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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: City Administrator
City of Gilroy
7351 Rosanna Street
Gilroy, CA 95020
CONTRACTOR: Executive Director
Carry the Vision
7365 Monterey Road, Suite 203
Gilroy, CA 95020
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
EXHIBIT B
SCOPE OF SERVICES
ôÍôôîôôîôŽèôæôôôîîôÍôôô
1. Services
a. Healing Circles and Peer-Led Support
ÍèÍôôôæÍFôÍ èôôîæÍôîôôô
Žôîôôôèô èôŽîôÍÍ-ôîÍ-ôôÍèô
ôôèôÍôÍÍî ÍèÍôèôŽôôôÍ
ôÍôôŽèôÍîôèô
Objectives/ Measurable Outcomes:
x iæôèŽô èîè èèôôŽÍôÍ
ôîô-ôôî@ôæî ôîô
èôèôîôèŽôôŽèôÍî
x è ôÍôôôÍèÍæ>ôæ Íèôô
èèôaÍ–"ôè and èôèôôîæÍèÍôô
x ièô ÍèÍôŽôîô-æô
èôèÍîÍÍôôôèŽôÍîôèô
ôîôÍèô ÍîæÍèô Íîô
b. Community- Based Support Groups
èÍÍôôôÍÍèèÍÍèÍè-æÍôîôèŽôæÍôîôôÍî- ôÍto
ôèÍôôÍôôôôôôôæô
aîôôÍôôŽî ÍîôÍôèŽô-oriented
ôôôôÍôÍ
Objectives/ Measurable Outcomes:
x iæôèŽô ôè ÍèèÍ îŽîÍèæÍôîôôÍîèÍ-ôÍîÍ-æÍôî
x è ô ôôôÍèèÍÍèÍ
è-æÍôîôô
x ièô ÍèÍôôôôîÍôî
è-æÍôîôôÍîÍîôôôÍÍôôôèŽô and
ôèô
c. Drop-In Peer Navigation
EXHIBIT B
SCOPE OF SERVICES
ôîÍôôî-Íô èôÍî ôô
ôèô ôôôîŽîÍôîÍŽÍôôîÍèô
ÍîÍÍîèôŽèô
îîÍôôôÍôÍèôîôÍôî
ôŽôÍîôŽô ÍÍèÍèÍÍîèô
ôÍîîôæÍôôèŽôÍîÍæô
ôôôÍîôÍîÍÍÍîŽèÍôôèÍôô
ôÍôîÍèèô ôŽèô
Objectives/ Measurable Outcomes:
x iæôèŽô èîè î -
x è ô(ÍæôÍî-Íô èôÍî
ôôèôèôôîæÍèÍôô
x ièô ÍèÍôæôèôèôîÍôŽèô
d. Weekly Collaboration and Outreach with Partners
ôîèÍæÍôÍ-æÍôîÍô Í[ôièô
ÍîôôÍŽîôèîÍôîôÍè-ÍèÍôÍ
èîôèÍô ôôôÍÍôôôîèôè
ôîôôŽèôÍîÍîîèôæÍôÍôŽô
ÍèèôèÍôIÍÍôôîæôôôŽÍôîÍÍô
ÍÍÍôÍîôŽôôÍôèôôôÍ
ÍîôèôÍôôŽôèôÍô
Objectives/ Measurable Outcomes:
x iæôèŽô èîèôôèôè-Íô
x è ô(Íæa ôÍèèÍèôîôèôè
æôôôÍôô
x ièô ôôÍèèôô
e. Weekly Outreach in High-Use and At-Risk Communities
ôôÍèîèôôôÍè-ôÍîÍôæîæôÍôôèôèÍîôèŽô
îôèîŽîÍÍæôîèôèôîÍîÍô
èÍô
EXHIBIT B
SCOPE OF SERVICES
Objectives/ Measurable Outcomes:
x iæôèŽô èîè ôôôÍè
ôèÍô
x è ô(Íæa ôÍèèÍèôîôèôè
æôôôÍôô
x ièô ÍôôÍèèÍŽîôî
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æÍôÍî
f. Trauma- Informed and Opioid Safety Training
ôŽôæÍÍÍ-ôîÍîîÍôÍÍôô
ôÍîŽôôôôèÍÍèèÍôŽô
ôèŽô ÍèŽôÍÍÍÍôôÍôîèôèÍôÍîôÍŽôîôôôÍîÍôè" æô
bÍèÍ
Objectives/ Measurable Outcomes:
x iæôèŽô ÍôôôèŽôÍÍîŽôô
ÍÍ-ôîôèŽôÍîôÍÍôÍèèô
x è ô ÍèæÍÍÍ-ôîèÍ>ôæ
èîèÍôÍô>ôæ Viè
ôŽÍÍôŽÍôŽô
x ièô ÍôôîôÍôèôÍôîôîôÍî
èîôèôôèŽô
g. Educational Workshops for Families and Community Members FæÍÍôÍîôîôîôÍîè
èÍÍÍ-ôîèÍôÍîîèôîèÍôè
ŽôîôÍîôbÍèÍÍîÍŽÍôÍôÍî
ôôÍIèîô îæôôbÍô
Objectives/ Measurable Outcomes:
x iæôèŽô èîèŽô ôÍè
ÍèÍÍîîæbÍô
x
aÍ–"
è ô ÍôèôÍîôaÍ îôŽô
ôèèôèÍèÍôôîæÍè
EXHIBIT B
SCOPE OF SERVICES
x ièô ôèôÍôîÍÍôôÍîôÍîôôî
îôôôèô
h. Community Outreach and Resource Navigation
îèôÍè-Íèôæîèîhard-to-ôÍè
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ÍŽÍôôÍ
Objectives/ Measurable Outcomes:
x iæôèŽô ôÍô îŽîÍÍî
ôèŽôôÍôÍôŽèô
x è ô îèôôôÍèæô>ôæ Íè
ôôÍÍîèô
x ièô ôôÍèôîôÍôÍôÍôôôÍôŽèô
i. Storytelling and Stigma Reduction
ôÍèŽôôÍŽôî-ôôôèôÍÍŽôFôÍ
èôÍîÍÍîÍô ôÍôîÍèôŽôÍî
îÍèÍôôèÍÍîôèŽôÍÍôô
Objectives/ Measurable Outcomes:
x iæôèŽô èôè ôÍôæè
x è ô ôèîÍîÍÍôôaÍ–iè ôô
ôÍèôŽôÍîèèôô
x ièô ÍôîôôôôîèôîÍÍîŽôî
îôÍîôèŽôOne oŽôîôôôæÍèôôŽôô
èôæôÍîôôæôôÍŽôæôô
Žôîô ÍôîèîÍthe è
2. Reporting
a. Monthly Invoice Report
ôÍèŽèôÍôæôèôôîÍŽîôîæ
ô I èÍôîÍÍôôîô ô ÍôÍî
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èôèÍèÍôîôôîÍèÍôôô that the
Žîôto theŽôÍôèô
EXHIBIT B
SCOPE OF SERVICES
b. Year-End Report
ôôÍæôÍôÍ-ôîÍôôôŽèôîôÍôôô
èÍæôÍèæôîôÍÍèŽÍèÍÍîôîÍÍ
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c. As-Needed Reports
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EXHIBIT “C”
MILESTONE SCHEDULE
EXHIBIT C
MILESTONE SCHEDULE
ôÍôôîôôîmilestones and estimated dates for completion.
1. Services
x Services will be in the planning and training phase, to last from contract commencement through February 2026. The milestone to complete training and planning is February 28, 2026
x Implementation of the Services shall commence March 2, 2026, and run through December 31, 2026.
x ôÍŽèô"ôèôæô 2026 will be due January 15, 2027.
2. Reporting
a. Monthly Invoice Report
Each monthly invoice must include the corresponding monthly report before the invoice can be processed.
b. Year-End Report
The CITY will submit the Year-End/ Final report form in November of 2026 to Contractor. The Year-End/ Final report will be due at the same time as the ÍŽèô"ôèôæô îôJanuary 15, 2027.
c. As-Needed Reports
Any additional reports will have their own deadlines, which shall be established with reasonable timeframes for completion, based on the level of work required to complete them.
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EXHIBIT “D”
PAYMENT SCHEDULE
EXHIBIT D
PAYMENT SCHEDULE
This contract is a time and materials contract, with invoicing to be issued to CITY no more frequently than once per month, but no less than once per quarter. The invoice shall identify pay rates and hours of labor, as well as costs incurred as provided in the Scope of Work, and other approved costs as may be determined in writing by both parties. Payment terms are net 30 days.
Invoices shall identify which of the services and tasks of the project that each cost applies to, as well as tying the invoice amounts to the invoicing informational form that will be provided to the CONSULTANT by the CITY.
City of Gilroy
STAFF REPORT
Agenda Item Title: Award Two Opioid Remediation Grants, not-to-exceed $118,675 to Carry the Vision and $118,676 to Youth Alliance, for Opioid Remediation Services; Adopt a Resolution
Amending the Fiscal Year 2026 Budget in the Opioid
Settlement Fund by $237,352; and Authorize the City
Administrator to Negotiate and Execute Final Grant
Agreements
Meeting Date: November 17, 2025
From: Brad Kilger, Interim City Administrator
Department: Administration
Submitted by: Bryce Atkins, Assistant to the City Administrator Prepared by: Bryce Atkins, Assistant to the City Administrator STRATEGIC PLAN GOALS: Not Applicable
RECOMMENDATION
Council:
1. Award two opioid remediation grants, reimbursement-based and not to exceed $118,675 to Carry the Vision and $118,676 to Youth Alliance, for opioid remediation services;
2. Adopt a resolution amending the Fiscal Year 2026 Budget in the Opioid Settlement Fund by $237,352; and
3. Authorize the City Administrator to negotiate and execute final grant agreements.
BACKGROUND
In response to the national lawsuits and bankruptcies surrounding the production and distribution of opioids, such as Fentanyl, for example, nationwide settlement and bankruptcy agreements were created as part of those processes, and cities and counties throughout the nation were able to sign on to the agreements to receive some
of those funds. The City of Gilroy signed onto those agreements and now accepts payments from the administrators overseeing those settlements.
The individual payments are small, ranging from just a few thousand dollars to approximately $42,000, the most significant amount, although these large amounts are rare. In the budget process, staff do not project payments from these agreements, as the amounts are not known in advance and can vary significantly regarding the amount and timing of the payments.
The use of settlement funds is required to meet conditions in the settlement agreements and is regulated by the State of California and the appointed Trust Administrator. There are several categories of uses, but many of the services described in them are not commonly present in Gilroy. Opioid remediation and prevention is not a program offered by the City, and the City is neither equipped to create such a program nor knows if it would be viable.
The only expenditure against these funds was a purchase of naloxone (also known as Narcan) for distribution to Police and Public Works staff in case they encounter someone in the public experiencing an overdose condition. Aside from that purchase, there has not been any additional use of these funds. The fund currently has a fund balance of $237,352.12.
Staff had received an inquiry and an unsolicited proposal from a local organization seeking to use the funds. However, the City's purchasing policy requires competitive procurement. Without specific programming and knowledge of the available vendors and programs in the area, staff requested, and the Council approved, the issuance of an exploratory request for proposals (RFP). The exploratory RFP was an open solicitation process for vendors who believe their services align with the intent of the funding being made available, without limiting proposals to a specific program or service.
ANALYSIS
As presented to the Council at the September 8, 2025, regular meeting, the evaluation of proposals was first vetted by City staff to ensure they meet the funding requirements and to offer a recommendation for grant awards. Those proposals that meet the requirements would then be presented to the Council, which would determine which awards are made.
The City received six proposals, which are attached to this staff report and discussed briefly below, and all meet the intent of the funds.
Proposals Received
The City received the following proposals, listed in order from highest to lowest average screening score. Although staff are presenting the amounts for each proposal, the basis of the staff's recommendation was on the services being provided, matched to the funding requirements, and suitable to the community, rather than the lowest cost.
Organization Evaluation
Average Score
Proposal
Amount
Carry the Vision 81 $118,675
Youth Alliance 81 $118,676
End Overdose 79 $72,238
Catholic Charities 77 $129,330
Sunday Friends Foundation 63 $73,889
Bay Area Community
Health 56 $125,000
Each of these proposals accomplishes a different assortment of services. Below is a rough identification of services being proposed by each organization. The breakdown is rough due to differences in descriptions of the various programs in each proposal:
Firm
Naloxone
Distribution/
Overdose
Prevention
Education/
Prevention
MedicationAssisted
Treatment
WarmHandoff/
Recovery
Services
Syringe
Services
OUD
Treatment/
Support
those in
treatment
Diversion
Program
Programs
Offered
Bay Area
Community
Health
X X X X X 5
Youth Alliance X X X X X 5
Carry the
Vision X X X X 4
Sunday
Friends
Foundation
X X 2
Catholic
Charities X 1
End Overdose X 1
Special Considerations
There are a few considerations that played in the screening scores as well as staff's recommendation:
• Bay Area Community Health. While matching Youth Alliance for the largest number of programs offered, including medication-assisted treatment for opioid abuse, the proposal identified that participants are selected based on their existing status as patients or those receiving referrals from other medical professionals and specific sources. A general resident could not participate in their programs. This limits the utility of their programs in addressing the community-wide needs of residents who require support.
• End Overdose. End Overdose had a quality proposal, but the service delivery is dependent upon finding partners to deliver the program. The organization is based in Southern California, and there is a risk that insufficient partnerships will be
created to deliver their train-the-trainer model of service delivery. • Sunday Friends Foundation. The proposal requires city staff participation, namely, community service officers for certain components, and recreation staff for referrals.
Given that the RFP was intended to have the potential firms provide the services and operate independently, this proposal is not feasible as the City's staff in these positions already carry a significant task load and are not available to support the functions. Additionally, it places the firm in a position where, if insufficient participants are found, it could claim that the City did not perform the referral functions adequately.
• Carry the Vision and Youth Alliance. These two organizations submitted separate proposals, but are coordinated to provide similar programs, one for adults and the other for youth. The Youth Alliance proposal includes an additional service of providing a diversion program, which is not offered by any other proposal. These two organizations previously submitted an unsolicited proposal and sought information about the Opioid Settlement funding, which encouraged the activation of these funds.
Staff Recommendation
Staff recommends that the Council award contracts to Carry the Vision and Youth Alliance.
Their proposals have some of the largest program type offerings based on their descriptions; have already been providing services in the community; have outreach mechanisms that reach population groups that — statistically speaking — are more likely to be impacted and underserved as documented in the settlement agreements and use of funding descriptions; have coordinated services to reach families, including a youth component that would meet the area of high impact requirement for opioid funding; and proposals that, including these qualities but others, scored the highest in the proposal screening.
With the RFP process being exploratory and the high level of requirements for documentation, reimbursement, and oversight of the opioid settlement funds, the specific contract scopes of work, milestone schedules, and payment schedules must be negotiated with each organization awarded funds; only then can the contracts be executed. Staff is seeking Council approval to authorize the City Administrator to complete negotiations on the proposed agreements selected by the Council for grant awards, and to execute the contracts.
Finally, as mentioned in the background, no funds from the Opioid Settlement Fund have been appropriated in the budget. Staff has included, as part of the recommended action, a resolution for the Council to approve a budget amendment to appropriate the full balance of funds available for the FY26 budget. The unused funds, since the contracts will be based on the calendar year, will roll forward with the contract terms into FY27.
ALTERNATIVES
Council may award, modify, or reject the proposal(s).
FISCAL IMPACT/FUNDING SOURCE
$237,352.12 from the Opioid Settlement Fund (Fund 293). The funds will be expended as reimbursements for qualifying expenditures under the final contract, consistent with the requirements as imposed by the settlement agreements, the funding source for these grant funds.
PUBLIC OUTREACH
This item was first discussed at the September 8, 2025, regular City Council Meeting and was included on the publicly posted agenda for tonight. Any decision on this item will be shared through the City's e-newsletter.
NEXT STEPS
Following the Council's selection of proposals to receive grant funds, staff will complete contract negotiations and execute agreements with the awarded organizations to implement the proposed programs.
Attachments:
1. Budget Amendment Resolution - FY26 Opioid Settlement Fund
2. Proposal - Bay Area Community Health
3. Proposal - Bay Area Community Health Budget
4. Proposal - Carry the Vision
5. Proposal - Catholic Charities
6. Proposal - End Overdose
7. Proposal - Sunday Friends Foundation
8. Proposal - Youth Alliance
9. RFP for Opioid Remediation Services
October 17, 2025
City of Gilroy
Attn: Carina Baksa
Community Engagement Division
Subject: Opioid Remediation Services Proposal
Dear Ms. Baksa and Mr. Atkins,
Youth Alliance (YA) is honored to submit this proposal for the City of Gilroy’s Opioid Remediation Services funding. For nearly 30 years, YA has been a trusted community-based organization serving South Santa Clara and San Benito Counties, helping youth and families heal and lead through culturally rooted prevention and leadership programs. Our request for $118,676 represents half of the available funds and reflects our partnership with Carry the Vision (CV) to jointly implement CARE: Community Action for Recovery & Education, a community-led opioid prevention and education initiative. Through this effort, Youth Alliance will deliver youth-centered prevention, education, and healing by facilitating Xinachtli and Joven Noble groups, peer-led healing circles, and harm reduction workshops, while amplifying youth voice through creative media and outreach campaigns. Together with Carry the Vision’s adult-focused recovery work, CARE will build a comprehensive, culturally grounded response to the opioid crisis that uplifts Gilroy’s youth and families.
YA has a proven track record of managing public and private funding for youth prevention and wellness programs. For over a decade, we’ve partnered with Santa Clara County Behavioral Health to lead prevention and restorative justice initiatives, complemented by collaborations with the Santa Clara County Youth Task Force, Elevate Youth California (Prop 64), and San Benito County Probation and Behavioral Health in the neighboring county. These long-standing partnerships demonstrate our capacity to deliver equitable, evidence-based, and fiscally responsible programs that improve community outcomes.
We also confirm that we have reviewed and agree to the terms outlined in Attachment B: Standard Agreement Template included in the RFP and are committed to full compliance with requirements.
We thank the City of Gilroy for its leadership in directing opioid settlement funds toward prevention and community wellness. We welcome the opportunity to continue our long-standing service to Gilroy’s youth and families through this important initiative.
With gratitude,
Diane Ortiz, MSW Eduardo Navarro, MA
CEO COO
(831) 636-2853 Ext 123 (831) 537-6656
[email protected] [email protected]
ORGANIZATION HISTORY AND PROVEN SUCCESS
Founded in 1995, Youth Alliance (YA) is a nonprofit organization dedicated to collaborating with youth and families from rural, predominantly Latinx communities in the Central Coast (with a key focus on South Santa Clara County) who have been: (1) historically marginalized; (2) disproportionately impacted by the opioid crisis; and, (3) left without a continuum of care. Lack of access to mental health and behavioral health care has been and remains a critical issue, especially in the context of widespread opioid misuse.
Our goal is to heal individual and generational trauma so that Latinx youth and families recognize their inherent strength, cultural values, and leadership potential. They can then advocate for the full range of services their communities need. We envision a bright future where every young person from these communities can access a robust network of care and myriad pathways to prosper and thrive.
Over 30 years, YA has collaborated with young leaders and their families, public agencies, public officials, and other community partners in South Santa Clara County to establish a community hub with wraparound services, which are evidence-based, culturally responsive, and linguistically appropriate. Today Youth Alliance is a deeply rooted, trusted partner serving more than 2,300 every year across South Santa Clara and San Benito Counties through substance abuse prevention, leadership development, and other wellness programs.
Our team is led by a diverse team of professionals who are bilingual and with deep experience in youth development, holistic whole person care focus, restorative justice practices, and nonprofit management. Together, our staff of over 60 facilitators, case managers, outreach specialists and youth & family advocates are trained in proven models tailored to the unique needs of rural BIPOC families.
For our work to identify risk factors and intervene early to prevent drug abuse—including opioids—we apply frameworks focused on addressing trauma, instilling healthy decision-making, and discovering resilience through cultural values. Behavioral health frameworks include Mental Health First Aid, Substance Use Prevention, Botvin Life Skills Training, and Motivational Interviewing. They are interwoven with culturally-rooted curricula that include Joven Noble, Xinachtli, Cara y Corazón, and Girasol. We are also pioneers in weaving restorative justice and mindfulness practices into whole-person care.
Moreover, YA has established a contractual partnership with Santa Clara County Behavioral Health Services for over a decade to lead in-school and community prevention and restorative justice programs that align with countywide mental health and substance use strategies. We have also implemented prevention initiatives with the Santa Clara County Youth Task Force and Elevate Youth California—the grant program administered by the California Department of Health Care Services and funded by the Regulate and Tax Adult Use of Marijuana Act (Prop 64). These long-standing partnerships reflect our ability to deliver programs that are equitable, effective, and accountable to both fiscal and performance standards.
Youth Alliance Opioid Remediation Services Proposal Project No. 26-RFP-AD-527 1
Our prevention and recovery efforts include school and community workshops on fentanyl awareness, overdose prevention, Narcan intervention use, and harm reduction practices. We coordinate youth-led campaigns and support circles that strengthen protective factors, build resilience, and promote wellness. Guided by the La Cultura Cura framework, our approach helps young people reconnect to identity, culture, and community as key pathways to healing and prevention.
After nearly three decades of service, we continue to show the capacity, trust, and commitment needed to lead effective, culturally grounded opioid prevention and education programs in partnership with our community.
PROJECT NARRATIVE
Describe how you plan to address the abatement strategy(ies). Share the project, including the timeline, a high-level overview of implementation and evaluation steps, and the intended outcomes. Describe how the project addresses opioid use disorder (OUD)-related stigma.
PROGRAM OVERVIEW
Youth Alliance (YA) will implement holistic prevention and education strategies, co-created with the communities it serves—designed to address substance use (especially opioids) among rural marginalized groups and families in South Santa Clara County. These strategies are grounded in trauma-informed, culturally and linguistically responsive practices that meet youth and families where they are. The initiative integrates substance use prevention, early intervention, and youth leadership development to strengthen individual and community resilience. Outcomes are categorized by 1) community accessible education and services, 2) in-school services, and 3) community outreach and information dissemination. Each activity supports the opioid remediation priorities outlined by Santa Clara County in the following ways:
1. Interventions to Prevent Drug Addiction in Vulnerable Youth: YA will deliver school-based prevention education, family workshops, and peer-led programs that strengthen coping skills, foster supportive relationships, and build resilience so youth can internalize healthy coping mechanisms, build peer connections, and recognize their potential—all behavioral practices that lead them away from substance use.
2. Support and Sustain Culturally Relevant Healing and Diversion Programs: Through culturally rooted models like Xinachtli and Joven Noble, YA will operate trauma-informed healing circles and leadership groups that address the underlying causes of substance use and promote healthy alternatives.
3. Diversion of People with Substance Use Disorders from the Justice System into Treatment (at risk or impacted): YA’s restorative justice and healing-centered programs provide non-punitive alternatives for youth at risk of jail or incarceration or as a re-entry resource, connecting them to mentoring, education, and culturally grounded care with trusted adults that have been native to the Gilroy area.
4. Addressing the Needs of Communities of Color and Vulnerable Populations Disproportionately Impacted by Substance Abuse Disorders: Programs are bilingual, bicultural, in-school & community-based, reaching all communities of color regardless of the Youth Alliance Opioid Remediation Services Proposal Project No. 26-RFP-AD-527 2
economic, cultural, educational, or immigration status in Santa Clara County through trusted relationships and accessible prevention services.
We have organized our work to address opioid misuse across three outcomes.
OUTCOME #1
Youth demonstrate increased knowledge, confidence, and participation in substance use prevention—especially opioid misuse—through trauma-informed education, early-intervention workshops, and access to culturally and linguistically appropriate resources.
YA will provide interactive substance abuse prevention workshops in a community setting like the Youth Impact Center, primarily focused on: (1) warning signs for early intervention; (2) use and training of Naloxone (Narcan); (3) non-judgmental ways to discuss substance abuse and its impacts; and, (4) healthy decision-making. Sessions will be age-appropriate, trauma-informed, and adaptable to both in-school and after-school spaces. YA staff will partner with educators to host sessions that respond to the unique needs of youth in the county for parents and for youth.
In addition, participating youth will be eligible for a range of resources at its Gilroy Youth Impact Center that include weekly drop-in sessions, advocacy and leadership groups, resource navigation, art workshops and family activities.
Implementation Steps
● Youth Alliance will offer weekly interactive workshops applying culturally relevant, evidence-informed, and linguistically appropriate curricula to attract and retain participants. ● At the Gilroy Youth Impact Center, YA will connect youth and families to bilingual case managers who can connect families to a range of services, including partners focused on substance abuse prevention and recovery like Carry the Vision, intensive outpatient programs, and (as needed) in-patient hospitalization.
● The Gilroy Youth Impact Center will also serve as a safe space for drop-in sessions and special family activities offered once every other month and during holidays.. Drop-in sessions offer a safe space for youth to work on homework, socialize, have access to snacks and engage in recreational activities. Special family activities include educational activities, creative workshops, listening sessions, or holiday shared meals.
OUTCOME #2
Latinx youth, families, and community members collaborate to reduce stigma surrounding substance use—particularly opioids—by fostering open dialogue, shared understanding, and leadership.
Youth Alliance will integrate opioid prevention education into ongoing healing circles and leadership development programs grounded in culturally responsive models, including Xinachtli and Joven Noble. These circles will create safe spaces for youth to reflect on personal and community experiences with substance use, grief, violence, and structural harm. Grounded in restorative practices and cultural values, these groups will foster connection, empathy, and emotional regulation while linking youth to additional support as needed. Groups will take place at a selected school and a minimum of 4 groups will take place during the contract period.
Youth Alliance Opioid Remediation Services Proposal Project No. 26-RFP-AD-527 3
Youth participating in these activities will be matched with supportive mentors and peers to cultivate leadership skills to model positive behaviors, provide a larger support network focused on substance abuse, and lead a campaign focused on reducing the stigma, especially opioid addiction.
Implementation Steps
● Youth Alliance will recruit at least 40 youth (ages 12-18) to participate in healing circles and leadership development groups through established partnerships with local schools and community organizations, as well as direct outreach in high-need areas throughout Santa Clara County.
● Healing circles and leadership development groups will meet weekly for a 10 week cohort across the selected South County school district(s) and will be eligible to join the Youth Media team, and Advocacy team at the Gilroy Youth Impact Center. ● At least 20 youth peer mentors will be trained and receive continuous coaching in cultural healing, mindfulness, and restorative practices, with a key focus on monitoring for early intervention around opioid misuse and initiating delicate and charged conversations around substance abuse.
● Restorative justice diversion practices will be integrated into the program to provide alternatives to punitive discipline for youth impacted by substance use or related behavioral issues. Youth referred through school or community diversion pathways will participate in leadership training groups and healing circles that emphasize accountability, reflection, and reconnection, helping them rebuild trust and restore relationships while learning coping and leadership skills.
OUTCOME #3
Youth-led media and advocacy campaigns increase community awareness about substance use risks and prevention strategies — emphasizing opioid education, early warning signs, and access to care through trusted and relatable messengers.
YA will expand its multi-channel public awareness campaigns aimed at raising awareness about substance abuse across the county, with a focus on the opioid epidemic. Campaign activities will target all communities in South County across generations. Accessible and relatable media will be developed to be accessible to communities of color. The design will be led by youth leaders mentored by adults versed in storytelling across media. A cornerstone of the campaign will be stories and interviews incorporated into the Our Voices podcast or short social media clips.
