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2022-01-10 - City Council Regular Meeting Agenda Packet January 7, 2022 4:35 PM City Council Regular Meeting Agenda Page1 MAYOR Marie Blankley COUNCIL MEMBERS Rebeca Armendariz Dion Bracco Zach Hilton Peter Leroe-Muñoz Carol Marques Fred Tovar CITY COUNCIL AGENDA CITY OF GILROY CITY COUNCIL CHAMBERS, CITY HALL 7351 ROSANNA STREET GILROY, CA 95020 REGULAR MEETING 6:00 P.M. MONDAY, JANUARY 10, 2022 **AMENDED** CITY COUNCIL PACKET MATERIALS ARE AVAILABLE ONLINE AT www.cityofgilroy.org AGENDA CLOSING TIME IS 5:00 P.M. THE TUESDAY PRIOR TO THE MEETING Due to COVID-19, it is possible that the planned in-person meeting may have to change to a virtual meeting at any time and possibly on short notice. Please check the City of Gilroy website at http://gilroyca.iqm2.com/Citizens/default.aspx for any updates to meeting information. COMMENTS BY THE PUBLIC WILL BE TAKEN ON AGENDA ITEMS BEFORE ACTION IS TAKEN BY THE CITY COUNCIL. Persons wishing to address the Council are requested, but not required, to complete a Speaker’s Card located at the entrances. Public testimony is subject to reasonable regulations, including but not limited to time restrictions for each individual speaker. A minimum of 12 copies of materials should be provided to the City Clerk for distribution to the Council and Staff. Please limit your comments to 3 minutes. The amount of time allowed per sp eaker may vary at the Mayor’s discretion depending on the number of speakers and length of the agenda. Written comments on any agenda item may be emailed to the City Clerk’s Office at cityclerk@cityofgilroy.org or mailed to the Gilroy City Clerk’s Office at City Hall, 7351 Rosanna Street, Gilroy, CA 95020. Comments received by the City Clerk’s Office by 1 p.m. on the day of a Council meeting will be distributed to the City Council prior to or at the meetin g and available for public inspection with the agenda packet located in the lobby of Administration at City Hall, 7351 Rosanna Street prior to the meeting. Any correspondence received will be incorporated into the meeting record. Items received after the 1 p.m. deadline will be provided to the City Council as soon as practicable. In compliance with the Americans with Disabilities Act, and Governors Order N -29-20, the City will make reasonable arrangements to ensure accessibility to this meeting. If you need special assistance to participate in this meeting, please contact the City Clerk a minimum of 72 hours prior to the meeting at (408) 846-0204. If you challenge any planning or land use decision made at this meeting in court, you may be limited to raising only those issues you or someone else raised at the public hearing held at this meeting, or in written correspondence delivered to the City Council at, or prior to, the public hearing. Please take notice that the time within which to seek judicial review of any final administrative determination reached at this meeting is governed by Section 1094.6 of the California Code of Civil Procedure. City Council Regular Meeting Agenda 01/10/2022 Page2 A Closed Session may be called during this meeting pursuant to Government Code Section 54956.9 (d)(2) if a point has been reached where, in the opinion of the legislative body of the City on the advice of its legal counsel, based on existing facts and circumstances, there is a significant exposure to litigation against the City. Materials related to an item on this agenda submitted to the City Council after distribution of the agenda packet are available with the agenda packet on the City website at www.cityofgilroy.org subject to Staff’s ability to post the documents before the meeting. KNOW YOUR RIGHTS UNDER THE GILROY OPEN GOVERNMENT ORDINANCE Government's duty is to serve the public, reaching its decisions in full view of the public. Commissions, task forces, councils and other agencies of the City exist to conduct the people's business. This ordinance assures that deliberations are conducted before the people and that City operations are open to the people's review. FOR MORE INFORMATION ON YOUR RIGHTS UNDER THE OPEN GOVERNMENT ORDINANCE, TO RECEIVE A FREE COPY OF THE ORDINANCE OR TO REPORT A VIOLATION OF THE ORDINANCE, CONTACT THE OPEN GOVERNMENT COMMISSION STAFF AT (408) 846-0204 I. OPENING A. Call to Order 1. Pledge of Allegiance 2. Invocation 3. City Clerk's Report on Posting the Agenda 4. Roll Call B. Orders of the Day C. Employee Introductions II. CEREMONIAL ITEMS A. Proclamations, Awards and Presentations III. PRESENTATIONS TO THE COUNCIL City Council Regular Meeting Agenda 01/10/2022 Page3 PUBLIC COMMENT BY MEMBERS OF THE PUBLIC ON ITEMS NOT ON THE AGENDA BUT WITHIN THE SUBJECT MATTER JURISDICTION OF THE CITY COUNCIL This portion of the meeting is reserved for persons desiring to address the Council on matters within the Gilroy City Council’s jurisdiction but not on the agenda. Persons wishing to address the Council are requested to complete a Speaker’s Card located at the entrances and handed to the City Clerk. Speakers are limited to 1 minute each. The amount of time allowed per speaker may vary at the Mayor’s discretion depending on the number of speakers and length of the agenda. The law does not permit C ouncil action or extended discussion of any item not on the agenda except under special circumstances. If Council action is requested, the Council may place the matter on a future agenda. Written comments to address the Council on matters not on this agend a may be e-mailed to the City Clerk’s Office at cityclerk@cityofgilroy.org or mailed to the Gilroy City Clerk’s Office at City Hall, 7351 Rosanna Street, Gilroy, CA 95020. Comments received by the City Clerk’s Office by 1:00pm on the day of a Council meeti ng will be distributed to the City Council prior to or at the meeting and available for public inspection with the agenda packet located in the lobby of Administration at City Hall, 7351 Rosanna Street, prior to the meeting. Any correspondence received wil l be incorporated into the meeting record. Items received after the 1:00pm deadline will be provided to the City Council as soon as practicable. Written material provided by public members under this section of the agenda will be limited to 10 pages in hard copy. An unlimited amount of material may be provided electronically. City Council Regular Meeting Agenda 01/10/2022 Page4 IV. REPORTS OF COUNCIL MEMBERS Council Member Bracco – Gilroy Sister Cities Association (alternate), Santa Clara Co. Library JPA, SCVWD Joint Council-SCRWA-Board Water Resources Committee, South County Regional Wastewater Authority Board, Street Naming Committee Council Member Armendariz – ABAG (Alternate), CalTrain Policy Group, Gilroy Downtown Business Association Board (alternate), Gourmet Alley Ad Hoc Committee, Historic Heritage Committee, Santa Clara Co. Library JPA (alternate), Santa Clara Valley Habitat Agency Implementation Board, Silicon Valley Clean Energy Authority JPA Board (Alternate), Street Naming Committee, VTA Committee for Transit Accessibility (Alternate) Council Member Marques - Gilroy Downtown Business Association Board, Gilroy Gardens Board of Directors, Gourmet Alley Ad Hoc Committee, Historic Heritage Committee (Alternate), Santa Clara Valley Habitat Agency Governing Board, Santa Clara Valley Habitat Agency Implementation Board, South County Regional Wastewater Authority (Alternate) Council Member Hilton – Gilroy Economic Development Partnership, Silicon Valley Clean Energy Authority JPA Board, South County United for Health, Visit Gilroy California Welcome Center Board Council Member Tovar – Economic Development Corporation Board, Gourmet Alley Ad Hoc Committee, Recycling and Waste Reduction Commission, Santa Clara Co. Expressway Plan 2040 Policy Advisory Board, SCVWD Water Commission (alternate), South County Joint Recycled Water Advisory Committee, South County Regional Wastewater Authority Board, Street Naming Committee, South County Youth Task Force Policy Team (alternate), VTA Committee for Transit Accessibility Council Member Leroe-Muñoz - ABAG, CalTrain Policy Group (alternate), Cities Association of Santa Clara County Board of Directors, Economic Development Corporation Board, Gilroy Youth Task Force, SCVWD Water Commission, Silicon Valley Regional Interoperability Authority Board, South County Youth Ta sk Force Policy Team, VTA Mobility Partnership, VTA South County City Group (alternate), VTA Policy Advisory Committee (alternate) Mayor Blankley - Cities Association of Santa Clara Co. Board of Directors (alternate), Gilroy Economic Development Partnership, Gilroy Sister Cities Association, Gilroy Youth Task Force (alternate), Santa Clara Valley Habitat Agency Governing Board, SCVWD Joint Council-SCRWA-Board Water Resources Committee, South County Joint Recycled Water Advisory Committee, South County Regional Wastewater Authority Board, VTA Board of Directors Alternate, VTA Mobility Partnership, VTA Policy Advisory Committee, VTA South County City Group V. FUTURE COUNCIL INITIATED ITEMS City Council Regular Meeting Agenda 01/10/2022 Page5 VI. CONSENT CALENDAR (ROLL CALL VOTE) All matters listed under the Consent Calendar are considered by the City Council to be routine and will be enacted by one motion. There will be no separate discussion of these items unless a request is made by a member of the City Council or a member of the public. Any person desiring to speak on any item on the consent calendar should ask to have that item removed from the consent calendar prior to the time the Council votes to approve. If removed, the item will be discussed in the order in which it appears. 1. December 6, 2021 City Council Regular Meeting Minutes 2. December 13, 2021 City Council Special Meeting Action Minutes 3. Claim of Westwood Inv., LLC (The City Administrator recommends a “yes” vote under the Consent Calendar shall constitute the denial of the claim) VII. BIDS AND PROPOSALS 1. Award of Contract for CEQA Review of Planning Application's AS21-13 and TM 21-02 for 6970 Camino Arroyo Development Project. 1. Staff Report: Kraig Tambornini, Senior Planner 2. Public Comment 3. Possible Action: Award a contract to EMC Planning in the amount of $169,049.00 for preparation of an initial study/mitigated negative declaration for Planning Application AS 21 - 13 and authorize the City Administrator to execute the contract and associated documents. 2. Approval of a Fiscal Year 2021-2022 Budget Amendment Increasing Appropriations in the Amount of $63,502 and Award of a Contract to Burkett's Pool Plastering Inc. for a Base Bid amount of $280,457, with a contingency of $28,045 for the Christopher High School Activity Pool Re - Plaster, Project No. 22-ASD-271. 1. Staff Report: Walter Dunckel, Facilities Superintendent 2. Public Comment 3. Possible Action: a. Adopt a resolution of the City Council of the City of Gilroy amending the FY 22 budget to transfer $63,502 from Capital Projects Fund (400) to Fa cilities Fund (651) and appropriate the related expenditure for the Pool Replaster project. b. Award a contract to Burkett's Pool Plastering Inc. for the base bid price of $280,457 for the Christopher High School Activity Pool Re-plaster, Project No. 22-ASD-271, establish a contingency of up to $28,045 (10%), and authorize the City Administrator to execute the contract and associated documents. VIII. PUBLIC HEARINGS City Council Regular Meeting Agenda 01/10/2022 Page6 IX. UNFINISHED BUSINESS 1. Streamline Consolidation of the City's Boards and Commissions 1. Staff Report: Jimmy Forbis, City Administrator 2. Public Comment 3. Possible Action: Council: a) Adopt A Resolution of the City Council of the City of Gilroy Consolidating the Housing and Neighborhood Revitalization Committee, Historic Heritage Committee, and the Street Naming Committee, and Placing Their Associated Board Functions Under the Authority of the Planning Commission. b) Motion to read the ordinance by title only and waive further reading. c) Introduce an Ordinance of the City Council of the City of G ilroy Consolidating the Bicycle Pedestrian Commission and Placing Their Associated Board Functions for Infrastructure Planning and Development Review Under the Authority of the Planning Commission, and the Associated Board Functions for Education and Encouragement Activities Under the Authority of the Parks and Recreation Commission. X. INTRODUCTION OF NEW BUSINESS 1. Consideration of Authorizing Virtual Meetings Pursuant to Section 54953 of the Brown Act for Council and all Boards and Commissions 1. Staff Report: Jimmy Forbis, City Administrator 2. Public Comment 3. Possible Action: Adopt Resolution authorizing virtual meetings pursuant to Section 54953 of the Brown Act for Council and all Boards and Commissions. 2. Accept the Annual Comprehensive Financial Report for Fiscal Year-Ended June 30, 2021 1. Staff Report: Harjot Sangha, Finance Director 2. Public Comment 3. Possible Action: Accept and file report. XI. CITY ADMINISTRATOR'S REPORT A. Covid-19 Update B. Status of In-Person Council Meetings C. City-wide Road Repairs Due to Recent Inclement Weather XII. CITY ATTORNEY'S REPORT XIII. CLOSED SESSION ADJOURNMENT City Council Regular Meeting Agenda 01/10/2022 Page7 MEETING DATES FUTURE MEETING DATE: JANUARY 2022 24* Regular Meeting - 6:00 p.m. FEBRUARY 2022 7* Regular Meeting - 6:00 p.m. 15* Special Meeting - Council Retreat - 6:00 p.m. 28* Regular Meeting - 6:00 p.m. MARCH 2022 7* Regular Meeting - 6:00 p.m. 21* Regular Meeting - 6:00 p.m. *meeting is webstreamed and televised CITY OF GILROY I CITY CLERK'S OFFICE Thai Nam Pham, CMC, CPMC I City Clerk 7351 Rosanna Street I Gilroy, CA 95020-6197 Email: thai.pham@cityofgilroy.org Phone: (408) 846-0204 I www.cityofgilroy.org January 10, 2022 TO : Mayor Blankley City Counciimembers FROM: Thai Nam Pham, CMC, CPMC RE: Public Comment — Items Not on Agenda Attached is email correspondence received in the City Clerk's Office for items Not on the Agenda on the following topics: • Reach Codes • El Camino Real Mission Bell cc: City Administrator City Attorney Thai Pham From: Maria Aguilar < Sent: Sunday, January 9, 2022 11:04 PM To: City Clerk Subject: EXTERNAL - Public comment: January 10th city council meeting ICAUTION: This email originated from an External Source. Please use proper judgment and caution when opening attachments, clicking links, or responding to this email. I recently attended, via zoom, a presentation by the County of Santa Clara Climate Roadmap 2030. I was taken aback to learn that all the cities in the county have an all electric Reach code or natural gas ban except for Gilroy. It seems to me that our city needs to do it's part in attaining the goal of 100% carbon free electricity, thereby protecting the health of our residents from emissions. Perhaps all new construction should not be approved unless they comply with reach code guidelines. Thank you Maria Aguilar Sent from Yahoo Mail on Android Anne Bybee From: Mimi S < Sent: Monday, January 10, 2022 3:48 PM To: City Clerk; Mayor Marie Blankley; Council Member Fred Tovar; Council Member Rebeca Armendariz; Council Member Dion Bracco; Council Member Zachary Hilton; Council Member Peter Leroe-Munoz; Council Member Carol Marques Cc: amahmutsun2020@gmail.com; Kanyon Sayers -Roods Subject: EXTERNAL - Please reject a symbolic Mission bill marker on Public land in Gilroy ICAUTION: This email originated from an External Source. Please use proper judgment and caution when opening attachments, clicking links, or responding to this email. Dear Gilroy City Clerk, Mayor and Honorable City Council members, Hello my name is Michelle Spreadbury. As a resident of Gilroy's neighboring community of San Jose, I am contacting you to respectfully ask that you kindly consider to be on the right side of history and take action to please prevent the erection of a new El Camino Real mission bell marker in downtown Gilroy. Simply put, the mission bell is a symbol of the enslavement and attempted genocide of Indigenous people in California, a symbol that glorifies the dehumanization, destruction, and erasure of the first peoples of our state. On a personal note, I took part this past year in the Mission bells symposium at Santa Cruz Mission. There was a lot of shocking information from the Indigenous leaders and scholars about our shared brutal California Mission history. That symposium and more information is found on the RemoveTheBells.org website. I hope you will have some time to look at the useful *bipartisan links and resources on this website. Finally, we should not romanticize or celebrate this brutal history of California. Erecting a new mission bell would be a stain on our entire region. I respectfully ask you to respect the calls of our Indigenous communities and neighbors. So please act to prevent this mission bell from being installed. Thank you for reading my message. Sincerely, Michelle "Mimi" Spreadbury San Jose, Orchard City Indivisible Environmental Justice working group 1 Anne Bybee From: Aleksandra Wolska < Sent: Monday, January 10, 2022 4:05 PM To: City Clerk Subject: EXTERNAL - Saying NO to the mission bell CAUTION: This email originated from an External Source. Please use proper judgment and caution when opening attachments. clicking links, or responding to this email. Dear Thai Pham, This letter is in supports the effort to say NO to a new mission bell in Giloryl May it not happen. May all the mission bells come down in time. live in Santa Cruz and am a part of conservation efforts on the coastal Cascade Ranch, which attempts to restore the indigenous habitat of the area. As such, I am also a supporter of Native American rights and proper representation of indigenous issues in the public arena.The new mission bell proposal, when viewed in the context of the brutal history of colonization in CA, glorifies oppression of native people by commemorating the atrocities of missionary efforts. It is an insult to the contemporary Tribes as well as to anybody who wishes for justice, equality and living in harmony with all people. Please let's not make it happen. Sincerely, Dr. Aleksandra Wolska Founder and Artistic Co -Director of Theater Between Santa Cruz, CA 1 Anne Bybee From: Brien Sparling < Sent: Monday, January 10, 2022 2:41 PM To: City Clerk Subject: EXTERNAL - Do not install the El Camino Real Mission Bell marker iCAUTION: This email originated from an External Source. Please use proper judgment and caution when opening attachments, clicking links. or responding to this email. I am Brien Sparling, an amateur historian, regular shopper in Gilroy and resident of nearby Royal Oaks community. Tonight's Board motion to erect a new marker commemorating El Camino Real is ill-advised and hurtful to the descendants of the indigenous tribes. Personally I enjoy the connotations of California's mission era past, but I cannot ignore the huge cost of our colonization in indigenous lives and culture lost. Since the El Camino Bell marker holds a specific symbolism to indigenous leaders, and these leaders have asked that the markers not be installed, I believe Gilroy Council should not allow the installing of the marker. Thank you, Brien Sparling Sent from Mall for Windows i Anne Bybee From: Natalie Olivas < Sent: Monday, January 10, 2022 2:04 PM To: Council Member Carol Marques; Council Member Peter Leroe-Munoz; Council Member Zachary Hilton; Council Member Dion Bracco; Council Member Rebeca Armendariz; Council Member Fred Tovar; Mayor Marie Blankley; City Clerk Cc: amahmutsun2020@gmail.com Subject: EXTERNAL - Stop New Mission Bells CAUTION: This email originated from an External Source. Please use proper judgment and caution when opening attachments, clicking links, or responding to this email. Hello, my name is Natalie Olivas. As a resident of Gilroy's neighboring community of Watsonville, I am contacting you to ask you to stand on the right side of history and take action to prevent the erection of a new El Camino Real mission bell marker in downtown Gilroy. Simply put, the mission bell is a symbol of the enslavement and attempted genocide of Indigenous people in California, a symbol that glorifies the dehumanization, destruction, and erasure of the first peoples of our state. We should not romanticize or celebrate this brutal history. Erecting a new mission bell would be a stain on our entire region. I ask you to respect the calls of Indigenous communities and act to prevent this mission bell from being installed. Natalie Olivas (she/her/ella) Regeneracion Community Organizer Regeneracion Pajaro Valley Climate Action Regeneracion - Action Climatica del Valle de Pajaro www. regenerationpajarovalley.orq 1 Anne Bybee From: Jan Guffey < Sent: Monday, January 10, 2022 1:49 PM To: City Clerk Subject: EXTERNAL - No on Bell on Monterey CAUTION: This email originated from an External Source. Please use proper judgment and caution when opening attachments, clicking links, or responding to this email. I strongly oppose the construction of a Mission Bell on Monterey Street. Mission bells are symbols of enslavement of indigenous peoples in the California Mission system, and the attempted destruction of indigenous cultures that began in that time period. We must move into the 21st century by recognizing the wrongs that were done in the past, and not glorify them. Sincerely, Jan Guffey i AMERICAN CIVIL LIBERTIES UNION FOUNDATION Northern California Transmitted via Electronic Mail January 10, 2022 Marie Blankley, Mayor marie.blankley@ci.gilroy.ca.us Fred Tovar, Mayor Pro Tempore fred.tovar@cityofgilrey.org Rebeca Armendariz, Council Member rebeca.armendariz@cityofgilroy.org Dion Bracco, Council Member dion.bracco@cityofgilroy.org Zach Hilton, Council Member zachary.hilton@cityofgilroy.org Peter Leroe-Munoz, Council Member peter.leroe-munoz@cityofgilroy.org Carol Marques, Council Member carol.marques@cityofgilroy.org Thai Pham, City Clerk cityclerk@cityofgilroy.org Re: Installation of El Camino Real Mission Bell Marker Dear Mayor Blankley and Members of the Gilroy City Council, The American Civil Liberties Union Foundation of Northern California ("ACLU NorCal") submits this letter to urge the Gilroy City Council to reconsider the decision to erect a new mission bell marker along the El Camino Real. The mission bell is a symbol of the enslavement ana attErnpted genocide of Indigenous people in Califomia that glorifies the dehumanization, destruction, and erasure of the first peoples of our state. While it is "fitting and appropriate that the occasion of the City's 150`h Anniversary be memorialized," we should not romanticize nor celebrate this brutal history and the ongoing impact it has on Indigenous communities today.) We join the Amah Mutsun Tribal Band and others to call on the Gilroy 150th Committee, the Gilroy Arts and Culture Commission, and the Gilroy City Council to bring people together towards healing, celebrate the Gilroy City Council, Resolution Approving The Installation Of An El .Camino Real Bell And Plaque In Downtown Gilroy To Commemorate The 150`h Anniversary Of The Incorporation Of The City Of Gilroy (Sept 21,.2020). American Civil Liberties Union of Northern California EXECUTIVE DIRECTOR Abdi Soften' • BOARD CHAIR Farah Brelvl SAN FRANCISCO OFFICE: 39 Drumm St. San Francisco. CA 94111 FRESNO OFFICE: PO Box 188 Fresno, CA 93707 • SACRAMENTO METRO OFFICE: PO Box 189070 Sacramento, CA 95818 TEL (415) 621-2493 • FAX (415) 255-1478 • TTY (415) 863-7832 • W W W. A C L U N C.O R G Gilroy City Council Page 2 of 4 diverse and resilient history of the City of Gilroy, and create a public installation that welcomes all. ACLU NorCal acknowledges that we exist on the occupied territory of over one hundred tribes and that this land has been stewarded by Indigenous people since time immemorial. Further, we recognize that Indigenous peoples continue to suffer from historic injustices as a result of colonization and dispossession of lands, people, culture, languages, and resources. ACLU NorCal supports and defends the rights of all Native American peoples to self-determination and to the retention of specific and unique cultural and religious traditions and practices.' Through this work, we aim to support Indigenous communities —and follow their lead —as they strive to uphold their sovereignty, dignity, and autonomy. We are honored to submit this letter in support of the Amah Mutsun Tribal Band and take inspiration in their tireless efforts to seek healing for Indigenous and non -Indigenous peoples in our region. Since the time of contact, powerful local, state, and federal institutions and governments have endeavored to completely erase Indigenous peoples by' engaging in brutal violence -and erasing history. California's treatment of its original inhabitants was shockingly violent, and the mission system was a particularly horrific part of this. Between 1769 and 1834, approximately 150,000 California Indians died as a direct result of the mission system, many of whom were worked to death building and maintaining the twenty-one missions. Those who fought back were often beaten, tortured, and killed. Of those children born into the mission at Santa Cruz alone, over 75% died before the age of five. The ringing of mission bells, used to call Indigenous slaves back to the missions after a day's work in the fields, is a reminder to indigenous peoples that they were subjugated to the priests and the missions. In stark contrast, these bells are held up as a celebration and commemoration —perpetuating the myth that mission life was peaceful, that missions sought the betterment of the Indigenous population, and that the Native American peoples were cared for. Culture, heritage, and history are critically important pieces of our identities, how we define ourselves; and our place in society. Symbols, images, andwords give meaning to everything around us including how we see ourselves and our own place in the world. Images that glorify colonial -settler myths and obscure- the realities of our collective history perpetuate intergenerational trauma and cause real harm to us all. Created in the early 1900s to promote local tourism, encourage visitation to the missions, and celebrate a distorted- version of history the El Camino Real bell markers promote the myth of the mission -obfuscating the impact of historical and intergenerational trauma on Indigenous peoples.; Tellingly, the City' of Gilroy Arts- and 2 ACLU NorCa1 Board of Directors, Res. No, 2021-06-24A, Resolution in Support of Nationwide ACLU Indigenous Justice Initiative (June 24, 2021),. available at https./[.www.aclunc org/sitesidefault/files7FOUNDATION%20RESOLUTION%20supporting e%20indigenous%20jusrice%20FINA4 L%2006.2.21.pdf. 3 Elias Castillo, A Cross of Thomes (Craven Street Books, Apr. 1, 2017). American Civil Liberties Union of Northern California EXECUTIVE DIRECTOR Abdl Soltani • BOARD CHAIR Farah Brelvl SAN FRANCISCO OFFICE: 39 Drumm St. San Francisco. CA 94111 FRESNO OFFICE: PO Box 188 Fresno. CA 93707 • SACRAMENTO METRO OFFICE: PO Box 189070 Sacramento. CA 95818 TEL (415) 621-2493 • FAX (415) 255-1478 • TTY (415) 863-7832 • W W W.AC LU N C.O R G Gilroy City Council Page 3 of 4 Culture Commission Staff Report proposing the installation of a mission bell makes no mention of the Indigenous people of Gilroy or the treatment of those people at the missions.4 Today, local governments, governmental agencies, private businesses, landowners, schools, and sports teams throughout the state of California are reckoning with our long -obscured past and taking the necessary steps to end ongoing harm of symbols like the mission bell. Localities are taking meaningful steps to rectify those harms by building relationships with Tribes and 'Indigenous, communities, acknowledging and rematriating the land, and acting as partners in illuminating the history and resilience of Indigenous peoples in California. In 2019, Governor Newsom issued an apology to California Native American Peoples "for the many instances of violence, mistreatment and neglect California inflicted." As a part of that apology, the Governor announced the creation of a Truth and Healing Council to document the testimonies and experiences of California's Indigenous peoples and work with the state to recommend steps towards healing.5 Statues that glorify Junipero Serra, Christopher Columbus,6 and the Missions have been removed. Public lands and privately -owned places —like Palisades Tahoe and Sue -Meg State Park —are being re -named to wipe derogatory and racist names from our map or to return to the names they were once called by ancestral inhabitants! And cities and universities are reinoving mission bells, recognizing the ongoing harm they cause to our communities.9 4 City of Gilroy Arts And Culture Commission, Staff Report re Gilroy 150th Committee El Camino Real Bell Project (Sept. 8, 2020). 5 Exec. Dep't State of Cal., Exec. Order N-15-19 (June 18, 2019), available at: https://www.gov.ca.gov/wp-content/uploads/2019/06/6.18.19-Executive-Order.pdf. 6 Kim Bojorquez, Gavin Newson signs law to replace Sacramento Junipero Serra statue with monument for tribes, THE SACRAMENTO BEE (Sept. 24, 2021), available at: https://www.sacbee. com/news/p olitics=government/capitol-alert/artic1e254079163.html. 7 Daniela Blei, San Francisco's 'Early Days' Statue Is Gone. Now Comes the Work of Activating Real History, SMITHSONIAN MAGAZINE (Oct. 4, 2018), available at: https://www.smithsonianmag.com/smithsonian-institution/san-francisco-early-days-statue-gone- now-comes-work-activating-real-history-180970462/. $ CAL. DEP'T OF PARKS AND RECREATION, Sue-meg State Park, available at: https://www.parks.ca.gov/?page_id=417 (last accessed Jan. 10, 2022); Palisades Tahoe, The name is new. The legend continues. Welcome to Palisades Tahoe:, available at: https://www.palisadestahoe.corn/new-name (last accessed Jan. 10, 2022). 