gilroy Gardens Board of Directors, Santa Clara Valley Water Joint Water Resources Committee, South County Youth Task Force Policy Team, VTA Board of Directors (alternate), Santa Clara Housing and Community Development Advisory Committee (alternate)
Council Member Bracco - No report.

Council Member Fugazzi - No report.

Council Member Marques - Wished Council Member Bracco and Council Member Ramirez a happy belated birthday.

Council Member Ramirez - Thanked Miguel Flacker for putting on the Veteran's Day Parade. She shared that she had the opportunity to ride along with the Chestnut St Fire Station. She thanked the Gilroy Fire Department for their professionalism. She encouraged her fellow Council Members to participate in a ride-along.

Council Member Cline - Thanked Miguel Flacker for putting on the Veteran's Day parade.

Mayor Bozzo - Thanked City Staff and Public Works Director for the great work on the paving program this year.

5. CONSENT CALENDAR
Mayor Bozzo opened public comment at 6:33 P.M.

With no speakers, Mayor Bozzo closed public comment.

Motion
Approve the consent calendar.

RESULT: Passed
MOVER: Council Member Tom Cline
SECONDER: Council Member Kelly Ramirez
AYES: Council Member Dion Bracco, Council Member Tom Cline, Council Member Terence Fugazzi, Council Member Carol Marques, Council Member Kelly Ramirez, Mayor Greg Bozzo
NAYS: None
ABSENT: Council Member Zach Hilton

1. Approve the minutes of the November 3, 2025 City Council Study Session and the November 3, 2025 City Council Regular Meeting

2. Authorization to Deaccession Artifacts from the Collection Managed by the Gilroy Museum

3. Acceptance of the Cash and Investment Report as of September 30, 2025

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4. Adoption of an Ordinance of the City Council of the City of Gilroy Amending Chapter 30, Article LIV of the Gilroy City Code Relating to Accessory Dwelling Units (Z 25-02)

5. Claim of Curtis Crackel (The City Administrator recommends a "yes" vote under the Consent Calendar shall constitute denial of the claim)

6. Claims of Yolanda Alanis and Tony Jose Alanis (The City Administrator recommends a "yes" vote under the Consent Calendar shall constitute denial of the claims)

7. Consider the Approval of Santa Clara Valley Habitat Agency to Proceed with a Habitat Plan Amendment

6. BIDS AND PROPOSALS

1. Award Two Opioid Remediation Grants, not-to-exceed $118,675 to Carry the Vision and $118,676 to Youth Alliance, for Opioid Remediation Services; Adopt a Resolution Amending the Fiscal Year 2026 Budget in the Opioid Settlement Fund by $237,352; and Authorize the City Administrator to Negotiate and Execute Final Grant Agreements
Deputy Director for Community Development Bryce Atkins provided a report and presentation.

Mayor Bozzo opened public comment at 6:41 P.M.

Ann Marie McCauley - commented on Carry the Vision and Youth Alliance and the work they do.

Mark Ashford - commented on his work with and the programs at Carry the Vision.

Mario Guerra - commented on his participation with Carry the Vision and how it has helped him.

Charles Good III - commented on the work of Carry the Vision.

Mario Castro - commented on his work with Carry the Vision and their programs.

Patricia Marquez-Singh - commented on her support of the work that Carry the Vision does.

Aubrey Tasby - commented on his participation with Carry the Vision.

Sam Brown Jr - commented on how Carry the Vision has helped him.

Ron Kirkish - commented on drug issues and thanked Carry the Vision for their comments.

With no further speakers, Mayor Bozzo closed public comment.

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Motion
Award opioid remediation grant, reimbursement-based and not to exceed $237,352 to Carry the Vision, for opioid remediation services.

RESULT: Passed
MOVER: Council Member Dion Bracco
SECONDER: Council Member Terence Fugazzi
AYES: Council Member Dion Bracco, Council Member Tom Cline, Council Member Terence Fugazzi, Council Member Carol Marques, Council Member Kelly Ramirez, Mayor Greg Bozzo
NAYS: None
ABSENT: Council Member Zach Hilton
Motion
Adopt a resolution amending the 2026 Fiscal Year Budget in the Opioid Settlement Fund by $237,352 and authorize the City Administrator to negotiate and execute the final grant agreement.

