Agenda packet — Gilroy City Council, August 17, 2026 (part 2 of 5)

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EXHIBIT A

SPECIFIC PROVISIONS
I. PROJECT MANAGER
CONTRACTOR shall provide the Services as outlined in Exhibit B, (“Scope of Services”). To accomplish that end, CONTRACTOR agrees to assign Kara Hooks, who will act in the capacity of Project Manager, and who will personally direct such Services.

Except as may be specified elsewhere in this Agreement, CONTRACTOR shall furnish all technical and professional services including labor, material, equipment, transportation, supervision, and expertise to perform all operations necessary and required to complete the Services in accordance with the terms of this Agreement.

II. NOTICE TO PROCEED/COMPLETION OF SERVICE
A. NOTICE TO PROCEED
CONTRACTOR shall commence the Services upon CITY’s delivery of a written “Notice to Proceed,” from the designated CITY contact person(s) to CONTRACTOR. For purposes of this Agreement, Cindy Murphy will be the designated CITY contact person(s). The Notice to Proceed may be in the form of email, letter or fax authorizing commencement of the Services. The Notice to Proceed shall be given in accordance with Article 9.J of this Agreement or may be given by email.

B. COMPLETION OF SERVICES
When CITY determines that CONTRACTOR has completed all of the Services in accordance with the terms of this Agreement, CITY will give CONTRACTOR a written Notice of Final Acceptance. CONTRACTOR may request this Notice of Final Acceptance when, in its opinion, it has completed all of the Services as required by the terms of this Agreement and, if so requested, CITY will make a determination of completion within two (2) weeks of such request, or if CITY determines that CONTRACTOR has not completed all of such Services as required by this Agreement, CITY will so inform CONTRACTOR within this two (2) week period. CITY’s failure to make such a determination of completion within two (2) weeks shall be deemed to constitute CITY’s rejection of the Services subject to CITY’s later issuance of a Notice of Final Acceptance.

III. PAYMENT OF FEES AND DIRECT EXPENSES
Payments will be made to CONTRACTOR as provided for in Article 4 of this Agreement.

Direct expenses are charges and fees for services not included in Exhibit B. CITY will only be obligated to pay for those direct expenses that have been previously approved in writing by CITY.

CONTRACTOR must obtain written approval from CITY prior to incurring or billing for direct expenses.

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Copies of pertinent financial records, including, without limitation, invoices, must be included with the submission of billing(s) for all direct expenses.

IV. OTHER PROVISIONS
A. STANDARD OF WORKMANSHIP
CONTRACTOR represents and warrants that it has the qualifications, skills, and licenses necessary to perform the Services, and its duties and obligations, expressed and implied, contained herein, and CITY expressly relies upon CONTRACTOR’s representations and warranties regarding its skills, qualifications and licenses.

Any plans, designs, specifications, estimates, calculations, reports and other documents furnished under this Agreement shall be of a quality acceptable to CITY. The minimum criteria for acceptance will be a product of neat appearance, well-organized, technically and grammatically correct, checked and having the maker and checker identified. The minimum standard of appearance, organization and content of the drawings will be that used by CITY for similar purposes.

If such deliverables are required under this Agreement, all civil (including structural and geotechnical) engineering plans, calculations, specifications, and reports shall be prepared by, or under the responsible charge of, a licensed civil engineer and will include his or her name and license number. Interim documents will include a notation as to the intended purpose of the document, such as “preliminary” or “for review only.” All civil engineering plans and specifications that are permitted or that are to be released for construction will bear the signature and seal of that licensee and the date of signing and sealing or stamping.

B. RIGHT OF CITY TO INSPECT RECORDS OF CONTRACTOR
CITY, through its authorized employees, representatives or agents, shall have the right, at any and all reasonable times, to audit the books and records (including, without limitation, invoices, vouchers, canceled checks, time cards, etc.) of CONTRACTOR for the purpose of verifying any and all charges made by CONTRACTOR in connection with this Agreement. CONTRACTOR shall maintain for a minimum period of three (3) years from the date of final payment to CONTRACTOR, or for any longer period required by law, sufficient books and records in accordance with standard California accounting practices to establish the correctness of all charges submitted to CITY by CONTRACTOR, all of which will be made available to CITY at the CITY’s offices within five (5) business days after CITY’s request.

C. CONFIDENTIALITY OF MATERIAL
All ideas, memoranda, specifications, plans, manufacturing procedures, data (including, without limitation, computer data and source code), drawings, descriptions, documents, discussions or other information developed or received by or for CONTRACTOR and all other written and oral information submitted to CONTRACTOR in connection with the performance of this Agreement shall be held confidential by CONTRACTOR and will not, without the prior written consent of CITY, be used for any purposes other than the performance of the Services, nor be disclosed to an entity not connected with the performance of the such Services. Nothing furnished to

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CONTRACTOR which is otherwise known to CONTRACTOR or which becomes generally known to the related industry (other than that which becomes generally known as the result of CONTRACTOR’s disclosure thereof) will be deemed confidential. CONTRACTOR shall not use CITY’s name or insignia, or distribute publicity pertaining to the Services rendered under this Agreement in any magazine, trade paper, newspaper or other medium without the express written consent of CITY.

D. NO PLEDGING OF CITY’S CREDIT.

Under no circumstances will CONTRACTOR have the authority or power to pledge the credit of CITY or incur any obligation in the name of CITY.

E. OWNERSHIP OF MATERIAL.

All material including, without limitation, computer information, data and source code, sketches, tracings, drawings, plans, diagrams, quantities, estimates, specifications, proposals, tests, maps, calculations, photographs, reports and other material developed, collected, prepared (or caused to be prepared) under this Agreement (“Materials”) shall be provided to CITY upon its request (whether during or after the term of this Agreement), but CONTRACTOR may retain and use copies thereof subject to Section IV.C above. Upon delivery to CITY, any Materials delivered shall become the property of the CITY, but they shall remain the property of CONTRACTOR prior to the delivery thereof.

CONTRACTOR represents and warrants to CITY that none of the Materials infringes any patent, copyright, trademark, trade secret, or any other intellectual property right of any third-party, and any claims arising out of an actual or alleged breach of this representation and warranty shall be subject to CONTRACTOR’s obligations pursuant to Article 5.D.

Upon delivery to CITY, CITY shall not be limited in any way in its use of the Materials at any time for any work, whether or not associated with the Services rendered under this Agreement.