9 REMOVE THE EL CAMINO REAL BELLS, available at: https://removethebells.org/; Letter from Valentin Lopez, Amah Mutsun Tribal Band Chair, to the Gilroy City Council (Jan. 10, 2022), availableat: https://drive.google.com/file/d/1 ELIXdTBeMIPR9IDHg14CI8wXufMikd_g/view?fbclid=IwAR3 Fbx-FWYdP-rwB_ProJUakyvcKf-oVQzPhG9gbkBj-M6LeMOJSuOPocFo American Civil Liberties Union of Northern California EXECUTIVE DIRECTOR Abell Solteni • BOARD CHAIR Farah Brelvi SAN FRANCISCO OFFICE: 39 Drumm St. San Francisco. CA 94111 FRESNO OFFICE: PO Box 188 Fresno. CA 93707 • SACRAMENTO METRO OFFICE: PO Boa 189070 Sacramento. CA 95818 TE L (415) 671-2493 • FAX (415) 255-1478 • TTY (415) 863-7832 • W W W. A C LU N C.0 R G Gilroy City Council Page 4 of 4 Symbols like the mission bellimmunize us to violence and genocide and continue the erasure and invisibility of our Indigenous communities. Instead of contributing to a false narrative that glorifies violence and obscures the truth of our shared history, the City of Gilroy has an opportunity towork alongside Indigenous communities to contribute to the creation of a new narrative —one that speaks to the strength, resiliency, diversity, and leadership of Native American communities in the region. We urge the Gilroy City Council to heed the call of your constituents, the call of history, and the call to live up to your own values and reconsider your decision to erect a mission bell at its January 10, 2022 meeting. Sincerely, Tedde Simon Indigenous Justice Advocate ACLU Foundation of Northern Califomia tsimon@aclunc.org � Valentin Lopez vjltestingcenter@aol.com. Liberties Union of Northern California EXECUTIVE DIRECTOR Abdi Soltent • BOARD CHAIR Farah Bralvi SAN FRANCISCO OFFICE:39 Drumm St. San Francisco, CA 94111 FRESNO OFFICE: PO Box 188 Fresno. CA 93707 • SACRAMENTO METRO OFFICE: PO Box 189070 Sacramento, CA 95818 TEL (415) 621-2493 • FAX (415) 255-1478 • TTY (415) 863-7832 • W WW.A CLUNC.ORG Anne Bybee From: Moria Merriweather < Sent: Monday, January 10, 2022 12:55 PM To: Mayor Marie Blankley; Council Member Peter Leroe-Munoz; Council Member Rebeca Armendariz; Council Member Dion Bracco; Council Member Zachary Hilton; Council Member Fred Tovar; Council Member Carol Marques Cc: City Clerk Subject: EXTERNAL - Please do not put up a new mission bell in Gilroy I CAUTION: This email originated from an External Source. Please use proper judgment and caution when opening attachments. clicking links. or responding to this email. Dear Gilroy City Council members, As a long-time resident of Gilroy's neighboring community of San Jose, I am deeply concerned to learn you are considering erecting a new mission bell in Gilroy. I have only a shallow, from -a -distance, knowledge to California's long history of enslaving, displacing, and killing the native people who lived here prior to European settlers taking over, And yet, I know that this history of genocide and cultural destruction is enshrined and symbolized by he Mission Bells. Further, I know that the Amah Mutsun people are opposed to this plan. I know that the Amah Mutsun people know the history of abuse toward them and other native people in deep and personal detail. Please do not create any new mission bell. Please vote swiftly and decisively against any such plan. The native people who lived for so many generations on this land hold the land and all its inhabitants as sacred, and I hold them as sacred. I pray that we can bring the communities of Gilroy and the South Bay into harmony with the Amah Mutshn and with all the native people of Californa. Thank you Moria "The times are urgent. Let us slow down" — West African elders (as told here http://deeep.org/wp- content/uploads/2014/11/GlobalConference2014 BayosSpeech.pdf) "The Biggest Pandemic: Twice as many people died in 2020 of heart disease (690,882) as from COVID-19 (345,323). This doesn't even include another 159,150 who died from stroke and another 106,106 from diabetes (mostly type 2), which have the same risk factors as heart disease. While Covid-19 is an airborne disease, and cardiovascular disease and type 2 diabetes are predominantly lifestyle and food -borne diseases, it would be wise for the CDC and HHS to put at least as much effort into preventing these chronic conditions as Covid-19." --Dean Ornish, M.D. I Founder & President, Preventive Medicine Research Institute; Clinical Professor of Medicine, UCSF, quoted from https://jamanetwork.com/journals/jama/fullarticle/2778234 1 Anne Bybee From: Ana Victoria Fortes < Sent: Monday, January 10, 2022 1:11 PM To: City Clerk; Mayor Marie Blankley; Council Member Fred Tovar; Council Member Rebeca Armendariz; Council Member Dion Bracco; Council Member Zachary Hilton; Council Member Peter Leroe-Munoz; Council Member Carol Marques Cc: Subject: EXTERNAL - No El Camino Real Mission Bell Markers In Respect of Indigenous Communities CAUTION: This email originated from an External Source. Please use proper judgment and caution when opening attachments, clicking links, or responding to this email. Elected Officials of Gilroy: Hello my name is Ana Victoria Fortes. As a resident of Gilroy's neighboring community of Oakland, on the unceded territory of the Ohlone peoples, I am contacting you to ask you to stand on the right side of history and take action to prevent the erection of a new El Camino Real mission bell marker in downtown Gilroy. Simply put, the mission bell is a symbol of the enslavement and attempted genocide of Indigenous people in California, a symbol that glorifies the dehumanization, destruction, and erasure of the first peoples of our state. We should not romanticize or celebrate this brutal history. Erecting a new mission bell would be a stain on our entire region. I ask you to respect the calls of Indigenous communities, especially the Amah Mutun peoples, and act to prevent this mission bell from being installed. Respectfully, Ana Victoria Fortes 1 Anne Bybee From: Jenny < Sent: Monday, January 10, 2022 12:58 PM To: City Clerk; Mayor Marie Blankley; Council Member Fred Tovar, Council Member Rebeca Armendariz; Council Member Dion Bracco; Council Member Zachary Hilton; Council Member Peter Leroe-Munoz; Council Member Carol Marques Cc: Jenny Redfern Subject: - EXTERNAL - Please do not erect another mission bell marker CAUTION: This email originated from an External Source. Please use proper judgment and caution when opening attachments, clicking links, or responding to this email. To the Gilroy City Council, As a resident of Gilroy's neighboring community, Morgan Hill, I'm joining our indigenous local communities to ask you to stand on the right side of history and prevent the erection of a new El Camino Real mission bell marker in downtown Gilroy. A marker with the history of our native peoples, such as the Amah Mutsun, would be more appropriate. The mission bell symbolizes only the conquerors, who enslaved and dehumanized the native peoples they encountered. We should not romanticize this brutal history with mission bells symbolizing the structures the natives were forced to build. Please respect the calls of indigenous communities and act to prevent this mission bell replica from being installed. Best wishes, Jenny R. Redfern t Anne Bybee From: Nassim Nouri < Sent: Monday, January 10, 2022 12:35 PM To: Mayor Marie Blankley; Council Member Fred Tovar; Council Member Rebeca Armendariz; Council Member Dion Bracco; Council Member Zachary Hilton; Council Member Peter Leroe-Munoz; Council Member Carol Marques; City Clerk Subject: EXTERNAL - Please prevent the installation of a new mission bell ICAUTION: This email originated from an External Source. Please use proper judgment and caution when opening attachments, clicking links, or responding to this email. Dear honorable Gilroy Mayor and Councilmembers, My name is Nassim Nouri and I am contacting you to urge you to stand on the right side of history and take action to prevent the erection of a new El Camino Real mission bell marker in downtown Gilroy. Simply put, the mission bell is a symbol of the enslavement and attempted genocide of Indigenous people in California, a symbol that glorifies the dehumanization, destruction, and erasure of the first peoples of our state. We should not romanticize or celebrate this brutal history. Erecting a new mission bell would be a stain on our entire region. I ask you to please respect the calls of Indigenous communities and act to prevent this mission bell from being installed. Thank you, Best regards, Nassim Nouri Councilmember, the Green Party of Santa Clara County 1 Anne Bybee From: Penelope Hughes < Sent: Monday, January 10, 2022 12:19 PM To: City Clerk Subject: EXTERNAL - Opposition to the installation of Catholic mission bells in Gilroy CAUTION: This email originated from an External Source. Please use proper judgment and caution when opening attachments, clicking links, or responding to this email. My name is Penelope Anne Hughes, my husband and two adult sons have Cherokee and Choctaw heritage and are enrolled in the Cherokee Nation. We live in neighboring Castro Valley. I am contacting you to ask you to take the necessary action to prevent a new El Camino Real mission bell marker in downtown Gilroy and any other symbols of genocide and racism from being installed in Gilroy. The mission bell is a symbol of the enslavement and the nearly successful genocide of Indigenous people in California; a symbol that glorifies the dehumanization, destruction, and erasure of the first peoples of our state. The installment of a new mission bell would continue the romanticism and celebration of this dark, brutal side of our history. I ask you to respect the calls of Indigenous communities and their supporters and act to prevent this mission bell from being installed in Gilroy. Please stand on the side of truth and justice. Respectfully, Penelope Anne Hughes i Anne Bybee From: Greg SeaLion Cotten < Sent: Monday, January 10, 2022 11:57 AM To: City Clerk; Mayor Marie Blankley; Council Member Fred Tovar; Council Member Rebeca Armendariz; Council Member Dion Bracco; Council Member Zachary Hilton; Council Member Carol Marques; Council Member Peter Leroe-Munoz Cr amahmutsun2020@gmail.com Subject: EXTERNAL - What were the Missions really like? Read Vatican quotes - No more bells, please ICAUTION: This email originated from an External Source. Please use proper judgment and caution when opening attachments, clicking links, or responding to this email. Leaders of Gilroy, The days of romanticizing the California Mission system are over. Don't take my word for it, please read the below quotes from the Vatican Archives - otherwise the source is cited. "My motive for fleeing [Mission San Francisco] was that my brother died on the other shore, and when I cried for him at the mission they whipped me. Also the alcade Valeriano hit me with a heavy cane for having gone to look for mussels at the beach without Raymundo's permission." - Homobono A Spanish inquiry directed by California Governor, Don Diego. July 21, 1797. "...I would like to inform you of the many abuses that are commonplace [in the California missions]. The manner in which the Indians are treated is by far more cruel than anything I have ever read about. For any reason, however insignificant it may be, they are severely and cruelly whipped, placed in shackles, or put in stocks for days on end without even a drop of water." - Father Antonio De la Concepcion Horra assigned to head Mission San Miguel wrote almost upon arrival in 1798 Saint Junipero Serra: "Father of the California Missions" The utmost goal of the Missions (and leader Junipero Serra) was to baptise and to ensure that upon death those souls, if kept from sin, ascended to heaven. Joy, pain, and suffering were simple artifacts of earthly existence, the thing that mattered more than anything, was that Indians ascended to heaven upon death. The words of Saint Junipero Serra: "...the spiritual side of the missions is developing most happily. In [Mission]San Antonio there are p� P 9 PP� Y• simultaneously two harvests at one time, one for wheat, and one of a plague among the children who are dying." - Junipero Serra's letter to superior Fr. Pangua in Mexico City, July 24, 1775 1 "... two or three whippings which Your Lordship may order applied to them... "If your lordship does not have shackles, with your permission they may be sent from here (Carmel Mission). I think the punishment should last one month." —Junipero Serra's letter to Spanish commander Moncada to punish a group of 4 Indians who tried to escape Carmel Mission several times, dated July 31st, 1775 We can not free the Indians, relinquish directing their future, or give up the authority to use punishment. "...spiritual fathers should punish their sons, the Indians, by blows... Saints don't seem to be any exception to the rule... Saint Solano gave directions for his Indians to be whipped...I do not see by what law or reasoning (my Indians) should be exempt [from being whipped]." • Junipero.:Serra's response to • Spanish Governor Neve's request: free the Indians, give them legal representation, and stop • whipping them, dated January 7, 1780 San Francisco Mission (Dolores) in 1797 a red hot iron to burn crosses into the faces of a group of men, women, and children who tried to escape the mission. (Changing Image Norman: University of Oklahoma, 1984) Native responses to an inquiry directed by California Governor Don Diego. The below native statements were given to Spanish soldiers who answered the question "why did you leave Mission San Francisco?" "My wife and daughter died, and on five separate occasions Father Danti ordered me whipped because I was crying. For this reason I fled." - Tibucio -- "My motive for fleeing was that my brother died on the other shore, and when I cried for him at the mission they whipped me. Also the alcade Valeriano hit me with a heavy cane for having gone to look for mussels at the beach without Raymundo's permission." - Homobono -- "My mother, two brothers, and three, nephews died, all of hunger. I left so I would not die also." - Liborato Carmel Mission 1786 French Admiral Jean -Francois Laperouse describes the scene : some natives in shackles and stocks, fetid squalor, and wrote it was no different than the slave plantations he visited in the Caribbean where the Franciscan policies toward the Indians was "reprehensible' adding they beat Indians for violations that in Europe would be considered insignificant. Mission Indians fate was "worse than that of slaves." — Spanish Governor Neve 1779 (San Francisco Historical Society, 1971) Mission San Fernando 1815 The captured leader of a group of Indians that escaped the mission had his feet and legs bound, then the skin of newly slaughtered calf tightly wrapped around him and sewn shut. He was tied to a post and left to suffocate under a hot sun that slowly shrank the calf skin. 2 —as witnessed and reported by Russian Seal Hunter Vassili Tarakanoff held in Mission San Femando for several years interviewed for Hubert Bancroft's History of California. Mission Santa Cruz 1812 Father Quintana was hated by Indians because of his penchant for flogging them freely. He fashioned a horsewhip tipped with iron barbs to use against the Indians. He was soon assassinated. Those responsible were sentenced to 50 daily lashes for 9 days and life sentence of hard labor. — Noted in "The Assassination of Padre Andres Quintana by the Indians of Mission Santa Cruz in 1812." Lorenzo Asisara By 10 years old mission children were considered laborers and assigned daily work. It's noted that many of the children were suffering from hernias. — French Navy Captain Jean Laperouse, leader of a major scientific expedition and his doctors. as noted in Population of the California Indians; Cook The El Camino Bells are the Confederate Statues of California - and are coming down. They are an artifact of selling California to those in the East. Please do not raise thisbell and perpetuate the glorification and the rornanization of this oppressive and brutal enslavement system. Cities are taking them down, citizens are taking them down. I request you not only not put up any more bells but that you support the removal of ALL El Camino Bells on public lands. Respectfully, Greg Cotten Marine Biologist and founding member of Friends ofJuristac 3 Anne Bybee From: Sent: Monday, January 10, 2022 11:46 AM To: Council Member Fred Tovar Cc: City Clerk; Amuh Mutsun Tribe Subject: EXTERNAL - No Mission Bell for Gilroy ICAUTION: This email originated from an External Source. Please use proper judgment and caution when opening attachments. clicking links, or responding to this email. "Hello my name is Julie Kowalewski Ward and I am a resident of Gilroy's neighboring community of Santa Cruz County. I am contacting you to ask you to stand on the right side of history and take action to prevent the erection of a new El Camino Real mission bell marker in downtown Gilroy. Simply put, the mission bell is a symbol of the enslavement and attempted genocide of Indigenous people in California, a symbol that glorifies the dehumanization, destruction, and erasure of the first peoples of our state. We should not romanticize or celebrate this brutal history. Erecting a new mission bell would be a stain on our entire region. I was raised Catholic, but I do not support this part of our history. All mission bells should be removed. I ask you to respect the calls of Indigenous communities and act to prevent this mission bell from being installed." Julie Kowalewski Ward 1 Anne Bybee From: Sent: Monday, January 10, 2022 10:55 AM To: City Clerk; Mayor Marie Blankley; Council Member Fred Tovar; Council Member Rebeca Armendariz; Council Member Dion Bracco; Council Member Zachary Hilton; Council Member Peter Leroe-Munoz; Council Member Carol Marques Cc: Subject: EXTERNAL - Please Don't Erect a Mission Bell in Gilroy i CAUTION: This email originated from an External Source. Please use proper judgment and caution when opening attachments, clicking links, or responding to this email. Dear Council Members, As a resident of Gilroy's neighboring community of Hayward, CA, and as a supporter of the Amah Mutsun, I am contacting you to ask you to stand on the right side of history and take action to prevent the erection of a new El Camino Real mission bell marker in downtown Gilroy. The mission bell is a symbol of the enslavement and attempted genocide of Indigenous people in California, a symbol that glorifies the dehumanization, destruction, and erasure of the first peoples of our state. We should not romanticize or celebrate this brutal history. Erecting a new mission bell would be a stain on our entire region. I ask you to do the right thing -- respect the calls of Indigenous communities, and act to prevent this mission bell from being installed. Thank you for your time. Sincerely, Lucretia Whitener i Anne Bybee From: Sent: Monday, January 10, 2022 10:25 AM To: Mayor Marie Blankley; Council Member Fred Tovar; Council Member Rebeca Armendariz; Council Member Dion Bracco; Council Member Zachary Hilton; Council Member Peter Leroe-Munoz; Council Member Carol Marques; City Clerk Cc: Amah Mutsun Tribal Band Subject: EXTERNAL - NO NEW MISSION BELLS CAUTION: This email originated from an External Source. Please use proper judgment and caution when opening attachments, clicking links, or responding to this email. Greetings. My name is Beth Ogilvie. I live in the SF Bay Area. I've been studying the history of California with a focus on the catastrophic impact of Europeans on the Native peoples. This catastrophe began with the Missions. The missions enslaved thousands of Indigenous people, treated them brutally, and directly or indirectly caused the death of 150,000. To memorialize this horrific time in our history with a mission bell would be unconscionable. It would send a message to the world that we the people of California are either unforgivably ignorant of our horrific history or shockingly indifferent to the suffering of so many people. We need to work toward healing the sins of the past, not glorifying them. I ask you to respect the calls of Indigenous communities and act to prevent this mission bell from being installed. Sincerely Beth Ogilvie Member, Peace and Justice Action Team Starr King Unitarian Universalist Church, Hayward 1 Anne Bybee From: Rename Squaw Valley < Sent: Monday, January 10, 2022 10:00 AM To: City Clerk; Mayor Marie Blankley; Council Member Fred Tovar; Council Member Rebeca Armendariz; Council Member Dion Bracco; Council Member Zachary Hilton; Council Member Peter Leroe-Munoz; Council Member Carol Marques Cc: Tedde Simon Subject: EXTERNAL - Support to ask Gilroy not to install a new mission bell ICAUTION: This email originated from an External Source. Please use proper judgment and caution when opening attachments, clicking links, or responding to this email. Dear Mayor Blankley and Council Members, Humbly and respectfully we write to you to reconsider your intent to erect a new El Camino Real Mission Bell. Not one American Presidency has addressed the primary problem of Indigenous people. The primary problem plaguing American tribal groups isn't civil rights, social integration, or even honoring treaties. It's that the United States has never corrected the legacies and burdens of genocide and slavery. Before genocide was carried out by the state of California, the Doctrine of Discovery not only permitted, but demanded, the subjugation of Indigenous peoples, void of any rights, opportunities or privileges under the Mission system. Missions redistributed 100% of what they saw as "natural resources," including land, water, flora and fauna, and slave labor. Business and trading were integral to this, and "rights" of those subjugated did not exist. In a nation of a race spaced society, it is what you own and control that determine your equal opportunities, rights, and privileges. As such, California remains the largest populated state in the union of Non -Federally Acknowledged tribes. Acknowledge the continued indigenous existence of the Amah Mutsun Tribal Band and respect their wishes. For over a half a century, continued lack of Federal Acknowledgement for most tribes petitioning for recognition is not only symptomatic of a broken system, but its continued awareness, prevailing disregard of its state, and insistence as the only means of Federal tribal acknowledgement, amounts to genocide through 1 beauracracy. Without Federal Acknowledgement America continues to tell individuals like myself and our tribes that we are anything but Native American until we have provided bona fide evidence from the United States only approved resources i.e. anthropologist and government officials. Honor our indigenous population, the first Californians, who continue to be disregarded, by hearing the calls for healing from the Amah Mutsun Tribal Band and respect their wishes. Matthew 7:12 is the golden rule and very much applicable as these bells memorialized the rhythm of life for all who lived at the christian missions, slaves included. They announced when it was time to go to church, time for breakfast, lunch and dinner, time for work, or time for rest, unless you were Indigneous - An Indian, A Native American. Those bells also rang for funerals, but did they ring for our people? For the mass graves? The bells are a symbol of intergenerational trauma of our indigenous communities and both their sight and sound are traumatic triggers for many tribal members. The pope in 2018 has publicly offered his voice to help amplify the call for healing within indigenous communities around the world - https://www.youtube.com/watch?v=ay4pAAtx0wM&t=19s Here, locally, the Fresno Diocese very much personifies the Pope's request, standing by our side, amplifying our calls to heal our indigenous communities. Please join the City of Santa Cruz and resolve to remove all El Camino Real bell markers from public property and respect the calls from the Amah Mutsun Tribal Band to heal our indigenous communities. Collectively we can better decide how to spend the allocated funds for these bells for an endeavor that will promote inclusiveness, welcome new residents, and live up to the Gilroy City "Vision" that "promotes Gilroy as a community for all." God Bless Roman C. Rain Tree Rename S-Valley (Fresno, County) Coalition Chair ( 2 Anne Bybee From: toni bauer < Sent: Monday, January 10, 2022 9:50 AM To: City Clerk; Mayor Marie Blankley; Council Member Fred Tovar; Council Member Rebeca Armendariz; Council Member Dion Bracco; Council Member Zachary Hilton; Council Member Peter Leroe-Munoz; Council Member Carol Marques Cc: Subject: EXTERNAL - ICAUTION: This email originated from an External Source. Please use proper judgment and caution when opening attachments, clicking links, or responding to this email. To: The Gilroy City Council RE: Consideration of erecting a Mission Bell on Monterey Road Dear Members, Please do not approve the addition of this mission bell. These bells began as a tourism advertising, marketing and promotional real estate strategy to idolize the Mission Period. They subvert the full truth of the indigenous history of the Mutsun and Awaswas peoples. Some may have since attached religious significance to these decorations, but it must be remembered that they also represent repression, religious subjugation and genocide to many. What is horrifyingly apparent is the nearly complete eradication of tribal culture and religion within the last 250 years of Western colonialization. Opposing this bell would be a significant gesture to the Amah Mutsun and could show a genuine desire to address the lack of awareness that is embedded in our community. There is a growing recognition among many in the spiritual community that the history of the first nations people who stewarded this land for millenia must be learned and honored. The Amah Mutsun understood the complex system of stewarding the land, fauna and flora; for example, their methods of controlled burns. How many of us are fluent in the culture and history of the people that stood here for at least 15,000 years? How many of us are even aware that their descendents continue to steward this land today? Failing to open our minds and change our perceptions further perpetuates these shameful activities. We have a long journey of introspection and action in order to right these injustices. would encourage the council to deny the approval of the bell, and to act proactively, commit funding and resources into promoting the true history of this area —in the words of the Amah Mutsun—and to recommend a complete history be taught in our schools and at our historic sites. Even though the history of the western treatment of tribal people is abhorrent, it is a disservice to our children to continue a myth of false reality. I challenge you to add your voice and position to encourage Gilroy and neighboring communities to take down the bells and educate our communities. Let us not only do this one thing. Let us heal. Antoinette Bauer Smedberg Director, Wisdom Center of Santa Cruz 1 Anne Bybee From: Sent: Monday, January 10, 2022 9:32 AM To: Mayor Marie Blankley Cc: Council Member Fred Tovar; Council Member Rebeca Armendariz; Council Member Dion Bracco; Council Member Zachary Hilton; Council Member Peter Leroe-Munoz; Council Member Carol Marques; City Clerk; Amah Mutsun Tribal Band Subject: EXTERNAL - Please support all your citizens and do NOT install the mission bell CAUTION: This email originated from an External Source. Please use proper judgment and caution when opening attachments, clicking links, or responding to this email. Mayor Blankley,Council Members Tovar, Armendariz, Bracco, Hilton, Leroe-Munoz, and Marques, I urge you to reconsider installing an El Camino Mission Bell in your city of Gilroy. And take a longer look to discover a symbol for yourupcoming celebration that represents all your citizens. Chair Valentin Lopez of the Amah Mutsun Tribal Band has offered to join you with the Gilroy members of their tribe to create a vision that represents the truth of the history of the Missions and the lives of all your citizens. I hope you will take this opportunity to go forward in your city acknowledging the true history of the missions and a vision of hope and inclusion. In community, Colleen Cabot, member First Unitarian Church of San Jose Anne Bybee From: Liz Milazzo < Sent: Monday, January 10, 2022 9:31 AM To: City Clerk Subject: EXTERNAL - Fwd: No new Mission Bells in Gilroy! ICAUTION: This email originated from an External Source. Please use proper judgment and caution when opening attachments, clicking links, or responding to this email. Forwarded message From: Liz Milazzo < Date: Mon, Jan 10, 2022 at 9:20 AM Subject: No new Mission Bells in Gilroy! To:<marie.blankley@ci.gilroy.ca.us>, <fred_tovar@cityofgilroy.org>,<rebeca.armendariz@citvofgilroy.org>, <dion.braccoPcityofgilroy.org>,<zachary.hilton@cityofgilrov.org>, <peter.Ieroe.munoz@citvofgilrov.org>, <caroLmarques@cityofgilroy.org> Cc: < , <cityclerk@cityofgilroy.org> Dear Mayor Blankley, Mayor Pro Tempore Tovar and Council Members Armendariz, Bracco, Hilton, Leroe_Munoz and Marques, I am writing to sincerely request that the City not erect a replica of the Spanish Mission bells. I attended two days of public events last August, held in Santa Cruz, to tell the true history of the California missions, and to remove the last of the Mission bells from public spaces in Santa Cruz. These bells represent the destruction of indigenous culture, spirituality and traditional knowledge. The bells were used to regulate the daily life of California Indians forcibly brought to the Missions and enslaved there. Chairman Valentin Lopez, other members of the Amah Mutsun Tribal Band, and representatives of many Native California Tribes spoke to the intergenerational trauma felt today when seeing or hearing the Mission bells, a symbol of the brutality and genocide their ancestors suffered. We have much work to do to tell the real truth of California history, and begin to find a path to reparations and healing. I grew up in California, and know now that I learned a whitewashed version of Mission history in the 4th grade. Our towns and communities continue to tell the history of California through the lens of settler colonialism, ignoring 10,000 years of history. We owe a huge debt of gratitude to the Mutsun people and all the indigenous peoples of California who stewarded these beautiful and productive landscapes for thousands of years. Every aspect of our current day towns and communities depends on this past and present stewardship of the Earth. Refraining from installing the Mission bell would be a sign of respect to the Amah Mutsun Tribal Band. Sincerely, Liz Milazzo 1 Anne Bybee From: Stacie Wolny < Sent: Monday, January 10, 2022 9:31 AM To: City Clerk; Mayor Marie Blankley; Council Member Fred Tovar; Council Member Rebeca Armendariz; Council Member Dion Bracco; Council Member Zachary Hilton; Council Member Peter Leroe-Munoz; Council Member Carol Marques Subject: EXTERNAL - No new mission bells ICAUTION: This email originated from an External Source. Please use proper judgment and caution when opening attachments, clicking links. or responding to this email. I've heard that the city of Gilroy has plans to install a mission bell as part of its sesquicentennial, and I'm writing to ask you to soul -search, reconsider and change direction. The glorification of California missions is a horror of continuing to whitewash their brutality against the Indigenous people of this land. That is not something we should celebrate, but is something that we should face up to, apologize for, learn from, and begin to make amends for. Other communities are finally removing their mission bells for this very reason, which is long past due. The very fact that a new mission bell is even being considered shows how unfortunately far we have to go to even acknowledge the genocidal history of the place we live. "Gilroy" as it is now wouldn't exist if land hadn't been stolen from its original people, ancestors of the Amah Mutsun Tribal Band, who lived here for thousands of years (and we think that 150 years is a long time, try 10,000...) before being cruelly decimated by those missions. If you're commissioning a piece that celebrates Gilroy, please work with the Amah Mutsun Tribal Band to create something that heals, not hurts. Something that not only acknowledges the recent invader history of this place, but respects the deep history of its first people, and the very land itself that Gilroy sets upon. Something that speaks the truth, and helps us *all* move a step forward *together*, which is what a celebration of community should be. Thank you. Stacie Wolny a white lady in nearby Campbell CA Anne Bybee From: Katherine McCamant < Sent: Monday, January 10, 2022 9:11 AM To: City Clerk Cc: Subject: EXTERNAL - Mission bell CAUTION: This email originated from an External Source. Please use proper judgment and caution when opening attachments. clicking links, or responding to this email. "Hello my name is Katherine McCamant. As a resident of Gilroy's neighboring community of Santa Cruz, I am contacting you to ask you to stand on the right side of history and take action to prevent the erection of a new El Camino Real mission bell marker in downtown Gilroy. Simply put, the mission bell is a symbol of the enslavement and attempted genocide of Indigenous people in California, a symbol that glorifies the dehumanization, destruction. and erasure of the first peoples of our state. We should not romanticize or celebrate this brutal history. Erecting a new mission bell would be a stain on our entire region. 