May 4, 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
AMENDED AGENDA
Items 5.3 and 8.2 added
MONDAY, MAY 4, 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.
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Regular Meeting
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 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
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Regular Meeting
1.4. Pledge of Allegiance
1.5. Invocation
1.6. Orders of the Day
1.7. Employee Introductions
2. CEREMONIAL ITEMS - Proclamations and Awards
2.1. Affordable Housing Month Proclamation
2.2. Building Safety Month Proclamation
3. PRESENTATIONS TO THE COUNCIL
3.1. Gilroy Gardens Annual Presentation
3.2. Youth Commission Annual Presentation
3.3. 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.
4. 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
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Regular Meeting
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 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)
5. 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.
5.1. Approve the April 20, 2026 City Council Regular Meeting Minutes
5.2. Approval of Gilroy Gardens Proposed Capital Improvement Plan to Develop the Hecker Pass Outdoor Events Center
5.3. Consent to the Appointment of Brandon Sanchez as Police Chief
6. BIDS AND PROPOSALS
6.1. Award Three, Three-Year On-Call Contracts for Encampment Cleanup Program Services with Two, One-Year Extension Options with an Amount Not-To-Exceed
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Regular Meeting
$750,000 each to San Jose Conservation Corps, Landscape Maintenance America dba California Highway Adoption Company, and FS Global Solutions
1. Staff Report:
John Doughty, Public Works Director
2. Public Comment
3. Possible Action:
1. Authorize the City to enter into Agreements in an amount not to exceed $750,000 each with San Jose Conservation Corps,
Landscape Maintenance America dba California Highway Adoption Company, and FS Global for a Three-Year On-Call Encampment Cleanup Program Services with two one-year extension options;
2. Authorize the City Administrator to execute the Agreements; and
3. Adopt a resolution amending the FY 2026–2027 adopted budgets appropriating $50,000 from the General Fund (100) in FY 2026, and $100,000 in FY 2027 for this work.
7. PUBLIC HEARINGS
7.1. Conduct a Public Hearing to Approve Community Development Block Grant Citizen Participation Plan and Program Year 2026-2027 Annual Action Plan including Funding Allocations
1. Disclosure of Ex-Parte Communications
2. Staff Report:
Sharon Goei, Community Development Director
3. Open Public Hearing
4. Close Public Hearing
5. Possible Action:
1. Approve the Community Development Block Grant (CDBG) Citizen Participation Plan and Program Year 2026-2027 Annual Action Plan including funding allocations;
2. Direct the Community Development Director, or designee, to submit the Citizen Participation Plan and Annual Action Plan to the U.S.
Department of Housing and Urban Development, and further authorize the Community Development Director, or designee, to make any changes to the Citizen Participation Plan and Annual Action Plan as needed to comply with CDBG submission guidelines; and
3. Adopt a resolution amending the Fiscal Year 2026-2027 budget within the Community Development Block Grant Fund (245).
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Regular Meeting
7.2. Adopt a Resolution Approving Tentative Map TM 24-01 and Architectural and Site Review AS 24-07 for the Construction of 42 Townhomes Located at 95 Howson Street (APN 790-36-012)
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:
Staff has analyzed the proposed project and recommends that the City Council:
1. Determine this project is exempt from further environmental review pursuant to State CEQA Guidelines Section 15332 (Class 32);
2. Adopt a resolution approving Vesting Tentative Map TM 24-01, subject to the findings and conditions outlined in the draft resolution; and
3. Adopt a resolution approving Architectural and Site Review Permit AS 24-07, subject to the findings and conditions provided in the draft resolution.
8. UNFINISHED BUSINESS
8.1. Adopt a Resolution of the City Council of the City of Gilroy Calling a General Municipal Election and Adopt a Resolution Submitting a Measure Increasing the Rate of the City of Gilroy's Transient Occupancy Tax (TOT)
1. Staff Report:
Kim Mancera, City Clerk
Harjot Sangha, Assistant City Administrator
2. Public Comment
3. Possible Action:
1. Adopt Resolution A calling a General Municipal Election for Municipal Officers, requesting the Santa Clara County Board of Supervisors authorize consolidation with the Statewide General Election to be held on November 3, 2026, pursuant to California Elections Code Section 10403, and requesting the services of the Registrar of Voters; and
2. Concur with setting the initial Transient Occupancy Tax rate at eleven percent (11%).
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3. Adopt Resolution B placing a measure on the ballot increasing the rate of the City's Transient Occupancy (Hotel) Tax from nine percent (9%) to a not-to-exceed maximum rate of thirteen percent (13%).
8.2. Homeless Encampment at Sixth Street and Camino Arroyo Drive
1. Staff Report:
Matt Morley, City Administrator
2. Public Comment
3. Possible Action:
Discuss the current homeless encampment at Sixth Street and Camino Arroyo Drive and confirm or modify prior direction to staff as needed.
9. INTRODUCTION OF NEW BUSINESS
9.1. Gilroy Homelessness Efforts
1. Staff Report:
Scot Smithee, Interim Police Chief
Sharon Goei, Community Development Director
2. Public Comment
3. Possible Action:
Receive report on homelessness efforts.
9.2. Receive Report and Presentation and Provide Input on Draft Santa Clara County Community Plan to End Homelessness and Gilroy Data, Progress, and Partnerships
1. Staff Report:
Sharon Goei, Community Development Director
2. Public Comment
3. Possible Action:
Receive the report and presentation and provide input on the Draft Santa Clara County Community Plan to End Homelessness and Gilroy Data, Progress, and Partnerships.
9.3. Tobacco Retailer Permit Potential Density and Flavored Tobacco Restrictions
1. Staff Report:
Sharon Goei, Community Development Director
2. Public Comment
3. Possible Action:
Council provide direction regarding potential tobacco retailer permit regulations and management.
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9.4. Review and Discussion of Campaign Finance Laws, Contribution Limits and Related Enforcement
1. Staff Report:
Harjot Sangha, Assistant City Administrator
2. Public Comment
3. Possible Action:
Council receive the report and provide direction, if any.
10. CITY ADMINISTRATOR'S REPORTS
11. CITY ATTORNEY'S REPORTS
12. CLOSED SESSION
12.1. CONFERENCE WITH LABOR NEGOTIATORS - COLLECTIVE BARGAINING UNITS Pursuant to GC Section 54957.6 and GCC Section 17 A.11 (4) Collective Bargaining Units: AFSCME Local 101 (General & Supervisory Units) Representing Employees Affiliated with AFSCME, Local 101; Local 2805, IAFF Fire Unit Representing Gilroy Firefighters
City Negotiators: Matt Morley, City Administrator; LeeAnn McPhillips, Human Resources Director/Risk Manager
Anticipated lssues(s) Under Negotiation: Wages, Hours, Benefits, Working Conditions; Memorandums of Understanding: City of Gilroy and Gilroy Fire Fighters Local 2805, City of Gilroy and AFSCME, Local 101 General & Supervisory Units
13. ADJOURN TO OPEN SESSION
Report of any action taken in Closed Session and vote or abstention of each Council Member if required by Government Code Section 54957.1 and GCC Section 17A.13(b); Public Report of the vote to continue in closed session if required under GCC Section 17A.11(5).
14. ADJOURNMENT
April 20, 2026 | 6:00 PM Page 1 of 10 City Council
Minutes
City of Gilroy
City Council
Draft Minutes
Monday, April 20, 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 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.
4. Pledge of Allegiance
Council Member Marques led the Pledge of Allegiance.
5. Invocation
None.
6. Orders of the Day
None.
7. Employee Introductions
None.
2. CEREMONIAL ITEMS - Proclamations and Awards
1. Proclamation for Earth Day and Arbor Day
Mayor Bozzo presented the Earth Day & Arbor Day Proclamation to Gilroy's Deputy Public Works Director Matt Jones, Gilroy's Parks Supervisor John Sousa and Parks & Recreation Commissioner Greg Felios.
3. COUNCIL CORRESPONDENCE (Informational Only)
None.
4. PRESENTATIONS TO THE COUNCIL
April 20, 2026 | 6:00 PM Page 2 of 10 City Council
Minutes
1. Sister Cities Annual Presentation
David Peoples with the Gilroy Sister Cities Association provided a presentation.
2. Visit Gilroy Annual Presentation
Frank Johnson with Visit Gilroy provided a presentation.
3. 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 6:37 P.M.
Melissa Santos - Spoke on behalf of Community Solutions to bring awareness to the resources they have available to the community.
Jan Bernstein Chargin — Asked for an extension on the Camp Hope unhoused encampment.
Julie Della Maggiora - Spoke about wanting to partner with Gilroy Sister Cities Association. She also spoke in support of finding more ways to help the unhoused within the community.
With no further speakers, Mayor Bozzo closed public comment.
5. 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
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Minutes
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)
Council Member Bracco - No report.
Council Member Fugazzi - No report.
Council Member Marques - Reported that she attended the Gilroy Sister Cities board meeting and shared that the board was invited to speak at Christopher High School in hopes of creating interest for the students to join the program.
Council Member Hilton - Reported from the Silicon Valley Clean Energy JPA Board meeting that staff provided an update on the agency's integrated decarbonization roadmap and solicited input from the board. He also reported on the Santa Clara County LAFCO Environmental Justice Workshop Special Meeting and spoke on the city's ongoing efforts to promote pedestrian, biking and traffic safety within the community.
Council Member Ramirez - Reported that she attended the Gilroy Fire Department's Annual New Hire & Promotional Ceremony. She gave praise to the Downtown Business Association for its successful Wine Stroll. It was also reported that Community Solutions' Healing Hearts Gala raised over $115,000 to support their critical services and programs. Lastly, she thanked the City of San Jose for granting her the opportunity to witness their recent efforts in the abatement of one of their largest unhoused encampments.
Council Member Cline - Reported that he attended both the Silicon Valley Clean Energy Authority JPA Board meeting and the VTA Policy Advisory Committee meeting. He gave praise to the Downtown Business Association for its successful Wine Stroll and also shared that he attended the Gilroy Gardening Groups Plant Sale that was hosted by the Miller Red Barn Association. Lastly, he commented on Gilroy Gardens, Christopher Ranch and the Garlic Festival teaming up to host an event on National Garlic Day.
Mayor Bozzo - No report.
6. CONSENT CALENDAR
Mayor Bozzo opened public comment at 6:57 P.M.
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Minutes
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 Zach Hilton, Council Member Carol Marques, Council Member Kelly Ramirez, Mayor Greg Bozzo NAYS: None
ABSENT: None
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
2. Approve a School Resource Officer Memorandum of Understanding for Fiscal Year 2026-2027
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
4. Resolution of Intention to Renew the Gilroy Tourism Business Improvement District (GTBID)
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. 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
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
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
9. Consent the City Administrator's Recommendation to Appoint Cindy Murphy to the Department Head Position of Finance Director
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Minutes
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
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
Deputy Director of Community Development Bryce Atkins provided a report and presentation.
Mayor Bozzo opened public comment at 7:04 P.M.
With no speakers, Mayor Bozzo closed public comment.
Motion
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 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.
RESULT: Passed
MOVER: Council Member Carol Marques
SECONDER: Council Member Kelly Ramirez
AYES: 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
NAYS: None
ABSENT: None
2. Award a contract to 17 Mile Construction in the amount of $198,900 for tenant improvements at 641 Old Gilroy St (Jessup Property); Approve a project contingency of $19,100, and Approve a total project expenditure of $218,000 Interim Utilities Director Karl Bjarke 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 a Public Works contract in the amount of $198,900 to 17 Mile Construction for the tenant improvement project at 641 Old Gilroy St. and approve a project contingency of $19,100 for a total project authorization of $218,000 as well as
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Minutes
authorize the City Administrator to execute the contract documents and approve any future change orders within the project contingency.
RESULT: Passed
MOVER: Council Member Tom Cline
SECONDER: Council Member Kelly Ramirez
AYES: Council Member Dion Bracco, Council Member Tom Cline, Council Member Terence Fugazzi, Council Member Zach Hilton, Council Member Carol Marques, Council Member Kelly Ramirez, Mayor Greg Bozzo
NAYS: None
ABSENT: None
8. PUBLIC HEARINGS
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
Fire Marshal Jonathan Crick provided a report.
Mayor Bozzo opened the public hearing at 7:17 P.M.
With no speakers, Mayor Bozzo closed the public hearing.
Motion
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.
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 Zach Hilton, Council Member Carol Marques, Council Member Kelly Ramirez, Mayor Greg Bozzo
NAYS: None
ABSENT: None
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
Public Works Director John Doughty provided a report.
Mayor Bozzo opened the public hearing at 7:24 P.M.
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Minutes
With no speakers, Mayor Bozzo closed the public hearing.
Motion
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.
RESULT: Passed
MOVER: Council Member Terence Fugazzi
SECONDER: Council Member Kelly Ramirez
AYES: 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
NAYS: None
ABSENT: None
Motion
Direct staff to place the Ordinance for adoption at the May 18, 2026 meeting and adopt a resolution approving a budget amendment adding $150,000 from Fund 220 (Vehicle Registration Fee) to Capital Project Number 801120 (Citywide Safety Improvements).
RESULT: Passed
MOVER: Council Member Terence Fugazzi
SECONDER: Council Member Carol Marques
AYES: 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
NAYS: None
ABSENT: None
9. UNFINISHED BUSINESS
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
Fire Chief Rob Fleeup provided a report and presentation.
Mayor Bozzo opened public comment at 7:45 P.M.
With no speakers, Mayor Bozzo closed public comment.
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Minutes
Motion
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.
RESULT: Passed
MOVER: Council Member Tom Cline
SECONDER: Council Member Carol Marques
AYES: Council Member Dion Bracco, Council Member Tom Cline, Council Member Terence Fugazzi, Council Member Zach Hilton, Council Member Carol Marques, Council Member Kelly Ramirez, Mayor Greg Bozzo
NAYS: None
ABSENT: None
10. INTRODUCTION OF NEW BUSINESS
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 City Administrator Matt Morley provided a report.
Mayor Bozzo opened public comment at 7:54 P.M.
Ron Kirkish - Spoke opposing the Ad Hoc Subcommittee.
Joanne Fierro - Advocated for the unhoused and urged the community to assist where they can to help the homeless community.
Ann Marie McCauley - Spoke in favor of the Ad Hoc Subcommittee.
Jan Bernstein Chargin - Shared that she believes the Ad Hoc Subcommittee is a good idea and worth pursuing.
With no further speakers, Mayor Bozzo closed public comment.
Motion
Approve the establishment of a City Council Homelessness Ad Hoc Subcommittee and appoint Council Member Bracco, Council Member Ramirez and Mayor Bozzo to serve on the Subcommittee and proceed with the Homebase proposal and option of facilitation of six (6) meetings with four (4) virtual and two (2) in-person meetings that will occur at times to be determined later by the three Council Members in consideration with staff.
RESULT: Passed
MOVER: Council Member Tom Cline
SECONDER: Council Member Dion Bracco
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Minutes
AYES: Council Member Dion Bracco, Council Member Tom Cline, Council Member Zach Hilton, Council Member Carol Marques, Council Member Kelly Ramirez, Mayor Greg Bozzo
NAYS: Council Member Terence Fugazzi
ABSENT: None
11. FUTURE COUNCIL INITIATED AGENDA ITEMS
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)
Council Member Hilton provided a report.
Mayor Bozzo opened public comment at 8:23 P.M.
With no speakers, Mayor Bozzo closed public comment.
Motion
Council consideration of a future agenda item directing staff to amend Zoning Code Section 30.14.31 (Specific provisions – Noise).
RESULT: Passed
MOVER: Council Member Zach Hilton
SECONDER: Council Member Kelly Ramirez
AYES: Council Member Tom Cline, Council Member Zach Hilton, Council Member Kelly Ramirez, Mayor Greg Bozzo
NAYS: Council Member Dion Bracco, Council Member Terence Fugazzi, Council Member Carol Marques
ABSENT: None
12. CITY ADMINISTRATOR'S REPORTS
City Administrator Matt Morley commented on the Wine Stroll and the plant sale at the Miller Red Barn that took place over the weekend.
13. CITY ATTORNEY'S REPORTS
No report.
14. CLOSED SESSION
1. Public Employee Appointment/Employment Pursuant to Government Code Section 54957 and Gilroy City Code Section 17A.11(2)
Name/Title: Police Chief
April 20, 2026 | 6:00 PM Page 10 of 10 City Council
Minutes
City Attorney Andy Faber announced the closed session item.
City Attorney Andy Faber opened public comment at 8:25 P.M.
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 Zach Hilton, Council Member Carol Marques, Council Member Kelly Ramirez, Mayor Greg Bozzo
NAYS: None
ABSENT: None
The meeting adjourned to closed session at 8:25 P.M.
15. ADJOURN TO OPEN SESSION
City Attorney Andy Faber announced that there was no reportable action from the closed session.
16. ADJOURNMENT
With no additional business before the Council, the meeting was adjourned at 8:40 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
5.2. City of Gilroy
STAFF REPORT
Agenda Item Title: Approval of Gilroy Gardens Proposed Capital Improvement Plan to Develop the Hecker Pass Outdoor Events Center
Meeting Date: May 4, 2026
From: Matt Morley, City Administrator
Department: Administration
Submitted by: Harjot Sangha, Assistant City Administrator Prepared by: Harjot Sangha, Assistant City Administrator STRATEGIC PLAN GOALS: Maintain and Improve City Infrastructure
RECOMMENDATION
1. Council consent to the approval of Gilroy Gardens' proposed capital improvement plan to develop the Hecker Pass Outdoor Events Center.
EXECUTIVE SUMMARY
Gilroy Gardens has submitted a proposal outlining a two-phase capital improvement plan to develop the “Hecker Pass Outdoor Events Center” over the next two years, along with key deferred maintenance projects that exceed $100,000 and require prior approval from the City, as the landlord. All costs are to be borne by Gilroy Gardens.
BACKGROUND
Under the terms of the existing lease agreement, capital improvement projects exceeding $100,000 require prior approval from the City, as landlord. Accordingly, Gilroy Gardens has submitted a two-phase capital improvement plan to the City for approval, investing $150,000 in deferred maintenance and $750,000 in capital improvements to develop the Hecker Pass Outdoor Events Center. No City financial contribution is required.
5.2. ANALYSIS
Gilroy Gardens has submitted a proposal that outlines a phased capital improvement plan to develop the “Hecker Pass Outdoor Events Center” as a revenue-generating, multi-use venue that enhances the value and utilization of existing park assets. The proposal includes Phase 1 improvements totaling approximately $500,000 in Calendar Year 2026 and Phase 2 improvements totaling approximately $250,000 in Calendar Year 2027, along with approximately $150,000 in deferred maintenance improvements focused on compliance, safety, accessibility, and operational efficiency.
Under the terms of the existing lease agreement, capital improvement projects exceeding $100,000 require prior approval from the City, as landlord. Accordingly, Gilroy Gardens is seeking City Council approval for both Phase 1 and Phase 2 improvements around the picnic grove area at this time to ensure compliance with the lease provisions and to allow for a coordinated, long-term implementation of the project.
Phase 1 is designed to establish the core functionality of the event venue and expand revenue-generating opportunities through the addition of key amenities, including “The Yard,” a multi-functional activity space; the “Pavilion Stage,” a semi-permanent performance and presentation venue; and the “Ember Patio,” a flexible social gathering space anchored by a Conex-based beverage bar. Additional elements include upgrades to the Arbor Pavilion beverage bar, development of a merchandise retail space, and a comprehensive branding and wayfinding signage package to enhance visibility and guest experience.
Phase 2 will build upon the initial investment by expanding capacity and amenities to accommodate larger and more diverse events. Improvements include the addition of the “Canopy Patio” and “Garden Patio” gathering spaces, as well as the “Grove Stage,” which introduces a larger-scale outdoor venue for festivals, concert events, graduations, and supporting infrastructure.
The proposal anticipates a phased growth model with increasing event bookings over time and an estimated three-year return on investment based on conservative projections of non-admission event revenue by Gilroy Gardens staff. Overall, the project represents a strategic effort to activate underutilized areas within Gilroy Gardens, enhance the visitor experience, and generate incremental revenue, while leveraging existing operational resources and supporting the facility's long-term sustainability.
A detailed presentation of the proposal is attached to this staff report, which includes the marketing strategy to promote the Event Center. Gilroy Gardens' staff, as part of the annual presentation item under Presentations to the Council, will also provide an overview of this proposal and be available to answer any questions the Council may have. Gilroy Gardens' board has tentatively approved the project, pending City Council
5.2. approval.
ALTERNATIVES
Council could elect not to approve the deferred maintenance or either phase of the proposed improvement plan. This alternative is not recommended.
FISCAL IMPACT/FUNDING SOURCE
All costs related to the proposed plan will be borne by Gilroy Gardens.
PUBLIC OUTREACH
NEXT STEPS
Pending Council approval, staff will formally notify Gilroy Gardens in writing of the approval so that they can proceed with the plan.
Attachments:
1. HeckerPassFullPresentation
Where open skies, natural beauty, and
unforgettable events come together
• Diversify revenue streams • Expand market reach • Strengthen community partnerships The proposed Hecker Pass Events Center represents a strategic expansion opportunity for Gilroy Gardens to maximize the value of the property with the following desired outcomes: • Reduce startup risk through phased growth • Leverage existing operational manpower & expertise
Multi-Segmented Approach
We have established a multi-segmented approach that includes:
A deferred maintenance expense
Approved Budgeted $150,000 | Calendar Year 2026
3 A deferred maintenance cost avoidance partnership with GGFA Estimated ($55,000) | Calendar Year 2026
Initial capital improvement elements
Budgeted $500,000 | Calendar Year 2026
Supplemental capital improvement elements
Budgeted $250,000 | Calendar Year 2027
Management has identified key areas in need
of improvement regardless of any capital
improvement to address the following
elements: • Compliance & Safety • Guest Experience • Cost Avoidance • Operational Efficiencies • Marketability Deferred
Maintenance
• Fix exterior siding defects and paint • Install accessibility ramp to make building compliant • Adjust exterior landscaping for ramp installation and accessible pathway in a way that reduces ongoing garden maintenance but perserves nature look • Remove and replace worn flooring • Rework bathroom fixtures to meet accessiblity standards • Replace damaged and/or inefficent bathroom fixtures • Install additional lighting to ensure new ramp and pathways are well-lit for evening operations
Restroom Rehabilitation
Deferred Maintenance Segment
5
• Remove damaged roof structures • Replace missing shade pole(s) • Replace missing shade cloth, expanding usable covered footprint • Remove old signage, speakers, flower pots and other unused infastructure • Repaint poles, lattice and cement pots • Repair and update service building surround • Replace/update signage • Repair and paint picnic benches
Main Event Pad Rehabilitation
Deferred Maintenance Segment
6
• Remove damaged chain-link fence
• Remove trees, shrubs and abandoned infrastructure along fence line
• Reinstall new chain-link fence, increasing the height • Add privacy cloth or slats facing parking lot • Improves overall look and guest impression • Replace missing or damaged service gates
• Allows venue to be fully secured
• Prevents guests from entering “backstage” areas
Perimeter Fence Repair
Deferred Maintenance Segment
7
• Extend existing wood fence • Previous installed by GGFA in 2025 • Add new fenceline perpendicular back towards main event pad • Prevents guests from entering “backstage” areas
• Complete fenceline along back service road/water tower entrance • Prevents guests from entering “backstage” areas
Wood Fence Extension
Deferred Maintenance Segment
8 Grass Parking Lot
Main Pad
• Resurface walkways removing root bumps and potholes
• Reduces walking hazards for guests • Pave main entry and exit pathway along parking lot • Improves value preception and reduces mud and dust control issues • Pave interior service cooridor & entry points
• Improves operation and reduces mud and dust control issues Road Pavement
Deferred Maintenance Segment
9 Grass Parking Lot
Main Pad
• Remove outdated, unused and less than optimally safe
storage building
• Remove paver patio • Pavers to be saved for future use • Replace with grass extending the grove Storage Building Removal
Deferred Maintenance Segment
10
• On hold pending irrigation project plan
Reseed Grass
Deferred Maintenance Segment
11
Deferred Maintenance
Estimated Cost Breakdown
12 Item: Classification Est. Cost GGFA
Restroom Rehabilitation GOV, CST, REV, EXP $50,000 $0
Main Event Pad Rehabilitation EXP, REV $32,000 $0
Perimeter Fence Replacement EXP, SPC, REV $30,000 ($15,000) Wood Privacy Fence Extended EXP, STY, CST, REV $10,000 ($5,000) Service Road Pavement STY, EXP, CST, REV $66,000 ($35,000) Storage Building Removal EXP, SPC, REV $1,000 $0
Reseed Lawn SPC, EXP $16,000 $0
Subtotal $205,000 ($55,000)
Net Total $150,000
GOV: Federal, State & Local Required
STY: Safety
SPC: Safety Perception
CST: Cost Avoidance
REV: Revenue Generating
EXP: Guest Experience
A beautiful outdoor destination
designed for gathering, celebrating
and creating unforgettable moments
Initial capital improvement elements (Phase 1) • Requested $500,000 | CY 2026 • Improvement Focuses: • Enhancing the offering
• Adding revenue opportunities • Reducing landscape maintenance We have established two phases for capital investment
Supplemental capital improvement elements (Phase 2) • Requested $250,000 | CY 2027 • Potential GGFA cost offset not included
• Improvement Focuses: • Expanding capacity
• Introducing large format stage
• Addressing client feedback
Phase 1 Capital
Improvement
Capital Improvement
Phase 1 Site Plan
16 Phase 1
• “The Yard” transforms an unutilized eyesore portion of the land into a dynamic, multi-functional activity area
designed to bring energy, engagement and interactive
engagement to any event • The flexible space provides guests with a variety of recreational options, making it an ideal gathering place for team-building activities, social interaction and casual competition • Intentionally designed as a highly flexible space that allows us to say “yes” to a wide variety of client requests for outdoor recreation and interative experiences • Designed to be low maintenance • Artificial grass keeps garden look • Sports surface on top of concrete pad • Concrete pathways • Includes Conex to hide back of restroom with “The Yard” signage used to store all equipment
“The Yard” Multi-functional Activity Area
Phase 1 Capital Improvement
17
“The Yard” Multi-functional Activity Area
Phase 1 Capital Improvement
18 Features Include: • Games Court • 2x Pickle Ball Courts • Basketball • Volleyball & Badminton • 2x Boccie Ball Courts • Double as bag toss or horseshoes • Open Activity Lawn for • Soccer • Large-scale Checkers • Ping Pong Tables
• Bag Toss • Tether Ball • Horseshoes
“Pavilion Stage”
Phase 1 Capital Improvement
19 • Positioned in proximity to “Arbor Pavilion” and “The Yard” • Remove sections of wall and lattice to reduce footprint • Cover remaining wall and lattice with climbing plans and/or Dibond equivalent signage to create a backstage area
• Repurpose metal stage from boneyard adding new decking and skirting to create a semi-permanent elevated stage • Ability to remove or relocate, creating flexibility • Use for live entertainment, trade show presentations, company awards presentations, etc. • Backdrop truss system with generic backdrop • Ability to customize for clients for an additional fee • Sound system • Invest in small scale microphone and speaker system • Ability to upsell for stronger system and/or lighting
“The Ember Patio”
Phase 1 Capital Improvement
20 • “Ember Patio” is a welcoming outdoor social space centered around a stylish beverage bar housed within a trendy repurposed Conex container • Designed as a flexible gathering place and dynamic social hub, the patio offers a relaxed vibrant environment where guests can connect, unwind and enjoy the atmosphere
• The space features outdoor Adirondack chairs and can be configured for conversational tables or transformed into a cozy firepit lounge environment • Located along the main pathway between restroom ideally positioned near the future “The Yard” activity area, “Pavilion Stage” and “Arbor Pavilion”
“The Ember Patio”
Phase 1 Capital Improvement
21 Features include: • Conex Bar • Allows for bar to be repurposed/moved as needed • Located near water and waste service • Dual function table and fire pits offers border appeal • Firepit setup is ideal for Camp Night and evening events • Pits covered with wood top to convert to standard tables • Drop-in fence perimeter • Allows for open concept or the ability to fence in to create a separated “beer/wine garden” • Reduces landscape maintenance • Replaces two garden spaces • Maintains tree and perimeter plantings • Potted plants added as needed to maintain nature
Arbor Pavilion Beverage Bar Upgrade
Phase 1 Capital Improvement
22 • Replace current beverage counter with new trendy Conex bar • Increases the overall look of the space • Ability to move/relocate the bar as needed • Ability to hide unsightly ice machine, freezers and other service items
• Allows building to be locked and secured
• Reduces staffing hours for setup
• Increases equipment longevity • Potential to add additional equipment (ICEE, etc.) or products • Helps to further create an “enclosed” building for health department permitting
Arbor Pavillion Merchandise Store
Phase 1 Capital Improvement
23 • Use a Conex to create a merchandise store located to the left of the main beverage bar and service building • Ideal for festivals, concerts, tradeshows • Gilroy Gardens Camp Nights, Easter, etc. event use • Upsell opportunity for corporate events
• Door opens to create merchandising display to the left and right in addition to interior space • Back of Conex blocked to allow storage of backstock • Additional rolling carts can be easily stored inside • Additional grids possible on main midway • Ease of setup increases number of retail pop-ups done each year and lowers staffing hours
Branding & Signage Package
Phase 1 Capital Improvement
24 Includes: • Website Development Costs • Logo Development & Trademarking • Still, Video and Drone Photography • Entry Marquee Signage • Arbor Pavilion Entry Signage • Water Tower Entry Signage • Interior ID Signage • “The Yard”
• “The Ember Patio”
• “Beverages” & “Store”
• “Pavilion Signage”
• Wayfinding Signage • 152 Hwy to Lot C
Branding & Signage Package
Phase 1 Capital Improvement
25
Phase 1 Capital Improvement
Estimated Cost Breakdown & ROI
26 Item: Est. Cost
“The Yard” $300,000
“Pavillion Stage” $10,000
“The Ember Patio” $70,000
Beverage Bar $55,000
Merchandise Building $40,000
Branding & Signage $25,000
Net Total $500,000
Return on Investment
The established industry ranges for a new venue or midsize attraction is between 2 and 5 years. Using conservative estimates derived from non-admission event revenues achieved by Gilroy Gardens over the past two calendar years, and allowing for phased growth in bookings, management believes the Hecker Pass Outdoor Events Center will achieve a 3-year return.