Implementation Steps
● YA will recruit and identify a cadre of youth leaders from programs it runs at the Gilroy Impact Center and at partner schools. We will also reach out to a variety of longstanding partners, including Gavilan College and Community Media Access Partnership to provide youth with technical skills.
● The team of youth spearheading the campaign will meet weekly to brainstorm and shape elements of campaigns.
Youth Alliance Opioid Remediation Services Proposal Project No. 26-RFP-AD-527 4
● With support from Youth Alliance staff, parent allies, and partners, youth leaders will coordinate additional in-person public awareness activities across schools, parks, and public events. Activities may include, but are not limited to, tabling events, roundtables, listening sessions, resource fairs, open forums, community workshops, and school informational sessions.
● The youth-led team will also develop 5 social media initiatives across the core platforms including Instagram, Facebook, Youtube, and X (Twitter). ● Participants will develop, produce, edit, and publish a minimum of three episodes for the Our Voices podcast, where youth share stories and conversations that elevate their voices and lived experiences. The episodes will center on substance abuse, with significant focus on the dangers of opioids. In keeping with the purpose of the podcast, they will include stories and interviews, as well as information on early warning signals, approaching sensitive and high-stakes conversations, and paths to resources.
● Mentors will assist youth leaders in compiling and interpreting feedback and data from campaigns to continue to iterate and innovate.
EVALUATION
To demonstrate a rigorous, culturally responsive approach to measuring outcomes, learning, and accountability across all project activities, Youth Alliance will use the following data collection and assessment practices:
● Quantitative tracking: Participant counts, attendance logs, pre/post knowledge surveys. ● Qualitative feedback: Restorative reflection circles, youth focus groups, and caregiver feedback used to gather stories of change and perceived shifts in stigma or wellness. ● Partner data: Partner feedback will be utilized to improve and learn for future programs. ● Continuous improvement: Quarterly team debriefs to assess fidelity to trauma-informed and culturally grounded models; mid-year adjustments documented in written summaries.
All evaluation tools and reflection activities will be linguistically appropriate and culturally accessible to ensure safe participation and honest feedback. For example, all evaluation materials distributed to participants will be available in English, Spanish, and other languages (as needed).
TIMELINE
The following is the cadence that Youth Alliance will use to execute, refine, and evaluate strategies based on the start of the contract. This timeline proposes a November 2025 start and end date of October 2026.
Nov–Dec 2025 | Program Setup and Outreach
• Finalize school partnerships with GUSD and community partners. • Meet with administrators, counselors, and parent liaisons to plan logistics. • Develop bilingual outreach materials and hold info sessions for families. • Establish evaluation tools, reporting templates, and data tracking system. • Launch introductory social media announcements and recruitment campaign.
Youth Alliance Opioid Remediation Services Proposal Project No. 26-RFP-AD-527 5
Jan–Feb 2026 | Recruitment and Group Enrollment
• Recruit youth and families for prevention workshops and leadership groups. • Conduct orientations and collect baseline data (intake forms, surveys). • Deliver staff refresher training on trauma-informed and culturally rooted facilitation. • Schedule initial bilingual parent workshops and youth information nights. • Implement 10-week culturally grounded leadership and healing cohorts (Outcome 2) either all in unicent or 2 in January and 2 in May depending on school approval.
Mar–Apr 2026 | Launch of Prevention Workshops
• Begin weekly prevention and education sessions in GUSD schools (Outcome 1). • Offer bilingual family workshops on fentanyl awareness and early intervention. • Open weekly drop-in sessions at the Gilroy Youth Impact Center. • Provide ongoing peer mentor coaching and collect interim data.
May–Jun 2026 | Healing Circles and Leadership Development • Integrate restorative justice diversion referrals from schools and partners. • Host family engagement and community-building activities at the Center. • Conduct mid-year review and program reflection with staff and Data Analyst.
Jul–Aug 2026 | Youth-Led Media and Advocacy Campaigns
• Recruit youth media team and begin planning Our Voices podcast episodes. • Develop social media campaigns focused on stigma reduction and prevention. • Partner with Communications Specialist for design and dissemination. • Host community outreach events in parks, schools, and public spaces.
Sep–Oct 2026 | Evaluation and Reporting
• Conduct post-surveys, focus groups, and reflection circles. • Compile final attendance, participation, and impact data. • Hold community celebration and youth recognition event. • Review results with leadership team and submit final report to City of Gilroy. • Develop sustainability and continuation plan for prevention programming.
Ongoing Activities:
• Weekly coordination and supervision meetings.
• Continuous data tracking and evaluation support by Data Analyst. • Monthly bilingual family engagement events and school collaboration.
POPULATION OF FOCUS
Describe the target audience impacted by your proposal. How are these targeted audiences most at risk or impacted by OUD considered in this project? How does your project address potential barriers to accessing your programming? The need for trusted, community-based prevention—especially for BIPOC youth ages 12 to 18—is urgent and well-documented. According to the Santa Clara County Medical Youth Alliance Opioid Remediation Services Proposal Project No. 26-RFP-AD-527 6
Examiner-Coroner’s Office, fentanyl is involved in more than 70 percent of accidental overdose fatalities countywide. Youth and young adults ages 15 to 29 account for a growing share of these deaths, with South County ZIP codes 95020 (Gilroy) and 95037 (Morgan Hill) showing the highest per-capita overdose rates. In Gilroy—where more than 60 percent of residents identify as Hispanic or Latinx—these losses are compounded by limited access to behavioral health care, language isolation, cultural stigma, and fear of law enforcement.
Youth Alliance programming is co-created with the community it serves and therefore directly addresses these barriers that exacerbate the opioid epidemic among Latinx youth across South County. Core pillars of our work which include healing-centered and trauma-informed practice, community co-creation, evidence-based and culturally responsive frameworks, and accessible, safe spaces, have established Youth Alliance as a trusted partner in navigating substance use and mental health challenges. Moreover, we operate in other easily accessible spaces, especially schools throughout the county. By meeting youth and families where they are—physically, in the language they use, and through internalized cultural values—YA removes the structural and psychological barriers that most often prevent Latinx communities from accessing the opioid prevention education and early-intervention services they need.
COMMUNITY NEEDS
Describe how the proposed project will meet community needs. How were those needs identified? How does your project support those most disproportionately impacted by the opioid epidemic? How will you ensure this program is culturally, linguistically, and developmentally appropriate for the proposed community(ies)? The impetus behind YA was witnessed decimation across generations by intersecting systems of harm, including the amalgamation of policies falling under the banner of the “War on Drugs.” Raised by traumatized elders and watching the cycle of trauma begin again with their children, a group of parents formed the organization to create a new path forward, one of healing, opportunity, and empowerment named Barrio Unidos. 30 years later, YA forged that path with services connecting to more than 20,000 people and providing direct services to more than 3,000 each year that (1) bolster resiliency within rural communities (2) equip generations of youth to thrive.
At the heart of all our programming is deep, participatory engagement with the community.
Through ongoing active listening—through both informal and formal channels—our programs continually evolve to reflect the lived realities and cultural values of the Latinx families we serve.
We therefore ensure that prevention and wellness programs are not brought to the community but built with it, grounded in trust, cultural values, and shared responsibility for collective well-being. Moreover, we represent our community, with the majority of staff identifying as Latinx and Indigenous and our service providers living in the neighborhoods where we implement our programs. Feedback and insight is woven into our work and formalized through longstanding collaborations with agencies, elected officials, and other nonprofit partners. Now, in the aftermath of the War on Drugs, we face the opioid epidemic and are once again first to witness and respond to its devastating impacts. We also see the barriers we must remove to prevent opioid misuse and intervene early.
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For example, many young people in South Santa Clara County, especially those from Latinx, immigrant, and low-income families, face limited access to afterschool and recreational opportunities. Many of these youth are also from hard working parents that may have experienced work related injuries with access to opioids at home while unsupervised. In Gilroy, there are few safe, supervised spaces where youth can build community, express themselves, and connect to caring adults especially if they come from a two working parent household.
Without these protective environments, young people are at higher risk of social isolation and exposure to substance use, misinformation, and under the influence of toxic role models they see on social media platforms.
We have responded by creating the Gilroy Youth Impact Center, which is designed in all aspects to be safe and to reflect cultural roots. We also address the threat by creating structured opportunities for youth to connect, learn, and lead so that they are mentors to others struggling with addiction. Moreover (and as stated above), all services are culturally, linguistically, and developmentally appropriate. We also ground our substance abuse prevention programs in evidence-informed approaches, as well as decades of experience. In addition, staff regularly refresh their skills and knowledge through Santa Clara County Behavioral Health trainings.
Accessibility is a key part of the effectiveness of our substance abuse programming. Prevention and healing programs are offered directly on school campuses during school hours, removing the need for transportation and minimizing the risks youth may face traveling long distances after class. Additionally, our Youth Impact Center is conveniently located in downtown Gilroy near public transportation routes and in a safe, well-lit area, or with caring YA staff that can transport them back home.
STAFF PLAN
What is the level of staffing for the project? Ensure accountability for carrying out work plan activities and maintaining overall support and coordination of the work. If planning to use subcontractors, please describe their responsibilities in carrying out grant activities.
The CARE initiative will be implemented by a dedicated and experienced team within YA that ensures strong program delivery, data integrity, compliance, and community engagement. The project will be coordinated by existing leadership and supported by trained direct-service staff who have years of experience providing prevention, wellness, and restorative programs in Gilroy and throughout South Santa Clara County.
The program will be led by a Program Director, who will oversee implementation, manage day-to-day operations, and ensure that all activities align with the approved work plan. The Case Manager / Prevention Specialist will facilitate culturally rooted prevention groups such as Xinachtli and Joven Noble, lead workshops on harm reduction and youth resilience, and maintain case notes, attendance records, and follow-up with participants and families. The Outreach Specialist (in-kind) will focus on engaging youth and families through community Youth Alliance Opioid Remediation Services Proposal Project No. 26-RFP-AD-527 8
events, conducting direct outreach, and coordinating group activities to maintain strong participation and visibility in the community.
The project will also receive internal support from key staff across the organization to ensure accountability and quality (in-kind). The Chief Operating Officer (COO) will provide executive oversight to ensure fidelity to contract deliverables and responsible management of grant funds.
The Director of Development & Initiatives will ensure compliance, performance tracking, and timely submission of reports to the City of Gilroy. A Data Analyst will collect, manage, and analyze quantitative and qualitative program data to evaluate outcomes and ensure alignment with grant metrics. The Communications Specialist will assist with content creation, media coordination, and promotion of youth-led prevention campaigns to enhance outreach efforts and community awareness. Additional Case Managers and Outreach Staff will provide support for group facilitation, event coordination, and family engagement as needed.
Together, this integrated staffing structure ensures that all program activities are well-coordinated, compliant with city requirements, and delivered with consistency and cultural responsiveness. With this team approach, YA will maintain clear accountability for every component of the work plan from implementation and data collection to evaluation and reporting to ensuring the success and sustainability of the CARE initiative.
SUSTAINABILITY
How will this project be sustainable beyond the proposed funding period? YA is deeply committed to sustaining this project beyond the proposed funding period through a combination of existing infrastructure, strong partnerships, and diversified funding streams. As a long-standing community-based organization with nearly three decades of service, YA has the systems, relationships, and staff capacity to continue this work as part of its broader prevention and wellness portfolio.
The Gilroy Youth Impact Center, where many of the project’s workshops and circles will take place, is a permanent community hub that YA operates year-round through a blend of public, private, and philanthropic support. This established site ensures that activities, staff, and participant engagement can continue without interruption once the grant period concludes. The Center’s location in downtown Gilroy, close to schools and public transportation, also supports long-term accessibility for youth and families.
Sustainability will also be achieved through ongoing partnerships with Gilroy Unified School District (GUSD), Santa Clara County Behavioral Health Services, and Carry the Vision. These collaborations provide access to in-kind resources such as facilities, staff training, subcontracting opportunities, and referral pathways that reduce program costs and strengthen service integration. YA will continue leveraging these partnerships to align prevention education with existing school wellness initiatives and county behavioral health strategies. Additionally, YA maintains a successful record of securing multi-year grants and government contracts for substance use prevention and youth development. The organization will continue to pursue Youth Alliance Opioid Remediation Services Proposal Project No. 26-RFP-AD-527 9
funding from state and county behavioral health departments, Elevate Youth California (Prop 64), and local philanthropic foundations to extend and expand program services. Lessons learned and data collected from this initiative will be used to strengthen future grant proposals and demonstrate measurable community impact.
Finally, by embedding prevention and stigma-reduction activities into ongoing youth leadership and restorative justice programs, YA will ensure that the knowledge, skills, and cultural practices established during this project remain part of its long-term service model. Through community ownership, cross-sector collaboration, and continued advocacy, the CARE initiative will outlast its initial grant cycle and remain a sustainable, community-driven effort to promote wellness and prevent opioid misuse in Gilroy.
WORK PLAN
Identify by name which category(ies); subcategory(ies); and each strategy under each subcategory(ies) are being utilized. Identify for each activity within the project which category it applies to and how the category is being met. Include at least one objective with action steps for each abatement strategy chosen in the project proposal.
ACTIVITY 1: Trauma-Informed, Culturally Responsive, And Linguistically Appropriate Workshops And Family Drop-In Services
Category: Prevention
Subcategory: Interventions to Prevent Drug Addiction in Vulnerable Youth Strategy: Deliver trauma-informed, culturally responsive, and linguistically appropriate substance abuse education workshops and drop-in services that integrate information about opioid misuse.
Activity Description: Youth Alliance will review, translate, and incorporate substance abuse prevention information into trauma-informed, culturally responsive workshops at schools and other community settings. They will primarily focus on (1) warning signs for early intervention; (2) use and training of Naloxone (Narcan); (3) non-judgmental ways to discuss substance abuse and its impacts; and (4) healthy decision-making. The Gilroy Youth Impact Center will host weekly drop-in sessions, resource navigation, and family activities that reinforce prevention education.
Objective: Youth demonstrate increased knowledge, confidence, and participation in substance use prevention—especially opioid misuse.
Target Date: Months 3-10
Impact: Increased youth and family awareness of substance use risks; improved early-intervention behaviors; strengthened protective factors and community connection.
ACTIVITY 2: Healing-Informed, Evidence-Based, and Culturally Responsive Healing Circles and Leadership Groups
Category: Prevention
Subcategory: Support and Sustain Culturally Relevant Healing and Diversion Programs Strategy: Operate trauma-informed healing circles and leadership groups that address root causes of substance use and promote healthy alternatives.
Activity Description: Youth Alliance will integrate opioid prevention education into ongoing healing circles and leadership development programs grounded in culturally responsive models, including Xinachtli and Joven Noble. These circles will create safe Youth Alliance Opioid Remediation Services Proposal Project No. 26-RFP-AD-527 10
spaces for youth to reflect on personal and community experiences with substance use, grief, violence, and structural harm. Grounded in restorative practices and cultural values, these groups will foster connection, empathy, and emotional regulation while linking youth to additional support as needed. Youth participating in these activities will be matched with supportive mentors and peers to cultivate leadership skills to model positive behaviors, provide a larger support network focused on substance abuse, and lead a campaign focused on reducing stigma, especially around opioid addiction.
Objective: Latinx youth, families, and community members collaborate to reduce stigma around substance abuse and addiction, particularly opioids, by fostering open dialogue, shared understanding, and leadership.
Target Date: Months 3–12
Impact: Reduced stigma and social isolation related to substance use; strengthened peer networks; increased leadership capacity among youth and families.
ACTIVITY 3: Restorative Justice Diversion and Re-Entry Support Category: Prevention / Diversion
Subcategory: Diversion of People with Substance Use Disorders from the Justice System into Treatment
Strategy: Incorporate additional information around substance abuse and opioid misuse into existing restorative justice diversion programs offered by Youth Alliance in collaboration with law enforcement agencies, school districts, and community partners..
Activity Description: Youth Alliance will collaborate with law enforcement partners to expand the scope of restorative justice diversion programs currently offered to youth engaging in destructive and illegal behavior that could put them in jail. Substance abuse prevention strategies, with a particular focus on opioid mis-use, will be adapted to be culturally responsive, then introduced to restorative justice healing circles facilitated by Youth Alliance.
Objective: Refine the scope of restorative, non-punitive alternatives for youth to help them recognize warning signs of substance abuse (especially opioid mis-use) and discuss the root causes that lead to addiction—fractured families, punitive and/or isolating practices at school, peer pressure, mental health struggles, and oppressive law enforcement dynamics, among others.
Target Date: Months 6–11
Impact: Increased diversion from the justice system; improved access to culturally responsive behavioral health and substance abuse care; deeper connections with peers; demonstration of constructive behaviors that lead youth away from substance abuse.
ACTIVITY 4: Youth-Led Public Awareness Campaigns
Category: Prevention / Public Education
Subcategory: Public Education and Community Engagement to Reduce Substance Use and Stigma
Strategy: Led by youth leaders, devise and launch culturally responsive, intergenerational prevention campaigns to raise awareness of the dangers of substance abuse (especially opioids) and reduce the stigma around addiction.
Activity Description: Spearheaded by a select youth media team, Youth Alliance will coordinate multi-channel awareness campaigns focused on substance abuse education (including opioid addiction), early warning signs, and access to care. Campaigns will be informed by the expertise of adult mentors. They will feature storytelling, interviews, and Youth Alliance Opioid Remediation Services Proposal Project No. 26-RFP-AD-527 11
substance abuse prevention education. Campaigns will launch across social media, schools, and public events.
Objective: Increase community awareness and engagement around opioid prevention through youth-led storytelling and trusted-messenger strategies.
Target Date: Months 5–11
Impact: Increased public understanding of opioid risks and prevention resources;greater openness and community dialogue incorporating youth-led messaging ACTIVITY 5: Community Feedback and Reflection
Category: Evaluation / Continuous Improvement
Subcategory: Community Engagement and Program Learning
Strategy: Use proven culturally grounded reflection and feedback processes to strengthen program quality, accountability, and responsiveness.
Activity Description: Youth Alliance will establish formal and informal communication channels with youth participants, staff, and community partners to gather stories, solicit feedback, and review data. Sessions will be facilitated in English and Spanish (as needed), using trauma-informed, culturally responsive practices that ensure safe participation and honest responses. Staff and youth mentors will synthesize feedback to refine workshops, healing circles, and media campaign content.
Objective: Create ongoing feedback loops that facilitate ongoing co-creation, strengthen program alignment with community needs, and improve the effectiveness of substance abuse prevention activities, particularly new components focused on opioid misuse.
Target Date: Occurring quarterly, beginning Month 3
Impact: Continuous improvement in the quality and relevance of opioid prevention programming; integration of co-creation design into opioid prevention strategies that meet community needs.
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BUDGET
Foreword
The following proposed budget is subject to change based on negotiations with the City of Gilroy. Youth Alliance remains open and flexible to adjusting budget allocations in alignment with the City’s available resources and shared program goals. Our priority is ensuring fiscal responsibility while maintaining high-quality services that meet the scope of work and deliver measurable impact.
Youth Alliance
Personnel FTE Rate Annual Salary Total
Program Director 0.1 $42.00 $87,360.00 $8,736.00
Case Manager 1.0 $33.00 $68,640.00 $68,640.00
Fringe
Fringe Benefits at 28% $21,665.28
Subtotal Personnel $99,041.28
Non Personnel Qty. Unit Price Total
Program Supplies 1 $5,000.00 $5,000.00
Incentives 1 $2,000.00 $2,000.00
Training 1 $1,350.00 $1,350.00
Travel/Mileage 1 $500.00 $500.00
Subtotal Non-Personnel $8,850.00
Direct Costs $107,891.28
Indirect Costs at 10% $10,789.13
TOTAL $118,680.41
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BUDGET NARRATIVE
The expenses are to be broken down by the following categories:
1. Salaries and Benefits
a. In this category, list the individual(s) in your organization who will be paid to work on this project. Include each individual's title, project job duties, FTE on the project (hours/week), and salary and benefits that would be paid for by this grant.
Program Director, 0.1 FTE, $8,736.00
Program Director provides strategic oversight, supervision, and alignment with grant deliverables.
Case Manager, 1.0 FTE, $68,640.00
Case Manager is the cornerstone of service delivery, providing case management, referrals, and individualized youth support while ensuring consistent recruitment, relationship-building, and community engagement, particularly in neighborhoods and schools.
Combined Benefits at 28% - $21,665.28
2. Contractual Services
a. In this category, identify contracts that will be used to complete the activities in the work plan. For each contractor, include their name (if known, or write "TBD"), their scope of work related to the grant project duties, and the total amount to be paid.
N/A
3. Travel
a. In this category, describe who is traveling and for what purpose. Include travel expenses (transportation, lodging, meals) for project-related meetings, trainings, and conferences. Ensure the travel is addressed in the work plan.
Travel costs will primarily support staff travel within Gilroy and surrounding areas to conduct project-related activities. This includes mileage reimbursement for home visits, meetings at school sites, and other pre-determined community locations where youth and families receive support services. Staff will also travel regularly to and from the Gilroy Youth Impact Center, which will serve as the main hub for case management, coordination, and service delivery.
In addition, travel funds will cover attendance at local and regional trainings, community meetings, and partner coordination sessions relevant to the project’s goals. All travel activities align with the work plan and are essential for maintaining accessibility, collaboration, and continuity of care across program sites.
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4. Operating Supplies
a. In this category, list the expenses related to internal supplies and equipment.
Supplies and equipment purchased through contractors should be included in the "Contractual Services" section.
Operating supplies will include materials and equipment necessary to conduct the program activities outlined in the proposal. This includes program supplies to support youth engagement, educational workshops, and enrichment activities; incentives that encourage consistent participation and goal achievement; and food and snacks to ensure that food security is addressed for all youth and families served.
Additionally, funds may be used for prosocial trips and enrichment activities that promote positive youth development, community connection, and skill-building.
All supplies will be used to directly support program implementation, participant well-being, and the creation of a safe, welcoming environment for youth and families.
5. Other
a. In this category, describe expenses not covered in all other sections. Include how each expense contributes to carrying out the work plan.
Indirect expenses cover the necessary administrative and operational costs required to effectively manage and support the proposed project. These include fiscal management, human resources, communications, insurance, utilities, and technology systems that ensure compliance, reporting accuracy, and program efficiency.
These costs represent the shared organizational infrastructure that supports all Youth Alliance programs, including oversight by executive leadership, data tracking, and evaluation. Indirect expenses are allocated at the organization’s approved rate and are essential for maintaining accountability, staff support, and long-term sustainability of project outcomes.
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7.7. City of Gilroy
STAFF REPORT
Agenda Item Title: Consent the Appointment of Arts and Culture Commissioner to Fill the Remainder of a Term Ending 12/31/2027
Meeting Date: June 1, 2026
From: Matt Morley, City Administrator
Department: Administration
Submitted by: Kim Mancera, City Clerk
Prepared by: Kim Mancera, City Clerk
STRATEGIC PLAN GOALS:
RECOMMENDATION
Appointment of Meena Vijaykar to the Arts and Culture Commission to fill the remainder of a term ending 12/31/2027
EXECUTIVE SUMMARY
BACKGROUND
The City Council conducted interviews and appointments on March 16, 2026 to fill 2 vacant seats on the Arts & Culture Commission. Three (3) candidates were interviewed, and two (2) were selected.
On Monday, May 4, 2026 Commissioner Steven Porter resigned from the Commission, leaving one vacant seat with a term expiring 12/31/2027.
Candidate Meena Vijaykar was not selected at the March 16, 2026 appointments and is still interested in serving as a Commissioner on the Arts and Culture Commission.
7.7. ANALYSIS
Meena Vijaykar has previously interviewed in front of the City Council and holds all of the qualities desired to be an Arts and Culture Commissioner. Her application is included with this report. This appointment would create a full Commission and ensure there is a quorum at each meeting.
ALTERNATIVES
Council could decide not to appoint Meena Vikaykar to the Arts and Culture Commission.
FISCAL IMPACT/FUNDING SOURCE
There are no costs incurred from appointing individuals to the City’s boards, committees, and commissions.
PUBLIC OUTREACH
This item was included on the publicly posted agenda for this meeting.
NEXT STEPS
N/A
Attachments:
1. Meena Vijaykar - Arts & Culture_Redacted
Boards/Committees/Commissions Application
02/17/2026 9:23 PM (PST)
Boards/Committees/Commissions Application Form
Board/Committee/Commissions Arts and Culture Commission First Name Meena
Last Name Vijaykar
Home Address
City Gilroy
State CA
Zip 95020
Are you a registered voter within
the City of Gilroy?
Yes
Primary Phone Type Mobile
Primary Phone Number
E-mail Address
Driver's License/ID Number
Date of Birth
Last 4 of SSN
List your qualifications for this
appointment:
I am an Indian classical dancer and a Director at IASC- Indian cultural organization for South County
List any service to the community
incluiding any prior appointments:
When I was in Cupertino, I was very involved with my community as fitness instructor at the YMCA and as parent volunteer at Elementary, middle and High schools winning multiple honorary service awards. Also organized cultural events at the school and enriching teh student body to different cultures, I volunteer every summer teaching aqua aerobics in my community at Eagle ridge, my way of giving back to my neighbors.
What are your goals while serving
on this
Board/Commission/Committee?
I moved to Gilroy 4+ years and I am keen to serve my community here on the Arts and Culture Commission
Why are you most qualified to
serve on this
Board/Commission/Committee?
I am qualified because I view Arts and Culture as an important piece of Urban infrastructure. I believe a city with thriving cultural scene attracts talent , boost tourism and increases mental health for residents
By clicking on this box, I declare
under penalty of perjury that I am
I agree.
Submission ID: 4b9f5f9b-1e11-41a2-8cb5-2df3917eaf0a Page 1/2
currently a registered voter within
the City limits of the City of Gilroy.
Furthermore, I understand that
this application and any
attachments are subject to
disclosure under the Public
Records Act and must complete
mandatory Open Government
Ordinance Training. I further
understand that members of the
Planning Commission, Parks and
Recreation Commission, Building
Boards of Appeals, and Physically
Challenged Board of Appeals are
also subject to filing the Fair
Political Practice Commission's
Statement of Economic Interest
Form 700 relating to financial
disclosures.
Signature
Date 02/16/2026
*All Commission, Board and Committee applications are a public record.
Submission ID: 4b9f5f9b-1e11-41a2-8cb5-2df3917eaf0a Page 2/2
7.8. City of Gilroy
STAFF REPORT
Agenda Item Title: Consent the City Administrator's Recommendation to Appoint Michael O'Connell to the Department Head Position of Interim Utilities Director
Meeting Date: June 1, 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 the City Administrator's recommendation to appoint Michael O'Connell as Interim Utilities Director effective May 26, 2026.
EXECUTIVE SUMMARY
To ensure continuity in the leadership and management of the Utilities Department, it is recommended that the City Council consent to the appointment of Michael O'Connell as Interim Utilities Director effective May 26, 2026. This interim appointment is necessary as Karl Bjarke needed to end his interim assignment on May 26th due to an extended planned vacation. It is expected that Mr. O'Connell's interim assignment will last approximately two months until an ongoing Utilities Director is hired. Interviews for Utilities Director took place on May 22, 2026, with the finalist candidate returning for a follow-up interview the week of May 26th. Following a background check and notice to a current employer, we are hoping to have a new Utilities Director on board in July.