1 ask you to respect the calls of Indigenous communities and act to prevent this mission bell from being installed." Sent from my iPad Sent from my iPad 1 Thai Pham From: rooney farris < Sent: Monday, January 10, 2022 8:50 AM To: Council Member Carol Marques; City Clerk; Mayor Marie Blankley; Council Member Fred Tovar; Council Member Rebeca Armendariz; Council Member Dion Bracco; Council Member Zachary Hilton; Council Member Peter Leroe-Munoz Cc: Subject: EXTERNAL - Opposing new mission bell U CAUTION: This email originated from an External Source. Please use proper judgment and caution when opening attachments. clicking links, or responding to this email. Hello, My name is Rooney Farris. As a resident of Gilroy's neighboring community of Santa Cruz, I am contacting you to ask you to stand on the right side of history and take action to prevent the erection of a new El Camino Real mission bell marker in downtown Gilroy. Simply put, the mission bell is a symbol of the enslavement and attempted genocide of Indigenous people in California, a symbol that glorifies the dehumanization, destruction, and erasure of the first peoples of our state. We should not romanticize or celebrate this brutal history. Erecting a new mission bell would be a stain on our entire region. I ask you to respect the calls of Indigenous communities and act to prevent this mission bell from being installed. Sincerely, Rooney i Thai Pham From: Jacqueline Tuttle < Sent: Monday, January 10, 2022 8:49 AM To: City Clerk Cc: Mayor Marie Blankley; Council Member Fred Tovar; Council Member Rebeca Armendariz; Subject: EXTERNAL - Don't erect a new mission bell CAUTION: This email originated from an External Source. Please use proper judgment and caution when opening attachments, clicking links, or responding to this email. "Hello my name is Jackie Tuttle. As a resident of Gilroy's neighboring community of Santa Cruz, I am contacting you to ask you to stand on the right side of history and take action to prevent the erection of a new El Camino Real mission bell marker in downtown Gilroy. Simply put, the mission bell is a symbol of the enslavement and attempted genocide of Indigenous people in California, a symbol that glorifies the dehumanization, destruction, and erasure of the first peoples of our state. We should not romanticize or celebrate this brutal history. Erecting a new mission bell would be a stain on our entire region I ask you to respect the calls of Indigenous communities and act to prevent this mission bell from being installed. I'm not sure why the lovely and growing city of Gilroy would choose to erect a new mission bell when most surrounding communities have removed their mission bells. Thank you for taking my comment. Jackie Tuttle Thai Pham From: Sent: Monday, January 10, 2022 8:46 AM To: Victor Sin; City Clerk; Mayor Marie Blankley; Council Member Fred Tovar; Council Member Rebeca Armendariz; Council Member Dion Bracco; Council Member Zachary Hilton; Council Member Peter Leroe-Munoz; Council Member Carol Marques Subject: EXTERNAL - El Camino Real Mission Bell Marker ' CAUTION: This email originated from an External Source. Please use proper judgment and caution when opening attachments, clicking links, or responding to this email. Dear Mayor, Mayor Pro Tempore, and Councilmembers, My name is Victor Sin. As a resident of Gilroy's neighboring community of San Jose and a volunteer leader with the ACLU Santa Clara Valley chapter, I am contacting you to ask you to stand on the right side of history and take action to prevent the erection of a new El Camino Real mission bell marker in downtown Gilroy. Simply put, the mission bell is a symbol of the enslavement and attempted genocide of Indigenous people in California, a symbol that glorifies the dehumanization, destruction, and erasure of the first peoples of our state. We should not romanticize or celebrate this brutal history. Erecting a new mission bell would be a stain on our entire region. I ask you to respect the calls of Indigenous communities and act to prevent this mission bell from being installed. Thank you for your kind attention. Respectfully, Victor Sin 1 Anne Bybee From: William Ware < Sent: Monday, January 10, 2022 8:13 AM To: City Clerk; Mayor Marie Blankley; Council Member Fred Tovar; Council Member Rebeca Armendariz; Council Member Dion Bracco; Council Member Zachary Hilton; Council Member Peter Leroe-Munoz; Council Member Carol Marques Subject: EXTERNAL - Please Do Not Install A Mission Bell Marker i CAUTION: This email originated from an External Source. Please use proper judgment and caution when opening attachments, clicking links, or responding to this email. Dear Gilroy City Council members, I am imploring you to stand on the right side of history and take action to prevent the erection of a new El Camino Real mission bell marker in downtown Gilroy. Simply put, the mission bell is a symbol of the enslavement and attempted genocide of Indigenous people in California, a symbol that glorifies the dehumanization, destruction, and erasure of the first peoples of our state. We should not romanticize or celebrate this brutal history. Erecting a new mission bell would be a stain on our entire region. I ask you to respect the calls of Indigenous communities and act to prevent this mission bell from being installed. This will make native people and other people of color, like myself, feel that municipalities care about them. Please do not erect a mission bell marker, Will William Ware (he/him) M.Sc. Fellow in Coastal Science & Policy (2020-22) - Please do not feel obligated to reply during non -work hours - Anne Bybee From: Brett Garrett < Sent: Monday, January 10, 2022 8:03 AM To: City Clerk Cc: Subject: EXTERNAL - Please cancel new mission bell ICAUTION: This email originated from an External Source. Please use proper judgment and caution when opening attachments, clicking links, or responding to this email. Dear City Clerk and members of City Council, I am disappointed to learn that the City of Gilroy has been making plans to install a new mission bell. Last year I attended a ceremony in Santa Cruz, recognizing that city's decision to remove all of its mission bells from city property. I listened to many Indigenous speakers describing the bells as painful reminders of the enslavement and torture that their ancestors endured under the California mission system. Please work with Indigenous leaders to learn more, and to educate others, regarding the tragic and shameful events of the past. Please cancel the proposed new bell. Sincerely, Brett Garrett Thai Pham From: Jennifer Astone < Sent: Monday, January 10, 2022 7:44 AM To: City Clerk; Mayor Marie Blankley; Council Member Fred Tovar Cc: amahmutsun2020@gmail.com Subject: EXTERNAL - Prevent the erection of a new El Camino Real mission bell in Gilroy ICAUTION: This email originated from an External Source. Please use proper judgment and caution when opening attachments, clicking links, or responding to this email. Dear City Clerk Thai Pham, Mayor Marie Blankly and Mayor Pro Tempore Fred Tovar, Hello my name is Jennifer Astone. As a resident of Gilroy's neighboring community of Aptos, I am contacting you to ask you to stand on the right side of history and take action to prevent the erection of a new El Camino Real mission bell marker in downtown Gilroy. Simply put, the mission bell is a symbol of the enslavement and attempted genocide of Indigenous people in California, a symbol that glorifies the dehumanization, destruction, and erasure of the first peoples of our state. We should not romanticize or celebrate this brutal history. Erecting a new mission bell would be a stain on our entire region. Please respect our Indigenous relatives and restore a dialogue towards reconciliation that can be healing for all. Our Indigenous communities have much to teach us and ways to guide us to be in better balance with our land, the animals and the ecosystem. I ask you to respect the calls of Indigenous communities and act to prevent this mission bell from being installed. Sincerely yours, Jennifer Astone Jennifer Astone +nhvw.iciaptos.com she/her/hers (Why Pronouns Matter) INTEGRATED y,. CAPITAL INVESTING Skin up for my newsletter here Living and working on the unceded territory of the Awaswas / Ohlone Peoples of Aptos, California, represented today by the Amah Mutsun Tribal Band 1 CITY OF GILROY I CITY CLERK'S OFFICE Thai Nam Pham, CMC, CPMC I City Clerk 7351 Rosanna Street I Gilroy, CA 95020-6197 Email: thai.phamPcityofgilroy.org Phone: (408) 846-0204 I www.cityofgilroy.org January 10, 2022 TO : Mayor Blankley City Councilmembers FROM: Thai Nam Pham, CMC, CPMC RE: Public Comment Agenda Item IX. 1 — Streamline Boards and Commissions Attached is email correspondence received in the City Clerk's Office regarding Agenda Item IX. 1 from the following individuals: • • Joanne Fierro Maria Aguilar cc: City Administrator City Attorney Anne Bybee From: Joanne Fierro Sent: Monday, January 10, 2022 3:22 PM To: City Clerk Subject: EXTERNAL - Reduction of Boards and Commissions CAUTION: This email originated from an External Source. Please use proper judgment and caution when opening attachments. clicking links. or responding to this email. Please read at 1/10/2022 meeting Mayor and council members I want to ask you to postpone any decision on eliminating any boards or commissions until the COVID restrictions are lifted and we can see if participation returns. By eliminating 5 now that will take away 20 or more opportunities for citizen participation in city government. Thank you Joanne Fierro 1 Anne Bybee From: Maria Aguilar < Sent: Monday, January 10, 2022 3:44 PM To: City Clerk Subject: EXTERNAL - On the agenda Jan 10th consolidation of committees CAUTION: This email originated from an External Source. Please use proper judgment and caution when opening attachments. clicking links. or responding to this email. At present I don't believe that this is the right time to consolidate committees the last two years have produced unprecedented challenges for many of us. I belong to various organizations and because of covid we have experienced a vast reduction of participants. Perhaps, this should be tabled for the end of this year. We need to give residents time to sign up for committees our city needs diversified input to represent the needs of our residents, it's their city and their voices should be given the opportunity to be heard. Thank you Maria Aguilar Seat from Yahoo Mail on Android 1 Thai. Pham _ From: Leah Helper < Sent: Saturday; January 8, 2022 8:33 AM To: City Clerk; Mayor Marie Blankley; Council Member Fred Toyer; Council Member Rebeca Armendariz; Council Member Zachary Hilton; Council Member Dion Bracco; Council Member Peter Leroe-Munoz; Council Member Carol Marques Subject: EXTERNAL - mission Bells are not appropriate for a modern California community CAUTION: This email originated from an External Source. Please use proper judgment and caution when opening attachments, clicking links, or responding to this email. Dear City Clerk, Mayor, and City Council, I have been a Gilroy resident for 31 years. I taught History including California History at Gavilan College for most of those years, and it is no longer acceptable for California cities like Gilroy to romanticize and cover over the brutal history of the mission system as it impacted California native peoples. Teaching about the genocide involving murder, rape, theft, and other violence is very important; celebrating that genocide by honoring and forefronting the symbol of the Spanish violators is morally and municipally wrong. We are on unceded native land. It was won by conquest. We are very lucky we have descendents of the Amah Mutsen and other groups allive and well to help us understand the extent of the losses, and the path to restoring at least some of the dignity, land, and sovereignty of native peoples and nations. It is imperative that we listen to these descendents, and respect their voices. Please do not introduce this symbol of hatred into Gilroy as if it were something to be honored. Leah Halper 1 Thai Pham From: sheila carrillo < Sent: Monday, January 10, 2022 6:51 AM To: Mayor Marie Blankley; Council Member Fred Tovar; Council Member Rebeca Armendariz; City Clerk; Council Member Dion Bracco; Council Member Zachary Hilton; Council Member Peter Leroe-Munoz; Council Member Carol Marques Subject: EXTERNAL - Mission Bells represent our SHAMEFUL HISTORY i CAUTION: This email originated from an External Source. Please use proper judgment and caution when opening attachments, clicking links, or responding to this email. To: Gilroy City Council, It is an affront to the Ahmah Mutsen tribal members and a blight on the City of Gilroy to even have a conversation about erecting a mission bell monument at a time when monuments to racism and genocide are being torn down all over the country. I attended the heart -wrenching precedent -setting bell removal ceremony in the City of Santa Cruz, and I urge you to dismiss the racist plan to install a bell signifying the heinous treatment of our indigenous population and instead hold educational forums about the true history of the mission period. Sheila Carrillo 1 Thai Pham From: Smith, Kimberly < Sent: Saturday, January 8, 2022 1:17 PM To: City Clerk Cc: Council Member Zachary Hilton Subject: EXTERNAL - Public Comments for Items NOT on the Agenda Jan. 10, 2022 ICAUTION: This email originated from an External Source. Please use proper judgment and caution when opening attachments, clicking links, or responding to this email. To Whom It May Concern: Please add the following letter into the public record. Thank you Dear Council Members, My name is Kimberly Smith, and I have been teaching English courses at Gavilan College for more than 20 years. write to encourage a no vote regarding the proposed installation of an El Camino Real Mission Bell in Gilroy. Such markers cause material harm to our communities. They disregard the pain and suffering the mission period caused for Amah Mutsun people, as well as create and maintain a distorted historical picture, one that particularly damages the lives of young scholars and writers, who need to be grounded in truth in order to realize their full potential as citizens of our world. The El Camino Real bells obscure the violence that came with Spanish settlement in California, a time that was then followed by the also wretchedly violent Mexican and Anglo periods. Erasing these important parts of California history dangerously lessens the knowledge required to best care for the land and our futures. For such historical distortions show up in how we envision our relationship to this place and how we choose to take care of it for ourselves and our children. Our choices will affect generations to come, but until we know our history, we cannot face our future with integrity, whole-heartedness, and well-being. The Amah Mutsun people continue to work toward sharing their history, so they may heal from it, and that we may also all be lifted from our faulty understandings of where we are, where we have been, and where we might yet arrive. As you surely know, last year Gavilan College celebrated its centennial. One hundred years of educating people is certainly an accomplishment. In that we can take pride. The Amah Mutsun people lived on this land for 11,000 years and their connection to it must also be realized and celebrated. The installation of a mission bell, however, would work against that goal and does so in a particularly dismissive and harmful manner. i Such a dismissal damages both recipient and perpetrator because it distorts the consciousness and hearts of all it touches, which is why in my role as educator I particularly beseech you to avoid this harm and work toward closeness and understanding with the Amah Mutsun. Honoring their request to reject an El Camino Real Mission Bell is an important step in forming that life - affirming connection. Best, Kimberly Smith English Instructor Gavilan College 2 Thai Pham From: Angelee Dion < Sent: Saturday, January 8, 2022 4:42 PM To: City Clerk Subject: EXTERNAL - No new mission bell in Gilroy ICAUTION: This email originated from an External Source. Please use proper judgment and caution when opening attachments, clicking links, or responding to this email. Dear Thai Pham, am writing to you today to express my sincere hope that you will rescind your decision to install a mission bell in the city of Gilroy. We are living in a time of reckoning for the true, brutal history of this nation and this state. In our region, this includes acknowledging the near -genocide of the native inhabitants by Spanish colonizers and Catholic missionaries. We can't undo the past, but we can stop sweeping the truth under the rug, which only perpetuates oppression and harm to us all. We can show respect to the descendants of these original inhabitants (represented by the Amah Mutsun Tribal Band) by acknowledging the truth now. By acknowledging that despite the loss of home, culture, languages, spirituality, family, and traditional knowledge, the AMTB is working hard to re- establish its ancient lifeways and teachings in order to fulfill their obligations to their creator to care for all living things. Please do not perpetuate the illusion of a peaceful and beneficent mission system in the face of what we know to have been true. Please do not continue to disrespect and ignore the Amah Mutsun Tribal Band and other Indigenous Californians who have persevered despite the tragic history wrought on them by the missionaries. Please envision a kinder and more appropriate symbol with which to mark the sesquicentennial of Gilroy. Thank you for your time and your consideration, Angelee Dion (a concerned Santa Cruz neighbor) 2 Thai Pham From: Peter Gelblum < Sent: Saturday, January 8, 2022 5:35 PM To: City Clerk; Mayor Marie Blankley; Council Member Fred Tovar; Council Member Rebeca Armendariz; Council Member Dion Bracco; Council Member Zachary Hilton; Council Member Peter Leroe-Munoz; Council Member Carol Marques Subject: EXTERNAL - Do NOT erect a new mission bell CAUTION: This email originated from an External Source. Please use proper judgment and caution when opening attachments, clicking links, or responding to this email. Dear Mayor, Mayor Pro Tem, Councilmembers, and City Clerk: As a resident of Gilroy's neighboring community of Boulder Creek in Santa Cruz County, I am contacting you to ask you to stand on the right side of history and take action to prevent the erection of a new El Camino Real mission bell marker in downtown Gilroy. Simply put, the mission bell is a symbol of the enslavement and attempted genocide of Indigenous people in California, a symbol that glorifies the dehumanization, destruction, and erasure of the first peoples of our state. We should not romanticize or celebrate this brutal history. Erecting a new mission bell would be a stain on our entire region. I ask you to respect the calls of Indigenous communities and act to prevent this mission bell from being installed. Thank you for your thoughtful consideration, Peter Gelblum Boulder Creek Thai Pham From: Kaleo Kaluhiwa < Sent: Sunday, January 9, 2022 9:41 AM To: City Clerk Subject: EXTERNAL - Public comments on items not on agenda for January 10 ICAUTION: This email originated from an External Source. Please use proper judgment and caution when opening attachments, clicking links, or responding to this email. Dear members of the Gilroy city council, I am writing to you today to express my sincere hope that you will rescind your decision to install a mission bell in the city of Gilroy. We are living in a time of reckoning for the true, brutal history of this nation and this state. In our region, this includes acknowledging the near -genocide of the native inhabitants by Spanish colonizers and Catholic missionaries. We can't undo the past, but we can stop sweeping the truth under the rug, which only perpetuates oppression and harm to us all. We can show respect to the descendants of these original inhabitants (represented by the Amah Mutsun Tribal Band) by acknowledging the truth now. By acknowledging that despite the loss of home, culture, languages, spirituality, family, and traditional knowledge, the AMTB is working hard to re-establish its ancient lifeways and teachings in order to fulfill their obligations to their creator to care for all living things. Please do not perpetuate the illusion of a peaceful and beneficent mission system in the face of what we know to have been true. Please do not continue to disrespect and ignore the Amah Mutsun Tribal Band and other Indigenous Californians who have persevered despite the tragic history wrought on them, in part, by the Mission system. Please envision a kinder and more appropriate symbol with which to mark the sesquicentennial of Gilroy. Thank you for your service to our community and your consideration, Kaleo Kaluhiwa 2 Thai Pham From: Emma Hartung < Sent: Sunday, January 9, 2022 2:36 PM To: City Clerk; Mayor Marie Blankley; Council Member Fred Tovar; Council Member Rebeca Armendariz; Council Member Dion Bracco; Council Member Zachary Hilton; Council Member Peter Leroe-Munoz; Council Member Carol Marques Subject: EXTERNAL - Please stand with Indigenous peoples & say no to El Camino Real bell ICAUTION: This email originated from an External Source. Please use proper judgment and caution when opening attachments, clicking links, or responding to this email. Dear Gilroy City Council, As a resident of Gilroy's neighboring community of San Jose, I am contacting you to ask you to stand on the right side of history and take action to prevent the erection of a new El Camino Real mission bell marker in downtown Gilroy. Simply put, the mission bell is a symbol of the enslavement and attempted genocide of Indigenous people in California, a symbol that glorifies the dehumanization, destruction, and erasure of the first peoples of our state. We should not romanticize or celebrate this brutal history. Erecting a new mission bell would be a stain on our entire region. I ask you to respect the calls of Indigenous communities and act to prevent this mission bell from being installed. Best, Emma Hartung San Jose, CA 1 Thai Pham From: Dan Daniels < Sent: Sunday, January 9, 2022 2:42 PM To: City Clerk; Mayor Marie Blankley; Council Member Fred Tovar; Council Member Rebeca Armendariz; Council Member Dion Bracco; Council Member Zachary Hilton; Council Member Peter Leroe-Munoz; Council Member Carol Marques Subject: EXTERNAL - Please Do Not Erect El Camino Real Mission Bell in Gilroy Vicinity ICAUTION: This email originated from an External Source. Please use proper judgment and caution when opening attachments, clicking links, or responding to this email. Greetings: I understand Gilroy is proposing to install its own El Camino Real mission bell. I am contacting you to ask you to stand on the right side of history and take action to prevent the erection of a new El Camino Real mission bell marker in downtown Gilroy. Simply put, the mission bell is a symbol of the enslavement and attempted genocide of Indigenous people in California, a symbol that glorifies the dehumanization, destruction, and erasure of the first peoples of our state. We should not romanticize or celebrate this brutal history. Erecting a new mission bell would be a stain on our entire region. I ask you to respect the calls of Indigenous communities and act to prevent this mission bell from being installed. Respectfully submitted, Mrs. Daniels I. Thai Pham From: Lin Colavin < Sent: Sunday, January 9, 2022 6:07 PM To: City Clerk; Mayor Marie Blankley; Council Member Fred Tovar; Council Member Rebeca Armendariz; Council Member Dion Bracco; Council Member Zachary Hilton; Council Member Peter Leroe-Munoz; Council Member Carol Marques Subject: EXTERNAL - Please Respect our Indigenous Neighbors. ICAUTION: This email originated from an External Source Please use proper judgment and caution when opening attachments, clicking links, or responding to this email. "Hello my name is Lin Florinda Colavin . As a resident of Gilroy's neighboring community of Santa Cruz. I am contacting you to ask you to take action to prevent the erection of a new El Camino Real mission bell marker in downtown Gilroy. Simply put, the mission bell is a symbol of the enslavement and attempted genocide of Indigenous people in California, a symbol that glorifies the dehumanization, destruction, and erasure of the first peoples of our state. We should not romanticize or celebrate this brutal history. Erecting a new mission bell would be a stain on our entire region. I ask you to respect the calls of Indigenous communities and act to prevent this mission bell from being installed. Thank you for your consideration. Lin Florinda Colavin Santa Cruz, California. 