2027: 25 Event Bookings
2028: 40 Event Bookings
2029: 60 Event Bookings
Phase 2 Capital
Improvement
Capital Improvement
Phase 2 Site Plan
28 Phase 2
“The Canopy Patio”
Phase 2 Capital Improvement
29 • Create “The Canopy Patio” a charming cobblestone gathering space beneath a natural canopy of mature trees • Creates additional capacity, including seating • Ideal for cocktail reception and welcome mixers • Includes: • Removal and relaying of cobblestones • Expanding area with additional trees and cobblestones • Addition of string lighting to allow for evening usage
“The Garden Patio”
Phase 2 Capital Improvement
30 • Create “The Garden Patio” a spacious shaded patio surrounded by greenery is ideal for picnic style dining for smaller groups or as a companion location to “The Canopy Patio” • Add a Conex beverage bar to this area to be able to service this patio in addition to “The Canopy Patio” • Includes: • Removal of cobblestone sections and fill with concrete • Removal of old water fountain, topiary and unwanted trees • Replant divider planters with low maintenance plants • Replace old train track area with artificial turf
“The Grove Stage”
Phase 2 Capital Improvement
31 • Create “The Grove Stage”—an open-air stage set amongst a picturesque grove of trees making it an ideal entertainment location with ample casual grass seating
• Add additional infrastructure for festivals, concert events, outdoor movie presentations, graduations, etc. • Includes • Stage and cover • Backroom storage and green room • Power & data infrastructure
Phase 2 Capital Improvement
Estimated Cost Breakdown & ROI
32 Return on Investment
Using similar calculations as Phase 1 Capital Improvement ROI on a 3-year payback for the Phase 2 expansion of capacity, additional bookings per year would be:
2028: +20 Event Bookings
2029: +20 Event Bookings
2030: +20 Event Bookings
Item: Est. Cost
“The Canopy Patio” $15,000
“The Garden Patio” $150,000
“The Grove Stage” $60,000
Misc. Client Feedback Items $25,000
Net Total $250,000
Marketing Strategy
Overview
Leveraging existing resources, proven marketing channels and targeted outreach to establish the venue as a premier outdoor event destination in the region. The approach prioritizes efficiency, brand alignment and scalable growth.
35 Leveraging Marketing & Agency Resources
Marketing Strategy Overview
• Launch Marketing lead by Trevor, supported by Gilroy Gardens marketing support team primary for digital brand management • Establishing digital footprint on Google • Electronic Direct Mail efforts • Establishment and ongoing management of social media footprint • LinkedIn: Targeting corporate planners, business group and professional organizations • Facebook: Community engagement and event promotion • Instagram: Visual storytelling showcasing the venue, events and setting • YouTube: Venue tours and event highlights • Expand relationship with Articulate Solutions • Maintaining brand continuity and shared messaging and content resources • Leverage existing marketing spend to maximize buying power for both entities • Ensuring media placement does not compete with Gilroy Gardens marketing campaign
36 Dedicated Sales Representative
Marketing Strategy Overview
• Begin as a contract position • Allows flexibility to ensure performance and delivery of financial objectives • Can migrate to full time status when confident in delivery and sales warrants the expense • Eliminates “distraction factor” of current Gilroy Gardens sales team ensuring that we meet Gilroy Gardens Group Sales goals.
Role would: • Manage incoming venue inquires
• Conduct venue tours and client meetings • Develop relationships with event planners and corporate clients • Drive bookings and revenue maximization • Day-of executions to ensure client satisfaction and rebooking • Partner with Gilroy Gardens Group Sales to work non-competitively
37 Grand Opening Event
Marketing Strategy Overview
In 2027, introduce the venue to the market by creating an Open House & Expo Showcase style Grand Opening Celebration designed to generate buzz and industry awareness.
Event to include: • Chamber of Commerce ceremonial ribbon cutting & dignitary welcome • Guided venue tours • Catering sampling • Partner expo • Staged setups showing versatility of spaces • Event specials to drive bookings
38 Digital Focus Advertising
Marketing Strategy Overview
Our primary marketing and advertising approach will be digitally led allowing for easy tracking and react to ROAS and CAC performance matrix nimbly. Key advertising tactics to include: • Industry Event Listing Platforms proven ROI sites to include: • Eventective • Unique Venues
• Cvent • Google Search targeting event related keywords • Targeted Digital Display to reach planners researching venues • LinkedIn aimed at corporate decision makers and meeting planners • Competitor Retargeting to capitalize on other established venues for traffic • Launch Dedicated Website www.heckerpassevents.com
39 Industry Marketing & Professional Outreach
Marketing Strategy Overview
To increase visibility within the professional event planning community, we will explore participating in industry specific marketing channels. When possible “partnering” with Gilroy Gardens in shared space to maximize investment and awareness of both brands.
Including: • Annual event planner print publications • Event planner expos & trade shows
40 Targeted Direct Mail
Marketing Strategy Overview
During inaugural year to increase brand awareness, utilize targeted direct mail campaigns.
Focusing on two key audiences: • Event Planners • Designed to reach regional corporate planners and event professionals • Highlighting venue features and event flexibility • Gilroy Local Businesses • Highlighting venue features and event flexibility • Include a “Locals” discount rate/offer to drive usage in home market
For Your Consideration
5.3. City of Gilroy
STAFF REPORT
Agenda Item Title: Consent to the Appointment of Brandon Sanchez as Police Chief
Meeting Date: May 4, 2026
From: Matt Morley, City Administrator
Department: Human Resources/Risk Management
Submitted by: Matt Morley, City Administrator
Prepared by: LeeAnn McPhillips, Interim Human Resources Director/Risk Manager.
STRATEGIC PLAN GOALS: Not Applicable
RECOMMENDATION
Consent to the City Administrator's recommendation to appoint Brandon Sanchez to the department head position of Police Chief.
EXECUTIVE SUMMARY
The recruitment process for the position of Police Chief recently concluded. After a thorough process and vetting of candidates, the City Administrator is recommending the Council consent the appointment of Brandon Sanchez to the position of Police Chief. If approved, Mr. Sanchez will begin work on June 1, 2026.
BACKGROUND
Per Article VII. (” The City Administrator “) of the Gilroy City Charter, Section 703(c) (“Powers and Duties”), the City Administrator shall appoint Department Heads (which includes the Police Chief) with the consent of the City Council.
Utilizing the assistance of an executive search firm, the City recently completed a full recruitment process for the position of Police Chief. A thorough vetting process was
5.3. completed and included the following steps:
• Application screening
• Supplemental questions
• Interview with search firm
• Panel interviews with three panels:
o Subject Matter Expert Panel (three City Managers and three Police Chiefs) o Community Panel (cross section of seven community members) o Senior Executive Team Panel
• City Administrator Interviews and candidate assessments • Detailed POST-compliant background process (personal history questionnaire, employment history check, review of prior agency personnel file, reference checks with 30 individuals to include secondary and tertiary referrals, polygraph, education check, criminal and court records check, driving record check, neighborhood check, credit check, and social media check) • Following the conditional offer:
o Peace Officers Standards & Training (POST) Medical Evaluation o Peace Officers Standards & Training (POST) Psychological Evaluation o The two above evaluations are underway with results pending The additional final step in the selection process following the conditional offer is Council’s consent of the City Administrator’s recommendation for appointment.
Mr. Sanchez has over twenty-seven years of sworn law enforcement experience from the City of San Jose Police Department. He has served in the position of Deputy Chief since October 2024 and is assigned to Field Operations. In this role, Mr. Sanchez is responsible for 740 personnel (officers and professional staff). He moved up to this role after serving as an Officer, Sergeant, Lieutenant, Commander, Captain, and Acting Deputy Chief.
Mr. Sanchez earned a Bachelor of Science degree in Criminal Justice from California Coast University and earned a Master of Science degree in Law Enforcement/Public Safety Leadership from University of San Diego. He has completed POST Management School and has earned a POST Executive Development Certificate. He is a graduate of the Federal Bureau of Investigation, Law Enforcement Executive Development Association’s Supervisor, Command, and Executive Leadership Institutes. He has also completed the Senior Management Institute for Police delivered by the Police Executive Research Forum (PERF) and the University of Chicago Crime Lab’s Policing Leadership Academy.
Mr. Sanchez is a resident of Gilroy and is actively involved in the community through the
5.3. Gilroy Rotary and Gilroy Chamber of Commerce. He is excited to serve his home community as well as lead and support the men and women of the Gilroy Police Department.
ANALYSIS
N/A
ALTERNATIVES
No other alternative is recommended. The Interim Police Chief needs to conclude his assignment due to the work hours limitations mandated by CalPERS. There is not an alternate candidate being recommended for appointment.
FISCAL IMPACT/FUNDING SOURCE
The salary and benefits for this position have been included in the FY 26 and FY 27 operating budgets previously approved by Council. Salary placement shall be within the approved Police Chief classification annual salary range of $204,675 — $281,132.
PUBLIC OUTREACH
This item was included on the publicly posted agenda for this Council meeting. In addition, a panel of community members assisted with the interview process and provided feedback on the candidates under consideration.
NEXT STEPS
Upon consent of the City Council and issuance of a final offer letter, Brandon Sanchez is scheduled to begin employment effective June 1, 2026.
Attachments:
None
6.1. City of Gilroy
STAFF REPORT
Agenda Item Title: Award Three, Three-Year On-Call Contracts for Encampment Cleanup Program Services with Two, One-Year Extension
Options with an Amount Not-To-Exceed $750,000 each to San Jose Conservation Corps, Landscape Maintenance America
dba California Highway Adoption Company, and FS Global
Solutions
Meeting Date: May 4, 2026
From: Matt Morley, City Administrator
Department: Public Works
Submitted by: John Doughty, Public Works Director
Prepared by: Matt Jones, Deputy Public Works Director, Bryan Rodriguez, Management Analyst Trainee
STRATEGIC PLAN GOALS: Not Applicable
RECOMMENDATION
1. Authorize the City to enter into Agreements in an amount not to exceed $750,000 each with San Jose Conservation Corps, Landscape Maintenance America dba California Highway Adoption Company, and FS Global for a Three-Year On-Call Encampment Cleanup Program Services with two one-year extension options;
2. Authorize the City Administrator to execute the Agreements; and
3. Adopt a resolution amending the FY 2026–2027 adopted budgets appropriating $50,000 from the General Fund (100) in FY 2026, and $100,000 in FY 2027 for this work.
EXECUTIVE SUMMARY
This action will provide for establishing multi-year contracts for abatement of unhoused
6.1. encampments and appropriate funds of $150,000 from the General Fund across Fiscal Year (FY) 2026 and FY 2027 to provide these services.
BACKGROUND
The City has one of the largest concentrations of unhoused individuals in Santa Clara County. Ideally the Police Department’s Quality of Life team and other service providers will connect these individuals with the services to get them off the street. In spite of these efforts, often these individuals encamp in locations where they are not permitted and the City must act to remove the encampment. To do this, the City has utilized a combination of public works maintenance staff and private contractors to assist with encampment clean-ups. Over the last two years, staff has solicited private proposals for each site needing outside assistance. The frequency of this process has proven to be inefficient and can result in delays in cleanup efforts.
In September 2020, the City Council created the Unhoused Ad-Hoc Committee (UAHC) to develop recommendations on addressing the impacts of homelessness. One adopted recommendation was to secure a mobile garbage removal service/program. It was made into a priority by UAHC as one of five initial priorities.
Staff prepared a request for proposals (21-RFP-AD-462) for potential contractors to provide cleanup services for homeless and encampments and illegal dumping. Three bids were received and a one-year with two one-year extension contract was awarded to US Ecology for a not-to-exceed amount of $100,000. The city used American Rescue Plan Act (ARPA) funds for the contract. The contract expired in 2024.
Since 2024, the City has continued to experience encampment-related impacts, including debris accumulation, illegal dumping, and public health and safety concerns in public spaces. Existing City resources are limited in their ability to address these conditions due to competing operational priorities, and the specialized nature of encampment cleanup, which may involve hazardous materials and bio-hazards. This operational challenge was further exacerbated by the final separation of Utilities and Public Works operations staff.
To reestablish and expand this service, staff issued a new Request for Proposals on December 29, 2025, with a submittal deadline of February 6, 2026. Fourteen proposals were received and evaluated by a review committee consisting of Public Works, Community Development, and Police Department Staff.
In March 2026, staff conducted interviews with the three highest-ranked finalists, San José Conservation Corps, Landscape Maintenance America dba California Highway Adoption Company, and FS Global Solutions. Each firm provided a presentation, and staff asked clarifying questions regarding their operations, experience working with
6.1. other municipalities, and elements of their proposals.
ANALYSIS
Staff is seeking approval of three on-call contracts for encampment cleanup program services to provide the City with a flexible and efficient approach to addressing homeless encampments and illegal dumping. The use of multiple qualified vendors will allow the City to respond more quickly to service requests, match the appropriate resources to site conditions, and maintain cost control through competitive selection.
The proposed program builds on prior Council direction to address impacts associated with homelessness and expands the City’s ability to maintain public health, safety, and environmental conditions in public spaces. Services will be performed on an as-needed basis through individual work orders.
In December 2025, staff prepared a request for proposals (RFP) for potential contracts to provide encampment cleanup program services. The RFP was issued on December 29, 2025, and the deadline for submittals was February 6, 2026.
Fourteen proposals were received, and the review committee consisting of four Public Works, Community Development, and Police Department staff members scored the proposals.
Proposals were evaluated based on the following criteria: team qualifications, relevant experience, ability to mobilize within 72 hours, and cost competitiveness.
Below is a table showing the total scores from the evaluation team for the fourteen vendors, with a maximum total score of 100 being possible:
Proposal Evaluation Score
San Jose Conservation Corps 88
California Highway Adoption Company 85
FS Global Solution 85
Service Master 84
American Integrated 83
Ground Zero 81
California Environmental Services 70
6.1. Based on the evaluation criteria, San Jose Conservation Corps, California Highway Adoption Company, and FS Global Solutions ranked highest among the fourteen proposals received. These firms demonstrated strong experience with encampment cleanups, competitive pricing, and the ability to perform work without reliance on extensive subcontracting.
Staff is recommending award to multiple vendors to maintain operational flexibility and cost control. Encampment cleanup conditions vary significantly, including access constraints, debris volume, and potential hazardous materials. Utilizing multiple vendors allows the City to assign work based on contractor strengths, availability, and pricing, reducing delays and avoiding reliance on a single provider.
While some minor cleanup activities may be performed by City staff, encampment cleanup often involves specialized handling of waste, including bio-hazards, and requires dedicated equipment and trained personnel. Contracting these services allows City staff to remain focused on core operations while ensuring safe and compliant cleanup of encampments.
GrayMar Environmental Services 70
Republic Services 70
Forensiclean 68
M. Rizzo Inc 62
Steri-clean 61
Clean Harborz 52
A1 Solutions 35
ALTERNATIVES
1. Approve three on-call agreements and proposed funding. This provides flexibility, competitive pricing, and a timely response to encampment cleanup needs.
2. Approve three on-call contracts with reduced initial funding to evaluate service demand and costs. This lowers the contract capacity and may limit response capacity and delay cleanups.
3. Do not approve contracts and rely on City staff. This is not recommended due to a misalignment of staff capacity and community expectations.
FISCAL IMPACT/FUNDING SOURCE
6.1. The proposed encampment cleanup program will be funded through the City’s General Fund (100). Staff recommends an initial appropriation of $50,000 in FY 2025–2026 and $100,000 in FY 2026–2027 to support program implementation. Funds will be allocated to the Public Works Department Street Maintenance account 5520 (1005520-51630).
The recommended contracts establish a not-to-exceed amount of $750,000 per vendor over a potential five-year term; however, expenditures will be issued on an as-needed basis through individual work orders and are not guaranteed. Total annual expenditures are limited to the budgeted amount. Any increase is subject to City Council review and approval.
Actual program costs will vary depending on site conditions, volume of debris, presence of hazardous materials, and required equipment and labor. Utilizing multiple vendors allows the City to select the most cost-effective provider for each cleanup.
The proposed funding levels are intended to support a phased implementation of the program. Staff will monitor service demand, cost per cleanup, and overall program performance, and will return to Council through the annual budget process with any recommended funding adjustments. Budgetary appropriations for subsequent fiscal years will be included and recommended through future budget development processes.
PUBLIC OUTREACH
N/A
NEXT STEPS
Upon approval, staff will proceed with executing the agreements listed as attachments in this staff report for the initial three-year period, with two, one-year extension options.
Once the contract is awarded, staff will coordinate immediate and work to anticipate future clean-up activities. The work will be coordinated based on the operational needs of the City.
Attachments:
1. Resolution Amending the Budget for the City of Gilroy for the Fiscal Year 2026 and Fiscal Year 2027
2. Draft Agreement for Services - San Jose Conservation Corps
3. Draft Agreement for Services - Landscape Maintenance of America DBA California Highway Adoption Company
4. Draft Agreement for Services - Foege Schumann Global Disaster Solutions LLC
6.1. d.b.a. F. S. Global Solutions
RESOLUTION NO. 2026-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY AMENDING THE BUDGET FOR THE FISCAL YEAR 2025-2026 (FY26) AND FISCAL YEAR 2026-2027 (FY27) AND APPROPRIATING PROPOSED EXPENDITURE
AMENDMENTS
WHEREAS, the City Administrator prepared and submitted to the City Council a budget for the City of Gilroy for FY26 and FY27, 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 proposed budget amendments to the budget for FY26 and FY27 for the City of Gilroy in the staff report dated May 4, 2026, regarding award for on-call services for encampment clean-ups.
NOW, THEREFORE, BE IT RESOLVED that the expenditure appropriations for FY26 shall be increased by $50,000, and expenditure appropriations for FY27 shall be increased by $100,000, within the General Fund (100) for the said purpose.
PASSED AND ADOPTED this 4th day of May 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
Resolution Amending the Budget for Fiscal Years 2026 and 2027 City Council Regular Meeting | May 4, 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 Council held on Monday, Date, with a quorum present.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of the City of Gilroy this Tuesday, XXXXX
____________________________________
Kim Mancera
City Clerk of the City of Gilroy
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AGREEMENT FOR SERVICES
(For contracts over $5,000 – NON-DESIGN, NON-ENGINEERING TYPE CONTRACTOR) This AGREEMENT made this 4th day of May, 2026, between:
CITY: City of Gilroy, having a principal place of business at 7351 Rosanna Street, Gilroy, California
and CONTRACTOR: San Jose Conservation Corp, having a principal place of business at 1560 Berger Drive, San Jose, CA, 95112.
ARTICLE 1. TERM OF AGREEMENT
This Agreement will become effective on May 4, 2026 and will continue in effect through June 30, 2029, with an option to extend one year at a time for a period of up to two additional years at the City’s sole option to be exercised by written notice to be given by City not less than thirty (30) days and not more than sixty (60) days prior to June 30, 2029, unless terminated in accordance with the provisions of Article 7 of this Agreement.
Any lapse in insurance coverage as required by Article 5, Section D of this Agreement shall terminate this Agreement regardless of any other provision stated herein. ______ Initial
ARTICLE 2. INDEPENDENT CONTRACTOR STATUS
It is the express intention of the parties that CONTRACTOR is an independent contractor and not an employee, agent, joint venturer or partner of CITY. Nothing in this Agreement shall be interpreted or construed as creating or establishing the relationship of employer and employee between CITY and CONTRACTOR or any employee or agent of CONTRACTOR. Both parties acknowledge that CONTRACTOR is not an employee for state or federal tax purposes.
CONTRACTOR shall not be entitled to any of the rights or benefits afforded to CITY’S employees, including, without limitation, disability or unemployment insurance, workers’ compensation, medical insurance, sick leave, retirement benefits or any other employment benefits. CONTRACTOR shall retain the right to perform services for others during the term of this Agreement.
ARTICLE 3. SERVICES TO BE PERFORMED BY CONTRACTOR
A. Specific Services
CONTRACTOR agrees to: Perform the services as outlined in Exhibit “A” (“Specific Provisions”) and Exhibit “B” (“Scope of Services”), within the time periods described in Exhibit “C” (“Milestone Schedule”).
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B. Method of Performing Services
CONTRACTOR shall determine the method, details and means of performing the above-described services. CITY shall have no right to, and shall not, control the manner or determine the method of accomplishing CONTRACTOR’S services.
C. Employment of Assistants
CONTRACTOR may, at the CONTRACTOR’S own expense, employ such assistants as CONTRACTOR deems necessary to perform the services required of CONTRACTOR by this Agreement, subject to the prohibition against assignment and subcontracting contained in Article 5 below. CITY may not control, direct, or supervise CONTRACTOR’S assistants in the performance of those services. CONTRACTOR assumes full and sole responsibility for the payment of all compensation and expenses of these assistants and for all state and federal income tax, unemployment insurance, Social Security, disability insurance and other applicable withholding.
D. Place of Work
CONTRACTOR shall perform the services required by this Agreement at any place or location and at such times as CONTRACTOR shall determine is necessary to properly and timely perform CONTRACTOR’S services.
ARTICLE 4. COMPENSATION
A. Consideration
In consideration for the services to be performed by CONTRACTOR, CITY agrees to pay CONTRACTOR the amounts set forth in Exhibit “D” (“Payment Schedule”). In no event however shall the total compensation paid to CONTRACTOR exceed $750,000.00.
B. Invoices
CONTRACTOR shall submit invoices for all services rendered.
C. Payment
Payment shall be due according to the payment schedule set forth in Exhibit “D”. No payment will be made unless CONTRACTOR has first provided City with a written receipt of invoice describing the work performed and any approved direct expenses (as provided for in Exhibit “A”, Section IV) incurred during the preceding period. If CITY objects to all or any portion of any invoice, CITY shall notify CONTRACTOR of the objection within thirty (30) days from receipt of the invoice, give reasons for the objection, and pay that portion of the invoice not in dispute. It shall not constitute a default or breach of this Agreement for CITY not to pay any invoiced amounts to which it has objected until the objection has been resolved by mutual agreement of the parties.