However, CONTRACTOR will not be responsible for, and City will indemnify CONTRACTOR from, damages resulting from the use of the Materials for work other than for the Services, including, without limitation, the release of Materials to third parties for work other than on the Services rendered under this Agreement.

F. FEDERAL OR STATE FUNDING REQUIREMENTS.
☐ If the box to the left of this sentence is checked, this Agreement involves Federal or State funding and the requirements of this Section IV.F, below, apply.

1. DBE Program
CONTRACTOR shall comply with the requirements of Title 49, Part 26, Code of Federal Regulations (49 CFR 26) and the City-adopted Disadvantaged Business Enterprise programs.

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2. Cost Principles
Federal Acquisition Regulations in Title 48, CFR 31, will be used to determine the allowable cost for individual items.

3. Covenant against Contingent Fees
The CONTRACTOR warrants that he/she has not employed or retained any company or person, other than a bona fide employee working for the CONTRACTOR, to solicit or secure this Agreement, and that he/she has not paid or agreed to pay any company or person, other than a bona fide employee, any fee, commission, percentage, brokerage fee, gift or any other consideration, contingent upon or resulting from the award or formation of this Agreement. For breach or violation of this warranty, CITY shall have the right to annul this Agreement without liability or, at its discretion, to deduct from the price or consideration specified in this Agreement, or otherwise recover, the full amount of such fee, commission, percentage, brokerage fee, gift or other consideration.

4. Byrd Anti-Lobbying Amendment
If the maximum amount of this Agreement exceeds One Hundred Thousand and No/100 Dollars ($100,000.00), CONTRACTOR shall comply with the provisions of 31 U.S.C. § 1352.

5. Additional Federal Requirements
If applicable, CONTRACTOR shall comply with the requirements of Title 37, Part 401, Code of Federal Regulations (34 CFR 401), “Rights to Inventions Made by Nonprofit Organizations and Small Businesses Under Government Grants, Contracts and Cooperative Agreements,” the Clean Water Act (42 U.S.C. § 7401, et seq.), the Federal Water Pollution Control Act (33 U.S.C. § 1251, et seq.), and any orders and regulations pursuant thereto. CONTRACTOR has read and understands the provisions of Appendix II, Title 2, Part 200, Code of Federal Regulations (2 CFR 200, Appx. II), “Contract Provisions for Non-Federal Entity Contracts Under Federal Awards,” which are incorporated herein by reference as though fully set forth.

G. PREVAILING WAGE REQUIREMENTS.

If this Agreement is subject to the payment of prevailing wages pursuant to Section A of Article 5, the following requirements apply:

1. Payment of Prevailing Wages
CONTRACTOR and all subcontractors shall pay workers per diem wages in an amount that is no less than the applicable prevailing wage rate.

2. Prevailing Wage Rates
The prevailing wage rate of per diem wages is available online at the following website:
https://www.dir.ca.gov/OPRL/DPreWageDetermination.htm. CONTRACTOR and all

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subcontractors shall post a copy of the prevailing wage rate of per diem wages at each job site and shall make them available to any interested party upon request.

3. Penalties for Violations
CONTRACTOR and all subcontractors shall comply with Labor Code Section 1775 in the event a worker is paid less than the prevailing wage rate for the work or craft in which the worker is employed. This shall be in addition to any other applicable penalties allowed under Labor Code Sections 1720 through 1861.

4. Payroll Records
CONTRACTOR and all subcontractors shall comply with Labor Code Section 1776, which generally requires keeping accurate payroll records, verifying and certifying payroll records, and making them available for inspection. CONTRACTOR and all subcontractors shall also furnish records specified in Labor Code Section 1776 directly to the Labor Commissioner in the manner required by Labor Code Section 1771.4.

5. Apprentices
CONTRACTOR and all subcontractors shall comply with Labor Code Sections 1777.5, 1777.6, and 1777.7 concerning the employment and wages of apprentices. CONTRACTOR shall ensure their subcontractors comply with Labor Code Section 1777.5, and CONTRACTOR may be subject to penalties for their subcontractors’ non-compliance with Labor Code Section 1777.5 pursuant to the standards enumerated in Labor Code Section 1777.7.

6. Working Hours
CONTRACTOR and all subcontractors shall comply with Labor Code Sections 1810 through 1815, including but not limited to restricting working hours on public works contracts to eight (8) hours a day

7. Contractor and Subcontractor Registration Requirements CONTRACTOR and all subcontractors shall not be qualified to bid on, be listed in a bid or proposal, subject to the requirements of Public Contract Code Section 4104, or engage in the performance of any contract for public work, as defined in this chapter, unless currently registered and qualified to perform public work pursuant to Labor Code Section 1725.5. It is not a violation of this section for an unregistered contractor to submit a bid that is authorized by Business and Professions Code Section 7029.1 or by Public Contract Code Sections 10164 and 20103.5, provided the contractor is registered to perform public work pursuant to Labor Code Section 1725.5 at the time the contract is awarded.

8. Compliance Monitoring and Enforcement
This Agreement and the Services provided thereunder are subject to compliance monitoring and enforcement by the Department of Industrial Relations.

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EXHIBIT B

SCOPE OF SERVICES
See attached "APPENDIX B | SCOPE OF SERVICES"

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EXHIBIT C

MILESTONE SCHEDULE
To be discussed, agreed upon, or directed by the City.

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EXHIBIT D

PAYMENT SCHEDULE
Services will be billed according to the rates agreed as shown on "APPENDIX D | PAYMENT SCHEDULE". Projected total cost not to exceed $130,000.00 annually.

Subject to any limitations set forth in this Agreement, City agrees to pay Contractor the amounts specified in Appendix D | PAYMENT SCHEDULE and made a part of this Agreement by this reference. The total compensation, including reimbursement for actual expenses, shall not exceed $130,000 annually unless additional compensation is approved in writing in accordance with Article 1 “Term of Agreement” or Article 9.A “Amendment & Modification” of this Agreement.

Payment shall be made in accordance with City’s usual accounting procedures upon receipt and approval of an itemized invoice setting forth the services performed. The invoices shall be delivered to City at the address set forth in Article 9.J. “Notices” hereof. Under no circumstances shall the total amount paid to Contractor under this Agreement exceed the City Manager’s authority under City of Gilroy Municipal Code Section 703 without prior approval by the City Council.

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EXHIBIT E
INSURANCE [Professional Services]
CONTRACTOR shall procure and maintain for the duration of the Agreement, and for additional time if required below, insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the CONTRACTOR, its agents, representatives, or employees, including any subcontractors.

Minimum Scope of Insurance
Coverage shall be at least as broad as:

1. Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering CGL on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $2,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.

2. Automobile Liability: Insurance Services Office Form Number CA 00 01 covering Code 1 (any auto), or if CONTRACTOR has no owned autos, Code 8 (hired) and 9 (non-owned), with limit no less than $1,000,000 per accident for bodily injury and property damage.

3. Workers’ Compensation insurance as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limit of no less than $1,000,000 per accident for bodily injury or disease.

4. Professional Liability (Errors and Omissions) Insurance appropriate to the CONTRACTOR’s profession, with limit no less than $2,000,000 per occurrence or claim, $2,000,000 aggregate.

If CONTRACTOR maintains broader coverage and/or higher limits than the minimums shown above, CITY requires and shall be entitled to the broader coverage and/or the higher limits maintained by CONTRACTOR. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to CITY.

Other Insurance Provisions
The insurance policies are to contain, or be endorsed to contain, the following provisions:

Additional Insured Status
CITY, its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the CONTRACTOR including materials, parts, or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to

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the CONTRACTOR’s insurance (at least as broad as ISO Form CG 20 10 11 85 or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37).

Primary Coverage
For any claims related to this Agreement, the CONTRACTOR’s insurance coverage shall be primary and non-contributory and at least as broad as ISO CG 20 01 12 19 in regards to CITY, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the CITY, its officers, officials, employees, or volunteers shall be excess of the CONTRACTOR’s insurance and shall not contribute with it. This requirement shall also apply to any Excess or Umbrella liability policies.

Umbrella or Excess Policy
CONTRACTOR may use Umbrella or Excess Policies to provide the liability limits as required in this Agreement. The policies shall be provided on a true “following form” coverage basis, with coverage at least as broad as provided on the underlying Commercial General Liability insurance.

Notice of Cancellation
Each insurance policy required above shall provide that coverage shall not be canceled, except with notice to CITY.

Waiver of Subrogation
CONTRACTOR hereby grants to CITY a waiver of any right to subrogation which any insurer of said CONTRACTOR may acquire against CITY by virtue of the payment of any loss under such insurance. CONTRACTOR agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not CITY has received a waiver of subrogation endorsement from the insurer.

Self-Insured Retentions
Self-insured retentions must be declared to and approved by CITY. CITY may require CONTRACTOR to purchase coverage with a lower retention or provide proof of ability to pay losses and related expenses within the retention. The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or CITY.

Acceptability of Insurers
Insurance is to be placed with insurers authorized to conduct business in the state with a current A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to the CITY.

Claims Made Policies
If any of the required policies provide claims-made coverage:

1. The Retroactive Date must be shown and must be before the date of the Agreement or the beginning of work pursuant thereto.

2. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract of work.

3. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a Retroactive Date prior to the contract effective date,

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CONTRACTOR must purchase “extended reporting” coverage for a minimum of five (5) years after completion of work.

Verification of Coverage
CONTRACTOR shall furnish CITY with original certificates and amendatory endorsements or copies of the applicable policy language effecting coverage required by this clause. All required documents are to be received and approved by CITY before work commences. However, failure to obtain the documents prior to the work beginning shall not waive CONTRACTOR’s obligation to provide them. CITY reserves the right to require complete, certified copies of all required insurance policies, including endorsements, at any time.

Subcontractors
CONTRACTOR shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein, and CONTRACTOR shall ensure that CITY is an additional insured on insurance required from subcontractors.

Duration of Coverage
CGL & Excess liability policies for any construction-related work, including, but not limited to, maintenance, service, or repair work, shall continue coverage for a minimum of five (5) years for Completed Operations liability coverage. Such Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract of work.

Special Risks or Circumstances
CITY reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.

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APPENDIX B | SCOPE OF SERVICES
The Investment Advisor shall be a registered Investment Advisory as defined and regulated by the Securities and Exchange Commission (“SEC”) and shall be registered in the State of California. The Investment Advisor shall be either independent of any financial institution and/or securities brokerage firm relevant to the firm’s relationship with the entity.

Specific services, although not all-inclusive, to be performed are as follows:
• Provide full-time, discretionary investment management services. • Assist the City with cash flow/maturity analysis.
• Provide credit analysis of investment instruments in portfolio and rebalance the City’s portfolio as necessary.
• Provide technical and fundamental market research, including but not limited to yield curve analysis.
• Provide detailed monthly reports of investment portfolio activity, performance, holding by type, maturity, broker, duration, and benchmark comparable. • Provide separate quarterly and annual portfolio performance reports based on the City’s fiscal year.
• Attend quarterly meetings (in person or via teleconference) with City’s Director of Finance, City Treasurer, Finance Department staƯ, and with City’s Investment Committee.
• Evaluate market risk and develop strategies that minimize the impact on the portfolio.
• Provide assurance of portfolio compliance with all federal and state of California laws as well as ordinances, resolutions and the City’s investment Policy relating to the investment of public funds.
• Establish an appropriate performance benchmark.
• Ensure that the portfolio structure matches the City’s objectives. • Annually review the City’s Investment Policy and make recommendations for changes as appropriate.
• Assist the City in establishing and maintaining an authorized broker/dealer list pursuant to the Investment Policy.
• Perform due diligence reviews of current and proposed broker/dealers. • Monitor the creditworthiness of financial institutions and investments in the portfolio.
• Cooperate with the City’s independent outside audit firm. Provide schedules and analysis as requested by the City’s outside auditors for ACFR preparation. • Provide periodic training to staƯ on investment-related topics. • Provide other investment advisory services as requested.

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Investment practices and procedures must comply with state law and the City’s Investment Policy. The investment advisory firm will be expected to perform to the Prudent Expert Standard.

In determining individual investment objective is to achieve a reasonable rate of return, the following factors shall be considered in priority order: safety first, liquidity second, and yield third.

The City’s primary investment objective is to achieve a reasonable rate of return on public funds while minimizing the potential for capital losses arising from market changes or issuer default. Although the generations of revenue through interest earning on investments is an appropriate City goal, the primary consideration in the investment of the City funds is capital preservation in the overall portfolio. As such, the City’s generation of income, which could expose the city to unacceptable levels of risk.

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APPENDIX D | PAYMENT SCHEDULE
Chandler to provide comprehensive, investment management and advisory services to the City as described herein in the City's Scope of Services in accordance with the following fee schedule:

Assets Under Management Annual Asset Management Fee
First $50 million 0.09 of 1% (9 basis points)
Next $50 million 0.06 of 1% (6 basis points)
Over $100 million 0.04 of 1% (4 basis points)
Chandler charges management fees only on assets directly under our management. All fees are firm for the entire initial contract term and the City will not be subject to any increases during this period. Fees are charged in arrears.

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5.2. City of Gilroy

STAFF REPORT
Agenda Item Title: Acceptance of Cash and Investment Report as of June 30, 2026
Meeting Date: August 17, 2026
From: Matt Morley, City Administrator
Department: Finance
Submitted by: Cindy Murphy, Finance Director
Prepared by: Cindy Murphy, Finance Director
STRATEGIC PLAN GOALS: Develop a Financially Resilient Organization

RECOMMENDATION
Accept and file the cash and investment report as of June 30, 2026.

BACKGROUND
The quarterly investment reports are prepared pursuant to the City's investment policy to keep the City Council apprised of the City's investment activities.

ANALYSIS
As of June 30, 2026, the City's cash and investments totaled $211.7 million, of which primary investments include: $33.9 million in the Local Agency Investment Fund (LAIF), $100.8 million in US Treasury securities, $32.8 million in other Federal Agency nonamortized, and $28.7 million in the California CLASS PRIME Fund.

In addition, there is approximately $15.5 million in cash, of which $14.3 million is held by Fiscal Agents in the Trustee capacity for various bond issues, including bond proceeds, debt service reserves, bond principal and interest payments, and other postemployment benefits (OPEB) and pensions. $6.6 million of this balance held by fiscal agents consists of the City of Gilroy's share of the Acquisition and Construction Funds for the SCRWA Plant Expansion Project, and the remaining portion primarily consists of the Section 115 Trusts for OPEB and pension ($7.5 million). The fiscal year-to-date

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5.2. interest earnings are $7.34 million, including accrued interest and amortization of the discount on the securities held, with an effective rate of return of 3.97%, excluding monies held with fiscal agents.

ALTERNATIVES
None.

FISCAL IMPACT/FUNDING SOURCE
There are no direct fiscal impacts to receiving and filing the quarterly cash and investment report. This activity is included in the Finance Department's annual work plan.

Attachments:

1. Investment Report 06-30-2026_Signed 7.30.2026

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City of Gilroy
Investment Report
june 2026

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TABLE OF CONTENTS

1. PORTFOLIO SUMMARY REPORT.......................................................................................... 1 - 3

2. INVESTMENTS BY ISSUER REPORT................................................................................... 4 - 6 3 INVESTMENT ACTIVITY…………………………………………………………………………….. 7 - 8

4. QUARTERLY MOVEMENT OVER THE LAST TWELVE MONTHS........................................ 9

5. MOVEMENT OVER THE LAST TWO YEARS - GRAPHICAL PRESENTATION.................... 10

6. INVESTMENT PORTFOLIO - GRAPHICAL PRESENTATION................................................ 11 - 12

7. INTEREST EARNINGS: FISCAL YEARS 2016 - 2026............................................................ 13

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City of Gilroy
7351 Rosanna Street
Gilroy, CA 95020
(408)846-0218
City of Gilroy
Portfolio Management
Portfolio Summary
June 30, 2026
% of
Portfolio
Book
Value Investments
Market
Value
Par
Value
Days to
Term Maturity
YTM
365 Equiv.
33,945,795.63 33,945,795.63 33,945,795.63 17.30 1 1 3.810 32,850,000.00 32,763,627.50 32,850,000.00 16.74 651 497 3.965 100,773,400.00 100,502,280.46 100,751,760.14 51.34 454 242 3.740 28,692,568.22 28,692,568.22 28,692,568.22 14.62 1 1 3.700 196,240,123.99 100.00%
LAIF
Federal Agency Non-Amortized
Treasury Notes Securities
California Class
Investments
196,261,763.85 195,904,271.81 343 208 3.784
15,501,524.54 15,501,524.54 15,501,524.54 1 1 0.000
211,741,648.53
Cash
Passbook/Checking
(not included in yield calculations)
Total Cash and Investments 211,763,288.39 211,405,796.35 343 208 3.784 June 30 Fiscal Year To Date
7,333,787.93
Fiscal Year Ending
603,791.27
207,836,407.56
7,333,787.93
199,017,669.49

3.53% 3.68%
Total Earnings Month Ending

4.01%
Current Year
Average Daily Balance
Effective Rate of Return
6 Month T-Bill Benchmark:

NOTES:

1. Fiscal Year To Date Effective Rate of Return without Monies held with Fiscal Agents = 3.97%

2. The Maturity Aging Factor of the City's Portfolio = 6.93 months.

3. The unrealized loss resulting from an increase in Market Values obtained from U.S. Bank of all Securities (excluding LAIF) = $335,852

4. The LAIF balance shown includes $6,051,058 in bond proceeds from the Gilroy Library 2010 Bonds that can be used exclusively for the construction of the library.

This is to certify that this schedule of investments is in compliance with the City of Gilroy's investment policy and that there are adequate funds available to meet the City's budgeted and actual expenses for the next six months.
__________________________________________________ ____________________ Cindy Murphy, Finance Director
Reporting period 07/01/2025-06/30/2026