1 Thai Pham From: Steve Palmisano < Sent: Sunday, January 9, 2022 8:08 PM To: City Clerk Cc: Subject: EXTERNAL - No new mission bell in Gilroy ICAUTION: This email originated from an External Source. Please use proper judgment and caution when opening attachments, clicking links. or responding to this email. Dear members of the Gilroy City Council, am writing to you today to express my sincere hope that you will rescind your decision to install a mission bell in the city of Gilroy. We are living in a time of reckoning for the true, brutal history of this nation and this state. In our region, this includes acknowledging the near -genocide of the native inhabitants by Spanish colonizers and Catholic missionaries. We can't undo the past, but we can stop sweeping the truth under the rug, which only perpetuates oppression and harm to us all. We can show respect to the descendants of these original inhabitants (represented by the Amah Mutsun Tribal Band) by acknowledging the truth now. By acknowledging that despite the loss of home, culture, languages, spirituality, family, and traditional knowledge, the AMTB is working hard to re-establish its ancient lifeways and teachings in order to fulfill their obligations to their creator to care for all living things. Please do not perpetuate the illusion of a peaceful and beneficent mission system in the face of what we know to have been true. Please do not continue to disrespect and ignore the Amah Mutsun Tribal Band and other Indigenous Californians who have persevered despite the tragic history wrought on them by the missionaries. Please envision a kinder and more appropriate symbol with which to mark the sesquicentennial of Gilroy. Thank you for your time and your consideration, Steve Palmisano 2 Thai Pham From: Celia Babcock < Sent: Sunday, January 9, 2022 8:23 PM To: City Clerk Subject: EXTERNAL - mission bell CAUTION: This email originated from an External Source. Please use proper judgment and caution when opening attachments. clicking links. or responding to this email. Dear Thai Pham, Recently I traveled on Highway 101 and greatly enjoyed the beautiful hillsides with oak trees and cloudy skies with rainbows. I noticed many mission bells along and the way and each time I saw one it broke my heart. The mission bells remind me of the horrific treatment of the Indigenous people and how hard its been for the remaining people to recover from the trauma. How hard it is to for us the white people, the perpetrators to overcome our history. The fact that the mission bells are there to increase tourism takes away from any meaningful purpose. What if there was a marker to give thanks to the Indigenous people who lived here for thousands of years, caring for and protecting the land that is so beautiful? Maybe it would be a group of trees, Native plants and a notice that the Earth is here for all people plants animals to live together. Something nurturing and enlivening. Gilroy could to this! Thank you so much for your consideration. Celia Hursey Santa Cruz Thai Pham From: Benny Drescher < Sent: Sunday, January 9, 2022 10:27 PM To: City Clerk; Mayor Marie Blankley Subject: EXTERNAL - Prevent Mission Bell Violence ICAUTION: This email originated from an External Source. Please use proper judgment and caution when opening attachments, licking links, or responding to this email. Hello my name is Benny Drescher. As a resident of Gilroy's neighboring community Sants Cruz, I am contacting you to ask you to stand on the right side of history and take action to prevent the erection of a new El Camino Real mission bell marker in downtown Gilroy. Simply put, the mission bell is a symbol of the enslavement and attempted genocide of Indigenous people in California, a symbol that glorifies the dehumanization, destruction, and erasure of the first peoples of our state. We should not romanticize or celebrate this brutal history. Erecting a new mission bell would be a stain on our entire region. I ask you to respect the calls of Indigenous communities and act to prevent this mission bell from being installed. Thank you, Benny Drescher Thai Pham From: Peter Klotz -Chamberlin < Sent: Sunday, January 9, 2022 10:46 PM To: City Clerk; Council Member Fred Tovar Subject: EXTERNAL - Mission bell in Gilroy would be a mistake ICAUTION: This email originated from an External Source. Please use proper judgment and caution when opening attachments, clicking links, or responding to this email_ Dear Mayor Pro Tempore Tovar, I encourage you to vote against a proposal to install a mission bell marker in downtown Gilroy. The Indigenous people in our communities deserve public recognition that our cities and state and missions removed Indigenous people from the land, and forced them to give up their heritage. It would be a profound mistake to honor missions. These religious institutions played a direct role in removing Indigenous people from their lands, working them to death to build and maintain the missions, and beating and killing Indigenous people when they resisted. We need to uncover this history, listen to the Amah Mutsun and other Indigenous people from California, tell their stories, not continue symbols and histories that glorify institutions that sought to erase Indigenous people and Indigenous nations from society and the land. Mission bells symbolize the enslavement of Indigenous people in the California Mission system. The El Camino Real bell markers were created in the early 1900s to promote tourism and to celebrate a distorted version of history — one that glorifies and romanticizes the brutal mission era that sought to erase Indigenous people altogether. • Over 75% of children born into the mission system at Santa Cruz died before the age of 5. • Indigenous people were worked to death building and maintaining the 21 missions. • If they resisted, they were beaten, tortured —or killed. • The ringing of the mission bells was used to call Indigenous slaves back to the missions from a day's work in the fields, a reminder that they were subjugated to the priests and the missions. • Between 1769 and 1834, approximately 150,000 California Indians died as a direct result of the mission system. Also, it is a violation of the separation of church and state if the city were to honor one religion's history. Our residents come from many histories. Even while Indigenous people in Gilroy compose a small minority of residents, I hope the majority of residents and council members will listen and honor their calls to cease honoring symbols of oppression against Indigenous people. Thank you, Peter Klotz -Chamberlin 1 Thai Pham From: sheila carrillo < Sent: Monday, January 10, 2022 6:51 AM To: Mayor Marie Blankley; Council Member Fred Tovar; Council Member Rebeca Armendariz; City Clerk; Council Member Dion Bracco; Council Member Zachary Hilton; Council Member Peter Leroe-Munoz; Council Member Carol Marques Subject: EXTERNAL - Mission Bells represent our SHAMEFUL HISTORY ICAUTION: This email originated from an External Source. Please use proper judgment and caution when opening attachments, clicking links, or responding to this email. To: Gilroy City Council, It is an affront to the Ahmah Mutsen tribal members and a blight on the City of Gilroy to even have a conversation about erecting a mission bell monument at a time when monuments to racism and genocide are being torn down all over the country. I attended the heart -wrenching precedent -setting bell removal ceremony in the City of Santa Cruz, and I urge you to dismiss the racist plan to install a bell signifying the heinous treatment of our indigenous population and instead hold educational forums about the true history of the mission period. Sheila Carrillo 1 Thai Pham From: Gregory Bondi < Sent: Monday, January 10, 2022 7:34 AM To: City Clerk Cc: amahmutsun2020@gmail.com Subject: EXTERNAL - Public Comments on Items NOT on Agenda for January 10, 2022 Meeting ICAUTION: This email originated from an External Source. Please use proper judgment and caution when opening attachments, clicking links, or responding to this email. Dear City Clerk of Gilroy Hello my name is Gregory Bondi. As a resident of Gilroy's neighboring community of Santa Cruz, I am contacting you to ask you to stand on the right side of history and take action to prevent the erection of a new El Camino Real mission bell marker in downtown Gilroy. Simply put, the mission bell is a symbol of the enslavement and attempted genocide of Indigenous people in California, a symbol that glorifies the dehumanization, destruction, and erasure of the first peoples of our state. We should not romanticize or celebrate this brutal history. Erecting a new mission bell would be a stain on our entire region. ask you to respect the calls of Indigenous communities and act to prevent this mission bell from being installed. Sincerely, Gregory Bondi NAME: CITY COUNCIL MEETING SPEAKER'S CARD Individual public comment is limited to 3 minutes per agenda item PLEASE PRINT NEATLY (tCNJe used to call you to the podium) ~3~t-~·\ (Jc\ \ \ V t i '--; .--. ' . ) ~ Email/Mailing Address: \){:__.=f\'\~f_; :')-Q__ t\,,,-\ (_) , L'\ S7: (Optional, to be used if request is made that staff respond back to you) --z 0 AGENDA ITEM(S): NUMBER_~---------------TITLE -----------------NUMBER TITLE _________________ _ Please complete this card and present it to the City Clerk prior to the agenda item discussion. Completion of this speaker's card is voluntary. All persons may attend th.is meeting and speak regardless ifa card is completed or not. When your name is called, please approach the podium, and after receiving recognition from the presiding officer, speak directly into the microphone .. CITY COUNCIL MEETING SPEAKER'S CARD Individual public comment is limited to 3 minutes per agenda item PLEASE PRINT NEATLY (to be used to call you to the podium) NAME: 0_~ C10 9vL)--I I c_ l Email/Mailing Address: Vt/ I;/ / 2 J §1 ?~L •· c:_· vVV\. (Optional, to be used ifrequest is made that staff respond back to you) I i 1 /0 / / ) ~/ AGENDA ITEM(S): NUMBER ·-r . ) --~~--------------TITLE -------------------NUMBER -----------------TITLE ------------------Please complete this card and present it to the City Clerk prior to the agenda item discussion. Completion of this speaker's card is voluntary. All persons may attend this meeting and speak regardless if a card is completed or not. When your name is called, please approach the podium, and after receiving recognition from the 1w~siding officer, speak directly into the microphone. CITY COUNCIL MEETING SPEAKER'S CARD Individual public comment is limited to 3 minutes per agenda item PLEASE PRINT NEATLY (to be used to call you to the podium) ' /;, / ; NAME: //·. · , ,, ') .,.,---i V ''\ ~ ' ,-\ !:~\ -.-. ~ .. ii 7 Email/Mailing Address: 1.'::t _.!., -·• .· -;·-'; ·· ,:_, , ,:_ (' ( . : · ,·1 .,-_ ~-(Optional, to be used ifrequest is made that staff respond back to you) ~) 8 ('> i . AGENDAITEM(S): NUMBER .·LI,/ I..'.,, ~~~-----------------TITLE ---------------------NUMBER -----------------TITLE ------------------Please complete this card and present it to the City Clerk prior to the agenda item discussion. Completion of this speaker's card is voluntary. All persons may attend this meeting and speak regardless if a card is completed or not When your name is called, please approach the podium, and after receiving recognition from the presiding officer, speak directly into the microphone. CITY COUNCIL MEETING SPEAKER'S CARD Individual public comment is limited to 3 minutes per agenda item PLEASE PRINT NEATLY (to be used to call you to the podium) NAME. .-.. r . -·\ °' .. • ,. 1. i ,l ~i !... · ~ t \ t· ._;.. -~ -_ ~ \· 1 "t . · Email/Mailing Address: 1 fJ; , ,. 1 , , · , \ •• , · \ \. •. : < : .· (Optional, to be used if request is made that staff respond back to you) ~. -~ AGENDA ITEM(S): NUMBER lf\L\ , \: ',1 \ i..__ '... , •' · ·~: ~~-•· \ i TITLE -. ..J.....J .' ! (tl1 ~I -----~--------------NUMBER TITLE -----------------Please complete this card and present it to the City Clerk prior to the agenda item discussion. Completion of this speaker's card is voluntary. All persons may attend this meeting and speak regardless if a card is completed or not. When your name is called, please approach the podium, and after receiving recognition from the presiding officer, speak directly into the microphone. 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When your name is called, please approach the podium, and after receiving recognition from the presiding officer, speak directly into the microphone. q ., . /1'· .. ;./,./ ,·, , .. / ' I 1-·: , . ( ~ \ /-/ .( i.. r' ; / ,'. 1 ... j ' i '~. ) / , I ) . ' / l' (.__ / ) ,.. -:'-/'-'-'· -' ! . . ·'\·'--CITY COUNCIL MEETING SPEAKER'S CARD ,, l c I I ( Individual public comment is limited to 3 minutes per agenda item (.. ,; ) . . 1 I ( II I PLEASE PRINT NEATLY (to be used to call you to the podium) NAME:~ t .,, l-1.·t-i./:i. •• , , -1,... ·.11' Email/Mailing Address: \ ;,1 A ; ,~1:;'..,'L), _; --,(_ i, j ,:< ... t l'! ( 6r~ ,--:A,.,.,01 ,!.1/(oti., , G..:':'V'i (Optional, to be used if request is made that staff respond lSack to you) AGENDA ITEM(S): NUMBER r; --------------------[' . -;-., . TITLE r't.? I l J... 0 c;t,,:) r 0-f 1 ,, /: NUMBER --------------------TITLE ------------------Please complete this card and present it to the City Clerk prior to the agenda item discussion. 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Completion of this speaker's card is voluntary_ All persons may attend this meeting and speak regardless if a card is comoleted or not When your name is called, please approach the podium, and after receiving recognition from the presiding officer, speak directly into the microphone. CITY COUNCIL MEETING SPEAKER'S CARD Individual public comment is limited to 3 minutes per agenda item PLEASE PRINT NEATLY (to be used to call you to the podium) NAME:"--, -,·. ~-/ ··"v i • I ' ,,. I ~ ---------------------------Email/Mailing Address: ______________________ _ (Optional, to be used if request is made that staff respond back to you) AGENDA ITEM(S): NUMBER -----------------\ TITLE j _ i 1 i i '·~ "-... ·-. l) '/) r 1 \:t I NUMBER -----------------TITLE -----------------Please complete this card and present it to the City Clerk prior to the agenda item discussion. Completion of this speaker's card is voluntary. All persons may attend this meeting and speak regardless if a card is completed or not. When your name is called, please approach the podium, and after receiving recognition from the presiding officer, speak directly into the microphone. 6-4n T NEATLY (to be used to call you to the podium) PLEASE P AGENDA ITEM(S): o i o 0 o o-d 0 U ;? 0 .., o El 0 U .DA O O U bQ ct ••-•1 .- •bil , el En U 0, pa44 d s+ d ,0 C A .. fi -. p ¢' c O S i.b H •a a • .., ''d U y O CD W U 0 H U cz C 41 "Ed' O 0 H H o ct cci 4-1 a) P. • 0) 0) ►� al i 4-4 } "c U (I)U O _-( .0-dd ct a)c� U c o Q. a) a0i ao PLEASE PRINT YOUR NAME CLEARLY (to be used to call you to the podium) 0 E Z a) O CL < E Z W AGENDA ITEM(S): NUMBER co -E - c1 co a) co O 6 U L L N Q L Icii O 'N Q ,U N N '5 (6 O E 1 o E m > "C O U Y -a Q. N L a N La ca co E 0 4) U c = 0 Q °° Q s 0a 0�+ a CO U �� a)c a) = a o -6 En Iri.L N a)N -o a a ° C.) a) �ea E Y CO E O v Q (0 "- N N C c `t O 2 o . - O> C .co c O cy Q° - E a) o N U v E a) a) 0o - co cDm E. U o.. .N PLEASE PRINT NEATLY (to be used to call you to the podium) L z 5 o o - c/a cn b U V mr0.1 CI) O v y P� 0 O 4-4 O • • 0 U bA . • • N O U Nam+ ct ct• o •- � • U 4 - a) 0C3 O CSai 4:1U cn O a) • bA T U .-4 a) czt x-. O N In 1769_n Spain begs � •cupying what is now'California. Franciscan padres supervised the constructionof 21 missions to convert the California Indians to Raman Catholicism and teach them European agriculture and trade. The military established four presidios (forts) to protect the new colonies. _7 Travel between thesettlements was difficult due to the great distances and rough terrain. ,Establishing a connecting road system was vital to the Spanish success., The Native Californians had developed . routes to their hunting, gathering and trade ;areas: The roads and routes varied with the seasons. The Spanish followed and expanded these existing routes to link the missions, presidios, and pueblositowns). Sonie of these routes became the Royal Road, today's El Camino Real. City of Gilroy STAFF REPORT Agenda Item Title: December 6, 2021 City Council Regular Meeting Minutes Meeting Date: January 10, 2022 From: Jimmy Forbis, City Administrator Department: City Clerk Submitted By: LeeAnn McPhillips Prepared By: LeeAnn McPhillips Strategic Plan Goals ☐ Develop a Financially Resilient Organization ☐ Ensure Neighborhood Equity from City Services ☐ Promote Economic Development Activities ☐ Promote Safe, Affordable Housing for All ☐ Maintain and Improve City Infrastructure RECOMMENDATION Attachments: 1. Draft Minutes December 6 2021 6.1 Packet Pg. 8 1 City Council Meeting Minutes 12/6/2021 City of Gilroy City Council Meeting Minutes December 6, 2021 I. OPENING A. Call to Order The meeting was called to order at 6:00 PM by Mayor Marie Blankley. 1. Pledge of Allegiance Council Member Leroe-Munoz led the Pledge of Allegiance. 2. Invocation None. 3. City Clerk's Report on Posting the Agenda Interim City Clerk McPhillips reported that the agenda was posted on Wednesday, December 1, 2021 at 4:52 p.m. Attendee Name Title Status Arrived Marie Blankley Mayor Present 5:20 PM Rebeca Armendariz Council Member Absent Dion Bracco Council Member Present 5:10 PM Zach Hilton Council Member Present 5:11 PM Peter Leroe-Muñoz Council Member Present 5:13 PM Carol Marques Council Member Present 5:11 PM Fred Tovar Council Member Present 5:13 PM B. Orders of the Day C. Employee Introductions City Administrator Forbis introduced the following new employees: Thai Pham, City Clerk Crystal Zamora, Program Administrator II. CEREMONIAL ITEMS A. Proclamations, Awards, and Presentations None. III. PRESENTATIONS TO THE COUNCIL Mayor Blankley opened the public comment period. The following individuals provided public comments: Kristin Brown Paul Brown Beatrice Macias Petra Macias Ron Kirkish 6.1.a Packet Pg. 9 Attachment: Draft Minutes December 6 2021 (3611 : December 6, 2021 City Council Regular Meeting Minutes) 2 City Council Meeting Minutes 12/6/2021 Dori Prado There being no further public comment, Mayor Blankley closed public comment. City Attorney Faber made a brief statement at the close of public comment: The Gilroy City Council does not have control over whether a Council Member steps down or stays on Council. IV. REPORTS OF COUNCIL MEMBERS Council Member Bracco - no report. Council Member Hilton – reported on Visit Gilroy and the review of the Strategic Marketing Report for quarter ending September 30, 2021; also reported on Silicon Valley Clean Energy and a pilot program to provide fifty portable electric batteries to residents dependent upon medical devices which go down in a power outage. Council Member Leroe-Munoz - no report. Council Member Marques – reported that there was a very nice tree lighting and parade this past Saturday evening in the downtown; also recommended the Holiday Lights show at Gilroy Gardens which is available through New Year’s. Vice Mayor Tovar - no report. Mayor Blankley – no report; will include some comments related to Cities Association when Item IX C. is discussed. V. FUTURE COUNCIL INITIATED AGENDA ITEMS Council Member Tovar - requested discussion of a second Downtown Paseo; City Council provided support to place on future agenda. Council Member Marques - requested report on homeless encampments and meth use. Jimmy Forbis - fielded comments and question on this item and offered to give a verbal report at next meeting focused on the problems around Gilroy Prep School; Council Member Tovar asked that report cover the full city rather than just one specific area. City Council provided support to place on a future agenda. VI. CONSENT CALENDAR (ROLL CALL VOTE) Mayor Blankley opened the public comment. No public comments regarding consent calendar items. Mayor Blankley closed public comment. 6.1.a Packet Pg. 10 Attachment: Draft Minutes December 6 2021 (3611 : December 6, 2021 City Council Regular Meeting Minutes) 3 City Council Meeting Minutes 12/6/2021 RESULT: APPROVE [UNANIMOUS] MOVER: Peter Leroe-Muñoz, Council Member SECONDER: Fred Tovar, Council Member AYES: Blankley, Bracco, Hilton, Leroe-Muñoz, Marques, Tovar ABSENT: Rebeca Armendariz A. Approval of a Notice of Acceptance of Completion for the FY21 Citywide Pavement Maintenance Project No. 21-PW-260 and Approval of a Final Contract with Teichert & Son, Inc in the Amount of $2,965,305.92 A motion was made to approve the notice. B. Acceptance of an Edward Byrne Memorial Justice Assistance Grant for $16,732 and Adoption of a Resolution of the City Council of the City of Gilroy Approving a Fiscal Year 2021-2022 Budget Amendment A motion was made to accept the grant and adopt the resolution. Enactment No.: Resolution No. 2021-65 C. Second Reading and Adoption of an Ordinance Amending Chapter 27 of the Gilroy City Code, Article VI "Water Supply Shortage Regulations" Authorizing the Public Works Director to Make Changes to the City of Gilroy Watering Schedule as Needed Enactment No.: Ordinance No. 2021-05 D. Second Reading and Adoption of An Ordinance of the City Council of the City of Gilroy Amending Gilroy City Code Chapter 12 to Add a New Article VI, Entitled Mandatory Organic Waste Disposal Reduction, to Chapter 12 of the Gilroy City Code to Implement the Requirements of SB 1383 Enactment No.: Ordinance No. 2021-06 E. 10-18-21 City Council Meeting Minutes A motion was made to approve the minutes. F. 10-25-21 City Council Study Session Minutes A motion was made to approve the minutes. G. 11-1-21 City Council Meeting Minutes A motion was made to approve the minutes. H. 11-15-21 City Council Meeting Minutes A motion was made to approve the minutes. VII. BIDS AND PROPOSALS None VIII. PUBLIC HEARINGS A. Project Garlic Industrial Subdivision (Panattoni Development) Mitigated Negative Declaration and Request for Industrial Planned Development Approval for Warehouse, Distribution Facility and Commercial Use of Property at the Northeast Corner of Pacheco Pass Highway and Camino Arroyo (File No.s Z 20-07, AS 20-21, TM 20-07, CUP 20-02 and GPA 20-01) Item withdrawn by Applicant. No continuance. 6.1.a Packet Pg. 11 Attachment: Draft Minutes December 6 2021 (3611 : December 6, 2021 City Council Regular Meeting Minutes) 4 City Council Meeting Minutes 12/6/2021 Mayor Blankley opened Public Comment. Michelle Nelson commented on this project. Mayor Blankley closed Public Comment. Possible Action: Staff and the Planning Commission analyzed the proposed project and recommend the City Council: a) Adopt, by resolution, the Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program prepared for the project with findings required by the California Environmental Quality Act (CEQA); b) Adopt a resolution to approve General Plan Amendment GPA 20-01 amending the Mobility Element Figures M-1 and M2 for the project; c) Motion to read the ordinance by title only and waive further reading; d) Introduce an ordinance to approve Z 20-07 Commercial/Industrial Planned Unit Development Zoning Amendment; e) Adopt a resolution to approve Architectural and Site Review AS 20-21 for the site planned unit development plan and buildings, with findings and conditions; and f) Adopt a resolution to approve Tentative Parcel Map TM 20 -07, with findings and conditions. The applicant requests a second continuance to January 2022. Staff recommends continuance to January 24, 2022. IX. UNFINISHED BUSINESS There were no Unfinished Business items listed. X. INTRODUCTION OF NEW BUSINESS A. Gilroy Zoning Code Update Progress Report Staff report provided by Senior Planner Kraig Tambornini. Council Members asked questions of staff (Bracco, Hilton). Mayor Blankley opened the public comment period. No public comment. Mayor Blankley closed public comment. 6.1.a Packet Pg. 12 Attachment: Draft Minutes December 6 2021 (3611 : December 6, 2021 City Council Regular Meeting Minutes) 5 City Council Meeting Minutes 12/6/2021 Possible Action: Accept report. Council provided unanimous support to receive the report with no objections. B. Discussion on Renter Protection Policies Staff report provided by Senior Management Analyst Bryce Atkins. Item returning as item was on legislative agenda of Council with budget. Council asked questions of staff (Blankley, Leroe-Munoz, Bracco). Mayor Blankley opened the public comment period. No public comment. Mayor closed public comment. A motion was made by Council Member Leroe-Munoz, seconded by Council Member Bracco, to take no action on the item. The motion was carried by the following vote: RESULT: APPROVE [UNANIMOUS] MOVER: Peter Leroe-Muñoz, Council Member SECONDER: Dion Bracco, Council Member AYES: Blankley, Bracco, Hilton, Leroe-Muñoz, Marques, Tovar ABSENT: Rebeca Armendariz C. A Resolution of the City Council of the City of Gilroy Supporting the "Brand-Huang-Mendoza Tripartisan Land Use Initiative" to Amend Article XI of the Constitution of the State of California to Make Zoning and Land Use Community Affairs, and Not of State Interest Staff report provided by Senior Management Analyst Bryce Atkins. No questions of staff. Mayor Blankley spoke about SB 9 and discussion ensued between the Council Members. Mayor Blankley opened the public comment period. Ron Kirkish commented on this item. There being no further public comment, Mayor closed public commen t. 6.1.a Packet Pg. 13 Attachment: Draft Minutes December 6 2021 (3611 : December 6, 2021 City Council Regular Meeting Minutes) 6 City Council Meeting Minutes 12/6/2021 Possible Action: Consider the adoption of a resolution supporting the initiative to amend the California Constitution to make zoning and land use a local affair. RESULT: APPROVE [5 TO 1] MOVER: Dion Bracco, Council Member SECONDER: Fred Tovar, Council Member AYES: Marie Blankley, Dion Bracco, Peter Leroe-Munoz, Carol Marques, Fred Tovar NAYS: Zach Hilton ABSENT: Rebeca Armendariz D. Community Development Block Grant (CDBG) Overview Community Development Director Karen Garner provided staff report. Council questions of staff (Blankley). Mayor Blankley opened the public comment period. No public comment was given. Mayor closed public comment. Possible Action: Receive report and provide direction to move to two-year cycle. RESULT: APPROVE [UNANIMOUS] MOVER: Carol Marques, Council Member SECONDER: Fred Tovar, Council Member AYES: Blankley, Bracco, Hilton, Leroe-Muñoz, Marques, Tovar ABSENT: Rebeca Armendariz E. Status Report Regarding City Cyber Security Assessment, Cyber Resilience Program, and Implementation Plan Staff report provided by IT Manager Scott Golden. Council questions and comments of staff (Leroe-Munoz, Tovar, Marques). Mayor Blankley opened the public comment period. No public comment was given. Mayor closed public comment. 6.1.a Packet Pg. 14 Attachment: Draft Minutes December 6 2021 (3611 : December 6, 2021 City Council Regular Meeting Minutes) 7 City Council Meeting Minutes 12/6/2021 Possible Action: Receive report. RESULT: APPROVE [5 TO 1] MOVER: Peter Leroe-Muñoz, Council Member SECONDER: Carol Marques, Council Member AYES: Blankley, Bracco, Hilton, Leroe-Muñoz, Marques NAYS: Fred Tovar ABSENT: Rebeca Armendariz XI. CITY ADMINISTRATOR'S REPORTS Council Chambers Modernization Project - City Administrator Forbis provided a brief update on project. A. Gilroy Crime Update City Administrator Forbis provided an introduction of this item. Police Chief Pedro Espinoza provided a Gilroy Crime Update report. Council asked questions of staff (Leroe-Munoz, Tovar, Blankley, Bracco). Mayor Blankley opened the public comment period. Public Comments: Cheryl Parks and Ron Kirkish commented on this item. There being no further public comment, Mayor closed public comment. B. Sharks Ice Update City Administrator Forbis provided a status update on the Sharks Ice project. City still discussing terms with the Sharks. City hopes to return to Council in January with a further update. XII. CITY ATTORNEY'S REPORTS There was no City Attorney’s Report. XIII. CLOSED SESSION City Attorney announced the closed session. No public comment. Adjourned to closed session at 7:38 p.m. A motion was made by Council Member Lero e-Munoz, seconded by Council Member Tovar, to stay in Closed Session. The motion was carried by the following vote: 6.1.a Packet Pg. 15 Attachment: Draft Minutes December 6 2021 (3611 : December 6, 2021 City Council Regular Meeting Minutes) 8 City Council Meeting Minutes 12/6/2021 RESULT: APPROVE [UNANIMOUS] MOVER: Peter Leroe-Munoz, Council Member SECONDER: Fred Tovar, Council Member AYES: Blankley, Bracco, Hilton, Leroe-Muñoz, Marques, Tovar ABSENT: Rebeca Armendariz Reportable Action: None A. PUBLIC EMPLOYEE PERFORMANCE EVALUATION Pursuant to Government Code Section 54957 and Gilroy City Code Section 17A.11 (2); Employee Name/Title: Jimmy Forbis, City Administrator 1. Public Comment on Closed Session Items 2. Adjourn to Closed Session ADJOURN TO OPEN SESSION Report of any action taken in Closed Session and vote or abstention of each Councilmember if required by Government Code Section 54957.1 and Gilroy Code Section 17A.13 (a); Public Report of the vote to continue in closed session if required under Gilroy Code Section 17A.11 (5) ADJOURNMENT Mayor Blankley adjourned the meeting at 8:42 p.m. MEETING DATES FUTURE MEETING DATES DECEMBER 2021 13* Special Meeting - 6:00 p.m. JANUARY 2022 10* Regular Meeting - 6:00 p.m. 24* Regular Meeting - 6:00 p.m. FEBRUARY 2022 7* Regular Meeting - 6:00 p.m. 28* Regular Meeting - 6:00 p.m. MARCH 2022 7* Regular Meeting - 6:00 p.m. 21* Regular Meeting - 6:00 p.m. * meeting is web streamed and televised /s/ LeeAnn McPhillips Administrative Services/HR Director/Risk Manager 6.1.a Packet Pg. 16 Attachment: Draft Minutes December 6 2021 (3611 : December 6, 2021 City Council Regular Meeting Minutes) City of Gilroy STAFF REPORT Agenda Item Title: Action Minutes of the December 13, 2021 City Council Special Meeting. Meeting Date: January 10, 2022 From: Jimmy Forbis, City Administrator Department: City Clerk Submitted By: Thai Pham Prepared By: Thai Pham Strategic Plan Goals ☐ Develop a Financially Resilient Organization ☐ Ensure Neighborhood Equity from City Services ☐ Promote Economic Development Activities ☐ Promote Safe, Affordable Housing for All ☐ Maintain and Improve City Infrastructure RECOMMENDATION Staff recommends to approve the Action Minutes. Attachments: 1. Action Minutes 6.2 Packet Pg. 17 DRAFT1 City of Gilroy City Council Special Meeting Minutes December 13, 2021 I.OPENING A.Call to Order The meeting was called to order at 6:00 P.M. by Mayor Blankley. 1.Pledge of Allegiance Council Member Armendáriz led the pledge of allegiance. 2.Invocation None. 3.City Clerk's Report on Posting the Agenda City Clerk Pham declared the posting of the agenda. Attendee Name Title Status Arrived Marie Blankley Mayor Present Rebeca Armendáriz Council Member Present Dion Bracco Council Member Present Zach Hilton Council Member Absent Peter Leroe-Muñoz Council Member Present Carol Marques Council Member Present Fred Tovar Council Member Present B.Orders of the Day There were none. C.Employee Introductions City Administrator Jimmy Forbis introduced Andrea Yanez, new Permit Technician, Lisa Hernandez, new Office Assistant, and Cindy McCormick, promoted to Customer Service Manager from Senior Planner. II.CEREMONIAL ITEMS A.Proclamations, Awards and Presentations There were none. 6.2.a Packet Pg. 18 Attachment: Action Minutes (3603 : 12/13/2021 City Council Special Meeting Action Minutes) DRAFT City Council Special Meeting Minutes December 10, 2021 Page 2 of 6 III. PRESENTATIONS TO THE COUNCIL Mayor Blankley opened the public comment period. The following speaker spoke on items not on the agenda: Teresa Perez requested an update on the timeline of the installation and implementation of the equipment that will allow hybrid meetings for members of the public to participate via online. She also requested an update on the South County Youth Task Force. Being no further public comment, Mayor Blankley closed public comment. 