RESULT: Passed
MOVER: Council Member Tom Cline
SECONDER: Council Member Carol Marques
AYES: Council Member Dion Bracco, Council Member Tom Cline, Council Member Terence Fugazzi, Council Member Carol Marques, Council Member Kelly Ramirez, Mayor Greg Bozzo
NAYS: None
ABSENT: Council Member Zach Hilton

2. Award the Interim Aquatics Center Operator Contract to Swan Swimming, LLC for an Amount Not to Exceed $266,662 and Authorize the City Administrator to Complete Negotiations and Execute the Agreement
Deputy Director of Community Development Bryce Atkins provided a report and presentation.

Mayor Bozzo opened public comment at 7:14 P.M.

Alicia - commented on supporting the 1-year contract with Swimming Swan and would like to see the City of Gilroy take back the program.

With no further speakers, Mayor Bozzo closed public comment.

Motion
Award the interim aquatics center operator contract to The Swimming Swan, LLC for an amount not to exceed $266,662 and authorize the City Administrator to complete negotiations and execute the agreement.

RESULT: Passed
MOVER: Council Member Carol Marques

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SECONDER: Council Member Tom Cline
AYES: Council Member Dion Bracco, Council Member Tom Cline, Council Member Terence Fugazzi, Council Member Carol Marques, Council Member Kelly Ramirez, Mayor Greg Bozzo
NAYS: None
ABSENT: Council Member Hilton

7. INTRODUCTION OF NEW BUSINESS

1. Introduce for First Reading by Title Only An Ordinance to Amend Board and Commission Terms and Appointment Processes
City Clerk Kim Mancera provided a report.

Mayor Bozzo opened public comment at 7:23 P.M.

With no speakers, Mayor Bozzo closed public comment.

Motion
Read the ordinance by title only and waive further reading of the ordinance.

RESULT: Passed
MOVER: Council Member Kelly Ramirez
SECONDER: Council Member Carol Marques
AYES: Council Member Dion Bracco, Council Member Tom Cline, Council Member Terence Fugazzi, Council Member Carol Marques, Council Member Kelly Ramirez, Mayor Greg Bozzo
NAYS: None
ABSENT: Council Member Zach Hilton
Motion
Introduce the ordinance of the City Council of the City of Gilroy to reflect that all future terms will expire in odd-numbered years.

2. Receive Budget Report for the First Quarter of Fiscal Year 2025-26 (FY26) and Adopt a Budget Amendment Resolution
Finance Director Harjot Sangha provided a report and presentation.

Mayor Bozzo opened public comment at 7:31 P.M.

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With no speakers, Mayor Bozzo closed public comment.

Motion
Receive the Budget Report for the First Quarter of Fiscal Year 2025-26 and adopt a budget amendment resolution.

RESULT: Passed
MOVER: Council Member Dion Bracco
SECONDER: Council Member Carol Marques
AYES: Council Member Dion Bracco, Council Member Tom Cline, Council Member Terence Fugazzi, Council Member Carol Marques, Council Member Kelly Ramirez, Mayor Greg Bozzo
NAYS: None
ABSENT: Council Member Zach Hilton

8. CITY ADMINISTRATOR'S REPORTS
Interim City Administrator Brad Kilger congratulated three employees, Fire Marshall Jonathan Crick, Human Resource Analyst Jason Davalos, and Deputy Public Works Director Matt Jones, who graduated from the Santa Clara County Leadership Academy.

9. CITY ATTORNEY'S REPORTS
City Attorney Andy Faber reported on a case with the California Supreme Court.

10. CLOSED SESSION
City Attorney Andy Faber announced the closed session items 10.1 and 10.2.

City Attorney Andy Faber opened public comment at 7:35 P.M.

With no speakers, City Attorney Andy Faber closed public comment.

Motion
Proceed into closed session.

RESULT: Passed
MOVER: None
SECONDER: None
AYES: Council Member Dion Bracco, Council Member Tom Cline, Council Member Terence Fugazzi, Council Member Carol Marques, Council Member Kelly Ramirez, Mayor Greg Bozzo
NAYS: None
ABSENT: Council Member Zach Hilton

1. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Pursuant to Government Code Section 54956.8 and Gilroy City Code Section 17A.8
Property: 7491 Railroad Street, APN 841-06-001
Negotiators: LeeAnn McPhillips, Assistant City Administrator, Administrative Services & Human Resources Director/Risk Manager; Sharon Goei,

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Community Development Director; Victoria Valencia, Economic Development Manager
Under Negotiations: Price and Terms of Payment for Purchase and/or Lease

2. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Pursuant to Paragraph (4) of Subdivision (d) of Government Code Section 54956.9 and Gilroy City Code Section 17A.11 Subdivision (3): One Case

11. ADJOURN TO OPEN SESSION
City Attorney Andy Faber announced that the only reportable action was a vote to remain in closed session.

