Agenda packet — Gilroy City Council, April 6, 2026 (part 3 of 5)

7.2. However, since the current agreements expire on June 30, 2026, not securing new, authorized resources would limit the City’s ability to deliver development projects.

FISCAL IMPACT/FUNDING SOURCE
The cost of Building and Fire standard and expedited plan review and inspection services are offset by the revenue generated by plan review and permit fees consistent with the Adopted Comprehensive Fee Schedule.

The on-call standard and expedited Building and Fire plan review and inspection service contracts have a proposed annual amount of $400,000 and a five-year amount not-to-exceed $2,000,000. However, actual expenditures will be limited to the amount appropriated in the approved City budget. Any expenditure beyond this amount will require subsequent City Council review and approval. While the full contract authority of $2,000,000 per contract over five years allows for flexibility in addressing service demand and activity fluctuations, only the funds appropriated through the City’s budget process may be expended. Should service demands necessitate additional spending beyond the initially adopted budget, staff will return to the City Council with a request for additional budget appropriation in order to utilize the remaining contract capacity.

The FY27 adopted budget is $455,000 for these services and no additional appropriations are necessary. Future years’ appropriations will be included as part of the future biennial budget development process.

NEXT STEPS
Upon approval, staff will proceed with executing the agreements listed as attachments in this staff report for the initial three-year period, with two, one-year extension options.

Attachments:

1. Draft 4LEAF Agreement

2. Draft CSG Agreement

3. Draft TRB+ Associates Agreement

4. Draft True North Agreement

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AGREEMENT FOR SERVICES
(For contracts over $5,000 - CONSULTANT)
This AGREEMENT made this 6 day of April, 2026, between:

CITY: City of Gilroy, having a principal place of business at 7351 Rosanna Street, Gilroy, California
and CONSULTANT: 4LEAF, Inc., having a principal place of business at 2126 Rheem Drive, Pleasanton, CA 94588.

ARTICLE 1. TERM OF AGREEMENT
This Agreement will become effective on 07/01/2026 and will continue in effect through 06/30/2029, with two, one-year extension options, unless terminated in accordance with the provisions of Article 7 of this Agreement.

Any lapse in insurance coverage as required by Article 5, Section D of this Agreement shall terminate this Agreement regardless of any other provision stated herein. ______ Initial
ARTICLE 2. INDEPENDENT CONTRACTOR STATUS
It is the express intention of the parties that CONSULTANT is an independent contractor and not an employee, agent, joint venturer or partner of CITY. Nothing in this Agreement shall be interpreted or construed as creating or establishing the relationship of employer and employee between CITY and CONSULTANT or any employee or agent of CONSULTANT. Both parties acknowledge that CONSULTANT is not an employee for state or federal tax purposes.

CONSULTANT shall not be entitled to any of the rights or benefits afforded to CITY’S employees, including, without limitation, disability or unemployment insurance, workers’ compensation, medical insurance, sick leave, retirement benefits or any other employment benefits. CONSULTANT shall retain the right to perform services for others during the term of this Agreement.

ARTICLE 3. SERVICES TO BE PERFORMED BY CONSULTANT
A. Specific Services
CONSULTANT agrees to: Perform the services as outlined in Exhibit “A” (“Specific Provisions”) and Exhibit “B” (“Scope of Services”), within the time periods described in Exhibit “C” (“Milestone Schedule”).

B. Method of Performing Services
CONSULTANT shall determine the method, details and means of performing the above-described services. CITY shall have no right to, and shall not, control the manner or determine the method of accomplishing CONSULTANT’S services.

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C. Employment of Assistants
CONSULTANT may, at the CONSULTANT’S own expense, employ such assistants as CONSULTANT deems necessary to perform the services required of CONSULTANT by this Agreement, subject to the prohibition against assignment and subcontracting contained in Article 5 below. CITY may not control, direct, or supervise CONSULTANT’S assistants in the performance of those services. CONSULTANT assumes full and sole responsibility for the payment of all compensation and expenses of these assistants and for all state and federal income tax, unemployment insurance, Social Security, disability insurance and other applicable withholding.

D. Place of Work
CONSULTANT shall perform the services required by this Agreement at any place or location and at such times as CONSULTANT shall determine is necessary to properly and timely perform CONSULTANT’S services.

ARTICLE 4. COMPENSATION
A. Consideration
In consideration for the services to be performed by CONSULTANT, CITY agrees to pay CONSULTANT the amounts set forth in Exhibit “D” (“Payment Schedule”). In no event however shall the total compensation paid to CONSULTANT exceed $2,000,000.00.

B. Invoices
CONSULTANT shall submit invoices for all services rendered.

C. Payment
Payment shall be due according to the payment schedule set forth in Exhibit “D”. No payment will be made unless CONSULTANT has first provided City with a written receipt of invoice describing the work performed and any approved direct expenses (as provided for in Exhibit “A”, Section IV) incurred during the preceding period. If CITY objects to all or any portion of any invoice, CITY shall notify CONSULTANT of the objection within thirty (30) days from receipt of the invoice, give reasons for the objection, and pay that portion of the invoice not in dispute. It shall not constitute a default or breach of this Agreement for CITY not to pay any invoiced amounts to which it has objected until the objection has been resolved by mutual agreement of the parties.

D. Expenses
CONSULTANT shall be responsible for all costs and expenses incident to the performance of services for CITY, including but not limited to, all costs of equipment used or provided by CONSULTANT, all fees, fines, licenses, bonds or taxes required of or imposed against CONSULTANT and all other of CONSULTANT’S costs of doing business. CITY shall not be responsible for any expenses incurred by CONSULTANT in performing services for CITY, except for those expenses constituting “direct expenses” referenced on Exhibit “A.”

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ARTICLE 5. OBLIGATIONS OF CONSULTANT
A. Tools and Instrumentalities
CONSULTANT shall supply all tools and instrumentalities required to perform the services under this Agreement at its sole cost and expense. CONSULTANT is not required to purchase or rent any tools, equipment or services from CITY.

B. Workers’ Compensation
CONSULTANT agrees to provide workers’ compensation insurance for CONSULTANT’S employees and agents and agrees to hold harmless, defend with counsel acceptable to CITY and indemnify CITY, its officers, representatives, agents and employees from and against any and all claims, suits, damages, costs, fees, demands, causes of action, losses, liabilities and expenses, including without limitation reasonable attorneys’ fees, arising out of any injury, disability, or death of any of CONSULTANT’S employees.

C. Indemnification of Liability, Duty to Defend

1. As to professional liability, to the fullest extent permitted by law, CONSULTANT shall defend, through counsel approved by CITY (which approval shall not be unreasonably withheld), indemnify and hold harmless CITY, its officers, representatives, agents and employees against any and all suits, damages, costs, fees, claims, demands, causes of action, losses, liabilities and expenses, including without limitation attorneys’ fees, to the extent arising or resulting directly or indirectly from any willful or negligent acts, errors or omissions of CONSULTANT or CONSULTANT’S assistants, employees or agents, including all claims relating to the injury or death of any person or damage to any property.

2. As to other liability, to the fullest extent permitted by law, CONSULTANT shall defend, through counsel approved by CITY (which approval shall not be unreasonably withheld), indemnify and hold harmless CITY, its officers, representatives, agents and employees against any and all suits, damages, costs, fees, claims, demands, causes of action, losses, liabilities and expenses, including without limitation attorneys’ fees, arising or resulting directly or indirectly from any act or omission of CONSULTANT or CONSULTANT’S assistants, employees or agents, including all claims relating to the injury or death of any person or damage to any property.

D. Insurance
In addition to any other obligations under this Agreement, CONSULTANT shall, at no cost to CITY, obtain and maintain throughout the term of this Agreement: (a) Commercial Liability Insurance on a per occurrence basis, including coverage for owned and non-owned automobiles, with a minimum combined single limit coverage of $1,000,000 per occurrence for all damages due to bodily injury, sickness or disease, or death to any person, and damage to property, including the loss of use thereof; and (b) Professional Liability Insurance (Errors & Omissions) with a minimum coverage of $1,000,000 per occurrence or claim, and $2,000,000 aggregate; provided however, Professional Liability Insurance written on a claims made basis must comply with the requirements

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set forth below. Professional Liability Insurance written on a claims made basis (including without limitation the initial policy obtained and all subsequent policies purchased as renewals or replacements) must show the retroactive date, and the retroactive date must be before the earlier of the effective date of the contract or the beginning of the contract work. Claims made Professional Liability Insurance must be maintained, and written evidence of insurance must be provided, for at least five (5) years after the completion of the contract work. If claims made coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a retroactive date prior to the earlier of the effective date of the contract or the beginning of the contract work, CONSULTANT must purchase so called “extended reporting” or “tail” coverage for a minimum of five (5) years after completion of work, which must also show a retroactive date that is before the earlier of the effective date of the contract or the beginning of the contract work.

As a condition precedent to CITY’S obligations under this Agreement, CONSULTANT shall furnish written evidence of such coverage (naming CITY, its officers and employees as additional insureds on the Comprehensive Liability insurance policy referred to in (a) immediately above via a specific endorsement) and requiring thirty (30) days written notice of policy lapse or cancellation, or of a material change in policy terms.

E. Assignment
Notwithstanding any other provision of this Agreement, neither this Agreement nor any duties or obligations of CONSULTANT under this Agreement may be assigned or subcontracted by CONSULTANT without the prior written consent of CITY, which CITY may withhold in its sole and absolute discretion.

F. State and Federal Taxes
As CONSULTANT is not CITY’S employee, CONSULTANT shall be responsible for paying all required state and federal taxes. Without limiting the foregoing, CONSULTANT acknowledges and agrees that:
• CITY will not withhold FICA (Social Security) from CONSULTANT’S payments;
• CITY will not make state or federal unemployment insurance contributions on CONSULTANT’S behalf;
• CITY will not withhold state or federal income tax from payment to CONSULTANT;
• CITY will not make disability insurance contributions on behalf of CONSULTANT;
• CITY will not obtain workers’ compensation insurance on behalf of CONSULTANT.

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

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

ARTICLE 7. TERMINATION OF AGREEMENT
A. Sale of Consultant’s Business/ Death of Consultant.

CONSULTANT shall notify CITY of the proposed sale of CONSULTANT’s business no later than thirty (30) days prior to any such sale. CITY shall have the option of terminating this Agreement within thirty (30) days after receiving such notice of sale. Any such CITY termination pursuant to this Article 7.A shall be in writing and sent to the address for notices to CONSULTANT set forth in Exhibit A, Subsection V.H., no later than thirty (30) days after CITY’ receipt of such notice of sale.

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

B. Termination by City for Default of Consultant
Should CONSULTANT default in the performance of this Agreement or materially breach any of its provisions, CITY, at CITY’S option, may terminate this Agreement by giving written notification to CONSULTANT. For the purposes of this section, material breach of this Agreement shall include, but not be limited to the following:

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

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

CONSULTANT shall be entitled to payment only for work completed in accordance with the terms of this Agreement through the date of the termination notice, as reasonably determined by CITY, provided that such payment shall not exceed the amounts set forth in this Agreement for the tasks described on Exhibit C” which have been fully, competently and timely rendered by CONSULTANT. Notwithstanding the foregoing, if CITY terminates this Agreement due to CONSULTANT’S default in the performance of this Agreement or material breach by CONSULTANT of any of its provisions, then in addition to any other rights and remedies CITY

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may have, CONSULTANT shall reimburse CITY, within ten (10) days after demand, for any and all costs and expenses incurred by CITY in order to complete the tasks constituting the scope of work as described in this Agreement, to the extent such costs and expenses exceed the amounts CITY would have been obligated to pay CONSULTANT for the performance of that task pursuant to this Agreement.

C. Termination for Failure to Make Agreed-Upon Payments Should CITY fail to pay CONSULTANT all or any part of the compensation set forth in Article 4 of this Agreement on the date due, then if and only if such nonpayment constitutes a default under this Agreement, CONSULTANT, at the CONSULTANT’S option, may terminate this Agreement if such default is not remedied by CITY within thirty (30) days after demand for such payment is given by CONSULTANT to CITY.

D. Transition after Termination
Upon termination, CONSULTANT shall immediately stop work, unless cessation could potentially cause any damage or harm to person or property, in which case CONSULTANT shall cease such work as soon as it is safe to do so. CONSULTANT shall incur no further expenses in connection with this Agreement. CONSULTANT shall promptly deliver to CITY all work done toward completion of the services required hereunder, and shall act in such a manner as to facilitate any the assumption of CONSULTANT’s duties by any new consultant hired by the CITY to complete such services.

ARTICLE 8. GENERAL PROVISIONS
A. Amendment & Modification
No amendments, modifications, alterations or changes to the terms of this Agreement shall be effective unless and until made in a writing signed by both parties hereto.

B. Americans with Disabilities Act of 1990
Throughout the term of this Agreement, the CONSULTANT shall comply fully with all applicable provisions of the Americans with Disabilities Act of 1990 (“the Act”) in its current form and as it may be amended from time to time. CONSULTANT shall also require such compliance of all subcontractors performing work under this Agreement, subject to the prohibition against assignment and subcontracting contained in Article 5 above. The CONSULTANT shall defend with counsel acceptable to CITY, indemnify and hold harmless the CITY OF GILROY, its officers, employees, agents and representatives from and against all suits, claims, demands, damages, costs, causes of action, losses, liabilities, expenses and fees, including without limitation reasonable attorneys’ fees, that may arise out of any violations of the Act by the CONSULTANT, its subcontractors, or the officers, employees, agents or representatives of either.

C. Attorneys’ Fees
If any action at law or in equity, including an action for declaratory relief, is brought to enforce or interpret the provisions of this Agreement, the prevailing party will be entitled to reasonable

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attorneys’ fees, which may be set by the court in the same action or in a separate action brought for that purpose, in addition to any other relief to which that party may be entitled.

D. Captions
The captions and headings of the various sections, paragraphs and subparagraphs of the Agreement are for convenience only and shall not be considered nor referred to for resolving questions of interpretation.

E. Compliance with Laws
The CONSULTANT shall keep itself informed of all State and National laws and all municipal ordinances and regulations of the CITY which in any manner affect those engaged or employed in the work, or the materials used in the work, or which in any way affect the conduct of the work, and of all such orders and decrees of bodies or tribunals having any jurisdiction or authority over the same. Without limiting the foregoing, CONSULTANT agrees to observe the provisions of the Municipal Code of the CITY OF GILROY, obligating every contractor or subcontractor under a contract or subcontract to the CITY OF GILROY for public works or for goods or services to refrain from discriminatory employment or subcontracting practices on the basis of the race, color, sex, religious creed, national origin, ancestry of any employee, applicant for employment, or any potential subcontractor.

F. Conflict of Interest
CONSULTANT certifies that to the best of its knowledge, no CITY employee or office of any public agency interested in this Agreement has any pecuniary interest in the business of CONSULTANT and that no person associated with CONSULTANT has any interest that would constitute a conflict of interest in any manner or degree as to the execution or performance of this Agreement.

G. Entire Agreement
This Agreement supersedes any and all prior agreements, whether oral or written, between the parties hereto with respect to the rendering of services by CONSULTANT for CITY and contains all the covenants and agreements between the parties with respect to the rendering of such services in any manner whatsoever. Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein, and that no other agreement, statement or promise not contained in this Agreement shall be valid or binding.

No other agreements or conversation with any officer, agent or employee of CITY prior to execution of this Agreement shall affect or modify any of the terms or obligations contained in any documents comprising this Agreement. Such other agreements or conversations shall be considered as unofficial information and in no way binding upon CITY.

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H. Governing Law and Venue
This Agreement shall be governed by and construed in accordance with the laws of the State of California without regard to the conflict of laws provisions of any jurisdiction. The exclusive jurisdiction and venue with respect to any and all disputes arising hereunder shall be in state and federal courts located in Santa Clara County, California.

I. Notices
Any notice to be given hereunder by either party to the other may be effected either by personal delivery in writing or by mail, registered or certified, postage prepaid with return receipt requested.

Mailed notices shall be addressed to the parties at the addresses appearing in Exhibit “A”, Section V.H. but each party may change the address by written notice in accordance with this paragraph.

Notices delivered personally will be deemed delivered as of actual receipt; mailed notices will be deemed delivered as of three (3) days after mailing.

J. Partial Invalidity
If any provision in this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions will nevertheless continue in full force without being impaired or invalidated in any way.

K. Time of the Essence
All dates and times referred to in this Agreement are of the essence.

L. Waiver
CONSULTANT agrees that waiver by CITY of any one or more of the conditions of performance under this Agreement shall not be construed as waiver(s) of any other condition of performance under this Agreement.

Executed at Gilroy, California, on the date and year first above written.

CONSULTANT: CITY:
4LEAF, INC. CITY OF GILROY
By: By:

Name: Kevin J. Duggan Name: Matt Morley
Title: President Title: City Administrator
Social Security or Taxpayer
Identification Number

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Approved as to Form ATTEST:

City Attorney City Clerk

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EXHIBIT “A”

SPECIFIC PROVISIONS
I. PROJECT MANAGER
CONSULTANT shall provide the services indicated on the attached Exhibit “B”, Scope of Services (“Services”). (All exhibits referenced are incorporated herein by reference.) To accomplish that end, CONSULTANT agrees to assign Craig Tole, Vice President, who will act in the capacity of Project Manager, and who will personally direct such Services.

Except as may be specified elsewhere in this Agreement, CONSULTANT shall furnish all technical and professional services including labor, material, equipment, transportation, supervision and expertise to perform all operations necessary and required to complete the Services in accordance with the terms of this Agreement.

II. NOTICE TO PROCEED/COMPLETION OF SERVICE
A. NOTICE TO PROCEED
CONSULTANT shall commence the Services upon delivery to CONSULTANT of a written “Notice to Proceed”, which Notice to Proceed shall be in the form of a written communication from designated City contact person(s). Notice to Proceed may be in the form of e-mail, fax or letter authorizing commencement of the Services. For purposes of this Agreement, Hipolito Olmos, Building Official, shall be the designated City contact person(s). Notice to Proceed shall be deemed to have been delivered upon actual receipt by CONSULTANT or if otherwise delivered as provided in the Section V.H. (“Notices”) of this Exhibit “A”.

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

III. PROGRESS SCHEDULE
The schedule for performance and completion of the Services will be as set forth in the attached Exhibit “C”.

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

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

CONSULTANT shall obtain written approval from CITY prior to incurring or billing of direct expenses.

Copies of pertinent financial records, including invoices, will be included with the submission of billing(s) for all direct expenses.

V. OTHER PROVISIONS
A. STANDARD OF WORKMANSHIP
CONSULTANT represents and warrants that it has the qualifications, skills and licenses necessary to perform the Services, and its duties and obligations, expressed and implied, contained herein, and CITY expressly relies upon CONSULTANT’S representations and warranties regarding its skills, qualifications and licenses. CONSULTANT shall perform such Services and duties in conformance to and consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California.

Any plans, designs, specifications, estimates, calculations, reports and other documents furnished under this Agreement shall be of a quality acceptable to CITY. The minimum criteria for acceptance shall be a product of neat appearance, well-organized, technically and grammatically correct, checked and having the maker and checker identified. The minimum standard of appearance, organization and content of the drawings shall be that used by CITY for similar purposes.

B. RESPONSIBILITY OF CONSULTANT
CONSULTANT shall be responsible for the professional quality, technical accuracy, and the coordination of the Services furnished by it under this Agreement. CONSULTANT shall not be responsible for the accuracy of any project or technical information provided by the CITY. The CITY’S review, acceptance or payment for any of the Services shall not be construed to operate as a waiver of any rights under this Agreement or of any cause of action arising out of the performance of this Agreement, and CONSULTANT shall be and remain liable to CITY in accordance with applicable law for all damages to CITY caused by CONSULTANT’S negligent performance of any of the services furnished under this Agreement.

