Gilroy City Council
June 15, 2026

May 202
6 8-14 City of Gilroy
2025 Urban Water Management Plan
Shortage
Gap
Reduction
Value
(May be a
range)
(AF) 3
Landscape - Prohibit
all landscape
irrigation
Percentage 36-50%
Prohibit watering or irrigating of lawn, landscape or other vegetated area with potable water. This restriction does not apply to the following categories of use, unless the city has determined that recycled water is available and may be applied to the use:
(a) Maintenance of vegetation, including trees and shrubs, that are watered using a handheld bucket or similar container, hand-held hose equipped with a positive self–closing water shut-off nozzle or device;
(b) Maintenance of existing landscape necessary for fire protection; (c) Maintenance of existing landscape for soil erosion control; (d) Maintenance of plant materials identified to be rare or essential to the well-being of protected species;
(e) Maintenance of landscape within active public parks and playing fields, day care centers, golf course greens, and school grounds, provided that such irrigation does not exceed two (2) days per week for no more than fifteen (15) minutes watering per designated water day per station and is prohibited between the hours of 9:00 a.m. and 5:00 p.m. Pacific Standard/Daylight Savings Time.
(f) Actively irrigated environmental mitigation projects.

Yes 3
Other - Customers
must repair leaks,
breaks, and
malfunctions in a
timely manner
Percentage 36-50%
Require all leaks, breaks, or other malfunctions in the water user’s plumbing or distribution system to be repaired within twenty-four (24) hours of notification by the city unless other arrangements are made with the city.

Yes
How much is this going
to reduce the shortage
gap?
Volume or
Percentage
Drop down
Shortage
Level
Demand Reduction
Actions
Drop down list
These are the only
categories that will be
accepted by the
WUEdata online
submittal tool. Select
those that apply.

Additional Explanation or Reference
(OPTIONAL)
Penalty, Charge,
or Other
Enforcement?
For Retail Suppliers
Only
Drop Down List

May 202
6 8-15 City of Gilroy
2025 Urban Water Management Plan Shortage
Gap
Reduction
Value
(May be a
range)
(AF) 3 Other Percentage 36-50%
The city may limit the issuance of new potable water services, temporary meters and/or statements of immediate ability to serve or provide potable water service (such as, can and will-serve letters, certificates, or letters of availability), except under the following circumstances:
(a) A valid, unexpired building permit has been issued for the project; or (b) The project is necessary to protect the public health, safety, and welfare; or (c) The applicant provides substantial evidence of an enforceable commitment that water demands for the project will be offset prior to the provision of a new water meter(s) to the satisfaction of the city.
(d) This provision does not preclude the resetting or turn-on of meters to provide continuation of water service or the restoration of service that has been interrupted for a period of one year or less.

Yes
How much is this going
to reduce the shortage
gap?
Volume or
Percentage
Drop down
Shortage
Level
Demand Reduction
Actions
Drop down list
These are the only
categories that will be
accepted by the
WUEdata online
submittal tool. Select
those that apply.

Additional Explanation or Reference
(OPTIONAL)
Penalty, Charge,
or Other
Enforcement?
For Retail Suppliers
Only
Drop Down List

May 2026 8-16 City of Gilroy
2025 Urban Water Management Plan
Table 8-3A: Reduction Actions Matrix
Notes:

1. Source: City of Gilroy Municipal Code, Article VI

2. Every level of shortage includes the most restrictive limitations of the previous levels (e.g. level 3 includes level 0 through 2 prohibitions).

Restricted Watering
or Irrigation Hours
Discouraged: 9:00 AM - 5:00
PM PST
9:00 AM - 5:00 PM PST
(Exception: Hand-watering,
reparation or recycled water)
☑
Watering Duration
Encouraged: 15 minutes of
irrigation systems or
unattended devices
Exception: Recycled Water and
2-gph drip irrigation systems or
70% efficient rotor sprinklers
15 minutes of irrigation
systems or unattended
devices
Exception: Recycled Water and
2-gph drip irrigation systems or
70% efficient rotor sprinklers
☑
Watering Days
Mandatory: Any time after 48
hours of rainfall
Encouraged: Max. 3 day/week
Apr - Oct: 3 days/week
Nov - Mar: 1 day/week
Apr - Oct: 2 days/week
Nov - Mar: 1 day/week
Obligation to Fix
Water Fixtures
Encouraged: Practical
discovery and correction of
escape of water
72-hour period to repair leaks,
breaks, malfunctioning water
fixtures
48-hour period to repair leaks,
breaks, malfunctioning water
fixtures
☑
Limits on Filling
Ornamental Ponds
or Lakes
Encouraged: Only to sustain
aquatic life ---
Prohibited for Filling or Refilling
Exception: When aquatic life
has been maintained in it
☑
Water Consumption
Mandatory: Drinking water
provided only if requested at
commercial establishments.
---
Adoption of water rate
structures and pricing ☑
Exceptions for
Watering
Restrictions
Mandatory: Watering
Ornamental Turf in Median and
non-recirculating decorative
features is prohibited
--- ---
Controlled maintenance of
important vegetation, fire
protection or soil erosion
control landscape.

Limits on Potable
Services
Mandatory: No new singlepass cooling installations or
non-recirculating Car Wash
and Laundry Systems
--- ---
No issuance of new potable
services (Exception: Critical
Infrastructure Facilities)
Limits on Buildings
and Construction
Mandatory: Recycled Water
Stations shall be available for
construction. Pool covers shall
be placed.
--- ---
No issuance of new building
permits (Exception: Critical
Infrastructure Facilities)
Limits on New
Developments or
Annexations
Mandatory: Irrigation must
follow California Buidling
Standards Commission
regulations
--- ---
No annexations to water
service area (Exception:

Corrections or areas not
increasing water use.

No Watering or Irrigation:

Maximum 2 days per week
9:00 AM - 5:00 PM PST during
15 minutes on actively used
landscape
Response Actions
Level 0
0 - 10% Reduction
Level 1
11 - 20% Reduction
Level 2
21 - 35% Reduction
Level 3
36 - 50% Reduction
Washing
Restrictions
Encouraged: Car Washing in
Commercial Conveyor with
Recirculating Systems
Mandatory: Allowed personal
vehicle handwashing and not
allowed hard surface washing
☑ ☑ ☑

May 2026 8-17 City of Gilroy
2025 Urban Water Management Plan

8.4.3 Operational Changes
During a water shortage, changes to water system operations may be implemented. These operational changes may include enhanced monitoring and tracking of water use, adjustments to fire hydrant testing frequencies, modifications in maintenance cycles, and expedited repair of water leaks.

8.4.4 Additional Mandatory Restrictions
Additional mandatory restrictions are described in a previous section.

8.4.5 Emergency Response Plan
During an imminent or emergency-related shortage, the City Manager will activate a water shortage response team. This team will include public utilities, water, fire, planning, health, emergency services, and the Mayor’s office. Other actions and procedures that are to follow a catastrophic event will be developed by this team.

8.4.6 Seismic Risk Assessment and Mitigation Plan
The City engaged AARC Consultants to conduct a study, which is Risk and Resilience Assessment (RRA), published in December 2020, in response to the America’s Water Infrastructure Act 2018. The City identified and characterized both asset-specific and system-wide vulnerabilities and threats and quantified the consequences of disruption during the RRA Process.

The report estimates the total amount of risk is approximately $251,684 annually. The City is located in a seismically active zone and most at risk from natural threats, approximately 48% of various threat types. A table of top high-risk threat-asset pairs illustrates that the City’s wells and distribution system are at highest risk due to the potential for damage associated with earthquake.

In response to the identified seismic threats, the report also provides preliminary risk mitigation options based on the consultant’s ANSI/AWWA J100-10 analysis. The J100-10 analysis is a standardized seven-step analysis that provides a risk and resilience management framework for water and wastewater systems against malevolent attacks and natural hazards: 1) Asset California Water Code
10632.5 (a) In addition to the requirements of paragraph (3) of subdivision (a) of Section 10632, beginning January 1, 2020, the plan shall include a seismic risk assessment and mitigation plan to assess the vulnerability of each of the various facilities of a water system and mitigate those vulnerabilities. 10632.5 (b) An urban water supplier shall update the seismic risk assessment and mitigation plan when updating its urban water management plan as required by Section 10621.
10632.5 (c) An urban water supplier may comply with this section by submitting, pursuant to Section 10644, a copy of the most recent adopted local hazard mitigation plan or multihazard mitigation plan under the federal Disaster Mitigation Act of 2000 (Public Law 106-390) if the local hazard mitigation plan or multihazard mitigation plan addresses seismic risk.

May 2026 8-18 City of Gilroy
2025 Urban Water Management Plan
Characterization, 2) Threat Characterization, 3) Consequence Analysis, 4) Vulnerability Analysis, 5) Threat Analysis, 6) Risk/Resilience Analysis, and 7) Risk/Resilience Management:

Groundwater wells: Provide well discharge piping with the ability to accommodate differential settlement between the well head and buried pipe.

Distribution system: Consider installing isolation valves on main distribution lines. In addition, consider using steel with welded joints, high-density polyethylene (HDPE) pipes with fused joints, ductile iron with seismic joints and molecularly oriented PVC (PVCO) with restrained joints.

Storage Tanks: Consider replacing inflexible tank joints with flexible joints to limit breakage, especially where tank wall uplift is anticipated. Also, consider seismically retrofitting water tanks.

In addition to the Emergency Response Plan described in a previous section, the California Water Code requires urban water suppliers to document a locally appropriate multi-hazard mitigation plan developed under the federal Disaster Mitigation Act of 2000, that includes documentation of seismic risk assessment. Valley Water developed such a hazard mitigation plan in February 2024.

The City’s service area is included within the boundaries evaluated as part of this mitigation plan.

8.4.7 Shortage Response Action Effectiveness
In addition to documenting demand reduction actions, the 2025 UWMP also estimates the effectiveness of these actions in reducing systemwide demand. The City records water consumption and production on a monthly basis, and this data can be used to evaluate the effects of any demand reduction actions that are implemented.

Starting in 2021, the City declared a Water Shortage Level 2, which included the implementation of multiple demand reduction actions described in a previous section. Based on a comparison of historical monthly production data, it is estimated that systemwide water use was approximately 11 to 20 percent lower during the Level 2 Water Shortage period compared to other years.

Therefore, as documented in Table 8-3, the Level 2 Water Shortage response actions are estimated to achieve a reduction effectiveness of 11 to 20 percent.

8.5 COMMUNICATION PROTOCOLS
California Water Code
10632 (a) Every urban water supplier shall prepare and adopt a water shortage contingency plan as part of its urban water management plan consists of each of the following elements:
(5) Communication protocols and procedures to inform customers, the public, interested parties, and local, regional, and state governments, regarding, at a minimum, all of the following:
(A) Any current or predicted shortages as determined by the annual water supply and demand assessment described pursuant to Section 10632.1.

May 2026 8-19 City of Gilroy
2025 Urban Water Management Plan
(B) Any shortage response actions triggered or anticipated to be triggered by the annual water supply and demand assessment described pursuant to Section 10632.1. (C) Any other relevant communications
When the City identifies the need for short-term water use reductions as directed by the Water Shortage Contingency Plan or the Annual Assessment, clear and effective communication will be critical to achieve the necessary demand reductions. Methods of public notification may include newspaper publications, bill inserts, announcements on the City’s website, social media posts, and press releases or informational campaigns. These public notification methods may be implemented during a Level 1 Water Shortage, with more targeted communications regarding leaks and high water users during a Level 2 Water Shortage.

8.6 COMPLIANCE AND ENFORCEMENT
Customers who violate the provisions of the water code related to water shortage conditions may be subject to the following penalties:
• One written notice of the violation from Utilities Department (Water Conservation Specialists) or police department.
• A second violation within any consecutive 12-month period is punishable by a fine not to exceed one hundred dollars.
• A third violation within any consecutive 12-month period is punishable by a fine not to exceed two hundred dollars.
• Any subsequent violation within any consecutive 12-month period is punishable by a fine not to exceed five hundred dollars.
• In addition to fines, the City, after written notice, may install a flow restrictor or discontinue service to consumers who violate provisions of this section.

8.7 LEGAL AUTHORITIES
California Water Code
10632 (a)(6) For an urban retail water supplier, customer compliance, enforcement, appeal, and exemption procedures for triggered shortage response actions as determined pursuant to Section 10632.2.

California Water Code
10632 (a)(7)(A) A description of the legal authorities that empower the urban water supplier to implement and enforce its shortage response actions specified in paragraph (4) that may include, but are not limited to, statutory authorities, ordinances, resolutions, and contract provisions. 10632 (a)(7)(B) A statement that an urban water supplier shall declare a water shortage emergency in accordance with Chapter 3 (commencing with Section 350) of Division 1.

May 2026 8-20 City of Gilroy
2025 Urban Water Management Plan
This section lists relevant statutory authorities, local ordinances, codes, and resolutions, as well as any water supply contract provisions that apply to the City.

8.7.1 Declaration of Water Shortage
The City has the legal authority to implement and enforce its water shortage response actions, including associated penalties, water rate adjustments, and restrictions or alterations to water service. City Ordinance 2015-04, which amended the water supply shortage regulations in May 2015, documents the demand reduction measures and enforcement protocols.

8.7.2 Proclamation of Local Emergency
Pursuant to California Government Code, California Emergency Services Act (Article 2, Section 8558), the City is required to coordinate with any city or county within which it provides water supply services for the possible proclamation of a local emergency.

8.8 FINANCIAL CONSEQUENCES OF A WATER SHORTAGE

CONTINGENCY PLAN
California Water Code
10632 (a)(8) A description of the financial consequences of, and responses for, drought conditions, including, but not limited to, all of the following:
(A) A description of potential revenue reductions and expense increases associated with activated shortage response actions described in paragraph (4).
(B) A description of mitigation actions needed to address revenue reductions and expense increases associated with activated shortage response actions described in paragraph (4). (C) A description of the cost of compliance with Chapter 3.3 (commencing with Section 365) of Division 1. [retail urban suppliers only]
For most water suppliers, operating costs are largely fixed and do not fluctuate with the volume of water sold. As a result, when conservation programs reduce overall consumption, utilities often need to raise water rates to make up for the decline in revenue. This occurs because lower water sales reduce revenues while many system costs remain fixed. In addition, reducing peak demand can help defer or avoid the need for costly infrastructure expansions, such as new supply sources or capacity upgrades, by improving system efficiency and extending existing supply reliability. 10632 (a)(7)(C) A statement that an urban water supplier shall coordinate with any city or county within which it provides water supply services for the possible proclamation of a local emergency, as defined in Section 8558 of the Government Code.

Division 1, Section
350
Declaration of water shortage emergency condition. The governing body of a distributor of a public water supply, whether publicly or privately owned and including a mutual water company, shall declare a water shortage emergency condition to prevail within the area served by such distributor whenever it finds and determines that the ordinary demands and requirements of water consumers cannot be satisfied without depleting the water supply of the distributor to the extent that there would be insufficient water for human consumption, sanitation, and fire protection.

May 2026 8-21 City of Gilroy
2025 Urban Water Management Plan
The City of Gilroy approved the updated Water and Wastewater Master Plans in April 2023. The plans identify infrastructure improvements needed to fix existing systems’ deficiencies and service growth. In order to continue investing in critical utilities’ infrastructure and keep pace with rising operational costs, the City engaged NBS Government Finance Group to conduct a rate study in 2023. Multi-year rate adjustments were in effect since January 1, 2024, with an adopted water rate increases rate at 6% annually until 2028.

The new Enterprise Fund for water, Utilities Water Fund (Fund 705), accounts for the operation and maintenance of the City’s water production and distribution system, with interest allocated accordingly. The Fund also provides for a small emergency cash reserve, and capital improvement projects within the fund may be deferred, if necessary, to help offset revenue shortfalls.

The Water Fund is projected to experience a decrease in fund balance over the next several years due to the implementation of planned capital improvement projects, as well as increases in groundwater extraction charges by Valley Water and rising utility costs. To address these financial pressures, the City has completed a comprehensive utilities rate study that establishes multi-year rate adjustments beginning in FY24 and continuing annually over a five-year period.

The City also maintains Fund 435, which is the Water Development Fund, to help fund capital improvement projects related to new developments. In the event of an emergency, General Fund reserves may be used.

The City’s current water rate structure consists of a fixed monthly charge based on meter size and a uniform volumetric rate applied to all water consumption, eliminating the prior tiered rate structure. This approach provides a consistent pricing structure for all customers while supporting overall water conservation objectives.

The measures shown on Table 8-4, may be implemented in the more restrictive water shortage levels to offset the reduced revenue.

If at any time, Valley Water institutes a tiered pump tax structure, City may increase water rates, drought surcharges, and/or excess use penalties based on tiered Valley Water’s rate structure.

An excess water use surcharge may be imposed in order to encourage compliance with the water shortage level 4 to level 6 conditions, if the customer water allotment is exceeded. The excess water surcharge applies only to the water bill and does not correspond to the water use prohibitions.

May 2026 8-22 City of Gilroy
2025 Urban Water Management Plan
Table 8-4 Financial Consequences of WSCP

8.9 MONITORING AND REPORTING
Monitoring and reporting under the Water Shortage Contingency Plan and Annual Assessment will be based on metered water production and consumption data. Ongoing review and comparison with historical data for corresponding months will allow the City to assess the effectiveness of WSCP measures. Additionally, in response to implemented shortage response actions and water shortage levels, the City’s Utilities Department may increase meter reading frequency to better collect, track, and analyze water use.

8.10 WSCP REFINEMENT PROCEDURES
California Water Code
10632 (a)(10) Reevaluation and improvement procedures for systematically monitoring and evaluating the functionality of the water shortage contingency plan in order to ensure shortage risk tolerance is adequate and appropriate water shortage mitigation strategies are implemented as needed.

The WSCP is intended as a dynamic planning tool subject to ongoing refinement as needed.

Following the declaration of water shortage and implementation of the WSCP, the monitoring and reporting procedures described in a previous section will provide insight into its effectiveness. City staff will assess the performance of communication protocols, demand reduction actions, operational adjustments, and financial mitigation measures. If this review identifies opportunities for procedural improvements or new WSCP actions, staff may incorporate these into an amended 2025 UWMP.

Stage Supply Reduction Potential Mitigation Actions
4-6 > 30% Increase the unit rate by a fixed percentage. 4-6 > 30% Increase the unit rate for all tiers except discounts offering to senior by a percentage by the City, which might be the same for all tiers or larger increases for higher tiers. 4-6 > 30% Impose a temporary drought surcharge on each account based on meter size. 4-6 > 30% Impose excessive penalties for water use over a specific amount. 4-6 > 30% Impose a peaking charge based on the highest billed monthly water use from the previous year.

California Water Code
10632 (a)(9) For an urban retail water supplier, monitoring and reporting requirements and procedures that ensure appropriate data is collected, tracked, and analyzed for purposes of monitoring customer compliance and to meet state reporting requirements.

May 2026 8-23 City of Gilroy
2025 Urban Water Management Plan

8.11 SPECIAL WATER FEATURE DISTINCTION
The California Water Code requires urban water suppliers to differentiate between water features that are artificially supplied and swimming pools or spas. The City’s current demand reduction actions reflect this distinction, as documented in a previous section.

8.12 PLAN ADOPTION, SUBMITTAL, AVAILABILITY, AND AMENDMENT

PROCEDURES
The adoption and submittal process for the WSCP, as well as its public availability, follow the same procedures as the City’s UWMP. If an amendment is made, stakeholder and public notification will be conducted in accordance with UWMP procedures prior to adoption of the amended plan.

8.13 SUBMITTAL TABLES SUMMARY
This chapter included the following submittal table(s):
• Table 8-1: Cross-reference for Standard vs Supplier Shortage Levels • Table 8-2: Supply Augmentation and Other Actions
• Table 8-3: Demand Reduction Actions
California Water Code
10632 (b) For purposes of developing the water shortage contingency plan pursuant to subdivision (a), an urban water supplier shall analyze and define water features that are artificially supplied with water, including ponds, lakes, waterfalls, and fountains, separately from swimming pools and spas, as defined in subdivision (a) of Section 115921 of the Health and Safety Code.

California Water Code
10632 (c) The urban water supplier shall make available the water shortage contingency plan prepared pursuant to this article to its customers and any city or county within which it provides water supplies no later than 30 days after adoption of the water shortage contingency plan.

May 2026 9-1 City of Gilroy
2025 Urban Water Management Plan
202City of 5Gilroy

9.0 CHAPTER 9 – DEMAND MANAGEMENT MEASURES
This chapter documents the City’s efforts to reduce water demand using specific demand measurement measures (DMMs) as well as any other actions to maintain ongoing water conservation.

9.1 DEMAND MANAGEMENT MEASURES FOR RETAIL SUPPLIERS
California Water Code
10631 (e) Provide a description of the supplier’s water demand management measures. This description shall include the following:
(1)(A) For an urban retail water supplier, as defined in Section 10608.12, a narrative description that addresses the nature and extent of each water demand management measure implemented over the past five years. The narrative shall describe the water demand management measure that the supplier plans to implement to achieve its water use targets pursuant to Section 10608.20. (B) The narrative pursuant to this paragraph shall include descriptions of the following water demand management measures:
(i) Water waste prevention ordinances.
(ii) Metering.
(iii) Conservation pricing.
(iv) Public education and outreach.
(v) Programs to assess and manage distribution system real loss. (vi) Water conservation program coordination and staffing support. (vii) Other demand management measures that have a significant impact on water use as measured in gallons per capita per day, including innovative measures, if implemented.

9.1.1 Implementation Over the Past Five Years
Below is a concise narrative description of each Demand Management Measures (DMMs) implemented by the City of Gilroy over the past five years:
i. Water-Waste Prevention Ordinances: the City has recommended 1 (one) day per week for landscape irrigation, with a maximum of 15 minutes per station. In addition, large Chapter Focus
This chapter summarizes the demand management measures, which are additional actions the City plans on implementing to achieve water use targets and maintain ongoing conservation.

The purpose of this section is to provide a comprehensive overview of the water conservation programs the City has implemented, is currently implementing, and plans to implement to achieve its water conservation goals.

May 2026 9-2 City of Gilroy
2025 Urban Water Management Plan
industrial, commercial, and multi-family water users may be required to undergo water audits.
ii. Metering: The City of Gilroy maintains universal metering for all potable water service connections and bills customers based on metered water use. The City has a metering policy in which meters are replaced and upgraded every 10 years, corresponding to the new battery lifespan for meters. All meters are part of the City’s Advanced Metering Infrastructure (AMI) network, which automatically records and transmits water usage data to support efficient utility management. The AMI implementation is almost 95%, according to the City’s latest information. The City is also implementing and deploying a communitywide software called AquaTrax, which works with the AMI system to provide customers and staff with detailed water-use data and leak detection capabilities. iii. Conservation Pricing: The City of Gilroy no longer maintains a tiered water billing policy. iv. Public Education and Outreach: The AquaTrax portal serves as a key outreach tool that allows residents to track their water use, receive alerts, and make informed decisions to reduce consumption.
v. Programs to Assess and Manage Distribution System Real Loss: Over the past five years (2021–2025), the City of Gilroy has continuously monitored all repairs and leaks in its distribution system real loss. Leveraging the AMI network, which automatically records and transmits water usage data, along with the AquaTrax customer portal, which provides residents and staff with near real-time usage data and leak alerts, the City can more precisely detect, track, and repair distribution system losses while actively engaging customers in water conservation.
vi. Water Conservation Program Coordination and Staffing Support: the City has launched a Water Conservation Program, which is currently staffed by two part-time Water Conservation Specialists. A third staff member (a Sr Management Analyst) will lead the conservation team and support policy updates and implementation.