Motion
Remain in closed session.

12. ADJOURNMENT
With no additional business before the Council, the meeting was adjourned at 8:04 P.M I HEREBY CERTIFY that the foregoing minutes were duly and regularly adopted at a regular meeting of the City Council of the City of Gilroy on XXXXXXX, 20XX.

Kim Mancera
City Clerk

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City of Gilroy

STAFF REPORT
Agenda Item Title: Approve Notice of Acceptance of Completion, and Reduction of the Faithful Performance and Payment Security Bonds for Property Improvement Agreement No. 2020-01, Town Center Multifamily Tract 10472
Meeting Date: December 8, 2025
From: Brad Kilger, Interim City Administrator
Department: Public Works
Submitted by: John Doughty, Public Works Director
Prepared by: Jorge Duran, Senior Civil Engineer
STRATEGIC PLAN GOALS: Promote Economic Development Activities

RECOMMENDATION
Approve the Notice of Acceptance of completion and reduction of the faithful performance and payment security bonds for property improvement agreement number 2020-01, Town Center Multifamily - Tract 10472.

EXECUTIVE SUMMARY
On and off-site improvements for the Town Center Multifamily - Tract 10472 have been completed. The Developer is seeking reduction in the performance bonds per City of Gilroy City Code. Staff is requesting that Council approve the Notice of Acceptance of Completion and Reduction of the Faithful Performance and Payement Security Bonds for Property Agreement 2020-01 for the Town Center Multifamily - Tract 10472.

BACKGROUND
In May 7, 2018, The Glen Loma Corporation (Developer) received Tentative Map approval for the Town Center Multifamily residential project, to create 23 multi-family condominium lots for up to 125 townhouse units located north of Santa Teresa Boulevard between West Tenth Street and Miller Avenue. [Reference: Resolution No. 2018-09, TM 17-01]. The approvals were to construct streets, utilities, landscaping,

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lighting, fences, walls, and open space areas.

On September 21, 2020, The Christopher Family Partnership, Donald Christopher, and Filice Family Estate, received Council approval of Tract 10472 Final Map and the Property Improvement Agreement 2020-01 for the development of the site and related Public Improvements of the Town Center Multifamily subdivision.

The developer has paid plan check and inspection fees, submitted bonding and insurance for the above referenced Property Improvement Agreement and Tract Map.

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

The developer, The Christopher Family Partnership, Donald Christopher, and Filice Family Estate request a reduction of Tract 10472 Faithful Performance and Payment Bonds to a Maintenance Bond. This Maintenance Bond is 10% of the bonds value for the Tract improvements bond, reducing it for Tract 10472 from the original $6,999,071 to $699,907. The original security provided for 100% of the estimated construction cost and payment for tract improvements, which consist of new streets, grading, curb, gutter, sidewalk, utilities, landscape, and electrical lighting.

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

ALTERNATIVES
Deny the request to approve the Notice of Acceptance and reduction of the bonds. Staff does not recommend this option as it will cause costly and unnecessary development delays.

FISCAL IMPACT/FUNDING SOURCE
The developer has paid plan check and inspection fees, submitted bonding and insurance for the above referenced Property Improvement Agreement and Tract Map.

The Faithful Performance and Payment Bonds held as security will be reduced from

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$6,999,071 to $699,907.

PUBLIC OUTREACH
N/A

NEXT STEPS
N/A
Attachments:

1. Exhibit A - Vicinity Map GLR TCMF Tract 10472

2. Exhibit B - PIA GLR TCMF Tract 10472

3. Exhibit C - NOC_Town Center

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

City of Gilroy
WHEN RECORDED MAIL TO:

Thai Pham
City of Gilroy
7351 Rosanna Street
Gilroy, CA 95020

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

Project No.: Property Improvement Agreement No. 2020-01, Project Name Tract 10472 Town Center Multifamily
Contractor Name: KB Home South Bay Inc
Contractor Address: 6700 Koll Center Pkwy, Ste 200 Pleasanton, CA 94566 Surety on Contract: Liberty Mutual Insurance Company
Location of Project: Glen Loma Ranch, Tract 10472
Description of Work: Tract Improvements
Interest of City: x Owner in Fee: Vendee under Agreement to Purchase; Lessee; x Owner of Easements; Holder of License; Owner of Streets; x Owner of Utilities, Water, Sewer, Storm Systems
Owner's Name: City of Gilroy
Work Done: Install underground utilities, electrical, landscape, and open space __________________________________________________________ This notice is given in accordance with the provisions of Section 3093 of the Civil Code of the State of California.