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D. Expenses
CONTRACTOR shall be responsible for all costs and expenses incident to the performance of services for CITY, including but not limited to, all costs of equipment used or provided by CONTRACTOR, all fees, fines, licenses, bonds or taxes required of or imposed against CONTRACTOR and all other of CONTRACTOR’S costs of doing business. CITY shall not be responsible for any expenses incurred by CONTRACTOR in performing services for CITY, except for those expenses constituting “direct expenses” referenced on Exhibit “A.” ARTICLE 5. OBLIGATIONS OF CONTRACTOR
A. Tools and Instrumentalities
CONTRACTOR shall supply all tools and instrumentalities required to perform the services under this Agreement at its sole cost and expense. CONTRACTOR is not required to purchase or rent any tools, equipment or services from CITY.
B. Workers’ Compensation
CONTRACTOR agrees to provide workers’ compensation insurance for CONTRACTOR’S employees and agents and agrees to hold harmless, defend with counsel acceptable to CITY and indemnify CITY, its officers, representatives, agents and employees from and against any and all claims, suits, damages, costs, fees, demands, causes of action, losses, liabilities and expenses, including without limitation reasonable attorneys’ fees, arising out of any injury, disability, or death of any of CONTRACTOR’S employees.
C. Indemnification of Liability, Duty to Defend
As to all liability, to the fullest extent permitted by law, CONTRACTOR shall defend, through counsel approved by CITY (which approval shall not be unreasonably withheld), indemnify and hold harmless CITY, its officers, representatives, agents and employees against any and all suits, damages, costs, fees, claims, demands, causes of action, losses, liabilities and expenses, including without limitation attorneys’ fees, arising or resulting directly or indirectly from any act or omission of CONTRACTOR or CONTRACTOR’S assistants, employees or agents, including all claims relating to the injury or death of any person or damage to any property.
D. Insurance
In addition to any other obligations under this Agreement, CONTRACTOR shall, at no cost to CITY, obtain and maintain throughout the term of this Agreement: (a) Commercial Liability Insurance on a per occurrence basis, including coverage for owned and non-owned automobiles, with a minimum combined single limit coverage of $1,000,000 per occurrence for all damages due to bodily injury, sickness or disease, or death to any person, and damage to property, including the loss of use thereof. As a condition precedent to CITY’S obligations under this Agreement, CONTRACTOR shall furnish written evidence of such coverage (naming CITY, its officers and Docusign Envelope ID: CBF24D6A-BAC0-8291-83CB-F37C4BF4FFD3
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employees as additional insureds on the Comprehensive Liability insurance policy referred to in (a) immediately above via a specific endorsement) and requiring thirty (30) days written notice of policy lapse or cancellation, or of a material change in policy terms.
E. Assignment
Notwithstanding any other provision of this Agreement, neither this Agreement nor any duties or obligations of CONTRACTOR under this Agreement may be assigned or subcontracted by CONTRACTOR without the prior written consent of CITY, which CITY may withhold in its sole and absolute discretion.
F. State and Federal Taxes
As CONTRACTOR is not CITY’S employee, CONTRACTOR shall be responsible for paying all required state and federal taxes. Without limiting the foregoing, CONTRACTOR acknowledges and agrees that:
• CITY will not withhold FICA (Social Security) from CONTRACTOR’S payments;
• CITY will not make state or federal unemployment insurance contributions on CONTRACTOR’S behalf;
• CITY will not withhold state or federal income tax from payment to CONTRACTOR;
• CITY will not make disability insurance contributions on behalf of CONTRACTOR;
• CITY will not obtain workers’ compensation insurance on behalf of CONTRACTOR.
ARTICLE 6. OBLIGATIONS OF CITY
A. Cooperation of City
CITY agrees to respond to all reasonable requests of CONTRACTOR and provide access, at reasonable times following receipt by CITY of reasonable notice, to all documents reasonably necessary to the performance of CONTRACTOR’S duties under this Agreement.
B. Assignment
CITY may assign this Agreement or any duties or obligations thereunder to a successor governmental entity without the consent of CONTRACTOR. Such assignment shall not release CONTRACTOR from any of CONTRACTOR’S duties or obligations under this Agreement.
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ARTICLE 7. TERMINATION OF AGREEMENT
A. Sale of CONTRACTOR’s Business/ Death of CONTRACTOR.
CONTRACTOR shall notify CITY of the proposed sale of CONTRACTOR’s business no later than thirty (30) days prior to any such sale. CITY shall have the option of terminating this Agreement within thirty (30) days after receiving such notice of sale. Any such CITY termination pursuant to this Article 7.A shall be in writing and sent to the address for notices to CONTRACTOR set forth in Exhibit A, Subsection V.H., no later than thirty (30) days after CITY’ receipt of such notice of sale.
If CONTRACTOR is an individual, this Agreement shall be deemed automatically terminated upon death of CONTRACTOR.
B. Termination by City for Default of CONTRACTOR
Should CONTRACTOR default in the performance of this Agreement or materially breach any of its provisions, CITY, at CITY’S option, may terminate this Agreement by giving written notification to CONTRACTOR. For the purposes of this section, material breach of this Agreement shall include, but not be limited to the following:
1. CONTRACTOR’S failure to professionally and/or timely perform any of the services contemplated by this Agreement.
2. CONTRACTOR’S breach of any of its representations, warranties or covenants contained in this Agreement.
CONTRACTOR shall be entitled to payment only for work completed in accordance with the terms of this Agreement through the date of the termination notice, as reasonably determined by CITY, provided that such payment shall not exceed the amounts set forth in this Agreement for the tasks described on Exhibit C” which have been fully, competently and timely rendered by CONTRACTOR. Notwithstanding the foregoing, if CITY terminates this Agreement due to CONTRACTOR’S default in the performance of this Agreement or material breach by CONTRACTOR of any of its provisions, then in addition to any other rights and remedies CITY may have, CONTRACTOR shall reimburse CITY, within ten (10) days after demand, for any and all costs and expenses incurred by CITY in order to complete the tasks constituting the scope of work as described in this Agreement, to the extent such costs and expenses exceed the amounts CITY would have been obligated to pay CONTRACTOR for the performance of that task pursuant to this Agreement.
C. Termination for Failure to Make Agreed-Upon Payments Should CITY fail to pay CONTRACTOR all or any part of the compensation set forth in Article 4 of this Agreement on the date due, then if and only if such nonpayment constitutes a default under this Agreement, CONTRACTOR, at the CONTRACTOR’S option, may terminate this Agreement if such default is not remedied by CITY within thirty (30) days after demand for such payment is given by CONTRACTOR to CITY.
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D. Transition after Termination
Upon termination, CONTRACTOR shall immediately stop work, unless cessation could potentially cause any damage or harm to person or property, in which case CONTRACTOR shall cease such work as soon as it is safe to do so. CONTRACTOR shall incur no further expenses in connection with this Agreement. CONTRACTOR shall promptly deliver to CITY all work done toward completion of the services required hereunder, and shall act in such a manner as to facilitate any the assumption of CONTRACTOR’s duties by any new CONTRACTOR hired by the CITY to complete such services.
ARTICLE 8. GENERAL PROVISIONS
A. Amendment & Modification
No amendments, modifications, alterations or changes to the terms of this Agreement shall be effective unless and until made in a writing signed by both parties hereto.
B. Americans with Disabilities Act of 1990
Throughout the term of this Agreement, the CONTRACTOR shall comply fully with all applicable provisions of the Americans with Disabilities Act of 1990 (“the Act”) in its current form and as it may be amended from time to time. CONTRACTOR shall also require such compliance of all subcontractors performing work under this Agreement, subject to the prohibition against assignment and subcontracting contained in Article 5 above. The CONTRACTOR shall defend with counsel acceptable to CITY, indemnify and hold harmless the CITY OF GILROY, its officers, employees, agents and representatives from and against all suits, claims, demands, damages, costs, causes of action, losses, liabilities, expenses and fees, including without limitation reasonable attorneys’ fees, that may arise out of any violations of the Act by the CONTRACTOR, its subcontractors, or the officers, employees, agents or representatives of either.
C. Attorneys’ Fees
If any action at law or in equity, including an action for declaratory relief, is brought to enforce or interpret the provisions of this Agreement, the prevailing party will be entitled to reasonable attorneys’ fees, which may be set by the court in the same action or in a separate action brought for that purpose, in addition to any other relief to which that party may be entitled.
D. Captions
The captions and headings of the various sections, paragraphs and subparagraphs of the Agreement are for convenience only and shall not be considered nor referred to for resolving questions of interpretation.
E. Compliance with Laws
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and of all such orders and decrees of bodies or tribunals having any jurisdiction or authority over the same. Without limiting the foregoing, CONTRACTOR agrees to observe the provisions of the Municipal Code of the CITY OF GILROY, obligating every contractor or subcontractor under a contract or subcontract to the CITY OF GILROY for public works or for goods or services to refrain from discriminatory employment or subcontracting practices on the basis of the race, color, sex, religious creed, national origin, ancestry of any employee, applicant for employment, or any potential subcontractor.
F. Conflict of Interest
CONTRACTOR certifies that to the best of its knowledge, no CITY employee or office of any public agency interested in this Agreement has any pecuniary interest in the business of CONTRACTOR and that no person associated with CONTRACTOR has any interest that would constitute a conflict of interest in any manner or degree as to the execution or performance of this Agreement.
G. Entire Agreement
This Agreement supersedes any and all prior agreements, whether oral or written, between the parties hereto with respect to the rendering of services by CONTRACTOR for CITY and contains all the covenants and agreements between the parties with respect to the rendering of such services in any manner whatsoever. Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein, and that no other agreement, statement or promise not contained in this Agreement shall be valid or binding.
No other agreements or conversation with any officer, agent or employee of CITY prior to execution of this Agreement shall affect or modify any of the terms or obligations contained in any documents comprising this Agreement. Such other agreements or conversations shall be considered as unofficial information and in no way binding upon CITY.
H. Governing Law and Venue
This Agreement shall be governed by and construed in accordance with the laws of the State of California without regard to the conflict of laws provisions of any jurisdiction. The exclusive jurisdiction and venue with respect to any and all disputes arising hereunder shall be in state and federal courts located in Santa Clara County, California.
I. Notices
Any notice to be given hereunder by either party to the other may be effected either by personal delivery in writing or by mail, registered or certified, postage prepaid with return receipt requested.
Mailed notices shall be addressed to the parties at the addresses appearing in Exhibit “A”, Section V.H. but each party may change the address by written notice in accordance with this paragraph.
Notices delivered personally will be deemed delivered as of actual receipt; mailed notices will be deemed delivered as of three (3) days after mailing.
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J. Partial Invalidity
If any provision in this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions will nevertheless continue in full force without being impaired or invalidated in any way.
K. Time of the Essence
All dates and times referred to in this Agreement are of the essence.
L. Waiver
CONTRACTOR agrees that waiver by CITY of any one or more of the conditions of performance under this Agreement shall not be construed as waiver(s) of any other condition of performance under this Agreement.
Executed at Gilroy, California, on the date and year first above written.
CONTRACTOR: CITY:
San Jose Conservation Corps CITY OF GILROY
By: By:
Name: Robert Walker Name: Matt Morley
Title: VP of Social Enterprise Title: City Administrator Social Security or Taxpayer
Identification Number 770155997
Approved as to Form ATTEST:
City Attorney City Clerk
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EXHIBIT “A”
SPECIFIC PROVISIONS
I. PROJECT MANAGER
CONTRACTOR shall provide the services indicated on the attached Exhibit “B”, Scope of Services (“Services”). (All exhibits referenced are incorporated herein by reference.) To accomplish that end, CONTRACTOR agrees to assign Darleny Padilla, who will act in the capacity of Project Manager, and who will personally direct such Services.
Except as may be specified elsewhere in this Agreement, CONTRACTOR shall furnish all technical and professional services including labor, material, equipment, transportation, supervision and expertise to perform all operations necessary and required to complete the Services in accordance with the terms of this Agreement.
II. NOTICE TO PROCEED/COMPLETION OF SERVICE
A. NOTICE TO PROCEED
CONTRACTOR shall commence the Services upon delivery to CONTRACTOR of a written “Notice to Proceed”, which Notice to Proceed shall be in the form of a written communication from designated City contact person(s). Notice to Proceed may be in the form of e-mail, fax or letter authorizing commencement of the Services. For purposes of this Agreement, Deputy Director of Public Works shall be the designated City contact person(s). Notice to Proceed shall be deemed to have been delivered upon actual receipt by CONTRACTOR or if otherwise delivered as provided in the Section V.H. (“Notices”) of this Exhibit “A”.
B. COMPLETION OF SERVICES
When CITY determines that CONTRACTOR has completed all of the Services in accordance with the terms of this Agreement, CITY shall give CONTRACTOR written Notice of Final Acceptance, and CONTRACTOR shall not incur any further costs hereunder. CONTRACTOR may request this determination of completion when, in its opinion, it has completed all of the Services as required by the terms of this Agreement and, if so requested, CITY shall make this determination within two (2) weeks of such request, or if CITY determines that CONTRACTOR has not completed all of such Services as required by this Agreement, CITY shall so inform CONTRACTOR within this two (2) week period.
III. PROGRESS SCHEDULE
The schedule for performance and completion of the Services will be as set forth in the attached Exhibit “C”.
IV. PAYMENT OF FEES AND DIRECT EXPENSES
Payments shall be made to CONTRACTOR as provided for in Article 4 of this Agreement.
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Direct expenses are charges and fees not included in Exhibit “B”. CITY shall be obligated to pay only for those direct expenses which have been previously approved in writing by CITY.
CONTRACTOR shall obtain written approval from CITY prior to incurring or billing of direct expenses.
Copies of pertinent financial records, including invoices, will be included with the submission of billing(s) for all direct expenses.
V. OTHER PROVISIONS
A. STANDARD OF WORKMANSHIP
CONTRACTOR represents and warrants that it has the qualifications, skills and licenses necessary to perform the Services, and its duties and obligations, expressed and implied, contained herein, and CITY expressly relies upon CONTRACTOR’S representations and warranties regarding its skills, qualifications and licenses. CONTRACTOR shall perform such Services and duties in conformance to and consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California.
Any plans, designs, specifications, estimates, calculations, reports and other documents furnished under this Agreement shall be of a quality acceptable to CITY. The minimum criteria for acceptance shall be a product of neat appearance, well-organized, technically and grammatically correct, checked and having the maker and checker identified. The minimum standard of appearance, organization and content of the drawings shall be that used by CITY for similar purposes.
B. RESPONSIBILITY OF CONTRACTOR
CONTRACTOR shall be responsible for the professional quality, technical accuracy, and the coordination of the Services furnished by it under this Agreement. CONTRACTOR shall not be responsible for the accuracy of any project or technical information provided by the CITY. The CITY’S review, acceptance or payment for any of the Services shall not be construed to operate as a waiver of any rights under this Agreement or of any cause of action arising out of the performance of this Agreement, and CONTRACTOR shall be and remain liable to CITY in accordance with applicable law for all damages to CITY caused by CONTRACTOR’S negligent performance of any of the services furnished under this Agreement.
C. RIGHT OF CITY TO INSPECT RECORDS OF CONTRACTOR
CITY, through its authorized employees, representatives or agents, shall have the right, at any and all reasonable times, to audit the books and records (including, but not limited to, invoices, vouchers, canceled checks, time cards, etc.) of CONTRACTOR for the purpose of verifying any and all charges made by CONTRACTOR in connection with this Agreement. CONTRACTOR shall maintain for a minimum period of three (3) years (from the date of final payment to CONTRACTOR), or for any longer period required by law, sufficient books and records in accordance with standard California accounting practices to establish the correctness of all charges submitted to CITY by CONTRACTOR, all of which shall be made available to CITY at the CITY’s offices within five (5) business days after CITY’s request.
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D. CONFIDENTIALITY OF MATERIAL
All ideas, memoranda, specifications, plans, manufacturing procedures, data (including, but not limited to, computer data and source code), drawings, descriptions, documents, discussions or other information developed or received by or for CONTRACTOR and all other written and oral information developed or received by or for CONTRACTOR and all other written and oral information submitted to CONTRACTOR in connection with the performance of this Agreement shall be held confidential by CONTRACTOR and shall not, without the prior written consent of CITY, be used for any purposes other than the performance of the Services, nor be disclosed to an entity not connected with the performance of the such Services. Nothing furnished to CONTRACTOR which is otherwise known to CONTRACTOR or is or becomes generally known to the related industry (other than that which becomes generally known as the result of CONTRACTOR’S disclosure thereof) shall be deemed confidential. CONTRACTOR shall not use CITY’S name or insignia, or distribute publicity pertaining to the services rendered under this Agreement in any magazine, trade paper, newspaper or other medium without the express written consent of CITY.
E. NO PLEDGING OF CITY’S CREDIT.
Under no circumstances shall CONTRACTOR have the authority or power to pledge the credit of CITY or incur any obligation in the name of CITY.
F. OWNERSHIP OF MATERIAL.
All material including, but not limited to, computer information, data and source code, sketches, tracings, drawings, plans, diagrams, quantities, estimates, specifications, proposals, tests, maps, calculations, photographs, reports and other material developed, collected, prepared (or caused to be prepared) under this Agreement shall be the property of CITY, but CONTRACTOR may retain and use copies thereof subject to Section V.D of this Exhibit “A”.
CITY shall not be limited in any way in its use of said material at any time for any work, whether or not associated with the City project for which the Services are performed. However, CONTRACTOR shall not be responsible for, and City shall indemnify CONTRACTOR from, damages resulting from the use of said material for work other than PROJECT, including, but not limited to, the release of this material to third parties for work other than on PROJECT.
G. NO THIRD PARTY BENEFICIARY.
This Agreement shall not be construed or deemed to be an agreement for the benefit of any third party or parties, and no third party or parties shall have any claim or right of action hereunder for any cause whatsoever.
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H. NOTICES.
Notices are to be sent as follows:
CITY: Matt Jones
City of Gilroy
7351 Rosanna Street
Gilroy, CA 95020
CONTRACTOR: Robert Walker
San Jose Conservation Corps
1560 Berger Drive
San Jose, CA 95112
I. FEDERAL FUNDING REQUIREMENTS.
If the box to the left of this sentence is checked, this Agreement involves federal funding and the requirements of this Section V.I. apply.
If the box to the left of this sentence is checked, this Agreement does not involve federal funding and the requirements of this Section V.I. do not apply.
1. DBE Program
CONTRACTOR shall comply with the requirements of Title 49, Part 26, Code of Federal Regulations (49 CFR 26) and the City-adopted Disadvantaged Business Enterprise programs.
2. Cost Principles
Federal Acquisition Regulations in Title 48, CFR 31, shall be used to determine the allowable cost for individual items.
3. Covenant against Contingent Fees
The CONTRACTOR warrants that he/she has not employed or retained any company or person, other than a bona fide employee working for the CONTRACTOR, to solicit or secure this Agreement, and that he/she has not paid or agreed to pay any company or person, other than a bona fide employee, any fee, commission, percentage, brokerage fee, gift or any other consideration, contingent upon or resulting from the award or formation of this Agreement. For breach or violation of this warranty, the Local Agency shall have the right to annul this Agreement without liability or, at its discretion, to deduct from the agreement price or consideration, or otherwise recover, the full amount of such fee, commission, percentage, brokerage fee, gift or contingent fee.
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EXHIBIT “B”
SCOPE OF SERVICES
Contractor Duties and Responsibilities
A. Cleanup duties shall include surveying sites, collecting debris, dismantling temporary structures, removal of trash, removal of human waste, and state-approved handling and removal of all material. Disposal shall be at a site permitted to accept such materials and shall be in coordination with Recology.
B. Contractor shall supply all labor, material, tools, protective clothing and gear, and equipment that is required or needed to perform the work to handle, remove, transport, and dispose of the waste materials and leave a clean site, per CAL-OSHA.
C. Contractor shall provide all supervision and management of crews and subcontractors and ensure all necessary safety procedures are followed. This individual will serve as the City’s contact.
D. Contractor shall photograph and document the condition of the site prior to work and after work is completed and provide an electronic copy of each photograph to the City.
E. Contractor shall notify the City’s designated representative in the event that the site becomes occupied again prior to or during the work, or if an adjacent homeless encampment is discovered in the general area during a project to obtain authorization prior to proceeding with any additional work that was not identified in the original work order scope.
F. Contractor shall follow best practices work procedures to safely manage any hazardous materials found on the jobsite, including urine, feces, solid personal hygiene items, syringes, and other materials that could pose a health threat.
G. Contractor shall immediately notify the Gilroy Police Department upon discovery of any projectile weapon, including but not limited to firearms, crossbows, or BB guns, as well as any suspected contraband, evidence of criminal activity, or other items deemed suspicious in nature.
H. Contractor shall properly handle and dispose of solid waste and hazardous waste in accordance with all applicable laws.
I. The contractor shall apply Best Management Practices (BMPs) for all pollution prevention of the discharge of human waste and other biohazards, cleaning agents, waste, trash, debris, and other pollutants to the storm drain and receiving waters.
J. All material, parts, equipment, and chemicals used or furnished pursuant to the specifications of this contract shall comply with the laws and regulations of the City of Gilroy, the State of California, and OSHA.
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K. The contractor will be responsible for all damages to the City’s facilities, their contents, or other City-owned improvements, caused by the contractor, its staff, or its sub-contractors during the performance of their duties. The contractor shall protect all furnishings and improvements from damage by its operations. All damage shall be repaired or replaced, at the option of the City, at the contractor’s expense within a reasonable time after notification of such damage. Repairs and/or replacements shall be equal to the original in all aspects.
L. Contractor shall perform work in a timely and efficient manner and always conduct themselves in a courteous and business-like fashion.
M. Safety and appropriate training/licensing are critical requirements for the selected Contractor.
At no time is the Contractor expected to interact with the homeless residents or put their employees at risk.
N. Contractor shall comply with all safety rules, protocols, and licensing requirements mandated by the City, Santa Clara County, and the State of California.
O. Contractor shall follow California Department of Industrial Relations’ Bloodborne Pathogen Standard §5193. Additionally, employees must be trained with precautions regarding West Nile Virus, hantavirus, histoplasmosis and other possible environmental threats posed from cleanup activities.
P. Employees must have work procedures to be able to safely manage urine, feces, soiled personal hygiene items, syringes, and other materials which could pose a health threat. Wearing Personal Protective Equipment and following other protocols established for this situation must be followed.
The Contractor will dispose of this waste material and syringes by appropriate means in accordance with local, regional, state, and federal laws.
Q. Contractor shall notify the City when the work is complete, and at the time of invoice submittal, shall provide a report for each site cleared which will include:
a. Date(s) of service.
b. Approximate location (i.e. 6th street bridge, 1234 7th street) c. Methods used to clear the site.
d. Staffing levels used.
e. Total hours on site.
f. Weight of debris removed.
g. Provide general observations of the site, and the work performed, including a qualitative assessment and approximate quantities of materials removed (e.g., tires, mattresses, debris, hazardous materials).
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h. Notations of any issues encountered in conducting the work, whether internally or externally caused.
i. Before and after pictures
City Responsibilities
The City shall coordinate outreach and site preparation efforts to ensure that cleanup activities are conducted in areas that are clear and ready for service.
The City shall coordinate with the Gilroy Police Department to provide support at sensitive locations, as determined necessary, during cleanup activities.
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EXHIBIT “C”
MILESTONE SCHEDULE
The generation and issuing of work orders under this contract will require the following milestone schedule:
1. The City will notify the Contractor of a potential clean up location.
2. The Contractor is to supply a cost estimate and proposed schedule for the work order within 48 hours.
3. The City will then issue a work order to Contractor within 24 hours after receiving the estimate and schedule, unless there are questions or concerns regarding the estimate or schedule.
4. Contractor will then mobilize within 72 hours after receiving authorization to proceed from the City.
There are no overarching milestones beyond the response timeframes noted above. Each work order will establish its own milestones for the specific work order, as will be discussed in assessing sites and planning the work order(s). All services within this agreement will be conducted on an on-call basis whenever services are requested by the CITY.
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EXHIBIT “D”
PAYMENT SCHEDULE
1. Payments shall be due net 30 days after invoicing from Contractor. Specific payment terms may be established each work order issued.
2. The contract payments will be based on time and materials. Documentation of employee hours, equipment and material costs, and disposal costs shall be provided by the Contractor to the City.
3.Contractor shall notify the City when the work is complete, and at the time of invoice submittal, shall provide a report for each site, as referenced in Exhibit "B" Contractor Duties and Responsibilities section Q.
4. Rates shall be set for the duration of this contract per the rate sheets from the Contractor attached.
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AGREEMENT FOR SERVICES
(For contracts over $5,000 – NON-DESIGN, NON-ENGINEERING TYPE CONTRACTOR) This AGREEMENT made this 4th day of May, 2026, between:
CITY: City of Gilroy, having a principal place of business at 7351 Rosanna Street, Gilroy, California
and CONTRACTOR: Landscape Maintenance of America DBA California Highway Adoption Company, having a principal place of business at 4050 Alvis Court Rocklin, CA, 95677.
ARTICLE 1. TERM OF AGREEMENT
This Agreement will become effective on May 4, 2026 and will continue in effect through June 30, 2029, with an option to extend one year at a time for a period of up to two additional years at the City’s sole option to be exercised by written notice to be given by City not less than thirty (30) days and not more than sixty (60) days prior to June 30, 2029, unless terminated in accordance with the provisions of Article 7 of this Agreement.
Any lapse in insurance coverage as required by Article 5, Section D of this Agreement shall terminate this Agreement regardless of any other provision stated herein. ______ Initial
ARTICLE 2. INDEPENDENT CONTRACTOR STATUS
It is the express intention of the parties that CONTRACTOR is an independent contractor and not an employee, agent, joint venturer or partner of CITY. Nothing in this Agreement shall be interpreted or construed as creating or establishing the relationship of employer and employee between CITY and CONTRACTOR or any employee or agent of CONTRACTOR. Both parties acknowledge that CONTRACTOR is not an employee for state or federal tax purposes.
CONTRACTOR shall not be entitled to any of the rights or benefits afforded to CITY’S employees, including, without limitation, disability or unemployment insurance, workers’ compensation, medical insurance, sick leave, retirement benefits or any other employment benefits. CONTRACTOR shall retain the right to perform services for others during the term of this Agreement.
ARTICLE 3. SERVICES TO BE PERFORMED BY CONTRACTOR
A. Specific Services
CONTRACTOR agrees to: Perform the services as outlined in Exhibit “A” (“Specific Provisions”) and Exhibit “B” (“Scope of Services”), within the time periods described in Exhibit “C” (“Milestone Schedule”).
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B. Method of Performing Services
CONTRACTOR shall determine the method, details and means of performing the above-described services. CITY shall have no right to, and shall not, control the manner or determine the method of accomplishing CONTRACTOR’S services.
C. Employment of Assistants
CONTRACTOR may, at the CONTRACTOR’S own expense, employ such assistants as CONTRACTOR deems necessary to perform the services required of CONTRACTOR by this Agreement, subject to the prohibition against assignment and subcontracting contained in Article 5 below. CITY may not control, direct, or supervise CONTRACTOR’S assistants in the performance of those services. CONTRACTOR assumes full and sole responsibility for the payment of all compensation and expenses of these assistants and for all state and federal income tax, unemployment insurance, Social Security, disability insurance and other applicable withholding.
D. Place of Work
CONTRACTOR shall perform the services required by this Agreement at any place or location and at such times as CONTRACTOR shall determine is necessary to properly and timely perform CONTRACTOR’S services.
ARTICLE 4. COMPENSATION
A. Consideration
In consideration for the services to be performed by CONTRACTOR, CITY agrees to pay CONTRACTOR the amounts set forth in Exhibit “D” (“Payment Schedule”). In no event however shall the total compensation paid to CONTRACTOR exceed $750,000.00.
B. Invoices
CONTRACTOR shall submit invoices for all services rendered.
C. Payment
Payment shall be due according to the payment schedule set forth in Exhibit “D”. No payment will be made unless CONTRACTOR has first provided City with a written receipt of invoice describing the work performed and any approved direct expenses (as provided for in Exhibit “A”, Section IV) incurred during the preceding period. If CITY objects to all or any portion of any invoice, CITY shall notify CONTRACTOR of the objection within thirty (30) days from receipt of the invoice, give reasons for the objection, and pay that portion of the invoice not in dispute. It shall not constitute a default or breach of this Agreement for CITY not to pay any invoiced amounts to which it has objected until the objection has been resolved by mutual agreement of the parties.
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D. Expenses
CONTRACTOR shall be responsible for all costs and expenses incident to the performance of services for CITY, including but not limited to, all costs of equipment used or provided by CONTRACTOR, all fees, fines, licenses, bonds or taxes required of or imposed against CONTRACTOR and all other of CONTRACTOR’S costs of doing business. CITY shall not be responsible for any expenses incurred by CONTRACTOR in performing services for CITY, except for those expenses constituting “direct expenses” referenced on Exhibit “A.” ARTICLE 5. OBLIGATIONS OF CONTRACTOR
A. Tools and Instrumentalities
CONTRACTOR shall supply all tools and instrumentalities required to perform the services under this Agreement at its sole cost and expense. CONTRACTOR is not required to purchase or rent any tools, equipment or services from CITY.
B. Workers’ Compensation
CONTRACTOR agrees to provide workers’ compensation insurance for CONTRACTOR’S employees and agents and agrees to hold harmless, defend with counsel acceptable to CITY and indemnify CITY, its officers, representatives, agents and employees from and against any and all claims, suits, damages, costs, fees, demands, causes of action, losses, liabilities and expenses, including without limitation reasonable attorneys’ fees, arising out of any injury, disability, or death of any of CONTRACTOR’S employees.
C. Indemnification of Liability, Duty to Defend
As to all liability, to the fullest extent permitted by law, CONTRACTOR shall defend, through counsel approved by CITY (which approval shall not be unreasonably withheld), indemnify and hold harmless CITY, its officers, representatives, agents and employees against any and all suits, damages, costs, fees, claims, demands, causes of action, losses, liabilities and expenses, including without limitation attorneys’ fees, arising or resulting directly or indirectly from any act or omission of CONTRACTOR or CONTRACTOR’S assistants, employees or agents, including all claims relating to the injury or death of any person or damage to any property.
D. Insurance
In addition to any other obligations under this Agreement, CONTRACTOR shall, at no cost to CITY, obtain and maintain throughout the term of this Agreement: (a) Commercial Liability Insurance on a per occurrence basis, including coverage for owned and non-owned automobiles, with a minimum combined single limit coverage of $1,000,000 per occurrence for all damages due to bodily injury, sickness or disease, or death to any person, and damage to property, including the loss of use thereof. As a condition precedent to CITY’S obligations under this Agreement, CONTRACTOR shall furnish written evidence of such coverage (naming CITY, its officers and Docusign Envelope ID: 421BA53A-5DA5-8DE8-81AE-9D989F17EA05
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employees as additional insureds on the Comprehensive Liability insurance policy referred to in (a) immediately above via a specific endorsement) and requiring thirty (30) days written notice of policy lapse or cancellation, or of a material change in policy terms.
E. Assignment
Notwithstanding any other provision of this Agreement, neither this Agreement nor any duties or obligations of CONTRACTOR under this Agreement may be assigned or subcontracted by CONTRACTOR without the prior written consent of CITY, which CITY may withhold in its sole and absolute discretion.
F. State and Federal Taxes
As CONTRACTOR is not CITY’S employee, CONTRACTOR shall be responsible for paying all required state and federal taxes. Without limiting the foregoing, CONTRACTOR acknowledges and agrees that:
• CITY will not withhold FICA (Social Security) from CONTRACTOR’S payments;
• CITY will not make state or federal unemployment insurance contributions on CONTRACTOR’S behalf;
• CITY will not withhold state or federal income tax from payment to CONTRACTOR;
• CITY will not make disability insurance contributions on behalf of CONTRACTOR;
• CITY will not obtain workers’ compensation insurance on behalf of CONTRACTOR.
ARTICLE 6. OBLIGATIONS OF CITY
A. Cooperation of City
CITY agrees to respond to all reasonable requests of CONTRACTOR and provide access, at reasonable times following receipt by CITY of reasonable notice, to all documents reasonably necessary to the performance of CONTRACTOR’S duties under this Agreement.
B. Assignment
CITY may assign this Agreement or any duties or obligations thereunder to a successor governmental entity without the consent of CONTRACTOR. Such assignment shall not release CONTRACTOR from any of CONTRACTOR’S duties or obligations under this Agreement.
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ARTICLE 7. TERMINATION OF AGREEMENT
A. Sale of CONTRACTOR’s Business/ Death of CONTRACTOR.
CONTRACTOR shall notify CITY of the proposed sale of CONTRACTOR’s business no later than thirty (30) days prior to any such sale. CITY shall have the option of terminating this Agreement within thirty (30) days after receiving such notice of sale. Any such CITY termination pursuant to this Article 7.A shall be in writing and sent to the address for notices to CONTRACTOR set forth in Exhibit A, Subsection V.H., no later than thirty (30) days after CITY’ receipt of such notice of sale.
If CONTRACTOR is an individual, this Agreement shall be deemed automatically terminated upon death of CONTRACTOR.
B. Termination by City for Default of CONTRACTOR
Should CONTRACTOR default in the performance of this Agreement or materially breach any of its provisions, CITY, at CITY’S option, may terminate this Agreement by giving written notification to CONTRACTOR. For the purposes of this section, material breach of this Agreement shall include, but not be limited to the following:
1. CONTRACTOR’S failure to professionally and/or timely perform any of the services contemplated by this Agreement.
2. CONTRACTOR’S breach of any of its representations, warranties or covenants contained in this Agreement.
CONTRACTOR shall be entitled to payment only for work completed in accordance with the terms of this Agreement through the date of the termination notice, as reasonably determined by CITY, provided that such payment shall not exceed the amounts set forth in this Agreement for the tasks described on Exhibit C” which have been fully, competently and timely rendered by CONTRACTOR. Notwithstanding the foregoing, if CITY terminates this Agreement due to CONTRACTOR’S default in the performance of this Agreement or material breach by CONTRACTOR of any of its provisions, then in addition to any other rights and remedies CITY may have, CONTRACTOR shall reimburse CITY, within ten (10) days after demand, for any and all costs and expenses incurred by CITY in order to complete the tasks constituting the scope of work as described in this Agreement, to the extent such costs and expenses exceed the amounts CITY would have been obligated to pay CONTRACTOR for the performance of that task pursuant to this Agreement.
C. Termination for Failure to Make Agreed-Upon Payments Should CITY fail to pay CONTRACTOR all or any part of the compensation set forth in Article 4 of this Agreement on the date due, then if and only if such nonpayment constitutes a default under this Agreement, CONTRACTOR, at the CONTRACTOR’S option, may terminate this Agreement if such default is not remedied by CITY within thirty (30) days after demand for such payment is given by CONTRACTOR to CITY.
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D. Transition after Termination
Upon termination, CONTRACTOR shall immediately stop work, unless cessation could potentially cause any damage or harm to person or property, in which case CONTRACTOR shall cease such work as soon as it is safe to do so. CONTRACTOR shall incur no further expenses in connection with this Agreement. CONTRACTOR shall promptly deliver to CITY all work done toward completion of the services required hereunder, and shall act in such a manner as to facilitate any the assumption of CONTRACTOR’s duties by any new CONTRACTOR hired by the CITY to complete such services.
ARTICLE 8. GENERAL PROVISIONS
A. Amendment & Modification
No amendments, modifications, alterations or changes to the terms of this Agreement shall be effective unless and until made in a writing signed by both parties hereto.
B. Americans with Disabilities Act of 1990
Throughout the term of this Agreement, the CONTRACTOR shall comply fully with all applicable provisions of the Americans with Disabilities Act of 1990 (“the Act”) in its current form and as it may be amended from time to time. CONTRACTOR shall also require such compliance of all subcontractors performing work under this Agreement, subject to the prohibition against assignment and subcontracting contained in Article 5 above. The CONTRACTOR shall defend with counsel acceptable to CITY, indemnify and hold harmless the CITY OF GILROY, its officers, employees, agents and representatives from and against all suits, claims, demands, damages, costs, causes of action, losses, liabilities, expenses and fees, including without limitation reasonable attorneys’ fees, that may arise out of any violations of the Act by the CONTRACTOR, its subcontractors, or the officers, employees, agents or representatives of either.
C. Attorneys’ Fees
If any action at law or in equity, including an action for declaratory relief, is brought to enforce or interpret the provisions of this Agreement, the prevailing party will be entitled to reasonable attorneys’ fees, which may be set by the court in the same action or in a separate action brought for that purpose, in addition to any other relief to which that party may be entitled.
D. Captions
The captions and headings of the various sections, paragraphs and subparagraphs of the Agreement are for convenience only and shall not be considered nor referred to for resolving questions of interpretation.
E. Compliance with Laws
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and of all such orders and decrees of bodies or tribunals having any jurisdiction or authority over the same. Without limiting the foregoing, CONTRACTOR agrees to observe the provisions of the Municipal Code of the CITY OF GILROY, obligating every contractor or subcontractor under a contract or subcontract to the CITY OF GILROY for public works or for goods or services to refrain from discriminatory employment or subcontracting practices on the basis of the race, color, sex, religious creed, national origin, ancestry of any employee, applicant for employment, or any potential subcontractor.
F. Conflict of Interest
CONTRACTOR certifies that to the best of its knowledge, no CITY employee or office of any public agency interested in this Agreement has any pecuniary interest in the business of CONTRACTOR and that no person associated with CONTRACTOR has any interest that would constitute a conflict of interest in any manner or degree as to the execution or performance of this Agreement.
G. Entire Agreement
This Agreement supersedes any and all prior agreements, whether oral or written, between the parties hereto with respect to the rendering of services by CONTRACTOR for CITY and contains all the covenants and agreements between the parties with respect to the rendering of such services in any manner whatsoever. Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein, and that no other agreement, statement or promise not contained in this Agreement shall be valid or binding.
No other agreements or conversation with any officer, agent or employee of CITY prior to execution of this Agreement shall affect or modify any of the terms or obligations contained in any documents comprising this Agreement. Such other agreements or conversations shall be considered as unofficial information and in no way binding upon CITY.
H. Governing Law and Venue
This Agreement shall be governed by and construed in accordance with the laws of the State of California without regard to the conflict of laws provisions of any jurisdiction. The exclusive jurisdiction and venue with respect to any and all disputes arising hereunder shall be in state and federal courts located in Santa Clara County, California.
I. Notices
Any notice to be given hereunder by either party to the other may be effected either by personal delivery in writing or by mail, registered or certified, postage prepaid with return receipt requested.
Mailed notices shall be addressed to the parties at the addresses appearing in Exhibit “A”, Section V.H. but each party may change the address by written notice in accordance with this paragraph.
Notices delivered personally will be deemed delivered as of actual receipt; mailed notices will be deemed delivered as of three (3) days after mailing.
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J. Partial Invalidity
If any provision in this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions will nevertheless continue in full force without being impaired or invalidated in any way.
K. Time of the Essence
All dates and times referred to in this Agreement are of the essence.
L. Waiver
CONTRACTOR agrees that waiver by CITY of any one or more of the conditions of performance under this Agreement shall not be construed as waiver(s) of any other condition of performance under this Agreement.
Executed at Gilroy, California, on the date and year first above written.
CONTRACTOR: CITY:
California Highway Adoption Company CITY OF GILROY
By: By:
Name: Julie Redden Name: Matt Morley
Title: Account Manager/Partner Title: City Administrator Social Security or Taxpayer
Identification Number 86-0871091
Approved as to Form ATTEST:
City Attorney City Clerk
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EXHIBIT “A”
SPECIFIC PROVISIONS
I. PROJECT MANAGER
CONTRACTOR shall provide the services indicated on the attached Exhibit “B”, Scope of Services (“Services”). (All exhibits referenced are incorporated herein by reference.) To accomplish that end, CONTRACTOR agrees to assign Julie Redden, who will act in the capacity of Project Manager, and who will personally direct such Services.
Except as may be specified elsewhere in this Agreement, CONTRACTOR shall furnish all technical and professional services including labor, material, equipment, transportation, supervision and expertise to perform all operations necessary and required to complete the Services in accordance with the terms of this Agreement.
II. NOTICE TO PROCEED/COMPLETION OF SERVICE
A. NOTICE TO PROCEED
CONTRACTOR shall commence the Services upon delivery to CONTRACTOR of a written “Notice to Proceed”, which Notice to Proceed shall be in the form of a written communication from designated City contact person(s). Notice to Proceed may be in the form of e-mail, fax or letter authorizing commencement of the Services. For purposes of this Agreement, Deputy Director of Public Works shall be the designated City contact person(s). Notice to Proceed shall be deemed to have been delivered upon actual receipt by CONTRACTOR or if otherwise delivered as provided in the Section V.H. (“Notices”) of this Exhibit “A”.
B. COMPLETION OF SERVICES
When CITY determines that CONTRACTOR has completed all of the Services in accordance with the terms of this Agreement, CITY shall give CONTRACTOR written Notice of Final Acceptance, and CONTRACTOR shall not incur any further costs hereunder. CONTRACTOR may request this determination of completion when, in its opinion, it has completed all of the Services as required by the terms of this Agreement and, if so requested, CITY shall make this determination within two (2) weeks of such request, or if CITY determines that CONTRACTOR has not completed all of such Services as required by this Agreement, CITY shall so inform CONTRACTOR within this two (2) week period.
III. PROGRESS SCHEDULE
The schedule for performance and completion of the Services will be as set forth in the attached Exhibit “C”.
IV. PAYMENT OF FEES AND DIRECT EXPENSES
Payments shall be made to CONTRACTOR as provided for in Article 4 of this Agreement.
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Direct expenses are charges and fees not included in Exhibit “B”. CITY shall be obligated to pay only for those direct expenses which have been previously approved in writing by CITY.
CONTRACTOR shall obtain written approval from CITY prior to incurring or billing of direct expenses.
Copies of pertinent financial records, including invoices, will be included with the submission of billing(s) for all direct expenses.
V. OTHER PROVISIONS
A. STANDARD OF WORKMANSHIP
CONTRACTOR represents and warrants that it has the qualifications, skills and licenses necessary to perform the Services, and its duties and obligations, expressed and implied, contained herein, and CITY expressly relies upon CONTRACTOR’S representations and warranties regarding its skills, qualifications and licenses. CONTRACTOR shall perform such Services and duties in conformance to and consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California.
Any plans, designs, specifications, estimates, calculations, reports and other documents furnished under this Agreement shall be of a quality acceptable to CITY. The minimum criteria for acceptance shall be a product of neat appearance, well-organized, technically and grammatically correct, checked and having the maker and checker identified. The minimum standard of appearance, organization and content of the drawings shall be that used by CITY for similar purposes.
B. RESPONSIBILITY OF CONTRACTOR
CONTRACTOR shall be responsible for the professional quality, technical accuracy, and the coordination of the Services furnished by it under this Agreement. CONTRACTOR shall not be responsible for the accuracy of any project or technical information provided by the CITY. The CITY’S review, acceptance or payment for any of the Services shall not be construed to operate as a waiver of any rights under this Agreement or of any cause of action arising out of the performance of this Agreement, and CONTRACTOR shall be and remain liable to CITY in accordance with applicable law for all damages to CITY caused by CONTRACTOR’S negligent performance of any of the services furnished under this Agreement.
C. RIGHT OF CITY TO INSPECT RECORDS OF CONTRACTOR
CITY, through its authorized employees, representatives or agents, shall have the right, at any and all reasonable times, to audit the books and records (including, but not limited to, invoices, vouchers, canceled checks, time cards, etc.) of CONTRACTOR for the purpose of verifying any and all charges made by CONTRACTOR in connection with this Agreement. CONTRACTOR shall maintain for a minimum period of three (3) years (from the date of final payment to CONTRACTOR), or for any longer period required by law, sufficient books and records in accordance with standard California accounting practices to establish the correctness of all charges submitted to CITY by CONTRACTOR, all of which shall be made available to CITY at the CITY’s offices within five (5) business days after CITY’s request.
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D. CONFIDENTIALITY OF MATERIAL
All ideas, memoranda, specifications, plans, manufacturing procedures, data (including, but not limited to, computer data and source code), drawings, descriptions, documents, discussions or other information developed or received by or for CONTRACTOR and all other written and oral information developed or received by or for CONTRACTOR and all other written and oral information submitted to CONTRACTOR in connection with the performance of this Agreement shall be held confidential by CONTRACTOR and shall not, without the prior written consent of CITY, be used for any purposes other than the performance of the Services, nor be disclosed to an entity not connected with the performance of the such Services. Nothing furnished to CONTRACTOR which is otherwise known to CONTRACTOR or is or becomes generally known to the related industry (other than that which becomes generally known as the result of CONTRACTOR’S disclosure thereof) shall be deemed confidential. CONTRACTOR shall not use CITY’S name or insignia, or distribute publicity pertaining to the services rendered under this Agreement in any magazine, trade paper, newspaper or other medium without the express written consent of CITY.
E. NO PLEDGING OF CITY’S CREDIT.
Under no circumstances shall CONTRACTOR have the authority or power to pledge the credit of CITY or incur any obligation in the name of CITY.
F. OWNERSHIP OF MATERIAL.
All material including, but not limited to, computer information, data and source code, sketches, tracings, drawings, plans, diagrams, quantities, estimates, specifications, proposals, tests, maps, calculations, photographs, reports and other material developed, collected, prepared (or caused to be prepared) under this Agreement shall be the property of CITY, but CONTRACTOR may retain and use copies thereof subject to Section V.D of this Exhibit “A”.
CITY shall not be limited in any way in its use of said material at any time for any work, whether or not associated with the City project for which the Services are performed. However, CONTRACTOR shall not be responsible for, and City shall indemnify CONTRACTOR from, damages resulting from the use of said material for work other than PROJECT, including, but not limited to, the release of this material to third parties for work other than on PROJECT.
G. NO THIRD PARTY BENEFICIARY.
This Agreement shall not be construed or deemed to be an agreement for the benefit of any third party or parties, and no third party or parties shall have any claim or right of action hereunder for any cause whatsoever.
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H. NOTICES.
Notices are to be sent as follows:
CITY: Matt Jones
City of Gilroy
7351 Rosanna Street
Gilroy, CA 95020
CONTRACTOR: Julie Redden
California Highway Adoption Company
4050 Alvis Court
Rocklin, CA 95677
I. FEDERAL FUNDING REQUIREMENTS.
If the box to the left of this sentence is checked, this Agreement involves federal funding and the requirements of this Section V.I. apply.
If the box to the left of this sentence is checked, this Agreement does not involve federal funding and the requirements of this Section V.I. do not apply.
1. DBE Program
CONTRACTOR shall comply with the requirements of Title 49, Part 26, Code of Federal Regulations (49 CFR 26) and the City-adopted Disadvantaged Business Enterprise programs.
2. Cost Principles
Federal Acquisition Regulations in Title 48, CFR 31, shall be used to determine the allowable cost for individual items.
3. Covenant against Contingent Fees
The CONTRACTOR warrants that he/she has not employed or retained any company or person, other than a bona fide employee working for the CONTRACTOR, to solicit or secure this Agreement, and that he/she has not paid or agreed to pay any company or person, other than a bona fide employee, any fee, commission, percentage, brokerage fee, gift or any other consideration, contingent upon or resulting from the award or formation of this Agreement. For breach or violation of this warranty, the Local Agency shall have the right to annul this Agreement without liability or, at its discretion, to deduct from the agreement price or consideration, or otherwise recover, the full amount of such fee, commission, percentage, brokerage fee, gift or contingent fee.
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EXHIBIT “B”
SCOPE OF SERVICES
Contractor Duties and Responsibilities
A. Cleanup duties shall include surveying sites, collecting debris, dismantling temporary structures, removal of trash, removal of human waste, and state-approved handling and removal of all material. Disposal shall be at a site permitted to accept such materials and shall be in coordination with Recology.
B. Contractor shall supply all labor, material, tools, protective clothing and gear, and equipment that is required or needed to perform the work to handle, remove, transport, and dispose of the waste materials and leave a clean site, per CAL-OSHA.
C. Contractor shall provide all supervision and management of crews and subcontractors and ensure all necessary safety procedures are followed. This individual will serve as the City’s contact.
D. Contractor shall photograph and document the condition of the site prior to work and after work is completed and provide an electronic copy of each photograph to the City.
E. Contractor shall notify the City’s designated representative in the event that the site becomes occupied again prior to or during the work, or if an adjacent homeless encampment is discovered in the general area during a project to obtain authorization prior to proceeding with any additional work that was not identified in the original work order scope.
F. Contractor shall follow best practices work procedures to safely manage any hazardous materials found on the jobsite, including urine, feces, solid personal hygiene items, syringes, and other materials that could pose a health threat.
G. Contractor shall immediately notify the Gilroy Police Department upon discovery of any projectile weapon, including but not limited to firearms, crossbows, or BB guns, as well as any suspected contraband, evidence of criminal activity, or other items deemed suspicious in nature.
H. Contractor shall properly handle and dispose of solid waste and hazardous waste in accordance with all applicable laws.
I. The contractor shall apply Best Management Practices (BMPs) for all pollution prevention of the discharge of human waste and other biohazards, cleaning agents, waste, trash, debris, and other pollutants to the storm drain and receiving waters.
J. All material, parts, equipment, and chemicals used or furnished pursuant to the specifications of this contract shall comply with the laws and regulations of the City of Gilroy, the State of California, and OSHA.
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K. The contractor will be responsible for all damages to the City’s facilities, their contents, or other City-owned improvements, caused by the contractor, its staff, or its sub-contractors during the performance of their duties. The contractor shall protect all furnishings and improvements from damage by its operations. All damage shall be repaired or replaced, at the option of the City, at the contractor’s expense within a reasonable time after notification of such damage. Repairs and/or replacements shall be equal to the original in all aspects.
L. Contractor shall perform work in a timely and efficient manner and always conduct themselves in a courteous and business-like fashion.
M. Safety and appropriate training/licensing are critical requirements for the selected Contractor.
At no time is the Contractor expected to interact with the homeless residents or put their employees at risk.
N. Contractor shall comply with all safety rules, protocols, and licensing requirements mandated by the City, Santa Clara County, and the State of California.
O. Contractor shall follow California Department of Industrial Relations’ Bloodborne Pathogen Standard §5193. Additionally, employees must be trained with precautions regarding West Nile Virus, hantavirus, histoplasmosis and other possible environmental threats posed from cleanup activities.
P. Employees must have work procedures to be able to safely manage urine, feces, soiled personal hygiene items, syringes, and other materials which could pose a health threat. Wearing Personal Protective Equipment and following other protocols established for this situation must be followed.
The Contractor will dispose of this waste material and syringes by appropriate means in accordance with local, regional, state, and federal laws.
Q. Contractor shall notify the City when the work is complete, and at the time of invoice submittal, shall provide a report for each site cleared which will include:
a. Date(s) of service.
b. Approximate location (i.e. 6th street bridge, 1234 7th street) c. Methods used to clear the site.
d. Staffing levels used.
e. Total hours on site.
f. Weight of debris removed.
g. Provide general observations of the site, and the work performed, including a qualitative assessment and approximate quantities of materials removed (e.g., tires, mattresses, debris, hazardous materials).
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h. Notations of any issues encountered in conducting the work, whether internally or externally caused.
i. Before and after pictures
City Responsibilities
The City shall coordinate outreach and site preparation efforts to ensure that cleanup activities are conducted in areas that are clear and ready for service.
The City shall coordinate with the Gilroy Police Department to provide support at sensitive locations, as determined necessary, during cleanup activities.
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EXHIBIT “C”
MILESTONE SCHEDULE
The generation and issuing of work orders under this contract will require the following milestone schedule:
1. The City will notify the Contractor of a potential clean up location.
2. The Contractor is to supply a cost estimate and proposed schedule for the work order within 48 hours.
3. The City will then issue a work order to Contractor within 24 hours after receiving the estimate and schedule, unless there are questions or concerns regarding the estimate or schedule.
4. Contractor will then mobilize within 72 hours after receiving authorization to proceed from the City.
There are no overarching milestones beyond the response timeframes noted above. Each work order will establish its own milestones for the specific work order, as will be discussed in assessing sites and planning the work order(s). All services within this agreement will be conducted on an on-call basis whenever services are requested by the CITY.
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EXHIBIT “D”
PAYMENT SCHEDULE
1. Payments shall be due net 30 days after invoicing from Contractor. Specific payment terms may be established each work order issued.