C. RIGHT OF CITY TO INSPECT RECORDS OF CONSULTANT
CITY, through its authorized employees, representatives or agents, shall have the right, at any and all reasonable times, to audit the books and records (including, but not limited to, invoices, vouchers, canceled checks, time cards, etc.) of CONSULTANT for the purpose of verifying any and all charges made by CONSULTANT in connection with this Agreement. CONSULTANT shall maintain for a minimum period of three (3) years (from the date of final payment to CONSULTANT), or for any longer period required by law, sufficient books and records in accordance with standard California accounting practices to establish the correctness of all charges submitted to CITY by CONSULTANT, all of which shall be made available to CITY at the CITY’s offices within five (5) business days after CITY’s request.

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D. CONFIDENTIALITY OF MATERIAL
All ideas, memoranda, specifications, plans, manufacturing procedures, data (including, but not limited to, computer data and source code), drawings, descriptions, documents, discussions or other information developed or received by or for CONSULTANT and all other written and oral information developed or received by or for CONSULTANT and all other written and oral information submitted to CONSULTANT in connection with the performance of this Agreement shall be held confidential by CONSULTANT and shall not, without the prior written consent of CITY, be used for any purposes other than the performance of the Services, nor be disclosed to an entity not connected with the performance of the such Services. Nothing furnished to CONSULTANT which is otherwise known to CONSULTANT or is or becomes generally known to the related industry (other than that which becomes generally known as the result of CONSULTANT’S disclosure thereof) shall be deemed confidential. CONSULTANT shall not use CITY’S name or insignia, or distribute publicity pertaining to the services rendered under this Agreement in any magazine, trade paper, newspaper or other medium without the express written consent of CITY.

E. NO PLEDGING OF CITY’S CREDIT.

Under no circumstances shall CONSULTANT have the authority or power to pledge the credit of CITY or incur any obligation in the name of CITY.

F. OWNERSHIP OF MATERIAL.

All material including, but not limited to, computer information, data and source code, sketches, tracings, drawings, plans, diagrams, quantities, estimates, specifications, proposals, tests, maps, calculations, photographs, reports and other material developed, collected, prepared (or caused to be prepared) under this Agreement shall be the property of CITY, but CONSULTANT may retain and use copies thereof subject to Section V.D of this Exhibit “A”.

CITY shall not be limited in any way in its use of said material at any time for any work, whether or not associated with the City project for which the Services are performed. However, CONSULTANT shall not be responsible for, and City shall indemnify CONSULTANT from, damages resulting from the use of said material for work other than PROJECT, including, but not limited to, the release of this material to third parties for work other than on PROJECT.

G. NO THIRD PARTY BENEFICIARY.

This Agreement shall not be construed or deemed to be an agreement for the benefit of any third party or parties, and no third party or parties shall have any claim or right of action hereunder for any cause whatsoever.

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H. NOTICES.

Notices are to be sent as follows:

CITY: Sharon Goei, Community Development Director
City of Gilroy
7351 Rosanna Street
Gilroy, CA 95020
CONSULTANT: Craig Tole, Vice President
4LEAF, Inc.
2126 Rheem Drive
Pleasanton, CA 94588
I. FEDERAL FUNDING REQUIREMENTS.

If the box to the left of this sentence is checked, this Agreement involves federal funding and the requirements of this Section V.I. apply.

If the box to the left of this sentence is checked, this Agreement does not involve federal funding and the requirements of this Section V.I. do not apply.

1. DBE Program
CONSULTANT shall comply with the requirements of Title 49, Part 26, Code of Federal Regulations (49 CFR 26) and the City-adopted Disadvantaged Business Enterprise programs.

2. Cost Principles
Federal Acquisition Regulations in Title 48, CFR 31, shall be used to determine the allowable cost for individual items.

3. Covenant against Contingent Fees
The CONSULTANT warrants that he/she has not employed or retained any company or person, other than a bona fide employee working for the CONSULTANT, to solicit or secure this Agreement, and that he/she has not paid or agreed to pay any company or person, other than a bona fide employee, any fee, commission, percentage, brokerage fee, gift or any other consideration, contingent upon or resulting from the award or formation of this Agreement. For breach or violation of this warranty, the Local Agency shall have the right to annul this Agreement without liability or, at its discretion, to deduct from the agreement price or consideration, or otherwise recover, the full amount of such fee, commission, percentage, brokerage fee, gift or contingent fee.

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EXHIBIT “B”

SCOPE OF SERVICES

ON-CALL STANDARD AND EXPEDITED BUILDING AND FIRE PLAN REVIEW AND

INSPECTION SERVICES

1. Perform on-call standard or expedited plan reviews for building and fire protection services, including but not limited to residential, commercial, and industrial developments in accordance with adopted codes and standards amended by the City.

2. Performs on-call standard or expedited inspections for building and fire protection services, including but not limited to residential, commercial, and industrial in accordance with the approved documents, adopted codes, and standards amended by the City.

3. Perform on-call standard or expedited onsite civil engineering plan review services for residential, commercial, and industrial developments in accordance with the adopted codes and standards amended by the City. Additionally, ensure overall adherence to City Standards, Ordinances, and Regulations.

COMPLIANCE STANDARDS

4. Perform comprehensive plan review service including all trades; other functions include but are not limited to writing plan review comments, holding meetings, answering inquiries and phone calls as needed.

5. Incorporate requirements from other City departments, divisions, regulating agencies and jurisdictions, i.e., Planning, Engineering, Fire Prevention, Pretreatment, Health Department, as they may apply to plan reviews and inspection services.

6. Process plan revisions and verify that corrections have been satisfactorily made in a timely manner.

COMMUNICATION STANDARDS

7. Provide a telephone number and email address for service calls from Building and Fire Prevention Divisions and permit applicants.

8. Be available to confer with applicants and City staff by telephone conversations, email and meetings (in person and virtual) during all normal business hours.

9. Provide pick-up and delivery service to and from City Hall when necessary.

PROJECT COORDINATION

10. Meet with Building and Fire Prevention staff upon request.

The CONSULTANT will review submittals usign the City's online permit portal.

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TURN-AROUND TIMES
Plan Review
Initial Resubmittal #1 Resubmittal #2 Expedited
Residential < 10 Days < 5 Days < 5 Days Half the time
Multi-Family < 10 Days < 5 Days < 5 Days Half the time
Commercial < 10 Days < 5 Days < 5 Days Half the time
Large Commercial (15,000 s.f.) or Special Circumstances: negotiated/mutually agreed upon when plan is sent
The CONSULTANT will review submittals using the City's online permit portal within 24 hours.

If required, pick-up of all plans will be performed by CONSULTANT within 24 hours of the CITY's phone call or e-mail. At no additional cost, CONSULTANT will transport the plans to and from the CITY upon a phone call or email to the CONSULTANT office. Most plan reviews will be done in 10 business days or less and 5 business days or less for re-checks. This is not inclusive of holidays or the day of the pick-up of plans.

INSPECTION SERVICES
Building Inspection: CONSULTANT's inspectors are all ICC Certified and experienced working within a municipal work environment. CONSULTANT will provide inspectors with all the necessary tools, equipment, and current code books sufficient to facilitate all required inspections.

CONSULTANT will provide periodic, interim, or full-time inspectors same day or within one business day. Part-time inspection services within 24 hours of request for any duration of time.

Project specific inspection services will be available in two days or less.

Fire Inspection: CONSULTANT's fire inspectors shall all be ICC and/or CSFM Certified and experienced working within a municipal work environment. CONSULTANT will provide fire inspectors with all the necessary tools, equipment, and current code books sufficient to facilitate all required inspections. CONSULTANT will provide periodic and part-time fire inspection services the next day. Full-time and Project specific inspection services will be available in two days or less.

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EXHIBIT “C”

MILESTONE SCHEDULE
All services within this agreement will be conducted on an on-call basis whenever services are requested by the CITY.

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EXHIBIT “D”

PAYMENT SCHEDULE

PLAN REVIEW
Plan Review 60% of CITY's Plan Check Fees
(Inclusive of all disciples except Fire and Civil, which are billed on an hourly basis)
Hourly Plan Review $145 Non-Structural Review
$165 Structural Review
Expedited 1.5 above noted fee
Fees include initial review and two (2) rechecks. Hourly charges apply after three reviews. Fee also includes shipping, courier, and electronic service.

POSITION HOURLY RATE
Principal-in-Charge $220
Project Manager $185
Interim Chief Building Official $185
Senior Combination Building Inspector (Building Inspector Ill) $145 Commercial Building Inspector (Building Inspector II) $134 Residential Building Inspector (Building Inspector I) $120 OSHPD Inspection/Review $180
On-Site Structural Plan Review Engineer $165
On-Site Non-Structural Plans Examiner $145
Civil Plan Review (Grading, Improvement Plans) $178
Fire Protection Engineer (FPE) $200
Fire Plan Examiner $160
Fire Prevention Officer III $155
Fire Inspector I $133
Fire Inspector II $145

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CASp Inspection/Review $185
Mileage (during course of inspections performed within the City) IRS Rate + 10%

BASIS OF CHARGES
Rates are inclusive of “tools of the trade” such as forms, telephones, and consumables. • All invoicing will be submitted monthly. Payment due on receipt. All payments over 90 days will be assessed a 1.5% interest charge. CITY shall pay attorneys’ fees, or other costs incurred in collecting delinquent amounts.
• Staff Augmentation work (excluding plan review) is subject to 4-hour minimum charges unless stated otherwise. Services billed in 4-hour increments. • Cancellation of Building Inspection services within 24 hours of scheduled inspection will incur a minimum 2-hour charge.
• Plan review of deferred submittals and revisions will be billed at the hourly rates listed. • All plan review services are billed on a percentage basis and includes the initial review and two (2) rechecks.
- Plan reviews will be billed on an hourly basis only after the initial review and two (2) rechecks unless otherwise agreed upon on a case-by-case basis. - Fire and Civil Reviews are billed on an hourly basis and are not included in our plan review percentage.
• Beginning July 1, 2027, the hourly rate will be increased at the same percentage of increase as the City's annual CPI increase of the City's Fee Schedule. • Overtime will only be billed with prior authorization of the CITY. • Overtime and Premium time will be charged as follows:
- Regular time (work begun after 5AM or before 4PM) 1 x hourly rate - Nighttime (work begun after 4PM or before 5AM) 1.125 x hourly rate - Overtime (over 8-hour M-F or Saturdays) 1.5 x hourly rate - Overtime (over 8 hours Sat or 1st 8-hour Sun) 2 x hourly rate - Overtime (over 8 hours Sun or Holidays) 3 x hourly rate • All work with less than 8 hours rest between shifts will be charged the appropriate overtime rate.

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• In accordance with California’s Meal Break and Rest Break Law requirements, CITY will be billed one (1) additional hour per day at the regular rate for each missed meal or rest break due to CITY's-directed tasks or requirements. CITY should allow CONSULTANT's non-exempt, hourly employees the opportunity to take their entitled rest and meal breaks during each work shift.

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AGREEMENT FOR SERVICES
(For contracts over $5,000 - CONSULTANT)
This AGREEMENT made this 6 day of April, 2026, between:

CITY: City of Gilroy, having a principal place of business at 7351 Rosanna Street, Gilroy, California
and CONSULTANT: CSG Consultants, Inc., having a principal place of business at 550 Pilgrim Drive, Foster City, CA 94404.

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B. Invoices
CONSULTANT shall submit invoices for all services rendered.

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C. Indemnification of Liability, Duty to Defend

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ARTICLE 7. TERMINATION OF AGREEMENT
A. Sale of Consultant’s Business/ Death of Consultant.

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

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

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

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Mailed notices shall be addressed to the parties at the addresses appearing in Exhibit “A”, Section V.H. but each party may change the address by written notice in accordance with this paragraph.

Notices delivered personally will be deemed delivered as of actual receipt; mailed notices will be deemed delivered as of three (3) days after mailing.

K. Time of the Essence
All dates and times referred to in this Agreement are of the essence.

Executed at Gilroy, California, on the date and year first above written.

CONSULTANT: CITY:

CSG CONSULTANTS, INC. CITY OF GILROY
By: By:

Name: Cyrus Kianpour Name: Matt Morley
Title: President Title: City Administrator
Social Security or Taxpayer
Identification Number

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Approved as to Form ATTEST:

City Attorney City Clerk

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EXHIBIT “A”

SPECIFIC PROVISIONS
I. PROJECT MANAGER
CONSULTANT shall provide the services indicated on the attached Exhibit “B”, Scope of Services (“Services”). (All exhibits referenced are incorporated herein by reference.) To accomplish that end, CONSULTANT agrees to assign Crickett Brinkman, Regional Operations Director, who will act in the capacity of Project Manager, and who will personally direct such Services.

III. PROGRESS SCHEDULE
The schedule for performance and completion of the Services will be as set forth in the attached Exhibit “C”.

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

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

CONSULTANT shall obtain written approval from CITY prior to incurring or billing of direct expenses.

Copies of pertinent financial records, including invoices, will be included with the submission of billing(s) for all direct expenses.

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CONSULTANT), or for any longer period required by law, sufficient books and records in accordance with standard California accounting practices to establish the correctness of all charges submitted to CITY by CONSULTANT, all of which shall be made available to CITY at the CITY’s offices within five (5) business days after CITY’s request.

D. CONFIDENTIALITY OF MATERIAL
All ideas, memoranda, specifications, plans, manufacturing procedures, data (including, but not limited to, computer data and source code), drawings, descriptions, documents, discussions or other information developed or received by or for CONSULTANT and all other written and oral information developed or received by or for CONSULTANT and all other written and oral information submitted to CONSULTANT in connection with the performance of this Agreement shall be held confidential by CONSULTANT and shall not, without the prior written consent of CITY, be used for any purposes other than the performance of the Services, nor be disclosed to an entity not connected with the performance of the such Services. Nothing furnished to CONSULTANT which is otherwise known to CONSULTANT or is or becomes generally known to the related industry (other than that which becomes generally known as the result of CONSULTANT’S disclosure thereof) shall be deemed confidential. CONSULTANT shall not use CITY’S name or insignia, or distribute publicity pertaining to the services rendered under this Agreement in any magazine, trade paper, newspaper or other medium without the express written consent of CITY.

E. NO PLEDGING OF CITY’S CREDIT.

Under no circumstances shall CONSULTANT have the authority or power to pledge the credit of CITY or incur any obligation in the name of CITY.

F. OWNERSHIP OF MATERIAL.

G. NO THIRD PARTY BENEFICIARY.

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H. NOTICES.

Notices are to be sent as follows:

CITY: Sharon Goei, Community Development Director
City of Gilroy
7351 Rosanna Street
Gilroy, CA 95020
CONSULTANT: Cyrus Kianpour, President
CSG Consultants, Inc.
550 Pilgrim Drive
Foster City, CA 94404
I. FEDERAL FUNDING REQUIREMENTS.

If the box to the left of this sentence is checked, this Agreement involves federal funding and the requirements of this Section V.I. apply.

If the box to the left of this sentence is checked, this Agreement does not involve federal funding and the requirements of this Section V.I. do not apply.

1. DBE Program
CONSULTANT shall comply with the requirements of Title 49, Part 26, Code of Federal Regulations (49 CFR 26) and the City-adopted Disadvantaged Business Enterprise programs.

2. Cost Principles
Federal Acquisition Regulations in Title 48, CFR 31, shall be used to determine the allowable cost for individual items.

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EXHIBIT “B”

SCOPE OF SERVICES

ON-CALL STANDARD AND EXPEDITED BUILDING AND FIRE PLAN REVIEW AND

INSPECTION SERVICES

COMPLIANCE STANDARDS

6. Process plan revisions and verify that corrections have been satisfactorily made in a timely manner.

COMMUNICATION STANDARDS

7. Provide a telephone number and email address for service calls from Building and Fire Prevention Divisions and permit applicants.

8. Be available to confer with applicants and City staff by telephone conversations, email and meetings (in person and virtual) during all normal business hours.

9. Provide pick-up and delivery service to and from City Hall when necessary.

PROJECT COORDINATION

10. Meet with Building and Fire Prevention staff upon request.

The CONSULTANT will review submittals using the City's online permit portal.

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TURN-AROUND TIMES
Plan Review
Initial** Recheck**
Residential New Contruction 10 Business Days 5 Business Days Residential Additions 10 Business Days 5 Business Days
Small Residential Remodels 10 Business Days 5 Business Days Commercial New Contruction and Large/Complex Projects*
15 Business Days 10 Business Days
Commercial Additions 10 Business Days 5 Business Days
Small Commercial Remodels/Tenant Improvements
10 Business Days 5 Business Days
Residential Solar 7 Business Days 5 Business Days
Commercial Solar 10 Business Days 5 Business Days
Expedited* Half the time; negotiated/mutually agreed upon when plan is sent with larger, complex projects
*Turnaround time my vary with the complexity and magintude of the project. If a review is anticipated to take longer than the maximum turnaround time, then the CONSULTANT will notify the CITY and negotiate additonal time required to ensure an appropriate level of review.
**The number of working days associated with the plan check turnaround time is based on time of project submittal. The first working day will be the day the project is received by CONSULTANT if submitted by 12:00 PM (Noon). For a project that is received by CONSULTANT after 12:00 PM, the first working day will be the next business day.

Note: Turnaround times for housing projects subject to State streamlining will comply with State law. This includes, but is not limited to, ADU’s, SB 9 units, SB 35, by-right and ministerial housing projects.

The CONSULTANT will review submittals using the City’s online permit portal. If needed, the CONSULTANT will coordinate pickup and delivery of plans and other materials from/to the CITY via CONSULTANT personnel or an approved alternative service.

CONSULTANT will provide Building (ICC certified), Fire (experienced CSFM/ICC certified), and Onsite Civil inspections. CASp certified inspectors are available upon request.

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EXHIBIT “C”

MILESTONE SCHEDULE
All services within this agreement will be conducted on an on-call basis whenever services are requested by the CITY.

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EXHIBIT “D”

PAYMENT SCHEDULE

PLAN REVIEW TYPE ALL INCLUSIVE FEE
Full Building Plan Review 60% of CITY's Plan Check Fees Structural Only Plan Review 50% of CITY's Plan Check Fees Expedited Plan Review 90% of CITY's Plan Check Fees

BUILDING PLAN REVIEW (HOURLY RATES)
Building Plan Review $139
Building Plan Review – Professional Engineer $150
Building Plan Review – Structural Engineer $170
Residential Rooftop-Mounted Solar Energy Systems 1-hr minimum Building Grading Plan Review $170
CASp Plan Review/Consultation $166
Expedited Plan Review (Hourly) 1.5 x Hourly Rate
Overtime 1.5 x Hourly Rate
Holidays and Weekends 2.0 x Hourly Rate

BUILDING DIVISION SERVICES (HOURLY RATES)
CASp Inspection $166
Building Inspector $117
Combination Building Inspector $135
Building Department Special Projects $150

FIRE PREVENTION DIVISION SERVICES (HOURLY RATES)
Fire Plan Review $134

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Fire Inspector $134
Fire Plan Review - Fire Protection Engineer (Remote) $279 Expedited Plan Review (Hourly) 1.5 x Hourly Rate
Overtime 1.5 x Hourly Rate

ENGINEERING SERVICES (HOURLY RATES)
Assistant Engineer $180
Associate Engineer $215
Structural Engineer $260
Senior Engineer $250
Senior Structural Engineer $275
Principal Engineer $275
Senior Principal Engineer $300

BASIS FOR CHARGES
• Plan review is based on a percentage of the CITY's plan check fees and includes the initial plan review and two subsequent reviews. Additional reviews, deferred submittals, revisions, and Requests for Information (RFIs) will be charged at the appropriate hourly rate below. • RFIs for large developments will be performed at an hourly rate, and turnaround times will be agreed upon in advance with the CITY.
• Depending on project size and scope, CONSULTANT's percentage-based expedited plan review rate may be adjusted if mutually agreed upon between the CITY and CONSULTANT. • All hourly rates include overhead costs including but not limited to salaries, benefits, workers’ compensation insurance, local travel, and miscellaneous office expenses. • Should the scope of work change or circumstances develop which necessitate special handling, CONSULTANT will notify the CITY prior to proceeding. • Overtime services and services provided outside of normal business hours will be billed at

1.5x the applicable hourly rate.
• Fire inspection time will be charged during the course of inspections performed within the City.