The undersigned declares:

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

I certify under penalty of perjury that the foregoing is true and correct. Executed at the City of Gilroy, County of Santa Clara, State of California on December 8, 2026.

CITY OF GILROY

STATE OF CALIFORNIA

COUNTY OF SANTA CLARA BY
Jorge Duran
TITLE Senior Engineer.

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

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

NOTICE OF ACCEPTANCE OF COMPLETION
PROPERTY IMPROVEMENT AGREEMENT NO. 2020-01
PROJECT NAME - Tract 10472, Town Center Multifamily:

DEVELOPER NAME : KB Home South Bay

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City of Gilroy

STAFF REPORT
Agenda Item Title: Approve Notice of Acceptance of Completion, and Reduction of the Faithful Performance and Payment Security Bonds for Property Improvement Agreement No. 2020-02, Nebbiolo
Malvasia The Glen Tract 10520
Meeting Date: December 8, 2025
From: Brad Kilger, Interim City Administrator
Department: Public Works
Submitted by: John Doughty, Public Works Director
Prepared by: Jorge Duran, Senior Civil Engineer
STRATEGIC PLAN GOALS: Promote Economic Development Activities

EXECUTIVE SUMMARY
On and off-site improvements for Nebbiolo, Malvasia, The Glen - Tract 10520 have been completed. The Developer is seeking reduction in the performance bonds per City of Gilroy City Code. Staff is requesting that Council approve the Notice of Acceptance of Completion and Reduction of the Faithful Performance and Payement Security Bonds for Property Agreement number 2020-02 for Nebbiolo, Malvasia, The Glen - Tract 10520.

BACKGROUND
In August 5, 2019, The Glen Loma Corporation (Developer) received Tentative Map approval for the Nebbiolo, Malvasia, The Glen residential project, to create 171 singlefamily residential lots located north of Santa Teresa Boulevard, between Merlot Drive and Miller Avenue. [Reference: Resolution No. 2019-46, TM 18-02]. The approvals were

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to construct streets, utilities, landscaping, lighting, fences, walls, and open space areas.

On September 21, 2020, The Christopher Family Partnership, Donald Christopher, and Filice Family Estate, received Council approval of Tract 10520 Final Map and the Property Improvement Agreement 2020-02 for the development of the site and related Public Improvements of the Nebbiolo, Malvasia, and The Glen subdivision.

The developer has paid plan check and inspection fees, submitted bonding and insurance for the above referenced Property Improvement Agreement and Tract Map.

The developer, The Christopher Family Partnership, Donald Christopher, and Filice Family Estate request a reduction of Tract 10520 Faithful Performance and Payment Bonds to a Maintenance Bond. This Maintenance Bond is 10% of the bonds value for the Tract improvements bond, reducing it for Tract 10520 from the original $11,646,051 to $1,164,605. The original security provided for 100% of the estimated construction cost and payment for tract improvements, which consist of new streets, grading, curb, gutter, sidewalk, utilities, landscape, and electrical lighting.

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

ALTERNATIVES
Deny the request to approve the Notice of Acceptance and reduction of the bonds. Staff does not recommend this option as it will cause costly and unnecessary development delays.

FISCAL IMPACT/FUNDING SOURCE
The developer has paid plan check and inspection fees, submitted bonding and insurance for the above referenced Property Improvement Agreement and Tract Map.

The Faithful Performance and Payment Bonds held as security will be reduced from

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$11,646,051 to $1,164,605.

PUBLIC OUTREACH
N/A

NEXT STEPS
N/A
Attachments:

1. Exhibit A - Vicinity Map GLR Neb Mal Glen Tract 10520

2. Exhibit B - PIA GLR Neb Mal Glen Tract 10520

3. Exhibit C - NOC_Neb Malv Glen

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

City of Gilroy
WHEN RECORDED MAIL TO:

Thai Pham
City of Gilroy
7351 Rosanna Street
Gilroy, CA 95020

Project No.: Property Improvement Agreement No. 2020-02, Project Name Tract 10520 Nebbiolo, Malvasia, The Glen
Contractor Name: KB Home South Bay Inc
Contractor Address: 6700Koll Center Pkwy, Ste 200 Pleasanton, CA 94566 Surety on Contract: Liberty Mutual Insurance Company
Location of Project: Glen Loma Ranch, Tract 10520
Description of Work: Tract Improvements
Interest of City: x Owner in Fee: Vendee under Agreement to Purchase; Lessee; x Owner of Easements; Holder of License; Owner of Streets; x Owner of Utilities, Water, Sewer, Storm Systems
Owner's Name: City of Gilroy
Work Done: Install underground utilities, electrical, landscape, and open space __________________________________________________________ This notice is given in accordance with the provisions of Section 3093 of the Civil Code of the State of California.