7.8. BACKGROUND
Due to the retirement of Heath McMahon, Karl Bjarke has been serving as the Interim Utilities Director while a recruitment process was completed. Mr. Bjarke needed to end his interim assignment as of May 26, 2026 due to an extended planned vacation he had on the books. To ensure continuity in the leadership and management of the Utilities Department, a new Interim Utilities Director is recommended. This new assignment will bridge the gap until an ongoing Utilities Director is hired. Interviews for the position took place on May 22, 2026 and the remaining steps in the selection process are underway and should be completed soon. Michael O'Connell has agreed to serve in the position of Interim Utilities Director beginning May 26, 2026.
Mr. O'Connell is a thirty-year public-sector professional with expertise and experience in public works, to include water, wastewater, and capital projects functions. He worked for the City of San Jose, rising to the level of Public Works Deputy Director, overseeing 133 staff members and significant capital projects. He also has experience managing a regional wastewater facility. Mr. O'Connell is a licensed professional civil engineer in the State of CA and holds a Bachelor's degree in civil engineering from San Jose State University. He prides himself as a results-driven problem solver with a focus on project planning, design and delivery while leading and mentoring his team. Customer service and stakeholder engagement are two of Mr. O'Connell's identified skills.
Given that Mr. O'Connell worked for the City of San Jose (a non-CalPERS agency with its own retirement system) prior to his retirement in 2021, the various CalPERS rules for interim appointments do not apply. As such, Mr. O'Connell will be hired as a full-time, temporary, at-will Interim Utilities Director. His pay rate will be $131.22 per hour or $5,248.80 per week for a full-time exempt workweek. As required, he will be enrolled in the part-time employee PARS retirement plan in lieu of social security. No other benefits will be paid.
Consistent with Gilroy City Charter Section 703 (c), department heads are appointed with the consent of Council. The purpose of this staff report is to ensure compliance with this section of the Gilroy City Charter.
ANALYSIS
N/A
ALTERNATIVES
No other alternatives are recommended at this time.
7.8. FISCAL IMPACT/FUNDING SOURCE
Due to the vacant Utilities Director position, there is adequate funding available in the FY 26 and 27 budgets to cover the personnel costs associated with this interim appointment.
PUBLIC OUTREACH
N/A
NEXT STEPS
With Council's consent of the City Administrator's recommendation to appoint Michael O'Connell to the position of Interim Utilities Director, staff will finalize the hiring process and will continue to work on the final steps to hire a full-time ongoing Utilities Director.
We expect a new Utilities Director to start work in July.
Attachments:
None
7.9. City of Gilroy
STAFF REPORT
Agenda Item Title: Adopt a Resolution Opposing the Development of a Federal Detention Facility in South Santa Clara County
Meeting Date: June 1, 2026
From: Greg Bozzo, Mayor
Department: Administration
Submitted by: Greg Bozzo, Mayor
Prepared by: Greg Bozzo, Mayor
STRATEGIC PLAN GOALS: Not Applicable
RECOMMENDATION
Adopt a resolution opposing the construction of a federal detention facility in south Santa Clara County.
EXECUTIVE SUMMARY
BACKGROUND
The City has recently become aware of a project to construct a federal immigration detention center in unincorporated Santa Clara County, east of Gilroy city limits on Holsclaw Road.
ANALYSIS
A federal detention facility has the potential to create significant social and economic impacts in the City of Gilroy.
ALTERNATIVES
7.9. N/A
FISCAL IMPACT/FUNDING SOURCE
Although there is no fiscal impact from this action, the impacts of a facility in Gilroy could be significant to the local economy.
PUBLIC OUTREACH
This item was included in the publicly posted agenda for this meeting.
NEXT STEPS
Staff will distribute the resolution as prescribed in the document.
Attachments:
1. Resolution opposing a federal detention facility in south Santa Clara County
RESOLUTION NO. 2026-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF GILROY OPPOSING THE CONSTRUCTION OF A
FEDERAL DETENTION FACILITY IN SOUTH SANTA
CLARA COUNTY DUE TO ITS INCOMPATIBILITY WITH
THE REGION’S AGRICULTURAL, TOURISM,
ECONOMIC DEVELOPMENT, PLANNING GOALS, AND
COMMUNITY VALUES
WHEREAS, a project for the construction of a Federal Immigration Detention Facility is underway outside Gilroy City limits in unincorporated Santa Clara County; and WHEREAS, the Federal Government has not consulted with the City of Gilroy on the appropriate land use and resource impacts at the project location; and WHEREAS, a detention facility would occupy a substantial land area while generating limited long-term economic benefits compared to land uses aligned with South County’s goals for agriculture, tourism, innovation, and sustainable economic growth; and WHEREAS, the communities of Gilroy, Morgan Hill, San Martin, and Santa Clara County have worked collaboratively to promote a regional vision centered on agricultural preservation, sustainable economic development, tourism, and strategic industry attraction; and WHEREAS, South Santa Clara County represents one of the last remaining agricultural corridors within Silicon Valley and plays a vital role in the region’s agricultural economy, environmental stewardship, and community identity; and
WHEREAS, South County’s agricultural sector supports local employment, wineries, agtourism, food production, hospitality businesses, festivals, equine activities, and related industries that significantly contribute to the regional economy; and WHEREAS, Gilroy, Morgan Hill, and San Martin have invested substantial public and private resources into developing South County as a welcoming tourism and hospitality destination recognized for its agricultural heritage, wineries, recreation, and visitor-serving businesses; and WHEREAS, Gilroy is a diverse community made up in large part of immigrant families whose contributions have strengthened the region’s agricultural economy, local businesses, civic life, and cultural identity; and
WHEREAS, the City of Gilroy values trust, hard work, camaraderie, mutual respect, and strong relationships between residents, local institutions, and public agencies; and WHEREAS, residents and regional stakeholders have expressed concern that the establishment of a federal detention facility within South County would be incompatible with the region’s identity and could negatively impact tourism, private investment, regional branding, and community cohesion; and
Resolution No. 2026-XX
Resolution Opposing Federal Detention Center
City Council Regular Meeting | June 1, 2026
WHEREAS, many residents believe that the presence of a detention facility could create fear and distrust within immigrant communities and undermine the shared values that contribute to South County’s social and economic stability; and
WHEREAS, federal land-use decisions should remain consistent with local and regional planning objectives and complement, rather than undermine, the long-term economic and community vision established by local jurisdictions.
NOW, THEREFORE, BE IT RESOLVED that the Gilroy City Council formally opposes the development of any federal immigrant detention facility within South Santa Clara County that would adversely affect the agricultural, tourism, hospitality, economic development, community cohesion, and planning objectives of the region; and BE IT FURTHER RESOLVED that the Gilroy City Council urges all federal agencies and decision-makers to fully evaluate the long-term economic, environmental, and social impacts associated with such a project prior to any approval or land-use authorization; and BE IT FURTHER RESOLVED that the Gilroy City Council reaffirms its commitment to preserving South County’s agricultural heritage, protecting tourism and hospitality investments, supporting sustainable economic development, and fostering a community built on trust, respect, opportunity, and inclusion; and
BE IT FURTHER RESOLVED that the City Clerk shall transmit copies of this Resolution to relevant federal agencies, state representatives, regional planning organizations, and neighboring jurisdictions.
PASSED AND ADOPTED this 1st day of June 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 Opposing Federal Detention Center
City Council Regular Meeting | June 1, 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
City of Gilroy
STAFF REPORT
Agenda Item Title: Introduction and First Reading of an Ordinance Amending Chapter 30, Article II and Article XIX of the Gilroy City Code, Relating to Tobacco Retailers and Smoke Shops
Meeting Date: June 1, 2026
From: Matt Morley, City Administrator
Department: Community Development
Submitted by: Sharon Goei, Community Development Director Prepared by: Michael Fossati, Planning Manager
STRATEGIC PLAN GOALS: N/A
RECOMMENDATION
1. Determine the proposed ordinance is statutorily exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15061 (b)(3) for the adoption of an ordinance relating to tobacco retailers and smoke shops; and
2. Motion to read the ordinance by title only and waive further reading of the ordinance; and
3. Introduce an ordinance amending Chapter 30, Article II and XIX of the Gilroy City Code, relating to tobacco retailers and smoke shops.
EXECUTIVE SUMMARY
The City Council has approved a series of urgency interim ordinances to prohibit the issuance of new tobacco retailer permits for a temporary period. During deliberations, Council members raised concerns about the increasing number of "smoke shops" in Gilroy and their potential negative impact on community health, safety, and welfare, as well as the physical community character of the downtown corridor.
Because "smoke shop" is not currently defined in the Gilroy City Code, and because the commercial use tables in Article XIX (Commercial Tables) do not explicitly address this
use type, there is regulatory ambiguity that could undermine the City's ability to enforce the intent of the interim ordinances and any permanent regulations. To remedy this, staff recommends amending Article II (Definitions) to add a clear definition of "smoke shop" and amending Article XIX to clearly restrict smoke shops in any commercial zoning districts. Additionally, since the use of “smoke shop” is not expressly listed as a permitted, conditional or special use in any other zoning districts, the use itself is expressly prohibited.
These amendments are consistent with the multiple goals and policies of the Gilroy 2040 General Plan, are categorically exempt from review under the California Environmental Quality Act (CEQA), and are necessary to protect public health, safety, and welfare, as well as to preserve the community's commercial character before the interim ordinance expires on August 24, 2026.
BACKGROUND
In recent years, the City of Gilroy has seen a significant rise in smoke shops within its commercial corridors. These businesses mainly sell tobacco and nicotine products, electronic cigarettes, vaping devices and accessories, hookahs, pipes, water pipes such as bongs, and related paraphernalia.
In response to community concerns about the proliferation of these uses, the City Council approved a series of urgency interim ordinances pursuant to California Government Code Section 65858 to temporarily prohibit the issuance of new tobacco retailer permits while the City studied appropriate permanent regulations. Ordinance No. 2026-02, the most recent in this series, extends the prohibition through August 24, 2026.
At City Council meetings regarding these urgency ordinances, Council members and the public raised concerns about smoke shops as a distinct use. They noted that smoke shops are concentrated in certain downtown commercial areas, have attracted nuisance activity, and can negatively impact Gilroy's charm, character, and vitality. The Council directed staff to develop permanent zoning solutions before the urgency ordinance expires.
Environmental Assessment
This project qualifies for the CEQA Guidelines Section 15061(b)(3) “common sense” exemption, as it is clear the regulation of the land use for tobacco retailers and smoke shops will not have a significant environmental impact and is therefore not subject to CEQA.
Planning Commission Review
On May 7, 2026, the Planning Commission unanimously recommended adopting the ordinance at the regularly scheduled public hearing (6-0 vote, one absent). One public comment was received from the Chair of the Tobacco-Free Coalition of Santa Clara County, expressing support for the City of Gilroy’s efforts to curb tobacco use and
protect youth from the tobacco industry. No changes were made to the proposed ordinance.
ANALYSIS
Need for a “Smoke shop” Definition (Article II)
The Gilroy City Code currently lacks a definition for “smoke shop” within our zoning ordinance. Without a clear definition, it is challenging to distinguish smoke shops from general retail stores, convenience stores, or other businesses that sell tobacco products. This ambiguity complicates the application of use regulations and impedes effective code enforcement.
Staff recommends adding the following definition to Article II of the Gilroy City Code:
"Smoke shop" means any establishment, structure, facility, or stand that devotes more than fifteen (15) percent of either its gross floor space or display area to the retail sale, display, marketing, bartering, trading or exchange of any combination of tobacco, tobacco products, or tobacco paraphernalia, including electronic smoking devices and accessories, as defined per City Code Chapter 13, Article VIII, Section 13.66.
This definition aligns with practices in other California cities that regulate smoke shops and major tobacco retailers as separate land-use categories. It establishes an objective threshold to distinguish smoke shops from incidental tobacco sales at convenience stores, gas stations, or grocery stores, ensuring clear and consistent application of zoning regulations.
Proposed Amendment to Article XIX (Commercial Tables)
Staff also recommends amending Article XIX (Commercial Tables) of the Gilroy City Code to prohibit "smoke shops" in all commercial zoning districts, including downtown specific plan districts.
Any business operating legally as a smoke shop prior to the effective date of the adopting ordinance would be considered legal nonconforming use subject to the applicable nonconforming use regulations of the Gilroy City Code. The City Attorney's Office should advise on the appropriate nonconforming use provisions to apply.
Furthermore, existing legally established businesses that do not meet the proposed definition of a smoke shop would not be affected by these amendments.
General Plan Consistency
California law requires a city’s zoning ordinance to align with its general plan. The proposed zoning amendment regulating smoke shop use supports the goals and policies of the Gilroy 2040 General Plan, as outlined below:
Goal # /
Policy #
Title and/or Summary Analysis
Goal LU 1 Protect and enhance Gilroy’s
quality of life and unique identity
while continuing to grow and
change
The proposed zoning amendment
responds to the recent increase in
unregulated shops in Gilroy and
aligns with the city's zoning update
goals. It promotes controlled
commercial growth during the
current moratorium on new tobacco
permits.
LU 1.4 Mix of Uses - Encourage a
diverse mix of land uses to
achieve a balance between jobs
and housing, to ensure the
community’s long-term viability,
and to increase job opportunities
in the city to assist in equalizing
the jobs/housing balance.
Through the Land Use Diagram,
the City shall encourage a range
of housing types, mixed-use
districts, a diversity of business
and industries, and adequate
services and leisure activities to
meet the social and economic
needs of residents.
The growing number of smoke
shops in commercial districts limits
Gilroy's commercial diversity and
reduces space for retail, service,
and dining options that better serve
residents. The proposed control of
smoke shop operations supports a
more balanced and diverse
commercial land use mix consistent
with this policy.
LU 1.14 Blight - Require that defunct or
abandoned structures that are a
visual blight or physical hazard be
dismantled or removed within a
reasonable period of time. This
does not apply to structures that
are identified by the City as
historic.
City Council and staff have
observed that smoke shops are
often linked to increased loitering,
nuisance activity, and visual blight.
Regulating new smoke shop
development aligns with this policy’s
goal to maintain clean, attractive,
and safe commercial areas.
Goal LU 4 Encourage the growth and
development of retail, office,
service, and entertainment uses
in Gilroy to provide jobs, support
A zoning amendment to regulate
smoke shops will provide controls to
reserve prime locations for retail,
office, service, and entertainment
City services, and make Gilroy an
attractive place to live.
uses that support the 2040 General
Plan's vision for mixed-use and
neighborhood commercial districts.
LU 4.2 High Quality Design -
Encourage distinctive and high
quality commercial architecture
that represents the character of
Gilroy and discourages the use of
“franchise architecture.”
Smoke shops often use poor-quality
signage, window coverings, and
displays that diminish the visual
appeal of commercial corridors.
Regulating the location of new
smoke shops supports the City's
goal to maintain and enhance the
design quality and character of its
commercial areas.
LU 4.4 Commercial Design Standards
and Review Procedures -
Require commercial centers to
incorporate high standards of site
design, construction, buffering,
and screening to ensure their
compatibility and opportunity to
enhance residential
neighborhoods.
Smoke shops and their associated
activities are often incompatible with
nearby residences and sensitive
sites such as schools, parks, and
childcare facilities. Prohibiting this
use in Gilroy aligns with the City's
policy to ensure commercial
activities support and enhance the
surrounding community.
LU 4.6 Existing Strip Commercial Uses
- Existing strip commercial uses
that undergo upgrades or
expansion, as well as new
commercial centers, shall be of a
high-quality design, have limited
access to minimize circulations
conflicts, and ensure adequate
screening from adjacent
residential uses.
The concentration of smoke shops
in strip commercial centers
diminishes the quality of these
corridors and makes them less
appealing to higher-quality retail
and service tenants. Prohibiting new
smoke shops will help revitalize and
enhance Gilroy's downtown area.
LU 8.7 Signs and Billboards - Require
the location of signs and
billboards to respect the
surrounding context in order to
minimize any negative impact on
the visual environment. Enforce
sign regulations and design
standards to reduce sign clutter
Smoke shops often use excessive
or visually intrusive neon signage,
creating sign clutter and diminishing
the visual quality of downtown
Gilroy. Regulating new smoke
shops and prohibiting them
downtown will help maintain the
and illegal signage along
corridors.
City's sign quality and streetscape
standards.
LU 9.1 Downtown Pedestrian
Improvements - Work with public
and private entities to develop
and maintain design
improvements to create a safe,
convenient, and pleasant
pedestrian environment that
supports the continued
revitalization of the Downtown
area. Improvements could
include pedestrian-oriented
amenities such as lighting, wider
sidewalks, clearly marked
pedestrian crossings, benches,
landscaping, signage, sidewalk
seating areas, and public art.
Downtown Pedestrian
Improvements aims to create "a
safe, convenient, and pleasant
pedestrian environment that
supports the continued revitalization
of the Downtown area." Smoke
shops in or near Downtown are
inconsistent with this objective, as
they often generate nuisance
activities that discourage pedestrian
use and diminish the quality of the
public realm.
H 1.1 Historic Downtown - Promote
the old downtown section of
Monterey Street between Third
Street and Eighth Street as the
focal point for community identity,
providing a “sense of place” and
feeling of historic continuity for
Gilroy residents.
Smoke shops are incompatible with
the vision of a vibrant, pedestrianfriendly downtown that serves as a community gathering place and
economic center. Prohibiting smoke
shops in downtown districts,
including the Downtown
Commercial District, is necessary to
preserve and enhance the unique
character and vitality of Gilroy's
historic downtown.
As demonstrated above, the proposed zoning amendments that will regulate smoke shops within the city’s zoning districts are consistent with goals and policies of the 2040 Gilroy General Plan.
Zoning Text Amendment Review
The draft ordinance includes findings that demonstrate the amendment is appropriate for fulfilling the City Council's direction to protect the public health, welfare, and safety of the Gilroy community. Ordinances take effect 30 days after adoption by the City Council.
ALTERNATIVES
The City Council may approve, modify, or reject the proposed amendment. If the Council does not introduce and adopt the ordinance, smoke shop operators may apply for and obtain tobacco retailer permits after the urgency interim ordinance expires on August 24, 2026. If the Council decides to amend the proposed ordinance, staff will provide a revised version according to Council direction.
FISCAL IMPACT/FUNDING SOURCE
Staff time and resources needed to adopt and draft new zoning regulations for City Council priorities are typically funded by the Department's operational budget and the City’s General Fund.
PUBLIC OUTREACH
The notice for the City Council meeting was published in the Gilroy Dispatch on Friday, May 8, 2026. No public comments have been received regarding the proposed amendments. A notice was also posted on the City’s website and at City Hall.
NEXT STEPS
The proposed zoning text amendments add a definition of "smoke shop" to Article II and amend Article XIX to restrict smoke shops in any zoning district. This measure addresses City Council concerns regarding public health and community character by prohibiting smoke shops in all zoning districts. Staff recommends that the City Council adopt the proposed ordinance.
If introduced, the proposed ordinance will be placed on the consent calendar for adoption at the next City Council meeting, tentatively scheduled for June 15, 2026. The ordinance will take effect 30 days after adoption.
Attachments:
1. Draft Smoke Shop Ordinance (Including Exhibit ‘A’)
ORDINANCE 2026-XX
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF GILROY AMENDING THE GILROY CITY CODE,
CHAPTER 30 (ZONING), ARTICLE II (DEFINITIONS),
AND ARTICLE XIX (COMMERCIAL TABLES)
REGARDING TOBACCO RETAILERS AND SMOKE
SHOPS
WHEREAS, California Government Code Section 65858 authorizes the legislative body of a city, to protect the public safety, health, and welfare, to adopt as an urgency measure an interim ordinance prohibiting any uses that may be in conflict with a contemplated general plan, specific plan, or zoning proposal that the legislative body, planning commission, or the planning department is considering or studying or intends to study within a reasonable time, and further provides that such interim ordinance shall be of no further force and effect forty-five (45) days from its date of adoption, and that after notice and public hearing, the legislative body may extend the interim ordinance for ten (10) months and fifteen (15) days and subsequently extend the interim ordinance for one (1) year; and
WHEREAS, on November 3, 2025, the City Council voted unanimously to adopt Ordinance No. 2025-08, an urgency interim ordinance pursuant to Government Code Section 65858, prohibiting the issuance of tobacco retailer permits within the Gilroy Downtown Specific Plan area for a period not to exceed forty-five (45) days, which was set to expire on December 17, 2025; and
WHEREAS, on December 8, 2025, the City Council adopted Ordinance No. 2025-11, extending the urgency interim ordinance prohibiting the issuance of new tobacco retailer permits within the Downtown Specific Plan area for a period of ten (10) months and fifteen (15) days, in accordance with Government Code Section 65858, and further approved the findings required by Government Code Section 65858(d); and
WHEREAS, during both meetings, council members and members of the public expressed concerns about the increasing number of "smoke shops" in Gilroy and their potential negative impact on community health, safety, and general welfare. Specific issues included proximity to schools, youth access to tobacco and vaping products, nuisance activity, and the decline of commercial corridor character; and
WHEREAS, on January 5, 2026, the City Council voted unanimously (7-0) to adopt Ordinance No. 2026-01, an urgency interim ordinance pursuant to Government Code Section 65858, expanding the prohibition on the issuance of new tobacco retailer permits to apply citywide for a period not to exceed forty-five (45) days, which was set to expire on February 19, 2026; and WHEREAS, on February 9, 2026, the City Council adopted Ordinance No. 2026-02, extending the urgency interim ordinance prohibiting the issuance of new tobacco retailer permits citywide for a period of six (6) months and fifteen (15) days, through August 24, 2026, in accordance with Government Code Section 65858, and further approved the findings required by Government Code Section 65858(d); and
WHEREAS, the City Council directed staff to study permanent zoning solutions to address the proliferation of smoke shops in Gilroy before the expiration of the urgency interim ordinance on August 24, 2026; and
WHEREAS, staff found that the term "smoke shop" is not currently defined in the Gilroy City Code, Chapter 30 (Zoning), Article II (Definitions), and the commercial use tables in Article XIX (Commercial Tables) do not explicitly address "smoke shops" as a distinct use type, creating regulatory ambiguity that hinders effective code enforcement and undermines the City’s ability to regulate these uses; and
WHEREAS, staff determined that adding a definition of "smoke shop" to Article II and amending Article XIX to expressly regulate smoke shops in commercial zoning districts is necessary to address the regulatory gap, protect public health and safety, preserve community character, and codify permanent zoning regulations before the expiration of Ordinance No. 2026- 02 through a zoning text amendment, as permitted per Article LII (Amendment to the Zoning Ordinance); and
WHEREAS, in accordance with the Gilroy City Code, Chapter 30 (Zoning), Article LII (Amendment to the Zoning Ordinance), the Planning Commission has recommended, and the City Council finds, that the proposed Zoning Ordinance text amendments are necessary to carry out the general purpose of the Zoning Ordinance and are consistent with applicable goals and policies of the Gilroy 2040 General Plan, including Land Use Goal LU 1 (Protect and enhance Gilroy’s quality of life and unique identity while continuing to grow and change), Land Use Policy LU 1.4 (Mix of Uses), Land Use Policy 1.14 (Blight), Land Use Goal LU 4 (Encourage the growth and development of retail, office, service, and entertainment uses in Gilroy to provide jobs, support City services, and make Gilroy an attractive place to live), Land Use Policy 4.2 (High Qualify Design), Land Use Policy 4.4 (Commercial Design Standards and Review Procedures), Land Use Policy 4.6 (Existing Strip Commercial Uses), Land Use Goal LU 8 (Support growth and development that preserves and strengthens the City’s historic, small-town character), Land Use Policy 8.7 (Signs and Billboards), Land Use Goal LU 9 (Encourage the growth and revitalization of Downtown to create a vibrant, high quality place for residents, businesses, and visitors), Land Use Policy 9.1 (Downtown Pedestrian Improvements) and Land Use Policy H 1.1 (Historic Downtown); and
WHEREAS, the adoption of the Zoning Ordinance text amendments is categorically exempt from review under the California Environmental Quality Act ("CEQA") pursuant to CEQA Guidelines Section 15061(b)(3), the general rule that CEQA applies only to projects that may have a significant effect on the environment, because a zoning text amendment that regulates use types within existing commercial zones will not have the potential for causing a significant effect on the environment; and
WHEREAS, on May 7, 2026, the Planning Commission held a duly noticed public hearing, at which time the Planning Commission received and considered the staff report as well as all evidence received including written and oral public testimony related to the proposed Zoning Amendments, and recommended that the City Council approve the proposed amendments; and
WHEREAS, the City Council held a duly noticed public hearing on June 1, 2026, at which time the City Council received and considered the proposed Zoning Amendments, took and considered written and oral public testimony, the staff report, the Planning Commission recommendation, and all other documentation related to the proposed amendments; and WHEREAS, the location and custodian of the documents or other materials which constitute the record of proceedings upon which the project approval is based is the office of the City Clerk.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GILROY DOES HEREBY ORDAIN AS FOLLOWS:
SECTION I
The foregoing recitals are true and correct and are incorporated herein by this reference.
SECTION II
The amendments to the Gilroy City Code, Chapter 30 (Zoning), Article II (Definitions) and Article XIX (Commercial Tables), set forth in Exhibit ‘A’ regarding smoke shops, are hereby adopted.
SECTION III
If any section, subsection, subdivision, sentence, clause, or phrase of this Ordinance is for any reason held to be unconstitutional or otherwise void or invalid by any court of competent jurisdiction, the validity of the remaining portion of this Ordinance shall not be affected thereby.
SECTION IV
Pursuant to Section 608 of the Charter of the City of Gilroy, this Ordinance shall be in full force and effect thirty (30) days from and after the date of its adoption.
PASSED AND ADOPTED by the City Council of the City of Gilroy at a regular meeting duly held on the __ day of ___ 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
DRAFT
EXHIBIT ‘A’ of ORDINANCE 2026-XX
ARTICLE II. DEFINITIONS
30.2.10 Word construction.
Words used in the present tense include the future; words in the masculine include the feminine; words in the singular number include the plural; and words in the plural number include the singular. The word “building” includes the word “structure”; and the word “shall” is mandatory and not directory. The term “city council” shall mean the city council of the City of Gilroy, California; the term “planning commission” shall mean the planning commission of the City of Gilroy, California, and the word “city” shall mean the incorporated area of the City of Gilroy. (Ord. No. 2013-08, § 2 (Exh. A), 8-5-13)
30.2.20 Definitions.
For the purpose of this chapter certain terms used herein are defined as follows:
“Abandoned sign” means a sign located on a parcel of land or on a structure either of which is vacant for a period of ninety (90) days, a sign pertaining to a past occupant or business different from the present occupant of or business on the premises, a sign pertaining to a past event or any sign abandoned as the term is used in the law of California.
“Abutting” means land having a common property line or district boundary line or separated only by a private street, alley or easement.
“Accessory building (or structure)” means buildings, both permanent and temporary, excluding accessory dwelling units as defined in this section, which are:
(a) Located on the same lot as the principal building or use; (b) Subordinate to and serve a principal building or principal use; (c) Subordinate in area, extent, or purpose to the principal building or principal use; and (d) Contribute to the comfort, convenience, or necessity of occupants of the principal building or principal use.