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• Hourly rates for publicly funded projects will be based on current prevailing wage rates. • Beginning July 1, 2027, the hourly rate will be increased at the same percentage of increase as the City's annual CPI increase of the City's Fee Schedule. • CONSULTANT will mail/email an invoice every month for services rendered during the previous month. Payment terms are 30 days from receipt of invoice, except at Fiscal Year End and Calendar Year End when payment terms are 90 days from receipt of invoice. • If plans are not submitted electronically, CONSULTANT will coordinate the pickup and return of all plans to CITY via CONSULTANT staff or a licensed courier service. • For hourly projects only, performance of plan review services utilizing the CITY's adopted plan review software (e.g., ProjectDox or Bluebeam Studios) to, for example, markup plans with corrections and redlines and/or coordinate with other internal agencies, may involve additional time being added to the plan review time at the associated plan review rate. • Administration/Plan Processing fees are incurred for specific additional services requested by the CITY beyond the normally provided CONSULTANT administrative services which typically include coordinating the pick-up and return of plans; performing scanning, collating, and tracking; and providing plan review status updates to the CITY. Cost for additional services will be negotiated based on the type of request with a minimum fee based on 0.5 hours of service per project. Hourly rates for publicly funded projects will be based on current prevailing wage rates. • Building Department Special Projects may include developing and establishing the following: building department workflows and relationships with other CITY departments, building permit code requirements, inspector and permit technician responsibilities, criteria for over-thecounter plan review and out-to-plan check projects, transmittals and routing processes, Building Department handouts for different project types; and may include other duties as assigned by the CITY.
• Building Grading Plan Review - This review is limited to on-site general grading and drainage within the boundary of the proposed site and the disturbed area. The review is within the scope of the building permit and excludes any off-site reviews or analysis outside the area covered by the building permit and the plan check submittal.

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AGREEMENT FOR SERVICES
(For contracts over $5,000 - CONSULTANT)
This AGREEMENT made this 6 day of April, 2026, between:

CITY: City of Gilroy, having a principal place of business at 7351 Rosanna Street, Gilroy, California
and CONSULTANT: TRB and Associates, Inc., having a principal place of business at 3180 Crow Canyon Place, Suite 216, San Ramon, CA 94583.

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B. Invoices
CONSULTANT shall submit invoices for all services rendered.

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C. Indemnification of Liability, Duty to Defend

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ARTICLE 7. TERMINATION OF AGREEMENT
A. Sale of Consultant’s Business/ Death of Consultant.

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

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

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

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Mailed notices shall be addressed to the parties at the addresses appearing in Exhibit “A”, Section V.H. but each party may change the address by written notice in accordance with this paragraph.

Notices delivered personally will be deemed delivered as of actual receipt; mailed notices will be deemed delivered as of three (3) days after mailing.

K. Time of the Essence
All dates and times referred to in this Agreement are of the essence.

Executed at Gilroy, California, on the date and year first above written.

CONSULTANT: CITY:

TRB AND ASSOCIATES, INC CITY OF GILROY
By: By:

Name: Todd Bailey Name: Matt Morley
Title: President Title: City Administrator
Social Security or Taxpayer
Identification Number

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Approved as to Form ATTEST:

City Attorney City Clerk

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EXHIBIT “A”

SPECIFIC PROVISIONS
I. PROJECT MANAGER
CONSULTANT shall provide the services indicated on the attached Exhibit “B”, Scope of Services (“Services”). (All exhibits referenced are incorporated herein by reference.) To accomplish that end, CONSULTANT agrees to assign Neville Pereira, Project Manager, who will act in the capacity of Project Manager, and who will personally direct such Services.

III. PROGRESS SCHEDULE
The schedule for performance and completion of the Services will be as set forth in the attached Exhibit “C”.

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

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CONSULTANT shall obtain written approval from CITY prior to incurring or billing of direct expenses.

Copies of pertinent financial records, including invoices, will be included with the submission of billing(s) for all direct expenses.

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E. NO PLEDGING OF CITY’S CREDIT.

Under no circumstances shall CONSULTANT have the authority or power to pledge the credit of CITY or incur any obligation in the name of CITY.

F. OWNERSHIP OF MATERIAL.

G. NO THIRD PARTY BENEFICIARY.

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H. NOTICES.

Notices are to be sent as follows:

CITY: Sharon Goei, Community Development Director
City of Gilroy
7351 Rosanna Street
Gilroy, CA 95020
CONSULTANT: Todd Bailey, President
TRB and Associates, Inc.
3180 Crow Canyon Place, Suite 216
San Ramon, CA 94583
I. FEDERAL FUNDING REQUIREMENTS.

If the box to the left of this sentence is checked, this Agreement involves federal funding and the requirements of this Section V.I. apply.

If the box to the left of this sentence is checked, this Agreement does not involve federal funding and the requirements of this Section V.I. do not apply.

1. DBE Program
CONSULTANT shall comply with the requirements of Title 49, Part 26, Code of Federal Regulations (49 CFR 26) and the City-adopted Disadvantaged Business Enterprise programs.

2. Cost Principles
Federal Acquisition Regulations in Title 48, CFR 31, shall be used to determine the allowable cost for individual items.

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EXHIBIT “B”

SCOPE OF SERVICES

ON-CALL STANDARD AND EXPEDITED BUILDING AND FIRE PLAN REVIEW AND

INSPECTION SERVICES

COMPLIANCE STANDARDS

6. Process plan revisions and verify that corrections have been satisfactorily made in a timely manner.

COMMUNICATION STANDARDS

7. Provide a telephone number and email address for service calls from Building and Fire Prevention Divisions and permit applicants.

8. Be available to confer with applicants and City staff by telephone conversations, email and meetings (in person and virtual) during all normal business hours.

9. Provide pick-up and delivery service to and from City Hall when necessary.

PROJECT COORDINATION

10. Meet with Building and Fire Prevention staff upon request.

The CONULTANT will review submittals using the City's online permit portal.

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PLAN REVIEW
The CONSULTANT will perform on-call plan review for residential, multi-family residential, commercial, and industrial projects encompassing building, fire, electrical, plumbing, mechanical, energy, accessibility, and green building standards; as well as grading, drainage, floodplain, wildland urban interface fire severity zone, stormwater, grading, hazardous materials, and State housing law Title-25 factory-built structure considerations, as applicable. The consultant will verify conformance to adopted local codes, ordinances, regulations, and standards, City of Gilroy Municipal Code, and current California Building Standards Codes.

The CONSULTANT will perform civil engineering plan review services for residential, commercial, and industrial developments to the City on an as-needed basis. The CONSULTANT plan reviewers will work with City staff to ensure that all work conforms to the project construction documents, City Codes and Ordinances including the City Grading Code, APWA Standard Specifications, AWWA Standards, State (Title 24) and Federal (ADA) Building Codes related to site accessibility.

TURN-AROUND TIMES
Initial Submittal Within 10 business days
Re-Submittal Within 5 business days for all subsequent re-submittals Expedited Half the time; large or complex projects will be negotiated/mutually agreed upon when the plan is sent

BUILDING AND FIRE INSPECTION
The CONSULTANT will perform inspections, referring to building plans, structural calculations, and material specifications for structures located within the City limits, upon 24-hour notice. The CONSULTANT provides all labor and technical, administrative, professional, and other personnel; supplies, materials, equipment, and all other resources necessary to perform the specified work.

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EXHIBIT “C”

MILESTONE SCHEDULE
All services within this agreement will be conducted on an on-call basis whenever services are requested by the CITY.

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EXHIBIT “D”

PAYMENT SCHEDULE

PLAN REVIEW FIXED FEE
Complete Plan Review 60% of CITY's Plan Check Fee
Life Safety & Structural Review 55% of CITY's Plan Check Fee Structural-Only Review 50% of CITY's Plan Check Fee
Non-Structural-Only Review 45% of CITY's Plan Check Fee MEP-Only Review 35% of CITY's Plan Check Fee
Expedited Plan Review 1.5 x above-noted fee

BILLING RATES FOR SERVICES (HOURLY RATES)
Principal $215
Building Official $180
Principal Plan Review Engineer/Architect $180
Senior Plan Review Engineer/Architect $160
Senior Plans Examiner (Building & Fire) $155
Plan Review Engineer/Architect $150
Plans Examiner (Building & Fire) $140
Engineering Technician $ 95 - $120
Fire Protection Engineer $225
CASp Certified Inspector/Examiner $180
Grading/Storm Water Plan Review Engineer $205
Senior Inspector (Building & Fire) $125 - $150
Inspector (Building & Fire) $110 - $125

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BASIS FOR CHARGES
• Plan reviews billed on a fixed fee basis fee include up to three total plan review cycles – the initial plan review and two rechecks. Any further review cycles which become necessary and reviews of revisions to approved plans would be billed on an hourly rate basis, as published above.
• Overtime, Emergency, Expedited, and After-hours work is billed at the above-noted rates plus an additional 50 percent.
• Project inspections subject to prevailing wage requirements are at the above-published rates plus 30 percent.
• All requested inspection and other staff-augmentation services are subject to a minimum four-hour fee.
• Mileage during the course of inspections performed within the City will be reimbursed at the IRS rate.
• Reimbursement for direct expenses, incurred in connection with the work, will be at cost. • “Complete Plan Review” includes Structural, Life Safety/Disabled Access, M/E/P, Green, Energy disciplines.
• Beginning July 1, 2027, the hourly rate will be increased at the same percentage of increase as the City's annual CPI increase of the City's Fee Schedule.

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AGREEMENT FOR SERVICES
(For contracts over $5,000 - CONSULTANT)
This AGREEMENT made this 6 day of April, 2026, between:

CITY: City of Gilroy, having a principal place of business at 7351 Rosanna Street, Gilroy, California
and CONSULTANT: True North Compliance Services, Inc., having a principal place of business at 3355 E. Spring Street, #302, Long Beach, CA 90806..

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B. Invoices
CONSULTANT shall submit invoices for all services rendered.

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C. Indemnification of Liability, Duty to Defend

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ARTICLE 7. TERMINATION OF AGREEMENT
A. Sale of Consultant’s Business/ Death of Consultant.

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

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

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

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Mailed notices shall be addressed to the parties at the addresses appearing in Exhibit “A”, Section V.H. but each party may change the address by written notice in accordance with this paragraph.

Notices delivered personally will be deemed delivered as of actual receipt; mailed notices will be deemed delivered as of three (3) days after mailing.

K. Time of the Essence
All dates and times referred to in this Agreement are of the essence.

Executed at Gilroy, California, on the date and year first above written.

CONSULTANT: CITY:

TRUE NORTH COMPLIANCE
SERVICES, INC.

CITY OF GILROY
By: By:

Name: Isam Hasenin Name: Matt Morley
Title: President Title: City Administrator
Social Security or Taxpayer
Identification Number

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Approved as to Form ATTEST:

City Attorney City Clerk

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EXHIBIT “A”

SPECIFIC PROVISIONS
I. PROJECT MANAGER
CONSULTANT shall provide the services indicated on the attached Exhibit “B”, Scope of Services (“Services”). (All exhibits referenced are incorporated herein by reference.) To accomplish that end, CONSULTANT agrees to assign Amar Hasenin, Director of Operations, who will act in the capacity of Project Manager, and who will personally direct such Services.

III. PROGRESS SCHEDULE
The schedule for performance and completion of the Services will be as set forth in the attached Exhibit “C”.

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

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CONSULTANT shall obtain written approval from CITY prior to incurring or billing of direct expenses.

Copies of pertinent financial records, including invoices, will be included with the submission of billing(s) for all direct expenses.

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E. NO PLEDGING OF CITY’S CREDIT.

Under no circumstances shall CONSULTANT have the authority or power to pledge the credit of CITY or incur any obligation in the name of CITY.

F. OWNERSHIP OF MATERIAL.

G. NO THIRD PARTY BENEFICIARY.

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H. NOTICES.

Notices are to be sent as follows:

CITY: Sharon Goei, Community Development Director
City of Gilroy
7351 Rosanna Street
Gilroy, CA 95020
CONSULTANT: Amar Hasenin, Director of Operations
True North Compliance Services, Inc.
3355 E. Spring Street, #302
Long Beach, CA 90806
I. FEDERAL FUNDING REQUIREMENTS.

If the box to the left of this sentence is checked, this Agreement involves federal funding and the requirements of this Section V.I. apply.

If the box to the left of this sentence is checked, this Agreement does not involve federal funding and the requirements of this Section V.I. do not apply.

1. DBE Program
CONSULTANT shall comply with the requirements of Title 49, Part 26, Code of Federal Regulations (49 CFR 26) and the City-adopted Disadvantaged Business Enterprise programs.

2. Cost Principles
Federal Acquisition Regulations in Title 48, CFR 31, shall be used to determine the allowable cost for individual items.

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EXHIBIT “B”

SCOPE OF SERVICES

ON-CALL STANDARD AND EXPEDITED BUILDING AND FIRE PLAN REVIEW AND

INSPECTION SERVICES

COMPLIANCE STANDARDS

6. Process plan revisions and verify that corrections have been satisfactorily made in a timely manner.

COMMUNICATION STANDARDS

7. Provide a telephone number and email address for service calls from Building and Fire Prevention Divisions and permit applicants.

8. Be available to confer with applicants and City staff by telephone conversations, email and meetings (in person and virtual) during all normal business hours.

9. Provide pick-up and delivery service to and from City Hall when necessary.

PROJECT COORDINATION

10. Meet with Building and Fire Prevention staff upon request.

The CONSULTANT will review submittals using the City's online permit portal.

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The CONSULTANT's staff shall be licensed and/or certified in all disciplines including Licensed Structural Engineers, Licensed Civil, MEP Engineer, Licensed Fire Protection Engineers, ICC Certified Plans Examiners, ICC Certified Inspectors, ICC Certified Permit Technicians, and more.

TURN-AROUND TIMES
Plan Review
Initial Recheck
Residential Solar & ESS 2 Business Days 2 Business Days Single Family Dwellings 10 Business Days 5 Business Days Commercial & Multi-Family Projects 10 Business Days 5 Business Days Expedited Half the time; large or complex projects will be negotiated/mutually agreed upon when plan is sent

INSPECTION SERVICES
The CONSULTANT's staff shall be certified by the International Code Council or other appropriate entities in accordance with AB717 and possess many years of building code inspection experience with a municipality or a private municipal consultant. Inspectors will possess and maintain necessary certifications required to perform inspections and be equipped with all necessary tools needed to perform inspections, including a complete set of current code books.

The CONSULTANT will provide the services of a Certified Accessibility Specialist (CASp). The CONSULTANT will update the City’s permit tracking software, including transferring all applicable field notes

FIRE PLAN REVIEW AND INSPECTION SERVICES
The CONSULTANT will provide plan review and/or inspection for the State regulated occupancies such as assemblies, restaurants, theaters, private schools and clinics (OSHPD 3), to determine compliance with City and State codes and regulations including but not limited to locally adopted fire related ordinances and amendments; California Wild Land Urban Interface regulations; review for fire apparatus access; water supply requirements; fire flow requirements, etc. Typically, fire review will include review of building plans for code compliance, as well as review of fire plans (fire sprinkler systems, fire alarm systems, NFPA standards, etc.) City Engineering Services:

The CONSULTANT will provide plan review and inspection of Civil/public improvements projects from one small lot to large subdivisions. The CONSULTANT will review grading, subdivision and topographic maps; examining existing and proposed contour lines, spot elevations, pad and finish floor elevations; review of hydrology reports and maps; review of low impact development measures to comply with the requirements of NPDES; review of erosion and sediment control plans for proposed BMPs.

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IMPLEMENTATION PLAN

1. The CONSULTANT will hold an initial implementation meeting with the CITY as soon as the contract is signed to gain an insight on current key issues, challenges and needs of the Building & Safety Division.

2. Tour the City’s Building Services operation and meet and greet with manager/staff of City departments that are involved in the development review and permitting process.

3. The CONSULTANT will review all the policies and procedures of the Building & Safety Division’s plan review and inspection process.

4. The CONSULTANT will provide internal training to their staff on CITY process, technical policies and other applicable local ordinances and regulations.

5. The CONSULTANT will establish an internal policy manual for the CITY plan review and inspection process to ensure their staff follows established procedures and local ordinances and regulations.

6. Set up the process and procedures for plan routing.

7. The CONSULTANT will train their staff on the CITY's permitting software system.

8. The CONSULTANT will develop standardized plan review checklists specific for the CITY.

9. The CONSULTANT's President will set up regular meetings with the CITY to discuss process, procedures, technical issues and receive feedback on the performance of the CONSULTANT's staff.

CONSULTANT'S COMMITMENT INCLUDES THE FOLLOWING ELEMENTS:

1. Unparalleled Building and Safety expertise of team members, and highest quality plan reviews and inspection services.

2. Streamlined communication with the Director of Operations serving as the single point of contact, maintaining open lines of communication with the CITY and permit applicants.

3. Provide experienced and certified Building Inspectors to fulfill CITY needs to ensure inspection demands are met.

4. Supply any necessary plan review staffing levels to meet the volume of work and level of permit activities.

5. Consistently implement a rigorous quality assurance program for all services provided.

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6. Actively work one-on-one with designers and/or developers to provide high-quality, responsive plan review services, address plan check comments and ensure positive customer experience outcomes.

7. Guarantee a balance of consistency, conformance, and efficiency in all plan reviews.

8. Provide daily pick up of plans at City offices for any paper plans, if needed.

9. Professionally prepared comment lists with clear reference to applicable code sections.

10. Commitment to reviewing plans within the agreed upon turn-around times.

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EXHIBIT “C”

MILESTONE SCHEDULE
All services within this agreement will be conducted on an on-call basis whenever services are requested by the CITY.

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EXHIBIT “D”

PAYMENT SCHEDULE

PLAN REVIEW SERVICES
Plan Review Fee 60% of CITY's Plan Check Fees
Expedited Plan Review Fee 1.5 x the proposed plan review fees The Plan Review Fee includes the initial review and all subsequent rechecks. The fee includes shipping and delivery of plans to/from City Hall.

Revisions/Deferred will be billed per the hourly rates table below.

POSITION HOURLY RATE
Interim Certified Building Official $155
Plan Review Engineer $135
Senior Plan Review Engineer $150
Structural Engineer $150
Certified Engineering Geologist/Geotechnical Engineer $150 Licensed Fire Protection Engineer $150
Certified Plans Examiner I $110
Certified Plans Examiner II $120
Building/Housing Inspector I $105
Building/Housing Inspector II $115
Senior Building/Housing Inspector $125
Code Enforcement Officer $110
CASp Plan Reviewer/Inspector $135
Fire Plan Reviewer/Inspector I $120
Fire Plan Reviewer/Inspector II $135

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• Mileage during the course of inspections performed within the City will be reimbursed at the IRS rate.
• Inspections outside of City business hours will be charged at 1.4 X the hourly rate with a three-hour minimum.
• Incidental expenses will be charged at cost.
• The rate schedule is for the term of the agreement.

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City of Gilroy

STAFF REPORT
Agenda Item Title: Proposed High Speed Rail Tax Increment Financing Meeting Date: April 6, 2026
From: Matt Morley, City Administrator
Department: City Administrator
STRATEGIC PLAN GOALS: Develop a Financially Resilient Organization

RECOMMENDATION
Authorize the Mayor to sign a Letter of Opposition to the High Speed Rail Authority’s Tax Increment financing proposal.

EXECUTIVE SUMMARY
Cal Cities is coordinating opposition to a Tax Increment Financing effort being brought forward by California High Speed Rail Authority for areas within ½ mile of their proposed stations.

ANALYSIS
Cal Cities has recently noticed Gilroy and other cities with proposed High Speed Rail stations of proposed legislation that would establish Tax Increment Financing districts for areas within ½ mile of those stations. Cal Cities is coordinating letters of opposition from Mayors of those cities.