9.1.2 Required Demand Management Measures

9.1.2.1 Water-Waste Prevention Ordinances
In response to the Drought of 1992, the City adjusted its water reduction program to promote efficient water use within the City. With the amendments to the Water Reduction Program, the following are currently prohibited water uses:
• Flooding or runoff on sidewalks, driveways, streets, gutters, and similar outdoor surfaces • Cleaning or washing of sidewalks, driveways, filling station aprons, patios, porches, parking lots or other paved or hard-surfaced areas, except for cleaning and washing for health or safety purposes

May 2026 9-3 City of Gilroy
2025 Urban Water Management Plan
• Use of water through an unattended hose without a positive automatic or manual shutdown valve, or a sprinkler device on the outlet end of the hose • Use of water for construction purposes, such as consolidation of backfill, unless no other source of water or method can be used
• Waste of water due to broken or defective plumbing, sprinklers, and watering/irrigation systems
• Restaurant water service unless upon request
• From April 1 to November 1, outside landscape irrigation for any residential, business, or industrial purpose between the hours of 10:00 a.m. and 6:00 p.m., with exemptions from this provision:
o Drip irrigation systems and the use of reclaimed water. o The watering of landscaping at the time of installation. • Large industrial, commercial, and multi-family water users may be required to undergo water audits; however, City staff do not conduct them.

9.1.2.2 Metering
California Water Code
526 (a) Notwithstanding any other provisions of law, an urban water supplier that, on or after January 1, 2004, receives water from the federal Central Valley Project under a water service contract or subcontract... shall do both of the following:
(1) On or before January 1, 2013, install water meters on all service connections to residential and nonagricultural commercial buildings... located within its service area. 527 (a) An urban water supplier that is not subject to Section 526 shall do both the following:
(1) Install water meters on all municipal and industrial service connections located within its service area on or before January 1, 2025.

All new connections to the water system must be equipped with meters that record the volume of use, as well as a program be put in place to convert unmetered connections to meters.

The City has a metering policy in which meters are replaced and upgraded every 10 years, corresponding to the new battery lifespan for meters. When taking the reading, if an error is suspected, the meter is evaluated by the City, and consumptive use, whether high or low, is taken into account on an individual basis to account for leaks or possible meter error. The AMI implementation is almost 95%, according to the City’s latest information.

9.1.2.3 Conservation Pricing
Starting January 1, 2024, the City no longer maintains a tiered water billing policy.

May 2026 9-4 City of Gilroy
2025 Urban Water Management Plan

9.1.2.4 Public Education and Outreach
The City, in cooperation with Valley Water, has several programs to reduce water consumption by promoting public awareness of water conservation. These programs also provide incentives for replacing high water use fixtures through both voluntary and mandated replacement initiatives.

9.1.2.4.1 Public Information Programs
In order to raise public awareness of water conservation, the City offers programs for the purpose of distributing water use information to the public through varying methods, which can include brochures, radio or television broadcasts, or through school programs and videos. Additionally, information on water use conservation can be found on the City website.

Programs offered by the City and Valley Water include:
• Free showerheads and aerators, as well as water conservation brochures, are offered by the City through either City Hall or the City website. Additional water conservation information and other useful links are also available online through the City website. • The City has an annual Water Conservation Booth at the fair, where they make available water conservation information, as well as free showerheads and aerators upon request.

Additionally, City staff may participate in other community held events to provide water conservation information to the public.
• Water conservation pamphlets are inserted in the water bills, as well as made available on the City’s website, in English and Spanish. Historical water use information for the individual account is also included in the bill.
• Yearly contract for water conservation/education commercials with the local theater (commercial on seven screens, totaling 168,822 impressions annually). • The City is also implementing and deploying a community-wide software called AQUATRAX, a customer portal allowing users to view and track their water consumption in real time.
• Water Conservation Program: the program is currently staffed by two part-time Water Conservation Specialists. A third staff member (a Senior Management Analyst) will lead the conservation team and support policy updates and implementation.

9.1.2.4.2 School Education Program
Valley Water employs staff to provide youth education through free classroom presentations, puppet shows, and tours of Valley Water facilities across the County. These programs aim to educate students on water conservation and water supply topics.

May 2026 9-5 City of Gilroy
2025 Urban Water Management Plan

9.1.2.4.3 Water Conservation Rebate Programs
The City used to implement the clothes washer rebate program in collaboration with Valley Water that, but now it is not available.

9.1.2.4.4 Landscape Rebate Program
Valley Water’s Landscape Rebate Program is available to homeowners, apartment complexes, and commercial sites in Santa Clara County that make qualifying water-efficient upgrades to their landscapes. The program aims to convert high water use landscaping to low water use landscaping and retrofit existing irrigation systems with more efficient solutions.

9.1.2.4.5 Survey Programs
The following section summarizes the survey programs available to water system customers within the City.

Valley Water offers outdoor water use surveys to residential sites under one-half acre. During this outdoor water use survey, a trained irrigation professional will review the existing irrigation system and mark any observed issues, as well as perform any necessary adjustments to onsite irrigation controllers. The findings of the survey will be summarized in a customized report.

Water Conservation Specialists disseminate self-evaluation kits when they complete site visits or during the numerous tabling and outreach events they attend throughout the year. The selfevaluation kit includes materials to test shower and sink flow rates as well as dye tablets for testing toilet leaks. The kit includes a guide on how to perform the tests as well as general information on common indoor water leaks.

9.1.2.5 Programs to Assess and Manage Distribution System Real Loss When water enters the transmission and distribution system, it is difficult to account for the end result of the water. As a means to better account for water use in the system, a water supplier may use a water audit. Unaccounted for water is the difference between the water supplied to the system and the cumulative total of metered water use. Currently, the City does not meter sewer and hydrant flushing, as well as street sweeping, and the City compares well production with water usage to determine these uses. Additionally, unaccounted for water can be an indicator of leaks, meter errors, water system repair or maintenance, or illegal connections.

The City’s annual capital improvement budget currently allocates funds for system repairs, including transmission and distribution mains, as well as pump stations and storage tanks. Leaks within the system are immediately fixed upon detection. The City keeps a record of all repaired leaks in the Utilities Department.

May 2026 9-6 City of Gilroy
2025 Urban Water Management Plan

9.1.2.6 Water Conservation Program Coordination and Staffing Support The City established the position of Water Conservation Specialist within the newly formed Utilities Department, whose responsibilities included the coordination and expansion of water conservation efforts within the City. These roles included establishing water conservation programs, and maintaining communication with City residents about water conservation practices.

9.1.2.7 Other Demand Management Measures – Water-Wise Landscaping The City promotes water-efficient gardening practices among community members. Valley Water’s Water-Wise Gardening software is available to the public, offering resources such as water-efficient garden examples, photos, and detailed descriptions of over 1,000 plants.

Since 2025, water-wise landscaping efforts have been further supported through rebate programs offered in partnership with Valley Water, which provide incentives for converting high water-use turf to low water-use landscaping, retrofitting irrigation systems, and implementing graywater reuse.

9.2 SUBMITTAL TABLES SUMMARY
This chapter does not include any submittal tables.

May 2026 10-1 City of Gilroy
2025 Urban Water Management Plan
202City of 5Gilroy

10.0 CHAPTER 10 – PLAN ADOPTION
This chapter summarizes the process for adopting and submitting the UWMP as well as the ways the public can access the adopted UWMP.

10.1 PLAN COMPLETION TIMELINE
The 2025 UWMP guidebook allows for the reporting of either calendar year or fiscal year reporting. The City of Gilroy has completed this 2025 UWMP based on calendar year reporting, and thus the data was collected through December 31, 2025, and evaluated as part of this reporting.

10.2 NOTICE OF PLAN PREPARATION
California Water Code
10621 (b) Every urban water supplier required to prepare a plan shall … at least 60 days prior to the public hearing on the plan … notify any city or county within which the supplier provides waters supplies that the urban water supplier will be reviewing the plan and considering amendments or changes to the plan.

The City provided notice to relevant stakeholders, summarized in Table 10-1, on December 17, 2025. This notification was issued more than 60 days prior to the public hearing on the 2025 UWMP, meeting the required timeline.

Chapter Focus
This chapter outlines the procedures for adopting, submitting, and making the UWMP and WSCP publicly accessible. Transparent adoption and implementation ensure that customers and stakeholders are informed about water management practices and water supply reliability.

Public notices and hearings provide opportunities for review and input, while formal adoption incorporates the plans into the City’s management strategy, supporting informed decisionmaking and compliance with statutory requirements.

May 2026 10-2 City of Gilroy
2025 Urban Water Management Plan
Submittal Table 10-1 Retail: Notification to Cities and Counties Water Code Section 10621(b) and 10642

10.3 NOTICE OF PUBLIC HEARING
California Water Code
10642 …Prior to adopting either [the plan or water shortage contingency plan], the urban water supplier shall make both the plan and the water shortage contingency plan available for public inspection and shall hold a public hearing or hearings thereon. Prior to any of these hearings, notice of the time and place of the hearing shall be published within the jurisdiction of the publicly owned water supplier pursuant to Section 6066 of the Government Code [see below].. ..

California Government Code
6066 Publication of notice pursuant to this section shall be once a week for two successive weeks. Two publications in a newspaper published once a week or oftener, with at least five days intervening between the respective publication dates not counting such publication dates, are sufficient. The period of notice commences upon the first day of publication and terminates at the end of the fourteenth day, including therein the first day.

A notice of the public hearing was published in the local newspaper in accordance with Government Code 6066. Documentation of the public notice is included in Appendix C, and the draft 2025 UWMP was made available for review at various City facilities and on the City’s website.

10.4 PUBLIC HEARING AND ADOPTION
California Water Code
10642 Each urban water supplier shall encourage the active involvement of diverse social, cultural, and economic elements of the population within the service area prior to and during the preparation of both the plan and the water shortage contingency plan. Prior to adopting either, the urban water supplier shall make both the plan and the water shortage contingency plan available for public inspection and shall hold a public hearing or City Name 60 Day Notice
Notice of Public
Hearing
City of Morgan Hill Yes Yes
Valley Water Yes Yes
County Name 60 Day Notice
Notice of Public
Hearing
Santa Clara County Yes Yes

May 2026 10-3 City of Gilroy
2025 Urban Water Management Plan
hearings thereon…. After the hearing or hearings, the plan or water shortage contingency plan shall be adopted as prepared or as modified after the hearing or hearings.

California Government Code
7291 …every local public agency… serving a substantial number of non-English-Speaking people, shall employ a sufficient number of qualified bilingual persons in public contact positions or as interpreters to assist those in such positions, to ensure provision of information and services in the language of the non-English-speaking person.

Following the public review, the City held an informational public hearing on ______, 2026, to present the 2025 UWMP and receive comments from the community. Subsequently, the City Council adopted the final 2025 UWMP at a meeting on _________. A copy of the adopting resolution is included in Appendix C.

10.5 PLAN SUBMITTAL
California Water Code
10621 (e) Each urban water supplier shall update and submit its 2025 plan to the department by July 1, 2026… 10635 (c) The urban water supplier shall provide that portion of its urban water management plan prepared pursuant to this article to any city or county within which it provides water supplies no later than 60 days after the submission of its urban water management plan.
10644 (a)(1) An urban water supplier shall submit to the department, the California State Library, and any city or county within which the supplier provides water supplies a copy of its plan no later than 30 days after adoption.

10.5.1 Submitting a UWMP to DWR
The UWMPA requires water agencies to submit a copy of the adopted 2025 UWMP to the Department of Water Resources within 30 days of adoption and no later than July 1, 2026.

Additionally, agencies must provide a copy of the adopted 2025 UWMP to all relevant stakeholders within 30 days of adoption.

10.5.2 Electronic Data Submittal
California Water Code
10644 (a)(2) The plan, or amendments to the plan, submitted to the department … shall be submitted electronically and shall include any standardized forms, tables, or displays specified by the department.

The City of Gilroy is required to submit the UWMP, along with associated Submittal Tables and any other relevant information, electronically through the WUEdata portal.

May 2026 10-4 City of Gilroy
2025 Urban Water Management Plan

10.5.3 Submitting a UWMP to the California State Library Within 30 days of adoption, the City of Gilroy shall submit a copy of the adopted 2025 UWMP, including the adopted WSCP, to the California State Library, either on a compact disc (CD) or as a hard copy.

10.5.4 Submitting a UWMP to Cities and Counties
Within 30 days of adoption, the City of Gilroy shall provide a copy of the adopted 2025 UWMP, to each city or county to which the City delivers water.

10.6 PUBLIC AVAILABILITY
California Water Code
10645 (a) Not later than 30 days after filing a copy of its plan with the department, the urban water supplier and the department shall make the plan available for public review during normal business hours. 10645 (b) Not later than 30 days after filing a copy of its water shortage contingency plan with the department, the urban water supplier and the department shall make the plan available for public review during normal business hours.

The UWMPA requires water agencies to submit a copy of the adopted 2025 UWMP to the Department of Water Resources within 30 days of adoption and no later than July 1st, 2026.

Additionally, agencies must provide a copy of the adopted 2025 UWMP to all relevant stakeholders within 30 days of adoption.

10.7 DWR REVIEW
Following the submittal of this adopted 2025 UWMP, DWR reviews the report and the submitted workbook for data completeness. Following the review, DWR will issue a letter to the City of Gilroy, summarizing the review results, and advising if the 2025 UWMP is deemed complete or if any items need clarifications.

10.8 SUBMITTAL TABLES SUMMARY
This chapter included the following submittal table(s):
• Table 10-1: Notification to Cities and Counties.

May 2026 City of Gilroy
2025 Urban Water Management Plan
202City of 5Gilroy

APPENDICES

May 2026 City of Gilroy
2025 Urban Water Management Plan
202City of 5Gilroy

APPENDIX A
DWR Checklist

May 2026 City of Gilroy
2025 Urban Water Management Plan
This appendix shows the checklist of specific UWMP requirements. The California DWR asks the City to complete this checklist as part of their 2025 UWMP. In the table, the City of Gilroy has entered information in the far-right column labeled “2025 UWMP Location,” and indicated the section number in their UWMP where a requirement is addressed.

May 2026 City of Gilroy
2025 Urban Water Management Plan
Table A-1 DWR Checklist
Retail
(x = required)
Wholesale
(x = required) Order 2025 Guidebook Location
Water Code
Section Summary as Applies to UWMP Subject
Relevant
Submittal
Table
2025 UWMP
Location
x x 1 Chapter 1 10615
A plan shall describe and evaluate sources of supply,
reasonable and practical efficient uses, reclamation and demand management activities.

Introduction and
overview n/a Chapter 1
x x 1 Chapter 1 10630.5
Each plan shall include a simple description of the Supplier’s plan including water availability, future requirements, a strategy for meeting needs, and other pertinent
information. Additionally, a Supplier may also choose to include a simple description at the beginning of each
chapter.

Plan preparation n/a Chapter 1
x x 2.1 Section 2.1 10620(b) Every person that becomes a Supplier shall adopt UWMP within one year after it has become a Supplier. Plan preparation n/a Section 2.1 x n/a 2.5 Section 2.5 10644
Supplier shall report the Public Water Systems number,
volume of delivered water, and number of connections that are included in this UWMP.

Plan preparation 2-1
Section 2.1 &
Table 2-1
x x 2.5 Section 2.5 10644
Supplier shall report if this UWMP is an individual UWMP and whether the Supplier belongs to a regional UWMP or
regional alliance.

Plan preparation 2-2
Section 2.2 &
Table 2-2
x x 2.5 Section 2.5 10644
Supplier shall report whether the data is in fiscal or calendar years and the units of measure used for reporting water volumes.

Plan preparation 2-3
Section 2.3 &
Table 2-3
x x 2.4 Section 2.4 10642
Provide supporting documentation that the Supplier has
encouraged active involvement of diverse social, cultural, and economic elements of the population within the service area prior to and during the preparation of the plan and contingency plan.

Plan preparation n/a
Section 2.4,
Section 8.12,
Section 10.2,
Section 10.3 &
Section 10.4
x x 2.4 Section 2.4.2 10620(d)(3)
Coordinate the preparation of its plan with other
appropriate agencies in the area, including other Suppliers that share a common source, water management agencies,
and relevant public agencies, to the extent practicable.

Plan preparation n/a Section 2.4
x n/a 2.4 Section 2.4.1 10631(h)
Retail Suppliers will include documentation that they have provided their Wholesale Supplier(s)—if any—with water
use projections from that source.

Plan preparation 2-4 R
Section 2.4 &
Table 2-4
n/a x 2.4 Section 2.4.1 10631(h)
Wholesale Suppliers will provide their Suppliers with
identification and quantification of the existing and planned sources of water available from the Wholesale Supplier to the Supplier during various water year types.

Plan preparation 2-4 W n/a
x x 3 Chapter 3.0 10631(a) Describe the Supplier service area. System description n/a Section 3.2

May 2026 City of Gilroy
2025 Urban Water Management Plan
Retail
(x = required)
Wholesale
(x = required) Order 2025 Guidebook Location
Water Code
Section Summary as Applies to UWMP Subject
Relevant
Submittal
Table
2025 UWMP
Location
x x 3.3 Section 3.3 10631(a) Describe the climate of the Supplier’s service area. System description n/a Section 3.3
x x 3.4 Section 3.4.1 10631(a) Provide the current and projected service area populations for 2030, 2035, 2040, 2045 and optionally 2050.

System
description 3-1
Section 3.4 &
Table 3-1
x x 3.4 Section 3.4.2 10631(a) Describe other social, economic, and demographic factors affecting the Supplier’s water management planning.

System
description n/a Section 3.1.3 & Section 3.4
x x 3.5 Section 3.5 10631(a)
Describe the land uses within the service area… include the current and projected land uses within the existing or
anticipated service area affecting the Supplier’s water management planning. Describe the land uses within the
service area.

System
description and
baselines
n/a Section 3.1.2
x Optional 4.2 Sections 4.2.3
and 4.2.4 10631(d)(1) Quantify past, current, and projected water use, identifying the uses among water use sectors.

System water
use
4-1 and 4-
2 Section 4.2,
Table 4-1 &
Table 4-2
x Optional 4.3 Section 4.3.1 10631(d)(3)(A
)
Report the distribution system water loss for each of the five years preceding the plan update.

System water
use
4-5
Section 4.3.1 &
Table 4-5
x n/a 4.3 Section 4.3.2 10631(d)(3)(C) Retail Suppliers shall provide data to show the distribution loss standards were met.

System water
use
4-6
Section 4.3.2 &
Table 4-6
x n/a 4.2 Section 4.2.5.4 10631.1(a) Include projected water use needed for lower income housing projected in the service area of the Supplier.

System water
use
4-3
Section 4.2.6 &
Table 4-3
x n/a 4.2 Section 4.2.5.3 10631(d)(4)(A
)
In projected water use, include estimates of water savings from adopted codes, plans, and other policies or laws.

System water
use
4-3
Section 4.2.4 &
Table 4-3
x n/a 4.2 Section 4.2.5.3 10631(d)(4)(B) Provide citations of codes, standards, ordinances, or plans used to make water use projections.

System water
use
4-3
Section 4.2.4 &
Table 4-3
x n/a 4.2 Section 4.2.5.3 10631(d)(4)(B)
(ii)
To the extent that a Supplier reports the information
described in subparagraph (A), an urban water Supplier
shall… Indicate the extent that the water use projections consider savings from codes, standards, ordinances, or
transportation and land use plans. Water use projections that do not account for these water savings shall be noted of that fact.

System water
use
4-3
Section 4.2.4 &
Table 4-3
x x 4.2 Section 4.2.5.6 10635(b) Demands under climate change considerations must be included as part of the drought risk assessment.

System water
use
n/a Section 4.2.7
n/a x 5.1 Section 5.1 10608.36
Wholesale Suppliers shall include an assessment of present and proposed future measures, programs, and policies to help their Retail Suppliers achieve targeted water use
reductions.

Baselines and
targets
n/a n/a

May 2026 City of Gilroy
2025 Urban Water Management Plan
Retail
(x = required)
Wholesale
(x = required) Order 2025 Guidebook Location
Water Code
Section Summary as Applies to UWMP Subject
Relevant
Submittal
Table
2025 UWMP
Location
x n/a 5.2 Section 5.2 10608.4
Retail Suppliers shall report on their compliance in meeting their water use targets. Reporting requirements will vary depending on whether the Supplier:
- Was considered an urban retail water supplier in 2020, - Met its 2020 target in 2020, or
- Was part of a merger or consolidation since 2020.

Chapter 5 Subsections 5.2.1, 5.2.2, and 5.2.3 address each of these situations.

Baselines and
targets
5-1
Section 5.2 &
Table 5-1
x x 6.1 Section 6.1 10631(b)(2)
When multiple sources of water supply are identified,
describe the management of each supply in relationship to other identified supplies.

System supplies n/a Section 6.1
x x 6.1 Sections 6.1 and

6.2 10631(b)(1)
Provide a discussion of anticipated supply availability under a normal, single dry year, and a drought lasting five years, as well as more frequent and severe periods of drought, including changes in supply due to climate change.

System supplies n/a Sections 7.2.1
x x 6.2 Section 6.2.2 10631(b)(4)(C)
Indicate whether groundwater is an existing or planned
source of water available to the Supplier. If groundwater is identified as an existing or planned source of water…
(include) a detailed description and analysis of the location, amount and sufficiency of groundwater pumped by the
Supplier for the past five years.

Water supplies
and recycled
water
6-1
Section 6.2 &
Table 6-1
x x 6.2 Section 6.2.2 10631(b)(4)(A
)
Indicate whether a groundwater sustainability plan or
groundwater management plan has been adopted by the
Supplier or if there is any other specific authorization for groundwater management. Include a copy of the plan or
authorization.

System supplies n/a Section 6.2
x x 6.2 Section 6.2.2 10631(b)(4)(B) Describe the groundwater basin. System supplies n/a Section 6.2.1.1 x x 6.2 Section 6.2.2 10631(b)(4)(B)
Indicate if the basin has been adjudicated and include a copy of the court order or decree and a description of the amount of water the Supplier has the legal right to pump.

