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36632. Assessments to be based on estimated benefit; Classification of real property and businesses; Exclusion of residential and agricultural property
(a) The assessments levied on real property pursuant to this part shall be levied on the basis of the estimated benefit to the real property within the property and business improvement district. The city council may classify properties for purposes of determining the benefit to property of the improvements and activities provided pursuant to this part.
(b) Assessments levied on businesses pursuant to this part shall be levied on the basis of the estimated benefit to the businesses within the property and business improvement district. The city council may classify businesses for purposes of determining the benefit to the businesses of the improvements and activities provided pursuant to this part.
(c) Properties zoned solely for residential use, or that are zoned for agricultural use, are conclusively presumed not to benefit from the improvements and service funded through these assessments, and shall not be subject to any assessment pursuant to this part. 36633. Time for contesting validity of assessment
The validity of an assessment levied under this part shall not be contested in an action or proceeding unless the action or proceeding is commenced within 30 days after the resolution levying the assessment is adopted pursuant to Section 36625. An appeal from a final judgment in an action or proceeding shall be perfected within 30 days after the entry of judgment.
36634. Service contracts authorized to establish levels of city services
The city council may execute baseline service contracts that would establish levels of city services that would continue after a property and business improvement district has been formed. 36635. Request to modify management district plan
The owners’ association may, at any time, request that the city council modify the management district plan. Any modification of the management district plan shall be made pursuant to this chapter. 36636. Modification of plan by resolution after public hearing; Adoption of resolution of intention
(a) Upon the written request of the owners’ association, the city council may modify the management district plan after conducting one public hearing on the proposed modifications. The city council may modify the improvements and activities to be funded with the revenue derived from the levy of the assessments by adopting a resolution determining to make the modifications after holding a public hearing on the proposed modifications. If the modification includes the levy of a new or increased assessment, the city council shall comply with Section 36623. Notice of all other public hearings pursuant to this section shall comply with both of the following:
(1) The resolution of intention shall be published in a newspaper of general circulation in the city once at least seven days before the public hearing.
(2) A complete copy of the resolution of intention shall be mailed by first class mail, at least 10 days before the public hearing, to each business owner or property owner affected by the proposed modification.
(b) The city council shall adopt a resolution of intention which states the proposed modification prior to the public hearing required by this section. The public hearing shall be held not more than 90 days after the adoption of the resolution of intention.
36637. Reflection of modification in notices recorded and maps
Any subsequent modification of the resolution shall be reflected in subsequent notices and maps recorded pursuant to Division 4.5 (commencing with Section 3100), in a manner consistent with the provisions of Section 36627. 36638. Assessment as government imposed fee on Civ C § 1770 transaction [Operative July 1, 2024]
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(a) A business assessment pursuant to this part is a fee imposed by a government on the transaction for purposes of paragraph (29) of subdivision (a) of Section 1770 of the Civil Code. (b) This section shall become operative on July 1, 2024.
CHAPTER 3.5. Financing
36640. Bonds authorized; Procedure; Restriction on reduction or termination of assessments
(a) The city council may, by resolution, determine and declare that bonds shall be issued to finance the estimated cost of some or all of the proposed improvements described in the resolution of formation adopted pursuant to Section 36625, if the resolution of formation adopted pursuant to that section provides for the issuance of bonds, under the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500)) or in conjunction with Marks-Roos Local Bond Pooling Act of 1985 (Article 4 (commencing with Section 6584) of Chapter 5 of Division 7 of Title 1 of the Government Code). Either act, as the case may be, shall govern the proceedings relating to the issuance of bonds, although proceedings under the Bond Act of 1915 may be modified by the city council as necessary to accommodate assessments levied upon business pursuant to this part. (b) The resolution adopted pursuant to subdivision (a) shall generally describe the proposed improvements specified in the resolution of formation adopted pursuant to Section 36625, set forth the estimated cost of those improvements, specify the number of annual installments and the fiscal years during which they are to be collected. The amount of debt service to retire the bonds shall not exceed the amount of revenue estimated to be raised from assessments over 30 years.
(c) Notwithstanding any other provision of this part, assessments levied to pay the principal and interest on any bond issued pursuant to this section shall not be reduced or terminated if doing so would interfere with the timely retirement of the debt.
CHAPTER 4. Governance
36650. Report by owners’ association; Approval or modification by city council
(a) The owners’ association shall cause to be prepared a report for each fiscal year, except the first year, for which assessments are to be levied and collected to pay the costs of the improvements, maintenance, and activities described in the report. The owners’ association’s first report shall be due after the first year of operation of the district. The report may propose changes, including, but not limited to, the boundaries of the property and business improvement district or any benefit zones within the district, the basis and method of levying the assessments, and any changes in the classification of property, including any categories of business, if a classification is used.
(b) The report shall be filed with the clerk and shall refer to the property and business improvement district by name, specify the fiscal year to which the report applies, and, with respect to that fiscal year, shall contain all of the following information:
(1) Any proposed changes in the boundaries of the property and business improvement district or in any benefit zones or classification of property or businesses within the district. (2) The improvements, maintenance, and activities to be provided for that fiscal year. (3) An estimate of the cost of providing the improvements, maintenance, and activities for that fiscal year.
(4) The method and basis of levying the assessment in sufficient detail to allow each real property or business owner, as appropriate, to estimate the amount of the assessment to be levied against his or her property or business for that fiscal year.
(5) The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year.
(6) The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part.
(c) The city council may approve the report as filed by the owners’ association or may modify any particular contained in the report and approve it as modified. Any modification shall be made pursuant to Sections 36635 and 36636.
The city council shall not approve a change in the basis and method of levying assessments that would impair an authorized or executed contract to be paid from the revenues derived from the levy of
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assessments, including any commitment to pay principal and interest on any bonds issued on behalf of the district.
36651. Designation of owners’ association to provide improvements, maintenance, and activities
The management district plan may, but is not required to, state that an owners’ association will provide the improvements, maintenance, and activities described in the management district plan. If the management district plan designates an owners’ association, the city shall contract with the designated nonprofit corporation to provide services.
CHAPTER 5. Renewal
36660. Renewal of district; Transfer or refund of remaining revenues; District term limit
(a) Any district previously established whose term has expired, or will expire, may be renewed by following the procedures for establishment as provided in this chapter. (b) Upon renewal, any remaining revenues derived from the levy of assessments, or any revenues derived from the sale of assets acquired with the revenues, shall be transferred to the renewed district. If the renewed district includes additional parcels or businesses not included in the prior district, the remaining revenues shall be spent to benefit only the parcels or businesses in the prior district. If the renewed district does not include parcels or businesses included in the prior district, the remaining revenues attributable to these parcels shall be refunded to the owners of these parcels or businesses. (c) Upon renewal, a district shall have a term not to exceed 10 years, or, if the district is authorized to issue bonds, until the maximum maturity of those bonds. There is no requirement that the boundaries, assessments, improvements, or activities of a renewed district be the same as the original or prior district.
CHAPTER 6. Disestablishment
36670. Circumstances permitting disestablishment of district; Procedure
(a) Any district established or extended pursuant to the provisions of this part, where there is no indebtedness, outstanding and unpaid, incurred to accomplish any of the purposes of the district, may be disestablished by resolution by the city council in either of the following circumstances:
(1) If the city council finds there has been misappropriation of funds, malfeasance, or a violation of law in connection with the management of the district, it shall notice a hearing on disestablishment.