“Accessory dwelling unit” means an attached or a detached residential dwelling unit that provides complete independent living facilities for one (1) or more persons and is located on a lot with a proposed or existing primary residence. It shall include permanent provisions for living, sleeping, eating, cooking and food preparation area (which may include countertop appliances), and sanitation on the same parcel as the
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2 single-family or multifamily dwelling is or will be situated. An “accessory dwelling unit” also includes the following:
(a) An efficiency unit, as defined in California Health and Safety Code Section 17958.1. (b) A manufactured home, as defined in California Health and Safety Code Section 18007.
“Advertising” means any announcement, description or presentation calling public attention to goods or services offered for sale.
“Agency” means an office or commercial establishment in which goods, material or equipment is received for servicing, treatment or processing elsewhere. “Agent of owner” means a person who can show written proof of authorization to act for a property owner.
“Agriculture” means farming, dairying, pasturage, apiaries, horticulture, floriculture, viticulture and animal or poultry husbandry, but not including the commercial feeding of garbage or offal to swine or other animals.
“Alley” means a public access driveway or lane not exceeding thirty (30) feet in width which provides only a secondary means of access to abutting property. “Ancillary use” means a use which is:
(a) Subordinate to and serves a principal use;
(b) Subordinate in area, extent or purpose to the principal use; (c) Part of a single business for commercial and industrial uses; (d) Contributing to the comfort, convenience or necessity of occupants of the principal use; and
(e) Located on the same lot as the principal use.
“Animal hospital” means a facility providing medical care for small and/or large animals which includes boarding the animals two (2) or more days. “Animal husbandry” means the care and breeding of domestic farm animals such as cattle, hogs, sheep, and horses.
“Antenna” means a “conductor” erected for the transmission and/or reception of radio, television or other electromagnetic microwave signals.
“Apartment house” means any building or portion thereof which is designed and built for rental occupancy by three (3) or more households.
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3 “Arcade” means any public place of amusement or public place of business in which five (5) or more mechanical amusement devices are installed, and includes any place open to the public, whether or not the primary use of the premises is devoted to the operation of such amusement devices.
“Attached sign” means a sign which is affixed to and made an integral part of a building or structure. Attached signs include wall signs, roof signs, and projecting signs, to distinguish them from freestanding and monument signs.
“Average slope” means the mean slope in the elevation of an area of land, determined by the formula:
S = .00229 I
L
where
A
S = Average percentage slope.
I = Contour interval in feet.
L = Summation of individual contour lengths in scale feet.
A = Gross area of property in acres.
“Awning” means a shelter, projecting over a property, supported entirely from the exterior wall of a building and composed of a collapsible frame covered completely with nonrigid material.
“Bank” means financial institutions including federally chartered banks, savings and loan associations, industrial loan companies, and credit unions providing retail banking services to individuals and businesses. This classification of bank does not include payday lending businesses or check cashing businesses, and as a result, the establishment, expansion, or relocation of such businesses is prohibited. The term “payday lending business” as used herein means retail businesses owned or operated by a “licensee” who offers, originates, or makes a deferred deposit transaction, as that term is defined in California Financial Code section 23001(d), as amended from time to time. The term “check cashing business” as used herein means a retail business owned or operated by a “check casher” as that term is defined in California Civil Code section 1789.31 as amended from time to time.
“Banner” means a temporary advertising display consisting of fabric, canvas, plastic or paper material, which is attached to a building.
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4 “Bar” means an establishment or part of an establishment used primarily for the sale of alcoholic beverages to be consumed on the premises.
“Basement” means a usable space within a building, partly or wholly underground, and having more than one-half (1/2) of its height, measured from its floor to its finished ceiling, below the average adjoining grade. (See also “Story.”) “Bed and breakfast establishment” means a residential structure, used as a lodging establishment in which the manager is an occupant in the structure and receives compensation in exchange for providing overnight sleeping accommodations which contain no cooking facilities, on a less than weekly basis, and in which breakfast is included as part of the basic compensation.
“Billboard” means a sign, other than a directional sign, which directs attention to a business, commodity, service or entertainment conducted, sold or offered at a place other than on the parcel where the sign is erected. Included are signs erected upon benches.
“Block” means the area consisting of all property abutting one (1) side of a street, between intersecting and intercepting streets, or between a street and a railroad rightof-way, waterway, dead-end street, city boundary or undivided acreage. “Boarding house” means a building or portion thereof, other than a hotel, where lodging for three (3) or more persons is provided for compensation or profit. “Building” means a structure having a roof supported by columns and/or walls and intended for the housing or shelter of any persons, animals or property. “Building coverage” means the land area covered by all of the main and accessory buildings on a lot, including all projections except eaves, and including enclosed driveup areas, patios and porches, measured from the support posts. “Building height” means the vertical distance measured from the average finished soil grade at the base of any exterior wall to the highest point of the roof, ridge, or parapet wall.
“Building site” means the land area of a lot which may be occupied by the permitted main building.
“Build-out schedule” means the maximum number of dwelling units assigned to each residential development project for which building permits may be issued each calendar year. The total of all assigned build-out schedules, for each year, shall not exceed the numerical limit set by city council resolution for that calendar year.
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5 “Bulletin board” means a sign located on the same premises and used solely in connection with activities of a church, school, hospital, or public building, and allowing changeable messages.
“Business” means a commercial entity operating in the City of Gilroy with an approved business license.
“Business frontage” means the portion of a building which faces and has access to a street, parking lot, pedestrian mall, or walkway. The primary business frontage is one which contains a customer entrance or which includes a glass-enclosed showroom. If a building has more than one (1) business frontage with a customer entrance, the property owner must designate one (1) of them as the primary business frontage.
Unless otherwise stated, the phrase “business frontage” means “primary business frontage.” All other business frontage is secondary frontage. “Card rooms” means an establishment where legal gambling is conducted and regulated pursuant to City of Gilroy ordinances.
“Caretaker’s quarters (or residence)” means a nonrental residential unit built as part of a commercial or industrial use for the sole purpose of providing shelter for an employee, caretaker, or security personnel for the commercial or industrial use. “Carport” means a shelter for one (1) or more automobiles which is not enclosed on at least two (2) sides by walls and doors.
“City council” means the elected city council of the City of Gilroy.
Clinic. See “Medical or dental office/clinic.”
“Clustering” means the practice of grouping residential units within a close proximity, and utilizing the surplus land thus saved for common open space, landscaping, recreations, etc.
“Combining district” means a zoning district within which certain regulations and requirements apply in addition to, and in combination with, regulations and requirements of the base zoning district.
“Commercial marijuana activity” has the same meaning as “commercial cannabis activity” as provided in California Business and Professions Code Section 26001(k) as may be amended, and means and includes cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery or sale of marijuana or marijuana products. “Commercial marijuana activity” also includes the activities of any business or nonprofit licensees by the state or other government entity under Chapter 3.5 of Division 8 or Division 10 of the Business and Professions Code.
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6 “Common open space” means the area generally used for landscaping and/or recreation which is held in joint ownership by all of the owners of a condominium development and which is jointly maintained by the owners. “Competitive evaluation” means the process of comparing the project rating scale point rating of projects in order to determine priority in receiving yearly allocation of dwelling units.
“Condominium” means a distinct unit, under separate ownership, which is a portion of a multiple-unit building or development in which such ownership includes an interest in common areas. Condominium units may have one (1) or more common walls with other units.
“Conservation land” means land which possesses or encompasses natural resources.
This includes, but is not limited to, streams, watersheds, groundwater recharge, soils, wildlife habitat as defined herein, special land forms and natural vegetation. “Construction sign” means a sign located on a construction site during the course of construction, which identifies the architects, engineer, contractors, financiers or other persons and other individuals or firms involved with the construction, or announcing the building, enterprise or function for which the construction is intended. “Corner lot” means a lot bounded on two (2) or more contiguous sides by city streets. “Corner triangle” means a triangular-shaped area bounded by corner property lines and a line connecting those lines from points thereon which lie twenty (20) feet from the intersection of the projected property lines.
“Corporate office” means an office complex designed as the headquarters of a commercial or industrial corporation.
“Dance area” is defined, for large and medium dance venues, to include the area designated as the dance floor area on the floor plan submitted with the application for a public dance permit to the police department or with the applications for a downtown special use permit submitted to the community development department. “Dance venue, large” means a venue where public dancing occurs in which the dance is larger than four hundred forty-one (441) square feet or twenty-five percent (25%) of the public access floor area.
“Dance venue, medium” means a venue where the dance floor area is up to twenty-five percent (25%) of the public access floor area; however, in no case is it larger than four hundred forty-one (441) square feet. The use shall be associated with a full service restaurant or theater with hot food available at all times the establishment is open.
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7 “Dance venue, small” means a venue where occasional, spontaneous public dancing occurs in which the area of spontaneous dancing and the performance area combined is less than one hundred fifty (150) square feet, and the dancing is not advertised and entertainment is incidental to the approved use.
“Day care center” means a facility in which the primary use is the provision of childcare services in accordance with the regulations of the State of California. “Deck” means a structure, usually of wood, built to extend the finished floor surface of a building into outdoor areas (reference section 30.39.40). “Dish antenna” means an antenna which has a solid, mesh, or nearly solid surface area greater than five (5) square feet.
“Double-faced sign” means a sign designed to be viewed from two (2) directions and which at no point is thicker than twenty-four (24) inches measured from the exterior surface of each face. The two (2) faces of a double-faced sign are either parallel or the angle between them is thirty (30) degrees or less.
“Drive-in” means an enterprise or business activity or other use of land consisting of sales or service activity rendered to patrons who normally receive the products or services while in automobiles upon the premises, including, but not limited to, automobile service stations, drive-in restaurants and drive-up banks. “Duplex” means a building designed for and intended to be occupied as living quarters by two (2) families living independently of each other. “Dwelling” or “dwelling unit” means a building or mobile home designed for and/or occupied as a residence by one (1) or more families.
“Dwelling group” means a group of two (2) or more detached residential buildings occupying a parcel of land in one (1) ownership.
“Educational facility” means colleges, universities, tutoring centers, and vocational or trade schools for adults or minors. This definition excludes kindergartens, elementary schools, junior high schools, senior high schools, or special institutions of learning under the jurisdiction of the State Department of Education, which are defined by this chapter as schools.
“Emergency bridge housing” means any new or existing facilities, including, but not limited to, housing in temporary structures, including, but not limited to, emergency sleeping cabins consistent with the requirements of Government Code Section 8698.3(h) that are reserved for homeless persons and families, together with community support facilities, including, but not limited to, showers and bathrooms adequate to serve the anticipated number of residents all of which may be located on
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8 property leased or owned by a political subdivision. An emergency bridge housing community shall include supportive and self-sufficiency development services, have the ultimate goal of moving homeless persons to permanent housing as quickly as reasonably possible, and limit rents and service fees to an ability-to-pay formula reasonably consistent with the United States Department of Housing and Urban Development’s requirements for subsidized housing for low-income persons. “Emergency shelter” means housing with minimal supportive services for homeless persons that is limited to occupancy of one hundred eighty (180) days per calendar year or less by a homeless person. No individual or household may be denied emergency shelter because of an inability to pay. The definition of “emergency shelter” includes other interim interventions, including, but not limited to, a navigation center, emergency bridge housing, and respite or recuperative care.
“Entity” means a person or distinct business enterprise. Where adjacent business enterprises are owned or operated by a single person, each enterprise is an entity. “Environmental assessment” means the process of determining the impact of proposed projects on the environment. The review process is carried out in accordance with the California Environmental Quality Act and city guidelines. “Erect” means to build, construct, place, relocate, enlarge, alter, attach, suspend, paint, post, display, hang, affix or maintain a sign or other structure. “Family” means one (1) or more persons, occupying premises and living together as a single housekeeping unit, as distinguished from a group occupying a hotel, club, fraternity, or sorority.
“Family day care home” means a home that regularly provides care, protection, and supervision for fourteen (14) or fewer children, in the provider’s own home, for periods of less than twenty-four (24) hours per day, while the parents or guardians are away. “Fascia” means a flat horizontal band with a vertical face located on a building below the roofline.
“Fence” or “wall” means any structure made of wood, metal, masonry, shrubbery or other material forming a physical barrier which supports no load other than its own weight and which is designed to delineate, screen or enclose a field, yard, lot or other land area.
“Fence height” means:
(a) Fences in the front setback area: the vertical distance from the top of the curb closest to the fence or wall to the top of the fence or wall.
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9 (b) All other fences: the difference in elevation of the ground surface continuously along the base of the ground level of the higher side of the fence to the top of the fence.
Where a fence is erected on top or within three (3) feet of a retaining wall, the height of the fence shall include the retaining wall.
“Freestanding sign” means a sign which is wholly or partly supported by a structural element which is not an integral part of a building.
“Freeway” means a limited access highway, as defined in the California Streets and Highways Code.
“Front lot line” means the property line along a lot’s street frontage. If any official plan line has been established for the street upon which the lot fronts, the official plan line shall be considered the front lot line. For developed lots with more than one (1) street frontage, the street frontage towards which the main building fronts shall be considered the front lot line, except if the main building was clearly constructed under reverse conditions. If the lot is vacant, the shortest street frontage shall be considered the front lot line.
“Front yard” means the required setback area extending across the front of the lot between the side yard lines and measured from the front lot line to the front setback line.
“Garage—commercial” means a building designed or used on a commercial basis for the temporary storage of operable motor vehicles.
“Garage—residential” means an attached or detached accessory building used for the storage of vehicles or trailers by the families who reside upon the premises, including any covered parking space or carport.
“Gross floor area outside of the downtown specific plan area” means the sum of all of the areas of all levels or stories of a structure as measured from the exterior faces of the walls enclosing the structure.
“Gross floor area within the downtown specific plan area” means the sum of the gross horizontal areas of all floors of a building measured from the exterior faces of the exterior walls or from the centerline of walls separating adjacent buildings. Gross floor area does not include parking areas, basements where at least one-half (1/2) of the floor-to-ceiling height is below grade, attic space having a floor-to-ceiling height less than seven (7) feet, open stairways, walkways, porches and balconies, and common areas not served by heating and/or air conditioning.
“Hedge” means plants, trees or shrubs planted in a continuous line to form a dense thicket or barrier. For the purpose of this chapter, a hedge is a fence.
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10 “Home occupation” means a business activity conducted entirely within or from an enclosed dwelling.
“Hospital” means a facility providing medical, psychiatric or surgical services for sick or injured persons primarily on an in-patient basis, including facilities for outpatient and emergency treatment, diagnostic services, training, research and administration, and services to patients, employees or visitors.
“Hotel” means any building, portion of a building, or group of buildings containing guest rooms which is designed, used, or intended for use for the accommodation of transients on a commercial basis.
“Identification sign” means a sign which is limited to the name and address of a business, institution or person and to the activity or product carried on in the business or institution or the occupation of the person.
“Interior lot” means any lot other than a corner lot.
“Junior accessory dwelling unit” means a unit that is no more than five hundred (500) square feet in size and contained entirely within a single-family residence. A junior accessory dwelling unit may include separate sanitation facilities, or may share sanitation facilities with the existing structure.
“Key lot” means the first lot to the rear of a corner lot, the front line of which is a continuation of the side line of the corner lot, and fronting on the street which intersects or intercepts the street on which the corner lot fronts. “Laundromat” means a place where patrons wash, dry or dry clean clothing or other fabrics in machines operated by the patron.
“Liquor/alcohol sales/bars (on-site consumption)” means an area primarily devoted to the serving of alcoholic beverages and in which the service of food is only incidental to the consumption of such beverages.
“Living area” means the interior habitable area of a dwelling unit, including basements and attics, but does not include a garage or any accessory structure. “Lot” means a parcel of land under one (1) ownership used or capable of being used under the regulations of this chapter, and including all required yards and other open spaces.
“Lot area” means the computed area contained within the lot lines of a parcel as recorded under a record of survey map, approved as provided in the Subdivision Map Act, except that the access strip of a flag lot shall be excluded in the computation of required lot area.
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11 “Lot coverage” means that portion of a lot covered by all main and accessory buildings on the lot.
“Lot depth” means the average distance from the front lot line to the rear lot line. “Main building” means the largest building on a lot in which the principal land use of the lot takes place.
“Manufactured housing” means housing which was structurally assembled in a remote location and transported to its eventual site.
“Marijuana” means any or all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin or separated resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds or resin, including marijuana infused in foodstuff or any other ingestible or consumable product containing marijuana. The term “marijuana” shall also include “medical marijuana” as such phrase is used in the August 2008 Guidelines for the Security and Non-Diversion of Marijuana Grown for Medical Use, as may be amended from time to time, that was issued by the office of the Attorney General for the State of California or subject to the provisions of the California Health and Safety Code Section 11362.5 (Compassionate Use Act of 1996) or California Health and Safety Code Sections 11362.7 to 11362.83 (Medical Marijuana Program Act). “Marijuana cultivation” means growing, planting, harvesting, drying, curing, grading, trimming, or processing of marijuana, regardless of whether there is an intent to produce, distribute, or sell the resulting product commercially. “Marijuana delivery” has the same meaning as “delivery” as provided in California Business and Professions Code Section 26001(p) as may be amended, and includes the commercial transfer of marijuana or marijuana products to a customer. Marijuana delivery also includes the use by a retailer of any technology platform, whether owned or controlled by the retailer or independently licensed, that enables customers to arrange for or facilitate the commercial transfer by a licensed retailer of marijuana or marijuana products.
“Marijuana dispensary” or “marijuana dispensaries” means any business, office, store, facility, location, retail or wholesale component of any establishment, cooperative or collective that delivers (as delivery is defined in Business and Professions Code Section 26001(p) or any successor statute thereto) whether mobile or otherwise, dispenses, distributes, exchanges, transmits, transports, sells or provides marijuana to any person for any reason, including members of any medical marijuana cooperative or collective consistent with the August 2008 Guidelines for the Security and NonDiversion of Marijuana Grown for Medical Use, as may be amended from time to time,
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12 that was issued by the office of the Attorney General for the State of California or subject to the provisions of the California Health and Safety Code Section 11362.5 (Compassionate Use Act of 1996) or California Health and Safety Code Sections 11362.7 to 11362.83 (Medical Marijuana Program Act), or otherwise engages in any commercial marijuana activity.
“Marijuana processing” means any method used to prepare marijuana or its byproducts for commercial retail and/or wholesale, including but not limited to: drying, cleaning, curing, packaging, and extraction of active ingredients to create marijuana related products and concentrates.
“Marquee” means a temporary or permanent roofed structure usually projecting above an outer door and attached to or supported by a building, which is designed for use as a reader board sign.
“Master plan” means the development plan for a project submitted under a planned unit development (PUD) process, with completed CEQA (California Environmental Quality Act) analysis, reviewed by the planning commission and adopted by the city council. “Mechanical amusement device” means any machine, device, apparatus or other instrument (including, but not limited to, electronic games, marble games and pinball games) the operation of which is permitted, by the payment of any fee or fees for its use, and the use or possession of which is not prohibited by any laws of the State of California.
“Medical marijuana collective” or “cooperative or collective” means any group that is collectively or cooperatively cultivating and distributing marijuana for medical purposes that is organized in the manner set forth in the August 2008 Guidelines for the Security and Non-Diversion of Marijuana Grown for Medical use, as may be amended from time to time, that was issued by the office of the Attorney General for the State of California or subject to the provisions of the California Health and Safety Code Section 11362.5 (Compassionate Use Act of 1996) or California Health and Safety Code Sections 11362.7 to 11362.83 (Medical Marijuana Program Act). “Medical or dental office/clinic” means a facility, other than a hospital, that provides professional medical services, consultation, diagnosis and treatment of clients on an outpatient basis. This may include a group practice in which several physicians work cooperatively, and/or educational aspects such as medical instruction and/or training as well as house a laboratory, radiology/imaging, pharmacy, rehabilitation and other similar services as accessory uses.
“Membrane accessory structure” means an accessory structure covered by a thin, soft, or pliable sheet or layer, such as canvas, plastic, metal, or fabric.
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13 “Mobile home” means a type of manufactured housing, designed or used for residential occupancy, built upon or having a frame or chassis to which wheels may be attached by which it may be transported, whether or not such structure actually has, at any given time, such wheels attached. Mobile homes do not include recreational vehicles, trailers, or commercial coaches.
“Monument sign” means a low-profile, freestanding sign seven (7) feet or less in height. “Motel” means a building or group of buildings on the same lot, containing guest rooms, used or designed for use for the accommodation of transients on a commercial basis, which are independently accessible from the outside. The term includes any building or building groups designated as an auto court, motor lodge, or tourist court. “Motor home” means a self-powered vehicle designed, equipped or used as a dwelling or for living or for sleeping purposes.
Multifaced Sign. A “multifaced sign” is a sign, including advertising statuary, which has four (4) or more faces and which is designed to be viewed from more than two (2) directions.
“Multiple-family building” means a building or structure designed and intended to be occupied as living quarters by three (3) or more families, living independently of each other.
“Museum” means a building, place, or institution devoted to the procurement, care, study, and display of objects of lasting interest or value. “Navigation center” means housing first, low-barrier, service-enriched shelter focused on moving homeless individuals and families into permanent housing that provides temporary living facilities while case managers connect individuals experiencing homelessness to income, public benefits, health services, shelter, and housing. “Neighborhood recreational facility” means a land use designed to provide recreational, aesthetic, ornamental, horticultural (e.g., community gardens) or childcare services to local residents at a neighborhood scale.
“Nonconforming building” means a building or structure or portion thereof lawfully existing on the effective date of the ordinance codified in this chapter which does not conform to the property development standards of this chapter for the zoning district in which it is located.
“Nonconforming lot” means a lot existing on the effective date of the ordinance codified in this chapter or amendment to the ordinance codified in this chapter that does not conform to the lot requirements of this chapter.
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14 “Nonconforming sign” means a sign which was lawfully erected but does not comply with this chapter due to annexation of the property to the city, or amendment to the Zoning Ordinance or map by a person other than the owner of the real property on which the sign is erected. This definition does not include signs which were lawfully erected but which do not comply with this chapter due to division of real property on which the sign is erected, alterations to any building on the parcel where the sign is located or rezoning by the owner of the real property where the sign is located. “Nonconforming uses” means a utilization or occupancy of any site lawfully utilized or occupied on the effective date of the ordinance codified in this chapter or amendment to the ordinance codified in this chapter which is not a permitted use for the district in which it is located, according to this chapter.
“Numerical limit” means the total number of dwelling units for residential development projects not exempted by section 30.50.60(b)(2) for which building permits may be issued within the city during a given calendar year. The numerical limit is set by resolution of the city council.
“Off-site sign” means a sign, such as a billboard, which is not located on the same parcel of land as the entity or product it advertises.
“Office” means uses that predominantly sell professional and/or business services. The contact with the general public is not as frequent as with retail businesses or personal services, and a significant portion of the business may take place at other locations.
Examples include banks, law offices, accountants, advertising, and computer support. “Open space” means any parcel or area of land essentially unimproved or in its natural state and which is designated in the general plan for and devoted to an open space use including, but not limited to, public recreation, enjoyment of scenic beauty, conservation or use of natural resources, production of food or fiber, protection of man and his artifacts, buildings or property because of environmentally hazardous areas, containment and structuring of urban development, and preservation of historical sites.
Park. See “Public park.”
“Parking lot” means an area of land, a yard, or other space on a lot legally used for and designed for access and parking by standard, and operable, motor vehicles. This definition excludes land used for display, rental or storage of operable or inoperable vehicles.
“Parking space” means land or space which is owned, paved, laid out for, and used or designed to be used for a standing vehicle.
“Person” shall mean any individual, firm, co-partnership, joint venture, association, social club, fraternal organization, corporation, estate, trust, business trust, receiver,
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15 syndicate, county, city and county, municipality, district, joint powers authority or other political subdivision, or any other group or combination acting as a unit. “Personal services” means commercial uses providing needed services of a personal nature. Personal services generally include barber and beauty shops, nail salons, tanning and spa salons, seamstresses, tailors, shoe repair shops, dry cleaning (except bulk processing plants), and self service laundries.
“Planning commission” means the planning commission of the City of Gilroy. “Planning manager” means the person employed by the city as head of the planning division of the City of Gilroy. The planning manager also serves as zoning administrator and secretary of the planning commission.
“Political sign” means a sign which is intended to influence the vote for the passage or defeat of a measure, or nomination, election or defeat of a candidate in any governmental election.
“Portable sign” means a sign which is movable, not structurally attached to the ground, nor attached to a building. Such sign may or may not be in the configuration of an “A.” “Project rating scale” means a measuring device, composed of a number of general and specific rating criteria relating to project design, location, and other characteristics, used for assigning point ratings to proposed residential projects. “Projecting sign” means a sign erected on the wall of a building or structure, or suspended from an overhang, with display surfaces generally not parallel to the wall. “Promoter” means any person who is directly or indirectly responsible for the promotion of the public dance as evidenced by activities such as, but not limited to, contracting with the principals, selecting entertainment, advertising or otherwise holding out the event to members of the general public, inviting participants to the event, renting or controlling the event site, or serving as a designated on-site representative while the public dance is occurring.
“Public access floor area” means the combined area within a single venue in which public dancing occurs that includes seating areas, stage, dance floor, dining areas, bar areas, reception areas, and foyers, but does not include kitchens, restrooms, storage areas, food preparation areas and busing areas.
“Public dancing” means dancing that occurs by persons (other than performers) in or upon any premises that members of the general public are admitted to, during any planned or unplanned event, as either the main purpose of the event or as incident to some other purpose, with or without payment of a fee, charge or other consideration.
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16 “Public park” means a park, playground, swimming pool, or athletic field within the City of Gilroy which is under the control, operation, or management of the city or county parks and recreation department or the Gilroy unified school district. “Reader board sign” means a sign which is designed for manual or electrical changing of copy.
“Realty sign” means a sign of a temporary nature which pertains to the sale, lease, rental, or display of existing lots or buildings or other facilities. “Rear yard” means the required setback area extending across the full width of the lot and measured between the rear lot line and the rear setback line. “Recreational vehicle” means a vehicular unit not exceeding forty (40) feet in overall length, eight (8) feet in width, or twelve (12) feet in overall height, primarily designed as temporary living quarters for recreational, camping or travel use. Such a vehicle either has its own motive power or is designed to be mounted on or drawn by an automotive vehicle. Recreational vehicle includes motor homes, truck campers over seven (7) feet in height, travel trailers and camping trailers, but not vans or trucks with campers less than seven (7) feet in height.
“Religious institution” means a building which is used primarily for religious worship and/or related religious activities.
“Residential care home” means a resident-occupied dwelling, licensed by the state/county; in which children and/or adults are cared for on a full-time, live-in basis. “Residential project” means a development project which will result in the construction of new dwelling units in the city. Residential projects include single-family, multiplefamily, mobile home and condominium dwelling units. Such projects may or may not involve the subdivision of land.
“Retaining wall” means a wall designed to contain soil on one (1) side of the wall which is at a higher elevation than that on the other side of the wall. “Ridgeline” means the highest point along the crest of a hillside from which the contours descend in at least two (2) directions.
“Roof sign” means an attached sign erected on a roof or projecting above the eave or rake of a building or coping of a parapet. A sign erected on top of a canopy, covered passageway, awning or marquee shall be considered a roof sign. “Scenic land” means any area of land or water with natural scenery considered to have beauty as designated in the general plan.