System supplies n/a Section 6.2.1.1
x x 6.2 Section 6.2.2 10631(b)(4)(B)
For unadjudicated basins… (include) information as to
whether DWR has identified the basin as a high- or
medium-priority basin in the most current official
departmental bulletin…
Water supplies
and recycled
water
n/a
Section 6.2.1.2,
Section 6.2.2.1 &
Section 6.2.3
x x 6.2 Section 6.2.2 10631(b)(4)(B)
For unadjudicated basins… describe efforts by the Supplier to coordinate with sustainability or groundwater agencies to achieve sustainable groundwater conditions.

Water supplies
and recycled
water
n/a Section 6.2

May 2026 City of Gilroy
2025 Urban Water Management Plan
Retail
(x = required)
Wholesale
(x = required) Order 2025 Guidebook Location
Water Code
Section Summary as Applies to UWMP Subject
Relevant
Submittal
Table
2025 UWMP
Location
x x 6.2 Section 6.2.2. 10631(b)(4)(C)
If groundwater is identified as an existing or planned source of water… (include) a detailed description and analysis of the location, amount and sufficiency of groundwater
pumped by the Supplier for the past five years.

System supplies n/a Section 6.2
x x 6.2 Section 6.2.2 10631(b)(4)(D
)
Provide a detailed description and analysis of the amount and location of groundwater that is projected to be
pumped.

System supplies 6-9
Section 6.9 &
Table 6-9
x x 6.1 Section 6.1 10631(b)
Identify and quantify the existing and planned sources of water available for 2025, 2030, 2035, 2040, 2045 and
optionally 2050.

System supplies 6-8 and 6-
9 Section 6.9 &
Table 6-8 and 6-
9 x x 6.2 Section 6.2.7 10631(c) Describe the opportunities for exchanges or transfers of water on a short-term or long-term basis. System supplies n/a Section 6.7 x n/a 6.2 Section 6.2.5 10633(a)
Describe the wastewater collection and treatment systems in the Supplier’s service area with quantified amount of collection and treatment and the disposal methods.

System supplies
(recycled water) 6-2
Section 6.5.2.1 &
Table 6-2
x x 6.2 Section 6.2.5 10633(b)
Describe the quantity of treated wastewater that meets
recycled water standards, is being discharged, and is
otherwise available for use in a recycled water project.

System supplies
(recycled water) 6-3
Section 6.5.2.2 &
Table 6-3
x x 6.2 Section 6.2.5 10633(c) Describe the recycled water currently being used in the Supplier's service area.

System supplies
(recycled water) 6-4
Section 6.5.4 &
Table 6-4
x x 6.2 Section 6.2.5 10633(d)
Describe and quantify the potential uses of recycled water and provide a determination of the technical and economic feasibility of those uses.

System supplies
(recycled water) 6-4
Section 6.5.4 &
Table 6-4
x x 6.2 Section 6.2.5 10633(e)
Describe the projected use of recycled water within the Supplier's service area at the end of 5, 10, 15, and 20 years, and describe the actual use of recycled water in comparison to uses previously projected.

System supplies
(recycled water)
6-4 and 6-
5 Section 6.5.4 &
Table 6-4 and 6-
5 x x 6.2 Section 6.2.5 10633(f)
Describe the actions that may be taken to encourage the use of recycled water and the projected results of these actions in terms of acre-feet of recycled water used per year.

System supplies
(recycled water) 6-6
Section 6.5.4 &
Table 6-6
x x 6.2 Section 6.2.5 10633(g) Provide a plan for optimizing the use of recycled water in the Supplier's service area.

System supplies
(recycled water) n/a Section 6.5.4
x x 6.2 Section 6.2.6 10631(g) Describe desalinated water project opportunities for longterm supply. System supplies 6-7 Section 6.6 x x 6.2 Section 6.2.10 10631(f)
Describe the expected future water supply projects and
programs that may be undertaken by the water Supplier to address water supply reliability in average, single-dry, and for a period of drought lasting five consecutive water years.

System supplies 6-7
Section 6.8 &
Table 6-7

May 2026 City of Gilroy
2025 Urban Water Management Plan
Retail
(x = required)
Wholesale
(x = required) Order 2025 Guidebook Location
Water Code
Section Summary as Applies to UWMP Subject
Relevant
Submittal
Table
2025 UWMP
Location
x x 6.3 Section 6.3 and
Appendix O 10631.2(a) The UWMP must include energy information, as stated in the code, that a Supplier can readily obtain.

System suppliers,
energy intensity
O-1A, O1B, O-1C,
and O-2
Section 6.11
x 7.1 Section 7.1 10634
Provide information on the quality of existing sources of water available to the Supplier and the manner in which water quality affects water management strategies and
supply reliability.

Water supply
reliability
assessment
n/a Section 7.1.3
x x 7.2 Section 7.2 10635(a)
Service Reliability Assessment: Assess the water supply reliability during normal, dry, and a drought lasting five consecutive water years by comparing the total water
supply sources available to the Supplier with the total projected water use over the next 20 years.

Water supply
reliability
assessment
7-2, 7-3,
and 7-4
Section 7.2 &
Table 7-2, 7-3,
and 7-4
x x 7.2 Section 7.2.3 10620(f)
Describe water management tools and options to maximize resources and minimize the need to import water from
other regions.

Water supply
reliability
assessment
n/a Section 7.2.3
x x 7.3 Section 7.3 10635(b)
Provide a drought risk assessment as part of information considered in developing the demand management
measures and water supply projects.

Water supply
reliability
assessment
n/a Section 7.3
x x 7.3 Section 7.3 10635(b)(1)
Include a description of the data, methodology, and basis for one or more supply shortage conditions that are
necessary to conduct a drought risk assessment for a
drought period that lasts five consecutive years.

Water supply
reliability
assessment
n/a Section 7.3.1
x x 7.3 Section 7.3 10635(b)(2) Include a determination of the reliability of each source of supply under a variety of water shortage conditions.

Water supply
reliability
assessment
n/a Section 7.3.2
x x 7.3 Section 7.3 10635(b)(3)
Include a comparison of the total water supply sources
available to the Supplier with the total projected water use for the drought period.

Water supply
reliability
assessment
7-5
Section 7.3.3 &
Table 7-5
x x 7.3 Section 7.3 10635(b)(4)
Include considerations of the historical drought hydrology, plausible changes on projected supplies and demands under climate change conditions, anticipated regulatory changes, and other locally applicable criteria.

Water supply
reliability
assessment
n/a Section 7.1.3 &
Section 7.3
x x 8 Chapter 8 10632(a) Provide a water shortage contingency plan (WSCP) with specified elements below.

Water shortage
contingency
planning
n/a Chapter 8
x x 8 Chapter 8 10632(a)(1) Provide an analysis of water supply reliability (from Guidebook Chapter 7) in the WSCP.

Water shortage
contingency
planning
n/a Section 8.1

May 2026 City of Gilroy
2025 Urban Water Management Plan
Retail
(x = required)
Wholesale
(x = required) Order 2025 Guidebook Location
Water Code
Section Summary as Applies to UWMP Subject
Relevant
Submittal
Table
2025 UWMP
Location
x x 8.2 Section 8.2 10632(a)(2)(A)
Provide the written decision-making process and other
methods that the Supplier will use each year to determine its water reliability.

Water shortage
contingency
planning
n/a Section 8.2.1
x x 8.2 Section 8.2 10632(a)(2)(B)
Provide data and methodology to evaluate the Supplier’s water reliability for the current year and one dry year pursuant to factors in the code.

Water shortage
contingency
planning
n/a Section 8.2.2
x x 8.3 Section 8.3 10632(a)(3)(A)
Define six standard water shortage levels of 10%, 20%, 30%, 40%, 50% shortage, and greater than 50% shortage. These levels shall be based on supply conditions, including percent reductions in supply, changes in groundwater levels,
changes in surface elevation, or other conditions. The
shortage levels shall also apply to a catastrophic
interruption of supply.

Water shortage
contingency
planning
n/a Section 8.3
x x 8.3 Section 8.3 10632(a)(3)(B)
Suppliers with an existing WSCP that uses different water shortage levels must cross reference their categories with the six standard categories.

Water shortage
contingency
planning
8-1
Section 8.3,
Table 8-1B &
Table 8-1
x x 8.4 Section 8.4 10632(a)(4)(A)
Suppliers with WSCPs that align with the defined shortage levels must specify locally appropriate supply augmentation actions.

Water shortage
contingency
planning
8-2
Section 8.4.1 &
Table 8-2
x x 8.4 Section 8.4 10632(a)(4)(B) Specify locally appropriate demand reduction actions to adequately respond to shortages.

Water shortage
contingency
planning
8-3
Section 8.4.2 &
Table 8-3
x x 8.4 Section 8.4 10632(a)(4)(C) Specify locally appropriate operational changes.

Water shortage
contingency
planning
8-2
Section 8.4.3 &
Table 8-2
x x 8.4 Section 8.4 10632(a)(4)(D)
Specify additional mandatory prohibitions against specific water use practices that are in addition to State-mandated prohibitions are appropriate to local conditions.

Water shortage
contingency
planning
Table 8-3
Section 8.4.4 &
Table 8-3
x x 8.4 Section 8.4 10632(a)(4)(E) Estimate the extent to which the gap between supplies and demand will be reduced by implementation of the action.

Water shortage
contingency
planning
8-2 and 8-
3 Section 8.4 &
Table 8-2 and 8-
3 x x 8.4 Section 8.4.6 10632.5 The UWMP shall include a seismic risk assessment and mitigation plan.

Water shortage
contingency plan n/a Section 8.4.6
x x 8.5 Section 8.5 10632(a)(5)(A)
Suppliers must describe that they will inform customers, the public and others regarding any current or predicted water shortages.

Water shortage
contingency
planning
n/a Section 8.5

May 2026 City of Gilroy
2025 Urban Water Management Plan
Retail
(x = required)
Wholesale
(x = required) Order 2025 Guidebook Location
Water Code
Section Summary as Applies to UWMP Subject
Relevant
Submittal
Table
2025 UWMP
Location
x x 8.5 Section 8.5
10632(a)(5)(B)
,
10632(a)(5)(C)
Suppliers must describe that they will inform customers, the public and others regarding any shortage response actions triggered or anticipated to be triggered and other relevant communications.

Water shortage
contingency
planning
n/a Section 8.5
x n/a 8.6 Section 8.6 10632(a)(6) Retail Supplier must describe how it will ensure compliance with and enforce provisions of the WSCP.

Water shortage
contingency
planning
n/a Section 8.6
x x 8.7 Section 8.7 10632(a)(7)(A) Describe the legal authority that empowers the Supplier to enforce shortage response actions.

Water shortage
contingency
planning
n/a Section 8.7
x x 8.7 Section 8.7 10632(a)(7)(B)
Provide a statement that the Supplier will declare a water shortage emergency per Water Code Chapter 3. Water
Shortage Emergencies.

Water shortage
contingency
planning
n/a Section 8.7.1
x x 8.7 Section 8.7 10632(a)(7)(C)
Provide a statement that the Supplier will coordinate with any city or county within which it provides water for the possible proclamation of a local emergency.

Water shortage
contingency
planning
n/a Section 8.7.2
x x 8.8 Section 8.8 10632(a)(8)(A)
Describe the potential revenue reductions and expense
increases associated with activated shortage response
actions.

Water shortage
contingency
planning
n/a Section 8.8
x x 8.8 Section 8.8 10632(a)(8)(B)
Provide a description of mitigation actions needed to
address revenue reductions and expense increases
associated with activated shortage response actions.

Water shortage
contingency
planning
n/a Section 8.8 &
Table 8-4
x n/a 8.8 Section 8.8 10632(a)(8)(C)
Retail Suppliers must describe the cost of compliance with Water Code Chapter 3.3, Excessive Residential Water Use During Drought.

Water shortage
contingency
planning
n/a Section 8.8
x n/a 8.9 Section 8.9 10632(a)(9)
Retail Suppliers must describe the monitoring and reporting requirements and procedures that ensure appropriate data are collected, tracked, and analyzed for purposes of
monitoring customer compliance.

Water shortage
contingency
planning
n/a Section 8.9
x x 8.10 Section 8.10 10632(a)(10)
Describe reevaluation and improvement procedures for
monitoring and evaluation the WSCP to ensure risk
tolerance is adequate and appropriate water shortage
mitigation strategies are implemented.

Water shortage
contingency
planning
n/a Section 8.10
x n/a 8.11 Section 8.11 10632(b)
Analyze and define water features that are artificially supplied with water, including ponds, lakes, waterfalls, and fountains, separately from swimming pools and spas.

Water shortage
contingency
planning
n/a Section 8.11

May 2026 City of Gilroy
2025 Urban Water Management Plan
Retail
(x = required)
Wholesale
(x = required) Order 2025 Guidebook Location
Water Code
Section Summary as Applies to UWMP Subject
Relevant
Submittal
Table
2025 UWMP
Location
x x 8.12 Section 8.12 10632(c)
Make available the WSCP to customers and any city or
county where it provides water within 30 days after
adoption of the plan.

Water shortage
contingency
planning
n/a Section 8.12
x n/a 9.1 Sections 9.1 10631(e)(1)
Retail Suppliers shall provide a description of the nature and extent of each demand management measure implemented
over the past five years. The description will address specific measures listed in code.

Demand
management
measures
n/a Section 9.1
n/a x 9.2 Sections 9.2 10631(e)(2)
Wholesale Suppliers shall describe specific demand
management measures listed in code, their distribution
system asset management program, and Supplier assistance program.

Demand
management
measures
n/a n/a
x n/a 10 Chapter 10 10608.26(a)
Retail Suppliers shall conduct a public hearing to discuss adoption, implementation, and economic impact of water
use targets (recommended to discuss compliance).

Plan adoption,
submittal, and
implementation
n/a Section 10.4
x x 10.2 Section 10.2.1 10621(b)
Notify, at least 60 days prior to the public hearing, any city or county within which the Supplier provides water that the Supplier will be reviewing the UWMP and considering
amendments or changes to the plan.

Plan adoption,
submittal, and
implementation
10-1
Section 10.2 &
Table 10-1
x x 10.4 Section 10.4 10621(f) Each urban water Supplier shall update and submit its 2025 plan to DWR by July 1, 202 6.

Plan adoption,
submittal, and
implementation
n/a Section 10.5
x x 10.2 Sections 10.2.2,

10.3, and 10.5 10642
Provide supporting documentation that the Supplier made the UWMP and WSCP available for public inspection,
published notice of the public hearing, and held a public hearing about the UWMP and WSCP.

Plan adoption,
submittal, and
implementation
n/a Section 10.6
x x 10.2 Section 10.2.2 10642
The Supplier is to provide the time and place of the hearing to any city or county within which the Supplier provides water.

Plan adoption,
submittal, and
implementation
10-1
Section 10.2.2 &
Table 10-1
x x 10.3 Section 10.3.2 10642 Provide supporting documentation that the UWMP and WSCP has been adopted as prepared or modified.

Plan adoption,
submittal, and
implementation
n/a Appendix C
x x 10.4 Section 10.4 10644(a) Provide supporting documentation that the Supplier has submitted their UWMP to the California State Library.

Plan adoption,
submittal, and
implementation
n/a Section 10.5.3
x x 10.4 Section 10.4 10644(a)(1)
Provide supporting documentation that the Supplier has
submitted their UWMP to any city or county within which the Supplier provides water no later than 30 days after adoption.

Plan adoption,
submittal, and
implementation
n/a Sections 10.5

May 2026 City of Gilroy
2025 Urban Water Management Plan
Retail
(x = required)
Wholesale
(x = required) Order 2025 Guidebook Location
Water Code
Section Summary as Applies to UWMP Subject
Relevant
Submittal
Table
2025 UWMP
Location
x x 10.4 Sections 10.4.1
and 10.4.2 10644(a)(2) The UWMP, or amendments to the UWMP, submitted to DWR shall be submitted electronically.

Plan adoption,
submittal, and
implementation
n/a Sections 10.5
x x 10.7 Section 10.7.2 10644(b) If revised, submit a copy of the WSCP to DWR within 30 days of adoption.

Plan adoption,
submittal, and
implementation
n/a Section 10.5
x x 10.5 Section 10.5 10645(a)
Provide supporting documentation that, not later than 30 days after filing a copy of its UWMP with DWR, the Supplier has or will make the plan available for public review during normal business hours.

Plan adoption,
submittal, and
implementation
n/a Section 10.6
x x 10.5 Section 10.5 10645(b)
Provide supporting documentation that, not later than 30 days after filing a copy of its WSCP with DWR, the Supplier has or will make the plan available for public review during normal business hours.

Plan adoption,
submittal, and
implementation
n/a Section 10.6
x x 10.6 Section 10.6 10621(c)
If Supplier is regulated by the Public Utilities Commission, include its plan and contingency plan as part of its general rate case filings.

Plan adoption,
submittal, and
implementation
n/a n/a

May 2026 City of Gilroy
2025 Urban Water Management Plan
202City of 5Gilroy

APPENDIX B
DWR Submittal Tables

Volume of
Water Supplied
2025
(AF)
CA4310004 City of Gilroy 15,935 7,913
15,935 7,913
NOTES:

Submittal Table 2-1 Retail: Public Water Systems
Total
Add additional rows as needed
DWR NOTES:

Units of measure (AF, CCF, MG) must remain consistent throughout the UWMP as reported in Submittal Table 2-3. This table identifies the unit of measure selected in Table 2-3.

Has there been a change in the number of affiliated Public Water Systems since the 2020 UWMP? (OPTIONAL)
Public Water System
Number
Public Water System
Name
Number of Municipal
Connections 2025

Water Supplier is also a member of a
SB X7-7 Regional Alliance
NOTES:

Name of Regional Alliance or
RUWMP (Drop Down List)
Submittal Table 2-2: Plan Identification
Select
One or
Both
Type of Plan
Individual UWMP
Regional Urban Water Management Plan
(RUWMP)

Supplier is a wholesale supplier
Supplier is a retail supplier
UWMP Tables are in calendar years
UWMP Tables are in fiscal years
Unit AF
Submittal Table 2-3: Supplier Identification
Type of Supplier (select one or both)
Fiscal or Calendar Year (select one)
If using fiscal years provide month and date that the fiscal year begins (mm/dd)
Units of measure used in UWMP
(Select from the drop down list).

DWR NOTES:

Units of measure (AF, CCF, MG) must remain consistent
throughout the UWMP as reported in Submittal Table 2-3.

NOTES: Page 734 of 896

2025 2030 2035 2040 2045 2050(opt)
62,205 64,840 68,283 71,908 75,726 79,746
Submittal Table 3-1 Retail: Population - Current and Projected Water Code Section 10631(a)
Population
Served
NOTES:

CWC 10631(a) describe the current and projected population of the service area including current and projected population… Page 736 of 896 Use Type
Volume
(AF)
Single Family Potable 4,140
Multi-Family Potable 846
Commercial Commercial & Institutional Potable 1,267
Landscape Potable 698
Other (optional) Hydrant & City Potable 195
Distribution System Water Loss Potable 766
7913
0 Total 7,913
Submittal Table 4-1 Retail: 2025 Actual Total Uses for Potable and Non-Potable Water Water Code Section 10631(d)(1)
CWC 10631(d)(1) For an urban retail water supplier, quantify, to the extent records are available, past and current water use…identifying the uses among water use sectors including but not limited to:

NOTES: Water Loss extracted from the Water Production report provided by City staff.

DWR NOTES: Units of measure (AF, CCF, MG) must remain consistent throughout the UWMP as reported in Submittal Table 2-3. This table identifies the unit of measure selected in Submittal Table 2-3. 2025 Actual Water Use
Add additional rows as needed
Level of Treatment
When Delivered
(OPTIONAL)
Drop down list
Additional Description
(as needed)
Drop down list
May select each use multiple times
These are the only use types that will be
recognized by the WUEdata online submittal tool
Subtotal Potable
Subtotal Non-Potable

Use Type
2030 2035 2040 2045 2050 (opt)
(AF) (AF) (AF) (AF) (AF)
Single Family Potable 4,802 5,057 5,325 5,608 5,905
Multi-Family Potable 981 1,033 1,088 1,146 1,207
Commercial Include Institutional Potable 1,470 1,548 1,630 1,716 1,807 Landscape Potable 810 853 898 945 996
Other (optional) Potable 226 238 251 264 278
Distribution System Water Loss Potable 888 936 985 1,038 1,093 Other (optional) Recycled Water Non-Potable 1,507 1,864 2,218 2,570 2,570 9,177 9,664 10,177 10,717 11,286
1,507 1,864 2,218 2,570 2,570
10,684 11,528 12,395 13,287 13,856
Add additional rows as needed.

Drop down list
May select each use multiple times
These are the only Use Types that will be
recognized by the WUEdata online submittal tool
Additional Description
(as needed) Level of Treatment
When Delivered
(OPTIONAL)
Drop down list
Submittal Table 4-2 Retail: Total Uses of Potable, and Non-Potable Water - Projected Water Code Section 10631(d)(1)
Projected Water Use
(Report To the Extent that Records are Available)
Subtotal Potable
CWC 10631(d)(1) For an urban retail water supplier, quantify, to the extent records are available... projected water use…identifying the uses among water use sectors…
Total
DWR NOTES: Units of measure (AF, CCF, MG) must remain consistent throughout the UWMP as reported in Submittal Table 2-3. This table identifies the unit of measure selected in Submittal Table 2-3.

Subtotal Non-Potable

Are Future Water Savings Included in Projections?
(Refer to Appendix K of UWMP Guidebook)
Drop down list (y/n)
Yes
If "Yes" to above:

State the section or page number, in the cell to the right, where citations of the codes, ordinances, or otherwise are utilized in demand projections are found.

OPTIONAL Suppliers may complete Optional Submittal Table 4-4 R to quantify the expected savings.

4.2 Are Lower Income Residential Demands Included In Projections? (Refer to Appendix K of UWMP Guidebook)
Drop down list (y/n)
Yes
OPTIONAL If the method for accounting Lower Income Residential Demands has been included, provide page number where this accounting can be found. (An example is included in Appendix K.)
Submittal Table 4-3 Retail: Inclusion in Water Use Projections Water Code Section 10631 (a), 10631 (d)(4)(A), and 10631 (d)(4)(B) NOTES:

CWC 10631 (d) (4) (B) to the extent that an urban water supplier reports the information described in subparagraph (A), an urban water supplier shall do both of the following: (i) Provide citations of the various codes, standards, ordinances or transportation and land use plans utilized in making the projections.
(ii) Indicate the extent that the water use projections consider savings from codes, standards, ordinances, or transportation and land use plans. Water use projections that do not account for these water savings shall be noted of that fact.

CWC 10631(a) Water use projections required by section 10631 shall include projected water use for single-family and multifamily residential housing needed for lower income households, as identified in the housing element of any city, county, or city and county, in the service area of the supplier .

CWC10631 (d) (4) (A) Water use projections, where available, shall display and account for water savings estimated to result from adopted codes, standards, ordinances, or transpotation and land use plans identified by the urban water supplier, as applicable to the service area.