(2) During the operation of the district, there shall be a 30-day period each year in which assessees may request disestablishment of the district. The first such period shall begin one year after the date of establishment of the district and shall continue for 30 days. The next such 30-day period shall begin two years after the date of the establishment of the district. Each successive year of operation of the district shall have such a 30-day period. Upon the written petition of the owners or authorized representatives of real property or the owners or authorized representatives of businesses in the district who pay 50 percent or more of the assessments levied, the city council shall pass a resolution of intention to disestablish the district. The city council shall notice a hearing on disestablishment.
(b) The city council shall adopt a resolution of intention to disestablish the district prior to the public hearing required by this section. The resolution shall state the reason for the disestablishment, shall state the time and place of the public hearing, and shall contain a proposal to dispose of any assets acquired with the revenues of the assessments levied within the property and business improvement district. The notice of the hearing on disestablishment required by this section shall be given by mail to the property owner of each parcel or to the owner of each business subject to assessment in the district, as appropriate. The city shall conduct the public hearing not less than 30 days after mailing the notice to the property or business owners. The public hearing shall be held not more than 60 days after the adoption of the resolution of intention.
36671. Refund of remaining revenues upon disestablishment or expiration without renewal of district; Calculation of refund; Use of outstanding revenue collected after disestablishment of district
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(a) Upon the disestablishment or expiration without renewal of a district, any remaining revenues, after all outstanding debts are paid, derived from the levy of assessments, or derived from the sale of assets acquired with the revenues, or from bond reserve or construction funds, shall be refunded to the owners of the property or businesses then located and operating within the district in which assessments were levied by applying the same method and basis that was used to calculate the assessments levied in the fiscal year in which the district is disestablished or expires. All outstanding assessment revenue collected after disestablishment shall be spent on improvements and activities specified in the management district plan. (b) If the disestablishment occurs before an assessment is levied for the fiscal year, the method and basis that was used to calculate the assessments levied in the immediate prior fiscal year shall be used to calculate the amount of any refund.
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APPENDIX 2 – ASSESSED BUSINESSES*
Lodging Business Street Address City, State, ZIP
Best Western Plus / Forest
Park Inn
375 Leavesley Road Gilroy, CA 95020
Budget Motels / Whiterock 8897 Monterey Road Gilroy, CA 95020 Garlic Farm Inn 5920 Travel Park Circle Gilroy, CA 95020 Gilroy Inn 611 Leavesley Road Gilroy, CA 95020
Days Inn 8290 Murray Avenue Gilroy, CA 95020
Hilton Garden Inn 6070 Monterey Road Gilroy, CA 95020
Kings Rest Motel 8175 Monterey Road Gilroy, CA 95020
Motel 6 6110 Monterey Road Gilroy, CA 95020
Oaks Motel 8065 Monterey Road Gilroy, CA 95020
Pacheco Pass Motel 570 Old Gilroy Street Gilroy, CA 95020 Quality Inn & Suites 8430 Murray Road Gilroy, CA 95020
Econolodge 360 Leavesley Road Gilroy, CA 95020
Comfort Inn 8435 San Ysidro Avenue Gilroy, CA 95020
Travel Inn 5530 Monterey Road Gilroy, CA 95020
Hampton Inn 5975 Travel Park Circle Gilroy, CA 95020
*Jurisdiction list as of October 20, 2025
9.2. City of Gilroy
STAFF REPORT
Agenda Item Title: Public Hearing Pursuant to Government Code Section 3502.3 (AB 2561) to Receive a Report on City of Gilroy Vacancies, and Recruitment and Retention Efforts
Meeting Date: May 18, 2026
From: Matt Morley, City Administrator
Department: Human Resources/Risk Management
Submitted by: LeeAnn McPhillips, Interim Human Resources Director/Risk Manager.
Prepared by: LeeAnn McPhillips, Interim Human Resources Director/Risk Manager.
STRATEGIC PLAN GOALS: Not Applicable
RECOMMENDATION
1. Receive the informational report on City of Gilroy Vacancies, and Recruitment and Retention Efforts Pursuant to Government Code Section 3502.3 (AB 2561).
2. Open Public Hearing; and
3. Close Public Hearing.
EXECUTIVE SUMMARY
Assembly Bill ("AB") 2561, codified in Government Code Section 3502.3, passed in 2024 with a January 1, 2025, effective date, and requires public agencies to hold an annual public hearing to address the status of job vacancies prior to the adoption of the final budget. City of Gilroy adopts a biennial budget, and this is the City’s off-cycle year; thus, no budget adoption is scheduled; however, staff is bringing this item before the Council as an annual requirement to meet the statutory requirement of conducting the public hearing at least once per fiscal year. During this public hearing, the City must present information on the status of job vacancies and the City's recruitment and retention efforts. If necessary, the City will identify any necessary changes to policies, procedures, and recruitment activities that may lead to obstacles in the hiring process.
9.2. The City's employee bargaining units have been informed of the May 18, 2026, public hearing and shall be entitled to make a presentation at the hearing related to vacancies within their respective bargaining unit. This report is for informational purposes only as the recommended action is for the Council to receive the report as required by law.
BACKGROUND
AB 2561 amends the Meyers-Milias-Brown Act ("MMBA") and was introduced last year to address the issue of job vacancies in local government, which adversely affects the delivery of public services and employee workload. Among other requirements, the bill mandates that public agencies conduct a public hearing to present the status of vacancies, recruitment, and retention efforts during a public hearing before the agency's governing body prior to the adoption of the agency's final budget and identify any necessary changes to policies, procedures, and recruitment activities that may lead to obstacles in the hiring process. City of Gilroy adopts a biennial budget, and this is the City’s off-cycle year; thus, no budget adoption is scheduled; however, staff is bringing this item before the Council as an annual requirement to meet the statutory requirement of conducting the public hearing at least once per fiscal year.
In compliance with the new legal obligations, the City is required to present the following information at the public hearing:
1. The status of vacancies at the City of Gilroy.
2. Information on the City of Gilroy's recruitment and retention efforts.
3. Obstacles in the City of Gilroy's policies, procedures, and recruitment activities that create challenges in the hiring process.
If the number of vacancies within a single bargaining unit meets or exceeds 20% of the total number of authorized full-time positions, the staff presentation will also include the following information:
1. The total number of job vacancies within the bargaining unit.
2. The total number of applicants for vacant positions within the bargaining unit.
3. The average number of days to complete the hiring process from when a position is posted.
4. Opportunities to improve compensation and other working conditions.
ANALYSIS
Vacancy Rate Data:
As of May 1, 2026, there are no bargaining units in Gilroy with a vacancy rate exceeding
9.2. 20%. Below are the full-time position vacancy rates by bargaining unit and overall.
Bargaining Unit Full-Time
Positions
Vacancies Vacancy
Rate
AFSCME, Local 101 123 14 11.38%
Gilroy Police Officers Association
(GPOA)
70 4 5.71%
Gilroy Management Association (GMA) 45 4 8.89%
IAFF, Gilroy Firefighters, Local 2805 40 0 0.00%
Unrepresented Employees 21 3 14.29%
TOTAL 299 25 8.36%
Gilroy's vacancy rate is similar to other agencies and down a bit from the 2025 rate of 10%.
Other agencies have vacancy rates ranging from 6 - 20% overall. Vacancy rates can greatly vary by bargaining unit and agency. Also, when evaluating vacancy rate data, smaller agencies or smaller bargaining groups can appear to have a higher vacancy rate even with a small number of vacancies due to the small size of the overall headcount in the agency or bargaining unit.