A Tax Increment Financing District would lock the property tax and potentially sales tax within the District boundaries at a point in time. Future increases to those taxes would be attributed and distributed to the High Speed Rail Authority.

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Should the legislation succeed, it would provide a significant source of funding for High Speed Rail. High Speed Rail supporters might argue that the existence of a station served by High Speed Rail would generate significant economic activity within ½ mile.

From a local jurisdiction’s perspective, the City would lose the growth in property and sales tax in these areas while continuing to incur expanding municipal expenses.

Attachment 1 is the proposed language for a letter as provided by Cal Cities and includes discussion and reasons for opposition. Attachment 2 provides a map with an approximate reach of a ½ mile district.

ALTERNATIVES
Oppose the Mayor signing the letter of opposition for High Speed Rail Tax Increment Financing.

FISCAL IMPACT/FUNDING SOURCE
There is an unquantified but potentially significant reduction in future growth of tax revenues if the Tax Increment Financing legislation were to succeed.

Attachments:

1. Draft Letter in Opposition of High Speed Rail Tax Increment Financing

2. Map demonstrating the approximation of a ½ mile district.

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City of Gilroy
Mayor’s Office
City Hall
7351 Rosanna Street
Gilroy, California
95020-6197
Greg Bozzo, Mayor
[email protected]
City Hall Office (408) 846-0227
Cell Phone (408) 465-6032
www.cityofgilroy.org

March 19, 2026
The Honorable Laura Richardson The Honorable Steve Bennett Chair, Senate Subcommittee No. 5 Chair, Assembly Subcommittee No. 4 Capitol Office, 1021 O Street, Room 7340 Capitol Office, 1021 O Street, Suite 4710 Sacramento, CA 95814 Sacramento, CA 95814
Re: Proposed Tax Increment Financing District
Dear Chairs,
On behalf of the undersigned mayors from cities throughout California, we write in the strongest possible terms to oppose the California High-Speed Rail Authority’s proposal to establish state-controlled Tax Increment Financing (TIF) districts within a one-half-mile radius of proposed station areas for the purpose of capturing property and potentially sales tax growth to fund high-speed rail construction and related commercialization activities.

While we recognize the significant financial challenges facing the High-Speed Rail project and appreciate the Authority’s efforts to identify innovative funding strategies, the proposed value-capture framework raises profound legal, fiscal, and policy concerns for local governments and the communities we serve.

At its core, the proposal is a direct attempt to divert locally controlled tax revenues, undermine voterapproved constitutional protections, and erode the fiscal stability of California’s cities to backfill a project that continues to face severe financial uncertainty.

Constitutional and Legal Concerns
The proposal to divert local tax increment to a state entity appears inconsistent with multiple provisions of the California Constitution. Local sales tax revenues are expressly protected for local governmental purposes, and the Legislature is prohibited from reallocating or transferring those revenues. Similarly, Proposition 1A (2004) guarantees that cities, counties, and special districts retain their constitutionally protected share of property tax allocations. Mandatory diversion of property tax increment to a state

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authority that is not a constitutionally recognized taxing entity violates these protections and would almost certainly invite extensive litigation.

The High-Speed Rail Authority is not a local taxing district, as such, it has no constitutional claim to local tax revenues. Any attempt to divert increment to a state entity would almost certainly trigger protracted litigation and create enormous fiscal uncertainty for local governments statewide.

An Assault on Local Control
Equally concerning is the proposal’s suggestion that the Authority could exercise regulatory influence over land within station areas. Land use authority is constitutionally reserved to cities and counties. While the state may set standards, it cannot assume direct local planning powers.

This proposal crosses that line. It represents an unprecedented intrusion into local governance and sets a dangerous statewide precedent.

Threats to Local Fiscal Stability and Public Services
The proposed TIF model would divert future property tax growth—revenues that local governments rely upon to fund essential public services, including public health and safety, infrastructure maintenance, parks, housing programs, and local transportation improvements. Over the potential 45-year lifespan of a TIF district, these diversions would significantly constrain local fiscal capacity, particularly in communities already struggling with service demands and infrastructure backlogs.

Although school district property tax shares are typically excluded from existing TIF structures such as Enhanced Infrastructure Financing Districts (EIFDs) and Community Revitalization and Investment Authorities (CRIAs), the broader fiscal ecosystem is interconnected. Reduced city, county, and special district revenue capacity can indirectly affect school support services, public safety coordination, and community investment.

At a time when local governments are already confronting escalating infrastructure costs, housing pressures, and public safety challenges, the Authority’s proposal would impose a long-term structural fiscal penalty on the very communities being asked to accommodate this project.

Departure from Established California TIF Frameworks
California’s existing TIF tools—including EIFDs and CRIAs—are locally initiated, voluntary, and governed by public financing authorities with local representation. Participation by taxing entities requires affirmative consent, and project priorities are determined through locally adopted financing plans.

By contrast, the High-Speed Rail proposal contemplates a state-directed value-capture model that would override local initiation, governance, and consent principles. This represents a fundamental departure from decades of established public finance policy in California.

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Funding the Project Cannot Come at the Expense of Communities California’s cities support statewide infrastructure investment and our opposition to this proposal should not be interpreted as an indictment of the state’s high-speed rail project. But the responsibility for funding a state megaproject lies with the state—not with local taxpayers whose revenues are constitutionally protected for local purposes.

If the state believes additional funding is necessary, as it did in adopting last year’s budget that allocated $20 billion from the state Greenhouse Gas Reduction Fund (GGRF) to the high-speed rail project, it must pursue transparent, lawful, statewide solutions—such as voter-approved bonds or dedicated state revenue sources—rather than attempting to divert local tax growth through a legally dubious scheme.

Conclusion
This proposal is fiscally reckless, legally vulnerable, and fundamentally unfair to the communities expected to host High-Speed Rail facilities. It would weaken local governments, destabilize public services, and undermine constitutional protections that California voters have repeatedly affirmed.

Simply put: the state cannot solve a state funding problem by raiding local tax bases.

We respectfully urge the Legislative leaders to oppose this proposal and instead engage collaboratively with local governments to identify funding strategies that consider both statewide infrastructure goals and local fiscal integrity.

Sincerely,
_______________________________
Greg Bozzo, Mayor
Cc: The Honorable Gavin Newsom, Governor, State of California Members, Board of Directors, California High-Speed Rail Authority Mark Tollefson, Chief Deputy Director, California High-Speed Rail Authority The Honorable Monique Limón, California Senate President pro Tempore The Honorable Robert Rivas, California Assembly Speaker The Honorable John Laird, Chair of the Senate Budget and Fiscal Review Committee The Honorable Jesse Gabriel, Chair of the Assembly Budget Committee The Honorable Dave Cortese, Chair of the Senate Transportation Committee The Honorable Lori Wilson, Chair of the Assembly Transportation Committee

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Note: Map is for reference purposes only.

City of Gilroy
18,056 City of Gilroy, GIS Services

0.6 WGS_1984_Web_Mercator_Auxiliary_Sphere 1:

0.28 Miles 0 0.6
City of Gilroy

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10.1. City of Gilroy

STAFF REPORT
Agenda Item Title: Receive Draft Community Development Block Grant Program Year 2026-2027 Annual Action Plan and Draft Citizen
Participation Plan and Provide Direction on CDBG PY 2026- 2027 Funding Allocations
Meeting Date: April 6, 2026
From: Matt Morley, City Administrator
Department: Community Development
Submitted by: Sharon Goei, Community Development Director Prepared by: Sharon Goei, Community Development Director Sandra Nava, Housing and Community Services Coordinator STRATEGIC PLAN GOALS: Promote Safe and Affordable Housing for All

RECOMMENDATION
Receive draft Community Development Block Grant (CDBG) Program Year (PY) 2026- 2027 Annual Action Plan (AAP) and draft Citizen Participation Plan (CPP) and provide direction on CDBG PY 2026-2027 funding allocations.

EXECUTIVE SUMMARY
For CDBG PY 2026-2027 (July 1, 2026 – June 30, 2027), the City anticipates receiving an estimated $400,000 in CDBG entitlement funding from the U.S. Department of Housing and Urban Development (HUD). This estimate is derived from the PY 2025- 2026 annual allocation of $380,083. Based on an estimated allocation of $400,000, the funding for public services is $60,000 (capped at 15%) and the funding for program administration is $80,000 (capped at 20%), leaving $260,000.00 for non-public service activities. In addition to the annual allocation, staff has identified $21,604.75 in unexpended CDBG prior years’ resources that will be allocated to qualified non-public service activities, bringing the non-public service allocation to $281,604.75. These allocations are included in the draft PY 2026-2027 AAP, which outlines the funding allocations for the program year. PY 2026-2027 will be a one-year funding cycle for the proposed activities and represents the second year of the City’s 2025-2030 Consolidated Plan (Con Plan).

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10.1. Due to the limited funding available and the significantly higher applicant funding requests, staff is presenting the City Council with funding approaches/options to seek input and direction on the final activities to be included in the draft AAP.

This year the Council will also be reviewing and considering the draft CPP and draft AAP for approval and adoption at the May 4, 2026, City Council public hearing. The CPP establishes the policies and procedures by which the City solicits and incorporates public input in the development, implementation, and evaluation of federally funded housing and community development programs.

The proposed update ensures that the City’s policies are fully consistent with the public participation requirements established by the U.S. Department of Housing and Urban Development (HUD), specifically under 24 CFR Part 91.105, which governs citizen participation for entitlement jurisdictions preparing Con Plans, AAPs, Substantial Amendments, and Consolidated Annual Performance and Evaluation Reports (CAPER).

The updated CPP strengthens the City’s commitment to transparency, accessibility, and community engagement by clarifying outreach procedures, expanding participation opportunities for low- and moderate-income residents and public housing residents, and formalizing procedures for public hearings, access to records, and responses to citizen complaints.

Staff recommends that the City Council receive the draft PY 2026-2027 AAP, draft CPP, receive public comments, and provide direction on PY 2026-2027 funding allocations. Upon direction from the City Council, staff will update the draft PY 2026- 2027 AAP to incorporate the funding recommendations.

Staff will return to the City Council on May 4, 2026, for the Council to consider approval and adoption of the CPP, AAP, and funding allocations, prior to staff’s submission to HUD.

BACKGROUND
HUD provides annual grants through the CDBG program to local entitlement community grantees, such as the City of Gilroy. The CDBG program provides funding to carry out a wide range of community development activities to revitalize neighborhoods and provide improved community facilities and services. The program’s primary objective is to develop viable urban communities by providing decent housing and a suitable living environment, principally for persons with low-and moderate-income, defined as families, households, and individuals whose incomes do not exceed 80% of the County area median income, adjusted for family or household size. The program is authorized under Title 1 of the Housing and Community Development Act of 1974, Public Law 93-383, as amended.

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10.1. Eligible Activities
The CDBG program requires that each activity, except for program administration, must meet one of the three national objectives:
• Benefit low- and moderate-income persons
• Aid in the prevention or elimination of slums and blight • Urgent Need – address a particular urgency that poses serious and immediate threat to the health and welfare of the community Gilroy’s CDBG funded activities must meet the national objective of benefiting low- and moderate-income persons. The CDBG program is flexible in the types of activities that are eligible for funding. The CDBG program allows, but is not limited to, the following activities:
• Acquisition of real property
• Relocation and demolition
• Rehabilitation of residential and non-residential structures • Construction of public facilities and improvements, such as streets and neighborhood centers
• Public services
Generally, the following types of activities are ineligible:
• Acquisition, construction, or reconstruction of buildings for the general conduct of government
• Political activities

ANALYSIS
PY 2026-2027 will be a one-year funding cycle for the proposed activities and represents the second year of the City’s 2025-2030 Con Plan. The Con Plan identifies the community development and housing needs for the City’s residents. CDBG funds must be used to implement the priority needs and goals identified in the Con Plan.

Available PY 2026-2027 Funding
For PY 2026-2027, the City anticipates receiving an estimated $400,000 in CDBG entitlement funding from HUD. While CDBG funding may be used for a variety of activities, due to HUD’s funding caps, the City is limited to only utilizing 15% of the estimated $400,000 annual allocation, or $60,000, on activities that fall under the public service grant category, the most requested application category received each year.

Also due to HUD’s funding caps, only 20% of the grant, or $80,000, can be allocated to program administration, leaving $260,000 available for non-public service activities. In

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10.1. addition to the $260,000, staff has identified $21,604.75 in unexpended CDBG prior years’ resources that will also be included in the draft PY 2026-2027 AAP and committed to qualified non-public service activities, resulting in $281,604.75 being available for allocation to non-public services.

The following table summarizes the available funding and eligible uses for PY 2026- 2027.

Eligible Uses
Funding Amount Public Service
(15% Cap)
Non-Public
Service
Program
Administration
(20% Cap)
PY 2026-2027
Formula Funds
(Estimate)
$400,000.00 $60,000.00 $260,000.00 $80,000.00
Prior Years’
Resources $21,604.75 _ $21,604.75 _
PY 2026-2027
Total (Estimate) $421,604.75 $60,000.00 $281,604.75 $80,000.00 CDBG Applications
The City is responsible for developing a process to disperse its annual CDBG funds to the community. To facilitate this process, the City conducts public outreach and releases a Notice of Funding Availability (NOFA) for each funding cycle that allows interested parties to directly apply for these funds.

The NOFA for PY 2026-2027, including application materials, eligibility criteria, and submittal requirements, was published and released to the public on January 30, 2026 Staff held a virtual public hearing on February 17, 2026, to review the NOFA and application process, answer applicants’ questions, and receive public comments on the CDBG program. Prior to application submittal, as described in the application, application instructions, and throughout the public hearing presentation, first-time applicants or applicants with new projects/programs were required to meet with City staff to discuss whether their proposed project/program complies with CDBG eligibility requirements. For this funding cycle, staff utilized a simplified application approach to decrease the burden of information and documentation required at the time of application submittal. The simplified application gathered critical information to determine eligibility and expedited the application process. Those projects/programs recommended for funding will be required to submit a full application prior to the start of the program year to ensure compliance with local and federal requirements. During the

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10.1. public hearing, staff also highlighted key PY 2024-2025 program achievements from the CAPER and provided a public comment period.

Applications were due March 2, 2026. Staff received nine (9) applications requesting a total of $795,520.89 in funding. A summary of each application’s proposed activity and requested funding is provided in the attachment to this staff report.

Staff reviewed applications and supporting documents, determined eligibility based on the project description, conducted HUD research, and analyzed a variety of approaches and options to arrive at the funding recommendations. To facilitate analysis, staff identified applications as either “public service” or “non-public service” based on the funding restrictions.

Public Service Applications
Referring to the attachment, staff received a total of six (6) public service applications for CDBG funding, with funding requests totaling $129,371.89. These applications are competing for an estimated $60,000 in entitlement funds available for public services.

To broaden the distribution of Gilroy resources, the following funding options and approaches are offered for consideration. The options and approaches listed below include all six (6) public service applications, as they are all considered eligible for funding.
➢ Equal Distribution Option – Fund all public service applications equally with funds available.

Result: Fund the six (6) eligible public service applications at $10,000 per application (City’s grant minimum is $7,500 per application).

Based on this option, the total amount available would be evenly distributed among the six (6) applicants, allowing for the allocation of $10,000 per applicant. This option provides funds to meet a variety of priority needs in the community.

Please refer to the “Equal Distribution Option” column for Public Service in the attachment.
➢ Evaluation-Based Option – Fund all public service applications based on their evaluation.

Result: Fund the six (6) eligible public service applications proportionally based on their evaluation.

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10.1. The evaluation method utilizes the evaluation criteria provided to the applicants and focuses the limited dollars available proportionally based on total scores. The evaluation method focuses on the following criteria:
• Meeting Con Plan priority goals
• Agency’s experience providing proposed/similar service • Efforts to collaborate with other agencies to augment rather than duplicate services
• Program performance/meeting goals in current City funded programs Based on the evaluation criteria above, staff reviewed each public service application; three (3) were tied for first place, one (1) was in second place, two (2) were tied for third place. The evaluation rating is listed below from high to low:

1. Peer to Peer Support for Unhoused Residents; Fair Housing; TenantLandlord Services

2. Housing and Emergency Services for Persons with Disabilities

3. Young Mothers Support Services; Transit Services
Staff acknowledges how important all these services are for the community and how deserving all applicants are for these funds. Based on this option and methodology, funding would be allocated to the applications proportionally based on their scores received during the evaluation process.

Please refer to the “Evaluation-Based Option” column for Public Service in the attachment.

Non-Public Service Applications
Referring to the attachment, staff received a total of three (3) applications for non-public service CDBG funding, with funding requests from Public Works, Rebuilding Together Silicon Valley, and Bay Area Community Health totaling $666,149.00. These non-public service applications are competing for an estimated $281,604.75 in entitlement funds available for non-public services (including $21,604.75 from prior years’ resources).

To broaden the distribution of Gilroy resources, the following funding options and approaches are offered for consideration. The options and approaches listed below include all three (3) non-public service applications, as they are all considered eligible for funding.
➢ Equal Distribution Option – Fund all non-public service applications equally with funds available.

Result: Fund all non-public service applications an equal amount.

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10.1. Based on this option, the total amount available would be evenly distributed among the three (3) applicants.

Please refer to the “Equal Distribution Option” column for Non-Public Service in the attachment.
➢ Evaluation-Based Option – Fund all non-public service applications based on their evaluation.

Result: Fund the three (3) eligible non-public service applications proportionally based on their evaluation.

The evaluation method utilizes the evaluation criteria provided to the applicants and focuses the limited dollars available proportionally based on total scores. The evaluation method focuses on the following criteria:
• Meeting HUD National Objective Compliance and Community Need • Agency’s experience completing proposed/similar project and management of CDBG grant
• Project readiness to proceed and ability to comply with HUD timeliness requirements
• Financial feasibility and budget reasonableness
Based on the evaluation criteria above, staff reviewed each application. The evaluation rating is listed below from high to low:

1. Housing Rehabilitation and Accessibility Modification and Sidewalk Improvements projects received equal ratings

2. Gilroy Clinic Improvements Expanding Access for the Elderly Staff acknowledges how important all these services are for the community and how deserving all applicants are for these funds. Based on this option and methodology, funding would be allocated to the applications proportionally based on their scores received during the evaluation process.

Please refer to the “Evaluation-Based Option” column for Non-Public Service in the attachment.

Summary
Staff has presented the City Council with two public service and two non-public service funding approaches/options to seek input and direction on the final activities to be included in the draft AAP. In the funding allocation attachment, staff has provided a

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10.1. summary of each applicant’s proposed activity, requested funding, and the proposed allocation under each option.

When HUD releases the actual amount of PY 2026-2027 formula funds, usually in the spring, staff will adjust the proposed allocation for each application proportionally to align with the Council’s direction. Staff will also incorporate such adjustments in the AAP.

Following a 30-day public comment period (March 13, 2026 – April 13, 2026), staff will return to the City Council on May 4, 2026, for a public hearing for the Council to consider approval and adoption of the CPP, AAP, and funding allocations prior to staff’s submission to HUD.

ALTERNATIVES
The City Council may allocate the funds as it deems appropriate while staying within the maximum percentages (caps) required by HUD.

FISCAL IMPACT/FUNDING SOURCE
CDBG funds are allocated by HUD on an annual basis and will be added to the City’s line of credit once the draft AAP is approved by HUD.

CDBG resources are budgeted and expended from the City’s CDBG Fund (Fund 245).

The resources and funding recommendations will be included in the City’s budget update.

PUBLIC OUTREACH
A public comment period from March 13, 2026 – April 13, 2026, is being held for the PY 2026-2027 draft AAP and draft CPP to seek community input, as well as a public meeting on April 6, 2026, and a public hearing that will take place on May 4, 2026.

NEXT STEPS
Upon direction by the City Council, staff will update the draft AAP with the funding recommendations. When HUD releases the actual amount of PY 2026-2027 formula funds, staff will adjust the proposed allocation for each application proportionally to align with the Council’s direction. Staff will return to the City Council on May 4, 2026, for

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10.1. Council to consider approval and adoption of the draft CPP and the draft AAP which will include funding allocations.