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17 “School” means an institution of learning for minors, whether public or private, which satisfies compulsory education laws of the State of California and/or offers instruction in those courses of study required by the California Education Code or which is maintained pursuant to standards set by the State Board of Education. This definition includes a kindergarten, elementary school, junior high school, senior high school, or a special institution of learning under the jurisdiction of the State Department of Education, but it does not include a vocational or professional institution or an institution of higher education, including a community or junior college, college or university. “Setback line” means a line established by this chapter to govern the placement of a building or a structure with respect to its lot boundary lines. “Side yard” means the required side setback area between the side lot line and the side setback line, and extending from the front lot line to the rear lot line. “Sign” means any writing, pictorial, representative, symbol, registered trademark, flag (other than the United States or California flags) or any similar figure used to identify, announce, direct attention, or advertise or communicate, together with any material or color forming an integral part of the display or used to differentiate the sign from the background, which is located on private or public property and is visible from outside a building. Includes all parts, portions, units and materials, together with frames, delineated background, structure, support or anchorage for same, which is temporarily or permanently placed, erected, constructed, posted, painted, tacked, nailed, glued, carved, hung, strung or otherwise fastened or affixed to the ground or to any post, fence, building structure, wall, roof or tree.
“Sign area” means the entire area within a single continuous perimeter of not more than eight (8) straight lines forming right angles enclosing the extreme limits of writing, representation, emblem, or any figure of similar character, together with any material or color forming an integral part of the display, or used to differentiate such sign from the background against which it is placed. The supports, uprights or structure on which any such sign is supported shall not be included in determining the sign area unless such supports, uprights or structure are or is designed in such a manner as to form an integral background of the display. In computing maximum permissible sign area, all signs designed or likely to be seen from off the premises upon which the signs are located or proposed to be located shall be included in determining conformance with this chapter. For three (3) dimensional signs, the sign area of one (1) side, and the sign area of the side perpendicular to the first side, are calculated in the manner prescribed above, and combined to become the total sign area.
“Sign height” means the vertical distance from the soil level of the surrounding area to the highest point of the sign or any vertical projection.
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18 “Sign value” means valuation of a particular sign as stated on the sign permit application. If this information is not available, or if evidence satisfactory to the planning director demonstrates that the stated value is erroneous, then the valuation of that sign shall be arrived at by the planning director who shall consider the evidence submitted and compare the particular sign with one (1) or more existing signs in the city of similar age and construction.
“Single-family dwelling” means a building or portion of a building designed for occupancy by one (1) family constituting a single housekeeping unit having only one (1) kitchen, but not including a boarding house, motel or hotel. “Slope-density” means a system under which residential densities are determined by a formula based on the average slope of the contours of the area. (See “Average slope.”) “Smoke shop” means any establishment, structure, facility, or stand that devotes more than fifteen (15) percent of either its gross floor space or display area to the retail sale, display, marketing, bartering, trading or exchange of any combination of tobacco, tobacco products, or tobacco paraphernalia, including electronic smoking devices and accessories, as defined per City Code Chapter 13, Article VIII, Section 13.66.” “Solar energy system” means any structural design feature, solar collector or other energy device, the primary function of which is to provide for the collection, storage or distribution of solar energy.
“Sound wall fence” means a wall fence, constructed of materials such as concrete block, brick, stone, concrete, steel or stucco, designed to reduce the level of nearby sounds.
“Specific plan” means a project implementing the City of Gilroy’s general plan for all or part of an area covered by the general plan, processed pursuant to the state laws governing specific plans which are set forth in California Government Code Section 65450 et seq., reviewed by the planning commission review and adopted by the city council.
“Story” means that portion of a building included between the upper surface of any floor and the upper surface of the floor next above, except that the topmost story shall be that portion of a building included between the upper surface of the topmost floor and the roof thereof. For any finished floor level which is more than six (6) feet above grade for more than fifty percent (50%) of the total perimeter or is more than twelve (12) feet above grade at any point, the space directly below shall be considered a story. “Street” means a public or permanent private right-of-way, thirty (30) feet or more in width, which affords a primary means of access to property.
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19 “Street frontage” means the length of a site along or fronting on a street or other principal thoroughfare but not including such length along an alley, watercourse, railroad right-of-way or limited access roadway or freeway.
“Structural alteration” means any change in the supporting members of a building, such as bearing walls, columns, beams, girders, floor joists, ceiling joists or roof rafters. “Structure” means anything constructed or erected upon the ground or attached to such construction having location on the ground, but excluding swimming pools and uncovered paved areas such as patios and parking lots.
“Supportive housing” means housing with no limit on length of stay, that is occupied by the target population and that is linked to on- or off-site services that assist the supportive housing resident in retaining the housing, improving his or her health status, and maximizing his or her ability to live and, when possible, work in the community. [Health and Safety Code Section 50675.2(h)]
“Target population” means adults with low income having one (1) or more disabilities, including mental illness, HIV or AIDS, substance abuse, or other chronic health conditions, or individuals eligible for services provided under the Lanterman Developmental Disabilities Services Act (Division 4.5 (commencing with Section 4500) of the Welfare and Institutions Code) and may, among other populations, include families with children, elderly persons, young adults aging out of the foster care system, individuals exiting from institutional settings, veterans, or homeless people. [Health and Safety Code Section 53260(d)]
“Temporary business establishment” means an activity involving the sale or display of merchandise in the open, in a vehicle, or in a temporary building or structure, or for a limited time in a permanent building or structure.
“Temporary sign” means a sign, usually constructed of light materials, displayed for thirty (30) days or less.
“Townhouse” means a condominium dwelling unit which is the sole dwelling unit on a separate parcel of land, with no dwelling units above or below it. “Trailer” means a vehicle without motive power not exceeding forty (40) feet in overall length, eight (8) feet in width, or twelve (12) feet in overall height, including a boat mounted on a trailer, designed so that it can be drawn by a motor vehicle, to be used for the carrying of boats, persons, cargo or animals.
“Transitional housing” means buildings configured as rental housing developments, but operated under program requirements that call for the termination of assistance and recirculation of the assisted unit to another eligible program recipient at some
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20 predetermined future point in time, which shall be no less than six (6) months and shall not exceed two (2) years. [Health and Safety Code Sections 50675.2(h) and 50801(i)] “Triple-faced sign” means a three (3) sided sign designed to be viewed from more than two (2) directions, and which forms a triangular shape. “Truck stop” means a facility used for the fueling and short-term parking of tractor-trailer transport vehicles. Truck stops may include related fueling facilities, weigh stations, traffic routing offices, temporary truck storage areas, restaurants, wash racks, minor repair facilities and related business offices and motels. “Use” means the purpose, for which land or a building is occupied or maintained, let or leased.
“Veterinarian office” means an office providing medical care for small animals where the animal holding facilities are totally enclosed and the animals are boarded overnight only. “Veterinary hospital” means a facility providing medical care for domestic pets such as dogs, cats, reptiles, birds and similar animals which may include boarding the animals two (2) or more days. This definition excludes domestic farm animals such as cattle, hogs, sheep, and horses.
“Vocational school” means a commercial land use that involves the instruction to students of special skills, knowledge, or techniques that are generally related to furthering a specific vocation or professional occupation. Vocational schools include trade schools, business schools, cosmetology schools and schools for selfimprovement. “Wall sign” means a sign erected on a wall or fascia of a building or structure (other than a structure whose main purpose is to support a sign), the face of which is parallel to the wall or fascia and all of which is below the coping of the parapet, the top of the fascia, the eave line or below the top of the wall on which it is mounted. A sign which meets the definition of this paragraph, but is erected between posts, pillars, or columns which support a roof or second story, rather than on a wall, is also a wall sign. “Waste material handling facility” means an area of one hundred (100) square feet or more, including wrecking yards, used for the storage or dismantling of junk, scrap metals, materials salvaged from wrecked or demolished buildings, automobiles, machinery or equipment.
“Wildlife habitat” means any area of land or water valuable or necessary for the preservation or enhancement of wildlife resources.
“Window” means an opening constructed in a wall that functions to admit light or air to an enclosed structure, and is often framed and spanned with glass mounted to permit
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21 opening and closing. Mullions may be present, decoratively or structurally, as part of a mullioned window.
“Window sign” means a sign which is displayed on or located behind and within one (1) foot of a window (not including a glass entry door), and is visible from a street, walkway, parking lot, or pedestrian plaza, any of which is accessible to the public. “Wire mesh fencing” means fence material which derives its strength from metal strands crossing in a regular pattern, including, but not limited to, those materials known as chain link or chicken wire, but does not include ornamental wrought iron fencing.
Zoning Administrator. See “Planning manager.” (Ord. No. 2013-08, § 2 (Exh. A), 8-5-13; Ord. No. 2014-01, § 1, 1-27-14; Ord. No. 2014-06, § 1, 5-5-14; Ord. No. 2015-01, § 3, 5-4-15; Ord. No. 2016-01, § 2, 1-25-16; Ord. No. 2017-06, §§ 1, 2, 11-20-17; Ord. No. 2017-07, §§ 1, 2, 12-4-17; Ord. No. 2018-02, §§ 2, 3, 1-8-18; Ord. No. 2019-08, §§ 2, 3, 10-7-19; Ord. No. 2020-03, § 2, 7-6-20; Ord. No. 2023-04, § 2, 5-15-23)
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22 30.19.10 Commercial use table.
(a) Statement of Intent. The intent of this commercial use table is to clearly and precisely designate permitted uses and conditional uses within each of the following districts:
PO Professional Office
C1 Neighborhood Commercial
C3 Shopping Center Commercial
HC Highway Commercial
CM Commercial Industrial
Downtown Specific Plan Districts
DHD Downtown Historic District
DED Downtown Expansion District
CCA Civic/Cultural Arts District
TD Transitional District
CD Cannery District
GD Gateway District
(b) Designation of Commercial Uses. The commercial use table indicates whether a variety of uses are unconditionally permitted, permitted only with a conditional use permit from the planning commission, or permitted only under special conditions. The planning commission, or its designee, shall determine, upon written request, whether or
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23 not any use not listed in the commercial use table is similar in character to a described use for the purpose of applying the district regulations and conditions. (c)(1) Commercial Use Table.
PO C1 C33 HC CM
Commercial Uses
Adult Businesses1 C
Animal Boarding C15 C15
Animal Grooming or Training X X X
Veterinary Hospital/Veterinary Office C C X X
Antique Shop X X X X
Appliance Repair X X X
Arcade X X
Art Studio or Gallery X X X
Auction House X X
Auto Body Repair and Painting C
Automobile Parts Sales X X X
Automobile Repair X X
Automobile Sales (Indoor or Outdoor) X X
Automobile Sales, Temporary6 C C C
Automotive Gasoline/Fueling Station C X X X
Car Wash X X
Tire Shop X X X
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24 PO C1 C33 HC CM
Bank C X X X
Bakery/Coffee House X X C X
Bars: On-Site Liquor/Alcohol Consumption (Except as Ancillary to a Restaurant Use)
C4,9 X9 X9 X9
Bed and Breakfast Establishment X X X X
Boat and Motorcycle Sales X X
Bowling Alley X X
Building Materials Sales and Storage X X
Card Room C C
Clothing Sales/Service Establishment X X X
Contractor’s Yard X
Dance Venue, Small X X X X
Dance Venue, Medium12 X X
Dance Venue, Large12 X X
Desktop Publishing/Copy Shop X X X X
Feed Store C C X
Festival T T T
Grocery Store or Deli/Supermarket X X X
Gymnasium/Health Studio X X X
Home Occupation10 X X X X
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25 PO C1 C33 HC CM
Hotel, Motel X X X
Laboratory (Research and Testing) C X X
Landscape Nursery X X
Liquor/Alcohol Sales with Tasting (Wine and Beer Only)9 X9 X9 X9 Liquor/Alcohol Sales (Off-Site Consumption)9 C9 X9 X9 X9 Medical or Dental Office/Clinic X X X X
Mortuary or Crematory X X
Newspaper Printing Facility X
Office X X X X
Outdoor Amusement/Recreation14 C C C
Parking Lot X X X
Pawn Shop X X
Personal Services11 X X X
Pool and Billiards Establishment and Indoor Recreation X X Printing/Sign Painting Establishment X X
Restaurant17 X X X X
Retail Sales Establishments X X C X
Smoke Shop18
Theater X X X
Therapy Clinic (Licensed Provider) X X X X
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26 PO C1 C33 HC CM
Tire Shop X X X
Tow Yard C
Light Industrial Uses
Light Industrial Uses Permitted in M17 X
Plumbing or Sheet Metal Shop X
Pottery and Ceramics Manufacturing X
Truck Stop C C
Public and Semi-Public Uses
Ambulance Service X X X X
Religious Institution X X X C
Community Center C X X
Day Care Center C X X C
Emergency Shelter16 C C C C X
Hospital, Rest Home, Sanitarium X X
Lodge, Club, or Fraternal Hall C C X X
Public Facility X X X C X
School (Private ≤ 12 Students) X X X X
School (Private > 12 Students) C C C C
Residential Uses
Boarding or Rooming House C
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27 PO C1 C33 HC CM
Caretaker’s Quarters2 C C C C C
Residential Unit C5 X5 X5
Temporary Uses
Christmas Tree Lot T T T T
Outdoor Booth/Sales13 T T T T T
X = Unconditionally permitted.
T = Temporary use—See Article XLVII.
C = Permitted only with conditional use permit granted by planning commission. 1 Conditionally permitted in the C3 district except for C3 property that is part of a block which abuts First Street, and in accordance with the requirements set forth in Article XXVIII.
2 If a caretaker’s residence is in a trailer or a mobile home, a conditional use permit is required and is valid for only one (1) year, with a maximum one (1) year extension. One (1) unit for caretaker’s quarters is an unconditionally permitted use when in conjunction with hotels, motels, bed and breakfast establishments, ambulance services, churches or mini-storage facilities.
3 Commercial uses proposed east of the South Valley Freeway, on property zoned C3 (shopping center commercial), shall meet the following findings prior to establishment:
(a) The intent of the proposed business is to merchandise products and/or provide services to a clientele base which represents a regional draw; and (b) A regional draw shall mean a clientele base with at least seventy-five percent (75%) of the customers residing outside the city limits. 4 The requirement for a conditional use permit does not apply to businesses whose primary use is the preparation and service of food.
5 Residential units may be allowed in conjunction with an existing business.
Standalone single-family residential use of a lot is not permitted. Residential units in the C3 zones may be allowed when located on the second or third floor of a building. More than one (1) residential unit may be allowed upon approval of a conditional use permit
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28 pursuant to section 30.50.30. All residential unit projects within commercial zones shall comply with the following guidelines:
(a) The number of residential units shall not compromise the quality or character of any existing or proposed businesses located on the same property; (b) The number of residential dwellings shall be limited by the availability and provision of off-street parking stalls;
(c) All bedrooms proposed for residential use shall meet minimum square footage requirements in compliance with the Uniform Building Code; and (d) Open space shall be provided, when feasible.
6 A conditional use permit may be granted to an auto-related sales business for up to four (4) temporary auto sale events on the same property within one (1) calendar year. 7 Uses allowed in the M1 zoning district subject to a conditional use permit are also subject to conditional use permit in the CM zoning district. 8 These uses are unconditionally permitted on the second story and above. Any time these uses are proposed for the first floor (sidewalk level), a conditional use permit is required.
9 Requests for new State Alcoholic Beverage Control (ABC) alcoholic beverage licenses are subject to review and approval of the city’s chief of police. 10 Permitted only if the regulations of Article XL are met. 11 Commercial uses providing needed services of a personal nature. Personal services generally include barber and beauty shops, nail salons, tanning and spa salons, seamstresses, tailors, shoe repair shops, dry cleaning (except bulk processing plants), self service laundries, massage parlors, and tattoo and piercing parlors. 12 Provided, that all provisions set forth in Chapter 8 are satisfied. See also Article II, “Definitions,” for additional use specifications.
13 Outdoor booths and sales are permitted for thirty (30) days per calendar year, in compliance with the city’s temporary use policy.
14 Outdoor amusement and recreation facilities require a conditional use permit.
Indoor amusement and recreation facilities are permitted without a conditional use permit.
15 A conditional use permit is required for animal boarding within one hundred fifty (150) feet of residential properties and/or for businesses that board animals outside.
Businesses that board animals more than one hundred fifty (150) feet from residentially
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29 zoned properties do not require a conditional use permit as long as the animals are contained inside a building.
16 Emergency shelters shall be subject to the performance standards listed in section 30.41.32.
17 A drive-through window may be allowed for retail establishments/restaurant uses outside of the downtown.
18 Smoke shops are not allowed in commercial or any other zoning district. (2) Downtown Commercial Use Table.
DHD DED CCA TD CD GD
Commercial Uses
Animal Boarding X11 X11 X11 C19
Animal Grooming or Training X X X X
Animal Hospital/Veterinary Office X
Antique Shop X X X X
Appliance Repair X X X
Arcade and Internet Access as Primary Use X X X X
Art, Dance, Gymnastic and Music Studios or Galleries X X X X X X Auction House X4 X X
Automotive Body Repair and Painting C
Automotive Car Stereos and Alarm Systems Sales and
Installation
X17 X17 X17
Automotive Car Wash X
Automotive Gasoline/Fueling Station X10 X
Automotive Parts Sales X10 X
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30 DHD DED CCA TD CD GD
Automotive Repair and Service X10 X13
Automotive Sales X9 X X
Automotive Sales, Temporary3 C C C C
Automotive Tire Shop X10 X
Bank X X X X X
Bakery/Coffee House X X X X X X
Bakery, Commercial C12 C12 X X
Bed and Breakfast Establishment X X X
Boat and Motorcycle Sales X X
Bowling Alley X X X
Building Materials Sales and Storage X
Card Room C C
Clothing Sales/Service Establishment X X X X X
Cottage Industry with Light Manufacturing and Assembly X X Dance Venue, Small X X X X X X
Dance Venue, Medium15 X X X X X X
Dance Venue, Large X16 X16 X16 C15
Desktop Publishing/Copy Shop X4 X X X X X
Festival T T T T T T
Grocery Store or Deli (Not Supermarket) X X X X X X
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31 DHD DED CCA TD CD GD
Gymnasium/Health Studio X X X X X X
Home Occupation6 X X X X X X
Hotel, Motel X X X
Laboratory (Research and Testing) X4 C C X
Landscape Nursery X
Liquor/Alcohol Sales/Bars (On-Site Consumption of Beer, Wine, or Liquor, not including Micro-Brewery and Wine
Tasting Provisions below)5
C1 C1 C1 C1 C1
Liquor/Alcohol Sales (Off-Site Consumption)5 C C C C
Medical or Dental Office/Clinic X4 X X X
Micro-Breweries and Wine Tasting21 D D D
Museums X X X X X X
Mortuary or Crematory C X X
Newspaper Printing Facility X
Office X4,22 X X X X X
Outdoor Amusement/Recreation18 C
Parking Lot (Automobile Parking) X X X X X X
Pawn Shop X X
Personal Services7 X8 X8 X X X X
Pool/Billiards Establishment and Indoor Recreation X X C Printing/Sign Painting Establishment X X X X
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32 DHD DED CCA TD CD GD
Restaurant X X X X X X
Restaurant with Drive Through X X
Retail Sales 10,000 sq. ft. or Less X X X X X
Retail Sales 10,001 sq. ft. to 50,000 sq. ft. X X
Retail Sales 50,001 sq. ft. or More X
Smoke Shop23
Supermarket X X
Theater X X X X X X
Therapy Clinic (Licensed Provider) X4 X X X X
Tow Yard (No Dismantling or Parts Sales) C
Public and Semi-Public Uses
Ambulance Service X10 X X
Community Center X4 X X X X X
Adult or Child Day Care Center C X X X X
Emergency Shelter20 C C C C C C
Hospital, Rest Home, Sanitarium C X
Lodge, Club, or Fraternal Hall X4 C X C X
Public Facility X X X X X X
Religious Institution X4 X X X X
School (Private ≤ 12 Students) X4 X X X X X
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33 DHD DED CCA TD CD GD
School (Private > 12 Students) C C C C C C
Residential Uses
Boarding or Rooming House C C C
Caretaker’s Quarters X X X X X C
Residential Units2 X4 X4 X14 X X X
Temporary Uses
Bazaar T T T T T
Christmas Tree Lot T T T T
Outdoor Booth/Sales T T T T T T
X = Unconditionally permitted.
T = Temporary use—See Article XLVII.
C = Permitted only with conditional use permit granted by planning commission.
D = Permitted only with an administratively approved downtown use permit granted by the community development director, or his/her designee. 1 The requirement for a conditional use permit does not apply to businesses whose primary use is the preparation and service of food, and liquor/alcohol is served as a clearly ancillary use.
2 All residential unit projects within commercial zones shall comply with the following guidelines:
(a) The number of residential units shall not compromise the quality or character of any existing or proposed businesses located on the same property; (b) The number of residential dwellings shall be limited by the availability and provision of off-street parking stalls or as allowed by ordinance; (c) All bedrooms proposed for residential use shall meet minimum square footage requirements in compliance with the Uniform Building Code; and (d) Open space shall be provided, when feasible.
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34 (e) Notwithstanding subsections (a) and (b) of this footnote, the minimum residential density in the DHD, DED and CD districts shall be twenty (20) units per acre. (f) Development of new standalone single-family residential use on a lot within the downtown commercial districts is not allowed. However, an existing legally permitted historic single-family residence shall be deemed a conforming land use. 3 A conditional use permit may be granted to an auto related sales business for up to four (4) temporary auto sales events on the same property within one (1) calendar year. 4 These uses are unconditionally permitted on the second story and above. Any time these uses are proposed for the ground level or first floor (sidewalk level), a conditional use permit is required. Residential units in these zones shall not front on the street. 5 Requests for new State Alcoholic Beverage Control (ABC) alcoholic beverage licenses are subject to review and approval of the city’s chief of police. 6 Permitted only if the regulations of Article XL, Home Occupation, are met. 7 Commercial uses providing needed services of a personal nature. Personal services generally include barber and beauty shops, nail salons, tanning and spa salons, seamstresses, tailors, shoe repair shops, dry cleaning (except bulk processing plants), self service laundries, massage parlors, and tattoo and piercing parlors, except where expressly prohibited (see footnote 8).
8 Uses offering the primary personal services of massage, tattoo, and/or piercing are prohibited.
9 Indoor only for the display and sales of automobiles with no repair or servicing. 10 Not permitted on any parcel fronting on Eigleberry Street or on those parcels that may front a side street on the one-half (1/2) block west of Gourmet Alley. 11 Day boarding only allowed; no overnight boarding.
12 Must have a prominent ancillary retail outlet or use. 13 Must be approved by a conditional use permit if within one hundred fifty (150) feet of a residential use.
14 Residential units may be allowed on the ground floor if located between Eigleberry and Church Streets behind a business.
15 Only allowed ancillary to a primary use (see Article II, Definitions). Provided, that all other provisions set forth in Chapter 8 are satisfied.
16 Up to three (3) large dance venues are allowed in the DHD downtown historic district, DED downtown expansion district, CCA civic/cultural arts district, combined, and
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35 only located on Monterey Street between 1st St. and 10th St. and only with a downtown special use permit granted by the community development director or designee; and provided, that all provisions set forth in Chapter 8 are satisfied. City council approval is required for the fourth or more large dance venue in the DHD downtown historic district, DED downtown expansion district, CCA civic/cultural arts district, combined, and only located on Monterey Street between 1st St. and 10th St. and only with a downtown special use permit granted by the community development director or designee; and provided, that all provisions set forth in Chapter 8 are satisfied. 17 Sales shall be limited to car stereos and alarm systems, and installation and servicing must take place indoors. In the gateway district, outdoor installation and servicing may occur. However, a conditional use permit is required if located within one hundred fifty (150) feet of a residentially zoned property. 18 Outdoor amusement and recreation facilities require a conditional use permit.
Indoor amusement and recreation facilities are enumerated under “pool/billiards establishment and indoor recreation.”
19 A conditional use permit is required for animal boarding within one hundred fifty (150) feet of residential properties and/or for businesses that board animals outside.
Businesses that board animals more than one hundred fifty (150) feet from residentially zoned properties do not require a conditional use permit as long as the animals are contained inside a building.
20 Emergency shelters shall be subject to the performance standards listed in section 30.41.32.
21 Administrative approval of a downtown use permit is required when criteria set forth in section 30.50.35 are met. Any micro-brewery or wine tasting uses not meeting the criteria noted in section 30.50.35 would fall into the liquor sales/bars (on-site consumption of beer, wine, or liquor, except uses meeting micro-brewery and wine tasting provision) category in the use table.
22 Within the downtown historic district (DHD) zone district, along Monetery Road north of 4th Street and south of 6th Street, ground level active office uses shall be allowed without a conditional use permit until September 1, 2020. Active office uses are those that operate in a manner that promotes and enhances pedestrian activity in the downtown area, in alignment with the downtown specific plan vision. After that date, conditional use permit approval shall be required for such uses throughout the DHD zone district.
23 Smoke shops are not allowed in commercial or any other zoning district.
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36 (Ord. No. 2013-08, § 2 (Exh. A), 8-5-13; Ord. No. 2014-05, § 2, 5-5-14; Ord. No. 2014- 06, §§ 3, 4, 5-5-14; Ord. No. 2016-05, § 1 (Att. A), 3-7-16; Ord. No. 2018-09, § 2, 8-6- 18; Ord. No. 2019-08, §§ 7, 8 (Atts. C, D), 10-7-19)
10.1. City of Gilroy
STAFF REPORT
Agenda Item Title: Council Direction on a Draft Ordinance Amending Chapter 13 of the Gilroy City Code Relating to Tobacco Retailer Permits Meeting Date: June 1, 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: Not Applicable
RECOMMENDATION
Council provide direction on any changes to the draft ordinance.
BACKGROUND
Council established a Legislative Agenda Item entitled “Consideration of Revising the Tobacco Ordinance and a Moratorium on New Tobacco Retailers During Revision Process”. Staff requested Council direction on this item during the August 4, 2025, regular City Council Meeting. Council directed staff to pursue two potential regulatory measures identified in the City’s grant from the County of Santa Clara Public Health Department (CSCPHD). At the time, the Council did not authorize pursuing the moratorium. The two regulatory measures being considered include:
• Reducing the density of tobacco retailers; and
• Flavored tobacco restrictions/bans.
Staff commenced this work, consistent with Council direction, with controls on the amount of staff time to be committed. Staff worked with CSCPHD and its research consultant and conducted some in-house research.
10.1. During this process, concerns about smoke shops and enforcement were raised, and a moratorium on issuing tobacco retailer permits was implemented in parallel. This report focuses on the two previously approved regulatory measures and a potential update to centralize Tobacco Retailer Permit (TRP) enforcement, with the intent of seeking Council direction before investing more staff time and resources into any City Code changes related to these matters.
On May 4, 2026, staff returned to Council to receive direction on the proposed changes.
During that meeting, Council directed staff to add youth-sensitive facilities to the 1,000- foot prohibited area for schools and to examine ways to enhance enforcement, with particular focus on adding measures to address violations of state and federal law, such as illegal drug sales.
ANALYSIS
The proposed amendments enact the Council's desire to add youth-oriented facilities to the 1,000-foot prohibition areas that schools currently enjoy. It also strengthens the City’s tobacco retailer regulations by expanding the permit program beyond traditional tobacco sales compliance to address broader public health, safety, and nuisance concerns. The changes add definitions and enforcement tools related to illegal products, controlled substances, unlawful cannabis products, untaxed tobacco products, drug paraphernalia, chronic nuisance activity, and youth-oriented facilities. This provides clearer authority for the City to regulate tobacco retailers whose operations involve or contribute to unlawful activity.