While AB 2561 is a new law that went into effect on January 1, 2025, providing publicly available information regarding Gilroy's recruitment efforts is not new to our agency. At each Personnel Commission meeting, staff provides a current Recruitment and Employment Status Report to the Commission. This regular report includes information on all current recruitment processes, the status of each process, and the status of hires and separations.
Vacancies by Bargaining Unit and Recruitment Status:
The chart below is a summary of current vacancies and the status of the recruitment process.
The City's recruitment and selection efforts are dynamic and are being worked on daily, so keep in mind this information is a snapshot in time and can change quickly.
9.2. AFSCME, Local 101 Gilroy Police
Officers
Association
(GPOA)
Gilroy Management
Association (GMA)
IAFF, Gilroy
Firefighters, Local
2805
Unrepresented
Employees
Accounting Assistant
(2) – screening 150
applications
Detention
Services
Officer (1) – in
background
Community
Resilience
Coordinator (1) – to
be posted
n/a – no vacant
positions
Human Resources
Director/Risk
Manager (1) –
interviews 5.15.26
Community
Engagement
Coordinator – GPD
(1) – candidate in
background check
Police Officer
(3) – 2 in
background
Fire Division Chief
(1) – on hold –
savings for STR
construction
Management
Assistant (1) –
newly approved
position to be
posted
Code Enforcement
Officer (1) – to be
posted
Police Crime
Analyst (1) –
candidate in final
pre-hire steps
Utilities Director
(1) – interviews
5.22.26 Engineer I (1) –
department
interviews
Senior Civil
Engineer – Utilities
(1) – accepting
applications
Maintenance Worker
I (4) – candidates in
background check
Operations Services
Supervisor –
STSWD (1) –
screening
applications
Police Records
Technician (1) –
reviewing list
Public Safety
Communicator (2) –
screening
applications
Senior Maintenance
Worker – Water (1) –
posting due to recent
promotion
9.2. Turnover Data:
The chart below summarizes turnover data by bargaining unit for FY 26 (July 1, 2025 – April 30, 2026):
Turnover
Type/Bargaining
Group
AFSCME,
Local 101
Gilroy Police
Officers
Association
(GPOA)
Gilroy
Management
Association
(GMA)
IAFF, Gilroy
Firefighters,
Local 2805
Unrepresented
Employees
Totals
Retirement 2 0 1 0 4 7
Voluntary
Resignation
8 1 2 0 0 11
Involuntary
Separation*
4 3 2 0 0 9
Total 14 4 5 0 4 27
*Includes release from probation, termination, or resignation in lieu of release/termination Twenty-seven full-time positions turned over thus far in FY 26 (July 1, 2025 – April 30, 2026).
Based on the average number of full-time employees in FY 26 (approximately 274), the City's FY 26 employee turnover rate is about 10%. However, only 4% is attributable to voluntary turnover such as a resignation to take a position with another employer. 2.6% of the turnover is due to retirements and 3.3% is tied to involuntary separations such as release from probation, termination, or a resignation in lieu of release/termination. The average public agency turnover rate in California ranges from 10-20% annually putting Gilroy at the lower end of the average rate. Some California public agencies have a voluntary turnover rate at 13% annually and the rate can run much higher for hard to fill positions. Retirements remain one of the top drivers of the public sector employment turnover rate. According to a 2025 Mercer study of 2,617 organizations (public and private sector), the average voluntary turnover rate in the United States is 13%, excluding retirees. This is down from 2023 and 2024 which reported an average turnover rate of 17.3% and 13.5% respectively.
Recruitment and Retention Efforts:
The Human Resources (HR) Team has implemented various programs and efforts to achieve efficiency, effectiveness, and provide excellent service in the recruitment and selection process. These efforts are summarized below:
• Easy Application Process & Improved Candidate Experience: Gilroy utilizes an online platform for the recruitment process - NeoGov Insight. This software allows the team to organize and track the various steps of the hiring process so there is a smooth process for candidates, hiring managers, and the HR team. Further, the system offers an easy-tonavigate online system for applicants to submit an online application. Once a candidate establishes a profile in NeoGov, the candidate can access it, update it, and use it to apply for additional positions with the City of Gilroy or other agencies using the same system. The system has a built-in communication tool that allows staff to send notifications to candidates at various steps of the process along with reminder
9.2. notifications. NeoGov is the primary system used by most government agencies so candidates looking for government positions are familiar with the system and can use it with ease. Candidates can set up preferences in their profile to be notified when certain positions are open for recruitment by certain agencies. Further, Gilroy works hard to ensure a positive environment for candidates going through the hiring process steps. We strive to welcome candidates and give them positive encouragement when participating in the hiring process. We make ride-alongs and sit-alongs available for certain positions and encourage candidates to get to know what it would be like to work for the City of Gilroy. At times, an option for a Zoom interview is afforded to candidates when they are unable to take a block of time away from work or when a candidate may have a long distance to travel to Gilroy for an interview.
• Reduced Recruitment Timelines: Each recruitment process has a recruitment plan and schedule with deadlines. The HR team evaluates how long certain positions need to be posted to achieve a high-quality applicant pool. For some positions, HR has been able to reduce the posting period down to five-seven days while achieving a strong applicant pool.
Further, for many positions, written tests have been eliminated in favor of interviews and practical exercises and Gilroy uses various schools and testing centers where candidates can schedule tests to fit their schedule. As an example, the Peace Officer Standards & Training (POST) written exam and agility exam for Police Officers is offered at various community colleges in the region on a variety of dates. Candidates applying for Police Officer can schedule the exams when they best fit their schedule and then upload their test results via the NeoGov Insight portal. The portal is accessible 24/7 so candidates can complete the application process at any time and/or respond to any emails or notifications at any time. By planning out the recruitment schedule in advance, candidates can plan in advance for interview dates and hiring managers can block calendars to ensure we keep the process moving forward. Gilroy has an expedited re-hire process for seasonal/summer recreation employees, many of whom are college students that return to Gilroy for the summer months. Gilroy has also had some employees who left employment to try another job or due to relocation and have returned to City of Gilroy employment via an expedited rehire process.
• Review of Job Classifications & Recruitment Request Forms: Prior to commencing a recruitment process, HR works with the hiring manager to review the job description to ensure duties and requirements are current. Having an accurate job description will help match qualified candidates for the position. Further, hiring managers can access an easyto-fill-out Recruitment Request Form to capture all information needed to start the recruitment process. HR works with the hiring manager to identify the added value/ideal candidate qualifications and skills sets to target in the recruitment. First-year projects are identified when appropriate to market the job and the cool things the new hire will get to work on if hired to the position.
• Advertising & Outreach: HR posts jobs in various locations to attract candidates. The most popular places candidates find out about our jobs is the City of Gilroy website, City of Gilroy social media, GovernmentJobs.com which is a site tied to the NeoGov Insight applicant tracking system, and referral by current and former City of Gilroy employees. In addition, ads are posted on various job boards tied to professional organizations related to the position as well as sites that outreach to underrepresented groups. Gilroy's
9.2. Communications & Engagement Team also market Gilroy's jobs on various social media sites which seems to really increase our local applicant pool. Lastly, from time-to-time members of the Gilroy team (HR and Departments) attend job fairs and other events to market the City of Gilroy as an employer.
• Employee Referral Program: Last year Gilroy implemented an Employee Referral Program to encourage our employees to take part in the recruitment process by identifying strong candidates for positions across all city departments. Employees can earn $500 if a referred candidate is hired to a full-time position and another $500 if the candidate passes probation. Approximately 20 employees have received referral bonuses. • Use of Search Firms: When needed, the City of Gilroy utilizes the assistance of search firms for hard-to-fill positions and/or high-level management positions. For example, a search firm assisted us in finding our new City Administrator who began work on February 9th as well as our Economic Development Director who began work on February 2.