Attachments:

1. Draft PY 2026-2027 Application Funding Allocation

2. Draft PY 2026-2027 Annual Action Plan
(https://www.cityofgilroy.org/DocumentCenter/View/19943)

3. Draft Citizen Participation Plan
(https://www.cityofgilroy.org/DocumentCenter/View/19944)

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CDBG Program Year 2026-2027 Application Funding Allocation Applicant Activity Description Applicant
Request
Estimated
Formula
Funds
Prior Years'
Resources
Equal
Distribution
Option i
EvaluationBased
Option ii
$ 400,000.00 $ 21,604.75
Carry the Vision
Peer to Peer Support
for Unhoused
Residents
Provide a lived experience, peer led public service initiative focused on stabilization and consistent engagement with individuals experiencing homelessness in Gilroy through ongoing relationship based outreach that strengthens trust, reduces isolation, and supports emotional and day-to-day stability. $ 60,000.00 $ 10,000.00 $ 10,298.51
Project Sentinel Fair Housing
Address illegal housing discrimination by investigating complaints, administering audits, conducting community outreach and education, and pursuing appropriate remedies when federal and state fair housing laws are violated.
$ 15,781.47 $ 10,000.00 $ 10,298.51
Project Sentinel Tenant-Landlord
Services
Provide tenant-landlord counseling services to Gilroy residents to prevent eviction and housing instability through information and referral, case management, dispute resolution through
conciliation or mediation, and community education.
$ 15,565.40 $ 10,000.00 $ 10,298.51
Sourcewise Transit Services
Provide timely, free transit rides to low-income seniors and/or disabled adults to local medical/dental appointments,
pharmacies, grocery stores, and to socialize at the Senior Center.
$ 10,930.02 $ 10,000.00 $ 9,626.86
Shine Together Inc. Young Mothers
Support Services
Provide educational navigation and advocacy, parenting
education, and social-emotional learning to young Gilroy mothers and their children at San Ysidro Park. The program began in Gilroy in 2025 to address the growing unmet need in South County.
$ 12,000.00 $ 10,000.00 $ 9,626.86
Silicon Valley
Independent Living
Center
Housing and
Emergency Services
for Persons with
Disabilities
Provide counseling, support and assistance to low-income Gilroy residents who have a disability or chronic health condition to assist in their transition from homelessness, health care facilities, or unstable or temporary housing into permanent, affordable, accessible, integrated housing.
$ 15,095.00 $ 10,000.00 $ 9,850.75
Subtotal Total Requested Applications $ 129,371.89 $ 60,000.00 $ 60,000.00 $ 60,000.00 Equal
Distribution
Option i
EvaluationBased
Option ii

City of Gilroy Public
Works
Sidewalk
Improvements
Provide much needed accessibility improvements at San Ysidro Park and downtown Gilroy on 7th Street, including ADAcompliant concrete path, curb ramps, sidewalk, curb, gutter, and other incidental items within two low-income census tracts, to meet accessibility compliance and create safe pedestrian pathways.
$ 241,149.00 $ 93,868.25 $ 100,297.58
Rebuilding Together
Silicon Valley
Housing Rehabilitation
and Accessibility
Modification
Provide low-income homeowners with free critical health and safety repairs, accessibility improvements, and limited rehabilitation for mobile homes, condominiums, and single-family homes to address urgent needs and help the beneficiaries safely age in place.
$ 275,000.00 $ 93,868.25 $ 100,297.58
Bay Area Community
Health
Gilroy Clinic
Improvements
Expanding Access for
the Elderly
Utilize CDBG funding to build out its Gilroy Clinic into an allinclusive care for the elderly center, expanding access to supportive services for low income older adults, enabling those needing nursing-home-level care to remain in their communities. $ 150,000.00 $ 93,868.25 $ 81,009.59
Subtotal Total Requested Applications $ 666,149.00 $ 260,000.00 $ 21,604.75 $ 281,604.75 $ 281,604.75 City of Gilroy Program
Administration
Staff time and consultant time for administration and
management of the CDBG program $ -
Program
admin funded
with formula
funds only
$ 80,000.00 $ 80,000.00
Subtotal $ 80,000.00 $ 80,000.00 $ 80,000.00
Total $ 795,520.89 $ 421,604.75 $ 421,604.75
i. Equal Distribution Option – Fund all applications equally (Public Service and Non-Public Service in separate categories) ii. Evaluation-Based Option – Fund all applications based on their evaluation (Public Service and Non-Public Service in separate categories) Eligible Uses
Funding Amount
Public Service
(15% Cap)
Non-Public
Service
Program
Administration
(20% Cap)
PY 2026-2027 Formula Funds (Estimate) $ 400,000.00 $ 60,000.00 $ 260,000.00 $ 80,000.00 Prior Years' Resources $ 21,604.75 -- $ 21,604.75 --
PY 2026-2027 Total (Estimate) $ 421,604.75 $ 60,000.00 $ 281,604.75 $ 80,000.00 Program
Admin Category
PY 2026-2027 Allocation
Public Service Non-Public Service
Non-public service funded with
formula funds and prior years'
resources

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City of Gilroy
DRAFT Annual Action Plan
For the Second Year of the Five-Year Consolidated Plan
Program Year (PY) 2026 - 2027
(July 1, 2026 – June 30, 2027)
Community Development Department
Housing and Community Services
7351 Rosanna Street
Gilroy, CA 95020

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City of Gilroy
Annual Action Plan
2026
1 OMB Control No: 2506-0117 (exp. 09/30/2021)
Executive Summary
AP-05 Executive Summary - 91.200(c), 91.220(b)

1. Introduction
The City of Gilroy (City) receives Community Development Block Grant (CDBG) funds each year from the U.S. Department of Housing and Urban Development (HUD) for housing, economic development, and community development activities. These funds are intended to meet priority needs locally identified by the City that primarily benefit persons with extremely low-, very low-, and low-incomes (incomes of 80 percent or less of area median income).

To receive federal funds, every five years, the City must submit a five-year strategic plan to HUD —the Consolidated Plan (Con Plan), as well as an Annual Action Plan (AAP) for each program year that identifies local needs, and how these needs will be addressed. The AAP must also demonstrate how the City will meet national goals set by the U.S. Congress to develop viable communities by providing decent housing, a suitable living environment, and economic opportunities.

The Con Plan and each AAP embody and reflect three overall goals, which relate to the major commitments and priorities of HUD, including:
• To provide decent housing by preserving the affordable housing stock, increasing the availability of affordable housing, reducing discriminatory barriers, increasing the supply of supportive housing for those with special needs, and transitioning homeless persons and families into housing.
• To provide a suitable living environment through safer, more livable neighborhoods, greater integration of lower-income residents, increased housing opportunities, and reinvestment in deteriorating neighborhoods.
• To expand economic opportunities, through more jobs paying self-sufficiency wages, homeownership opportunities, development activities that promote long-term community viability, and the empowerment of lower-income persons to achieve self-sufficiency.

The Program Year (PY) 2026-2027 AAP marks the second year of the five-year Con Plan period, which runs from 2025-2030. The AAP describes to the public and HUD how the City will specifically utilize CDBG funds in the coming program year (July 1, 2026 - June 30, 2027). A complete listing of specific projects/programs that will receive funding can be found in section AP-35 of this document.

Any minor changes (i.e. typos, minor edits, changes that do not affect the essence of the document) to this Plan will be completed through a minor amendment process that will not require further citizen

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Annual Action Plan
2026
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participation or City Council approval. Substantial amendments (i.e. funding changes, re-allocation of project monies, etc.) will follow the City’s Citizen Participation Plan (CPP), and require a public hearing and Council approval.

2. Summarize the objectives and outcomes identified in the Plan This could be a restatement of items, or a table listed elsewhere in the plan or a reference to another location. It may also contain any essential items from the housing and homeless needs assessment, the housing market analysis or the strategic plan.

HUD has established a set of outcomes and objectives that entitlement jurisdictions need to address.

The outcomes and objectives are noted within each of the Goals included in the Strategic Plan (SP-45) section of the Con Plan. In summary, they are as follows:

Outcomes: Availability/Accessibility; Affordability; Sustainability Objectives: Create Suitable Living Environments; Provide Decent Affordable Housing; Create Economic Opportunities
The goals identified in this AAP are taken from the Con Plan’s Strategic Plan which describes how federal funds and other resources will be deployed and what other actions will be taken to address community development and affordable housing needs over the next five years. The following goals were made available in the Notice of Funding Availability (NOFA) published by the City on January 30, 2026.

Support and Preserve Affordable Housing
Prevent and Reduce Homelessness
Increase Supportive/Public Services for Special Populations Invest in Community Development and Neighborhood Revitalization

3. Evaluation of past performance
This is an evaluation of past performance that helped lead the grantee to choose its goals or projects.

During Program Year 2024-2025, year five of the 2020-2025 Con Plan, the City successfully expended its allocation, with a total of $488,799.76 in CDBG funds requested for payment/drawn down from HUD. Every year, the City reports, in detail, on its CDBG performance in the Consolidated Annual

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Annual Action Plan
2026
3 OMB Control No: 2506-0117 (exp. 09/30/2021)
Performance and Evaluation Report (CAPER) which is due to HUD within 90 days upon completion of the program year.

The City utilized CDBG funds for public service activities provided by the following subrecipients/programs in PY 2024-2025:
- Community Agency for Resources, Advocacy and Services (C.A.R.A.S.): RYSE UP II (Reaching our Young people to Succeed and Empower with Unlimited Potential) Program - Live Oak Adult Day Services: Adult Day Care Program
- Project Sentinel: Tenant-Landlord Counseling and Dispute Resolution Program - Sourcewise: Transit Services Program
- The Health Trust: Meals on Wheels Program Program
- South County Compassion Center: Outreach for the Unhoused Program Public service funds are always highly sought after; City staff went through a rigorous application review process to evaluate applications submitted in response to the NOFA. All organizations were able to fully expend their Gilroy grant allocations within PY 2024-2025, except for CARAS, which had a remaining balance of $18.89. A total of $58,421.24 in public service funds were spent, which was 15% of the allocation amount, and met the 15% public service cap.

The City also utilized CDBG funds for its rehabilitation activity provided by the following subrecipient/program:
-Rebuilding Together Silicon Valley: Repair and Accessibility Modification Program for Low-Income Homeowners. The Program aimed to address health/safety issues, code corrections, and accessibility issues.

The Program addressed health, and safety, accessibility, and code corrections issues citywide. A total of $179,942.32 was spent on the housing rehabilitation program, which provided assistance to 15 unique households.

On May 7, 2025, during Affordable Housing Month, the City of Gilroy and Rebuilding Together Silicon Valley provided a bilingual English and Spanish workshop at the Gilroy Senior Center on the free home safety repairs and modifications available through their CDBG funded program.

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2026
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Lastly, the City invested $172,516 in CDBG funds for a safety enhancement project that designed and constructed curb ramps, improving accessibility throughout several primarily low to moderate-income neighborhoods. The project was successfully completed on time and came in $7,427.33 under the budgeted amount of $179,943.33.

Another regulatory limitation on the use of CDBG funds is that no more than 20 percent of each program year’s grant allocation may be used for planning and administrative costs. The City has remained in compliance with this requirement since 2016.

The City utilized $56,432.73 in program administration funding to administer its CDBG program and $21,487.47 in program administration funding to fund the following program:
-Project Sentinel Fair Housing
The total amount of program administration funding was $77,920.20, which was 20% of the allocation amount, and met the 20% program administration cap.

The City continues to meet HUD’s timeliness requirement each May by maintaining a balance of less than 1.5 times its annual CDBG grant amount in HUD’s Line of Credit Control System (LOCCS).

4. Summary of Citizen Participation Process and consultation process Summary from citizen participation section of plan.

The City followed the requirements for citizen participation outlined in the City of Gilroy CPP. To facilitate this process, the City releases a NOFA for each funding cycle that allows interested parties to directly apply for these funds. The NOFA for PY 2026-2027 was published on January 30, 2026, and emailed to local organizations, nonprofits, and City departments that may be interested in applying for CDBG funds for the upcoming program year (July 1, 2026 – June 30, 2027). The following is a list of key components implemented to ensure the highest citizen participation was captured during the development of this plan:
• Public Notices in English and Spanish were published in the Gilroy Dispatch newspaper, on the City’s website Newsflash, CDBG webpage, city hall, library, and social media postings on January 30, 2026, noting the NOFA and CAPER results, virtual public hearing date, and application packet release date. This notice was also directly distributed to the following organizations: the South County Collaborative, South County Youth Task Force, Nueva Vida Community, organizations on the interest list, and every currently funded CDBG organization. • The application packet was released on the City’s CDBG webpage on February 6, 2026

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• The Public Hearing was held on February 17, 2026, at staff level, to review NOFA, provide overview of prior year CDBG Program accomplishments, answer questions from the general public, and receive public comments.
• The 30-day public comment period for the draft AAP and draft CPP was held from March 13, 2026 – April 13, 2026.
• The Public Meeting was held at City Council meeting on April 6, 2026, to review potential grant funding allocation options to be included in the AAP.
• A Public Hearing will be held at City Council meeting, on May 4, 2026, to review the draft AAP, including grant allocations, and the draft CPP, and to accept any public comments prior to adoption of both Plan approvals.

5. Summary of public comments
This could be a brief narrative summary or reference an attached document from the Citizen Participation section of the Con Plan.

TBD

6. Summary of comments or views not accepted and the reasons for not accepting them TBD

7. Summary
See above

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2026
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PR-05 Lead & Responsible Agencies - 91.200(b)

1. Agency/entity responsible for preparing/administering the Consolidated Plan The following are the agencies/entities responsible for preparing the Con Plan and those responsible for administration of each grant program and funding source.

Agency Role Name Department/Agency
CDBG Administrator GILROY Community Development Department Table 1 – Responsible Agencies
Narrative
The City of Gilroy (City is the lead and responsible agency for the United States Department of Housing and Urban Development’s (HUD) entitlement programs in Gilroy. The Community Development Department (CDD) is responsible for administering the City’s CDBG program.

Entitlement jurisdictions receive entitlement funding (i.e., non-competitive, formula funds) from HUD. By federal law, the City is required to submit a five-year Con Plan and AAP to HUD listing priorities and strategies for the use of its federal funds.

The PY 2026-2027 AAP marks the second program year of the City's 5-year 2025-2030 Con Plan.

Con Plan Public Contact Information
Sharon Goei, Community Development Director
7351 Rosanna Street
Gilroy, CA 95020
408.846.0467
[email protected]

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2026
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AP-10 Consultation – 24 CFR 91.100, 91.200(b), 91.215(l)

1. Introduction
The Con Plan outreach effort is a regional collaborative effort between the County of Santa Clara and seven entitlement jurisdiction cities.

Community engagement is key for helping the County and cities to identify needs, priorities, goals, strategies, and activities for future housing and community development activities over the period of the five-year regional plan. Engagement activities included a community survey, public outreach, stakeholder consultations (or meetings), focus groups, and pop-up events.

As a part of the stakeholder consultation process, the City consulted with a variety of stakeholders, including City departments, human service agencies, local and regional community-based organizations, housing providers and advocates, and the Santa Clara County Housing Authority (SCCHA). Social service providers were also consulted, including those that provide services to the elderly, persons with disabilities, unhoused persons, and other lower-income individuals and at-risk populations.

Provide a concise summary of the jurisdiction’s activities to enhance coordination between public and assisted housing providers and private and governmental health, mental health and service agencies (91.215(l)).

The City worked in coordination with many agencies, boards, and governmental entities, with the intent of enhancing access to services, learning best practices of activities that would aid the City in developing strategies to meet established goals of providing decent and affordable housing, providing a suitable living environment, and expanding economic opportunities. The City’s citizen participation efforts included the following efforts during the preparation of the Cond Plan and AAP:
• CDBG/Housing Regional Coordinators Meetings – City staff and staff from the other CDBG entitlement cities in Santa Clara County, the County of Santa Clara Office of Supportive Housing, and the SCCHA participate. Meetings discuss data resources and strive to coordinate requests for information to both public and private countywide agencies. HUD staff meets with this group to clarify issues and assist in providing ongoing programmatic technical information. The email listserv for this group enables members to share information and provide technical assistance to one another, thus promoting and creating an environment of cooperation and understanding of differing needs, concerns, and issues among the group. This expansion of knowledge of regional issues and sharing of information benefits each individual jurisdiction represented in the group.

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• South County Collaborative – City staff partners with the collaborative, which consists of providers of services to low-income and special needs residents of Gilroy, San Martin, and Morgan Hill. Collaborative members share information through an active listserv and receive notices of public comment periods on the AAP and CAPER, CPP, Con Plan, public hearings, and substantial amendments.
• Unhoused Service Providers Network (USPN) – Monthly meetings are hosted by City staff, that include representatives from the Gilroy Police Department, Quality-of Life Officer Team, staff from County of Santa Clara, staff from various nonprofit agencies and shelter providers, health workers, the Santa Clara Valley Water District, and faith-based organizations. The focus is to increase collaboration and partnership among the service providers and the City, to connect the unhoused with services. The sharing of information also has as a goal of coordinating resources and services for unhoused clients.
• A Community Plan Implementation Team, which includes members of the Continuum of Care (CoC) and other community stakeholders, meets quarterly to evaluate progress toward the Community’s Plan to End Homelessness.
• CoC Participation – Meets monthly with a group comprising governmental agencies, homeless service and shelter providers, homeless persons, housing advocates, affordable housing developers, and various private parties, including businesses and foundations, to identify gaps in homeless services, establish funding priorities, and pursue a systematic approach to addressing homelessness.
• During the development of its Plans and as a general practice, the City coordinated with a variety of housing agencies, public and mental health agencies, and service providers to discuss community needs. These discussions provided an opportunity for these entities to network and learn more about one another’s services and programs.

Describe coordination with the Continuum of Care and efforts to address the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans, and unaccompanied youth) and persons at risk of homelessness.

The Santa Clara County Office of Supportive Housing (OSH) is the administrator of the regional CoC. The City continuously coordinates with the CoC in its efforts to end and prevent homelessness in the city and county. CoC is a group comprised of countywide stakeholders, including governmental agencies, homeless service and shelter providers, persons experiencing homelessness, housing advocates, affordable housing developers, and various private parties, including businesses and foundations.

Regional efforts of the CoC include the development of the Community Plan to End Homelessness, which identifies strategies to address the needs of persons experiencing homelessness in the county, including individuals experiencing long-term/chronic homelessness and families, families with children, veterans, and unaccompanied youth. The plan also addresses the needs of people experiencing housing

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2026
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instability. The CoC is collaborating with all Santa Clara County cities to update a new plan for the next five years. Gilroy staff has participated in monthly coordination and data sharing meetings.

Service providers and organizations that provide services to persons experiencing homelessness and persons experiencing housing instability were also contacted by the City to attend most recent Con Plan engagement meetings. This included Destination Home, the policy group who works on housing stabilization and permanent housing solutions; and Eden Housing, a nonprofit affordable housing developer and operator that provides permanent supportive housing in the city.

Describe consultation with the Continuum(s) of Care that serves the jurisdiction’s area in determining how to allocate ESG funds, develop performance standards for and evaluate outcomes of projects and activities assisted by ESG funds, and develop funding, policies and procedures for the operation and administration of HMIS The City is not an Emergency Solutions Grant (ESG) entitlement jurisdiction and therefore does not receive ESG funds. However, the City does administer federal grant programs that aid unhoused and low-income families in Santa Clara County. The City also helps conduct the Point-in-Time (PIT) count; the biennial regional collaborative effort to count and survey persons experiencing homelessness. The latest count and survey were conducted in January of 2025. The data from the PIT count is used to plan, fund, and implement actions for reducing chronic homelessness and circumstances that bring about homelessness.

