Gilroy City Council
April 20, 2026

April 20, 2026 | 6:00 PM Page 1 of 8 City Council
Regular Meeting

CITY COUNCIL

REGULAR MEETING
AGENDA

CITY COUNCIL CHAMBERS, CITY HALL
7351 ROSANNA STREET, GILROY, CA
95020
MONDAY, APRIL 20, 2026 | 6:00 PM
MAYOR
Greg Bozzo

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

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

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

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

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

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

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

April 20, 2026 | 6:00 PM Page 2 of 8 City Council
Regular Meeting
post the documents before the meeting.

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

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

FOR MORE INFORMATION ON YOUR RIGHTS UNDER THE OPEN GOVERNMENT

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

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

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

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

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

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

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

The agenda for this regular meeting is outlined as follows:

1. OPENING

1.1. Call to Order

1.2. Roll Call

1.3. City Clerk's Report on Posting the Agenda

1.4. Pledge of Allegiance

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Regular Meeting

1.5. Invocation

1.6. Orders of the Day

1.7. Employee Introductions

2. CEREMONIAL ITEMS - Proclamations and Awards

2.1. Proclamation for Earth Day and Arbor Day

3. COUNCIL CORRESPONDENCE (Informational Only)

4. PRESENTATIONS TO THE COUNCIL

4.1. Sister Cities Annual Presentation

4.2. Visit Gilroy Annual Presentation

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

AGENDA BUT WITHIN THE SUBJECT MATTER JURISDICTION OF THE CITY

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

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

5. REPORTS OF COUNCIL MEMBERS
Council Member Bracco – Downtown Committee, Santa Clara County Library Joint Powers Authority, Santa Clara Water Commission, Santa Clara Valley Water Joint Water Resources Committee, SCRWA

April 20, 2026 | 6:00 PM Page 4 of 8 City Council
Regular Meeting
Council Member Fugazzi – Santa Clara Water Commission (alternate), Silicon Valley Regional Interoperability Authority Board (alternate), SCRWA, Visit Gilroy California Welcome Center, VTA Mobility Partnership Committee
Council Member Marques – ABAG, Downtown Committee, Santa Clara County Library Joint Powers Authority (alternate), Santa Clara Valley Habitat Agency Governing Board, Santa Clara Valley Habitat Agency Implementation Board, SCRWA (alternate) Council Member Hilton – CalTrain Policy Group, Santa Clara County Expressway Plan 2040 Advisory Board (alternate), Silicon Valley Clean Energy Authority JPA Board, South County Youth Task Force Policy Team, VTA Policy Advisory Committee Council Member Ramirez – ABAG (alternate), Gilroy Gardens Board of Directors (alternate), Gilroy Sister Cities, Gilroy Youth Task Force (alternate), SCRWA, Santa Clara Housing and Community Development Advisory Committee
Council Member Cline – CalTrain Policy Group (alternate), Gilroy Sister Cities (alternate), Gilroy Youth Task Force, Santa Clara County Expressway Plan 2040 Advisory Board, Silicon Valley Clean Energy Authority JPA Board (alternate), Silicon Valley Regional Interoperability Authority Board, Visit Gilroy California Welcome Center (alternate), VTA Mobility Partnership Committee, VTA Policy Advisory Committee (alternate)
Mayor Bozzo – Gilroy Gardens Board of Directors, Santa Clara Valley Water Joint Water Resources Committee, South County Youth Task Force Policy Team, VTA Board of Directors (alternate), Santa Clara Housing and Community Development Advisory Committee (alternate)

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

6.1. Approve the minutes of the March 25, 2026 and April 2, 2026 City Council Special Study Sessions, the April 4, 2026 Coffee with the Mayor, and the April 6, 2026 City Council Regular Meeting

6.2. Approve a School Resource Officer Memorandum of Understanding for Fiscal Year 2026-2027

6.3. Approve the Second Amendment for HydroScience Design Services Contract for Water Utility Improvements to increase by $175,395, for a New Total Not-toexceed Amount of $1,112,985

6.4. Resolution of Intention to Renew the Gilroy Tourism Business Improvement District (GTBID)

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Regular Meeting

6.5. Approval of a Purchasing Contract With RDO Equipment Co. of Hayward in the Amount of $104,967 for the Purchase of a Vermeer BC1500 Wood Chipper Under a Cooperative Purchasing Agreement with Sourcewell, Contract# 010925-VRM

6.6. Approval of the Gilroy Tourism Business Improvement District (GTBID) Annual Reports as Submitted by Visit Gilroy/Gilroy Welcome Center for the Period of January 1, 2022 Through December 31, 2025

6.7. Approve the Second Amendment to the Agreement with Dewberry Engineers Inc. to Add $187,766.15 for the Design of the Lions Creek Trail and Santa Teresa Blvd/Day Rd East Bicycle and Pedestrian Improvements and Adopt a Budget Amendment Resolution for CIP Project No. 800270

6.8. Approval of a Purchasing Contract With Papé Machinery of Gilroy in the Amount of $352,595 for the Purchase of a John Deere 320 P-Tier Backhoe Loader, a John Deere 60 P-Tier Compact Excavator, and a TKT24LP Tilt Trailer Under a Cooperative Purchasing Agreement with Sourcewell, Contract# 011723-JDC and 092922-TKI

6.9. Consent the City Administrator's Recommendation to Appoint Cindy Murphy to the Department Head Position of Finance Director

6.10. Claim of Farmers Insurance Exchange a/s/o Armando Flores (The City Administrator recommends a "yes" vote under the Consent Calendar shall constitute denial of the claim)

7. BIDS AND PROPOSALS

7.1. Award a Two-Year Contract to Hello Housing to Administer the City's Below Market Rate Housing Program with Three, One-Year Extension Options in a Total Amount Not to Exceed $973,689 and Adopt a Resolution Amending the Budget in the Housing Trust and Los Arroyos Funds

1. Staff Report:

Sharon Goei, Community Development Director

2. Public Comment

3. Possible Action:

1. Award a contract to Hello Housing to administer the Below Market Rate (BMR) Housing Program from July 1, 2026, to June 30, 2028, with three, one-year extension options, and authorize the City Administrator to execute the contract and associated documents; and

2. Adopt the resolution amending the Fiscal Year 2026-27 budget to increase appropriations in the Housing Trust Fund by $6,240 and the Los Arroyos Fund by $5,760 for the Fiscal Year 2027 services of this contract.

7.2. Award a contract to 17 Mile Construction in the amount of $198,900 for tenant

April 20, 2026 | 6:00 PM Page 6 of 8 City Council
Regular Meeting
improvements at 641 Old Gilroy St (Jessup Property); Approve a project contingency of $19,100, and Approve a total project expenditure of $218,000

1. Staff Report:

Karl Bjarke, Interim Public Utilities Director

2. Public Comment

3. Possible Action:

1. Award a Public Works contract in the amount of $198,900 to 17 Mile Construction for the tenant improvement project at 641 Old Gilroy St.;

2. Approve a project contingency of $19,100 for a total project authorization of $218,000; and

3. Authorize the City Administrator to execute the contract documents and approve any future change orders within the project contingency.

8. PUBLIC HEARINGS

8.1. Public Hearing to Establish a List of Properties Subject to the Weed Abatement Program and Adoption of a Resolution Authorizing the Fire Chief to Abate the Nuisance Arising Out of Weeds Growing and Refuse Accumulating Upon Property in the City of Gilroy Pursuant to Section 12.51 of the Gilroy Code

1. Disclosure of Ex-Parte Communications

2. Staff Report:

Sharon Goei, Community Development Director

3. Open Public Hearing

4. Close Public Hearing

5. Possible Action:

Adopt a Resolution of the City Council of the City of Gilroy authorizing the Fire Chief to abate the nuisance arising out of weeds growing and refuse accumulating upon property in the City of Gilroy, pursuant to Section 12.51 of the Gilroy City Code.

8.2. Amend Chapter 15, Section 15.11 of the Gilroy City Code by Adding Reference to California Vehicle Code Section 22358 et seq. Allowing the City Council to Reduce Prima Facie Speed Limits in School Zones from 25 mph to 15 mph or 20 mph per Assembly Bill 382

1. Disclosure of Ex-Parte Communications

2. Staff Report:

John Doughty, Public Works Director

3. Open Public Hearing

4. Close Public Hearing

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Regular Meeting

5. Possible Action:

1. Conduct a Public Hearing;

2. Introduce and waive the first reading of the Ordinance amending Chapter 15, Section 15.11 of the Gilroy City Code adding reference to California Vehicle Code Section 22358 et seq. allowing the City Council to reduce prima facie speed limits in school zones from 25 mph to 15 mph or 20 mph per Assembly Bill 382;

3. Direct staff to place the Ordinance for adoption at the May 18, 2026 meeting; and

4. Adopt a resolution approving a budget amendment adding $150,000 from Fund 220 (Vehicle Registration Fee) to Capital Project Number 801120 (Citywide Safety Improvements).

9. UNFINISHED BUSINESS

9.1. Receive an Update on Emergency Medical Dispatch (EMD) Services Cost Escalation and Service Delivery Evaluation, and Approval of a Two-year Agreement with the Santa Clara County Communications Department for EMD services, in the Amount of $170,256 for Fiscal Year 2026-27 (FY27) and $329,803 in FY28

1. Staff Report:

Rob Fleeup, Fire Chief

2. Public Comment

3. Possible Action:

1. Receive an update; and

2. Approve a two-year agreement with Santa Clara County Communications Department for Emergency Medical Dispatch services, in the amount of $170,256 in FY 27 and $329,803 in FY 28, and authorize the City Administrator to execute the contract and associated documents.

10. INTRODUCTION OF NEW BUSINESS

10.1. Approve the Establishment of a City Council Homelessness Ad Hoc Subcommittee and Appoint up to Three City Councilmembers to Serve on the Subcommittee, and Provide Direction on the Homebase Proposal and Option

1. Staff Report:

Sharon Goei, Community Development Director

2. Public Comment

3. Possible Action:

1. Approve the establishment of a City Council Homelessness Ad Hoc

April 20, 2026 | 6:00 PM Page 8 of 8 City Council
Regular Meeting
Subcommittee and appoint up to three City Councilmembers to serve on the Subcommittee; and

2. Proceed with the Homebase proposal and option of facilitation of six (6) monthly meetings with four (4) virtual and two (2) in-person meetings.

11. FUTURE COUNCIL INITIATED AGENDA ITEMS

11.1. Request to Consider Amending City Zoning Code Section 30.41.31 regarding Performance Standards for Commercial and Industrial Noise Impacting Residentially Zoned Properties (FAIR Memo - Hilton)

1. Staff Report:

Sharon Goei, Community Development Director

2. Public Comment

3. Possible Action:

Council consideration of a future agenda item directing staff to amend Zoning Code Section 30.14.31 (Specific provisions – Noise).

12. CITY ADMINISTRATOR'S REPORTS

13. CITY ATTORNEY'S REPORTS

14. CLOSED SESSION

14.1. Public Employee Appointment/Employment Pursuant to Government Code Section 54957 and Gilroy City Code Section 17A.11(2)
Name/Title: Police Chief

15. ADJOURN TO OPEN SESSION

16. ADJOURNMENT

March 25, 2026 | 8:30 AM Page 1 of 2 City Council
Minutes
City of Gilroy
City Council
DRAFT
Minutes
Wednesday, March 25, 2026 | 8:30 AM

1. OPENING

1. Call to Order
The meeting was called to order by Mayor Bozzo at 8:30 AM.

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

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

2. PUBLIC COMMENT
Mayor Bozzo opened public comment at 8:42 A.M.

With no speakers, Mayor Bozzo closed public comment.

3. CITY COUNCIL STUDY SESSION

1. Legislative Agenda and Work Plan
Introductions of facilitator Dave Sykes and City Council.

Review the Goals for the Study Session.

Review Selected Council Norms
Review of Work Plan & Legislative Agenda
Mayor Bozzo opened public comment at 10:38 P.M.

Gary Walton - commented on Downtown Morgan Hill vs. Downtown Gilroy and the benefit that Gilroy has with a plan from the Council.

David Leal - thanked the Council for what they have done in Downtown Gilroy and asked that they have a plan moving forward to attract more people to Downtown

March 25, 2026 | 8:30 AM Page 2 of 2 City Council
Minutes
Gilroy.

Amber Atteberry - commented on the Gilroy Downtown Business Association and provided some statistics.

With no further speakers, Mayor Bozzo closed public comment.

The meeting recessed at 10:56 am and reconvened at 11:07 am.

Continue review of Work Plan & Legislative Agenda
Goal Setting Brainstorm

4. ADJOURNMENT
With no additional business before the Council, the meeting was adjourned at 12:01 P.M I HEREBY CERTIFY that the foregoing minutes were duly and regularly adopted at a regular meeting of the City Council of the City of Gilroy on XXXXXXX, 20XX.

Kim Mancera
City Clerk

April 2, 2026 | 8:30 AM Page 1 of 1 City Council
Minutes
City of Gilroy
City Council
DRAFT
Minutes
Thursday, April 2, 2026 | 8:30 AM

1. OPENING

1. Call to Order
The meeting was called to order by Mayor Bozzo at 8:30 AM.

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

3. CITY COUNCIL STUDY SESSION

1. Priorities and Workplan Goal Setting
Facilitator Dave Sykes provided a recap of the first study session.

Review the role of the City Administrator.

Review the purpose of the City Administrator's evaluation and discuss performance measures.

2. PUBLIC COMMENT
Mayor Bozzo opened public comment at 10:06 P.M.

With no speakers, Mayor Bozzo closed public comment.

4. ADJOURNMENT
With no additional business before the Council, the meeting was adjourned at 10: 06 P.M I HEREBY CERTIFY that the foregoing minutes were duly and regularly adopted at a regular meeting of the City Council of the City of Gilroy on XXXXXXX, 20XX.

Kim Mancera
City Clerk

April 4, 2026 | 9:30 AM Page 1 of 1 City Council
Minutes
City of Gilroy
City Council
Draft Minutes
Saturday, April 4, 2026 | 9:30 AM

1. OPENING

1. Call to Order
The meeting was called to order by Mayor Bozzo at 9:30 AM.

Attendance Attendee Name
Present Council Member Dion Bracco
Council Member Kelly Ramirez
Mayor Greg Bozzo

2. COFFEE WITH THE MAYOR

3. ADJOURNMENT
With no additional business before the Council, the meeting was adjourned at 10:38 A.M I HEREBY CERTIFY that the foregoing minutes were duly and regularly adopted at a regular meeting of the City Council of the City of Gilroy on XXXXXXX, 20XX.

Kim Mancera
City Clerk

April 6, 2026 | 6:00 PM Page 1 of 8 City Council
Minutes
City of Gilroy
City Council
DRAFT
Minutes
Monday, April 6, 2026 | 6:00 PM

1. OPENING

1. Call to Order
The meeting was called to order by Mayor Bozzo at 6:00 PM.

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

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

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

5. Invocation
None.

6. Orders of the Day
None.

7. Employee Introductions
Police Captain Luke Powell introduced Police Officer Logan Lyons, Police Officer Kevin Figueroa and Community Service Officer Victoria Zepeda.

2. CEREMONIAL ITEMS - Proclamations and Awards

1. Fair Housing Month Proclamation
Mayor Bozzo presented the Fair Housing Month Proclamation to Danitza Roncal with Project Sentinel.

3. PRESENTATIONS TO THE COUNCIL

1. Presentation of the Annual Report for the Gilroy Elevate the Arts Program by

April 6, 2026 | 6:00 PM Page 2 of 8 City Council
Minutes
Silicon Valley Creates
Alexandra Urbanowski with Silicon Valley Creates provided a report from the Gilroy Elevate the Arts Program.

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

AGENDA BUT WITHIN THE SUBJECT MATTER JURISDICTION OF THE CITY

COUNCIL
Mayor Bozzo opened public comment at 6:17 P.M.

Landon Sepulveda - Spoke against the Gilroy Amazon Data Center.

Ron Kirkish - Spoke in favor of the Gilroy Amazon Data Center.

With no further speakers, Mayor Bozzo closed public comment.

4. REPORTS OF COUNCIL MEMBERS

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

April 6, 2026 | 6:00 PM Page 3 of 8 City Council
Minutes
Joint Water Resources Committee, South County Youth Task Force Policy Team, VTA Board of Directors (alternate), Santa Clara Housing and Community Development Advisory Committee (alternate)
Council Member Bracco - No report.

Council Member Fugazzi - No report.

Council Member Marques - Reported that she and Council Member Ramirez attended the Santa Clara Valley Habitat Agency meeting and spoke on the Burrowing Owl Program.

Council Member Hilton - No report.

Council Member Ramirez - Attended Gilroy Appreciation Day at Gilroy Gardens and recognized Gilroy Gardens for having a great season opener. She shared that she participated in Solorsano Middle School's Career Day and spoke at a Political Science class at Gavilan College. She reported from the Santa Clara Housing and Community Development Advisory Committee and shared that Gilroy will receive funding for the 8th & Alexander low-income housing project. She also reported from the Cal Cities Housing Community and Economic Development Policy Committee meeting in Costa Mesa.

Council Member Cline - No report.

Mayor Bozzo - Reported from the Gilroy Gardens Board of Directors that Gilroy Gardens has hired a Chief Advancement Officer. He also shared that he attended a meeting for the Santa Clara Valley Water Joint Water Resources Committee and reported on developments between Gilroy and Morgan Hill pertaining to recycled water. Lastly, the Mayor gave praise to Gilroy's Parks teams for keeping the parks maintained.

5. CONSENT CALENDAR
Mayor Bozzo commented on item 5.7. He announced that the position of Assistant City Administrator is a new position for Gilroy that has never existed before and congratulated Harjot Sangha on the position.

Mayor Bozzo opened public comment at 6:29 P.M.

With no speakers, Mayor Bozzo closed public comment.

Motion
Approve the consent calendar.

RESULT: Passed
MOVER: Council Member Kelly Ramirez
SECONDER: Council Member Tom Cline
AYES: Council Member Dion Bracco, Council Member Tom Cline, Council Member Terence Fugazzi, Council Member Carol Marques, Council

April 6, 2026 | 6:00 PM Page 4 of 8 City Council
Minutes
Member Kelly Ramirez, Mayor Greg Bozzo
NAYS: None
ABSENT: Council Member Zach Hilton

1. Approve the March 7, 2026 Coffee with the Mayor and the March 16, 2026 City Council Regular Meeting minutes

2. Approval of the Update to the Gilroy Conflict of Interest Code During Its Biennial Review

3. Approve Property Improvement Agreement No. 2026-02, for Data Center Phase 1 Offsite Improvements, APN 841-69-044

4. Claim of Christina Johnson (The City Administrator recommends a "yes" vote under the Consent Calendar shall constitute denial of the claim)

5. Approve budget amendment and contract amendment to cover change orders on the purchase of a replacement Type III fire engine from BME Fire Trucks, LLC.

6. Notice of Completion for the FY25 Citywide Pavement Rehabilitation Project No. 25-PW-295 and Approval of a Final Contract Amount of $6,911,105.66

7. Consent the City Administrator's Recommendation to Appoint Harjot Sangha to the Department Head Position of Assistant City Administrator

6. BIDS AND PROPOSALS

1. Council Award a Contract to Pros Consulting for the Recreation Division Assessment in the Amount of $372,690 and Adopt a Resolution Amending the Fiscal Year 2026 Budget in the Recreation Fund
Deputy Director of Community Development Bryce Atkins provided a report and presentation.

Mayor Bozzo opened public comment at 6:45 P.M.

Ron Kirkish - Spoke against granting the contract to Pros Consulting With no further speakers, Mayor Bozzo closed public comment.

Motion
Award a contract to Pros Consulting setting the dollar figure to $225,000 and allowing City staff and the consultant to negotiate a maximum possible scope of work within the budget.

RESULT: Passed
MOVER: Council Member Tom Cline
SECONDER: Council Member Carol Marques
AYES: Council Member Tom Cline, Council Member Terence Fugazzi, Council Member Carol Marques, Council Member Kelly Ramirez,

April 6, 2026 | 6:00 PM Page 5 of 8 City Council
Minutes
Mayor Greg Bozzo
NAYS: Council Member Dion Bracco
ABSENT: Council Member Zach Hilton
Motion
Adopt the attached budget amendment resolution revised to coordinate with the amount of the project.

RESULT: Passed
MOVER: Council Member Kelly Ramirez
SECONDER: Council Member Carol Marques
AYES: Council Member Tom Cline, Council Member Terence Fugazzi, Council Member Carol Marques, Council Member Kelly Ramirez, Mayor Greg Bozzo
NAYS: Council Member Dion Bracco
ABSENT: Council Member Zach Hilton

2. Award Four, Three-Year On-Call Standard and Expedited Building and Fire Plan Review and Inspection Services Contracts with Two, One-Year Extension Options and Each Contract with an Amount Not-To-Exceed $2,000,000 to 4LEAF, CSG Consultants, TRB+ Associates, and True North Compliance Services
Community Development Director Sharon Goei provided a report and presentation.

Mayor Bozzo opened public comment at 7:13 P.M.

With no speakers, Mayor Bozzo closed public comment.

Motion
Award agreements in an amount not-to-exceed $2,000,000 each with 4LEAF, CSG Consultants, TRB+ Associates and True North Compliance Services to provide standard and expedited on-call Building and Fire plan review and inspection services for the initial period of July 1, 2026 to June 30, 2029, with two, one-year extension options, and authorize the City Administrator to execute these agreements.

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

7. INTRODUCTION OF NEW BUSINESS

1. Proposed High Speed Rail Tax Increment Financing

April 6, 2026 | 6:00 PM Page 6 of 8 City Council
Minutes
City Administrator Matt Morley provided a report.

Mayor Bozzo opened public comment at 7:19 P.M.

With no speakers, Mayor Bozzo closed public comment.

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

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

2. 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
Community Development Director Sharon Goei provided a report and presentation.

Mayor Bozzo opened public comment at 7:34 P.M.

Carole Conn - Thanked council for supporting Project Sentinel's efforts within the community
Liz Murillo - Spoke on the relationship between Gilroy and the team with Rebuilding Together Silicon Valley
Deanne Everton - Thanked council for their support in Gilroy's housing developments.

With no further speakers, Mayor Bozzo closed public comment.

Listen to the motion that Mayor Bozzo reads. (there was no mover or second) Motion
Receive draft Community Development Block Grant (CDBG) Program Year (PY) 2026-2027 Annual Action Plan (AAP) and draft Citizen Participation Plan (CPP) and direct staff to allow funding for the public service applicants to be equally distributed and non-public service applicants to be equally distributed between City of Gilroy Public Works and Rebuilding Together Silicon Valley.

RESULT: Approve

April 6, 2026 | 6:00 PM Page 7 of 8 City Council
Minutes
MOVER: Council Member Terence Fugazzi
SECONDER: Council Member Tom Cline
AYES: Council Member Dion Bracco, Council Member Tom Cline, Council Member Terence Fugazzi, Council Member Carol Marques, Council Member Kelly Ramirez, Mayor Greg Bozzo
NAYS: None
ABSENT: Council Member Zach Hilton

3. Acceptance of Fiscal Year 2024-25 Annual Comprehensive Financial Report (ACFR)
Assistant City Administrator and Finance Director Harjot Sangha provided a report and presentation.

Mayor Bozzo opened public comment at 7:56 P.M.

With no speakers, Mayor Bozzo closed public comment.

Report received.

4. Council Consideration of Placing a Potential Sales Tax Ballot Measure for the November 2026 Election Ballot
Assistant City Administrator and Finance Director Harjot Sangha provided a report and presentation.

Mayor Bozzo opened public comment at 8:26 P.M.

With no speakers, Mayor Bozzo closed public comment.

Council approved 4-2 to pursue the placement of a special sales tax measure on the ballot and directed staff to come back in June with ballot language and the formal action.

8. CITY ADMINISTRATOR'S REPORTS
No report.

9. CITY ATTORNEY'S REPORTS
No report.

10. CLOSED SESSION

1. Public Employee Appointment/Employment Pursuant to Government Code Section 54957 and Gilroy City Code Section 17A.11(2)
Name/Title: Finance Director
City Attorney Andy Faber announced the closed session item.

City Attorney Andy Faber opened public comment at 8:47 P.M.

April 6, 2026 | 6:00 PM Page 8 of 8 City Council
Minutes
With no speakers, City Attorney Andy Faber closed public comment.

Motion
Remain in closed session.

RESULT: Passed
MOVER: None
SECONDER: None
AYES: Council Member Dion Bracco, Council Member Tom Cline, Council Member Terence Fugazzi, Council Member Carol Marques, Council Member Kelly Ramirez, Mayor Greg Bozzo
NAYS: None
ABSENT: Council Member Zach Hilton
The meeting adjourned to closed session at 8:47 P.M

11. ADJOURN TO OPEN SESSION

12. ADJOURNMENT
With no additional business before the Council, the meeting was adjourned at 8:56 P.M I HEREBY CERTIFY that the foregoing minutes were duly and regularly adopted at a regular meeting of the City Council of the City of Gilroy on XXXXXXX, 20XX.

Kim Mancera
City Clerk

6.2. City of Gilroy

STAFF REPORT
Agenda Item Title: Approve a School Resource Officer Memorandum of Understanding for Fiscal Year 2026-2027
Meeting Date: April 20, 2026
From: Matt Morley, City Administrator
Department: Police
Submitted by: Scot Smithee, Interim Police Chief
Prepared by: Brian Dutton, Police Captain
STRATEGIC PLAN GOALS: Not Applicable

RECOMMENDATION
Adopt a resolution of the City Council of the City of Gilroy authorizing the City Administrator to enter into an agreement between the City of Gilroy and Gilroy Unified School District for two school resource officers, including cost sharing, for Fiscal Year 2026-2027 (FY27).

EXECUTIVE SUMMARY
The City of Gilroy (City) and the Gilroy Unified School District (GUSD) have an established School Resource Officer (SRO) Program and partnership dating back to 1985. The SRO’s primary role in schools is to maintain school campus safety, build and support the well-being of youth, positive student and family engagement, safety training, and an on-site resource for students and staff in crisis.

Gilroy Unified School District has asked to renew the SRO program for FY27. Staff is requesting the City Council to authorize the City Administrator to execute a Memorandum of Understanding (MOU) between the City and GUSD to continue this partnership.

BACKGROUND

6.2. The SRO program consists of two police officers dedicated to the function of maintaining school campus safety. The officers are tenured officers who are specially trained and carefully selected with the participation of the GUSD Superintendent.

The MOU includes six best primary purposes for having police services on school campuses and adds to a balanced approach to provide a positive and safe school environment. The six principles of the SRO Program include:

1. Maintain a safe and secure campus for both students and staff.

2. Preserve life and property in a manner that promotes community.

3. Develop positive relationships with students, staff and community.

4. Support GUSD staff in securing and transporting of prohibited confiscated items that are illegal to have on campus under California State Law.

5. Divert youth away from the criminal justice system through Restorative Justice programming.

6. Connect youth with mental health behavior services.

ANALYSIS
GUSD staff presented to the GUSD Board on March 19, 2026, for the renewal of the FY27 MOU agreement and the GUSD Board approved the agreement. During the meeting, GUSD staff highlighted the ongoing collaboration between campus personnel and SROs, emphasizing their commitment to fostering student well-being, building trust, and ensuring a secure campus community.

Over the past four years, GUSD has conducted an annual survey to assess the perceptions of students, staff, and families regarding SROs on campus. The most recent survey findings indicate that 92.3% of respondents feel comfortable with the presence of an SRO, while 86.6% believe that having an SRO in schools contribute to a safer environment for students.

ALTERNATIVES
The Council may decide not to continue participating in a Memorandum of Understanding (MOU), but this is not advisable. If an incident occurs that requires law enforcement intervention, patrol officers will respond to the call for assistance from the school or school district. However, they will not be able to offer the additional services and benefits that a School Resource Officer (SRO) program typically provides as noted above.

FISCAL IMPACT/FUNDING SOURCE
This MOU would provide cost sharing with GUSD paying 50% of the two SRO’s cost.