Public Water System ID #
Reported in Table 2-1 R Reporting Period
Submitted to DWR Water
Loss Audit Program
(yes/no)
2020 Yes
2021 Yes
2022 Yes
2023 Yes
2024 Yes
CWC 10631(d)(3) (A) The distribution system water loss shall be quantified for each of the five years preceding the plan update, in accordance with rules adopted pursuant to Section 10608.34.

Submittal Table 4-5 Retail: Water Loss Audit Reporting
Water Code Section 10631(d)(3)(A)
CA1610003
DWR NOTES: Suppliers will provide a link to the WUEdata submittals of their Water Loss Audit Reports.

NOTES: https://wuedata.water.ca.gov/
Report submittal status for all five years for each Public Water System as available.

Add rows as needed

Volume of Total Real
Loss (from AWWA
Water Loss Audit)
Volume of Total
Apparent Loss
(from AWWA Water
Loss Audit)
(AF)
(AF)
CA4310004 Yes 17.985
Gallons per
Service
Connection per
Day (GPSCD)
15,935 487 28.9 8.8
Gallons per
Service
Connection per
Day (GPSCD)
15,935 33.7 2.0
Number of Units
(Connections or
Miles corresponding
with units selected)
State Water Board Standard
2028 Real Water Loss
Standard per Unit per
day
Units for Real
Water Loss
Drop down list
State Water Board Standard
2028 Apparent
Water Loss
Standard per Unit
per Day
Units for
Apparent Water
Loss
Number of
Connections
CWC 10631(d)(3)(C) In the plan due July 1, 2021, and in each update thereafter, data shall be included to show whether the urban retail water supplier met the distribution loss standards enacted by the board pursuant to Section 10608.34.

Submittal Table 4-6 Retail: Progress Towards 2028 Water Loss Standard Water Code Section 10631(d)(3)(C)
NOTES:

Apparent Water Loss
Did the Water Board Calculate
a Water Loss Standard for this
Public Water System? (y/n)
If no, Supplier will not
complete this row.

Real Water Loss
Water Board's Calculated Water Loss Standards
DWR NOTES: Units of measure (AF, CCF, MG) for Water Loss MUST remain consistent with units reported in Submittal Table 2-3. The units reported in Submittal Table 2-3 are used in this table's calculations.

Public Water
System ID #
Reported in
Submittal Table 2-
1 R
Add additional rows as needed.

Most Recent AWWA Water Loss Audit
Real Water
Loss Per Unit
per Day
Most Recent AWWA Water Loss Audit
Apparent Water
Loss Per Unit per
Day

Actual 2025 GPCD
(From SB X7-7
Compliance Form)
Did Supplier meet
the 2020 Target in
2025?
No Individual
Target
133 118 Yes NA
10608.40 Urban water retail suppliers shall report to the department on their progress in meeting their urban water use targets as part of their urban water management plans submitted pursuant to Section 10631.

Submittal Table 5-1 Retail: SB X7-7 2020 Target Progress Water Code Section 10608.40
NOTES:

Did Supplier
Achieve Targeted
Reduction for
2020?
Actual 2020
GPCD
2020 Target
Regional
Alliance Target
or Individual
Target?
Drop down list
DWR NOTES:

Suppliers calculating a 2025 GPCD will need to complete and submit SB X 7-7 Compliance Tables to verify the use of SB X7-7 Methodologies.

Suppliers that were part of a merger or consolidation since 2020 see Chapter 5 and Appendix P for guidance.

NA=Not Applicable
Check the box if the Supplier was not an Urban Water Supplier during or before the 2020 UWMP reporting cycle.

Proceed to the next table.

Only for suppliers that did not meet
the Target in 2020
See DWR NOTES below.

Was Supplier part of
a merger or
consolidation since
2020?

2021 2022 2023 2024 2025
(AF) (AF) (AF) (AF) (AF)
Alluvial Basin
Gilroy-Hollister
Groundwater Basin, Llagas
Subbasin
7069 7412 7375 7847 7913
7,069 7,412 7,375 7,847 7,913
Add additional rows as needed
10631(4) If groundwater is identified as an existing or planned source of water available to the supplier, all of the following information:
(C) A detailed description and analysis of the location, amount, and sufficiency of groundwater pumped by the urban water supplier for the past five years. The description and analysis shall be based on information that is reasonably available, including, but not limited to, historic use records.

Submittal Table 6-1 Retail: Groundwater Volume Pumped
Water Code Section 10631(4) and 10631(4)(c)
DWR NOTES:

Units of measure (AF, CCF, MG) must remain consistent throughout the UWMP as reported in Submittal Table 2-3. This table identifies the unit of measure selected in Submittal Table 2-3.

NOTES
Total
Check the box if the Supplier does not pump groundwater.

Proceed to the next table.

Check the box if all or part of the groundwater described below is desalinated. (OPTIONAL) Groundwater Type
Drop Down List
May use each category
multiple times
Water Type
(OPTIONAL)
Drop down list
Location or Basin Name

Volume of
Wastewater
Collected from
UWMP Service
Area 2025
(AF)
City of Gilroy Metered 4,362
SCRWA Reclamation Facility,
Use Areas, Place ID 256038 Yes
4,362
CWC 10633 (a) (a) A description of the wastewater collection and treatment systems in the supplier’s service area, including a quantification of the amount of wastewater collected and treated and the methods of wastewater disposal.

Check the box if there is no wastewater collection system.

Proceed to the next table.

NOTES:

Submittal Table 6-2 Retail: Wastewater Collected Within Service Area in 2025 Water Code Section 10633(a)
Percentage of 2025 service area population served by wastewater collection system (OPTIONAL)
Percentage of 2025 service area served by wastewater collection system (OPTIONAL)
DWR NOTES: Units of measure (AF, CCF, MG) must remain consistent throughout the UWMP as reported in Submittal Table 2-3. This table identifies the unit of measure selected in Submittal Table 2-3.

Additional Guidance. See Appendix M, Section M.21 for detailed guidance on this table.

Wastewater Collection Recipient of Collected Wastewater Total Wastewater Received from UWMP
Service Area in 2025:

Wastewater
Volume
Metered or
Estimated?

OPTIONAL
Drop Down List
Name of Wastewater
Treatment Plant (WWTP) and
Place ID Number
Drop down list
Is WWTP
Located Within
UWMP Area?
Drop Down List
Add additional rows as needed
Name of Wastewater
Collection Agency

Volume Volume Volume Volume Volume
(AF) (AF) (AF) (AF) (AF) (AF) (AF)
SCRWA Reclamation
Facility, Use Areas,
Place ID 256038
Yes 4362 7,210 Tertiary 572 Tertiary 634
Secondary,
Disinfected -
23 6,005
4,362 7,210 572 634 6,005 0 0
Submittal Table 6-3 Retail: Wastewater Treatment and Outcomes Within UWMP Service Area in 2025 Water Code Section 10633(a)
DWR NOTES:

Units of measure (AF, CCF, MG) must remain consistent throughout the UWMP as reported in Submittal Table 2-3. This table identifies the unit of measure selected in Submittal Table 2-3.

IPR: Indirect Potable Reuse would have the treatment level of its end use requrement in the Level of Treatment drop-down.

Additional Guidance. See Appendix M, Section M.21 for detailed guidance on this table.

Water Recycled Outside
of UWMP Service Area
(enter data as applicable)
Effluent Discharge that
is not a Permitted
Recycled Water Use
(enter data as applicable)
Required Discharge for
Instream Flow
(enter data as applicable)
Delivered to Another Entity for Additional
Treatment
(enter data as applicable)
Add additional rows as needed
10633. The plan shall provide, to the extent available, information on recycled water and its potential for use as a water source in the service area of the urban water supplier...and shall include all of the following:
(b) A description of the quantity of treated wastewater that meets recycled water standards, is being discharged, and is otherwise available for use in a recycled water project. 2025 Outcomes of Treated Wastewater
Check the box if no wastewater is treated or disposed of within the UWMP service area.

Proceed to the next table.

Does This
Plant Treat
Wastewater
Generated
Outside the
UWMP Service
Area?
(OPTIONAL)
Drop down list
Wastewater
Treatment Plant
Name and Place ID
Number
Drop down list
Treatment
Level
Drop down list
Treatment
Level
Drop down list
Treatment
Level
Drop down list
Treatment
Level
Drop down list
Treatment
Level
Drop down list
Name of other
entity
Total 2025
Volume of
Water
Treated
NOTES:

Total
2025 Volume
of Wastewater
Received from
UWMP Service
Area
(As Reported
in Submittal
Table 6-2 R )
Water Recycled Within
UWMP Service Area
(enter data as applicable)

2020 Projection
for 2025
2025 Actual
Use
(AF) (AF)
402 289
127 91
1,002 722
142 103
1,673 1,205
Industrial use
Submittal Table 6-5 Retail: 2020 UWMP Recycled Water Use Projection Compared to 2025 Actual
Water Code Section 10633 (e)
Check the box if recycled water was not used in 2025 nor previously projected for use in 2020.

Proceed to the next table.

Add additional rows as needed
Agricultural irrigation
NOTES:

Total
DWR NOTES:

Units of measure (AF, CCF, MG) must remain consistent throughout the UWMP as reported in Submittal Table 2-3. This table identifies the unit of measure reported in Submittal Table 2-3 Additional Guidance. See Appendix M, Section M.21 for detailed guidance on this table.

Use Type
Drop Down list
10633. The plan shall provide, to the extent available, information on recycled water and its potential for use as a water source in the service area of the urban water supplier. The preparation of the plan shall be coordinated with local water, wastewater, groundwater, and planning agencies that operate within the supplier’s service area, and shall include all of the following:
(e) ...a description of the actual use of recycled water in comparison to uses previously projected pursuant to this subdivision
Landscape irrigation (exc golf courses)
Golf course irrigation

Expected Increase in Recycled
Water Use
(AF)
Financial Incentives Financial incentives applied to recycled water supplied to potential City customers 1,365
(AF) 1,365
1,365
10633. The plan shall provide, to the extent available, information on recycled water and its potential for use as a water source in the serv`ice area of the urban water supplier. The preparation of the plan shall be coordinated with local water, wastewater, groundwater, and planning agencies that operate within the supplier’s service area, and shall include all of the following:
(f) a description of actions, including financial incentives, which may be taken to encourage the use of recycled water, and the projected results of these actions in terms of acre feet of recycled water used per year.

DWR NOTES:

Units of measure (AF, CCF, MG) MUST remain consistent with units reported in Submittal Table 2-3. The units reported in Submittal Table 2-3 are used in this table's calculations.

The unit conversion to Acre Feet addresses the Water Code's requirement that this value be provided in acre-feet.

NOTES:

Submittal Table 6-6 Retail: Methods to Encourage Future Recycled Water Use Water Code Section 10633 (f)
Check the box if the Supplier does not plan to expand recycled water use in the future. Supplier will not complete the table below but will provide narrative explanation.

Provide page location of narrative in the UWMP
Add additional rows as needed
Total
Name of Action Description
Unit Conversion to AF
Planned Implementation
Year
2025-2045

(AF)
10631 (f) Include a description of all water supply projects and water supply programs that may be undertaken by the urban water supplier to meet the total projected water use, as established pursuant to subdivision (a) of Section 10635. The urban water supplier shall include a detailed description of expected future projects and programs that the urban water supplier may implement to increase the amount of the water supply available to the urban water supplier in normal and single-dry water years and for a period of drought lasting five consecutive water years. The description shall identify specific projects and include a description of the increase in water supply that is expected to be available from each project. The description shall include an estimate with regard to the implementation timeline for each project or program.

Planned for Use
in Year Type
Drop Down List
NOTES:

Submittal Table 6-7 Retail: Expected Future Water Supply Projects or Programs Water Code Section 10631 (f)
DWR NOTES:

Units of measure (AF, CCF, MG) must remain consistent throughout the UWMP as reported in Submittal Table 2-3. This table identifies the unit of measure reported in Submittal Table 2-3.

Check the box if some or all of the supplier's future water supply projects or programs are not compatible with this table and are described in a narrative format.

Check the box if there are no expected future water supply projects or programs that provide a quantifiable increase to the agency's water supply.

Procees to the next table.

Planned
Implementation
Year
Add additional rows as needed
Joint Project with other
suppliers? Expected
Increase in
Water Supply
to Supplier
(This may be a
range)
Provide page location of narrative in the UWMP
Name of Future
Projects or Programs Drop Down
List
(yes/no)
If Yes, Supplier Name
Additional Description
(as needed)
Water Type
(after treatment
if treated)
(OPTIONAL)
Drop Down list

Water Supply
Actual Volume
Total Entitlement
(OPTIONAL)
See "DWR Notes" below
(AF) (AF)
Groundwater (not desalinated) Potable 7,913
Recycled Water Non-Potable 1,205
7,913 0
1,205 0
9,118 0
10631. A plan shall be adopted in accordance with this chapter that shall do all of the following... (b) Identify and quantify, to the extent practicable, the existing and planned sources of water available to the supplier over the same five-year increments described in subdivision (a), providing supporting and related information...

Submittal Table 6-8 Retail: Water Supplies — 2025 Actual Water Code Section 10631 (b)
2025
NOTES:

DWR NOTES:

Units of measure (AF, CCF, MG) must remain consistent throughout the UWMP as reported in Submittal Table 2-3. This table identifies the unit of measure selected in Submittal Table 2-3.

Total Entitlement: e.g. Water Right, Groundwater Allocation, Contracted Amount.

Add additional rules as needed
Total
Subtotal Potable
Subtotal Non-Potable
Drop down list
May use each category multiple
times. These are the only water
supply categories that will be
recognized by the WUEdata online
submittal tool
Additional Description
(as needed)
Water Type
(after treatment if
treated)
(OPTIONAL)
Drop Down list

Water Supply
Reasonably
Available
Volume
Total
Entitlement
(OPTIONAL)
See "DWR Notes"
below
Reasonably
Available
Volume
Total
Entitlement
(OPTIONAL)
See "DWR Notes"
below
Reasonably
Available
Volume
Total
Entitlement
(OPTIONAL)
See "DWR Notes"
below
Reasonably
Available
Volume
Total
Entitlement
(OPTIONAL)
See "DWR Notes"
below
Reasonably
Available
Volume
Total
Entitlement
(OPTIONAL)
See "DWR Notes"
below
(AF) (AF) (AF) (AF) (AF) (AF) (AF) (AF) (AF) (AF)
Groundwater (not
desalinated) Potable 9,991 9,969 10,496 11,314 11,910
Recycled Water Non-Potable 1,507 1,864 2,218 2,570 2,570 9,991 0 9,969 0 10,496 0 11,314 0 11,910 0
1,507 0 1,864 0 2,218 0 2,570 0 2,570 0
11,498 0 11,833 0 12,714 0 13,884 0 14,480 0
10631. A plan shall be adopted in accordance with this chapter that shall do all of the following... (b) Identify and quantify, to the extent practicable, the existing and planned sources of water available to the supplier over the same five-year increments described in subdivision (a), providing supporting and related information, including all of the following 2050 (opt)
Add additional rows as needed
Total
NOTES:
2030 2035 2040 2045
Subtotal Non-Potable
Subtotal Potable
DWR NOTES:

Units of measure (AF, CCF, MG) must remain consistent throughout the UWMP as reported in Submittal Table 2-3.

Total Entitlement: e.g. Water Right, Groundwater Allocation, Contracted Amount.

Submittal Table 6-9 Retail: Water Supplies — Projected
Water Code Section 10631 (b)
Projected Water Supply (Report to the Extent Practicable) Drop down list
May use each category
multiple times. These are the
only water supply categories
that will be recognized by the
WUEdata online submittal
tool
Additional
Detail on
Water
Supply
Water Type
(after treatment if
treated)
(OPTIONAL)
Drop Down list

Average Year 1922-2025 100%
Single-Dry Year 1977 78%
Consecutive Dry Years 1st Year 1988 84%
Consecutive Dry Years 2nd Year 1989 87%
Consecutive Dry Years 3rd Year 1990 92%
Consecutive Dry Years 4th Year 1991 106%
Consecutive Dry Years 5th Year 1992 110%
9,712
9,993
NOTES: Volumes available are based on supplies anticipated to be available in 2030. Supply availability will vary with the demand year.
10,541
12,200
12,649
DWR NOTES: Supplier may use multiple versions of Submittal Table 7-1 R if different water sources have different base years and the supplier chooses to report the base years for each water source separately. If a Supplier uses multiple versions of Submittal Table 7-1 R, in the "Note" section of each submittal table, state that multiple versions of Submittal Table 7-1 R are being used and identify the particular water source that is being reported in each submittal table.

Units of measure (AF, CCF, MG) must remain consistent throughout the UWMP as reported in Submittal Table 2-3. This table reports the units of measure reported in Submittal Table 2-3. 11,498
8,943
Year Type
Base Year
If not using a
calendar year, type
in the last year of
the fiscal, water
year, or range of
years, for example,
water year 2024-
2025, use 2025
% of Average Supply
AF
OPTIONAL Submittal Table 7-1 Retail: Basis of Water Year Data (Reliability Assessment) Available Supplies if
Year Type Repeats
Check the box if quantification of available supplies
is not compatible with this table and is provided
elsewhere in the UWMP.

Location: [insert location from UWMP]
Volume Available
Quantification of available supplies is provided in this table as either volume only, percent only, or both.

2030 2035 2040 2045 2050 (Opt)
(AF) (AF) (AF) (AF) (AF)
Supply totals
(autofill from Submittal
Table 6-9 R)
11,498 11,833 12,714 13,884 14,480
Use totals
(autofill from Submittal
Table 4-2 R)
10,684 11,528 12,395 13,287 13,856
Surplus/(shortfall) 814 305 319 597 624
WSCP - supply
augmentation benefit 0 0 0 0 0
WSCP - use reduction
savings benefit 0 0 0 0 0
Revised Surplus/(shortfall) 814 305 319 597 624
10635. (a) Every urban water supplier shall include, as part of its urban water management plan, an assessment of the reliability of its water service to its customers during normal, dry, and multiple dry water years. This water supply and demand assessment shall compare the total water supply sources available to the water supplier with the long-term total projected water use over the next 20 years, in five-year increments, for a normal water year, a single dry water year, and a drought lasting five consecutive water years.

OPTIONAL Planned WSCP Actions
Submittal Table 7-2 Retail: Normal Year Supply and Use Comparison Water Code Section 10635 (a)
NOTES:

DWR NOTES : Units of measure (AF, CCF, MG) must remain consistent throughout the UWMP as reported in Submittal Table 2-3.

2030 2035 2040 2045 2050 (Opt)
(AF) (AF) (AF) (AF) (AF)
Supply totals 8,943 8,953 9,788 10,830 11,230
Use totals 10,684 11,528 12,395 13,287 13,856
Surplus/(shortfall) (1,741) (2,575) (2,608) (2,457) (2,626) WSCP - supply
augmentation benefit 0 0 0 0 0
WSCP - use reduction
savings benefit 1,850 2,800 3,000 2,800 2,900
Revised
Surplus/(shortfall) 109 225 392 343 274
Submittal Table 7-3 Retail: Single Dry Year Supply and Use Comparison Water Code Section 10635(a)
OPTIONAL Planned WSCP Actions
10635. (a) Every urban water supplier shall include, as part of its urban water management plan, an assessment of the reliability of its water service to its customers during normal, dry, and multiple dry water years. This water supply and demand assessment shall compare the total water supply sources available to the water supplier with the long-term total projected water use over the next 20 years, in five-year increments, for a normal water year, a single dry water year, and a drought lasting five consecutive water years.

DWR NOTES : Units of measure (AF, CCF, MG) must remain consistent throughout the UWMP as reported in Submittal Table 2-3.

NOTES

2030 2035 2040 2045 2050 (Opt)
(AF) (AF) (AF) (AF) (AF)
Supply totals 9,712 10,179 11,139 11,906 12,401
Use totals 10,685 11,527 12,395 13,290 13,858
Surplus/(shortfall) (973) (1,348) (1,256) (1,384) (1,457) WSCP - supply augmentation benefit 0 0 0 0 0
WSCP - use reduction savings benefit 1,400 1,700 1,600 1,600 1,800 Revised Surplus/(shortfall) 427 352 344 216 343
Supply totals 9,993 11,137 12,019 12,949 13,502
Use totals 10,685 11,527 12,395 13,290 13,858
Surplus/(shortfall) (692) (391) (376) (341) (356)
WSCP - supply augmentation benefit 0 0 0 0 0
WSCP - use reduction savings benefit 1,000 700 600 600 700 Revised Surplus/(shortfall) 308 309 224 259 344
Supply totals 10,541 12,250 13,163 12,904 13,453
Use totals 10,685 11,527 12,395 13,290 13,858
Surplus/(shortfall) (144) 723 768 (386) (405)
WSCP - supply augmentation benefit 0 0 0 0 0
WSCP - use reduction savings benefit 500 0 0 700 750
Revised Surplus/(shortfall) 356 723 768 314 345
Supply totals 12,200 11,670 12,543 13,463 14,042
Use totals 10,685 11,527 12,395 13,290 13,858
Surplus/(shortfall) 1,515 142 148 173 184
WSCP - supply augmentation benefit 0 0 0 0 0
WSCP - use reduction savings benefit 0 0 0 0 0
Revised Surplus/(shortfall) 1,515 142 148 173 184
Supply totals 12,649 13,187 14,736 14,729 15,374
Use totals 10,685 11,527 12,395 13,290 13,858
Surplus/(shortfall) 1,964 1,659 2,341 1,439 1,516
WSCP - supply augmentation benefit 0 0 0 0 0
WSCP - use reduction savings benefit 0 0 0 0 0
Revised Surplus/(shortfall) 1,964 1,659 2,341 1,439 1,516 Second year OPTIONAL WSCP Actions
Third year
Fifth year
DWR NOTES: Units of measure (AF, CCF, MG) must remain consistent throughout the UWMP as reported in Submittal Table 2-3.

OPTIONAL Planned WSCP Actions
OPTIONAL Planned WSCP Actions
Fourth year OPTIONAL Planned WSCP Actions
NOTES:
10635. (a) Every urban water supplier shall include, as part of its urban water management plan, an assessment of the reliability of its water service to its customers during normal, dry, and multiple dry water years. This water supply and demand assessment shall compare the total water supply sources available to the water supplier with the long-term total projected water use over the next 20 years, in five-year increments, for a normal water year, a single dry water year, and a drought lasting five consecutive water years.