1. Annual Presentation from the Personnel Commission Personnel Commissioner Catherine Cummins provided a presentation about the board's annual accomplishments. Council accepted the report. IV. REPORTS OF COUNCIL MEMBERS Council Member Bracco had no report. Council Member Armendáriz reported on the Silicon Valley Clean Energy Authority noting the board is working to reach its gas reduction goals and replace power from Diablo Canyon set to close by 2026. She also noted that she attended the Historic Heritage Commission and that they are continuing to work on the work plan. She notified about two upcoming events: a health fair at the Neon Exchange on January 14th, and a Fentanyl Town Hall on January 18th at Old City Hall at 6 P.M. Council Member Marques reported on the Downtown Business Association noting that they were able to provide power to some of their buildings and they should be online in June at the latest. She also reported that new street benches from Jeff Orth were installed on the west side of Monterey Road between 5th and 6th Street. Council Member Tovar had no report. Council Member Leroe-Muñoz had no report. Mayor Blankley reported that the Gilroy Sister Cities Association is still engaging with Takko Machi, Japan, via Zoom. She also reported that Cities Association of Santa Clara had a one-on-one meeting with the upcoming chairperson for 2022, San Jose Vice Mayor Charles "Chappie" Jones, who shared his three priorities are local control, elected officials use of social media, and matters of racial and social justice. V. FUTURE COUNCIL INITIATED AGENDA ITEMS None. 6.2.a Packet Pg. 19 Attachment: Action Minutes (3603 : 12/13/2021 City Council Special Meeting Action Minutes) DRAFTCity Council Special Meeting Minutes December 10, 2021 Page 3 of 6 VI.CONSENT CALENDAR (ROLL CALL VOTE) Mayor Blankley opened the public comment. No public comment was provided. Mayor Blankley closed public comment. A motion was made by Council Member Bracco, seconded by Council Member Leroe-Muñoz, to approve the consent calendar. The motion was carried by the following vote: RESULT: APPROVE [5 TO 1] MOVER: Dion Bracco, Council Member SECONDER: Peter Leroe-Muñoz, Council Member AYES: Blankley, Bracco, Leroe-Muñoz, Marques, Tovar NAYS: Rebeca Armendáriz ABSENT: Zach Hilton 1.Appointment of Peter Leroe-Muñoz to Position of Mayor Pro Tempore for 2022 A motion was made to approve the appointment. 2. Mayoral Appointments of Council Members to Serve in Regional Representative Seats and Seats on Local Boards and Committees A motion was made to approve the appointments. VII.BIDS AND PROPOSALS There were no Bid and Proposals listed. VIII.PUBLIC HEARINGS There were no Public Hearings listed. IX.UNFINISHED BUSINESS 1.Streamline Consolidation of the City's Boards and Commissions Senior Management Analyst Bryce Atkins gave the staff presentation and responded to Council Members questions. Mayor Blankley opened the public comment period. Gary Walton commented that consolidating the boards and commissions may not be the best path forward and requested Council Members talk to committee members in ways to improve the recruitment and retention process. Patricia Bentson recommended that Council not to follow staff's recommendation for Parks and Recreation Committee to meet quarterly. She also stated that the committee can also take on the development review and thereby inherit all of the duties of the Bicycle Pedestrian Commission. 6.2.a Packet Pg. 20 Attachment: Action Minutes (3603 : 12/13/2021 City Council Special Meeting Action Minutes) DRAFT City Council Special Meeting Minutes December 10, 2021 Page 4 of 6 Carolyn Schimandle hoped that items currently being worked on by the Bicycle Pedestrian Commission will continue to be worked on after the consolidation process. Vanessa Ashford agreed with Mr. Walton that city staff should receive feedback from current and past committee members. Mayor Blankley closed Public Comment. Possible Action: Council: a) Adopt A Resolution of the City Council of the City of Gilroy Consolidating the Housing and Neighborhood Revitalization Committee, Historic Heritage Committee, and the Street Naming Committee, and Placing Their Associated Board Functions Under the Authority of the Planning Commission. b) Motion to read the ordinance by title only and waive further reading. c) Introduce an Ordinance of the City Council of the City of Gilroy Consolidating the Bicycle Pedestrian Commission and Placing Their Associated Board Functions for Infrastructure Planning and Development Review Under the Authority of the Planning Commission, and the Associated Board Functions for Education and Encouragement Activities Under the Authority of the Parks and Recreation Commission. d) Direct all boards and commissions, except the Planning Commission, to meet on a quarterly basis, not to exceed quarterly meetings without compelling reasons as determined by the respective board chair and appointed staff liaison. A motion was made by Mayor Blankley, seconded by Council Member Bracco, to approve Actions A, B, and C. The motion failed by the following vote: RESULT: FAILED [3 TO 3] MOVER: Marie Blankley, Mayor SECONDER: Dion Bracco, Council Member AYES: Marie Blankley, Dion Bracco, Peter Leroe-Muñoz NAYS: Rebeca Armendáriz, Carol Marques, Fred Tovar ABSENT: Zach Hilton A motion was made by Council Member Tovar, seconded by Mayor Blankley, to continue this item in January with staff providing information on committees’ attendance, resignation, and the frequency of the meetings from 2021. The motion was carried by the following vote: 6.2.a Packet Pg. 21 Attachment: Action Minutes (3603 : 12/13/2021 City Council Special Meeting Action Minutes) DRAFT City Council Special Meeting Minutes December 10, 2021 Page 5 of 6 RESULT: CONTINUE THE ITEM [5 TO 1] MOVER: Fred Tovar, Council Member SECONDER: Marie Blankley, Mayor AYES: Blankley, Bracco, Leroe-Muñoz, Marques, Tovar NAYS: Rebeca Armendáriz ABSENT: Zach Hilton X. INTRODUCTION OF NEW BUSINESS 1. Update by City Attorney on Recent Housing Legislation (Including SB9) Presentation: Andrew L. Faber, Esq., City Attorney City Attorney Faber gave the staff presentation and responded to Council Member questions. 2. Gilroy Senate Bill 9 Objective Design Standards Policy Senior Planner Cindy McCormick gave the staff presentation and responded to Council Members questions. Mayor Blankley opened Public Comment. Gary Walton encouraged Council to raise the standards on the Objective Design Standards to improve neighborhoods. Mayor Blankley closed Public Comment. Possible Action: Staff recommends that the City Council: a) Adopt a Resolution of the City Council of the City of Gilroy adopting the Gilroy SB9 2-Unit Residential Objective Design Standards Policy; and RESULT: APPROVE [UNANIMOUS] MOVER: Rebeca Armendáriz, Council Member SECONDER: Dion Bracco, Council Member AYES: Blankley, Armendáriz, Bracco, Leroe-Muñoz, Marques, Tovar ABSENT: Zach Hilton Enactment No.: Resolution No. 2021-67 b) Adopt a Resolution of the City Council of the City of Gilroy adopting the Gilroy SB9 Residential Lot Split Objective Design Standards Policy RESULT: APPROVE [UNANIMOUS] MOVER: Rebeca Armendáriz, Council Member SECONDER: Dion Bracco, Council Member AYES: Blankley, Armendáriz, Bracco, Leroe-Muñoz, Marques, Tovar ABSENT: Zach Hilton Enactment No.: Resolution No. 2021-68 6.2.a Packet Pg. 22 Attachment: Action Minutes (3603 : 12/13/2021 City Council Special Meeting Action Minutes) DRAFTCity Council Special Meeting Minutes December 10, 2021 Page 6 of 6 3.1st Quarter Update on the City's Departmental and Legislative Work Plan City Administrator Jimmy Forbis gave staff presentation and responded to Council Members questions. Mayor Blankley opened Public Comment. No public comment was provided. Council received the report. XI.CITY ADMINISTRATOR'S REPORTS 1.Update on Sidewalk Assessment Project No report was given. 2.Update on Illegal Activity at Unhoused Encampments Police Chief Espinoza provided an update on the item and responded to Council Members questions. Mayor Blankley opened public comment. Vanessa Ashford wanted to reiterate that out of the work plan discussed in Chief Espinoza's update to Council, very few resources were attainable to those experiencing homelessness. Mayor Blankley closed public comment. Council received the report. 3.Presentation of 2021 City Accomplishments A video presentation was provided. XII.CITY ATTORNEY'S REPORTS There were no City Attorney's Reports listed. XIII.CLOSED SESSION There were no Closed Session items listed. ADJOURNMENT Meeting was adjourned at 8:15 P.M. I HEREBY CERTIFY that the foregoing minutes were duly and regularly adopted at a regular meeting of the City Council of the City of Gilroy. /s/Thai Nam Pham Thai Nam Pham, CMC, CPMC City Clerk 6.2.a Packet Pg. 23 Attachment: Action Minutes (3603 : 12/13/2021 City Council Special Meeting Action Minutes) City of Gilroy STAFF REPORT Agenda Item Title: Claim of Westwood Inv., LLC (The City Administrator recommends a “yes” vote under the Consent Calendar shall constitute the denial of the claim) Meeting Date: January 10, 2022 From: Jimmy Forbis, City Administrator Department: Human Resources Department Submitted By: LeeAnn McPhillips Prepared By: LeeAnn McPhillips Strategic Plan Goals ☐ Develop a Financially Resilient Organization ☐ Ensure Neighborhood Equity from City Services ☐ Promote Economic Development Activities ☐ Promote Safe, Affordable Housing for All ☐ Maintain and Improve City Infrastructure RECOMMENDATION Based on the recommendation from Municipal Pooling Authority (MPA) and/or legal counsel, this claim is recommended for rejection. EXECUTIVE SUMMARY Based on the recommendation from Municipal Pooling Authority (MPA) and/or legal counsel, the following claim is submitted to the City Council for rejection at the January 10, 2022 meeting: • Claim of Westwood Inv., LLC Attachments: 6.3 Packet Pg. 24 1. Claim for Westwood Inv LLC 6.3 Packet Pg. 25 6.3.a Packet Pg. 26 Attachment: Claim for Westwood Inv LLC (3594 : Claim of Westwood Inv., LLC) 6.3.a Packet Pg. 27 Attachment: Claim for Westwood Inv LLC (3594 : Claim of Westwood Inv., LLC) City of Gilroy STAFF REPORT Agenda Item Title: Award of Contract for CEQA Review of Planning Application's AS21-13 and TM 21-02 for 6970 Camino Arroyo Development Project. Meeting Date: January 10, 2022 From: Jimmy Forbis, City Administrator Department: Planning Division (Planning Commission Meetings) Submitted By: Jimmy Forbis Prepared By: Kraig Tambornini Kraig Tambornini Strategic Plan Goals ☐ Develop a Financially Resilient Organization ☐ Ensure Neighborhood Equity from City Services  Promote Economic Development Activities ☐ Promote Safe, Affordable Housing for All ☐ Maintain and Improve City Infrastructure RECOMMENDATION Award a contract to EMC Planning in the amount of $169,049.00 for preparation of an initial study/mitigated negative declaration for Planning Application AS 21 -13 and authorize the City Administrator to execute the contract and associated documents. BACKGROUND On July 28, 2021, Temple Gilroy LLC submitted applications for zoning approvals to develop a 10.11-acre site at 6970 Camino Arroyo which is located on the east side of Camino Arroyo, south of Highway 152 and east of US 101 (File no. AS 21-13 and TM 21-02). This property is in the Gilroy Crossings Commercial/Industrial - C3/M2 PUD (Phase II). 7.1 Packet Pg. 28 The project requires environmental review pursuant to the California Environmental Quality Act (CEQA). Therefore, staff initiated the process to select a consultant to prepare the necessary CEQA document. On September 17, 2021, a Request for Proposals (RFP) was published to the current City list of on-call environmental planning consultants, with proposals due October 14, 2021. A total of five proposals were received, all exceeding $100,000.00, which required the RFP to be republished for general submittal by any interested environmental consultant. The second submittal deadline closed November 19, 2021 with no additional submittals received. On December 3, 2021, a notice of intent to award the contract was published selecting EMC Planning as the environmental consultant. No protests were received by the December 10, 2021 deadline, allowing staff to proceed with the next step to request City Council award of the contract. ANALYSIS The Request for Proposal identified the City’s desire to retain services of a qualified environmental consultant to complete environmental review for the proposed major development project, which includes a gas station, drive through food service, two hotels and future medical and industrial development as a later phase. The five proposals were received from CSG Consultants, EMC Planning, First Carbon, Stantec, and SWCA, which are all on the City list of qualified environmental consultants. The proposals ranged in scope from preparation of a Mitigated Negative Declaration to more conservative Environmental Impact Report review, if needed. Proposed budgets ranged from $153,681 to $330,315. The median bid amount was $160,000. All bids included the same traffic analysis scope of work from Hexagon, in the amount of $79,975.00. The proposals were scored in accordance with the City Purchasing Policy with the following ranking: 1. EMC Planning 2. First Carbon Solutions 3. Stantec 4. SWCA 5. CSG Consultants EMC Planning was identified as having greater familiarity with the project, and adequate scope necessary for CEQA compliance. EMC Planning was determined to provide the most efficient, expedient and cost-effective environmental documentation for the project. The cost of the proposal is $153,681.34. The proposed contract amount includes a 10% contingency, for a total contract amount not to exceed $169,049.10. In addition to funding of the contract, the applicant will also be required to pay a City administrative 7.1 Packet Pg. 29 fee. The total cost to pursue work would be $192,101.70, which covers the contract amount, contingency and City administrative fee. ALTERNATIVES 1) Award the contract to FirstCarbon or Stantec, the next two highest scoring bidders. Staff does not recommend this option primarily given the ability of EMC to complete the project review with the most efficiency and understanding of the project area. 2) Reject all proposals. Staff does not recommend this option as this would delay processing of the project. FISCAL IMPACT/FUNDING SOURCE The cost of the environmental review will be fully funded by the ap plicant prior to execution of the contract. This will include the required 15% administrative fee that covers staff time to manage the contract and review the environmental documents. The administrative fee is charged based on the initial contract amount, without the contingency fee included. CONCLUSION It is recommended that the City Council, by motion, award a contract to EMC Planning in the amount of $169,049.50, including a $15,368.13 contingency, for preparation of the environmental document for zoning applications As 21-13 and TM 21-02, and authorize the City Administrator to execute the contract and associated documents . NEXT STEPS Upon Council’s approval, funds will be requested from the applicant in the total amount of $192,101.70 to cover the contract amount, contingency and administrative fee. Once funds are received the contract will be executed. Attachments: 1. EMC Planning - Camino Arroyo Subdivision Proposal 7.1 Packet Pg. 30 Proposal Camino Arroyo Development Project Initial Study/MND File No. AS 21-13 and TM 21-02 22-RFP-CDD-467 October 14, 2021 Prepared by EMC Planning Group 7.1.a Packet Pg. 31 Attachment: EMC Planning - Camino Arroyo Subdivision Proposal (3602 : Award of Contract for CEQA Review of Planning Application AS21- Prepared for C ity of G ilroy Carina Baska, Senior Management Analyst 7350 Rosanna Street Gilroy, CA 95020 Prepared by EMC P lanninG G rouP in C. 301 Lighthouse Avenue, Suite C Monterey, CA 93940 Tel 831.649.1799 Fax 831.649.8399 Teri Wissler Adam, Senior Principal wissler@emcplanning.com www.emcplanning.com October 14, 2021 CITY OF GILROY Camino Arroyo Development Project Initial Study/MND ProposalProposal FILE NO. AS 21-13 AND TM 21-02 7.1.a Packet Pg. 32 Attachment: EMC Planning - Camino Arroyo Subdivision Proposal (3602 : Award of Contract for CEQA Review of Planning Application AS21- Table of Contents 1.0 Setting .......................................................................................................1 2.0 Project Description .................................................................................1 2.1 Tentative Subdivision Map ..................................................................................1 2.2 Architectural and Site Review ..............................................................................1 2.3 Applicant-Submitted Technical Reports...............................................................2 3.0 Past Planning Actions and Environmental Review Relevant to the Proposed Project ......................................................................................2 4.0 Approach- CEQA Guidelines §15183 ......................................................3 5.0 Scope of Work ...........................................................................................6 Task 1 Management/Consultation/Meetings ...................................................6 Task 2 Research ...............................................................................................6 Task 3 Transportation Analysis (Hexagon) .....................................................7 Task 4 Air Quality, Greenhouse Gas Emissions, and Energy Evaluation .........7 Task 5 Biological Resources Analysis .............................................................10 Task 6 Cultural and Tribal Resources ............................................................12 Task 7 Environmental Noise Assessment .......................................................12 Task 8 Administrative Draft Initial Study and Mitigated Negative Declaration..........................................................................12 Task 9 Public Review Initial Study and Mitigated Negative Declaration ........12 Task 10 Public Notices and Document Distribution .......................................12 Task 11 Response to Comments/Final Mitigated Negative Declaration/ Mitigation Monitoring and Reporting Program .................................13 Task 12 Public Hearings and Notice of Determination ...................................13 6.0 Budget and Schedule .............................................................................13 Attachments Attachment A Transportation Analysis Scope of Work Attachment B Environmental Noise Assessment Scope of Work 7.1.a Packet Pg. 33 Attachment: EMC Planning - Camino Arroyo Subdivision Proposal (3602 : Award of Contract for CEQA Review of Planning Application AS21- 7.1.a Packet Pg. 34 Attachment: EMC Planning - Camino Arroyo Subdivision Proposal (3602 : Award of Contract for CEQA Review of Planning Application AS21- EMC Planning Group Inc. 1Camino Arroyo Development Project Initial Study/Mitigated Negative Declaration Proposal 1.0 Setting The 10.18-net acre project site is located at the south of Pacheco Pass Highway (SR 152) and east of Camino Arroyo, within the city limits of Gilroy. Although the project site was historically in agricultural production, it has been fallow for years. The property is surrounded by SR 152 to the north, Holloway Road to the south, undeveloped property designated General Industrial and Commercial to the east, and Camino Arroyo and the Gilroy Crossing Shopping Center (Regency Commercial Center) to the west. The project site has a general plan land use designation of General Industrial. The property is zoned Regency/Newman Center PUD on the Gilroy Zoning Map. 2.0 Project Description The Camino Arroyo Development Project, File No. AS 21-13 and TM 21-02 (proposed project) includes subdividing 10.18 acres into five (5) lots, and Architectural and Site Review for development on four (4) of the lots. 2.1 Tentative Subdivision Map The applicant proposes to subdivide APN 841-070-049 into the following lots:  Lot 1 0.825± acres  Lot 2 1.313± acres  Lot 3 2.061± acres  Lot 4 1.933± acres  Lot 5 4.026± acres 2.2 Architectural and Site Review The applicant is proposing development of the five lots in three phases, as follows. Architectural and Site Review is not proposed for the last phase at this time; however, anticipated development of that phase will be evaluated in the initial study, as development of the third phase is reasonably foreseeable. Proposed development is summarized in the following table. 7.1.a Packet Pg. 35 Attachment: EMC Planning - Camino Arroyo Subdivision Proposal (3602 : Award of Contract for CEQA Review of Planning Application AS21- EMC Planning Group Inc. 2Camino Arroyo Development Project Initial Study/Mitigated Negative Declaration Proposal Development Summary Phase/Lot Project Square Footage or Rooms Phase 1a 1 Drive-thru Burger King 2,600 sf 2 Gas Station (8 pumps) Car Wash Convenience Store 8 pumps 1,152 sf 2,880 sf Phase 1b 3 Residence Inn (4-story)112 rooms 82,568 sf 4 Holiday Inn Express (4-story)88 rooms 67,780 sf Phase 2 (Future - No ASR Applications) 5 Medical Facility (4-story - Treatment/Outpatient Only) Industrial Warehouse (1 story) 79,928 sf 15,000 sf SOURCE: Site Plan, 6/30/2021; Tentative Subdivision Map, 3/12/2021; RFP Questions and Answers 2.3 Applicant-Submitted Technical Reports The applicant has submitted a geotechnical report addressing Phases 1a and 1b. No other technical reports are anticipated from the applicant. 3.0 Past Planning Actions and Environmental Review Relevant to the Proposed Project The 10.18-acre project site was included in the Regency Centers Project, for which an EIR was prepared and certified in December 2002. The current project site was identified as a Phase II parcel, with possible future development as hotel/retail/restaurant/industrial site. The City subsequently approved a development agreement, tentative map, zone change, and architectural site review for the regional shopping center known as Gilroy Crossing, subsequently developed and located immediately west of the project site and Camino Arroyo. Although the 2002 EIR addressed environmental impacts associated with future development of the current project site, no development application was submitted and therefore, considered. In November 2020, the City of Gilroy adopted the Gilroy 2040 General Plan, for which EMC Planning Group prepared the EIR. 7.1.a Packet Pg. 36 Attachment: EMC Planning - Camino Arroyo Subdivision Proposal (3602 : Award of Contract for CEQA Review of Planning Application AS21- EMC Planning Group Inc. 3Camino Arroyo Development Project Initial Study/Mitigated Negative Declaration Proposal 4.0 Approach- CEQA Guidelines §15183 Assuming the proposed project is consistent with the development densities established in the general plan and zoning, this environmental analysis will focus on examining whether there are project-specific significant effects that may be peculiar to the project or the project site in accordance with CEQA Guidelines §15183, which states: (a) CEQA mandates that projects which are consistent with the development density established by existing zoning, community plan, or general plan policies for which an EIR was certified shall not require additional environmental review, except as might be necessary to examine whether there are project-specific significant effects which are peculiar to the project or its site [emphasis added]. This streamlines the review of such projects and reduces the need to prepare repetitive environmental studies. (b) In approving a project meeting the requirements of this section, a public agency shall limit its examination of environmental effects to those which the agency determines, in an initial study or other analysis: (1) Are peculiar to the project or the parcel on which the project would be located, (2) Were not analyzed as significant effects in a prior EIR on the zoning action, general plan, or community plan, with which the project is consistent, (3) Are potentially significant off-site impacts and cumulative impacts which were not discussed in the prior EIR prepared for the general plan, community plan or zoning action, or (4) Are previously identified significant effects which, as a result of substantial new information which was not known at the time the EIR was certified, are determined to have a more severe adverse impact than discussed in the prior EIR. (c) If an impact is not peculiar to the parcel or to the project, has been addressed as a significant effect in the prior EIR, or can be substantially mitigated by the imposition of uniformly applied development policies or standards, as contemplated by subdivision (e) below, then an additional EIR need not be prepared for the project solely on the basis of that impact. 7.1.a Packet Pg. 37 Attachment: EMC Planning - Camino Arroyo Subdivision Proposal (3602 : Award of Contract for CEQA Review of Planning Application AS21- EMC Planning Group Inc. 4Camino Arroyo Development Project Initial Study/Mitigated Negative Declaration Proposal (d) This section shall apply only to projects which meet the following conditions: (1) The project is consistent with: (A) A community plan adopted as part of a general plan, (B) A zoning action which zoned or designated the parcel on which the project would be located to accommodate a particular density of development, or (C) A general plan of a local agency, and (2) An EIR was certified by the lead agency for the zoning action, the community plan, or the general plan. (e) This section shall limit the analysis of only those significant environmental effects for which: (1) Each public agency with authority to mitigate any of the significant effects on the environment identified in the EIR on the planning or zoning action undertakes or requires others to undertake mitigation measures specified in the EIR which the lead agency found to be feasible, and (2) The lead agency makes a finding at a public hearing as to whether the feasible mitigation measures will be undertaken. (f) An effect of a project on the environment shall not be considered peculiar to the project or the parcel for the purposes of this section if uniformly applied development policies or standards have been previously adopted by the city or county with a finding that the development policies or standards will substantially mitigate that environmental effect when applied to future projects, unless substantial new information shows that the policies or standards will not substantially mitigate the environmental effect. The finding shall be based on substantial evidence which need not include an EIR. Such development policies or standards need not apply throughout the entire city or county, but can apply only within the zoning district in which the project is located, or within the area subject to the community plan on which the lead agency is relying. Moreover, such policies or standards need not be part of the general plan or any community plan, but can be found within another pertinent planning document such as a zoning ordinance. Where a city or county, in previously adopting uniformly applied development policies or standards for imposition on future projects, failed to make a finding as to whether such policies or standards would substantially mitigate the effects of future projects, the decision-making body 7.1.a Packet Pg. 38 Attachment: EMC Planning - Camino Arroyo Subdivision Proposal (3602 : Award of Contract for CEQA Review of Planning Application AS21- EMC Planning Group Inc. 5Camino Arroyo Development Project Initial Study/Mitigated Negative Declaration Proposal of the city or county, prior to approving such a future project pursuant to this section, may hold a public hearing for the purpose of considering whether, as applied to the project, such standards or policies would substantially mitigate the effects of the project. Such a public hearing need only be held if the city or county decides to apply the standards or policies as permitted in this section. (g) Examples of uniformly applied development policies or standards include, but are not limited to: (1) Parking ordinances. (2) Public access requirements. (3) Grading ordinances. (4) Hillside development ordinances. (5) Flood plain ordinances. (6) Habitat protection or conservation ordinances. (7) View protection ordinances. (8) Requirements for reducing greenhouse gas emissions, as set forth in adopted land use plans, policies, or regulations. (h) An environmental effect shall not be considered peculiar to the project or parcel solely because no uniformly applied development policy or standard is applicable to it. (i) Where the prior EIR relied upon by the lead agency was prepared for a general plan or community plan that meets the requirements of this section, any rezoning action consistent with the general plan or community plan shall be treated as a project subject to this section. (1) “Community plan” is defined as a part of the general plan of a city or county which applies to a defined geographic portion of the total area included in the general plan, includes or references each of the mandatory elements specified in Section 65302 of the Government Code, and contains specific development policies and implementation measures which will apply those policies to each involved parcel. (2) For purposes of this section, “consistent” means that the density of the proposed project is the same or less than the standard expressed for the involved parcel in the general plan, community plan or 7.1.a Packet Pg. 39 Attachment: EMC Planning - Camino Arroyo Subdivision Proposal (3602 : Award of Contract for CEQA Review of Planning Application AS21- EMC Planning Group Inc. 6Camino Arroyo Development Project Initial Study/Mitigated Negative Declaration Proposal zoning action for which an EIR has been certified, and that the project complies with the density-related standards contained in that plan or zoning. Where the zoning ordinance refers to the general plan or community plan for its density standard, the project shall be consistent with the applicable plan. (j) This section does not affect any requirement to analyze potentially significant offsite or cumulative impacts if those impacts were not adequately discussed in the prior EIR. If a significant offsite or cumulative impact was adequately discussed in the prior EIR, then this section may be used as a basis for excluding further analysis of that offsite or cumulative impact. 