The full salary of two SRO’s for FY27 is estimated at $587,939.98. GUSD’s portion of

6.2. the cost is $293,969.99.

The City’s SRO’s cost is included as part of the FY27 budget process as the SRO program will be staffed from the current officer workforce, which is funded out of the Police Department's budget within the General Fund (100). The reimbursement received as revenue is also deposited back into the General Fund.

PUBLIC OUTREACH
As referenced above, public outreach occurs as part of the GUSD community survey.

NEXT STEPS
Attachments:

1. MOU SRO FY27 -Draft

2. Attachment A FY27 SRO Program

MEMORANDUM OF UNDERSTANDING (MOU) BETWEEN THE GILROY UNIFIED

SCHOOL DISTRICT AND THE CITY OF GILROY FOR SCHOOL RESOURCE

OFFICERS
This MEMORANDUM OF UNDERSTANDING (MOU) (the “Agreement”) is entered into on BLANK (the “Effective Date”) by and between the Gilroy Unified School District (the “GUSD”) and the City of Gilroy (the “City”) (which may be referred to hereinafter individually as a “Party” and collectively referred to hereinafter as the “Parties”) to provide fiscal support for the School Resource Officers (the “SROs”) assigned to GUSD.

RECITALS
WHEREAS, the Parties desire to place two (2) SROs in service to the GUSD; and WHEREAS, the Parties have agreed to enter into this Agreement for the purpose of sharing the cost of two (2) SRO positions for the GUSD 2026-2027 fiscal year; and WHEREAS, GUSD agrees to reimburse the City for its share of the cost, and the purpose of this Agreement is to provide the duties and obligations of both Parties related to these SRO positions, and the terms and conditions for GUSD’s reimbursement to the City; and NOW THEREFORE, in consideration of the foregoing recitals, and the covenants and conditions contained herein, the Parties hereto agree as follows:

PURPOSE
The parties agree that there are six primary purposes for having police services on school campuses. They are to:

1. Maintain a safe and secure campus for both students and staff;

2. Preserve life and property in a manner which promotes community;

3. Develop positive relationships with students, staff, and the community;

4. Support GUSD staff in securing and transporting of prohibited confiscated items that are illegal to have on campus under California State law;

5. Divert youth away from the criminal justice system through restorative justice programming;

6. Connect youth with mental health behavior services.

1. Obligation of the Parties.
a. City: The City shall provide the GUSD with two (2) SROs during the 2026-2027 regular school year and with one (1) SRO during the 2026-2027 summer session. SRO’s shall attend Restorative Justice and Positive Behavioral Training.

i. During the regular school year, each SRO will be assigned to one of the two high schools located in Gilroy - Christopher High School or Gilroy High School, and will be primarily responsible for performing duties and obligations at the high school to which they are assigned, as well as the “feeder” middle and elementary schools associated with it. ii. During the regular school year, the SROs will provide coverage for each other, as needed, including without limitation, performing SRO duties at the school(s) for which the other officer is primarily responsible if the SRO primarily assigned to the school(s) is absent from work or preoccupied for an extended or indefinite period of time with a matter or matters that may require his or her immediate and full attention. iii. Consistent with their regular schedules when performing their general Gilroy Police officer duties, the SROs will each work a 4/10 plan. This means that each SRO will work for ten (10) hours per day, four (4) days per week. During the regular school year, their SRO schedules will be staggered so that every weekday will have at least one SRO providing coverage.

iv. The City will provide funding for the two (2) SROs salary throughout the GUSD 2026-2027 fiscal year, and will send an invoice to GUSD for its 50% share of the cost for the SROs at the end of the GUSD 2026-2027 fiscal year.
v. Should the employment of either or both of the SROs be terminated during the 2026-2027 school year, the City will provide substitute officers. vi. The City shall involve the current GUSD superintendent or designee in the process of interviewing and selecting SRO candidates.
vii. Any published job description for the SRO shall state bilingual in Spanish candidates are preferred.

b. GUSD: GUSD shall reimburse the City for 50% of each officer’s full annual salary for the 2026-2027 GUSD fiscal year (12 months), as calculated by the City, including the cost of any related benefits. GUSD agrees and understands that SROs are entitled to certain contractual rights pursuant to their collective bargaining agreement with the City, including, without limitation, employee breaks and paid time off. GUSD shall not interfere with or prevent the exercise of these rights. GUSD shall also provide Restorative Justice and Positive Behavioral training to the SROs.

2. Term. The term (the “Term”) of this Agreement will commence as of the Effective Date and will continue in effect through the GUSD 2026-2027 fiscal year, unless sooner terminated in accordance with the termination provisions provided in paragraph 6, below. Should the GUSD determine that it has sufficient funding to share the cost of the SRO officers for the 2027-2028 school year and desire to renew its commitment to share the cost of such positions, the GUSD

must provide notice to the City by April 30, 2027. The City may at its sole discretion extend this Agreement through the 2027-2028 fiscal year, after determining that the City has the funds to cover its share of the cost of such positions.

3. Reimbursement. GUSD’s reimbursement cost is based on the salary and benefits that each officer assigned to the GUSD would receive for performing their regular patrol duties, as described in the cost summary in “Attachment A” to this Agreement and prorated for the actual periods, which an SRO Officer position is assigned to the District. At the end of the Term, the City will provide the GUSD with an invoice for the GUSD’s share of the annual cost for the two SROs, to be paid in one lump sum payment or in multiple payments as agreed to in writing by both Parties. Should the City provide substitute officers per paragraph 1.a. above, the GUSD’s share of the cost will remain the same and continue to be based on the officer salaries and benefits as calculated per “Attachment A.”
The full annual salary of the two SROs is $587,939.98. GUSD’s portion of the cost is $293,969.99. The GUSD’s share of the cost covers the SROs’ on-campus duties and regular patrol duties, as determined by the Gilroy Police Department, performed during the GUSD 2026- 2027 school year.

4. Relationship. The relationship of the Parties is that of independent contractors. Nothing contained in this Agreement shall be construed to create any principal or agent relationship, partnership, joint venture, or participation in a joint or common undertaking, between the Parties.

The SROs are not employees of the GUSD and will at all times during the term of this Agreement remain under the direct control and command of the Gilroy Police Department. The City and its Police Department will supply all necessary equipment for the SROs for the performance of their SRO duties. The SROs may on an emergency basis be called away from their on-campus duties to perform regular duties during GUSD school operational hours, as needed.

5. Indemnification. Neither Party nor any officer, employee, official, or agent thereof is responsible for any injury, damage or liability occurring by reason of anything done or omitted to be done by the other Party under or in connection with any work, authority or jurisdiction arising under this Agreement. It is understood and agreed that each Party shall fully defend, indemnify and hold harmless the other Party and all of its officers, employees, officials, or agents thereof from all claims, suits or actions of every name, kind and description brought forth under, including, but not limited to, tortious, contractual, or other theories or assertions of liability occurring by reason of anything done or omitted to be done by the other Party, under this Agreement.

In addition, in lieu of and notwithstanding the pro rata risk allocation, which might otherwise be imposed between the Parties pursuant to Government Code Section 895.6, the Parties agree that all losses or liabilities incurred by a Party shall not be shared pro rata but, instead, the Parties agree that, pursuant to Government Code Section 895.4, each of the parties hereto shall fully indemnify and hold each of the other Parties, their officers, officials,

employees, and agents, harmless from any claim, expense or cost, damage or liability imposed for injury (as defined in Government Code Section 810.8) occurring by reason of the negligent acts or omissions or willful misconduct of the indemnifying Party, its officers, officials, employees, or agents, under or in connection with or arising out of any work, authority, or jurisdiction delegated to such Party under this Agreement. The obligations set forth in this paragraph will survive termination and expiration of this Agreement.

6. Termination. Either Party may terminate this Agreement for cause or convenience at any time upon giving thirty (30) days written notice to the other Party, in accordance with paragraph 7, below. Either Party’s failure to comply with the terms, conditions, or provisions of this Agreement may be grounds for termination upon thirty (30) days written notice by the other Party.

7. Notice. Any notices required or permitted hereunder shall be given to the appropriate party at the address specified below or at such other address as the Party shall specify in writing.

Such notice shall be deemed given upon personal delivery; or if sent by first class mail, postage prepaid, three (3) days after the date of mailing; or if sent by nationally recognized overnight carrier, on the date of receipt or refused receipt by the receiving party.

City:

City of Gilroy
Attn: Matt Morley
7351 Rosanna St.

Gilroy, CA 95020
GUSD:

Gilroy Unified School District
Attn: __________
7810 Arroyo Circle
Gilroy, CA 95020

8. Amendment. This Agreement may be amended only by mutual, written agreement executed by both Parties.

9. No Assignment. Neither this Agreement nor any portion shall be assigned by either Party, without prior written consent of the other Party.

10. Severability. If any provision of this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions shall nevertheless continue in full force without being impaired or invalidated in any way, except that if any of the obligations of the parties under paragraph 1, above, should be determined to be invalid, void, or unenforceable, then this Agreement shall terminate upon such final determination.

11. 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 will have any claim or right of action hereunder for any cause whatsoever.

12. 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 any and all actions or disputes arising out of this Agreement shall be in State and Federal courts located in Santa Clara County, California.

13. Counterparts. This Agreement may be signed in counterparts, each of which shall be deemed to be an original, but all of which taken together, shall constitute one and the same agreement.

14. Waiver. No waiver by either Party of any breach, default, or violation of any term, warranty, representation, agreement, covenant, condition, or provision hereof shall constitute a waiver of any subsequent breach, default, or violation of the same or any other term, warranty, representation, agreement, covenant, condition, or provision thereof. All waivers must be in writing and signed by the Party against whom enforcement of the waiver is sought. All remedies are cumulative, and the election to pursue less than all remedies shall not be a waiver of the right to pursue any remedy.

15. Entire Agreement. This Agreement, including any exhibits hereto, constitutes the entire Agreement between the Parties and supersedes any previous agreement, oral or written.

IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the day and year first written above.

ATTEST: CITY OF GILROY
______________________________ ______________________________ City Clerk City Administrator

APPROVED AS TO FORM: GILROY UNIFIED SCHOOL DISTRICT
______________________________ ______________________________ City Attorney District Superintendent
ATTEST: APPROVED AS TO FORM:

______________________________ ______________________________ District Clerk District General Counsel

Gilroy Police Department
School Resource Officer Program
Position:

Year:

EmplID: 873741 EmplID: 488126
Calculation Type Annual Annual
Base Salary 144,184.00
Benefits
169,416.20
155,904.91 118,434.87
Total Employee Cost 325,321.11 262,618.87
Grand Total Employee Cost 587,939.98
Gilroy Unified School District Contribution 293,969.99
REVENUE CODE: 1003010-47810 CHARGE CODE: PDSRO
Police Officer
Fiscal Year 2026-2027
Attachment A

6.3. City of Gilroy

STAFF REPORT
Agenda Item Title: Approve the Second Amendment for HydroScience Design Services Contract for Water Utility Improvements to increase by $175,395, for a New Total Not-to-exceed Amount of
$1,112,985
Meeting Date: April 20, 2026
From: Matt Morley, City Administrator
Department: Public Utilities
Submitted by: Karl Bjarke, Interim Public Utilities Director Prepared by: Karl Bjarke, Interim Public Utilities Director STRATEGIC PLAN GOALS: Maintain and Improve City Infrastructure

RECOMMENDATION

1. Approve the reallocation of $136,292 of Fiscal Year 2026 CIP funds from construction to design for the following project codes relating to Water Utility Improvements Project No. 24-RFP-PW-497: CIP # 800250; CIP # 800590; CIP # 800600; CIP # 800610; CIP # 800660; and CIP # 800890.

2. Approve a 2nd Amendment to the HydroScience Engineers, Inc. Agreement in the amount of $173,395 for Water Utility Improvements Project No. 24-RFP-PW497 and authorize the City Administrator to execute the amendment and associated documents.

EXECUTIVE SUMMARY
The Water Utility Improvements Project No. 24-RFP-PW-497 (Project) includes the design and preparation of bid documents for six individual water utility projects. The project is also identified as “Bundle 2” because it is composed of a set of smaller, distinct Capital Improvements Program (CIP) projects. HydroScience Engineers, Inc. was awarded the project design on February 5, 2024. The project is currently under design; however, several field issues have come to light, and, with the City's request for

6.3. more survey and investigative work, additional design services to complete the design are required. Proposed Amendment #2 adds $173,395 to the base contract. This is proposed to be paid from two sources: 1. Unused Optional Task work, and 2.

Reallocation of $136,292 of construction funds to design work. Executing Amendment #2 will exceed the previously approved Council-authorized amount for this Agreement.

It is requested that an additional $136,292 be applied from the Fiscal Year 2026 Construction fund to fully fund the cost of Amendment #2.

BACKGROUND
On February 5, 2024, the City awarded a design services agreement with HydroScience Engineers, Inc. for the design of Water Utility Improvements Project No. 24-RFP-PW497. The City Council approved an original contract amount of $842,790 with a contingency of $126,419. On May 27, 2025, the City executed Amendment #1 to add two project locations that require rehabilitation (water lines in Swanston Avenue and Casey Lane). Amendment #1 consumed $94,800 of contingency funding. All included after Amendment #1, the project is now set to rehabilitate water lines at six different locations in the City. All of these water lines have been identified as needing immediate repair or replacement.

As the field survey work has evolved, HydroScience has brought several matters to the City's attention that must be resolved to complete the design. These include:

1. Identifying the multiple water meters that will be affected during construction.

Services for customers will invariably be impacted at some point during construction, and it is vital to have a reliable accounting of meters in the field to minimize construction impacts. In addition, meters may need to be relocated to prevent damage.

2. Certain fire hydrants will need to be relocated to better align with the new water line installations.

3. Service lines to customer meters and fire hydrants will be replaced to meet City design standards.

4. Surveying work should include existing survey monuments to ensure the accuracy of horizontal and vertical locations of improvements. This requirement was not included in the original scope.

5. Certain sections of the construction contract specifications were provided later in the process, which required HydroScience to devote additional time to coordinating and integrating the full specifications package.

6. Following the staff's initial review and comments on HydroScience's design submittals, additional feedback was subsequently provided. This required HydroScience to pause ongoing work to address and incorporate the updated input into the design.

Collectively, these field conditions, scope clarifications, and iterative review comments have increased the effort required to deliver a comprehensive, constructible design package.

6.3. As a result, due to the inherent complexities associated with underground utility work and the potential for construction delays and claims, staff have undertaken a thorough review of design details to be incorporated into the construction documents. This enhanced level of review has resulted in additional coordination and design effort by HydroScience, necessitating the request for approval of Amendment No. 2. The additional design work is expected to reduce potential issues during construction and support a more efficient project delivery.

ANALYSIS
The design consulting firm, HydroScience Engineers, in collaboration with Utilities Department staff, has identified a range of issues that must be resolved before the final bid documents can be prepared. HydroScience provided a proposal to address these design needs. Staff has closely reviewed the proposal, negotiated the requested fee downward, and is now recommending the approval of Amendment #2 to keep the project moving forward.

ALTERNATIVES
The City Council could reject the proposed Amendment No. 2; however, this action is not recommended. Without the additional design effort, the project may be delayed or suspended. As the engineer of record for this project, HydroScience has a professional responsibility to ensure the adequacy of the design and may be unable to proceed if the current level of design is deemed inadequate.

FISCAL IMPACT/FUNDING SOURCE
The Utilities Department’s adopted FY 2026 Capital Improvement Program (CIP) includes $6,332,000 for six projects within the Water Improvements Projects (Bundle 2), all funded through Water Fund (705). These funds are already appropriated by the Council and support essential investments in the City’s water infrastructure To execute the proposed Amendment #2, an additional $136,292 is requested to be reallocated from the adopted FY 2026 CIP construction funding. Staff recommends rebalancing project budgets to reflect current project demands. Specifically, staff recommends reallocating a portion of existing construction funds tied to the six projects included in Project 24-RFP-PW-497 to design services. There are sufficient funds in each of the six projects to make the reallocation, and thus, no net impact or budget adjustment is necessary at this time. This adjustment will strengthen project readiness, improve cost control, and reduce the risk of construction delays.

6.3. PUBLIC OUTREACH
N/A

NEXT STEPS
Should the Council approve the actions recommended in this report, HydroScience will be directed to complete the bid documents for the project, and the City will be in a position to put the project out to bid.

Attachments:

1. Amend 2 - Water Improvement Project Final 3.21 SIGNED

2. Amendment No. 2 - 032426

-1-
SECOND AMENDMENT TO AGREEMENT WITH HYDROSCIENCE ENGINEERS, INC.

FOR DESIGN OF WATER UTILITY IMPROVEMENTS PROJECT NO. 24-RFP-PW-497 This the Second Amendment to the Agreement for Services (“First Amendment”) is made and entered into as of April 21, 2026 (“Effective Date”), by and between the City of Gilroy, a municipal corporation (“City”), and HydroScience Engineers (“Consultant”).

WHEREAS, the City and Consultant entered into that certain agreement entitled “Agreement For Services” for Project No. 24-RFP-PW-497, effective on February 26, 2024, hereinafter referred to as “Original Agreement”; and
WHEREAS, the City and Consultant executed a First Amendment to this Agreement on February 26, 2024 in an amount of $94,800 and including an amended term of February 1, 2027; and WHEREAS, City and Consultant have determined it is in their mutual interest to amend certain terms of the Original Agreement.

NOW, THEREFORE, for valuable consideration, the parties hereto agree as follows:

1. Article 1 (Term of Agreement) of the Original Agreement shall be amended to read as follows:

This Agreement will become effective on February 26, 2024 and will continue in effect through June 30, 2028 unless terminated in accordance with the provisions of Article 7 of this Agreement.

Any lapse in insurance coverage as required under Article 5, Section D of this Agreement shall terminate this Agreement regardless of any provision stated herein

2. Article 4 Compensation of the Original Agreement shall be further amended to read as follows:

A. Consideration
In consideration for the services to be performed by CONSULTANT, CITY agrees to pay CONSULTANT the amounts set forth in Exhibit “D”. The total compensation of the original amount shall increase by $175,395 for a new total amount not to exceed $1,112,985.

3. Exhibit “B” (Scope of Services) of the Original Agreement under Project Understanding shall be amended as follows
As identified in the March 24, 2026 letter from HydroScience, Subject: Amendment #2 – Water Utility Improvements Project, additional services include modifications to the plans to account for water meter locations and identification; relocation of certain water meters; replacement of fire hydrant laterals, revision to customer laterals, complete coordination of general specifications with technical specifications, extended project management and adjusted hourly rates for construction support due to extension in design timeline, and re-work of the preparation of 100% plans and specifications.

-2-

4. Exhibit “D” (Payment Schedule), as previously amended, shall be further amended to include:

Item No. Item Name Amount

1. 100% Draft PS&E $95,000

2. Bid Set PS&E $40,000

3. Extended Project Management $25,716

4. Additional Engineering Services (Bidding/Construction) $14,679 Total Fee Amendment Request $175,395

5. Except as expressly modified herein, all of the provisions of the Original Agreement and subsequent amendments shall remain in full force and effect. In the case of any inconsistencies between the Original Agreement, any subsequent amendments, and this Amendment, the terms of this Amendment shall control.

6. This Amendment may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

IN WITNESS WHEREOF, the parties have caused this Amendment to be executed as of the dates set forth besides their signatures below.

CITY OF GILROY HydroScience Engineers, Inc.

By: By:
[signature] [signature]
Matt Morley [employee name] [name]
City Administrator [title/department] [title]
Date: Date:

APPROVED AS TO FORM ATTEST:

City Attorney City Clerk
Curtis Lam
President
March 27, 2026

March 24, 2026
Karl Bjarke
Director of Public Works
City of Gilroy
[email protected]
Subject: Amendment #2 – Water Utility Improvements Project Dear Mr. Bjarke:

HydroScience has an existing agreement with the City dated February 26, 2024, in the amount of $842,790. Amendment No. 1 to this contract increased the compensation for this agreement to $937,590, and extended the agreement term to February 26, 2027.

Amendment No. 2 is required because of significant changes to the anticipated scope of work in our existing agreement and Amendment No. 1 with the City. Specifically, the out of scope work includes:
• Significant modifications and rework due to the type, number, and disposition of potable water meters connected to the pipeline to be replaced. HydroScience reviewed and edited meter records provided by the City two separate times, and the City updated its meter list a third time with the receipt of the 95% PS&E comments.
• City asked for several meters to be relocated to new locations, which is different than the original direction. Meters will need to be relocated to locations suitable to City staff, and we expect that a site walk or exact detailing by the City will be required for this update. • We cannot confirm what address is supplied by each meter. However, we will confirm that every parcel has a potable water lateral provided to it. • Certain hydrant laterals will also need to be replaced in total based on pipe material. A new hydrant schedule and details for full lateral replacement versus replacement up to the existing valve will need to be prepared.
• Selected customers will require design of the customer lateral downstream of the existing FCD or backflow preventer.
• The front end specifications were rewritten by the City between when they were originally provided to HydroScience and the receipt of comments on the 95% PS&E. Thus, HydroScience will need to update our review of the front ends and coordinate the new front end specifications with the rest of the contract documents. • HydroScience was provided standard general notes to use in the contract documents.

Significant updates to these notes were requested by the City. HydroScience will replace these notes with different notes and then make sure that content is not duplicated or conflicting with other portions of the Contract Documents.

• Significant delays occurred in the execution of the work prior to the preparation of the 35% PS&E (during 2024/early 2025), following submittal of the 30% PS&E, and following submittal of the 95% submittal. The current project schedule now will have design and construction occurring during 2026 or 2027, and project management and coordination services extending for a longer period than anticipated in the scope of work in the executed contract. These delays resulted in higher costs, in the form of higher billing rates, extended time to provide project management and oversight, and additional time required to coordinate and manage the project.

The end result of these changes is that the City and HydroScience both expect that completion of the work has been delayed. Due to the scale of the changes requested, and the timing of those changes, significant rework of effort that was already performed is required. We expect that this rework will result in the preparation of a 100% Draft PS&E submittal that incorporates the final disposition of comments received from the City. The Final comments received from the City will be adjusted based on discussions during 2026 between the City and HydroScience, and reconfirmed in a coordination meeting to be held between the City and HydroScience following approval of Amendment No. 2.

For the 100% Draft PS&E, HydroScience will submit PDFs of all plans, word copies of the specifications, and an excel copy of the estimate. Comments from the City should be provided either in one excel file encompassing the plans, specs, and estimate, or preferably as track changes in word and markups on the PDF. Comments on the estimate can be tracked separately. There will be no changes to the submittal types or format for the final stamped PS&E from the scope of the original contract.

Assumptions
• No additional utility locating or topographic surveying will be performed in response to any City comments. Pipeline materials and sizes for known abandoned pipelines will also not be identified.
• Laterals for gas, electricity, water, and sanitary sewer laterals will not be located on the profile. It is unlikely that all laterals are available on any plan, and only laterals that are shown on existing as-builts, laterals visible from the surface or existing survey, or new laterals that we will install, will be located.
• No plats or legals will be prepared for any required permanent or temporary construction easements.
• No anti-vandalism measures will be incorporated into the pipeline overcrossing the creek.

Budget and Schedule
Our proposed budget for this project is as follows:
100% Draft PS&E: $95,000.00
Bid Set PS&E: $40,000.00
Extended Project Management: $25,716.00
Additional Engineering Services – Bidding/Construction Phases: $14,679.12 Overall Amendment No. 2 Budget Request $175,395.12
We also expect that payment of the remaining balance not paid to HydroScience for Invoice Number 355002017 will be made, regardless of whether Amendment No. 2 is executed. This amount due is $3,703.

We expect that it will take between 8 to 10 weeks to complete the 100% Draft PS&E, following execution of Amendment No. 2. We expect one set of consolidated review comments to be provided by the City that incorporate all comments on the plans, specifications, and estimate, within four weeks of the receipt of the 100% Draft PS&E. The Bid Set PS&E will be returned to the City within three weeks of receipt of the 100% Draft PS&E comments, assuming no fundamental comments requiring a significant change to the design are required.

We are projecting that a project schedule for completion of the remaining work will be as follows:

Execution of Amendment No. 2 April 23, 2026
Start work on 100% Draft PS&E April 27, 2026
Submit 100% Draft PS&E June 30, 2026
Receive comments on 100% Draft PS&E July 27, 2026
Submit stamped PS&E August 17, 2026
Advertise project and award contract September – November 2026 Construct Project January 2027 – October 2027
Based on this schedule, we would propose that Amendment No. 2 extend the contract termination date to June 30, 2028. This would give ample time for the City to complete work on this contract without requiring our contract term to be extended by a subsequent amendment.

We are looking forward to completing this project and successfully putting this project into service. We thank the City for collaborating with us to resolve Amendment No. 2, and look forward to a mantra of ongoing collaboration and shared success as we move forward.

Should you have any questions about this amendment request, please feel free to contact me at (530) 848-3938 or [email protected].

Sincerely,

HYDROSCIENCE ENGINEERS
Curtis Lam, PE
President

6.4. City of Gilroy

STAFF REPORT
Agenda Item Title: Resolution of Intention to Renew the Gilroy Tourism Business Improvement District (GTBID)
Meeting Date: April 20, 2026
From: Matt Morley, City Administrator
Department: Economic Development
Submitted by: Raissa de la Rosa, Economic Development Director Prepared by: Victoria Valencia, Economic Development Manager, Raissa de la Rosa, Economic Development Director
STRATEGIC PLAN GOALS: Promote Economic Development Activities

RECOMMENDATION
Adopt the Resolution of Intention to Renew the Gilroy Tourism Business Improvement District (GTBID)

EXECUTIVE SUMMARY
The Resolution of Intention is the first step in a proposed renewal of the Gilroy Tourism Business Improvement District (GTBID), an existing benefit assessment district that funds targeted sales and marketing services. Specifically, adoption of this Resolution will trigger a public meeting on May 18, 2026, and a public hearing on June 15, 2026, on the renewal of the GTBID and the levy of assessments on certain lodging businesses. If renewed, the GTBID is projected to generate approximately $324,000 annually to support destination marketing, tourism promotion, and sales efforts that directly benefit the assessed businesses. The 2% GTBID is not a tax, but rather a "pass-through" fee that is added to a guest's bill as part of the overall room charges when staying at a qualifying lodging establishment.

BACKGROUND
A Tourism Business Improvement District (TBID) is a collaborative funding mechanism

6.4. by local lodging establishments to create a dedicated, locally controlled revenue stream to support programs that increase overnight stays and strengthen the city's tourism economy. A TBID is not a tax. Assessment districts are voluntarily approved and paid for by the participating businesses. Per industry standard, Gilroy's 2% TBID rate is added to a guest's bill in the same way other lodging surcharges appear as part of the overall room charges. The funds generated through a TBID are dedicated to programs that increase overnight stays, boost visitor spending, and strengthen the local tourism economy. After a 2% city administrative fee is deducted from the total funds remitted to the City, the remaining 98% of the funds are disbursed to Visit Gilroy for management and program implementation, which is also standard practice. TBID funds cannot be diverted for other government program use, and the funds are governed by those paying the assessment.

The City established the Gilroy Tourism Business Improvement District (GTBID) on September 17, 2012, through Resolution No. 2012-36, pursuant to the California Property and Business Improvement District Law of 1994 (94 Law), for an initial fiveyear term. The GTBID was subsequently renewed on October 17, 2016, by Resolution No. 2016-54 for an additional ten-year term as allowed by state law, and is set to conclude on December 31, 2027.

Gilroy's lodging business owners decided to pursue renewal of the GTBID to continue the revenue source devoted to marketing the City as a tourist, meeting and event destination. If renewed, the GTBID would generate approximately $324,000 on an annual basis. The renewed GTBID includes all lodging businesses with ten (10) rooms or more, existing and in the future, available for public occupancy located within the boundaries of the City of Gilroy. This ten-room threshold has been added to the new GTBID Management District Plan (Attachment 2) in addition to the continued exemption of recreational vehicle parks and vacation rentals. The previous Management Plans remained silent on room thresholds).