The undersigned declares:

I certify under penalty of perjury that the foregoing is true and correct. Executed at the City of Gilroy, County of Santa Clara, State of California on December 8, 2025.

CITY OF GILROY

STATE OF CALIFORNIA

COUNTY OF SANTA CLARA BY
Jorge Duran
TITLE Senior Engineer.

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

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NOTICE OF ACCEPTANCE OF COMPLETION
PROPERTY IMPROVEMENT AGREEMENT NO. 2020-02
PROJECT NAME - Tract 10520, Nebbiolo, Malvasia, The Glen DEVELOPER NAME: KB Home South Bay

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City of Gilroy

STAFF REPORT
Agenda Item Title: Acceptance of the Annual Development Impact Fee Report for Fiscal Year 2024-2025 as Required under Government
Code 66000
Meeting Date: December 8, 2025
From: Brad Kilger, Interim City Administrator
Department: Finance
Submitted by: Harjot Sangha, Finance Director
Prepared by: Rosemary Guerrero, Finance Manager
STRATEGIC PLAN GOALS: Develop a Financially Resilient Organization

RECOMMENDATION
Accept and file the annual development impact fee report for Fiscal Year 2024-2025 (FY25).

EXECUTIVE SUMMARY
In accordance with the Mitigation Fee Act (Act), Government Code 66000 et seq., the City must annually review and make a public report on development impact fees. As such, the attached report is prepared and made available in accordance with the required provisions of the State law.

BACKGROUND
The Mitigation Fee Act, Government Code 66000 et seq., (adopted as AB 1600 and commonly referred to as “AB 1600 requirements”) governs the establishment and administration of development impact fees paid by new development projects for public facilities needed to serve new development. Fees must be separately accounted for and used for the specific purpose for which they were established. The City’s development impact fees are listed on page seven of the attachment. Expenditures are authorized by Council through annual capital and operating budgets and committed via the City’s fiveyear capital improvement program.

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ANALYSIS
This report is for information purposes only. The establishment of fees and expending of fee-generated revenue occurs in separate Council actions. The revenues and expenditures for FY25 (July 1, 2024, through June 30, 2025) are noted on each impact fee fund’s respective statement in the attached report.

ALTERNATIVES
None.

FISCAL IMPACT/FUNDING SOURCE
This report has no direct fiscal impacts as this report only provides information describing each development impact fee and a list of revenues, expenditures, and fund balance for each impact fee fund. The preparation of this report is an annual workplan item of the Finance Department.

Attachments:

1. FY25 Impact Fee Report

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Account FY2025
FUND 410 - Storm Drain Development Impact Fee Number AB 1600 Revenues
Storm Drain Development Impact Fees 4105500 45150 $ 31,196 Bank Interest 4105500 46110 $ 74,401
Transfer from General Fund 4105500 48110 12,268
Total Revenues $ 117,865
Expenditures
Contractual Services 4105500 51630 1,827
Overhead Expenses 4105500 54150 760
Total Expenditures $ 2,587
Revenues Less Expenditures $ 115,278
Fund Balance as of June 30, 2024 2,264,727
Fund Balance as of June 30, 2025 2,380,005 $
Relationship between and purpose for which fee is charged:

Storm Drain Impact Fee charges are as follows:

Residential - Low Density $631/acre
Residential - High Density $992/acre
Commercial $1,712/acre
Commercial-Assembly Hall $631/acre
Industrial $1,264/acre
City of Gilroy
Impact Fee Revenues and Expenditures
For Fiscal Year 2024-2025
Fees are to finance the construction of drainage collection and conveyance systems in conformance with the Gilroy Storm Drain Master Plan in order to accommodate development of new residential, commercial, and industrial uses as well as expand system capacity. Projects are identified and undertaken in compliance with updated and approved master plans based on population projections, the General Plan policies, land use needs, and other standards approved by the City Council.

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Account FY2025
FUND 420 - Street Tree Development Impact Fee Number AB 1600 Revenues
Bank Interest 4205500 46110 8,245
Transfer from General Fund 4205500 48110 55
Total Revenues $ 8,300
Expenditures
Overhead Expenses 248
Total Expenditures $ 248
Revenues Less Expenditures $ 8,052
Fund Balance as of June 30, 2024 178,974
Fund Balance as of June 30, 2025 187,026 $
Relationship between and purpose for which fee is charged:

Street Trees Impact Fee charges are as follows:

City Planting and Replacement $3.79/ff
City of Gilroy
Impact Fee Revenues and Expenditures
For Fiscal Year 2024-2025
The Street Tree Development Impact Fund collects a front footage fee to plant trees in new developments.