5.0 Scope of Work The initial study will evaluate the environmental impacts associated with development of the proposed project, using the Gilroy 2040 General Plan EIR, as well as Regency Centers Property EIR, as may still be applicable. The proposed tasks are presented below. Task 1 Management/Consultation/Meetings This task includes coordinating staff, general management and administration, providing CEQA consultation for client, and managing subconsultants. This task also includes attendance at three meetings with City staff and one meeting with Caltrans (all either virtually or in the City of Gilroy). Task 2 Research This task includes a thorough review of the application materials and review of the following plans and documents, as applicable to the proposed project:  Gilroy 2040 General Plan;  Gilroy 2040 General Plan EIR;  Regency Centers Property EIR;  City of Gilroy Municipal Code;  City of Gilroy 2020 Urban Water Management Plan (anticipated to be adopted in October 2021);  City of Gilroy 2020 Water Shortage Contingency Plan (anticipated to be adopted in October 2021); and  Environmental documents prepared for project in the vicinity including but not limited to, Project Garlic Initial Study/MND and UNFI Warehouse and Distribution Facility EIR. 7.1.a Packet Pg. 40 Attachment: EMC Planning - Camino Arroyo Subdivision Proposal (3602 : Award of Contract for CEQA Review of Planning Application AS21- EMC Planning Group Inc. 7Camino Arroyo Development Project Initial Study/Mitigated Negative Declaration Proposal Task 3 Transportation Analysis (Hexagon) Hexagon Transportation Consultants will conduct a transportation analysis for the proposed project. The scope of work is included in Attachment A. The scope of work in Attachment A notes the General Plan network improvement to extend Cameron Boulevard north to Marcella Avenue at Leavesley Road, and south to the extension of Luchessa Avenue. However, Project Garlic, on the north side of SR 152, proposes to eliminate the extension at SR 152 through their site to Gilman Road. If the Project Garlic proposal is approved, the scope of work would be modified accordingly, but would not result in a change to the budget. Task 4 Air Quality, Greenhouse Gas Emissions, and Energy Evaluation 4.1 Emissions Modeling Run the California Emissions Estimator Model (CalEEMod) to calculate the change in criteria air pollutant and greenhouse gas (GHG) emissions based on the proposed land uses, the model’s construction defaults, and information from the transportation analysis. Construction and operational emissions will be modeled. The following tasks will be completed:  Review the project description and information to identify proposed sources of criteria air pollutants and GHGs and to develop the model data inputs.  Up to five model runs (unmitigated and mitigated) will be conducted to quantify the criteria pollutants and GHG emissions during construction and operations of the overall project, and to quantify as needed, GHG emissions generated by operations by phase;  Assumptions, methodology, and modeled results will be presented in a technical memorandum for use as an appendix to the initial study; Vehicle miles traveled (VMT) data generated by CalEEMod serves as a general proxy for the magnitude of transportation fuel consumption. The VMT data from CalEEMod will be input into the Emissions Factors (EMFAC) model to quantify the transportation fuel demand for all planned and anticipated development. The modeled fuel demand results will be presented in an appendix to the initial study; 4.2 Air Quality The proposed development of each parcel and the project as a whole would result in an increase in criteria air pollutant emissions during construction and operations. The proposed project may also result in construction-related air quality impacts; however, because no sensitive receptors are located within 1,000 feet of the project site, receptor exposures and associated health risks during construction will be discussed qualitatively, consistent with air district guidance. 7.1.a Packet Pg. 41 Attachment: EMC Planning - Camino Arroyo Subdivision Proposal (3602 : Award of Contract for CEQA Review of Planning Application AS21- EMC Planning Group Inc. 8Camino Arroyo Development Project Initial Study/Mitigated Negative Declaration Proposal The following tasks will be completed:  Conduct a consistency analysis for each land use to determine if the proposed project is consistent with the applicable air quality management plan;  Describe the physical and climatological characteristics of the air basin, existing air pollutant conditions, and health effects of air pollutants;  Review current air district documents, policies, and regulatory requirements applicable to the proposed project;  Compare modeled air pollutant emissions results to air district’s impact thresholds to determine if the proposed project would result in significant impacts from criteria air pollutant emissions;  Identify any project sources of hazardous air pollutants or odors, as well as any existing or planned nearby sensitive receptors that could be affected; and  Present mitigation measures to reduce significant impacts to a less-than-significant level. 4.3 Greenhouse Gas Emissions Construction and operation of uses on each individual parcel and the project as a whole will generate greenhouse gas emissions (GHGs). GHG emissions would be quantified based on the modeling scope identified in Section 4.1 above. Two different thresholds of significance could be employed to evaluate the significance of impacts for the project as a whole and/or for individual parcels. The choice will depend on the outcome of the vehicle miles traveled (VMT) analysis prepared by Hexagon, the methodology of which is discussed in the transportation analysis scope presented in Attachment A. The VMT analysis is a substitute measure of a project’s mobile source GHGs. If the VMT impact from developing the entire site and/or an individual parcel is less than significant, mobile source GHG emissions can be omitted from the project/ parcel GHG emissions inventory. In this case, the balance (non-mobile source) emissions can either be evaluated against a service population threshold or a mass emissions threshold. We would employ whichever threshold imposes a lower mitigation burden on each developer. An efficiency-based GHG threshold of significance would be derived for the buildout year of the four parcels that current have active applications with the City. A second efficiency threshold would be developed for the two parcels for which specific development is not currently proposed, with an assumed buildout year of 2030. Mitigation for these two parcels would provide the flexibility to define an earlier buildout year (and less stringent) threshold of significance. Where a mass emissions (bright line) threshold may be a more advantageous approach, it will be based on the air district’s prior CEQA guidance for the year 2020, with the threshold scaled down to reflect deeper emissions reductions needed to meet the state reduction target for the year 2030. 7.1.a Packet Pg. 42 Attachment: EMC Planning - Camino Arroyo Subdivision Proposal (3602 : Award of Contract for CEQA Review of Planning Application AS21- EMC Planning Group Inc. 9Camino Arroyo Development Project Initial Study/Mitigated Negative Declaration Proposal For development on individual parcels that exceeds the applied threshold of significance, mitigation will be proposed in the form of a GHG reduction plan. The reduction plan will call for each developer to maximize on-site emissions reductions in an effort to reduce emissions to below the threshold of significance. Where doing so is not feasible, the option to purchase GHG emissions offset credits will be provided to reduce the impact to less than significant. The following tasks will be completed:  Briefly summarized the applicable climate change policy and regulatory setting;  Develop efficiency-based thresholds of significance for the four parcels proposed for development and another for the remaining two parcels. Calculate a mass emissions threshold for projects with less-than-significant VMT impacts and for these parcels, determine whether the efficiency threshold or mass emissions threshold creates the lowest mitigation burden;  Calculate the service population associated with proposed/planned development on each parcel for parcels where the service population threshold will be utilized;  Present CalEEMod results as may be modified by applying GHG reductions that accrue to state legislative/regulatory actions;  Compare the service population-based project emissions to the efficiency threshold (or mass emissions threshold as appropriate) to determine impact significance; and  Present mitigation to reduce significant impacts to a less-than-significant level. 4.4 Energy Energy will be required to construct and operate the development planned for each parcel. The three primary sources of energy consumption will be fuel use in vehicles traveling to and from the project site, natural gas, and electricity in buildings. Energy demand from the cumulative planned development will be calculated and reported. Parcel specific information will not be necessary because the thresholds of significance for energy impacts are qualitative and development for each parcel will be required to comply with uniformly applied regulations and to reduce GHG emission via measures that also reduce energy demand. The following tasks will be completed:  Report energy demand from on-site use of natural gas and electricity at buildout of the proposed project based on the modeled CalEEMod results;  Identify transportation fuel demand result from cumulative development based on EMFAC results;  Present thresholds of significance based on the CEQA Guidelines;  Identify regulatory requirements that would reduce energy demand from future development; 7.1.a Packet Pg. 43 Attachment: EMC Planning - Camino Arroyo Subdivision Proposal (3602 : Award of Contract for CEQA Review of Planning Application AS21- EMC Planning Group Inc. 10Camino Arroyo Development Project Initial Study/Mitigated Negative Declaration Proposal  Describe energy demand reduction that would occur with implanting mitigation measures for GHG impacts, if any;  Identify energy impacts; and  Present mitigation measures to reduce energy consumption, if necessary. Task 5 Biological Resources Analysis Based on a preliminary review of project plans, site photographs, and aerial photographs, the proposed project site is a parcel (APN 841-70-149) of flat land dominated by annual grassland. A review of the National Wetlands Inventory (NWI) shows there are no wetland features on the project site. According to the California Natural Diversity Database (CDFW 2021), there are a number of special- status species with the potential to occur within the project area, including: Plants  Congdon’s tarplant (Centromadia parryi ssp. congdonii)  Hoover’s button-celery (Eryngium aristulatum var. hooveri)  Loma Prieta hoita (Hoita strobilina)  Most beautiful jewelflower (Streptanthus albidus ssp. peramoenus)  Pink creamsacs (Castilleja rubicundula var. rubicundula)  Prostrate vernal pool navarretia (Navarretia prostrata)  Saline clover (Trifolium hydrophilum)  San Joaquin spearscale (Extriplex joaquinana) Wildlife  American badger (Taxidea taxus)  Burrowing owl (Athene cunicularia)  California red-legged frog (Rana draytonii)  California tiger salamander (Ambystoma californiense)  Hoary bat (Lasiurus cinereus)  Pallid bat (Antrozous pallidus)  Tricolored blackbird (Agelaius tricolor)  White-tailed kite (Elanus leucurus) 7.1.a Packet Pg. 44 Attachment: EMC Planning - Camino Arroyo Subdivision Proposal (3602 : Award of Contract for CEQA Review of Planning Application AS21- EMC Planning Group Inc. 11Camino Arroyo Development Project Initial Study/Mitigated Negative Declaration Proposal This evaluation will assess potential habitat present for special-status species in the area and recommend mitigation measures for the protection of biological resources. If suitable habitat is identified, recommendations may also include the need for additional specific or protocol-level surveys to be conducted during an appropriate time of year. The following scope of work includes tasks to conduct a reconnaissance-level biological survey and prepare a section addressing biological resources in an Initial Study. 5.1 Research Compile and review available project information, including preliminary site plans and aerial photographs. Conduct a review to determine the special-status species that have been recorded as occurring within the general project vicinity based on current database searches of CDFW’s California Natural Diversity Database (CNDDB), the California Native Plant Society (CNPS) Rare and Endangered Plant Inventory, the US Fish and Wildlife Service (USFWS) Endangered Species Program, the USFWS NWI; and other biological studies conducted in the vicinity of the project site, including the studies prepared for the Project Garlic project north of SR 152. Review the project Habitat Plan application and access the Santa Clara Valley Habitat Agency Geobrowser to determine the fee zone and any surveys or other requirements that may be necessary. 5.2 Reconnaissance-level Field Survey Complete a reconnaissance-level field survey to (1) identify and map the principal plant communities; (2) assess the potential for special-status species and their habitats, wildlife movement corridors, potentially jurisdictional wetlands and waterways, regulated trees, and other significant biological resources to occur; and (3) identify and map any observed locations of special-status species and/ or habitats. Plant and wildlife species observed during the survey will be recorded in field notes. Any special-status species observed will be reported to the CNDDB in compliance with CDFW permit requirements, after the information is provided to the client. 5.3 Initial Study Section Prepare the biological resources section of the Initial Study, describing existing habitats and plant and animal species found on the project site, and the occurrence of and/or potential for special-status species and their habitats. If needed, one or more figures will be prepared to illustrate habitat types and the location(s) of special-status species occurring on or in the vicinity of the project site. Potential impacts to biological resources will be identified, and mitigation measures will be provided to minimize potential impacts when possible. Note: Focused surveys for specific plant and/or animal species are not included in this proposed scope of work. The presence or absence of certain species can be determined during the reconnaissance-level site assessment. If appropriate habitat for other sensitive species is observed during the site assessment, 7.1.a Packet Pg. 45 Attachment: EMC Planning - Camino Arroyo Subdivision Proposal (3602 : Award of Contract for CEQA Review of Planning Application AS21- EMC Planning Group Inc. 12Camino Arroyo Development Project Initial Study/Mitigated Negative Declaration Proposal species-specific surveys may be required (i.e., surveys for annual plants not in bloom at the time of the reconnaissance-level survey, protocol-level surveys for special-status wildlife species, etc.). Species-specific survey requirements will be determined based on the results of the reconnaissance-level site assessment. Task 6 Cultural and Tribal Resources This scope of work does not include another archaeological survey, as surveys have been conducted in the past on this site, as well as properties in the vicinity, with negative results. However, this task includes obtaining an updated records search from the Northwest Information Center to determine if any sensitive resources have been discovered in the vicinity since the previously surveys were conducted for this project site. This records search may also assist the City with Tribal Consultation in accordance with SB52 and CEQA. Task 7 Environmental Noise Assessment WJV Acoustics will conduct an environmental noise assessment for the proposed project. The scope of work is included in Attachment B. Task 8 Administrative Draft Initial Study and Mitigated Negative Declaration Prepare the administrative draft initial study and mitigated negative declaration and provide two (2) paper copies and one (1) electronic version in Word format to the City for review and comment. Task 9 Public Review Initial Study and Mitigated Negative Declaration Revise the administrative draft initial study based upon City staff comments and prepare the public review initial study and mitigated negative declaration. Provide two (2) paper copies and one (1) electronic copy for City staff to upload to the City website. Task 10 Public Notices and Document Distribution Prepare a draft notice of intent, draft notice of completion, and draft OPR summary form for review and comment by City staff. Prepare final notices and file, along with the initial study and mitigated negative declaration, electronically with the State Clearinghouse. This scope assumes City staff will arrange for publishing the notice of intent with the Dispatch and posting with the County Clerk. 7.1.a Packet Pg. 46 Attachment: EMC Planning - Camino Arroyo Subdivision Proposal (3602 : Award of Contract for CEQA Review of Planning Application AS21- EMC Planning Group Inc. 13Camino Arroyo Development Project Initial Study/Mitigated Negative Declaration Proposal Task 11 Response to Comments/Final Mitigated Negative Declaration/Mitigation Monitoring and Reporting Program Prepare a draft response to comments and final mitigated negative declaration, if necessary, for review and approval by the City. One electronic proof copy will be provided. Upon receipt of the City’s comments, our firm will prepare the final response to comments for incorporation into the staff report and use by the decision-makers. A draft and a final mitigation monitoring and reporting program will be prepared. Task 12 Public Hearings and Notice of Determination Project manager will attend two public hearings to answer questions on the mitigated negative declaration and CEQA process. Prepare notice of determination to be filed with the County Clerk and State Clearinghouse. 6.0 Budget and Schedule The proposed budget and schedule are presented on the following pages. 7.1.a Packet Pg. 47 Attachment: EMC Planning - Camino Arroyo Subdivision Proposal (3602 : Award of Contract for CEQA Review of Planning Application AS21- TaskStaffSenior Principal PrincipalAssociate Planner Principal BiologistAssociate BiologistGraphicsProduction ManagerAdmin./ ProductionBilling Rate (Per Hour) $250.00 $225.00 $150.00 $190.00 $130.00 $95.00 $125.00 $115.001. Management/Consultation/Meetings 20.0 0.0 8.0 0.0 0.0 0.0 0.0 4.0 32.0 $6,660.002. Research 2.0 0.0 10.0 0.0 0.0 0.0 0.0 0.0 12.0 $2,000.003. Transportation Analysis 2.0 0.0 1.0 0.0 0.0 0.0 0.0 0.0 3.0 $650.004. Air Quality, Greenhouse Gas Emissions, and Energy 0.0 66.0 0.0 0.0 0.0 0.0 0.0 0.0 66.0 $14,850.005. Biological Resources 0.0 0.0 0.0 4.0 36.0 2.0 0.0 0.0 42.0 $5,630.006. Cultural and Tribal Resources 0.0 0.0 2.0 0.0 0.0 0.0 0.0 0.0 2.0 $300.007. Environmental Noise Assessment 0.0 0.0 2.0 0.0 0.0 0.0 0.0 0.0 2.0 $300.008. Administrative Draft IS/MND 16.0 0.0 52.0 0.0 0.0 16.0 4.0 2.0 90.0 $14,050.009. Public Review Draft IS/MND 4.0 0.0 8.0 0.0 2.0 2.0 4.0 2.0 22.0 $3,380.0010. Public Notices and Document Distribution 0.0 0.0 4.0 0.0 0.0 0.0 0.0 1.0 5.0 $715.0011. Response to Comments/Final MND/MMRP 8.0 2.0 8.0 2.0 0.0 0.0 0.0 0.0 20.0 $4,030.0012. Public Hearings and NOD 8.0 0.0 1.0 0.0 0.0 0.0 0.0 0.0 9.0 $2,150.00Subtotal (Hours)60.0 68.0 96.0 6.0 38.0 20.0 8.0 9.0Total Hours Total CostSubtotal (Cost)$15,000.00 $15,300.00 $14,400.00 $1,140.00 $4,940.00 $1,900.00 $1,000.00 $1,035.00305.0 $54,715.00Additional CostsProduction CostsTravel CostsPostal/DeliverablesMiscellaneous (NWIC Records Search and CNDDB)Administrative Overhead 10%TotalSubconsultant FeesHexagon Transportation ConsultantsWJV AcousticsSubconsultant Overhead 10%TotalTotal CostsNOTE: This proposal is valid for 90 days$79,975.00$8,850.00$153,681.34$8,882.50$97,707.50$550.00$1,258.84$114.44$294.40$200.00$100.00 Camino Arroyo Development Project IS/MND BudgetEMC Planning Group Inc.Total CostTotalHours7.1.aPacket Pg. 48Attachment: EMC Planning - Camino Arroyo Subdivision Proposal (3602 : Award of Contract for CEQA Activity NameStart Date Finish Date31 7 14 21 28 5 12 19 26 2 9 16 23 30 6 13 20 27 6 13 20 27 3 10 17 24 1 8 15 22 29 5 12 19 26Nov 2021 Dec 2021 Jan 2022 Feb 2022Mar 2022 Apr 2022 May 2022 Jun 202231 7 14 21 28 5 12 19 26 2 9 16 23 30 6 13 20 27 6 13 20 27 3 10 17 24 1 8 15 22 29 5 12 19 26Authorization to Proceed11/1/21 11/1/21Research11/1/21 11/30/21Draft Transportation Analysis11/1/21 1/24/22City Staff Review1/24/22 2/4/22Final Transportation Analysis2/4/22 2/11/22AQ/GHG/Energy1/24/22 2/11/22Biological Resources11/8/21 12/17/21Environmental Noise Assessment11/8/21 12/17/21Admin Draft IS/MND10/11/21 2/25/22City Staff Review2/28/22 3/11/22Public Review IS/MND3/14/22 3/25/22Noticing and Distribution3/28/22 4/1/2230-day Public Review Period4/4/22 5/5/22Response to Comments/Final MND/MMRP5/5/22 5/20/22Public Hearings6/1/22 6/30/22123456789101112131415Camino Arroyo Development Project IS/MNDSchedule7.1.aPacket Pg. 49Attachment: EMC Planning - Camino Arroyo Subdivision Proposal (3602 : Award of Contract for CEQA Review of Planning Application AS21-13) A ATTACHMENT Transportation Analysis Scope of Work 7.1.a Packet Pg. 50 Attachment: EMC Planning - Camino Arroyo Subdivision Proposal (3602 : Award of Contract for CEQA Review of Planning Application AS21- October 7, 2021 Ms. Teri Wissler Adam EMC Planning Group 301 Lighthouse Avenue, Suite C Monterey, CA 93940 Subject:Proposal to Prepare a Transportation Analysis for the Proposed Gilroy Square Development at 6970 Camino Arroyo in Gilroy, California Dear Ms. Wissler Adam: Hexagon Transportation Consultants, Inc. is pleased to submit this proposal to prepare a transportation analysis for the proposed Gilroy Square development in Gilroy, California. The project site is located at 6970 Camino Arroyo and consists of an undeveloped 10.18-acre site.The project site is bounded by Pacheco Pass Highway (SR 152) to the north, Camino Arroyo to the west, Holloway Road to the south, and undeveloped land to the east.It should be noted that the project site, along with the parcel south of the project site to Holloway Road, was evaluated with potential development as Phase II of the Regency Centers Gilroy Crossing shopping center project in 2002 (Regency Centers Traffic Impact Analysis, by Hexagon). The Regency Centers Phase I project is located in the southwest corner of the Camino Arroyo/Pacheco Pass Highway intersection, across the street from the project site, and is completed and occupied (Gilroy Crossing shopping center). The proposed project would be developed in three phases with the following land uses: Parcel 1A –a 16-fueling positions gas station with a 2,880-square-foot (s.f.)convenience store and 1,152- s.f. car wash; a 2,600-s.f.fast-food with drive-thru restaurant (Burger King) Parcel 1B –a 112-room 5-story hotel (Residence Inn)and an 88-room 4-story hotel (Holiday Inn Express) Parcel 2 –a 79,928-s.f. medical facility (treatment/outpatient only) and a 15,000-s.f. industrial warehouse Access to the project site would be provided via three existing driveway openings along Camino Arroyo and one along Holloway Road. Additionally, a fourth driveway is proposed along Camino Arroyo, north of the Camino Arroyo/Gilroy Crossing intersection. This scope of services was developed by Hexagon staff based on our knowledge of City of Gilroy traffic study requirements. The City of Gilroy has not yet reviewed the scope of work below. Therefore,upon their review, City staff may request changes to the scope of work or additional work elements not included in our proposal. Roadway Network Under the current roadway network, all access to the project sites is provided via Pacheco Pass Highway. In order to provide a secondary access route to the project site, a connection from the project area to the south would be required. The recently adopted City of Gilroy 2040 General Plan includes roadway improvements throughout the city that will support the projected growth associated with buildout of the General Plan. Some of these planned improvements would directly affect the project area by changing travel patterns. Planned roadway network improvements in the project area include: 7.1.a Packet Pg. 51 Attachment: EMC Planning - Camino Arroyo Subdivision Proposal (3602 : Award of Contract for CEQA Review of Planning Application AS21- Ms. Teri Wissler Adam October 7, 2021 Page 2 of 9 The extension of Luchessa Avenue from its current terminus point at Rossi Lane eastward to connect to the future Cameron Boulevard extension. The extension of Cameron Boulevard to the north to connect to Marcella Avenue at Leavesley Road and to the south to connect to the Luchessa Avenue extension. The extension of Rossi Lane from its current terminus point at Luchessa Avenue northward to connect to Holloway Road. The planned new roadway connection between Luchessa Avenue/Rossi Lane and Holloway Road would provide a second access route to/from the project site area to/from the south and southwest parts of Gilroy.From conversations with City staff, this planned new roadway connection should be constructed parallel to/west of Camino Arroyo/Venture Way and the existing UNFI building,and connect to Luchessa Avenue at its planned extension rather than at Rossi Lane. Therefore, this study will evaluate operations of the proposed project under the current roadway network and assuming the construction of a new roadway providing a direct connection between Luchessa Avenue and Holloway Road (referred to hereafter as the Luchessa/Holloway connection).The Luchessa/Holloway connection, as described above, would replace the Rossi Lane extension to Holloway Road assumed in the General Plan roadway network. Additionally, implementation of the Luchessa/Holloway connection will require an evaluation of roadway traffic conditions and a General Plan Amendment. SCOPE OF SERVICES Our proposed scope of services was developed by Hexagon staff based on our understanding of the project and our knowledge of the City’s traffic study requirements. The purpose of the traffic analysis is to satisfy the requirements of the City of Gilroy, Caltrans, the Congestion Management Program (CMP) of the Santa Clara Valley Transportation Authority (VTA), and CEQA. The study will determine the traffic impacts of the proposed project on the transportation network in the vicinity of the site. Historically, traffic impact analysis has focused on the identification of traffic impacts and potential roadway improvements to relieve traffic congestion that may result due to proposed growth based on delay. However, with the adoption of Senate Bill (SB) 743 legislation, effective July 1, 2020, public agencies are required to base transportation impacts on vehicle miles traveled (VMT) rather than congestion and delay metrics, such as Level of Service (LOS), as the measurement for CEQA transportation analysis. The change in measurement is intended to better evaluate the effects on the state’s goals for climate change and multi-modal transportation. In adherence to SB 743, the City of Gilroy is currently developing the framework for new policies based on the implementation of VMT as the primary measure of transportation impacts. Therefore, the effects and impacts to the transportation network as the result of the implementation of the proposed project will be evaluated based on VMT. However, the City of Gilroy currently uses LOS as their adopted methodology for the evaluation of the effects of new development and land use changes on the local transportation network. In addition, the City is still required to conform to the requirements of the VTA, which establishes a uniform program for evaluating the transportation impacts of land use decisions on the designated CMP Roadway System. Therefore, in addition to the evaluation of VMT, this transportation study also will include roadway capacity analyses, based on level of service,to evaluate the effects of the proposed project on the citywide transportation system, including intersections, freeway segments, and freeway ramps. The level of service analysis is presented to determine conformance to General Plan transportation policies. However, the determination of project impacts per CEQA requirements is based solely on the VMT analysis. 