The amendments also establish additional operating requirements for tobacco retailers, including compliance with applicable local, state, and federal laws; a prohibition on illegal products; consent to inspections; and restrictions on chronic nuisance activity.
These provisions are intended to improve accountability, support enforcement investigations, and help prevent unlawful products or activities from being associated with permitted tobacco retail locations.
The proposed changes further enhance the City’s ability to deny, suspend, or revoke tobacco retailer permits. The amendments allow the City to consider prior unlawful activity, nuisance history, repeated code violations, and attempts to evade enforcement through ownership transfers or restructuring. They also authorize corrective action plans, enhanced inspections, operational conditions, and emergency suspension where continued operation poses an immediate threat to public health, safety, or welfare.
Overall, the amendments provide a stronger and more flexible enforcement framework for addressing noncompliant tobacco retailers. The proposed ordinance would help the City respond more effectively to serious violations, protect youth-oriented facilities and surrounding neighborhoods, prevent sham transfers, and ensure that tobacco retail permits remain a limited and conditional privilege.
10.1. The language in the ordinance is in draft form, and formatting and some minor language modifications may be required to better integrate the edits into the existing code language in the final version for Council consideration.
The ordinance does not include the originally proposed change to the department where the application is to be submitted. Instead, with the enhanced enforcement language and the planned conversion of permits into a permit management software module, staff will retain enforcement as a team approach, with dedicated coordination among the associated departments. Additionally, staff will return to Council each February with a report listing the TRPs issued in the prior calendar year and those that renewed for the then-current year.
ALTERNATIVES
Council may choose to provide direction to modify the definition of youth-oriented facility, or determine whether to modify the enhanced enforcement measures.
FISCAL IMPACT/FUNDING SOURCE
A minimal cost for advertising the public hearing will be incurred, within budgeted appropriations. No additional fiscal impacts from the additional regulations are expected.
PUBLIC OUTREACH
This item was included on the publicly posted agenda for this meeting. In addition, this subject was originally discussed during the strategic planning study sessions in 2025 and again at the City Council meeting on August 4, 2025. Any potential changes to the City Code will have a public hearing advertised, should the Council direct staff to proceed.
NEXT STEPS
Staff will bring back a proposed ordinance for a public hearing and, if approved, for later adoption.
Attachments:
1. Draft City Code Language with Redline Edits
Gilroy City Code
13.66 Definitions.
The Gilroy City Code is current through Ordinance 2026-01, passed January 5, 2026.
13.66 Definitions.
The following words and phrases, whenever used in this article, shall be construed as defined in this section:
“Arm’s length transaction” means a sale in good faith and for valuable consideration that reflects the fair market value in the open market between two (2) informed and willing parties, neither of which is under any compulsion to participate in the transaction. A sale between relatives, related companies or partners, or a sale for which a significant purpose is avoiding the effect of the violations of this article is not an arm’s length transaction. “Chronic nuisance tobacco retailer” means a tobacco retailer location at which three or more qualifying incidents occur within any twenty-four-month (24-month) period. Qualifying incidents include, but are not limited to, unlawful sales of illegal products, controlled substance activity, repeated code violations, violent criminal activity, unlawful gambling activity, repeated police service calls, repeated nuisance violations, or violations of this chapter. “City” means the City of Gilroy and each of its officers and employees designated to enforce or administer the provisions of this article.
“Controlled substance” shall have the same meaning set forth in the California Health and Safety Code Section 11007, as may be amended.
“Drug paraphernalia” shall have the same meaning set forth in California Health and Safety Code Section 11364.5, as may be amended.
“Electronic smoking device” means an electronic and/or battery-operated device, the use of which may resemble smoking, which can be used to deliver an inhaled dose of nicotine or other substances. “Electronic smoking device” includes any such electronic smoking device, whether manufactured, distributed, marketed, or sold as an electronic cigarette, an electronic cigar, an electronic cigarillo, an electronic pipe, an electronic hookah, or any other product name or descriptor. “Electronic smoking device” does not include any product specifically approved by the United States Food and Drug Administration for use in the mitigation, treatment, or prevention of disease. “Electronic smoking device paraphernalia” means cartridges, cartomizers, e-liquid, smoke juice, tips, atomizers, electronic smoking device batteries, electronic smoking device chargers, and any other item specifically designed for the preparation, charging, or use of electronic smoking devices. “Illegal product” means any product prohibited by local, state, or federal law to be possessed, displayed, distributed, or sold, including but not limited to illegal cannabis products, counterfeit tobacco products, untaxed tobacco products, prohibited flavored tobacco products, nitrous oxide products sold in violation of law, controlled substances, or unlawful drug paraphernalia
“Permittee” means a tobacco retailer or their authorized representative and/or employee with a valid tobacco retailer’s permit.
“Person” means any natural person, partnership, cooperative association, corporation, personal representative, receiver, trustee, assignee, or any other legal entity. “Proprietor” means a person with an ownership or managerial interest in a business. An ownership interest shall be deemed to exist when a person has a ten percent (10%) or greater interest in the stock, assets, or income of a business other than the sole interest of security for debt. A managerial interest shall be deemed to exist when a person can or does have or share ultimate control over the day-to-day operations of a business. “Self-service display” means the open display or storage of tobacco products or tobacco paraphernalia in a manner that is physically accessible in any way to the general public without the assistance of the retailer or employee of the retailer and a direct person-to-person transfer between the purchaser and the retailer or employee of the retailer. A vending machine is a form of self-service display.
Gilroy City Code
13.66 Definitions.
The Gilroy City Code is current through Ordinance 2026-01, passed January 5, 2026. “Smoking” means possessing a lighted tobacco product, lighted tobacco paraphernalia, or any other lighted weed or plant (including a lighted pipe, cigar, hookah pipe, or cigarette of any kind) and means the lighting of a tobacco product, tobacco paraphernalia, or any other weed or plant (including a pipe, cigar, hookah pipe, or cigarette of any kind).
“Smoking paraphernalia” means tobacco paraphernalia, electronic smoking devices, and electronic smoking device paraphernalia, or any item marketed, displayed, possessed for sale, or sold in connection with the inhalation, ingestion, consumption, preparation, packaging, concealment, or use of tobacco products, nicotine products, cannabis products, controlled substances, or intoxicating substances, to the extent permitted by state law. “Tobacco paraphernalia” means cigarette papers or wrappers, pipes, holders of smoking materials of all types, cigarette rolling machines, and any other item designed for the smoking, preparation, storing, or consumption of tobacco products.
“Tobacco product” means any substance containing tobacco leaf, including but not limited to cigarettes, cigars, pipe tobacco, hookah tobacco, snuff, chewing tobacco, dipping tobacco, snus, bidis, or any other preparation of tobacco; and any product or formulation of matter containing biologically active amounts of nicotine that is manufactured, sold, offered for sale, or otherwise distributed with the expectation that the product or matter will be introduced into the human body, but does not include any cessation product specifically approved by the United States Food and Drug Administration for use in treating nicotine or tobacco dependence. “Tobacco retailer” means any person who sells, offers for sale, or does or offers to exchange for any form of consideration tobacco, tobacco products or tobacco paraphernalia. “Tobacco retailing” shall mean the doing of any of these things. This definition is without regard to the quantity of tobacco, tobacco products, or tobacco paraphernalia sold, offered for sale, exchanged, or offered for exchange. (Ord. No. 2014-14, § 1, 11-17-14) “Youth-Oriented Facility” means a parcel in the city that is occupied by:
1. A library open to the public;
2. A playground open to the public;
3. A youth center, defined as a facility where children, ages six to seventeen, inclusive, come together for programs and activities;
4. A recreation facility open to the public, defined as an area, place, structure, or other facility that is used either permanently or temporarily for community recreation, even though it may be used for other purposes;
5. A park open to the public;
1.6. A licensed child-care facility or preschool (other than a small-family day care home or a large-family day care home [as defined in California Health & Safety Code § 1596.78]).
Gilroy City Code
13.67 Purpose.
The Gilroy City Code is current through Ordinance 2026-01, passed January 5, 2026.
13.67 Purpose.
This article is intended to set forth a local permit process for tobacco retailers to ensure that retailers comply with tobacco control laws and city business standards to protect the public health, safety and welfare. Individuals who wish to act as a tobacco retailer within the city must first obtain and maintain a valid tobacco retailer’s permit pursuant to these provisions for each location at which that activity is to occur. It is the responsibility of each proprietor to be informed of all laws applicable to tobacco retailing, including those laws affecting the issuance of a tobacco retailer’s permit. (Ord. No. 2014-14, § 1, 11-17-14)
Gilroy City Code
13.68 General regulations.
The Gilroy City Code is current through Ordinance 2026-01, passed January 5, 2026.
13.68 General regulations.
Every person within the city who operates as a tobacco retailer is required to obtain and maintain a valid tobacco retailer’s permit. Every person within the city who operates as a tobacco retailer with a valid tobacco retailer’s permit shall comply with each of the following conditions:
(a) Location. Tobacco retailing activities shall be conducted at a fixed location and within the enclosed area of the tenant space completely accessible to the general public during the hours of business operation; (b) Display of Permit. Each tobacco retailer permit shall be prominently displayed in a publicly visible location at the permitted location;
(c) Minimum Age for Persons Selling Tobacco. No person who is younger than the minimum age established by state law for the purchase or possession of tobacco products shall engage in tobacco retailing; (d) Minimum Age for the Purchase of Tobacco. No person engaged in tobacco retailing shall sell or transfer tobacco products or tobacco paraphernalia to a person whose legal age is under minimum age established by state law for the purchase or possession of tobacco products;
(e) Positive Identification Required. Persons engaged in tobacco retailing may not sell or transfer a tobacco product or tobacco paraphernalia to another person who appears to be under the age of twenty-seven (27) years without first examining the identification of the recipient to confirm that the recipient is at least the minimum age under state law to purchase and possess a tobacco product or tobacco paraphernalia; (f) On-Site Smoking Prohibited. Persons engaged in tobacco retailing shall not permit smoking inside or in any adjacent outdoor area owned, leased, or operated in the permitted premises. In addition, no person engaged in tobacco retailing shall permit smoking within twenty (20) feet of any doorway, window, opening, or other vent into the permitted premises. Further, no person engaged in tobacco retailing shall permit the presence or placement of usable ash receptacles within the permitted premises, such as ashtrays or ash cans; (g) Self-Service Displays Prohibited. Tobacco retailing by means of a self-service display is prohibited; (h) Permit Nontransferable. A tobacco retailer’s permit may not be transferred from one (1) person to another or from one (1) location to another. A new tobacco retailer’s permit is required whenever the proprietor(s) of a tobacco retailing location change; and
(i) Tobacco retailing is prohibited near schools as follows:
(1) Except as provided in this section, no new tobacco retailer permit may be issued to authorize tobacco retailing within one thousand (1,000) feet of a school as measured by a straight line from the nearest point of property line of the parcel on which the school is located to the nearest point of the property line on which the applicant’s business is located. For purposes of this section, “school” means a private or public elementary, middle, junior high or high school, or any combination of such schools. (2) A tobacco retailer operating lawfully on the effective date of the ordinance codified in this article is exempt from this requirement.
(3) The sale to another individual, through an arm’s length transaction, of a tobacco retail business operating lawfully on the effective date of the ordinance codified in this article is exempt from this requirement. The new owner of such business is required to apply for and obtain a new tobacco retailer’s permit. (Ord. No. 2014-14, § 1, 11-17-14)
(j) Tobacco retailing is prohibited near youth-oriented facilities as follows:
(1) Except as provided in this section, no new tobacco retailer permit may be issued to authorize tobacco
Gilroy City Code
13.68 General regulations.
The Gilroy City Code is current through Ordinance 2026-01, passed January 5, 2026. retailing within one thousand (1,000) feet of a youth-oriented facility as measured by a straight line from the nearest point of property line of the parcel on which the youth-oriented facility is located to the nearest point of the property line on which the applicant’s business is located. (2) A tobacco retailer operating lawfully on the effective date of the ordinance codified in this article is exempt from this requirement.
(3) The sale to another individual, through an arm’s length transaction, of a tobacco retail business operating lawfully on the effective date of the ordinance codified in this article is exempt from this requirement. The new owner of such business is required to apply for and obtain a new tobacco retailer’s permit. (k) Compliance with All Laws. Tobacco retailers shall comply with all local, state, and federal laws relating to tobacco products, nicotine products, cannabis products, controlled substances, untaxed tobacco products, drug paraphernalia, public nuisances, gambling devices, consumer protection laws, and business operations. (l) Illegal Products Prohibited. No tobacco retailer shall possess, display, advertise, market, exchange, distribute, or offer for sale any illegal product. The presence of illegal products within publicly accessible retail areas shall constitute prima facie evidence that the products were offered for sale. (m) Consent to Inspection. Acceptance of a tobacco retailer permit constitutes consent to reasonable administrative inspections of the permitted premises during regular business hours for purposes of determining compliance with this chapter and applicable law.
(n) Chronic Nuisance Activity Prohibited. No tobacco retailer shall operate in a manner constituting a chronic nuisance tobacco retailer.
Gilroy City Code
13.69 Application procedure.
The Gilroy City Code is current through Ordinance 2026-01, passed January 5, 2026.
13.69 Application procedure.
All applications shall be submitted on a form supplied by the City of Gilroy finance department and shall contain all of the following information:
(a) Application Materials.
(1) The name, address, and telephone number of each proprietor of the business seeking a permit; (2) The business name, address, and telephone number of the single fixed location for which a permit is sought; (3) A single name and mailing address authorized by each proprietor to receive all communications and notices (the “authorized address”) required by, authorized by, or convenient to the enforcement of this article. If an authorized address is not supplied, each proprietor shall be understood to consent to the provision of notice at the business address specified in subsection (a)(2) of this section; (4) Proof that the location for which a tobacco retailer’s permit is sought has been issued a valid state tobacco retailer’s permit by the California Board of Equalization; (5) Whether or not any proprietor or any agent of the proprietor has admitted violating, or has been found to have violated, this article and, if so, the dates and locations of all such violations within the previous five (5) years;
(6) The application shall be signed by each proprietor or an authorized agent thereof; (7) Such other information as the city deems necessary for the administration or enforcement of this article as specified on the application form required by this section; and (8) Proof of annual employee training, and proof of new employee training to the satisfaction of the finance director.
(9) Identification of all owners, operators, managers, financial beneficiaries, and persons with direct or indirect control over the business operations.
(10) Proof of possession of all other applicable permits and licenses required by local, state, and federal law. (b) A permitted tobacco retailer shall inform the city in writing of any change in the information submitted on an application for a tobacco retailer’s permit within ten (10) business days of a change. (c) All information specified in an application pursuant to this section shall be subject to disclosure under the California Public Records Act (California Government Code Section 6250 et seq.) or any other applicable law, subject to the law’s exemptions. (Ord. No. 2014-14, § 1, 11-17-14)
Gilroy City Code
13.70 Issuance of permit.
The Gilroy City Code is current through Ordinance 2026-01, passed January 5, 2026.
13.70 Issuance of permit.
Upon the receipt of a complete application for a tobacco retailer’s permit and the permit fee required by this article, the city shall issue a permit, except as otherwise provided in this article. The term of a tobacco retailer permit is one (1) year and may be renewed annually. A permit will not be issued if substantial evidence demonstrates that one (1) or more of the following exists:
(a) The information presented in the application is inaccurate or false. Intentionally supplying inaccurate or false information shall be a violation of this article;
(b) The application seeks authorization for tobacco retailing at a location for which a tobacco retailer permit has been denied pursuant to this article. However, this subsection shall not constitute a basis for denial of a permit if the applicant provides the city with documentation demonstrating by clear and convincing evidence that the applicant has acquired or is acquiring the location or business in an arm’s length transaction, and is not associated with the previous applicant in any way;
(c) The application seeks authorization for tobacco retailing for a proprietor to whom this article prohibits a permit to be issued; or
(d) The application seeks authorization for tobacco retailing that is prohibited pursuant to this article (e.g., mobile vending), that is unlawful pursuant to the Gilroy Municipal Code, or that is unlawful pursuant to any other law. (Ord. No. 2014-14, § 1, 11-17-14)
(e) The application seeks authorization for a location previously determined to constitute a chronic nuisance tobacco retailer, unless the applicant establishes by clear and convincing evidence that substantial corrective measures have been implemented and that the applicant is not associated with prior unlawful activity.
Gilroy City Code
13.71 Permit renewal and expiration.
The Gilroy City Code is current through Ordinance 2026-01, passed January 5, 2026.
13.71 Permit renewal and expiration.
(a) Renewal of Permit. Each tobacco retailer shall apply for a renewal of the tobacco retailer’s permit and submit the permit fee no later than thirty (30) days prior to expiration of the term. A tobacco retailer’s permit is invalid if the appropriate fee has not been paid in full or if the term of the permit has expired. (b) Expiration of Permit. A tobacco retailer’s permit not timely renewed shall expire at the end of its term. To renew a permit not timely renewed pursuant to subsection (a) of this section, the proprietor must:
(1) Submit the permit fee and application renewal form; and (2) Submit a signed affidavit affirming that the proprietor, operator, and/or manager:
a. Has not sold and will not sell any tobacco product or tobacco paraphernalia after the permit expiration date and before the permit is renewed; or
b. Has waited the appropriate ineligibility period established for tobacco retailing without a permit, as set forth in section 13.82, before seeking renewal of the permit. (Ord. No. 2014-14, § 1, 11-17-14)
Gilroy City Code
13.72 Fee for permit.
The Gilroy City Code is current through Ordinance 2026-01, passed January 5, 2026.
13.72 Fee for permit.
(a) The fee to issue or to renew a tobacco retailer’s permit shall be established from time to time by resolution of the city council. The fee shall be calculated so as to recover any amount up to the cost of administration of this article, including, for example, issuing a permit and administering the permit program, but shall not exceed the cost of the regulatory program, which includes enforcement and training authorized by this article. Fees are nonrefundable except as may be required by law.
(b) All fees and civil penalties collected pursuant to this article shall be maintained in a separate city account to be used to implement this article, such as enforcement or training purposes. (Ord. No. 2014-14, § 1, 11-17-14)
Gilroy City Code
13.73 Permit conveys a limited, conditional privilege.
The Gilroy City Code is current through Ordinance 2026-01, passed January 5, 2026.
13.73 Permit conveys a limited, conditional privilege.
(a) Nothing in this article shall be construed to grant any person obtaining and maintaining a tobacco retailer’s permit any status or right other than the limited conditional privilege to act as a tobacco retailer at the location in the city identified on the face of the permit.
(b) Nothing in this article shall be construed to render inapplicable, supersede, or apply in lieu of any other provision of applicable law, including but not limited to any provision of this Code limitation, the Gilroy Municipal Code, or any condition or limitation on smoking in an enclosed place of employment pursuant to California Labor Code Section 6404.5. For example, obtaining a tobacco retailer permit does not make the retailer a “retail or wholesale tobacco shop” for the purposes of California Labor Code Section 6404.5. (Ord. No. 2014-14, § 1, 11-17-14)
Gilroy City Code
13.74 Compliance monitoring.
The Gilroy City Code is current through Ordinance 2026-01, passed January 5, 2026.
13.74 Compliance monitoring.
(a) Compliance with this article shall be monitored by the city. Any peace officer may enforce the penal provisions of this article. The city may designate any number of additional persons to monitor compliance with this article. (b) Inspections may be conducted so as to allow the city to determine, at a minimum, if a tobacco retailer is conducting business in a manner that complies with laws regulating youth access to tobacco products and paraphernalia.
(c) The city shall not enforce any law establishing a minimum age for tobacco purchasers or possession against a purchaser of tobacco that otherwise might be in violation of such law because of the person’s age if the potential violation occurs when:
(1) The purchaser (hereinafter referred to as “youth decoy”) is participating in a compliance check supervised by a peace officer or a code enforcement official of the city; (2) The youth decoy is acting as an agent of a person designated by the city to monitor compliance with this article; or
(3) The youth decoy is participating in a compliance check funded in part, either directly or indirectly through subcontracting, by the Santa Clara County department of health or the California Department of Health Services. (Ord. No. 2014-14, § 1, 11-17-14)
(d) The city may conduct announced or unannounced compliance inspections to determine compliance with this chapter and applicable law, including inspections relating to illegal products, controlled substances, untaxed tobacco products, drug paraphernalia, nuisance conditions, permit conditions, and unlawful business operations. (e) Failure to permit lawful inspection authorized by this chapter constitutes an independent violation of this chapter and grounds for permit suspension or revocation.
Gilroy City Code
13.75 Tobacco retailing without a permit.
The Gilroy City Code is current through Ordinance 2026-01, passed January 5, 2026.
13.75 Tobacco retailing without a permit.
(a) In addition to any other penalty authorized by law, if a court of competent jurisdiction determines, or the city finds based on a preponderance of evidence, after notice and an opportunity to be heard consistent with section
13.81 et seq., that any person has engaged in tobacco retailing at a location without a valid tobacco retailer’s permit, either directly or through the person’s agents or employees, the person shall be ineligible to apply for, or to be issued, a tobacco retailing permit as follows:
(1) After a first violation of this section at a location within any sixty (60) month period, no tobacco retailer permit shall be issued for the person or the location (unless ownership of the business at the location has been transferred in an arm’s length transaction), until thirty (30) days have passed from the date of the violation; (2) After a second violation of this section at a location within any sixty (60) month period, no tobacco retailer permit shall be issued for the person or the location (unless ownership of the business at the location has been transferred in an arm’s length transaction), until one (1) calendar year has passed from the date of the second violation;
(3) After a third or subsequent violation of this section at a location within any sixty (60) month period, no new permit may be issued for the person or the location (unless ownership of the business at the location has been transferred in an arm’s length transaction), until five (5) calendar years have passed from the date of the most recent violation.
(b) Notwithstanding any other provision of this article, prior violations at a location shall continue to be counted against a location and permit ineligibility periods shall continue to apply to a location unless:
(1) The location has been fully transferred to a new proprietor(s); and (2) The new proprietor(s) provides the city with clear and convincing evidence that the new proprietor(s) has acquired or is acquiring the location in an arm’s length transaction, and is not associated with the prior proprietor(s) in any way.
(c) Tobacco products and tobacco paraphernalia offered for sale or exchange in violation of this section are subject to seizure by the city or any peace officer and shall be forfeited after the person, the person’s agents or employees, or any other owner of the tobacco products and tobacco paraphernalia seized is given reasonable notice and an opportunity, consistent with section 13.80, to demonstrate that the tobacco products and tobacco paraphernalia were not offered for sale or exchange in violation of this article. The decision by the city may be appealed pursuant to section 13.81. Forfeited tobacco products and tobacco paraphernalia may be destroyed after all internal appeals have been exhausted and the time in which to seek judicial review pursuant to California Code of Civil Procedure Section 1094.6 or other applicable law has expired without the filing of lawsuit or, if such a suit is filed, after judgment in that suit becomes final.
(d) For the purposes of the civil remedies provided in this article:
(1) Each day on which a tobacco product or tobacco paraphernalia is offered for sale in violation of this article constitutes a separate violation; or
(2) Each individual retail tobacco product and each individual retail item of tobacco paraphernalia that is distributed, sold, or offered for sale in violation of this article constitutes a separate violation. (Ord. No. 2014- 14, § 1, 11-17-14)
(e) In addition to all other remedies authorized by this chapter, the City may issue administrative citations, seek injunctive relief, pursue nuisance abatement, recover enforcement costs, and seek temporary restraining orders or preliminary injunctions to prevent unlawful tobacco retailing operations
Gilroy City Code
13.76 False and misleading advertising prohibited.
The Gilroy City Code is current through Ordinance 2026-01, passed January 5, 2026.
13.76 False and misleading advertising prohibited.
A tobacco retailer without a valid tobacco retailer permit or whose permit has been revoked shall be unable to:
(a) Keep tobacco products and tobacco paraphernalia within public view. (b) Display any advertisement relating to tobacco products or tobacco paraphernalia that promotes the sale or distribution of such products from the tobacco retailer’s location or that could lead a reasonable consumer to believe that such products can be obtained at that location. (Ord. No. 2014-14, § 1, 11-17-14)
Gilroy City Code
13.77 Penalties and enforcement.
The Gilroy City Code is current through Ordinance 2026-01, passed January 5, 2026.
13.77 Penalties and enforcement.
In the course of tobacco retailing or in the operation of the business or maintenance of the location for which a permit has been issued, it shall be a violation of this article for a permittee, or any of the permittee’s agents or employees, to violate any local, state, or federal law applicable to tobacco products, tobacco paraphernalia, or tobacco retailing, illegal products, cannabis products, controlled substances, untaxed tobacco products, prohibited flavored tobacco products, drug paraphernalia, gambling devices, nuisance activity, or other unlawful business operations occurring on the premises.
(a) The remedies provided by this article are cumulative and in addition to any other remedies available at law or in equity;
(b) Whenever evidence of a violation of this article is obtained in any part through the participation of a person under the age of eighteen (18) years old, such a person shall not be required to appear or give testimony in any civil or administrative process brought to enforce this article and the alleged violation shall be adjudicated based upon the sufficiency and persuasiveness of the evidence presented; (c) Violations of this article are subject to a civil action brought by the city attorney, punishable by a civil penalty not less than one thousand dollars ($1,000) and not exceeding five thousand dollars ($5,000) per violation; (d) Violations of this article may, in the discretion of the city attorney, be prosecuted as misdemeanors; (e) Causing, permitting, aiding, abetting, or concealing a violation of any provision of this article shall also constitute a violation of this article;
(f) Any tobacco retailer which is opened, operated or maintained contrary to the provisions of this article shall be deemed a public nuisance. In addition to, or in lieu of, any other available legal remedies, the city attorney may commence a civil legal action or actions in a court of competent jurisdiction to abate such nuisance and to enjoin the continued operation and maintenance of the tobacco retailer establishment in a manner prohibited by this article; (g) In addition to other remedies provided by this article or by other laws, any violation of this article may be remedied by a civil action brought by the city attorney, including, for example, administrative or judicial nuisance abatement proceedings, civil or criminal code enforcement proceedings, and suits for injunctive relief. (Ord. No. 2014-14, § 1, 11-17-14)
(h) A violation of any permit condition, operational requirement, compliance agreement, security plan, or corrective action plan imposed pursuant to this chapter shall constitute a separate violation of this chapter. (i) A property owner who, after written notice from the City, knowingly permits continued unlawful tobacco retailing activity or nuisance activity on property owned by the property owner may be subject to nuisance abatement proceedings and any other remedies authorized by law. (j) The remedies provided by this chapter are cumulative and the city may pursue any combination of administrative, civil, equitable, or criminal remedies authorized by law.
Gilroy City Code
13.78 Civil penalties, suspension or revocation of permit.
The Gilroy City Code is current through Ordinance 2026-01, passed January 5, 2026.
13.78 Civil penalties, suspension or revocation of permit.
A permit issued contrary to this article, contrary to any other law, or on the basis of false or misleading information supplied by a proprietor may be suspended or revoked pursuant to section 13.80. Nothing in this article shall be construed to vest in any person obtaining and maintaining a tobacco retailer’s permit any status or right to act as a tobacco retailer in contravention of any provision of law.