Currently, a search firm with specific experience in the Utilities industry is assisting with filling the Utilities Director position. We also used a search firm for the Police Chief and Human Resources Director/Risk Manager recruitments. Search firms selected have a strong network of candidates and teams that dedicate themselves to marketing and outreach positions.
• Competitive Wages & Benefits: Through our collective bargaining process, Gilroy strives to offer competitive salaries and benefits that will attract and retain high-quality employees.
• Positive Work Environment/Culture & Quality of Life: Gilroy offers a positive work environment for our employees where we encourage employees to take ownership of their position, provide excellent customer service, have fun doing their job, and continuously learn and grow in their role and prepare for their next role. The positive culture is something that requires continuous care and work by everyone on the Gilroy team. This is a priority in the organization and starts at the top and also starts day one with the onboarding process. The team in all departments works hard to ensure warm welcome and training for new hires. In addition, ongoing training and development opportunities, stretch assignments, and rotation of work are some of the ways Gilroy works on retaining employees once hired. Efforts are not a one size fits all and managers adjust their efforts based on the employee's goals and capabilities. Fun events organized by the Employee Appreciation Committee build camaraderie across all city departments. Lastly, with employees being our most important asset to delivering top-notch services to the community, we recognize that employees are "human" and are looking for ways to balance work-life and home-life so things like alternate work schedules are very valuable to our employees and aid with retention. Offering wellness programs and benefits that allow employees to care for their minds and bodies is another way we improve the quality of life for Gilroy employees. Specialized public safety employee wellness programs, our Annual Health & Wellness Fair, and our employee assistance program offerings all contribute to this effort. A positive and supportive work environment can be just as important as competitive wages.
• Building Our Bench: Given the challenges of filling certain jobs and the smaller available workforce, we have implemented programs to build our own bench. A few examples are our college summer internship program, Police Cadet program, and our internal stretch
9.2. assignments and training opportunities. Our college intern program led to three recent fulltime new hires following a competitive hiring process:
o Human Resources & Risk Management Technician - Summer Intern 2025 o Community Coordinator - Summer Intern 2019; Youth Task Force Intern 2020-2021 o Police Records Technician - Youth Task Force Intern 2025-2026 For Summer 2026, we are in the process of bringing on ten college summer interns in various departments.
Gilroy's Police Cadet Program offers a paid part-time position to students working on a college degree with the goal of them becoming future full-time Gilroy Police Department employees. The job skills learned as a part-time Police Cadet help to prepare the employee for a wide variety of job opportunities. Currently, we have two college students working as part-time Police Cadets.
Lastly, through stretch assignments, training programs, leadership academies, and mentorship, employees have the opportunity to advance to various positions within the organization. Since the last report, the following are examples of internal advancements that have taken place in the organization:
o Operations Services Supervisor to Water Systems Superintendent o Engineer II to Senior Civil Engineer
o Three Fire Engineers and one Firefighter to Fire Captain o Police Sergeant to Police Captain
o Police Corporal to Police Sergeant
o Police Officer to Police Corporal
o Fire Captain advanced to Fire Division Chief
o Accounting Assistant advanced to Management Analyst Trainee o Finance Director advanced to Assistant City Administrator o Two Maintenance Workers to Water Operators
o One Senior Maintenance Worker to Supervising Water Quality Specialist Even with all the efforts described above, there is always more to do to recruit and retain great employees. This is a continuous effort not only by human resources but by all managers and employees throughout the organization.
ALTERNATIVES
Not applicable.
FISCAL IMPACT/FUNDING SOURCE
There is no fiscal impact tied to this report other than the staff time to prepare the report.
9.2. PUBLIC OUTREACH
Notice of the public hearing was provided in accordance with the Brown Act through the City Council agenda posting process.
NEXT STEPS
Not applicable.
Attachments:
None
9.1. City of Gilroy
STAFF REPORT
Agenda Item Title: Consideration of Downtown Plywood and Vacancy Regulations
Meeting Date: May 18, 2026
From: Matt Morley, City Administrator
Department: Community Development
Submitted by: Sharon Goei, Community Development Director Prepared by: Bryce Atkins, Deputy Director of Community Development STRATEGIC PLAN GOALS: Promote Economic Development Activities
RECOMMENDATION
Council provide direction regarding desired regulations for downtown plywood use and vacancies.
BACKGROUND
In 2023, the City Council established the Downtown Committee to focus on economically enhancing and revitalizing Downtown Gilroy. From its inception, the Committee identified plywood coverings on vacant storefronts and long-term vacant buildings as major visual and economic deterrents. These elements harm the downtown's image, economic activity, and community safety.
To address these challenges, the Downtown Committee formed two specialized subcommittees:
• Plywood Removal Subcommittee (PRS): Tasked with developing strategies and regulations to minimize or eliminate unsightly plywood coverings on vacant storefronts, while promoting aesthetically pleasing and transparent alternatives. • Vacancy Ordinance Subcommittee (VOS): Focused on addressing prolonged vacancies in downtown buildings through new regulations and incentives to promote occupancy.
9.1. In 2024, the PRS and VOS presented their joint report and recommendations to the City Council, who directed staff to add the two items to the Community Development Department’s work plan. In subsequent updates to the City Council, staff noted that these items fell under the discretionary category – City initiatives for the public good that are typically Council- or community-driven but not mandated or core services. Staff also estimated completion by June 2025 (FY 2025 Q4), balancing priorities, daily operations, and mandated and core items against limited resources.
In spring 2025, during budget and workplan development, a long-term Code Enforcement Officer retired – just as the GilroyConnect (SeeClickFix) platform launched – requiring staff to defer these items to FY 2026.
On November 3, 2025, staff returned to Council to provide an update on the initiative and to receive Council direction to revive and strengthen Chapter 5D. The Council provided direction to pursue updating Chapter 5D, considering the Downtown Committee's recommendations, to seek input from property and business owners, and to return with a discussion of a possible vacancy tax.
ANALYSIS
Based upon the direction received from Council, staff has prepared draft ordinance language incorporating the Downtown Committee recommendations, which is attached to this staff report. In summary, it incorporates the following changes to Chapter 5D of the Gilroy City Code:
1. Removes the sunset section of Chapter 5D. Upon the effective date of the proposed ordinance, Chapter 5D will become active again as a result of this removal. There will be no sunset provision going forward, allowing for active enforcement until the Council approves a change to this chapter.
2. Includes the registration fee. The initial and annual renewal registration fee language is already contained in Chapter 5D and will become active again following the removal of the sunset section. The registration fee amount has been increased to $1,500 per year. The 10% per month interest provision for late payments is proposed to remain.
3. Amends the chapter language regarding the collection of delinquent fees, fines, interest, and penalties to allow for any and all legal remedies, and specifically identifies the ability to assess the amounts owed to the City as a special assessment to the property tax bill of the property where the violations occurred.
4. Adds the requirement of a building report card that would be placed on the property with required information, including name, telephone number, address, date the building became vacant, and any identified code violations for the building.
5. Adds a section focused on the use of plywood and the regulations surrounding it.
These provisions include the following:
9.1. a. Prohibited materials
b. Appropriate decorative artwork required
c. 90-day and one-year limitations for decoration and removal, respectively, as well as fine amounts proposed
6. Amends the definition of vacant commercial space to include a building where at least 35% of the total floor area within the building is not lawfully occupied.
7. Identifies that delinquent fees, fines, interest, and penalties may be collected via special assessments on annual property tax rolls or via liens on the property when sold.