First year
Submittal Table 7-4 Retail: Multiple Dry Years Supply and Use Comparison Water Code Section 10635(a)
OPTIONAL Planned WSCP Actions

Total
Total Water Use (AF) 10,144
Total Supplies (AF) 7,950
(2,194)
WSCP - supply augmentation benefit (AF) 0
WSCP - use reduction savings benefit (AF) 2,500
306
Total
Total Water Use (AF) 10,279
Total Supplies (AF) 8,204
(2,075)
WSCP - supply augmentation benefit (AF) 0
WSCP - use reduction savings benefit (AF) 2,300
225
Total
Total Water Use (AF) 10,414
Total Supplies (AF) 8,641
(1,773)
WSCP - supply augmentation benefit (AF) 0
WSCP - use reduction savings benefit (AF) 2,000
227
Total
Total Water Use (AF) 10,549
Total Supplies (AF) 9,843
(706)
WSCP - supply augmentation benefit (AF) 0
WSCP - use reduction savings benefit (AF) 950
244
Total
Total Water Use (AF) 10,684
Total Supplies (AF) 10,212
(472)
WSCP - supply augmentation benefit (AF) 0
WSCP - use reduction savings benefit (AF) 720
248
10635 (b) Every urban water supplier shall include, as
part of its urban water management plan, a drought
risk assessment for its water service... The drought
risk assessment shall include each of the following:
(1) A description of the data, methodology, and basis for one or more supply shortage conditions that are
necessary to conduct a drought risk assessment for a
drought period that lasts five consecutive water years, starting from the year following when the assessment is conducted.
(2) A determination of the reliability of each source of supply under a variety of water shortage conditions. This may include a determination that a particular source of water supply is fully reliable under most, if not all,
conditions.
(3) A comparison of the total water supply sources
available to the water supplier with the total projected water use for the drought period.
(4) Considerations of the historical drought hydrology, ... 2030
Surplus/Shortfall w/o WSCP Action
Surplus/Shortfall w/o WSCP Action
Surplus/Shortfall w/o WSCP Action
Revised Surplus/(shortfall)
Revised Surplus/(shortfall)
Surplus/Shortfall w/o WSCP Action
NOTES:

DWR NOTES: Units of measure (AF, CCF, MG) must remain consistent throughout the UWMP as reported in Submittal Table 2-3.

Submittal Table 7-5 Retail: Five-Year Drought Risk Assessment Water Code Section 10635(b)(3)
OPTIONAL Planned WSCP Actions (use reduction and supply augmentation) OPTIONAL Planned WSCP Actions (use reduction and supply augmentation) OPTIONAL Planned WSCP Actions (use reduction and supply augmentation) OPTIONAL Planned WSCP Actions (use reduction and supply augmentation) OPTIONAL Planned WSCP Actions (use reduction and supply augmentation) Revised Surplus/(shortfall)
Surplus/Shortfall w/o WSCP Action
Revised Surplus/(shortfall)
2026
Revised Surplus/(shortfall)
2027
2028
2029

Standard
Shortage
Levels
Percent
Shortage Range
Suppliers
Shortage
Levels
Percent
Shortage
Range
1 Up to 10% 0 0-10%
2 Up to 20% 1 11-20%
3 Up to 30% 2 21-35%
4 Up to 40% 2,3
21-35%
36-50%
5 Up to 50% 3 36-50%
6 >50% N/A N/A
(B) An urban water supplier with an existing water shortage contingency plan that uses different water shortage levels may comply with th erequirement in subparagaph (A) by
developing and including a corss-reference relating its existing categores to the six standard water shortage levels.

Submittal Table 8-1: Cross-reference for Standard vs
Supplier Shortage Levels
Water Code Section 10632(a)(3)(B)
Check the box if the Supplier uses the
Standard six levels of water shortage.

Proceed to the next table.

NOTES:
10632 (a) Every urban water supplier shall prepare and
adopt a water shortage contingency plan as part of its urban water management plan that consists of each of the
following elements:
(3)(A)Six standard water shortage levels corresponding to progressive ranges of up to 10, 20, 30, 40, and 50 percent shortages and greater than 50 percent shortage. Urban
water suppliers shall define these shortage levels based on the suppliers’ water supply conditions, including
percentage
reductions in water supply, changes in groundwater levels, changes in surface elevation or level of subsidence, or other changes in hydrological or other local conditions indicative of the water supply available for use. Shortage levels shall also apply to catastrophic interruption of water supplies, including, but not limited to, a regional power outage, an earthquake, and other potential emergency events. Page 758 of 896 No
Shortage Gap
Reduction Value
(May be a range)
(AF)
(E) For each action, an estimate of the extent to which the gap between supplies and demand will be reduced by implementation of the action.

Submittal Table 8-2 Retail: Supply Augmentation and Other Actions Water Code Section 10632(a)(4)(A),(C) and (E)
Add additional rows as needed
NOTES:

Is the Supplier completing this table using the standard six levels? (yes/no) 10632(a)(4) Shortage response actions that align with the defined shortage levels and include, at a minimum, all of the following:
(A) Locally appropriate supply augmentation actions.
(C) Locally appropriate operational changes.

How much is this going to reduce the
shortage gap?
DWR NOTES: Units of measure (AF, CCF, MG) must remain consistent throughout the UWMP as reported in Submittal Table 2-3.

Shortage
Level
Supply Augmentation Methods and
Other Actions by Water Supplier
Drop down list
These are the only categories that will
be accepted by the WUEdata online
submittal tool
Volume or
Percentage
Drop down
Additional Explanation or Reference
(OPTIONAL)

No
Shortage Gap
Reduction Value
(May be a range)
(AF)
0 CII - Lodging establishment must offer opt
out of linen service Percentage 0-10%
Encourage hotels, motels and other commercial
lodging establishments to provide customers
the option of not having towels and linen
laundered daily. Commercial lodging
establishments are encouraged to prominently
display notice of this option in each bathroom
using clear and easily understood language.

No
0 CII - Restaurants may only serve water
upon request
Percentage 0-10%
Encourage eating or drinking establishments,
including but not limited to a restaurant, hotel,
cafe, cafeteria, bar, or other public place where
food or drinks are sold, served, or offered for
sale to provide drinking water to any person
only when expressly requested.

No
0 CII - Commercial kitchens required to use
pre-rinse spray valves Percentage 0-10%
Encourage food preparation establishments,
such as restaurants or cafes to use water
conserving dish wash spray valves.

No
0 Pools and Spas - Require covers for pools
and spas Percentage 0-10%
Recommend that all existing pools use a pool
cover or solar blanket to reduce water loss due
to evaporation.

No
0 Other Percentage 0-10%
When directed by the Public Works Director,
recycled water fill stations shall be made
available for construction water for purposes,
including dust control. Recycled water fill
stations may be removed upon completion of
construction activities in the area.

No
0 Other Percentage 0-10%
Discourage installation of non-recirculating
water systems in new commercial conveyor car
wash and new commercial laundry systems.

No
Volume or
Percentage
Drop down
Shortage
Level
Demand Reduction Actions
Drop down list
These are the only categories that will be
accepted by the WUEdata online submittal tool.

Select those that apply.

Additional Explanation or Reference
(OPTIONAL)
Penalty, Charge,
or Other
Enforcement?
For Retail Suppliers
Only
Drop Down List
Is the Supplier completing this table using the standard six levels? (yes/no) Submittal Table 8-3 Retail: Demand Reduction Actions
Water Code Section 10632(a)(4)(B) and (E)
Add additional rows as needed
How much is this going to reduce the
shortage gap?

0 Landscape - Limit landscape irrigation to
specific days Percentage 0-10%
Limit watering or irrigating of lawn, landscape or
other vegetated area with potable waterto
three days per week from April through
October. The watering days are designated
depending upon house address (odd house and
no house address – Monday, Wednesday, and
Friday, even house address – Tuesday, Thursday,
and Saturday). This provision does not apply to
landscape irrigation zones that exclusively use
very low flow drip type irrigation systems when
no emitter produces more than two (2) gallons
of water per hour. This provision also does not
apply to watering or irrigating by use of a handheld bucket or similar container, a hand-held hose equipped with a positive self-closing water
shut-off nozzle or device, or for very short
periods of time for the express purpose of
adjusting or repairing an irrigation system.

Yes
0 Pools and Spas - Require covers for pools
and spas Percentage 0-10%
Require all new pools to have a pool cover or
solar blanket to reduce water loss through
evaporation.

Yes
0 Other - Prohibit use of potable water for
washing hard surfaces Percentage 0-10%
Prohibit washing down hard or paved surfaces,
including but not limited to buildings,
structures, sidewalks, walkways, driveways,
parking areas, tennis courts, patios or alleys.

Yes
0 Other - Customers must repair leaks,
breaks, and malfunctions in a timely
manner
Percentage 0-10%
Require leaks, breaks, or other malfunctions in
the water user’s plumbing or distribution
system to be repaired within seventy-two (72)
hours of notification by the city unless other
arrangements are made with the city.

Yes
0 Landscape - Restrict or prohibit runoff
from landscape irrigation Percentage 0-10%
Prohibit the application of water to outdoor
landscapes in a manner that causes runoff such
that water flows onto adjacent property,
non irrigated areas, private and public
walkways, driveway, street, alley, gutter, ditch,
parking lots, or structures.

Yes Page 761 of 896
0 Water Features - Restrict water use for
decorative water features, such as
fountains
Percentage 0-10%
Prohibit the operation a water fountain or other
decorative water feature that does not use
recirculated water
Yes
0 CII - Restaurants may only serve water
upon request
Percentage 0-10%
Prohibit eating or drinking establishments,
including but not limited to a restaurant, hotel,
cafe, cafeteria, bar, or other public place where
food or drinks are sold, served, or offered for
sale, from providing drinking water to any
person unless expressly requested.

Yes
0 CII - Lodging establishment must offer opt
out of linen service Percentage 0-10%
Require hotels, motels and other commercial
lodging establishments to provide customers
the option of not having towels and linen
laundered daily. Commercial lodging
establishments must prominently display notice
of this option in each bathroom using clear and
easily understood language.

Yes
0 CII - Commercial kitchens required to use
pre-rinse spray valves Percentage 0-10%
Prohibit food preparation establishments, such
as restaurants or cafes from using non-water
conserving dish wash spray valves.

Yes
0 Other water feature or swimming pool
restriction
Percentage 0-10%
Refilling of existing private pools is prohibited,
except to maintain water levels, unless the pool
is in eminent danger of failure
Yes
1 Landscape - Limit landscape irrigation to
specific days Percentage 11-20%
Limit watering or irrigating of lawn, landscape
orother vegetated area with potable water to
twp days per week from April through October.

The watering days are designated depending
upon house address (odd house and no house
address – Wednesday and Sunday, even house
address – Tuesday and Saturday). This provision
does not apply to landscape irrigation zones that
exclusively use very low flow drip type irrigation
systems when no emitter produces more than
two (2) gallons of water per hour. This provision
also does not apply to watering or irrigating by
use of a hand-held bucket or similar container, a
hand-held hose equipped with a positive selfclosing water shut-off nozzle or device, or for very short periods of time for the express
purpose of adjusting or repairing an irrigation
system.

Yes

2 Water Features - Restrict water use for
decorative water features, such as
fountains
Percentage 21-35%
Prohibit filling or re-filling ornamental lakes or
ponds with potable water, except to the extent
needed to sustain aquatic life, provided that
such animals are of significant value and have
been actively managed within the water feature
prior to declaration of a supply shortage level
under this section.

Yes
2 Other - Customers must repair leaks,
breaks, and malfunctions in a timely
manner
Percentage 21-35%
Require all leaks, breaks, or other malfunctions
in the water user’s plumbing or distribution
system to be repaired within forty-eight (48)
hours of notification by the city unless other
arrangements are made with the city
Yes
2 Landscape - Other landscape restriction or
prohibition Percentage 21-35%
Prohibit the applications of potable water to
outdoor landscapes during and within 48 hours
following measurable rainfall.

Yes
2 Other Percentage 21-35%
City Council may consider adopting rate
structures and other pricing mechanisms to
maximize water conservation.

Yes
3 Landscape - Prohibit all landscape
irrigation
Percentage 36-50%
Prohibit watering or irrigating of lawn,
landscape or other vegetated area with potable
water. This restriction does not apply to the
following categories of use, unless the city has
determined that recycled water is available and
may be applied to the use:
(a) Maintenance of vegetation, including trees
and shrubs, that are watered using a hand-held
bucket or similar container, hand-held hose
equipped with a positive self–closing water shutoff nozzle or device; (b) Maintenance of existing landscape
necessary for fire protection;
(c) Maintenance of existing landscape forsoil
erosion control;
(d) Maintenance of plant materials identified to
be rare or essential to the well-being of
protected species;
Yes

3 Landscape - Prohibit all landscape
irrigation
Percentage 36-50%
(e) Maintenance of landscape within active
public parks and playing fields, day care centers,
golf course greens, and school grounds,
provided that such irrigation does not exceed
two (2) days per week for no more than fifteen
(15) minutes watering per designated water day
per station and is prohibited between the hours
of 9:00 a.m. and 5:00 p.m. Pacific
Standard/Daylight Savings Time.
(f) Actively irrigated environmental mitigation
projects.

Yes
3 Other - Customers must repair leaks,
breaks, and malfunctions in a timely
manner
Percentage 36-50%
Require all leaks, breaks, or other malfunctions
in the water user’s plumbing or distribution
system to be repaired within twenty four (24)
hours of notification by the city unless other
arrangements are made with the city.

Yes
3 Other Percentage 36-50%
The city may limit the issuance of new potable
water services, temporary meters and/or
statements of immediate ability to serve or
provide potable water service (such as, can and
will-serve letters, certificates, or letters of
availability), except under the following
circumstances:
(a) A valid, unexpired building permit has been
issued for the project; or
(b) The project is necessary to protect the public
health, safety, and welfare; or
(c) The applicant provides substantial evidence
of an enforceable commitment that water
demands for the project will be offset prior to
the provision of a new water meter(s) to the
satisfaction of the city.
(d) This provision does not preclude the
resetting or turn-on of meters to provide
continuation of water service or the restoration
of service that has been interrupted for a period
of one year or less.

Yes
(E) For each action, an estimate of the extent to which the gap between supplies and demand will be reduced by implementation of the action. (B) Locally appropriate demand reduction actions to adequately respond to shortages.

NOTES:

DWR NOTES: Units of measure (AF, CCF, MG) must remain consistent throughout the UWMP as reported in Submittal Table 2-3. 10632(a)(4) Shortage response actions that align with the defined shortage levels and include, at a minimum, all of the following: Page 764 of 896 City Name 60 Day Notice
Drop Down (yes/no)
Notice of Public
Hearing
Drop Down (yes/no)
City of Morgan Hill Yes Yes
Valley Water Yes Yes
County Name
Drop Down List
60 Day Notice
Drop Down (yes/no)
Notice of Public
Hearing
Drop Down (yes/no)
Santa Clara County Yes Yes
CWC 10642 The water supplier is to provide the time and place of the hearing to any city or county within which the supplier provides water.

CWC 10621 (b)Notify at least 60 days prior to the public hearing any city or county within which the supplier provides water that the urban water supplier will be reviewing the plan and considering amendments or changes to the plan.

Submittal Table 10-1 Retail: Notification to Cities and Counties
Water Code Section 10621(b) and 10642
Add additional rows as needed
Add additional rows as needed
NOTES:

May 2026 City of Gilroy
2025 Urban Water Management Plan
202City of Gilroy 5

APPENDIX C
Urban Water Management Plan
Public Notices and Adoption

City of Gilroy

STAFF REPORT
Agenda Item Title: Introduction of an Ordinance of the City Council of the City of Gilroy Amending Gilroy City Code Chapter 5D,
Vacant Commercial Space in the Downtown Historic and
Downtown Expansion Districts
Meeting Date: June 15, 2026
From: Matt Morley, City Administrator
Department: Community Development
Submitted by: Sharon Goei, Community Development Director Prepared by: Bryce Atkins, Deputy Director of Community Development STRATEGIC PLAN GOALS: Promote Economic Development Activities

RECOMMENDATION
Council:

1. Motion to read the ordinance by title only and waive further reading.

2. Introduce an Ordinance of the City Council of the City of Gilroy amending Gilroy City Code Chapter 5D, Vacant Commercial Space in the Downtown Historic and Downtown Expansion Districts.

BACKGROUND
In 2023, the City Council established the Downtown Committee to focus on economic enhancement and revitalization of Downtown Gilroy. From its inception, the Committee identified plywood coverings on vacant storefronts and long-term vacant buildings as major visual and economic deterrents. These elements harm the downtown's image, economic activity, and community safety.

To address these challenges, the Downtown Committee formed two specialized subcommittees:

• Plywood Removal Subcommittee (PRS): Tasked with developing strategies and regulations to minimize or eliminate unsightly plywood coverings on vacant storefronts, while promoting aesthetically pleasing and transparent alternatives. • Vacancy Ordinance Subcommittee (VOS): Focused on addressing prolonged vacancies in downtown buildings through new regulations and incentives to promote occupancy.

In 2024, the PRS and VOS presented their joint report and recommendations to the City Council, who directed staff to add the two items to the Community Development Department’s work plan. In subsequent updates to the City Council, staff noted that these items fell under the discretionary category – City initiatives for the public good that are typically Council- or community-driven but not mandated or core services. Staff also estimated completion by June 2025 (FY 2025 Q4), balancing priorities, daily operations, and mandated and core items against limited resources.

In spring 2025, during budget and workplan development, a long-term Code Enforcement Officer retired – just as the GilroyConnect (SeeClickFix) platform launched – requiring staff to defer these items to FY 2026.

On November 3, 2025, staff returned to Council to provide an update on the initiative and to receive Council direction to revive and strengthen Chapter 5D. The Council provided direction to pursue updating Chapter 5D, consider the Downtown Committee's recommendations, seek input from property and business owners, and return with a discussion of a possible vacancy tax.

At the May 18, 2026 regular meeting of the City Council, staff presented a report on the property and business owner input received and on draft code language incorporating the Downtown Committee's recommendations, with a few modifications. The Council provided direction to accept the modifications, proceed with the ordinance process, and not pursue the vacancy tax at this time.

ANALYSIS
Based on the direction received from Council, staff has prepared the attached ordinance for introduction, incorporating the Downtown Committee's recommendations as modified and directed by the City Council. In summary, it incorporates the following changes to Chapter 5D of the Gilroy City Code:

1. Removes the sunset section of Chapter 5D. Upon the effective date of the proposed ordinance, Chapter 5D will become active again as a result of this removal. There will be no sunset provision going forward, allowing for active enforcement until the Council approves a change to this chapter.

2. Includes the registration fee. The initial and annual renewal registration fee language is already included in Chapter 5D and will become active again once the sunset section is removed. The registration fee has been increased to $750

for initial registration, with an annual renewal fee of $1,500. The 10% per month interest provision for late payments is proposed to remain.

3. Amends the chapter language regarding the collection of delinquent fees, fines, interest, and penalties to allow for all legal remedies and specifically identifies the ability to assess the amounts owed to the City as a special assessment to the property tax bill of the property where the violations occurred.

4. Adds the requirement of a building report card that would be placed on the property with required information, including name, telephone number, address, date the building became vacant, and any identified code violations for the building.

5. Adds a section focused on the use of plywood and the regulations surrounding it.

These provisions include the following:
a. Prohibited materials
b. Appropriate decorative artwork required
c. 90-day and one-year limitations for decoration and removal, respectively, as well as fine amounts proposed

6. Identifies that delinquent fees, fines, interest, and penalties may be collected via special assessments on annual property tax rolls or via liens on the property when sold.

The ordinance in Attachment 1, for introduction and eventual adoption, repeals the entirety of Chapter 5D and replaces it with the revised Chapter 5D due to the sunset language of the original Chapter 5D. A document containing the redline edits showing the changes from the current version of Chapter 5D is also attached for review as Attachment 2.

ALTERNATIVES
Council may choose to amend or reject the proposed ordinance. Amending the ordinance would require holding a new public hearing, incurring a minor additional cost for a second advertisement, and requiring staff time to make the modifications.

FISCAL IMPACT/FUNDING SOURCE
Staff time will be used to implement the identified programs and any additional regulations that Council may direct. Revenue will be generated from program fees to help offset the impact on staff time and associated costs of managing and enforcing the program. The amounts will vary based on vacancy rates and compliance levels with the proposed code provisions.

An estimate, assuming 25 vacancies exist at the effective date, would be $18,750 in initial registration fee revenue. An estimate of expenditures at this time is unavailable due to significant variability in the factors that affect program costs.

PUBLIC OUTREACH
This item has been discussed as part of the City Council’s strategic planning process, at the November 3, 2025, and May 18, 2026, regular meetings, and was included on the publicly posted agenda for this meeting. Additionally, there have been two input meetings with business and property owners, and a survey was advertised by mail to all business and property owners in the City’s downtown. For a description of the input received, please reference the staff report entitled “Consideration of Downtown Plywood and Vacancy Regulations” in the May 18, 2026, agenda packet.

If adopted, staff will conduct outreach to property and business owners regarding the implementation of the revised City Code chapter.

NEXT STEPS
If introduced, the ordinance will return to the City Council at the July 27, 2026, regular meeting on the consent calendar for adoption. Staff will then develop and distribute outreach materials to affected property and business owners.

Attachments:

1. Draft Chapter 5D Ordinance

2. Gilroy City Code Chapter 5D with Edits

ORDINANCE NO. 2026-XX

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GILROY
REPEALING AND REPLACING GILROY CITY CODE CHAPTER 5D,

VACANT COMMERCIAL SPACE IN THE DOWNTOWN HISTORIC

AND DOWNTOWN EXPANSION DISTRICTS
WHEREAS, pursuant to California Constitution Article XI, Section 7, and the City Charter, Section 600, the City Council has the authority to enact ordinances which promote the public health, safety, and general welfare of its residents; and WHEREAS, the City Council adopted Ordinance No. 2012-02 on February 6, 2012, creating Chapter 5D entitled “Vacant Commercial Space in the Downtown Historic and Downtown Expansion Districts”, for the purpose of reducing the adverse effects of vacant commercial buildings in the Downtown Historic and Expansion Districts, by requiring ground floor windows to be maintained with interesting and/or artistic visual displays, registration of vacant commercial spaces, and monitoring for substandard and/or unkempt commercial buildings and the appearance of long-term vacancies in commercial buildings; and City Code, Chapter 5D, pertaining to downtown vacancies; and
WHEREAS, Chapter 5D contained a sunsetting provision (Section 5D.13) whereby the entire chapter was to terminate and be of no further force and effect upon the termination date of the Seismic Safety Ordinance (Ordinance No. 2011-07); and WHEREAS, the Seismic Safety Ordinance’s final extension period, effectuated by Resolution No. 2015-56, ended on December 16, 2016, at which time Chapter 5D’s sunset provision took effect, and the requirements and enforcement provisions to address vacant commercial spaces in the downtown districts expired; and WHEREAS, In 2023, the City Council of the City of Gilroy created the Downtown Ad Hoc Committee to review identified issues to be addressed in the downtown districts.