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Account FY2025
FUND 425 - Traffic Impact Fee Number AB 1600
Revenues
Traffic Impact Fees 4255500 45150 $ 1,988,918
Bank Interest 4255500 46110 849,406
Transfer from General Fund 4255500 48110 97,538
Total Revenues $ 2,935,862
Expenditures
Contractual Services 4255500 51630 117,790
CIP - First & Kern 4255500 53142 191,122
CIP - Luchessa/Church Signal 4255500 53142 50,024
CIP - Monterey/IOOF Signal 4255500 53142 42,943
CIP - 10th St HWY 101 Bridge Widening 4255500 53142 600,000 Interfund Transfer Out 4255500 54110 1,046,337
Overhead Charges 4255500 54150 9,898
Total Expenditures $ 2,058,114
Revenues Less Expenditures $ 877,748
Fund Balance as of June 30, 2024 17,528,110
Fund Balance as of June 30, 2025 18,405,858 $
Relationship between and purpose for which fee is charged:

Traffic Impact Fee charges are as follows:

Residential - Low Density $13,804/unit
Residential - High Density $11,190/unit
Commercial - Low Traffic $15,274/ksf
Commercial - High Traffic $30,853/ksf
Industrial - General $6,052/ksf
Industrial - Warehouse $4,387/ksf
City of Gilroy
Impact Fee Revenues and Expenditures
For Fiscal Year 2024-2025
Fees are to finance the construction of streets, bridges, interchanges and traffic signals as identified in the City's General Plan Circulation Element to accommodate development of new residential, commercial, and industrial uses for the purpose of expanding transportation system capacity. Projects are completed in conformance with approved master plans based on the General Plan, population projections, land use, and other standards approved by the City Council.

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Account FY2025
FUND 430 - Sewer Development Impact Fee Number AB 1600
Revenues
Sewer Development Impact Fees 4305500 45150 $ 1,153,573 Bank Interest 4305500 46110 772,851
Transfer from General Fund 4305500 48110 56,702
Total Revenues $ 1,983,126
Expenditures
Contractual Services 4305500 51630 $ 3,247
Interfund Transfer Out 4305500 54110 2,244,400
Total Expenditures $ 2,247,647
Revenues Less Expenditures $ (264,520)
Fund Balance as of June 30, 2024 17,322,624
Fund Balance as of June 30, 2025 17,058,104 $
Relationship between and purpose for which fee is charged:

Sewer Development Impact Fee charges are as follows:

Residential - Low Density $14,002/unit
Residential - High Density $7,576/unit
Commercial $4,431/cgpd
Industrial $4,431/cgpd
City of Gilroy
Impact Fee Revenues and Expenditures
For Fiscal Year 2024-2025
Fees are to finance the construction of expanded sewer collection, treatment and conveyance systems as identified in the Sewer Master Plan in order to accommodate development of new residential, commercial, and industrial uses based on standards adopted by the City Council.

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Account FY2025
FUND 435 - Water Development Impact Fee Number AB 1600
Revenues
Water Development Impact Fees 4355500 45150 $ 301,317
Bank Interest 4355500 46110 339,667
Transfer from General Fund 4355500 48110 11,786
Total Revenues $ 652,770
Expenditures
Contractual Services 4355500 51630 3,247
CIP - McCarthy Well Project 4355500 53142 24,264
Total Expenditures $ 27,510
Revenues Less Expenditures $ 625,260
Fund Balance as of June 30, 2024 7,157,919
Fund Balance as of June 30, 2025 7,783,179 $
Relationship between and purpose for which fee is charged:

Water Development Impact Fee charges are as follows:

Residential - Low Density $4,810/unit
Residential - High Density $1,945/unit
Commercial $7,539/kgpd
Industrial $7,539/kgpd
City of Gilroy
Impact Fee Revenues and Expenditures
For Fiscal Year 2024-2025
Fees are to finance the construction of improvements and expansion of water production, transmission, distribution and storage systems within Pressure Zone 1 as described in the Water Master Plan. This includes costs necessary to accommodate the capacity requirements of new residential, commercial and industrial uses and in accordance with the General Plan, population increase projections and other standards established by the City Council.

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Account FY2025
FUND 440 - Public Facilities Impact Fee Number AB 1600
Revenues
Public Facilities Impact Fees 4405500 45150 $ 1,578,836 Bank Interest 4405500 46110 93,415
Misc Revenues 4405500 47810 207,265
Interfund Transfer In 4405500 48110 81,526
Total Revenues $ 1,961,042
Expenditures
Contractual Services 4405500 51630 62,344
CIP - Gilroy Ice Center 4405500 53142 424,946
CIP - Civic Center Master Plan 4405500 53142 432,700
Interfund Transfer Out 4405500 54110 2,978,011
Overhead Charges 4405500 54150 16,187
Interfund Interest Expense 4405500 58125 29,179
Total Expenditures $ 3,943,366
Revenues Less Expenditures $ (1,982,324)
Fund Balance as of June 30, 2024* (318,629)
Fund Balance as of June 30, 2025* (2,300,953) $
Relationship between and purpose for which fee is charged:

Public Facility Impact charges are as follows:

Residential - Low Density $23,878/unit
Residential - High Density $20,089/unit
Commercial $3,598/ksf
Industrial $1,594/ksf
City of Gilroy
Impact Fee Revenues and Expenditures
For Fiscal Year 2024-2025
Fees are to finance the construction of parks, police, fire, library, and other recreational facilities as identified in the Public Facilities Master Plan based on the need to expand City facility capacity to accommodate new development and pursuant to standards approved by the City Council. *Note that in 2008 the City purchased the Gilroy Gardens Property for $13.7 million, of which there is a remaining balance of approximately $2.5 million at June 30, 2025. The loan is expected to be fully repaid by June 30, 2028. The Fund Balance above includes the remaining loan payable amount. This amount is shown as a liability, resulting in the negative balance stated above. The actual cash balance in the fund at June 30, 2025, is $0.5 million.

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FUND 410 - Storm Drain Development Impact Fee
Residential - Low Density $631/acre
Residential - High Density $992/acre
Commercial $1,712/acre
Commercial-Assembly Hall $631/acre
Industrial $1,264/acre
ADU - 750 sf or larger $113.87x
FUND 420 - Street Tree Development Impact Fee
City Planting and Replacement $3.79/ff
FUND 425 - Traffic Impact Fee
Residential - Low Density $13,804/unit
Residential - High Density $11,190/unit
Commercial - Low Traffic $15,274/ksf
Commercial - High Traffic $30,853/ksf
Industrial - General $6,052/ksf
Industrial - Warehouse $4,387/ksf
ADU - 750 sf or larger $5,204.65x
FUND 430 - Sewer Development Impact Fee
Residential - Low Density $14,002/unit
Residential - High Density $7,576/unit
Commercial $4,431/cgpd
Industrial $4,431/cgpd
ADU - 750 sf or larger $3,523.72x
FUND 435 - Water Development Impact Fee
Residential - Low Density $4,810/unit
Residential - High Density $1,945/unit
Commercial $7,539/kgpd
Industrial $7,539/kgpd
ADU - 750 sf or larger $904.65x
FUND 440 - Public Facilities Impact Fee
Residential - Low Density $23,878/unit
Residential - High Density $20,089/unit
Commercial $3,598/ksf
Industrial $1,594/ksf
ADU - 750 sf or larger $9,343.72x
Notes:
ksf represents per 1,000 square foot
cgpd represents per hundreg gallons per day
ff represents per front footage
sf represents per square feet
ADUs less than 750 sf are exempt from impact fees
ADUs larger than 750 sf use the aforementioned rates with the below formula Rate X [total ADU sf/total primary residence sf]
City of Gilroy
Impact Fee Schedule Summary
For Fiscal Year 2024-2025

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City of Gilroy

STAFF REPORT
Agenda Item Title: Approval of a Contract Amendment to the Tree Maintenance Contract with West Coast Arborists, Inc in the Amount of $69,319 for Hecker Pass Tree Pruning.

Meeting Date: December 8, 2025
From: Brad Kilger, Interim City Administrator
Department: Public Works
Submitted by: John Doughty, Public Works Director
Prepared by: Matt Jones, Deputy Public Works Director
STRATEGIC PLAN GOALS: Maintain and Improve City Infrastructure

RECOMMENDATION

1. Approve a Contract Amendment to the current Tree Maintenance Services Agreement with West Coast Arborists, Inc in the amount of $69,319 to fund tree maintenance services along the Hecker Pass Road corridor.

2. Authorize the City Administrator to execute the amendment.

EXECUTIVE SUMMARY
The City’s existing tree maintenance contractor, West Coast Arborists, Inc. (WCA), provided a cost proposal to perform essential pruning, deadwood removal, and hazard mitigation on approximately 147 trees along the Hecker Pass Road corridor. The total service cost is $69,319. The City Council allocated funds on October 20, 2025 for the project.

Although the scope of services is consistent with the City current agreement with WCA, there are insufficient funds available in FY26 to complete other scheduled maintenance, address emergency needs over the winter and complete the Hecker Pass Road corridor tree pruning.

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BACKGROUND
The City maintains an active Tree Maintenance Services Agreement with West Coast Arborists, Inc. (WCA), executed in 2021, to provide ongoing and as-needed tree maintenance services citywide.

During the FY 2024–25 year-end financial report, staff identified available budget capacity to continue priority tree maintenance and park improvement activities into FY 2025–26. On October 20, 2025, the City Council adopted a resolution approving a budget amendment which included the following language, "Additionally, the division is recommending $69,000 in appropriations for tree trimming work not already included in the adopted FY26 budget. This additional work is proposed for the clean-up of the City’s gateways, specifically, Hecker Pass Highway from Santa Teresa to Burchell Road." This item implements that Council-approved direction by appropriating the funds necessary to perform targeted risk-reduction pruning along the Hecker Pass corridor consistent with the gateway beautification focus described above.

Recent field inspections have identified hazardous limb conditions, excessive endweight, and roadway clearance conflicts associated with mature cedar and oak trees located adjacent to the Hecker Pass travel lanes. To address these public safety concerns efficiently, staff requested and received a proposal from the current contractor, WCA, totaling $69,319 to perform hazard mitigation pruning, traffic-controlled lane closures, corrective cuts, and deadwood removal.

Work performed through this action ensures continued risk mitigation, supports safe travel conditions, and fulfills Council’s previously expressed priority to enhance the visual and safety conditions of one of the community’s primary gateways.

ANALYSIS
The Hecker Pass Road corridor is a primary arterial route carrying significant daily vehicle traffic at higher speeds. Hecker Pass is also regularly used by bicyclists. The adjacent tree canopy includes mature cedars and oaks with structural conditions that elevate the likelihood of limb failure into the roadway. Proactive pruning and risk mitigation at this location are therefore time-sensitive and directly tied to public safety and liability exposure.

The City currently has a Tree Maintenance Services Agreement with West Coast Arborists, Inc. to provide on-call tree maintenance services citywide. Utilizing the current contractor ensures consistency with established maintenance standards, avoids delays associated with a separate procurement process, and enables the work to be scheduled efficiently.

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While there is adequate remaining contract authority to perform this work under the existing agreement, the current year operating budget does not contain sufficient programmed funds to support this specific corridor effort. Approving the requested contract amendment allows the City to maintain the intended balance of tree maintenance services citywide, without disrupting routine operations, emergency response readiness, or other priority hazard-reduction projects already anticipated for the fiscal year.

Completion of this targeted pruning effort now also reduces the likelihood of costlier emergency response work later in the year, when failures may occur during winter weather events or high wind conditions.

ALTERNATIVES
If Council does not approve the contract amendment, staff would be required to utilize the remaining balance of the current tree maintenance contract to complete this work.

Doing so would reduce the funding capacity reserved for other priority locations, including corrective pruning, storm response readiness, risk-mitigation zones, and routine tree care throughout the City. This could result in deferred maintenance, fewer planned tree operations during the fiscal year, and increased exposure to unanticipated emergency costs if conditions deteriorate or failures occur elsewhere.

FISCAL IMPACT/FUNDING SOURCE
The cost for the hazard mitigation pruning along the Hecker Pass corridor is $69,319 and is funded from the General Fund (100). An agreement amendment is required to add the work and related compensation to the existing agreement.

As part of the FY 2024–25 year-end financial report and budget amendment adopted by the City Council on October 20, 2025, funding for this project was identified and prioritized as part of the City’s gateway enhancement and tree trimming efforts along Hecker Pass Highway. This staff report aligns current-year spending authority with that previously approved by the Council direction and approved budget.

PUBLIC OUTREACH
Public outreach was not required.

NEXT STEPS
If Council approves the contract amendment, Finance will process the appropriation to ensure funds are available in the current fiscal year, and Public Works will authorize the

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tree work to be completed by West Coast Arborists, Inc. under the existing Tree Maintenance Services Agreement. Work will commence as soon as WCA can schedule and weather is appropriate. The work may require a temporary encroachment permit from Caltrans which will impact start of the work.

Attachments:

1. 2021 Agreement

2. Amendment to Agreement

3. WCA Quote for Hecker Pass

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