7.1.a Packet Pg. 52 Attachment: EMC Planning - Camino Arroyo Subdivision Proposal (3602 : Award of Contract for CEQA Review of Planning Application AS21- Ms. Teri Wissler Adam October 7, 2021 Page 3 of 9 VMT Evaluation Methodology and Criteria Pursuant to SB 743, the Governor’s Office of Planning and Research (OPR) released the current CEQA Guidelines Update in late 2018, which proposes VMT as the replacement metric for LOS in the context of CEQA. While OPR emphasizes that a lead agency has the discretionary authority to establish thresholds of significance, the Final Guidelines suggests criteria that indicate when a project may have a significant, or less than significant, transportation impact on the environment. In accordance with CEQA, all proposed projects are required to analyze transportation as a component of environmental review using average trip length per resident and/or per employee as metrics (total VMT for retail/commercial projects). The City of Gilroy draft guidelines for the evaluation of transportation impacts based on VMT are based on OPR’s technical recommendations regarding assessment of VMT, thresholds of significance, and mitigation measures, contained in their Technical Advisory on Evaluating Transportation Impacts in CEQA document, dated December 2018. Thus, for the purpose of this analysis, a comparison of the citywide VMT (or baseline VMT) versus the project’s VMT is made to determine the effects of the proposed project on VMT. The VMT analysis will utilize OPR’s recommendation of a net increase in total VMT from baseline conditions as the threshold to identify potential VMT impacts for commercial/retail projects and 15 percent (%) below baseline conditions as the threshold to identify potential VMT impacts for employment projects. The Valley Transportation Authority (VTA)VMT Evaluation Tool was developed to streamline the analysis for development projects in Santa Clara County, however, it has the capability to analyze only the most common land uses consisting of residential, office, and industrial land uses. For non-residential or non- office projects, very large projects, or projects that can potentially shift travel patterns (such is the case of the project), the City’s TDF Model,or other City-approved method,can be used to determine project VMT. Thus,the CEQA VMT analysis will be completed utilizing the City of Gilroy Travel Demand Forecasting (TDF) model.Total VMT will be calculated for the commercial/retail portion of the project and VMT per employee for the employment components of the project. If a project is found to have a significant impact on VMT, the impact must be reduced by modifying the project to reduce its VMT to an acceptable level (below the identified thresholds of significance), mitigating the impact through multimodal transportation improvements, implementing Transportation Demand Management (TDM) measures, and/or by establishing a trip cap. Roadway Capacity Analysis For conformance with City of Gilroy General Plan transportation policies, the project will be required to complete an analysis of the effects of project traffic on the local transportation system, or a roadway capacity analysis. The roadway capacity analysis will include the evaluation of intersections based on delay/level of service. A roadway segment analysis also will be completed to evaluate the effect of the Luchessa/Holloway connection on operations along other roadway in the project area. Preliminarily, we estimate a need to include up to 20 intersections, 8 roadway segments, 6 freeway segments, and two freeway interchanges. The study intersections will be evaluated during the weekday AM and PM peak commute hours and the Saturday peak-hour.The study freeway segments will be evaluated during the weekday AM and PM peak hours only.The list of study facilities will be finalized in coordination with City staff. Additional study facilities will require authorization and additional budget. The study intersections, roadway segments, freeway segments, and freeway ramps we have identified are listed below. 7.1.a Packet Pg. 53 Attachment: EMC Planning - Camino Arroyo Subdivision Proposal (3602 : Award of Contract for CEQA Review of Planning Application AS21- Ms. Teri Wissler Adam October 7, 2021 Page 4 of 9 Study Intersections AM PM Sat 1 Monterey Street and Tenth Street 05/07/19 09/05/19 09/07/19 2 Alexander Street and Tenth Street 11/05/19 11/05/19 09/28/19 3 Chestnut Street and Tenth Street 05/07/19 05/07/19 09/07/19 4 US 101 SB Ramps and Tenth Street 05/07/19 05/07/19 09/07/19 5 US 101 NB Off-Ramp and Pacheco Pass Highway 05/07/19 05/07/19 09/07/19 6 Camino Arroyo and Pacheco Pass Highway 05/07/19 05/07/19 11/07/20 7 Silacci Way and Pacheco Pass Highway 11/05/20 11/05/20 11/07/20 8 Cameron Boulevard and Pacheco Pass Highway 11/20/19 11/05/20 11/07/20 9 Gilroy Foods and Pacheco Pass Highway 11/05/20 11/05/20 11/07/20 10 Holsclaw Road and Pacheco Pass Highway 01/23/18 01/23/18 11/18/17 11 Frazier Lake Road and Pacheco Pass Highway 01/23/18 01/23/18 11/18/17 12 Monterey Street and Luchessa Avenue 11/05/19 09/05/19 09/07/19 13 Automall Parkway and Luchessa Avenue N/A N/A N/A 14 US 101 SB Ramps and Monterey Road 03/27/18 09/05/19 09/07/19 15 US 101 NB Off-Ramp and Monterey Road 03/27/18 09/05/19 09/07/19 16 Camino Arroyo and Gilroy Crossing 11/23/18 11/23/18 11/18/17 17 Camino Arroyo and Holloway Road 11/23/18 11/23/18 11/18/17 18 Luchessa/Holloway Connection and Holloway Road (Future)Future Future Future 19 Luchessa/Holloway Connection and Luchessa Avenue (Future)Future Future Future 20 Rossi Lane and Luchessa Avenue (Future)Future Future Future Available Count Dates Study Roadway Segments 1.Camino Arroyo, between SR 152 and Holloway Road 2.Holloway Road, west of Camino Arroyo 3.SR 152, between US 101 and Camino Arroyo 4.Tenth Street, between Chestnut Street and US 101 5.Luchessa Avenue, between Rossi Lane and Luchessa/Holloway Connection (Future) 6.Luchessa Avenue, between Automall Parkway and Rossi Lane 7.Luchessa Avenue, between Monterey Road and Automall Parkway 8.Monterey Road, between Tenth Street and Luchessa Avenue Study Freeway Segments 1.US 101, between SR 25 and Monterey Road 2.US 101, between Monterey and Pacheco Pass Highway 3.US 101, between Pacheco Pass Highway and Leavesley Road 4.US 101, between Leavesley Road and Buena Vista Road 5.US 101, between Buena Vista Road and Masten Avenue 6.US 101, between Masten Avenue and San Martin Avenue Study Freeway Ramps 1.US 101 at Tenth Street 2.US 101 at Monterey Road Study Scenarios The key transportation facilities will be evaluated for the following study scenarios: 7.1.a Packet Pg. 54 Attachment: EMC Planning - Camino Arroyo Subdivision Proposal (3602 : Award of Contract for CEQA Review of Planning Application AS21- Ms. Teri Wissler Adam October 7, 2021 Page 5 of 9 Existing Conditions : Existing traffic volumes on the existing roadway network. Background Conditions: Existing + approved developments on the existing roadway network. Background + Project Conditions: Existing + approved developments + project trips on the existing roadway network. Background + Project Conditions + Luchessa/Holloway Connection*: Existing + approved developments + project trips with traffic pattern changes associated with the proposed Luchessa/Holloway connection. Cumulative + Project Conditions + Luchessa/Holloway Connection*: Existing + approved developments + potential developments + project trips with traffic pattern changes associated with the proposed Luchessa/Holloway connection. 2040 General Plan No Project Conditions: Year 2040 General Plan buildout traffic volumes without the project on the General Plan roadway network (including the planned Luchessa Avenue and Rossi Lane extensions to Cameron Boulevard and Ho lloway Road, respectively). 2040 General Plan + Project Conditions: Year 2040 General Plan buildout traffic volumes + project trips on the General Plan roadway network (including the planned Luchessa Avenue and Rossi Lane extensions to Cameron Boulevard and Holloway Road, respectively). 2040 General Plan + Project Conditions + Luchessa/Holloway Connection: Year 2040 General Plan buildout traffic volumes + project trips on the General Plan roadway network (with the proposed Luchessa/Holloway connection). * The Gilroy 2040 General Plan TDF model will be utilized to obtain 2040 General Plan conditions traffic volumes without and with the project under the planned and proposed roadway network. Scope Tasks The tasks to be included in the roadway capacity analysis are described below. 1.Site Reconnaissance. The physical characteristics of the site and the surrounding roadway network will be reviewed to identify existing roadway cross-sections, intersection lane configurations, traffic control devices, and surrounding land uses. 2.Observation of Existing Conditions.Existing traffic conditions will be observed in the field in order to identify any operational deficiencies and to confirm the accuracy of calculated levels of service. 3.Data Collection. Available traffic count data at most of the study intersection is two or more years old and therefore, is considered outdated. For this reason, new AM, PM, and Saturday peak-hour intersection turn-movement traffic counts will be collected at 14 of the 17 existing study intersections (see list of intersections). Because current traffic conditions on the roadway network may be consider atypical due to the unprecedented conditions caused by the Covid19 pandemic, collected traffic count data will be compared to available pre-pandemic traffic co unts and 2020 counts to determine if the new 2021 counts are representative of what should be current traffic conditions, and/or to derive a growth factor to be applied to the available/new counts. A total of 42 new peak-hour counts will be collected at the study intersections. In addition, 24-hour mechanical (tube) counts will be collected for a minimum of three consecutive days (including Thursday,Friday, and Saturday)along the study roadway segments (8 segments). The final number of study intersections and procedure to obtain existing traffic count data will be determined in collaboration with City staff. 4.Evaluation of Existing Conditions. The existing traffic conditions at the study intersections will be evaluated with the Santa Clara County CMP level of service methodology, TRAFFIX, using current conditions peak-hour traffic volumes. 7.1.a Packet Pg. 55 Attachment: EMC Planning - Camino Arroyo Subdivision Proposal (3602 : Award of Contract for CEQA Review of Planning Application AS21- Ms. Teri Wissler Adam October 7, 2021 Page 6 of 9 5.Evaluation of Background/Approved Conditions. Traffic volumes from approved developments will be added to the existing peak-hour volumes to obtain traffic volumes for background conditions. A list of approved projects (including size, use, and location) will be obtained from the City of Gilroy Planning Division for this task. Improvements associated with approved developments will be assumed as directed by the City of Gilroy. Intersection levels of service under background conditions will be evaluated using the CMP methodology. 6.Site Traffic Projections. Based on the proposed development size and land uses, site-generated traffic will be estimated using the appropriate vehicular trip generation rates published in the latest edition of ITE’s Trip Generation. The trip estimates also will account for applicable trip reductions, such as pass-by and mixed-use reductions. 7.Trip Distribution and Assignment. The directional distribution of site-generated traffic utilized in the 2002 Regency Centers TIA will be reviewed and updated to reflect changes in the project description, anticipated service areas, proposed site access points, existing and future roadway network, travel patterns, and relative locations of complementary land uses in the area. Additionally, a trip distribution pattern for project traffic with the Luchessa/Holloway connection will be developed based on information obtained from the City’s TDF model. The site-generated traffic will be added to the roadway network based on the directions of approach and departure discussed above. 8.Evaluation of Background + Project Conditions. Project-generated traffic will be added to background traffic volumes to yield traffic volumes under background + project conditions. This scenario will assume the existing roadway network. Background plus project conditions will be evaluated for all three proposed development phases separately and collectively to identify the effect each phase would have on the adjacent roadway network.Intersection levels of service under project conditions will be evaluated using the CMP methodology. 9.Evaluation of Background + Project Conditions +Luchessa/Holloway Connection. This scenario assumes the proposed Luchessa/Holloway connection would be implemented providing a second access route to/from the project site.Traffic pattern changes associated with the Luchessa/Holloway connection will be developed using the Gilroy TDF model and applied to background traffic volumes. Project-generated traffic (with the Luchessa/Holloway connection) will be added to the redistributed background traffic volumes to yield traffic volumes under background plus project conditions with the Luchessa/Holloway connection. All three proposed development phases will be evaluated separately and collectively to identify the effect each phase would have on the adjacent roadway network. This scenario will identify the effect of providing a second access route on traffic operations with the project on the surrounding roadway network. 10.Evaluation of Cumulative Plus Project Conditions +Luchessa/Holloway Connection. This scenario represents traffic conditions with buildout of the proposed project as well as all other approved and potential projects in the area on the future roadway network, including the proposed Luchessa/Holloway connection. This scenario will identify the project’s contribution to the need for the second access route (Luchessa/Holloway connection). 11.Evaluation of General Plan Conditions. A level of service analysis under 2040 General Plan conditions without and with the project will be conducted. The General Plan scenarios will evaluate traffic conditions under the 2040 General Plan Buildout conditions on the planned roadway network (including the planned Rossi Lane extension between Luchessa Avenue and Holloway Road)without the project and compare them to traffic conditions with the proposed project, as evaluated in the recently completed General Plan update. Traffic volumes for General Plan conditions will be obtained from the City’s traffic demand forecasting model. Intersection levels of service under General Plan conditions will be evaluated using the CMP methodology. 7.1.a Packet Pg. 56 Attachment: EMC Planning - Camino Arroyo Subdivision Proposal (3602 : Award of Contract for CEQA Review of Planning Application AS21- Ms. Teri Wissler Adam October 7, 2021 Page 7 of 9 12.Evaluation of General Plan Conditions + Luchessa/Holloway Connection.This scenario will evaluate General Plan with project conditions with the proposed Luchessa/Holloway connection.The Luchessa/Holloway connection would replace the planned Rossi Lane extension as it is coded in the Gilroy General Plan TDF model. This scenario will identify the effect of the proposed change in the planned roadway network on General Plan traffic conditions. 13.Roadway Segment Analysis. Future conditions along each of the studied roadway segments will be evaluated using average daily traffic (ADT)volumes (obtained from new tube counts and from the TDF model)to identify the potential traffic pattern changes associated with the proposed Luchessa/Holloway connection and its effects on the planned roadway network. 14.Signal Warrant Analysis.The need for future signalization of the unsignalized study intersections will be evaluated on the basis of the Peak Hour Warrant (Warrant 3 –Part B) in the California Manual on Uniform Traffic Control Devices. The warrant will be evaluated using peak-hour volumes for all study scenarios. 15.Freeway Segment Analysis. Freeway level of service will be determined in accordance with the Santa Clara County CMP guidelines for freeway analyses. The analysis will include evaluation of AM and PM peak-hour freeway conditions for existing and project conditions. Deficiencies to freeway segments caused by the project, if any, will be identified. 16.Freeway Ramp Analysis. Existing traffic volumes at the study freeway ramps will be obtained from the existing traffic count data. Field measurements of existing vehicular queues and ramp meter rates will be completed and supplemented with previously collected data at the study freeway ramps. The freeway ramp analysis will evaluate the effects of project traffic on traffic volumes and queue lengths at the study freeway ramps. 17.Evaluation of Vehicle Queue. For selected locations specified by City staff and/or where the project is projected to add a significant number of turning traffic, the adequacy of existing storage at turn pockets will be assessed by means of comparison with expected maximum vehicle queues. 18.Site Access, On-Site Circulation, and Parking Analysis. A review of the project site plan will be performed to determine if adequate site access and on-site circulation are provided and to identify any access or circulation issues that should be improved. This will include a quantitative analysis of the anticipated traffic volumes at the site’s driveways, as well as a qualitative analysis of the proposed site access and site layout. The review will be based on the site’s overall anticipated trip generation and consider the following: sight distance, vehicle queuing at site access intersections and on-site, traffic control requirements, driveway locations and alignment, on-site layout and circulation, and pedestrian access and circulation. Additionally, the proposed parking supply on the site will be compared to City parking requirements and documented in the traffic report. 19.Bicycle, Pedestrian, and Transit Facilities. A qualitative analysis of the project’s effect on transit service and bicycle/pedestrian circulation in the study area will be conducted. Bicycle and pedestrian circulation will be reviewed for consistency with the City’s General Plan, the Bicycle/Pedestrian Transportation Plan, and the Complete Streets Policy. Connectivity between the project site and the adjacent land uses,as well as pedestrian circulation within the project area, will be reviewed and possible improvements identified, if necessary. 20.Description of Impacts and Recommendations. Based on the results of the above analyses, deficiencies to the roadway network as the result of the site-generated traffic will be identified. Recommendations will be formulated that identify the locations and types of improvements or modifications necessary to mitigate significant project impacts. Improvements could include street 7.1.a Packet Pg. 57 Attachment: EMC Planning - Camino Arroyo Subdivision Proposal (3602 : Award of Contract for CEQA Review of Planning Application AS21- Ms. Teri Wissler Adam October 7, 2021 Page 8 of 9 widenings, lane additions, changes in lane usage, addition of traffic signals, or modifying existing traffic signals. 21.Reports. Our findings and recommendations will be summarized in an administrative draft report for review by the City Transportation Engineer. Hexagon Transportation Consultants will respond to editorial comments on the administrative draft and prepare a draft report for review by the environmental consultant and/or City Planning staff. Comments received on the draft report will be addressed and a final traffic report will be developed. 22.Response to Comments. Hexagon will assist the City and the environmental consultant in responding to comments on the traffic section of the EIR. The fee estimate includes up to 16 hours of Hexagon staff time to responding to EIR comments. 23.Meetings. Our cost estimate includes Hexagon staff attendance at up to three meetings with City and/or project team in connection with the project. In addition, budget has been allocated for attendance at one meeting with Caltrans in connection with the project.Additional meetings will require authorization and additional budget. 24.Public Meetings. Our cost estimate includes Hexagon staff attendance at two public meetings (one Planning Commission meeting and one City Council meeting) in connection with this project. Additional meetings will require authorization and additional budget. ADDITIONAL SERVICES Any work not specifically referenced in the above Scope of Services—for example,analyzing a different project description, analyzing additional intersections or scenarios, analyzing different phases of development, attending additional meetings, and providing engineering drawings or cost estimates for mitigation measures—shall be considered additional services.Additional services will require additional budget and time. TIME OF PERFORMANCE We are prepared to start work on this project immediately upon notice to proceed. Barring any unforeseen delays, the administrative draft report will be submitted twelve weeks after (1) authorization to proceed, (2) receipt of all requested project information from the project applicant, and (3) receipt of all data provided or required by the City.The draft and final reports will each be delivered one week after receipt of all respective review comments. COST OF SERVICES The cost for services rendered under this agreement (VMT evaluation and Work Items 1 through 24 associated with the roadway capacity analysis), as outlined above, will be billed on a time and expenses basis, not to exceed $79,975, which includes $9,525 in data collection.Billing will be conducted monthly, on a percent complete basis.Additional Services shall be provided upon authorization and, if requested, will be billed separately. This price quote is good for 30 days and assumes that all project-related activities will be completed within one year. Extended project schedules will require additional budget for project administration. 7.1.a Packet Pg. 58 Attachment: EMC Planning - Camino Arroyo Subdivision Proposal (3602 : Award of Contract for CEQA Review of Planning Application AS21- Ms. Teri Wissler Adam October 7, 2021 Page 9 of 9 We appreciate your consideration of Hexagon Transportation Consultants for this assignment. If you have any questions, please do not hesitate to call. Sincerely, HEXAGON TRANSPORTATION CONSULTANTS, INC. Gicela Del Rio, T.E. Senior Associate 7.1.a Packet Pg. 59 Attachment: EMC Planning - Camino Arroyo Subdivision Proposal (3602 : Award of Contract for CEQA Review of Planning Application AS21- B ATTACHMENT Environmental Noise Assessment Scope of Work 7.1.a Packet Pg. 60 Attachment: EMC Planning - Camino Arroyo Subdivision Proposal (3602 : Award of Contract for CEQA Review of Planning Application AS21- Aviation Noise Studies ꞏ Community Noise ꞏ Architectural Acoustics ꞏ Environmental Noise Assessments 113 N. Church Street, Suite 203 ∙ Visalia, CA 93291∙ (559) 627-4923 1529 (Camino Arroyo Development Project, Gilroy)  October 4, 2021    Teri Wissler Adam  Senior Principal  EMC PLANNING GROUP INC.  301 Lighthouse Avenue, Suite C  Monterey, California 93940      RE: ENVIRONMENTAL NOISE ASSESSMENT, CAMINO ARROYO DEVELOPMENT PROJECT, GILROY, CALIFORNIA   Dear Ms. Wissler Adam:    Based upon the information you have provided, WJV Acoustics, Inc. (WJVA) is pleased to submit  this proposal to prepare an environmental noise assessment for the above‐referenced project.  Following is a description of our proposed scope of services, fee and schedule for completion.    Scope of Services:   1.  Conduct a project site inspection to evaluate the acoustical characteristics of the project  site and surrounding area, note the locations of nearby noise‐sensitive receptors and  identify existing noise sources in the project area. Conduct ambient noise monitoring  at representative  locations  throughout  the  project  vicinity  that  could  have  potential  noise‐related conflicts as a result of the proposed project. It is anticipated that continuous  24‐hour ambient noise measurements will be conducted at up to two (2) locations using  automated noise monitors and that short‐term sampling of ambient noise levels will be  conducted at up to four (4) additional sites.     2.  Analyze  potential  project‐related  changes  in  roadway  traffic noise exposure along  roadways near or adjacent to the project site. Calculations will be performed using the  FHWA Highway Traffic Noise Prediction Model and traffic data to be obtained from the  project traffic engineer or other sources as may be appropriate. Compare project‐related  changes in traffic noise exposure to applicable City of Gilroy noise level standards and  other thresholds of significance.  7.1.a Packet Pg. 61 Attachment: EMC Planning - Camino Arroyo Subdivision Proposal (3602 : Award of Contract for CEQA Review of Planning Application AS21- Teri Wissler Adam  Senior Principal  EMC PLANNING GROUP INC.  October 4, 2021  Page 2    1529 (Camino Arroyo Development Project, Gilroy)  3.  Evaluate potential noise impacts from the project including 1) noise levels from existing  noise sources as they may affect the proposed development, and 2) noise levels resulting  from development of the project as they may affect existing and proposed noise‐sensitive  uses in the project area.     4.  If available, review the construction plans for the proposed hotels to determine the  outdoor‐to‐indoor noise level reduction (NLR) that would be expected from the proposed  building. Recommend additional sound attenuation measures if required for compliance  with the applicable City of Gilroy and California Building Code (CalGreen) interior noise  level  standards.  Alternatively,  calculate  the  required  NLR  of  the hotel façade if  construction details are not available at the time the analysis is prepared.     5.  Quantify noise and vibration levels that would likely occur during construction of the  project as they could affect nearby existing or planned noise‐sensitive receptors. Identify  nearby existing or planned noise‐sensitive receptors that could be subjected to noise or  vibration levels in excess of applicable noise standards or CEQA thresholds as a result of  the project construction.    6.  Prepare recommendations for noise mitigation as may be required to reduce significant  noise impacts to less‐than‐significant. Significance will be based on City of Gilroy noise  standards and the CEQA Guidelines criteria. Identify any significant project‐related noise  impacts that cannot be reasonably mitigated.    7.  Prepare  a  written  technical  report  summarizing  the  methods, findings  and  recommendations of the study. The report and associated exhibits will be formatted to  facilitate incorporation into the CEQA documents being prepared for the project.  Fee:   WJVA proposes to provide the services described above for a total fee of $8,850, including  expenses. Attendance of meetings or hearings, if required, would be subject to additional charges  based upon the enclosed Fee Schedule plus expenses. Full payment for services rendered will be  due upon submittal of the completed report.    7.1.a Packet Pg. 62 Attachment: EMC Planning - Camino Arroyo Subdivision Proposal (3602 : Award of Contract for CEQA Review of Planning Application AS21- Teri Wissler Adam  Senior Principal  EMC PLANNING GROUP INC.  October 4, 2021  Page 3    1529 (Camino Arroyo Development Project, Gilroy)  Schedule For Completion:   Work will be scheduled for completion in compliance with the overall project schedule. It is  anticipated that the noise study will be completed within 30 days after receipt of all necessary  maps, traffic data, project information and the notice‐to‐proceed.    We are looking forward to the possibility of working with you on this project. Please do not  hesitate to contact me at (559) 627‐4923 or walter@wjvacoustics.com if you have any questions  or would like additional information.    Sincerely,    WJV ACOUSTICS, INC.        Walter J. Van Groningen    President    WJV:wjv    Enclosure:   Fee Schedule 7.1.a Packet Pg. 63 Attachment: EMC Planning - Camino Arroyo Subdivision Proposal (3602 : Award of Contract for CEQA Review of Planning Application AS21- City of Gilroy STAFF REPORT Agenda Item Title: Approval of a Fiscal Year 2021-2022 Budget Amendment Increasing Appropriations in the Amount of $63,502 and Award of a Contract to Burkett's Pool Plastering Inc. for a Base Bid amount of $280,457, with a contingency of $28,045 for the Christopher High School Activity Pool Re-Plaster, Project No. 22-ASD-271. Meeting Date: January 10, 2022 From: Jimmy Forbis, City Administrator Department: Administrative Services Submitted By: LeeAnn McPhillips Prepared By: Walter Dunckel Walter Dunckel Strategic Plan Goals ☐ Develop a Financially Resilient Organization ☐ Ensure Neighborhood Equity from City Services ☐ Promote Economic Development Activities ☐ Promote Safe, Affordable Housing for All  Maintain and Improve City Infrastructure RECOMMENDATION a. Adopt a resolution of the City Council of the City of Gilroy amending the FY 22 budget to transfer $63,502 from Capital Projects Fund (400) to Facilities Fund (651) and appropriate the related expenditure for the Pool Replaster project. b. Award a contract to Burkett's Pool Plastering Inc. for the base bid price of $280,457 for the Christopher High School Activity Pool Re -plaster, Project No. 22-ASD-271, establish a contingency of up to $28,045 (10%), and authorize the City Administrator to execute the contract and associated documents. 