Two of these issues were vacant commercial buildings and the use of plywood in the downtown districts; and
WHEREAS, the Downtown Ad Hoc Committee issued recommendations to the Gilroy City Council to re-activate Chapter 5D of the Gilroy City Code and modifications to the same to enhance its effectiveness at addressing the above-mentioned issues; and
WHEREAS, commercial buildings that remain vacant for extended periods may adversely affect surrounding businesses, detract from the appearance of a vibrant downtown, and contribute to blighted conditions that negatively impact the community; and
WHEREAS, the City Council desires to strengthen the City’s vacant commercial space regulations by requiring a building report card for registered vacant commercial spaces, prohibiting unfinished window and facade coverings, regulating temporary plywood installations, updating registration fees and fines, expanding collection remedies, and removing the sunset provision; and

WHEREAS, the City Council finds that these amendments will further the public health, safety, and welfare by promoting the maintenance, appearance, and accountability of vacant commercial spaces in the downtown area.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GILROY DOES HEREBY ORDAIN AS FOLLOWS:

SECTION I
Chapter 5D of the Gilroy City Code is hereby repealed and replaced to read as follows:

CHAPTER 5D

VACANT COMMERCIAL SPACE IN THE DOWNTOWN HISTORIC AND

DOWNTOWN EXPANSION DISTRICTS
5D.1 Purpose.

Commercial buildings that are vacant for an extended period of time may adversely affect surrounding businesses, detract from the appearance of a vibrant downtown, and may contribute to blighted conditions that negatively impact the entire community. The purpose of this chapter is to minimize these adverse effects by preserving and improving the appearance of downtown Gilroy by requiring ground-floor windows of vacant commercial buildings in the Downtown Historic and Downtown Expansion Districts to be aesthetically pleasing when viewed from the street and sidewalk. 5D.2 Scope.

The provisions of this chapter shall apply to all structures in the Downtown Historic District and the Downtown Expansion District, unless otherwise stated, including, but not limited to, properties that have been the subject of a foreclosure sale wherein title has been transferred to the beneficiary of a deed of trust involved in the foreclosure, and to any properties transferred under a deed in lieu of foreclosure or sale. All responsible persons shall comply with the requirements of this chapter. 5D.3 Administration.

This chapter will be administered by, and may be enforced by, the community development director or his or her designee, who may adopt administrative rules and regulations consistent with its terms.
5D.4 Definitions.

For the purposes of this chapter:
“City” means the City of Gilroy.
“Commercial space” means any portion of a structure in the Downtown Historic District or Downtown Expansion District that is not intended for residential use. “Downtown Historic District” and “Downtown Expansion District” mean the respective zoning districts of the city, as defined in the Gilroy Zoning Ordinance.

“Occupied”. A commercial space is deemed to be “occupied” when a permitted, nonresidential tenant or user resides in or is physically located in, and is lawfully and actively operating in, the space for at least thirty (30) days and meets the proof of physical occupancy criteria as set forth in Section 5D.6(g). “Responsible person” means any person, firm, association, corporation, business entity, trustee, or receiver, or agent thereof, which owns, leases, rents or has lawful possession of a structure in the Downtown Historic District or in the Downtown Expansion District.
“Vacant commercial space” means any portion of a street-level commercial space that is not occupied and has not been occupied for a period of ninety (90) consecutive days at the time the ordinance codified in this chapter becomes effective or any time thereafter.
5D.5 General minimum maintenance requirements.

Responsible persons shall at all times maintain all structures they own, lease, rent or lawfully possess in the Downtown Historic District and Downtown Expansion District pursuant to the Gilroy City Code, the Gilroy Zoning Ordinance and the current construction codes contained in Chapter 6, as amended by the city council. 5D.6 Vacant commercial space registration.
(a) At least one (1) responsible person for each vacant commercial space must register that space with the city in accordance with this chapter within ten (10) consecutive days of the date the space becomes vacant commercial space.
(b) In order to register a vacant commercial space, as required by this chapter, a responsible person must submit to the community development director, or his or her designee, all of the following information in writing:
(1) The street address and assessor’s parcel number of the vacant commercial space;
(2) The name, address, and daytime and evening telephone numbers of each responsible person for the vacant commercial space, including any owner or tenant; (3) The period of time the vacant commercial space is estimated to remain vacant; and
(4) Any other information requested by the community development director or his or her designee for the administration of this chapter. (c) The registration of a vacant commercial space subject to this chapter must be renewed annually no later than January 1st of each year that the space was vacant. (d) The registration of a vacant commercial space subject to this chapter must be renewed within ninety (90) consecutive days of its change of ownership.

(e) Initial and renewal registrations must be submitted on forms to be provided by the community development director, which forms shall be filled out completely and signed by at least one (1) responsible person.
(f) Building Report Card. Upon completion of registration, the department shall produce a sign no less than eighteen inches by twenty-four inches (18" x 24") posted on the front of the exterior building or structure so it is legible from the public-right-of-way with the following information: (i) name, address, and twenty-four-hour contact telephone number of the owner, responsible party, or property management company; and (ii) the statement "THIS PROPERTY MANAGED BY" with the appropriate name inserted and "TO REPORT PROBLEMS OR CONCERNS CALL" with the twenty-four hour telephone number listed. The sign shall also identify the date the structure became vacant and identify any building or city code compliance violations requiring correction. (g) Upon satisfactory proof to the community development director, or his or her designee, that a vacant commercial space is and has been occupied for at least thirty (30) consecutive days, the vacant commercial space will be unregistered. Proof of physical occupation may include, but is not limited to, proof of the presence of usable furniture, office equipment, retail inventory or other equipment and inventory in the street-level commercial space that is consistent with the structure’s intended use, and the regular presence of persons using the street-level commercial space for its intended use. Proof of physical occupancy must also include documentation of occupancy, which may include, but is not limited to, an executed lease agreement, or valid state and local business licenses indicating the subject space is the official business address of the person or business claiming occupancy.
(h) The determination of the number of vacant commercial spaces a structure contains for purposes of registration will be made by the community development director or his or her designee. The number of vacant commercial spaces will be determined by the physical areas that have separate entrances to the commercial space from a public entry or a joint tenant corridor and/or entry to the commercial space. (i) The provisions of this chapter shall not apply to a vacant commercial space if the following apply:
(1) The window display area space is the subject of a current, valid building permit for repair or rehabilitation and the responsible person provides proof, such as receipts, invoices or executed contracts, that the repair or rehabilitation is proceeding without significant delay.
5D.7 Window displays for commercial spaces not occupied for (90) ninety days.

Whether or not a vacant commercial space is registered pursuant to this chapter, if any commercial space in the Downtown Historic District or Expansion District has been unoccupied for more than ninety (90) consecutive days at the time this chapter becomes effective or any time thereafter, then responsible persons shall immediately construct and/or install at least one (1) of the following types of displays on or inside all ground-floor windows that face sidewalks, streets, alleys, or public open spaces:

(a) Faux window dressings containing goods or services with the visual characteristics of a vibrant business using background panels or other methods to screen views of the unoccupied space from the street, sidewalk and public areas; (b) Works of art or other displays of cultural, historical, or educational value, using background panels or other methods to screen views of the unoccupied space from the street, sidewalk and public areas;
(c) Window paintings featuring visually appealing scenes depicting or suggesting business or cultural activities;
(d) Drywall, sheeting, plastic, butcher paper, plain paper or other raw coverings are strictly prohibited. All windows, openings, doors, facades, awnings, must be finished in appearance or in compliance with at least one of the above methods; or (e) Other measures consistent with these examples, if approved in writing by the community development director or his or her designee, in his/her discretion. (f) Any decorative artwork and mural designs proposed for use must be appropriate for all ages in the community. The community development department will provide examples of appropriate designs to interested responsible persons. 5D.8 Regulations on the use of plywood.
(a) Plywood may be utilized if the building façade needs to be removed, or as a temporary measure to restrict unpermitted entry when doors, windows, or other potential entry points are exposed and need to be secured. (b) Plywood must be decorated in compliance with the requirements provided in Section 5D.7. Such decoration shall be completed within ninety (90) days of installation. (c) Plywood must be removed one (1) year after installation. (1) No additional permits will be approved until any active permit is completed, the temporary front is removed, and all applicable fines are paid. (2) Properties may request a one-year extension if there are extenuating circumstances. The community development director or their designee may approve such extensions in writing at their discretion. 5D.9 Fees and fines.
(a) Commercial space registration. At least one (1) responsible person shall pay an annual registration fee for each registered vacant commercial space that is separately owned or leased. In the case of a newly constructed or remodeled building in which individual spaces are not separately owned or leased, a single initial and annual registration fee shall be paid to cover all commercial spaces within the building. At least one responsible person must pay an initial registration fee to the city at the time the space is registered, and must pay an annual renewal registration fee by January 1st each following year that the space or spaces remain vacant. Registration fees will not

be prorated. These registration and fee requirements are applicable to any vacant commercial space in the Downtown Historic District or Expansion District that at the time the ordinance codified in this chapter becomes effective or any time thereafter. The fees will be as follows:
(1) Initial registration: seven hundred fifty dollars ($750.00). (2) Annual renewal registration: one thousand five hundred dollars ($1,500.00). (3) The fees are intended to defray the costs of administering this chapter and may be changed by the city council to meet these costs.
(b) Failure to register, or renew the registration of, vacant commercial space in violation of Section 5D.6 shall incur a fine of one hundred fifty dollars ($150.00) per week, or portion thereof, until compliance with the registration requirements is complete. (c) Plywood, or any portion thereof, that remains undecorated after ninety (90) days in violation of Section 5D.8 (b) shall incur a fine of five hundred dollars ($500.00) per month or portion thereof.
(d) Plywood that remains beyond one (1) year after installation in violation of Section 5D.8 (c) shall incur a fine of two hundred fifty dollars ($250.00) per month, or portion thereof, until all plywood is removed.
(e) Any other violation of this Chapter shall incur a fine as detailed in Chapter 1.7 of the Gilroy City Code.
5D.10 Delinquent fees, fines, interest and penalties—collection. (a) If a responsible person fails to pay the registration fee by the due date, the city is authorized to take action to collect the registration fee including a ten percent (10%) per month late payment penalty and its costs of collection, including attorneys’ fees, by use of any and all available legal means; in which case such penalties and costs incurred by the city as a result of the collection process will be assessed to the responsible person or responsible persons in addition to the registration fee. (b) The city may pursue any and all legal and equitable remedies for the collection of fees and fines, including interest and penalties.
(c) Delinquent fees, fines, interest, and penalties may be recorded as a lien or special assessment against the property on which the code violation occurred. Prior to recording a lien or special assessment, the city shall prepare a cost report itemizing the amount owed by the responsible person. The city shall comply with the State Board of Equalization or any other state or county law pertaining to the recording of any delinquent fines, interest, and penalties as a lien on the property, or as a special assessment.
(d) The administrative citation process described in this chapter does not preclude the city from recovering any code violation abatement cost incurred by the city in performing its code enforcement efforts.

5D.11 Duty to amend registration statement.

Responsible persons for any registered vacant commercial space shall advise the community development director or his or her designee, in writing, of any changes to the information on the registration form within thirty (30) consecutive days of the occurrence of the change.
5D.12 Inspections.

The community development director or his or her designee, or code enforcement officers, or both are authorized to conduct inspections to enforce the provisions of this chapter.
5D.13 Enforcement.
(a) The city may enforce the provisions of this chapter by any of the provisions of the Gilroy City Code, which are in addition to any other remedies provided for by law. Said remedies shall be cumulative and not exclusive.
(b) It shall be unlawful for any responsible person to violate or fail to comply with any provisions of this chapter. Each responsible person commits a separate offense for each and every day they commit, continue or permit a violation of any provision of this chapter.
(c) Any responsible person violating any of the provisions of this chapter shall be deemed guilty of an infraction, and upon conviction, shall be punished as set forth in Government Code Section 36900, as it now exists or may hereafter be amended. (d) All responsible persons are jointly and severally responsible with respect to compliance with all provisions of this chapter and for any payments required to be made to the city under this chapter, including but not limited to registration fees, late penalties, and costs of collection and enforcement, including attorneys’ fees and costs. If the commercial space is subject to a lease, the city shall have discretion to determine whether to enforce this chapter against the commercial space owner, the tenant, or both of them.

SECTION II
If any section, subsection, sentence, clause or phrase of this Ordinance is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Gilroy hereby declares that it would have passed and adopted this ordinance, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases may be declared invalid or unconstitutional.

SECTION III
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 it is adopted.

PASSED AND ADOPTED this 27th day of July, 2026, by the following roll call vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

APPROVED:

______________________________
Greg Bozzo, Mayor
ATTEST:

Kim Mancera, City Clerk

CERTIFICATE OF THE CLERK
I, Kim Mancera, City Clerk of the City of Gilroy, do hereby certify that the attached Ordinance No. 2026-XX is an original ordinance, or a true and correct copy of a City Ordinance, duly adopted by the Council of the City of Gilroy at a Regular Meeting of said Council held on Monday, July 27, 2026, with a quorum present.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of the City of Gilroy this DATE.
____________________________________
Kim Mancera
City Clerk of the City of Gilroy

Gilroy City Code
5D.13 Sunset.

The Gilroy City Code is current through Ordinance 2025-11, passed December 8, 2025.

Chapter 5D

VACANT COMMERCIAL SPACE IN THE DOWNTOWN HISTORIC AND

DOWNTOWN EXPANSION DISTRICTS
Sections:
5D.1 Purpose.
5D.2 Scope.
5D.3 Administration.
5D.4 Definitions.
5D.5 General minimum maintenance requirements.
5D.6 Vacant commercial space registration.
5D.7 Window displays for commercial spaces not occupied for ninety (90) days. 5D.8 Regulations on the use of plywood.
5D.89 Fees for vacant commercial space registration.
5D.109 Delinquent registration fees, fines, interest, and penalties—Collection. 5D.110 Duty to amend registration statement.
5D.121 Inspections.
5D.132 Enforcement.
5D.13 Sunset.
5D.1 Purpose.

Commercial buildings that are vacant for an extended period of time may adversely affect surrounding businesses, detract from the appearance of a vibrant downtown, and may contribute to blighted conditions that negatively impact the entire community. The purpose of this chapter is to minimize these adverse effects by preserving and improving the appearance of downtown Gilroy by requiring ground-floor windows of vacant commercial buildings in the Downtown Historic and Downtown Expansion Districts to be aesthetically pleasing when viewed from the street and sidewalk. (Ord. No. 2012-02, § 1, 2-6-12)
5D.2 Scope.

The provisions of this chapter shall apply to all structures in the Downtown Historic District and the Downtown Expansion District, unless otherwise stated, including, but not limited to, properties that have been the subject of a foreclosure sale wherein title has been transferred to the beneficiary of a deed of trust involved in the foreclosure, and to any properties transferred under a deed in lieu of foreclosure or sale. All responsible persons shall comply with the requirements of this chapter. (Ord. No. 2012-02, § 1, 2-6-12)
5D.3 Administration.

This chapter will be administered by, and may be enforced by, the community development director or his or her designee, who may adopt administrative rules and regulations consistent with its terms. (Ord. No. 2012-02, § 1, 2-6-12)

Gilroy City Code
5D.13 Sunset.

The Gilroy City Code is current through Ordinance 2025-11, passed December 8, 2025. 5D.4 Definitions.

For the purposes of this chapter:
“City” means the City of Gilroy.
“Commercial space” means any portion of a structure in the Downtown Historic District or Downtown Expansion District that is not intended for residential use. “Downtown Historic District” and “Downtown Expansion District” mean the respective zoning districts of the city, as defined in the Gilroy Zoning Ordinance. “Occupied”. A commercial space is deemed to be “occupied” when a permitted, nonresidential tenant or user resides in or is physically located in, and is lawfully and actively operating in, the space for at least thirty (30) days and meets the proof of physical occupancy criteria as set forth in Section 5D.6(fg).
“Responsible person” means any person, firm, association, corporation, business entity, trustee, or receiver, or agent thereof, which owns, leases, rents or has lawful possession of a structure in the Downtown Historic District or in the Downtown Expansion District. “Vacant commercial space” means any portion of a street-level commercial space that is not occupied and has not been occupied for a period of ninety (90) consecutive days at the time the ordinance codified in this chapter becomes effective or any time thereafter. (Ord. No. 2012-02, § 1, 2-6-12)
5D.5 General minimum maintenance requirements.

Responsible persons shall at all times maintain all structures they own, lease, rent or lawfully possess in the Downtown Historic District and Downtown Expansion District pursuant to the Gilroy City Code, the Gilroy Zoning Ordinance and the current construction codes contained in Chapter 6, as amended by the city council. (Ord. No. 2012-02, § 1, 2-6-12) 5D.6 Vacant commercial space registration.
(a) At least one (1) responsible person for each vacant commercial space must register that space with the city in accordance with this chapter within ten (10) consecutive days of the date the space becomes vacant commercial space.
(b) In order to register a vacant commercial space, as required by this chapter, a responsible person must submit to the community development director, or his or her designee, all of the following information in writing:
(1) The street address and assessor’s parcel number of the vacant commercial space; (2) The name, address, and daytime and evening telephone numbers of each responsible person for the vacant commercial space, including any owner or tenant;

Gilroy City Code
5D.13 Sunset.

The Gilroy City Code is current through Ordinance 2025-11, passed December 8, 2025. (3) The period of time the vacant commercial space is estimated to remain vacant; and (4) Any other information requested by the community development director or his or her designee for the administration of this chapter.
(c) The registration of a vacant commercial space subject to this chapter must be renewed annually no later than January 1st of each year that the space was vacant. (d) The registration of a vacant commercial space subject to this chapter must be renewed within ninety (90) consecutive days of its change of ownership. (e) Initial and renewal registrations must be submitted on forms to be provided by the community development director, which forms shall be filled out completely and signed by at least one (1) responsible person.
(f) Building Report Card. Upon completion of registration, the department shall produce a sign no less than eighteen inches by twenty-four inches (18" x 24") posted on the front of the exterior building or structure so it is legible from the public-right-of-way with the following information:
(i) name, address, and twenty-four-hour contact telephone number of the owner, responsible party, or property management company; and (ii) the statement "THIS PROPERTY MANAGED BY" with the appropriate name inserted and "TO REPORT PROBLEMS OR CONCERNS CALL" with the twenty-four hour telephone number listed. The sign shall also identify the date the structure became vacant and identify any building or city code compliance violations requiring correction.
(fg) Upon satisfactory proof to the community development director, or his or her designee, that a vacant commercial space is and has been occupied for at least thirty (30) consecutive days, the vacant commercial space will be unregistered. Proof of physical occupation may include, but is not limited to, proof of the presence of usable furniture, office equipment, retail inventory or other equipment and inventory in the street-level commercial space that is consistent with the structure’s intended use, and the regular presence of persons using the street-level commercial space for its intended use. Proof of physical occupancy must also include documentation of occupancy, which may include, but is not limited to, an executed lease agreement, or valid state and local business licenses indicating the subject space is the official business address of the person or business claiming occupancy.
(gh) The determination of the number of vacant commercial spaces a structure contains for purposes of registration will be made by the community development director or his or her designee. The number of vacant commercial spaces will be determined by the physical areas that have separate entrances to the commercial space from a public entry or a joint tenant corridor and/or entry to the commercial space.
(hi) The provisions of this chapter shall not apply to a vacant commercial space if the following apply:
(1) The window display area space is the subject of a current, valid building permit for repair or rehabilitation and the responsible person provides proof, such as receipts, invoices or executed contracts, that the repair or rehabilitation is proceeding without significant delay. (Ord. No. 2012-02, § 1, 2-6-12)

Gilroy City Code
5D.13 Sunset.

The Gilroy City Code is current through Ordinance 2025-11, passed December 8, 2025. 5D.7 Window displays for commercial spaces not occupied for (90) ninety days.

Whether or not a vacant commercial space is registered pursuant to this chapter, if any commercial space in the Downtown Historic District or Expansion District has been unoccupied for more than ninety (90) consecutive days at the time this chapter becomes effective or any time thereafter, then responsible persons shall immediately construct and/or install at least one (1) of the following types of displays on or inside all ground-floor windows that face sidewalks, streets, alleys, or public open spaces:
(a) Faux window dressings containing goods or services with the visual characteristics of a vibrant business using background panels or other methods to screen views of the unoccupied space from the street, sidewalk and public areas;
(b) Works of art or other displays of cultural, historical, or educational value, using background panels or other methods to screen views of the unoccupied space from the street, sidewalk and public areas;
(c) Window paintings featuring visually appealing scenes depicting or suggesting business or cultural activities;
(d) Drywall, sheeting, plastic, butcher paper, plain paper or other raw coverings are strictly prohibited. All windows, openings, doors, facades, awnings, must be finished in appearance or in compliance with at least one of the above methods; or
(de) Other measures consistent with these examples, if approved in writing by the community development director or his or her designee, in his/her discretion. (Ord. No. 2012-02, § 1, 2-6- 12)
(f) Any decorative artwork and mural designs proposed for use must be appropriate for all ages in the community. The community development department will provide examples of appropriate designs to interested responsible persons.
5D.8 Regulations on the use of plywood.
(a) Plywood may be utilized if the building façade needs to be removed, or as a temporary measure to restrict unpermitted entry when doors, windows, or other potential entry points are exposed and need to be secured.
(b) Plywood must be decorated in compliance with the requirements provided in Section 5D.7. Such decoration shall be completed within ninety (90) days of installation. (c) Plywood must be removed one (1) year after installation. (1) No additional permits will be approved until any active permit is completed, the temporary front is removed, and all applicable fines are paid. (1)(2) Properties may request a one-year extension if there are extenuating circumstances. The community development director, or their designee, may approve such extensions in writing, at their discretion.

Gilroy City Code
5D.13 Sunset.

The Gilroy City Code is current through Ordinance 2025-11, passed December 8, 2025. 5D.98 Fees and Finesfor vacant commercial space registration. (a) Commercial space registration. At least one (1) responsible person shall pay an annual registration fee for each registered vacant commercial space that is separately owned or leased.

In the case of a newly constructed or remodeled building in which individual spaces are not separately owned or leased, a single initial and annual registration fee shall be paid to cover all commercial spaces within the building. At least one responsible person must pay an initial registration fee to the city at the time the space is registered, and must pay an annual renewal registration fee by January 1st each following year that the space or spaces remain vacant.

Registration fees will not be prorated. These registration and fee requirements are applicable to any vacant commercial space in the Downtown Historic District or Expansion District that at the time the ordinance codified in this chapter becomes effective or any time thereafter. The fees will be as follows:
(1) Initial registration: one seven hundred twenty fifty dollars ($12750.00). (2) Annual renewal registration: one thousand five hundred twenty dollars ($1,5200.00). (3) The fees are intended to defray the costs of administering this chapter and may be changed by the city council to meet these costs. (Ord. No. 2012-02, § 1, 2-6-12) (b) The fees are intended to defray the costs of administering this chapter and may be changed by resolution of the city council to meet these costs. (Ord. No. 2012-02, § 1, 2-6-12)(b) Failure to register, or renew the registration of, vacant commercial space in violation of Section 5D.6 shall incur a fine of one hundred fifty dollars ($150.00) per week, or portion thereof, until compliance with the registration requirements is complete.
(c) Plywood, or any portion thereof, that remains undecorated after ninety (90) days in violation of Section 5D.8 (b) shall incur a fine of five hundred dollars ($500.00) per month or portion thereof.
(d) Plywood that remains beyond one (1) year after installation in violation of Section 5D.8 (c) shall incur a fine of two hundred fifty dollars ($250.00) per month, or portion thereof, until all plywood is removed.
(e) Any other violation of this Chapter shall incur a fine as detailed in Chapter 1.7 of the Gilroy City Code.
5D.109 Delinquent registration fees, fines, interest and penalties—Collection. (a) If a responsible person fails to pay the registration fee by the due date, the city is authorized to take action to collect the registration fee including a ten percent (10%) per month late payment penalty and its costs of collection, including attorneys’ fees, by use of any and all available legal means; in which case such penalties and costs incurred by the city as a result of the collection process will be assessed to the responsible person or responsible persons in addition to the registration fee. (Ord. No. 2012-02, § 1, 2-6-12)

Gilroy City Code
5D.13 Sunset.

The Gilroy City Code is current through Ordinance 2025-11, passed December 8, 2025. (b) The city may pursue any and all legal and equitable remedies for the collection of fees and fines, including interest and penalties.
(c) Delinquent fees, fines, interest, and penalties may be recorded as a lien or special assessment against the property on which the code violation occurred. Prior to recording a lien or special assessment, the city shall prepare a cost report itemizing the amount owed by the responsible person. The city shall comply with the State Board of Equalization or any other state or county law pertaining to the recording of any delinquent fines, interest, and penalties as a lien on the property, or as a special assessment.
(a)(d) The administrative citation process described in this chapter does not preclude the city from recovering any code violation abatement cost incurred by the city in performing its code enforcement efforts.
5D.110 Duty to amend registration statement.

Responsible persons for any registered vacant commercial space shall advise the community development director or his or her designee, in writing, of any changes to the information on the registration form within thirty (30) consecutive days of the occurrence of the change. (Ord. No. 2012-02, § 1, 2-6-12)
5D.121 Inspections.

The community development director or his or her designee, or code enforcement officers, or both are authorized to conduct inspections to enforce the provisions of this chapter. (Ord. No. 2012-02, § 1, 2-6-12)
5D.132 Enforcement.
(a) The city may enforce the provisions of this chapter by any of the provisions of the Gilroy City Code, which are in addition to any other remedies provided for by law. Said remedies shall be cumulative and not exclusive.
(b) It shall be unlawful for any responsible person to violate or fail to comply with any provisions of this chapter. Each responsible person commits a separate offense for each and every day they commit, continue or permit a violation of any provision of this chapter. (c) Any responsible person violating any of the provisions of this chapter shall be deemed guilty of an infraction, and upon conviction, shall be punished as set forth in Government Code Section 36900, as it now exists or may hereafter be amended.
(d) All responsible persons are jointly and severally responsible with respect to compliance with all provisions of this chapter and for any payments required to be made to the city under this chapter, including but not limited to registration fees, late penalties, and costs of collection and enforcement, including attorneys’ fees and costs. If the commercial space is subject to a lease,

Gilroy City Code
5D.13 Sunset.

The Gilroy City Code is current through Ordinance 2025-11, passed December 8, 2025. the city shall have discretion to determine whether to enforce this chapter against the commercial space owner, the tenant, or both of them. (Ord. No. 2012-02, § 1, 2-6-12) 5D.13 Sunset.

The provisions of this chapter shall apply to any vacant commercial space in the Downtown Historic District or Expansion District that has been unoccupied for more than ninety (90) consecutive days at the time the ordinance codified in this chapter becomes effective or any time thereafter. Further, the provisions of this chapter shall terminate on the same termination date of the Seismic Safety Ordinance No. 2011-07 and be of no further force and effect, unless extended by a resolution of the city council. (Ord. No. 2012-02, § 1, 2-6-12)

8.3. City of Gilroy

STAFF REPORT
Agenda Item Title: Resolution Declaring Results of Majority Protest Proceedings to Renew the Gilroy Tourism Business Improvement District Meeting Date: June 15, 2026
From: Matt Morley, City Administrator
Department: Economic Development
Submitted by: Raissa de la Rosa, Economic Development Director Prepared by: Raissa de la Rosa, Economic Development Director STRATEGIC PLAN GOALS: Promote Economic Development Activities

RECOMMENDATION

1. Open/Close Public Hearing;

2. Declare the results of the majority protest proceedings; and

3. Adopt a Resolution to renew the Gilroy Tourism Business Improvement District.

EXECUTIVE SUMMARY
Council's April 20, 2026, approval of Resolution No. 2026-20 stating the intention to renew the Gilroy Tourism Business Improvement District (GTBID) authorized the release of a Draft Management District Plan and set the dates for this Public Hearing.

Holding this final hearing, declaring results of the majority protest proceedings, and adopting this Resolution will result in the renewal of the GTBID and the continuation of the levy of assessments on certain lodging businesses.

BACKGROUND
The City established the GTBID on September 17, 2012, through Resolution No. 2012- 36, for an initial five-year term. The GTBID was subsequently renewed on October 17, 2016, by Resolution No. 2016-54 for an additional ten-year term as allowed by state law, and is set to conclude on December 31, 2027. This current renewal process will

8.3. extend the life of the District for another ten-year period. If renewed, the GTBID would generate approximately $324,000 annually. The GTBID is a benefit assessment district proposed to continue a dedicated revenue source to help fund destination sales and marketing efforts for Gilroy lodging businesses, with residual benefits to the city's broader tourism industry.

Tourism Business Improvement Districts
The GTBID is a collaborative funding mechanism voluntarily approved and paid for by local lodging establishments to create a dedicated, locally controlled revenue stream to support programs that increase overnight stays and strengthen the city's tourism economy. GTBID funds cannot be diverted to other government program use, and the funds are governed by those paying the assessment. In California, TBIDs are primarily formed pursuant to the Property and Business Improvement District Law of 1994.

GTBID Renewal Process
April 20, 2026 Resolution of Intention Hearing - completed Initiated upon submission of a written petition signed by business owners who will pay more than 50% of the assessment levied.

May 1, 2026 Notice - completed
Mailing of a written notice to owners of all businesses proposed to be assessed.

May 18, 2026 Public Meeting - completed
Allow public testimony on the renewal of the GTBID; no Council action required
June 15, 2026 Final Public Hearing / Resolution of Formation If written protests are received from the owners of businesses in the renewed GTBID which will pay 50% or more of the
assessments proposed to be levied, and protests are not withdrawn so as to reduce the protests to less than 50%, no further proceedings to levy the proposed assessment against such businesses shall be taken for the period of 1 year from the date of the finding of a majority protest by the Council.

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

ANALYSIS
The Management District Plan (Attachment 1) includes the GTBID boundary (noncontiguous, comprised of the qualifying Gilroy lodging establishments), a service plan and budget, and a means of governance. Consistent with previous plans, the GTBID will include all lodging businesses (i.e. no minimum room threshold for assessment

8.3. applicability).

The current annual assessment rate is 2% of gross short-term room revenue. During the GTBID's ten-year term, the assessment rate may be increased by the Gilroy Visitors Bureau, Inc. dba the Gilroy Welcome Center's Board to a maximum rate of 5%, further subject to City Council approval. If the assessment rate is increased, it may subsequently be decreased, but never below a minimum of 2%. The maximum increase or decrease in any year is 2%. In the life of the GTBID to date, the assessment rate has been 2% with no changes enacted. Based on the benefit received, assessments will not be collected on stays of more than thirty (30) consecutive days.

The renewed GTBID will have a ten-year (10) term beginning January 1, 2028, or as soon as possible thereafter. As the current 10-year term does not expire until December 31, 2027, it should be noted that the renewal will remain dormant until 2028 and allows for a seamless transition into the next term. Coupled with the GTBID renewal is the need to extend the professional services agreement with Gilroy Visitors Bureau, dba Gilroy Welcome Center, which serves as the GTBID's Owners' Association charged with managing funds and implementing programs in accordance with the Management District Plan. Renewal of that agreement is estimated to be presented to Council for action in August of this year.

The City will continue to collect the assessments on a quarterly basis, for which the City will be paid a fee equal to two percent (2%) of the amount of assessment collected to cover the cost of collection and administration.

ALTERNATIVES
The Council could choose not to adopt the Resolution of Formation. Staff does not recommend this option.

FISCAL IMPACT/FUNDING SOURCE
The City will receive a fee of two percent (2%) of the amount collected to cover its costs of administration. In addition, GTBID programs are intended to increase visitation to the City, resulting in a potential increase in transient occupancy tax and sales tax collections.

PUBLIC OUTREACH
Notice of the process, including the public hearing, was mailed to owners of all businesses proposed to be assessed within the GTBID.

NEXT STEPS

8.3. None.

Attachments:

1. 26-0615 - GTBID Reso of Formation Att 1 - MDP 5-27-26 - Redline

2. 26-0615 - GTBID Resolution of Formation

2028-2037

GILROY TOURISM BUSINESS

IMPROVEMENT DISTRICT

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

October 31,
2025May 27, 2026

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

GTBID Management District Plan 3
October 31, 2025May 27, 2026
I. OVERVIEW
Developed by Gilroy lodging businesses and Gilroy Visitors Bureau, Inc. dba the Gilroy Welcome Center (GWC), the Gilroy Tourism Business Improvement District (GTBID) is an assessment district proposed to continue to provide specific benefits to payors by funding Sales and Marketing promotion efforts for assessed lodging businesses. This approach has been used successfully in other destination areas throughout the country to provide the benefit of additional room night sales directly to payors.

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

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

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

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

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

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

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

GTBID Management District Plan 4
October 31, 2025May 27, 2026
there is a 30-day period in which owners paying more than fifty percent (50%) of the assessment may protest and initiate a City Council hearing on district termination.

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

GTBID Management District Plan 5
October 31, 2025May 27, 2026
II. BACKGROUND
TBIDs are an evolution of the traditional Business Improvement District. The first TBID was formed in West Hollywood, California in 1989. Since then, over 100 California destinations have followed suit. In recent years, other states have begun adopting the California model –Illinois, Minnesota, Massachusetts, Montana, South Dakota, Washington, Colorado, Texas and Louisiana have adopted TBID laws. Several other states are in the process of adopting their own legislation. The cities of Wichita, Kansas and Newark, New Jersey used an existing business improvement district law to form a TBID. Additionally, some cities, like Portland, Oregon and Memphis, Tennessee have utilized their home rule powers to create TBIDs without a state law.

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

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

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

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

GTBID Management District Plan 6
October 31, 2025May 27, 2026
III. BOUNDARY
The GTBID will include all lodging businesses with ten (10) rooms or more, existing and in the future, available for public occupancy within the boundaries of the City of Gilroy, as shown in the map below.

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

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

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October 31, 2025May 27, 2026
IV. ASSESSMENT BUDGET AND SERVICES
A. Annual Service Plan
Assessment funds will be spent to provide specific benefits conferred or privileges granted directly to the payors that are not provided to those not charged, and which do not exceed the reasonable cost to the City of conferring the benefits or granting the privileges. The privileges and services provided with the GTBID funds are Sales and Marketing programs, and other improvements and activities set forth in this Plan, available only to assessed lodging businesses.

A service plan assessment budget has been developed to deliver services that benefit the assessed lodging businesses. A detailed annual assessment budget will be developed and approved by the GWC Board. The chart below illustrates the initial annual assessment budget allocations. These activities and allocations will also apply in subsequent years. The total initial assessment budget is estimated to be $365324,000.

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

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

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

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

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

INITIAL ANNUAL ASSESSMENT BUDGET -
$324,000

GTBID Management District Plan 8
October 31, 2025May 27, 2026
Sales and Marketing
A Sales and Marketing program will promote assessed lodging businesses as tourist, meeting, and event destinations. The Sales and Marketing program will have a central theme of promoting Gilroy as a desirable place for overnight visits. The program will have the goal of increasing overnight visitation and room night sales at assessed lodging businesses, and may include the following activities:
• Internet marketing efforts to increase awareness and optimize internet presence to drive overnight visitation and room sales to assessed lodging businesses; • Print ads in magazines and newspapers, television ads, and radio ads targeted at potential visitors to drive overnight visitation and room sales to assessed lodging businesses; • Social media marketing efforts designed to drive overnight visitation and room sales to assessed lodging businesses;
• Attendance of trade and consumer shows to promote assessed lodging businesses; • Sales blitzes for assessed lodging businesses;
• Familiarization tours of assessed lodging businesses; • Preparation and production of collateral promotional materials such as brochures, flyers and maps featuring assessed lodging businesses;
• Attendance of professional industry conferences and affiliation events to promote assessed lodging businesses;
• Lead generation activities designed to attract tourists and group events to assessed lodging businesses;
• Director of Sales and General Manager meetings to plan and coordinate tourism promotion efforts for assessed lodging businesses; and
• Development and maintenance of a website designed to promote assessed lodging businesses.

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

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

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

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

GTBID Management District Plan 9
October 31, 2025May 27, 2026
The initial annual assessment rate is two percent (2%) of gross short-term sleeping room rental revenue. During the GTBID’s ten (10) year term, the assessment rate may be increased by the GWC’s Board to a maximum rate of five percent (5%) of gross short-term sleeping room rental revenue for assessed lodging businesses. If the assessment rate is increase, it may subsequently be decreased, but shall not be decreased below a minimum of two percent (2%) of gross short-term sleeping room rental revenue. The maximum increase or decrease in any year shall be two percent (2%).

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

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

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

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

GTBID Management District Plan 10
October 31, 2025May 27, 2026
or parcels of land, but rather to serve the specific businesses within the GTBID. The activities described in this Plan are specifically targeted to increase demand for room night sales for assessed lodging businesses within the boundaries of the GTBID, and are narrowly tailored. GTBID funds will be used exclusively to provide the specific benefit of increased demand for room night sales directly to the assessees. Assessment funds shall not be used to feature non-assessed lodging businesses in GTBID programs, or to directly generate sales for non-assessed lodging businesses. The activities paid for from assessment revenues are business services constituting and providing specific benefits to the assessed lodging businesses. Nothing in this Plan limits the ability of the Owners’ Association to enter into private contracts with non-assessed lodging businesses for the provision of services to those businesses.

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

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

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

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

GTBID Management District Plan 11
October 31, 2025May 27, 2026
and complies with the requirements of the 94 Law. Pursuant to Streets and Highways Code Section 36615, the City Council’s determination of ownership is final and conclusive, with no obligation to obtain other information. Non-assessed lodging businesses will not receive these, nor any other, GTBID-funded services and benefits.

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

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

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

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

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

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

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

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

GTBID Management District Plan 12
October 31, 2025May 27, 2026
for payment from the business. If the GTBID assessment is identified separately it shall be disclosed as the “GTBID Assessment.” The assessment is imposed solely upon, and is the sole obligation of the assessed lodging business even if it is passed on to transients. The assessment shall not be considered revenue for calculation of transient occupancy taxes.

Bonds shall not be issued.

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

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

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

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

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

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

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

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

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

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

GTBID Management District Plan 13
October 31, 2025May 27, 2026
V. GOVERNANCE
A. Owners’ Association
The City Council, through adoption of this Plan, has the right, pursuant to Streets and Highways Code §36651, to identify the body that shall implement the proposed program, which shall be the Owners’ Association of the GTBID as defined in Streets and Highways Code §36612. The City Council has determined that GWC will continue to serve as the Owners’ Association for the GTBID.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

ARTICLE 2. Definitions
36606. “Activities”

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

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

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

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36608. “City”

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

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

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

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

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

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

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

“Property” means real property situated within a district.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

GTBID Management District Plan 24
October 31, 2025May 27, 2026
assessments, including any commitment to pay principal and interest on any bonds issued on behalf of the district.
36651. Designation of owners’ association to provide improvements, maintenance, and activities

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

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

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

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

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

GTBID Management District Plan 25
October 31, 2025May 27, 2026
(a) Upon the disestablishment or expiration without renewal of a district, any remaining revenues, after all outstanding debts are paid, derived from the levy of assessments, or derived from the sale of assets acquired with the revenues, or from bond reserve or construction funds, shall be refunded to the owners of the property or businesses then located and operating within the district in which assessments were levied by applying the same method and basis that was used to calculate the assessments levied in the fiscal year in which the district is disestablished or expires. All outstanding assessment revenue collected after disestablishment shall be spent on improvements and activities specified in the management district plan. (b) If the disestablishment occurs before an assessment is levied for the fiscal year, the method and basis that was used to calculate the assessments levied in the immediate prior fiscal year shall be used to calculate the amount of any refund.

GTBID Management District Plan 26
October 31, 2025May 27, 2026
APPENDIX 2 – ASSESSED BUSINESSES*
Lodging Business Street Address City, State, ZIP
Best Western Plus / Forest
Park Inn
375 Leavesley Road Gilroy, CA 95020
Budget Motels / Whiterock 8897 Monterey Road Gilroy, CA 95020 Garlic Farm Inn 5920 Travel Park Circle Gilroy, CA 95020 Gilroy Inn 611 Leavesley Road Gilroy, CA 95020
Hilton Garden Inn 6070 Monterey Road Gilroy, CA 95020
Kings Rest Motel 8175 Monterey Road Gilroy, CA 95020
Motel 6 6110 Monterey Road Gilroy, CA 95020
Oaks Motel 8065 Monterey Road Gilroy, CA 95020
Pacheco Pass Motel 570 Old Gilroy Street Gilroy, CA 95020 Quality Inn & Suites 8430 Murray Road Gilroy, CA 95020
Econolodge 360 Leavesley Road Gilroy, CA 95020
Comfort Inn 8435 San Ysidro Avenue Gilroy, CA 95020
Travel Inn 5530 Monterey Road Gilroy, CA 95020
Hampton Inn 5975 Travel Park Circle Gilroy, CA 95020
*Jurisdiction list as of October 20, 2025
May 27, 2026

RESOLUTION NO. 2026-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY

DECLARING RESULTS OF MAJORITY PROTEST PROCEEDINGS AND

RENEWING THE GILROY TOURISM BUISNESS IMPROVEMENT DISTRICT WHEREAS, the City created the Gilroy Tourism Business Improvement District (GTBID) on September 17, 2012, by Resolution No. 2012-36 for an initial five (5) year term; and WHEREAS, the GTBID was subsequently renewed on October 17, 2016, by Resolution No. 2016-54 for an additional ten (10) year term, which ends on December 31, 2027; and WHEREAS, the Property and Business Improvement District Law of 1994, Streets and Highways Code § 36600 et seq., authorizes the City to renew business improvement districts upon petition by a weighted majority of the business owners located within the boundaries of the district; and
WHEREAS, lodging business owners who will pay more than fifty percent (50%) of the proposed assessment, as weighted according to the amount of the assessment to be paid by the petitioner, within the boundaries of the GTBID have petitioned the Council to renew the GTBID; and
WHEREAS, included with the petitions was a Management District Plan (Plan) summary that describes the proposed assessment to be levied on lodging businesses, existing and in the future, within the GTBID to pay for sales and marketing programs, and other improvements and activities set forth in the Plan; and
WHEREAS, the assessed lodging businesses within the GTBID will receive a specific benefit from the activities and improvements set forth in the Plan; and WHEREAS, on April 20, 2026, at 6:00 PM at the Council Chambers located at City Hall, 7351 Rosanna Street, Gilroy, CA 95020, the Council adopted a Resolution of Intention, Resolution No. 2026-20; and
WHEREAS, the public meeting and public hearing to consider the renewal of the GTBID have been properly noticed in accordance with Streets and Highways Code § 36623; and WHEREAS, on May 18, 2026, at 6:00 PM at the Council Chambers located at City Hall, 7351 Rosanna Street, Gilroy, CA 95020, the Council held a public meeting regarding the renewal of the GTBID, and the Council heard and received objections and protests, if any, to the renewal of the GTBID and the levy of the proposed assessment; and
WHEREAS, on June 15, 2026, at 6:00 PM at the Council Chambers located at City Hall, 7351 Rosanna Street, Gilroy, CA 95020, the Council held a public hearing regarding the renewal of the GTBID, and the Council heard and received all objections and protests, if any, to the renewal of the GTBID and the levy of the proposed assessment; and

Resolution No. 2026-XX
Short Title
City Council Regular Meeting | Date

WHEREAS, the City Clerk has determined that there was no majority protest. A majority protest is defined as written protests received from owners of businesses in the renewed GTBID which would pay fifty percent (50%) or more of the assessments proposed to be levied. Protests are weighted based on the assessment proposed to be levied on each lodging business; and WHEREAS, the City bears the burden of proving by a preponderance of the evidence that an assessment imposed for a specific benefit or specific government service is not a tax, that the amount is no more than necessary to cover the costs to the City in providing the specific benefit or specific government service, and that the manner in which those costs are allocated to a payor bear a fair or reasonable relationship to the specific benefits or specific government services received by the payor.

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

1. The recitals set forth herein are adopted by the Council as findings and they are true and correct.

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

3. The Plan dated May 27, 2026, is hereby adopted and approved.

4. The activities to be provided to benefit businesses in the GTBID will be funded by the levy of the assessment. The revenue from the assessment levy shall not be used: to provide activities that directly benefit businesses outside the GTBID; to provide activities or improvements outside the GTBID; or for any purpose other than the purposes specified in this Resolution, the Resolution of Intention, and the Plan. Notwithstanding the foregoing, improvements and activities that must be provided outside the GTBID boundaries to create a specific benefit to the assessed businesses may be provided, but shall be limited to marketing or signage pointing to the GTBID.

5. The Council finds as follows:
a) The activities funded by the assessment will provide a specific benefit to assessed businesses within the GTBID that is not provided to those not paying the assessment. b) The assessment is a charge imposed for a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege.
c) The assessment is a charge imposed for a specific government service or product provided directly to the payor that is not provided to those not charged, and which does

Resolution No. 2026-XX
Short Title
City Council Regular Meeting | Date

not exceed the reasonable costs to the local government of providing the service or product.
d) Assessments imposed pursuant to the GTBID are levied solely upon the assessed business, and the business owner is solely responsible for payment of the assessment when due. If the owner chooses to collect any portion of the assessment from a transient, that portion shall be specifically called out and identified for the transient in any and all communications from the business owner as the “GTBID Assessment” as specified in the Plan.

6. The assessments levied for the GTBID shall be applied towards sales and marketing programs to market Gilroy lodging businesses as tourist, meeting and event destinations, and other improvements and activities as set forth in the Plan.

7. Assessments levied on lodging businesses pursuant to this resolution shall be levied on the basis of benefit. Because the services provided are intended to increase sleeping room rentals, an assessment based on gross short-term sleeping room rental revenue is the best measure of benefit.

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

9. The assessments for the entire GTBID will total approximately $324,000 in year one (1).

10. Bonds shall not be issued to fund the GTBID.

11. The GTBID shall include all lodging businesses, existing and in the future, available for public occupancy located within the boundaries of the City. A boundary map is attached hereto as Exhibit A and incorporated herein by reference.

12. The assessments shall be used for the purposes set forth above and any funds remaining at the end of any year may be used in subsequent years in which the GTBID assessment is levied as long as they are used consistent with the requirements set forth herein.

13. The assessments to fund the activities and improvements for the GTBID will be collected by the City on a quarterly basis, and in accordance with Streets and Highways Code §

Resolution No. 2026-XX
Short Title
City Council Regular Meeting | Date

36631.

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

15. GWC, pursuant to Streets and Highways Code § 36650, shall cause to be prepared a report for each fiscal year, except the first year, for which assessments are to be levied and collected to pay the costs of the improvement and activities described in the report. The first report shall be due after the first year of operation of the GTBID.

16. The GTBID renewed pursuant to this Resolution will be subject to any amendments to the Property and Business Improvement District Law of 1994 (California Streets and Highways Code § 36600 et seq.).

17. The City Clerk, or his or her designee, is directed to take all necessary actions to complete the renewal of the GTBID and to levy the assessments.

18. This Resolution shall take effect immediately upon its adoption by the Council.

PASSED AND ADOPTED this 15th 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
Short Title
City Council Regular Meeting | Date

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, June 16, 2026.
____________________________________
Kim Mancera
City Clerk of the City of Gilroy

Resolution No. 2026-XX
Short Title
City Council Regular Meeting | Date

EXHIBIT A
District Boundary Map

9.1. City of Gilroy

STAFF REPORT
Agenda Item Title: Charles Lux Drive and Lopez Way All Way Stop Control Analysis and Las Animas Elementary School Area Study
Meeting Date: June 15, 2026
From: Matt Morley, City Administrator
Department: Public Works
Submitted by: John Doughty, Public Works Director
Prepared by: Nisha Patel, City Engineer
STRATEGIC PLAN GOALS: Not Applicable

RECOMMENDATION
Receive presentation from consultant, accept public comment and accept the Charles Lux and Lopez Way All Way Stop Control Analysis and Las Animas Elementary School Area Study.

EXECUTIVE SUMMARY
Following the fatal accident near the intersection of Charles Lux Drive and Lopez Way in early 2026, community members voiced concerns regarding traffic safety near Las Animas Elementary School. In response, the City committed to hiring an independent traffic engineering firm, to perform an all-way stop analysis at Charles Lux Drive and Lopez Way and complete a study of traffic around Las Animas School. Parmetrix was chosen and hired to perform the analysis.

Parametrix reviewed the intersection of Charles Lux Drive and Lopez Way with the guidance of California Manual on Traffic Control Devices (CA MUTCD) 2026 Section 2B.12 to determine whether the All Way Stop Control (AWSC) is appropriate at the intersection. AWSC was determined to not be warranted based on State traffic control guidance.

Parametrix also conducted a study of the Las Animas school area by: evaluating existing traffic conditions, speeds, and multimodal activity; reviewing collision history for

9.1. the study intersection and surrounding area; observing pedestrian activity associated with school arrival and dismissal periods; and identifying potential improvements to enhance intersection safety and visibility. Parametrix is recommending measures to address user behavior with education and awareness, operational improvements with near-term, low-cost measures, and structural improvements with long-term capital enhancements. The near term and structural improvements are shown in the attached Las Animas School Area Study Overview Map.

BACKGROUND
Following a tragic accident near the intersection of Charles Lux Drive and Lopez Way, the City committed to conduct a warrant study for the intersection of Lopez Way and Charles Lux Drive as well as review overall traffic safety related issues around Las Animas Elementary School.

Parametrix was contracted to prepare an All-Way Stop Control (AWSC) study for the intersection of Charles Lux Drive and Lopez Way.

Parmetrix was also requested to conduct a field review of nearby intersections within the Las Animas Elementary School circulation area to identify potential safety concerns and improvement opportunities. The following intersections were observed as part of this review:
• Charles Lux Drive / West 10th Street (roundabout)
• Charles Lux Drive / Sanchez Place
• Charles Lux Drive / Cimino Street
• Charles Lux Drive / Las Animas Elementary School driveway • Charles Lux Drive / Greenfield Drive
• Cimino Street / Las Animas Elementary School Driveway (North) • Cimino Street / Las Animas Elementary School Driveway (Central) • Cimino Street / Las Animas Elementary School Driveway (South) • Cimino Street / West Luchessa Avenue (signalized)
• Greenfield Drive / Alta Oak Way
• Greenfield Drive / Brook Way
• Greenfield Drive / West Luchessa Avenue
• West Luchessa Avenue / West 10th Street (roundabout)
These intersections together form the local circulation network serving Las Animas Elementary School and surrounding residential areas.

To further support school traffic safety, the City is also conducting an Engineering and Traffic Speed Survey to evaluate operating conditions and establish appropriate speed limits on roadways throughout the community. Staff will be establishing updated,

9.1. defensible speed limits based on current conditions; evaluating opportunities to apply reduced speed limits in school areas under current California law and MUTCD provisions; and, evaluating implementation of 20 mph or 15 mph speed limits in the vicinity of schools.

ANALYSIS
As previously noted, the City hired Parametrix to prepare a warrant study and a study of the Las Animas school area as well. The Final Draft study is included as Attachment 1 to this report. Parametrix will be presenting their findings and recommendation at this meeting.

Following the fatal accident, community members suggested the installation of an all way stop at the intersection of Lopez Way and Charles Lux Drive. The first task for Parametrix was to evaluate whether installation of all-way stop control is warranted at the intersection in accordance with the California Manual on Uniform Traffic Control Devices (CA MUTCD) 2026. The study assessed existing traffic conditions, including traffic volumes, speeds, collision history, and pedestrian activity, and identified potential improvements to enhance safety in the surrounding school area. The study concluded that an all way stop was not warranted/ appropriate for this location based upon California Manual on Uniform Traffic Control Devices (CA MUTCD) 2026.

As part of their scope of work, Parametrix conducted field observations of the Charles Lux Drive and Lopez Way intersection and surrounding areas during the morning school drop off and afternoon pick up periods. They observed driver behavior and traffic operations; pedestrian activity and behavior; sight distance and visibility; parking, loading, and bicycle facilities; and traffic control devices and markings.

They determined the study intersection and surrounding roadway network operate as a typical residential school environment. Observed conditions indicate that traffic operations are primarily influenced by school circulation patterns, pedestrian activity during peak periods, and localized visibility constraints.

While drivers adapt to visibility conditions through positioning and behavior, and overall operations remain stable, several factors such as inconsistent traffic control devices, informal pedestrian crossings, and parking-related impacts contribute to safety concerns. These conditions are best addressed through targeted improvements rather than changes to intersection control. Table 8 of the Parametrix study memo details what they observed, safety issues, and associated countermeasures.

The near term and driver awareness improvements they recommend include the removal of some on-street parking, new striping and pavement markings, re-striping of revised crosswalks and bike lanes, daylighting markings/ signage, and installation of school zone and pedestrian crossing signs to improve pedestrian and bicyclist safety as shown in Figures X and Y of their study memo.

9.1. Parametrix identified other areas that would benefit from further evaluation and design development. They include City partnering with Gilroy Unified School District (GUSD) to:
evaluate opportunities to modify on-site circulation and access configurations, and onsite vehicle storage capacity; scope and fund a Cimino Street Corridor evaluation; and evaluate near-term operational strategies to improve pick-up and drop-off efficiency.

ALTERNATIVES
City Council could suggest revisions to the proposed safety improvements. Depending upon the nature of the revisions, the actions could delay implementation of the improvements.

City Council could choose to delay the proposed improvements. This is not recommended because the proposed improvements are measures to address observed safety conditions.

FISCAL IMPACT/FUNDING SOURCE
The City applied for $229,000 for Transportation Development Act, Article 3 (TDA 3) grant funding through the Metropolitan Transportation Commission (MTC) for design and construction of the near term/ low-cost improvements in the area of Las Animas Elementary School. Staff will return to City Council to add the project to the Capital Improvement Program and appropriate the grant funding to the project at the time of award of the construction contract.

PUBLIC OUTREACH
The City has worked closely with the community and Gilroy Unified School District (GUSD) on school traffic safety efforts including partnering on a community outreach and education program at Brownell Middle School.

NEXT STEPS
Assuming the Report is accepted, staff will finalize design of proposed improvements to address user behavior and operational issues, advertise the improvements for construction bids, award the contract, and construct the proposed improvements.

The City will also work with Las Animas Elementary School and GUSD to encourage and facilitate their implemention of near-term operational improvements to pick-up and drop off circulation.

Attachments:

9.1. 1. Figures X and Y

2. Draft Final Memo

OF
REVISIONS 05/08/2026
CITY OF GILROY 484-9591-004
6001 Shellmound St, Ste 500
Emeryville, CA 94608
(510) 343-6400
Know what'sbelow.

Call before you dig.

R
0 100' 200'
1 P-1 LAS ANIMAS ELEMENTARY SCHOOL AREA STUDY

OVERVIEW MAP
2 1" = 100'
FIGURE X. RECOMMENDED SAFETY IMPROVEMENTS DRAFT

INSTALL RED CURB (DAYLIGHTING)

ALL FOUR CORNERS

IMPLEMENT ROADWAY

LANE NARROWING

INSTALL STANDARDIZED CA

MUTCD-COMPLIANT YELLOW
LADDER CROSSWALKS. TYP
INSTALL SW24-2 (CA) SCHOOL

CROSSING WARNING SIGN

ON NEW SIGN POST
INSTALL R7-9a NO PARKING SIGNS, RED

CURB PAINT AND STRIPE TRANSITION FROM
BIKE LANES TO SHARED ROAD.

INSTALL STOP BAR SETBACK

BEHIND EXISTING PED RAMP

REFRESH ALL PAVEMENT

MARKINGS AND STANDARDIZE
STRIPING. TYP
REPLACE EXISTING W11-2
AND W16-7P WITH NEW
W11-2 AND W16-7P PED

CROSSING WARNING SIGN
REPLACE EXISTING S1-1 SIGN WITH
SW24-1 (CA) SCHOOL ZONE SIGN
ASSEMBLY A ON STREET LIGHT POLE REPLACE EXISTING S1-1 SIGN WITH SW24-1 (CA) SCHOOL

ZONE SIGN ASSEMBLY A ON

EXISTING SIGN POST
INSTALL SW24-1 (CA)

SCHOOL ZONE SIGN

ASSEMBLY A ON

STREET LIGHT POLE
INSTALL 20' RED CURB
(DAYLIGHTING). TYP
INSTALL SW24-3 (CA) ADVANCE

SCHOOL CROSSING WARNING

SIGN ON STREET LIGHT POLE

SCHOOL SCHOOL SCHOOL
REPLACE EXISTING W11-2
AND W16-7P WITH NEW
W11-2 AND W16-7P PED

CROSSING WARNING SIGN AHEAD
GENERAL NOTE:

EXISTING PAVEMENT MARKINGS AND STRIPING IN CONFLICT WITH NEW STRIPING SHALL BE REMOVED BEFORE INSTALLING NEW STRIPING.

INSTALL RIGHT OUT PAVEMENT

MARKING ARROW FOR

SCHOOL STAFF DRIVEWAY

INSTALL STOP BAR

SETBACK BEHIND

EXISTING PED RAMP

EXPLORE SCHOOL SITE

CIRCULATION AND

ACCESS IMPROVEMENTS

OF
REVISIONS 05/08/2026
CITY OF GILROY 484-9591-004
6001 Shellmound St, Ste 500
Emeryville, CA 94608
(510) 343-6400
Know what'sbelow.

Call before you dig.

R
0 30' 60'
2 P-2
2 1" = 30'
CONCEPT PLAN: CHARLES LUX DRIVE / LOPEZ WAY

LAS ANIMAS ELEMENTARY SCHOOL AREA STUDY
FIGURE Y. CHARLES LUX DRIVE QUICK BUILD STRIPING AND SIGNING PLAN

INSTALL STANDARDIZED CA

MUTCD-COMPLIANT YELLOW
LADDER CROSSWALKS. TYP
INSTALL WIDER, 6" DOUBLE

YELLOW CENTERLINE
INSTALL 10' RED CRUB
EXTEND RED CURB BY 10' EXTEND RED CURB BY 10'
INSTALL R7-9a NO

PARKING SIGNS
EXTEND RED CURB BY 3'
INSTALL 16' RED CURB

TO CURB RAMP FLARE
REFRESH RED CURB. TYP
INSTALL 20' RED CRUB
DRAFT

INSTALL RED CURB
GENERAL NOTE:

EXISTING PAVEMENT MARKINGS AND STRIPING IN CONFLICT WITH NEW STRIPING SHALL BE REMOVED BEFORE INSTALLING NEW STRIPING.

INSTALL RIGHT TURN PAVEMENT

MARKING ARROW

FINAL DRAFT Technical Memorandum
One Harbor Drive, Suite 300 • Sausalito, CA 94965 | 415.649.6000 | Parametrix.com DATE: May 8, 2026
TO: Nisha Patel, PE City of Gilroy
FROM: David Parisi, PE, TE; Ryan Whipple, PE, TE
SUBJECT: Charles Lux Drive and Lopez Way All Way Stop Control Analysis - Draft PROJECT NUMBER: 484-9591-004

1. Introduction & Background

1.1 Introduction & Purpose
This memorandum summarizes an All-Way Stop Control (AWSC) study conducted by Parametrix for the City of Gilroy at the intersection of Charles Lux Drive and Lopez Way.

The study was initiated following community concerns regarding traffic safety near Las Animas Elementary School, including a reported fatal collision at the study intersection in early 2026.

Due to the proximity of the intersection to the school and its role in neighborhood circulation, the City requested a formal engineering evaluation of intersection operations and safety.

The purpose of this study is to evaluate whether installation of all-way stop control is warranted at the intersection in accordance with the California Manual on Uniform Traffic Control Devices (CA MUTCD) 2026. In addition to the AWSC evaluation, the study assesses existing traffic conditions, including traffic volumes, speeds, collision history, and pedestrian activity, and identifies potential improvements to enhance safety in the surrounding school area.

Specifically, the study includes the following:
 Conduct an AWSC warrant analysis in accordance with CA MUTCD guidance  Evaluate existing traffic conditions, speeds, and multimodal activity  Review collision history for the study intersection and surrounding area  Observe pedestrian activity associated with school arrival and dismissal periods  Identify potential improvements to enhance intersection safety and visibility

1.2 Regulatory Context for School-Area Traffic Safety
Traffic safety in school-adjacent areas is governed by a combination of State law, local agency authority, and school-related operational practices. The California Vehicle Code (CVC) recognizes school zones as environments requiring enhanced safety considerations due to the presence of children, including reduced speed limits when children are present (CVC Section 22352), special crosswalk markings near schools (CVC Section 21368), and the use of crossing guards to support pedestrian safety (CVC Section 2815).

The CVC authorizes local jurisdictions to implement traffic control devices and roadway regulations to address these conditions (CVC Section 21100). However, safety outcomes in school areas are also influenced by school access, circulation patterns, and parent/guardian pick-up and drop-off behavior, which are typically managed in coordination with the school operator.

DRAFT - Technical Memorandum
City of Gilroy 484-9591-004
Charles Lux and Lopez All-Way Stop Control Analysis 2 March 31, 2026 As a result, effective safety improvements in school areas generally require coordination between the City, school district, and school administration to address both roadway conditions and schoolrelated circulation patterns. This study reflects that framework by evaluating not only intersection control, but also broader school-area operations and identifying improvements that may involve both infrastructure and operational strategies.

1.3 Project Context
The study intersection is located within the Las Animas residential neighborhood and serves as part of the local circulation network for Las Animas Elementary School. The surrounding street system includes a mix of residential collectors and local streets that accommodate school access, neighborhood traffic, and walking routes for students and families.

Although collision data for the five-year reporting period (2020–2025) indicate no reported crashes at the intersection, the recent fatal collision and community concerns prompted the City to evaluate existing conditions and consider whether additional traffic control or safety improvements are appropriate.

Charles Lux Drive functions as a neighborhood collector roadway, while Lopez Way operates as a local residential street. The intersection currently operates with STOP control on the Lopez Way approaches, with Charles Lux Drive as the uncontrolled major street.

1.4 Study Area Description
The primary study location is the intersection of Charles Lux Drive / Lopez Way (study intersection), located within the Las Animas residential neighborhood of Gilroy.

Charles Lux Drive is a residential collector roadway that generally runs east–west through the neighborhood and provides access to multiple residential streets and school access routes. The roadway is posted at 25 mph and carries the majority of through traffic within the neighborhood.

Lopez Way is a local residential street that runs north–south between Cimino Street and West Luchessa Avenue. At the study intersection, Lopez Way approaches are controlled by STOP signs, while Charles Lux Drive operates as the uncontrolled major street.

Las Animas Elementary School is located approximately 200 feet east of the intersection, and the surrounding street network experiences elevated pedestrian activity during morning school arrival and afternoon dismissal periods.

In addition to the primary study intersection, the City requested that Parametrix conduct a field review of nearby intersections within the Las Animas Elementary School circulation area to identify potential safety concerns and improvement opportunities. The following intersections were observed as part of this review:
 Charles Lux Drive / West 10th Street (roundabout)
 Charles Lux Drive / Sanchez Place
 Charles Lux Drive / Cimino Street
 Charles Lux Drive / Las Animas Elementary School driveway  Charles Lux Drive / Greenfield Drive
 Cimino Street / Las Animas Elementary School Driveway (North)

DRAFT - Technical Memorandum
City of Gilroy 484-9591-004
Charles Lux and Lopez All-Way Stop Control Analysis 3 March 31, 2026  Cimino Street / Las Animas Elementary School Driveway (Central)  Cimino Street / Las Animas Elementary School Driveway (South)  Cimino Street / West Luchessa Avenue (signalized)
 Greenfield Drive / Alta Oak Way
 Greenfield Drive / Brook Way
 Greenfield Drive / West Luchessa Avenue
 West Luchessa Avenue / West 10th Street (roundabout)
These intersections collectively form the local circulation network serving Las Animas Elementary School and surrounding residential areas.

Figure 1 illustrates the location of the study intersection of Charles Lux Drive / Lopez Way within the Las Animas residential neighborhood of Gilroy. The figure also identifies Las Animas Elementary School and nearby intersections that were reviewed as part of the school-area safety assessment.

The surrounding street network includes a mix of residential collector and local neighborhood streets that provide access to homes, the elementary school, and nearby community destinations. The study intersection is located approximately 200 feet west of Las Animas Elementary School, and several of the surrounding streets serve as primary walking and driving routes for students traveling to and from the school.

Figure 1. Study Area Vicinity Map
Google, 2026.

DRAFT - Technical Memorandum
City of Gilroy 484-9591-004
Charles Lux and Lopez All-Way Stop Control Analysis 4 March 31, 2026

1.5 Relevant Policies and Planning Context
Several City policies and planning efforts provide context for evaluating traffic safety conditions in the Las Animas neighborhood.

Neighborhood Traffic Management Program
The City of Gilroy Neighborhood Traffic Management Program (NTMP) establishes a framework for addressing neighborhood traffic concerns through a combination of education, enforcement, and engineering measures. The program emphasizes that traffic control devices such as stop signs should be installed in accordance with CA MUTCD engineering standards and should not be used solely for speed control.

Active Transportation and School Safety
The City has also identified pedestrian and bicycle safety as a priority in several planning efforts, including the City’s 2005 Trails Master Plan and 2019 Neighborhood Traffic Management Plan. The City has also identified the need to update the Trails Master Plan and develop a Pedestrian Master Plan per the 2024-2028 Capital Improvement Program. the identification of updates to the City’s updates to the City’s Bicycle and Pedestrian Plans. These planning efforts emphasize the importance of improving pedestrian connectivity and supporting Safe Routes to School initiatives.

Given the proximity of the study intersection to Las Animas Elementary School, pedestrian activity and school-related travel patterns were considered as part of this evaluation.

2. Data Collection and Methodology
To evaluate existing operations and safety conditions at the Charles Lux Drive / Lopez Way intersection, Parametrix conducted several data collection and analysis tasks. These tasks included a field review of intersection conditions, review of collision history, collection of multimodal traffic counts, and vehicle speed measurements along Charles Lux Drive.

The collected data were used to evaluate intersection conditions relative to the CA MUTCD 2026 AllWay Stop Control (AWSC) engineering study criteria and to better understand traffic patterns associated with Las Animas Elementary School.

2.1 Field Review and Observations
Parametrix staff conducted a field review of the study intersection and surrounding school area on Thursday, March 5, 2026, between approximately 7:15 AM and 3:30 PM. The field visit was conducted while Las Animas Elementary School was in session and included observation of both morning drop-off and afternoon pick-up operations.

The field review included observations at the Charles Lux Drive / Lopez Way intersection, the additional study intersections identified in Section 1, and the overall school circulation and access environment.

The field effort included sufficient staffing to allow for direct observation of operations, driver behavior, and qualitative sight distance assessment from each approach. The site visit included observation of:
 Driver behavior at the Lopez Way stop-controlled approaches and around Las Animas Elementary School

DRAFT - Technical Memorandum
City of Gilroy 484-9591-004
Charles Lux and Lopez All-Way Stop Control Analysis 5 March 31, 2026  Vehicle speeds and traffic flow along Charles Lux Drive during school arrival and dismissal periods
 Pedestrian and bicycle activity near the intersection and associated with school travel  School-related traffic patterns associated with Las Animas Elementary School  Existing traffic control devices, pavement markings, and signage  Intersection geometry, including curvature and grade
 Corner visibility, sight distance conditions, and visibility constraints  Curbside parking conditions, including parking and the use of bike lanes The field observations were used to support the evaluation of AWSC warrants, particularly Warrant B (Sight Distance) and Warrant E (Other Factors), and to inform the development of potential safety improvements.

Additional detailed observations are summarized in Section 5 – Study Area Observations.

2.2 Crash Data Review
Parametrix reviewed collision records for the study intersection using data obtained from the California Crash Reporting System (CCRS) and information provided by the City of Gilroy.

Crash data were reviewed for the five-year period from January 1, 2020 through December 31, 2025, which represents the most recent period with consistent statewide reporting data available at the time of this study.

The review included evaluation of:
 Number of collisions
 Collision types
 Severity of reported collisions
 Potential crash patterns that may be correctable through traffic control modifications The results of the collision history review are discussed in the AWSC Warrant A analysis in Section 4.

In addition to the study intersection, collision data were reviewed for the surrounding school area. A total of eight reported collisions occurred within the broader study area during the analysis period.

These included collisions involving fixed objects or parked vehicles, a bicycle-involved collision resulting in a complaint of pain injury at West Luchessa Avenue / West 10th Street, and a pedestrian-involved collision resulting in a severe injury at Viognier Way / Cimino Street. One collision involving a school bus and a parked vehicle was also reported near Charles Lux Drive / Greenfield Drive. These collisions do not form a pattern at the study intersection but provide context regarding safety conditions within the surrounding school area.

2.3 Traffic Volume Counts
Turning movement counts were conducted at the intersection of Charles Lux Drive / Lopez Way on March 5, 2026 between 7:00 AM and 7:00 PM. Counts were performed by Traffic Counts Plus and included vehicle turning movements on all intersection approaches.

Traffic volumes were summarized by 15-minute intervals and aggregated into hourly totals to identify peak traffic periods and evaluate intersection demand. The collected traffic volumes were used to