Comparison to the Downtown Committee Recommendations
The proposed changes broadly meet the recommendations of the Downtown Committee to the City Council, with a few exceptions:
1. For displays and plywood, the recommendation was to have a code enforcement officer send a certified letter to the responsible person once the 90 days were reached. However, if included as part of the triggering language for the requirement to effectuate installations of compliant displays, a responsible person could use the claim that a letter was not received to appeal an issued citation, thereby arguing that the requirement to make the installation was not valid. Code Enforcement will issue the certified letter as part of its administrative procedures to enforce the reactivated Chapter 5D of the City Code, as recommended, but the draft ordinance is proposed to not list this step in the City Code to trigger the display installation requirement.
2. Removed the language of a design being “respectful”, as this term is subjective and hard to enforce. Further administrative rules and regulations to identify objective criteria to meet the intent will be created and maintained pursuant to Chapter 5D.3.
3. In-use and occupancy descriptions in the existing Chapter 5D meet the intent of the language on occupancy in the recommendation of the Downtown Committee and are proposed by staff to remain as-is in the revitalized code.
4. The Downtown Committee’s recommended vacant building definition of 35% of a building being unoccupied or not open for business or open to the public was modified slightly. While the intent is clear, it leaves room for interpretation regarding how the 35% is measured and raises concerns about how to account for occupants that are either non-customer-facing or back-office in nature.
However, the 35% floor space provision was incorporated into the definitions of vacant commercial spaces (Chapter 5D.4) and includes language about floor space not being lawfully occupied. This is consistent with the code language from the recommended comparison city’s code that uses 35% as the measure, from the Downtown Committee’s referenced policies.
9.1. Vacancy Tax
Staff is recommending to Council to defer any decision on a vacancy tax until a future ballot. As previously reported, the San Francisco vacancy tax has been legally challenged, and a decision was rendered against it. The City and County of San Francisco has appealed the decision, but no resolution has been reached. It was previously recommended by our City Attorney’s Office to delay pursuing a vacancy tax until the matter is decided.
Further, Council would still need to determine how the funds from such a tax would be used, whether to pursue it as a general or special tax, and the voting threshold for adoption.
Additionally, staff is recommending against such a measure for the upcoming ballot due to the number of ballot measures the City is presenting to voters, including the Transient Occupancy Tax increase and the Sales and Use Tax increase, as well as any other ballot measures from other local and regional agencies.
Staff proposes to commence enforcement of a restored and enhanced Chapter 5D, and if the result does not achieve a level of improvement that is acceptable to the Council, the matter of a vacancy tax may be taken up again in the future.
Property and Business Owner Input
Staff conducted two meetings for property and business owners, one in-person and one held virtually. Staff also set up an online survey to receive input about the proposed vacancy and plywood measures.
There were 11 attendees across both meetings. Overall, comments were negative towards a vacancy tax, but were largely supportive of code compliance and fees for regulating plywood use. Use of a registration system with fees for vacant buildings was met with concerns from participants at both meetings.
Through the engagement process with property and business owners, a few trends in responses are evident. Overall, comments are positive about pursuing a means to control plywood use, keeping it to the minimum necessary, and improving the condition of downtown and the perception of security, attracting new businesses that will fill vacancies and encouraging foot traffic in downtown. Regarding the fees and fines for plywood, no specific comments opposing the amounts proposed by the Downtown Committee were raised.
Alternatively, input on vacancy regulations was mixed, particularly regarding the associated fees and fines. Some comments were supportive in noting that some property owners have indeed held property without pursuing tenants to fill the vacancies. While there may be several incentives possible for this, the overall sentiment is that it damages downtown development and vitality. There were supportive comments from some attendees, suggesting that property owners who leave their buildings vacant for extended periods should face fees and fines to encourage the
9.1. acquisition of tenants. There were also comments arguing the opposite, that there were concerns that even actively marketed properties can take time, including over a year, to attract a tenant in the downtown. Comments were raised that the fee amounts are punitive and too costly for property owners who are actively trying to fill their buildings.
A few attendees suggested a progressive fee structure for vacancy registration. This would facilitate a small fee initially when a property is vacant to cover some of the costs of the program, but as years pass, the fee amount increases to help encourage leasing and finding tenants, as well as addressing the cost of code enforcement inspections of longer-term vacancies that may have more deterioration or code compliance issues due to the longer-term vacancy.
There was also a discussion about granting an exemption for properties that are actively being marketed or are under construction/improvement.
Input received regarding the vacancy tax has been mostly negative, with only a few supportive comments. However, based on the comments, there may have been a blurring of concepts between a registration fee and a tax structure.
City staff also created an online survey for business property owners to provide input on a potential vacancy tax, plywood regulations, and general comments and responses to the proposed programs. Overall results are mixed, with some in favor of the vacancy tax and others opposed, and a similar mix of responses regarding the anticipated effectiveness of these measures in resolving the problem.
As part of the process, other suggestions were raised that are not directly linked to plywood and vacancy regulations, but present possible opportunities to help address the overall conditions in downtown and business encouragement to fill vacancies outside of such regulations. Those comments have been shared with economic development and other associated departments for consideration in the City's ongoing service and operations.
Staff Recommendations
Staff is recommending the following to Council:
1. Direct the incorporation of the Downtown Committee recommendations into Chapter 5D, with the following exceptions:
a. Amend the vacancy registration and renewal fee structure to be a progressive fee structure based on the length of time the building has been vacant. Proposed fees would be based on contiguous vacancy, and are recommended to have the following structure, loosely based on amounts provided in the Downtown Committee’s recommendations:
i. Year 1 (or portion thereof) initial registration: $750 ii. Year 2 and each year thereafter: $1,500
9.1. b. Remove the 35% reference inclusion for determining a vacant building.
The description in the existing Chapter 5D, specifically sections 5D.4 and 5D.6, provides that the provisions of the chapter apply to any portion of a commercial space, defined as any non-residential structure in the downtown districts, and the criteria for what is considered occupancy. The example code language for the 35% being open for business or the public can be a point of dispute for how to interpret it.
2. Direct staff not to pursue a vacancy tax at this time, due to the reasons described earlier in this report.
ALTERNATIVES
Council may:
1. Provide direction to cease the pursuit of the proposed vacancy and plywood regulations. Council may choose not to enact any changes to the City code for these issues. Staff would continue to implement a focus on downtown code compliance to address blight and other adopted codes that affect the safety and maintenance of downtown properties.
2. Direct staff to pursue only one of the initiatives. If Council determines to pursue only one of the initiatives, staff would recommend pursuing the plywood regulations as part of an enhanced focus on code compliance downtown, which may help address concerns about the aesthetic of downtown affecting tenant interest in filling vacancies.
3. Direct staff to adjust the amounts of the registration fees or fines to be charged.
This is an option for the Council to determine in its discretion. The proposed amounts are based on the recommendations of the Downtown Committee.
4. Direct staff to pursue the vacancy tax. This is not recommended due to the competitive status with other ballot measures, the discussions needed on the terms of the tax, and the pending legal challenge that may affect the viability of a potential Gilroy vacancy tax.
FISCAL IMPACT/FUNDING SOURCE
There will be a small advertising fee associated with the legal advertisement for the public hearing related to the adoption of the ordinance. Staff time will be used to implement the identified proposed programs, as well as any additional regulations that Council may direct. There are currently no additional financial costs or budgetary actions required for this item.
PUBLIC OUTREACH
This item has been discussed as part of the City Council’s strategic planning process, the November 3, 2025, regular meeting, and was included on the publicly posted agenda for this meeting. Additionally, there have been two input meetings with business
9.1. and property owners, and a survey was advertised by mail to all business and property owners in the City’s downtown.
Depending upon Council direction, there will be a legal advertisement issued to announce the public hearing for any ordinance amendment, as well as outreach to property and business owners regarding the implementation of any changes Council enacts.
NEXT STEPS
Staff will develop a draft ordinance and return to the City Council for the ordinance's introduction and adoption to implement any direction received.
Attachments:
1. Draft Gilroy City Code Chapter 5D with Edits
Gilroy City Code
5D.13 Sunset.
The Gilroy City Code is current through Ordinance 2025-11, passed December 8, 2025.
Chapter 5D
VACANT COMMERCIAL SPACE IN THE DOWNTOWN HISTORIC AND
DOWNTOWN EXPANSION DISTRICTS
Sections:
5D.1 Purpose.
5D.2 Scope.
5D.3 Administration.
5D.4 Definitions.
5D.5 General minimum maintenance requirements.
5D.6 Vacant commercial space registration.
5D.7 Window displays for commercial spaces not occupied for ninety (90) days. 5D.8 Regulations on the use of plywood.
5D.89 Fees for vacant commercial space registration.
5D.109 Delinquent registration fees, fines, interest, and penalties—Collection. 5D.110 Duty to amend registration statement.
5D.121 Inspections.
5D.132 Enforcement.
5D.13 Sunset.
5D.1 Purpose.
Commercial buildings that are vacant for an extended period of time may adversely affect surrounding businesses, detract from the appearance of a vibrant downtown, and may contribute to blighted conditions that negatively impact the entire community. The purpose of this chapter is to minimize these adverse effects by preserving and improving the appearance of downtown Gilroy by requiring ground-floor windows of vacant commercial buildings in the Downtown Historic and Downtown Expansion Districts to be aesthetically pleasing when viewed from the street and sidewalk. (Ord. No. 2012-02, § 1, 2-6-12)
5D.2 Scope.
The provisions of this chapter shall apply to all structures in the Downtown Historic District and the Downtown Expansion District, unless otherwise stated, including, but not limited to, properties that have been the subject of a foreclosure sale wherein title has been transferred to the beneficiary of a deed of trust involved in the foreclosure, and to any properties transferred under a deed in lieu of foreclosure or sale. All responsible persons shall comply with the requirements of this chapter. (Ord. No. 2012-02, § 1, 2-6-12)
5D.3 Administration.
This chapter will be administered by, and may be enforced by, the community development director or his or her designee, who may adopt administrative rules and regulations consistent with its terms. (Ord. No. 2012-02, § 1, 2-6-12)
Gilroy City Code
5D.13 Sunset.
The Gilroy City Code is current through Ordinance 2025-11, passed December 8, 2025. 5D.4 Definitions.
For the purposes of this chapter:
“City” means the City of Gilroy.
“Commercial space” means any portion of a structure in the Downtown Historic District or Downtown Expansion District that is not intended for residential use. “Downtown Historic District” and “Downtown Expansion District” mean the respective zoning districts of the city, as defined in the Gilroy Zoning Ordinance. “Occupied”. A commercial space is deemed to be “occupied” when a permitted, nonresidential tenant or user resides in or is physically located in, and is lawfully and actively operating in, the space for at least thirty (30) days and meets the proof of physical occupancy criteria as set forth in Section 5D.6(fg).
“Responsible person” means any person, firm, association, corporation, business entity, trustee, or receiver, or agent thereof, which owns, leases, rents or has lawful possession of a structure in the Downtown Historic District or in the Downtown Expansion District. “Vacant commercial space” means any portion of a street-level commercial space that is not occupied and has not been occupied for a period of ninety (90) consecutive days at the time the ordinance codified in this chapter becomes effective or any time thereafter, or a building where at least 35% of the total floor area within the building is not lawfully occupied. (Ord. No. 2012- 02, § 1, 2-6-12)
5D.5 General minimum maintenance requirements.
Responsible persons shall at all times maintain all structures they own, lease, rent or lawfully possess in the Downtown Historic District and Downtown Expansion District pursuant to the Gilroy City Code, the Gilroy Zoning Ordinance and the current construction codes contained in Chapter 6, as amended by the city council. (Ord. No. 2012-02, § 1, 2-6-12) 5D.6 Vacant commercial space registration.
(a) At least one (1) responsible person for each vacant commercial space must register that space with the city in accordance with this chapter within ten (10) consecutive days of the date the space becomes vacant commercial space.
(b) In order to register a vacant commercial space, as required by this chapter, a responsible person must submit to the community development director, or his or her designee, all of the following information in writing:
(1) The street address and assessor’s parcel number of the vacant commercial space; (2) The name, address, and daytime and evening telephone numbers of each responsible person for the vacant commercial space, including any owner or tenant;
Gilroy City Code
5D.13 Sunset.
The Gilroy City Code is current through Ordinance 2025-11, passed December 8, 2025. (3) The period of time the vacant commercial space is estimated to remain vacant; and (4) Any other information requested by the community development director or his or her designee for the administration of this chapter.
(c) The registration of a vacant commercial space subject to this chapter must be renewed annually no later than January 1st of each year that the space was vacant. (d) The registration of a vacant commercial space subject to this chapter must be renewed within ninety (90) consecutive days of its change of ownership. (e) Initial and renewal registrations must be submitted on forms to be provided by the community development director, which forms shall be filled out completely and signed by at least one (1) responsible person.
(f) Building Report Card. Upon completion of registration, the department shall produce a sign no less than 18" x 24" posted on the front of the exterior building or structure so it is legible from the public-right-of-way with the following information: (i) name and twenty-four hour contact telephone number and address of the owner, responsible party, or property management company; and (ii) the statement that "THIS PROPERTY MANAGED BY" with the appropriate name inserted and "TO REPORT PROBLEMS OR CONCERNS CALL" with the twenty-four hour telephone number listed. The sign shall also identify the date the structure became vacant and identify any building or city code compliance violations requiring correction. (fg) Upon satisfactory proof to the community development director, or his or her designee, that a vacant commercial space is and has been occupied for at least thirty (30) consecutive days, the vacant commercial space will be unregistered. Proof of physical occupation may include, but is not limited to, proof of the presence of usable furniture, office equipment, retail inventory or other equipment and inventory in the street-level commercial space that is consistent with the structure’s intended use, and the regular presence of persons using the street-level commercial space for its intended use. Proof of physical occupancy must also include documentation of occupancy, which may include, but is not limited to, an executed lease agreement, or valid state and local business licenses indicating the subject space is the official business address of the person or business claiming occupancy.
(gh) The determination of the number of vacant commercial spaces a structure contains for purposes of registration will be made by the community development director or his or her designee. The number of vacant commercial spaces will be determined by the physical areas that have separate entrances to the commercial space from a public entry or a joint tenant corridor and/or entry to the commercial space.
(hi) The provisions of this chapter shall not apply to a vacant commercial space if the following apply:
(1) The window display area space is the subject of a current, valid building permit for repair or rehabilitation and the responsible person provides proof, such as receipts, invoices or executed contracts, that the repair or rehabilitation is proceeding without significant delay. (Ord. No. 2012-02, § 1, 2-6-12)
Gilroy City Code
5D.13 Sunset.
The Gilroy City Code is current through Ordinance 2025-11, passed December 8, 2025. 5D.7 Window displays for commercial spaces not occupied for (90) ninety days.
Whether or not a vacant commercial space is registered pursuant to this chapter, if any commercial space in the Downtown Historic District or Expansion District has been unoccupied for more than ninety (90) consecutive days at the time this chapter becomes effective or any time thereafter, then responsible persons shall immediately construct and/or install at least one (1) of the following types of displays on or inside all ground-floor windows that face sidewalks, streets, alleys, or public open spaces:
(a) Faux window dressings containing goods or services with the visual characteristics of a vibrant business using background panels or other methods to screen views of the unoccupied space from the street, sidewalk and public areas;
(b) Works of art or other displays of cultural, historical, or educational value, using background panels or other methods to screen views of the unoccupied space from the street, sidewalk and public areas;
(c) Window paintings featuring visually appealing scenes depicting or suggesting business or cultural activities;
(d) Drywall, sheeting, plastic, butcher paper, plain paper or other raw coverings are strictly prohibited. All windows, openings, doors, facades, awnings, must be finished in appearance or in compliance with at least one of the above methods; or
(de) Other measures consistent with these examples, if approved in writing by the community development director or his or her designee, in his/her discretion. (Ord. No. 2012-02, § 1, 2-6- 12)
(f) Any decorative artwork and mural designs proposed for use must be appropriate for all ages in the community. The community development department will provide examples of appropriate designs to interested, responsible persons. 5D.8 Regulations on the use of plywood.
(a) Plywood may be utilized if the building façade needs to be removed, or as a temporary measure to restrict unpermitted entry when doors, windows, or other potential entry points are exposed and need to be secured.
(b) Plywood must be decorated in compliance with the requirements provided in Chapter 5D.7.
Such decoration shall be completed within 90 days of installation. (c) Plywood must be removed after one-year from installation. (1) No additional permits will be approved until any active permit is completed, the temporary front is removed, and all applicable fines are paid. (2) Properties may request a one-year extension if there are extenuating circumstances. The community development director, or their designee, may approve such extensions in writing, at their discretion.
Gilroy City Code
5D.13 Sunset.
The Gilroy City Code is current through Ordinance 2025-11, passed December 8, 2025. 5D.98 Fees and Finesfor vacant commercial space registration. (a) Commercial space registration. At least one (1) responsible person shall pay an annual registration fee for each registered vacant commercial space that is separately owned or leased.
In the case of a newly constructed or remodeled building in which individual spaces are not separately owned or leased, a single initial and annual registration fee shall be paid to cover all commercial spaces within the building. At least one responsible person must pay an initial registration fee to the city at the time the space is registered, and must pay an annual renewal registration fee by January 1st each following year that the space or spaces remain vacant.
Registration fees will not be prorated. These registration and fee requirements are applicable to any vacant commercial space in the Downtown Historic District or Expansion District that at the time the ordinance codified in this chapter becomes effective or any time thereafter. The fees will be as follows:
(1) Initial registration: one thousand five hundred twenty dollars ($1,5200.00). (2) Annual renewal registration: one thousand five hundred twenty dollars ($1,5200.00). (3) The fees are intended to defray the costs of administering this chapter and may be changed by the city council to meet these costs. (Ord. No. 2012-02, § 1, 2-6-12) (b) The fees are intended to defray the costs of administering this chapter and may be changed by resolution of the city council to meet these costs. (Ord. No. 2012-02, § 1, 2-6-12)(b) Failure to register, or renew the registration of, vacant commercial space in violation of Chapter 5D.6 shall incur a fine of one hundred fifty dollars ($150.00) per week, or portion thereof, until compliance with the registration requirements is complete.
(c) Plywood, or any portion thereof, that remains undecorated after 90 days in violation of Chapter 5D.8 (b) shall incur a fine of five hundred dollars ($500.00) per month or portion thereof.
(d) Plywood that remains beyond one year after installation in violation of Chapter 5D.8 (c) shall incur a fine of two hundred fifty dollars ($250.00) per month, or portion thereof, until all plywood is removed.
(e) Any other violation of this code shall incur a fine as detailed in Chapter 1.7 of the Gilroy City Code.
5D.109 Delinquent registration fees, fines, interest and penalties—Collection. (a) If a responsible person fails to pay the registration fee by the due date, the city is authorized to take action to collect the registration fee including a ten percent (10%) per month late payment penalty and its costs of collection, including attorneys’ fees, by use of any and all available legal means; in which case such penalties and costs incurred by the city as a result of the collection process will be assessed to the responsible person or responsible persons in addition to the registration fee. (Ord. No. 2012-02, § 1, 2-6-12)
Gilroy City Code
5D.13 Sunset.
The Gilroy City Code is current through Ordinance 2025-11, passed December 8, 2025. (b) The city may pursue any and all legal and equitable remedies for the collection of fees and fines, including interest and penalties.
(c) Delinquent fees, fines, interest, and penalties may be recorded as a lien or special assessment against the property on which the code violation occurred. Prior to recording a lien or special assessment, the city shall prepare a cost report itemizing the amount owed by the responsible person. The city shall comply with the State Board of Equalization or any other state or county law pertaining to the recording of any delinquent fines, interest, and penalties as a lien on the property, or as a special assessment.
(d) The administrative citation process described in this chapter does not preclude the city from recovering any code violation abatement cost incurred by the city in performing its code enforcement efforts.
5D.110 Duty to amend registration statement.
Responsible persons for any registered vacant commercial space shall advise the community development director or his or her designee, in writing, of any changes to the information on the registration form within thirty (30) consecutive days of the occurrence of the change. (Ord. No. 2012-02, § 1, 2-6-12)
5D.121 Inspections.
The community development director or his or her designee, or code enforcement officers, or both are authorized to conduct inspections to enforce the provisions of this chapter. (Ord. No. 2012-02, § 1, 2-6-12)
5D.132 Enforcement.
(a) The city may enforce the provisions of this chapter by any of the provisions of the Gilroy City Code, which are in addition to any other remedies provided for by law. Said remedies shall be cumulative and not exclusive.
(b) It shall be unlawful for any responsible person to violate or fail to comply with any provisions of this chapter. Each responsible person commits a separate offense for each and every day they commit, continue or permit a violation of any provision of this chapter. (c) Any responsible person violating any of the provisions of this chapter shall be deemed guilty of an infraction, and upon conviction, shall be punished as set forth in Government Code Section 36900, as it now exists or may hereafter be amended.
(d) All responsible persons are jointly and severally responsible with respect to compliance with all provisions of this chapter and for any payments required to be made to the city under this chapter, including but not limited to registration fees, late penalties, and costs of collection and enforcement, including attorneys’ fees and costs. If the commercial space is subject to a lease,
Gilroy City Code
5D.13 Sunset.
The Gilroy City Code is current through Ordinance 2025-11, passed December 8, 2025. the city shall have discretion to determine whether to enforce this chapter against the commercial space owner, the tenant, or both of them. (Ord. No. 2012-02, § 1, 2-6-12) 5D.13 Sunset.
The provisions of this chapter shall apply to any vacant commercial space in the Downtown Historic District or Expansion District that has been unoccupied for more than ninety (90) consecutive days at the time the ordinance codified in this chapter becomes effective or any time thereafter. Further, the provisions of this chapter shall terminate on the same termination date of the Seismic Safety Ordinance No. 2011-07 and be of no further force and effect, unless extended by a resolution of the city council. (Ord. No. 2012-02, § 1, 2-6-12)
11.1. City of Gilroy
STAFF REPORT
Agenda Item Title: Consideration of Options for Displaying Commemorative Flags at City Hall or the Civic Center Complex
Meeting Date: May 18, 2026
From: Matt Morley, City Administrator
Department: Public Works
Submitted by: John Doughty, Public Works Director
Prepared by: John Doughty, Public Works Director
STRATEGIC PLAN GOALS: Not Applicable
RECOMMENDATION
Receive this report, consider community input, discuss and provide direction to staff regarding:
1) The possible installation of a new (third) flagpole for displaying commemorative flags at City Hall/ Civic Center Complex; and
2) Provided a majority of City Council supports the installation of a new (third) flagpole, direct staff to return with revisions to the City's Flag Flying Policy which could include allowing the display of Sister Cities flags, the City Flag as well as other commemorative flags.
EXECUTIVE SUMMARY
On February 23, 2026 the City Council considered a FAIR Memo submitted by Council Member Ramirez seeking support for installation of a third flagpole for display of commemorative flags and a potential Flag Flying Policy modification to address display of flags on the new flagpole. City Council, by consensus, authorized staff to evaluate potential setting and costs of installing a new flagpole at City Hall or the Civic Center complex to display commemorative flags per the City Council Flag Flying Policy. Staff has identified multiple options for the commemorative flag display and rough cost
11.1. estimates for City Council's consideration. Per the FAIR Memo request, Policy revision is contingent upon the addition of a third flagpole.
BACKGROUND
On May 17, 2021 the City Council adopted a City of Gilroy Flag Flying Policy. This Policy, among other things, established a process to consider applications for displaying commemorative flags at City Hall.
On February 7, 2022, the City Council approved a resolution adopting amended and restated City of Gilroy Flag Flying Policy. The Policy retained provisions for consideration of applications for displaying commemorative flags at City Hall.
Since establishment of the Policy, the City Council has approved an annual display of a commemorative flag over four fiscal years.
On February 23, 2026 the City Council considered a FAIR Memo submitted by Council Member Ramirez. The Memo sought City Council support to evaluate siting and funding of a new flagpole at City Hall or the Civic Center complex to display commemorative flags along with revisions to the City Flag Flying Policy should the City Council choose to install a new (third) flagpole.
On February 23, 2026, the City Council supported the request and directed staff to return at a future date to discuss options for placement of a third flagpole for displaying commemorative flags as well as to provide direction on revisions to the City Flag Flying Policy.
ANALYSIS
A. Existing Conditions
There are presently two flagpoles which are located on the eastern exterior of the Council Chambers (City Hall). The flagpoles have traditionally been used to display the U.S. (American) flag and the California State flag. The flagpoles are the same height requiring staff to stagger the height of the State flag manually. When displayed, a commemorative flag has been displayed under the State flag—separate and each lower than the U.S. flag. Presently, there is an ADA accessible area easterly of the flagpoles which can be used for small community/civic gatherings.
An assessment of the existing flagpoles reveals the following:
• Poles are fiberglass, aging and lack modern fixtures (interior housed and mechanized rigging).
• Poles offer limited visibility from the street and parking lot due to the existing tree canopy and proximity to the emergency generator enclosure
11.1. • There is currently no ADA accessibility for a community member/group (to participate in the raising or lowering of flags)
• Some minor work is needed to address ADA accessibility at the gathering area B. Alternatives
1. City Hall
As was noted previously, the Fair Memo suggested that the City Council consider adding a third flagpole to the right (looking from the parking lot) of the pole which displays the State flag. Staff estimates the “bare minimum” cost of adding a third flagpole at City Hall at approximately $7,000. This includes purchase of a new flagpole, installation of the flagpole, removal of the smaller tree and repair of pavers at adjoining gathering area. Given the material, age and condition of the existing poles, staff would strongly recommends the City Council consider replacing the two existing flagpoles at the same time at a cost of approximately $10,000.
Staff has considered an expanded alternative for City Hall which would include the installation of three new flagpoles near the existing location at City Hall, expansion/renovation of the gathering plaza with ADA access to the flagpoles and new decorative landscaping. A very rough cost estimate for this variant is $50,000.
Given the existing conditions at City Hall staff took the opportunity to evaluate options for a new commemorative flagpole separate from City Hall, but within the Civic Center complex. Should the City Council choose to consider options outside the City Hall site, staff offers the following:
2. Civic Center Paseo
Round Planter. There is an existing elevated round planter located in the paseo between the Library, City Hall and the City Hall Annex (Wheeler Gymnasium). With removal of a single oak tree, a commemorative flagpole could be added. The paseo is fully ADA accessible and often is the site for community events. Staff estimates the cost at approximately $6,000. This option would not provide community access to the flagpole given the raised planter.
Paseo Adjacent Site. A single flagpole could be installed at several locations adjacent to the paseo. The paseo area is available for gathering and is ADA compliant. The option would likely require removal/relocation of a pedestrian light fixture and bench. This option would provide community access to the flagpole.
Note: Both of the paseo locations could accommodate up to three flagpoles (allowing eventual removal of City Hall flagpoles) should the City Council desire to eventually shift to a single Civic Center flag display area. The cost of this alternative is principally driven
11.1. by the cost of purchase and installation of flagpoles (one or three). Cost estimate for three flagpoles is approximately $16,000.
3. Flag Flying Policy
As was noted previously, the FAIR Memo first seeks City Council approval of a third flagpole. In conjunction with that approval, the Memo, suggests possible revisions to the City's Flag Flying Policy including allowing the flags of Sister Cities to be displayed.
Assuming the City Council authorizes a third flagpole, staff is seeking specific direction and input regarding the display of flags on the additional flagpole. Staff can return to the City Council prior to installation of the new flagpole for consideration of revisions. Policy revision work falls within normal duties of the staff and is covered by the applicable operations budget.
ALTERNATIVES
The City Council could choose to maintain the existing two flagpole arrangement and implement the Commemorative Flag Policy utilizing the existing "State" flagpole for display. This action would be consistent with past practice and require no revision to the Flag Flying Policy or additional General Fund commitment.
The City Council could direct staff to proceed with planning for the installation of a third flagpole at City Hall for commemorative flag displays. The project would ultimately require a budget amendment to allocate resources to implement. If the new/renovated civic plaza option is chosen, staff would need to develop conceptual plans and cost estimates prior to returning for budget authority. Based upon direction given tonight, staff would proceed with preparing a revision to the Flag Flying Policy.
The City Council could direct staff to proceed with planning for the installation of a third flagpole in the Civic Center Paseo area for commemorative flag displays. The project would ultimately require a budget amendment to allocate resources to implement.
Based upon direction given tonight, staff would proceed with preparing a revision to the Flag Flying Policy.
FISCAL IMPACT/FUNDING SOURCE
Currently, there is no funding allocated for the installation of a new flagpole for the commemorative flag display. The purpose of this item is to seek Council direction on the installation of a new flagpole for commemorative flag(s). Depending upon the direction given, staff may return to the City Council for a budget amendment, costs of which can be paid for using the Facilities Fund or the General Fund. Cost estimates provided do not include direct staff costs or lost opportunity cost of re-prioritization.
PUBLIC OUTREACH
11.1. In February, the City Council discussed the Fair Memo and provided community notice of the intent to return to City Council for formal discussion on this matter.
NEXT STEPS
Next steps will be wholly dependent upon direction provided by City Council.
Attachments:
1. Attachments
EXISTING CITY HALL FLAGPOLES
WITH ROUGH APPROXIMATION OF THIRD POLE
PLAZA AT CITY HALL LOOKING AT FLAGPOLES
WITH ROUGH APPROXIMATION OF THIRD POLE
No Public
Access to
Flagpoles
CITY HALL PLAZA
ROUND PLANTER @ PASEO
AT-GRADE PASEO OPTION