In addition to any other penalty authorized by this article or by other laws, civil penalties shall be imposed as set forth below. In addition, a tobacco retailer’s permit may be suspended and/or revoked as set forth below if any court of competent jurisdiction determines, or the city finds based on a preponderance of the evidence, after the permittee is afforded notice and an opportunity to be heard pursuant to section 13.80, that the permittee, proprietor, operator, manager, employee, or any of the permittee’s agents or employees, has violated section 13.68(d):
(1) any provision of this chapter;
(2) any permit condition or compliance agreement;
(3) any local, state, or federal law relating to tobacco products, cannabis products, controlled substances, untaxed tobacco products, drug paraphernalia, gambling devices, public nuisances, or unlawful business operations occurring on the premises; or
(4) any law involving fraud, misrepresentation, concealment, or unlawful transfer of ownership relating to the permitted business.
Penalties shall be as follows:
(a) After a first violation of section 13.68(d) at a location, a civil penalty of one thousand dollars ($1,000) shall be imposed. In addition, the city may suspend the tobacco retailer permit for a period no less than thirty (30) calendar days;
(b) After a second violation of section 13.68(d) at a location within a sixty (60) month period, a civil penalty of two thousand five hundred dollars ($2,500) shall be imposed. In addition, the city may suspend the tobacco retailer permit for a period no less than sixty (60) calendar days; (c) After a third violation of section 13.68(d) at a location within a sixty (60) month period, a civil penalty of five thousand dollars ($5,000) shall be imposed. In addition, the city may revoke the tobacco retailer permit. (Ord. No. 2014-14, § 1, 11-17-14)
(d) In addition to the above penalties, the city may impose one or more of the following concurrently with the civil penalties and suspension:
(1) Administrative penalties;
(2) Mandatory corrective action plans;
(3) Mandatory employee retraining;
(4) Enhanced inspection requirements; or,
(5) Security or operational conditions.
(e) The city may consider the totality of circumstances, including prior code violations, nuisance activity, police service calls, criminal activity, cooperation with investigators, corrective actions, and the severity of violations when determining penalties.
(f) Emergency Summary Suspension.
Gilroy City Code
13.78 Civil penalties, suspension or revocation of permit.
The Gilroy City Code is current through Ordinance 2026-01, passed January 5, 2026. (1) Where the City Administrator, Police Chief, Finance Director, or designee determines that continued operation of a tobacco retailer presents an immediate threat to public health, safety, or welfare, the City may immediately suspend the tobacco retailer permit pending an administrative hearing. (2) Grounds for emergency suspension may include, but are not limited to:
(i) Sales or possession of controlled substances;
(ii) Sales or possession of unlawful cannabis products; (iii) Repeated sales of illegal products;
(iv) Violence or weapons-related activity;
(v) Human trafficking activity; or
(vi) Chronic nuisance activity.
(3) Written notice of emergency suspension shall be provided as soon as reasonably practicable. (4) A post-deprivation administrative hearing shall be scheduled within fifteen (15) business days of the effective date of the emergency suspension unless waived by the permittee.
Gilroy City Code
13.79 Revocation of a wrongly issued permit.
The Gilroy City Code is current through Ordinance 2026-01, passed January 5, 2026.
13.79 Revocation of a wrongly issued permit.
A tobacco retailer’s permit shall be revoked if the city finds, after the permittee is afforded notice and an opportunity to be heard consistent with the procedure set forth in section 13.81 et seq., that one (1) or more of the bases for denial of a permit under section 13.70 existed at the time application was made or at any time before the permit issued. The decision by the city to revoke shall be the final decision. Such a revocation shall be without prejudice to the filing of a new permit application. (Ord. No. 2014-14, § 1, 11-17-14) A permit may also be revoked if the City determines that the permit was obtained through concealment, sham transfer, fraudulent ownership restructuring, or any transaction intended to evade enforcement of this chapter.
Gilroy City Code
13.80 Suspension or revocation of a tobacco retailer
permit, or forfeiture of seized tobacco and tobacco
paraphernalia process.
The Gilroy City Code is current through Ordinance 2026-01, passed January 5, 2026.
13.80 Suspension or revocation of a tobacco retailer permit, or forfeiture of seized tobacco and tobacco paraphernalia process.
The city may suspend or revoke a tobacco retailer’s permit pursuant to section 13.78 or 13.79 or deem seized tobacco and/or tobacco paraphernalia as forfeit pursuant to section 13.75(c). Before the city suspends or revokes a permit or deems seized tobacco and/or tobacco paraphernalia as forfeit, the city shall provide written notice of the suspension or revocation of a permit or the pending forfeiture by personal delivery or first class certified United States mail. The notice shall provide for the suspension or revocation of the permit or forfeiture of the seized items fifteen (15) calendar days after mailing or personal delivery of the notice unless the permittee requests a hearing.
The notice shall instruct the permittee on how to file a request for a hearing consistent with section 13.81 et seq. The notice shall be addressed to the permittee at the address provided in the permittee’s application, or other more reliable address if known to the city. If after the passage of fifteen (15) calendar days from the mailing or personal delivery of the notice, the permittee has not requested a hearing, the suspension, revocation, or forfeiture shall become final. (Ord. No. 2014-14, § 1, 11-17-14)
The City may recover administrative enforcement costs, investigation costs, nuisance abatement costs, attorneys’ fees where authorized by law, storage costs, and costs associated with seizure and destruction of illegal products.
Gilroy City Code
13.81 Hearing.
The Gilroy City Code is current through Ordinance 2026-01, passed January 5, 2026.
13.81 Hearing.
(a) The permittee may request a hearing before the city administrator on a decision of the city to suspend and/or revoke a tobacco retailer permit or deem seized tobacco and tobacco paraphernalia. The request must be filed with the city clerk within fifteen (15) calendar days following the mailing or personal delivery of written notice of the suspension and/or revocation.
(b) The city clerk shall schedule an administrative hearing with the city administrator or his or her designee. The administrative hearing shall be held pursuant to the city’s administrative hearing policy as set forth in Resolution No. 97-17. (Ord. No. 2014-14, § 1, 11-17-14)
Gilroy City Code
13.82 New permit after revocation.
The Gilroy City Code is current through Ordinance 2026-01, passed January 5, 2026.
13.82 New permit after revocation.
(a) After a first revocation at a location within any sixty (60) month period, no new permit may be issued for the location until one (1) calendar year has passed from the date of revocation. (b) After a second or more revocations at a location within any sixty (60) month period, no new permit may be issued for the location until ten (10) calendar years have passed from the date of the most recent revocation. (Ord.
No. 2014-14, § 1, 11-17-14)
Gilroy City Code
13.83 Sham transfers prohibited.
The Gilroy City Code is current through Ordinance 2026-01, passed January 5, 2026.
13.83 Sham transfers prohibited.
(a) No person shall transfer or attempt to transfer ownership or operational control of a tobacco retailer for the purpose of evading enforcement of this chapter.
(b) Among relevant evidence that may be considered, the following circumstances may constitute rebuttable evidence that a transfer is not an arm’s length transaction:
(1) Retention of substantially the same employees;
(2) Retention of substantially the same inventory;
(3) Continued use of substantially the same business name, branding, fixtures, or operations; (4) Familial, financial, or managerial relationships between prior and subsequent operators; (5) Transfers occurring during active enforcement proceedings; or (6) Shared financial interests or operational control.
(c) The City may deny, suspend, or revoke permits based upon sham transfers or attempts to evade enforcement.
Gilroy City Code
13.843 Nondiscrimination.
The Gilroy City Code is current through Ordinance 2026-01, passed January 5, 2026.
13.834 Nondiscrimination.
No person shall discharge, refuse to hire, or in any manner discriminate against any employee or applicant for employment because such employee or applicant exercises any rights afforded by this article. (Ord. No. 2014-14, § 1, 11-17-14)
1 For state law as to authority of city to license for revenue and regulation purposes, see Gov. C., § 37101. As to authority of city to license in exercise of police power and for purpose of regulations, see B. & P.C., § 16000. As to licensing by cities generally, see B. & P.C., §§ 16000 to 16003.
As to taxation generally, see Ch. 22 of this Code.
7.2. City of Gilroy
STAFF REPORT
Agenda Item Title: Receive an Update and Provide Direction on Campaign Finance Laws, including Contribution Limits and Voluntary Expenditure Limits
Meeting Date: June 1, 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:
RECOMMENDATION
Council receive the report, discuss the policy considerations related to campaign finance regulations, and provide direction, if any.
EXECUTIVE SUMMARY
The City Council’s adopted legislative agenda includes a review of the City’s campaign finance laws following the City’s transition to district-based elections in 2025. On May 4, 2026, the City Council discussed campaign contribution limits and voluntary campaign expenditure ceilings, among other election- and campaign-related topics, and directed staff to return with additional benchmarking and policy options. Staff subsequently reviewed campaign finance regulations within Santa Clara County and other California cities that have transitioned from at-large to district-based elections and found that most jurisdictions continue utilizing the State default campaign contribution limits established under AB 571, while relatively few maintain voluntary campaign expenditure ceilings or have significantly revised their campaign finance structures following district elections.
Based on the benchmarking and Council discussion, this report presents policy options for Council consideration regarding potential amendments to the City’s contribution limits and voluntary expenditure ceiling methodology, ranging from maintaining the current citywide structure to implementing district-based expenditure formulas modeled after other California jurisdictions.
7.2. BACKGROUND
The City Council’s adopted legislative agenda for the current biennial budget cycle includes an item to review the City’s campaign finance laws, contribution limits, and related enforcement, particularly as the City has transitioned to district-based elections in 2025.
The City of Gilroy’s campaign finance regulations are codified in Chapter 8B of the City Code (attached), which were comprehensively updated in 2012 to align with the Political Reform Act and establish contribution limits, a voluntary expenditure ceiling, enhanced disclosure requirements, and enforcement provisions.
In 2015, the ordinance was amended in response to evolving federal case law, including McCutcheon v. FEC, resulting in an increase in the contribution limit to $750 per election, the establishment of the current $ 1-per-resident voluntary expenditure ceiling, and the removal of limits on contributions to independent committees.
On May 4, 2026, the staff brought an item forward to City Council for review and discussion of campaign finance laws, contribution limits, and related enforcement.
Several policy-level questions were raised and discussed by the City Council, including:
• Review of current campaign contribution and voluntary campaign expenditure limits, and whether adjustments are warranted to either of those limits, given that the City has transitioned to a district-based election system and that the current voluntary campaign expenditure limits are applied based on the number of residents in the city as a whole.
• Residency qualifications, requirements, and related enforcement responsibilities • Campaign finance law violations and related enforcement responsibilities • Training for candidates on the aforementioned topics and also inclusion of campaign finance laws regarding surplus campaign funds remaining on hand, particularly for those candidates not successful in the election.
Specifically, the Council expressed interest in further reviewing the current contribution limits and voluntary campaign expenditure limits and directed staff to return with options for the Council to explore based on other cities that have transitioned from at-large to district-based elections.
ANALYSIS
Campaign finance regulation operates through a combination of federal constitutional law, California state law, and local municipal ordinances.
At the federal level, campaign finance laws are governed primarily by First Amendment jurisprudence established through case laws. Federal law generally permits mandatory contribution limits but prohibits mandatory expenditure limits for candidates. As a result,
7.2. some jurisdictions utilize voluntary expenditure ceilings.
At the state level, campaign finance regulation is primarily governed by the Political Reform Act (PRA) and administered by the California Fair Political Practices Commission (FPPC). The Political Reform Act establishes disclosure and reporting requirements and permits local agencies to adopt additional campaign finance regulations.
With the passage of Assembly Bill 571 (AB571) in October 2019, effective January 1, 2021, a state campaign contribution limit applies by default to city and county candidates if the city or county has not already enacted a contribution limit for such candidates, among other provisions. For Gilroy, campaign finance regulations, including contribution limits, are enacted and codified in the Gilroy City Code, Chapter 8B, and have been periodically updated, most recently in 2015.
Campaign Contribution Limits vs. Voluntary Campaign Expenditure Limits Campaign finance laws generally regulate two distinct areas:
Type Description Gilroy Current Rule
Contribution Limits Limits the amount an individual or
entity may contribute to a candidate
$750 per election
Voluntary Campaign
Expenditure Limits
Limits the amount a candidate may
spend on their campaign
Voluntary limit of $1
per City resident
Contribution limits are mandatory and enforceable under law. Expenditure limits, however, must remain voluntary under federal constitutional law.
For Gilroy, the current campaign contribution limits were last updated in 2015 to $750 per election, and the voluntary campaign expenditure limits of $1 per City resident are calculated using the California Department of Finance's population estimates. For example, in the 2024 election cycle, the City Council established the voluntary campaign expenditure ceiling using the California Department of Finance's (DOF) demographic report dated May 1, 2023, which indicated the City of Gilroy's population at 60,078 as of January 1, 2023. Thus, the voluntary campaign expenditure ceiling was established at $60,078 for the 2024 General Municipal Election. If the Council were to maintain the same methodology for the 2026 General Municipal Election, based on the DOF demographic report, Gilroy’s population estimate is 62,193 as of January 1, 2026, and the voluntary campaign expenditure ceiling would be $62,193.
Staff reviewed cities in Santa Clara County to determine their maximum contribution and voluntary campaign expenditure limits, if any. In addition, staff reviewed other California cities that have transitioned to district-based elections to assess the general trend in contribution and/or expenditure limits.
7.2. Santa Clara County Cities
The enclosed Exhibit A table provides data for Santa Clara County cities based on population, election system (at-large vs. district-based), contribution limits, and expenditure limits or ceilings.
Key Findings:
• The majority of Santa Clara County cities continue to utilize the State default contribution limits established under AB 571 rather than adopt customized local campaign finance ordinances. Of the County’s 15 cities, approximately two-thirds rely primarily on the State framework, while a smaller number of jurisdictions have adopted stricter or more customized local contribution and expenditure limit structures.
• Data also demonstrates that there is no uniform regional approach among cities that have transitioned to district-based elections. Several district-based jurisdictions, including Morgan Hill and Sunnyvale, continue utilizing the default State contribution limits and do not maintain voluntary expenditure ceilings.
Conversely, some at-large jurisdictions, such as Mountain View, have comparatively sophisticated local campaign finance systems with tiered contribution limits and voluntary expenditure ceilings. • Gilroy’s current $750 contribution limit is lower than the State default limit currently utilized by many neighboring jurisdictions under AB 571. However, Gilroy’s limit is generally “moderate” within the County and is not unusually restrictive compared to jurisdictions such as Milpitas and Santa Clara, which maintain significantly lower contribution limits.
• Voluntary expenditure ceilings are substantially less common than contribution limits within Santa Clara County. Only a limited number of cities currently maintain voluntary expenditure ceiling frameworks, including Gilroy, Cupertino, Mountain View, and Santa Clara.
Staff also researched general trends for cities that transitioned to a district-based election system, and cities generally went with either defaulting to the AB571 state limit (if no local limit), keeping existing contribution limits (Santa Ana in 2018), or adopting a revised local contribution and district-based expenditure limit (Redwood City in 2020).
In Redwood City, the contribution limit is set to $1,000 per election. Further, a candidate for district City Councilmember who voluntarily agrees to expenditure ceilings shall not make qualified expenditures exceeding two dollars and forty-five cents ($2.45) per resident (2024 value) in the electoral district in which the candidate is seeking elective office, and uses the 2020 census population data utilized during the districting process.
The $ 2.45-per-resident amount is adjusted in even-numbered years based on the Consumer Price Index. Redwood City has a population estimate of 81,809 and seven districts, with an average population of 12,060 per district; thus, the estimated voluntary expenditure limit per district is $29,548. The mayoral seat is internally appointed through a seniority-based rotation.
7.2. Policy Options for Council Consideration
Council may consider the following options regarding contribution limits:
Option Description
Option A Maintain current $750 contribution limit
Option B Adjust contribution limit (increase or decrease) Option C State default (AB571) $5,900 for 2026, adjusted every two years Option D Implement another contribution limit structure as directed by Council The City Attorney’s office advises against lowering the mandatory contribution limit from its present level of $750 per person, because when such limits are challenged, the claim is normally that the limit has been set too low to allow effective campaigning, in violation of the First Amendment. A limit of $750 per person was recently upheld by the U.S.
Ninth Circuit Court of Appeals in a case challenging the campaign finance law of the City of Oxnard. Reducing Gilroy’s contribution limit could provoke such a challenge.
Council may consider the following options regarding voluntary expenditure ceilings:
Option Description
Option 1
Status
Quo
Maintain the current citywide voluntary expenditure ceiling, utilizing $1 per resident based on the City’s total population
Option 2
Six-Way
Allocation
Model
Divide the current citywide expenditure ceiling equally among the six Council districts while maintaining the mayoral voluntary expenditure ceiling at the existing citywide $1 per resident formula.
Option 2 Example
District/Mayoral DOF Population/# of Districts Rate Amount District 1 10,366 $ 1.00 $ 10,366
District 2 10,366 1.00 10,366
District 3 10,366 1.00 10,366
District 4 10,366 1.00 10,366
District 5 10,366 1.00 10,366
District 6 10,366 1.00 10,366
Mayoral 62,193 1.00 62,193
*DOF Population as of January 1, 2026 = 62,193
Option 3
District
Population
Model
Utilize district population figures derived from the 2020 Census/redistricting dataset and apply a voluntary expenditure ceiling of $1 per resident within each district, and as a whole for the at-large mayoral seat. Then adjust using CPI every two years.
7.2. Option 3 Example
District/Mayoral 2020 Census Population Rate Amount
District 1 9,851 $ 1.00 $ 9,851
District 2 9,847 1.00 9,847
District 3 9,557 1.00 9,557
District 4 10,225 1.00 10,225
District 5 10,543 1.00 10,543
District 6 9,669 1.00 9,669
Mayoral 59,692 1.00 59,692
Option 4
Redwood
City Model
Utilize a district-based expenditure formula modeled after Redwood City, utilizing district Census population figures and a customized per-resident expenditure factor established by the Council, and further determine a factor for the large mayoral seat. Then adjust using CPI every two years.
Hypothetical example: $2.45 for districts, and $1.00 for mayoral, or 50% of $2.45
Option 4 Example
District/Mayoral 2020 Census Population Rate Amount
District 1 9,851 $ 2.45 $ 24,135
District 2 9,847 2.45 24,125
District 3 9,557 2.45 23,415
District 4 10,225 2.45 25,051
District 5 10,543 2.45 25,830
District 6 9,669 2.45 23,689
Mayoral 59,692 1.00 59,692
Option 4 Example
District/Mayoral 2020 Census Population Rate Amount
District 1 9,851 $ 2.45 $ 24,135
District 2 9,847 2.45 24,125
District 3 9,557 2.45 23,415
District 4 10,225 2.45 25,051
District 5 10,543 2.45 25,830
District 6 9,669 2.45 23,689
Mayoral 59,692 1.23 73,123
Option 5
Alternative
Structure
Implement another expenditure ceiling structure or combination as directed by the Council
7.2. As can be seen, there are several ways the Council can approach this policy consideration, and each option can be further modified as the Council deems fit.
Overall, given that most cities have not significantly restructured campaign finance law after district elections, the Council can consider a “keep it simple” approach, particularly for voluntary expenditure limits, since they are voluntary.
Further, if Council wishes to institute changes for the 2026 election cycle, Council should keep in mind that staff will need to return with an ordinance for introduction, followed by formal adoption, and an effective date of 30 days after adoption.
ALTERNATIVES
The various alternative/options for both contribution limits and voluntary expenditure limits are discussed in the analysis section above.
FISCAL IMPACT/FUNDING SOURCE
This report is informational only and accommodated within existing resources in the Administration Department. Should the Council direct future ordinance amendments, nominal legal review and advertising costs would be incurred and would be accommodated within existing budgetary appropriations.
PUBLIC OUTREACH
The subject has been included in the adopted biennial budget as a workplan item and in the publicly noticed City Council meeting agendas. No additional or targeted public outreach has been conducted regarding this topic. Should the Council direct future ordinance amendments, statutory notice will be provided.
NEXT STEPS
Should Council direct future ordinance amendments, staff will plan to return at the June 15, 2026, meeting to introduce the ordinance, followed by adoption at the July 27, 2026, meeting, and ordinance becoming effective on August 26, 2026.
Attachments:
1. Exhibit A – Santa Clara County Cities
EXHIBIT A
# City Population* Election System Contribution Limit Expenditure Limit / Ceiling 1 Monte Sereno 3,642 At-large AB 571 default state limit ($5,900) None identified 2 Los Altos Hills 8,652 At-large AB 571 default state limit ($5,900) None identified 3 Saratoga 31,261 At-large AB 571 default state limit ($5,900) None identified 4 Los Altos** 31,921 District-based AB 571 default state limit ($5,900) None identified 5 Los Gatos 33,293 At-large AB 571 default state limit ($5,900) None identified 6 Campbell 43,195 At-large AB 571 default state limit ($5,900) None identified 7 Morgan Hill 47,074 District-based AB 571 default state limit ($5,900) None identified 8 Cupertino 59,765 District-based AB 571 default state limit ($5,900) Voluntary expenditure ceiling by resolution ($50,000 for 2026)
9 Gilroy 62,193 District-based $750 per election Voluntary: $1 per resident ($62,193 for 2026) 10 Palo Alto 69,004 At-large AB 571 default state limit ($5,900) None identified 11 Milpitas 82,107 At-large $250 None identified
12 Mountain View 88,533 At-large $500 standard /$1,000 if accepting VEL Voluntary CPI-adjusted expenditure ceiling (Estimated $32,352 for 2026)
13 Santa Clara 138,011 District-based $380 standard / $760 if accepting VEL Voluntary CPI-adjusted expenditure ceiling
(Citywide $55,890, $29,590 district-based contest
for 2026)
14 Sunnyvale 161,884 District-based AB 571 default state limit ($5,900) None identified 15 San José 980,434 District-based $800 Council / $1,600 Mayor None identified * Based on State Department of Finance population estimate as of January 1, 2026 ** Los Altos is transitioning to district-based election with two district up in November 2026
9.3. City of Gilroy
STAFF REPORT
Agenda Item Title: Council Discussion and Adoption of a Resolution of the City Council of the City of Gilroy Placing a Ballot Measure
Proposal to Add a 0.25% Dedicated Public Safety Special Transactions and Use Tax at the November 3, 2026, General Municipal Elections
Meeting Date: June 1, 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: Develop a Financially Resilient Organization Ensure Neighborhood Equity from City Services
Maintain and Improve City Infrastructure
RECOMMENDATION
1. Council discussion and consideration of placing a public safety dedicated special transactions and use tax for the November 3, 2026, statewide general election.
2. If Council wishes to proceed with the public safety dedicated special transactions and use tax, adopt a resolution of the City Council of the City of Gilroy submitting to the qualified electors of the City of Gilroy, at the November 3, 2026, general municipal election previously called by Resolution No. 2026-29, a ballot measure to add Article V, sections 22.33 through and including 22.48 to Chapter 22 of the Gilroy City Code imposing a 0.25% (one-quarter of one percent) public safety special transactions and use tax; and
3. Council review and provide direction regarding the draft Public Safety Special Transactions and Use Tax Implementation Plan.
EXECUTIVE SUMMARY
The City of Gilroy continues to experience increasing fiscal pressure associated with rising public safety service demands, inflationary operating costs, and broader General
9.3. Fund constraints, while public safety services alone account for approximately 64% of General Fund expenditures. Following direction provided by the City Council at its April 6, 2026, meeting, staff is returning with a proposed 0.25% dedicated public safety special transactions and use tax measure for placement on the November 3, 2026, General Election ballot. If approved by two-thirds of voters, the measure is estimated to generate approximately $4.5 million annually dedicated exclusively to police, fire, ambulance, emergency response, and related public safety infrastructure needs, including staffing for the Santa Teresa Fire Station, additional police staffing and dispatch support, and public safety-related infrastructure improvements. The proposed measure also includes accountability provisions such as annual independent audits, a citizen oversight committee, and a Public Safety Special Tax Implementation Plan establishing proposed spending priorities and restrictions on the use of funds.
BACKGROUND
Staff has previously presented to the City Council, including in the April 8, 2024, staff report, that the City has not fully recovered staffing levels following the 2009 recession and subsequent fiscal impacts of the COVID-19 pandemic. At the same time, service expectations and operational demands have continued to increase. Public safety services alone account for approximately 64% of General Fund expenditures, reflecting both their importance and the financial pressure they place on limited resources.
Prior analyses identified significant staffing and infrastructure needs within both the Police and Fire Departments, including additional sworn officers, dispatchers, and fire personnel to meet service demands and adequately staff existing and future fire stations. These needs remain valid today and continue to represent an unfunded obligation. In 2024, the City Council placed a dedicated public safety sales tax measure before voters as a special tax, requiring two-thirds voter approval, which received encouraging results; however, it did not obtain the required threshold.
However, since 2024, the City’s fiscal challenges have broadened. Inflationary pressures, increased service costs (for example, services provided by the County), and ongoing infrastructure needs—particularly related to streets, parks, traffic safety, and other public facilities—have further constrained the City’s ability to maintain current service levels, let alone expand them.
On April 6, 2026, the City Council considered a staff report regarding the potential placement of a local transactions and use tax (local sales tax) measure before Gilroy voters at the November 2026 General Election. The report outlined the City’s ongoing fiscal pressures, including increasing public safety staffing needs, rising operational and service delivery costs, deferred infrastructure and facility maintenance obligations, and broader General Fund constraints. Staff also discussed the distinction between a general tax and a special tax structure, including voter approval thresholds and funding flexibility.
9.3. After discussion at the April 6, 2026, meeting, the City Council directed staff to pursue a dedicated public safety special transactions and use tax measure, structured similarly to the 2024 effort, for placement on the November 3, 2026, ballot. This report and the accompanying resolution implement that direction.
ANALYSIS
Public Safety Needs and Funding Review
As discussed during prior Council deliberations in both 2024 and April 2026, the City continues to experience significant public safety staffing and operational needs.
Independent staffing analyses and operational assessments identified ongoing deficiencies within both the Police and Fire Departments, including staffing needed to support patrol operations, dispatch services, records functions, and fire suppression and emergency medical response capabilities.
Within the Fire Department, staffing remains a primary operational challenge, particularly related to the long-term goal of fully staffing the Santa Teresa Fire Station and expanding emergency response capacity citywide. Current analyses indicate that approximately 45 fire personnel, an addition of five more from current levels, would be required to adequately staff a fourth fire company, with additional staffing needed for future deployment expansion and supervisory support.
Similarly, the Police Department continues to operate below recommended staffing levels in several classifications, including sworn officers, public safety communicators, and civilian support staff. Existing staffing levels continue to place pressure on response times, proactive policing efforts, employee workload, and retention.
In total, prior analyses identified the need for approximately 32 additional public safety positions between the Police and Fire Departments, representing an estimated ongoing annual cost in the range of approximately $5 million to $6 million.
Transactions and Use Tax
A transactions and use tax, commonly referred to as a local sales tax, is paid on taxable goods purchased within the City and is applied to both residents and non-residents.
Because of Gilroy’s regional retail draw, a significant portion of this revenue is generated by individuals who do not reside in the City, which helps distribute the financial burden more broadly. Under State law, the City’s ability to increase its local sales tax rate is limited, and a 0.25% increase represents the maximum available capacity under the current cap. Based on current estimates, a 0.25% tax would generate approximately $4.5 million annually.