2. The contract payments will be based on time and materials. Documentation of employee hours, equipment and material costs, and disposal costs shall be provided by the Contractor to the City.
3.Contractor shall notify the City when the work is complete, and at the time of invoice submittal, shall provide a report for each site, as referenced in Exhibit "B" Contractor Duties and Responsibilities section Q.
4. Rates shall be set for the duration of this contract per the rate sheets from the Contractor attached.
5. A proposed cost escalation of 2% per year for up to three years will be applied should the extension options be exercised.”
6. If disposal costs increase those raised feeds will be passed onto the City of Gilroy for reimbursement.
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AGREEMENT FOR SERVICES
(For contracts over $5,000 – NON-DESIGN, NON-ENGINEERING TYPE CONTRACTOR) This AGREEMENT made this 4th day of May, 2026, between:
CITY: City of Gilroy, having a principal place of business at 7351 Rosanna Street, Gilroy, California
and CONTRACTOR: Foege Schumann Global Disaster Solutions LLC d.b.a. F. S. Global Solutions , having a principal place of business at 99 Sixth Street Santa Rosa, CA 95401.
ARTICLE 1. TERM OF AGREEMENT
This Agreement will become effective on May 4, 2026 and will continue in effect through June 30, 2029, with an option to extend one year at a time for a period of up to two additional years at the City’s sole option to be exercised by written notice to be given by City not less than thirty (30) days and not more than sixty (60) days prior to June 30, 2029, unless terminated in accordance with the provisions of Article 7 of this Agreement.
Any lapse in insurance coverage as required by Article 5, Section D of this Agreement shall terminate this Agreement regardless of any other provision stated herein. ______ Initial
ARTICLE 2. INDEPENDENT CONTRACTOR STATUS
It is the express intention of the parties that CONTRACTOR is an independent contractor and not an employee, agent, joint venturer or partner of CITY. Nothing in this Agreement shall be interpreted or construed as creating or establishing the relationship of employer and employee between CITY and CONTRACTOR or any employee or agent of CONTRACTOR. Both parties acknowledge that CONTRACTOR is not an employee for state or federal tax purposes.
CONTRACTOR shall not be entitled to any of the rights or benefits afforded to CITY’S employees, including, without limitation, disability or unemployment insurance, workers’ compensation, medical insurance, sick leave, retirement benefits or any other employment benefits. CONTRACTOR shall retain the right to perform services for others during the term of this Agreement.
ARTICLE 3. SERVICES TO BE PERFORMED BY CONTRACTOR
A. Specific Services
CONTRACTOR agrees to: Perform the services as outlined in Exhibit “A” (“Specific Provisions”) and Exhibit “B” (“Scope of Services”), within the time periods described in Exhibit “C” (“Milestone Schedule”).
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B. Method of Performing Services
CONTRACTOR shall determine the method, details and means of performing the above-described services. CITY shall have no right to, and shall not, control the manner or determine the method of accomplishing CONTRACTOR’S services.
C. Employment of Assistants
CONTRACTOR may, at the CONTRACTOR’S own expense, employ such assistants as CONTRACTOR deems necessary to perform the services required of CONTRACTOR by this Agreement, subject to the prohibition against assignment and subcontracting contained in Article 5 below. CITY may not control, direct, or supervise CONTRACTOR’S assistants in the performance of those services. CONTRACTOR assumes full and sole responsibility for the payment of all compensation and expenses of these assistants and for all state and federal income tax, unemployment insurance, Social Security, disability insurance and other applicable withholding.
D. Place of Work
CONTRACTOR shall perform the services required by this Agreement at any place or location and at such times as CONTRACTOR shall determine is necessary to properly and timely perform CONTRACTOR’S services.
ARTICLE 4. COMPENSATION
A. Consideration
In consideration for the services to be performed by CONTRACTOR, CITY agrees to pay CONTRACTOR the amounts set forth in Exhibit “D” (“Payment Schedule”). In no event however shall the total compensation paid to CONTRACTOR exceed $750,000.00.
B. Invoices
CONTRACTOR shall submit invoices for all services rendered.
C. Payment
Payment shall be due according to the payment schedule set forth in Exhibit “D”. No payment will be made unless CONTRACTOR has first provided City with a written receipt of invoice describing the work performed and any approved direct expenses (as provided for in Exhibit “A”, Section IV) incurred during the preceding period. If CITY objects to all or any portion of any invoice, CITY shall notify CONTRACTOR of the objection within thirty (30) days from receipt of the invoice, give reasons for the objection, and pay that portion of the invoice not in dispute. It shall not constitute a default or breach of this Agreement for CITY not to pay any invoiced amounts to which it has objected until the objection has been resolved by mutual agreement of the parties.
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D. Expenses
CONTRACTOR shall be responsible for all costs and expenses incident to the performance of services for CITY, including but not limited to, all costs of equipment used or provided by CONTRACTOR, all fees, fines, licenses, bonds or taxes required of or imposed against CONTRACTOR and all other of CONTRACTOR’S costs of doing business. CITY shall not be responsible for any expenses incurred by CONTRACTOR in performing services for CITY, except for those expenses constituting “direct expenses” referenced on Exhibit “A.” ARTICLE 5. OBLIGATIONS OF CONTRACTOR
A. Tools and Instrumentalities
CONTRACTOR shall supply all tools and instrumentalities required to perform the services under this Agreement at its sole cost and expense. CONTRACTOR is not required to purchase or rent any tools, equipment or services from CITY.
B. Workers’ Compensation
CONTRACTOR agrees to provide workers’ compensation insurance for CONTRACTOR’S employees and agents and agrees to hold harmless, defend with counsel acceptable to CITY and indemnify CITY, its officers, representatives, agents and employees from and against any and all claims, suits, damages, costs, fees, demands, causes of action, losses, liabilities and expenses, including without limitation reasonable attorneys’ fees, arising out of any injury, disability, or death of any of CONTRACTOR’S employees.
C. Indemnification of Liability, Duty to Defend
As to all liability, to the fullest extent permitted by law, CONTRACTOR shall defend, through counsel approved by CITY (which approval shall not be unreasonably withheld), indemnify and hold harmless CITY, its officers, representatives, agents and employees against any and all suits, damages, costs, fees, claims, demands, causes of action, losses, liabilities and expenses, including without limitation attorneys’ fees, arising or resulting directly or indirectly from any act or omission of CONTRACTOR or CONTRACTOR’S assistants, employees or agents, including all claims relating to the injury or death of any person or damage to any property.
D. Insurance
In addition to any other obligations under this Agreement, CONTRACTOR shall, at no cost to CITY, obtain and maintain throughout the term of this Agreement: (a) Commercial Liability Insurance on a per occurrence basis, including coverage for owned and non-owned automobiles, with a minimum combined single limit coverage of $1,000,000 per occurrence for all damages due to bodily injury, sickness or disease, or death to any person, and damage to property, including the loss of use thereof. As a condition precedent to CITY’S obligations under this Agreement, CONTRACTOR shall furnish written evidence of such coverage (naming CITY, its officers and Docusign Envelope ID: 39E34647-83D5-8A18-82C8-675D15C3AAA9
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employees as additional insureds on the Comprehensive Liability insurance policy referred to in (a) immediately above via a specific endorsement) and requiring thirty (30) days written notice of policy lapse or cancellation, or of a material change in policy terms.
E. Assignment
Notwithstanding any other provision of this Agreement, neither this Agreement nor any duties or obligations of CONTRACTOR under this Agreement may be assigned or subcontracted by CONTRACTOR without the prior written consent of CITY, which CITY may withhold in its sole and absolute discretion.
F. State and Federal Taxes
As CONTRACTOR is not CITY’S employee, CONTRACTOR shall be responsible for paying all required state and federal taxes. Without limiting the foregoing, CONTRACTOR acknowledges and agrees that:
• CITY will not withhold FICA (Social Security) from CONTRACTOR’S payments;
• CITY will not make state or federal unemployment insurance contributions on CONTRACTOR’S behalf;
• CITY will not withhold state or federal income tax from payment to CONTRACTOR;
• CITY will not make disability insurance contributions on behalf of CONTRACTOR;
• CITY will not obtain workers’ compensation insurance on behalf of CONTRACTOR.
ARTICLE 6. OBLIGATIONS OF CITY
A. Cooperation of City
CITY agrees to respond to all reasonable requests of CONTRACTOR and provide access, at reasonable times following receipt by CITY of reasonable notice, to all documents reasonably necessary to the performance of CONTRACTOR’S duties under this Agreement.
B. Assignment
CITY may assign this Agreement or any duties or obligations thereunder to a successor governmental entity without the consent of CONTRACTOR. Such assignment shall not release CONTRACTOR from any of CONTRACTOR’S duties or obligations under this Agreement.
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ARTICLE 7. TERMINATION OF AGREEMENT
A. Sale of CONTRACTOR’s Business/ Death of CONTRACTOR.
CONTRACTOR shall notify CITY of the proposed sale of CONTRACTOR’s business no later than thirty (30) days prior to any such sale. CITY shall have the option of terminating this Agreement within thirty (30) days after receiving such notice of sale. Any such CITY termination pursuant to this Article 7.A shall be in writing and sent to the address for notices to CONTRACTOR set forth in Exhibit A, Subsection V.H., no later than thirty (30) days after CITY’ receipt of such notice of sale.
If CONTRACTOR is an individual, this Agreement shall be deemed automatically terminated upon death of CONTRACTOR.
B. Termination by City for Default of CONTRACTOR
Should CONTRACTOR default in the performance of this Agreement or materially breach any of its provisions, CITY, at CITY’S option, may terminate this Agreement by giving written notification to CONTRACTOR. For the purposes of this section, material breach of this Agreement shall include, but not be limited to the following:
1. CONTRACTOR’S failure to professionally and/or timely perform any of the services contemplated by this Agreement.
2. CONTRACTOR’S breach of any of its representations, warranties or covenants contained in this Agreement.
CONTRACTOR shall be entitled to payment only for work completed in accordance with the terms of this Agreement through the date of the termination notice, as reasonably determined by CITY, provided that such payment shall not exceed the amounts set forth in this Agreement for the tasks described on Exhibit C” which have been fully, competently and timely rendered by CONTRACTOR. Notwithstanding the foregoing, if CITY terminates this Agreement due to CONTRACTOR’S default in the performance of this Agreement or material breach by CONTRACTOR of any of its provisions, then in addition to any other rights and remedies CITY may have, CONTRACTOR shall reimburse CITY, within ten (10) days after demand, for any and all costs and expenses incurred by CITY in order to complete the tasks constituting the scope of work as described in this Agreement, to the extent such costs and expenses exceed the amounts CITY would have been obligated to pay CONTRACTOR for the performance of that task pursuant to this Agreement.
C. Termination for Failure to Make Agreed-Upon Payments Should CITY fail to pay CONTRACTOR all or any part of the compensation set forth in Article 4 of this Agreement on the date due, then if and only if such nonpayment constitutes a default under this Agreement, CONTRACTOR, at the CONTRACTOR’S option, may terminate this Agreement if such default is not remedied by CITY within thirty (30) days after demand for such payment is given by CONTRACTOR to CITY.
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D. Transition after Termination
Upon termination, CONTRACTOR shall immediately stop work, unless cessation could potentially cause any damage or harm to person or property, in which case CONTRACTOR shall cease such work as soon as it is safe to do so. CONTRACTOR shall incur no further expenses in connection with this Agreement. CONTRACTOR shall promptly deliver to CITY all work done toward completion of the services required hereunder, and shall act in such a manner as to facilitate any the assumption of CONTRACTOR’s duties by any new CONTRACTOR hired by the CITY to complete such services.
ARTICLE 8. GENERAL PROVISIONS
A. Amendment & Modification
No amendments, modifications, alterations or changes to the terms of this Agreement shall be effective unless and until made in a writing signed by both parties hereto.
B. Americans with Disabilities Act of 1990
Throughout the term of this Agreement, the CONTRACTOR shall comply fully with all applicable provisions of the Americans with Disabilities Act of 1990 (“the Act”) in its current form and as it may be amended from time to time. CONTRACTOR shall also require such compliance of all subcontractors performing work under this Agreement, subject to the prohibition against assignment and subcontracting contained in Article 5 above. The CONTRACTOR shall defend with counsel acceptable to CITY, indemnify and hold harmless the CITY OF GILROY, its officers, employees, agents and representatives from and against all suits, claims, demands, damages, costs, causes of action, losses, liabilities, expenses and fees, including without limitation reasonable attorneys’ fees, that may arise out of any violations of the Act by the CONTRACTOR, its subcontractors, or the officers, employees, agents or representatives of either.
C. Attorneys’ Fees
If any action at law or in equity, including an action for declaratory relief, is brought to enforce or interpret the provisions of this Agreement, the prevailing party will be entitled to reasonable attorneys’ fees, which may be set by the court in the same action or in a separate action brought for that purpose, in addition to any other relief to which that party may be entitled.
D. Captions
The captions and headings of the various sections, paragraphs and subparagraphs of the Agreement are for convenience only and shall not be considered nor referred to for resolving questions of interpretation.
E. Compliance with Laws
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and of all such orders and decrees of bodies or tribunals having any jurisdiction or authority over the same. Without limiting the foregoing, CONTRACTOR agrees to observe the provisions of the Municipal Code of the CITY OF GILROY, obligating every contractor or subcontractor under a contract or subcontract to the CITY OF GILROY for public works or for goods or services to refrain from discriminatory employment or subcontracting practices on the basis of the race, color, sex, religious creed, national origin, ancestry of any employee, applicant for employment, or any potential subcontractor.
F. Conflict of Interest
CONTRACTOR certifies that to the best of its knowledge, no CITY employee or office of any public agency interested in this Agreement has any pecuniary interest in the business of CONTRACTOR and that no person associated with CONTRACTOR has any interest that would constitute a conflict of interest in any manner or degree as to the execution or performance of this Agreement.
G. Entire Agreement
This Agreement supersedes any and all prior agreements, whether oral or written, between the parties hereto with respect to the rendering of services by CONTRACTOR for CITY and contains all the covenants and agreements between the parties with respect to the rendering of such services in any manner whatsoever. Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein, and that no other agreement, statement or promise not contained in this Agreement shall be valid or binding.
No other agreements or conversation with any officer, agent or employee of CITY prior to execution of this Agreement shall affect or modify any of the terms or obligations contained in any documents comprising this Agreement. Such other agreements or conversations shall be considered as unofficial information and in no way binding upon CITY.
H. Governing Law and Venue
This Agreement shall be governed by and construed in accordance with the laws of the State of California without regard to the conflict of laws provisions of any jurisdiction. The exclusive jurisdiction and venue with respect to any and all disputes arising hereunder shall be in state and federal courts located in Santa Clara County, California.
I. Notices
Any notice to be given hereunder by either party to the other may be effected either by personal delivery in writing or by mail, registered or certified, postage prepaid with return receipt requested.
Mailed notices shall be addressed to the parties at the addresses appearing in Exhibit “A”, Section V.H. but each party may change the address by written notice in accordance with this paragraph.
Notices delivered personally will be deemed delivered as of actual receipt; mailed notices will be deemed delivered as of three (3) days after mailing.
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J. Partial Invalidity
If any provision in this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions will nevertheless continue in full force without being impaired or invalidated in any way.
K. Time of the Essence
All dates and times referred to in this Agreement are of the essence.
L. Waiver
CONTRACTOR agrees that waiver by CITY of any one or more of the conditions of performance under this Agreement shall not be construed as waiver(s) of any other condition of performance under this Agreement.
Executed at Gilroy, California, on the date and year first above written.
CONTRACTOR: CITY:
Foege Schumann Global Disaster
Solutions LLC
CITY OF GILROY
By: By:
Name: Kadyn Schumann Name: Matt Morley
Title: Chief Executive Officer Title: City Administrator Social Security or Taxpayer
Identification Number 85-1918839
Approved as to Form ATTEST:
City Attorney City Clerk
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EXHIBIT “A”
SPECIFIC PROVISIONS
I. PROJECT MANAGER
CONTRACTOR shall provide the services indicated on the attached Exhibit “B”, Scope of Services (“Services”). (All exhibits referenced are incorporated herein by reference.) To accomplish that end, CONTRACTOR agrees to assign Max Morell-Foege, who will act in the capacity of Project Manager, and who will personally direct such Services.
Except as may be specified elsewhere in this Agreement, CONTRACTOR shall furnish all technical and professional services including labor, material, equipment, transportation, supervision and expertise to perform all operations necessary and required to complete the Services in accordance with the terms of this Agreement.
II. NOTICE TO PROCEED/COMPLETION OF SERVICE
A. NOTICE TO PROCEED
CONTRACTOR shall commence the Services upon delivery to CONTRACTOR of a written “Notice to Proceed”, which Notice to Proceed shall be in the form of a written communication from designated City contact person(s). Notice to Proceed may be in the form of e-mail, fax or letter authorizing commencement of the Services. For purposes of this Agreement, Deputy Director of Public Works shall be the designated City contact person(s). Notice to Proceed shall be deemed to have been delivered upon actual receipt by CONTRACTOR or if otherwise delivered as provided in the Section V.H. (“Notices”) of this Exhibit “A”.
B. COMPLETION OF SERVICES
When CITY determines that CONTRACTOR has completed all of the Services in accordance with the terms of this Agreement, CITY shall give CONTRACTOR written Notice of Final Acceptance, and CONTRACTOR shall not incur any further costs hereunder. CONTRACTOR may request this determination of completion when, in its opinion, it has completed all of the Services as required by the terms of this Agreement and, if so requested, CITY shall make this determination within two (2) weeks of such request, or if CITY determines that CONTRACTOR has not completed all of such Services as required by this Agreement, CITY shall so inform CONTRACTOR within this two (2) week period.
III. PROGRESS SCHEDULE
The schedule for performance and completion of the Services will be as set forth in the attached Exhibit “C”.
IV. PAYMENT OF FEES AND DIRECT EXPENSES
Payments shall be made to CONTRACTOR as provided for in Article 4 of this Agreement.
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Direct expenses are charges and fees not included in Exhibit “B”. CITY shall be obligated to pay only for those direct expenses which have been previously approved in writing by CITY.
CONTRACTOR shall obtain written approval from CITY prior to incurring or billing of direct expenses.
Copies of pertinent financial records, including invoices, will be included with the submission of billing(s) for all direct expenses.
V. OTHER PROVISIONS
A. STANDARD OF WORKMANSHIP
CONTRACTOR represents and warrants that it has the qualifications, skills and licenses necessary to perform the Services, and its duties and obligations, expressed and implied, contained herein, and CITY expressly relies upon CONTRACTOR’S representations and warranties regarding its skills, qualifications and licenses. CONTRACTOR shall perform such Services and duties in conformance to and consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California.
Any plans, designs, specifications, estimates, calculations, reports and other documents furnished under this Agreement shall be of a quality acceptable to CITY. The minimum criteria for acceptance shall be a product of neat appearance, well-organized, technically and grammatically correct, checked and having the maker and checker identified. The minimum standard of appearance, organization and content of the drawings shall be that used by CITY for similar purposes.
B. RESPONSIBILITY OF CONTRACTOR
CONTRACTOR shall be responsible for the professional quality, technical accuracy, and the coordination of the Services furnished by it under this Agreement. CONTRACTOR shall not be responsible for the accuracy of any project or technical information provided by the CITY. The CITY’S review, acceptance or payment for any of the Services shall not be construed to operate as a waiver of any rights under this Agreement or of any cause of action arising out of the performance of this Agreement, and CONTRACTOR shall be and remain liable to CITY in accordance with applicable law for all damages to CITY caused by CONTRACTOR’S negligent performance of any of the services furnished under this Agreement.
C. RIGHT OF CITY TO INSPECT RECORDS OF CONTRACTOR
CITY, through its authorized employees, representatives or agents, shall have the right, at any and all reasonable times, to audit the books and records (including, but not limited to, invoices, vouchers, canceled checks, time cards, etc.) of CONTRACTOR for the purpose of verifying any and all charges made by CONTRACTOR in connection with this Agreement. CONTRACTOR shall maintain for a minimum period of three (3) years (from the date of final payment to CONTRACTOR), or for any longer period required by law, sufficient books and records in accordance with standard California accounting practices to establish the correctness of all charges submitted to CITY by CONTRACTOR, all of which shall be made available to CITY at the CITY’s offices within five (5) business days after CITY’s request.
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D. CONFIDENTIALITY OF MATERIAL
All ideas, memoranda, specifications, plans, manufacturing procedures, data (including, but not limited to, computer data and source code), drawings, descriptions, documents, discussions or other information developed or received by or for CONTRACTOR and all other written and oral information developed or received by or for CONTRACTOR and all other written and oral information submitted to CONTRACTOR in connection with the performance of this Agreement shall be held confidential by CONTRACTOR and shall not, without the prior written consent of CITY, be used for any purposes other than the performance of the Services, nor be disclosed to an entity not connected with the performance of the such Services. Nothing furnished to CONTRACTOR which is otherwise known to CONTRACTOR or is or becomes generally known to the related industry (other than that which becomes generally known as the result of CONTRACTOR’S disclosure thereof) shall be deemed confidential. CONTRACTOR shall not use CITY’S name or insignia, or distribute publicity pertaining to the services rendered under this Agreement in any magazine, trade paper, newspaper or other medium without the express written consent of CITY.
E. NO PLEDGING OF CITY’S CREDIT.
Under no circumstances shall CONTRACTOR have the authority or power to pledge the credit of CITY or incur any obligation in the name of CITY.
F. OWNERSHIP OF MATERIAL.
All material including, but not limited to, computer information, data and source code, sketches, tracings, drawings, plans, diagrams, quantities, estimates, specifications, proposals, tests, maps, calculations, photographs, reports and other material developed, collected, prepared (or caused to be prepared) under this Agreement shall be the property of CITY, but CONTRACTOR may retain and use copies thereof subject to Section V.D of this Exhibit “A”.
CITY shall not be limited in any way in its use of said material at any time for any work, whether or not associated with the City project for which the Services are performed. However, CONTRACTOR shall not be responsible for, and City shall indemnify CONTRACTOR from, damages resulting from the use of said material for work other than PROJECT, including, but not limited to, the release of this material to third parties for work other than on PROJECT.
G. NO THIRD PARTY BENEFICIARY.
This Agreement shall not be construed or deemed to be an agreement for the benefit of any third party or parties, and no third party or parties shall have any claim or right of action hereunder for any cause whatsoever.
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H. NOTICES.
Notices are to be sent as follows:
CITY: Matt Jones
City of Gilroy
7351 Rosanna Street
Gilroy, CA 95020
CONTRACTOR: Kadyn Schumann
Foege Schumann Global Disaster Solutions LLC
99 Sixth Street
Santa Rosa, CA 95401
I. FEDERAL FUNDING REQUIREMENTS.
If the box to the left of this sentence is checked, this Agreement involves federal funding and the requirements of this Section V.I. apply.
If the box to the left of this sentence is checked, this Agreement does not involve federal funding and the requirements of this Section V.I. do not apply.
1. DBE Program
CONTRACTOR shall comply with the requirements of Title 49, Part 26, Code of Federal Regulations (49 CFR 26) and the City-adopted Disadvantaged Business Enterprise programs.
2. Cost Principles
Federal Acquisition Regulations in Title 48, CFR 31, shall be used to determine the allowable cost for individual items.
3. Covenant against Contingent Fees
The CONTRACTOR warrants that he/she has not employed or retained any company or person, other than a bona fide employee working for the CONTRACTOR, to solicit or secure this Agreement, and that he/she has not paid or agreed to pay any company or person, other than a bona fide employee, any fee, commission, percentage, brokerage fee, gift or any other consideration, contingent upon or resulting from the award or formation of this Agreement. For breach or violation of this warranty, the Local Agency shall have the right to annul this Agreement without liability or, at its discretion, to deduct from the agreement price or consideration, or otherwise recover, the full amount of such fee, commission, percentage, brokerage fee, gift or contingent fee.
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EXHIBIT “B”
SCOPE OF SERVICES
Contractor Duties and Responsibilities
A. Cleanup duties shall include surveying sites, collecting debris, dismantling temporary structures, removal of trash, removal of human waste, and state-approved handling and removal of all material. Disposal shall be at a site permitted to accept such materials and shall be in coordination with Recology.
B. Contractor shall supply all labor, material, tools, protective clothing and gear, and equipment that is required or needed to perform the work to handle, remove, transport, and dispose of the waste materials and leave a clean site, per CAL-OSHA.
C. Contractor shall provide all supervision and management of crews and subcontractors and ensure all necessary safety procedures are followed. This individual will serve as the City’s contact.
D. Contractor shall photograph and document the condition of the site prior to work and after work is completed and provide an electronic copy of each photograph to the City.
E. Contractor shall notify the City’s designated representative in the event that the site becomes occupied again prior to or during the work, or if an adjacent homeless encampment is discovered in the general area during a project to obtain authorization prior to proceeding with any additional work that was not identified in the original work order scope.
F. Contractor shall follow best practices work procedures to safely manage any hazardous materials found on the jobsite, including urine, feces, solid personal hygiene items, syringes, and other materials that could pose a health threat.
G. Contractor shall immediately contact the Gilroy Police Department if a weapon, illegal contraband, or evidence of criminal activity is found.
H. Contractor shall properly handle and dispose of solid waste and hazardous waste in accordance with all applicable laws.
I. The contractor shall apply Best Management Practices (BMPs) for all pollution prevention of the discharge of human waste and other biohazards, cleaning agents, waste, trash, debris, and other pollutants to the storm drain and receiving waters.
J. All material, parts, equipment, and chemicals used or furnished pursuant to the specifications of this contract shall comply with the laws and regulations of the City of Gilroy, the State of California, and OSHA.
K. The contractor will be responsible for all damages to the City’s facilities, their contents, or other City-owned improvements, caused by the contractor, its staff, or its sub-contractors during the Docusign Envelope ID: 39E34647-83D5-8A18-82C8-675D15C3AAA9
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performance of their duties. The contractor shall protect all furnishings and improvements from damage by its operations. All damage shall be repaired or replaced, at the option of the City, at the contractor’s expense within a reasonable time after notification of such damage. Repairs and/or replacements shall be equal to the original in all aspects.
L. Contractor shall perform work in a timely and efficient manner and always conduct themselves in a courteous and business-like fashion.
M. Safety and appropriate training/licensing are critical requirements for the selected Contractor.
At no time is the Contractor expected to interact with the homeless residents or put their employees at risk.
N. Contractor shall comply with all safety rules, protocols, and licensing requirements mandated by the City, Santa Clara County, and the State of California.
O. Contractor shall follow California Department of Industrial Relations’ Bloodborne Pathogen Standard §5193. Additionally, employees must be trained with precautions regarding West Nile Virus, hantavirus, histoplasmosis and other possible environmental threats posed from cleanup activities.
P. Employees must have work procedures to be able to safely manage urine, feces, soiled personal hygiene items, syringes, and other materials which could pose a health threat. Wearing Personal Protective Equipment and following other protocols established for this situation must be followed.
The Contractor will dispose of this waste material and syringes by appropriate means in accordance with local, regional, state, and federal laws.
Q. Contractor shall notify the City when the work is complete, and at the time of invoice submittal, shall provide a report for each site cleared which will include:
a. Date(s) of service.
b. Approximate location (i.e. 6th street bridge, 1234 7th street) c. Methods used to clear the site.
d. Staffing levels used.
e. Total hours on site.
f. Weight of debris removed.
g. Provide general observations of the site, and the work performed, including a qualitative assessment and approximate quantities of materials removed (e.g., tires, mattresses, debris, hazardous materials).
h. Notations of any issues encountered in conducting the work, whether internally or externally caused.
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i. Before and after pictures
City Responsibilities
The City shall coordinate outreach and site preparation efforts to ensure that cleanup activities are conducted in areas that are clear and ready for service.
The City shall coordinate with the Gilroy Police Department to provide support at sensitive locations, as determined necessary, during cleanup activities.
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EXHIBIT “C”
MILESTONE SCHEDULE
The generation and issuing of work orders under this contract will require the following milestone schedule:
1. The City will notify the Contractor of a potential clean up location.
2. The Contractor is to supply a cost estimate and proposed schedule for the work order within 48 hours.
3. The City will then issue a work order to Contractor within 24 hours after receiving the estimate and schedule, unless there are questions or concerns regarding the estimate or schedule.
4. Contractor will then mobilize within 72 hours after receiving authorization to proceed from the City.
There are no overarching milestones beyond the response timeframes noted above. Each work order will establish its own milestones for the specific work order, as will be discussed in assessing sites and planning the work order(s). All services within this agreement will be conducted on an on-call basis whenever services are requested by the CITY.
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EXHIBIT “D”
PAYMENT SCHEDULE
1. Payments shall be due net 30 days after invoicing from Contractor. Specific payment terms may be established each work order issued.
2. The contract payments will be based on time and materials. Documentation of employee hours, equipment and material costs, and disposal costs shall be provided by the Contractor to the City.
3.Contractor shall notify the City when the work is complete, and at the time of invoice submittal, shall provide a report for each site, as referenced in Exhibit "B" Contractor Duties and Responsibilities section Q.
4. Rates shall be set for the duration of this contract per the rate sheets from the Contractor attached.
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8.1. City of Gilroy
STAFF REPORT
Agenda Item Title: Conduct a Public Hearing to Approve Community Development Block Grant Citizen Participation Plan and
Program Year 2026-2027 Annual Action Plan including
Funding Allocations
Meeting Date: May 4, 2026
From: Matt Morley, City Administrator
Department: Community Development
Submitted by: Sharon Goei, Community Development Director Prepared by: Sharon Goei, Community Development Director Sandra Nava, Housing and Community Services Coordinator STRATEGIC PLAN GOALS: Promote Safe and Affordable Housing for All
RECOMMENDATION
1. Approve the Community Development Block Grant (CDBG) Citizen Participation Plan and Program Year 2026-2027 Annual Action Plan including funding allocations.
2. Direct the Community Development Director, or designee, to submit the Citizen Participation Plan and Annual Action Plan to the U.S. Department of Housing and Urban Development (HUD), and further authorize the Community Development Director, or designee, to make any changes to the Citizen Participation Plan and Annual Action Plan as needed to comply with CDBG submission guidelines.
3. Adopt a resolution amending the Fiscal Year 2026-2027 budget within the CDBG Fund (245).
EXECUTIVE SUMMARY
On April 6, 2026, the City Council conducted a public meeting to receive comments on the draft Citizen Participation Plan (CPP), which describes how the City’s CDBG program involves the public in decisions about how the funds are used. The CPP is
8.1. being updated to improve clarity, organization, and readability as part of a broader document clean-up effort. The City Council also received comments and provided direction on the draft Program Year (PY) 2026-2027 Annual Action Plan (AAP) including funding allocations.
For PY 2026-2027, the City has been allocated $362,315 in CDBG entitlement funding from HUD. The City updated its prior years’ resources to $22,117.75, for a total of $384,432.75. Based on the Council direction received, and the actual amount of HUD allocation, staff updated the draft PY 2026-2027 AAP accordingly.
Staff recommends that the Council conduct a public hearing, receive public comments, approve the draft CPP, PY 2026-2027 AAP including funding allocations, and budget amendment resolution, and direct staff to submit the approved CPP and AAP to HUD.
BACKGROUND
At the April 6, 2026, City Council meeting, staff presented the draft CPP and draft AAP, including CDBG applications and funding approaches/options, for PY 2026-2027. For reference, the April 6, 2026, staff report is included as Attachment 3.
The City Council received the draft CPP, AAP, and public comments, and provided direction on funding allocations. In addition, HUD released the actual amount of PY 2026-2027 formula funds. Staff has adjusted the funding allocation for each application proportionally to align with the Council’s direction and updated the draft AAP.
ANALYSIS
Citizen Participation Plan
Staff presented Council with updates to the draft CPP, which were primarily language clarity and readability improvement revisions. The updated CPP refines, organizes, clarifies, and improves readability of the City’s procedures for public participation in federally funded housing and community development activities. The updated CPP reflects current federal participation requirements while maintaining the City’s existing outreach practices and transparency standards.
PY 2026-2027 Annual Action Plan including Funding Allocations Program Year 2026-2027, spanning from July 1, 2026, through June 30, 2027, represents a one-year funding cycle for the proposed projects/programs and marks the second year of the City’s 2025-2030 Consolidated Plan. The Consolidated Plan identifies the community development and housing needs for the City’s residents.
CDBG funds must be used to implement the priority needs and goals identified in the Consolidated Plan.
8.1. On April 6, 2026, HUD notified staff about the City’s $362,315 formula allocation. Staff also updated the current total of unexpended prior years’ resources to $22,117.75.
Based on the $362,315 allocation, the funding for public services is $54,347.25 (capped at 15%) and $72,463 for program administration (capped at 20%). The remaining $235,504.75, combined with $22,117.75 in prior years’ resources, results in a total of $257,622.50 available for non-public service activities.
The following table summarizes the available funding and eligible uses for PY 2026- 2027.
Eligible Uses
Funding Amount Public Service
(15% Cap)
Non-Public
Service
Program
Administration
(20% Cap)
PY 2026-2027
Formula Funds $362,315.00 $54,347.25 $235,504.75 $72,463.00 Prior Years’
Resources $22,117.75 -- $22,117.75 --
PY 2026-2027 Total $384,432.75 $54,347.25 $257,622.50 $72,463.00 At the April 6, 2026, City Council meeting, staff announced that the City will receive $362,315 in HUD formula funding, and that one public service grant applicant withdrew its application. Due to the limited funding available and the significantly higher applicant funding requests, staff presented the City Council with an analysis of CDBG applications and funding options to seek input and direction on the final activities to be included in the draft AAP.
Following the staff presentation and public comments, the City Council provided the following direction:
Public Service Funds: Apply equal distribution to the five remaining applications, since one application was withdrawn.
Non-Public Service Funds: Apply equal distribution to the sidewalk improvement project and housing rehabilitation and accessibility modification program, and decline funding for Gilroy clinic improvements expanding access for the elderly.
Based on the Council direction and the HUD formula funding amount, a summary of the proposed projects/programs and allocations for PY 2026-2027 is presented on the following page.
8.1. CDBG Program Year 2026-2027 Projects / Programs and Allocations Category
Organization Project / Program
Formula
Funds
$362,315.00
Prior Years'
Resources
$22,117.75
Allocation
Carry the
Vision
Peer to Peer Support
for Unhoused
Residents
Withdrew
Application -- --
Project Sentinel Fair Housing $ 10,869.45 -- $ 10,869.45 Project Sentinel Tenant-Landlord
Services $ 10,869.45 -- $ 10,869.45
Sourcewise Transit Services $ 10,869.45 -- $ 10,869.45
Shine Together
Inc.
Young Mothers
Support Services $ 10,869.45 -- $ 10,869.45
Silicon Valley
Independent
Living Center
Housing and
Emergency Services
for Persons with
Disabilities
$ 10,869.45 -- $ 10,869.45
Public Service
Subtotal $ 54,347.25 $ 54,347.25
City of Gilroy
Public Works
Sidewalk
Improvements $ 117,752.38 $ 11,058.87 $ 128,811.25
Rebuilding
Together
Silicon Valley
Housing
Rehabilitation and
Accessibility
Modification
$ 117,752.37 $ 11,058.88 $ 128,811.25
Bay Area
Community
Health
Gilroy Clinic
Improvements
Expanding Access
for the Elderly
-- -- --
Non-Public Service
Subtotal $ 235,504.75 $ 22,117.75 $ 257,622.50
City of Gilroy Program
Administration $ 72,463.00 -- $ 72,463.00
Program
Admin.
Subtotal $ 72,463.00 -- $ 72,463.00
Total $362,315.00 $ 22,117.75 $ 384,432.75
8.1. A 30-day public comment period from March 13, 2026, through April 13, 2026, was held for the draft CPP and AAP to seek community input. A summary of the public comments can be viewed in the Executive Summary, section 5, of the draft AAP. The public comments were generally supportive and appreciative of the City for its efforts.
Conclusion
City Council action is requested to formally approve the CPP and PY 2026-2027 AAP, including funding allocations, and direct staff to proceed with submission to HUD.
Staff also recommends that the Council adopt the budget amendment resolution to fully appropriate the FY 2026-2027 CDBG funds based on HUD’s released allocation of $362,315, plus the prior years’ resources of $22,117.75, for a total of $384,432.75. The recommended budget for CDBG was based on staff’s original estimate of $400,000.
The difference of $15,567.25 is reflected in the budget amendment resolution and recommended to be adopted by Council.
ALTERNATIVES
The City Council may choose not to approve the funding recommendations stated in the staff report or allocate the funds as it deems appropriate while staying within the maximum percentages (caps) required by HUD.
FISCAL IMPACT/FUNDING SOURCE
CDBG funds are allocated by HUD on an annual basis and will be added to the City’s line of credit once the draft PY 2026-2027 AAP is approved by HUD.
The CDBG resources are budgeted and expended from the City’s CDBG Fund (Fund 245). The resources and funding recommendations are included in the City’s recommended budget. In addition, a budget amendment is included with this staff report to appropriate the exact amount to fully program the CDBG allocation for FY 2026- 2027.
PUBLIC OUTREACH
A 30-day public comment period from March 13, 2026, through April 13, 2026, as well as a public meeting on April 6, 2026, and a public hearing on May 4, 2026, were held for the draft CPP and draft AAP to seek community input.
NEXT STEPS
8.1. Upon approval by the City Council, staff will submit the CPP and AAP, including funding allocations, to HUD.
Attachments:
1. Draft Citizen Participation Plan
(https://www.cityofgilroy.org/DocumentCenter/View/19944)
2. Draft PY 2026-2027 Annual Action Plan
(https://www.cityofgilroy.org/DocumentCenter/View/20103)
3. April 6, 2026, Staff Report without Attachments
4. Budget Amendment Resolution
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DRAFT Citizen Participation
Plan
The Consolidated Plan (Con Plan) is required by the U.S. Department of Housing and Urban Development (HUD) for jurisdictions to continue to receive federal housing and community development funding. The City of Gilroy (City) receives Community Development Block Grant (CDBG) funding annually as an entitlement community. The Con Plan examines the housing and community development needs of the City, sets priorities for the CDBG funds, establishes an Annual Action Plan (AAP) for meeting current and future needs, and evaluates the City’s performance in meeting its annual goals through the Consolidated Annual Performance Evaluation Report (CAPER).
Purpose of the Citizen Participation Plan
The City recognizes the importance of public participation in both defining and understanding current housing, community development, economic development, and fair housing needs, and prioritizing resources to address those needs. The City’s Citizen Participation Plan (CPP) is designed to provide residents of all ages, sex, economic levels, races, ethnicities, and special needs, equal access to become involved in the Con Plan each year. This CPP was written in accordance with 24 CFR, Section 91.105 of HUD’s Consolidated Plan regulations.
To ensure maximum participation in the federal plans and reports process among all populations and needs groups, and to ensure that their issues and concerns are adequately addressed, the City will follow the standards set forth in its adopted CPP during development of its federal plans and reports. The participation process will be developed and monitored by the City’s Housing and Community Services Division (HCS).
Encouragement of Citizen Participation
The federal plans and reports process offers opportunities for resident participation through public meetings and review of draft documents. The City encourages participation of persons with special needs and/or persons who are often underrepresented in the public process.
The City shall encourage the participation of:
• Extremely low-income persons;
• Low- and moderate-income persons;
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• Persons with Spanish as their primary language
• Residents of slum and blighted areas and areas where CDBG funds are proposed to be used; • Residents of public and assisted housing developments; • Persons experiencing Homelessness and homeless service providers, including the local Continuum of Care (CoC);
• Fair housing organizations and agencies;
• Local and regional institutions and other stakeholders involved in housing and community development activities.
Outreach
The City will conduct outreach as necessary to encourage individuals, groups, and organizations identified above to provide input for any federal plans and reports. Outreach may include:
• Developing informational materials and flyers in multiple languages (at least English and Spanish) to distribute to other agencies.
• Placing notices in local newspapers in English and when practical and possible in Spanish (Gilroy Dispatch, San Jose Mercury News).
• Providing email notices to interested parties.
• Posting notices at City Hall, Gilroy Library, on the City’s website, in the Email Express, and social media platforms.
• Outreach efforts will be provided in the Spanish language as much as possible and with good‐ faith effort at a minimum through the South County Collaborative listserv, Unhoused Service Providers Network, and the South County Youth Task Force. • Direct outreach to public housing residents and the Housing Authority. • Coordination with the local CoC, homeless service providers, and other community resource providers.
Citizen Comment
Prior to the adoption of any federal plan, report, or amendments thereto, the City will make available to interested parties the draft documents for a comment period of no less than 30 days, 15 daysfor the CAPER, or as otherwise directed by HUD. The dates of the public comment periods will be identified in a notice regarding the availability of the documents, which will be published in a newspaper of local circulation as identified above.
Draft documents will include a summary of:
• The funding allocation the City expects to receive;
• The range of activities that may be undertaken;
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• The estimated amount that will benefit low- and moderate-income persons; • The City’s proposed uses of funds; and
• The City’s performance under previously funded activities.
The City will consider any comments by individuals or groups received in writing regarding federal plans or reports and received at the public hearing(s). A summary of the written and oral comments received during the comment period will be included in the applicable federal plan or report.
Access to Records
The City will provide residents, public agencies, and other interested parties with reasonable (up to five years after the end of each Program Year (PY)) and timely access (within 10 days of confirmed Public Records Request (PRA)) to information and records relating to the Consolidated Plan, Annual Action Plan, substantial amendments, CAPER, and the City’s use of CDBG funds.
Access will include:
• Proposed uses of funds and funding amounts;
• Performance reports (including the CAPER);
• The Residential Anti-Displacement and Relocation Assistance Plan; and • Records related to past use of funds and program outcomes.
The City will provide technical assistance to groups representing low- and moderate-income persons that request assistance in developing applications or commenting on plans.
1. In general, the City and subrecipients must retain records on CDBG-funded activities for the longest of the following minimum standards*:
• Three years after the expiration or termination of the subrecipient agreement • Three years after the City’s submission of the CAPER in which a specific activity is reported for the last time (24 CFR 570.502(a)(7)(ii)(A))
2. Retain records for individual activities subject to the reversion of assets provisions at 24 CFR 570.503(b)(7) for as long as this provision continues to apply to the activity (24 CRF 570.502(a)(7)(2)(B)).
3. Retain records for individual activities for which there are outstanding loan balances, other receivables, or contingent liabilities until such receivables or liabilities have been satisfied (24 CFR 570.502(a)(7)(ii)(C))
4. If any litigation, claim audit, negotiation, or other action involving your records has
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started before the expiration of the 3-year period, records must be retained until all findings involving the records have been resolved and final action is taken (2 CFR 200.334.(a))
5. For the City’s protection, CDBG records must be retained for a minimum of five years after the expiration or termination of the subrecipient agreement. *It is always theoretically possible that a federal entity like the HUD Office of the Inspector General (OIG) or the General Accounting Office (GAO) may show up to perform an audit after the three years have elapsed and request to access such records concerning some questionable costs. Therefore, even after the three years, for protection, you may want to place the records in storage for an additional year or two, rather than discard them (Chapter 5: Recordkeeping and Reporting Requirement, Playing by the Rules: A Handbook for CDBG Subrecipients on Administrative Systems)
Amendments
Minor Amendments
Minor amendments are those that maintain the integrity of the associated plan and do not include any substantial change in policy or in funding priorities while still maintaining flexibility in meeting the goals and objectives. Minor amendments will be made administratively and will be incorporated into the City’s CAPER at the end of the program year.
Substantial Amendments
Substantial amendments are those that (a) change the allocation priorities or the method of fund distribution by more than $100,000; (2) carry out an activity using funds from any program covered in the Con Plan that was not previously described in the AAP; (3) change the purpose, scope, location or beneficiaries of any activity; or (4) change use from one eligible activity to another eligible activity.
Minor adjustments to funding levels for activities described in the Con Plan due to differences in actual versus anticipated program income are not considered substantial.
Any substantial amendment to the Con Plan will be incorporated into the Con Plan after a 30‐day public comment period and public hearing, encouraging input on the proposed substantial amendment, unless otherwise permitted by HUD. Notice of the opportunity for public comment will be distributed as outlined in the “Outreach” section of this CPP.
Temporary Citizen Participation Plan Amendments
In response to urgent situations or pandemics, the City will adopt HUD regulatory waivers regarding Citizen Participation timeliness, ensuring rapid access to critical CDBG funds.
Public Hearings/Meetings
In accordance with HUD regulations, the City will hold at least two public hearings a year to obtain
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residents’ views and to respond to applications for funding and questions. The two hearings will be conducted at a minimum at two different stages of the program year. At least one of the public hearings will be held before the draft Con Plan is published for comment.
Between the two hearings, staff shall address:
• Housing and community development needs, development of proposed activities, and review of program performance;
• Include discussion of past performance and use of funds.
Public hearings will be held at times and in locations (in person or virtual) that are convenient to potential and actual beneficiaries, with accommodations for persons with disabilities.
When non‐English speaking members of the public attend a public hearing or meeting in the City Council Chambers, non-English speaking participants can access the City’s Wordly AI Translation tool in the language of their choice, by scanning a QR code available in the City Council Chambers; Spanish is the default language captioned on several screens
Public Hearing Notices
If any federal plan or report requires a public hearing, the public shall be provided notice of the hearing as follows.
• Contents of Notice: The contents of a notice of a public hearing shall include:
• The date, time, and place (e.g., address, room, etc.) of the hearing. • A general description of the program and document that are the subject of the hearing. • A statement that any interested person is invited to appear and be heard on the request or proposal.
• A statement that a copy of the plan/report is available at City Hall and the Gilroy Library, including the addresses.
• The phone number, email, and street address of staff so an interested person can call, email, or visit to obtain additional information.
• Any additional information as may be required under applicable state or federal law, including information required under the City’s implementation of the Americans with Disabilities Act (ADA).
• Method of Notice Distribution: Notice of a public hearing required by this CPP shall be given as follows:
• Newspaper Publication: Notice shall be given at least once by publication in at least one newspaper of general circulation in the City a minimum of 10 days prior to the scheduled public hearing, more particularly in the Gilroy Dispatch and/or San Jose Mercury News (last resort option).
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• Site Posting: The City shall post notices in at least two public places within the City boundary (City Hall and Library).
Online Posting: Notice shall be given at the HCS website https://www.cityofgilroy.org/cdbg Availability of Draft and Final Documents to the Public All draft and final federal plans and reports will be available on the City’s website, at the City’s HCS office, and the Gilroy Library.
During the comment period for federal plans and reports, copies will be available for public review in the following locations:
1. HCS Division 7351 Rosanna Street
2. Gilroy Library 350 W. Sixth Street
Technical Assistance
HCS staff will provide technical assistance to subrecipients and any person or group interested in commenting on federal plans or reports or in developing CDBG funding applications. All new applicants or returning applicants with new activities are required to meet with HCS staff to discuss the proposed activity’s eligibility prior to the deadline provided in the application packet.
Complaints
Within 15 working days of receipt, HCS will provide a timely, substantive written response to every written citizen complaint related to the applicable federal plan or report. A summary of any written complaints received during the comment period will be included in the applicable federal plan or report.
Public Review of the Citizen Participation Plan
This CPP was made available for public review and comment prior to adoption, in accordance with the public notice, public hearing/meeting, and public comment procedures described herein. Any substantial amendments to this CCP will be made available for public review and comment through the same process prior to adoption. This CPP will be available on the City’s HCS website. Copies will also be made available to those that do not have internet access at no charge and will be made available in a format accessible to persons with disabilities, upon request. Interested residents should call or email HCS to request a copy of the CPP.
City of Gilroy
DRAFT Annual Action Plan
For the Second Year of the Five-Year Consolidated Plan
Program Year (PY) 2026 - 2027
(July 1, 2026 – June 30, 2027)
Community Development Department
Housing and Community Services
7351 Rosanna Street
Gilroy, CA 95020
City of Gilroy
Annual Action Plan
2026
1 OMB Control No: 2506-0117 (exp. 09/30/2021)
Executive Summary
AP-05 Executive Summary - 91.200(c), 91.220(b)
1. Introduction
The City of Gilroy (City) receives Community Development Block Grant (CDBG) funds each year from the U.S. Department of Housing and Urban Development (HUD) for housing, economic development, and community development activities. These funds are intended to meet priority needs locally identified by the City that primarily benefit persons with extremely low-, very low-, and low-incomes (incomes of 80 percent or less of area median income).
To receive federal funds, every five years, the City must submit a five-year strategic plan to HUD —the Consolidated Plan (Con Plan), as well as an Annual Action Plan (AAP) for each program year that identifies local needs, and how these needs will be addressed. The AAP must also demonstrate how the City will meet national goals set by the U.S. Congress to develop viable communities by providing decent housing, a suitable living environment, and economic opportunities.
The Con Plan and each AAP embody and reflect three overall goals, which relate to the major commitments and priorities of HUD, including:
• To provide decent housing by preserving the affordable housing stock, increasing the availability of affordable housing, reducing discriminatory barriers, increasing the supply of supportive housing for those with special needs, and transitioning homeless persons and families into housing.
• To provide a suitable living environment through safer, more livable neighborhoods, greater integration of lower-income residents, increased housing opportunities, and reinvestment in deteriorating neighborhoods.
• To expand economic opportunities, through more jobs paying self-sufficiency wages, homeownership opportunities, development activities that promote long-term community viability, and the empowerment of lower-income persons to achieve self-sufficiency.
The Program Year (PY) 2026-2027 AAP marks the second year of the five-year Con Plan period, which runs from 2025-2030. The AAP describes to the public and HUD how the City will specifically utilize CDBG funds in the coming program year (July 1, 2026 - June 30, 2027). A complete listing of specific projects/programs that will receive funding can be found in section AP-35 of this document.
Any minor changes (i.e. typos, minor edits, changes that do not affect the essence of the document) to this Plan will be completed through a minor amendment process that will not require further citizen
City of Gilroy
Annual Action Plan
2026
2 OMB Control No: 2506-0117 (exp. 09/30/2021)
participation or City Council approval. Substantial amendments (i.e. significant funding changes, reallocation of project monies, etc.) will follow the City’s Citizen Participation Plan (CPP), and require a public hearing and Council approval.
2. Summarize the objectives and outcomes identified in the Plan This could be a restatement of items, or a table listed elsewhere in the plan or a reference to another location. It may also contain any essential items from the housing and homeless needs assessment, the housing market analysis or the strategic plan.
HUD has established a set of outcomes and objectives that entitlement jurisdictions need to address.
The outcomes and objectives are noted within each of the Goals included in the Strategic Plan (SP-45) section of the Con Plan. In summary, they are as follows:
Outcomes: Availability/Accessibility; Affordability; Sustainability Objectives: Create Suitable Living Environments; Provide Decent Affordable Housing; Create Economic Opportunities
The goals identified in this AAP are taken from the Con Plan’s Strategic Plan which describes how federal funds and other resources will be deployed and what other actions will be taken to address community development and affordable housing needs over the next five years. The following goals were made available in the Notice of Funding Availability (NOFA) published by the City on January 30, 2026.
Support and Preserve Affordable Housing
Prevent and Reduce Homelessness
Increase Supportive/Public Services for Special Populations Invest in Community Development and Neighborhood Revitalization
3. Evaluation of past performance
This is an evaluation of past performance that helped lead the grantee to choose its goals or projects.
During Program Year 2024-2025, year five of the 2020-2025 Con Plan, the City successfully expended its allocation, with a total of $488,799.76 in CDBG funds requested for payment/drawn down from HUD. Every year, the City reports, in detail, on its CDBG performance in the Consolidated Annual
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Performance and Evaluation Report (CAPER) which is due to HUD within 90 days upon completion of the program year.
The City utilized CDBG funds for public service activities provided by the following subrecipients/programs in PY 2024-2025:
- Community Agency for Resources, Advocacy and Services (C.A.R.A.S.): RYSE UP II (Reaching our Young people to Succeed and Empower with Unlimited Potential) Program - Live Oak Adult Day Services: Adult Day Care Program
- Project Sentinel: Tenant-Landlord Counseling and Dispute Resolution Program - Sourcewise: Transit Services Program
- The Health Trust: Meals on Wheels Program
- South County Compassion Center: Outreach for the Unhoused Program Public service funds are always highly sought after; City staff went through a rigorous application review process to evaluate applications submitted in response to the NOFA. All organizations were able to fully expend their Gilroy grant allocations within PY 2024-2025, except for CARAS, which had a remaining balance of $18.89. A total of $58,421.24 in public service funds were spent, which was 15% of the allocation amount, and met the 15% public service cap.
The City also utilized CDBG funds for its rehabilitation activity provided by the following subrecipient/program:
-Rebuilding Together Silicon Valley: Repair and Accessibility Modification Program for Low-Income Homeowners. The Program aimed to address health/safety issues, code corrections, and accessibility issues.
The Program addressed health, and safety, accessibility, and code corrections issues citywide. A total of $179,942.32 was spent on the housing rehabilitation program, which provided assistance to 15 unique households.
On May 7, 2025, during Affordable Housing Month, the City of Gilroy and Rebuilding Together Silicon Valley provided a bilingual English and Spanish workshop at the Gilroy Senior Center on the free home safety repairs and modifications available through their CDBG funded program.
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Lastly, the City invested $172,516 in CDBG funds for a safety enhancement project that designed and constructed curb ramps, improving accessibility throughout several primarily low to moderate-income neighborhoods. The project was successfully completed on time and came in $7,427.33 under the budgeted amount of $179,943.33.
Another regulatory limitation on the use of CDBG funds is that no more than 20 percent of each program year’s grant allocation may be used for planning and administrative costs. The City has remained in compliance with this requirement since 2016.
The City utilized $56,432.73 in program administration funding to administer its CDBG program and $21,487.47 in program administration funding to fund the following program:
-Project Sentinel Fair Housing
The total amount of program administration funding was $77,920.20, which was 20% of the allocation amount, and met the 20% program administration cap.
The City continues to meet HUD’s timeliness requirement each May by maintaining a balance of less than 1.5 times its annual CDBG grant amount in HUD’s Line of Credit Control System (LOCCS).
4. Summary of Citizen Participation Process and consultation process Summary from citizen participation section of plan.
The City followed the requirements for citizen participation outlined in the City of Gilroy CPP. To facilitate this process, the City releases a NOFA for each funding cycle that allows interested parties to directly apply for these funds. The NOFA for PY 2026-2027 was published on January 30, 2026, and emailed to local organizations, nonprofits, and City departments that may be interested in applying for CDBG funds for the upcoming program year (July 1, 2026 – June 30, 2027). The following is a list of key components implemented to ensure the highest citizen participation was captured during the development of this plan:
• Public Notices in English and Spanish were published in the Gilroy Dispatch newspaper, on the City’s website Newsflash, CDBG webpage, city hall, library, and social media postings on January 30, 2026, noting the NOFA and CAPER results, virtual public hearing date, and application packet release date. This notice was also directly distributed to the following organizations or groups:
the South County Collaborative, South County Youth Task Force, Unhoused Service Providers Network, Nueva Vida Community, organizations on the interest list, and every currently funded CDBG organization.
• The application packet was released on the City’s CDBG webpage on February 6, 2026
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• The Public Hearing was held on February 17, 2026, at staff level, to review NOFA, provide an overview of prior year CDBG Program accomplishments via the CAPER, answer questions from the public, and receive public comments.
• The 30-day public comment period for the draft AAP and draft CPP is open from March 13, 2026 – April 13, 2026.
• The Public Meeting was held at the City Council meeting on April 6, 2026, to review potential grant funding allocation options to be included in the AAP. • A Public Hearing will be held at City Council meeting, on May 4, 2026, to review the draft AAP, including grant allocations, and the draft CPP, and to accept any public comments prior to adoption of both Plan approvals.
5. Summary of public comments
This could be a brief narrative summary or reference an attached document from the Citizen Participation section of the Con Plan
Over the course of the AAP development process, a total of five public comments were received and accepted. All comments were in relation to a particular application/activity that was submitted for funding.
During the February 17, 2026, NOFA and CAPER public hearing, Rebuilding Together Silicon Valley provided a public comment on the CAPER results presentation to thank the City for past support, provided a description of the services provided, and accomplishments in PY 2024- 2025.
An April 6, 2026, an email from the Executive Director of Silicon Valley Independent Living Center was received via email to [email protected], expressing support for the draft AAP, appreciation for the City’s combined efforts to assist residents with disabilities of all ages and lower income older residents to age in place, the partnerships with the County to increase the affordable housing stock, the partnerships with nonprofits that provide health and safety home repairs, housing navigation, case management combined with legal services to ensure residents have the tools and support needed to remain housed, and the desire that the City create a requirement for 10% fully accessible units in upcoming affordable developments.
During the April 6, 2026, City Council meeting, the Executive Director of Project Sentinel provided a public comment thanking the City, Council, and staff for its support for the Fair Housing and Tenant-Landlord Counseling, Education, and Dispute Resolution Programs that enable Gilroy residents to receive services and referrals.
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During the April 6, 2026, City Council meeting, resident and Rebuilding Together Silicon Valley board member thanked the City and Council for its partnership and shared the story of a disabled Gilroy resident who benefited from a Gilroy Rebuilding Day, partly supported by the City and other corporations.
During the April 6, 2026, City Council meeting, the Executive Director of Rebuilding Together Silicon Valley provided a public comment thanking the City for its support and a description of the services provided and the beneficiaries served in support of the Consolidated Plan goals and requested continued partnership.
6. Summary of comments or views not accepted and the reasons for not accepting them TBD
7. Summary
See above
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PR-05 Lead & Responsible Agencies - 91.200(b)
1. Agency/entity responsible for preparing/administering the Consolidated Plan The following are the agencies/entities responsible for preparing the Con Plan and those responsible for administration of each grant program and funding source.
Agency Role Name Department/Agency
CDBG Administrator GILROY Community Development Department Table 1 – Responsible Agencies
Narrative
The City of Gilroy (City is the lead and responsible agency for the United States Department of Housing and Urban Development’s (HUD) entitlement programs in Gilroy. The Community Development Department (CDD) is responsible for administering the City’s CDBG program.
Entitlement jurisdictions receive entitlement funding (i.e., non-competitive, formula funds) from HUD. By federal law, the City is required to submit a five-year Con Plan and AAP to HUD listing priorities and strategies for the use of its federal funds.
The PY 2026-2027 AAP marks the second program year of the City's 5-year 2025-2030 Con Plan.
Con Plan Public Contact Information
Sharon Goei, Community Development Director
7351 Rosanna Street
Gilroy, CA 95020
408.846.0467
[email protected]
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AP-10 Consultation – 24 CFR 91.100, 91.200(b), 91.215(l)
1. Introduction
The Con Plan outreach effort is a regional collaborative effort between the County of Santa Clara and seven entitlement jurisdiction cities.
Community engagement is key for helping the County and cities to identify needs, priorities, goals, strategies, and activities for future housing and community development activities over the period of the five-year regional plan. Engagement activities included a community survey, public outreach, stakeholder consultations (or meetings), focus groups, and pop-up events.
As a part of the stakeholder consultation process, the City consulted with a variety of stakeholders, including City departments, human service agencies, local and regional community-based organizations, housing providers and advocates, and the Santa Clara County Housing Authority (SCCHA). Social service providers were also consulted, including those that provide services to the elderly, persons with disabilities, unhoused persons, and other lower-income individuals and at-risk populations.
Provide a concise summary of the jurisdiction’s activities to enhance coordination between public and assisted housing providers and private and governmental health, mental health and service agencies (91.215(l)).
The City worked in coordination with many agencies, boards, and governmental entities, with the intent of enhancing access to services, learning best practices of activities that would aid the City in developing strategies to meet established goals of providing decent and affordable housing, providing a suitable living environment, and expanding economic opportunities. The City’s citizen participation efforts included the following efforts during the preparation of the Cond Plan and AAP:
• CDBG/Housing Regional Coordinators Meetings – City staff and staff from the other CDBG entitlement cities in Santa Clara County, the County of Santa Clara Office of Supportive Housing, and the SCCHA participate. Meetings discuss data resources and strive to coordinate requests for information to both public and private countywide agencies. HUD staff meets with this group to clarify issues and assist in providing ongoing programmatic technical information. The email listserv for this group enables members to share information and provide technical assistance to one another, thus promoting and creating an environment of cooperation and understanding of differing needs, concerns, and issues among the group. This expansion of knowledge of regional issues and sharing of information benefits each individual jurisdiction represented in the group. • South County Collaborative – City staff partners with the collaborative, which consists of providers of services to low-income and special needs residents of Gilroy, San Martin, and Morgan Hill. Collaborative members share information through an active listserv and receive
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notices of public comment periods on the AAP and CAPER, CPP, Con Plan, public hearings, and substantial amendments.
• Unhoused Service Providers Network (USPN) – Monthly meetings are hosted by City staff, that include representatives from the Gilroy Police Department, Quality-of Life Officer Team, staff from County of Santa Clara, staff from various nonprofit agencies and shelter providers, health workers, the Santa Clara Valley Water District, and faith-based organizations. The focus is to increase collaboration and partnership among the service providers and the City, to connect the unhoused with services. The sharing of information also has as a goal of coordinating resources and services for unhoused clients.
• A Community Plan Implementation Team, which includes members of the Continuum of Care (CoC) and other community stakeholders, meets quarterly to evaluate progress toward the Community’s Plan to End Homelessness.
• CoC Participation – Meets monthly with a group comprising governmental agencies, homeless service and shelter providers, homeless persons, housing advocates, affordable housing developers, and various private parties, including businesses and foundations, to identify gaps in homeless services, establish funding priorities, and pursue a systematic approach to addressing homelessness.
• During the development of its Plans and as a general practice, the City coordinated with a variety of housing agencies, public and mental health agencies, and service providers to discuss community needs. These discussions provided an opportunity for these entities to network and learn more about one another’s services and programs.
Describe coordination with the Continuum of Care and efforts to address the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans, and unaccompanied youth) and persons at risk of homelessness.
The Santa Clara County Office of Supportive Housing (OSH) is the administrator of the regional CoC. The City continuously coordinates with the CoC in its efforts to end and prevent homelessness in the city and county. CoC is a group comprised of countywide stakeholders, including governmental agencies, homeless service and shelter providers, persons experiencing homelessness, housing advocates, affordable housing developers, and various private parties, including businesses and foundations.
Regional efforts of the CoC include the development of the Community Plan to End Homelessness, which identifies strategies to address the needs of persons experiencing homelessness in the county, including individuals experiencing long-term/chronic homelessness and families, families with children, veterans, and unaccompanied youth. The plan also addresses the needs of people experiencing housing instability. The CoC is collaborating with all Santa Clara County cities to update a new plan for the next five years. Gilroy staff has participated in monthly coordination and data sharing meetings.
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Service providers and organizations that provide services to persons experiencing homelessness and persons experiencing housing instability were also contacted by the City to attend most recent Con Plan engagement meetings. This included Destination Home, the policy group who works on housing stabilization and permanent housing solutions; and Eden Housing, a nonprofit affordable housing developer and operator that provides permanent supportive housing in the city.
Describe consultation with the Continuum(s) of Care that serves the jurisdiction’s area in determining how to allocate ESG funds, develop performance standards for and evaluate outcomes of projects and activities assisted by ESG funds, and develop funding, policies and procedures for the operation and administration of HMIS The City is not an Emergency Solutions Grant (ESG) entitlement jurisdiction and therefore does not receive ESG funds. However, the City does administer federal grant programs that aid unhoused and low-income families in Santa Clara County. The City also helps conduct the Point-in-Time (PIT) count; the biennial regional collaborative effort to count and survey persons experiencing homelessness. The latest count and survey were conducted in January of 2025. The data from the PIT count is used to plan, fund, and implement actions for reducing chronic homelessness and circumstances that bring about homelessness.
The CoC takes the role of Homeless Management Information System (HMIS) administration. The County, and its consultant Bitfocus, work jointly to operate and oversee HMIS. Both software and HMIS system administration are now provided by Bitfocus. Funding for HMIS in Santa Clara County comes from HUD, the County of Santa Clara, and the City of San Jose. The County’s HMIS is used by many city service providers across the region to record information and report outcomes. The software meets and exceeds HUD’s requirements for the implementation and compliance of HMIS Standards. The project has a rich array of service provider participation and is utilized to capture information and report on special programming, such as Housing 1000, the County VTA free bus pass program, and prevention service delivery.
The City partners and the entire county use the HMIS system to support housing availability alongside the coordinated entry system to support transitional, shelter, as well as permanent housing needs. In Santa Clara County’s coordinated entry system, all unhoused people complete a standard assessment tool (the Vulnerability Index-Service Prioritization Decision Assistance Tool or VI-SPDAT) that considers the individual’s situation and identifies the best type of housing intervention to address their situation.
A community queue of eligible households is generated from the standard assessment. The community queue is used to fill spaces in the permanent housing programs, including permanent supportive housing, and rapid rehousing, in the county. This coordinated process reduces the need for people to traverse the county seeking assistance from every service provider separately.
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2. Agencies, groups, organizations and others who participated in the process and consultations
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Table 2 – Agencies, groups, organizations who participated 1 Agency/Group/Organization Santa Clara County County Office of Supportive Housing (OSH) Agency/Group/Organization Type Other Government - County What section of the Plan was addressed by
Consultation?
Needs Assessment
Homeless Strategy
Housing Needs
Briefly describe how the
Agency/Group/Organization was consulted. What
are the anticipated outcomes of the consultation or
areas for improved coordination?
The City continues to utilize the OSH as a partner in addressing the needs of the City.
2 Agency/Group/Organization Project Sentinel
Agency/Group/Organization Type Service-Fair Housing
What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Briefly describe how the
Agency/Group/Organization was consulted. What
are the anticipated outcomes of the consultation or
areas for improved coordination?
Participated in the NOFA process - may work as a subrecipient. 3 Agency/Group/Organization Sourcewise
Agency/Group/Organization Type Services-Elderly Persons Services-Persons with Disabilities
What section of the Plan was addressed by
Consultation?
Anti-poverty Strategy
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Briefly describe how the
Agency/Group/Organization was consulted. What
are the anticipated outcomes of the consultation or
areas for improved coordination?
Participated in the NOFA process - may work as a subrecipient. 6 Agency/Group/Organization Silicon Valley Independent Living Center Agency/Group/Organization Type Services-Persons with Disabilities Services-Health
What section of the Plan was addressed by
Consultation?
Anti-poverty Strategy
Briefly describe how the
Agency/Group/Organization was consulted. What
are the anticipated outcomes of the consultation or
areas for improved coordination?
Participated in the NOFA process - may work as a subrecipient. 7 Agency/Group/Organization Rebuilding Together Silicon Valley Agency/Group/Organization Type Housing
What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Anti-poverty Strategy
Briefly describe how the
Agency/Group/Organization was consulted. What
are the anticipated outcomes of the consultation or
areas for improved coordination?
Participated in the NOFA process- may work as a subrecipient.
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8 Agency/Group/Organization Bay Area Community Health
Agency/Group/Organization Type Services-Health
Health Agency
Regional Organization
Services-Elderly Persons
Services-Persons with Disabilities
What section of the Plan was addressed by
Consultation? Non-Homeless Special Nees
Briefly describe how the
Agency/Group/Organization was consulted. What
are the anticipated outcomes of the consultation or
areas for improved coordination?
Participated in NOFA process - may work as a subrecipient. 9 Agency/Group/Organization City of Gilroy
Agency/Group/Organization Type Other government - Local Grantee Public Works Department
What section of the Plan was addressed by
Consultation?
Non-Homeless Special Needs
Services-Persons with Disabilities
Briefly describe how the
Agency/Group/Organization was consulted. What
are the anticipated outcomes of the consultation or
areas for improved coordination?
Participated in the NOFA Process - may work as a subrecipient. 10 Agency/Group/Organization South County Collaborative Agency/Group/Organization Type Local Service Provider Organization Group
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What section of the Plan was addressed by
Consultation?
Needs Assessment
Briefly describe how the
Agency/Group/Organization was consulted. What
are the anticipated outcomes of the consultation or
areas for improved coordination?
Participated in monthly south county service provider meetings on topics affecting low-income residents and receive feedback on community needs. Announce CDBG related public comment periods/meetings/public hearings at in-person meetings and through the listserv.
11 Agency/Group/Organization Unhoused Service Providers Network (USPN) Agency/Group/Organization Type Local Service Provider Organization Group What section of the Plan was addressed by
Consultation?
Needs Assessment
Briefly describe how the
Agency/Group/Organization was consulted. What
are the anticipated outcomes of the consultation or
areas for improved coordination?
Participated in monthly virtual south county USPN meetings hosted by the City Staff to discuss local resources for persons experiencing homelessness in Gilroy and receive feedback from providers on the challenges impacting the provision of services. Announce CDBG related public comment periods/meetings/public hearings at in-person meetings and through the listserv. 12 Agency/Group/Organization Housing CDBG Coordinators’ Meeting Agency/Group/Organization Type Santa Clara County Regional jurisdictional monthly CDBG Coordinators Meeting What section of the Plan was addressed by
Consultation?
Needs Assessment
Homeless Strategy
Briefly describe how the
Agency/Group/Organization was consulted. What
are the anticipated outcomes of the consultation or
areas for improved coordination?
Participated in monthly virtual meeting along with other Santa Clara County CDBG grant recipients to discuss all things CDBG, including the coordination of the Annual Action Plan and Consolidated Plan. In addition to CDBG coordination, OSH provides legislative, funding updates, and other program updates.
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Identify any Agency Types not consulted and provide rationale for not consulting Not applicable
Other local/regional/state/federal planning efforts considered when preparing the Plan Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan? Continuum of Care
Continuum of Care
Council
Identifies housing inventory count to facilitate the provision of housing services to those experiencing homelessness.
General Plan /
Housing Element City of Gilroy Determines physical conditions of housing that affect habitability. Identifies the number of affordable units that need to be allocated to households with different income levels.
Table 3 - Other local / regional / federal planning efforts Narrative
City, other entitlement jurisdictions, and the County, with assistance from consultants, worked to involve housing, social services, and other agencies in the community engagement process, including direct solicitation for these agencies to participate in the community survey, stakeholder meetings, and focus groups for the Con Plan, which drives subsequent Action Plans.
Stakeholder participants were asked questions and provided feedback on priorities, issues, and solutions in relation to CDBG-eligible activities such as housing, neighborhood revitalization, and low- to moderate-income household issues. They were asked about their top priorities, neighborhood revitalization, housing problems and their solutions, local organization support, families vulnerable to crisis, broadband internet issues, and how the jurisdiction should spend CDBG funding.
The responses were very helpful for the Needs Assessment and Strategic Plan of the Consolidated Plan, to analyze alongside data from the
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census and HUD, especially for topics pertaining to housing needs, the needs of those experiencing homelessness, services for housed individuals with disabilities, and community development needs.
In preparation for the PY 2026-2027 Annual Action Plan, City staff consulted with new grant applicants or returning applicants with a new program who were interested in applying for CDBG funding to discuss their proposed activity and whether it met a Gilroy priority need, HUD national objective, if it was an eligible CDBG activity, and to answer any grant related questions. The NOFA and CAPER results public hearing slide presentation was made available to the public on the City’s CDBG webpage www.cityofgilroy.org/cdbg.
In addition, City staff is continually assessing community needs through its monthly collaboration with the South County Collaborative, Unhoused Service Providers Network, Housing CDBG Coordinators’ meeting, as well as from quarterly programmatic information received from the CDBG grant recipients to ensure that the priority needs and goals identified in the 2025-2030 Consolidated Plan continue to accurately represent the needs of low-income Gilroy residents each program year.
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AP-12 Participation - 91.401, 91.105, 91.200(c)
1. Summary of citizen participation process/Efforts made to broaden citizen participation Summarize citizen participation process and how it impacted goal setting Outreach is essential to the City’s ability to create an accurate and effective plan, and to allocate resources appropriately. The City, in partnership with the County, made extensive efforts to solicit citizen participation during the Consolidated Plan process which in turn drives each year’s Annual Action Plan. Below is a summary of the steps taken for the Consolidated Plan, along with the efforts made for PY 2026-2027.
First, the City attempted to reach as many residents as possible, primarily low-income persons/families, disabled persons, elderly persons, and families with minor children. Receiving feedback directly from residents who may potentially receive assistance from grant funds is crucial for the CDBG program’s effectiveness. Second, the City reached out to practitioners, agencies, leaders, organizations, and companies who may have the specialized knowledge, experience, resources, and capacity to discuss needs, opportunities, solutions, investments, and how community improvements can be made. Third, the City encouraged all residents to weigh in on community needs and opportunities for improvements through resident participation opportunities.
The City offered several opportunities and various methods for participation and public comment throughout the development of the Consolidated Plan, the 2026 - 2027 Annual Action Plan (AAP) and the Citizen Participation Plan (CPP), including:
1. Regional Needs Survey
2. Pop-Up Events
3. Regional Forums
4. Focus Groups
5. Joint Community Meetings on Consolidated Plan Process and Assessment of Fair Housing
6. Stakeholder Consultations
7. Public Hearings and a Comment Period for Draft Documents for current AAP
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Citizen Participation Outreach
Sort Order Mode of Outreach Target of Outreach Summary of response/attendance
Summary of
comments received
Summary of comments
not accepted
and reasons
URL (If applicable)
1 Newspaper Ad
Non-targeted/broad
community
Publicly noticed in
the Gilroy Dispatch
on 1/30/26, emailed
to nonprofit
agencies, posted on
City website, social
media, city hall, and
library.
Application packet
available 2-6-26.
2-17-26 virtual public
hearing. 12 agencies
attended the public
hearing on the PY
2026-2027 NOFA and
PY 2024-2025 CAPER
results.
Agencies asked
questions related
to the NOFA. See
AP-05, section 5 for
a summary of the
public comment
received at public
hearing.
All questions were
welcomed, and one
comment was
accepted and noted.
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Sort Order Mode of Outreach Target of Outreach Summary of response/attendance
Summary of
comments received
Summary of comments
not accepted
and reasons
URL (If applicable)
2 Newspaper Ad
Non-English Speaking
- Specify other
language: Spanish
Publicly noticed in
the Gilroy Dispatch
on 1/30/26, emailed
to nonprofit
agencies, posted on
City website, social
media, city hall, and
library.
Application packet
available 2-6-26.
2-17-26 virtual public
hearing. 12 agencies
attended the public
hearing on the PY
2026-2027 NOFA and
PY 2024-2025 CAPER
results
Agencies asked
questions related
to the NOFA. See
AP-05, section 5 for
a summary of the
public comment
received at public
hearing.
All questions were
welcomed, and one
comment was
accepted and noted.
Cityofgilroy.org/cdbg
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Sort Order Mode of Outreach Target of Outreach Summary of response/attendance
Summary of
comments received
Summary of comments
not accepted
and reasons
URL (If applicable)
3 Virtual Public
Hearing
Non-targeted/broad
community
Publicly noticed in
the Gilroy Dispatch
on 1/30/26, emailed
to nonprofit
agencies, posted on
City website, social
media, city hall, and
library.
Application packet
available 2-6-26.
2-17-26 virtual public
hearing. 12 agencies
attended the public
hearing on the PY
2026-2027 NOFA and
PY 2024-2025 CAPER
results
Agencies asked
questions related
to the NOFA. See
AP-05, section 5 for
a summary of the
public comment
received at the
public hearing.
All questions were
welcomed, and one
comment was
accepted and noted.
Cityofgilroy.org/cdbg
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Sort Order Mode of Outreach Target of Outreach Summary of response/attendance
Summary of
comments received
Summary of comments
not accepted
and reasons
URL (If applicable)
4 Newspaper Ad
Non-targeted/broad
community
Publicly noticed the
following on 3/13/26,
in the Gilroy
Dispatch:
City Council Public
meeting 4/6/26, to
receive public
comments and
Council direction on
CDBG funding
allocations.
City Council public
hearing 5/4/26, to
announce 30-day
public comment
period from 3/13/26
to 4/13/26, for the
draft AAP, funding
allocations, and draft
Citizen Participation
Plan. Public
4-6-26, one written
public comment
was received from
a nonprofit
applicant
supporting the
draft AAP, services
to increase the
support for lowincome Gilroy
residents,
affordable housing
with a 10%
requirement for
fully accessible
units, and support
for their program
and other
nonprofits serving
the elderly and
disabled.
See AP-05, section
5 for a summary of
the public
comment.
There were no
comments that were
not accepted. Cityofgilroy.org/cdbg
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Sort Order Mode of Outreach Target of Outreach Summary of response/attendance
Summary of
comments received
Summary of comments
not accepted
and reasons
URL (If applicable)
5 Newspaper Ad
Non-English Speaking
- Specify other
language: Spanish
Publicly noticed the
following on 3/13/26,
in the Gilroy
Dispatch:
City Council Public
meeting 4/6/26, to
receive public
comments and
Council direction on
CDBG funding
allocations.
City Council public
hearing 5/4/26, to
announce 30-day
public comment
period from 3/13/26
to 4/13/26, for the
draft AAP, funding
allocations, and draft
updated Citizen
Participation Plan.
TBD TBD Cityofgilroy.org/cdbg
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6 Public Meeting
Non-targeted/broad
community/Language
interpretation via
Wordly.
Public meeting
4/6/26 to receive
direction from City
Council on CDBG
funding allocations
and public comment.
Two nonprofit
representatives
attended the
4/6/26 meeting,
provided
comments related
to their programs
and requested
Council support to
receive CDBG
funding.
One resident and
Rebuilding
Together Silicon
Valley board
member
requested Council
support for one of
the programs.
See AP-05, section
5 for a summary of
the public
comments.
The public
comment period
was open through
April 13, 2026.
There were no public
comments that that
were not accepted.
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Sort Order Mode of Outreach Target of Outreach Summary of response/attendance
Summary of
comments received
Summary of comments
not accepted
and reasons
URL (If applicable)
7 Public Hearing
Non-targeted/broad
community/Language
interpretation via
Wordly.
Public hearing 5-4-26
to receive final input
on draft Citizen
Participation Plan,
funding allocations,
and the draft AAP, for
Council’s
consideration and
adoption.
TBD TBD
Table 4 – Citizen Participation Outreach
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Expected Resources
AP-15 Expected Resources - 91.420(b), 91.220(c)(1,2)
Introduction
For PY 2026-2027, the City of Gilroy anticipates CDBG funding as detailed below, including $906.74 in prior year resources from PY 2024-2025 and $21,211.01 from PY 2025-2026, to be reallocated to nonpublic service activities.
Anticipated Resources
Program Source
of
Funds
Uses of Funds Expected Amount Available Year 2 Expected Amount
Available
Remainder
of Con Plan
$
Narrative
Annual Description
Allocation:
$
Program
Income:
$
Prior Year
Resources:
$
Total:
$
CDBG public
-
federal
Acquisition
Admin and
Planning
Economic
Development
Housing
Public
Improvements
Public
Services 362,315.00 0.00 22,117.75 384,432.75 1,200,000.
Table 5 - Expected Resources – Priority Table
Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied HUD allocations are critical to overcoming barriers; however, they are not sufficient to address all the needs of LMI households. Therefore, the City will continue to leverage other funding sources, including Permanent Local Housing Allocation (PLHA) from the state of California, to provide services to populations in need.
If appropriate, describe publicly owned land or property located within the jurisdiction that may be used to address the needs identified in the plan The City’s 2023-2031 Housing Element identified two publicly owned property sites with potential for
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development:
• 8th and Alexander: The City is partnering with the Santa Clara County Office of Supportive Housing regarding the development of affordable housing at the publicly owned (County owned land) property at 8th and Alexander.
• 880 Sunrise Drive: This 1.98-acre site is partially occupied by a City of Gilroy fire station, with the remainder being vacant. The site is zoned PF (Park/Public Facilities District), which permits City or other governmental agency facilities. The realistic capacity for this site is 21 lowerincome units on the vacant land and parking lot portions, while retaining the fire station. This site is included in the RHNA sites inventory as an opportunity site and is publicly owned.
The City of Gilroy is actively considering and utilizing its publicly owned land for affordable housing development and is committed to complying with regulations regarding surplus lands. Currently the city is working with California Housing and Community Development to complete the process of declaring four properties as surplus sites. In May of 2025, city staff met with developers and discussed affordable housing opportunities, housing element goals, and opportunity sites. This meeting will continue annually.
Discussion
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Annual Goals and Objectives
AP-20 Annual Goals and Objectives - 91.420, 91.220(c)(3)&(e) Goals Summary Information
The funding allocations listed below are tentative pending City Council direction.
Table 6 – Goals Summary
Sort
Order
Goal Name Start
Year
End
Year
Category Geographic
Area
Needs
Addressed
Funding Goal Outcome
Indicator
1 Increase
Supportive/Public
Services for
Special
Populations
2026 2027 NonHomeless
Special Needs
Citywide Public
Services for
Vulnerable
Populations
CDBG:
$54,347.25
Public service
activities other
than
Low/Moderate
Income
Housing
Benefit: 89
unduplicated
persons
2 Invest in
Community
Development and
Neighborhood
Revitalization
2026 2027 Non-Housing
Community
Development
Citywide Community
Development
and Public
Facilities
CDBG:
$128,811.25
Public Facility
or
Infrastructure
Activities
other than
Low/Moderate
Income
Housing
Benefit: 3,452
unduplicated
persons
3 Support and
Preserve
Affordable
Housing
2026 2027 Affordable
Housing
Citywide Affordable
Housing
CDBG:
$128,811.25
Homeowner
Housing
Rehabilitated:
9 unique
households
4 Prevent and
Reduce
Homelessness
2026 2027 Homelessness Citywide Homelessness
Response and
Prevention
CDBG:
$0.00
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Goal Descriptions
1 Goal Name Support and Preserve Affordable Housing
Goal
Description
- Permanent affordable rental housing with services
- Home rehabilitation for lower-income residents for safety and accessibility improvements
2 Goal Name Prevent and Reduce Homelessness
Goal
Description
Homelessness
3 Goal Name Increase Supportive /Public Services for Special Populations Goal
Description
- A resource/navigation center to connect people with resources, including migrant/agricultural/seasonal workers
- Youth activities, especially out of school time (after school, summer) - More staffing for consistent programming and resources at the senior center - Affordable childcare
- Mental health services- Services for foster youth, seniors, and people with disabilities
4 Goal Name Invest in Community Development and Neighborhood Revitalization Goal
Description
Public Facility or Infrastructure Activities other than Low/Moderate Income Housing Benefit will occur in a LMI qualifying area.
AP-35 Projects - 91.420, 91.220(d)
Introduction
For PY 2026-2027, the City was allocated $362,315 in CDBG entitlement funds.
PY 2026-2027 will be a one-year funding cycle for the proposed activities and represents the second
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year of the City’s 2025-2030 Consolidated Plan.
# Project Name
1 Public Services- Fair Housing
2 Public Services- Young Mothers Support Services
3 Public Services- Transit Services
4 Public Services- Housing and Emergency Services for Persons with Disabilities 5 Public Services- Tenant-Landlord Services
6 Housing Rehabilitation and Accessibility Modification 7 Sidewalk Improvements
8 Program Administration
Table 7 – Project Information
Describe the reasons for allocation priorities and any obstacles to addressing underserved needs
One of the greatest challenges in meeting the underserved needs of low- and moderate-income persons is having limited financial resources. Public service funds are always in high demand, but with limited funding, it is difficult to fund these programs to their fullest potential while staying within HUD parameters. The City continues to utilize its CDBG funding to the greatest extent possible to serve as many underserved needs as they are able in each program year.
Allocation priorities are determined based on the needs identified by analyzing data from HUD, American Community Survey, and other sources and soliciting feedback from community members and local stakeholders. The City awards CDBG funds to organizations to provide public services and housing for low-income and special needs households, as well as for public facilities and improvements that will primarily benefit low-income persons.
HUD requires that 70 percent of all CDBG funds be spent on activities benefiting low- and moderateincome (LMI) persons, with incomes at or below 80% of the AMI, adjusted for household size.
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AP-38 Project Summary
Project Summary Information
The funding allocations listed below are tentative pending City Council direction.
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1 Project Name Public Services- Fair Housing
Target Area Citywide
Goals Supported Support and Preserve Affordable Housing Increase Supportive/Public Services for Special Populations Needs Addressed Affordable Housing
Funding CDBG: $10,869.45
Description Project Sentinel’s Fair Housing Program will address illegal housing discrimination by investigating complaints, administering audits, conducting community outreach and education, and pursuing appropriate remedies when federal and state fair housing laws are violated. HUD Matrix Code: 05J / National Objective: LMC (income verification required)
Target Date 6/30/2027
Estimate the number and type
of families that will benefit
from the proposed activities
3 Low/mod income households will receive fair housing services where a case investigation is opened. A much larger number of residents will be assisted via outreach, intake, and consultation services.
Location Description 8339 Church St., Ste. 104
Gilroy, CA 95020
Planned Activities The Fair Housing Program will address illegal housing discrimination by investigating complaints, administering audits, conducting community outreach and education, and pursuing appropriate remedies when federal and state fair housing laws are violated. 2 Project Name Public Services- Young Mothers Support Services Target Area Citywide
Goals Supported Increase Services for Special Populations Needs Addressed Supportive Services
Funding CDBG: $10,869.45
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Description Shine Together’s Young Mother’s Support Services Program will provide educational navigation and advocacy, parenting education, and social-emotional learning to 10 young Gilroy mothers and their children at San Ysidro Park. The program began in Gilroy in 2025 to address the growing unmet need in south county. HUD Matrix Code: 05D / National Objective: LMC Target Date 6/30/2027
Estimate the number and type
of families that will benefit
from the proposed activities
9 low-income mothers and their children
Location Description San Ysidro Park
7700 Murray Ave.
Gilroy, CA 95020
Planned Activities The Young Mothers Support Services Program will provide young low-income mothers between the ages of 13-25 with expanded access to education, essential resources, and supportive relationships to families facing poverty, school disruption, housing instability, and mental health stress, in collaboration with South County Heals, South County Youth Task Force, and the Neighborhood Safety Unit. 3 Project Name Public Services- Transit Services
Target Area Citywide
Goals Supported Increase Services for Special Populations Needs Addressed Supportive Services
Funding CDBG: $10,869.45
Description Sourcewise’s Transit Services Program will provide timely, free transit rides to 20 low-income 60+ and/or disabled adults to local medical/dental appointments, pharmacies, grocery stores, and to socialize at the Senior Center. HUD Matrix Code: 05E / National Objective: LMC (presumed benefit) Target Date 6/30/2027
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Estimate the number and type
of families that will benefit
from the proposed activities
20 low/mod income Gilroy residents
Location Description 16340 Montrey Rd.
Morgan Hill, CA 95037
Planned Activities The Transit Services Program will provide free transit rides to Gilroy seniors and/or disabled adults to local medical appointments, pharmacies, grocery stores, and to socialize at the Senior Center. 4 Project Name Public Services- Housing and Emergency Services for Persons with Disabilities Target Area Citywide
Goals Supported Increase Services for Special Populations and Prevent and Reduce Homelessness Needs Addressed Supportive Services
Funding CDBG: $10,869.45
Description Silicon Valley Independent Living Center’s Housing and Emergency Services for Persons with Disabilities Program will provide counseling, support and assistance to low-income Gilroy residents who have a disability or chronic health condition to assist in their transition from homelessness, health care facilities, or unstable or temporary housing into permanent, affordable, accessible, integrated housing.
HUD Matrix Code: 05X / National Objective: LMC (presumed benefit and persons requiring income verification)
Target Date 6/30/2027
Estimate the number and type
of families that will benefit
from the proposed activities
43 low-income Gilroy residents with disabilities.
Location Description 7881 Church St., Ste. C
Gilroy, CA 95020
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Planned Activities The Housing and Emergency Services for Persons with Disabilities Program will serve Gilroy residents with disabilities or a chronic health condition in their transition from homelessness, health care facilities, or unstable or temporary housing into permanent affordable, accessible, integrated housing, and will provide emergency housing assistance, as funding is available, including security deposits and first month’s rent, assistive technology information & referral, home accessibility modification referrals, supplemental food, and referrals to organizations that provide assistance to ensure long-term sustainability of their independent living environment. 5 Project Name Public Services- Tenant-Landlord Services Target Area Citywide
Goals Supported Support and Preserve Affordable Housing and Increase Supportive/Public Services for Special Populations
Needs Addressed Supportive Services
Funding CDBG: $10,869.45
Description Project Sentinel’s Tenant-Landlord Services Program will provide tenant-landlord counseling services to Gilroy residents to prevent eviction and housing instability through information and referral, case management, dispute resolution through conciliation or mediation, and community education. HUD Matrix Code: 05K / National Objective: LMC (income verification required) Target Date 6/30/2027
Estimate the number and type
of families that will benefit
from the proposed activities
14 low/mod income individuals
Location Description 8339 Church St., Ste. 104
Gilroy, CA 95020
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Planned Activities The Tenant-Landlord Services Program will provide counseling services to prevent eviction and housing instability, including information and referral, case management, dispute resolution through conciliation or mediation, and community education. Staff will educate tenants and housing providers on their rights and responsibilities and assists in resolving disputes related to terminations, rent increases, habitability, deposits, and other rental concerns.
6 Project Name Housing Rehabilitation and Accessibility Modification Target Area Citywide
Goals Supported Support and Preserve Affordable Housing Needs Addressed Affordable Housing
Funding CDBG: $128,811.25
Description Rebuilding Together Silicon Valley’s Housing Rehabilitation and Accessibility Modification Program will provide low-income homeowners with free critical health and safety repairs, accessibility improvements, and limited rehabilitation for mobile homes, condominiums, and single-family homes to address urgent needs and help the beneficiaries safely age in place. HUD Matrix Code: 14A / National Objective: LMH
Target Date 6/30/2027
Estimate the number and type
of families that will benefit
from the proposed activities
9 low/mod households
Location Description 1701 S. 7th St.#10
San Jose, CA 95112-6000
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Planned Activities The Housing Rehabilitation and Accessibility Modification Program will provide low-income homeowners with free critical health and safety repairs, accessibility improvements, and limited rehabilitation for mobile homes, condominiums, and single-family homes to address urgent needs.
Examples of proposed work include improvements such as grab bars and ramps, limited rehabilitation for mobile homes, condos, and single-family homes. These repairs address housing instability, prevent displacement and enable older adults and individuals with disabilities to safely age in place. Their team has over 21 years of experience administering publicly funded home repair programs across Santa Clara County, securing 26.3 million in CDBG funding and completing more than 5,900 projects, and has established systems for eligibility verification, construction management, contractor oversight, and compliance reporting to ensure timely and responsible use of funds. 7 Project Name Sidewalk Improvements
Target Area Citywide
Goals Supported Invest in Community Development
Needs Addressed Community Development and Public Improvements Funding CDBG: $128,811.25
Description City of Gilroy Public Works’ Sidewalk Improvements Project provides much needed accessibility improvements at San Ysidro Park and downtown Gilroy on 7th Street, including ADA-compliant concrete path, curb ramps, sidewalk, curb, gutter, and other incidental items within two low-income census tracts, to meet accessibility compliance and create safe pedestrian pathways. HUD Matrix Code: 03L:
Sidewalk Improvements / National Objective: LMA
Target Date 6/30/2027
Estimate the number and type
of families that will benefit
from the proposed activities
3,452 low/mod income individuals
Location Description San Ysidro Park and downtown Gilroy on 7th Street
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Planned Activities The Sidewalk Improvements Project will provide much needed accessibility improvements at San Ysidro Park and downtown Gilroy on 7th Street, including ADA-compliant concrete path, curb ramps, sidewalk, curb, gutter, and other incidental items within two low-income census tracts (5126.03 and 5126.04), to meet the accessibility needs of the community by providing vital upgrades. The work includes the furnishing of all labor, materials, incidentals necessary to perform the design and construction of public improvements.
8 Project Name Program Administration
Target Area City Wide
Goals Supported Planning and Administration
Needs Addressed N/A
Funding CDBG: $72,463.00
Description CDBG Funds will be used to pay for staff time and consultant time related to the overall management and administration of the CDBG Program. HUD Matrix Code: 21A General Program Administration Target Date 6/30/2027
Estimate the number and type
of families that will benefit
from the proposed activities
N/A
Location Description N/A
Planned Activities CDBG Funds will be used to pay for staff time and consultant time related to the overall management and administration of the CDBG Program.
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AP-50 Geographic Distribution - 91.420, 91.220(f)
Description of the geographic areas of the entitlement (including areas of low-income and minority concentration) where assistance will be directed
The City will continue to utilize CDBG funding to support citywide efforts that primarily meet the needs of the low-income community through the funded non-public service and public service projects.
Geographic Distribution
Target Area Percentage of Funds
Citywide 100
Table 8 - Geographic Distribution
Rationale for the priorities for allocating investments geographically The city falls just under the citywide LMA (Low- and Moderate-Income Area) definition, with 51% of the population falling within the Low- and Moderate-Income category. All public services and housing activities will serve LMI persons, families, and households citywide.
Discussion
See above.
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AP-75 Barriers to affordable housing -91.420, 91.220(j) Introduction
The city is subject to the same barriers to affordable housing that exist across the Bay Area. These issues include the high cost of development, constraining the development of affordable housing units in favor of higher-end units, and the lack of developable land, which prevents housing development and increases the price of land.
Actions it planned to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment In its 2023 - 2031 Housing Element, the City of Gilroy identified goals, policies, and programs to remove or ameliorate barriers to affordable housing, including:
Goals and Policies:
Goal 1. Housing Production. Provide adequate residential sites to accommodate projected housing needs and encourage the production of a variety of housing types.
• Policy 1.1. The City shall encourage the provision of a variety of housing options for Gilroy residents. • Policy 1.2. The City shall strive to ensure adequate land is available at a range of densities to meet Gilroy’s existing and projected housing needs.
• Policy 1.3. The City shall encourage the provision of new affordable housing.
Goal 2. Removal of Government Constraints. Remove or reduce governmental constraints to the development, improvement, and maintenance of housing where feasible and legally permissible. • Policy 2.1. The City shall periodically review City regulations, ordinances, permitting processes, and residential fees to ensure that they do
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not unreasonably constrain housing development and are consistent with state law. • Policy 2.2. The City shall continue to provide individuals with disabilities reasonable accommodation through flexibility in the application of land use or zoning when necessary to eliminate barriers to housing opportunities. • Policy 2.3. The City shall consider the development of single-room occupancy units, studio apartments, micro-units, and other similar unit types that are affordable to extremely low-income residents in higher-density areas of the city.
Programs updated with CY 2025 progress:
• Program A-2. Surplus Lands/Affordable Housing on City-Owned Sites. In Progress - Surplus lands are documented in the Annual Progress Report, which is presented to the City Council annually in March and subsequently provided to HCD annually on or before April 1st. City staff has submitted 4 properties to HCD that have been declared as surplus. • Program A-5. Revise Neighborhood District Policy. In Progress - The City is participating in the Santa Clara County Planning Collaborative’s Grand Nexus/Affordable Housing Study, which includes a Residential Feasibility Study, an Affordable Housing Analysis, a Residential Nexus Analysis (for small developments), and a Commercial Nexus Study and Feasibility Analysis. Upon completion of the study and implementation of prescribed affordable housing standards, the City will update the Neighborhood District policy to include relevant affordable housing standards adopted by the Council
• Program A-10. Facilitate Missing Middle/Middle Income Housing. Completed and Continuous - A Zoning Amendment implementing this program was adopted on June 3, 2024, Ordinance No. 2024-01. City staff members have been part of the Santa Clara County Planning Collaborative Missing Middle workgroup where cities have come together to share information and learn about opportunities for missing middle housing and to learn about the economics of missing middle housing. The City currently has two projects in the pipeline including a townhome development and an apartment complex, that may be an option for housing for middle income households. Accessory Dwelling Units are also a viable option for missing middle income households. Gilroy has permitted an average of 36 ADUs per year between 2023-2025. The Housing Trust Silicon Valley has a program for first time homebuyers called the "Homebuyer Empowerment Loan Program" (HELP) that missing middle income households can qualify for - links to this program can be found on the City’s Housing and Community Services "Homebuyer Assistance" webpage. The City recently prepared a list of all corners lots in R1 and R2 zones that are greater than 8,000 sq ft with single family homes that could be eligible for SB 9. Information is being mailed to the homeowners at each lot to make them aware of the opportunity. Additional information
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about these sites can be found on the City Senate Bill 9 webpage. • Program A-11. Inclusionary Housing Policy. In Progress - The City originally hired a consultant who conducted an Inclusionary Housing Feasibility Analysis and recommended that a policy for both ownership and rental projects be future-tested and planned for improved economic conditions in the future. The City pivoted and joined the Santa Clara County Planning Collaborative's Grand Nexus/Affordable Housing study, which will encompass a Residential Feasibility Study, an Inclusionary Analysis, a Residential Nexus Analysis (for small developments), and a Commercial Nexus Study and Feasibility Analysis. The Grand Nexus study will include an in-lieu fee component • Program A-12. Incentives Beyond Density Bonus State Law. In Progress - The City originally hired a consultant who conducted an Inclusionary Housing Feasibility Analysis and recommended that a policy for both ownership and rental projects be future-tested and planned for improved economic conditions in the future. The City pivoted and joined the Santa Clara County Planning Collaborative's Grand Nexus/Affordable Housing study, which will encompass a Residential Feasibility Study, an Inclusionary Analysis, a Residential Nexus Analysis (for small developments), and a Commercial Nexus Study and Feasibility Analysis. The Grand Nexus study will include an in-lieu fee component. The City has partnered with Santa Clara County Office of Supportive Housing and the Santa Clara County Housing Authority to move forward a 100% affordable housing project on a County-owned property that will focus on housing for agricultural workers, where the City has agreed to waive impact fees for this development. While this is not a standard City policy, it demonstrates the City's interest in supporting housing incentives for households with special housing needs.
• Program B-1. Residential Development Ordinance (RDO) Removal. In Progress – The RDO will be removed as part of the City's ongoing effort to implement the Housing Element through a comprehensive zoning ordinance update. Although the RDO has not been repealed from the code, SB 330 and SB 8 make the ordinance null and void. Additional information is available on the Senate Bill 330 (SB 330) webpage. • Program B-2. Zoning and General Plan Densities. In Progress – The City is in the process of preparing a comprehensive zoning ordinance update to implement the Housing Element. All submitted projects will continue to be processed in compliance with applicable State law, both prior to and following adoption of the code amendment.
• Program B-5. Permit Streamlining - In Progress – The City is preparing a comprehensive zoning ordinance update that includes streamlining the development processes for historic structures and districts. The Building Division website includes example residential permits in compliance with AB 2234. The City has implemented streamlined permitting for all SB 9 applications and follows the zoning ordinance for determining whether an addition on a historic site creates a significant impact requiring a discretionary review. • Program B-6. Objective Standards - In Progress - A draft zoning ordinance that includes objective development standards and findings of approval is in process. The City will also evaluate design guidelines per this program. Affordable housing project objective standards will be
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updated upon adoption of an Affordable Housing Ordinance. The City has adopted Objective Design Standards for mixed-use residential and multi-family residential projects.
• Program B-7. Zoning Ordinance Update. In Progress - The zoning amendment adopted by the City Council on June 3, 2024 (Ordinance No. 2024-01) includes a requirement for the replacement of demolished units on the Sites Inventory and a clarification regarding FAR in mixed-use projects. The remaining items will be considered within the comprehensive zoning ordinance update. • Program B-8. Entitlement Road Webpage. Completed - Completed - Posted on City website • Program B-9. Building Department Webpage. Completed - The Building Division website was updated in 2023 to include example residential permits in compliance with AB 2234. The website includes plan submittal checklists (for application completeness), and example permits that received a final building permit approval. The example permits include accessory dwelling units, duplexes, multifamily / mixed-use projects, townhomes, custom single-family home, and single-family tract home. The website continues to be updated as required by new legislation or zoning updates.
• Program B-10. Zoning Code Annual Updates. In Progress - Continuous - The City updated the Accessory Dwelling Unit Ordinance in 2023 and 2025, created a webpage with a list of properties that can be approved ministerially pursuant to Government Code Section 65583.2, and will be completing a comprehensive update of the entire Zoning Ordinance to implement other Housing Element programs. • Program C-1. Monitoring of Units At Risk of Converting to Market Rate - Continuous - The City reviews affordable housing term expirations as part of its annual monitoring program. In 2025, the City collaborated with the County of Santa Clara Office of Supportive Housing to implement a Pilot Below-Market-Rate Preservation Program. During 2025, the City used a loan from the County to purchase a resale BMR senior home and resold to another low-income senior household. The City expects to process one City/County Pilot BMR Preservation program unit annually. The City is participating in the Santa Clara County Planning Collaborative Comprehensive Grand Nexus/Affordable Housing Study, which will encompass a Residential Feasibility Study, an Affordable Housing Analysis, a Residential Nexus Analysis (focused on small developments), and a Commercial Nexus Study and Feasibility Analysis. The Grand Nexus study will include an in-lieu fee component. • Program C-2. Housing Rehabilitation. Continuous - In FY 2022-23, Rebuilding Together Silicon Valley was awarded a CDBG grant for $140,000. In FY 2023-24, Rebuilding Together Silicon Valley was awarded a CDBG grant for $258,000. In FY 2024-25, Rebuilding Together was awarded a CDBG grant for $179,942.32. In FY 2025-26, Rebuilding Together was awarded a CDBG grant for $149,199.59. Program information is available on the City Block Grant Funds & Home Modification webpages. Annually, City staff and Rebuilding Together staff present the program at
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the Senior Center. The City will facilitate TEFRA hearings, as needed. • Program C-4. Resale Control on Owner Occupied Below Market -Rate Units. Continuous - Annually, the BMR Program Administrator conducts compliance monitoring for BMR portfolio homes. In 2024 and 2025, the City’s BMR Administrator and City staff conducted a community meeting to answer questions and explain resale restriction agreements to current homeowners. In 2024 and 2025, the City's BMR Program Administrator conducted a compliance certification via mail to confirm that residents were complying with their resale agreement and restrictions. The City BMR Administrator Gilroy webpage also offers over 20 different "how-to" and "info" videos about the program, along with monthly FAQ virtual meetings where homeowners can ask questions. City staff has collaborated with the Santa Clara County Office of Supportive Housing to create a Pilot BMR Preservation Program - see C-1 above.
• Program C-5 – Resale Control on Rental Below Market Rate Units. Continuous - For renter-occupied units in 100% affordable developments, the BMR Program Administrator sends information to property owners regarding resale restrictions outlined in their Regulatory, Loan, or Density Bonus Agreements and conducts an annual compliance audit. In 2025, the City BMR Administrator completed outreach and administered the annual re-certification procedures for 100% affordable housing developments to confirm compliance with City and other regulatory agreements. • Program C-6 – Identification and Preservation of At-Risk Units. Continuous - The City’s BMR Program Administrator continues to update the City’s inventory of BMR units. City staff have collaborated with the Santa Clara County Office of Supportive Housing to create a Pilot BMR Preservation Program (see C-1 above). This process provides an opportunity to purchase and to resell low-income BMR units to remain in the program for an additional 30 years. In 2025, one unit was purchased and resold to another low-income senior household. The low-income household utilized County and City down payment assistance to purchase the home. When units become available for resale, the new program will enable the City to purchase and maintain affordability for other low-income households. • Program D-2- Funding Sources to Assist Homeownership. Continuous - The City’s webpage provides information on homebuyer assistance, including the Santa Clara County Homebuyer Empowerment Loan Program (HELP), the California Housing Finance Agency (CalHFA) First Mortgage Programs and Down Payment Assistance Programs, and the CalHFA’s Accessory Dwelling Unit (ADU) Grant Program. In 2025, the City conducted workshops in English and Spanish with over 232 attendees to inform the community of these resources. The City has BEGIN and CalHome ReUse Down Payment Assistance loans available for low-income households and used BEGIN funds for down payment assistance on the Pilot BMR Preservation Program resale unit - see C-1 above. • Program D-4 – Pursue Funding for Affordable Housing. Continuous - Permanent Local Housing Allocation (PLHA) funding from the State through application and partnership with Santa Clara County is anticipated to occur in 2026. The City continues to receive annual CDBG funding and supports two 100% affordable developments with 0% interest rate CDBG loans, allowing them to refinance and rehabilitate the properties.
City staff will apply for Federal Housing Trust Fund funding, if available, in 2026. The City is participating in the Santa Clara County Planning