ANALYSIS
The GTBID is a benefit assessment district proposed, starting with the Resolution of Intention, to continue a revenue source to help fund marketing, promotion, and tourism development that benefits Gilroy lodging businesses. The assessment district includes all lodging businesses, existing and in the future, available for public occupancy located within the boundaries of the City of Gilroy. Not included in the assessment nor featured in GTBID programs are recreational vehicle parks and vacation rentals, nor loading establishments with fewer than 10 rooms.

Under the California Property and Business Improvement District Law of 1994, under which the GTBID is established, the maximum term for establishing or renewing a TBID is ten years. Gilroy's lodging business owners decided to pursue renewal of the GTBID in order to continue a revenue source devoted to marketing the City as a tourist, meeting and event destination. If renewed, the GTBID would generate approximately

6.4. $324,000 on an annual basis for promotion of travel and tourism specific to the City.

Tourism Business Improvement Districts
Tourism Business Improvement Districts (TBIDs) utilize the efficiencies of private sector operation in the market-based promotion of tourism. These special assessment districts allow assessed business owners to organize their efforts to increase tourism. Business owners within the TBID fund the TBID, and those funds are used to provide services that are desired by and benefit the assessed businesses within the TBID.

TBID Benefits:
• Funds cannot be diverted for other government programs; • They are customized to fit the needs of each destination; • They allow for a wide range of services; including: destination marketing, tourism promotion, and sales lead generation;
• They are designed, created and governed by those who will pay the assessment; and
• They provide a stable funding source for tourism promotion.

Management District Plan
The Management District Plan (Attachment 1) includes the proposed district boundary, the service plan and budget, and the means of governance. The GTBID will include all lodging businesses with ten rooms or more, existing and in the future, available for public occupancy located within the boundaries of the City, not including vacation rentals nor recreational vehicle parks.

The current annual assessment rate is two percent (2%) of gross short-term overnight room rental revenue. During the GTBID’s ten (10) year term, the assessment rate may be increased by the Gilroy Visitors Bureau, Inc. dba the Gilroy Welcome Center’s (GWC) Board to a maximum rate of five percent (5%) of gross room rental revenue for assessed lodging businesses. If the assessment rate is increased, it may subsequently be decreased, but shall not be decreased below a minimum of two percent (2%). The maximum increase or decrease in any year shall be two percent (2%). Based on the benefit received, assessments will not be collected on stays of more than thirty (30) consecutive days; and stays by any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty.

The renewed GTBID will have a ten (10) year term, beginning January 1, 2028, or as soon as possible thereafter, and ending ten (10) years from its start date.

The City will be responsible for collecting the assessment on a quarterly basis from each assessed business. The City shall forward the assessments to GWC, which will

6.4. have the responsibility of managing GTBID programs as provided in the Management District Plan. The City shall be paid a fee equal to two percent (2%) of the amount of assessment collected to cover its costs of collection and administration.

GTBID Renewal Process
April 20,
2026

RESOLUTION OF INTENTION HEARING
Upon the submission of a written petition, signed by the business owners in the renewed GTBID who will pay more than fifty percent (50%) of the assessments proposed to be levied, the City Council (Council) may initiate proceedings to renew the GTBID by the adoption of a resolution expressing its intention to renew the GTBID.

Petition Status
Petitions in favor of GTBID renewal were submitted by assessed businesses, which represent more than fifty percent (50%) of the total GTBID assessment. This majority petition allows the Council to initiate proceedings for GTBID renewal at the April 20, 2026, meeting.

No later
than
May 1,
2026
NOTICE
The 94 Law requires the City to mail written notice to the owners of all businesses proposed to be assessed within the GTBID. Mailing the notice begins a mandatory forty-five (45) day period in which assessed business owners may protest GTBID renewal.

May 18,
2026

PUBLIC MEETING
Allow public testimony on the renewal of the GTBID and levy of assessments. No Council action required.

June 15,
2026

FINAL PUBLIC HEARING
If written protests are received from the owners of businesses in the renewed GTBID which will pay fifty percent (50%) or more of the assessments proposed to be levied, and protests are not withdrawn so as to reduce the protests to less than fifty percent (50%), no further proceedings to levy the proposed assessment against such businesses shall be taken for a period of one (1) year from the date of the finding of a majority protest by the Council.

If the Council, following the public hearing, decides to establish the renewed GTBID, the Council shall adopt a Resolution of Formation.

ALTERNATIVES
The Council could choose not to adopt the Resolution of Intention. Staff does not

6.4. recommend this option.

FISCAL IMPACT/FUNDING SOURCE
None immediately. The City will receive a fee of two percent (2%) of the amount collected to cover its costs of administration. Because the GTBID programs are intended to increase visitation to the City, there may be an increase in transient occupancy tax and sales tax collections.

PUBLIC OUTREACH
Outreach and discussions have been conducted directly with the lodging establishments subject to this assessment.

NEXT STEPS
If adopted, staff will move forward with the GTBID renewal process.

Attachments:

1. Management District Plan GTBID 10-31-25 Final

2. Item 6.4 Resolution of Intent GTBID

3. Gilroy TBID Signed Petition Packet

2028-2037

GILROY TOURISM BUSINESS

IMPROVEMENT DISTRICT

MANAGEMENT DISTRICT PLAN
Prepared pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq.

October 31, 2025

Table of Contents
I. OVERVIEW.................................................................................................................................................3 II. BACKGROUND ..........................................................................................................................................5 III. BOUNDARY ...............................................................................................................................................6 IV. ASSESSMENT BUDGET AND SERVICES ..............................................................................................7 A. ANNUAL SERVICE PLAN ...................................................................................................................................7 B. ANNUAL BUDGET ............................................................................................................................................8 C. CALIFORNIA CONSTITUTIONAL COMPLIANCE ..................................................................................................9 D. ASSESSMENT...................................................................................................................................................11 E. INTEREST AND OVERDUE CHARGES...............................................................................................................12 F. TIME AND MANNER FOR COLLECTING ASSESSMENTS ....................................................................................12 V. GOVERNANCE........................................................................................................................................ 13 A. OWNERS’ ASSOCIATION..................................................................................................................................13 B. BROWN ACT AND CALIFORNIA PUBLIC RECORDS ACT COMPLIANCE..............................................................13 C. ANNUAL REPORT ...........................................................................................................................................13 APPENDIX 1 – LAW.......................................................................................................................................... 14 APPENDIX 2 – ASSESSED BUSINESSES* ..................................................................................................... 26 Prepared by
Civitas
(800)999-7781
www.civitasadvisors.com

GTBID Management District Plan 3
October 31, 2025
I. OVERVIEW
Developed by Gilroy lodging businesses and Gilroy Visitors Bureau, Inc. dba the Gilroy Welcome Center (GWC), the Gilroy Tourism Business Improvement District (GTBID) is an assessment district proposed to continue to provide specific benefits to payors by funding Sales and Marketing promotion efforts for assessed lodging businesses. This approach has been used successfully in other destination areas throughout the country to provide the benefit of additional room night sales directly to payors.

The GTBID was initially created in 2012 for a five (5) year term and was subsequently renewed in 2018 for a ten (10) year term. Lodging businesses and the GWC now wish to renew the GTBID for an additional ten (10) year term.

Location: The renewed GTBID includes all lodging businesses with ten (10) rooms or more, existing and in the future, available for public occupancy located within the boundaries of the City of Gilroy (City), as shown on the map in Section III.

Services: The GTBID is designed to provide specific benefits directly to payors by increasing awareness and demand for room night sales. Sales and Marketing promotions, and other improvements and activities set forth in this Management District Plan (Plan), will increase demand for overnight tourism and market payors as tourist, meeting and event destinations, thereby increasing demand for room night sales.

Budget: The total GTBID annual assessment budget for the initial year of its ten (10) year operation is anticipated to be approximately $324,000. This assessment budget is expected to fluctuate as room sales do, as businesses open and close, and if the assessment rate is increased or decreased pursuant to this Plan.

Cost: The initial annual assessment rate is two percent (2%) of gross short-term sleeping room rental revenue. During the GTBID’s ten (10) year term, the assessment rate may be increased by the GWC’s Board to a maximum rate of five percent (5%) of gross short-term sleeping room rental revenue for assessed lodging businesses. If the assessment rate is increased, it may subsequently be decreased, but shall not be decreased below a minimum of two percent (2%) of gross short-term sleeping room rental revenue. The maximum increase or decrease in any year shall be two percent (2%). Based on the benefit received, assessments will not be collected on stays of more than thirty (30) consecutive days; and stays by any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty. ………………………………………………………………………………………..

Collection: The City will be responsible for collecting the assessment on a quarterly basis (including any delinquencies, interest, and overdue charges) from each assessed lodging business located in the boundaries of the GTBID. The City shall take all reasonable efforts to collect the assessments from each assessed lodging business.

Duration: The renewed GTBID will have a ten (10) year life, beginning January 1, 2028 through December 31, 2037. After ten (10) years, the GTBID may be renewed pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq. (94 Law) if assessed lodging business owners support continuing the GTBID programs. Once per year, beginning on the

GTBID Management District Plan 4
October 31, 2025
anniversary of district renewal, there is a 30-day period in which owners paying more than fifty percent (50%) of the assessment may protest and initiate a City Council hearing on district termination.

Management: The GWC shall continue to serve as the GTBID’s Owners’ Association. The Owners’ Association is charged with managing funds and implementing programs in accordance with this Plan and must provide annual reports to the City Council.

GTBID Management District Plan 5
October 31, 2025
II. BACKGROUND
TBIDs are an evolution of the traditional Business Improvement District. The first TBID was formed in West Hollywood, California in 1989. Since then, over 100 California destinations have followed suit. In recent years, other states have begun adopting the California model –Illinois, Minnesota, Massachusetts, Montana, South Dakota, Washington, Colorado, Texas and Louisiana have adopted TBID laws. Several other states are in the process of adopting their own legislation. The cities of Wichita, Kansas and Newark, New Jersey used an existing business improvement district law to form a TBID. Additionally, some cities, like Portland, Oregon and Memphis, Tennessee have utilized their home rule powers to create TBIDs without a state law.

California’s TBIDs collectively raise over
$300 million annually for local destination
marketing. With competitors raising their
budgets, and increasing rivalry for visitor
dollars, it is important that Gilroy lodging
businesses continue to invest in stable,
commerce-specific marketing programs.

TBIDs utilize the efficiencies of private
sector operation in the market-based
promotion of tourism districts. TBIDs allow
tourism business owners to organize their
efforts to increase commerce. Lodging
business owners within the TBID pay an
assessment and those funds are used to
provide services that increase commerce.

In California, most TBIDs are formed pursuant to the Property and Business Improvement District Law of 1994. This law allows for the creation of a benefit assessment district to raise funds within a specific geographic area. The key difference between TBIDs and other benefit assessment districts is that funds raised are returned to the private non-profit corporation governing the district.

There are many benefits to TBIDs:
• Funds must be spent on services and improvements that provide a specific benefit only to those who pay;
• Funds cannot be diverted to general government programs; • They are customized to fit the needs of payors in each destination; • They allow for a wide range of services;
• They are designed, created and governed by those who will pay the assessment; and • They provide a stable, long-term funding source for tourism promotion. 0 20
40 60
80 100
120
Number of Districts
Operating in California

GTBID Management District Plan 6
October 31, 2025
III. BOUNDARY
The GTBID will include all lodging businesses with ten (10) rooms or more, existing and in the future, available for public occupancy within the boundaries of the City of Gilroy, as shown in the map below.

Lodging business means: any structure, or any portion of any structure, which is occupied or intended for occupancy by transients for dwelling, lodging or sleeping purposes, and includes any hotel, inn, or motel. Recreational vehicle parks and vacation rentals will not: be included in the GTBID; pay the GTBID assessment; or be featured in GTBID programs.

A complete listing of assessed lodging businesses within the renewed GTBID can be found in Appendix 2.

GTBID Management District Plan 7
October 31, 2025
IV. ASSESSMENT BUDGET AND SERVICES
A. Annual Service Plan
Assessment funds will be spent to provide specific benefits conferred or privileges granted directly to the payors that are not provided to those not charged, and which do not exceed the reasonable cost to the City of conferring the benefits or granting the privileges. The privileges and services provided with the GTBID funds are Sales and Marketing programs, and other improvements and activities set forth in this Plan, available only to assessed lodging businesses.

A service plan assessment budget has been developed to deliver services that benefit the assessed lodging businesses. A detailed annual assessment budget will be developed and approved by the GWC Board. The chart below illustrates the initial annual assessment budget allocations. These activities and allocations will also apply in subsequent years. The total initial assessment budget is estimated to be $365,000.

Although actual revenues will fluctuate due to market conditions, the proportional allocations of the budget shall remain the same. However, the GWC Board shall have the authority to adjust budget allocations between the categories by no more than fifteen percent (15%) of the total budget per year.

A description of the proposed improvements and activities for the initial year of operation is below.

The same activities are proposed for subsequent years. In the event of a legal challenge against the GTBID, any and all assessment funds may be used for the costs of defending the GTBID.

Each budget category includes all costs related to providing that service. For example, the Sales and Marketing budget includes the cost of staff time dedicated to overseeing and implementing the Sales and Marketing program. Staff time dedicated purely to administrative tasks is allocated to the administrative portion of the budget. The costs of an individual staff member may be allocated to multiple budget categories. The staffing levels necessary to provide the services below will be determined by the GWC on an as-needed basis.

Sales &
Marketing,
$259,200
80%
Administration,
$42,120
13%
Contingency/Reserve,
$16,200
5%
City Collection Fee,
$6,480
2%

INITIAL ANNUAL ASSESSMENT BUDGET -
$324,000

GTBID Management District Plan 8
October 31, 2025
Sales and Marketing
A Sales and Marketing program will promote assessed lodging businesses as tourist, meeting, and event destinations. The Sales and Marketing program will have a central theme of promoting Gilroy as a desirable place for overnight visits. The program will have the goal of increasing overnight visitation and room night sales at assessed lodging businesses, and may include the following activities:
• Internet marketing efforts to increase awareness and optimize internet presence to drive overnight visitation and room sales to assessed lodging businesses; • Print ads in magazines and newspapers, television ads, and radio ads targeted at potential visitors to drive overnight visitation and room sales to assessed lodging businesses; • Social media marketing efforts designed to drive overnight visitation and room sales to assessed lodging businesses;
• Attendance of trade and consumer shows to promote assessed lodging businesses; • Sales blitzes for assessed lodging businesses;
• Familiarization tours of assessed lodging businesses; • Preparation and production of collateral promotional materials such as brochures, flyers and maps featuring assessed lodging businesses;
• Attendance of professional industry conferences and affiliation events to promote assessed lodging businesses;
• Lead generation activities designed to attract tourists and group events to assessed lodging businesses;
• Director of Sales and General Manager meetings to plan and coordinate tourism promotion efforts for assessed lodging businesses; and
• Development and maintenance of a website designed to promote assessed lodging businesses.

Administration and Operations
The administration and operations portion of the budget shall be utilized for administrative staffing costs, office costs, advocacy and other general administrative costs such as insurance, legal, and accounting fees.

City Collection Fee
The City of Gilroy shall be paid a fee equal to two percent (2%) of the amount of assessment collected to cover its costs of collection and administration.

Contingency/Reserve
The budget includes a contingency line item to account for uncollected assessments, if any. If there are contingency funds collected, they may be held in a reserve fund or utilized for other program, administration, or renewal costs at the discretion of the Owners’ Association. Policies relating to contributions to the reserve fund, the target amount of the reserve fund, and expenditure of monies from the reserve fund shall be set by the Board of Directors of the Owners’ Association. The reserve fund may be used for the costs of renewing the GTBID.

B. Annual Budget
The total ten (10) year assessment budget is projected at approximately $324,000 annually, or a total of $7,452,000 through the ten (10) year term of the GTBID if the maximum assessment rate increases are adopted. This budget is expected to fluctuate as room sales do, as businesses open and close, and if the assessment rate is increased or decreased pursuant to this Plan.

GTBID Management District Plan 9
October 31, 2025
The initial annual assessment rate is two percent (2%) of gross short-term sleeping room rental revenue. During the GTBID’s ten (10) year term, the assessment rate may be increased by the GWC’s Board to a maximum rate of five percent (5%) of gross short-term sleeping room rental revenue for assessed lodging businesses. If the assessment rate is increase, it may subsequently be decreased, but shall not be decreased below a minimum of two percent (2%) of gross short-term sleeping room rental revenue. The maximum increase or decrease in any year shall be two percent (2%).

The table below demonstrates the estimated maximum budget with the assumption that the assessment rate will be increased at the earliest opportunity as it is a required disclosure, it is not the anticipated course of action. Alternate courses of action may be taken in regard to implementing the assessment rate increase other than what is demonstrated in the chart below, within the parameters of this Plan.

Estimated Annual Budget if Maximum Assessment Rates Are Adopted 2028-2037
Year
Sales &
Marketing 80%
Administration
13%
Contingency/
Reserve 5%
City Collection
Fee 2% Total
2028 $259,200 $42,120 $16,200 $6,480 $324,000
2029 $518,400 $84,240 $32,400 $12,960 $648,000
2030 $648,000 $105,300 $40,500 $16,200 $810,000
2031 $648,000 $105,300 $40,500 $16,200 $810,000
2032 $648,000 $105,300 $40,500 $16,200 $810,000
2033 $648,000 $105,300 $40,500 $16,200 $810,000
2034 $648,000 $105,300 $40,500 $16,200 $810,000
2035 $648,000 $105,300 $40,500 $16,200 $810,000
2036 $648,000 $105,300 $40,500 $16,200 $810,000
2037 $648,000 $105,300 $40,500 $16,200 $810,000
Total $5,961,600 $968,760 $372,600 $149,040 $7,452,000
C. California Constitutional Compliance
The GTBID assessment is not a property-based assessment subject to the requirements of Proposition 218. Courts have found Proposition 218 limited the term ‘assessments’ to levies on real property.1 Rather, the GTBID assessment is a business-based assessment, and is subject to Proposition 26.

Pursuant to Proposition 26 all levies are a tax unless they fit one of seven exceptions. Two of these exceptions apply to the GTBID a “specific benefit” and a “specific government service.” Both require that the costs of benefits or services do not exceed the reasonable costs to the City of conferring the benefits or providing the services.

1. Specific Benefit
Proposition 26 requires that assessment funds be expended on, “a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege.”2 The services in this Plan are designed to provide targeted benefits directly to assessed lodging businesses, and are intended only to provide benefits and services directly to those businesses paying the assessment. These services are tailored not to serve the general public, businesses in general, 1 Jarvis v. the City of San Diego 72 Cal App. 4th 230
2 Cal. Const. art XIII C § 1(e)(1)

GTBID Management District Plan 10
October 31, 2025
or parcels of land, but rather to serve the specific businesses within the GTBID. The activities described in this Plan are specifically targeted to increase demand for room night sales for assessed lodging businesses within the boundaries of the GTBID, and are narrowly tailored. GTBID funds will be used exclusively to provide the specific benefit of increased demand for room night sales directly to the assessees. Assessment funds shall not be used to feature non-assessed lodging businesses in GTBID programs, or to directly generate sales for non-assessed lodging businesses. The activities paid for from assessment revenues are business services constituting and providing specific benefits to the assessed lodging businesses. Nothing in this Plan limits the ability of the Owners’ Association to enter into private contracts with non-assessed lodging businesses for the provision of services to those businesses.

The assessment imposed by this GTBID is for a specific benefit conferred directly to the payors that is not provided to those not charged. The specific benefit conferred directly to the payors is an increase in demand for room night sales. The specific benefit of an increase in demand for room night sales for assessed lodging businesses will be provided only to lodging businesses paying the district assessment, with Marketing and Sales programs promoting lodging businesses paying the GTBID assessment. The Marketing and Sales programs will be designed to increase room night sales at each assessed lodging businesses. Because they are necessary to provide the Marketing and Sales programs that specifically benefit the assessed lodging businesses, the administration and contingency services also provide the specific benefit of increased demand for room night sales to the assessed lodging businesses.

Although the GTBID, in providing specific benefits to payors, may produce incidental benefits to non-paying businesses, the incidental benefit does not preclude the services from being considered a specific benefit. The legislature has found that, “A specific benefit is not excluded from classification as a ‘specific benefit’ merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the payor as a consequence of providing the specific benefit to the payor.”3

2. Specific Government Service
The assessment may also be utilized to provide, “a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product.”4 The legislature has recognized that marketing and promotions services like those to be provided by the GTBID are government services within the meaning of Proposition 265. Further, the legislature has determined that “a specific government service is not excluded from classification as a ‘specific government service’ merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the payor as a consequence of providing the specific government service to the payor.”6

3. Reasonable Cost
GTBID services will be implemented carefully to ensure they do not exceed the reasonable cost of such services. The full amount assessed will be used to provide the services described herein. Funds will be managed by the GWC, and reports submitted on an annual basis to the City. Only assessed lodging businesses will be featured in marketing materials, receive sales leads generated from GTBIDfunded activities, be featured in advertising campaigns, and benefit from other GTBID-funded services. The assessed lodging business list was compiled from records provided by the jurisdiction 3 Government Code § 53758(a)
4 Cal. Const. art XIII C § 1(e)(2)
5 Government Code § 53758(b)
6 Government Code § 53758(b)

GTBID Management District Plan 11
October 31, 2025
and complies with the requirements of the 94 Law. Pursuant to Streets and Highways Code Section 36615, the City Council’s determination of ownership is final and conclusive, with no obligation to obtain other information. Non-assessed lodging businesses will not receive these, nor any other, GTBID-funded services and benefits.

The GTBID-funded programs are targeted directly to benefit assessed lodging businesses. It is, however, possible that there will be a spill over benefit to non-assessed lodging businesses. If nonassessed lodging businesses receive incremental room nights, that portion of the promotion or program generating those room nights shall be paid with non-GTBID funds. GTBID funds shall only be spent to benefit the assessed lodging businesses, and shall not be spent on that portion of any program which directly generates incidental room nights for non-assessed lodging businesses.

D. Assessment
The initial annual assessment rate is two percent (2%) of gross short-term sleeping room rental revenue. During the GTBID’s ten (10) year term, the assessment rate may be increased by the GWC’s Board to a maximum rate of five percent (5%) of gross short-term sleeping room rental revenue for assessed lodging businesses. If the assessment rate is increased, it may subsequently be decreased, but shall not be decreased below a minimum of two percent (2%) of gross short-term sleeping room rental revenue. The maximum increase or decrease in any year shall be two percent (2%). Based on the benefit received, assessments will not be collected on stays of more than thirty (30) consecutive days; and stays by any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty.

Any assessment increase or decrease authorized by the GWC’s Board pursuant to this Plan shall be included in the Annual Report described in Section V(C), and approved by the Gilroy City Council during the fiscal year annual report review. Thereafter, the assessment increase or decrease will be effective starting the following fiscal year.

The assessment was calculated based on the total cost of the activities to be provided for the benefit of the businesses within the GTBID, with costs allocated based on the proportional benefit conferred to each business. Activities funded by the GTBID, are specifically targeted to increase room nights at assessed lodging businesses. All room night sales do not represent the same benefit to the payors.

For example, a higher priced room night is of greater benefit than a lower priced room night because the assessee derives greater revenue. To account for this benefit differential and to make sure the benefits are proportional, an assessment formula based on a percentage of revenue has been selected.

The proposed formula accurately reflects greater benefit to assessed lodging businesses with higher priced room nights.

The term “gross short-term sleeping room rental revenue” as used herein means: the consideration charged on the room rate for the occupancy of space in a lodging business valued in money, not including other charges such as reservation fees, forfeited deposits, cancelation fees, attrition fees, noshow fees, parking fees, internet fees, roll-a-way beds fees, early and/or late checkout fees, or any other charges or fees (existing or in the future). Gross sleeping room rental revenue shall not include, and therefore the assessment shall not be charged upon, any federal, state or local taxes collected, including but not limited to transient occupancy taxes.

The assessment is levied upon and is a direct obligation of the assessed lodging business. However, the assessed lodging business may, at its discretion, pass the assessment on to transients. The amount of assessment, if passed on to each transient, shall be disclosed in advance and separately stated from the amount of rent charged and any other applicable taxes, and each transient shall receive a receipt

GTBID Management District Plan 12
October 31, 2025
for payment from the business. If the GTBID assessment is identified separately it shall be disclosed as the “GTBID Assessment.” The assessment is imposed solely upon, and is the sole obligation of the assessed lodging business even if it is passed on to transients. The assessment shall not be considered revenue for calculation of transient occupancy taxes.

Bonds shall not be issued.

E. Interest and Overdue Charges
The GTBID shall reimburse the City for any costs associated with collecting unpaid assessments. If sums in excess of the delinquent GTBID assessment are sought to be recovered in the same collection action by the City, the GTBID shall bear its pro rata share of such collection costs. Assessed lodging businesses which are delinquent in paying the assessment shall be responsible for paying:

1. Original Delinquency: Any lodging business that fails to remit any assessment imposed within the time required shall pay an overdue charge of ten percent (10%) of the amount of the assessment in addition to the amount of the assessment.

2. Continued Delinquency: Any lodging business that fails to remit any delinquent remittance on or before a period of thirty (30) days following the date on which the remittance first became delinquent shall pay a second delinquency overdue charge of ten percent (10%) of the amount of the assessment in addition to the amount of the assessment and the ten percent (10%) overdue charge first imposed.

3. Fraud: If the City determines that the non-payment of any remittance due is due to fraud, an overdue charge of twenty-five percent (25%) of the amount of the assessment shall be added thereto in addition to the overdue charges stated in subsections 1 and 2 of this section E.

4. Interest: In addition to the overdue charges imposed, any lodging business that fails to remit any assessment imposed shall pay interest at the rate of eighteen percent (18%) per annum.

The interest shall be calculated per month or fraction thereof on the amount of the assessment and overdue charges, from the date on which the remittance first became delinquent until paid.

5. Overdue Charges Merged with Assessment: Every overdue charge imposed and such interest as accrues shall become part of the assessment herein required to be paid.

Upon collection of delinquent assessments, overdue charges and interest, the City shall retain the overdue charges and interest to cover the costs of collection and shall forward the original assessment amount to the GWC.

F. Time and Manner for Collecting Assessments
The GTBID assessment will be implemented beginning January 1, 2028 through December 31, 2037.

The City will be responsible for collecting the assessment on a quarterly basis (including any delinquencies, interest and overdue charges) from each assessed lodging business. The City shall take all reasonable efforts to collect the assessments from each assessed lodging business. The City shall forward the assessments collected to the Owners’ Association within thirty (30) days of receipt.

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V. GOVERNANCE
A. Owners’ Association
The City Council, through adoption of this Plan, has the right, pursuant to Streets and Highways Code §36651, to identify the body that shall implement the proposed program, which shall be the Owners’ Association of the GTBID as defined in Streets and Highways Code §36612. The City Council has determined that GWC will continue to serve as the Owners’ Association for the GTBID.

B. Brown Act and California Public Records Act Compliance An Owners’ Association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. The Owners’ Association is, however, subject to government regulations relating to transparency, namely the Ralph M. Brown Act and the California Public Records Act. These regulations are designed to promote public accountability. The Owners’ Association acts as a legislative body under the Ralph M. Brown Act (Government Code §54950 et seq.). Thus, meetings of the GWC Board and certain committees must be held in compliance with the public notice and other requirements of the Brown Act.

Accordingly, the Owners’ Association shall publicly report any action taken and the vote or abstention on that action of each member present for the action. The Owners’ Association is also subject to the record keeping and disclosure requirements of the California Public Records Act.

C. Annual Report
The GWC shall present an annual report at the end of each year of operation to the City Council pursuant to Streets and Highways Code §36650 (see Appendix 1). The annual report shall include:
• Any proposed changes in the boundaries of the improvement district or in any benefit zones or classification of businesses within the district.
• The improvements and activities to be provided for that fiscal year. • An estimate of the cost of providing the improvements and the activities for that fiscal year. • The method and basis of levying the assessment in sufficient detail to allow each business owner to estimate the amount of the assessment to be levied against his or her business for that fiscal year.
• The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year.
• The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part.

D. Annual Review
The City may review the financial records of the Owners’ Association. A contract shall be entered into between the City and the Owners’ Association. The contract will document the accounting processes including collections, allocations, and reporting required to be submitted to the City. The GTBID will be responsible for reasonable costs associated with the review. In the event of fraudulent activity, the GTBID will be responsible for all costs associated with the review.

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APPENDIX 1 – LAW
CURRENT THROUGH ALL LEGISLATION OF THE 2024 REGULAR AND SPECIAL SESSIONS

STREETS AND HIGHWAYS CODE
DIVISION 18. PARKING
PART 7. PROPERTY AND BUSINESS IMPROVEMENT DISTRICT LAW OF 1994 CHAPTER 1. General Provisions
ARTICLE 1. Declarations
36600. Citation of part

This part shall be known and may be cited as the “Property and Business Improvement District Law of 1994.” 36601. Legislative findings and declarations; Legislative guidance

The Legislature finds and declares all of the following:
(a) Businesses located and operating within business districts in some of this state’s communities are economically disadvantaged, are underutilized, and are unable to attract customers due to inadequate facilities, services, and activities in the business districts. (b) It is in the public interest to promote the economic revitalization and physical maintenance of business districts in order to create jobs, attract new businesses, and prevent the erosion of the business districts. (c) It is of particular local benefit to allow business districts to fund business related improvements, maintenance, and activities through the levy of assessments upon the businesses or real property that receive benefits from those improvements.
(d) Assessments levied for the purpose of conferring special benefit upon the real property or a specific benefit upon the businesses in a business district are not taxes for the general benefit of a city, even if property, businesses, or persons not assessed receive incidental or collateral effects that benefit them. (e) Property and business improvement districts formed throughout this state have conferred special benefits upon properties and businesses within their districts and have made those properties and businesses more useful by providing the following benefits:
(1) Crime reduction. A study by the Rand Corporation has confirmed a 12-percent reduction in the incidence of robbery and an 8-percent reduction in the total incidence of violent crimes within the 30 districts studied.
(2) Job creation.
(3) Business attraction.
(4) Business retention.
(5) Economic growth.
(6) New investments.
(f) With the dissolution of redevelopment agencies throughout the state, property and business improvement districts have become even more important tools with which communities can combat blight, promote economic opportunities, and create a clean and safe environment. (g) Since the enactment of this act, the people of California have adopted Proposition 218, which added Article XIII D to the Constitution in order to place certain requirements and restrictions on the formation of, and activities, expenditures, and assessments by property-based districts. Article XIII D of the Constitution provides that property-based districts may only levy assessments for special benefits. (h) The act amending this section is intended to provide the Legislature’s guidance with regard to this act, its interaction with the provisions of Article XIII D of the Constitution, and the determination of special benefits in property-based districts.
(1) The lack of legislative guidance has resulted in uncertainty and inconsistent application of this act, which discourages the use of assessments to fund needed improvements, maintenance, and activities in property-based districts, contributing to blight and other underutilization of property. (2) Activities undertaken for the purpose of conferring special benefits upon property to be assessed inherently produce incidental or collateral effects that benefit property or persons not assessed. Therefore, for special benefits to exist as a separate and distinct category from general benefits, the incidental or collateral effects of those special benefits are inherently part of those

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special benefits. The mere fact that special benefits produce incidental or collateral effects that benefit property or persons not assessed does not convert any portion of those special benefits or their incidental or collateral effects into general benefits. (3) It is of the utmost importance that property-based districts created under this act have clarity regarding restrictions on assessments they may levy and the proper determination of special benefits. Legislative clarity with regard to this act will provide districts with clear instructions and courts with legislative intent regarding restrictions on property-based assessments, and the manner in which special benefits should be determined.
36602. Purpose of part

The purpose of this part is to supplement previously enacted provisions of law that authorize cities to levy assessments within property and business improvement districts, to ensure that those assessments conform to all constitutional requirements and are determined and assessed in accordance with the guidance set forth in this act.

This part does not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes. 36603. Preemption of authority or charter city to adopt ordinances levying assessments

Nothing in this part is intended to preempt the authority of a charter city to adopt ordinances providing for a different method of levying assessments for similar or additional purposes from those set forth in this part. A property and business improvement district created pursuant to this part is expressly exempt from the provisions of the Special Assessment Investigation, Limitation and Majority Protest Act of 1931 (Division 4 (commencing with Section 2800)).
36603.5. Part prevails over conflicting provisions

Any provision of this part that conflicts with any other provision of law shall prevail over the other provision of law, as to districts created under this part.
36604. Severability

This part is intended to be construed liberally and, if any provision is held invalid, the remaining provisions shall remain in full force and effect. Assessments levied under this part are not special taxes.

ARTICLE 2. Definitions
36606. “Activities”

“Activities” means, but is not limited to, all of the following that benefit businesses or real property in the district:
(a) Promotion of public events.
(b) Furnishing of music in any public place.
(c) Promotion of tourism within the district.
(d) Marketing and economic development, including retail retention and recruitment. (e) Providing security, sanitation, graffiti removal, street and sidewalk cleaning, and other municipal services supplemental to those normally provided by the municipality. (f) Other services provided for the purpose of conferring special benefit upon assessed real property or specific benefits upon assessed businesses located in the district. 36606.5. “Assessment”

“Assessment” means a levy for the purpose of acquiring, constructing, installing, or maintaining improvements and providing activities that will provide certain benefits to properties or businesses located within a property and business improvement district.
36607. “Business”

“Business” means all types of businesses and includes financial institutions and professions.

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36608. “City”

“City” means a city, county, city and county, or an agency or entity created pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code, the public member agencies of which includes only cities, counties, or a city and county, or the State of California. 36609. “City council”

“City council” means the city council of a city or the board of supervisors of a county, or the agency, commission, or board created pursuant to a joint powers agreement and which is a city within the meaning of this part. 36609.4. “Clerk”

“Clerk” means the clerk of the legislative body.
36609.5. “General benefit”

“General benefit” means, for purposes of a property-based district, any benefit that is not a “special benefit” as defined in Section 36615.5.
36610. “Improvement”

“Improvement” means the acquisition, construction, installation, or maintenance of any tangible property with an estimated useful life of five years or more including, but not limited to, the following:
(a) Parking facilities.
(b) Benches, booths, kiosks, display cases, pedestrian shelters and signs. (c) Trash receptacles and public restrooms.
(d) Lighting and heating facilities.
(e) Decorations.
(f) Parks.
(g) Fountains.
(h) Planting areas.
(i) Closing, opening, widening, or narrowing of existing streets. (j) Facilities or equipment, or both, to enhance security of persons and property within the district. (k) Ramps, sidewalks, plazas, and pedestrian malls.
(l) Rehabilitation or removal of existing structures.
36611. “Management district plan”; “Plan”

“Management district plan” or “plan” means a proposal as defined in Section 36622. 36612. “Owners’ association”

“Owners’ association” means a private nonprofit entity that is under contract with a city to administer or implement improvements, maintenance, and activities specified in the management district plan. An owners’ association may be an existing nonprofit entity or a newly formed nonprofit entity. An owners’ association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. Notwithstanding this section, an owners’ association shall comply with the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5 of the Government Code), at all times when matters within the subject matter of the district are heard, discussed, or deliberated, and with the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code), for all records relating to activities of the district. 36614. “Property”

“Property” means real property situated within a district.

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36614.5. “Property and business improvement district”; “District”

“Property and business improvement district,” or “district,” means a property and business improvement district established pursuant to this part.
36614.6. “Property-based assessment”

“Property-based assessment” means any assessment made pursuant to this part upon real property. 36614.7. “Property-based district”

“Property-based district” means any district in which a city levies a property-based assessment. 36615. “Property owner”; “Business owner”; “Owner”

“Property owner” means any person shown as the owner of land on the last equalized assessment roll or otherwise known to be the owner of land by the city council. “Business owner” means any person recognized by the city as the owner of the business. “Owner” means either a business owner or a property owner. The city council has no obligation to obtain other information as to the ownership of land or businesses, and its determination of ownership shall be final and conclusive for the purposes of this part. Wherever this part requires the signature of the property owner, the signature of the authorized agent of the property owner shall be sufficient. Wherever this part requires the signature of the business owner, the signature of the authorized agent of the business owner shall be sufficient. 36615.5. “Special benefit”

(a) “Special benefit” means, for purposes of a property-based district, a particular and distinct benefit over and above general benefits conferred on real property located in a district or to the public at large. Special benefit includes incidental or collateral effects that arise from the improvements, maintenance, or activities of property-based districts even if those incidental or collateral effects benefit property or persons not assessed. Special benefit excludes general enhancement of property value. (b) “Special benefit” also includes, for purposes of a property-based district, a particular and distinct benefit provided directly to each assessed parcel within the district. Merely because parcels throughout an assessment district share the same special benefits does not make the benefits general. 36616. “Tenant”

“Tenant” means an occupant pursuant to a lease of commercial space or a dwelling unit, other than an owner.

ARTICLE 3. Prior Law
36617. Alternate method of financing certain improvements and activities; Effect on other provisions

This part provides an alternative method of financing certain improvements and activities. The provisions of this part shall not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes. Every improvement area established pursuant to the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500) of this division) is valid and effective and is unaffected by this part.

CHAPTER 2. Establishment
36620. Establishment of property and business improvement district

A property and business improvement district may be established as provided in this chapter. 36620.5. Requirement of consent of city council

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A county may not form a district within the territorial jurisdiction of a city without the consent of the city council of that city. A city may not form a district within the unincorporated territory of a county without the consent of the board of supervisors of that county. A city may not form a district within the territorial jurisdiction of another city without the consent of the city council of the other city. 36621. Initiation of proceedings; Petition of property or business owners in proposed district

(a) Upon the submission of a written petition, signed by the property or business owners in the proposed district who will pay more than 50 percent of the assessments proposed to be levied, the city council may initiate proceedings to form a district by the adoption of a resolution expressing its intention to form a district. The amount of assessment attributable to property or a business owned by the same property or business owner that is in excess of 40 percent of the amount of all assessments proposed to be levied, shall not be included in determining whether the petition is signed by property or business owners who will pay more than 50 percent of the total amount of assessments proposed to be levied. (b) The petition of property or business owners required under subdivision (a) shall include a summary of the management district plan. That summary shall include all of the following:
(1) A map showing the boundaries of the district.
(2) Information specifying where the complete management district plan can be obtained. (3) Information specifying that the complete management district plan shall be furnished upon request.
(c) The resolution of intention described in subdivision (a) shall contain all of the following:
(1) A brief description of the proposed improvements, maintenance, and activities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property or businesses within the district, a statement as to whether bonds will be issued, and a description of the exterior boundaries of the proposed district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and statements do not need to be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance, and activities, and the location and extent of the proposed district. (2) A time and place for a public hearing on the establishment of the property and business improvement district and the levy of assessments, which shall be consistent with the requirements of Section 36623.
36622. Contents of management district plan

The management district plan shall include, but is not limited to, all of the following:
(a) If the assessment will be levied on property, a map of the district in sufficient detail to locate each parcel of property and, if businesses are to be assessed, each business within the district. If the assessment will be levied on businesses, a map that identifies the district boundaries in sufficient detail to allow a business owner to reasonably determine whether a business is located within the district boundaries. If the assessment will be levied on property and businesses, a map of the district in sufficient detail to locate each parcel of property and to allow a business owner to reasonably determine whether a business is located within the district boundaries.
(b) The name of the proposed district.
(c) A description of the boundaries of the district, including the boundaries of benefit zones, proposed for establishment or extension in a manner sufficient to identify the affected property and businesses included, which may be made by reference to any plan or map that is on file with the clerk. The boundaries of a proposed property assessment district shall not overlap with the boundaries of another existing property assessment district created pursuant to this part. This part does not prohibit the boundaries of a district created pursuant to this part to overlap with other assessment districts established pursuant to other provisions of law, including, but not limited to, the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500)). This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with another business assessment district created pursuant to this part. This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with a property assessment district created pursuant to this part. (d) The improvements, maintenance, and activities proposed for each year of operation of the district and the estimated cost thereof. If the improvements, maintenance, and activities proposed for each year of operation are the same, a description of the first year’s proposed improvements, maintenance, and activities

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and a statement that the same improvements, maintenance, and activities are proposed for subsequent years shall satisfy the requirements of this subdivision.
(e) The total annual amount proposed to be expended for improvements, maintenance, or activities, and debt service in each year of operation of the district. If the assessment is levied on businesses, this amount may be estimated based upon the assessment rate. If the total annual amount proposed to be expended in each year of operation of the district is not significantly different, the amount proposed to be expended in the initial year and a statement that a similar amount applies to subsequent years shall satisfy the requirements of this subdivision.
(f) The proposed source or sources of financing, including the proposed method and basis of levying the assessment in sufficient detail to allow each property or business owner to calculate the amount of the assessment to be levied against their property or business. The plan also shall state whether bonds will be issued to finance improvements.
(g) The time and manner of collecting the assessments.
(h) The specific number of years in which assessments will be levied. In a new district, the maximum number of years shall be five. Upon renewal, a district shall have a term not to exceed 10 years.

Notwithstanding these limitations, a district created pursuant to this part to finance capital improvements with bonds may levy assessments until the maximum maturity of the bonds. The management district plan may set forth specific increases in assessments for each year of operation of the district. (i) The proposed time for implementation and completion of the management district plan. (j) Any proposed rules and regulations to be applicable to the district. (k)
(1) A list of the properties or businesses to be assessed, including the assessor’s parcel numbers for properties to be assessed, and a statement of the method or methods by which the expenses of a district will be imposed upon benefited real property or businesses, in proportion to the benefit received by the property or business, to defray the cost thereof. (2) In a property-based district, the proportionate special benefit derived by each identified parcel shall be determined exclusively in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a public improvement, or the cost of the activities. An assessment shall not be imposed on any parcel that exceeds the reasonable cost of the proportional special benefit conferred on that parcel. Only special benefits are assessable, and a property-based district shall separate the general benefits, if any, from the special benefits conferred on a parcel. Parcels within a property-based district that are owned or used by any city, public agency, the State of California, or the United States shall not be exempt from assessment unless the governmental entity can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit. The value of any incidental, secondary, or collateral effects that arise from the improvements, maintenance, or activities of a propertybased district and that benefit property or persons not assessed shall not be deducted from the entirety of the cost of any special benefit or affect the proportionate special benefit derived by each identified parcel.
(3) In a property-based district, properties throughout the district may share the same special benefits. In a district with boundaries that define which parcels are to receive improvements, maintenance, or activities over and above those services provided by the city, the improvements, maintenance, or activities themselves may constitute a special benefit. The city may impose assessments that are less than the proportional special benefit conferred, but shall not impose assessments that exceed the reasonable costs of the proportional special benefit conferred. Because one or more parcels pay less than the special benefit conferred does not necessarily mean that other parcels are assessed more than the reasonable cost of their special benefit. (l) In a property-based district, a detailed engineer’s report prepared by a registered professional engineer certified by the State of California supporting all assessments contemplated by the management district plan.
(m) Any other item or matter required to be incorporated therein by the city council. 36623. Procedure to levy assessment

(a) If a city council proposes to levy a new or increased property assessment, the notice and protest and hearing procedure shall comply with Section 53753 of the Government Code. (b) If a city council proposes to levy a new or increased business assessment, the notice and protest and hearing procedure shall comply with Section 54954.6 of the Government Code, except that notice shall be

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mailed to the owners of the businesses proposed to be assessed. A protest may be made orally or in writing by any interested person. Every written protest shall be filed with the clerk at or before the time fixed for the public hearing. The city council may waive any irregularity in the form or content of any written protest. A written protest may be withdrawn in writing at any time before the conclusion of the public hearing. Each written protest shall contain a description of the business in which the person subscribing the protest is interested sufficient to identify the business and, if a person subscribing is not shown on the official records of the city as the owner of the business, the protest shall contain or be accompanied by written evidence that the person subscribing is the owner of the business or the authorized representative. A written protest that does not comply with this section shall not be counted in determining a majority protest.

If written protests are received from the owners or authorized representatives of businesses in the proposed district that will pay 50 percent or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than 50 percent, no further proceedings to levy the proposed assessment against such businesses, as contained in the resolution of intention, shall be taken for a period of one year from the date of the finding of a majority protest by the city council. (c) If a city council proposes to conduct a single proceeding to levy both a new or increased property assessment and a new or increased business assessment, the notice and protest and hearing procedure for the property assessment shall comply with subdivision (a), and the notice and protest and hearing procedure for the business assessment shall comply with subdivision (b). If a majority protest is received from either the property or business owners, that respective portion of the assessment shall not be levied. The remaining portion of the assessment may be levied unless the improvement or other special benefit was proposed to be funded by assessing both property and business owners. 36624. Changes to proposed assessments

At the conclusion of the public hearing to establish the district, the city council may adopt, revise, change, reduce, or modify the proposed assessment or the type or types of improvements, maintenance, and activities to be funded with the revenues from the assessments. Proposed assessments may only be revised by reducing any or all of them. At the public hearing, the city council may only make changes in, to, or from the boundaries of the proposed property and business improvement district that will exclude territory that will not benefit from the proposed improvements, maintenance, and activities. Any modifications, revisions, reductions, or changes to the proposed assessment district shall be reflected in the notice and map recorded pursuant to Section 36627. 36625. Resolution of formation

(a) If the city council, following the public hearing, decides to establish a proposed property and business improvement district, the city council shall adopt a resolution of formation that shall include, but is not limited to, all of the following:
(1) A brief description of the proposed improvements, maintenance, and activities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property, businesses, or both within the district, a statement on whether bonds will be issued, and a description of the exterior boundaries of the proposed district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and statements need not be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance, and activities and the location and extent of the proposed district. (2) The number, date of adoption, and title of the resolution of intention. (3) The time and place where the public hearing was held concerning the establishment of the district.
(4) A determination regarding any protests received. The city shall not establish the district or levy assessments if a majority protest was received.
(5) A statement that the properties, businesses, or properties and businesses in the district established by the resolution shall be subject to any amendments to this part. (6) A statement that the improvements, maintenance, and activities to be conferred on businesses and properties in the district will be funded by the levy of the assessments. The revenue from the levy of assessments within a district shall not be used to provide improvements, maintenance, or activities outside the district or for any purpose other than the purposes specified in the resolution of intention, as modified by the city council at the hearing concerning establishment of the district.

Notwithstanding the foregoing, improvements and activities that must be provided outside the

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district boundaries to create a special or specific benefit to the assessed parcels or businesses may be provided, but shall be limited to marketing or signage pointing to the district. (7) A finding that the property or businesses within the area of the property and business improvement district will be benefited by the improvements, maintenance, and activities funded by the proposed assessments, and, for a property-based district, that property within the district will receive a special benefit.
(8) In a property-based district, the total amount of all special benefits to be conferred on the properties within the property-based district.
(b) The adoption of the resolution of formation and, if required, recordation of the notice and map pursuant to Section 36627 shall constitute the levy of an assessment in each of the fiscal years referred to in the management district plan.
36627. Notice and assessment diagram

Following adoption of the resolution establishing district assessments on properties pursuant to Section 36625, the clerk shall record a notice and an assessment diagram pursuant to Section 3114. No other provision of Division 4.5 (commencing with Section 3100) applies to an assessment district created pursuant to this part. 36628. Establishment of separate benefit zones within district; Categories of businesses

The city council may establish one or more separate benefit zones within the district based upon the degree of benefit derived from the improvements or activities to be provided within the benefit zone and may impose a different assessment within each benefit zone. If the assessment is to be levied on businesses, the city council may also define categories of businesses based upon the degree of benefit that each will derive from the improvements or activities to be provided within the district and may impose a different assessment or rate of assessment on each category of business, or on each category of business within each zone. 36628.5. Assessments on businesses or property owners

The city council may levy assessments on businesses or on property owners, or a combination of the two, pursuant to this part. The city council shall structure the assessments in whatever manner it determines corresponds with the distribution of benefits from the proposed improvements, maintenance, and activities, provided that any propertybased assessment conforms with the requirements set forth in paragraph (2) of subdivision (k) of Section 36622. 36629. Provisions and procedures applicable to benefit zones and business categories

All provisions of this part applicable to the establishment, modification, or disestablishment of a property and business improvement district apply to the establishment, modification, or disestablishment of benefit zones or categories of business. The city council shall, to establish, modify, or disestablish a benefit zone or category of business, follow the procedure to establish, modify, or disestablish a property and business improvement district. 36630. Expiration of district; Creation of new district

If a property and business improvement district expires due to the time limit set pursuant to subdivision (h) of Section 36622, a new management district plan may be created and the district may be renewed pursuant to this part.

CHAPTER 3. Assessments
36631. Time and manner of collection of assessments; Delinquent payments

The collection of the assessments levied pursuant to this part shall be made at the time and in the manner set forth by the city council in the resolution levying the assessment. Assessments levied on real property may be collected at the same time and in the same manner as for the ad valorem property tax, and may provide for the same lien priority and penalties for delinquent payment. All delinquent payments for assessments levied pursuant to this part may be charged interest and penalties.

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36632. Assessments to be based on estimated benefit; Classification of real property and businesses; Exclusion of residential and agricultural property

(a) The assessments levied on real property pursuant to this part shall be levied on the basis of the estimated benefit to the real property within the property and business improvement district. The city council may classify properties for purposes of determining the benefit to property of the improvements and activities provided pursuant to this part.
(b) Assessments levied on businesses pursuant to this part shall be levied on the basis of the estimated benefit to the businesses within the property and business improvement district. The city council may classify businesses for purposes of determining the benefit to the businesses of the improvements and activities provided pursuant to this part.
(c) Properties zoned solely for residential use, or that are zoned for agricultural use, are conclusively presumed not to benefit from the improvements and service funded through these assessments, and shall not be subject to any assessment pursuant to this part. 36633. Time for contesting validity of assessment

The validity of an assessment levied under this part shall not be contested in an action or proceeding unless the action or proceeding is commenced within 30 days after the resolution levying the assessment is adopted pursuant to Section 36625. An appeal from a final judgment in an action or proceeding shall be perfected within 30 days after the entry of judgment.
36634. Service contracts authorized to establish levels of city services

The city council may execute baseline service contracts that would establish levels of city services that would continue after a property and business improvement district has been formed. 36635. Request to modify management district plan

The owners’ association may, at any time, request that the city council modify the management district plan. Any modification of the management district plan shall be made pursuant to this chapter. 36636. Modification of plan by resolution after public hearing; Adoption of resolution of intention

(a) Upon the written request of the owners’ association, the city council may modify the management district plan after conducting one public hearing on the proposed modifications. The city council may modify the improvements and activities to be funded with the revenue derived from the levy of the assessments by adopting a resolution determining to make the modifications after holding a public hearing on the proposed modifications. If the modification includes the levy of a new or increased assessment, the city council shall comply with Section 36623. Notice of all other public hearings pursuant to this section shall comply with both of the following:
(1) The resolution of intention shall be published in a newspaper of general circulation in the city once at least seven days before the public hearing.
(2) A complete copy of the resolution of intention shall be mailed by first class mail, at least 10 days before the public hearing, to each business owner or property owner affected by the proposed modification.
(b) The city council shall adopt a resolution of intention which states the proposed modification prior to the public hearing required by this section. The public hearing shall be held not more than 90 days after the adoption of the resolution of intention.
36637. Reflection of modification in notices recorded and maps

Any subsequent modification of the resolution shall be reflected in subsequent notices and maps recorded pursuant to Division 4.5 (commencing with Section 3100), in a manner consistent with the provisions of Section 36627. 36638. Assessment as government imposed fee on Civ C § 1770 transaction [Operative July 1, 2024]

GTBID Management District Plan 23
October 31, 2025
(a) A business assessment pursuant to this part is a fee imposed by a government on the transaction for purposes of paragraph (29) of subdivision (a) of Section 1770 of the Civil Code. (b) This section shall become operative on July 1, 2024.

CHAPTER 3.5. Financing
36640. Bonds authorized; Procedure; Restriction on reduction or termination of assessments

(a) The city council may, by resolution, determine and declare that bonds shall be issued to finance the estimated cost of some or all of the proposed improvements described in the resolution of formation adopted pursuant to Section 36625, if the resolution of formation adopted pursuant to that section provides for the issuance of bonds, under the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500)) or in conjunction with Marks-Roos Local Bond Pooling Act of 1985 (Article 4 (commencing with Section 6584) of Chapter 5 of Division 7 of Title 1 of the Government Code). Either act, as the case may be, shall govern the proceedings relating to the issuance of bonds, although proceedings under the Bond Act of 1915 may be modified by the city council as necessary to accommodate assessments levied upon business pursuant to this part. (b) The resolution adopted pursuant to subdivision (a) shall generally describe the proposed improvements specified in the resolution of formation adopted pursuant to Section 36625, set forth the estimated cost of those improvements, specify the number of annual installments and the fiscal years during which they are to be collected. The amount of debt service to retire the bonds shall not exceed the amount of revenue estimated to be raised from assessments over 30 years.
(c) Notwithstanding any other provision of this part, assessments levied to pay the principal and interest on any bond issued pursuant to this section shall not be reduced or terminated if doing so would interfere with the timely retirement of the debt.

CHAPTER 4. Governance
36650. Report by owners’ association; Approval or modification by city council

(a) The owners’ association shall cause to be prepared a report for each fiscal year, except the first year, for which assessments are to be levied and collected to pay the costs of the improvements, maintenance, and activities described in the report. The owners’ association’s first report shall be due after the first year of operation of the district. The report may propose changes, including, but not limited to, the boundaries of the property and business improvement district or any benefit zones within the district, the basis and method of levying the assessments, and any changes in the classification of property, including any categories of business, if a classification is used.
(b) The report shall be filed with the clerk and shall refer to the property and business improvement district by name, specify the fiscal year to which the report applies, and, with respect to that fiscal year, shall contain all of the following information:
(1) Any proposed changes in the boundaries of the property and business improvement district or in any benefit zones or classification of property or businesses within the district. (2) The improvements, maintenance, and activities to be provided for that fiscal year. (3) An estimate of the cost of providing the improvements, maintenance, and activities for that fiscal year.
(4) The method and basis of levying the assessment in sufficient detail to allow each real property or business owner, as appropriate, to estimate the amount of the assessment to be levied against his or her property or business for that fiscal year.
(5) The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year.
(6) The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part.
(c) The city council may approve the report as filed by the owners’ association or may modify any particular contained in the report and approve it as modified. Any modification shall be made pursuant to Sections 36635 and 36636.

The city council shall not approve a change in the basis and method of levying assessments that would impair an authorized or executed contract to be paid from the revenues derived from the levy of

GTBID Management District Plan 24
October 31, 2025
assessments, including any commitment to pay principal and interest on any bonds issued on behalf of the district.
36651. Designation of owners’ association to provide improvements, maintenance, and activities

The management district plan may, but is not required to, state that an owners’ association will provide the improvements, maintenance, and activities described in the management district plan. If the management district plan designates an owners’ association, the city shall contract with the designated nonprofit corporation to provide services.

CHAPTER 5. Renewal
36660. Renewal of district; Transfer or refund of remaining revenues; District term limit

(a) Any district previously established whose term has expired, or will expire, may be renewed by following the procedures for establishment as provided in this chapter. (b) Upon renewal, any remaining revenues derived from the levy of assessments, or any revenues derived from the sale of assets acquired with the revenues, shall be transferred to the renewed district. If the renewed district includes additional parcels or businesses not included in the prior district, the remaining revenues shall be spent to benefit only the parcels or businesses in the prior district. If the renewed district does not include parcels or businesses included in the prior district, the remaining revenues attributable to these parcels shall be refunded to the owners of these parcels or businesses. (c) Upon renewal, a district shall have a term not to exceed 10 years, or, if the district is authorized to issue bonds, until the maximum maturity of those bonds. There is no requirement that the boundaries, assessments, improvements, or activities of a renewed district be the same as the original or prior district.

CHAPTER 6. Disestablishment
36670. Circumstances permitting disestablishment of district; Procedure

(a) Any district established or extended pursuant to the provisions of this part, where there is no indebtedness, outstanding and unpaid, incurred to accomplish any of the purposes of the district, may be disestablished by resolution by the city council in either of the following circumstances:
(1) If the city council finds there has been misappropriation of funds, malfeasance, or a violation of law in connection with the management of the district, it shall notice a hearing on disestablishment.
(2) During the operation of the district, there shall be a 30-day period each year in which assessees may request disestablishment of the district. The first such period shall begin one year after the date of establishment of the district and shall continue for 30 days. The next such 30-day period shall begin two years after the date of the establishment of the district. Each successive year of operation of the district shall have such a 30-day period. Upon the written petition of the owners or authorized representatives of real property or the owners or authorized representatives of businesses in the district who pay 50 percent or more of the assessments levied, the city council shall pass a resolution of intention to disestablish the district. The city council shall notice a hearing on disestablishment.
(b) The city council shall adopt a resolution of intention to disestablish the district prior to the public hearing required by this section. The resolution shall state the reason for the disestablishment, shall state the time and place of the public hearing, and shall contain a proposal to dispose of any assets acquired with the revenues of the assessments levied within the property and business improvement district. The notice of the hearing on disestablishment required by this section shall be given by mail to the property owner of each parcel or to the owner of each business subject to assessment in the district, as appropriate. The city shall conduct the public hearing not less than 30 days after mailing the notice to the property or business owners. The public hearing shall be held not more than 60 days after the adoption of the resolution of intention.
36671. Refund of remaining revenues upon disestablishment or expiration without renewal of district; Calculation of refund; Use of outstanding revenue collected after disestablishment of district

GTBID Management District Plan 25
October 31, 2025
(a) Upon the disestablishment or expiration without renewal of a district, any remaining revenues, after all outstanding debts are paid, derived from the levy of assessments, or derived from the sale of assets acquired with the revenues, or from bond reserve or construction funds, shall be refunded to the owners of the property or businesses then located and operating within the district in which assessments were levied by applying the same method and basis that was used to calculate the assessments levied in the fiscal year in which the district is disestablished or expires. All outstanding assessment revenue collected after disestablishment shall be spent on improvements and activities specified in the management district plan. (b) If the disestablishment occurs before an assessment is levied for the fiscal year, the method and basis that was used to calculate the assessments levied in the immediate prior fiscal year shall be used to calculate the amount of any refund.

GTBID Management District Plan 26
October 31, 2025
APPENDIX 2 – ASSESSED BUSINESSES*
Lodging Business Street Address City, State, ZIP
Best Western Plus / Forest
Park Inn
375 Leavesley Road Gilroy, CA 95020
Budget Motels / Whiterock 8897 Monterey Road Gilroy, CA 95020 Garlic Farm Inn 5920 Travel Park Circle Gilroy, CA 95020 Gilroy Inn 611 Leavesley Road Gilroy, CA 95020
Days Inn 8290 Murray Avenue Gilroy, CA 95020
Hilton Garden Inn 6070 Monterey Road Gilroy, CA 95020
Kings Rest Motel 8175 Monterey Road Gilroy, CA 95020
Motel 6 6110 Monterey Road Gilroy, CA 95020
Oaks Motel 8065 Monterey Road Gilroy, CA 95020
Pacheco Pass Motel 570 Old Gilroy Street Gilroy, CA 95020 Quality Inn & Suites 8430 Murray Road Gilroy, CA 95020
Econolodge 360 Leavesley Road Gilroy, CA 95020
Comfort Inn 8435 San Ysidro Avenue Gilroy, CA 95020
Travel Inn 5530 Monterey Road Gilroy, CA 95020
Hampton Inn 5975 Travel Park Circle Gilroy, CA 95020
*Jurisdiction list as of October 20, 2025

RESOLUTION NO. 26-XXX

A RESOLUTION OF THE CITY COUNCIL (COUNCIL) OF

THE CITY OF GILROY (CITY) DECLARING ITS INTENTION

TO RENEW THE GILROY TOURISM BUSINESS

IMPROVEMENT DISTRICT (GTBID) AND FIXING THE TIME

AND PLACE OF A PUBLIC MEETING AND A PUBLIC

HEARING THEREON AND GIVING NOTICE THEREOF
WHEREAS, the City created the GTBID on September 17, 2012 by Resolution No. 2012-36 for an initial five (5) year term; and
WHEREAS, the GTBID was subsequently renewed on October 17, 2016 by Resolution No. 2016-54 for an additional ten (10) year term, which ends on December 31, 2027; and WHEREAS, the Property and Business Improvement Law of 1994, Streets and Highways Code § 36600 et seq., authorizes the City to renew business improvement districts for the purposes of promoting tourism; and
WHEREAS, Gilroy Visitors Bureau, Inc. dba the Gilroy Welcome Center (GWC), lodging business owners, and representatives from the City have met to consider the renewal of the GTBID; and
WHEREAS, lodging businesses worked with GWC to develop a Management District Plan (Plan) which sets forth the proposed boundary of the GTBID, a service plan and budget, and a proposed means of governance; and
WHEREAS, lodging businesses who will pay more than fifty percent (50%) of the assessment under the GTBID have petitioned the Council to renew the GTBID.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL THAT:

1. The recitals set forth herein are true and correct.

2. The Council finds that assessed businesses that will pay more than fifty percent (50%) of the assessment proposed in the Plan have signed and submitted petitions in support of the renewal of the GTBID. The Council accepts the petitions and adopts this Resolution of Intention to renew the GTBID and to levy an assessment on certain lodging businesses within the GTBID boundaries in accordance with the Property and Business Improvement District Law of 1994.

3. The Council finds that the Plan satisfies all requirements of Streets and Highways Code §36622.

4. The Council declares its intention to renew the GTBID and to levy and collect assessments on assessed businesses within the GTBID boundaries pursuant to the Property and Business Improvement District Law of 1994.

5. The GTBID shall include all lodging businesses with ten (10) rooms or more, existing and in the future, available for public occupancy located within the boundaries of the City, as shown in the map attached as Exhibit A.

6. The name of the district shall continue to be the Gilroy Tourism Business Improvement District.

7. The initial annual assessment rate is two percent (2%) of gross short-term sleeping room rental revenue. During the GTBID’s ten (10) year term, the assessment rate may be increased by the GWC’s Board to a maximum rate of five percent (5%) of gross short-term sleeping room rental revenue for assessed lodging businesses. If the assessment rate is increased, it may subsequently be decreased, but shall not be decreased below a minimum of two percent (2%) of gross short-term sleeping room rental revenue. The maximum increase or decrease in any year shall be two percent (2%). Based on the benefit received, assessments will not be collected on stays of more than thirty (30) consecutive days; and stays by any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty.

8. The assessments levied for the GTBID shall be applied toward Sales and Marketing programs to market assessed businesses in the City as tourist, meeting, and event destinations, as described in the Plan. Funds remaining at the end of any year may be used in subsequent years in which GTBID assessments are levied as long as they are used consistent with the requirements of this Resolution and the Plan.

9. The renewed GTBID will have a ten (10) year term, beginning January 1, 2028, or as soon as possible thereafter, and ending ten (10) years from its start date, unless renewed pursuant to Streets and Highways Code § 36660.

10. Bonds shall not be issued.

11. The time and place for the public meeting to hear testimony on renewing the GTBID and levying assessments are set for May 18, 2026 at 6:00 PM, or as soon thereafter as the matter may be heard, at the Council Chambers located at City Hall, 7351 Rosanna Street, Gilroy, CA 95020.

12. The time and place for the public hearing to renew the GTBID and the levy of assessments are set for June 15, 2026 at 6:00 PM, or as soon thereafter as the matter may be heard, at the Council Chambers located at City Hall, 7351 Rosanna Street, Gilroy, CA 95020. The City Clerk is directed to provide written notice to the lodging businesses subject to assessment of the date and time of the meeting and hearing, and to provide that notice as required by Streets and Highways Code § 36623, no later than May 1, 2026.

13. At the public meeting and hearing the testimony of all interested persons for or against the renewal of the GTBID may be received. If at the conclusion of the public hearing, there are of record written protests by the owners of the assessed businesses within the renewed GTBID that will pay fifty percent (50%) or more of the estimated total assessment of the entire GTBID, no further proceedings to renew the GTBID shall occur for a period of one (1) year.

14. The complete Plan is on file with the City Clerk and may be reviewed upon request.

15. This resolution shall take effect immediately upon its adoption by the City Council.

PASSED AND ADOPTED this 20th day of April 2026, by the following roll call vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

APPROVED:

Greg Bozzo, Mayor
ATTEST:

Kim Mancera, City Clerk

CERTIFICATE OF THE CLERK
I, Kim Mancera, City Clerk of the City of Gilroy, do hereby certify that the attached Resolution No. 2026-XX is an original resolution, or true and correct copy of a City Resolution, duly adopted by the Council of the City of Gilroy at a Regular Meeting of said held on Council held Monday, April 20, 2026, with a quorum present.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of the City of Gilroy this Date.

Kim Mancera
City Clerk of the City of Gilroy (Seal)

EXHIBIT A
District Boundaries

PETITION TO THE CITY OF GILROY

TO RENEW THE GILROY TOURISM BUSINESS IMPROVEMENT DISTRICT We petition you to initiate proceedings to renew the Gilroy Tourism Business Improvement District (GTBID) in accordance with the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq., for the purpose of providing services as described in the summary of the Management District Plan attached hereto as Exhibit A.

Business Establishment(s) & Address(es) Business Owner
The undersigned is the business owner or the authorized representative of the business owner and is the person legally authorized and entitled to sign this petition.

Owner /Owner Representative Name (printed) Title
Owner/Owner Representative Signature Date
A complete copy of the Management District Plan will be furnished upon request. Requests for a complete copy of the Management District Plan should be made to:

Visit Gilroy
Frank Johnson, Executive Director
8155-6 Arroyo Circle
Gilroy, CA 95020
(408) 842-6436

6.5. City of Gilroy

STAFF REPORT
Agenda Item Title: Approval of a Purchasing Contract With RDO Equipment Co. of Hayward in the Amount of $104,967 for the Purchase of a Vermeer BC1500 Wood Chipper Under a Cooperative
Purchasing Agreement with Sourcewell, Contract# 010925- VRM
Meeting Date: April 20, 2026
From: Matt Morley, City Administrator
Department: Public Works
Submitted by: John Doughty, Public Works Director
Prepared by: Walter Dunckel, Fleet and Facilities Superintendent STRATEGIC PLAN GOALS: Maintain and Improve City Infrastructure

RECOMMENDATION
Approve a purchase contract with RDO Equipment Co. of Hayward in the amount of $104,967 for the purchase of a Vermeer BC1500 Wood Chipper, using the cooperative purchasing agreement with Sourcewell formerly known as National Joint Powers Alliance (NJPA), and authorize the City Administrator to execute the contract and related documents.

EXECUTIVE SUMMARY
The Public Works Department uses a wood chipper in conjunction with emergency and planned tree tree trimming/removal and other vegetation management operations. The current wood chipper is 25 years old and has reached the end of its useful life. Fleet staff worked with Public Works Operations staff to find the best replacement chipper using the Cooperative Purchasing Agreement with Sourcewell, formerly known as National Joint Powers Alliance (NJPA). Vermeer was selected as the best option for the City because of its performance capability, updated safety features, emissions compliance, parts availability, location of the dealer, and warranty. The local Vermeer dealer, RDO Equipment Co. of Hayward, California, provided the quote.

6.5. BACKGROUND
The current wood chipper is 25 years old and is no longer in compliance with California Air Resources Board (CARB) engine emissions requirements. The unit has reached the end of its useful life and requires frequent, costly maintenance and repair. Rather than continuing to invest in an aging, non-compliant piece of equipment, the City Council approved the chipper for replacement in the Fiscal Year 2025-2026 Operating Budget.

The City has used NJPA/Sourcewell in the past for purchasing vehicles and equipment including the Sewer Vacuum truck (Vactor), Hydro Excavator, sweeper, and other smaller equipment.

ANALYSIS
The Fleet Section worked with Operations staff to identify the best replacement option for the wood chipper based on current and future operational needs. Staff compared factors such as chipping capacity, ease of operation, controls, ergonomics, safety features, and overall cost. Additional factors including parts availability, proximity of the dealer, and warranty terms were also considered. Based on this evaluation, staff recommends the purchase of the Vermeer BC1500 Wood Chipper.

The BC1500 offers significant improvements over the existing unit, including:
• CARB-compliant engine that meets current emissions standards, eliminating the City’s regulatory exposure.
• Auto-Feed system that automatically senses and adjusts material feed rate, improving both operator safety and chipping efficiency. • HitchHiker™ tongue design that allows the unit to be towed without a separate hitch receiver, reducing setup time in the field.
• Enclosed disc style chipper drum providing improved chip quality, quieter operation, and reduced kickback risk compared to the existing unit. • Updated operator safety features including an infeed control bar, emergency stop, and compliant guarding throughout, significantly reducing the risk of injury during operation.

The unit price for the BC1500 is $92,051.82, which is a competitive price available to public agencies through the NJPA/Sourcewell process, utilizing Sourcewell Contract# 010925-VRM Vermeer Contract 010925

ALTERNATIVES
Council could deny the purchase of the Vermeer BC1500 Wood Chipper.

STAFF DOES NOT RECOMMEND THIS OPTION because the current equipment is far

6.5. beyond its useful life, requires extensive maintenance and repair, and does not comply with CARB emissions standards. Continued use of the existing chipper exposes the City to regulatory penalties and creates unacceptable operator safety risks, due to its outdated safety features.

FISCAL IMPACT/FUNDING SOURCE
The City’s fleet replacement budget for Fiscal Year 2025-2026 includes $122,266 for the purchase of the wood chipper. The price of the new Vermeer BC1500 Wood Chipper is $104,967.00 based on a price quote received from RDO Equipment Co. located in Hayward, California. Funding for the equipment is budgeted in the FY 2026 Fleet Fund. The quote is for approximately $17,000 less than the budgeted.

PUBLIC OUTREACH
None

NEXT STEPS
With Council’s approval, staff will move forward with the purchase of the Vermeer BC1500 Wood Chipper. Vermeer requires an approximate six-to-eight-week lead time for delivery to the City and, once delivered, the equipment will be deployable within one week
Attachments:

1. Updated BC1500 quote sourcewell

Investment Proposal (Quote)
RDO Equipment Co.
24353 Clawiter Rd.

Hayward (VM) CA, 94545
Phone: (510) 460-3900 - Fax: (510) 723-0271
Proposal for:

CITY OF GILROY
613 OLD GILROY ST
GILROY, CA, 95020

SANTA CLARA
Investment Proposal Date:

Pricing Valid Until:

Deal Number:

Customer Account#:

Account Manager:

Phone:

Fax:

Email:
3/3/2026
5/31/2026
1861741
0307014
Daniel Monarrez
1 (510) 398-7187
[email protected]
Equipment Information
Quantity Serial Number
Stock Number
Hours
(approx.)
Status / Year / Make / Model
Additional Items
Cash Price
1 TBD
TBD
0 New 2025 VERMEER BC1500 $92,051.82
Freight in $1,895.00
Prep / Reconditioning $905.00
Other “Sourcewell - [Contract # 010925-VRM] Member ID [Account # 102062]"
$0.00
Other 5yr telematics $120.00
Equipment Subtotal: $94,971.82
Purchase Order Totals
Balance: $94,971.82
CA STATE TAX: $5,698.31
CA COUNTY TAX: $237.43
CA SPECIAL TAX: $2,730.44
Sales Tax Total: $8,666.18
PrePaid Tax License: $1,325.00
CA Tire Fee: $3.50
Sub Total: $104,966.50
Cash with Order: $0.00
Balance Due: $104,966.50
Equipment Options
Qty Serial Number Year / Make / Model Description
1 TBD 2025 VERMEER BC1500 BC150051VP BC1500 DOM. VALUE PACKAGE 130HP T4F - WINCH
BC1500014 BC1500 130HP CUMMINS DIESEL - TIER 4 FINAL
BC1500016 ~MANUAL CHUTE ROTATION RIGHT SIDE
BC1500029 BC1500 WINCH RIGHT SIDE CONTROLS
BC1500040 ~BC1500 DOMESTIC 6-WAY ROUND TRAILER PLUG
BC1500052 BC1500 RT SIDE CONTROLS - (130HP) T4F/STAGE IV BC1500077 BC1500 STANDARD TIRES - 235/75R17.5H/J
BC1500092 ~BC1500 DOMESTIC OPTION 130HP TIER 4 FINAL
BC1500AM010 TELEMATICS
D1861741 Page 1 of
1

6.6. City of Gilroy

STAFF REPORT
Agenda Item Title: Approval of the Gilroy Tourism Business Improvement District (GTBID) Annual Reports as Submitted by Visit
Gilroy/Gilroy Welcome Center for the Period of January 1, 2022 Through December 31, 2025
Meeting Date: April 20, 2026
From: Matt Morley, City Administrator
Department: Economic Development
Submitted by: Raissa de la Rosa, Economic Development Director Prepared by: Victoria Valencia, Economic Development Manager, Raissa de la Rosa, Economic Development Director
STRATEGIC PLAN GOALS: Promote Economic Development Activities

RECOMMENDATION
Approve the Gilroy Tourism Business Improvement District (GTBID) annual reports as submitted by Visit Gilroy/Gilroy Welcome Center for Calendar Years 2022, 2023, 2024, and 2025.

EXECUTIVE SUMMARY
Per state law, Visit Gilroy/Gilroy Welcome Center Board of Directors representing the Gilroy Tourism Business Improvement District (GTBID) are required to submit for Council's approval annual reports outlining, among other things, the improvements, activities, and services provided, and the costs related to providing those services.

During an internal review of the GTBID program, staff identified a reporting noncompliance issue, hence the catch-up submission of four years of formal annual reports at one time.

BACKGROUND
Visit Gilroy/Gilroy Welcome Center Board of Directors representing the Gilroy Tourism

6.6. Business Improvement District (GTBID) has submitted the attached annual reports pursuant to Section 36650 of the Street and Highway Code. Established in September 2012, the GTBID is not a tax; rather, it is a self-assessment voluntarily approved and paid for by the participating businesses with the revenue providing a steady and dedicated funding source for tourism and overnight stay sales within Gilroy.

Due to staffing changes within both the City and Visit Gilroy/Gilroy Welcome Center, several annual reports were not previously submitted for Council consideration; an issue identified by staff during an internal review. The GTBID has since completed the outstanding reports, which are now being presented together for Council approval.

ANALYSIS
A Tourism Business Improvement District (TBID) is a collaborative funding mechanism created by local lodging establishments and potentially, though not in Gilroy, tourismrelated businesses, to support marketing, promotion, and tourism development. As noted above, it is not a tax. Assessment districts, like a TBID or a Property and Business Improvement District (PBID), are self-assessments voluntarily approved and paid for by the participating businesses themselves. Gilroy's TBID rate is 2%, which is added to a guest's bill in the same way other lodging surcharges appear as part of the overall room charges (an industry standard). The funds generated through a TBID are dedicated to programs that increase overnight stays, boost visitor spending, and strengthen the local tourism economy. In Gilroy, these services are provided by Visit Gilroy and the Gilroy Welcome Center as seen in the attached annual reports.

The annual reports meet and satisfy the state-mandated reporting requirements, and the services provided by Visit Gilroy/Gilroy Welcome Center, as outlined in those reports, meet and satisfy the expectations of the local enabling ordinance and professional service agreement with the City.

ALTERNATIVES
Alternatives are not applicable as this process is required under Section 36650 of the Street and Highway Code.

FISCAL IMPACT/FUNDING SOURCE
This item has no fiscal impact.

PUBLIC OUTREACH
Not applicable

6.6. NEXT STEPS
Not Applicable
Attachments:

1. Annual Report GTBID 2022

2. Annual Report GTBID 2023

3. Annual Report GTBID 2024

4. Annual Report GTBID 2025

Gilroy Tourism Business Improvement District
2022 Annual Report Page 1

GILROY TOURISM BUSINESS

IMPROVEMENT DISTRICT
2022 ANNUAL REPORT
Submitted to the City of Gilroy pursuant to Streets and Highways Code Section 36650 for the period from January 1, 2022-December 31, 2022

Gilroy Tourism Business Improvement District
2022 Annual Report Page 2

CONTENTS
BOUNDARIES ...................................................................................................................................................3 IMPROVEMENTS AND ACTIVITIES.............................................................................................................3 COST...................................................................................................................................................................5 2023 PROJECTIONS ....................................................................................................................................................5 2022 ACTUAL.............................................................................................................................................................5 ASSESSMENT....................................................................................................................................................6 ASSESSMENT ..............................................................................................................................................................6 DELINQUENCIES .......................................................................................................................................................6 SURPLUS AND OTHER FUNDING................................................................................................................8 SURPLUS ....................................................................................................................................................................8 OTHER FUNDING ......................................................................................................................................................8 ATTACHMENT 1...............................................................................................................................................9 ATTACHMENT 2 ............................................................................................................................................10

Gilroy Tourism Business Improvement District
2022 Annual Report Page 3

BOUNDARIES
There are no proposed changes to the Gilroy Tourism Business Improvement District (GTBID) boundaries. There have been no new lodging businesses, and no lodging businesses have closed.

The GTBID will continue to include all lodging businesses, existing and in the future, available for public occupancy, located within the boundaries of the City of Gilroy (City), as shown on the map below.

IMPROVEMENTS AND ACTIVITIES

Gilroy Tourism Business Improvement District
2022 Annual Report Page 4
The improvements and activities to be provided for 2023 are consistent with the Management District Plan (Plan).

Sales and Marketing
A sales and marketing program will continue to promote assessed lodging businesses as tourist, meeting, and event destinations. The sales and marketing program will continue to have a central theme of promoting Gilroy as a desirable place for overnight visits. The program will continue to have the goal of increasing overnight visitation and room night sales at assessed lodging businesses, and may include the following activities:
• Internet marketing efforts to increase awareness and optimize internet presence to drive overnight visitation and room sales to assessed lodging businesses; • Print ads in magazines and newspapers, television ads, and radio ads targeted at potential visitors to drive overnight visitation and room sales to assessed lodging businesses; • Social media marketing efforts designed to drive overnight visitation and room sales to assessed lodging businesses;
• Attendance of trade and consumer shows to promote assessed lodging businesses; • Sales blitzes for assessed lodging businesses;
• Familiarization tours of assessed lodging businesses; • Preparation and production of collateral promotional materials such as brochures, flyers and maps featuring assessed lodging businesses;
• Attendance of professional industry conferences and affiliation events to promote assessed lodging businesses;
• Lead generation activities designed to attract tourists and group events to assessed lodging businesses;
• Director of Sales and General Manager meetings to plan and coordinate tourism promotion efforts for assessed lodging businesses; and
• Development and maintenance of a website designed to promote assessed lodging businesses.

Administration and Operations
The administration and operations portion of the budget shall continue to be utilized for administrative staffing costs, office costs, and other general administrative costs such as insurance, legal, and accounting fees.

City Collection Fee
The City of Gilroy shall continue to be paid a fee equal to two percent (2%) of the amount of assessment collected to cover its costs of collection and administration.

Contingency/Reserve
The budget includes a contingency line item to continue to account for uncollected assessments, if any. If there are contingency funds collected, they may be held in a reserve fund or utilized for other program, administration or renewal costs at the discretion of the Owners’ Association. Policies relating to contributions to the reserve fund, the target amount of the reserve fund, and expenditure of monies from the reserve fund shall be set by the Board of Directors of the Owners’ Association. The reserve fund may be used for the costs of renewing the District.

Gilroy Tourism Business Improvement District
2022 Annual Report Page 5
COST
2023 Projections
The cost of providing improvements and activities for 2023 is consistent with the Plan. The categorical breakdown for the assessment budget is below. All budget category allocations are within the authorized fifteen percent (15%) adjustment of the total assessment budget from the prior year.

Category %
CY 2023
Estimated
Collections
Carry Over* Total CY 2023
Budget
Sales & Marketing 78% $253,575.00 $0 $253,575.00
Administration 20% $64,925.00 $0 $64,925.00
City Fee 2% $6,500.00 $0 $6,500.00
Contingency/Reserve 0% $0 $79,419 $79,419.00
Total 100% $325,000.00 $79,419.00 $404,419.00
*Carry over may include unspent funds from multiple years 2022 Actual
The projected 2022 collections were approximately $325,000. Actual collections were more than expected, totaling $359,063. Budgeted and actual expenses are shown below.

Category CY 2022 Budgeted CY 2022 Actuals
% $ $ Spent $ Carryover
Marketing & Sales 81% $261,800 $295,336 $0
Administration 15% $50,200 $63,458 $0
Contingency/Reserve 2% $6,500 $2,500 $79,419
City Collection Fee 2% $6,500 $7,181 $0
Totals 100% $325,000 $368,475 $79,419

Gilroy Tourism Business Improvement District
2022 Annual Report Page 6

ASSESSMENT
There is no change in the method and basis of levying the assessment.

Assessment
The initial annual assessment rate is two percent (2%) of gross short term room rental revenue. Based on the benefit received, assessments will not be collected on: stays of more than thirty (30) consecutive days; and stays by any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty.

The assessment rate may be subject to increases during the ten (10) year term. At the discretion of the Gilroy Visitors Bureau, Inc. DBA the Gilroy Welcome Center’s (GWC’s) Board, the assessment rate may be increased by a maximum of two percent (2%) per year to a maximum rate of five percent (5%).

The assessment rate may also be decreased by the GWC’s Board, but shall not drop below two percent (2%) of gross room rental revenue. Any increase or decrease authorized by the GWC’s Board shall be included in the Annual Report and approved by the Gilroy City Council during the fiscal year annual report review. Thereafter, the increase or decrease will be effective starting the following fiscal year.

The term “gross room rental revenue” as used herein means: the consideration charged, whether or not received, for the occupancy of space in a lodging business valued in money, whether to be received in money, goods, labor or otherwise, including all receipts, cash, credits and property and services of any kind or nature, without any deduction therefrom whatsoever. Gross room rental revenue shall not include any federal, state or local taxes collected, including but not limited to transient occupancy taxes.

The assessment is levied upon and a direct obligation of the assessed lodging business. However, the assessed lodging business may, at its discretion, pass the assessment on to transients. The amount of assessment, if passed on to each transient, shall be disclosed in advance and separately stated from the amount of rent charged and any other applicable taxes, and each transient shall receive a receipt for payment from the business. The assessment shall be disclosed as the “GTBID Assessment.” The assessment is imposed solely upon, and is the sole obligation of the assessed lodging business even if it is passed on to transients. The assessment shall not be considered revenue for any purposes, including calculation of transient occupancy taxes.

Bonds shall not be issued.

Time and Manner for Collecting Assessments
The GTBID assessment was implemented beginning January 1, 2018 and will continue for ten (10) years through December 31, 2027. The City will continue to be responsible for collecting the assessment on a quarterly basis (including any delinquencies, penalties and interest) from each assessed lodging business. The City shall continue to take all reasonable efforts to collect the assessments from each lodging business. The City shall continue to forward the assessments collected to the Owners’ Association within thirty (30) days of receipt.

Delinquencies
The GTBID shall continue to reimburse the City of Gilroy for any costs associated with collecting unpaid assessments. If sums in excess of the delinquent GTBID assessment are sought to be recovered in the same collection action by the City, the GTBID shall continue to bear its prorate share of such

Gilroy Tourism Business Improvement District
2022 Annual Report Page 7
collection costs. Assessed lodging businesses which are delinquent in paying the assessment shall continue to be responsible for paying:

1. Original Delinquency: Any lodging business that fails to remit any assessment imposed within the time required shall pay a penalty of ten percent (10%) of the amount of the assessment in addition to the amount of the assessment.

2. Continued Delinquency: Any lodging business that fails to remit any delinquent remittance on or before a period of thirty (30) days following the date on which the remittance first became delinquent shall pay a second delinquency penalty of ten percent (10%) of the amount of the assessment in addition to the amount of the assessment and the ten percent (10%) penalty first imposed.

3. Fraud: If the City determines that the non-payment of any remittance due is due to fraud, a penalty of twenty-five percent (25%) of the amount of the assessment shall be added thereto in addition to the penalties stated in subsections 1 and 2 of this section.

4. Interest: In addition to the penalties imposed, any lodging business that fails to remit any assessment imposed shall pay interest at the rate of eighteen percent (18%) per annum. The interest shall be calculated per month or fraction thereof on the amount of the assessment and penalties, from the date on which the remittance first became delinquent until paid.

5. Penalties Merged with Assessment: Every penalty imposed and such interest as accrues shall become part of the assessment herein required to be paid.

In the event the City is unable to collect the delinquent assessments, the assessment amount including penalties and interest will be added to the business license renewal for the lodging business the following year. Upon collection of delinquent assessments, penalties and interest, the City shall retain the penalties and interest to cover the costs of collection, and shall forward the original assessment amount to the GWC Board.

Gilroy Tourism Business Improvement District
2022 Annual Report Page 8

SURPLUS AND OTHER FUNDING
Surplus
The amount of surplus to be carried over from previous years is approximately $79,419.

Other Funding
There are expected to be contributions from sources other than assessment funds. The estimated amount of any contributions to be made from sources other than GTBID assessments for 2023 include TBID Interest Income in the amount of $996.

Gilroy Tourism Business Improvement District
2022 Annual Report Page 9
ATTACHMENT 1

GTBID ASSESSEE LISTING

Gilroy Tourism Business Improvement District
2022 Annual Report Page 10
ATTACHMENT 2

VISIT GILROY TBID BUDGET PERFORMANCE (P&L)

Gilroy Tourism Business Improvement District
2022 Annual Report Page 11

Gilroy Tourism Business Improvement District
2023 Annual Report Page 1

GILROY TOURISM BUSINESS

IMPROVEMENT DISTRICT
2023 ANNUAL REPORT
Submitted to the City of Gilroy pursuant to Streets and Highways Code Section 36650 for the period from January 1, 2023-December 31, 2023

Gilroy Tourism Business Improvement District
2023 Annual Report Page 2

CONTENTS
BOUNDARIES ...................................................................................................................................................3 IMPROVEMENTS AND ACTIVITIES.............................................................................................................4 COST...................................................................................................................................................................5 2024 PROJECTIONS ....................................................................................................................................................5 2023 ACTUAL.............................................................................................................................................................6 ASSESSMENT....................................................................................................................................................7 ASSESSMENT ..............................................................................................................................................................7 DELINQUENCIES .......................................................................................................................................................7 SURPLUS AND OTHER FUNDING................................................................................................................9 SURPLUS ....................................................................................................................................................................9 OTHER FUNDING ......................................................................................................................................................9 ATTACHMENT 1.............................................................................................................................................10 ATTACHMENT 2 ............................................................................................................................................11

Gilroy Tourism Business Improvement District
2023 Annual Report Page 3

BOUNDARIES
There are no proposed changes to the Gilroy Tourism Business Improvement District (GTBID) boundaries. There have been no new lodging businesses, and no lodging businesses have closed. One lodging business changed its name during the past year: Super 8, located at 8435 San Ysidro Avenue Gilroy CA 95020, is now operating as the “Comfort Inn”.

The GTBID will continue to include all lodging businesses, existing and in the future, available for public occupancy, located within the boundaries of the City of Gilroy (City), as shown on the map below.

Gilroy Tourism Business Improvement District
2023 Annual Report Page 4

IMPROVEMENTS AND ACTIVITIES
The improvements and activities to be provided for 2024 are consistent with the Management District Plan (Plan).

Sales and Marketing
A sales and marketing program will continue to promote assessed lodging businesses as tourist, meeting, and event destinations. The sales and marketing program will continue to have a central theme of promoting Gilroy as a desirable place for overnight visits. The program will continue to have the goal of increasing overnight visitation and room night sales at assessed lodging businesses, and may include the following activities:

Gilroy Tourism Business Improvement District
2023 Annual Report Page 5
• Internet marketing efforts to increase awareness and optimize internet presence to drive overnight visitation and room sales to assessed lodging businesses; • Print ads in magazines and newspapers, television ads, and radio ads targeted at potential visitors to drive overnight visitation and room sales to assessed lodging businesses; • Social media marketing efforts designed to drive overnight visitation and room sales to assessed lodging businesses;
• Attendance of trade and consumer shows to promote assessed lodging businesses; • Sales blitzes for assessed lodging businesses;
• Familiarization tours of assessed lodging businesses; • Preparation and production of collateral promotional materials such as brochures, flyers and maps featuring assessed lodging businesses;
• Attendance of professional industry conferences and affiliation events to promote assessed lodging businesses;
• Lead generation activities designed to attract tourists and group events to assessed lodging businesses;
• Director of Sales and General Manager meetings to plan and coordinate tourism promotion efforts for assessed lodging businesses; and
• Development and maintenance of a website designed to promote assessed lodging businesses.

Administration and Operations
The administration and operations portion of the budget shall continue to be utilized for administrative staffing costs, office costs, and other general administrative costs such as insurance, legal, and accounting fees.

City Collection Fee
The City of Gilroy shall continue to be paid a fee equal to two percent (2%) of the amount of assessment collected to cover its costs of collection and administration.

Contingency/Reserve
The budget includes a contingency line item to continue to account for uncollected assessments, if any. If there are contingency funds collected, they may be held in a reserve fund or utilized for other program, administration or renewal costs at the discretion of the Owners’ Association. Policies relating to contributions to the reserve fund, the target amount of the reserve fund, and expenditure of monies from the reserve fund shall be set by the Board of Directors of the Owners’ Association. The reserve fund may be used for the costs of renewing the District.

COST
2024 Projections
The cost of providing improvements and activities for 2024 is consistent with the Plan. The categorical breakdown for the assessment budget is below. All budget category allocations are within the authorized fifteen percent (15%) adjustment of the total assessment budget from the prior year.

Category % CY 2024 Carry Over* Total CY 2024
Budget

Gilroy Tourism Business Improvement District
2023 Annual Report Page 6
Estimated
Collections
Sales & Marketing 77% $237,650.00 $83,753.00 $321,403.00 Administration 21% $64,925.00 $1,813.00 $66,738.00
City Fee 2% $6,175.00 $0 $6,175.00
Contingency/Reserve 0% $0 $114,093.00 $114,093.00
Total 100% $308,750.00 $199,659.00 $508,409.00
*Carry over may include unspent funds from multiple years 2023 Actual
The projected 2023 collections were approximately $325,000. Actual collections were more than expected, totaling $359,367. Budgeted and actual expenses are shown below.

Category CY 2023 Budgeted CY 2023 Actuals
% $ $ Spent $ Carryover
Marketing & Sales 78% $253,575 $169,823 $83,753
Administration 20% $64,925 $63,112 $1,813
Contingency/Reserve 0% $0 $0 $114,093
City Collection Fee 2% $6,500 $7,187 $0
Totals 100% $325,000 $240,122 $199,659

Gilroy Tourism Business Improvement District
2023 Annual Report Page 7

ASSESSMENT
There is no change in the method and basis of levying the assessment.

Assessment
The initial annual assessment rate is two percent (2%) of gross short term room rental revenue. Based on the benefit received, assessments will not be collected on: stays of more than thirty (30) consecutive days; and stays by any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty.

The assessment rate may be subject to increases during the ten (10) year term. At the discretion of the Gilroy Visitors Bureau, Inc. DBA the Gilroy Welcome Center’s (GWC’s) Board, the assessment rate may be increased by a maximum of two percent (2%) per year to a maximum rate of five percent (5%).

The assessment rate may also be decreased by the GWC’s Board, but shall not drop below two percent (2%) of gross room rental revenue. Any increase or decrease authorized by the GWC’s Board shall be included in the Annual Report and approved by the Gilroy City Council during the fiscal year annual report review. Thereafter, the increase or decrease will be effective starting the following fiscal year.

The term “gross room rental revenue” as used herein means: the consideration charged, whether or not received, for the occupancy of space in a lodging business valued in money, whether to be received in money, goods, labor or otherwise, including all receipts, cash, credits and property and services of any kind or nature, without any deduction therefrom whatsoever. Gross room rental revenue shall not include any federal, state or local taxes collected, including but not limited to transient occupancy taxes.

The assessment is levied upon and a direct obligation of the assessed lodging business. However, the assessed lodging business may, at its discretion, pass the assessment on to transients. The amount of assessment, if passed on to each transient, shall be disclosed in advance and separately stated from the amount of rent charged and any other applicable taxes, and each transient shall receive a receipt for payment from the business. The assessment shall be disclosed as the “GTBID Assessment.” The assessment is imposed solely upon, and is the sole obligation of the assessed lodging business even if it is passed on to transients. The assessment shall not be considered revenue for any purposes, including calculation of transient occupancy taxes.

Bonds shall not be issued.

Time and Manner for Collecting Assessments
The GTBID assessment was implemented beginning January 1, 2018 and will continue for ten (10) years through December 31, 2027. The City will continue to be responsible for collecting the assessment on a quarterly basis (including any delinquencies, penalties and interest) from each assessed lodging business. The City shall continue to take all reasonable efforts to collect the assessments from each lodging business. The City shall continue to forward the assessments collected to the Owners’ Association within thirty (30) days of receipt.

Delinquencies
The GTBID shall continue to reimburse the City of Gilroy for any costs associated with collecting unpaid assessments. If sums in excess of the delinquent GTBID assessment are sought to be recovered

Gilroy Tourism Business Improvement District
2023 Annual Report Page 8
in the same collection action by the City, the GTBID shall continue to bear its prorate share of such collection costs. Assessed lodging businesses which are delinquent in paying the assessment shall continue to be responsible for paying:

1. Original Delinquency: Any lodging business that fails to remit any assessment imposed within the time required shall pay a penalty of ten percent (10%) of the amount of the assessment in addition to the amount of the assessment.

2. Continued Delinquency: Any lodging business that fails to remit any delinquent remittance on or before a period of thirty (30) days following the date on which the remittance first became delinquent shall pay a second delinquency penalty of ten percent (10%) of the amount of the assessment in addition to the amount of the assessment and the ten percent (10%) penalty first imposed.

3. Fraud: If the City determines that the non-payment of any remittance due is due to fraud, a penalty of twenty-five percent (25%) of the amount of the assessment shall be added thereto in addition to the penalties stated in subsections 1 and 2 of this section.

4. Interest: In addition to the penalties imposed, any lodging business that fails to remit any assessment imposed shall pay interest at the rate of eighteen percent (18%) per annum. The interest shall be calculated per month or fraction thereof on the amount of the assessment and penalties, from the date on which the remittance first became delinquent until paid.

5. Penalties Merged with Assessment: Every penalty imposed and such interest as accrues shall become part of the assessment herein required to be paid.

In the event the City is unable to collect the delinquent assessments, the assessment amount including penalties and interest will be added to the business license renewal for the lodging business the following year. Upon collection of delinquent assessments, penalties and interest, the City shall retain the penalties and interest to cover the costs of collection, and shall forward the original assessment amount to the GWC Board.

Gilroy Tourism Business Improvement District
2023 Annual Report Page 9

SURPLUS AND OTHER FUNDING
Surplus
The amount of surplus to be carried over from previous years is approximately $199,659.

Other Funding
There are expected to be contributions from sources other than assessment funds. The estimated amount of any contributions to be made from sources other than GTBID assessments for 2024 include TBID Interest Income in the amount of $1,950.

Gilroy Tourism Business Improvement District
2023 Annual Report Page 10
ATTACHMENT 1

GTBID ASSESSEE LISTING

Gilroy Tourism Business Improvement District
2023 Annual Report Page 11
ATTACHMENT 2

VISIT GILROY TBID BUDGET PERFORMANCE (P&L)

Gilroy Tourism Business Improvement District
2023 Annual Report Page 12

Gilroy Tourism Business Improvement District
2024 Annual Report

GILROY TOURISM BUSINESS

IMPROVEMENT DISTRICT
2024 ANNUAL REPORT
Submitted to the City of Gilroy pursuant to Streets and Highways Code Section 36650 for the period from January 1, 2024-December 31, 2024

Gilroy Tourism Business Improvement District
2024 Annual Report

BOUNDARIES
There are no proposed changes to the Gilroy Tourism Business Improvement District (GTBID) boundaries. There have been no new lodging businesses, and no lodging businesses have closed.

The GTBID will continue to include all lodging businesses, existing and in the future, available for public occupancy, located within the boundaries of the City of Gilroy (City), as shown on the map below.

Gilroy Tourism Business Improvement District
2024 Annual Report

IMPROVEMENTS AND ACTIVITIES
The improvements and activities to be provided for 2025 are consistent with the Management District Plan (Plan).

Sales and Marketing
A sales and marketing program will continue to promote assessed lodging businesses as tourist, meeting, and event destinations. The sales and marketing program will continue to have a central theme of promoting Gilroy as a desirable place for overnight visits. The program will continue to have the goal of increasing overnight visitation and room night sales at assessed lodging businesses, and may include the following activities:
• Internet marketing efforts to increase awareness and optimize internet presence to drive overnight visitation and room sales to assessed lodging businesses; • Print ads in magazines and newspapers, television ads, and radio ads targeted at potential visitors to drive overnight visitation and room sales to assessed lodging businesses; • Social media marketing efforts designed to drive overnight visitation and room sales to assessed lodging businesses;
• Attendance of trade and consumer shows to promote assessed lodging businesses; • Sales blitzes for assessed lodging businesses;
• Familiarization tours of assessed lodging businesses; • Preparation and production of collateral promotional materials such as brochures, flyers and maps featuring assessed lodging businesses;
• Attendance of professional industry conferences and affiliation events to promote assessed lodging businesses;
• Lead generation activities designed to attract tourists and group events to assessed lodging businesses;
• Director of Sales and General Manager meetings to plan and coordinate tourism promotion efforts for assessed lodging businesses; and
• Development and maintenance of a website designed to promote assessed lodging businesses.

Administration and Operations
The administration and operations portion of the budget shall continue to be utilized for administrative staffing costs, office costs, and other general administrative costs such as insurance, legal, and accounting fees.

City Collection Fee
The City of Gilroy shall continue to be paid a fee equal to two percent (2%) of the amount of assessment collected to cover its costs of collection and administration.

Contingency/Reserve
The budget includes a contingency line item to continue to account for uncollected assessments, if any. If there are contingency funds collected, they may be held in a reserve fund or utilized for other program, administration or renewal costs at the discretion of the Owners’ Association. Policies relating to contributions to the reserve fund, the target amount of the reserve fund, and expenditure of monies from the reserve fund shall be set by the Board of Directors of the Owners’ Association. The reserve fund may be used for the costs of renewing the District.

Gilroy Tourism Business Improvement District
2024 Annual Report
COST
2025 Projections
The cost of providing improvements and activities for 2025 is consistent with the Plan. The categorical breakdown for the assessment budget is below. All budget category allocations are within the authorized fifteen percent (15%) adjustment of the total assessment budget from the prior year.

Category %
CY 2025
Estimated
Collections
Carry Over* Total CY 2025
Budget
Sales & Marketing 81% $303,500.00 $0 $303,500.00
Administration 17% $64,925.00 $0 $64,925.00
City Fee 2% $8,500.00 $0 $8,500.00
Contingency/Reserve 0% $0 $247,594.00 $247,594.00
Total 100% $376,925.00 $247,594.00 $624,519.00
*Carry over may include unspent funds from multiple years 2024 Actual
The projected 2024 collections were approximately $308,750. Actual collections were more than expected, totaling $328,449. Budgeted and actual expenses are shown below.

Category CY 2024 Budgeted CY 2024 Actuals
% $ $ Spent $ Carryover
Marketing & Sales 77% $237,650 $210,073 $0
Administration 21% $64,925 $65,820 $0
Contingency/Reserve 0% $0 $0 $247,594
City Collection Fee 2% $6,175 $6,569 $0
Totals 100% $308,750 $282,462 $247,594

Gilroy Tourism Business Improvement District
2024 Annual Report

ASSESSMENT
There is no change in the method and basis of levying the assessment.

Assessment
The initial annual assessment rate is two percent (2%) of gross short term room rental revenue. Based on the benefit received, assessments will not be collected on: stays of more than thirty (30) consecutive days; and stays by any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty.

The assessment rate may be subject to increases during the ten (10) year term. At the discretion of the Gilroy Visitors Bureau, Inc. DBA the Gilroy Welcome Center’s (GWC’s) Board, the assessment rate may be increased by a maximum of two percent (2%) per year to a maximum rate of five percent (5%).

The assessment rate may also be decreased by the GWC’s Board, but shall not drop below two percent (2%) of gross room rental revenue. Any increase or decrease authorized by the GWC’s Board shall be included in the Annual Report and approved by the Gilroy City Council during the fiscal year annual report review. Thereafter, the increase or decrease will be effective starting the following fiscal year.

The term “gross room rental revenue” as used herein means: the consideration charged, whether or not received, for the occupancy of space in a lodging business valued in money, whether to be received in money, goods, labor or otherwise, including all receipts, cash, credits and property and services of any kind or nature, without any deduction therefrom whatsoever. Gross room rental revenue shall not include any federal, state or local taxes collected, including but not limited to transient occupancy taxes.

The assessment is levied upon and a direct obligation of the assessed lodging business. However, the assessed lodging business may, at its discretion, pass the assessment on to transients. The amount of assessment, if passed on to each transient, shall be disclosed in advance and separately stated from the amount of rent charged and any other applicable taxes, and each transient shall receive a receipt for payment from the business. The assessment shall be disclosed as the “GTBID Assessment.” The assessment is imposed solely upon, and is the sole obligation of the assessed lodging business even if it is passed on to transients. The assessment shall not be considered revenue for any purposes, including calculation of transient occupancy taxes.

Bonds shall not be issued.

Time and Manner for Collecting Assessments
The GTBID assessment was implemented beginning January 1, 2018 and will continue for ten (10) years through December 31, 2027. The City will continue to be responsible for collecting the assessment on a quarterly basis (including any delinquencies, penalties and interest) from each assessed lodging business. The City shall continue to take all reasonable efforts to collect the assessments from each lodging business. The City shall continue to forward the assessments collected to the Owners’ Association within thirty (30) days of receipt.

Delinquencies
The GTBID shall continue to reimburse the City of Gilroy for any costs associated with collecting unpaid assessments. If sums in excess of the delinquent GTBID assessment are sought to be recovered in the same collection action by the City, the GTBID shall continue to bear its prorate share of such

Gilroy Tourism Business Improvement District
2024 Annual Report
collection costs. Assessed lodging businesses which are delinquent in paying the assessment shall continue to be responsible for paying:

1. Original Delinquency: Any lodging business that fails to remit any assessment imposed within the time required shall pay a penalty of ten percent (10%) of the amount of the assessment in addition to the amount of the assessment.

2. Continued Delinquency: Any lodging business that fails to remit any delinquent remittance on or before a period of thirty (30) days following the date on which the remittance first became delinquent shall pay a second delinquency penalty of ten percent (10%) of the amount of the assessment in addition to the amount of the assessment and the ten percent (10%) penalty first imposed.

3. Fraud: If the City determines that the non-payment of any remittance due is due to fraud, a penalty of twenty-five percent (25%) of the amount of the assessment shall be added thereto in addition to the penalties stated in subsections 1 and 2 of this section.

4. Interest: In addition to the penalties imposed, any lodging business that fails to remit any assessment imposed shall pay interest at the rate of eighteen percent (18%) per annum. The interest shall be calculated per month or fraction thereof on the amount of the assessment and penalties, from the date on which the remittance first became delinquent until paid.

5. Penalties Merged with Assessment: Every penalty imposed and such interest as accrues shall become part of the assessment herein required to be paid.

In the event the City is unable to collect the delinquent assessments, the assessment amount including penalties and interest will be added to the business license renewal for the lodging business the following year. Upon collection of delinquent assessments, penalties and interest, the City shall retain the penalties and interest to cover the costs of collection, and shall forward the original assessment amount to the GWC Board.

Gilroy Tourism Business Improvement District
2024 Annual Report

SURPLUS AND OTHER FUNDING
Surplus
The amount of surplus to be carried over from previous years is approximately $247,594. It is expected these funds will be used to pay for website licensing, branding and visual identity, and website construction.

Other Funding
There are expected to be contributions from sources other than assessment funds. The estimated amount of any contributions to be made from sources other than GTBID assessments for 2025 include TBID Interest Income in the amount of $1,395.

Gilroy Tourism Business Improvement District
2024 Annual Report
ATTACHMENT 1

GTBID ASSESSEE LISTING

Gilroy Tourism Business Improvement District
2024 Annual Report
ATTACHMENT 2

VISIT GILROY TBID BUDGET PERFORMANCE (P&L)

Gilroy Tourism Business Improvement District
2024 Annual Report

Gilroy Tourism Business Improvement District
2025 Annual Report

GILROY TOURISM BUSINESS

IMPROVEMENT DISTRICT
2025 ANNUAL REPORT
Submitted to the City of Gilroy pursuant to Streets and Highways Code Section 36650 for the period from January 1, 2025-December 31, 2025

Gilroy Tourism Business Improvement District
2025 Annual Report

BOUNDARIES
There are no proposed changes to the Gilroy Tourism Business Improvement District (GTBID) boundaries. There have been no new lodging businesses, and no lodging businesses have closed.

The GTBID will continue to include all lodging businesses, existing and in the future, available for public occupancy, located within the boundaries of the City of Gilroy (City), as shown on the map below.

Gilroy Tourism Business Improvement District
2025 Annual Report

IMPROVEMENTS AND ACTIVITIES
The improvements and activities to be provided for 2026 are consistent with the Management District Plan (Plan).

Sales and Marketing
A sales and marketing program will continue to promote assessed lodging businesses as tourist, meeting, and event destinations. The sales and marketing program will continue to have a central theme of promoting Gilroy as a desirable place for overnight visits. The program will continue to have the goal of increasing overnight visitation and room night sales at assessed lodging businesses, and may include the following activities:
• Internet marketing efforts to increase awareness and optimize internet presence to drive overnight visitation and room sales to assessed lodging businesses; • Print ads in magazines and newspapers, television ads, and radio ads targeted at potential visitors to drive overnight visitation and room sales to assessed lodging businesses; • Social media marketing efforts designed to drive overnight visitation and room sales to assessed lodging businesses;
• Attendance of trade and consumer shows to promote assessed lodging businesses; • Sales blitzes for assessed lodging businesses;
• Familiarization tours of assessed lodging businesses; • Preparation and production of collateral promotional materials such as brochures, flyers and maps featuring assessed lodging businesses;
• Attendance of professional industry conferences and affiliation events to promote assessed lodging businesses;
• Lead generation activities designed to attract tourists and group events to assessed lodging businesses;
• Director of Sales and General Manager meetings to plan and coordinate tourism promotion efforts for assessed lodging businesses; and
• Development and maintenance of a website designed to promote assessed lodging businesses.

Administration and Operations
The administration and operations portion of the budget shall continue to be utilized for administrative staffing costs, office costs, and other general administrative costs such as insurance, legal, and accounting fees.

City Collection Fee
The City of Gilroy shall continue to be paid a fee equal to two percent (2%) of the amount of assessment collected to cover its costs of collection and administration.

Contingency/Reserve
The budget includes a contingency line item to continue to account for uncollected assessments, if any. If there are contingency funds collected, they may be held in a reserve fund or utilized for other program, administration or renewal costs at the discretion of the Owners’ Association. Policies relating to contributions to the reserve fund, the target amount of the reserve fund, and expenditure of monies

Gilroy Tourism Business Improvement District
2025 Annual Report
from the reserve fund shall be set by the Board of Directors of the Owners’ Association. The reserve fund may be used for the costs of renewing the District.

COST
2026 Projections
The cost of providing improvements and activities for 2026 is consistent with the Plan. The categorical breakdown for the assessment budget is below. All budget category allocations are within the authorized fifteen percent (15%) adjustment of the total assessment budget from the prior year.

Category %
CY 2026
Estimated
Collections
Carry Over* Total CY 2026
Budget
Sales & Marketing 79% $257,400.00 $0 $257,400.00
Administration 19% $59,100.00 $0 $59,100.00
City Fee 2% $8,500.00 $0 $8,500.00
Contingency/Reserve 0% $0 $167,303.00 $167,303.00
Total 100% $325,000.00 $167,303.00 $492,303.00
*Carry over may include unspent funds from multiple years 2025 Actual
The projected 2025 collections were approximately $325,000. Actual collections were more than expected, totaling $351,749. Budgeted and actual expenses are shown below.

Category CY 2025 Budgeted CY 2025 Actuals
% $ $ Spent $ Carryover
Marketing & Sales 78% $251,575 $326,372 $0
Administration 20% $64,925 $68,828 $0
Contingency/Reserve 0% $0 $31,200 $167,303
City Collection Fee 2% $8,500 $7,035 $0
Totals 100% $325,000 $433,435 $167,303

Gilroy Tourism Business Improvement District
2025 Annual Report

ASSESSMENT
There is no change in the method and basis of levying the assessment.

Assessment
The initial annual assessment rate is two percent (2%) of gross short term room rental revenue. Based on the benefit received, assessments will not be collected on: stays of more than thirty (30) consecutive days; and stays by any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty.

The assessment rate may be subject to increases during the ten (10) year term. At the discretion of the Gilroy Visitors Bureau, Inc. DBA the Gilroy Welcome Center’s (GWC’s) Board, the assessment rate may be increased by a maximum of two percent (2%) per year to a maximum rate of five percent (5%).

The assessment rate may also be decreased by the GWC’s Board, but shall not drop below two percent (2%) of gross room rental revenue. Any increase or decrease authorized by the GWC’s Board shall be included in the Annual Report and approved by the Gilroy City Council during the fiscal year annual report review. Thereafter, the increase or decrease will be effective starting the following fiscal year.

The term “gross room rental revenue” as used herein means: the consideration charged, whether or not received, for the occupancy of space in a lodging business valued in money, whether to be received in money, goods, labor or otherwise, including all receipts, cash, credits and property and services of any kind or nature, without any deduction therefrom whatsoever. Gross room rental revenue shall not include any federal, state or local taxes collected, including but not limited to transient occupancy taxes.

The assessment is levied upon and a direct obligation of the assessed lodging business. However, the assessed lodging business may, at its discretion, pass the assessment on to transients. The amount of assessment, if passed on to each transient, shall be disclosed in advance and separately stated from the amount of rent charged and any other applicable taxes, and each transient shall receive a receipt for payment from the business. The assessment shall be disclosed as the “GTBID Assessment.” The assessment is imposed solely upon, and is the sole obligation of the assessed lodging business even if it is passed on to transients. The assessment shall not be considered revenue for any purposes, including calculation of transient occupancy taxes.

Bonds shall not be issued.

Time and Manner for Collecting Assessments
The GTBID assessment was implemented beginning January 1, 2018 and will continue for ten (10) years through December 31, 2027. The City will continue to be responsible for collecting the assessment on a quarterly basis (including any delinquencies, penalties and interest) from each assessed lodging business. The City shall continue to take all reasonable efforts to collect the assessments from each lodging business. The City shall continue to forward the assessments collected to the Owners’ Association within thirty (30) days of receipt.

Delinquencies
The GTBID shall continue to reimburse the City of Gilroy for any costs associated with collecting unpaid assessments. If sums in excess of the delinquent GTBID assessment are sought to be recovered

Gilroy Tourism Business Improvement District
2025 Annual Report
in the same collection action by the City, the GTBID shall continue to bear its prorate share of such collection costs. Assessed lodging businesses which are delinquent in paying the assessment shall continue to be responsible for paying:

1. Original Delinquency: Any lodging business that fails to remit any assessment imposed within the time required shall pay a penalty of ten percent (10%) of the amount of the assessment in addition to the amount of the assessment.

2. Continued Delinquency: Any lodging business that fails to remit any delinquent remittance on or before a period of thirty (30) days following the date on which the remittance first became delinquent shall pay a second delinquency penalty of ten percent (10%) of the amount of the assessment in addition to the amount of the assessment and the ten percent (10%) penalty first imposed.

3. Fraud: If the City determines that the non-payment of any remittance due is due to fraud, a penalty of twenty-five percent (25%) of the amount of the assessment shall be added thereto in addition to the penalties stated in subsections 1 and 2 of this section.

4. Interest: In addition to the penalties imposed, any lodging business that fails to remit any assessment imposed shall pay interest at the rate of eighteen percent (18%) per annum. The interest shall be calculated per month or fraction thereof on the amount of the assessment and penalties, from the date on which the remittance first became delinquent until paid.

5. Penalties Merged with Assessment: Every penalty imposed and such interest as accrues shall become part of the assessment herein required to be paid.

In the event the City is unable to collect the delinquent assessments, the assessment amount including penalties and interest will be added to the business license renewal for the lodging business the following year. Upon collection of delinquent assessments, penalties and interest, the City shall retain the penalties and interest to cover the costs of collection, and shall forward the original assessment amount to the GWC Board.

Gilroy Tourism Business Improvement District
2025 Annual Report

SURPLUS AND OTHER FUNDING
Surplus
The amount of surplus to be carried over from previous years is approximately $167,303. It is expected these funds will be used to pay for website licensing, branding and visual identity, and website updates.

Other Funding
There are expected to be contributions from sources other than assessment funds. The estimated amount of any contributions to be made from sources other than GTBID assessments for 2026 include TBID Interest Income in the amount of $1,395.

Gilroy Tourism Business Improvement District
2025 Annual Report
ATTACHMENT 1

GTBID ASSESSEE LISTING
Days Inn 8292 Murray Avenue
Gilroy, CA 95020
Best Western Plus/Forest Park Inn 375 Leavesley Road
Gilroy, CA 95020
Budget Motel 8897 Monterey Road
Gilroy, CA 95020
Garlic Farm Inn 5920 Travel Park Circle
Gilroy, CA 95020
Hampton Inn & Suites 5975 Travel Park Circle
Gilroy, CA 95020
Hilton Garden Inn 6070 Monterey Road
Gilroy, CA 95020
Kings Rest Motel 8175 Monterey Road
Gilroy, CA 95020
Motel 6 6110 Monterey Road
Gilroy, CA 95020
Travel Inn 5530 Monterey Road
Gilroy, CA 95020
Oaks Motel 8065 Monterey Road
Gilroy, CA 95020
Pacheco Pass Motel 570 Old Gilroy Street
Gilroy, CA 95020
Quality Inn & Suites 8430 Murray Avenue
Gilroy, CA 95020
Comfort Inn & Suites 8435 San Ysidro Avenue
Gilroy, CA 95020
Gilroy Inn 611 Leavesley Road
Gilroy, CA 95020

Gilroy Tourism Business Improvement District
2025 Annual Report
ATTACHMENT 2

VISIT GILROY TBID BUDGET PERFORMANCE (P&L)

Gilroy Tourism Business Improvement District
2025 Annual Report

6.7. City of Gilroy

STAFF REPORT
Agenda Item Title: Approve the Second Amendment to the Agreement with Dewberry Engineers Inc. to Add $187,766.15 for the Design of the Lions Creek Trail and Santa Teresa Blvd/Day Rd East Bicycle and Pedestrian Improvements and Adopt a Budget
Amendment Resolution for CIP Project No. 800270
Meeting Date: April 20, 2026
From: Matt Morley, City Administrator
Department: Public Works
Submitted by: John Doughty, Public Works Director
Prepared by: Julie Oates, Engineer
STRATEGIC PLAN GOALS: Maintain and Improve City Infrastructure

RECOMMENDATION

1. Approve the second amendment to the agreement with Dewberry Engineers Inc. to add $187,766.15 for the design of the Lions Creek Trail and Santa Teresa Blvd/Day Rd East Bicycle and Pedestrian Improvements and authorize the City Administrator to execute the amendment and associated documents.

2. Adopt a budget amendment resolution to appropriate $187,766.15 from Gas Tax Fund (205) for the Lions Creek Trail and Santa Teresa Blvd/Day Rd East Bicycle and Pedestrian Improvements (Project No. 800270).

EXECUTIVE SUMMARY
The Lions Creek Trail Project (Project) will construct two segments of Class I multi-use trails along Lions Creek. One segment will extend from Tapestry Drive near Christopher High School to the Santa Teresa Boulevard/ Day Road East intersection, and the other segment will extend from the Santa Teresa Boulevard/Day Road East intersection to Kern Avenue. The project also includes the design of pavement markings, curb ramps, and traffic signal modifications at the Santa Teresa Blvd/ Day Rd East intersection to

6.7. provide a bicycle and pedestrian crossing of Santa Teresa Blvd at Day Road East.

BACKGROUND
Design of the Project by Dewberry Engineers Inc. (previously Drake Haglan and Associates) began in 2015. Due to funding constraints at the time, the Project was put on hold and the design was not completed.

In 2023, the City was awarded grant funds for the Project which allowed staff to resume the Project.

In April 2025, the City Council awarded a contract to Dewberry Engineers Inc. in the amount of $189,652.26 for the design of the Project. Dewberry was chosen in part because of their previous work and familiarity with the project.

In September 2025, the City Council approved the first amendment to the agreement with Dewberry Engineers Inc. in the amount of $29,880. The first amendment provided for an updated topographic survey, which was needed because Valley Water constructed improvements in the Project area in the years between the initial design and resumption of the Project.

ANALYSIS
The updated topographic survey and new Valley Water requirements (in effect after 2015) require significant revisions to the vertical and horizontal alignment of both segments of the trail. The design also requires additional scope for the traffic signal modifications at the Santa Teresa Blvd/Day Rd East intersection, as well as guardrail improvements and design of additional curb ramps. Valley Water is also requiring revisions to the original design for their access needs, including regrading, drainage updates, and additional space for their maintenance vehicles. The changes in the Project’s design also require additional coordination with Santa Clara County Department of Roads and Airports. In addition, there have been unanticipated costs due to the presence of listed species in the vicinity of the project.

These changes in scope require additional funds for project management; updating the 90% and 100% Plans, Specifications, and Estimates; environmental compliance, and utility coordination.

ALTERNATIVES
The City Council may choose not to approve the second amendment to the agreement with Dewberry Engineers Inc. Staff does not recommend this as the the additional funds are critical for the consultant to finalize the Project plans, specifications, and estimate (PS&E). The final PS&E are required prior to the City being able to obtain

6.7. encroachment permits from Valley Water and Santa Clara County.

Once the final PS&E has completed and required encroachment permits have been obtained, the City can secure Caltrans approval to meet the September 2026 deadline to obligate grant funds for construction.

FISCAL IMPACT/FUNDING SOURCE
Staff recommends appropriating an additional $187,766.15 from Gas Tax Fund (205) for the second amendment with Dewberry Engineers Inc. for a total contract amount of $407,298.41. Dewberry Engineers Inc. will only bill for actual work completed. Any funds not spent on the Project will be returned to Gas Tax Fund (205).

The recently completed FY25 Citywide Pavement Rehabilitation Project had savings of $216,657.34 in Gas Tax Fund (205). Therefore, staff recommends a portion of these savings be appropriated to the Lions Creek Trail and Santa Teresa Blvd/Day Rd East Bicycle and Pedestrian Improvements (Project No. 800270).

PUBLIC OUTREACH
N/A

NEXT STEPS
If approved by City Council, staff will execute the second amendment and proceed with completing the design of the Project.

Attachments:

1. Item 6.7 Budget Amendment Resolution

2. Dewberry 2nd Amendment

3. Exhibit B-2 Amended Scope

4. Exhibit D-2 Payment Schedule

RESOLUTION 2026-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF GILROY TO APPROVE A BUDGET AMENDMENT FOR
THE LIONS CREEK TRAIL PROJECT (NO. 800270) AND

APPROVE A SECOND AMENDMENT TO THE

AGREEMENT FOR SERVICES WITH DEWBERRY
ENGINEERS, INC.

WHEREAS, the City Administrator prepared and submitted to the City Council a budget for the City of Gilroy for Fiscal Years 2 0 2 5 - 2 0 2 6 a n d 2 0 2 6 - 2 0 2 7 , and the City Council carefully examined, considered, and adopted the same on June 2, 2025; and WHEREAS, City Staff has prepared and submitted to the City Council a proposed amendment to said budget for Fiscal Year 2025-2026 for the City of Gilroy in the staff report dated April 20, 2026; and
WHEREAS, City Staff has prepared a Second Amendment to the Agreement for Services with Dewberry Engineers, Inc. for the Lions Creek Trail Project (No. 800270) to increase the contract amount by $187,766.15 for a total contract amount of $407,298.41.

NOW, THEREFORE, BE IT RESOLVED the appropriations for Fiscal Year 2025-2026 for the Gas Tax Fund 205 to Lions Creek Trail Project (No. 800270) shall be increased by $187,766.74.

PASSED AND ADOPTED by the City Council of the City of Gilroy at a regular meeting duly held on the 20th day of April 2026 by the following roll call vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

APPROVED:

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

Resolution No. 2026-XX
Lions Creek Trail Project – Budget Amendment Resolution City Council Regular Meeting | April 20, 2026

CERTIFICATE OF THE CLERK
I, Kim Mancera, City Clerk of the City of Gilroy, do hereby certify that the attached Resolution No. 2026-XX is an original resolution, or true and correct copy of a City Resolution, duly adopted by the Council of the City of Gilroy at a Regular Meeting of said held on Council held Monday, April 20, 2026, with a quorum present.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of the City of Gilroy this Date.

Kim Mancera
City Clerk of the City of Gilroy
(Seal)

-1-
4845-8215-5540v1
MDOLINGER\04706083
SECOND AMENDMENT TO THE AGREEMENT WITH DEWBERRY ENGINEERS, INC.

FOR DESIGN SERVICES FOR THE LIONS CREEK TRAIL PROJECT
WHEREAS, the City of Gilroy, a municipal corporation (“City”), and Dewberry Engineers, Inc. entered into that certain agreement entitled Agreement for Services – Lions Creek Trail, effective on April 7, 2025, hereinafter referred to as “Original Agreement”; and WHEREAS, City and Dewberry Engineers, Inc. have determined it is in their mutual interest to amend certain terms of the Original Agreement.

NOW, THEREFORE, FOR VALUABLE CONSIDERATION, THE PARTIES AGREE AS FOLLOWS:

1. Article 1 (Term of Agreement) of the Original Agreement shall be amended to read as follows:

This Agreement will become effective on April 7, 2025 and will continue in effect through June 30, 2028 unless terminated in accordance with the provision of Article 7 of the original agreement.

2. Article 4 (Compensation) of the Original Agreement shall be amended to read as follows:

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 $407,298.41.

3. Exhibit “B” of the Original Agreement shall include Exhibit “B-2” in Attachment 1.

4. Exhibit “D” of the Original Agreement shall include Exhibit “D-2” in Attachment 2.

4. This Amendment shall be effective on May 1, 2026.

5. Except as expressly modified herein, all of the provisions of the Original Agreement shall remain in full force and effect. In the case of any inconsistencies between the Original Agreement and this Amendment, the terms of this Amendment shall control.

6. This Amendment may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

IN WITNESS WHEREOF, the parties have caused this Amendment to be executed as of the dates set forth besides their signatures below.

CITY OF GILROY
By:
[signature]
Matt Morley
[employee name]
City Administrator
[title/department]
Date:

Approved as to Form

City Attorney
DEWBERRY ENGINEERS, INC.

By:
[signature]
F. Jose Silva
[name]
Vice President
[title]
Date:

ATTEST:

City Clerk

Exhibit B – Scope of Work
3/06/2026

Please note that this scope of services only includes the tasks that are being amended.

This amendment is requested to supplement budget used for additional tasks required as follows:

Trail Redesign
The original assumption was that the 65% plans were completed in 2016. However, due to new SCVWD requirements and new topography needed, the original 65% was redesigned. Since 2016, SCVWD conducted grading adjustments along the creek, therefore a new topographic survey was needed. Coupled with the new topography, the SCVWD requirement to grade the trail away from the creek resulted in a complete redesign of the west and east trails vertical and horizontal alignment along with drainage system modifications. The west and east trail plans are to be combined into one plan set.

Santa Teresa Boulevard and Day Road Intersection
CITY requested that CONSULTANT add electrical signal work, add guard railing, and potentially add two new curb ramp designs.

SCVWD Access
SCVWD access needs require revisions to the original design including regrading, drainage updates, and additional space.

1.0 PROJECT MANAGEMENT
Task 1.2 - Project Management
Task 1.2 1 – Project Management
CONSULTANT will provide additional project management for the duration of the project. This includes additional meetings.

3.0 PLANS, SPECIFICATIONS, AND ESTIMATES (PS&E) (60%, 90%, 100% PS&E) CONSULTANT to revise plans to incorporate new topography, new SCVWD requirements, additional signal, guard railing, and potentially new curb ramps.

Task 3.2– 90% Plans, Specifications, and Estimate (PS&E) CONSULTANT to prepare additional plans and details to accommodate the added design elements originally not included. It is anticipated that additional comment responses will be required to acquire CITY and SCVWD approval of the plans. This submittal will include a set for the intersection plans, as well as a set including the West Trail, East Trail, and Access Driveway.

Exhibit B – Scope of Work
3/06/2026

Redesign of trail and regrading longitudinal ditches requires performing additional civil/roadway quantity updates to accommodate. Revised trail requires corridor remodeling and preparing new design cross section iterations. This is a significant effort beyond the original budgeted 90% update.

Task 3.3 – 100% Plans, Specifications, and Estimate
CONSULTANT to prepare additional plans and details to accommodate the added design elements originally not included.

Task 3.4 – Utility Coordination
CONSULTANT to assist the CITY with utility coordination to verify if relocations are required.

5.0 BIDDING AND CONSTRUCTION SUPPORT
Construction support hours will be billed on a time and materials basis up to the hours estimated in this scope and fee. Work in this task will need to be revisited if additional support is required.

Task 5.1 – Bidding Support
CONSULTANT will assist CITY during the bidding process by responding to bidder inquiries, and preparing addenda to bid documents, and assist with bid evaluation.

Task 5.2 – Construction Support
CONSULTANT will support CITY during construction. CONSULATNT will attend one (1) preconstruction meeting, if required. Support includes engineering and environmental elements.

CONSULTANT will provide consultation and interpretation of contract documents. Written responses will be provided to requests for information (RFI’s) and supplemental or revised drawings may be issued to provide clarity to the Resident Engineer and Contractor. In the event that inquiries result in the need to modify the bid documents, CONSULTANT will be available to assist in the preparation of Change Orders. CONSULTANT will attend up to three (3) site visits when requested by the CITY to discuss project challenges, to review field conditions, or to discuss RFI’s.

Using mark-ups received from the Resident Engineer and supplemental or revised drawings from RFI’s, CONSULTANT will prepare final record drawings. These drawings will be prepared electronically in CAD format and provided in CAD and PDF format.

Lions Creek Trail
City of Gilroy
EXHIBIT C - Lions Creek Trail Fee

HOURS COST HOURS COST HOURS COST

1.0 1.1. 24 $8,518.46 24 $8,518

1.0 24 $8,518.46 24 $8,518

3.0 3.2

3.2.1 288 $47,221.87 88 $12,189.83 376 $59,412

3.2.3 18 $3,166.50 18 $3,167

3.2.5 50 $8,079.76 50 $8,080

3.3 3.3.1 208 $34,515.16 208 $34,515

3.3.3 6 $1,324.03 6 $1,324

3.4 26 $4,503.66 26 $4,504

3.0 596 $98,811.00 88 $12,189.83 684 $111,001

5.1 40 $7,875.93 36 $5,188.39 76 $13,064

5.2 247 $41,401.90 56 $9,025.63 303 $50,428

5.0 287 $49,277.84 92 $14,214.02 379 $63,492
907 $156,607.30 180 $26,403.85 1087 $183,011.15
Task # Task Name
Project Management
Project Management
Prepare 90% Estimate
Total Task 5
Prepare 90% PS&E
Response to 90% Comments
Prepare 100% PS&E
Prepare 100% Plans
Prepare 100% Estimate
Utility Assistance
Prepare 90% Plans
Prepare PS&E (90%,100%)
Construction Support
Bidding Support
Total Task 1
Dewberry Engineers Inc. W.G. Zimmerman
Engineering TOTAL
3/26/2026
Total Task 3

TOTAL DIRECT LABOR HOURS
$4,755.00
TOTAL PROJECT COST $187,766.15
TOTAL OTHER DIRECT COST $2,755.00 $2,000.00
$159,362.30 $28,403.85

Lions Creek Trail
City of Gilroy
EXHIBIT C - Lions Creek Trail Fee
.
. Project Manager F. Jose Silva Engineer III Jared Mayer ENGINEER II Luke Ervin DESIGNER VI Stephanie Morales PROFESSIONAL VII Jeff Bray PROFESSIONAL IV Christopher Graham PROFESSIONAL VII Christa Redd PROFESSIONAL I To Be Determined PROFESSIONAL IV To Be Determined TASK HOURS Labor Cost without Esc ESCALATION TASK COSTS . Loaded Rate: $350.73 $159.20 $144.24 $165.16 $263.45 $169.28 $258.02 $104.39 $179.61

1.0 1.1. 24 24 $8,417.46 $101.01 $8,518.46

1.0 24 24 $8,417.46 $101.01 $8,518.46

3.0 3.2

3.2.1 8 120 80 80 288 $46,661.93 $559.94 $47,221.87

3.2.3 2 8 8 18 $3,128.96 $37.55 $3,166.50

3.2.5 2 24 24 50 $7,983.96 $95.81 $8,079.76

3.3 3.3.1 8 80 60 60 208 $34,105.89 $409.27 $34,515.16

3.3.3 2 2 2 6 $1,308.33 $15.70 $1,324.03

3.4 2 8 8 8 26 $4,450.26 $53.40 $4,503.66

3.0 24 242 182 148 596 $97,639.32 $1,171.67 $98,811.00

5.1 8 8 8 16 40 $7,875.93 $7,875.93

5.2 24 40 40 40 2 16 8 65 12 247 $41,401.90 $41,401.90

5.0 32 48 48 56 2 16 8 65 12 287 $49,277.84 $49,277.84
32 48 48 56 2 16 8 65 12 287 $49,277.84 $49,277.84
. 80 290 230 204 2 16 8 65 12 907 $155,334.61 $1,272.68 $156,607.30 $2,755.00
TOTAL PROJECT COST $159,362.30
Dewberry Engineers Inc.

Prime
OTHER DIRECT COSTS BEFORE OPTIONAL TASKS (see attached sheet) Total Task 5
Construction Support

TOTAL DIRECT LABOR
Prepare 90% PS&E
Prepare 90% Plans
Prepare 100% Estimate
Bidding Support
Total Task 3
Prepare 90% Estimate
Response to 90% Comments
Prepare 100% PS&E
Prepare 100% Plans
Project Management
Prepare PS&E (90%,100%)
Total Task 1
Project Management
Subtotal Task 5
Utility Assistance
3/26/2026

Local Assistance Procedures Manual EXHIBIT 10-H1
Cost Proposal
Consultant: X Prime Consultant Subconsultant 2nd Tier Subconsultant Project No. Date:

DIRECT LABOR
$120 - $120

80.0 $120 - $120 $9,600.00
290.0 $48 - $60 $15,796.30
230.0 $42 - $53 $11,350.50
204.0 $74 - $98 $11,528.04

2.0 $81 - $92 $180.28

16.0 $55 - $68 $926.72

8.0 $81 - $92 $706.24

65.0 $30 - $41 $2,321.62
$30 - $41

12.0 $55 - $68 $737.44
$48 - $61
$117 - $119
$101 - $114
$77 - $90
$64 - $78
$61 - $72
$48 - $60
$42 - $53
$92 - $112
$72 - $93
$66 - $84
$42 - $59
$54 - $62
$40 - $53
$35 - $41
$25 - $39
$34 - $49
$63 - $72
$50 - $67
$39 - $52
907.0 $53,147.14

LABOR COSTS
a) Subtotal Direct Labor Costs $53,147.14
b) Anticipated Salary Increases (Note 3) $435.44
Optional Anticipated Salary

INDIRECT COSTS
d1) Fringe Benefits (OFFICE Rate): 58.82% e) $31,518.79 f1) Overhead (OFFICE Rate): 102.13% g) $54,726.57
i)
d2) Fringe Benefits (FIELD Rate): 58.77% e)
f2) Overhead (FIELD Rate): 78.52% g)
i)
FIXED FEE k) 12%
l) CONSULTANT'S OTHER DIRECT COSTS (ODC) - ITEMIZE (Add additional pages if necessary) Unit Cost
$0.725
$200.00
m) SUBCONSULTANT'S COSTS (add additional pages if necessary) $ 28,403.85
$ 28,403.85
NOTES:

January 2020

6. Billing rate = (actual hourly rate)* ((1+ ICR) * (1+ Fee))+(actual hourly rate * FCCM). All costs must comply with the Federal cost principles for reimbursement.

PROFESSIONAL VI

PROFESSIONAL V
$101.77
$82.26
$75.08
ENGINEER V $71.02

ENGINEER IV

ENGINEER III
To Be Determined
To Be Determined
To Be Determined
$57.75
To Be Determined
Total
c) TOTAL DIRECT LABOR COSTS [(a)+(b)]
j) INDIRECT COSTS BEFORE FCCM [(e) +(g) + (i)]

PROFESSIONAL II
To Be Determined
$66.65
$53.87
ENGINEER II To Be Determined $47.08
$50.19

CADD TECHNICIAN IV
Quantity
Subconsultant 1: W.G. Zimmerman Engineering
Personal Vehicle
Dennis Haglan*
F. Jose Silva*
Jared Mayer*
Luke Ervin*
Jose Villa
Jeff Bray*
Christopher Graham*
Christa Redd*
To Be Determined
To Be Determined
To Be Determined
To Be Determined

PROFESSIONAL VIII
$120.00
$120.00
$54.47
$49.35
$56.51
$90.14
$57.92
$88.28
$35.72

5. Pre-approved actual costs are competitive prices from appropriate vendors in their respective industries, and supported by receipts.

Note: Mark-ups are Not Allowed
Dewberry Engineers Inc.

EXHIBIT 10-H COST PROPOSAL Page 1 of 3

COST-PLUS-FIXED FEE OR LUMP SUM OR FIRM FIXED PRICE CONTRACTS (DESIGN, ENGINEERING, AND ENVIRONMENTAL STUDIES)
Actual Hourly
Rate Classification/Title Name Hours Total
h1) General and Administrative (OFFICE Rate):

Description Total

3. Anticipated salary increases calculation (page 2) must accompany.

4. Pre-approved travel and per-diem costs will be reimbursed in conformance with the current Department of Transportation Travel and Expense Guide for Consultants.
$187,766.15
n) TOTAL OTHER DIRECT COSTS INCLUDING 2nd TIER SUBCONSULTANTS [(l) + (m)] TOTAL COST [(c) + (j) + (k) + (i) + (n)]
m) TOTAL 2nd TIER SUBCONSULTANT'S COSTS
All costs must comply with the Federal Cost Principles. Subconsultants will provide their own cost proposals.

2. The cost proposal format shall not be amended. Indirect cost rates shall be updated on an annual basis in accordance with the consultant's annual accounting period and established by a cognized agency or accepted by Caltrans.

1. Key Personnel must be marked with an asterisk (*) and employees that are subject to prevailing wage requirements must be marked with two asterisks (**). $118.12
$107.59
$83.67
$35.72
$61.45
$54.39
To Be Determined
To Be Determined
To Be Determined
ENGINEER VI To Be Determined

ENGINEER II

DESIGNER VI

PROFESSIONAL VII

PROFESSIONAL IV

PROFESSIONAL VII

PROFESSIONAL I

PROFESSIONAL I
Lions Creek Trail Contract No.

To Be Determined
To Be Determined

ENGINEER IX

ENGINEER VIII

PROFESSIONAL IV

PROFESSIONAL III

PRINCIPAL

PRINCIPAL

ENGINEER III
l) TOTAL OTHER DIRECT COSTS $2,755.00
Research Fees
Base Project ODC's Subtotal
Unit
Mile
EA
$53,582.59
$86,245.36
$16,779.35
$31,158.85
$2,755.00
$2,755.00
CADD TECHNICIAN III To Be Determined $46.54
CADD TECHNICIAN II To Be Determined $37.92
CADD TECHNICIAN I To Be Determined $32.36
TECHNICAL II To Be Determined $41.27
ADMIN PROFESSIONAL V To Be Determined $67.62
ADMIN PROFESSIONAL IV To Be Determined $58.62
ADMIN PROFESSIONAL III To Be Determined $45.19
TOTAL FIXED PROFIT [(c) + (j)] × fixed fee
Total Fringe Benefits [(c) × (d)]
Overhead [(c) × (f)]
h2) General and Administrative (FIELD Rate): Gen & Admin [(c) × (h)] Overhead [(c) × (f)]
Total Fringe Benefits [(c) × (d)]
Gen & Admin [(c) × (h)]
3800
3/26/2026
Range
o)Facilities Capital Cost of Money (Rate): FCCM [(o) × (c)]

Lions Creek Trail
City of Gilroy
EXHIBIT C - Lions Creek Trail Fee
. PIC/PM, Bill Zimmerman QA/QC, Christopher Cordero Project Engineer, Antonio Magana Senior Design Engineer, Johnny Bui Senior Design Engineer, Eric Choe . $237.60 $207.90 $124.74 $116.69 $120.57

3.0 3.2

3.2.1 8 8 24 40 8 88 $12,189.83

3.0 8 8 24 40 8 88 $12,189.83

5.1 2 8 2 24 36 $5,188.39

5.2 8 16 8 24 56 $9,025.63
18 32 34 88 8 180 $26,403.85
$2,000.00
$28,403.85

TOTAL DIRECT LABOR
HOURS
OTHER DIRECT COSTS (see attached sheet)

TOTAL PROJECT COST
Construction Support
Total Task 3
Bidding Support
Prepare 90% PS&E
Prepare 90% Plans
Prepare PS&E (90%,100%) TASK HOURS TASK COSTS
Task Name
W.G. Zimmerman Engineering
Signal Modification
Task #

6.8. City of Gilroy

STAFF REPORT
Agenda Item Title: Approval of a Purchasing Contract With Papé Machinery of Gilroy in the Amount of $352,595 for the Purchase of a John Deere 320 P-Tier Backhoe Loader, a John Deere 60 P-Tier Compact Excavator, and a TKT24LP Tilt Trailer Under a
Cooperative Purchasing Agreement with Sourcewell,
Contract# 011723-JDC and 092922-TKI
Meeting Date: April 20, 2026
From: Matt Morley, City Administrator
Department: Public Works
Submitted by: John Doughty, Public Works Director
Prepared by: Walter Dunckel, Fleet and Facilities Superintendent STRATEGIC PLAN GOALS: Maintain and Improve City Infrastructure

RECOMMENDATION
Approve a purchase contract with Papé Machinery of Gilroy in the amount of $352,595 for the purchase of a John Deere 320 P-Tier Backhoe Loader, a John Deere 60 P-Tier Compact Excavator, and a TKT24LP Tilt Trailer for the excavator, using the cooperative purchasing agreement with Sourcewell formerly known as National Joint Powers Alliance (NJPA), and authorize the City Administrator to execute the contract and related documents.

EXECUTIVE SUMMARY
The Wastewater Section of the Utilities Department relies on heavy equipment for trenching, lifting, excavation, and transport operations. Their existing backhoe is aging and was recently removed from service because it had reached its end of life and repairs to bring it back into service were too costly for 24-year-old piece of equipment.

Additionally, the Water Section lacks a compact excavator for confined-space and utility work. In developing the Fleet Vehicle budget, Fleet staff worked with Operations staff to identify the best replacement and supplemental equipment options using the Cooperative Purchasing Agreement with Sourcewell, formerly known as National Joint

6.8. Powers Alliance (NJPA). John Deere was selected as the best option for the City because of ease of operation, ergonomic cab, parts availability, location of the dealer, and warranty. Local John Deere dealer, Papé Machinery of Gilroy, California, provided the quotes.

BACKGROUND
The Wastewater Section's existing backhoe has exceeded its useful service life and required extensive repairs. Because of this, the backhoe was recently put out of service, rather than continuing to invest in a 24-year-old machine.

The Water Section identified a need for a compact excavator to efficiently perform work in confined areas where the full-size backhoe cannot safely or effectively operate, such as around utilities, in narrow easements, and in tight urban settings. A dedicated tilt trailer is also required to transport the compact excavator between worksites.

The City Council approved the equipment for replacement in the Fiscal Year 2025-2026 Operating Budget.

ANALYSIS
The Fleet Section worked with Utilities Department staff to identify the best replacement and supplemental equipment options based on current and future operational needs.

Staff evaluated factors including ease of operation, controls, ergonomics, safety, emissions compliance, and overall cost. Additional factors such as parts availability, proximity of the dealer, and warranty terms were also considered. Based on this evaluation, staff recommends the purchase of the following three items:

John Deere 320 P-Tier Backhoe Loader ($186,338):
• The 320 P-Tier features upgraded cab ergonomics, enhanced visibility, improved fuel efficiency, and compliance with current emissions standards. • It includes an integrated hydraulic coupler system for quick, single-operator bucket changes, and a clamping appendage that securely holds large objects during transport across the worksite, eliminating the unsafe practice of balancing material on the bucket lip.
• These features significantly improve both operator safety and overall productivity.

John Deere 60 P-Tier Compact Excavator ($112,890):
• The 60 P-Tier offers a reduced tail swing radius, zero-damage undercarriage, and advanced hydraulic performance.
• This compact excavator enables crews to perform precise excavation work in confined spaces, narrow utility corridors, and areas inaccessible to a full-size

6.8. backhoe.
• This equipment will improve the department’s ability to respond to water main breaks, sewer repairs, and other utility emergencies in tight urban settings, reducing both response time and risk of collateral damage.

TKT24LP Tilt Trailer ($53,367):
• This low-profile tilt trailer is purpose-built to transport the 60 P-Tier Compact Excavator between project sites safely and efficiently. • The tilt-bed design allows for fast, ramp-free loading and unloading, minimizing setup time in the field.
• Acquiring the trailer as part of this package ensures the excavator can be immediately deployable upon delivery.

Equipment Price
John Deere 320 P-Tier
Backhoe Loader
$186,338.00
John Deere 60 P-Tier
Compact Excavator
$112,890.00
TKT24LP Tilt Trailer (for
Compact Excavator)
$ 53,367.00

TOTAL CONTRACT
AMOUNT
$352,595.00
The total price of $352,595.00 is based on a quote received from Papé Machinery of Gilroy, which is a competitive price available to public agencies through the NJPA/Sourcewell process, utilizing Sourcwell Contract #011723-JDC and #092922-TKI

ALTERNATIVES
City Council could deny the purchase of one or more of the items.

STAFF DOES NOT RECOMMEND THIS OPTION. The existing backhoe is beyond its useful life, requiring such extensive repair that it was recently sent to surplus. Delaying the compact excavator purchase would continue to limit the department’s ability to respond efficiently in confined work areas, increasing project timelines and making their workaround of small existing pipes more difficult. Denying the tilt trailer would render the compact excavator immobile between sites, defeating the purpose of the purchase.

6.8. FISCAL IMPACT/FUNDING SOURCE
The City’s fleet replacement budget for Fiscal Year 2025-2026 includes $378,000 for the purchase of this equipment package. Funding is budgeted in the following funds:

FY 2026 Sewer Fund (700) — $186,338 Backhoe Loader
FY 2026 Water Fund (705) — $166,257 Excavator & TKT24LP and Tilt Trailer

PUBLIC OUTREACH
None

NEXT STEPS
With Council’s approval, staff will move forward with the purchase of all three items from Papé Machinery of Gilroy. John Deere requires an approximate two-month lead time for delivery of the backhoe and compact excavator. The tilt trailer will be delivered concurrently. Once delivered, all equipment will be deployable within one week.

Attachments:

1. 60P Excavator SALES ORDER

2. 320P Backhoe SALES ORDER

3. TKT24LP Trailer SALES ORDER

Salesperson : X ___________________ Accepted By : X ___________________ Prepared For

CITY OF GILROY
7351 ROSANNA ST
GILROY, CA 950206196
(408) 846-0420
Prepared By
Jake Dutra
Pape Machinery, Inc.
43510 Osgood Ave
FREMONT, CA 94539
[email protected]
Quote Id 1671704
Creation Date 24-Feb-2026
Expiration Date 30-Apr-2026
Customer Notes
This sale is subject to Papé's Terms and Conditions of Sale effective on the date hereof, which are incorporated in full by this reference.

The Terms and Conditions of Sale are available at www.pape.com/terms, and will also be sent by mail or e-mail to the purchaser upon request.

Quote Summary
Equipment Summary QTY In Group
60 P-Tier Compact Excavator 1
Equipment Total $103,450.00
Quote Summary
Total Selling Price $103,450.00
Sales - (9.125%) $9,439.81
Sub-total $112,889.81
Balance Due $112,889.81
SOURCEWELL CONTRACT #011723-JDC

Selling Equipment
Quote # 1671704
Customer CITY OF GILROY
60 P-Tier Compact Excavator
Equipment Notes
Hours - - -
Serial Number - - -
Stock Number - - -
PUK Parent Serial #
QTY In Group : 1
Equipment Summary
Code Description Qty
0190FF 60 P-Tier Compact Excavator 1
Base / Options
Code Description Qty
0202 Destination Code - United States 1
0259 English Customer Delivery Packet 1
0406 Configuration 6 - Cab, Rubber, Susp, Long Arm + EX C/W 1 Total Base / Options
Dealer Attachments
Code Description Qty
1/4 XLS MANUAL COUPLER 1
12" XLS TOOTH BUCKET 1
18" XLS TOOTH BUCKET 1
INSTALL QUICK DISCONNECTS ON BALL VALVES 1
INSTALL WAINROY COUPLER 1
Total Dealer Attachments
Other Charges: 3" Seatbelt, Setup/PDI, Freight, Delivery Charge Total Selling Price
List Price: $115,490.00
Discount: 27%
Discount Amount: $31,182.30
$84,307.70
$8,832.24
$10,310.06

Salesperson : X ___________________ Accepted By : X ___________________ Prepared For

CITY OF GILROY
7351 ROSANNA ST
GILROY, CA 950206196
(408) 846-0420
Prepared By
Jake Dutra
Pape Machinery, Inc.
43510 Osgood Ave
FREMONT, CA 94539
[email protected]
Quote Id 1672006
Creation Date 24-Feb-2026
Expiration Date 30-Apr-2026
Customer Notes
This sale is subject to Papé's Terms and Conditions of Sale effective on the date hereof, which are incorporated in full by this reference.

The Terms and Conditions of Sale are available at www.pape.com/terms, and will also be sent by mail or e-mail to the purchaser upon request.

Quote Summary
Equipment Summary QTY In Group
320 P-Tier Backhoe Loader 1
Equipment Total $170,750.00
Quote Summary
Total Selling Price $170,750.00
Sales - (9.125%) $15,580.94
Sub-total $186,330.94
*TIRE FEE $7.00
Balance Due $186,337.94
SOURCEWELL CONTRACT #011723-JDC
PAPE PLUS SERVICE AGREEMENT FOR 0-2000HRS
-INCLUDED

EXTENDED POWERTRAIN & HYDRAULICS WARRANTY
FOR 24 MONTHS OR 2000HRS
-INCLUDED

Selling Equipment
Quote # 1672006
Customer CITY OF GILROY
320 P-Tier Backhoe Loader
Equipment Notes
Hours - - -
Serial Number - - -
Stock Number - - -
PUK Parent Serial #
QTY In Group : 1
Equipment Summary
Code Description Qty
17C1T 320 P-Tier Backhoe Loader 1
Base / Options
Code Description Qty
0202 United States 1
0351 Translated Text Labels 1
0259 English 1
0606 Level 2 Cab 1
0651 Level 1 Performance Package 1
0950 Less Vision System 1
1205 Basic Package Radio 1
183N JDLink™ 1
3009 Autoshift Transmission - Mechanical Front Wheel Drive (MFWD) with Limited Slip Differential 1
4006 John Deere 4.5L - FT4/Stage IV 1
5245 Galaxy 19.5L-24 12PR Rear & 12.5/80-18 10PR Front 1 6155 Dual Batteries with Disconnect and Jump Post 1
6752 Extendible Dipperstick 1
6576 1000 lb. (454 kg.) Front Counterweight 1
7001 Auxiliary Hydraulics with One Way Flow (Hammer) 1
7028 Pilot Controls, Two Lever, with Pattern Selection 1 7040 Three-Function Loader Hydraulics, Single Lever 1
7800 Less Backhoe Bucket with Bucket Pins 1
7705 Multi-Brand Quick Coupler - Less Thumb 1
List: $232,539.00
Discount: 43%
Discount Amount: $97,896.81
$134,642.19

7861 92 in. (2.35 m.) Multi-Purpose Bucket, 1.31 cu. yd (1.00 cu. m.) 1 8030 Fire Extinguisher Bracket 1
8096 Premium Mirrors - Exterior Rear View Mirrors (2) and Front View Mirror (1) 1
8213 Chrome Exhaust Extension 1
8075 Diagnostic Oil Sampling Ports 1
Total Base / Options
Dealer Attachments
Code Description Qty
12" HEAVY DUTY TOOTH BUCKET- AT437338 1
18" HEAVY DUTY TOOTH BUCKET-AT437340 1
24" HEAVY DUTY TOOTH BUCKET- AT437343 1

PURCHASE AND INSTALL QUICK DISCONNECTS ON
BULKHEAD BALL VALVES 1

PURCHASE AND INSTALL D-RING ON FRONT LOADER
BUCKET 1

PURCHASE AND INSTALL HOOK ON BACKHOE COUPLER
/BUCKET 1
Total Dealer Attachments
Other Charges: Set-up/PDI, Fabrication, Freight, Delivery Charge Total Selling Price
$16,724.32
$19,383.49

092922-TKI Quote #:

City of Gilroy 7351
Rosanna St Gilroy CA 95020
Walter Dunckel Contact:
408-461-0854 Phone:

NA Fax:

[email protected] Email:

February 25, 2026 Expires:
11329-Base
Item # Description Weight (lbs) Qty Unit Price Total
11329 **TKT24LP Tilt Trailer; 24,000 lbs. capacity $43,223 $43,223 11329-General - TKT24LP
Item # Description Weight (lbs) Qty Unit Price Total
14535 102" overall width
17866 Zinc-rich Primer
08024 S7203 Black with white decals
18508 Red & white conspicuity markings
11329-Tongue - TKT24LP
Item # Description Weight (lbs) Qty Unit Price Total
14482 5' Tongue, pintle eye with adjustable coupler; 18" - 29" Hitch Height (Loaded)
14533 Safety chains with hooks
14515 Lockable tool box
11335 25k Single 2-speed $41 $41
11329-Deck - TKT24LP
Item # Description Weight (lbs) Qty Unit Price Total
13098 28' Overall deck (4' stationary and 24' tilt deck) See below option for 22' tilt ILO 24'
O9998 See Custom Option Below.
14490 34" Loaded deck height
15797 10" Manufactured I-beam Mainframe
15800 4" Full width I-beam crossmembers 11" OC on Tilt
Bed
Main Deck
Main Deck
Category
Deck Length
Deck Lock
Main Deck
Category
Hitch
Hitch
Hitch
Landing Gear
Overall Width
Paint
Paint
Paint
Category
Open Deck
**TKT24LP Tilt Trailer; 24,000 lbs. capacity
11329-TKT24LP_New
Category
Phone: 510-376-7002
Fax: NA
Email: [email protected]
Sourcewell: TK-95011.00
To:

Attn: Jake Dutra
PO #:

Issued: April 30, 2026
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15785 7" Mill channel outer rail
14471 4" Safety headboard
O9998 See Custom Option Below.
14539 Floor plate on approach plate and fold under
18522 11" fold- down approach plate and underride
protection (16" ground clearance)
11347 1-3/8" Apitong (raised) $2,060 $2,060
13097 9 Pair D-rings (2 stationary deck, 7 tilt deck) $222 $222 202174 202174 - TKT24-50LP: 22' Tilt Deck ILO 24' ($612) ($612) 200594 200594 - TKT24-TKT60: Dual air locks with single safety lock handle operated from driver side. May
be used on trailers without a stationary deck.

Requires air supply.
$1,785 $1,785
201729 201729 - TKT24LP: Dual Cushioning Cyl ILO Single $648 $648 11329-Suspension - TKT24LP
Item # Description Weight (lbs) Qty Unit Price Total
13939 2 Axle, H9700 Spring suspension (TKT24/40)
14521 (2) 12,000 lb. capacity axles
14545 49" Axle spacing
15738 Air Brakes 4S/2M (12 1/4 x 7 1/2), must select

17.5" wheels and tires
($651) ($651)
15353 6.75 x 17.5 8-hole steel disc dual wheel, ILO 6 x 16 steel disc dual wheel (per wheel)
4 $6 $24
15353 6.75 x 17.5 8-hole steel disc dual wheel, ILO 6 x 16 steel disc dual wheel (per wheel)
4 $6 $24
10058 No Spare Wheel
16500 215/75R17.5 - 16 ply/ ILO ST235/80R16 10 ply 8 $87 $696 10059 No Spare Tire
14759 Mudflaps
11329-Electrical - TKT24LP
Item # Description Weight (lbs) Qty Unit Price Total
14648 Grote LED Lights
18726 Grote sealed electrical harness system
15821 One pair oval quad flash amber strobes with switch (2 pair oval stop/turn/tail, 1 pair amber strobe
furthest inboard, and (3) penny ID lights at the rear)
$449 $449
15754 7 Pole round electrical plug (must select with air brake option)
11329-Miscellaneous - TKT24LP
Item # Description Weight (lbs) Qty Unit Price Total
14481 Registration holder
Category
Document
Lights /
Lights /
Electrical
Lights /
Electrical
Category
Lights /
Tires
Spare Tires
Flaps, Mud

Axle Spacing
Brakes
Wheels
(inside)
Wheels
(outside)
Spare Wheel
Category
Suspensions /
Suspensions /
Additional
Options
Additional
Options
Main Deck
Main Deck
Decking
Tie Downs
Additional
Options
Main Deck
Main Deck
Main Deck
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11353 Air operated approach plates (requires air supply) $566 $566 13913 4 wheel chocks with holder $669 $669
14206 Hold valve for tilt bed $641 $641
TOTALS
$49,785.00
($7,467.75)
$42,317.25
$1,012.32
$5,470.43
$48,800.00
$ 114.00
$4,453.00
$53,367.00
Sign Here: Date:
*This order may be subject to tariff related
surcharges.
** Freight charge to be determined at time of
shipment.

Approved change orders will be subject to a change
order fee.

Terms and Conditions
- Prices effective 9/8/2024. Prices and specs
subject to change without notice.
- Order pricing and specifications finalized at 16
week window.
- All orders and terms subject to credit approval.
- Federal Excise Tax calculated on selling price to
non-exempt end user.
- Non-Standard production units require 20% down
payment.
- Fifth-wheel trailers may require 10% down
payment to secure productions slot.
- Promised Date subject to change under following
conditions:

1. Change in customer credit status.

2. Approval drawing not signed promptly.

3. Down payment not received promptly.

4. Customer change order modifying design,
manufacturing or sourcing time.

DMV & Tire Fee:

Sales Tax:

Net Due:

F.E.T:

Factory & Local Freight:

Total Unit Sale Price:

Sourcewell Discount (15%):

Discounted Net:

Pre-delivery Inspection:

Total:

Miscellaneous
Miscellaneous
Miscellaneous
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6.9. City of Gilroy

STAFF REPORT
Agenda Item Title: Consent the City Administrator's Recommendation to Appoint Cindy Murphy to the Department Head Position of Finance Director
Meeting Date: April 20, 2026
From: Matt Morley, City Administrator
Department: Administration
Submitted by: Matt Morley, City Administrator
Prepared by: Matt Morley, City Administrator
STRATEGIC PLAN GOALS: Develop a Financially Resilient Organization

RECOMMENDATION
Consent the City Administrator's recommendation to appoint Cindy Murphy to the department head position of Finance Director.

EXECUTIVE SUMMARY
Consent the appointment of Cindy Murphy to the position of Finance Director

BACKGROUND
With the recent appointment of Harjot Sangha to the position of Assistant City Administrator, the City has a vacant Finance Director position. Cindy Murhpy has vast experience in municipal Finance, including a previous role as Finance Director in Gilroy.

The City Administrator has determined that Cindy's expertise and experience will greatly benefit the City.

ANALYSIS
N/A

6.9. ALTERNATIVES
The alternative to forego the appointment to Finance Director is not recommended.

FISCAL IMPACT/FUNDING SOURCE
There is no fiscal impact as a result of this appointment. The position is included in the current operating budget.

PUBLIC OUTREACH
N/A

NEXT STEPS
Following Council consent of this item, Cindy Murphy will assume the necessary duties and responsibilities of the Finance Director.

Attachments:

None

6.10. City of Gilroy

STAFF REPORT
Agenda Item Title: Claim of Farmers Insurance Exchange a/s/o Armando Flores (The City Administrator recommends a "yes" vote under the Consent Calendar shall constitute denial of the claim)
Meeting Date: April 20, 2026
From: Matt Morley, City Administrator
Department: Human Resources/Risk Management
Submitted by: LeeAnn McPhillips, Interim Human Resources Director/Risk Manager.

Prepared by: LeeAnn McPhillips, Interim Human Resources Director/Risk Manager.

STRATEGIC PLAN GOALS: Not Applicable

RECOMMENDATION
Based on the recommendation from Municipal Pooling Authority (MPA) and/or legal counsel, this claim is recommended for rejection.

EXECUTIVE SUMMARY
Based on the recommendation from the Municipal Pooling Authority (MPA) and/or legal counsel, the following claim is submitted to the City Council for rejection at the April 20, 2026 meeting:
• Claim of Farmers Insurance Exchange a/s/o Armando Flores

BACKGROUND
n/a

ANALYSIS
n/a

6.10. ALTERNATIVES
n/a

FISCAL IMPACT/FUNDING SOURCE
n/a

PUBLIC OUTREACH
n/a

NEXT STEPS
n/a
Attachments:

1. Claim of Farmers Insurance Exchange aso Armando Flores claim only for agenda packet

7.3. City of Gilroy

STAFF REPORT
Agenda Item Title: Award a Two-Year Contract to Hello Housing to Administer the City's Below Market Rate Housing Program with Three, One-Year Extension Options in a Total Amount Not to Exceed $973,689 and Adopt a Resolution Amending the Budget in
the Housing Trust and Los Arroyos Funds
Meeting Date: April 20, 2026
From: Matt Morley, City Administrator
Department: Community Development
Submitted by: Sharon Goei, Community Development Director Prepared by: Christie Thomas, Housing and Community Services Manager STRATEGIC PLAN GOALS: Promote Safe and Affordable Housing for All

RECOMMENDATION

1. Award a contract to Hello Housing to administer the Below Market Rate (BMR) Housing Program from July 1, 2026, to June 30, 2028, with three, one-year extension options, and authorize the City Administrator to execute the contract and associated documents.

2. Adopt the resolution amending the Fiscal Year 2026-27 budget to increase appropriations in the Housing Trust Fund by $6,240 and the Los Arroyos Fund by $5,760 for the Fiscal Year 2027 services of this contract.

EXECUTIVE SUMMARY
Since April of 2017, Housekeys Inc. (HouseKeys) has served as the administrator of the City’s Below Market Rate (BMR) Housing Program. HouseKeys current contract will expire on June 30, 2026. Due to their contract expiring, a competitive Request for Proposals (RFP) for the administration of the City’s BMR Housing Program (26-RFPCDD-532) was issued on February 3, 2026. In response to this request, the City received two proposals from HouseKeys and Hello Housing. Staff reviewed and scored the proposals and found Hello Housing to be the most qualified to administer the City’s

7.3. BMR Housing Program. Staff proposes that the City enter into a contract with Hello Housing for the full administration of all components of the BMR Housing Program from July 1, 2026, to June 30, 2028, with up to three one-year extension options.

BACKGROUND
In late 2013, South County Housing (SCH), a predecessor agency that administered BMR programs in Gilroy, ceased operations. SCH transferred its multi-family portfolio to Eden Housing and entered into an agreement with a regional provider, Neighborhood Housing Services Silicon Valley (NHSSV), to administer SCH’s BMR homeownership units and down payment assistance loan portfolio. However, in mid-2015, NHSSV also ceased operations. From mid-2015 to early 2016, City staff worked with NHSSV and SCH staff to obtain the proper documents to facilitate the transfer of the portfolio to the City as the City was a party to most of the agreements.

Prior to SCH’s dissolution, the City was responsible for oversight of 138 BMR properties. The dissolution of SCH added an additional 155 BMR properties for a total of 293 units for City staff to manage. With the increased number of BMR units and down payment assistance loans, staff determined that engaging a third-party administrator was the most effective approach to manage the City’s comprehensive BMR homeownership portfolio. This approach was consistent with the model adopted by several other cities in Santa Clara County following the dissolution of NHSSV, ensuring continued professional administration and long-term program stability.

On March 6, 2017, Council approved a contract with HouseKeys to administer the City’s BMR Housing Program until June 30, 2020. In July 2020, the contract was extended, and the scope was increased to include rental units. The current contract expires on June 30, 2026.

Currently, the City’s BMR Housing Program portfolio includes approximately 250 deedrestricted BMR homeownership units, most of which are layered with deferred downpayment assistance loans. In addition, the City’s broader affordable housing inventory includes 1,927 tax credit-restricted rental apartment units.

Request for Proposals
On February 3, 2026, the City issued RFP No. 26-RFP-CDD-532 seeking proposals from qualified consultants to administer the three components of the City’s BMR Housing Program: Homeownership, Rental (100% Affordable Rental Units - Tax Credit Projects and possible future BMR Rental Units), and Loan Administration. The RFP was advertised in the Mercury News, posted on the City’s website, and distributed directly via email to the following prospective consultants with experience in affordable housing program administration:
• HouseKeys
• Hello Housing

7.3. • Rise Housing
• Alta Housing
• Heart of SMC
• Housing Inc.
• AmeriNat
At the conclusion of the solicitation period, the City received two proposals in response to the RFP — HouseKeys and Hello Housing — for comprehensive administration of all components of the City’s BMR Housing Program.

ANALYSIS
Given current staffing levels and the complex, highly specialized nature of the BMR Housing Program, staff determined that the program is best administered by a professional organization with the requisite expertise, resources, and dedicated staffing.

Based on the evaluation process (assembling a cross-departmental city staff review panel to score the proposal, conducting reference checks, and interviewing applicant staff), staff concluded that Hello Housing is the most qualified firm and will best serve the interests of the City and the long-term success of the BMR Housing Program.

Hello Housing Proposal
Hello Housing is an experienced administrator of all aspects of BMR programs and currently provides BMR program administration services for the cities of Santa Clara, Newark, and Emeryville. In addition, Hello Housing designs and manages a Down Payment Assistance Program for the County of Alameda Housing and Community Development and the City of South San Francisco.

Hello Housing has over 14 years of experience providing specialized expertise in affordable housing program administration and delivery. The firm’s 9-member staff includes a multidisciplinary team of experts with backgrounds in affordable housing program management, program design, finance, development, construction, and housing services. They have a deep understanding of these different industries, each with their own terminology, practices, and regulatory frameworks.

Hello Housing’s proposal details their intent to administer all three components of the program. In addition to overall program administration, within the initial 60-day onboarding period, they will conduct a comprehensive review of current program guidelines, application guides, developer agreements and loan documents, etc., and determine if there might be any recommendations for consideration based on best practices or trends that may improve the program and help the City achieve its affordable housing goals and objectives.

The Hello Housing proposal includes a detailed scope of work for administering the BMR Housing Program. Examples of the scope include the following:

7.3. • Onboarding, including developing and updating program guidelines, agreements, marketing materials, and documents, etc.
• Creating and maintaining a City BMR Housing Program webpage and program database to manage records and interest lists
• Comprehensive customer service, including current and prospective BMR homeowners, renters, and property managers
• Manage all resale (including Pilot BMR Preservation Program units) and possible future new unit sale transactions, including transaction coordination, unit rehab coordination and management, document preparation, marketing and outreach, and purchaser qualification and selection process
• Comprehensive loan portfolio management, including refinances, subordinations, and capital requests
• BMR Housing Program reporting, utilizing Homekeeper, a CRM database platform from Salesforce, to track all service files in the BMR portfolio • Conduct owner, renter, and community outreach efforts One of the most important components of the proposal is monitoring and compliance activities. Compliance monitoring is necessary to ensure continued affordability of BMR units. The proposal by Hello Housing includes a scope for conducting annual compliance for both the homeownership and rental components of the BMR Housing Program. This service is vital to ensuring the integrity of the BMR portfolio for the City and the residents benefiting from the program.

The City vetted this proposal through a comprehensive evaluation process that included assembling a cross-departmental staff review panel to score the proposals, conduct reference checks, and interview the Hello Housing staff. Based on this process, the City determined that Hello Housing is qualified to perform the services outlined in the RFP.

Following completion of the evaluation, a Notice of Intent to Award was issued on March 2, 2026, with the contract scheduled for City Council consideration on April 6, 2026.

ALTERNATIVES
If Council chooses not to approve this contract, the current administration of the BMR Housing Program will conclude on June 30, 2026. The City does not have the staffing capacity or specialized expertise required to effectively administer the BMR Housing Program in-house, which would result in a gap in program administration and oversight.

FISCAL IMPACT/FUNDING SOURCE

7.3. The total cost of the contract over the initial two-year term, from July 1, 2026, to June 30, 2028, is $376,080. The first-year cost totals $192,000 and includes a one-time onboarding fee of $15,000, as well as a budget of 40 hours at $225 per hour ($9,000) for Unit Rehab Coordination and Management (URCM). Costs for the second year, and any subsequent years if the contract is extended, include a 4% cost-of-living adjustment.

The contract will be funded by the Housing Trust Fund (HTF) (52%) and the Los Arroyos Fund (48%). The table below summarizes the projected expenditures associated with this contract over a five-year period.

Period Annual Cost Program Set Up URCM Total
July 1, 2026 – June 30, 2027 $168,000 $15,000 $9,000 $192,000 July 1, 2027 – June 30, 2028 $174,720* $0 $9,360* $184,080 Total for Two-Year Contract $376,080
July 1, 2028 – June 30, 2029 $181,709* $0 $9,734* $191,443 July 1, 2029 – June 30, 2030 $188,977* $0 $10,124* $199,101 July 1, 2030 - June 30, 2031 $196,536* $0 $10,529* $207,065 Total with All Three, OneYear Extension Options
(Five Years Total)
$973,689
*Includes annual 4% cost-of-living adjustment
Primary sources of revenue for the HTF and the Los Arroyos Fund include repayments of down-payment assistance loans and equity shares received by the City from BMR Housing Program resale transactions. Financial assets and ongoing revenue streams within the HTF and the Los Arroyos Fund are sufficient to support continued BMR Housing Program administration and fully fund the Hello Housing contract throughout the initial term of the contract, plus three additional years if approved annually.

The FY 27 adopted budget is $180,000 for these services ($93,600 in the Housing Trust Fund and $86,400 in the Los Arroyos Fund). An additional $12,000 in appropriations is requested for FY 27 per the Budget Amendment Resolution ($6,240 from the Housing Trust Fund and $5,760 from the Los Arroyos Fund). Future years’ appropriations will be included as part of the future biennial budget development process.

PUBLIC OUTREACH
26-RFP-CDD-532 - Below Market Rate (BMR) Housing Program Administrator was advertised in the San Jose Mercury, advertised on the City's website, and distributed directly via email to prospective consultants with experience in affordable housing program administration.

NEXT STEPS
Upon City Council approval, staff will execute the contract with Hello Housing to initiate administration of the City’s BMR Housing Program effective July 1, 2026. Following

7.3. issuance of the contract, Hello Housing will commence program onboarding, including transition coordination with the current administrator, file review, and administrative setup. The onboarding process will be completed within 60 days of the start of the contract, to ensure a seamless transition and continuity of services.

Attachments:

1. Draft Contract for Services – Hello Housing

2. Budget Amendment Resolution – Contract with Hello Housing (FY 27 Additional Costs)