Additionally, the tax does not apply to groceries or prescription medications under State law. Staff continues to believe that a transactions and use tax remains the most practical and broad-based local funding mechanism available to address ongoing public
9.3. safety needs while minimizing impacts to any single taxpayer group.
Staff anticipates the November ballot with a number of competing initiatives. Local funding for schools (Gavilan and Gilroy Unified) would likely be among them. In the realm of sales tax, the measures would likely be regional. This could create resistance among likely voters. Support from community partners, highlighting keeping local dollars local, could be an effective way of driving interest. In addition, the community's focus on safety is high, pointing to an opportunity that may be difficult to find in the future.
Ballot Measure
California law requires a two-thirds vote of qualified voters for approval of taxes dedicated to a specific purpose, commonly referred to as a “special tax.” Because the proposed measure would restrict revenues exclusively to public safety-related purposes, the proposed measure qualifies as a special tax and therefore requires twothirds voter approval for passage.
Staff recommends a transactions and use tax structure because it provides a broadbased revenue source shared by residents and non-residents who make taxable purchases within the City. Due to Gilroy’s substantial regional retail activity, a meaningful portion of sales tax revenues are generated by individuals residing outside the City limits, thereby distributing the tax burden more broadly. As previously stated, based on current estimates, a 0.25% tax would generate approximately $4.5 million annually.
Ballot Measure Language
The attached resolution proposes placing an ordinance before voters at the November 3, 2026, General Election to authorize a dedicated 0.25% public safety special transactions and use tax on an ongoing basis.
The question below is compliant with the election code requirements and substantially similar to the previous ballot initiative:
“To provide funding that stays in Gilroy and is dedicated to public safety (police, fire and ambulance) services and public safety infrastructure projects, shall Gilroy enact a 0.25 percent (one-quarter of one percent) transactions and use tax, providing approximately $4.5 million annually until ended by voters, with a citizen oversight committee and annual audits?
Sales Tax Ordinance
Consistent with the 2024 ordinance structure, the proposed ordinance would establish the following primary provisions:
• Revenues may only be used for public safety-related purposes, including police,
9.3. fire, ambulance services, staffing, equipment, facilities, emergency response operations, and related public safety infrastructure improvements; • Establishment of a Public Safety Special Tax Oversight Committee composed of Gilroy residents to review revenues and expenditures and provide annual public reports to the City Council;
• Requirement for annual independent financial audits regarding collection and expenditure of tax revenues;
• Non-supplanting language intended to ensure that revenues supplement, rather than replace, existing General Fund appropriations for public safety services; • Tax rate established at 0.25%, consistent with the City’s remaining local sales tax capacity under current State limitations; and
• Administrative agreements with the California Department of Tax and Fee Administration (CDTFA) for implementation and administration of the tax.
The detailed sales tax ordinance draft is attached.
Public Safety Tax Implementation Plan and Proposed Allocation of Funds As part of the 2024 public safety special tax framework, the City also developed a Public Safety Special Transactions and Use Tax Implementation Plan to provide guidance regarding the allocation, oversight, and expenditure of tax proceeds. The Implementation Plan established accountability measures consistent with the proposed ordinance, including restrictions on use of funds, annual independent financial audits, citizen oversight, and non-supplanting requirements intended to ensure that tax revenues supplement rather than replace existing General Fund support for public safety services. The Implementation Plan also established broad spending categories and allocation percentages between infrastructure, police, and fire services for the initial budget cycles.
Staff has updated the Implementation Plan to reflect the projected service needs and estimated uses of a potential $4.5 million annually generated from a 0.25% transactions and use tax as discussed with Council in April 2026. The updated analysis identified public safety priorities generally aligned with the prior implementation framework, including fire staffing, police staffing and support functions, and public safety-related infrastructure improvements.
Based on the April 2026 analysis, staff identified the following potential allocation of revenues generated from the proposed measure:
Service Enhancement Estimated
Annual
Allocation
Fire Services – Minimum staffing to support Santa Teresa Fire Station operations
$1,300,000
Police Services – One Sergeant, six Police Officers, one Community Service Officer, six Public Safety Communicators, $2,500,000
9.3. and one Records position
Public Safety Infrastructure – Traffic safety, pedestrian safety, bike safety, and related infrastructure improvements
$700,000
Total Estimated Annual Revenue $4,500,000
Under this conceptual allocation model, approximately 56% of revenues would support police-related services, 29% would support fire services, and 15% would support infrastructure and safety-related capital improvements. Staff notes that these allocations are intended to provide a policy framework and spending priorities for implementation of the measure and may evolve over time based on operational needs, staffing realities, project timing, and future Council direction. Importantly, the allocation would shift only between dedicated public safety services.
The Implementation Plan also includes:
• Annual independent financial audits;
• A resident citizen oversight committee;
• Non-supplanting provisions to preserve existing General Fund support for police and fire operations; and
• Council adoption of periodic implementation plans identifying proposed allocation priorities and expenditures.
This approach is intended to provide transparency and accountability regarding the expenditure of revenues while maintaining sufficient flexibility to respond to changing operational and public safety needs over time.
The draft of the Implementation Plan is attached to the staff report.
Election Procedures
Submission of Ballot Arguments and Rebuttal
As part of the California Elections Code, Section 9282, the City Council may authorize any member(s) of the City Council to submit an argument in favor of the City’s ballot measure for inclusion in the Voters' Sample Ballot. The argument would be capped at 300 words in length. Arguments for or against the measure must be submitted to the Santa Clara County Registrar of Voters (ROV) by Tuesday, August 11, 2026.
Arguments may not be signed by more than five (5) persons.
As part of the California Elections Code, Section 9285, the City Council may authorize any member(s) of the City Council to submit a rebuttal argument in favor of the City measure for inclusion in the Voters' Sample Ballot. Any arguments filed against the measure would be transmitted to the City, and the authorized Council or member(s) of Council for rebutting the argument shall have up to 250 words in rebuttal that would be published. Rebuttal due by Tuesday, August 18, 2026.
9.3. Authorization for the submission of ballot arguments and rebuttal is included in the attached resolution.
Preparation of an Impartial Analysis
As part of the California Elections Code, Section 9280, the City Council may direct the City Clerk to transmit a copy of the measure to the City Attorney for the purposes of preparing an impartial analysis. The impartial analysis of the measure would discuss its effect and operation. Any such impartial analysis must include a statement indicating that the measure was placed on the ballot by the City's governing body, since it would be initiated by the City. The Impartial Analysis of the measure may not exceed 500 words in length, and must be transmitted to the ROV by Tuesday, August 18, 2026. This authorization is recommended and is included in the attached resolution.
Roles and Limitations During Ballot Measure Campaign Period The City can provide educational materials to the public to inform them about the Measure. However, the City must refrain from spending any staff time, money, or effort to advocate for the passage of the ballot measure. Council members and staff can work on the campaign on their own time and at their own expense, provided it is clear that they are doing so on their own time rather than with City resources.
ALTERNATIVES
1. The Council directs staff to expand the 15% public safety infrastructure category/definition to also include traffic safety improvements.
2. The Council could direct staff not to proceed with the local sales tax measure for the November 2026 General election.
FISCAL IMPACT/FUNDING SOURCE
This sales tax ballot measure is estimated to generate $4.5 million/year in revenue.
The cost of placing this ballot measure is estimated at $86,000, and will be funded from the General Fund (100). The City Clerk’s budget includes $300,000 for 2026 election costs, which is sufficient to accommodate the district elections, the previously authorized transient occupancy tax (TOT) ballot measure, and this sales tax ballot measure.
Should the measure pass, there will be some implementation costs with the State of California for the initial one-time set-up and ongoing administration. The set-up costs won’t be known until the measure passes and a request to contract with the State is submitted. The ongoing State administrative cost is estimated at about 1.75% of revenue and will be deducted from quarterly revenue, as is currently done.
9.3. PUBLIC OUTREACH
No targeted Public outreach has been conducted for this item aside from the publicly posted agenda for the April 2026 and this City Council meeting. Council previously concurred to forgo any type of polling for the measure and approach this as a true grassroots effort.
As discussed in the analysis, there are limitations on what the City can do regarding public outreach for the ballot measure if approved.
If Council approves placing the ballot measure in the upcoming election, staff will conduct fact-based educational outreach to the public within the City’s legal constraints.
NEXT STEPS
If the City Council approves this item (2/3rd vote of Council), staff will place the approved language on the November 3, 2026, general election ballot. Additional steps, including the City Attorney’s impartial analysis and the City’s arguments for the ballot measure, would then be undertaken shortly after Council approval of any ballot measure.
Attachments:
1. Resolution Placing the Initiative
2. Exhibit A: Draft Public Safety Special Transactions and Use Tax Ordinance
3. Draft Public Safety Special Transactions and Use Tax Implementation Plan
4. April 6, 2026 Council Meeting Staff Report
RESOLUTION NO. 2026-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY SUBMITTING TO THE QUALIFIED ELECTORS OF THE CITY OF GILROY, AT THE NOVEMBER 3, 2026 GENERAL MUNICIPAL ELECTION PREVIOUSLY CALLED BY RESOLUTION NO. 2026-29, A BALLOT MEASURE TO ADD ARTICLE V, SECTIONS 22.33 THROUGH AND INCLUDING 22.48 TO CHAPTER 22 OF THE GILROY CITY CODE
TO IMPOSE A PUBLIC SAFETY SPECIAL TRANSACTIONS AND USE TAX
WHEREAS, the City Council of the City of Gilroy previously adopted Resolution No. 2026-29 calling and giving notice of a General Municipal Election to be held in the City of Gilroy on Tuesday, November 3, 2026, and consolidating that election with the Statewide General Election held on the same date; and
WHEREAS, Revenue and Taxation Code Section 7285.91 authorizes the City, subject to approval by a two-thirds vote of the qualified voters of the City voting in an election on the issue, to levy a transactions and use tax pursuant to the Transactions and Use Tax Law at a rate of 0.125% or any multiple thereof; and WHEREAS, the City Council of the City of Gilroy desires to submit to the voters a proposed special transactions and use tax dedicated to fund public safety services and public safety infrastructure, and to place the measure on the ballot for the next General Election on November 3, 2026; and
WHEREAS, because the revenues from the proposed tax would be legally restricted to specific purposes, the proposed tax constitutes a “special tax” under Article XIII C of the California Constitution and applicable State law, and approval of the measure requires a two-thirds vote of the qualified voters of the City voting on the measure; and WHEREAS, the full text of the proposed ordinance adding Article V to Chapter 22 of the Gilroy City Code, which would impose the public safety special transactions and use tax if approved by the qualified voters, is attached hereto as Exhibit A and incorporated herein by reference; and
WHEREAS, the City Council is authorized and directed by statute to submit the proposed tax measure to the voters.
WHEREAS, because the November 3, 2026 General Municipal Election has already been called and consolidated with the Statewide General Election by Resolution No. 2026-29, this Resolution does not separately call or order the election but instead orders the submission of the measure described herein to the qualified voters at that previously-called and consolidated election.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Gilroy that:
Section 1. The City Council hereby orders the submission to the qualified electors of the City of Gilroy, at the November 3, 2026 General Municipal Election previously called by Resolution No. 2026-29 and consolidated with the Statewide General Election held on the same date, of a ballot measure to add Article V, Sections 22.33 through and including
22.48, to Chapter 22 of the Gilroy City Code to levy a 0.25 percent (one-quarter of one percent) special transactions and use tax dedicated and restricted to raise revenue for,
Resolution No. 2026-XX
Transactions and Use Tax Ballot Measure
City Council Regular Meeting | June 1, 2026
and fund, public safety (police, fire, and ambulance) services and public safety infrastructure. The measure shall be deemed approved if a two-thirds (2/3) majority of the qualified electors voting on the measure vote to approve it. The full text of the proposed Article V is attached hereto as Exhibit A and incorporated herein by reference.
Section 2. The ballot measure will be consolidated with and placed on the statewide general election on November 3, 2026, which shall be substantially in the following form:
MEASURE_______
Public Safety Special Transactions and Use Tax
YES
To provide funding that stays in Gilroy and is
dedicated to public safety (police, fire and
ambulance) services and public safety infrastructure
projects, shall Gilroy enact a 0.25 percent (onequarter of one percent) transactions and use tax, providing approximately $4.5 million annually until
ended by voters, with a citizen oversight committee
and annual audits?
NO
Section 3. Pursuant to Article XIII C of the California Constitution and Revenue and Taxation Code Section 7285.91, the vote requirement for the measure to pass is a two-thirds (2/3) vote of the qualified voters of the City voting on the measure.
Section 4. The City Clerk is hereby authorized and directed to transmit a certified copy of this Resolution, together with Exhibit A, to the Registrar of Voters of the County of Santa Clara, and to coordinate with the Registrar of Voters and the Board of Supervisors of the County of Santa Clara as necessary to place the measure on the ballot for the November 3, 2026 General Municipal Election previously called by Resolution No. 2026-29. All election services, consolidation, canvass, and reimbursement directives previously approved by Resolution No. 2026-29 shall apply to this measure to the same extent as to other matters submitted at that election, except as otherwise modified herein.
Section 5. The City Council hereby directs the City Clerk to take all actions necessary to facilitate the Election in the time frame specified herein and comply with
Resolution No. 2026-XX
Transactions and Use Tax Ballot Measure
City Council Regular Meeting | June 1, 2026
provisions of the Elections Code of the State of California, City Charter, Ordinances, Resolutions, and Policies regarding the conduct of the Election.
Section 6. Pursuant to Section 12111 of the California Elections Code and other applicable provisions of law, the City Clerk is hereby directed to: (a) cause a synopsis of the proposed measure to be published at least one time not later than one week before the election in a newspaper of general circulation within the City of Gilroy; (b) cause copies of the full text of the proposed measure set forth in the attached Exhibit A to be printed in the Voter Information portion of the Sample Ballot, or to be made otherwise available to qualified electors as required by law; (c) cause copies of the Sample Ballot to be mailed to each of the qualified electors of the City of Gilroy in accordance with applicable law; and (d) take all other actions necessary or appropriate to submit the measure to the qualified electors at the November 3, 2026 General Municipal Election, including making the full text of the proposed measure available in the Office of the City Clerk at no cost and posting it on the City Clerk’s website.
Section 7. Pursuant to Sections 9282 and 9285 of the California Elections Code, the City Council hereby approves the submittal of direct arguments for and against the ballot measure, with a maximum of 300 words in length, if any, and authorizes the City Council or any member or members of the Council to author and submit a ballot measure argument in favor of the ballot measure, and approves the submittal of rebuttal arguments in response to arguments for and against the ballot measure, with a maximum of 250 words in length, and authorizes the City Council or any member or members of the City Council to author and submit a rebuttal, if any, to the Santa Clara County Registrar of Voters (ROV) by Tuesday, August 11, 2026.
Section 8. The City Council hereby directs the City Clerk to transmit a copy of the measure qualifying for placement on the ballot to the City Attorney for preparation of an impartial analysis and transmit to the Santa Clara County Registrar of Voters by Tuesday, August 18, 2026.
Section 9. The City Council hereby acknowledges that the consolidated election will be held and conducted in the manner prescribed in California Elections Code Section 10418.
Section 10. If any section, subsection, sentence, clause, phrase, or portion of this Resolution is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Resolution. The City Council hereby declares that it would have adopted this Resolution and each section, subsection, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional.
Section 11. This resolution shall take effect immediately upon adoption.
Resolution No. 2026-XX
Transactions and Use Tax Ballot Measure
City Council Regular Meeting | June 1, 2026
PASSED AND ADOPTED by the City Council of the City of Gilroy at a regular meeting duly held on the 1st day of June 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
EXHIBIT A
ORDINANCE NO. 2026-XX
AN ORDINANCE OF THE PEOPLE OF THE CITY OF GILROY ADDING ARTICLE V, SECTIONS 22.33 THROUGH AND INCLUDING 22.48 TO CHAPTER 22 OF THE GILROY CITY CODE IMPOSING A PUBLIC
SAFETY SPECIAL TRANSACTIONS AND USE TAX TO BE
ADMINISTERED BY THE CALIFORNIA DEPARTMENT OF TAX AND
FEE ADMINISTRATION
WHEREAS, pursuant to California Revenue and Taxation Code Section 7285.91, the City of Gilroy (“City”) is authorized to levy a transactions and use tax for specific and special purposes, subject to a two-thirds voter approval; and WHEREAS, the People of the City desire to levy a transactions and use tax for the special purpose of raising revenues and funding public safety (police, fire, and ambulance) services and public safety infrastructure, at a rate of 0.25%, which is equivalent to $0.01 for every $4.00 spent; and
WHEREAS, if approved by the City’s voters, this transactions and use tax ordinance will be incorporated into Chapter 22 of the Gilroy City Code.
NOW, THEREFORE, THE PEOPLE OF THE CITY OF GILROY DO HEREBY ORDAIN AS FOLLOWS:
SECTION I
That Article V, Sections 22.33 through 22.48 shall be added to Chapter 22 of the Gilroy City Code to read as follows:
Article V
Public Safety Special Transactions and Use Tax
22.33 Title.
This article shall be known as the "Public Safety Special Transactions and Use Tax." This ordinance shall be applicable in the incorporated territory of the City.
22.34 Definitions.
As used in this chapter, "City" means the City of Gilroy and "tax" means the transactions and use taxes imposed under the provisions of this chapter; "tax revenue" and "tax revenues" mean all proceeds of the tax received by the City from the California Department of Tax and Fee Administration.
22.35 Operative date.
"Operative date" means the first day that the tax is imposed and collected. The operative date shall be April 1, 2027, unless a later operative date becomes effective under the provisions of Section 22.37.
22.36 Purpose.
Ordinance No. 2026-XX
Amending Chapter 22 – Public Safety Special Transactions and Use Tax City Council Regular Meeting | Date, 2026
The ordinance codified in this chapter is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted to accomplish those purposes:
(a) To impose a retail transactions and use tax in accordance with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and Section 7285.91 of Part 1.7 of Division 2 which authorizes the City to adopt this tax ordinance which shall be effective if a two-thirds vote of the qualified voters of the City voting in an election on the issue vote to approve the imposition of the tax at an election called for that purpose. (b) To adopt a retail transactions and use tax ordinance that incorporates provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation Code. (c) To adopt a retail transactions and use tax ordinance that imposes a tax and provides a measure therefor that can be administered and collected by the California Department of Tax and Fee Administration in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the California Department of Tax and Fee Administration in administering and collecting the California State Sales and Use Taxes.
(d) To adopt a retail transactions and use tax ordinance that can be administered in a manner that will be, to the greatest degree possible, consistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, minimize the cost of collecting the transactions and use taxes, and at the same time, minimize the burden of record keeping upon persons subject to taxation under the provisions of the ordinance codified in this chapter.
22.37 Contract with State.
Prior to the operative date, the City shall contract with the California Department of Tax and Fee Administration to perform all functions incident to the administration and operation of this transactions and use tax ordinance; provided, that if the City shall not have contracted with the California Department of Tax and Fee Administration prior to the operative date, it shall nevertheless so contract and in such a case the operative date shall be the first day of the first calendar quarter following the execution of such a contract.
22.38 Transactions tax rate.
For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated territory of the City at the rate of 0.25 percent (onequarter of one percent) of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in said territory on and after the operative date of the ordinance codified in this chapter.
22.39 Place of sale.
For the purposes of the ordinance codified in this chapter, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an out-of-state destination or to
Ordinance No. 2026-XX
Amending Chapter 22 – Public Safety Special Transactions and Use Tax City Council Regular Meeting | Date, 2026
a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the state sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the State or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the California Department of Tax and Fee Administration.
22.40 Use tax rate.
An excise tax is hereby imposed on the storage, use or other consumption in the City of tangible personal property purchased from any retailer on and after the operative date of the ordinance codified in this chapter for storage, use or other consumption in said territory at the rate of 0.25 percent (one-quarter of one percent) of the sales price of the property. The sales price shall include delivery charges when such charges are subject to state sales or use tax regardless of the place to which delivery is made.
22.41 Adoption of provisions of State law.
Except as otherwise provided in this chapter and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this chapter as though fully set forth herein.
22.42 Limitations on adoption of State law and collection of use taxes. (a) Wherever the State of California is named or referred to as the taxing agency, the name of this City shall be substituted therefor. However, the substitution shall not be made in Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code. In addition, the substitution shall not be made when:
1. The word "State" is used as a part of the title of the State Controller, State Treasurer, State Board of Control, State California Department of Tax and Fee Administration, State Treasury, or the Constitution of the State of California;
2. The result of that substitution would require action to be taken by or against this City or any agency, officer, or employee thereof rather than by or against the State California Department of Tax and Fee Administration, in performing the functions incident to the administration or operation of the ordinance codified in this chapter.
3. In those sections, including, but not necessarily limited to, sections referring to the exterior boundaries of the State of California, where the result of the substitution would be to:
i. Provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales, storage, use or other consumption remain subject to tax by the State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code; or
Ordinance No. 2026-XX
Amending Chapter 22 – Public Safety Special Transactions and Use Tax City Council Regular Meeting | Date, 2026
ii. Impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not be subject to tax by the State under the said provision of that Code. (b) The word "City" shall be substituted for the word "State" in the phrase "retailer engaged in business in this State" in Section 6203 and in the definition of that phrase in Section 6203.
22.43 Permit not required.
If a seller's permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor's permit shall not be required by this chapter.
22.44 Exemptions and exclusions.
(a) There shall be excluded from the measure of the transactions tax and the use tax the amount of any sales tax or use tax imposed by the State of California or by any city, city and county, or county pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law or the amount of any state-administered transactions or use tax.
(b) There are exempted from the computation of the amount of transactions tax the gross receipts from:
1. Sales of tangible personal property, other than fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the county in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this State, the United States, or any foreign government.
2. Sales of property to be used outside the City which is shipped to a point outside the City, pursuant to the contract of sale, by delivery to such point by the retailer or his agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purposes of this section, delivery to a point outside the City shall be satisfied:
i. With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, and undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code by registration to an out-of-City address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his or her principal place of residence; and
ii. With respect to commercial vehicles, by registration to a place of business out-of-City and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address.
3. The sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the operative date of the ordinance codified in this chapter.
Ordinance No. 2026-XX
Amending Chapter 22 – Public Safety Special Transactions and Use Tax City Council Regular Meeting | Date, 2026
4. A lease of tangible personal property which is a continuing sale of such property, for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to the operative date of the ordinance codified in this chapter.
5. For the purposes of subsections (3) and (4) of this subsection (B), the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised. (c) There are exempted from the use tax imposed by this chapter, the storage, use or other consumption in this City of tangible personal property:
1. The gross receipts from the sale of which have been subject to a transactions tax under any state-administered transactions and use tax ordinance.
2. Other than fuel or petroleum products purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this State, the United States, or any foreign government. This exemption is in addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code of the State of California.
3. If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date of the ordinance codified in this chapter.
4. If the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to lease the property for an amount fixed by a lease prior to the operative date of the ordinance codified in this chapter.
5. For the purposes of subsections (3) and (4) of this subsection (C), storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.
6. Except as provided in subsection (7) of this subsection (C), a retailer engaged in business in the City shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into the City or participates within the City in making the sale of the property, including, but not limited to, soliciting or receiving the order, either directly or indirectly, at a place of business of the retailer in the City or through any representative, agent, canvasser, solicitor, subsidiary, or person in the City under the authority of the retailer.
7. "A retailer engaged in business in the City" shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code,
Ordinance No. 2026-XX
Amending Chapter 22 – Public Safety Special Transactions and Use Tax City Council Regular Meeting | Date, 2026
aircraft licensed in compliance with Section 21411 of the Public Utilities Code, or undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code. That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle, vessel, or aircraft at an address in the City. (d) Any person subject to use tax under this chapter may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district imposing, or retailer liable for a transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code with respect to the sale to the person of the property the storage, use or other consumption of which is subject to the use tax.
22.45 Permissible uses: Implementation Plan.
(a) Expenditure Plan: The revenues of the tax shall only be used to fund the following uses and purposes. Funding with tax revenues of all other uses and purposes, except as provided in subsections (c) through (e) of this section, is prohibited.
1. Law Enforcement, Police and Public Safety.
i. Law enforcement and police patrol services;
ii. Police traffic safety and enforcement services;
iii. Gang enforcement, school resource services, and violence reduction;
iv. Police support services, including equipment and the financing thereof;
v. Mental health response teams, services and resources.
2. Firefighting, Paramedics, Wildfire Risk Reduction and Public Safety. i. Maintain firefighter and paramedic staffing levels to maintain rapid 9-1-1 emergency response times;
ii. Hire additional firefighters and paramedics to staff fire stations; iii. Establishment of additional paramedic units within the Fire Department, including advanced life support paramedic teams; iv. Purchase of specialized equipment for Fire Department use and the financing thereof;
v. Programs and services to reduce wildfire risk, including early fire alerts, evacuation planning, defensible space inspections and vegetation management;
vi. Mental health response teams, services and resources.
3. Public Safety Infrastructure.
i. Maintain, enhance, construct, and/or relocate fire and/or police stations and facilities (including, but not limited to, land acquisition, facilities design, and use of temporary facilities) and the financing thereof.
(b) The Council, by resolution, shall approve, and may from time to time amend, a transactions and use tax implementation plan which shall outline the allocation percentages between police, fire and public safety infrastructure appropriations to which the tax revenues will be applied.
(c) The tax revenues shall be used to enhance police and fire uses and purposes as outlined in subsection (a) and detailed in the transactions and use tax
Ordinance No. 2026-XX
Amending Chapter 22 – Public Safety Special Transactions and Use Tax City Council Regular Meeting | Date, 2026
implementation plan. Funding of the implementation plan may not be below the actual revenues received from the tax nor shall tax revenues be used to replace previously budgeted funds unless approved by the City Council based on a finding of fiscal crisis or catastrophic disaster. Tax revenues will not be used to supplant the general fund obligations to fund baseline services based upon population and economic conditions, except as provided in subsection (d) below. (d) For the duration of the tax, annual funding of the Police Department, Fire Department and public safety programs' purposes may not be a lower amount of City general fund expenditures than was funded under the City's 2026-27 fiscal year general fund budget, as adopted on June 2, 2025, unless a lower level of funding is first approved by the affirmative vote of a 2/3 majority of Council members.
(e) The Council, by resolution, shall establish a seven member Citizen Oversight Committee to annually review expenditures and appropriations of the tax revenues to ensure that all such revenues are spent or appropriated for the purposes and uses set forth in subsection (a), in accordance with the approved implementation plan as described in subsection (b), and, as specifically authorized, in subsections (c) and (d). Each member of the Council shall appoint one member of the Committee who shall have a term coinciding with the term of the appointing Council member. Each Committee member shall be a resident of the City at the time of appointment and shall remain a resident of the City while serving on the Committee. The Mayor shall appoint the chairperson of the Committee subject to the approval of the majority of the Council. The Committee shall receive the assistance of City staff and shall:
1. Review the annual independent audit and issue an annual public report on the expenditures and appropriations of the tax revenues;
2. Make recommendations for the City Council to consider regarding the implementation plan; and
3. Undertake such additional duties as the Council may designate, not inconsistent with the purposes identified in this chapter.
22.46 Amendments.
All amendments subsequent to the effective date of the ordinance codified in this chapter to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, shall automatically become a part of this chapter, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this chapter.
22.47 Enjoining collection forbidden.
No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the State or the City, or against any officer of the State or the City, to prevent or enjoin the collection under this chapter, or Part 1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected.