Agenda packet, regular meeting, first session — Gilroy City Council, October 19, 2026 (part 2 of 3)

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• Work to further the goals and efforts of building a restorative community and preventing and deescalating youth violence and anti-social behaviors in South County.

9. Must provide a client list (First Initial and Last Initial) that includes the following:

I. Name of youth served;
II. Include assigned Probation File Numbers for Youth (if applicable); III. Date of birth of youth served;
IV. Start date of when youth started receiving services; V. End date of when youth stopped receiving services;
VI. ZIP Code of youth served (if available);
VII. Ethnicity of youth served (if available); and
VIII. Hours of service per youth by activity type.

12. Groups: Maintain and submit sign-in sheets monthly to track participation, Monthly Units of Service Reports, and pre/post surveys on the start and end of groups.

13. Participate in contract monitor meetings every other month and attend other necessary meetings and activities and have the flexibility to attend necessary meetings and activities as they arise, which may occur outside of traditional 8:00 a.m. to 5:00 p.m., Monday through Friday work hours.

14. Population to be served: children and young adults (Youth between the ages of 10-24 (any gender or non-binary), who reside or attend school in Gilroy (zip code areas 95020 and 95021) and can fall in one or more of the following categories:
i. At Promise (At-Risk) Youth.: Defined as youth who live in or attend schools in low socio economic areas, referred to as. Hot Spots. within the first Strategic Plan that exhibit Stability Needs; Potential Harm to Self or Others; Offending Behavior; Trauma History/ Lack of Healthy Coping Abilities and Re-Victimization Risk,
ii. High Promise (High-Risk) Youth: Defined as youth exhibiting high risk behavior(s) related to gang lifestyles, re-offending and/or participating in gang intimidation or behaviors associated with violence. This category distinguishes from .at-risk. population in that it generates additional characteristics demonstrating social-risk factors and level of intensity. iii. Youth who demonstrate to be severely impacted/gang intentional.: Social circle is integrated into intergenerational gang-membership environment and/or affected by intergenerational drug use youth self-identified, and/or are arrested for gang-related incidents or acts of violence through the justice system.

15. Have the needed level of flexibility to attend necessary meetings, including monthly, Technical Team meetings and impromptu climate and crisis meetings; and have ability to work weekends (With 30-day advanced notice) for important or large events and evenings as deemed necessary to carry out successful coordination of project services.

16. Transport of Youth: Transportation can only occur after all necessary insurance(s) have been completed and insurances and waivers meet all necessary insurance guidelines. One-to-one driving is not allowed. Consultant and youth in transport must be of the same gender, or there may be another staff member in the car of the opposite gender. This may include City of Gilroy staff. A guardian/parental permission slip must be signed each time a youth enters CONSULTANT’S vehicle. If transportation occurs under life coaching/case management, all intake paperwork must be up to date and the two-to-one ratio must be enforced. Contact of youth and transportation must follow County and City procedures.

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17. Locations of services will occur at the identified schools, community hubs, hot-spot parks libraries, and other community locations, as deemed appropriate per client need. Contact of client and transportation must follow County and City procedures.

EXHIBIT “C”

MILESTONE SCHEDULE
PER “FIRST AMENDMENT TO AGREEMENT FOR SERVICES” THIS REVISED

MILESTONE SCHEDULE REPLACES THE MILESTONE SCEHDULE THAT WAS INCLUDED IN THE ORIGINAL AGREEMENT:

Management Plan
Tracing its origins as far back as 1929, Catholic Charities of Santa Clara County (CCSCC) is a Santa Clara County-based, 501(c)(3) non-profit organization that has provided regular services to the community since 1955 and has been incorporated in California since 1981. Our mission is to serve and advocate for families and individuals in need, especially those living in poverty. We work to create a more just and compassionate community in which people of all cultures and beliefs can participate and prosper. In alignment with this mission, CCSCC has provided services for County residents since its inception and currently serves more than 86,000 individuals through more than 30 direct service programs delivered at 90+ locations. With an operating budget of over $50 million, CCSCC its staff and 25-member Board of Directors employ strong management and fiscal controls to ensure ongoing financial health.

CCSCC will deliver services through its YES team. This team is experience in program delivery with children, youth and young adults; collaboration with partner organizations; mentoring and relationship building skills; and knowledge of the South County region make them effective leaders to pursue the goals of the SCYTF programs. The team has delivered analogous programs to each scope of work with a similar profile of youth with positive results.

The YES Program Director and Senior Program Manager are currently in place, operating from the Washington United Youth Center in San Jose and in the community. They have a wide range of experience and knowledge in working with at-promise, high-promise, gang-impacted and - intentional, and justice-involved youth and their families, providing services that have demonstrated effectiveness in reducing risk factors and increasing protective factors.

YES staff are equipped with educational credentials and real-world experience working with atrisk populations, including system-involved youth and families experiencing socio-economic hardship.

Michael Bright and So’o Poumele will serve as supervision leads for the case management team. The Case Managers will provide direct services for participants. A Program Financial Analyst will support the team with invoicing and budgeting activities.

Key team members include:

So’o Poumele is YES Senior Program Manager: So’o brings over 25 years of experience working with at-risk and high-risk youth, particularly those involved in the juvenile justice system, to the team. As Program Manager starting in 2006, So’o has trained new staff, applied Trauma-Informed Care

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principles in youth and family services, developed curricula, and planned and implemented youth programs. He has also created and delivered trainings for agencies working with at-risk or ganginvolved youth and adults. So’o also has extensive experience working with government partners in implementing grant-funded programs. He has received certificates of completion through the National Gang Safety Seminar and is certified to conduct mediation and intervention. He speaks English, Samoan, and is familiar with Spanish. So’o will oversee direct services and Case Managers and ensure program data is tracked, analyzed and reported on.

Martha Diaz-Espinoza, Case Manager: Following five years of progressive leadership in the private sector, Martha changed career paths to focus on delivering high-quality programming to children, youth, and families. As a preschool teacher, Martha implemented curricula, monitored children’s development, and supported family engagement. Martha joined CCSCC in August 2023 to supervise implementation of a State Office of Child Abuse Prevention (OCAP) program designed to work with youth, young adults, and families to increase leadership, empathy, and self-agency skills; improve job readiness; and expand knowledge of college and career paths and funding resources. In this capacity, Martha conducts outreach and recruitment, engages thoughtfully with participants and partner organizations, delivers dynamic and engaging workshops, provides appropriate referrals to clients, and liaises with school staff on administrative and logistical details. A native of Gilroy, Martha is bilingual in English and Spanish. She will help provide the projects direct services for youth, tracking data and progress.

Timeline of schedule events may include, but not limited to:

Timeframe, Activity/Deliverable and Details & Expectations • Nov-Dec 2025 Program Launch and Orientation & Late Night Gym (Weekly):
o Finalize MOUs with SCYTF Technical Team; confirm Wheeler Gym schedule; outreach to schools/neighborhoods; staff training and orientation. o Launch weekly 3-hour Late Night Gym sessions (Thurs/Fri 5-9 pm). Minimum of 8 sessions before year-end. Serve at least 20 unduplicated youth. Provide food at all sessions.
• Nov 2025 - Jan 2026 Youth Group Cycle 1:
o First evidence-based, culturally responsive youth group (e.g., El Joven Noble, Xinachtli, Life Skills). Serve at least 10 youth.
• Nov-Dec 2025 Outreach & Intervention Begins: Case Managers on-site 2x per week at identified locations (community centers, library). At least one Peace/Community Circle initiated by December.
• Jan-Mar 2026 Youth Group Cycle 2: Implement a second group cycle in the identified neighborhood. Serve at least 10 youth.
• Jan- Mar 2026 Late Night Gym (Ongoing): Continue weekly sessions. Maintain at least 25 unduplicated youth served by March.
• Spring Break 2026 (Mar/Apr) Educational/Enrichment Field Trip: Provide at least one enrichment field trip in lieu of gym (cost included in budget). • Apr- Jun 2026 Youth Group Cycle 3: Implement a third group cycle (10+ youth). Culturally responsive, evidence-based.
• Apr-Jun 2026 Community Engagement: Ongoing outreach 2x per week. Conduct a second Peace/Community Building Circle.

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• Summer 2026 (Jun- Aug) Late Night Gym (Ongoing): Continue weekly sessions, offer 1-2 summer enrichment field trips (e.g., college visits, recreational trips). By August, at least 40 unduplicated youth served.
• Jul-Sep 2026 Youth Group Cycle 4: Implement a fourth group cycle. Serve another 10+ youth.
• November 2026 Final Quarter Programming: Conduct entry/exit surveys for all youth group participants. Track and report behavior/well-being changes. • November 2026 Close-Out & Final Report: Submit final program report summarizing outcomes, youth served, outreach contacts, and lessons learned. • October 2026–December 2026 | Launch Second Late Night Gym Session:

Launch a second weekly, three-hour Late Night Gym session, expanding the program to two Late Night Gym nights per week.
• November 2026–January 2027 | Youth Group – Cycle 1:

Implement the first evidence-based, culturally responsive youth group, such as El Joven Noble, Xinachtli, or Life Skills.
• January–March 2027 | Late Night Gym – Ongoing:

Continue operating two weekly Late Night Gym sessions.
• Spring Break 2027 (March/April) | Educational/Enrichment Field Trip:

Provide at least one educational or enrichment field trip for participating youth in lieu of a regularly scheduled Late Night Gym session. Field trip costs are included in the program budget.
• April–June 2027 | Youth Group – Cycle 2:

Implement a second evidence-based, culturally responsive youth group, such as El Joven Noble, Xinachtli, or Life Skills,
• June 30, 2027 | Program Close-Out & Final Report:

Complete program close-out and submit a final report summarizing program outcomes, number of youth served, outreach contacts, activities completed, and lessons learned.

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EXHIBIT “D”

PAYMENT SCHEDULE EXHIBIT
PER “FIRST AMENDMENT TO AGREEMENT FOR SERVICES” THIS REVISED

PAYMENT SCHEDULE REPLACES THE PAYMENT SCHEDULE THAT WAS INCLUDED IN THE ORIGINAL AGREEMENT:

A. Compensation to CONSULTANT Catholic Charities of Santa Clara County shall be contingent upon successful completion of the services outlined in EXHIBIT B, SCOPE OF SERVICES. A statement of all professional services outlined under this AGREEMENT shall be prepared by CONSULTANT Catholic Charities of Santa Clara County and submitted to the City of Gilroy on or before the 8th day of the month, following the billing month, following completion of each of the Services identified in EXHIBIT
B. If the services have been completed to the satisfaction of the City of Gilroy, the CITY shall make payment to the CONSULTANT within thirty (30) business days after receipt of the statement and approval thereof. B. The maximum amount of compensation to be paid to CONSULTANT under this AGREEMENT shall not exceed $220,654 CONSULTANT to successfully complete the project within the 20-month period. Reimbursement will be based on work completed, per budget specifications.

C. Any hours worked for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to CITY. All contract deliverables needed for payment are stated in Exhibit B and include the completion of a monthly invoice, with relevant direct expenses back up, monthly narrative and statistical reporting to show measurement for successful targeted youth intervention, groups and pro-social activities in predesignated areas.

Quarterly invoicing will include direct expenses for reimbursement, such as allowable overhead and supervision, direct expenses, i.e. cell phone and mileage reimbursement for positions, wages, supplies, training, costs for pro-social activities and healthy food expenses. Any additional direct expenses will not be reimbursed by the CITY.

Quarterly invoices and all back up documentation (monthly calendars, PAR monthly report, staff timesheets, agency invoice, OUS workbook, and Narrative report) will be submitted to the CITY by the 8th day of the next month, as follows or the Friday prior to, if the 8th falls on a weekend, the invoice is due the following Monday, no later than 12:00 PM. An exception will be the last monthly invoice as the City funder requests the final invoice prior to the month's end:

Quarters Invoice Deadline
• November 4, 2025- December 31, 2025 January 8, 2026
• January 1, 2026- March 31, 2026 April 8, 2026
• April 1, 2026-June 30, 2026 June 20, 2026
• July 1, 2026-September 30, 2026 October 8, 2026

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• October 1, 2026- November 4, 2026 December 8, 2026
• November 5, 2026- December 31, 2026 January 8, 2027
• January 1, 2027 March 31, 2027 April 8, 2027
• April 1, 2027- June 30, 2027 July 1, 2027
Please allow up to 30 business days between submittal of invoice and confirmed back up verification for the processing of payment. Back up includes but it not limited to any of the following: timecard for program coordinator, sign in sheets for services and programs sponsored by this agreement, fliers and brochures, pictures for program activities, meeting agendas and notes, and any other documentation related to the any of the diversion program activities. Invoices will be returned if necessary back up is not attached and timing of check processing will be paused.

D. BUDGET - Catholic Charities of Santa Clara County Total Program Budget $103,448 November 4, 2025- November 4, 2026 | ORIGINAL CONTRACT
Personnel Annual Salary & FTE Program Salary
• Program Director, Michael Bright $110,313 @ 0.03 FTE $3,309 • Senior Program Manager, So'o Poumele $111, 729 @ 0.05 $5,586 • Case Manager, Esteban Escalante $58, 402 @ 0.35 $20,441 • Case Manager, Martha Diaz- Espinoza $72, 842 @ 0.30 $21,852 • Program Financial Analyst, Svitlana Vialaire $ 91, 759 @ 0.01 $918 • Taxes and Benefits 32.61% Representing Health Plan, $16, 992 life and disability insurance, and 401K.

PERSONNEL SUBTOTAL $69,098
• OPERATING COST Food Healthy snacks and refreshments to increase attendance and encourage participation. $1,600
• Office Supplies Standard consumable office supplies (pens, paper, printer ink). $50 • Pro-Social Activities Cost of entry tickets, equipment, supplies for pro-social outings and activities. $1,500
• Telephone Employee reimbursement for cell phone use ($40/mo per FTE). $355 • Mileage Employee mileage reimbursement and van use at current federal rate for required travel between program / work sites. $3,600
• IT & Communications IT support and technology resources, internet access, GSuite, videoconferencing, related costs to facilitate program delivery, data tracking, reporting.

Allocation based on number of FTEs. $2,842
• AWARDS Database Agency-wide client information database; based on # FTEs. $1,376 • Insurance General liability insurance; based on # FTEs. $1,634 • Occupancy Allocated cost of maintenance, utilities, janitorial, depreciation for staff offices at Washington United Youth Center where majority of budgeted staff are based. Calculated based on sq ft occupied. $7,900.

OPERATING COST SUBTOTAL $20, 857
Administrative Cost 15% of direct cost- HR, payroll, fiscal, compliance, executive and administrative support needed for contract and program delivery. $13, 493

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TOTAL PROGRAM EXPENSES $103, 448
BUDGET - Catholic Charities of Santa Clara County Total Program Budget $68,506 November 5, 2026- June 30, 2027 | EXTENSION FOR ORIGINAL SERVICES ITEM DESCRIPTION Amount
Personnel
Senior Program Manager $ 3,799
Case Manager $ 4,636
Case Manager $ 3,972
Case Manager $ 3,893
Case Manager $ 3,972
Case Manager $ 4,116
Senior Division Director $ -
PFA $ 2,496
Subtotal Salaries + Wages $ 26,885
Taxes + Benefits
Benefits calculated at 33%, representing payroll taxes, health plan, life & disability insurance, retirement benefits, unemployment insurance, workers compensation, educational reimbursement.
$ 8,872
Subtotal Personnel $ 35,757
Non-Personnel / Program +
Operating Expenses
Supplies -- Food [EXAMPLE] For community events and workshops $ 4,800 Supplies -- Program [EXAMPLE] sports equipment, walkie-talkies, poster paper for workshops $ 3,500 Supplies -- Office Standard consumable office supplies (pens, paper, printer ink) $ 650 Telephone Office phone networks; employee reimbursement for cell phone use ($40/mo per FTE) $ 283
Travel - Bus, Taxi, other Gas for agency vans, vans allocations $ 3,520 IT + Communications
IT support and technology resources, internet access, GSuite, videoconferencing, related costs to facilitate program delivery, data tracking, reporting. Allocation based on number of FTEs.
$ 2,054
AWARDS database Agency-wide client information database; based on # FTEs. $ 1,204 Occupancy
[UPDATE FOR YOUR LOCATION] Allocated cost of maintenance, utilities, janitorial, depreciation for staff offices at [CCSCC main office on Zanker Road] where majority of budgeted staff are based. Calculated based on sq ft occupied. $ 6,059
Insurance General liability insurance; based on # FTEs. $ 1,744 Subtotal Non-Personnel /
Operating $ 23,814
Subtotal Direct Expenses $ 59,571

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Administrative Support Services HR, Payroll, Compliance, Finance, other administrative support required for program implementation and service delivery; calculated at 15% of direct costs. $ 8,936 TOTAL PROJECT EXPENSE $ 68,506
BUDGET - Catholic Charities of Santa Clara County Total Program Budget $48,700 November 5, 2026- June 30, 2027 | SECOND LATE NIGHT GYM, FRIDAY NIGHTS ITEM DESCRIPTION Amount
Personnel
Senior Program Manager $ 5,641
Case Manager $ 6,147
Case Manager $ 5,266
Case Manager $ -
Case Manager $ 5,162
Case Manager $ -
Case Manager $ -
Senior Division Director $ -
PFA $ 3,593
Subtotal Salaries + Wages $ 25,809
Taxes + Benefits
Benefits calculated at 33%, representing payroll taxes, health plan, life & disability insurance, retirement benefits, unemployment insurance, workers compensation, educational reimbursement.
$ 8,517
Subtotal Personnel $ 34,326
Non-Personnel / Program + Operating
Expenses
Supplies -- Food [EXAMPLE] For community events and workshops $ - Supplies -- Program [EXAMPLE] sports equipment, walkie-talkies, poster paper for workshops $ 1,670 Supplies -- Office Standard consumable office supplies (pens, paper, printer ink) $ 450 Telephone Office phone networks; employee reimbursement for cell phone use ($40/mo per FTE) $ 167
Travel - Bus, Taxi, other Gas for agency vans, vans allocations $ 2,880 IT + Communications
IT support and technology resources, internet access, GSuite, videoconferencing, related costs to facilitate program delivery, data tracking, reporting. Allocation based on number of FTEs.
$ 1,173
AWARDS database Agency-wide client information database; based on # FTEs. $ 687 Occupancy
[UPDATE FOR YOUR LOCATION] Allocated cost of maintenance, utilities, janitorial, depreciation for staff offices at [CCSCC main office on Zanker Road] where majority of budgeted staff are based. Calculated based on sq ft occupied.
$ -
Insurance General liability insurance; based on # FTEs. $ 996 Subtotal Non-Personnel / Operating $ 8,022
Subtotal Direct Expenses $ 42,348

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Administrative Support Services HR, Payroll, Compliance, Finance, other administrative support required for program implementation and service delivery; calculated at 15% of direct costs. $ 6,352 TOTAL PROJECT EXPENSE $ 48,700

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City of Gilroy
Service Agreement / Contract Tracking
Today’s Date11/19/25 Your Name
Contract Type Phone Number
Contract Effective Date 11/4/2025
Contract Expiration Date 11/4/2026
Contractor/Consultant Name
Vendor #
Catholic Charities of SCC
Vendor 74
Contract Subject Community Based Services for Youth
Contract Amount 103,448
FY Budget Amount FY25: $51,724
FY26: $51,724
Org/Object Code 2273000-52610
Contract Number (Assigned by Stefan)
Routing Steps for e-signature
Risk Manager
City Attorney Approval as to Form
City Administrator or Department Head
City Clerk Attestation
[email protected]
Contract was signed by vendor prior to Interim City Admin Brad resigning. A text box was added for new City Admin Matt Morley to include his name and title.

Docusign Envelope ID: A59E8A34-8C29-41E5-BC5F-0B5B8FF6B76D 26PD0028
FY26: $51,724
FY27: $51,724

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SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE

THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS.

INSURER(S) AFFORDING COVERAGE
INSURER F :

INSURER E :

INSURER D :

INSURER C :

INSURER B :

INSURER A : NAIC #
NAME: CONTACT
(A/C, No): FAX
E-MAIL ADDRESS:

PRODUCER
(A/C, No, Ext): PHONE

INSURED
COVERAGES CERTIFICATE NUMBER: REVISION NUMBER:

IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed.

If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s).

THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS

CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.

OTHER:
(Per accident)
(Ea accident)
$
$
N / A

SUBR WVDADDL
INSD

THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS

CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. $
$
$
$ PROPERTY DAMAGE
BODILY INJURY (Per accident)
BODILY INJURY (Per person) COMBINED SINGLE LIMIT

AUTOS ONLY

AUTOS ONLY AUTOS NON-OWNED OWNED SCHEDULED

ANY AUTO

AUTOMOBILE LIABILITY

Y / N WORKERS COMPENSATION
AND EMPLOYERS' LIABILITY OFFICER/MEMBER EXCLUDED?
(Mandatory in NH) DESCRIPTION OF OPERATIONS below
If yes, describe under

ANY PROPRIETOR/PARTNER/EXECUTIVE
$
$
$ E.L. DISEASE - POLICY LIMIT E.L. DISEASE - EA EMPLOYEEE.L. EACH ACCIDENT EROTH- STATUTE PER
(MM/DD/YYYY) LIMITS POLICY EXP(MM/DD/YYYY) POLICY EFFLTR TYPE OF INSURANCE POLICY NUMBER INSR
DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required)

EXCESS LIAB
UMBRELLA LIAB EACH OCCURRENCE $ AGGREGATE $
$
OCCUR
CLAIMS-MADE DED RETENTION $
PRODUCTS - COMP/OP AGG $ GENERAL AGGREGATE $ PERSONAL & ADV INJURY $ MED EXP (Any one person) $
EACH OCCURRENCE $ DAMAGE TO RENTED
PREMISES (Ea occurrence) $ COMMERCIAL GENERAL LIABILITY CLAIMS-MADE OCCUR GEN'L AGGREGATE LIMIT APPLIES PER: POLICY PRO- JECT LOC

CERTIFICATE OF LIABILITY INSURANCE DATE (MM/DD/YYYY)

CANCELLATION

AUTHORIZED REPRESENTATIVE
ACORD 25 (2016/03)
© 1988-2015 ACORD CORPORATION. All rights reserved.

CERTIFICATE HOLDER
The ACORD name and logo are registered marks of ACORD
HIRED

AUTOS ONLY
11/26/2024
(SM) Heffernan Insurance Brokers
1820 Gateway Drive, Suite 330
San Mateo CA 94404
HIB Cert Team 650-842-5200 650-842-5201 [email protected] License#: 0564249 Church Mutual Insurance Company, S.I. 18767 CATHCHA-26 At-Bay Specialty Insurance Company 19607 Catholic Charities of Santa Clara County
2625 Zanker Rd Ste 200
San Jose CA 95134
696192797
A 1,000,000 X
X X
09-773272 7/1/2024 7/1/2025
A 07-773273 7/1/2024 7/1/2025
X
1,000,000 1,000,000 1,000,000
B Cyber Liability AB-6639734-02 7/1/2024 7/1/2025 Aggregate 2,000,000 RE: Service Agreement: Life Skills / Cultural Development Groups and Case Management in Gilroy Unified School District & Late Night Gym activities in Morgan Hill.

City of Gilroy, its officers,
officials and employees
7351 Rosanna Street
Gilroy, CA 95020
Docusign Envelope ID: A59E8A34-8C29-41E5-BC5F-0B5B8FF6B76D

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MMFB 00032 00 (04/19) Page 1 of 1
ENDORSEMENT NO. 16

NOTICE OF CANCELLATION TO THIRD PARTY
This Endorsement, effective at 12:01 a.m. on January 12, 2026, forms part of Policy No. 0314-7623
Issued to Catholic Charities of Santa Clara County
Issued by Allied World Surplus Lines Insurance Company
In consideration of the premium charged, it is hereby agreed that, in the event of the cancellation of this Policy by the Insurer, the Insurer will send notice to the individual or entity shown below at the address shown below of such cancellation at least 30 days in advance of the effective date of cancellation, or ten (10) days in advance in the event of non-payment of premium:

Name: City of Gilroy, its officers, officials and employees Address: 7351 Rosanna Street, Gilroy, California 95020
Any failure on the Insurer s’ part to deliver such notice will not impose liability of any kind upon the Insurer or invalidate the cancellation.

All other terms, conditions and limitations of this Policy shall remain unchanged.

Authorized Representative
Docusign Envelope ID: A59E8A34-8C29-41E5-BC5F-0B5B8FF6B76D

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11/27/2024
RSC Insurance Brokerage, Inc.
9755 SW Barnes Rd
#355
Portland OR 97225
Molly Schouten
(503) 408-3925
[email protected]
Catholic Charities of Santa Clara County
2625 Zanker Rd.

San Jose CA 95112
Princeton Excess & Surplus Lines Ins Co
Underwriters at Lloyds of London
Lexington Insurance Company
Landmark American Ins. Co.

CL247868167
A
Excess of Primary $750,000
program with $250,000 SIR Y N2A3RL000002800 07/01/2024 07/01/2025 5,000,000
Incl.

Incl.
5,000,000
5,000,000
C 018303252 07/01/2024 07/01/2025
5,000,000
5,000,000
B/D
Sexual Misconduct / Professional
Liability / Employee Dishonesty B0507CD2400573 / LHM859296 07/01/2024 07/01/2025 Sexual Misconduct $5,000,000
Professional Liability $3,000,000
Employee Dishonesty Incl. in primary
1) Life Skills / Cultural Development Groups and Case Management in Gilroy Unified School District 2) Late Night Gym activities in Morgan Hill
City of Gilroy, its officers, officials and employees is an additional insured with respect to operations of the named insured as required by written contract subject to policy terms, conditions & exclusions.

City of Gilroy, its officers, officials and employees
7351 Rosanna Street
Gilroy CA 95020

SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE

THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS.

INSURER(S) AFFORDING COVERAGE
INSURER F :

INSURER E :

INSURER D :

INSURER C :

INSURER B :

INSURER A :

NAIC #
NAME:

CONTACT
(A/C, No):

FAX
E-MAIL
ADDRESS:

PRODUCER
(A/C, No, Ext):

PHONE

INSURED
COVERAGES CERTIFICATE NUMBER: REVISION NUMBER:

IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed.

THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS

OTHER:
(Per accident)
(Ea accident)
$
$
N / A
SUBR
WVD
ADDL
INSD

PROPERTY DAMAGE
BODILY INJURY (Per accident)
BODILY INJURY (Per person)

COMBINED SINGLE LIMIT

AUTOS ONLY

AUTOS ONLY AUTOS

NON-OWNED

OWNED SCHEDULED

ANY AUTO

AUTOMOBILE LIABILITY
Y / N

WORKERS COMPENSATION

AND EMPLOYERS' LIABILITY
OFFICER/MEMBER EXCLUDED?
(Mandatory in NH)
DESCRIPTION OF OPERATIONS below
If yes, describe under

ANY PROPRIETOR/PARTNER/EXECUTIVE
$
$
$
E.L. DISEASE - POLICY LIMIT
E.L. DISEASE - EA EMPLOYEE
E.L. EACH ACCIDENT
ER
OTHSTATUTEPER
(MM/DD/YYYY) LIMITS

POLICY EXP
(MM/DD/YYYY)

POLICY EFF

LTR TYPE OF INSURANCE POLICY NUMBER
INSR
DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required)

EXCESS LIAB
UMBRELLA LIAB EACH OCCURRENCE $
AGGREGATE $
$
OCCUR

CLAIMS-MADE
DED RETENTION $
PRODUCTS - COMP/OP AGG $
GENERAL AGGREGATE $
PERSONAL & ADV INJURY $
MED EXP (Any one person) $
EACH OCCURRENCE $

DAMAGE TO RENTED
PREMISES (Ea occurrence) $

COMMERCIAL GENERAL LIABILITY

CLAIMS-MADE OCCUR
GEN'L AGGREGATE LIMIT APPLIES PER:

POLICY
PROJECT LOC

CERTIFICATE OF LIABILITY INSURANCE DATE (MM/DD/YYYY)

CANCELLATION

AUTHORIZED REPRESENTATIVE
ACORD 25 (2016/03)
© 1988-2015 ACORD CORPORATION. All rights reserved.

CERTIFICATE HOLDER
The ACORD name and logo are registered marks of ACORD
HIRED

AUTOS ONLY
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Includes copyrighted material of the Insurance Services Office, Inc., with its permission.

RL 2100 10/21 Page 1 of 1

THE PRINCETON EXCESS AND SURPLUS LINES

INSURANCE COMPANY

AMENDMENT OF DEFINITION OF INSURED
Date Issued: 08/06/2024
Named Insured
Roman Catholic Bishop of San Jose
Endorsement Number
3 Policy Number
N2-A3-RL-0000028-00
Endorsement Effective
07/01/2024
Countersigned by
_________________________________________ _____________________________________ Ignacio Rivera Catherine B. Smith
Deputy General Counsel and President
Assistant Secretary
The above is required to be completed only when this endorsement is issued subsequent to the preparation of the policy.

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

This endorsement modifies insurance provided under the following:

GENERAL LIABILITY COVERAGE PART
This endorsement changes the policy effective on the inception date of the policy unless another date is indicated above.

The following is added to the definition of Insured in the Liability Claims Administration, Exclusions, Conditions and Definitions section of the policy:

Insured also means, with respect to Bodily Injury and/or Property Damage under the General Liability Coverage Part, any person or organization with whom you have agreed in a written contract or written agreement to assume liability for a specified activity or operation, but only such liability that would otherwise be imposed by law in the absence of any contract or agreement, and only arising from such specified activity or operation. However, this insurance for such Insured is limited to: (a) liability for Bodily Injury or Property Damage caused, in whole or in part, by your acts or omissions or the acts or omissions of those acting on your behalf; and (b) to the lesser of the amount of insurance you agreed to provide for such Insured in the written contract or written agreement or the applicable amount(s) of the Excess Limit of Insurance for this General Liability Coverage Part.

The following provisions also apply:
(1) The written contract or written agreement must be in effect at the inception of the Policy Period or become effective during the Policy Period; and
(2) The written contract or written agreement must be executed prior to the Bodily Injury or Property Damage.

Subject to the paragraphs above, any such person’s or organization’s status as an Insured ends when any of the following first occurs: this policy terminates; the written contract or written agreement terminates; or the specified activity or operation terminates.

All other terms and conditions remain unchanged.

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11/07/2025
RSC Insurance Brokerage, Inc.
2998 Douglas Blvd
Suite 210
Roseville CA 95661
Molly Schouten
(503) 408-3925
[email protected]
Catholic Charities of Santa Clara County
2625 Zanker Rd.

San Jose CA 95134
Allied World Surplus Lines Insurance
Hamilton Select Insurance Inc
CL257876059
A
$100,000 SIR
Y 03147623 07/01/2025 07/01/2026
1,000,000
50,000
1,000,000
3,000,000
1,000,000
B AMXSHS546482 07/01/2025 07/01/2026
1,000,000
1,000,000
City of Gilroy is an additional insured with respect to operations of the named insured as required by written contract subject to policy terms, conditions & exclusions.

City of Gilroy
7351 Rosanna St
Gilroy CA 94089

SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE

THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS.

INSURER(S) AFFORDING COVERAGE
INSURER F :

INSURER E :

INSURER D :

INSURER C :

INSURER B :

INSURER A :

NAIC #
NAME:

CONTACT
(A/C, No):

FAX
E-MAIL
ADDRESS:

PRODUCER
(A/C, No, Ext):

PHONE

INSURED
COVERAGES CERTIFICATE NUMBER: REVISION NUMBER:

IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed.

THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS

OTHER:
(Per accident)
(Ea accident)
$
$
N / A
SUBR
WVD
ADDL
INSD

PROPERTY DAMAGE
BODILY INJURY (Per accident)
BODILY INJURY (Per person)

COMBINED SINGLE LIMIT

AUTOS ONLY

AUTOS ONLY AUTOS

NON-OWNED

OWNED SCHEDULED

ANY AUTO

AUTOMOBILE LIABILITY
Y / N

WORKERS COMPENSATION

AND EMPLOYERS' LIABILITY
OFFICER/MEMBER EXCLUDED?
(Mandatory in NH)
DESCRIPTION OF OPERATIONS below
If yes, describe under

ANY PROPRIETOR/PARTNER/EXECUTIVE
$
$
$
E.L. DISEASE - POLICY LIMIT
E.L. DISEASE - EA EMPLOYEE
E.L. EACH ACCIDENT
ER
OTHSTATUTEPER
(MM/DD/YYYY) LIMITS

POLICY EXP
(MM/DD/YYYY)

POLICY EFF

LTR TYPE OF INSURANCE POLICY NUMBER
INSR
DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required)

EXCESS LIAB
UMBRELLA LIAB EACH OCCURRENCE $
AGGREGATE $
$
OCCUR

CLAIMS-MADE
DED RETENTION $
PRODUCTS - COMP/OP AGG $
GENERAL AGGREGATE $
PERSONAL & ADV INJURY $
MED EXP (Any one person) $
EACH OCCURRENCE $

DAMAGE TO RENTED
PREMISES (Ea occurrence) $

COMMERCIAL GENERAL LIABILITY

CLAIMS-MADE OCCUR
GEN'L AGGREGATE LIMIT APPLIES PER:

POLICY
PROJECT LOC

CERTIFICATE OF LIABILITY INSURANCE DATE (MM/DD/YYYY)

CANCELLATION

AUTHORIZED REPRESENTATIVE
ACORD 25 (2016/03)
© 1988-2015 ACORD CORPORATION. All rights reserved.

CERTIFICATE HOLDER
The ACORD name and logo are registered marks of ACORD
HIRED

AUTOS ONLY
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MMFB 00074 00 (04/19) Page 1 of 1
ENDORSEMENT NO. 17

SPECIFIC ADDITIONAL INSUREDS

GENERAL LIABILITY COVERAGE ONLY
This Endorsement, effective at 12:01 a.m. on January 12, 2026, forms part of Policy No. 0314-7623
Issued to Catholic Charities of Santa Clara County
Issued by Allied World Surplus Lines Insurance Company
In consideration of the premium charged, it is hereby agreed that solely with respect to Claims for which coverage is provided under Insuring Agreement I.B., the term Insured as defined in Section II. of the Policy, is amended to include the entity below with whom the Named Insured has agreed under written contract or agreement to provide insurance (hereinafter referred to as (“Additional Insureds”):

City of Gilroy, its officers, officials and employees
The coverage provided shall not exceed the scope of coverage and/or Limits of Liability of this Policy; nor shall the coverage provided exceed the scope of coverage and/or limits required by said contract or agreement.

Any such Claim must be: (1) based on an Occurrence directly and exclusively caused by, and (2) made and continuously maintained against; at least one Insured, other than the Additional Insured.

There shall be no coverage under this Policy for any Claim based upon or arising out of the acts, errors or omissions of the Additional Insureds, whether negligent or intentional.

The coverage provided by this Endorsement is excess of, and shall not contribute with, any other applicable insurance plan, policy or program of self-insurance carried by or applicable to any Additional Insured.

All other terms, conditions and limitations of this Policy shall remain unchanged.

Authorized Representative
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MMFO 00002 00 (04/19) Page 6 of 26

5. the handling or treatment of dead bodies, including autopsies, organ donation or harvesting, or other procedures.

Q. “Hostile Fire” means a fire which becomes uncontrollable or breaks out from where it was intended to be contained; provided that Hostile Fire shall not include any fire that originated at any site operating as a waste disposal facility or waste storage facility.

R. “Insured” means any of the following:

1. any Insured Entity; and

2. any Insured Person. S. “Insured Entity” means the Named Insured and any Subsidiaries, and the organization(s) listed in Schedule A.

T. “Insured Person” means:

1. any Employee of an Insured Entity, but only while acting within the scope of his/her duties as such;

2. any Employed Physician of an Insured Entity, if listed in Schedule B, but only while acting within the scope of his/her duties as such;

3. as respects Insuring Agreement I.A., any natural persons who are independent contractors retained by the Insured to provide Healthcare Professional Services, but only while providing services pursuant to a written contract or agreement with Insured, provided that independent contractors shall not include physicians.

4. any Volunteer or person enrolled as a student in a formal training program offered by the Insured of any Insured Entity, but only while acting within the scope of his/her duties as such;

5. any member of a duly authorized board or committee of an Insured Entity, any person communicating information to such board or committee, or any person charged with the duty of acting as a hearing officer or agent of such committee or executing directives of any such board or committee; provided, however, that any such person shall only be an Insured Person while acting within the scope of his/her duties as such;

6. any of the Insured Entities’ medical directors, administrators, department heads or chiefs of staff, who are not Employees, while acting within the scope of their duties as such; provided, however, that such person shall not be an Insured Person for Claims arising out of direct Patient care rendered or allegedly failed to be rendered by him/her;

7. any member or partner of a joint venture or partnership, which joint venture or partnership is specifically designated as such in Schedule A, but only with respect to such member or partner’s liability arising out of such designated joint venture or partnership;

8. any person or entity with whom / which the Insured Entity has a written agreement, effective during the Policy Period, to provide such person or entity insured status under this Policy (each , an “Additional Insured”), but solely with respect to liability imposed or sought to be imposed on such Additional Insured as a result of the acts, errors or omissions of an original Insured committed or allegedly committed subsequent to the execution of such agreement and for which this Policy provides coverage; provided, that: (a) no coverage will be available under this Policy for that portion of any Loss or Defense Expenses for Policy No. 0314-7623
Effective 7/1/2025 - 7/1/2026
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MMFO 00002 00 (04/19) Page 7 of 26
any Claim against an Additional Insured based upon or arising out of any actual or alleged independent act or direct liability of such Additional Insured; and (b) an Additional Insured’s status as an Insured under this Policy shall immediately terminate when the Insured’s agreement to provide such status terminates;

9. any person leased to the Insured by a labor leasing firm under an agreement between the Insured and the labor leasing firm (each, a “leased worker”), but only while providing services pursuant to a written agreement with the Insured and while each leased worker is acting within the scope of his/her duties; or

10. any temporary worker who is furnished to the Insured to substitute for a permanent Employee on leave or to meet seasonal or short-term workload conditions.

Solely with respect to Insuring Agreement I.A., Insured Person shall also mean, in the event of the death, incapacity, or bankruptcy of an Insured Person, the estates, heirs, legal representatives and/or assigns of such Insured Person. U. “Insured’s Products” means:

1. goods or products manufactured, sold, handled or distributed by:
a. an Insured Entity;
b. others trading under the name of an Insured Entity; or c. a person or organization whose assets an Insured Entity has acquired in accordance with Section IV. J.; and

2. containers (other than vehicles), materials, parts or equipment furnished in connection with such goods or products.

Insured’s Products does not mean vending machines, or other property rented to or located for the use of others but not sold.

V. “Insured’s Work” means:

1. work or operations performed by any Insured or on an Insured Entity’s behalf; and

2. materials, parts or equipment furnished in connection with such work or operations;
but only in connection with the provision of Healthcare Professional Services by the Insureds. W. “Insurer” means the Company identified in the Declarations.

X. “Loss” means any monetary amount paid on account of an award, judgment or settlement, including punitive and exemplary damages where insurable by law, in excess of the applicable Deductible or self-insured retention, if any, stated in Item 4. of the Declarations which the Insured is legally obligated to pay as a result of a Claim. However, Loss shall not include:

1. the multiplied portion of multiplied damages;

2. salaries, remuneration, overhead, fees or benefit expenses of any Insured; Policy No. 0314-7623
Effective 7/1/2025 - 7/1/2026
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LAC\04706083

AGREEMENT FOR SERVICES
(For contracts over $5,000 - CONSULTANT)
This AGREEMENT made this 4 day of November, 2025, between:

CITY: City of Gilroy, having a principal place of business at 7351 Rosanna Street, Gilroy, California
and CONSULTANT: Catholic Charities of Santa Clara County, having a principal place of business at 2625 Zanker Rd #201, San Jose, CA 95134.

ARTICLE 1. TERM OF AGREEMENT
This Agreement will become effective on November 4, 2025 and will continue in effect through November 4, 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. ______ Initial
ARTICLE 2. INDEPENDENT CONTRACTOR STATUS
It is the express intention of the parties that CONSULTANT is an independent contractor and not an employee, agent, joint venturer or partner of CITY. Nothing in this Agreement shall be interpreted or construed as creating or establishing the relationship of employer and employee between CITY and CONSULTANT or any employee or agent of CONSULTANT. Both parties acknowledge that CONSULTANT is not an employee for state or federal tax purposes.

CONSULTANT shall not be entitled to any of the rights or benefits afforded to CITYíS employees, including, without limitation, disability or unemployment insurance, workersí compensation, medical insurance, sick leave, retirement benefits or any other employment benefits. CONSULTANT shall retain the right to perform services for others during the term of this Agreement.

ARTICLE 3. SERVICES TO BE PERFORMED BY CONSULTANT
A. Specific Services
CONSULTANT agrees to: Perform the services as outlined in Exhibit ìAî (ìSpecific Provisionsî) and Exhibit ìBî (ìScope of Servicesî), within the time periods described in Exhibit ìCî (ìMilestone Scheduleî).

B. Method of Performing Services
CONSULTANT shall determine the method, details and means of performing the above-described services. CITY shall have no right to, and shall not, control the manner or determine the method of accomplishing CONSULTANTíS services.

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LAC\04706083
C. Employment of Assistants
CONSULTANT may, at the CONSULTANTíS own expense, employ such assistants as CONSULTANT deems necessary to perform the services required of CONSULTANT by this Agreement, subject to the prohibition against assignment and subcontracting contained in Article 5 below. CITY may not control, direct, or supervise CONSULTANTíS assistants in the performance of those services. CONSULTANT assumes full and sole responsibility for the payment of all compensation and expenses of these assistants and for all state and federal income tax, unemployment insurance, Social Security, disability insurance and other applicable withholding.

D. Place of Work
CONSULTANT shall perform the services required by this Agreement at any place or location and at such times as CONSULTANT shall determine is necessary to properly and timely perform CONSULTANTíS services.

ARTICLE 4. COMPENSATION
A. Consideration
In consideration for the services to be performed by CONSULTANT, CITY agrees to pay CONSULTANT the amounts set forth in Exhibit ìDî (ìPayment Scheduleî). In no event however shall the total compensation paid to CONSULTANT exceed $103,448.

B. Invoices
CONSULTANT shall submit invoices for all services rendered.

C. Payment
Payment shall be due according to the payment schedule set forth in Exhibit ìDî. No payment will be made unless CONSULTANT has first provided City with a written receipt of invoice describing the work performed during the preceding period. If CITY objects to all or any portion of any invoice, CITY shall notify CONSULTANT of the objection within thirty (30) days from receipt of the invoice, give reasons for the objection, and pay that portion of the invoice not in dispute. It shall not constitute a default or breach of this Agreement for CITY not to pay any invoiced amounts to which it has objected until the objection has been resolved by mutual agreement of the parties.

D. Expenses
CONSULTANT shall be responsible for all costs and expenses incident to the performance of services for CITY, including but not limited to, all costs of equipment used or provided by CONSULTANT, all fees, fines, licenses, bonds or taxes required of or imposed against CONSULTANT and all other of CONSULTANTíS costs of doing business.

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LAC\04706083
ARTICLE 5. OBLIGATIONS OF CONSULTANT
A. Tools and Instrumentalities
CONSULTANT shall supply all tools and instrumentalities required to perform the services under this Agreement at its sole cost and expense. CONSULTANT is not required to purchase or rent any tools, equipment or services from CITY.

B. Workersí Compensation
CONSULTANT agrees to provide workersí compensation insurance for CONSULTANTíS employees and agents and agrees to hold harmless, defend with counsel acceptable to CITY and indemnify CITY, its officers, representatives, agents and employees from and against any and all claims, suits, damages, costs, fees, demands, causes of action, losses, liabilities and expenses, including without limitation reasonable attorneysí fees, arising out of any injury, disability, or death of any of CONSULTANTíS employees.

C. Indemnification of Liability, Duty to Defend

1. As to professional liability, to the fullest extent permitted by law, CONSULTANT shall defend, through counsel approved by CITY (which approval shall not be unreasonably withheld), indemnify and hold harmless CITY, its officers, representatives, agents and employees against any and all suits, damages, costs, fees, claims, demands, causes of action, losses, liabilities and expenses, including without limitation attorneysí fees, to the extent arising or resulting directly or indirectly from any willful or negligent acts, errors or omissions of CONSULTANT or CONSULTANTíS assistants, employees or agents, including all claims relating to the injury or death of any person or damage to any property.

2. As to other liability, to the fullest extent permitted by law, CONSULTANT shall defend, through counsel approved by CITY (which approval shall not be unreasonably withheld), indemnify and hold harmless CITY, its officers, representatives, agents and employees against any and all suits, damages, costs, fees, claims, demands, causes of action, losses, liabilities and expenses, including without limitation attorneysí fees, arising or resulting directly or indirectly from any act or omission of CONSULTANT or CONSULTANTíS assistants, employees or agents, including all claims relating to the injury or death of any person or damage to any property.

D. Insurance
In addition to any other obligations under this Agreement, CONSULTANT shall, at no cost to CITY, obtain and maintain throughout the term of this Agreement: (a) Commercial Liability Insurance on a per occurrence basis, including coverage for owned and non-owned automobiles, with a minimum combined single limit coverage of $1,000,000 per occurrence for all damages due to bodily injury, sickness or disease, or death to any person, and damage to property, including the loss of use thereof; and (b) Professional Liability Insurance (Errors & Omissions) with a minimum coverage of $1,000,000 per occurrence or claim, and $2,000,000 aggregate; provided however, Professional Liability Insurance written on a claims made basis must comply with the requirements Docusign Envelope ID: A59E8A34-8C29-41E5-BC5F-0B5B8FF6B76D

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set forth below. Professional Liability Insurance written on a claims made basis (including without limitation the initial policy obtained and all subsequent policies purchased as renewals or replacements) must show the retroactive date, and the retroactive date must be before the earlier of the effective date of the contract or the beginning of the contract work. Claims made Professional Liability Insurance must be maintained, and written evidence of insurance must be provided, for at least five (5) years after the completion of the contract work. If claims made coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a retroactive date prior to the earlier of the effective date of the contract or the beginning of the contract work, CONSULTANT must purchase so called ìextended reportingî or ìtailî coverage for a minimum of five (5) years after completion of work, which must also show a retroactive date that is before the earlier of the effective date of the contract or the beginning of the contract work.

As a condition precedent to CITYíS obligations under this Agreement, CONSULTANT shall furnish written evidence of such coverage (naming CITY, its officers and employees as additional insureds on the Comprehensive Liability insurance policy referred to in (a) immediately above via a specific endorsement) and requiring thirty (30) days written notice of policy lapse or cancellation, or of a material change in policy terms.

E. Assignment
Notwithstanding any other provision of this Agreement, neither this Agreement nor any duties or obligations of CONSULTANT under this Agreement may be assigned or subcontracted by CONSULTANT without the prior written consent of CITY, which CITY may withhold in its sole and absolute discretion.

F. State and Federal Taxes
As CONSULTANT is not CITYíS employee, CONSULTANT shall be responsible for paying all required state and federal taxes. Without limiting the foregoing, CONSULTANT acknowledges and agrees that:
• CITY will not withhold FICA (Social Security) from CONSULTANTíS payments;
• CITY will not make state or federal unemployment insurance contributions on CONSULTANTíS behalf;
• CITY will not withhold state or federal income tax from payment to CONSULTANT;
• CITY will not make disability insurance contributions on behalf of CONSULTANT;
• CITY will not obtain workersí compensation insurance on behalf of CONSULTANT.

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ARTICLE 6. OBLIGATIONS OF CITY
A. Cooperation of City
CITY agrees to respond to all reasonable requests of CONSULTANT and provide access, at reasonable times following receipt by CITY of reasonable notice, to all documents reasonably necessary to the performance of CONSULTANTíS duties under this Agreement.

B. Assignment
CITY may assign this Agreement or any duties or obligations thereunder to a successor governmental entity without the consent of CONSULTANT. Such assignment shall not release CONSULTANT from any of CONSULTANTíS duties or obligations under this Agreement.

ARTICLE 7. TERMINATION OF AGREEMENT
A. Sale of Consultantís Business/ Death of Consultant.

CONSULTANT shall notify CITY of the proposed sale of CONSULTANTís business no later than thirty (30) days prior to any such sale. CITY shall have the option of terminating this Agreement within thirty (30) days after receiving such notice of sale. Any such CITY termination pursuant to this Article 7.A shall be in writing and sent to the address for notices to CONSULTANT set forth in Exhibit A, Subsection V.H., no later than thirty (30) days after CITYí receipt of such notice of sale.

If CONSULTANT is an individual, this Agreement shall be deemed automatically terminated upon death of CONSULTANT.

B. Termination by City for Default of Consultant
Should CONSULTANT default in the performance of this Agreement or materially breach any of its provisions, CITY, at CITYíS option, may terminate this Agreement by giving written notification to CONSULTANT. For the purposes of this section, material breach of this Agreement shall include, but not be limited to the following:

1. CONSULTANTíS failure to professionally and/or timely perform any of the services contemplated by this Agreement.

2. CONSULTANTíS breach of any of its representations, warranties or covenants contained in this Agreement.

CONSULTANT shall be entitled to payment only for work completed in accordance with the terms of this Agreement through the date of the termination notice, as reasonably determined by CITY, provided that such payment shall not exceed the amounts set forth in this Agreement for the tasks described on Exhibit Cî which have been fully, competently and timely rendered by CONSULTANT. Notwithstanding the foregoing, if CITY terminates this Agreement due to CONSULTANTíS default in the performance of this Agreement or material breach by CONSULTANT of any of its provisions, then in addition to any other rights and remedies CITY Docusign Envelope ID: A59E8A34-8C29-41E5-BC5F-0B5B8FF6B76D

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may have, CONSULTANT shall reimburse CITY, within ten (10) days after demand, for any and all costs and expenses incurred by CITY in order to complete the tasks constituting the scope of work as described in this Agreement, to the extent such costs and expenses exceed the amounts CITY would have been obligated to pay CONSULTANT for the performance of that task pursuant to this Agreement.

C. Termination for Failure to Make Agreed-Upon Payments Should CITY fail to pay CONSULTANT all or any part of the compensation set forth in Article 4 of this Agreement on the date due, then if and only if such nonpayment constitutes a default under this Agreement, CONSULTANT, at the CONSULTANTíS option, may terminate this Agreement if such default is not remedied by CITY within thirty (30) days after demand for such payment is given by CONSULTANT to CITY.

D. Transition after Termination
Upon termination, CONSULTANT shall immediately stop work, unless cessation could potentially cause any damage or harm to person or property, in which case CONSULTANT shall cease such work as soon as it is safe to do so. CONSULTANT shall incur no further expenses in connection with this Agreement. CONSULTANT shall promptly deliver to CITY all work done toward completion of the services required hereunder, and shall act in such a manner as to facilitate any the assumption of CONSULTANTís duties by any new consultant hired by the CITY to complete such services.

ARTICLE 8. GENERAL PROVISIONS
A. Amendment & Modification
No amendments, modifications, alterations or changes to the terms of this Agreement shall be effective unless and until made in a writing signed by both parties hereto.

B. Americans with Disabilities Act of 1990
Throughout the term of this Agreement, the CONSULTANT shall comply fully with all applicable provisions of the Americans with Disabilities Act of 1990 (ìthe Actî) in its current form and as it may be amended from time to time. CONSULTANT shall also require such compliance of all subcontractors performing work under this Agreement, subject to the prohibition against assignment and subcontracting contained in Article 5 above. The CONSULTANT shall defend with counsel acceptable to CITY, indemnify and hold harmless the CITY OF GILROY, its officers, employees, agents and representatives from and against all suits, claims, demands, damages, costs, causes of action, losses, liabilities, expenses and fees, including without limitation reasonable attorneysí fees, that may arise out of any violations of the Act by the CONSULTANT, its subcontractors, or the officers, employees, agents or representatives of either.

C. Attorneysí Fees
If any action at law or in equity, including an action for declaratory relief, is brought to enforce or interpret the provisions of this Agreement, the prevailing party will be entitled to reasonable Docusign Envelope ID: A59E8A34-8C29-41E5-BC5F-0B5B8FF6B76D

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attorneysí fees, which may be set by the court in the same action or in a separate action brought for that purpose, in addition to any other relief to which that party may be entitled.

D. Captions
The captions and headings of the various sections, paragraphs and subparagraphs of the Agreement are for convenience only and shall not be considered nor referred to for resolving questions of interpretation.

E. Compliance with Laws
The CONSULTANT shall keep itself informed of all State and National laws and all municipal ordinances and regulations of the CITY which in any manner affect those engaged or employed in the work, or the materials used in the work, or which in any way affect the conduct of the work, and of all such orders and decrees of bodies or tribunals having any jurisdiction or authority over the same. Without limiting the foregoing, CONSULTANT agrees to observe the provisions of the Municipal Code of the CITY OF GILROY, obligating every contractor or subcontractor under a contract or subcontract to the CITY OF GILROY for public works or for goods or services to refrain from discriminatory employment or subcontracting practices on the basis of the race, color, sex, religious creed, national origin, ancestry of any employee, applicant for employment, or any potential subcontractor.

F. Conflict of Interest
CONSULTANT certifies that to the best of its knowledge, no CITY employee or office of any public agency interested in this Agreement has any pecuniary interest in the business of CONSULTANT and that no person associated with CONSULTANT has any interest that would constitute a conflict of interest in any manner or degree as to the execution or performance of this Agreement.

G. Entire Agreement
This Agreement supersedes any and all prior agreements, whether oral or written, between the parties hereto with respect to the rendering of services by CONSULTANT for CITY and contains all the covenants and agreements between the parties with respect to the rendering of such services in any manner whatsoever. Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein, and that no other agreement, statement or promise not contained in this Agreement shall be valid or binding.

No other agreements or conversation with any officer, agent or employee of CITY prior to execution of this Agreement shall affect or modify any of the terms or obligations contained in any documents comprising this Agreement. Such other agreements or conversations shall be considered as unofficial information and in no way binding upon CITY.

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H. Governing Law and Venue
This Agreement shall be governed by and construed in accordance with the laws of the State of California without regard to the conflict of laws provisions of any jurisdiction. The exclusive jurisdiction and venue with respect to any and all disputes arising hereunder shall be in state and federal courts located in Santa Clara County, California.

I. Notices
Any notice to be given hereunder by either party to the other may be effected either by personal delivery in writing or by mail, registered or certified, postage prepaid with return receipt requested.

Mailed notices shall be addressed to the parties at the addresses appearing in Exhibit ìAî, Section V.H. but each party may change the address by written notice in accordance with this paragraph.

Notices delivered personally will be deemed delivered as of actual receipt; mailed notices will be deemed delivered as of three (3) days after mailing.

J. Partial Invalidity
If any provision in this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions will nevertheless continue in full force without being impaired or invalidated in any way.

K. Time of the Essence
All dates and times referred to in this Agreement are of the essence.

L. Waiver
CONSULTANT agrees that waiver by CITY of any one or more of the conditions of performance under this Agreement shall not be construed as waiver(s) of any other condition of performance under this Agreement.

Executed at Gilroy, California, on the date and year first above written.

CONSULTANT: CITY:

Catholic Charities of Santa Clara County CITY OF GILROY By: By:

Name: Dr. Alexandra C. Duran Name: Brad Kilger
Title: Chief Operating Officer Title: Interim Administrator, City of Gilroy
Social Security or Taxpayer
Identification Number 94-2762269
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Approved as to Form ATTEST:

City Attorney City Clerk
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EXHIBIT ìAî

SPECIFIC PROVISIONS
I. PROJECT MANAGER
CONSULTANT shall provide the services indicated on the attached Exhibit ìBî, Scope of Services (ìServicesî). (All exhibits referenced are incorporated herein by reference.) To accomplish that end, CONSULTANT agrees to assign So'o Poumele , 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, CONSULTANT 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
CONSULTANT shall commence the Services upon delivery to CONSULTANT of a written ìNotice to Proceedî, which Notice to Proceed shall be in the form of a written communication from designated City contact person(s). Notice to Proceed may be in the form of e-mail, fax or letter authorizing commencement of the Services. For purposes of this Agreement, Sandra Cruz, South County Youth Task Force Coordinator shall be the designated City contact person(s).

Notice to Proceed shall be deemed to have been delivered upon actual receipt by CONSULTANT or if otherwise delivered as provided in the Section V.H. (ìNoticesî) of this Exhibit ìAî.

B. COMPLETION OF SERVICES
When CITY determines that CONSULTANT has completed all of the Services in accordance with the terms of this Agreement, CITY shall give CONSULTANT written Notice of Final Acceptance, and CONSULTANT shall not incur any further costs hereunder. CONSULTANT may request this determination of completion when, in its opinion, it has completed all of the Services as required by the terms of this Agreement and, if so requested, CITY shall make this determination within two (2) weeks of such request, or if CITY determines that CONSULTANT has not completed all of such Services as required by this Agreement, CITY shall so inform CONSULTANT within this two (2) week period.

III. PROGRESS SCHEDULE
The schedule for performance and completion of the Services will be as set forth in the attached Exhibit ìCî.

IV. PAYMENT OF FEES AND DIRECT EXPENSES
Payments shall be made to CONSULTANT as provided for in Article 4 of this Agreement.

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Copies of pertinent financial records, including invoices, will be included with the submission of billing(s) for all direct expenses.

V. OTHER PROVISIONS
A. STANDARD OF WORKMANSHIP
CONSULTANT 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 CONSULTANTíS representations and warranties regarding its skills, qualifications and licenses. CONSULTANT shall perform such Services and duties in conformance to and consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California.

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

B. RESPONSIBILITY OF CONSULTANT
CONSULTANT shall be responsible for the professional quality, technical accuracy, and the coordination of the Services furnished by it under this Agreement. CONSULTANT shall not be responsible for the accuracy of any project or technical information provided by the CITY. The CITYíS review, acceptance or payment for any of the Services shall not be construed to operate as a waiver of any rights under this Agreement or of any cause of action arising out of the performance of this Agreement, and CONSULTANT shall be and remain liable to CITY in accordance with applicable law for all damages to CITY caused by CONSULTANTíS negligent performance of any of the services furnished under this Agreement.

C. RIGHT OF CITY TO INSPECT RECORDS OF CONSULTANT
CITY, through its authorized employees, representatives or agents, shall have the right, at any and all reasonable times, to audit the books and records (including, but not limited to, invoices, vouchers, canceled checks, time cards, etc.) of CONSULTANT for the purpose of verifying any and all charges made by CONSULTANT in connection with this Agreement. CONSULTANT shall maintain for a minimum period of three (3) years (from the date of final payment to CONSULTANT), 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 CONSULTANT, all of which shall be made available to CITY at the CITYís offices within five (5) business days after CITYís request.

D. CONFIDENTIALITY OF MATERIAL
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other information developed or received by or for CONSULTANT and all other written and oral information developed or received by or for CONSULTANT and all other written and oral information submitted to CONSULTANT in connection with the performance of this Agreement shall be held confidential by CONSULTANT and shall not, without the prior written consent of CITY, be used for any purposes other than the performance of the Services, nor be disclosed to an entity not connected with the performance of the such Services. Nothing furnished to CONSULTANT which is otherwise known to CONSULTANT or is or becomes generally known to the related industry (other than that which becomes generally known as the result of CONSULTANTíS disclosure thereof) shall be deemed confidential. CONSULTANT shall not use CITYíS name or insignia, or distribute publicity pertaining to the services rendered under this Agreement in any magazine, trade paper, newspaper or other medium without the express written consent of CITY.

E. NO PLEDGING OF CITYíS CREDIT.

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

F. OWNERSHIP OF MATERIAL.

All material including, but not limited to, computer information, data and source code, sketches, tracings, drawings, plans, diagrams, quantities, estimates, specifications, proposals, tests, maps, calculations, photographs, reports and other material developed, collected, prepared (or caused to be prepared) under this Agreement shall be the property of CITY, but CONSULTANT may retain and use copies thereof subject to Section V.D of this Exhibit ìAî.

CITY shall not be limited in any way in its use of said material at any time for any work, whether or not associated with the City project for which the Services are performed. However, CONSULTANT shall not be responsible for, and City shall indemnify CONSULTANT from, damages resulting from the use of said material for work other than PROJECT, including, but not limited to, the release of this material to third parties for work other than on PROJECT.

G. NO THIRD PARTY BENEFICIARY.

This Agreement shall not be construed or deemed to be an agreement for the benefit of any third party or parties, and no third party or parties shall have any claim or right of action hereunder for any cause whatsoever.

H. NOTICES.

Notices are to be sent as follows:

CITY: Sandra Cruz, SCYTF Coordinator
City of Gilroy
7351 Rosanna Street
Gilroy, CA 95020
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CONSULTANT: Dr Alexandra Duran
Chief Operating Officer
Catholic Charities of Santa Clara County
2625 Zanker Rd #201
San Jose, CA 95134

I. FEDERAL FUNDING REQUIREMENTS.

If the box to the left of this sentence is checked, this Agreement involves federal funding and the requirements of this Section V.I. apply.

If the box to the left of this sentence is checked, this Agreement does not involve federal funding and the requirements of this Section V.I. do not apply.

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

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

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

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EXHIBIT ìBî

SCOPE OF SERVICES
CONSULTANT Catholic Charities of Santa Clara County will coordinate and provide services, outlined and specified in reporting data outlined below, necessary for program evaluation: ie. monthly progress and quarterly financial reporting utilizing Program Activity Report (PAR), Units of Service Workbook (OUS) report and invoicing format; as well as ongoing program improvement, to the City of Gilroy in a timely matter. This program is part of the South County Project II THRIVE (Transformation and Hope, Resiliency, Integrity, Voice & Engagement) Project, in effort to prevent and reduce juvenile delinquent behaviors, prevent/ reduce recruitment of youth into gangs and prevent/ reduce youth violence in South Santa Clara County. Service delivery time frame: November 4, 2025- November 4, 2026.

CONSULTANT Catholic Charities of Santa Clara County shall complete the following services:

1.Late Night Gym / Pro-Social Program:
ï Coordinate, facilitate, and manage one (1) weekly Late Night Gym on Thursday or Friday evenings (weekly evening pro-social program) at the Wheeler Gym in Gilroy. ï Sessions must last a minimum of three (3) hours, between 4:00 PM ñ 9:00 PM. ï Serve at least 50 unduplicated youth over the program term. ï Program must be evidence-based or evidence-promising and culturally responsive. ï Provide healthy food options at each weekly session.
ï Ensure proper use, maintenance, storage, security and care of all program equipment. ï For summer and school breaks, weekly educational and enrichment fieldtrips are encouraged in lieu of program (cost is part of the program budget).

2. Four (4) Evidence-Based, Culturally Responsive Youth Groups in the Neighborhoods:
ï Implement four (4) evidence-based or life skills youth group cycles throughout the 12-month contract period (e.g., El Joven Noble, Xinachtli Rights of Passage, Cara Y Corazon; Life Skills Programs, such as Why Try, BOTVIN groups, Restorative Justice based groups, or other preapproved curricula (curriculum must be submitted), at selected community locations. ï Groups should be distributed over the year in strategically identified opportunity neighborhoods, as recommended by SCYTF (e.g., 4 in the fall/ winter and 4 in the spring/summer). ï Each group must serve a minimum of 10 unduplicated youth, for a total of 40 unduplicated individuals, served across all groups.
ï The Consultant must submit all curricula for pre-approval.

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3. Outreach, Community Engagement and Intervention:
ï Provide intervention and engagement support at identified key community center(s) and/or library sites.
ï Conduct outreach a minimum of two days per week for at least four (4) hours per day. Locations will vary depending on the need.
ï Facilitate at least one Peace/ Community Building Circle series at an identified community center, such as at San Ysidro Park, Las Animas Park Gilroy Library or the Wheeler Gym. ï Conduct outreach for the SCYTF Late Night Gym program.

4. Secondary Crisis Response:
ï Support identified neighborhoods and around school sites in maintaining a positive and safe culture.
ï Build rapport with youth in identified neighborhoods to introduce services, opportunities for selfreferral, and invitation to participate in SCYTF and greater collaborative services/activities. ï Activities may include restorative circles, one-on-one support, ëget-to-know-youí activities before/after school, and during late evening pro-social activities.

5. Linkage and Referral
ï Connect youth and their families to relevant community and county services and resources.

6. Collaboration and Participation:
ï Participate in monthly Technical Team, Multi-Disciplinary Team (MDT), and ad-hoc Violence Disruption meetings.
ï Lead or co-chair at least one Tech Team subcommittees. ï Collaborate with the City of Gilroy, GUSD, and other partners with an SCYTF MOU to further violence prevention goals.

7. Program Evaluation and Reporting
ï Serve a total of 90 unduplicated youth (ages 9-24) across all services. ï Conduct entrance and exit surveys at the end of services (as they pertain to the strategy) to measure changes in behavior and well-being.
ï Submit the following documentation monthly: narrative/reports, calendars, sign-in sheets, Cityprovided units of service workbook and other measurable metrics to prove expected deliverables are met with SCYTF Administration.

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ï Connect with 2,000 duplicated contacts via all community outreach and intervention activities.

8.Collaboration, Outreaching and Branding Support
ï Coordinate with the City of Gilroy, SCYTF Administration Team, the Gilroy Unified School District and the Monthly MDT partners on outreach, collaboration, and co-branding materials. ï Post all workshops and event flyers pertaining to this work on the SCYTF website. ï Work to further the goals and efforts of building a restorative community and preventing and deescalating youth violence and anti-social behaviors in South County.

9. Must provide a client list (First Initial and Last Initial) that includes the following:
i. Name of youth served;
ii. Include assigned Probation File Numbers for Youth (if applicable); iii. Date of birth of youth served;
iv. Start date of when youth started receiving services; v. End date of when youth stopped receiving services;
vi. ZIP Code of youth served (if available);
vii. Ethnicity of youth served (if available); and
viii. Hours of service per youth by activity type.

12. Groups: Maintain and submit sign-in sheets monthly to track participation, Monthly Units of Service Reports, and pre/post surveys on the start and end of groups.

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violence. This category distinguishes from ìat-riskî population in that it generates additional characteristics demonstrating social-risk factors and level of intensity. iii. ìYouth who demonstrate to be severely impacted/gang intentionalî: Social circle is integrated into intergenerational gang-membership environment and/or affected by intergenerational drug use youth self-identified, and/or are arrested for gang-related incidents or acts of violence through the justice system.

15. Have the needed level of flexibility to attend necessary meetings, including monthly, Technical Team meetings and impromptu climate and crisis meetings; and have ability to work weekends (with 30 day advanced notice) for important or large events and evenings as deemed necessary to carry out successful coordination of project services.

16. Transport of Youth: Transportation can only occur after all necessary insurance(s) have been completed and insurances and waivers meet all necessary insurance guidelines. One-to-one driving is not allowed. Consultant and youth in transport must be of the same gender, or there may be another staff member in the car of the opposite gender. This may include City of Gilroy staff. A guardian/parental permission slip must be signed each time a youth enters CONSULTANT'S vehicle. If transportation occurs under life coaching/case management, all intake paperwork must be up to date and the two-to-one ratio must be enforced. Contact of youth and transportation must follow County and City procedures.

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EXHIBIT ìCî

MILESTONE SCHEDULE
Management Plan
Tracing its origins as far back as 1929, Catholic Charities of Santa Clara County (CCSCC) is a Santa Clara County-based, 501(c)(3) non-profit organization that has provided regular services to the community since 1955 and has been incorporated in California since 1981. Our mission is to serve and advocate for families and individuals in need, especially those living in poverty. We work to create a more just and compassionate community in which people of all cultures and beliefs can participate and prosper. In alignment with this mission, CCSCC has provided services for County residents since its inception and currently serves more than 86,000 individuals through more than 30 direct service programs delivered at 90+ locations. With an operating budget of over $50 million, CCSCCís staff and 25-member Board of Directors employ strong management and fiscal controls to ensure ongoing financial health.

CCSCC will deliver services through its YES team. This teamís experience in program delivery with children, youth and young adults; collaboration with partner organizations; mentoring and relationship building skills; and knowledge of the South County region make them effective leaders to pursue the goals of the SCYTF programs. The team has delivered analogous programs to each scope of work with a similar profile of youth with positive results.

The YES Program Director and Senior Program Manager are currently in place, operating from the Washington United Youth Center in San JosÈ and in the community. They have a wide range of experience and knowledge in working with at-promise, high-promise, gang-impacted and - intentional, and justice-involved youth and their families, providing services that have demonstrated effectiveness in reducing risk factors and increasing protective factors.

YES staff are equipped with educational credentials and real-world experience working with atrisk populations, including system-involved youth and families experiencing socio-economic hardship. Michael Bright and Soío Poumele will serve as supervision leads for the case management team. The Case Managers will provide direct services for participants. A Program Financial Analyst will support the team with invoicing and budgeting activities.

Key team members include:

Michael Bright ñ Program Director, YES Department: Michael has over 20 years of experience working with high-risk youth and system-involved populations. He leads WUYCís youth programs with a focus on trauma-informed practice, compliance monitoring, and staff development. Prior to his work at CCSCC, he expanded academic and recreational programs in four South Bay middle schools, mentored high school students, and successfully implemented recruitment and other strategies that increased program enrollment and improved operations.

Michael is also skilled in ensuring grant-funded programs comply with requirements and meet deliverables. Michael holds a Bachelor of Science in Social Science and has completed relevant training and certifications. He will lead the proposed project, ensuring that it stays on track, meets deliverables, and that all evaluation and reporting requirements are fulfilled.

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Soío Poumele ñ YES Senior Program Manager: Soío brings over 25 years of experience working with at-risk and high-risk youth, particularly those involved in the juvenile justice system, to the team. As Program Manager starting in 2006, Soío has trained new staff, applied Trauma-Informed Care principles in youth and family services, developed curricula, and planned and implemented youth programs. He has also created and delivered trainings for agencies working with at-risk or gang-involved youth and adults. Soío also has extensive experience working with government partners in implementing grant-funded programs. He has received certificates of completion through the National Gang Safety Seminar, and is certified to conduct mediation and intervention.

He speaks English, Samoan, and is familiar with Spanish. Soío will oversee direct services and Case Managers and ensure program data is tracked, analyzed and reported on.

Esteban Escalante, Case Manager: Esteban has worked with children and youth in our County since joining CCSCC in 2013 as an after-school instructor. While honing his skills as an educator, Esteban managed classroom behavior; built relationships with parents, teachers, and students; adapted to remote learning methods; and acted as Interim Program Manager. As a Site Supervisor, Esteban supervised 11 staff serving 200+ students, oversaw data entry and management, met reporting requirements, planned activities for instructors, collaborated on soccer coach, delivering a play-based curriculum to build children and youthís cognitive, language, and social and emotional skills. Esteban is a resident of San Martin and is bilingual in English and Spanish. He will help provide the projectís direct services for youth, tracking data and progress.

Martha Diaz-Espinoza, Case Manager: Following five years of progressive leadership in the private sector, Martha changed career paths to focus on delivering high-quality programming to children, youth, and families. As a preschool teacher, Martha implemented curricula, monitored childrenís development, and supported family engagement. Martha joined CCSCC in August 2023 to supervise implementation of a State Office of Child Abuse Prevention (OCAP) program designed to work with youth, young adults, and families to increase leadership, empathy, and selfagency skills; improve job readiness; and expand knowledge of college and career paths and funding resources. In this capacity, Martha conducts outreach and recruitment, engages thoughtfully with participants and partner organizations, delivers dynamic and engaging workshops, provides appropriate referrals to clients, and liaises with school staff on administrative and logistical details. A native of Gilroy, Martha is bilingual in English and Spanish. She will help provide the projectís direct services for youth, tracking data and progress.

Timeline of schedule events may include, but not limited to:

Timeframe, Activity/Deliverable and Details & Expectations NovñDec 2025 Program Launch and Orientation & Late Night Gym (Weekly):

Finalize MOUs with SCYTF Technical Team; confirm Wheeler Gym schedule; outreach to schools/neighborhoods; staff training and orientation.

Launch weekly 3-hour Late Night Gym sessions (Thurs/Fri 5ñ9 pm). Minimum of 8 sessions before year-end. Serve at least 20 unduplicated youth. Provide food at all sessions.

Nov 2025 ñ Jan 2026 Youth Group Cycle 1:

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First evidence-based, culturally responsive youth group (e.g., El Joven Noble, Xinachtli, Life Skills). Serve at least 10 youth.

NovñDec 2025 Outreach & Intervention Begins:

Case Managers on-site 2x per week at identified locations (community centers, library). At least one Peace/Community Circle initiated by December.

JanñMar 2026 Youth Group Cycle 2:

Implement a second group cycle in the identified neighborhood. Serve at least 10 youth.

JanñMar 2026 Late Night Gym (Ongoing):

Continue weekly sessions. Maintain at least 25 unduplicated youth served by March.

Spring Break 2026 (Mar/Apr) Educational/Enrichment Field Trip:

Provide at least one enrichment field trip in lieu of gym (cost included in budget).

AprñJun 2026 Youth Group Cycle 3:

Implement a third group cycle (10+ youth). Culturally responsive, evidence-based.

AprñJun 2026 Community Engagement:

Ongoing outreach 2x per week. Conduct a second Peace/Community Building Circle.

Summer 2026 (JunñAug) Late Night Gym (Ongoing):

Continue weekly sessions, offer 1ñ2 summer enrichment field trips (e.g., college visits, recreational trips). By August, at least 40 unduplicated youth served.

JulñSep 2026 Youth Group Cycle 4:

Implement a fourth group cycle. Serve another 10+ youth.

November 2026 Final Quarter Programming:

Conduct entry/exit surveys for all youth group participants. Track and report behavior/well-being changes.

November 2026 Close-Out & Final Report:

Submit final program report summarizing outcomes, youth served, outreach contacts, and lessons learned.

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EXHIBIT ìDî

PAYMENT SCHEDULE
EXHIBIT ìDî

PAYMENT SCHEDULE
A. Compensation to CONSULTANT Catholic Charities of Santa Clara County shall be contingent upon successful completion of the services outlined in EXHIBIT B, SCOPE OF SERVICES. A statement of all professional services outlined under this AGREEMENT shall be prepared by CONSULTANT atholic Charities of Santa Clara County and submitted to the City of Gilroy on or before the 10th day of the month, following the billing month, following completion of each of the Services identified in EXHIBIT B. If the services have been completed to the satisfaction of the City of Gilroy, the CITY shall make payment to the CONSULTANT within thirty (30) business days after receipt of the statement and approval thereof.

B. The maximum amount of compensation to be paid to CONSULTANT under this AGREEMENT shall not exceed $103,448 CONSULTANT to successfully complete the project within the 12 month period. Reimbursement will be based on work completed, per budget specifications.

C. Any hours worked for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to CITY. All contract deliverables needed for payment are stated in Exhibit B and include the completion of a monthly invoice, with relevent direct expenses back up, monthly narrative and statistical reporting to show measurement for successful targeted youth intervention, groups and pro-social activities in pre-designated areas.

Quarters Invoice Deadline
November 4, 2025- December 31, 2025 January 8, 2026
January 1, 2026- March 31, 2026 April 8, 2026
April 1, 2026-June 30, 2026 June 20, 2026
July 1, 2026-September 30, 2026 October 8, 2026
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October 1, 2026- November 4, 2026 December 8, 2026

Please allow up to 30 business days between submittal of invoice and confirmed back up verification for the processing of payment. Back up includes but it not limited to any of the following:
timecard for program coordinator, sign in sheets for services and programs sponsored by this agreement, fliers and brochures, pictures for program activities, meeting agendas and notes, and any other documentation related to the any of the diversion program activities. Invoices will be returned if necessary back up is not attached and timing of check processing will be paused.

D. BUDGET - Catholic Charities of Santa Clara CountyTotal Program Budget $103,448 Personnel Annual Salary & FTE Program Salary
Program Director, Michael Bright $110,313 @ 0.03 FTE $3,309 Senior Program Manager, So'o Poumele $111, 729 @ 0.05 $5,586 Case Manager, Esteban Escalante $58, 402 @ 0.35 $20,441 Case Manager, Martha Diaz- Espinoza 72, 842 @ 0.30 $21,852 Program Financial Analyst, Svitlana Vialaire $ 91, 759 @ 0.01 $918 Taxes and Benefits 32.61% Rpresenting Health Plan, $16, 992 life and disability insurance, and 401K.

PERSONNEL SUBTOTAL $69,098

OPERATING COST
Food Healthy snacks and refreshments to increase attendance and encourage participation. $1,600
Office Supplies Standard consumable office supplies (pens, paper, printer ink). $50
Pro-Social Activities Cost of entry tickets, equipment, supplies for pro-social outings and activities. $1,500
Telephone Employee reimbursement for cell phone use ($40/mo per FTE). 355$ Mileage Employee mileage reimbursement and van use at current federal rate for required travel between program / work sites. $3,600
IT & Communications IT support and technology resources, internet access, GSuite, video-conferencing, related costs to facilitate program delivery, data tracking, reporting. Allocation based on number of FTEs. $2,842
AWARDS Database Agency-wide client information database; based on # FTEs. $1,376 Docusign Envelope ID: A59E8A34-8C29-41E5-BC5F-0B5B8FF6B76D

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Insurance General liability insurance; based on # FTEs. $1,634 Occupancy Allocated cost of maintenance, utilities, janitorial, depreciation for staff offices at Washington United Youth Center where majority of budgeted staff are based. Calculated based on sq ft occupied. $7,900.

OPERATING COST SUBTOTAL $20, 857
Administrative Cost 15% of direct cost- HR, payroll, fiscal, compliance, executive and administrative support needed for contract and program delivery. $13, 493 TOTAL PROGRAM EXPENSES $103, 448
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City of Gilroy

STAFF REPORT
Agenda Item Title: Award a Contract to Catholic Charities of Santa Clara County for $103,448 for South County Youth Task Force CommunityBased Services for Youth Meeting Date: November 3, 2025
From: Brad Kilger, Interim City Administrator
Department: Police Department
Submitted by: Ken Binder, Interim Chief of Police
Prepared by: Patricia Vigil, Management Analyst
STRATEGIC PLAN GOALS: Ensure Neighborhood Equity from City Services

RECOMMENDATION

1. Award a contract to Catholic Charities of Santa Clara County (CCSCC) in the amount of $103,448 for community-based services for youth, Project No. 25- RFP-PD-524

2. Authorize the City Administrator to execute the contract and associated documents

EXECUTIVE SUMMARY
In January 2012, the City of Gilroy, City of Morgan Hill, Gilroy and Morgan Hill Unified School Districts and the Santa Clara County Board of Supervisors met and created the South County Youth Task Force (SCYTF) to address the effects of violence and gangs on youth and in the community.

Funding is provided through the SCYTF, Cities of Gilroy and Morgan Hill, Gilroy and Morgan Hill School Districts (GUSD and MHUSD), Santa Clara County Library District, Santa Clara County Juvenile Probation Department, the Santa Clara County Neighborhood Safety Unit, and the Santa Clara County District Attorney’s Office. As the fiscal agent for the South County Youth Task Force, the Gilroy Police Department

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(GPD) manages SCYTF funding. Funding from the District Attorney’s Office, Santa Clara County Library District, and the Gilroy Unified School District will be used to cover the total amount of this agreement.

The funding has sponsored many programs such as the Restorative Community Circles with GPD, Resident Leadership Development, School-based and Community-based Youth Restorative Justice, Case Management, Crisis Response, Street Outreach, National Compadres Network Xinachtli/Joven Noble Circles, Late Night Gyms, a Mentorship Boxing Program, After School Programs in both Morgan Hill and Gilroy and training opportunities for the SCYTF body, made up of over 45 different organizations.

BACKGROUND
On September 3, 2025, Request for Proposals (RFP) 25-RFP-PD-524 was published on the City of Gilroy’s website, soliciting proposals from Community-Based Organizations (CBOs) to provide professional consulting services for the SCYTF Community-Based Services for the Project II THRIVE (Transformation and Hope, Resiliency, Integrity, Voice & Engagement). A total of three proposals were received.

On October 8, 2025, a notice of intent to award the contract was published, selecting Catholic Charities of Santa Clara County as the consultant. No protests were received by the October 15th deadline, allowing staff to proceed with the next steps to request City Council award of the contract.

ANALYSIS
The South County Youth Task Force (SCYTF) is a regional partnership dedicated to serving, supporting, and uplifting our youth in South Santa Clara County (Morgan Hill, Gilroy, and the unincorporated town of San Martin). This collaboration includes local governments, school districts, community and faith-based organizations, and law enforcement agencies. SCYTF’s work is guided by its Mission and Vision:

Mission: To promote a safe and nurturing community that creates and ensures sustainable access to opportunities, resources, and services for South County youth and their families, while empowering their voice and supporting their growth and success.

Vision: A community that is safe and free of youth violence where young people are strong, thriving and connected to their families, schools, and neighborhoods.

The community-based services are offered throughout the Gilroy Community for youth ages 9-17 and young adults ages 18-20 to prevent violence. Services are prioritized for youth who live in an opportunity neighborhood with high disparities (e.g., poverty, food

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insecurity, gang exposure, violence, drugs); are on probation or impacted by gang involvement; and/or fall within the spectrum from At-Promise (At-Risk) to High-Promise (High-Risk) Youth. SCYTF community-based programs offer alternative options for youth to be able to access services and programs in their neighborhood, which are provided at no cost.

These youth services are part of the South County Project II THRIVE (Transformation and Hope, Resiliency, Integrity, Voice & Engagement) Project, in an effort to prevent and reduce juvenile delinquent behaviors, prevent/ reduce recruitment of youth into gangs and prevent/ reduce youth violence in South Santa Clara County per the 2023- 2026 SCYTF Strategic Plan.

Proposals were received from three vendors:

1. Empowering Our Community for Success

2. Catholic Charities of Santa Clara County

3. Youth Alliance
A scoring committee reviewed and ranked the proposals received based on the criteria identified in the RFP. Based on the scoring proposals, Catholic Charities of Santa Clara County was determined to be the most qualified vendor for this assignment due to their understanding and approach to the project, proposed scope of services, qualifications, capacity to provide qualified personnel, and project cost-effectiveness.

ALTERNATIVES
Council could reject the award of the contract to CCSCC. Staff does not recommend this option as it would mean the SCYTF Strategic Plan to deliver community-based youth services and the continuation of the youth programs would be impacted.

FISCAL IMPACT/FUNDING SOURCE
The proposed agreement with CCSCC is for $103,448. Funding for this project is provided by the South County Youth Task Force's contributing agencies, including the District Attorney’s Office, Gilroy Unified School District, and Santa Clara County Library District.

There are sufficient budgetary appropriations included in the adopted FY26 budget within the South County Youth Task Force Fund (227).

PUBLIC OUTREACH
n/a

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NEXT STEPS
If approved by Council, the agreement will be executed, and preparations will be made to begin providing services to youth.

Attachments:

1. 25-RFP-PD-524 Notice of Intent to Award – Catholic Charities of Santa Clara County

2. Draft Service Agreement 25-RFP-PD-524

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Gilroy Police Department
City of Gilroy
7301 Hanna Street
Gilroy, California
95020-6129
Admin. (408) 846-0310
Comm. (408) 846-0350
Records (408) 846-0300
Fax (408) 846-0339

KEN BINDER
Interim Chief of Police
Notice of Intent to Award
South County Youth Task Force (SCYTF) Community-Based Youth Services
Project No. 25-RFP-PD524
October 8, 2025

Notice is hereby given that the City of Gilroy intends to award a contract to Catholic Charities of Santa Clara County
The proposed award is the result of the department’s Request for Proposals (RFP) listed below:

South County Youth Task Force Community-Based Youth Services This notice constitutes compliance with the State Contracting Manual Sections 5.65 and

6.10 A. Any protests concerning this proposed award must be filed with the City of Gilroy Purchasing Coordinator and date stamped at the Finance Counter, 7351 Rosanna Street, Gilroy CA 95020 by 5:00 PM on October 15, 2025.

This notice and all documents pertaining to this invitation for bids is available on the City website at: https://www.cityofgilroy.org/Bids.aspx Best regards,
Ken Binder, Interim Chief of Police
City of Gilroy

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AGREEMENT FOR SERVICES
(For contracts over $5,000 - CONSULTANT)
This AGREEMENT made this 21 day of October, 2025, between:

ARTICLE 1. TERM OF AGREEMENT
This Agreement will become effective on October 21, 2025 and will continue in effect through October 31, 2026 unless terminated in accordance with the provisions of Article 7 of this Agreement.

CONSULTANT shall not be entitled to any of the rights or benefits afforded to CITY’S employees, including, without limitation, disability or unemployment insurance, workers’ compensation, medical insurance, sick leave, retirement benefits or any other employment benefits. CONSULTANT shall retain the right to perform services for others during the term of this Agreement.

ARTICLE 3. SERVICES TO BE PERFORMED BY CONSULTANT
A. Specific Services
CONSULTANT agrees to: Perform the services as outlined in Exhibit “A” (“Specific Provisions”) and Exhibit “B” (“Scope of Services”), within the time periods described in Exhibit “C” (“Milestone Schedule”).

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C. Employment of Assistants
CONSULTANT may, at the CONSULTANT’S own expense, employ such assistants as CONSULTANT deems necessary to perform the services required of CONSULTANT by this Agreement, subject to the prohibition against assignment and subcontracting contained in Article 5 below. CITY may not control, direct, or supervise CONSULTANT’S assistants in the performance of those services. CONSULTANT assumes full and sole responsibility for the payment of all compensation and expenses of these assistants and for all state and federal income tax, unemployment insurance, Social Security, disability insurance and other applicable withholding.

ARTICLE 4. COMPENSATION
A. Consideration
In consideration for the services to be performed by CONSULTANT, CITY agrees to pay CONSULTANT the amounts set forth in Exhibit “D” (“Payment Schedule”). In no event however shall the total compensation paid to CONSULTANT exceed $103,448.

B. Invoices
CONSULTANT shall submit invoices for all services rendered.

C. Payment
Payment shall be due according to the payment schedule set forth in Exhibit “D”. No payment will be made unless CONSULTANT has first provided City with a written receipt of invoice describing the work performed during the preceding period. If CITY objects to all or any portion of any invoice, CITY shall notify CONSULTANT of the objection within thirty (30) days from receipt of the invoice, give reasons for the objection, and pay that portion of the invoice not in dispute. It shall not constitute a default or breach of this Agreement for CITY not to pay any invoiced amounts to which it has objected until the objection has been resolved by mutual agreement of the parties.

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ARTICLE 5. OBLIGATIONS OF CONSULTANT
A. Tools and Instrumentalities
CONSULTANT shall supply all tools and instrumentalities required to perform the services under this Agreement at its sole cost and expense. CONSULTANT is not required to purchase or rent any tools, equipment or services from CITY.

B. Workers’ Compensation
CONSULTANT agrees to provide workers’ compensation insurance for CONSULTANT’S employees and agents and agrees to hold harmless, defend with counsel acceptable to CITY and indemnify CITY, its officers, representatives, agents and employees from and against any and all claims, suits, damages, costs, fees, demands, causes of action, losses, liabilities and expenses, including without limitation reasonable attorneys’ fees, arising out of any injury, disability, or death of any of CONSULTANT’S employees.

C. Indemnification of Liability, Duty to Defend

1. As to professional liability, to the fullest extent permitted by law, CONSULTANT shall defend, through counsel approved by CITY (which approval shall not be unreasonably withheld), indemnify and hold harmless CITY, its officers, representatives, agents and employees against any and all suits, damages, costs, fees, claims, demands, causes of action, losses, liabilities and expenses, including without limitation attorneys’ fees, to the extent arising or resulting directly or indirectly from any willful or negligent acts, errors or omissions of CONSULTANT or CONSULTANT’S assistants, employees or agents, including all claims relating to the injury or death of any person or damage to any property.

2. As to other liability, to the fullest extent permitted by law, CONSULTANT shall defend, through counsel approved by CITY (which approval shall not be unreasonably withheld), indemnify and hold harmless CITY, its officers, representatives, agents and employees against any and all suits, damages, costs, fees, claims, demands, causes of action, losses, liabilities and expenses, including without limitation attorneys’ fees, arising or resulting directly or indirectly from any act or omission of CONSULTANT or CONSULTANT’S assistants, employees or agents, including all claims relating to the injury or death of any person or damage to any property.

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set forth below. Professional Liability Insurance written on a claims made basis (including without limitation the initial policy obtained and all subsequent policies purchased as renewals or replacements) must show the retroactive date, and the retroactive date must be before the earlier of the effective date of the contract or the beginning of the contract work. Claims made Professional Liability Insurance must be maintained, and written evidence of insurance must be provided, for at least five (5) years after the completion of the contract work. If claims made coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a retroactive date prior to the earlier of the effective date of the contract or the beginning of the contract work, CONSULTANT must purchase so called “extended reporting” or “tail” coverage for a minimum of five (5) years after completion of work, which must also show a retroactive date that is before the earlier of the effective date of the contract or the beginning of the contract work.

As a condition precedent to CITY’S obligations under this Agreement, CONSULTANT shall furnish written evidence of such coverage (naming CITY, its officers and employees as additional insureds on the Comprehensive Liability insurance policy referred to in (a) immediately above via a specific endorsement) and requiring thirty (30) days written notice of policy lapse or cancellation, or of a material change in policy terms.

F. State and Federal Taxes
As CONSULTANT is not CITY’S employee, CONSULTANT shall be responsible for paying all required state and federal taxes. Without limiting the foregoing, CONSULTANT acknowledges and agrees that:
• CITY will not withhold FICA (Social Security) from CONSULTANT’S payments;
• CITY will not make state or federal unemployment insurance contributions on CONSULTANT’S behalf;
• CITY will not withhold state or federal income tax from payment to CONSULTANT;
• CITY will not make disability insurance contributions on behalf of CONSULTANT;
• CITY will not obtain workers’ compensation insurance on behalf of CONSULTANT.

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ARTICLE 6. OBLIGATIONS OF CITY
A. Cooperation of City
CITY agrees to respond to all reasonable requests of CONSULTANT and provide access, at reasonable times following receipt by CITY of reasonable notice, to all documents reasonably necessary to the performance of CONSULTANT’S duties under this Agreement.

ARTICLE 7. TERMINATION OF AGREEMENT
A. Sale of Consultant’s Business/ Death of Consultant.

CONSULTANT shall notify CITY of the proposed sale of CONSULTANT’s business no later than thirty (30) days prior to any such sale. CITY shall have the option of terminating this Agreement within thirty (30) days after receiving such notice of sale. Any such CITY termination pursuant to this Article 7.A shall be in writing and sent to the address for notices to CONSULTANT set forth in Exhibit A, Subsection V.H., no later than thirty (30) days after CITY’ receipt of such notice of sale.

If CONSULTANT is an individual, this Agreement shall be deemed automatically terminated upon death of CONSULTANT.

B. Termination by City for Default of Consultant
Should CONSULTANT default in the performance of this Agreement or materially breach any of its provisions, CITY, at CITY’S option, may terminate this Agreement by giving written notification to CONSULTANT. For the purposes of this section, material breach of this Agreement shall include, but not be limited to the following:

1. CONSULTANT’S failure to professionally and/or timely perform any of the services contemplated by this Agreement.

2. CONSULTANT’S breach of any of its representations, warranties or covenants contained in this Agreement.

CONSULTANT shall be entitled to payment only for work completed in accordance with the terms of this Agreement through the date of the termination notice, as reasonably determined by CITY, provided that such payment shall not exceed the amounts set forth in this Agreement for the tasks described on Exhibit C” which have been fully, competently and timely rendered by CONSULTANT. Notwithstanding the foregoing, if CITY terminates this Agreement due to CONSULTANT’S default in the performance of this Agreement or material breach by CONSULTANT of any of its provisions, then in addition to any other rights and remedies CITY

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may have, CONSULTANT shall reimburse CITY, within ten (10) days after demand, for any and all costs and expenses incurred by CITY in order to complete the tasks constituting the scope of work as described in this Agreement, to the extent such costs and expenses exceed the amounts CITY would have been obligated to pay CONSULTANT for the performance of that task pursuant to this Agreement.

C. Termination for Failure to Make Agreed-Upon Payments Should CITY fail to pay CONSULTANT all or any part of the compensation set forth in Article 4 of this Agreement on the date due, then if and only if such nonpayment constitutes a default under this Agreement, CONSULTANT, at the CONSULTANT’S option, may terminate this Agreement if such default is not remedied by CITY within thirty (30) days after demand for such payment is given by CONSULTANT to CITY.

D. Transition after Termination
Upon termination, CONSULTANT shall immediately stop work, unless cessation could potentially cause any damage or harm to person or property, in which case CONSULTANT shall cease such work as soon as it is safe to do so. CONSULTANT shall incur no further expenses in connection with this Agreement. CONSULTANT shall promptly deliver to CITY all work done toward completion of the services required hereunder, and shall act in such a manner as to facilitate any the assumption of CONSULTANT’s duties by any new consultant hired by the CITY to complete such services.

B. Americans with Disabilities Act of 1990
Throughout the term of this Agreement, the CONSULTANT shall comply fully with all applicable provisions of the Americans with Disabilities Act of 1990 (“the Act”) in its current form and as it may be amended from time to time. CONSULTANT shall also require such compliance of all subcontractors performing work under this Agreement, subject to the prohibition against assignment and subcontracting contained in Article 5 above. The CONSULTANT shall defend with counsel acceptable to CITY, indemnify and hold harmless the CITY OF GILROY, its officers, employees, agents and representatives from and against all suits, claims, demands, damages, costs, causes of action, losses, liabilities, expenses and fees, including without limitation reasonable attorneys’ fees, that may arise out of any violations of the Act by the CONSULTANT, its subcontractors, or the officers, employees, agents or representatives of either.

C. Attorneys’ Fees
If any action at law or in equity, including an action for declaratory relief, is brought to enforce or interpret the provisions of this Agreement, the prevailing party will be entitled to reasonable

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attorneys’ fees, which may be set by the court in the same action or in a separate action brought for that purpose, in addition to any other relief to which that party may be entitled.

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H. Governing Law and Venue
This Agreement shall be governed by and construed in accordance with the laws of the State of California without regard to the conflict of laws provisions of any jurisdiction. The exclusive jurisdiction and venue with respect to any and all disputes arising hereunder shall be in state and federal courts located in Santa Clara County, California.

Mailed notices shall be addressed to the parties at the addresses appearing in Exhibit “A”, Section V.H. but each party may change the address by written notice in accordance with this paragraph.

Notices delivered personally will be deemed delivered as of actual receipt; mailed notices will be deemed delivered as of three (3) days after mailing.

K. Time of the Essence
All dates and times referred to in this Agreement are of the essence.

Executed at Gilroy, California, on the date and year first above written.

CONSULTANT: CITY:

Catholic Charities of Santa Clara County CITY OF GILROY By: By:

Name: Don Taylor Name: Brad Kilger
Title: Chief Executive Officer Title: Interim Administrator, City of Gilroy
Social Security or Taxpayer
Identification Number 94-2762269

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Approved as to Form ATTEST:

City Attorney City Clerk

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EXHIBIT “A”

SPECIFIC PROVISIONS
I. PROJECT MANAGER
CONSULTANT shall provide the services indicated on the attached Exhibit “B”, Scope of Services (“Services”). (All exhibits referenced are incorporated herein by reference.) To accomplish that end, CONSULTANT agrees to assign So'o Poumele , who will act in the capacity of Project Manager, and who will personally direct such Services.

II. NOTICE TO PROCEED/COMPLETION OF SERVICE
A. NOTICE TO PROCEED
CONSULTANT shall commence the Services upon delivery to CONSULTANT of a written “Notice to Proceed”, which Notice to Proceed shall be in the form of a written communication from designated City contact person(s). Notice to Proceed may be in the form of e-mail, fax or letter authorizing commencement of the Services. For purposes of this Agreement, Sandra Cruz, South County Youth Task Force Coordinator shall be the designated City contact person(s).

Notice to Proceed shall be deemed to have been delivered upon actual receipt by CONSULTANT or if otherwise delivered as provided in the Section V.H. (“Notices”) of this Exhibit “A”.

III. PROGRESS SCHEDULE
The schedule for performance and completion of the Services will be as set forth in the attached Exhibit “C”.

IV. PAYMENT OF FEES AND DIRECT EXPENSES
Payments shall be made to CONSULTANT as provided for in Article 4 of this Agreement.

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Copies of pertinent financial records, including invoices, will be included with the submission of billing(s) for all direct expenses.

V. OTHER PROVISIONS
A. STANDARD OF WORKMANSHIP
CONSULTANT 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 CONSULTANT’S representations and warranties regarding its skills, qualifications and licenses. CONSULTANT shall perform such Services and duties in conformance to and consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California.

B. RESPONSIBILITY OF CONSULTANT
CONSULTANT shall be responsible for the professional quality, technical accuracy, and the coordination of the Services furnished by it under this Agreement. CONSULTANT shall not be responsible for the accuracy of any project or technical information provided by the CITY. The CITY’S review, acceptance or payment for any of the Services shall not be construed to operate as a waiver of any rights under this Agreement or of any cause of action arising out of the performance of this Agreement, and CONSULTANT shall be and remain liable to CITY in accordance with applicable law for all damages to CITY caused by CONSULTANT’S negligent performance of any of the services furnished under this Agreement.

C. RIGHT OF CITY TO INSPECT RECORDS OF CONSULTANT
CITY, through its authorized employees, representatives or agents, shall have the right, at any and all reasonable times, to audit the books and records (including, but not limited to, invoices, vouchers, canceled checks, time cards, etc.) of CONSULTANT for the purpose of verifying any and all charges made by CONSULTANT in connection with this Agreement. CONSULTANT shall maintain for a minimum period of three (3) years (from the date of final payment to CONSULTANT), 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 CONSULTANT, all of which shall be made available to CITY at the CITY’s offices within five (5) business days after CITY’s request.

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other information developed or received by or for CONSULTANT and all other written and oral information developed or received by or for CONSULTANT and all other written and oral information submitted to CONSULTANT in connection with the performance of this Agreement shall be held confidential by CONSULTANT and shall not, without the prior written consent of CITY, be used for any purposes other than the performance of the Services, nor be disclosed to an entity not connected with the performance of the such Services. Nothing furnished to CONSULTANT which is otherwise known to CONSULTANT or is or becomes generally known to the related industry (other than that which becomes generally known as the result of CONSULTANT’S disclosure thereof) shall be deemed confidential. CONSULTANT shall not use CITY’S name or insignia, or distribute publicity pertaining to the services rendered under this Agreement in any magazine, trade paper, newspaper or other medium without the express written consent of CITY.

E. NO PLEDGING OF CITY’S CREDIT.

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

F. OWNERSHIP OF MATERIAL.

G. NO THIRD PARTY BENEFICIARY.

H. NOTICES.

Notices are to be sent as follows:

CITY: Sandra Cruz, SCYTF Coordinator
City of Gilroy
7351 Rosanna Street
Gilroy, CA 95020

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CONSULTANT: Gregory Kepferle
Chief Executive Officer
Catholic Charities of Santa Clara County
2625 Zanker Rd #201
San Jose, CA 95134

I. FEDERAL FUNDING REQUIREMENTS.

If the box to the left of this sentence is checked, this Agreement involves federal funding and the requirements of this Section V.I. apply.

If the box to the left of this sentence is checked, this Agreement does not involve federal funding and the requirements of this Section V.I. do not apply.

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

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

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EXHIBIT “B”

CONSULTANT Catholic Charities of Santa Clara County shall complete the following services:

1.Late Night Gym / Pro-Social Program:
• Coordinate, facilitate, and manage one (1) weekly Late Night Gym on Thursday or Friday evenings (weekly evening pro-social program) at the Wheeler Gym in Gilroy. • Sessions must last a minimum of three (3) hours, between 5:00 PM – 9:00 PM. • Serve at least 50 unduplicated youth over the program term. • Program must be evidence-based or evidence-promising and culturally responsive. • Provide healthy food options at each weekly session.
• Ensure proper use, maintenance, storage, security and care of all program equipment. • For summer and school breaks, weekly educational and enrichment fieldtrips are encouraged in lieu of program (cost is part of the program budget).

2. Four (4) Evidence-Based, Culturally Responsive Youth Groups in the Neighborhoods:
• Implement four (4) evidence-based or life skills youth group cycles throughout the 12-month contract period (e.g., El Joven Noble, Xinachtli Rights of Passage, Cara Y Corazon; Life Skills Programs, such as Why Try, BOTVIN groups, Restorative Justice based groups, or other preapproved curricula (curriculum must be submitted), at selected community locations. • Groups should be distributed over the year in strategically identified opportunity neighborhoods, as recommended by SCYTF (e.g., 4 in the fall/ winter and 4 in the spring/summer). • Each group must serve a minimum of 10 unduplicated youth, for a total of 40 unduplicated individuals, served across all groups.
• The Consultant must submit all curricula for pre-approval.

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3. Outreach, Community Engagement and Intervention:
• Provide intervention and engagement support at identified key community center(s) and/or library sites.
• Conduct outreach a minimum of two days per week for at least four (4) hours per day. Locations will vary depending on the need.
• Facilitate at least one Peace/ Community Building Circle series at an identified community center, such as at San Ysidro Park, Las Animas Park Gilroy Library or the Wheeler Gym. • Conduct outreach for the SCYTF Late Night Gym program.

4. Secondary Crisis Response:
• Support identified neighborhoods and around school sites in maintaining a positive and safe culture.
• Build rapport with youth in identified neighborhoods to introduce services, opportunities for selfreferral, and invitation to participate in SCYTF and greater collaborative services/activities. • Activities may include restorative circles, one-on-one support, ‘get-to-know-you’ activities before/after school, and during late evening pro-social activities.

5. Linkage and Referral
• Connect youth and their families to relevant community and county services and resources.

6. Collaboration and Participation:
• Participate in monthly Technical Team, Multi-Disciplinary Team (MDT), and ad-hoc Violence Disruption meetings.
• Lead or co-chair at least one Tech Team subcommittees. • Collaborate with the City of Gilroy, GUSD, and other partners with an SCYTF MOU to further violence prevention goals.

7. Program Evaluation and Reporting
• Serve a total of 90 unduplicated youth (ages 9-24) across all services. • Conduct entrance and exit surveys at the end of services (as they pertain to the strategy) to measure changes in behavior and well-being.
• Submit the following documentation monthly: narrative/reports, calendars, sign-in sheets, Cityprovided units of service workbook and other measurable metrics to prove expected deliverables are met with SCYTF Administration.

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• Connect with 2,000 duplicated contacts via all community outreach and intervention activities.

8.Collaboration, Outreaching and Branding Support
• Coordinate with the City of Gilroy, SCYTF Administration Team, the Gilroy Unified School District and the Monthly MDT partners on outreach, collaboration, and co-branding materials. • Post all workshops and event flyers pertaining to this work on the SCYTF website. • Work to further the goals and efforts of building a restorative community and preventing and deescalating youth violence and anti-social behaviors in South County.

12. Groups: Maintain and submit sign-in sheets monthly to track participation, Monthly Units of Service Reports, and pre/post surveys on the start and end of groups.

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violence. This category distinguishes from “at-risk” population in that it generates additional characteristics demonstrating social-risk factors and level of intensity. iii. “Youth who demonstrate to be severely impacted/gang intentional”: Social circle is integrated into intergenerational gang-membership environment and/or affected by intergenerational drug use youth self-identified, and/or are arrested for gang-related incidents or acts of violence through the justice system.

15. Have the needed level of flexibility to attend necessary meetings, including monthly, Technical Team meetings and impromptu climate and crisis meetings; and have ability to work weekends (with 30 day advanced notice) for important or large events and evenings as deemed necessary to carry out successful coordination of project services.

16. Transport of Youth: Transportation can only occur after all necessary insurance(s) have been completed and insurances and waivers meet all necessary insurance guidelines. One-to-one driving is not allowed. Consultant and youth in transport must be of the same gender, or there may be another staff member in the car of the opposite gender. This may include City of Gilroy staff. A guardian/parental permission slip must be signed each time a youth enters CONSULTANT'S vehicle. If transportation occurs under life coaching/case management, all intake paperwork must be up to date and the two-to-one ratio must be enforced. Contact of youth and transportation must follow County and City procedures.

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EXHIBIT “C”

MILESTONE SCHEDULE
Management Plan
Tracing its origins as far back as 1929, Catholic Charities of Santa Clara County (CCSCC) is a Santa Clara County-based, 501(c)(3) non-profit organization that has provided regular services to the community since 1955 and has been incorporated in California since 1981. Our mission is to serve and advocate for families and individuals in need, especially those living in poverty. We work to create a more just and compassionate community in which people of all cultures and beliefs can participate and prosper. In alignment with this mission, CCSCC has provided services for County residents since its inception and currently serves more than 86,000 individuals through more than 30 direct service programs delivered at 90+ locations. With an operating budget of over $50 million, CCSCC’s staff and 25-member Board of Directors employ strong management and fiscal controls to ensure ongoing financial health.

CCSCC will deliver services through its YES team. This team’s experience in program delivery with children, youth and young adults; collaboration with partner organizations; mentoring and relationship building skills; and knowledge of the South County region make them effective leaders to pursue the goals of the SCYTF programs. The team has delivered analogous programs to each scope of work with a similar profile of youth with positive results.

The YES Program Director and Senior Program Manager are currently in place, operating from the Washington United Youth Center in San José and in the community. They have a wide range of experience and knowledge in working with at-promise, high-promise, gang-impacted and - intentional, and justice-involved youth and their families, providing services that have demonstrated effectiveness in reducing risk factors and increasing protective factors.

YES staff are equipped with educational credentials and real-world experience working with atrisk populations, including system-involved youth and families experiencing socio-economic hardship. Michael Bright and So’o Poumele will serve as supervision leads for the case management team. The Case Managers will provide direct services for participants. A Program Financial Analyst will support the team with invoicing and budgeting activities.

Key team members include:

Michael Bright – Program Director, YES Department: Michael has over 20 years of experience working with high-risk youth and system-involved populations. He leads WUYC’s youth programs with a focus on trauma-informed practice, compliance monitoring, and staff development. Prior to his work at CCSCC, he expanded academic and recreational programs in four South Bay middle schools, mentored high school students, and successfully implemented recruitment and other strategies that increased program enrollment and improved operations.

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So’o Poumele – YES Senior Program Manager: So’o brings over 25 years of experience working with at-risk and high-risk youth, particularly those involved in the juvenile justice system, to the team. As Program Manager starting in 2006, So’o has trained new staff, applied Trauma-Informed Care principles in youth and family services, developed curricula, and planned and implemented youth programs. He has also created and delivered trainings for agencies working with at-risk or gang-involved youth and adults. So’o also has extensive experience working with government partners in implementing grant-funded programs. He has received certificates of completion through the National Gang Safety Seminar, and is certified to conduct mediation and intervention.

He speaks English, Samoan, and is familiar with Spanish. So’o will oversee direct services and Case Managers and ensure program data is tracked, analyzed and reported on.

Esteban Escalante, Case Manager: Esteban has worked with children and youth in our County since joining CCSCC in 2013 as an after-school instructor. While honing his skills as an educator, Esteban managed classroom behavior; built relationships with parents, teachers, and students; adapted to remote learning methods; and acted as Interim Program Manager. As a Site Supervisor, Esteban supervised 11 staff serving 200+ students, oversaw data entry and management, met reporting requirements, planned activities for instructors, collaborated on soccer coach, delivering a play-based curriculum to build children and youth’s cognitive, language, and social and emotional skills. Esteban is a resident of San Martin and is bilingual in English and Spanish. He will help provide the project’s direct services for youth, tracking data and progress.

Martha Diaz-Espinoza, Case Manager: Following five years of progressive leadership in the private sector, Martha changed career paths to focus on delivering high-quality programming to children, youth, and families. As a preschool teacher, Martha implemented curricula, monitored children’s development, and supported family engagement. Martha joined CCSCC in August 2023 to supervise implementation of a State Office of Child Abuse Prevention (OCAP) program designed to work with youth, young adults, and families to increase leadership, empathy, and selfagency skills; improve job readiness; and expand knowledge of college and career paths and funding resources. In this capacity, Martha conducts outreach and recruitment, engages thoughtfully with participants and partner organizations, delivers dynamic and engaging workshops, provides appropriate referrals to clients, and liaises with school staff on administrative and logistical details. A native of Gilroy, Martha is bilingual in English and Spanish. She will help provide the project’s direct services for youth, tracking data and progress.

Timeline of schedule events may include, but not limited to:

Timeframe, Activity/Deliverable and Details & Expectations Oct 21–31, 2025 Program Launch and Orientation:

Finalize MOUs with SCYTF Technical Team; confirm Wheeler Gym schedule; outreach to schools/neighborhoods; staff training and orientation.

Nov–Dec 2025 Late Night Gym (Weekly):

Launch weekly 3-hour Late Night Gym sessions (Thurs/Fri 5–9 pm). Minimum of 8 sessions before year-end. Serve at least 20 unduplicated youth. Provide food at all sessions.

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Nov 2025 – Jan 2026 Youth Group Cycle 1:

First evidence-based, culturally responsive youth group (e.g., El Joven Noble, Xinachtli, Life Skills). Serve at least 10 youth.

Nov–Dec 2025 Outreach & Intervention Begins:

Case Managers on-site 2x per week at identified locations (community centers, library). At least one Peace/Community Circle initiated by December.

Jan–Mar 2026 Youth Group Cycle 2:

Implement a second group cycle in the identified neighborhood. Serve at least 10 youth.

Jan–Mar 2026 Late Night Gym (Ongoing):

Continue weekly sessions. Maintain at least 25 unduplicated youth served by March.

Spring Break 2026 (Mar/Apr) Educational/Enrichment Field Trip:

Provide at least one enrichment field trip in lieu of gym (cost included in budget).

Apr–Jun 2026 Youth Group Cycle 3:

Implement a third group cycle (10+ youth). Culturally responsive, evidence-based.

Apr–Jun 2026 Community Engagement:

Ongoing outreach 2x per week. Conduct a second Peace/Community Building Circle.

Summer 2026 (Jun–Aug) Late Night Gym (Ongoing):

Continue weekly sessions, offer 1–2 summer enrichment field trips (e.g., college visits, recreational trips). By August, at least 40 unduplicated youth served.

Jul–Sep 2026 Youth Group Cycle 4:

Implement a fourth group cycle. Serve another 10+ youth.

Oct 2026 Final Quarter Programming:

Conduct entry/exit surveys for all youth group participants. Track and report behavior/well-being changes.

Oct 2026 Close-Out & Final Report:

Submit final program report summarizing outcomes, youth served, outreach contacts, and lessons learned.

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EXHIBIT “D”

PAYMENT SCHEDULE
EXHIBIT “D”

C. Any hours worked for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to CITY. All contract deliverables needed for payment are stated in Exhibit B and include the completion of a monthly invoice, with relevent direct expenses back up, monthly narrative and statistical reporting to show measurement for successful targeted youth intervention, groups and pro-social activities in pre-designated areas.

Quarters Invoice Deadline
October 21, 2025- December 31, 2025 January 8, 2026
January 1, 2026- March 31, 2026 April 8, 2026
April 1, 2026-June 30, 2026 June 20, 2026
July 1, 2026-September 30, 2026 October 8, 2026

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October 1, 31, 2026 November 8, 2026
Please allow up to 30 business days between submittal of invoice and confirmed back up verification for the processing of payment. Back up includes but it not limited to any of the following:
timecard for program coordinator, sign in sheets for services and programs sponsored by this agreement, fliers and brochures, pictures for program activities, meeting agendas and notes, and any other documentation related to the any of the diversion program activities. Invoices will be returned if necessary back up is not attached and timing of check processing will be paused.

PERSONNEL SUBTOTAL $69,098

OPERATING COST
Food Healthy snacks and refreshments to increase attendance and encourage participation. $1,600
Office Supplies Standard consumable office supplies (pens, paper, printer ink). $50
Pro-Social Activities Cost of entry tickets, equipment, supplies for pro-social outings and activities. $1,500
Telephone Employee reimbursement for cell phone use ($40/mo per FTE). 355$ Mileage Employee mileage reimbursement and van use at current federal rate for required travel between program / work sites. $3,600
IT & Communications IT support and technology resources, internet access, GSuite, video-conferencing, related costs to facilitate program delivery, data tracking, reporting. Allocation based on number of FTEs. $2,842
AWARDS Database Agency-wide client information database; based on # FTEs. $1,376 Insurance General liability insurance; based on # FTEs. $1,634

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Occupancy Allocated cost of maintenance, utilities, janitorial, depreciation for staff offices at Washington United Youth Center where majority of budgeted staff are based. Calculated based on sq ft occupied. $7,900.

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7.8. City of Gilroy

STAFF REPORT
Agenda Item Title: Annual Review and Adoption of the City's Investment Policy Meeting Date: October 19, 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
Adopt a resolution (Attachment 1) establishing the City's updated Investment Policy.

EXECUTIVE SUMMARY
Staff recommends the adoption of a new model investment policy to ensure the City’s investment guidelines remain current, consistent with applicable California law and best practices, and are aligned with the City’s current financial operations. The model policy (Attachment 2) provides a standardized framework for safety, liquidity, and prudent investment of public funds, while giving Council clear oversight of the City’s investment activities.

BACKGROUND
Per California Code Section 53646(a) and the City’s Investment Policy, the City Administrator may annually render to the City Council a statement of investment policy, which shall be considered by the Council at a public meeting to ensure its consistency with respect to the overall objectives of safety, liquidity, and yield. Each year Council considers and adopts the City's Investment Policy which has had only minor modifications over the past several years. The City Council last reviewed and adopted the policy in October 2025 (Attachment 3).

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7.8. In August 2026 Council awarded a Professional Services Agreement to Chandler Asset Management, Inc. to provide Investment Management and Advisory services effective September 1, 2026 through June 30, 2029. Chandler Asset Management, Inc. provides Investment Management and Advisory services to multiple municipalities within California. As part of the scope of the agreement, Chandler has provided the attached draft policy for Council consideration, This policy is a Model Investment Policy recommended by Chandler, and is intended to provide the City with an updated and comprehensive framework for the investment of public funds. The proposed policy reflects current statutory requirements and public-sector investment practices and establishes clear parameters for the objectives, authorized investments, diversification, risk management, responsibilities, and reporting associated with the City's investment program.

ANALYSIS
The purpose of this investment policy is to identify various policies and procedures that will foster a prudent and systematic investment program designed to seek the City of Gilroy’s objectives of safety, liquidity and return on investment through a diversified investment portfolio. This policy also serves to organize and formalize the City’s investment-related activities, while complying with all applicable statutes governing the investment of public funds. This policy is written to incorporate industry best practices and recommendations from sources such as the Government Finance Officers Association (GFOA), California Municipal Treasurers Association (CMTA), California Debt and Investment Advisory Commission (CDIAC) and the Association of Public Treasurers (APT). Rather than extensively redlining the City’s existing policy, staff recommends repealing it and replacing it with the new policy.

ALTERNATIVES
The Council could direct staff to make additional adjustments to the policy. This is not recommended as the proposed policy provides adequate guidance for the City's investment program.

FISCAL IMPACT/FUNDING SOURCE
There is no fiscal impact to adopting the City’s General Investment Policy. Review and update of the investment policy is an activity that is included in the Finance Department’s annual and ongoing workplan.

Attachments:

1. Resolution Adopting Investment Policy

2. Exhibit A – 2026 Investment Policy

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7.8. 3. 2025 Adopted Investment Policy

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RESOLUTION NO. 2026-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF GILROY ADOPTING THE CITY’S INVESTMENT
POLICY
WHEREAS, the City has a responsibility to ensure it handles public funds appropriately; and
WHEREAS, Section 53646 of the Government Code allows local agencies to annually approve a Statement of Investment Policy which has been prepared by the chief fiscal officer of such local agency; and
WHEREAS, the Investment Policy describes the investments the City can utilize in compliance with California Government Code Section 53646 and good practice dictates that local agencies prepare a written investment policy; and WHEREAS, the City Council formally adopts the investment policy via a resolution that promotes sound financial management practices designed to meet the City Council’s goals and objectives; and
WHEREAS, the City Council has been presented with a statement of Investment Policy annually, which is designed to conform with the requirements of the Investment Act; and WHEREAS, the primary objective of the Investment Policy is to establish a conservative set of investment criteria that will prudently protect the City’s assets, provide liquidity to meet the City’s cash needs, and enable the City to generate a market rate of return from its investment activities; and
WHEREAS, the City Council has reviewed the investment policy and delegates investment authority to the City Treasurer pursuant to California Government Code Section 53607; and
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Gilroy hereby repeals the 2025 investment policy and adopts the new Investment Policy attached hereto as Exhibit A, a copy of which is on file at the City offices and is available for inspection by the public.

PASSED AND ADOPTED this 19th day of October 2026 by the following roll call vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

APPROVED:

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Resolution No. 2026-XX
Adopting the City’s Investment Policy
City Council Regular Meeting | October 19, 2026

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______________________________
Greg Bozzo, Mayor
ATTEST:

Kim Mancera, City Clerk

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Resolution No. 2026-XX
Adopting the City’s Investment Policy
City Council Regular Meeting | October 19, 2026

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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 held on 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 Date.
____________________________________
Kim Mancera
City Clerk of the City of Gilroy

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CITY OF GILROY

INVESTMENT POLICY
ADOPTED OCTOBER 19, 2026

CONTENTS
I. INTRODUCTION ..................................................................................................... 1 II. SCOPE.................................................................................................................. 1 III. PRUDENCE............................................................................................................ 1 IV. OBJECTIVES.......................................................................................................... 2 V. DELEGATION OF AUTHORITY .................................................................................. 2 VI. ETHICS AND CONFLICTS OF INTEREST....................................................................... 3 VII. INTERNAL CONTROLS ............................................................................................ 3 VIII. AUTHORIZED FINANCIAL INSTITUTIONS, DEPOSITORIES, AND BROKER/DEALERS ........... 4 IX. AUTHORIZED INVESTMENTS.................................................................................... 5 X. PROHIBITED INVESTMENT VEHICLES AND PRACTICES............................................... 10 XI. INVESTMENT POOLS/MUTUAL FUNDS .................................................................... 11 XII. COLLATERALIZATION .......................................................................................... 11 XIII. DELIVERY, SAFEKEEPING AND CUSTODY ................................................................ 12 XIV. MAXIMUM MATURITY ......................................................................................... 12 XV. RISK MANAGEMENT AND DIVERSIFICATION............................................................ 12 XVI. REVIEW OF INVESTMENT PORTFOLIO ..................................................................... 14 XVII. PERFORMANCE EVALUATION ................................................................................ 14 XVIII. REPORTING......................................................................................................... 14 XIX. REVIEW OF INVESTMENT POLICY........................................................................... 15 GLOSSARY OF INVESTMENT TERMS..................................................................................... 16

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1 I. INTRODUCTION
The purpose of this investment policy is to identify various policies and procedures that will foster a prudent and systematic investment program designed to seek the City of Gilroy’s objectives of safety, liquidity and return on investment through a diversified investment portfolio. This policy also serves to organize and formalize the City’s investment-related activities, while complying with all applicable statutes governing the investment of public funds. This policy is written to incorporate industry best practices and recommendations from sources such as the Government Finance Officers Association (GFOA), California Municipal Treasurers Association (CMTA), California Debt and Investment Advisory Commission (CDIAC) and the Association of Public Treasurers (APT).

This investment policy was endorsed and adopted by the City’s City Council and is effective as of the 20th day of October 2026, and replaces any previous versions.

II. SCOPE
This policy covers all funds and investment activities under the direct authority of the City, as set forth in the State Government Code, Sections 53600 et seq., with the following exceptions:
• Proceeds of debt issuance shall be invested in accordance with the City’s general investment philosophy as set forth in this policy; however, such proceeds are to be invested pursuant to the permitted investment provisions of their specific bond indentures.
• CalPERS, OPEB trusts, and the investment of employees’ deferred compensation funds invested pursuant to Government Code Section 53609
• Any other funds specifically exempted by the City Council.

POOLING OF FUNDS
Except for cash in certain restricted and special funds, the City will consolidate cash and reserve balances from all funds to maximize investment earnings and to increase efficiencies with regard to investment pricing, safekeeping and administration. Investment income will be allocated to the various funds based on their respective participation and in accordance with generally accepted accounting principles.

III. PRUDENCE
Pursuant to California Government Code, Section 53600.3, all persons authorized to make investment decisions on behalf of the City are trustees and therefore fiduciaries subject to the Prudent Investor Standard:

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2 “…all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the Agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the Agency. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law.”
The Finance Director and other authorized persons responsible for managing City funds acting in accordance with written procedures and this investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security’s credit risk or market price changes provided that the Finance Director or other authorized persons acted in good faith. Deviations from expectations of a security’s credit or market risk should be reported to the governing body in a timely fashion and appropriate action should be taken to control adverse developments.

IV. OBJECTIVES
The City’s overall investment program shall be designed and managed with a degree of professionalism worthy of the public trust. The overriding objectives of the program are to preserve principal, provide sufficient liquidity, and manage investment risks, while seeking a market-rate of return.
• SAFETY. Safety of principal is the foremost objective of the investment program.

Investments will be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, the City will diversify its investments by investing funds among a variety of securities with independent returns. • LIQUIDITY. The investment portfolio will remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. • RETURN ON INVESTMENTS. The investment portfolio will be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints for safety and liquidity needs.

V. DELEGATION OF AUTHORITY
Authority to manage the City’s investment program is derived from California Government Code, Sections 41006 for City Treasurers and 53600 et seq.

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3 The City Council is responsible for the management of the City’s funds, including the administration of this investment policy. Management responsibility for the cash management of the City’s funds is hereby delegated to the Finance Director.

The Finance Director will be responsible for all transactions undertaken and will establish a system of procedures and controls to regulate the activities of subordinate officials and employees. Such procedures will include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the Finance Director.

The City may engage the services of one or more external investment advisers, who are registered under the Investment Advisers Act of 1940, to assist in the management of the City’s investment portfolio in a manner consistent with the City’s objectives. External investment advisers may be granted discretion to purchase and sell investment securities in accordance with this investment policy.

The City's overall investment program shall be designed and managed with a degree of professionalism that is worthy of the public trust. The City recognizes that in a diversified portfolio, occasional measured losses may be inevitable and must be considered within the context of the overall portfolio’s return and the cash flow requirements of the City.

VI. ETHICS AND CONFLICTS OF INTEREST
All participants in the investment process shall act as custodians of the public trust.

Investment officials shall recognize that the investment portfolio is subject to public review and evaluation. Thus, employees and officials involved in the investment process shall refrain from personal business activity that could create a conflict of interest or the appearance of a conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions.

Employees and investment officials shall disclose to the Finance Director any material interests in financial institutions with which they conduct business, and they shall further disclose any large personal financial/investment positions that could be related to the performance of the investment portfolio. Employees and officers shall refrain from undertaking any personal investment transactions with the same individual with whom business is conducted on behalf of the City.

VII. INTERNAL CONTROLS
The Finance Director is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the entity are protected from loss, theft or misuse. The internal control structure shall be designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management.

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4 Periodically, as deemed appropriate by the City and/or the City Council, an independent analysis by an external auditor shall be conducted to review internal controls, account activity and compliance with policies and procedures.

VIII. AUTHORIZED FINANCIAL INSTITUTIONS, DEPOSITORIES, AND BROKER/DEALERS The Finance Director shall maintain procedures for establishing a list of authorized broker/dealers and financial institutions which are approved for investment purposes that are selected through a process of due diligence as determined by the City. Due inquiry shall determine whether such authorized broker/dealers, and the individuals covering the City are reputable and trustworthy, knowledgeable and experienced in Public Agency investing and able to meet all of their financial obligations. These institutions may include "primary" dealers or regional dealers that qualify under Securities and Exchange Commission (SEC) Rule 15c3-1 (uniform net capital rule).

In accordance with Section 53601.5, institutions eligible to transact investment business with the City include:
• Institutions licensed by the state as a broker-dealer, as defined in Section 25004 of the Corporations Code, with proof of FINRA certification.
• Institutions that are members of a federally regulated securities exchange. • Primary government dealers as designated by the Federal Reserve Bank and nonprimary government dealers. • Nationally or state-chartered banks.
• Savings association or federal association (as defined in Section 5102 of the Financial Code).
• The Federal Reserve Bank.
• Direct issuers of securities eligible for purchase.

Selection of financial institutions and broker/dealers authorized to engage in transactions will be at the sole discretion of the City, except where the City utilizes an external investment adviser in which case the City may rely on the adviser for selection.

All financial institutions which desire to become qualified bidders for investment transactions (and which are not dealing only with the investment adviser) must supply the Finance Director with audited financials and a statement certifying that the institution has reviewed the California Government Code, Section 53600 et seq. and the City’s investment policy. The Finance Director will conduct an annual review of the financial condition and registrations of such qualified bidders.

To the extent practicable, the Finance Director shall endeavor to complete investment transactions using a competitive bid process whenever possible. The City’s Finance Director will determine which financial institutions are authorized to provide investment services to the City. It shall be the City’s policy to purchase securities only from authorized institutions and firms.

Selection of broker/dealers used by an external investment adviser retained by the City will be at the sole discretion of the adviser. Where possible, transactions with broker/dealers

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5 shall be selected on a competitive basis and their bid or offering prices shall be recorded.

If there is no other readily available competitive offering, best efforts will be made to document quotations for comparable or alternative securities. When purchasing original issue instrumentality securities, no competitive offerings will be required as all dealers in the selling group offer those securities at the same original issue price.

Public deposits will be made only in qualified public depositories as established by State law. Deposits will be insured by the Federal Deposit Insurance Corporation, or, to the extent the amount exceeds the insured maximum, will be collateralized in accordance with State law.

IX. AUTHORIZED INVESTMENTS
The City’s investments are governed by California Government Code, Sections 53600 et seq. Within the investments permitted by the Code, the City seeks to further restrict eligible investments to the guidelines listed below. In the event a discrepancy is found between this policy and Code, the more restrictive parameters will take precedence. Percentage holding limits and minimum credit requirements listed in this section apply at the time the security is purchased.

Any investment currently held at the time the policy is adopted which does not meet the new policy guidelines can be held until maturity and shall be exempt from the current policy. At the time of the investment’s maturity or liquidation, such funds shall be reinvested only as provided in the current policy.

An appropriate risk level shall be maintained by primarily purchasing securities that are of high quality, liquid, and marketable. The portfolio shall be diversified by security type and issuer to avoid incurring unreasonable and avoidable risks regarding specific security types or individual issuers.

1. MUNICIPAL SECURITIES include obligations of the City, the State of California and any local agency within the State of California, provided that:
• The securities are rated in a rating category of “A” or its equivalent or better by at least one nationally recognized statistical rating organization (“NRSRO”). • No more than 5% of the total portfolio may be invested in any single issuer. • No more than 30% of the total portfolio may be in Municipal Securities. • The maximum maturity does not exceed five (5) years.

2. MUNICIPAL SECURITIES (REGISTERED TREASURY NOTES OR BONDS) of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 states, in addition to California.
• The securities are rated in a rating category of “A” or its equivalent or better by at least one NRSRO.
• No more than 5% of the total portfolio may be invested in any single issuer.

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6 • No more than 30% of the total portfolio may be in Municipal Securities. • The maximum maturity does not exceed five (5) years.

3. U.S. TREASURIES and other government obligations for which the full faith and credit of the United States are pledged for the payment of principal and interest. There are no limits on the dollar amount or percentage that the City may invest in U.S. Treasuries, provided that:
• The maximum maturity does not exceed five (5) years.

4. FEDERAL AGENCIES or United States Government-Sponsored Enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises. There are no limits on the dollar amount or percentage that the City may invest in Federal Agency or Government-Sponsored Enterprises (GSEs), provided that:
• No more than 30% of the total portfolio may be invested in any single Agency/GSE issuer.
• No more than 20% of the total portfolio may be invested in callable agency securities.
• The maximum maturity does not exceed five (5) years.

5. BANKER’S ACCEPTANCES, provided that:
• They are issued by institutions which have short-term debt obligations rated “A-1” or its equivalent or better by at least one NRSRO; or long-term debt obligations which are rated in a rating category of “A” or its equivalent or better by at least one NRSRO.
• No more than 40% of the total portfolio may be invested in Banker’s Acceptances. • No more than 5% of the total portfolio may be invested in any single issuer. • The maximum maturity does not exceed 180 days.

6. COMMERCIAL PAPER, provided that the securities are issued by an entity that meets all of the following conditions in either paragraph (a) or (b) and other requirements specified below:
a. SECURITIES issued by corporations:
(i) A corporation organized and operating in the United States with assets more than $500 million.
(ii) The securities are rated “A-1” or its equivalent or better by at least one NRSRO.
(iii) If the issuer has other debt obligations, they must be rated in a rating category of “A” or its equivalent or better by at least one NRSRO. b. SECURITIES issued by other entities:

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7 (i) The issuer is organized within the United States as a special purpose corporation, trust, or limited liability company.
(ii) The securities must have program-wide credit enhancements including, but not limited to, overcollateralization, letters of credit, or a surety bond. (iii)The securities are rated “A-1” or its equivalent or better by at least one NRSRO.
• No more than 25% of the total portfolio may be invested in Commercial Paper.

Under a provision sunsetting on January 1, 2031, no more than 40% of the total portfolio may be invested in Commercial Paper if the City’s investment assets under management are $100,000,000 or more.
• No more than 5% of the total portfolio may be invested in any single issuer. • The maximum maturity does not exceed 397 days.

7. NEGOTIABLE CERTIFICATES OF DEPOSIT (NCDS), issued by a nationally or statechartered bank, a savings association or a federal association, a state or federal credit union, or by a federally licensed or state-licensed branch of a foreign bank, provided that:
• The amount of the NCD insured up to the FDIC limit does not require any credit ratings.
• Any amount above the FDIC insured limit must be issued by institutions which have short-term debt obligations rated “A-1” or its equivalent or better by at least one NRSRO; or long-term obligations rated in a rating category of “A” or its equivalent or better by at least one NRSRO.
• No more than 30% of the total portfolio may be invested in NCDs. • No more than 5% of the total portfolio may be invested in any single issuer. • The maximum maturity does not exceed five (5) years.

8. FEDERALLY INSURED TIME DEPOSITS (Non-Negotiable Certificates of Deposit) in state or federally chartered banks, savings and loans, or credit unions, provided that:
• The amount per institution is limited to the maximum covered under federal insurance.
• No more than 20% of the total portfolio will be invested in a combination of federally insured and collateralized time deposits.
• The maximum maturity does not exceed five (5) years.

9. COLLATERALIZED TIME DEPOSITS (Non-Negotiable Certificates of Deposit) in state or federally chartered banks, savings and loans, or credit unions in excess of insured amounts which are fully collateralized with securities in accordance with California law, provided that:
• No more than 20% of the total portfolio will be invested in a combination of federally insured and collateralized time deposits.
• The maximum maturity does not exceed five (5) years.

10. PLACEMENT SERVICE DEPOSITS, provided that:

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8 • No more than 30% of the total portfolio may be invested in a combination of qualifying placement service deposits.
• The full amount of each deposit along with accrued interest must at all times be insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA).
• Under a provision sunsetting on January 1, 2031, no more than 50% of the portfolio may be invested in deposits through a placement service, including Certificates of Deposit, if the Agency is a city, district or local agency that does not pool money with other local agencies.
• The maximum maturity does not exceed five (5) years.

11. COLLATERALIZED BANK DEPOSITS. City’s deposits with financial institutions will be collateralized with pledged securities per California Government Code, Section 53651.

There are no limits on the dollar amount or percentage that the City may invest in collateralized bank deposits.

12. REPURCHASE AGREEMENTS collateralized with securities authorized under California Government Code, maintained at a level of at least 102% of the market value of the Repurchase Agreement. There are no limits on the dollar amount or percentage that the City may invest, provided that:
• Securities used as collateral for Repurchase Agreements will be delivered to an acceptable third party custodian.
• Repurchase Agreements are subject to a Master Repurchase Agreement between the City and the provider of the repurchase agreement. The Master Repurchase Agreement will be substantially in the form developed by the Securities Industry and Financial Markets Association (SIFMA).
• The maximum maturity does not exceed one (1) year.

13. LOCAL GOVERNMENT INVESTMENT POOLS (LGIP)
a. STATE OF CALIFORNIA LOCAL AGENCY INVESTMENT FUND (LAIF), created by California Government Code Section 16429.1, provided that:
• The City may invest up to the maximum amount permitted by LAIF. • LAIF’s investments in instruments prohibited by or not specified in the City’s policy do not exclude the investment in LAIF itself from the City’s list of allowable investments, provided LAIF’s reports allow the Finance Director to adequately judge the risk inherent in LAIF’s portfolio. b. SHARES OF BENEFICIAL INTEREST ISSUED BY A JOINT POWERS AUTHORITY (JPA), provided that:
• The JPA is organized pursuant to California Government Code Section 6509.7 and invests in the securities and obligations authorized in subdivisions (a) to (r), inclusive.

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9 • Each share shall represent an equal proportional interest in the underlying pool of securities owned by the JPA.
• The JPA has retained an investment advisor who is registered with the SEC (or exempt from registration), has assets under management in excess of $500 million, and has at least five years’ experience investing in instruments authorized by Section 53601, subdivisions (a) to (q).
c. OTHER LOCAL GOVERNMENT INVESTMENT POOLS (LGIP)
• Other LGIPs permitted by the agency (such as a County Pool as defined by California Government Code Section 27000.3).
• No more than 20% of the total portfolio may be invested in LGIPs other than LAIF and JPAs.

14. CORPORATE MEDIUM TERM NOTES (MTNS), provided that:
• The issuer is a corporation organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States.
• The securities are rated in a rating category of “A” or its equivalent or better by at least one NRSRO.
• No more than 30% of the total portfolio may be invested in MTNs. • No more than 5% of the total portfolio may be invested in any single issuer. • The maximum maturity does not exceed five (5) years.

15. ASSET-BACKED, MORTGAGE-BACKED, MORTGAGE PASS-THROUGH SECURITIES,

AND COLLATERALIZED MORTGAGE OBLIGATIONS FROM ISSUERS NOT DEFINED IN SECTIONS 3 AND 4 OF THE AUTHORIZED INVESTMENTS SECTION OF THIS POLICY, provided that:
• The securities are rated in a rating category of “AA” or its equivalent or better by a NRSRO.
• No more than 20% of the total portfolio may be invested in these securities. • No more than 5% of the total portfolio may be invested in any single Asset-Backed or Commercial Mortgage security issuer.
• The maximum maturity does not exceed five (5) years.

16. MUTUAL FUNDS AND MONEY MARKET MUTUAL FUNDS that are registered with the Securities and Exchange Commission under the Investment Company Act of 1940, provided that:
a. MUTUAL FUNDS that invest in the securities and obligations as authorized under California Government Code, Section 53601 (a) to (k) and (m) to (q) inclusive and that meet either of the following criteria:
(i) Attained the highest ranking or the highest letter and numerical rating provided by not less than two (2) NRSROs; or

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10 (ii) Have retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years’ experience investing in the securities and obligations authorized by California Government Code, Section 53601 and with assets under management in excess of $500 million.
• No more than 10% of the total portfolio may be invested in shares of any one mutual fund.
b. MONEY MARKET MUTUAL FUNDS registered with the Securities and Exchange Commission under the Investment Company Act of 1940 and issued by diversified management companies and meet either of the following criteria:
(i) Have attained the highest ranking or the highest letter and numerical rating provided by not less than two (2) NRSROs; or
(ii) Have retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years’ experience managing money market mutual funds with assets under management in excess of $500 million.
• No more than 20% of the total portfolio may be invested in the shares of any one Money Market Mutual Fund.
c. No more than 20% of the total portfolio may be invested in these securities.

17. SUPRANATIONALS, provided that:
• Issues are US dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank.
• The securities are rated in a rating category of “AA” or its equivalent or better by a NRSRO.
• No more than 30% of the total portfolio may be invested in these securities. • No more than 10% of the total portfolio may be invested in any single issuer. • The maximum maturity does not exceed five (5) years.

X. PROHIBITED INVESTMENT VEHICLES AND PRACTICES
• State law notwithstanding, any investments not specifically described herein are prohibited, including, but not limited to futures and options. • In accordance with Government Code, Section 53601.6, investment in inverse floaters, range notes, or mortgage derived interest-only strips is prohibited. • Investment in any security that could result in a zero interest accrual if held to maturity is prohibited. Under a provision sunsetting on January 1, 2031, securities backed by the U.S. Government that could result in a zero- or negative-interest accrual if held to maturity are permitted.

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11 • Trading securities for the sole purpose of speculating on the future direction of interest rates is prohibited.
• Purchasing or selling securities on margin is prohibited. • The use of reverse repurchase agreements, securities lending or any other form of borrowing or leverage is prohibited.
• The purchase of foreign currency denominated securities is prohibited. • The purchase of a security with a forward settlement date exceeding 45 days from the time of the investment is prohibited.

XI. INVESTMENT POOLS/MUTUAL FUNDS
The City shall conduct a thorough investigation of any pool or mutual fund prior to making an investment, and on a continual basis thereafter. Annually, the Finance Director shall seek responses to the following questions from any investment pool or mutual fund in which the Agency invests:
• A description of eligible investment securities, and a written statement of investment policy and objectives.
• A description of interest calculations and how it is distributed, and how gains and losses are treated.
• A description of how the securities are safeguarded (including the settlement processes), and how often the securities are priced and the program audited. • A description of who may invest in the program, how often, what size deposit and withdrawal are allowed.
• A schedule for receiving statements and portfolio listings. • Are reserves, retained earnings, etc. utilized by the pool/fund? • A fee schedule, and when and how it is assessed.
• Is the pool/fund eligible for bond proceeds and/or will it accept such proceeds? XII. COLLATERALIZATION
CERTIFICATES OF DEPOSIT (CDS). The City shall require any commercial bank or savings and loan association to deposit eligible securities with an agency of a depository approved by the State Banking Department to secure any uninsured portion of a Non-Negotiable Certificate of Deposit. The value of eligible securities as defined pursuant to California Government Code, Section 53651, pledged against a Certificate of Deposit shall be equal to 150% of the face value of the CD if the securities are classified as mortgages and 110% of the face value of the CD for all other classes of security.

COLLATERALIZATION OF BANK DEPOSITS. This is the process by which a bank or financial institution pledges securities, or other deposits for the purpose of securing repayment of deposited funds. The City shall require any bank or financial institution to comply with the collateralization criteria defined in California Government Code, Section 53651.

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12 REPURCHASE AGREEMENTS. The City requires that Repurchase Agreements be collateralized only by securities authorized in accordance with California Government Code:
• The securities which collateralize the repurchase agreement shall be priced at Market Value, including any Accrued Interest plus a margin. The Market Value of the securities that underlie a repurchase agreement shall be valued at 102% or greater of the funds borrowed against those securities. • Securities used as collateral for Repurchase Agreements will be delivered to an acceptable third-party custodian.
• Financial institutions shall mark the value of the collateral to market at least monthly and increase or decrease the collateral to satisfy the ratio requirement described above.
• The City shall receive monthly statements of collateral.

XIII. DELIVERY, SAFEKEEPING AND CUSTODY
DELIVERY-VERSUS-PAYMENT (DVP). All investment transactions shall be conducted on a delivery-versus-payment basis.

SAFEKEEPING AND CUSTODY. To protect against potential losses due to failure of individual securities dealers, and to enhance access to securities, interest payments and maturity proceeds, all cash and securities in the City’s portfolio shall be held in safekeeping in the City’s name by a third party custodian, acting as agent for the City under the terms of a custody agreement executed by the bank and the City. All investment transactions will require a safekeeping receipt or acknowledgment generated from the trade. A monthly report will be received by the City from the custodian listing all securities held in safekeeping with current market data and other information.

The only exceptions to the foregoing shall be depository accounts and securities purchases made with: (i) local government investment pools; (ii) time certificates of deposit, and, (iii) mutual funds and money market mutual funds, since these securities are not deliverable.

XIV. MAXIMUM MATURITY
To the extent possible, investments shall be matched with anticipated cash flow requirements and known future liabilities.

The City will not invest in securities maturing more than five (5) years from the date of trade settlement, unless the City Council has by resolution granted authority to make such an investment.

XV. RISK MANAGEMENT AND DIVERSIFICATION

MITIGATING CREDIT RISK IN THE PORTFOLIO

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13 Credit risk is the risk that a security or a portfolio will lose some or all its value due to a real or perceived change in the ability of the issuer to repay its debt. The City will mitigate credit risk by adopting the following strategies:
• The diversification requirements included in the “Authorized Investments” section of this policy are designed to mitigate credit risk in the portfolio. • No more than 5% of the total portfolio may be deposited with or invested in securities issued by any single issuer unless otherwise specified in this policy. • The City may elect to sell a security prior to its maturity and record a capital gain or loss in order to manage the quality, liquidity or yield of the portfolio in response to market conditions or the City’s risk preferences.
• If a security owned by the City is downgraded to a level below the requirements of this policy, making the security ineligible for additional purchases, the following steps will be taken:
• Any actions taken related to the downgrade by the investment manager will be communicated to the Finance Director in a timely manner. • If a decision is made to retain the security, the credit situation will be monitored and reported to the City Council.

MITIGATING MARKET RISK IN THE PORTFOLIO
Market risk is the risk that the portfolio value will fluctuate due to changes in the general level of interest rates. The City recognizes that, over time, longer-term portfolios have the potential to achieve higher returns. On the other hand, longer-term portfolios have higher volatility of return. The City will mitigate market risk by providing adequate liquidity for short-term cash needs, and by making longer-term investments only with funds that are not needed for current cash flow purposes.

The City further recognizes that certain types of securities, including variable rate securities, securities with principal paydowns prior to maturity, and securities with embedded options, will affect the market risk profile of the portfolio differently in different interest rate environments. The City, therefore, adopts the following strategies to control and mitigate its exposure to market risk:
• The City will maintain a minimum of six months of budgeted operating expenditures in short-term investments to provide sufficient liquidity for expected disbursements. • The maximum stated final maturity of individual securities in the portfolio will be five (5) years, except as otherwise stated in this policy.
• The duration of the portfolio will generally be approximately equal to the duration (typically, plus or minus 20%) of a Market Benchmark, an index selected by the City based on the City’s investment objectives, constraints and risk tolerances.

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14 XVI. REVIEW OF INVESTMENT PORTFOLIO
The Finance Director shall periodically, but no less than quarterly, review the portfolio to identify investments that do not comply with this investment policy and establish protocols for reporting major and critical incidences of noncompliance to the City Council.

XVII. PERFORMANCE EVALUATION
The investment portfolio shall be designed to attain a market-average rate of return throughout budgetary and economic cycles, taking into account the City’s risk constraints, the cash flow characteristics of the portfolio, and state and local laws, ordinances or resolutions that restrict investments.

The Finance Director shall monitor and evaluate the portfolio’s performance relative to the chosen market benchmark(s), which will be included in the Finance Director’s quarterly report. The Finance Director shall select an appropriate, readily available index to use as a market benchmark. Benchmarks may change over time based on changes in market conditions or cash flow requirements.

XVIII.REPORTING

MONTHLY REPORTS
Monthly transaction reports will be submitted by the Finance Director to the City Council in accordance with California Government Code Section 53607.

QUARTERLY REPORTS
The Finance Director will submit a quarterly investment report to the City Council which provides full disclosure of the City’s investment activities within 45 days after the end of the quarter. These reports will disclose, at a minimum, the following information about the City’s portfolio:

1. An asset listing showing par value, cost and independent third-party fair market value of each security as of the date of the report, the source of the valuation, type of investment, issuer, maturity date and interest rate.

2. Transactions for the period.

3. A description of the funds, investments and programs (including lending programs) managed by contracted parties (i.e. LAIF; LGIPS, outside money managers and securities lending agents)

4. A one-page summary report that shows:
a. Average maturity of the portfolio and modified duration of the portfolio; b. Maturity distribution of the portfolio;
c. Percentage of the portfolio represented by each investment category; d. Average portfolio credit quality; and,

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15 e. Time-weighted total rate of return for the portfolio for the prior one month, three months, twelve months and since inception compared to the City’s market benchmark returns for the same periods;

5. A statement of compliance with investment policy, including a schedule of any transactions or holdings which do not comply with this policy or with the California Government Code, including a justification for their presence in the portfolio and a timetable for resolution.

6. A statement that the City has adequate funds to meet its cash flow requirements for the next six months.

ANNUAL REPORTS
A comprehensive annual report will be presented to the City Council. This report will include comparisons of the City’s return to the market benchmark return, suggest policies and improvements that might enhance the investment program, and will include an investment plan for the coming year.

XIX. REVIEW OF INVESTMENT POLICY
The investment policy will be reviewed and adopted at least annually within 120 days of the end of the fiscal year, to ensure its consistency with the overall objectives of preservation of principal, liquidity and return, and its relevance to current law and financial and economic trends.

Any recommended modifications or amendments shall be presented by Staff to the City Council for their consideration and adoption.

Prepared by:

Finance Director
Date:

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16 GLOSSARY OF INVESTMENT TERMS
AGENCIES. Shorthand market terminology for any obligation issued by a government-sponsored entity (GSE), or a federally related institution. Most obligations of GSEs are not guaranteed by the full faith and credit of the US government. Examples are:

FFCB. The Federal Farm Credit Bank System provides credit and liquidity in the agricultural industry. FFCB issues discount notes and bonds.

FHLB. The Federal Home Loan Bank provides credit and liquidity in the housing market.

FHLB issues discount notes and bonds.

FHLMC. Like FHLB, the Federal Home Loan Mortgage Corporation provides credit and liquidity in the housing market. FHLMC, also called “Freddie Mac” issues discount notes, bonds and mortgage pass-through securities.

FNMA. Like FHLB and Freddie Mac, the Federal National Mortgage Association was established to provide credit and liquidity in the housing market. FNMA, also known as “Fannie Mae,” issues discount notes, bonds and mortgage pass-through securities.

GNMA. The Government National Mortgage Association, known as “Ginnie Mae,” issues mortgage pass-through securities, which are guaranteed by the full faith and credit of the US Government.

PEFCO. The Private Export Funding Corporation assists exporters. Obligations of PEFCO are not guaranteed by the full faith and credit of the US government.

TVA. The Tennessee Valley Authority provides flood control and power and promotes development in portions of the Tennessee, Ohio, and Mississippi River valleys. TVA currently issues discount notes and bonds.

ASSET BACKED SECURITIES. Securities supported by pools of installment loans or leases or by pools of revolving lines of credit.

BANKER’S ACCEPTANCE. A money market instrument created to facilitate international trade transactions. It is highly liquid and safe because the risk of the trade transaction is transferred to the bank which “accepts” the obligation to pay the investor.

BENCHMARK. A comparison security or portfolio. A performance benchmark is a partial market index, which reflects the mix of securities allowed under a specific investment policy.

BID. The indicated price at which a buyer is willing to purchase a security or commodity.

BROKER. A broker brings buyers and sellers together for a transaction for which the broker receives a commission. A broker does not sell securities from their own position.

CALLABLE. A callable security gives the issuer the option to call it from the investor prior to its maturity. The main cause of a call is a decline in interest rates. If interest rates decline, the issuer will likely call its current securities and reissue them at a lower rate of interest.

CERTIFICATE OF DEPOSIT (CD). A time deposit with a specific maturity evidenced by a certificate.

COLLATERAL. Securities or cash pledged by a borrower to secure repayment of a loan or repurchase agreement. Also, securities pledged by a financial institution to secure deposits of public monies.

COLLATERALIZED BANK DEPOSIT. A bank deposit that is collateralized at least 100% (principal plus interest to maturity). The deposit is collateralized using assets set aside by the issuer such as Treasury securities or other qualified collateral to secure the deposit in excess of the limit covered by the Federal Deposit Insurance Corporation.

COLLATERALIZED MORTGAGE OBLIGATIONS (CMO). Classes of bonds that redistribute the cash flows of mortgage securities (and whole loans) to create securities that have different levels of prepayment risk, as compared to the underlying mortgage securities.

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17 COLLATERALIZED TIME DEPOSIT. Time deposits that are collateralized at least 100% (principal plus interest to maturity). These instruments are collateralized using assets set aside by the issuer such as Treasury securities or other qualified collateral to secure the deposit in excess of the limit covered by the Federal Deposit Insurance Corporation.

COMMERCIAL PAPER. The short-term unsecured debt of corporations.

COUPON. The rate of return at which interest is paid on a bond.

CREDIT RISK. The risk that principal and/or interest on an investment will not be paid in a timely manner due to changes in the condition of the issuer.

DEALER. A dealer acts as a principal in security transactions, selling securities from and buying securities for their own position.

DELIVERY VS. PAYMENT (DVP). A securities industry procedure whereby payment for a security must be made at the time the security is delivered to the purchaser’s agent.

DISCOUNT. The difference between the par value of a bond and the cost of the bond, when the cost is below par. Some short-term securities, such as T-bills and banker’s acceptances, are known as discount securities. They sell at a discount from par and return the par value to the investor at maturity without additional interest. Other securities, which have fixed coupons, trade at a discount when the coupon rate is lower than the current market rate for securities of that maturity and/or quality.

DIVERSIFICATION. Dividing investment funds among a variety of investments to avoid excessive exposure to any one source of risk.

DURATION. The weighted average time to maturity of a bond where the weights are the present values of the future cash flows. Duration measures the price sensitivity of a security to changes interest rates.

FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC). The Federal Deposit Insurance Corporation (FDIC) is an independent federal agency insuring deposits in U.S. banks and thrifts in the event of bank failures. The FDIC was created in 1933 to maintain public confidence and encourage stability in the financial system through the promotion of sound banking practices.

FEDERALLY INSURED TIME DEPOSIT. A time deposit is an interest-bearing bank deposit account that has a specified date of maturity, such as a certificate of deposit (CD). These deposits are limited to funds insured in accordance with FDIC insurance deposit limits.

FIDUCIARY. A person or organization that acts on behalf of another person(s) or organization that puts their clients’ interest ahead of their own as they are bound both legally and ethically to act in the best interests of their clients.

JOINT POWERS AUTHORITY (JPA). An entity created by two or more public agencies that share a common goal in order to jointly exercise powers common to all members through a joint powers agreement or contract.

LEVERAGE. Borrowing funds in order to invest in securities that have the potential to pay earnings at a rate higher than the cost of borrowing.

LIQUIDITY. The speed and ease with which an asset can be converted to cash.

LOCAL AGENCY INVESTMENT FUND (LAIF). A voluntary investment fund open to government entities and certain non-profit organizations in California that is managed by the State Treasurer’s Office.

LOCAL GOVERNMENT INVESTMENT POOL.Investment pools that range from the State Treasurer’s Office Local Agency Investment Fund (LAIF) to county pools, to Joint Powers Authorities (JPAs). These funds are not subject to the same SEC rules applicable to money market mutual funds.

MAKE WHOLE CALL. A type of call provision on a bond that allows the issuer to pay off the remaining debt early. Unlike a call option, with a make whole call provision, the issuer

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18 makes a lump sum payment that equals the net present value (NPV) of future coupon payments that will not be paid because of the call. With this type of call, an investor is compensated, or "made whole."
MARGIN. The difference between the market value of a security and the loan a broker makes using that security as collateral.

MARKET RISK. The risk that the value of securities will fluctuate with changes in overall market conditions or interest rates.

MARKET VALUE. The price at which a security can be traded.

MATURITY. The final date upon which the principal of a security becomes due and payable. An investment’s term or remaining maturity is measured from the settlement date to final maturity.

MEDIUM TERM NOTES. Unsecured, investment-grade senior debt securities of major corporations which are sold in relatively small amounts on either a continuous or an intermittent basis.

MTNs are highly flexible debt instruments that can be structured to respond to market opportunities or to investor preferences.

MODIFIED DURATION. The percent change in price for a 100-basis point change in yields.

Modified duration is the best single measure of a portfolio’s or security’s exposure to market risk.

MONEY MARKET. The market in which short-term debt instruments (T-bills, discount notes, commercial paper, and banker’s acceptances) are issued and traded.

MONEY MARKET MUTUAL FUND. A mutual fund that invests exclusively in short-term securities.

Examples of investments in money market funds are certificates of deposit and U.S.

Treasury securities. Money market funds attempt to keep their net asset values at $1 per share.

MORTGAGE PASS-THROUGH SECURITIES. A securitized participation in the interest and principal cash flows from a specified pool of mortgages. Principal and interest payments made on the mortgages are passed through to the holder of the security.

MUNICIPAL SECURITIES. Securities issued by state and local agencies to finance capital and operating expenses.

MUTUAL FUND. An entity which pools the funds of investors and invests those funds in a set of securities which is specifically defined in the fund’s prospectus. Mutual funds can be invested in various types of domestic and/or international stocks, bonds, and money market instruments, as set forth in the individual fund’s prospectus. For most large, institutional investors, the costs associated with investing in mutual funds are higher than the investor can obtain through an individually managed portfolio.

NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION (NRSRO). A credit rating agency that the Securities and Exchange Commission in the United States uses for regulatory purposes. Credit rating agencies provide assessments of an investment's risk.

The issuers of investments, especially debt securities, pay credit rating agencies to provide them with ratings. The three most prominent NRSROs are Fitch, S&P, and Moody's.

NEGOTIABLE CERTIFICATE OF DEPOSIT (CD). A short-term debt instrument that pays interest and is issued by a bank, savings or federal association, state or federal credit union, or statelicensed branch of a foreign bank. Negotiable CDs can be traded in a secondary market.

OFFER (ASK). An indicated price at which market participants are willing to sell a security. Also referred to as the “ask price”.

PAYDOWN. A reduction in the principal amount owed on a bond, loan, or other debt.

PLACEMENT SERVICE DEPOSITS. A private service that allows local agencies to invest in FDICinsured deposits with one or more banks, savings and loans, and credit unions located in

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19 the United States. IntraFi (formerly known as CDARS) is an example of an entity that provides this service.

PREMIUM. The difference between the par value of a bond and the cost of the bond, when the cost is above par.

PRIMARY DEALER. A financial institution (1) that is a trading counterparty with the Federal Reserve in its execution of market operations to carry out U.S. monetary policy, and (2) that participates for statistical reporting purposes in compiling data on activity in the U.S.

Government securities market.

PRUDENT INVESTOR (PRUDENT PERSON) RULE. A standard of responsibility which applies to fiduciaries. In California, the rule is stated as “Investments shall be managed with the care, skill, prudence and diligence, under the circumstances then prevailing, that a prudent person, acting in a like capacity and familiar with such matters, would use in the conduct of an enterprise of like character and with like aims to accomplish similar purposes.” REGIONAL DEALER. A financial intermediary that buys and sells securities for the benefit of its customers without maintaining substantial inventories of securities and that is not a primary dealer.

REPURCHASE AGREEMENT. Short-term purchases of securities with a simultaneous agreement to sell the securities back at a higher price. From the seller’s point of view, the same transaction is a reverse repurchase agreement.

SAFEKEEPING. A service to bank customers whereby securities are held by the bank in the customer’s name.

SECURITIES AND EXCHANGE COMMISSION (SEC). The U.S. Securities and Exchange Commission (SEC) is an independent federal government agency responsible for protecting investors, maintaining fair and orderly functioning of securities markets and facilitating capital formation. It was created by Congress in 1934 as the first federal regulator of securities markets. The SEC promotes full public disclosure, protects investors against fraudulent and manipulative practices in the market, and monitors corporate takeover actions in the United States.

SECURITIES AND EXCHANGE COMMISSION (SEC) RULE 15C3-1. An SEC rule setting capital requirements for brokers and dealers. Under Rule 15c3-1, a broker or dealer must have sufficient liquidity in order to cover the most pressing obligations. This is defined as having a certain amount of liquidity as a percentage of the broker/dealer's total obligations. If the percentage falls below a certain point, the broker or dealer may not be allowed to take on new clients and may have restrictions placed on dealings with current client.

STRUCTURED NOTE. Notes issued by Government Sponsored Enterprises (FHLB, FNMA, etc.) and Corporations, which have imbedded options (e.g., call features, step-up coupons, floating rate coupons, derivative-based returns) into their debt structure. Their market performance is impacted by the fluctuation of interest rates, the volatility of the imbedded options and shifts in the shape of the yield curve.

SUPRANATIONAL. A Supranational is a multi-national organization whereby member states transcend national boundaries or interests to share in the decision making to promote economic development in the member countries.

THIRD PARTY CUSTODIAN. An independent, third-party custodial safekeeping provider that has a fiduciary responsibility for safekeeping their client’s assets to minimize the risk of a fraudulent transaction.

TOTAL RATE OF RETURN. A measure of a portfolio’s performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending value; it includes interest earnings, realized and unrealized gains, and losses in the portfolio.

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20 U.S. TREASURY OBLIGATIONS. Securities issued by the U.S. Treasury and backed by the full faith and credit of the United States. Treasuries are considered to have no credit risk and are the benchmark for interest rates on all other securities in the US and overseas. The Treasury issues both discounted securities and fixed coupon notes and bonds.

TREASURY BILLS. All securities issued with initial maturities of one year or less are issued as discounted instruments and are called Treasury bills. The Treasury currently issues three- and six-month T-bills at regular weekly auctions. It also issues “cash management” bills as needed to smooth out cash flows.

TREASURY NOTES. All securities issued with initial maturities of two to ten years are called Treasury notes and pay interest semi-annually.

TREASURY BONDS. All securities issued with initial maturities greater than ten years are called Treasury bonds. Like Treasury notes, they pay interest semi-annually.

VOLATILITY. The rate at which security prices change with changes in general economic conditions or the general level of interest rates.

YIELD TO MATURITY. The annualized internal rate of return on an investment which equates the expected cash flows from the investment to its cost.

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INVESTMENT POLICY
FOR

CITY OF GILROY
Revised: October 2025
I. STATEMENT OF OBJECTIVES
The purpose of this Investment Policy (“Policy”) is to identify elements that will foster a prudent and systematic investment program that meet the City of Gilroy’s objectives through a diversified investment portfolio. This policy also serves to organize and formalize the City’s investment related activities, while complying with all applicable statutes governing the investment of public funds.

Temporarily idle or surplus funds of the City of Gilroy shall be invested in accordance with principles of sound treasury management and in accordance with the provisions of California Government Code Sections 53600, et seq., the Municipal Code, guidelines established by the California Municipal Treasurer's Association and the California Society of Municipal Finance Officers, and this Investment Policy.

A. Overall Risk Profile
The three basic objectives of Gilroy's Investment Program are, in order of priority:

1. Safety of invested funds;

2. Maintenance of sufficient liquidity to meet cash flow needs of the City; and

3. Attainment of the maximum yield possible consistent with the first two objectives.

The achievement of these objectives shall be accomplished in the manner described below:

1. Safety of Invested Funds
The City shall ensure the safety of its invested idle funds by limiting credit and interest rate risks. Credit risk is the risk of loss due to the failure of the security issuer or backer. Interest rate risk is the risk that the market value portfolio securities will fall due to an increase in general interest rates. a. Credit risk will be mitigated by:
i. Limiting investments to the safest types of securities as outlined in this policy;
ii. By prequalifying the financial institutions with which it will do business; and iii. By diversifying the investment portfolio so that the failure of any one issuer or backer will not place an undue financial burden on the City. b. Interest rate risk will be mitigated by:

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i. Maintaining adequate sums in 30 day or less funds.
ii. Structuring the City's portfolio so that securities mature to meet the City's cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to their maturation to meet those specific needs; and
iii. Investing primarily in shorter term securities (five years or less). c. The physical security or safekeeping of the City's investments is also an important element of safety. Detailed safekeeping requirements are defined in Section III of this Policy.

2. Liquidity
The City’s investment portfolio shall be structured in a manner which strives to achieve that securities mature at the same time as cash is needed to meet anticipated demands (static liquidity). Additionally, since all possible cash demands cannot be anticipated, the portfolio should consist largely of securities with active secondary or resale markets (dynamic liquidity).

Funds equal to 20% of the total annual expenditure budget less any capital expenditures for which bond proceeds are available, less internal service fund charges and less Trust and Agency fund expenditures, as first adopted for each fiscal year, shall be invested in the California State LAIF or other 30 day or less securities for call requirements. However, this provision shall not require the sale of any investment due solely to the adoption of a new budget, or amendment to a budget, which would have the effect of increasing the dollar amount needed to maintain this 20% requirement in 30 day or less funds. At such time that the 30 day or less funds falls below 20% of the annual expenditurebudget, the City Treasurer, within 30 days, will notify the Investment Committee with a proposed action plan. The City Council will be subsequently notified of the action taken. The specific percentage mix of different investment instruments and maturities is described in Section II of this Policy.

3. Yield
Yield on the City's investment portfolio is of secondary importance compared to the safety and liquidity objectives described above. Investments are limited to relatively low risk securities in anticipation of earning a fair return relative to the risk being assumed. While it may occasionally be necessary or strategically prudent of the City to sell a security prior to maturity to either meet unanticipated cash needs or to restructure the portfolio, this Policy specifically prohibits trading securities for the sole purpose of speculating on the future direction of interest rates.

B. Time Frame for Investment Decisions
The City's investment portfolio shall be structured to provide that sufficient funds from investments are available every month to meet the City's anticipated cash needs. Subject

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to the safety provisions outlined above, the choice in investment instruments and maturities shall be based upon an analysis of anticipated cash needs, existing and anticipated revenues, interest rate trends, and specific market opportunities. No investment should have a maturity of more than five (5) years from its date of purchase without receiving City Council approval within the prior 90 days.

C. Pooling of Funds
The City will consolidate cash and reserve balances from all funds to maximize investment earnings and to increase efficiencies with regard to investment pricing, safekeeping and administration. Investment income will be allocated to the various funds based on their respective participation and in accordance with generally accepted accounting principles.

D.Definition of Idle or Surplus Funds
Idle or surplus funds for the purpose of this Policy are all City funds which are available for investment at any one time, including the estimated checking account float, excepting those minimum balances required by the City's banks to compensate them for the cost of banking services. This Policy also applies to the idle or surplus funds included in the general fund, special revenue funds, debt service funds, capital projects funds, enterprise funds, internal service funds, trust/agency funds and of other entities for which the City of Gilroy personnel provide financial management services.

E. Applicability of Policy
This policy does not apply to:

1. The City's Deferred Compensation Plan, the investments in which are directed by the participating employees; and

2. Monies held by a trustee or fiscal agent and pledged to the payment or security of bonds or other indebtedness, or obligations under agreements, of a local agency, or certificates of participation in such bonds, indebtedness or agreements, the investment of which may be in accordance with the statutory provisions governing the issuance of those bonds, indebtedness or agreements, or to the extent not inconsistent therewith, or if there are no specific statutory provisions, in accordance with the ordinance, resolution, indenture or agreement of the local agency providing for the issuance.

3. Monies held in a Section 115 trust for Post-Employment Benefits Trust (the “Program”) for the purpose of pre-funding pension obligations and/or OPEB obligations. Investment of such section 115 trust/s are directed by the separate Investment Guidelines Document (IGD) as approved by the Plan Sponsor.

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F. Benchmark and Performance Standards
T investment portfolio shall be designed to attain a market-average rate of return throughout budgetary and economic cycles, taking into account the City’s risk constraints, the cash flow needs, and state and local laws. The performance of the investment portfolio shall be compared to the average yield on the U.S.

Treasury bill that most closely corresponds to the investment portfolio’s weighted average effective maturity.

II. INVESTMENTS
This section of the Investment Policy identifies policies, types of investments, and related matters pertaining to instruments in which the City will invest its idle funds.

A. Investment Standards
The City of Gilroy operates its temporary pooled idle cash investments under the Prudent Investor Standard, California Government Code, Section 53600.3 1 , and with
additional guidancefrom the provisions of the Uniform Prudent Investor Act, California Probate Code Section 16045, et seq 2
. This affords the City a broad spectrum of
investment opportunities as long as the investment is deemed prudent and is allowable under currentlegislation of the State of California (Government Code Section 53600, et seq).

B. Eligible Securities
Subject to the Prudent Investor Standard and other applicablelaws and regulations, this policy permits investment in the following:
• Insured Certificates of Deposit (CD's) of California banks and/or savings and loan associations, and/or savings with a Superior or Excellent ranking of 165 or more as provided by IDC Financial Publishing Inc. or similar rating publication) which mature in five (5) years or less, provided that the City's investments shall not exceed Two Hundred Fifty Thousand Dollars ($250,000.00) per institution. If the investment exceeds the insured $250,000.00, the funds are to be collateralized at 110% of the deposit in government securities or 150% in mortgages. (limited to 15% of the portfolio) 1 Governing bodies of local agencies (e.g., a City Council) or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, and managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. Within the limitations of this section and considering individual investments as part to an overall strategy, a trustee is authorized to acquire investments as authorized by law.

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2 The standard of care for trustees investing and managing trust assets is the Prudent Investor Standard and takes into consideration the purposes, terms, distribution requirements and other circumstances of the trust, and in satisfying this standard, the trustee is required to exercise reasonable care, skill, and caution in light of the facts and circumstances existing at the time of a trustee's decision or action. • Local Agency Investment Fund (State Pool) Demand Deposits • California Cooperative Liquid Assets Securities System (CLASS) (limited to 15% of the portfolio)
• Securities of the U.S. Government, or its agencies
• Negotiable Certificates of Deposit (NCDs) placed with federal and state savings and loanassociations and federal and state chartered banks with an office in the State of California. (limited to 15% of the portfolio)
• Bankers Acceptances (limited to 15% of the portfolio) • Commercial paper (limited to 10% of the portfolio)
• Passbook Savings or Money Market Demand Deposits
• Securities or bonds purchased under a prior investment policy, which may or may not meet the standards of this policy. (Such securities or bonds may be held or sold under this Policy but additional purchases shall not be made.) • Money Market Mutual Fund (with $1.00 net asset value and which invests only in instruments allowed under Government Code Section 53600, et seq.) - (limited to 5% of the portfolio)
C. Investments Deemed Not Appropriate at thisTime
The City of Gilroy Investment Policy does not permit investment in the following instruments or securities:
• Corporate bonds or stocks
• Repurchase agreements or reverse repurchase agreements • Interest only or principal only strips
• Certificates of Deposit issued by institutions not operating withinCalifornia • Inverse floaters and range notes
• Financial futures or financial option contracts
• Securities lending or leveraging any portion of the portfolio

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D. Collateralization Requirements
Uninsured Time Deposits with banks and savings and loans shall be collateralized in the manner prescribed by law for depositories accepting municipal investment funds.

E. Preformatted Wire Transfers
Wherever possible, the City will use preformatted wire transfers to restrict the transfer of funds to preauthorized accounts only. When transferring funds to an account not previously approved, the bank is required to call back a second employee for confirmation that the transfer is authorized.

F. Qualification of Brokers, Dealers and FinancialInstitutions The City Treasurer shall investigate brokers and dealers who wish to do business with the City to determine if they are adequately capitalized, have any pending legal actions against the firm or the individual broker, and that they market securities appropriate to the City's needs.

The City shall annually send a copy of the current edition of the Policy to all institutions and broker/dealers which are approved to handle City of Gilroy investments. Receipt of the Policy, including confirmation that it has been received by persons handling the City's accounts, shall be acknowledged in writing within thirty (30) days.

G. Diversification
The portfolio should consist of a prudent mix of various types of securities, issues and maturities.

H. Confirmation
Receipts for confirmation of purchase or sale of authorized securities should be received by the City Treasurer within five (5) days and include the following information: trade date, par value, rate, price, yield, settlement date, description of securities purchased, agency's name, net amount due, third party custodial information. These are minimum information requirements.

I. Internal Controls
Investment duties shall be separated by having at least three persons perform the following functions for any particular investment: the recordation of investments and disbursements, confirmation receipts, the preparation of Treasurer's reports, wire transfers, bank reconciliations and treasury reconciliations. An independent analysis by the external auditor shall be conducted annually to screen internal control, account activity, including verification of all securities, and compliance with policies and procedures.

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J. Interest Earnings
All interest earned on investments authorized by this Policy shall be allocated quarterly to all City funds based on the positive cash balances in each fund as a percentage of the entire pooled portfolio.

III. SAFEKEEPING OF SECURITIES
A. Safekeeping Agreement
The City shall contract with a bank or banks with federally insured deposits for the safekeeping services through a third party custodial agreement, (California Government Code Section 53601)3 which includes delivery versus payment provisions, for securities which are owned by the City as part of its investment portfolio.

B. Handling of City-Owned Securities and Time Deposit Collateral All securities owned by the City shall be held by the City or by its third-party custodian, except the collateral for time deposits in banks, savings banks, and savings and loan associations. The collateral for time deposits in banks and savings and loans shall be held in a trust account in the City of Gilroy's name. Dealers or brokers shall not hold any securities for the City. A broker is not an approved depository under California Government Code Section 53630 4 and Section 53608 5
C. Security Transfers
The authorization to release City's securities will be telephoned to the appropriate depository or custodian by a Finance Department member other than the person who initiated the transaction. A written confirmation outlining the details for the transaction and confirming the telephone instructions will be sent to the bank within five (5) working days. A confirming notice documenting the transaction will be sent by the bank to the City within five (5) working days of the transaction. 3 Section 53601. Authorized Investments, circumstances. A local agency purchasing or obtaining any security . . . shall require delivery of the securities to the local agency . . . by book entry, physical delivery or by third party custodial agreement. 4
Section 53630(c) allows state or national banks, state or federal savings banks or savings and loan associations, state or federal credit unions and federally insured industrial loan companies as approved depositories. 5 Section 53608. Deposit of securities; delegation of authority. The legislative body of a local agency may deposit for safekeeping with a federal or state association, a trust company or a state or national bank located within this state or with the Federal Reserve Bank of San Francisco or any branch thereof within this state, or with any Federal Reserve Bank or with any state or national bank located in any city designated as a reserve city by the Board of Governors of the Federal Reserve System, the bonds, notes, bills, debentures, obligations, certificates or indebtedness, warrants, or other evidences of indebtedness in which the money of the local agency is invested pursuant to this article or pursuant to other legislative authority. The local agency shall take from such financial institution a receipt for securities so deposited. The authority of the legislative body to deposit for safekeeping may be delegated by the legislative body to the treasurer of the local agency; the treasurer shall not be responsible for securities delivered to and receipted for by a financial institution until they are withdrawn from the financial institution by the treasurer.

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D. Verification of Security
Securities held by an agent of depository as collateral securing time deposits will be verified in writing during the year by the City's independent auditors as part of the City's annual independent audit. The City's independent auditors confirm the collateral directly with the bank holding that collateral. Those securities held by that depository or custodian as collateral are subject to audit by the bank's auditors.

IV. STRUCTURE AND RESPONSIBILITY
This section of the Policy defines the overall structure of the investment management program.

A. Responsibilities of the Finance Department
The Finance Department, through its officers and representatives, is charged with the responsibility for maintaining custody of all public funds and securities belonging to or under the control of the City and for the deposit and investment of those funds in accordance with principles of sound treasury management and in accordance with applicable laws and ordinances.

B. Responsibilities and Ethics of the City Treasurer

1. Delegation of Authority
The authority to manage the City’s investment program is derived from the California Government Code Section 53600, et seq, The City Council is responsible for the management of the City’s funds, including the administration of this investment policy. The authority of the City Council to invest or to reinvest funds, or to sell or exchange securities so purchased, is hereby delegated to the City Treasurer, who shall thereafter assume full responsibility for those transactions until the delegation is revoked and shall make quarterly reports of those transactions to the City Council. (California Government Code Section 53607).

2. Responsibilities
The City Treasurer is appointed by the City Administrator and is subject to his direction and supervision. The City Treasurer is charged with the responsibility for the purchase, sale, custody and investment of City funds, and the development of procedures to implement this Investment Policy. In fulfilling his responsibilities, the City Treasurer is subject to the Prudent Investor Standard and shall render reports regarding compliance with the Investment Policy. The City Treasurer is further responsible for the duties and subject to the powers imposed by and applicable to City Treasurers under the general laws of the State of California.

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3. Ethical Conduct
The City Treasurer will demonstrate integrity in all public and personal relationships, protect the public trust, and seek no favor or accept any personal gain which would influence or appear to influence the conduct of the office of Treasurer.

C. Responsibilities of the City Administrator
The City Administrator is responsible for directing and supervising the City Treasurer.

He is responsible further to keep the City Council fully advised as to the financial condition of the City and its compliance with this Policy.

D. Responsibilities of the City Council
The City Council shall consider and annually adopt a written investment policy. As provided in that policy, the Council shall receive and review quarterly investment reports and may annually delegate investment authority to the City Treasurer pursuant to California Government Code Section 53607.

E. Responsibilities of the Investment Committee
There shall be an Investment Committee consisting of the City Administrator, City Treasurer/Finance Director, and the Finance Manager. The committee shall meet quarterly to discuss cash flow requirements, monthly and quarterly investment reports, investment strategy, investment and banking procedures, significant investment related work projects being undertaken in each department which will affect the cash flow management of the City Treasurer and to review compliance with the investment policies adopted by the City Council. This will require timely reports from the department heads to the City Treasurer concerning significant future cash flow requirements.

V. REPORTING
The City Treasurer shall prepare a quarterly investment report, including a succinct management summary that provides a clear picture of the status of the current investment portfolio and transactions made over the past quarter by month. This management summary will be prepared in a manner which will allow the City Administrator and City Council to ascertain whether investment activities during the reporting period are in conformance with the City's Investment Policy.

The quarterly investment report will include the following:

A. A listing of individual securities held at the end of the reporting quarter showing the:

1. type of investment

2. institution

3. date of maturity

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4. amount of deposit or cost of the security

5. rate of return
B. Unrealized gain or loss resulting from appreciation or depreciation by listing the cost and market value of securities over one year in duration.

C. Average yield of return on the City'sinvestments.

D. Maturity aging for the investments.

E. Compliance of the investment portfolio with the Investment Policy.

F. A statement denoting the ability of the City to meet expenditure requirements for the next six months.

VI. REVIEW OF INVESTMENT MANAGEMENT
A. Statement of Policy
As set forth in California Code Section 53646(a), the City Administrator shall annually render to the City Council a statement of investment policy, which shall be considered by the Council at a public meeting.

B. Policy Review
This Investment Policy shall be reviewed annually by the City Council at a public meeting in accordance with state law to ensure its consistency with respect to the overall objectives of safety, liquidity, and yield. Proposed amendments to the Policy shall be prepared by the City Treasurer and after review by the Investment Committee shall be forwarded to the City Council for consideration at a public meeting.

Any recommended modifications or amendments shall be presented to the City Council for their consideration and adoption.

VII. AUTHORITY
This Policy was duly adopted by authority of the City Council of the City of Gilroy on the 1st day of July 2015 and was most recently re-adopted on October 6, 2025.

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7.9. City of Gilroy

STAFF REPORT
Agenda Item Title: Resolution Authorizing the City Administrator to Execute the Donation Acceptance Agreement for Rehabilitation of Two Parking Lots within Las Animas Veterans Park
Meeting Date: October 19, 2026
From: Matt Morley, City Administrator
Department: Public Works
Submitted by: John Doughty, Public Works Director
Prepared by: John Doughty, Public Works Director
STRATEGIC PLAN GOALS: Maintain and Improve City Infrastructure

RECOMMENDATION
Adopt a resolution authorizing the City Administrator to execute a Donation Acceptance Agreement with Ten South for repaving of Lots 1 and 2 at Las Animas Veterans Park.

EXECUTIVE SUMMARY
Ten South, developer of the 315 Las Animas residential project has offered to repave Lots 1 and 2 at Las Animas Veterans Park as a community benefit donation. The City's Donation and Fundraising Policy requires City Council approval of any donation exceeding $5,000. The proposed work will exceed the $5,000 amount and requires City Council action.

BACKGROUND
Las Animas Veterans Park is served by 4 on-site parking lots. Lots 1 and 2 are the primary parking lots for patrons. These lots are accessed from Mantelli Drive and are open daily from 6:00 AM to 11 PM.

Lots 1 and 2 are both in need of significant rehabilitation. It was hoped that Lot 1 could be rehabilitated in conjunction with the adjacent pickleball courts project (under

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7.9. construction). Budget limited work to repaving and striping of a new ADA parking space and accessible path of travel to the courts and other facilities.

Community members have requested improvements to these parking lots, particularly Lot 1. The pavement conditions and striping along with security lighting has been noted. Staff is currently evaluating options to improve the security lighting at both Lot 1 and Lot 2. Lighting is not part of the donation.

ANALYSIS
Ten South recently reached out to the City indicating a desire to help improve Las Animas Veterans Park. Specifically, they indicated interest in completing pavement rehabilitation on Lots 1 and 2. Staff subsequently met at the site with Ten South representatives and their paving subcontractor. The purpose of this meeting was to establish mutual interest and discuss scope of anticipated work.

The City and potential donor are currently working through specific details and scope of work.

The basic scope on both lots includes the removal of existing asphaltic concrete (AC), re-grading of base and installation of new minimum 3-inch layer of AC and re-sriping of spaces. Lot 1 is anticipated to include installation of 6-inch vertical curbing to protect landscape areas and direct stormwater flows to existing collection infrastructure.

The contractor will be required to provide sufficient plans, specs and details for staff review as well as a construction schedule. These submittals will ultimately drive the cost estimate and the ultimate value of the donation. All parties agree that time is of the essence given the upcoming winter season. Approving this resolution, provides staff opportunity to finalize details including closure schedule and insurance, issue the encroachment permit (no fee) and proceed with work in the most expeditious manner.

Once work is complete, staff will provide an update to the City Council on the exact value of the amount of the donation.

ALTERNATIVES

1. The City Council could choose to not approve the resolution and reject the offer of donation. This is not recommended given the state of the parking lots and City's limited funding for such work.

2. The City Council could continue the item until all details are known. This is not recommended as it might result in delay of work until spring or the withdrawal of the donation offer altogether.

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7.9. FISCAL IMPACT/FUNDING SOURCE
Adoption of the resolution provides the opportunity to receive a donation of material, equipment and labor to complete rehabilitation of two parking lots within Las Animas Park. While exact amount is not known, the value of the donation will be in the tens of thousands of dollars. The cost of negotiations and oversight is covered by the Public Works operating budget.

PUBLIC OUTREACH
N/A

NEXT STEPS
Provide authorization is provided, staff will work with the donor and their contractor to finalize scope, design, schedule and permitting with the intention of completing work this calendar year.

Attachments:

1. Resolution for Donation Acceptance Agreement

2. Donation Agreement and Receipt

3. Donation and Fundraising Policy

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RESOLUTION NO. 2026-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF GILROY AUTHORIZING THE CITY

ADMINISTRATOR TO EXECUTE A DONATION

ACCEPTANCE AGREEMENT FOR REHABILITATION OF

TWO PARKING LOTS AT LAS ANIMAS VETERANS PARK
WHEREAS, the City Council adopted a policy entitled the City of Gilroy Donation and Fundraising Policy (Policy); and
WHEREAS, the Policy establishes a process for acceptance of a donation; and WHEREAS, City Council action is required to accept any donation exceeding $5,000; and;
WHEREAS, Ten South, the developer of 315 Las Animas residential project has offered to rehabilitate/repave Lots 1 and 2 of las Animas Veterans Park as a community benefit donation; and
WHEREAS, the potential donor and City have met and generally established the scope of work for the project; and
WHEREAS, the total donation amount is not known at the present time but will clearly exceed the $5,000 threshold for Council action;
WHEREAS, approval of this resolution will facilitate the design, review, permitting and completion of the rehabilitation work;

NOW, THEREFORE, BE IT RESOLVED,
The City Council adopts the resolution authorizing the City Administrator to execute a Donation Acceptance Agreement for rehabilitation of Lot 1 and Lot 2 of Las Animas Veterans Park.

PASSED AND ADOPTED this 19th day of October 2026, by the following roll call vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

APPROVED:

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Resolution No. 2026-XX
Donation Acceptance Agreement for Las Animas Park
City Council Regular Meeting | October 19, 2026

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___________________
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 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, October 29, 2026.
____________________________________
Kim Mancera
City Clerk of the City of Gilroy

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CITY OF GILROY

STANDARD DONATION ACCEPTANCE

AGREEMENT
This STANDARD DONATION ACCEPTANCE AGREEMENT (“Agreement”) is entered into and effective this , 20 , by and between the CITY OF GILROY, a California charter city and municipal corporation (“CITY”), and Ten South, an [INDIVIDUAL OR ENTITY] (“Donor”). The undersigned Donor wishes to make a donation to the City as described below:

Donation is: Non-Monetary Monetary in the amount of $
Check Payable to: CITY OF GILROY
Description of Donation (Attach additional sheets if needed):

This Donation is a (check the applicable box below and complete) General donation (“undesignated donation”)
Donation designated for the purpose(s) of (“designated donation”):

This donation is consistent with the City’s goals & objectives and complies with the general provisions and procedures of the City’s Donation Acceptance Policy.

In connection with administering this agreement, Donor and the Recipient (City) shall work through the following primary representatives:

Recipient/Donor Name(s) City of Gilroy
Primary Representative: Matt Morley
Address: 7351 Roseanna Street
Gilroy, CA 95020
Telephone Number: 408-846-0451
Email Address:
* All documentation submitted is subject to disclosure per California Public Records Act.

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In addition to the foregoing, Donor and the City understand and agree that:

1. Upon acceptance and receipt of the donation and upon request from the donor, the City will provide the donor a receipt indicating the amount of cash donated, if a cash donation, or describing the specific type of property or services received within thirty (30) days of City accepting and approving the donation. All documentation submitted to the City is subject to disclosure per the California Public Records Act.

2. For undesignated donations, the City may use the donation in any manner at its sole discretion. The Donor has no right or obligation to control the City’s use of the donation.

3. Donor has not and will not receive any goods or services in exchange for the donation and the City will not grant any consideration in whatever form to the Donor in relation to City procurement, regulatory matters, or any other business, services, or operations of the City.

4. If the donation is made for memorial, recognition, or volunteer capital projects in Cityowned facilities, parks, public rights-of-way, medians, and open spaces, Donor confirms that Section __ of the Donation Acceptance Policy has been read and Donor shall conform to the criteria listed in said Section __. Donor shall pay for all costs, including but not limited to purchase, tax, freight, plaques and engraving costs, and all City installation costs. Approval from the City must be received before any order and installation of the memorial/recognition/volunteer capital project may proceed. The City will install the item.

Once installed, the memorial/recognition/volunteer capital project or improvements made becomes the sole property of the City. The City does not offer any guarantee or obligation, legal or otherwise, to maintain or replace signs, plaques, materials, equipment, structures, or other donated resources that are vandalized, lost, stolen or otherwise damaged or destroyed. The City does not guarantee permanency of any donation.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement.

Donor(s): City of Gilroy
Signature
Print Name
Organization (if applicable)
Date
Matt Morley, City Administrator
Date:

ATTEST:

Kim Mancera, City Clerk
Date:

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City of Gilroy Donation Receipt
This is to confirm that on _____________, 20__, the City of Gilroy received from:

Donor Name(s)/Organization:________________________________________________ Donor Address: (optional)
The donation(s) listed below:

Monetary contribution of $
Non-monetary contribution consisting of the following [describe property, services, etc.]:

The City of Gilroy cannot guarantee or be obligated to repair, maintain, use, or the replace and/or commit to the permanency of donated items.

The City of Gilroy sincerely appreciates your donation.

Cindy Murphy
Director of Finance
Per Section 170 (c)(1) of the Internal Revenue Code, charitable contributions made to the City exclusively for public purposes are tax deductible.

City of Gilroy Federal Tax ID No. 94-_______

EXHIBIT A

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1 City of Gilroy
Donation and Fundraising Policy

PURPOSE
The purpose of this policy is to provide direction to City officials, appointees, and employees regarding the acceptance of donations by the City from donors, as well as the development and implementation of fundraising efforts. This policy is meant to formalize the process of receiving donations, and how to fundraise as may be commenced by the City, the Arts and Culture Commission, or the Parks and Recreation Commission.

POLICY
Unsolicited Donations

1. Requirements for accepting donations.
a. The donation must have a purpose consistent with City goals and objectives.
b. The City may decline any donation without comment or cause. c. The donation will not be in conflict with any provision of law. d. Any non-cash donation will be aesthetically and functionally acceptable to the City.
e. The donation will not add to the City’s workload unless it provides a net benefit to the City.
f. The donation will not bring hidden costs such as starting a program the City would be unwilling to fund when the donation is exhausted. g. The donation places no restriction on the City, unless agreed to by the City Administrator or Council.
h. The donation shall become property of the City.
i. All donations will receive recognition appropriate to the level and nature of the donation, as determined by Section 2(b) or 2(c). For those of a capital nature, that may be in the form of signage, marking, naming, or any other means the City may deem appropriate. Any naming of parks and recreation facilities shall be consistent with any City policy on the naming of such facilities. Regardless of the recognition strategy selected, the intent is to appropriately honor the donor for their contribution to the

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2 community. The appearance of traditional commercial advertising shall be avoided.
j. Donations equal to or exceeding $5,000 shall be accepted through a written agreement consistent with the procedures herein. In-kind capital donations will be subject to normal City review, permitting, inspection, and insurance requirements.
k. All information and documentation regarding a donor or donors and their respective donation may be public information subject to disclosure pursuant to the California Public Records Act.

2. Procedures for Accepting Donations.
a. Procedures for all Donations.

1. A Donation Acceptance Form must be prepared on all
donations accepted, which shall be provided to the Finance Department if under $5,000 in value and submitted to the City Council if the value is greater. The Donation Acceptance Form shall be updated from time-to-time to collect pertinent information for legal and procedural compliance.
ii. An inappropriate donation is one that meets one of the criteria below, and is to be rejected:

1. Any donation that would violate the requirements of Section 1 of this policy.

2. Any donation that may be of offensive or morally
questionable material.

3. Any donation that is connected with a restriction that entails special consideration or favors beyond any other resident, donating or non-donating, as it pertains to activities or functions undertaken by the City in the provision of services or goods.

4. Any other concern, real or perceived, that may result in a loss of reputation, appearance of impropriety, or other negative impact on the City from accepting the donation. b. Donations under $5,000.
i. The City Administrator must approve of receiving the donation before it can be accepted.

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3 ii. If the donation is appropriate and to be received, the City Administrator or their designee must complete the report to be given to the Finance Department as described above.
iii. The City Administrator or designee shall determine the appropriate recognition, if the donation is accepted, for the donor(s). c. Donations of $5,000 or more.
i. If the City Administrator determines that the donation is appropriate to be received, the City Administrator or designee shall prepare the report as described above to be given to the City Council at a public Council Meeting.
ii. The City Council shall decide in its sole and absolute discretion whether or not to accept the donation, and appropriate the expenditure of any accepted monetary donation.
iii. The City Council shall determine the appropriate recognition for the donor(s) if the donation is accepted.

Donation, Sponsorship, and/or Fundraising Programs
Fundraising may only:

1. Happen after a fundraising campaign is designed and established through a donation, sponsorship, and/or fundraising program approved by either the City Administrator or City Council, depending upon the nature of the program.

2. Be for official fundraising campaigns. The City does not accept fundraising for anything other than what is authorized in an approved program.

3. Be conducted in the manner as outlined in an approved program.

All donations shall be tendered to the Finance Department. The Finance Department will defer to the City Administrator or City Council’s acceptance of each donation regarding its acceptable status.

Fundraising process

1. The Arts and Culture Commission, Parks and Recreation Commission, and/or City departments shall develop their donation, sponsorship, and/or fundraising programs in consultation with the City Administrator’s Office and the Finance Department. In its simplest form, a proposed program may consist of a memorandum to the City Administrator indicating the following:
a. Goal of the sponsorship, donation, and/or fundraising activities. b. Timeframe for the program.

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4 c. Target audience and method of outreach.
d. Procedure for acceptance and reporting of activities, ensuring internal controls.
e. The types of donor or sponsor recognition that is available for specified value of donorship or sponsorship, subject to City Council approval if the value of recognition is beyond the contract authority of the City Administrator or greater than the authority provided under this policy. f. The sponsorship level or range of sponsorship levels for the naming of the City property if permitted. Sponsorship naming for parks or recreation facilities must also comply with the City of Gilroy Parks or Recreation Facilities Naming, Community and Memorial Contribution, and Gift and Sponsorship Policy, or otherwise be approved by the City Council. g. Specified or maximum sizes and identification of location(s) of any signage in recognition of the donation or sponsorship and any restrictions on the text of the recognition signage.

2. The department staff designated to oversee the department's donation, sponsorship and/or fundraising activities will ensure that the proposed donation, sponsorship and/or fundraising program does not conflict with existing City Code provisions, City policy or existing City sponsorships. Department staff shall also ensure that the City property involved is not subject to restrictions that would limit or prohibit the proposed donation or sponsorship.

3. The department staff accepting items donated to the City will ensure that the items are safe and durable, and meet any applicable City design or quality specifications, standards, and policies.

4. Where applicable, the department’s donation, sponsorship and/or fundraising program shall set forth the conditions for acceptance of funds. Conditions shall be fair, impartial and shall not discriminate on the basis of race, sex, color, age, religion, sexual orientation, actual or perceived gender identity, disability, ethnicity, national origin, or political views of the proposed donor.

5. Any department considering acceptance of a donation or sponsorship that may impact or affect other departments shall consult with those departments prior to acceptance of the proposed donation or sponsorship.

6. It shall be the goal of any departmental donation, sponsorship and/or fundraising program to find donors or sponsors providing the highest net benefit to the City, along with consideration of the quality of product or service to be received by the City.

7. All donations in cash shall be deposited and recorded with the Finance Department and deposited in a manner as stated within current policies.

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5 8. Unaccepted Donations will be returned to the Donor.

Sponsorship Agreements
After the selection of a sponsor by the City Council, City Administrator or a department head, pursuant to Unsolicited Donations section 2(b) or 2(c) above, the terms of the sponsorship, including any expectation of a significant return or recognition, shall be set forth in a written sponsorship agreement approved as to form by the City Attorney.

The City Administrator may include renewals of a sponsorship agreement at the City’s option, provided that the aggregate of all the renewals is within the City Administrator’s contract authority under the City Code and City Purchasing Policy. Any renewal shall be subject to annual appropriation by the City Council if City funding is involved.

Sponsorship agreements for parks or recreation facilities shall be subject to additional requirements as outlined in the City of Gilroy Parks or Recreation Facilities Naming, Community and Memorial Contribution, and Gift and Sponsorship Policy.

Costs, Accounting and Record Keeping
Departments shall maintain records that provide an audit trail for the receipt of all sponsorships and donations. Departments shall also comply with the following requirements:

1. All donations and sponsorships and the revenue, products, and services received shall be recorded and maintained for at least the expected life of the item or service, or for a specific time frame that has been established in the donation agreement or sponsorship agreement.

2. Donations or sponsorships paid for with a monetary contribution shall not be paid to staff in cash unless approved, in advance, by the Finance Department and department director and receipt of cash is properly documented.

3. A record of all sponsorships and donations including name, type, contact name if a company, amount, and disposition of sponsorship shall be kept up-to-date and accurate.

4. Departments shall report any donations or sponsorships accepted by the department through reports to the City Administrator’s Office and the Finance Department.

5. A report shall be provided to the City Council for any donation equal to or greater than $5,000 at the time the donation is given or offered.

Other Donations or Contributions

1. Real Property
Restricted donations of real property may be offered to the City for specified purposes. The City will review the proposed conditions of the restrictive donation

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6 of real property, if any, and determine in its sole and absolute discretion whether or not to accept the donation. All donations of any interest in real estate shall require City Council approval.

A donation involving real estate is more complex than cash donations and the donation agreement documenting a real estate-related donation should be prepared and approved by the City Attorney’s Office. Terms and conditions of such donations may vary from this policy’s general requirements, based on approval of the City Council on a case-by-case basis.

2. Works of Art
If a contribution is proposed related to a work of public art covered by the City's Public Art Policy, the City's review and acceptance of the proposed contribution of public art shall be conducted in accordance with the City's Public Art Policy, which shall include the review and recommendation of the City's Arts and Culture Commission to the City Council and compliance with any policies adopted regarding donations of works of public art.

DISCLAIMERS AND MISCELLANY

1. Different forms of contributions to the City present different opportunities and challenges. Therefore, it is not possible to establish blanket guidelines to cover all types of donation or sponsorship activity that the City may decide to pursue.

2. Unless expressly stated otherwise, the City does not intend to modify or change the non-public forum status of any City property by providing donor recognition or sponsorship recognition on City property.

3. The making of a donation or sponsorship to the City will not provide any extra consideration to the donating or sponsoring party in relation to any City procurement, any regulatory activities of the City, or other City business. No City employee or other City official is authorized to offer any such extra consideration to a donating party.

4. Any donation or sponsorship which, if accepted, would obligate the City to enter into a service or procurement agreement should be reviewed under the City procurement process.

5. The City encourages donations of material and equipment with the understanding that such items have a useful life, and that the City assumes no responsibility for replacement or upkeep. Once a donation is accepted, it becomes City property and the City may maintain, replace or dispose of the item unless the donation is explicitly restricted and accepted by the City as such.

6. The City cannot guarantee the tax deductibility of a donation but may provide the donating party with a letter of acknowledgement and a statement of the City's intended use. No Council Member, appointee, employee, volunteer, or agent of

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7 the City may state that a donation is tax deductible. Each donor must make their own determination as to whether a donated item or monetary contribution is tax deductible.

7. City staff, elected officials, and appointees shall maintain the highest standard of ethics in fundraising activities. All donations or sponsorships must directly enhance the City’s ability to provide goods or services to the public or for another valid public purpose and may not be used for the personal financial or promotional gain of any City employee, elected official and/or appointee.

8. City employees who have primary responsibility for the procurement of services, supplies, materials and equipment or public works shall not engage in solicitation of donations or sponsorships.

9. City employees may only solicit donations or sponsorships pursuant to the individual department’s donation, sponsorship, and/or fundraising programs approved by the City Administrator. City employees working in an enforcement or regulatory City position (i.e., Police, Fire, Code Enforcement, Building Inspection) shall not solicit donations or sponsorships from the public while they are wearing a City uniform, unless they receive explicit permission from the City Administrator.

10.At any time, the City Administrator, or a department if approved by the City Administrator, may reject any donation or sponsorship offered to the City.

11.Restricted donations that land outside of an authorized fundraising plan or are restricted to a degree where staff determines that the restriction is too limiting for effective use will not be accepted and will be returned to the donor. Pass-through donations to individuals or organizations via the City shall not be accepted.

12.Where an existing, specific policy governing donations and fundraising has already been enacted and conflicts with this policy, the previously enacted specific policy shall apply.

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8.1. City of Gilroy

STAFF REPORT
Agenda Item Title: Ordinance Amending Article II Chapter 16A of the Gilroy Municipal Code regarding Mobile Vending
Meeting Date: October 19, 2026
From: Matt Morley, City Administrator
Andy Faber, City Attorney
Kim Mancera, City Clerk
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. Introduce an ordinance amending Article II, Chapter 16A, combining §§16A.13– 15 into a new §16A.13 establishing permanent mobile vending regulations and consolidating permit procedures, prohibited locations, and operational standards, by reading of the title only and waiving further reading.

2. Schedule the second reading and formal adoption of the ordinance for the next regular City Council meeting on November 2, 2026.

EXECUTIVE SUMMARY
The proposed ordinance amending Article II, Chapter 16A, §§16A.13–15, transitions the Mobile Vending Pilot Program outlined in Resolution No. 2026-05 to a permanent regulatory framework. It modernizes and consolidates requirements, integrating existing pilot provisions into one chapter, establishes the vending zones and no-vending areas, and streamlines permitting. Adoption will provide consistency, transparency, and improved management of mobile vending within commercial and public areas.

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8.1. BACKGROUND
The City launched the Mobile Vending Pilot Program in June 2025 (Resolution 2025-26) to provide a framework to assess feasibility and public response to food trucks in various city locations, ensure compatibility with nearby land uses and businesses, evaluate impacts on traffic, parking and pedestrian flow, and support economic activity and place-making efforts. This resolution was informed by a downtown ad hoc committee, feedback from downtown businesses, comparative analysis of regional mobile vending programs, and modern standards.

In January 2026, Council extended the Pilot Program and incorporated enforcement tools such as permit suspension and revocation (Attachment 1 - Resolution 2026-05).

Section I of Resolution 2026-05 extends the Pilot Program through October 31, 2026, or until adoption of a revised Mobile Vending Ordinance, whichever comes first. Section I also allows the City Administrator to extend the Pilot Program pending final action of the City Council on a revised Mobile Vending Ordinance.

Previous Council direction supports permanently codifying the Pilot Program regulations.

ANALYSIS
The proposed ordinance establishes §16A.13 as a comprehensive framework that replaces previously distributed and outdated sections of the Municipal Code. It consolidates definitions, permit requirements, operational standards, enforcement mechanisms, and designated vending and no-vending locations into a single chapter for improved clarity.

A key modernization in the ordinance is the transition of permit authority from the Chief of Police to the Office of the City Administrator or their designee. Per the current code, mobile vending permits are to be reviewed and issued by the Police Department, with applicants required to submit forms, occupant information, and insurance documentation under §16A.14. This ordinance relocates permitting to an administrative function, aligning mobile vending with other business-related City approvals and reducing unnecessary reliance on law enforcement resources. This shift is consistent with statewide changes in sidewalk and mobile vending laws; State legislation, including SB 946 (2018) and SB 972 (2022), restricts cities from requiring police-based registration. These laws emphasize administrative permitting, time-place-manner regulation, and public health compliance.

Integrating all requirements into a single chapter simplifies administration, clarifies vendor compliance expectations, enhances transparency, and ensures that vending in designated locations aligns with public safety, ADA accessibility, sanitation standards, and neighborhood compatibility. The ordinance also ensures continuity by automatically converting existing pilot permits to new §16A.13 permits upon adoption.

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8.1. As Section I of Resolution 2026-05 allows for the extension of the Pilot Program at the discretion of the City Administrator pending final action of the City Council on a revised Mobile Vending Ordinance, the provisions outlined in Resolution 2026-05 will remain in effect until the Ordinance takes effect, estimated to be December 2, 2026 (30 days after the November 2, 2026, second reading and adoption of the Ordinance).

Approved Mobile Vendors - as of October 5, 2026(Attachment 2 – Approved Mobile Vendors):
• 23 applications have been received
o 7 applications are incomplete; applicants have been contacted for additional information
o 16 applications have been approved and are permitted
▪ 9 are approved to operate at specific locations, 4 of which are located within the downtown footprint on Monterey Road between 1 st and 10th Street
▪ 7 are approved to operate but do not have a set location. They may participate in special events or on private property that meets the criteria of the Pilot Program, with explicit written permission by the property owner
Code Enforcement Activity:
• Since the pilot program began, Code Enforcement has contacted 31 mobile food vendors and issued 7 citations.
o January – October 2026 – 7 food truck vendors were contacted; 2 citations were issued.
o June – December 2025 – 24 mobile food vendors were contacted; 5 citations were issued
• All mobile food vendors were cooperative when informed they lacked required permits or were in unapproved locations. Some operators lacked official identification, making it difficult to issue citations or verify repeat contacts.

ALTERNATIVES

1. Maintain the pilot program without adopting permanent regulations. This would prolong temporary rules, create ambiguity for vendors, and delay the benefits of a unified chapter.

2. Adopt only partial revisions to existing sections. This approach would preserve inconsistent and outdated provisions scattered across multiple chapters,

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8.1. increasing administrative complexity

FISCAL IMPACT/FUNDING SOURCE
Adopting the ordinance is not expected to create significant new costs for the City.

There may be some shifts in staff workload related to permit administration, but no increase in overall staffing needs is anticipated. Administrative processing, such as reviewing applications, monitoring compliance, and issuing permits, has already been absorbed by existing staff using standard business-permit workflows.

The ordinance may generate modest revenue through permit fees, which help offset administrative costs. Eliminating the Police Department’s role in permit issuance may reduce time spent on non-law-enforcement duties, providing a small operational efficiency gain. No major capital purchases or new enforcement programs are required, and existing enforcement mechanisms (such as suspensions and revocations) are handled using current City processes.

PUBLIC OUTREACH
Throughout the Pilot Program, staff has worked with downtown businesses and mobile vendors to shape the program.

NEXT STEPS
If approved, a second reading of the ordinance is required.

Attachments:

1. Reso 2026-05 - Food Truck Pilot Program Extension

2. Approved Mobile Vendor List

3. Current City Code Article II Chapter 16A §§16A.13-15

4. Mobile Vending Ordinance Update

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Gilroy City CouncilOctober 19, 2026

Gilroy City Council
October 19, 2026