The CoC takes the role of Homeless Management Information System (HMIS) administration. The County, and its consultant Bitfocus, work jointly to operate and oversee HMIS. Both software and HMIS system administration are now provided by Bitfocus. Funding for HMIS in Santa Clara County comes from HUD, the County of Santa Clara, and the City of San Jose. The County’s HMIS is used by many city service providers across the region to record information and report outcomes. The software meets and exceeds HUD’s requirements for the implementation and compliance of HMIS Standards. The project has a rich array of service provider participation and is utilized to capture information and report on special programming, such as Housing 1000, the County VTA free bus pass program, and prevention service delivery.

The City partners and the entire county use the HMIS system to support housing availability alongside the coordinated entry system to support transitional, shelter, as well as permanent housing needs. In Santa Clara County’s coordinated entry system, all unhoused people complete a standard assessment tool (the Vulnerability Index-Service Prioritization Decision Assistance Tool or VI-SPDAT) that considers the individual’s situation and identifies the best type of housing intervention to address their situation.

A community queue of eligible households is generated from the standard assessment. The community queue is used to fill spaces in the permanent housing programs, including permanent supportive

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2026
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housing, and rapid rehousing, in the county. This coordinated process reduces the need for people to traverse the county seeking assistance from every service provider separately.

2. Agencies, groups, organizations and others who participated in the process and consultations

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Table 2 – Agencies, groups, organizations who participated 1 Agency/Group/Organization Santa Clara County County Office of Supportive Housing (OSH) Agency/Group/Organization Type Other Government - County What section of the Plan was addressed by
Consultation?
Needs Assessment
Homeless Strategy
Housing Needs
Briefly describe how the
Agency/Group/Organization was consulted. What
are the anticipated outcomes of the consultation or
areas for improved coordination?
The City continues to utilize the OSH as a partner in addressing the needs of the City.
2 Agency/Group/Organization Project Sentinel
Agency/Group/Organization Type Service-Fair Housing
What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Briefly describe how the
Agency/Group/Organization was consulted. What
are the anticipated outcomes of the consultation or
areas for improved coordination?
Participated in the NOFA process - may work as a subrecipient. 3 Agency/Group/Organization Sourcewise
Agency/Group/Organization Type Services-Elderly Persons Services-Persons with Disabilities
What section of the Plan was addressed by
Consultation?
Anti-poverty Strategy

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Briefly describe how the
Agency/Group/Organization was consulted. What
are the anticipated outcomes of the consultation or
areas for improved coordination?
Participated in the NOFA process - may work as a subrecipient. 6 Agency/Group/Organization Silicon Valley Independent Living Center Agency/Group/Organization Type Services-Persons with Disabilities Services-Health
What section of the Plan was addressed by
Consultation?
Anti-poverty Strategy
Briefly describe how the
Agency/Group/Organization was consulted. What
are the anticipated outcomes of the consultation or
areas for improved coordination?
Participated in the NOFA process - may work as a subrecipient. 7 Agency/Group/Organization Rebuilding Together Silicon Valley Agency/Group/Organization Type Housing
What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Anti-poverty Strategy
Briefly describe how the
Agency/Group/Organization was consulted. What
are the anticipated outcomes of the consultation or
areas for improved coordination?
Participated in the NOFA process- may work as a subrecipient.

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2026
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8 Agency/Group/Organization Bay Area Community Health
Agency/Group/Organization Type Services-Health
Health Agency
Regional Organization
Services-Elderly Persons
Services-Persons with Disabilities
What section of the Plan was addressed by
Consultation? Non-Homeless Special Nees
Briefly describe how the
Agency/Group/Organization was consulted. What
are the anticipated outcomes of the consultation or
areas for improved coordination?
Participated in NOFA process - may work as a subrecipient. 9 Agency/Group/Organization City of Gilroy
Agency/Group/Organization Type Other government - Local Grantee Public Works Department
What section of the Plan was addressed by
Consultation?
Non-Homeless Special Needs
Services-Persons with Disabilities
Briefly describe how the
Agency/Group/Organization was consulted. What
are the anticipated outcomes of the consultation or
areas for improved coordination?
Participated in the NOFA Process - may work as a subrecipient. 10 Agency/Group/Organization South County Collaborative Agency/Group/Organization Type Local Service Provider Organization Group

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What section of the Plan was addressed by
Consultation?
Needs Assessment
Briefly describe how the
Agency/Group/Organization was consulted. What
are the anticipated outcomes of the consultation or
areas for improved coordination?
Participated in monthly south county service provider meetings on topics affecting low-income residents and receive feedback on community needs. Announce CDBG related public comment periods/meetings/public hearings at in-person meetings and through the listserv.
11 Agency/Group/Organization Unhoused Service Providers Network (USPN) Agency/Group/Organization Type Local Service Provider Organization Group What section of the Plan was addressed by
Consultation?
Needs Assessment
Briefly describe how the
Agency/Group/Organization was consulted. What
are the anticipated outcomes of the consultation or
areas for improved coordination?
Participated in monthly virtual south county USPN meetings hosted by the City Staff to discuss local resources for persons experiencing homelessness in Gilroy and receive feedback from providers on the challenges impacting the provision of services. Announce CDBG related public comment periods/meetings/public hearings at in-person meetings and through the listserv. 12 Agency/Group/Organization Housing CDBG Coordinators’ Meeting Agency/Group/Organization Type Santa Clara County Regional jurisdictional monthly CDBG Coordinators Meeting What section of the Plan was addressed by
Consultation?
Needs Assessment
Homeless Strategy
Briefly describe how the
Agency/Group/Organization was consulted. What
are the anticipated outcomes of the consultation or
areas for improved coordination?
Participated in monthly virtual meeting along with other Santa Clara County CDBG grant recipients to discuss all things CDBG, including the coordination of the Annual Action Plan and Consolidated Plan. In addition to CDBG coordination, OSH provides legislative, funding updates, and other program updates.

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Identify any Agency Types not consulted and provide rationale for not consulting Not applicable
Other local/regional/state/federal planning efforts considered when preparing the Plan Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan? Continuum of Care
Continuum of Care
Council
Identifies housing inventory count to facilitate the provision of housing services to those experiencing homelessness.

General Plan /
Housing Element City of Gilroy Determines physical conditions of housing that affect habitability. Identifies the number of affordable units that need to be allocated to households with different income levels.

Table 3 - Other local / regional / federal planning efforts Narrative
City, other entitlement jurisdictions, and the County, with assistance from consultants, worked to involve housing, social services, and other agencies in the community engagement process, including direct solicitation for these agencies to participate in the community survey, stakeholder meetings, and focus groups for the Con Plan, which drives subsequent Action Plans.

Stakeholder participants were asked questions and provided feedback on priorities, issues, and solutions in relation to CDBG-eligible activities such as housing, neighborhood revitalization, and low- to moderate-income household issues. They were asked about their top priorities, neighborhood revitalization, housing problems and their solutions, local organization support, families vulnerable to crisis, broadband internet issues, and how the jurisdiction should spend CDBG funding.

The responses were very helpful for the Needs Assessment and Strategic Plan of the Consolidated Plan, to analyze alongside data from the

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census and HUD, especially for topics pertaining to housing needs, the needs of those experiencing homelessness, services for housed individuals with disabilities, and community development needs.

In preparation for the PY 2026-2027 Annual Action Plan, City staff consulted with new grant applicants or returning applicants with a new program who were interested in applying for CDBG funding to discuss their proposed activity and whether it met a Gilroy priority need, HUD national objective, if it was an eligible CDBG activity, and to answer any grant related questions. The NOFA and CAPER results public hearing slide presentation was made available to the public on the City’s CDBG webpage www.cityofgilroy.org/cdbg In addition, City staff is continually assessing community needs through its monthly collaboration with the South County Collaborative, Unhoused Service Providers Network, Housing CDBG Coordinators’ meeting, as well as from quarterly programmatic information received from the CDBG grant recipients to ensure that the priority needs and goals identified in the 2025-2030 Consolidated Plan continue to accurately represent the needs of low-income Gilroy residents each program year.

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AP-12 Participation - 91.401, 91.105, 91.200(c)

1. Summary of citizen participation process/Efforts made to broaden citizen participation Summarize citizen participation process and how it impacted goal setting Outreach is essential to the City’s ability to create an accurate and effective plan, and to allocate resources appropriately. The City, in partnership with the County, made extensive efforts to solicit citizen participation during the Consolidated Plan process which in turn drives each year’s Annual Action Plan. Below is a summary of the steps taken for the Consolidated Plan, along with the efforts made for PY 2026-2027.

First, the City attempted to reach as many residents as possible, primarily low-income persons/families, disabled persons, elderly persons, and families with minor children. Receiving feedback directly from residents who may potentially receive assistance from grant funds is crucial for the CDBG program’s effectiveness. Second, the City reached out to practitioners, agencies, leaders, organizations, and companies who may have the specialized knowledge, experience, resources, and capacity to discuss needs, opportunities, solutions, investments, and how community improvements can be made. Third, the City encouraged all residents to weigh in on community needs and opportunities for improvements through resident participation opportunities.

The City offered several opportunities and various methods for participation and public comment throughout the development of the Consolidated Plan, the 2026 - 2027 Annual Action Plan (AAP) and the Citizen Participation Plan (CPP), including:

1. Regional Needs Survey

2. Pop-Up Events

3. Regional Forums

4. Focus Groups

5. Joint Community Meetings on Consolidated Plan Process and Assessment of Fair Housing

6. Stakeholder Consultations

7. Public Hearings and a Comment Period for Draft Documents for current AAP

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Citizen Participation Outreach
Sort Order Mode of Outreach Target of Outreach Summary of response/attendance
Summary of
comments received
Summary of comments
not accepted
and reasons
URL (If applicable)
1 Newspaper Ad
Non-targeted/broad
community
Publicly noticed in
the Gilroy Dispatch
on 1/30/26, emailed
to nonprofit
agencies, posted on
City website, social
media, city hall, and
library.

Application packet
available 2-6-26.
2-17-26 virtual public
hearing. 12 agencies
attended the public
hearing on the PY
2026-2027 NOFA and
PY 2024-2025 CAPER
results.

Agencies asked
questions related
to the NOFA. See
AP-05, section 5 for
a summary of the
public comment
received at public
hearing.

All questions were
welcomed, and one
comment was
accepted and noted.

Cityofgilroy.org/cdbg

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2026
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Sort Order Mode of Outreach Target of Outreach Summary of response/attendance
Summary of
comments received
Summary of comments
not accepted
and reasons
URL (If applicable)
2 Newspaper Ad
Non-English Speaking
- Specify other
language: Spanish
Publicly noticed in
the Gilroy Dispatch
on 1/30/26, emailed
to nonprofit
agencies, posted on
City website, social
media, city hall, and
library.

Application packet
available 2-6-26.
2-17-26 virtual public
hearing. 12 agencies
attended the public
hearing on the PY
2026-2027 NOFA and
PY 2024-2025 CAPER
results
Agencies asked
questions related
to the NOFA. See
AP-05, section 5 for
a summary of the
public comment
received at public
hearing.

All questions were
welcomed, and one
comment was
accepted and noted.

Cityofgilroy.org/cdbg

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2026
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Sort Order Mode of Outreach Target of Outreach Summary of response/attendance
Summary of
comments received
Summary of comments
not accepted
and reasons
URL (If applicable)
3 Virtual Public
Hearing
Non-targeted/broad
community
Publicly noticed in
the Gilroy Dispatch
on 1/30/26, emailed
to nonprofit
agencies, posted on
City website, social
media, city hall, and
library.

All questions were
welcomed, and one
comment was
accepted and noted.

Cityofgilroy.org/cdbg

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2026
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Sort Order Mode of Outreach Target of Outreach Summary of response/attendance
Summary of
comments received
Summary of comments
not accepted
and reasons
URL (If applicable)
4 Newspaper Ad
Non-targeted/broad
community
Publicly noticed the
following on 3/13/26,
in the Gilroy
Dispatch:

City Council Public
meeting 4/6/26, to
receive public
comments and
Council direction on
CDBG funding
allocations.

City Council public
hearing 5/4/26, to
announce 30-day
public comment
period from 3/13/26
to 4/13/26, for the
draft AAP, funding
allocations, and draft
Citizen Participation
Plan. Public
TBD TBD Cityofgilroy.org/cdbg

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2026
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Sort Order Mode of Outreach Target of Outreach Summary of response/attendance
Summary of
comments received
Summary of comments
not accepted
and reasons
URL (If applicable)
5 Newspaper Ad
Non-English Speaking
- Specify other
language: Spanish
Publicly noticed the
following on 3/13/26,
in the Gilroy
Dispatch:

City Council Public
meeting 4/6/26, to
receive public
comments and
Council direction on
CDBG funding
allocations.

City Council public
hearing 5/4/26, to
announce 30-day
public comment
period from 3/13/26
to 4/13/26, for the
draft AAP, funding
allocations, and draft
updated Citizen
Participation Plan.

TBD TBD Cityofgilroy.org/cdbg

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2026
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Sort Order Mode of Outreach Target of Outreach Summary of response/attendance
Summary of
comments received
Summary of comments
not accepted
and reasons
URL (If applicable)
6 Public Meeting
Non-targeted/broad
community/Language
interpretation via
Wordly.

Public meeting
4/6/26 to receive
direction from City
Council on CDBG
funding allocations
and public comment.

TBD TBD
7 Public Hearing
Non-targeted/broad
community/Language
interpretation via
Wordly.

Public hearing 5-4-26
to receive final input
on draft Citizen
Participation Plan,
funding allocations,
and the draft AAP, for
Council’s
consideration and
adoption.

TBD TBD
Table 4 – Citizen Participation Outreach

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2026
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Expected Resources
AP-15 Expected Resources - 91.420(b), 91.220(c)(1,2)
Introduction
For PY 2026-2027, the City of Gilroy anticipates CDBG funding as detailed below, including $906.74 in prior year resources from PY 2024-2025 and $21,211.01 from PY 2025-2026, to be reallocated to nonpublic service activities, minus a PY 2024-2025 $513 public works project expenditure that was originally considered as a prior year resource.

Anticipated Resources
Program Source
of
Funds
Uses of Funds Expected Amount Available Year 2 Expected Amount
Available
Remainder
of Con Plan
$
Narrative
Annual Description
Allocation:
$
Program
Income:
$
Prior Year
Resources:
$
Total:
$
CDBG public
-
federal
Acquisition
Admin and
Planning
Economic
Development
Housing
Public
Improvements
Public
Services 400,000.00 0.00 21,604.75 421,604.75 1,200,000.

Table 5 - Expected Resources – Priority Table
Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied HUD allocations are critical to overcoming barriers; however, they are not sufficient to address all the needs of LMI households. Therefore, the City will continue to leverage other funding sources, including Permanent Local Housing Allocation (PLHA) from the state of California, to provide services to populations in need.

If appropriate, describe publicly owned land or property located within the jurisdiction that

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2026
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may be used to address the needs identified in the plan The City’s 2023-2031 Housing Element identified two publicly owned property sites with potential for development:
• 8th and Alexander: The City is partnering with the Santa Clara County Office of Supportive Housing regarding the development of affordable housing at the publicly owned (County owned land) property at 8th and Alexander.
• 880 Sunrise Drive: This 1.98-acre site is partially occupied by a City of Gilroy fire station, with the remainder being vacant. The site is zoned PF (Park/Public Facilities District), which permits City or other governmental agency facilities. The realistic capacity for this site is 21 lowerincome units on the vacant land and parking lot portions, while retaining the fire station. This site is included in the RHNA sites inventory as an opportunity site and is publicly owned.

The City of Gilroy is actively considering and utilizing its publicly owned land for affordable housing development and is committed to complying with regulations regarding surplus lands. Currently the city is working with California Housing and Community Development to complete the process of declaring four properties as surplus sites. In May of 2025, city staff met with developers and discussed affordable housing opportunities, housing element goals, and opportunity sites. This meeting will continue annually.

Discussion

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2026
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Annual Goals and Objectives
AP-20 Annual Goals and Objectives - 91.420, 91.220(c)(3)&(e) Goals Summary Information
The funding allocations listed below are tentative pending City Council direction.

Table 6 – Goals Summary
Sort
Order
Goal Name Start
Year
End
Year
Category Geographic
Area
Needs
Addressed
Funding Goal Outcome
Indicator
1 Increase
Supportive/Public
Services for
Special
Populations
2026 2027 NonHomeless
Special Needs
Citywide Public
Services for
Vulnerable
Populations
CDBG:
$50,000.00
Public service
activities other
than
Low/Moderate
Income
Housing
Benefit:60
2 Invest in
Community
Development and
Neighborhood
Revitalization
2026 2027 Non-Housing
Community
Development
Citywide Community
Development
and Public
Facilities
CDBG:
$187,736.50
Public Facility
or
Infrastructure
Activities
other than
Low/Moderate
Income
Housing
Benefit - TBD
3 Support and
Preserve
Affordable
Housing
2026 2027 Affordable
Housing
Citywide Affordable
Housing
CDBG:
$93,868.25
Homeowner
Housing
Rehabilitated:
18 4 Prevent and
Reduce
Homelessness
2026 2027 Homelessness Citywide Homelessness
Response and
Prevention
CDBG:
10,000.00
25

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2026
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Goal Descriptions
1 Goal Name Support and Preserve Affordable Housing
Goal
Description
- Permanent affordable rental housing with services
- Home rehabilitation for lower-income residents for safety and accessibility improvements
2 Goal Name Prevent and Reduce Homelessness
Goal
Description
Homelessness
3 Goal Name Increase Supportive /Public Services for Special Populations Goal
Description
- A resource/navigation center to connect people with resources, including migrant/agricultural/seasonal workers
- Youth activities, especially out of school time (after school, summer) - More staffing for consistent programming and resources at the senior center - Affordable childcare
- Mental health services- Services for foster youth, seniors, and people with disabilities
4 Goal Name Invest in Community Development and Neighborhood Revitalization Goal
Description
Public Facility or Infrastructure Activities other than Low/Moderate Income Housing Benefit will occur in a LMI qualifying area.

AP-35 Projects - 91.420, 91.220(d)
Introduction
For PY 2026-2027, the City expects to be allocated $400,000 in CDBG entitlement funds.

PY 2026-2027 will be a one-year funding cycle for the proposed activities and represents the second year of the City’s 2025-2030 Consolidated Plan.
# Project Name
1 Public Services- Peer to Peer Support for Unhoused Residents 2 Public Services- Fair Housing
3 Public Services- Young Mothers Support Services
4 Public Services- Transit Services
5 Public Services- Housing and Emergency Services for Persons with Disabilities

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2026
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# Project Name
6 Public Services- Tenant-Landlord Services
7 Housing Rehabilitation and Accessibility Modification 8 Gilroy Clinic Improvements Expanding Access for the Elderly 9 Sidewalk Improvements
Table 7 – Project Information
Describe the reasons for allocation priorities and any obstacles to addressing underserved needs
One of the greatest challenges in meeting the underserved needs of low- and moderate-income persons is having limited financial resources. Public service funds are always in high demand, but with limited funding, it is difficult to fund these programs to their fullest potential while staying within HUD parameters. The City continues to utilize its CDBG funding to the greatest extent possible to serve as many underserved needs as they are able in each program year.

Allocation priorities are determined based on the needs identified by analyzing data from HUD, American Community Survey, and other sources and soliciting feedback from community members and local stakeholders. The City awards CDBG funds to organizations to provide public services and housing for low-income and special needs households, as well as for public facilities and improvements that will primarily benefit low-income persons.

HUD requires that 70 percent of all CDBG funds be spent on activities benefiting low- and moderateincome (LMI) persons, with incomes at or below 80% of the AMI, adjusted for household size.

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2026
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AP-38 Project Summary
Project Summary Information
The funding allocations listed below are tentative pending City Council direction.

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2026
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1 Project Name Public Services- Peer to Peer Support for Unhoused Residents Target Area Citywide
Goals Supported Prevent and Reduce Homelessness
Needs Addressed Homelessness
Funding CDBG: $10,000.00
Description Carry the Vision’s Peer to Peer Support for Unhoused Residents Program will provide a lived experience, peer led public service initiative focused on stabilization and consistent engagement with individuals experiencing homelessness in Gilroy, through ongoing relationship-based outreach that strengthens trust, reduces isolation, and supports emotional and day-to-day stability. HUD Matrix Code: 03T / National Objective: LMC (presumed benefit)
Target Date 6/30/2027
Estimate the number and type
of families that will benefit
from the proposed activities
25 persons experiencing homelessness will receive support from peers.