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July 30, 2026

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Par Value Book Value
Maturity
Date
Stated
Market Value Rate
Average
Balance Issuer
City of Gilroy
Portfolio Management
Portfolio Details - Investments
June 30, 2026
Days to
Maturity
YTM
CUSIP Investment # 365
Purchase
Date
LAIF
SYSLAIF01 LAIF01 LAIF - City of Gilroy 18,685,215.59 18,685,215.59 18,685,215.59 3.810 3.810 1 SYSLAIF03 LAIF03 LAIF - Industrial Dev. Auth. 9,209,522.46 9,209,522.46 9,209,522.46 3.810 3.810 1 LAIF05 LAIF05 LAIF LIBRARY 6,051,057.58 6,051,057.58 6,051,057.58 3.810 3.810 1 Subtotal and Average 30,305,795.63 33,945,795.63 33,945,795.63 33,945,795.63 3.810 1 Federal Agency Non-Amortized
3130B8D25 USB-32 Federal Home Loan Bank Board 10/31/2025 12,850,000.00 12,826,227.50 12,850,000.00 3.755 3.755 300 04/27/2027 3130BA3N5 USB-38 Federal Home Loan Bank Board 03/26/2026 20,000,000.00 19,937,400.00 20,000,000.00 4.100 4.101 624 03/16/2028 Subtotal and Average 32,850,000.00 32,850,000.00 32,763,627.50 32,850,000.00 3.965 497 Treasury Notes Securities
91282CLB5 USB-30 U. S. TREASURY NOTES 04/30/2025 9,910,000.00 9,915,153.20 9,914,241.57 4.375 3.833 30 07/31/2026 91282CLS8 USB-31 U. S. TREASURY NOTES 07/31/2025 20,246,400.00 20,257,737.98 20,253,021.06 4.125 4.019 122 10/31/2026 91282CMH1 USB-33 U. S. TREASURY NOTES 10/31/2025 8,328,000.00 8,333,163.36 8,353,287.53 4.125 3.586 214 01/31/2027 91282CLB5 USB-34 U. S. TREASURY NOTES 10/31/2025 9,369,000.00 9,373,871.88 9,374,422.69 4.375 3.650 30 07/31/2026 91282CMY4 USB-35 U. S. TREASURY NOTES 02/02/2026 6,783,000.00 6,764,957.22 6,793,657.06 3.750 3.552 303 04/30/2027 91282CNP2 USB-36 U. S. TREASURY NOTES 02/02/2026 13,676,000.00 13,637,023.40 13,720,220.40 3.875 3.566 395 07/31/2027 91282CMH1 USB-37 U. S. TREASURY NOTES 02/04/2026 11,431,000.00 11,438,087.22 11,467,795.02 4.125 3.561 214 01/31/2027 91282CAD3 USB-39 U. S. TREASURY NOTES 04/30/2026 6,049,000.00 5,810,124.99 5,832,860.10 0.375 3.781 395 07/31/2027 91282CFU0 USB-40 U. S. TREASURY NOTES 04/30/2026 14,981,000.00 14,972,161.21 15,042,254.71 4.125 3.806 487 10/31/2027 Subtotal and Average 100,757,447.48 100,773,400.00 100,502,280.46 100,751,760.14 3.740 242 CLASS 28,692,568.22 28,692,568.22 28,692,568.22 3.700 3.700 California Class
CLASS PRIME 1
28,608,494.82 28,692,568.22 28,692,568.22 28,692,568.22 3.700 California Class!
Subtotal and Average 1
Total and Average 207,836,407.56 196,261,763.85 195,904,271.81 196,240,123.99 3.784 208

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Par Value Book Value
Stated
Market Value Rate
Average
Balance Issuer
City of Gilroy
Portfolio Management
Portfolio Details - Cash
June 30, 2026
Days to
Maturity
YTM
CUSIP Investment # 365
Purchase
Date
07/01/2025 6,563,708.84 6,563,708.84 6,563,708.84 0.000 Monies Held by Fiscal Agents
WASTEWATER BOND! CONSTRUCTION! U. S. BANK 1
LEASE REV 2020A INT FUND U. S. BANK 07/01/2025 142.70 142.70 142.70 0.000 1 LEASE REV 2022A INTE FUND U. S. BANK 07/01/2025 123.63 123.63 123.63 0.000 1 LEASE REV 2020A PRIN FUND U. S. BANK 07/01/2025 458.74 458.74 458.74 0.000 1 LEASE REV 2022A PRINC FUND U. S. BANK 07/01/2025 831.48 831.48 831.48 0.000 1 WASTEWATER BOND PYMT FUND U. S. BANK 07/01/2025 637.07 637.07 637.07 0.000 1 CFD HWY 152 RESERVE FUND U. S. BANK 07/01/2025 293,753.26 293,753.26 293,753.26 0.000 1 LEASE REV 2020A REVENUE FUND U. S. BANK 07/01/2025 2.84 2.84 2.84 0.000 1 CFD HWY 152 SPECIAL TAX U. S. BANK 07/01/2025 5,520.55 5,520.55 5,520.55 0.000 1 Section 115 Trust Held by PARS
OPEB OPEB Public Agency Retirement Servi 07/01/2025 1,535,850.36 1,535,850.36 1,535,850.36 0.000 1 PENSION PENSION Public Agency Retirement Servi 07/01/2025 5,925,653.99 5,925,653.99 5,925,653.99 0.000 1 WELLS FARGO WELLS FARGO 979,632.25 979,632.25 979,632.25 0.000 Wells Fargo Checking
SYSWFB 1
Other Banks-Misc.Account-Petty Cash
SYSUNDERCOV UNDERCOV CHASE BANK 07/01/2025 698.30 698.30 698.30 0.000 1 SYS/MUFG MUFG MUFG / UNION BANK 07/01/2025 0.00 0.00 0.00 0.000 1 SYSPETTY PETTY PETTY CASH 07/01/2025 1,900.00 1,900.00 1,900.00 0.000 1 SYS/USBANK USB-CASH U. S. BANK 07/01/2025 21,488.93 21,488.93 21,488.93 0.000 1 SYSBAIL BAIL WELLS FARGO 07/01/2025 0.00 0.00 0.00 0.000 1 SYSDISCOVERY DISCOVERY WELLS FARGO 07/01/2025 147,397.08 147,397.08 147,397.08 0.000 1 SYSICS ICS WELLS FARGO 07/01/2025 22,129.52 22,129.52 22,129.52 0.000 1 SYSWORKING WORKING WORKING CASH 07/01/2025 1,595.00 1,595.00 1,595.00 0.000 1

0.00 207,836,407.56 211,763,288.39 3.784 208
Average Balance 1
Total Cash and Investments 211,405,796.35 211,741,648.53

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City of Gilroy
7351 Rosanna Street
Gilroy, CA 95020
(408)846-0218
City of Gilroy
Investments by Issuer
Active Investments
Sorted by Type
June 30, 2026
Market
Market Value Date
Redemption
Security Type Date
Current
Rate
Call
CUSIP Date Collateral Investment #
Investment
Class
YTM
365 Book Value

CHASE BANK
SYSUNDERCOV UNDERCOV 698.30 698.30 06/30/2026 1
698.30 698.30
Other Banks-Misc.Account-Petty Cash Fair
Subtotal and Average 1
CLASS 28,692,568.22
California Class
CLASS PRIME California Class 28,692,568.22 3.700 06/30/2026 3.700 1 28,692,568.22 28,692,568.22 3.700
Fair
Subtotal and Average 1
Federal Home Loan Bank Board
3130B8D25 USB-32 Federal Agency Non-Amortized Fair 12,850,000.00 3.755 12,826,227.50 06/30/2026 3.755 04/27/2027 300 07/27/2026 3130BA3N5 USB-38 Federal Agency Non-Amortized Fair 20,000,000.00 4.100 19,937,400.00 06/30/2026 4.101 03/16/2028 624 03/16/2027 Subtotal and Average 32,850,000.00 32,763,627.50 3.965 497 LAIF01 18,685,215.59
LAIF - City of Gilroy
SYSLAIF01 LAIF 18,685,215.59 3.810 06/30/2026 3.810 1
18,685,215.59 18,685,215.59 3.810
Fair
Subtotal and Average 1
9,209,522.46
LAIF - Industrial Dev. Auth.

SYSLAIF03 LAIF03 LAIF 9,209,522.46 3.810 06/30/2026 3.810 1 9,209,522.46 9,209,522.46 3.810
Fair
Subtotal and Average 1

LAIF LIBRARY
LAIF05 LAIF05 LAIF 6,051,057.58 3.810 6,051,057.58 06/30/2026 3.810 1 6,051,057.58 6,051,057.58 3.810
Fair
Subtotal and Average 1
MUFG 0.00

MUFG / UNION BANK
SYS/MUFG 0.00 1

0.00 0.00
Other Banks-Misc.Account-Petty Cash Fair
Subtotal and Average
Public Agency Retirement Servi
OPEB OPEB Section 115 Trust Held by PARS Fair 1,535,850.36 1,535,850.36 06/30/2026 1 PENSION PENSION Section 115 Trust Held by PARS Fair 5,925,653.99 5,925,653.99 06/30/2026 1

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Market
Market Value Date
Redemption
Security Type Date
Current
Rate
Call
Date Collateral
City of Gilroy
Investments by Issuer
Sorted by Type
CUSIP Investment #
Investment
Class
YTM
365 Book Value
Subtotal and Average 7,461,504.35 7,461,504.35 1

PETTY CASH
SYSPETTY PETTY 1,900.00 1,900.00 06/30/2026 1
1,900.00 1,900.00
Other Banks-Misc.Account-Petty Cash Fair
Subtotal and Average 1
6,563,708.84 1
U. S. BANK
WASTEWATER BOND CONSTRUCTION Monies Held by Fiscal Agents Fair 6,563,708.84 06/30/2026 LEASE REV 2020A INT FUND Monies Held by Fiscal Agents Fair 142.70 142.70 06/30/2026 1 LEASE REV 2022A INTE FUND Monies Held by Fiscal Agents Fair 123.63 123.63 06/30/2026 1 LEASE REV 2020A PRIN FUND Monies Held by Fiscal Agents Fair 458.74 458.74 06/30/2026 1 LEASE REV 2022A PRINC FUND Monies Held by Fiscal Agents Fair 831.48 831.48 06/30/2026 1 WASTEWATER BOND PYMT FUND Monies Held by Fiscal Agents Fair 637.07 637.07 06/30/2026 1 CFD HWY 152 RESERVE FUND Monies Held by Fiscal Agents Fair 293,753.26 293,753.26 06/30/2026 1 LEASE REV 2020A REVENUE FUND Monies Held by Fiscal Agents Fair 2.84 2.84 06/30/2026 1 CFD HWY 152 SPECIAL TAX Monies Held by Fiscal Agents Fair 5,520.55 5,520.55 06/30/2026 1 SYS/USBANK USB-CASH Other Banks-Misc.Account-Petty Cash Fair 21,488.93 21,488.93 06/30/2026 1 Subtotal and Average 6,886,668.04 6,886,668.04 1
U. S. TREASURY NOTES
91282CLB5 USB-30 Treasury Notes Securities Fair 9,914,241.57 4.375 9,915,153.20 06/30/2026 3.833 07/31/2026 30 91282CLS8 USB-31 Treasury Notes Securities Fair 20,253,021.06 4.125 20,257,737.98 06/30/2026 4.019 10/31/2026 122 91282CMH1 USB-33 Treasury Notes Securities Fair 8,353,287.53 4.125 8,333,163.36 06/30/2026 3.586 01/31/2027 214 91282CLB5 USB-34 Treasury Notes Securities Fair 9,374,422.69 4.375 9,373,871.88 06/30/2026 3.650 07/31/2026 30 91282CMY4 USB-35 Treasury Notes Securities Fair 6,793,657.06 3.750 6,764,957.22 06/30/2026 3.552 04/30/2027 303 91282CNP2 USB-36 Treasury Notes Securities Fair 13,720,220.40 3.875 13,637,023.40 06/30/2026 3.566 07/31/2027 395 91282CMH1 USB-37 Treasury Notes Securities Fair 11,467,795.02 4.125 11,438,087.22 06/30/2026 3.561 01/31/2027 214 91282CAD3 USB-39 Treasury Notes Securities Fair 5,832,860.10 0.375 5,810,124.99 06/30/2026 3.781 07/31/2027 395 91282CFU0 USB-40 Treasury Notes Securities Fair 15,042,254.71 4.125 14,972,161.21 06/30/2026 3.806 10/31/2027 487 Subtotal and Average 100,751,760.14 100,502,280.46 3.740 242

WELLS FARGO
SYSWFB WELLS FARGO Wells Fargo Checking Fair 979,632.25 979,632.25 06/30/2026 1 SYSBAIL BAIL Other Banks-Misc.Account-Petty Cash Fair 0.00 0.00 1 SYSDISCOVERY DISCOVERY Other Banks-Misc.Account-Petty Cash Fair 147,397.08 147,397.08 06/30/2026 1 SYSICS ICS Other Banks-Misc.Account-Petty Cash Fair 22,129.52 22,129.52 06/30/2026 1

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WORKING CASH
SYSWORKING 1,595.00 06/30/2026 1
1,595.00 1,595.00
Other Banks-Misc.Account-Petty Cash Fair
Subtotal and Average 1
Total and Average 211,741,648.53 211,405,796.35 3.507 192

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City of Gilroy
7351 Rosanna Street
Gilroy, CA 95020
(408)846-0218
City of Gilroy
Purchases Report
Sorted by Type - Type
April 1, 2026 - June 30, 2026
Original
Par Value
Ending
Book Value
Sec.

Type Type
Maturity
YTM
Accrued Interest
CUSIP Investment # Issuer Payment Periods at Purchase Date Purchase
Date
Principal
Purchased
Rate at
Purchase

NOT CALLABLE
91282CAD3 USB-39 NOT TRC USTN 6,049,000.00 04/30/2026 07/31 - 01/31 5,798,934.34 5,576.94 0.375 07/31/2027 3.781 5,832,860.10 91282CFU0 USB-40 NOT TRC USTN 14,981,000.00 04/30/2026 10/31 - 04/30 15,050,053.05 4.125 10/31/2027 3.806 15,042,254.71 Subtotal 21,030,000.00 20,848,987.39 5,576.94 20,875,114.81 Total Purchases 21,030,000.00 20,848,987.39 5,576.94 20,875,114.81

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City of Gilroy
7351 Rosanna Street
Gilroy, CA 95020
(408)846-0218
City of Gilroy
Maturity Report
Sorted by Maturity Date
Amounts due during April 1, 2026 - June 30, 2026
Rate
Par Value at Maturity
Sec.

Type Type
Maturity
Date
Maturity
Interest Proceeds Income
Net
CUSIP Investment # Issuer
Purchase
Date
Book Value
at Maturity
91282CBW0 USB-27 NOT TRC USTN 20,000,000.00 04/30/2026 01/31/2025 0.750 20,000,000.00 75,000.00 20,075,000.00 75,000.00 Total Maturities 20,000,000.00 20,000,000.00 75,000.00 20,075,000.00 75,000.00

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DESCRIPTION Sep Dec Mar Jun % of Total
2025 2025 2026 2026 Jun
LAIF:

CITY OF GILROY 20,484,576 21,642,810 10,134,188 18,685,216 9.52% GILROY INDUSTRIAL DEV AGENCY 8,927,205 9,024,725 9,120,149 9,209,522 4.69% GILROY LIBRARY 2010 BOND 5,865,563 5,929,637 5,992,335 6,051,058 3.08% SUB TOTAL 35,277,345 36,597,172 25,246,672 33,945,796 17.30% CALIFORNIA CLASS 27,884,665 28,169,198 28,429,773 28,692,568 14.62% US GOVERNMENTAL AGENCIES:

FEDERAL AGENCY NON-AMORTIZED 21,250,000 24,100,000 32,850,000 32,850,000 16.74% TREASURY NOTES SECURITIES 89,208,746 87,519,113 99,897,477 100,751,760 51.34% SUB TOTAL 110,458,746 111,619,113 132,747,477 133,601,760 68.08% GRAND TOTAL (Book Value) 173,620,756 176,385,482 186,423,922 196,240,124 100.00% Quarterly Movement of Investments over the Last 4 Quarters

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0 20,000,000
40,000,000
60,000,000
80,000,000
100,000,000
120,000,000
140,000,000
160,000,000
180,000,000
200,000,000
June
2024
September
2024
December
2024
March
2025
June
2025
September
2025
December
2025
March
2026
June
2026
City of Gilroy
Investments From:

June 30, 2024 to June 30, 2026
LAIF CALIFORNIA CLASS US GOVT. AGENCIES

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LAIF, $34M, 16%
California Class, $29M, 13%
Federal Agency NonAmortized, $33M, 15%
Treasury Notes Securities,
$101M, 48%
Monies Held with Fiscal
Agents, $7M, 3%
OPEB - Sec 115 Trust,
$2M, 1%
Pension - Sec 115 Trust,
$6M, 3%
Cash or Equivalent, $1M, 1%
Book Value by Investment Type
As of June 30, 2026
Value of Portfolio: $211,741,649

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LAIF, CA Class, Bank Checking
Accounts, $64M, 30%
Monies Held with Fiscal Agent,
$7M, 3%
Section 115 Trust Held by PARS,
Short Term (less than 1 year), $7M, 4%
$79M, 37%
Medium Term (1 to 5 years),
$55M, 26%
Value of Portfolio: $211,741,649
Portfolio By Maturity
As of June 30, 2026

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0 1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
15/16 16/17 17/18 18/19 19/20 20/21 21/22 22/23 23/24 24/25 25/26 Interest Earnings
Fiscal Years
City of Gilroy
Interest Earnings FY2016 - FY2026

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6.4. City of Gilroy

STAFF REPORT
Agenda Item Title: Approve the Sixth Amendment to the Tree Pruning and Maintenance Services Agreement with West Coast Arborists, Inc.

Meeting Date: August 17, 2026
From: Matt Morley, City Administrator
Department: Public Works
Submitted by: John Doughty, Public Works Director
Prepared by: Bryan Rodriguez, Management Analyst Trainee STRATEGIC PLAN GOALS: Ensure Neighborhood Equity from City Services Maintain and Improve City Infrastructure

RECOMMENDATION
Approve the Sixth Amendment to the Tree Pruning and Maintenance Services Agreement with West Coast Arborists, Inc.; extending the agreement through December 31, 2026; increasing the contract's not-to-exceed amount by $233,429, from $2,097,350 to $2,330,779; and authorizing the City Administrator to execute the amendment.

EXECUTIVE SUMMARY
The City's agreement with West Coast Arborists, Inc. for tree pruning and maintenance services is scheduled to expire in August 2026. The proposed Sixth Amendment would provide a limited extension through December 31, 2026, preventing a lapse in routine maintenance and emergency response services while staff completes its evaluation of service requirements and develops a recommendation for a longer-term agreement.

The amendment would add $233,429 in contract authority and increase the total not-toexceed amount to $2,330,779. Sufficient funding is available in the Fiscal Year 2026-27 adopted operating budget; therefore, no additional appropriation is required.

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6.4. BACKGROUND
The City maintains approximately 19,000 public trees in parks, along streets and medians, and at other public facilities. The tree maintenance program includes routine pruning, tree removal, stump grinding, emergency response, and related services necessary to maintain a safe and healthy urban forest. West Coast Arborists, Inc. also hosts the City's tree inventory database in its proprietary tree-management platform, ArborAccess.

West Coast Arborists, Inc. has provided these specialized services under the current agreement since 2021. The agreement is scheduled to expire in August 2026.

ANALYSIS
A limited extension with the current contractor is the most practical way to maintain service continuity through the end of the calendar year. West Coast Arborists, Inc. is already integrated into the City's routine maintenance and emergency response operations and hosts the City's tree inventory in ArborAccess. Allowing the agreement to expire before a successor arrangement is in place would create avoidable operational and transition risks.

The proposed amendment is limited to the period ending December 31, 2026. It would not authorize services beyond that date or commit the City to a longer-term agreement.

During the extension, staff will refine the scope of services, performance expectations, and operational requirements; evaluate opportunities to improve program efficiency and effectiveness; and complete discussions with the contractor.

West Coast Arborists, Inc. has consistently provided responsive and reliable service under the current agreement, including routine pruning, emergency response, and specialized arboricultural work. The proposed amendment provides a defined bridge period while preserving the City Council's ability to consider a separate longer-term recommendation before the extension expires. Staff is seeking the extension to maintain continuity in its established maintenance schedules, respond to tree-related emergencies, comply with applicable safety standards and maintain access to online database.

Based upon recently awarded public bids for similar services, the fee schedule is below or equal to the publicly bid marketplace in the Bay Area.

ALTERNATIVES

1. The City Council could decline to approve the Sixth Amendment. Unless another

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6.4. service arrangement is established before the current agreement expires, this alternative would interrupt routine tree maintenance and emergency response services.

This alternative is not recommended.

2. The City Council could also direct staff to negotiate a different term, scope, or expenditure amount. That direction would delay execution of the amendment, require staff to adjust planned maintenance activities during the transition period and likely result in increased costs to the City. This alternative is not recommended.

FISCAL IMPACT/FUNDING SOURCE
Funding for tree pruning and maintenance services is included within the Fiscal Year 2026-27 adopted operating budget. The proposed amendment increases the contract's expenditure authority but does not increase the FY 2026-27 adopted budget; sufficient appropriation is currently available. The contract is funded through the General Fund (100) in Streets Maintenance Contractual Services (1005520-51630).

Contract Authority Amount
Current not-to-exceed amount $2,330,779
Proposed Sixth Amendment increase $233,429
Revised not-to-exceed amount $2,330,779

PUBLIC OUTREACH
N/A

NEXT STEPS
If the City Council approves the proposed amendment, the City Administrator will execute the Sixth Amendment to extend the agreement through December 31, 2026.

During the extension period, staff will continue discussions with West Coast Arborists to refine the scope of services, identify operational improvements, and finalize the terms of a longer-term agreement. If agreement cannot be reached, staff will proceed with open solicitation or "piggybacking" on a recently approved public bid which may or may not ultimately be with West Coast Arborists. Staff will return to the City Council with a recommendation for future contract consideration prior to the expiration of the extension.

Attachments:

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6.4. 1. 6th Amendment - 21PW1044-6

2. Fifth Amendment to Tree Pruining and Maintenance Services Agreement

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-1- 4845-8215-5540v1
MDOLINGER\04706083

SIXTH AMENDMENT TO TREE MAINTENANCE SERVICES CONTRACT
WHEREAS, the City of Gilroy, a municipal corporation (“City”), and West Coast Arborist, Inc. entered into that certain agreement entitled Tree Maintenance Services, effective on August 18, 2021, hereinafter referred to as “Original Agreement”; and
WHEREAS, City and West Coast Arborist have determined it is in their mutual interest to amend certain terms of the Original Agreement.

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

1. Article 1 (Term of Agreement) of the Original Agreement shall be amended to read as follows:
“This Agreement will become effective on August 18, 2021 and will continue in effect through December 31, 2026, unless terminated in accordance with the provisions of Article 7 of this Agreement.

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

2. Article 1 (Term of Agreement) of the Original Agreement shall be amended to read as follows:
“In consideration for the services to be performed by CONTRACTOR, CITY agrees to pay CONTRACTOR the amounts set forth in Exhibit “D” (“Payment Schedule”). In no event however shall the total compensation paid to CONTRACTOR exceed $395,045 for year 1, $406,897 for year 2, $419, 104 for year 3, $431,677 for year 4, $513,627 for year 5, and $233,429 for the remainder of this Agreement.

3. This Amendment shall be effective on August 17, 2026.

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

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

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

CITY OF GILROY WEST COAST ARBORIST, INC.

By: By:
[signature] [signature]
[employee name] [name]
[title/department] [title]
Date:

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-2- 4845-8215-5540v1
MDOLINGER\04706083
Date:

Approved as to Form ATTEST:

City Attorney City Clerk

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Docusign Envelope ID: 27ED5551- A708-40E9-AECB- 3E2194F3361A 1/ 28/ 2026

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Docusign Envelope ID: 27ED5551- A708-40E9-AECB- 3E2194F3361A

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1- 4845- 8215- 5540v1
MDOLINGER\ 04706083
FOURTH AMENDMENT TO AGREEMENT WITH WEST COAST ARBORISTS, INC. TO

PROVIDE CITY TREE MAINTENANCE SERVICES
This Fourth Amendment to the Agreement for Services (“ Fourth Amendment”) is made and entered into as of August 18, 2025 (“ Effective Date”), by and between the City of Gilroy, a California municipal corporation (“ CITY”), and West Coast Arborists, Inc. (“CONTRACTOR”).

WHEREAS, CITY and CONTRACTOR are parties to that certain Agreement for Services, effective on August 18, 2021, hereinafter referred to as “ Original Agreement”; and WHEREAS, CITY and CONTRACTOR have determined it is in their mutual interest to amend certain terms of the Original Agreement.

NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth below and for other valuable consideration, the receipt and adequacy of which is hereby acknowledged, the parties hereto agree as follows:

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

This Agreement will become effective on August 18, 2021 and will continue in effect through August 18, 2026, unless terminated in accordance with the provisions of Article 7 of this Agreement.

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

2. This Amendment shall be effective on August 18, 2025.

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

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

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

CONTRACTOR:

WEST COAST ARBORISTS, INC.

CITY:

CITY OF GILROY
By: By:
signature] [ signature]
Patrick Mahoney Brad Kilger
employee name] [ name]
President Interim City Administrator
title/department] [ title]
Date: Date:

Docusign Envelope ID: 27ED5551- A708-40E9-AECB- 3E2194F3361A

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2- 4845- 8215- 5540v1
MDOLINGER\ 04706083
Approved as to Form: Attest:

City Attorney City Clerk
Docusign Envelope ID: 27ED5551- A708-40E9-AECB- 3E2194F3361A

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2- 4845- 8215- 5540v1
MDOLINGER\ 04706083
Approved as to Form: Attest:

City Attorney City Clerk
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