Location Description 7365 Montrey Rd., Ste. 203
Gilroy, CA 95020
Planned Activities The Peer-to-Peer Support for Unhoused Residents Program will work with individuals experiencing homelessness in collaboration with local outreach teams, service providers, Quality of Life Officers, City staff and community partners to complement existing homelessness response efforts and strengthen coordination in Gilroy, resulting in increased stabilization, trust, and consistent engagement. 2 Project Name Public Services- Fair Housing
Target Area Citywide
Goals Supported Support and Preserve Affordable Housing Increase Supportive/Public Services for Special Populations Needs Addressed Affordable Housing

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2026
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Funding CDBG: $10,000.00
Description Project Sentinel’s Fair Housing Program will address illegal housing discrimination by investigating complaints, administering audits, conducting community outreach and education, and pursuing appropriate remedies when federal and state fair housing laws are violated. HUD Matrix Code: 05J / National Objective: LMC (income verification required)
Target Date 6/30/2027
Estimate the number and type
of families that will benefit
from the proposed activities
Low/mod income households will receive fair housing services Location Description 8339 Church St., Ste. 104
Gilroy, CA 95020
Planned Activities The Fair Housing Program will address illegal housing discrimination by investigating complaints, administering audits, conducting community outreach and education, and pursuing appropriate remedies when federal and state fair housing laws are violated. 3 Project Name Public Services- Young Mothers Support Services Target Area Citywide
Goals Supported Increase Services for Special Populations Needs Addressed Supportive Services
Funding CDBG: $10,000.00
Description Shine Together’s Young Mother’s Support Services Program will provide educational navigation and advocacy, parenting education, and social-emotional learning to 10 young Gilroy mothers and their children at San Ysidro Park. The program began in Gilroy in 2025 to address the growing unmet need in south county. HUD Matrix Code: 05D / National Objective: LMC Target Date 6/30/2027

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2026
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Estimate the number and type
of families that will benefit
from the proposed activities
10 low-income mothers and their children
Location Description San Ysidro Park
7700 Murray Ave.

Gilroy, CA 95020
Planned Activities The Young Mothers Support Services Program will provide young low-income mothers between the ages of 13-25 with expanded access to education, essential resources, and supportive relationships to families facing poverty, school disruption, housing instability, and mental health stress, in collaboration with South County Heals, South County Youth Task Force, and the Neighborhood Safety Unit. 4 Project Name Public Services- Transit Services
Target Area Citywide
Goals Supported Increase Services for Special Populations Needs Addressed Supportive Services
Funding CDBG: $10,000.00
Description Sourcewise’s Transit Services Program will provide timely, free transit rides to 20 low-income 60+ and/or disabled adults to local medical/dental appointments, pharmacies, grocery stores, and to socialize at the Senior Center. HUD Matrix Code: 05E / National Objective: LMC (presumed benefit) Target Date 6/30/2027
Estimate the number and type
of families that will benefit
from the proposed activities
20 low/mod income Gilroy residents
Location Description 16340 Montrey Rd.

Morgan Hill, CA 95037
Planned Activities The Transit Services Program will provide free transit rides to Gilroy seniors and/or disabled adults to local medical appointments, pharmacies, grocery stores, and to socialize at the Senior Center.

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2026
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5 Project Name Public Services- Housing and Emergency Services for Persons with Disabilities Target Area Citywide
Goals Supported Increase Services for Special Populations and Prevent and Reduce Homelessness Needs Addressed Supportive Services
Funding CDBG: $10,000.00
Description Silicon Valley Independent Living Center’s Housing and Emergency Services for Persons with Disabilities Program will provide counseling, support and assistance to low-income Gilroy residents who have a disability or chronic health condition to assist in their transition from homelessness, health care facilities, or unstable or temporary housing into permanent, affordable, accessible, integrated housing.

HUD Matrix Code: 05X / National Objective: LMC (presumed benefit and persons requiring income verification)
Target Date 6/30/2027
Estimate the number and type
of families that will benefit
from the proposed activities
60 low-income Gilroy residents with disabilities.

Location Description 7881 Church St., Ste. C
Gilroy, CA 95020
Planned Activities The Housing and Emergency Services for Persons with Disabilities Program will serve Gilroy residents with disabilities or a chronic health condition in their transition from homelessness, health care facilities, or unstable or temporary housing into permanent affordable, accessible, integrated housing, and will provide emergency housing assistance, as funding is available, including security deposits and first month’s rent, assistive technology information & referral, home accessibility modification referrals, supplemental food, and referrals to organizations that provide assistance to ensure long-term sustainability of their independent living environment.

Project Name Public Services- Tenant-Landlord Services

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Annual Action Plan
2026
34 OMB Control No: 2506-0117 (exp. 09/30/2021)
6 Target Area Citywide
Goals Supported Support and Preserve Affordable Housing and Increase Supportive/Public Services for Special Populations
Needs Addressed Supportive Services
Funding CDBG: $10,000.00
Description Project Sentinel’s Tenant-Landlord Services Program will provide tenant-landlord counseling services to Gilroy residents to prevent eviction and housing instability through information and referral, case management, dispute resolution through conciliation or mediation, and community education. HUD Matrix Code: 05K / National Objective: LMC (income verification required) Target Date 6/30/2027
Estimate the number and type
of families that will benefit
from the proposed activities
20 low/mod income individuals
Location Description 8339 Church St., Ste. 104
Gilroy, CA 95020
Planned Activities The Tenant-Landlord Services Program will provide counseling services to prevent eviction and housing instability, including information and referral, case management, dispute resolution through conciliation or mediation, and community education. Staff will educate tenants and housing providers on their rights and responsibilities and assists in resolving disputes related to terminations, rent increases, habitability, deposits, and other rental concerns. 7 Project Name Housing Rehabilitation and Accessibility Modification Target Area Citywide
Goals Supported Support and Preserve Affordable Housing Needs Addressed Affordable Housing
Funding CDBG: $93,868.25

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Annual Action Plan
2026
35 OMB Control No: 2506-0117 (exp. 09/30/2021)
Description Rebuilding Together Silicon Valley’s Housing Rehabilitation and Accessibility Modification Program will provide low-income homeowners with free critical health and safety repairs, accessibility improvements, and limited rehabilitation for mobile homes, condominiums, and single-family homes to address urgent needs and help the beneficiaries safely age in place. HUD Matrix Code: 14A / National Objective: LMH
Target Date 6/30/2027
Estimate the number and type
of families that will benefit
from the proposed activities
18 low/mod households
Location Description 1701 S. 7th St.#10
San Jose, CA 95112-6000
Planned Activities The Housing Rehabilitation and Accessibility Modification Program will provide low-income homeowners with free critical health and safety repairs, accessibility improvements, and limited rehabilitation for mobile homes, condominiums, and single-family homes to address urgent needs.

Examples of proposed work include improvements such as grab bars and ramps, limited rehabilitation for mobile homes, condos, and single-family homes. These repairs address housing instability, prevent displacement and enable older adults and individuals with disabilities to safely age in place. Their team has over 21 years of experience administering publicly funded home repair programs across Santa Clara County, securing 26.3 million in CDBG funding and completing more than 5,900 projects, and has established systems for eligibility verification, construction management, contractor oversight, and compliance reporting to ensure timely and responsible use of funds. 8 Project Name Gilroy Clinic Improvements Expanding Access for the Elderly Target Area Citywide
Goals Supported Invest in Community Development and Neighborhood Revitalization Needs Addressed Community Development and Public Improvements Funding CDBG: $93,868.25

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Annual Action Plan
2026
36 OMB Control No: 2506-0117 (exp. 09/30/2021)
Description Bay Area Community Health’s (BACH) Gilroy Clinic Improvements Expanding Access for the Elderly Project will utilize CDBG funding to build out its Gilroy Clinic into a Program of All-Inclusive Care for the Elderly (PACE) Center, expanding access to supportive services for low-income older adults, enabling those needing nursing-home-level care to remain in their communities, and can reduce hospital stays, improve quality of life, and lower mortality rates (AARP, 2023). None of the 3 current PACE locations in Santa Clara County are accessible to Gilroy residents. HUD Matrix Code: 03A Public Facilities/ National Objective: LMC
Target Date 6/30/2027
Estimate the number and type
of families that will benefit
from the proposed activities
120-150 low/mod income older adults 55+, once the center reaches full operating capacity.

Location Description 9460 No Name Uno
Gilroy, CA 95020
Planned Activities The Gilroy Clinic Improvements Expanding Access for the Elderly Project will utilize CDBG funding to build out its Gilroy Clinic into a Program of All-Inclusive Care for the Elderly (PACE) Center. This project will expand access for LMI older adults in Santa Clara County to supportive public services to overcome barriers to care isolation, cultural stigma, limited awareness of the importance of healthcare, lack of healthcare coverage, and inadequate transportation options. BACH has successfully implemented capital building projects across its clinics, including the purchase of two clinics, ADA compliant upgrades, HVAC and ventilation system installations, exam room and reception area renovations.

BACH has a demonstrated track record of success in managing CDBG grants, will maintain documented control of the build-out and is prepared to provide timely information to complete the required environmental review. The scope and timeline are consistent with CDBG requirements, and requested funds are proportional to the project’s overall cost, with other project funds already secured. 9 Project Name Sidewalk Improvements
Target Area Citywide
Goals Supported Invest in Community Development

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Annual Action Plan
2026
37 OMB Control No: 2506-0117 (exp. 09/30/2021)
Needs Addressed Community Development and Public Improvements Funding CDBG: $93,868.25
Description City of Gilroy Public Works’ Sidewalk Improvements Project provides much needed accessibility improvements at San Ysidro Park and downtown Gilroy on 7th Street, including ADA-compliant concrete path, curb ramps, sidewalk, curb, gutter, and other incidental items within two low-income census tracts, to meet accessibility compliance and create safe pedestrian pathways. HUD Matrix Code: 03L: Sidewalk Improvements / National Objective: LMA Target Date 6/30/2027
Estimate the number and type
of families that will benefit
from the proposed activities
3,452 low/mod income individuals
Location Description San Ysidro Park and downtown Gilroy on 7th Street Planned Activities The Sidewalk Improvements Project will provide much needed accessibility improvements at San Ysidro Park and downtown Gilroy on 7th Street, including ADA-compliant concrete path, curb ramps, sidewalk, curb, gutter, and other incidental items within two low-income census tracts (5126.03 and 5126.04), to meet the accessibility needs of the community by providing vital upgrades. The work includes the furnishing of all labor, materials, incidentals necessary to perform the design and construction of public improvements.
10 Project Name Program Administration
Target Area City Wide
Goals Supported Planning and Administration
Needs Addressed N/A
Funding CDBG: $80,000.00

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Annual Action Plan
2026
38 OMB Control No: 2506-0117 (exp. 09/30/2021)
Description CDBG Funds will be used to pay for staff time and consultant time related to the overall management and administration of the CDBG Program. HUD Matrix Code: 21A General Program Administration Target Date 6/30/2027
Estimate the number and type
of families that will benefit
from the proposed activities
N/A
Location Description N/A
Planned Activities CDBG Funds will be used to pay for staff time and consultant time related to the overall management and administration of the CDBG Program.

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Annual Action Plan
2026
39 OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-50 Geographic Distribution - 91.420, 91.220(f)
Description of the geographic areas of the entitlement (including areas of low-income and minority concentration) where assistance will be directed
The City will continue to utilize CDBG funding to support citywide efforts that primarily meet the needs of the low-income community through the funded non-public service and public service projects.

Geographic Distribution
Target Area Percentage of Funds
Citywide 100
Table 8 - Geographic Distribution
Rationale for the priorities for allocating investments geographically The city falls just under the citywide LMA (Low- and Moderate-Income Area) definition, with 51% of the population falling within the Low- and Moderate-Income category. All public services and housing activities will serve LMI persons, families, and households citywide.

Discussion
See above.

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Annual Action Plan
2026
40 OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-75 Barriers to affordable housing -91.420, 91.220(j) Introduction
The City is subject to the same barriers to affordable housing that exist across the Bay Area. These issues include the high cost of development, constraining the development of affordable housing units in favor of higher-end units, and the lack of developable land, which prevents housing development and increases the price of land.

Actions it planned to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment In its 2023 - 2031 Housing Element, the City of Gilroy identified goals, policies, and programs to remove or ameliorate barriers to affordable housing, including:

Goals and Policies:

Goal 1. Housing Production. Provide adequate residential sites to accommodate projected housing needs and encourage the production of a variety of housing types.
• Policy 1.1. The City shall encourage the provision of a variety of housing options for Gilroy residents. • Policy 1.2. The City shall strive to ensure adequate land is available at a range of densities to meet Gilroy’s existing and projected housing needs.
• Policy 1.3. The City shall encourage the provision of new affordable housing.

Goal 2. Removal of Government Constraints. Remove or reduce governmental constraints to the development, improvement, and maintenance of housing where feasible and legally permissible. • Policy 2.1. The City shall periodically review City regulations, ordinances, permitting processes, and residential fees to ensure that they do

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Annual Action Plan
2026
41 OMB Control No: 2506-0117 (exp. 09/30/2021)
not unreasonably constrain housing development and are consistent with state law. • Policy 2.2. The City shall continue to provide individuals with disabilities reasonable accommodation through flexibility in the application of land use or zoning when necessary to eliminate barriers to housing opportunities. • Policy 2.3. The City shall consider the development of single-room occupancy units, studio apartments, micro-units, and other similar unit types that are affordable to extremely low-income residents in higher-density areas of the city.

Programs updated with CY 2025 progress:
• Program A-2. Surplus Lands/Affordable Housing on City-Owned Sites. In Progress - Surplus lands are documented in the Annual Progress Report, which is presented to the City Council annually in March and subsequently provided to HCD annually on or before April 1st. City staff has submitted 4 properties to HCD that have been declared as surplus. • Program A-5. Revise Neighborhood District Policy. In Progress - The City is participating in the Santa Clara County Planning Collaborative’s Grand Nexus/Affordable Housing Study, which includes a Residential Feasibility Study, an Affordable Housing Analysis, a Residential Nexus Analysis (for small developments), and a Commercial Nexus Study and Feasibility Analysis. Upon completion of the study and implementation of prescribed affordable housing standards, the City will update the Neighborhood District policy to include relevant affordable housing standards adopted by the Council
• Program A-10. Facilitate Missing Middle/Middle Income Housing. Completed and Continuous - A Zoning Amendment implementing this program was adopted on June 3, 2024, Ordinance No. 2024-01. City staff members have been part of the Santa Clara County Planning Collaborative Missing Middle workgroup where cities have come together to share information and learn about opportunities for missing middle housing and to learn about the economics of missing middle housing. The City currently has two projects in the pipeline including a townhome development and an apartment complex, that may be an option for housing for middle income households. Accessory Dwelling Units are also a viable option for missing middle income households. Gilroy has permitted an average of 36 ADUs per year between 2023-2025. The Housing Trust Silicon Valley has a program for first time homebuyers called the "Homebuyer Empowerment Loan Program" (HELP) that missing middle income households can qualify for - links to this program can be found on the City’s Housing and Community Services "Homebuyer Assistance" webpage. The City recently prepared a list of all corners lots in R1 and R2 zones that are greater than 8,000 sq ft with single family homes that could be eligible for SB 9. Information is being mailed to the homeowners at each lot to make them aware of the opportunity. Additional information

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about these sites can be found on the City Senate Bill 9 webpage. • Program A-11. Inclusionary Housing Policy. In Progress - The City originally hired a consultant who conducted an Inclusionary Housing Feasibility Analysis and recommended that a policy for both ownership and rental projects be future-tested and planned for improved economic conditions in the future. The City pivoted and joined the Santa Clara County Planning Collaborative's Grand Nexus/Affordable Housing study, which will encompass a Residential Feasibility Study, an Inclusionary Analysis, a Residential Nexus Analysis (for small developments), and a Commercial Nexus Study and Feasibility Analysis. The Grand Nexus study will include an in-lieu fee component • Program A-12. Incentives Beyond Density Bonus State Law. In Progress - The City originally hired a consultant who conducted an Inclusionary Housing Feasibility Analysis and recommended that a policy for both ownership and rental projects be future-tested and planned for improved economic conditions in the future. The City pivoted and joined the Santa Clara County Planning Collaborative's Grand Nexus/Affordable Housing study, which will encompass a Residential Feasibility Study, an Inclusionary Analysis, a Residential Nexus Analysis (for small developments), and a Commercial Nexus Study and Feasibility Analysis. The Grand Nexus study will include an in-lieu fee component. The City has partnered with Santa Clara County Office of Supportive Housing and the Santa Clara County Housing Authority to move forward a 100% affordable housing project on a County-owned property that will focus on housing for agricultural workers, where the City has agreed to waive impact fees for this development. While this is not a standard City policy, it demonstrates the City's interest in supporting housing incentives for households with special housing needs.
• Program B-1. Residential Development Ordinance (RDO) Removal. In Progress – The RDO will be removed as part of the City's ongoing effort to implement the Housing Element through a comprehensive zoning ordinance update. Although the RDO has not been repealed from the code, SB 330 and SB 8 make the ordinance null and void. Additional information is available on the Senate Bill 330 (SB 330) webpage. • Program B-2. Zoning and General Plan Densities. In Progress – The City is in the process of preparing a comprehensive zoning ordinance update to implement the Housing Element. All submitted projects will continue to be processed in compliance with applicable State law, both prior to and following adoption of the code amendment.
• Program B-5. Permit Streamlining - In Progress – The City is preparing a comprehensive zoning ordinance update that includes streamlining the development processes for historic structures and districts. The Building Division website includes example residential permits in compliance with AB 2234. The City has implemented streamlined permitting for all SB 9 applications and follows the zoning ordinance for determining whether an addition on a historic site creates a significant impact requiring a discretionary review. • Program B-6. Objective Standards - In Progress - A draft zoning ordinance that includes objective development standards and findings of approval is in process. The City will also evaluate design guidelines per this program. Affordable housing project objective standards will be

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updated upon adoption of an Affordable Housing Ordinance. The City has adopted Objective Design Standards for mixed-use residential and multi-family residential projects.
• Program B-7. Zoning Ordinance Update. In Progress - The zoning amendment adopted by the City Council on June 3, 2024 (Ordinance No. 2024-01) includes a requirement for the replacement of demolished units on the Sites Inventory and a clarification regarding FAR in mixed-use projects. The remaining items will be considered within the comprehensive zoning ordinance update. • Program B-8. Entitlement Road Webpage. Completed - Completed - Posted on City website • Program B-9. Building Department Webpage. Completed - The Building Division website was updated in 2023 to include example residential permits in compliance with AB 2234. The website includes plan submittal checklists (for application completeness), and example permits that received a final building permit approval. The example permits include accessory dwelling units, duplexes, multifamily / mixed-use projects, townhomes, custom single-family home, and single-family tract home. The website continues to be updated as required by new legislation or zoning updates.
• Program B-10. Zoning Code Annual Updates. In Progress - Continuous - The City updated the Accessory Dwelling Unit Ordinance in 2023 and 2025, created a webpage with a list of properties that can be approved ministerially pursuant to Government Code Section 65583.2, and will be completing a comprehensive update of the entire Zoning Ordinance to implement other Housing Element programs. • Program C-1. Monitoring of Units At Risk of Converting to Market Rate - Continuous - The City reviews affordable housing term expirations as part of its annual monitoring program. In 2025, the City collaborated with the County of Santa Clara Office of Supportive Housing to implement a Pilot Below-Market-Rate Preservation Program. During 2025, the City used a loan from the County to purchase a resale BMR senior home and resold to another low-income senior household. The City expects to process one City/County Pilot BMR Preservation program unit annually. The City is participating in the Santa Clara County Planning Collaborative comprehensive Grand Nexus/Affordable Housing Study, which will encompass a Residential Feasibility Study, an Affordable Housing Analysis, a Residential Nexus Analysis (focused on small developments), and a Commercial Nexus Study and Feasibility Analysis.

The Grand Nexus study will include an in-lieu fee component. • Program C-2. Housing Rehabilitation. Continuous - In FY 2022-23, Rebuilding Together Silicon Valley was awarded a CDBG grant for $140,000. In FY 2023-24, Rebuilding Together Silicon Valley was awarded a CDBG grant for $258,000. In FY 2024-25, Rebuilding Together was awarded a CDBG grant for $179,942.32. In FY 2025-26, Rebuilding Together was awarded a CDBG grant for $149,199.59. Program information is available on the City Block Grant Funds & Home Modification webpages. Annually, City staff and Rebuilding Together staff present the program at

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the Senior Center. The City will facilitate TEFRA hearings, as needed. • Program C-4. Resale Control on Owner Occupied Below Market -Rate Units. Continuous - Annually, the BMR Program Administrator conducts compliance monitoring for BMR portfolio homes. In 2024 and 2025, the City’s BMR Administrator and City staff conducted a community meeting to answer questions and explain resale restriction agreements to current homeowners. In 2024 and 2025, the City's BMR Program Administrator conducted a compliance certification via mail to confirm that residents were complying with their resale agreement and restrictions. The City BMR Administrator Gilroy webpage also offers over 20 different "how-to" and "info" videos about the program, along with monthly FAQ virtual meetings where homeowners can ask questions. City staff has collaborated with the Santa Clara County Office of Supportive Housing to create a Pilot BMR Preservation Program - see C-1 above.
• Program C-5 – Resale Control on Rental Below Market Rate Units. Continuous - For renter-occupied units in 100% affordable developments, the BMR Program Administrator sends information to property owners regarding resale restrictions outlined in their Regulatory, Loan, or Density Bonus Agreements and conducts an annual compliance audit. In 2025, the City BMR Administrator completed outreach and administered the annual re-certification procedures for 100% affordable housing developments to confirm compliance with City and other regulatory agreements. • Program C-6 – Identification and Preservation of At-Risk Units. Continuous - The City’s BMR Program Administrator continues to update the City’s inventory of BMR units. City staff have collaborated with the Santa Clara County Office of Supportive Housing to create a Pilot BMR Preservation Program (see C-1 above). This process provides an opportunity to purchase and to resell low-income BMR units to remain in the program for an additional 30 years. In 2025, one unit was purchased and resold to another low-income senior household. The low-income household utilized County and City down payment assistance to purchase the home. When units become available for resale, the new program will enable the City to purchase and maintain affordability for other low-income households. • Program D-2- Funding Sources to Assist Homeownership. Continuous - The City’s webpage provides information on homebuyer assistance, including the Santa Clara County Homebuyer Empowerment Loan Program (HELP), the California Housing Finance Agency (CalHFA) First Mortgage Programs and Down Payment Assistance Programs, and the CalHFA’s Accessory Dwelling Unit (ADU) Grant Program. In 2025, the City conducted workshops in English and Spanish with over 232 attendees to inform the community of these resources. The City has BEGIN and CalHome ReUse Down Payment Assistance loans available for low-income households and used BEGIN funds for down payment assistance on the Pilot BMR Preservation Program resale unit - see C-1 above. • Program D-4 – Pursue Funding for Affordable Housing. Continuous - Permanent Local Housing Allocation (PLHA) funding from the State through application and partnership with Santa Clara County is anticipated to occur in 2026. The City continues to receive annual CDBG funding and supports two 100% affordable developments with 0% interest rate CDBG loans, allowing them to refinance and rehabilitate the properties.

City staff will apply for Federal Housing Trust Fund funding, if available, in 2026. The City is participating in the Santa Clara County Planning

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Collaborative Grand Nexus/Affordable Housing Study, which may suggest housing in-lieu fees as part of a possible Affordable Housing Policy.

The Grand Nexus study will include an in-lieu fee component. See A-11 above. The City has been working in collaboration with the Santa Clara County Office of Supportive Housing and the Santa Clara County Housing Authority to plan the affordable housing development at 8th and Alexander Streets in Gilroy. See A-14 above. There is one 100% affordable housing development expected to have building permits issued in 2026 - this development will contain 94 units. City has provided all necessary documentation for funding and entered into a Density Bonus Agreement for the project. City staff directs developers to the City's opportunity sites and hosted a Developer Roundtable in May of 2025, with plans to host annually.
• Program E-1 – Priority Water and Sewer Service for Affordable Housing Developments - Continuous - This policy is currently in place and used in standard practice. The City has not identified a need to update the Policy. The City of Gilroy provides sewer and water services to all residents. The 2023-2031 Housing Element has been posted on the City’s website. The City’s water and sewer service website also provides information on the Low-Income Household Water Assistance Program. The City also promotes City funded rental and utility assistance available to low-income residents via monthly utility bills and Utility website. • Program E-5 - Incentivize M-Units. In Progress - A draft zoning ordinance amending regulations for efficiency units is under preparation and will be presented to the Planning Commission and City Council upon completion. In the meantime, all submitted projects are being processed in compliance with applicable State Law, both prior to and following adoption of the code amendment. • Program E-6 - Parking Requirements for Senior Housing. In Progress - The City will conduct a study to determine if updated senior parking standards should be included in the Zoning Ordinance update. The implementation status will be updated in future years in accordance with this program. Preliminary data has been collected by City staff, and this will be included in the comprehensive zoning code update. • Program E-10 – Development and Rehabilitation of Housing for Persons with Disabilities. In Progress - A Zoning Amendment including streamlining the permit process for residential care homes was adopted on June 3, 2024, Ordinance No. 2024-01. The modified reasonable accommodation findings will be part of the comprehensive zoning code update. • Program E-11 - Housing for Extremely Low Income and Special Needs Households. Continuous - The City received Permanent Local Housing Allocation (PLHA) funding from the State through application and partnership with Santa Clara County. The City will apply for Federal Housing Trust Fund funding, if available, in 2026. The City is participating in the Santa Clara County Planning Collaborative Grand Nexus/Affordable Housing Study that may develop housing in-lieu fees as part of a possible Affordable Housing Ordinance. See A-11 above for update. City has been working in collaboration with Santa Clara County Office of Supportive Housing and the Santa Clara County Housing Authority to plan the potential affordable housing development at 8th and Alexander Streets in Gilroy. See A-14 above for further project updates. The fully entitled 100% affordable housing development on Monterey Street will provide at least 21 units restricted to households earning 50% AMI or less.

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Developer Roundtables are planned at a minimum annually each May, with the first one held in 2025. The Pilot BMR Preservation program provided housing for one new low-income senior household through acquisition and down payment assistance from both the County and the City.

See C-1 above for Pilot BMR Preservation Program update. The City continues to provide community outreach regarding the Santa Clara County Manufactured Home Purchase program and to seek funding to rehabilitate local mobile home parks to add more units. • Program E-13- Permanent Supportive Housing - Completed - A Zoning Amendment implementing this program was adopted on June 3, 2024, Ordinance No. 2024-01.
• Program F-4 - Housing Mobility and Choice in Higher Opportunity Areas - Continuous - An update on each of these programs is identified under their respective program number. See A-10, A-11, and A-12 above. • Program G-1 – Collaboration with Development Community -. In Progress - City staff created a list of Gilroy developers over 2023 and 2024 while conducting outreach for CDBG Consolidated Plan, the Affordable Housing Feasibility Study, the Grand Nexus/Affordable Housing Study, and Station Area Visioning Study outreach, and through Planning and Building permit applications. The first annual Developer Roundtable was hosted in May of 2025.
• Program G-3 - ADU Education. In progress - In Progress - The City Building and Planning Divisions’ ADU webpages were consolidated, with a link to pre-approved ADU plans gallery. City staff tracks ADU permit issuance and will collaborate to create an ADU marketing program and encourage residents to participate in the Santa Clara County ADU loan program with expected funding in late 2026.

Discussion
See above.

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AP-85 Other Actions - 91.420, 91.220(k)
Introduction
See below.

Actions planned to address obstacles to meeting underserved needs The Needs Assessment and Market Analysis of the 2025-2030 Consolidated Plan helped develop the city’s priority needs for LMI persons, persons experiencing homelessness, special needs populations, and community service needs.

Actions planned to foster and maintain affordable housing Rebuilding Together Silicon Valley will provide minor home repair, accessibility, and rehabilitation projects for LMI homeowners. These rehabilitation projects are for homeowners who otherwise could not afford to make critical repairs in their homes, thus potentially resulting in health and safety issues that could cause a home to become uninhabitable and may lead to homelessness. Additionally, a home that lacks proper accessibility for its owner may lead to a serious accident that could cause an even larger physical and financial burden. In PY 2023-2024, Rebuilding Together Silicon Valley increased its allowable amounts/awards to homeowners with the aim of completing a few larger scale projects that will preserve affordable housing for these low-income homeowners. For PY 2025-2026, the City Council directed resources toward completing more small-scale projects to ensure broader public benefit and reach more residents rather than larger, costly projects.

Actions planned to reduce lead-based paint hazards
The City provides information about lead-based paint hazards at the Community Development counter for properties being rehabilitated or acquired for affordable housing.

Additionally, when applicable, any homeowner units that participate in Rebuilding Together Silicon Valley’s affordable housing project will be assessed for possible lead-based paint prior to rehabilitation.

Actions planned to reduce the number of poverty-level families The City works to reduce the number of poverty-level families through all projects by making the projects available to LMI households citywide. Some projects were created to address the need to expand economic opportunities for lower-income people, and others may offer additional benefits in reducing poverty, simply by way of design.
• Carry the Vision’s Peer to Peer Support for Unhoused Residents Program will work with individuals experiencing homelessness in collaboration with local outreach teams, service

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providers, Quality of Life Officers, City staff and community partners to complement existing homelessness response efforts and strengthen coordination in Gilroy, resulting in increased stabilization, trust, and consistent engagement.
• Shine Together’s Young Mothers Support Services Program will provide young low-income mothers between the ages of 13-25 with expanded access to education, essential resources, and supportive relationships to families facing poverty, school disruption, housing instability, and mental health stress, in collaboration with South County Heals, South County Youth Task Force, and the Neighborhood Safety Unit.
• Silicon Valley Independent Living Center’s Housing and Emergency Services for Persons with Disabilities Program will serve Gilroy residents with disabilities or a chronic health condition in their transition from homelessness, health care facilities, or unstable or temporary housing into permanent affordable, accessible, integrated housing, and also provides emergency housing assistance, as funding is available, including security deposits and first month’s rent, assistive technology information & referral, home accessibility modification referrals, supplemental food, and referrals to organizations that provide assistance to ensure long-term sustainability of their independent living environment. The project provides housing search services that benefit lowor extremely low-income persons with disabilities, of all ages, including seniors and youth. • Sourcewise’s Transit Services Program will provide free transit rides to Gilroy seniors and/or disabled adults to local medical appointments, pharmacies, grocery stores, and to socialize at the Senior Center.
• Project Sentinel’s Tenant-Landlord Services Program will provide counseling services to prevent eviction and housing instability, including information and referral, case management, dispute resolution through conciliation or mediation, and community education. Staff will educate tenants and housing providers on their rights and responsibilities and assist in resolving disputes related to terminations, rent increases, habitability, deposits, and other rental concerns. • Project Sentinel’s Fair Housing Program provides services to address the incidence of illegal housing discrimination by investigating complaints, administering systemic audits, conducting community outreach and education, and seeking redress for victims of such discrimination. The agency also educates housing providers in an effort to prevent fair housing complaints.

Actions planned to develop institutional structure
The City is financially constrained and cannot meet all the needs identified in the Needs Assessment; however, the City continues to enter into partnerships with nonprofits to strategically address some community needs, as well as seek additional funding to work to meet all needs identified in the Needs Assessment. An especially pressing issue is meeting the needs of the City’s growing unhoused population. The City will continue to provide a platform for collaboration and partnership between the City and service providers to connect unhoused individuals and families with services through the monthly USPN meetings. Additionally, the City provides resources and information for unhoused

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individuals on its website at https://www.cityofgilroy.org/unhoused Actions planned to enhance coordination between public and private housing and social service agencies
• In 2023, 2024, and 2025, City staff continued monthly meetings and collaboration with Santa Clara County Office of Supportive Housing (OSH) staff regarding the development of affordable housing at the County-owned property located at 8th and Alexander. After City and County staff drafted a Request for Offers (RFO) to be presented to affordable housing developers, the Santa Clara County Housing Authority approached the County about developing the property. During 2025, the Santa Clara County Housing Authority (SCCHA) contracted with FORA to begin creating a community outreach plan and to begin reaching out to local stakeholders. City staff connected FORA with local stakeholders and community members in 2025 to begin the community outreach process. Eight stakeholder meetings have been conducted, and the community outreach stakeholder process is expected to be complete in 2026. Public outreach is also expected to occur in 2026.
• The City has joined the Santa Clara County Office of Supportive Housing BMR Partnership Program, which has an ADU and JADU loan component. The program will allow borrowers to use the funding to purchase a home with an ADU or JADU, to construct a new ADU or JADU, or to repair, reconstruct, or rehabilitate an existing ADU or JADU, which may include converting existing space to add to an ADU or JADU. City staff will promote the County program in high resource areas in Gilroy. The County hopes to have funding for the ADU portion of the partnership during FY 2026.
• In 2025, the City collaborated with the County of Santa Clara Office of Supportive Housing to implement a Pilot Below-Market-Rate Preservation Program. During 2025, the City used a loan from the County to purchase a resale BMR senior home and resold to another low-income senior household. The City expects to process one City/County Pilot BMR Preservation program unit annually.

Discussion
Please see discussion above.

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Program Specific Requirements
AP-90 Program Specific Requirements - 91.420, 91.220(l)(1,2,4) Introduction
The City will continue to collect additional revenue to support the actions noted in the Annual Action Plan. Program Income is collected from various sources to include repayment of past rehabilitation loans. The City does not anticipate receiving any program income in PY 2026-2027.

Community Development Block Grant Program (CDBG)
Reference 24 CFR 91.220(l)(1)
Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out.

1. The total amount of program income that will have been received before the start of the next program year and that has not yet been reprogrammed 0

2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified in the grantee's strategic plan. 0

3. The amount of surplus funds from urban renewal settlements 0

4. The amount of any grant funds returned to the line of credit for which the planned use has not been included in a prior statement or plan 0

5. The amount of income from float-funded activities 0
Total Program Income: 0
Other CDBG Requirements

1. The amount of urgent need activities 0

2. The estimated percentage of CDBG funds that will be used for activities that benefit persons of low- and moderate-income. Overall Benefit - A consecutive period of one, two or three years may be used to determine that a minimum overall benefit of 70% of CDBG funds is used to benefit persons of low- and moderate-income. Specify the years covered that include this Annual Action Plan. 100.00% Discussion
The City will strive to achieve an overall benefit of 100% for this Annual Action Plan, which will span one year. The overall benefit will be measured for PY 2026-2027.

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DRAFT Citizen Participation
Plan
The Consolidated Plan (Con Plan) is required by the U.S. Department of Housing and Urban Development (HUD) for jurisdictions to continue to receive federal housing and community development funding. The City of Gilroy (City) receives Community Development Block Grant (CDBG) funding annually as an entitlement community. The Con Plan examines the housing and community development needs of the City, sets priorities for the CDBG funds, establishes an Annual Action Plan (AAP) for meeting current and future needs, and evaluates the City’s performance in meeting its annual goals through the Consolidated Annual Performance Evaluation Report (CAPER).

Purpose of the Citizen Participation Plan
The City recognizes the importance of public participation in both defining and understanding current housing, community development, economic development, and fair housing needs, and prioritizing resources to address those needs. The City’s Citizen Participation Plan (CPP) is designed to provide residents of all ages, sex, economic levels, races, ethnicities, and special needs, equal access to become involved in the Con Plan each year. This CPP was written in accordance with 24 CFR, Section 91.105 of HUD’s Consolidated Plan regulations.

To ensure maximum participation in the federal plans and reports process among all populations and needs groups, and to ensure that their issues and concerns are adequately addressed, the City will follow the standards set forth in its adopted CPP during development of its federal plans and reports. The participation process will be developed and monitored by the City’s Housing and Community Services Division (HCS).

Encouragement of Citizen Participation
The federal plans and reports process offers opportunities for resident participation through public meetings and review of draft documents. The City encourages participation of persons with special needs and/or persons who are often underrepresented in the public process.

The City shall encourage the participation of:
• Extremely low-income persons;
• Low- and moderate-income persons;

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• Persons with Spanish as their primary language
• Residents of slum and blighted areas and areas where CDBG funds are proposed to be used; • Residents of public and assisted housing developments; • Persons experiencing Homelessness and homeless service providers, including the local Continuum of Care (CoC);
• Fair housing organizations and agencies;
• Local and regional institutions and other stakeholders involved in housing and community development activities.

Outreach
The City will conduct outreach as necessary to encourage individuals, groups, and organizations identified above to provide input for any federal plans and reports. Outreach may include:
• Developing informational materials and flyers in multiple languages (at least English and Spanish) to distribute to other agencies.
• Placing notices in local newspapers in English and when practical and possible in Spanish (Gilroy Dispatch, San Jose Mercury News).
• Providing email notices to interested parties.
• Posting notices at City Hall, Gilroy Library, on the City’s website, in the Email Express, and social media platforms.
• Outreach efforts will be provided in the Spanish language as much as possible and with good‐ faith effort at a minimum through the South County Collaborative listserv, Unhoused Service Providers Network, and the South County Youth Task Force. • Direct outreach to public housing residents and the Housing Authority. • Coordination with the local CoC, homeless service providers, and other community resource providers.

Citizen Comment
Prior to the adoption of any federal plan, report, or amendments thereto, the City will make available to interested parties the draft documents for a comment period of no less than 30 days, 15 daysfor the CAPER, or as otherwise directed by HUD. The dates of the public comment periods will be identified in a notice regarding the availability of the documents, which will be published in a newspaper of local circulation as identified above.

Draft documents will include a summary of:
• The funding allocation the City expects to receive;
• The range of activities that may be undertaken;

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• The estimated amount that will benefit low- and moderate-income persons; • The City’s proposed uses of funds; and
• The City’s performance under previously funded activities.

The City will consider any comments by individuals or groups received in writing regarding federal plans or reports and received at the public hearing(s). A summary of the written and oral comments received during the comment period will be included in the applicable federal plan or report.

Access to Records
The City will provide residents, public agencies, and other interested parties with reasonable (up to five years after the end of each Program Year (PY)) and timely access (within 10 days of confirmed Public Records Request (PRA)) to information and records relating to the Consolidated Plan, Annual Action Plan, substantial amendments, CAPER, and the City’s use of CDBG funds.

Access will include:
• Proposed uses of funds and funding amounts;
• Performance reports (including the CAPER);
• The Residential Anti-Displacement and Relocation Assistance Plan; and • Records related to past use of funds and program outcomes.

The City will provide technical assistance to groups representing low- and moderate-income persons that request assistance in developing applications or commenting on plans.

1. In general, the City and subrecipients must retain records on CDBG-funded activities for the longest of the following minimum standards*:
• Three years after the expiration or termination of the subrecipient agreement • Three years after the City’s submission of the CAPER in which a specific activity is reported for the last time (24 CFR 570.502(a)(7)(ii)(A))

2. Retain records for individual activities subject to the reversion of assets provisions at 24 CFR 570.503(b)(7) for as long as this provision continues to apply to the activity (24 CRF 570.502(a)(7)(2)(B)).

3. Retain records for individual activities for which there are outstanding loan balances, other receivables, or contingent liabilities until such receivables or liabilities have been satisfied (24 CFR 570.502(a)(7)(ii)(C))

4. If any litigation, claim audit, negotiation, or other action involving your records has

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Gilroy City CouncilApril 6, 2026

Gilroy City Council
April 6, 2026