7.2 Packet Pg. 64 EXECUTIVE SUMMARY The City maintains the Christopher High School Activity Pool as part of a shared use agreement with Gilroy Unified School District. The cost of repairs and maintenance of the Activity Pool is solely the City’s responsibility. The Activity Pool was built in 2011 and opened in 2012. Re-Plastering is required every 10 to 15 years, and we have been experiencing plaster issues for a few years. These plaster issues could cause the pool to be shut down by the Santa Clara County Health Department if not addressed. As areas of the pool’s plaster crack, the City has been required to perform temporary repairs. Temporary repairs are no longer an option and resurfacing is required at this time. BACKGROUND In June of 2021 Council approved a budget item to resurface the Activity Pool for an amount of $245,000, which was the engineer’s estimate for this project at that time. In November 2021, staff issued an advertisement for bids for the project. In December, staff received one bid. Burkett’s Pool Plastering Inc. submitted a bid in the amount of $280,457. ANALYSIS Staff advertised bids on November 5, 2021 and were opened on Wednesday, December 1, 2021. The City received a single bid from Burkett’s Pool Plastering Inc. with a base bid of $280,457. The bid exceeds the engineer’s estimate by 14%. At this time, staff does not believe rebidding the project will result in additional or lower bids. Also, the work needs to proceed for the City intends to operate the Activity Pool this summer. ALTERNATIVES Council may reject staff’s recommendation and not award the bid. As mentioned above, the plaster has ongoing issues that temporary repairs are no longer sufficient to address. FISCAL IMPACT/FUNDING SOURCE The base bid is $280,457 and staff recommends including a 10% contingency of $28,045, for a total allocation of $308,502. Council appropriated funds in the amount of $245,000 on June 7, 2021, with the adoption of the biennial budget within the Facilities Fund (651). Staff recommends the remaining balance of $63,502 to be covered by the Capital Project Fund (400) which has adequate fund balance to fully fund the project. The budget amendment will authorize the transfer of $63,302 from Capital Projects Fund (400) to the Facilities Fund (651) and appropriate the additional expenditure in the Facilities Fund (651). 7.2 Packet Pg. 65 Staff recommends that the City Council adopt a resolution to amend the budget for resurfacing the activity pool ($63,502) to appropriate $308,502 for this project for the reasons cited above. CONCLUSION Staff requests City Council’s approval of a contract with Burkett’s Pool Plastering Inc. for the Christopher High School Activity Pool Re-Plastering Project No. 22-ASD-271, establish the appropriate project contingency, and authorize the City Administrator to execute the contract and associated documents. The contingency amount is intended to account for unforeseen conditions or necessary field changes in the scope of work during the resurfacing process. If the contingency is not needed, it will not be expended. Attachments: 1. Draft Budget Amendment Resolution - CHS Activity Pool Resurfacing Project Jan 2022 7.2 Packet Pg. 66 RESOLUTION NO. 2022-XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY AMENDING THE ADOPTED BUDGET FOR FISCAL YEAR 2021-2022 TO APPROPRIATE $63,503 FROM CAPITAL PROJECTS FUND (400) AS TRANSFER OUT TO FACILITIES FUND (651) AND INCREASE THE REVENUE AND EXPENDITURE APPROPRIATIONS IN FACILITIES FUND (651) BY $63,503 FOR THE CHRISTOPHER HIGH SCHOOL ACTIVITY POOL RESURFACING PROJECT WHEREAS, the City Council adopted a budget for the City of Gilroy for the Fiscal Year 2021-2022 on June 7, 2021; and WHEREAS, City Staff has prepared and submitted to the City Council, in the staff report dated January 10, 2022, a proposed amendment to said budget for Fiscal Year 2021-2022. The purpose of such amendment is to appropriate $63,503 from Capital Projects Fund (400) as a transfer out to Facilities Fund (651) and increase the revenue and expenditure appropriation in Facilities Fund (651) by $63,503, for the Pool re-surfacing project. WHEREAS, the City Council has carefully examined and considered the same and is satisfied with said budget amendments. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GILROY DOES HEREBY FIND, DETERMINE, RESOLVE AND ORDER AS FOLLOWS: Section 1. Recitals. The City Council does hereby find, determine, and resolve that all of the foregoing recitals are true and correct. Section 2. Approval and Authorization. The City Council does further resolve, order and/or direct as follows: a. That the City’s previously adopted Fiscal Year 2021-2022 Budget, as the same has been amended to date, is hereby further amended; and b. That the City Clerk is hereby authorized and directed to forward a copy of this Resolution to the City’s Finance Director, who is hereby authorized and directed to take all actions necessary to implement the terms of this Resolution pertaining to the Fiscal Year 2021-2022 Budget of City. Section 3. This Resolution shall take effect immediately upon adoption. 7.2.a Packet Pg. 67 Attachment: Draft Budget Amendment Resolution - CHS Activity Pool Resurfacing Project Jan 2022 (3585 : CHS Activity Pool Resurfacing PASSED, APPROVED, AND ADOPTED by the City Council of the City of Gilroy at its meeting held on this 10TH day of January 2022 by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: APPROVED: Marie Blankley, Mayor ATTEST: Thai Nam Pham, City Clerk 7.2.a Packet Pg. 68 Attachment: Draft Budget Amendment Resolution - CHS Activity Pool Resurfacing Project Jan 2022 (3585 : CHS Activity Pool Resurfacing City of Gilroy STAFF REPORT Agenda Item Title: Streamline Consolidation of the City's Boards and Commissions Meeting Date: January 10, 2022 From: Jimmy Forbis, City Administrator Department: Administration Submitted By: Jimmy Forbis Prepared By: Jimmy Forbis Bryce Atkins Strategic Plan Goals ☐ Develop a Financially Resilient Organization ☐ Ensure Neighborhood Equity from City Services ☐ Promote Economic Development Activities ☐ Promote Safe, Affordable Housing for All ☐ Maintain and Improve City Infrastructure RECOMMENDATION Council: a) Adopt A Resolution of the City Council of the City of Gilroy Consolidating the Housing and Neighborhood Revitalization Committee, Historic Heritage Committee, and the Street Naming Committee, and Placing Their Associated Board Functions Under the Authority of the Planning Commission. b) Motion to read the ordinance by title only and waive further reading. c) Introduce an Ordinance of the City Council of the City of Gilroy Consolidating the Bicycle Pedestrian Commission and Placing Their Associated Board Functions for Infrastructure Planning and Development Review Under the Authority of the Planning Commission, and the Associated Board Functions for Education and Encouragement Activities Under the Authority of the Parks and Recreation Commission. 9.1 Packet Pg. 69 BACKGROUND At the December 13, 2021 Regular Council Meeting, as directed to Council, staff returned to Council for approval of the full streamline option, with the modification to retain the Youth Commission. The full history of this item is contained in the December 13, 2021 Council staff report, attached to this agenda item. At the December 13, 2021 meeting Council directed staff to return to Council with some follow-up information to consider the consolidation approach to the City’s boards and commissions. INFORMATION FOR CONSIDERATION Below is the data in question for consideration of the consolidation. Number of boards comparison of cities with similar general tax revenues for 2020, including Hollister and Morgan Hill Entity Name Total Taxes - General Revenues Boards FTEs FTE to Board Ratio Hollister $ 24,735,393 6 193 32 Morgan Hill $ 28,463,397 4 183 46 Camarillo $ 39,086,937 5 147 29 Jurupa Valley $ 39,348,889 3 65 22 Campbell $ 39,654,505 9 193 21 Whittier $ 39,941,838 17 486 29 La Habra $ 40,121,603 7 265 38 South Lake Tahoe $ 40,507,469 7 195 28 San Ramon $ 40,795,810 14 278 20 La Mesa $ 40,860,802 13 263 20 Poway $ 41,350,363 3 228 76 Norwalk $ 42,505,668 10 269 27 Gilroy $ 42,560,015 13 258 20 Gardena $ 42,732,414 10 423 42 La Quinta $ 43,753,786 5 86 17 Brea $ 44,088,008 6 352 59 Merced $ 44,104,438 9 507 56 Emeryville $ 45,042,890 10 170 17 Monterey $ 45,463,003 9 427 47 Hemet $ 45,920,828 6 303 51 Woodland $ 46,607,332 10 317 32 National City $ 46,878,982 9 331 37 Cathedral City $ 47,796,502 8 199 25 Average $ 42,855,385 9 275 34 9.1 Packet Pg. 70 This table uses data from the State Controller’s Office listing California cities with the next ten higher and lower general tax revenues. Board numbers came from each city’s website, excluding joint power authority boards, Council-only boards, and former redevelopment agency boards. Full-time equivalents (FTEs) came from their latest, posted adopted budgets. The average number of boards for the comparis on cities is nine. Number of board members removed due to the number of absences in 2021 In 2021, there were five members removed from commissions and committees for absences. It should be noted that most meetings held in 2021 were conducted virtually. By board, below are the numbers: • Arts and Culture Commission – two members • Physically Challenged Board of Appeals – two members • Housing and Neighborhood Revitalization Committee – one member Total absences Over the span of 2021, the total number of documented absences was 63. Of these, 32 were documented as excused, while the remaining 31 were marked as unexcused. Below is a breakdown of the absences by type and board. Board Excused Absences Other Absences Total Absences Arts and Culture Commission 3 7 10 Bicycle Pedestrian Commission 3 0 3 Building Board of Appeals 0 0 0 Historic Heritage Committee 2 5 7 Housing and Neighborhood Revitalization Committee 2 5 7 Library Commission 2 2 4 Open Government Commission 1 2 3 Parks and Recreation Commission 4 1 5 Personnel Commission 6 1 7 Physically Challenged Board of Appeals 1 0 1 Planning Commission 5 2 7 9.1 Packet Pg. 71 Board Excused Absences Other Absences Total Absences Street Naming Committee 0 0 0 Youth Commission 3 6 9 TOTAL 32 31 63 Number of board vacancies and recruitments in 2021 At the beginning of the year with the annual call for applicants heard on the January 4, 2021 Council Meeting, the following vacancies and applications were considered, with no recruitments for the Street Naming Committee nor the Youth Commission: Board Seats Applicants Arts and Culture Commission 2 1 Bicycle Pedestrian Commission 3 6 Building Board of Appeals 2 0 Historic Heritage Committee 2 4 Housing and Neighborhood Revitalization Committee 2 8 Library Commission 2 1 Open Government Commission 3 4 Parks and Recreation Commission 2 4 Personnel Commission 1 4 Physically Challenged Board of Appeals 1 0 Planning Commission 3 10 Street Naming Committee N/A N/A Youth Commission N/A N/A Since the annual recruitment process, there were additional calls for applicants due to resignations or removals, a total of seven rounds including the Youth Commission’s annual recruitment. Below is the list of recruitments and applications heard by Council: 1. February 1st Council Meeting – continued recruitments due to no or limited applicants in the annual process: 9.1 Packet Pg. 72 o Pre-existing Vacancies ▪ Arts and Culture Commission – one applicant for one seat ▪ Building Board of Appeals – three applicants for two seats ▪ Library Commission – three applicants for one seat ▪ Physically Challenged Board of Appeals o Additional vacancies ▪ Housing and Neighborhood Revitalization Committee (2 new vacancies) – four applicants for two seats 2. April 5th Council Meeting – vacancy on Planning Commission. Used remaining seven applicants from annual recruitment, no separate recruitment conducted 3. May 17th Council Meeting – one new vacancy on Parks and Recreation Commission for a member who relocated. Four applications for one seat. 4. August 16th Council Meeting – five new vacancies, one resignation and four members dismissed due to excessive unexcused absences. o Resignation ▪ Library Commission – one applicant for one seat o Unexcused Absences ▪ Arts and Culture Commission – one applicant for one seat ▪ Housing and Neighborhood Revitalization Committee – one applicant for one seat ▪ Physically Challenged Board of Appeals – one applicant for two seats 5. September 20th Council Meeting – one new vacancy on Planning Commission – one applicant for one seat 6. October 4th and 18th Council Meetings – Youth Commission regular recruitment – nine applicants for five seats (fifth seat realized and appointed at the meeting on October 18th) 7. November 15th Council Meeting – three vacancies o Housing and Neighborhood Revitalization Committee – four applicants for one seat o Open Government Commission – two applicants for one seat o Physically Challenged Board of Appeals – no applicants for one seat – 9.1 Packet Pg. 73 rolled into new year’s annual recruitment process Although there were seven recruitments, the number of Council interactions for these recruitments were greater. Each recruitment initiates with a Council action, typically on consent calendar, to open the recruitment for the vacant seat(s). Council then typically conducts an interview with candidates, then at a later meeting appoint selected residents to the vacant seat(s). 20 agenda items relating to board recruitments were brought to Council in 2021. Historical number of boards in Gilroy In a review of the City Clerk records, the furthest back identifiable data on boards is the adoption of the Charter in 1960, where four commissions were established. Since then, boards have been added throughout the years. The dates are from enacting ordinances, or recorded minutes. The Street Naming Committee enactment could not be found, so the earliest found reference in minutes was used. Year Number of Boards 1960 4 1971 5 1976 6 1984 7 1990 8 1995 10 2000 11 2005 12 2008 13 2009 14 2014 15 2019 13 The boards have been increasing, but not decreasing until the first consolidation in 2019. Board meetings in 2021 Below is a table showing the board meetings that were held in 2021. The column for meetings scheduled include regular meetings and special meetings called by the board. Some boards pre-plan to go “dark” for certain months, which is why some are less than the 12 monthly meetings contained in the Charter. The column for meetings cancelled are those that were not held as planned. Cancellations can be for several reasons including lack of business, lack of quorum, a rescheduled meeting, or a special meeting where the need or reason for the meeting no longer existed. 9.1 Packet Pg. 74 Board Meetings Scheduled Meetings Held Meetings Cancelled Arts and Culture Commission1 11 10 1 Bicycle Pedestrian Commission 12 9 3 Building Board of Appeals 0 0 0 Historic Heritage Committee 12 8 4 Housing and Neighborhood Revitalization Committee 13 9 4 Library Commission 5 5 0 Open Government Commission 5 3 2 Parks and Recreation Commission2 11 10 1 Personnel Commission 12 5 7 Physically Challenged Board of Appeals 4 1 3 Planning Commission 16 12 4 Street Naming Committee 0 0 0 Youth Commission 8 8 0 Boards’ staff time consumption in 2021 Below are the estimates from the staff liaisons regarding the number of hours of staff time that were given to each board and commission. As staff does not document eac h hour of every staff members’ work, these are estimates. Those with special notes are identified below the table. Board Staff Hours Arts and Culture Commission 165 Bicycle Pedestrian Commission 103 1 ACC had 10 regular meetings scheduled, but one was cancelled and was rescheduled to a special meeting. 2 PRC had scheduled 10 regular meetings, but added a special meeting pertaining to Pic kleball, which was cancelled before being held. This committee’s regularly scheduled meetings were all held. 9.1 Packet Pg. 75 Board Staff Hours Building Board of Appeals 2 Historic Heritage Committee 54 Housing and Neighborhood Revitalization Committee 287 Library Commission 25 Open Government Commission Data not Available Parks and Recreation Commission 200 Personnel Commission 65 Physically Challenged Board of Appeals 24 Planning Commission 234 Street Naming Committee 0 Youth Commission 120 1. Open Government Commission. The staff that had supported the Open Government Commission meetings is no longer with the City. There are no estimates currently for time staff spends in support of this commission. 2. Planning Commission. Planning Commission hours are purely time preparing for and attending meetings. Unlike other boards, Planning Commission is a discretionary board and has significant work generated from project applicants. The work on the projects themselves in review and preparation for the meetings are not included in this estimate but are significant. 3. Street Naming Committee. This committee meets only as needed and has not had a meeting in 2021. Reduction in staffing During and due to the pandemic, the City had to reduce staffing throughout the City. Pre-pandemic, the City’s authorized full-time staffing for Fiscal Year 2020-2021 was 284 positions. In the Fiscal Year 2021-22 adopted budget, the City’s authorized staffing is 258, a decrease in staffing by 9%. While the budget authorized additional positions, the amended staffing for Fiscal Year 2020 -2021 after the start of the pandemic reduced staffing to 246 full-time positions. Staff is currently conducting recruitments and will be continuing to recruit for positions throughout the year. However, this means that the full staffing of 258 has not yet been reached. Currently there are 233 full-time staff 9.1 Packet Pg. 76 employed, an effective reduction of 18% from the pre-COVID 2021 authorized staffing, and current staffing is 10% below the authorized staffing for FY22 . With fewer staffing, and many of these reduced positions being office and management staffing, there is more tasks that each remaining staff member must take on, creating less capacity to serve in support of the boards and commissions. CONSOLIDATION PLAN As a summary of the plan contained in the previous staff report, the proposal is to consolidate four boards as identified below, and move their functions to other commissions: 1. Historic Heritage Committee – move duties to Planning Commission. 2. Housing and Neighborhood Revitalization Committee – move duties to Planning Commission. 3. Street Naming Committee – move duties to Planning Commission. 4. Bicycle Pedestrian Commission – move infrastructure planning and development review duties to the Planning Commission, and the education and encouragement duties to the Parks and Recreation Commission. The consolidated boards would have six months to wind down their operations and transition the work to the commission inheriting their duties. The implementation plan for each board will be unique, and developed between the chairs and staff liaisons, coordinating with their equivalents in the inheriting commission. The implementation plans and updates would be shared with the City Council via e-mail updates on the progress of any consolidations approved by Council. ALTERNATIVES Council may choose to accept, reject, or modify the staff recommendation. FISCAL IMPACT/FUNDING SOURCE No cost increases are anticipated from this action. There will be some cost savings, but the amount is not known at this time. There will be more significant staff time and resource savings, as other work can be performed with the staff time and resources saved from the number of board and commission meetings being reduced. CONCLUSION With the consolidation of the four Commissions the demand for Commissioners and staff will be reduced. It will reduce the number of commissioners that would need to be recruited, as well as reducing City resource consumption and staff time, which will be made available for other tasks that are assigned to the staff liaisons and board secretaries. 9.1 Packet Pg. 77 NEXT STEPS Depending upon Council’s action(s), staff will bring back the second reading and adoption of the ordinance for the consolidation of the Bicycle Pedestrian Commission. Staff will also commence collaboration with each of the staff liaisons to the Commissions to start the transition planning process, as well as preparing the remaining Commissions to undertake any new functions assigned to them. PUBLIC OUTREACH Any action undertaken by Council will be relayed in the City’s community engagement messaging, as well as updates as the functions transition from one Commission to another. The December 17, 2021 staff report was transmitted to all board members on December 22, 2017, advising the City’s board members that they will also receive this staff report when finalized. Attachments: 1. Draft Resolution - Committee Consolidation 2. Draft Ordinance - Bicycle Pedestrian Commission 3. Streamline Consolidation Staff Report - December 13, 2021 9.1 Packet Pg. 78 Resolution No. 2022-XX Page 1 of 2 January 10, 2022 RESOLUTION NO. 2022-XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY CONSOLIDATING THE HOUSING AND NEIGHBORHOOD REVITALIZATION COMMITTEE, HISTORIC HERITAGE COMMITTEE, AND THE STREET NAMING COMMITTEE, AND PLACING THEIR ASSOCIATED BOARD FUNCTIONS UNDER THE AUTHORITY OF THE PLANNING COMMISSION WHEREAS, the Housing and Neighborhood Revitalization Committee, Historic Heritage Committee, and the Street Naming Committee are the three committees in operation out of the combined thirteen (13) boards, commission, and committees for the City; and WHEREAS, the City’s current thirteen (13) boards, commissions and committees, each require extensive staff support, whether or not the body has a full membership, business to conduct, or is able to achieve a quorum for its meetings; and WHEREAS, the City Council initiated a future Council agenda item on September 13, 2021 for an agenda item to staff to create a more efficient and effective structure for the City’s boards and commissions; and WHEREAS, on November 15, 2021, staff presented a report with options that had been developed as of that time. At that meeting, Council directed staff to proceed with the full streamline option of consolidating the City’s boards, committees and commissions, and return to Council on December 13th with an agenda item to adopt the consolidation; and WHEREAS, the City Council desires to consolidate the City’s Housing and Neighborhood Revitalization Committee, Historic Heritage Committee, and the Street Naming Committee with the Planning Commission. NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Gilroy as follows: 1. The Housing and Neighborhood Revitalization Committee, the Historic Heritage Committee, and the Street Naming Committee are hereby scheduled to be consolidated to the Planning Commission, effective June 30, 2022, or such earlier time as determined by the committees. 2. City staff is to wind down and transfer the activities of these committees in an expeditious manner which shall be completed no later than June 30, 2022, and as of the date of each such transfer, the terms of all sitting members of each respective committee shall come to an end. 9.1.a Packet Pg. 79 Attachment: Draft Resolution - Committee Consolidation (3619 : Commission Consolidation) Resolution No. 2022-XX Page 2 of 2 January 10, 2022 PASSED AND ADOPTED this 10th day of January 2022, by the following roll call vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: APPROVED: Marie Blankley, Mayor ATTEST: Thai Nam Pham, City Clerk 9.1.a Packet Pg. 80 Attachment: Draft Resolution - Committee Consolidation (3619 : Commission Consolidation) Ordinance No. 2022-XX Page 1 of 2 January 24, 2022 ORDINANCE NO. 2022-XX AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GILROY CONSOLIDATING THE BICYCLE PEDESTRIAN COMMISSION AND PLACING ITS ASSOCIATED COMMISSION FUNCTIONS FOR INFRASTRUCTURE PLANNING AND DEVELOPMENT REVIEW UNDER THE AUTHORITY OF THE PLANNING COMMISSION, AND THE ASSOCIATED COMMISSION FUNCTIONS FOR EDUCATION AND ENCOURAGEMENT ACTIVITIES UNDER THE AUTHORITY OF THE PARKS AND RECREATION COMMISSION. WHEREAS, the City of Gilroy currently has a total of thirteen (13) boards, commissions and committees, each requiring extensive staff support, whether or not the body has a full membership, business to conduct, or is able to achieve a quorum for its meetings; and WHEREAS, the Bicycle Pedestrian Commission is one of the City’s Commissions which are not required pursuant to the Gilroy City Charter; and WHEREAS, City Council initiated a future Council agenda item on September 13, 2021 for an agenda item to staff to create a more efficient and effective structure for the City’s boards and commissions; and WHEREAS, on November 15, 2021, staff presented a report with options that had been developed as of that time. At that meeting, Council directed staff to proceed with the full streamline option of consolidating the City’s boards, committees and commissions, and return to Council on December 13th with an agenda item to adopt the consolidation; and WHEREAS, the City Council desires to consolidate the Bicycle Pedestrian Commission with the duties being consolidated with either the Planning or Parks and Recreation Commissions, based on the subject matter jurisdiction. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GILROY DOES ORDAIN AS FOLLOWS: SECTION I The Bicycle Pedestrian Commission (Commission) is scheduled to be consolidated. Ordinances Nos. 2009-03 and 2018-14, which established the Commission will be repealed in their entirety and no longer in effect after June 30, 2022, or such earlier time as determined by the Commission. 9.1.b Packet Pg. 81 Attachment: Draft Ordinance - Bicycle Pedestrian Commission (3619 : Commission Consolidation) Ordinance No. 2022-XX Page 2 of 2 January 24, 2022 SECTION II City staff are to wind down and transfer the activities of this Commission in an expeditious manner which shall be completed no later than June 30, 2022, and as of the date of such transfer, the terms of all sitting Commissioners shall come to an end. The functions and duties shall be transferred to the Planning Commission and Parks and Recreation Commission, in a manner to maximize efficiency and effectiveness within the associated subject matter jurisdiction of each Commission. SECTION III If any section, subsection, sentence, clause or phrase of this Ordinance is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Gilroy hereby declares that it would have passed and adopted this ordinance, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases may be declared invalid or unconstitutional. SECTION IV This Ordinance shall take effect thirty (30) days after its adoption. The City Clerk is hereby directed to publish this Ordinance or a summary thereof pursuant to Government Code Section 36933. PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF GILROY this 24th day of January, 2022 by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: APPROVED: Marie Blankley, Mayor ATTEST: Thai Nam Pham, City Clerk 9.1.b Packet Pg. 82 Attachment: Draft Ordinance - Bicycle Pedestrian Commission (3619 : Commission Consolidation) City of Gilroy STAFF REPORT Agenda Item Title: Streamline Consolidation of the City's Boards and Commissions Meeting Date: December 13, 2021 From: Jimmy Forbis, City Administrator Department: Administration Submitted By: Jimmy Forbis Prepared By: Bryce Atkins Strategic Plan Goals ☐ Develop a Financially Resilient Organization ☐ Ensure Neighborhood Equity from City Services ☐ Promote Economic Development Activities ☐ Promote Safe, Affordable Housing for All ☐ Maintain and Improve City Infrastructure RECOMMENDATION Council: a) Adopt A Resolution of the City Council of the City of Gilroy Consolidating the Housing and Neighborhood Revitalization Committee, Historic Heritage Committee, and the Street Naming Committee, and Placin g Their Associated Board Functions Under the Authority of the Planning Commission. b) Motion to read the ordinance by title only and waive further reading. c) Introduce an Ordinance of the City Council of the City of Gilroy Consolidating the Bicycle Pedestrian Commission and Placing Their Associated Board Functions for Infrastructure Planning and Development Review Under the Authority of the Planning Commission, and the Associated Board Functions for Education and Encouragement Activities Under the Authority of the Parks and Recreation Commission. 9.1 Packet Pg. 18 9.1.c Packet Pg. 83 Attachment: Streamline Consolidation Staff Report - December 13, 2021 (3619 : Commission Consolidation) d) Direct all boards and commissions, except the Planning Commission, to meet on a quarterly basis, not to exceed quarterly meetings without compelling reasons as determined by the respective board chair and appointed staff liaison. BACKGROUND At the September 13, 2021 regular meeting of the Gilroy City Council, Council provided direction – as part of a future agenda item request – for staff to bring back recommendations for a more effective structure to the City’s boards, commissions, and committees (collectively, the “Commissions”). The impetus for the agenda item is the repeated recruitments for new members to the Commissions due to many departures and attendance issues of various Commission members. An example of previous Commission restructuring included the consolidation and elimination of the Public Arts Committee and the Housing Committee as stand-alone committees. That consolidation reduced the total number of Commissions from 15 to 13. There are currently five Commissions that are established in the City Charter. All other Commissions were established either through an ordinance, resolution, or other authorization of the City Council. At the November 15, 2021 regular City Council meeting, Council directed s taff to return with an agenda item for potential approval of the full streamline option. Since the direction, it has been determined that retaining the Youth Commission is desirable for the youth to engage the City through this commission. ANALYSIS Staff has prepared a resolution and an ordinance for adoption that would reduce the City Commissions from thirteen to nine and reduce the frequency of meetings to reduce burden on Commission members and City resources. The only change from the original streamline option is that the Youth Commission would remain intact. As presented previously, modified with the Youth Commission remaining intact, and meetings being held quarterly except for the Planning Commission would be as outlined below. 1. Planning Commission (inherit duties of Housing and Neighborhood Revitalization Committee; Historic Heritage Committee; Bicycle Pedestrian Commission’s infrastructure planning and development review functions, and the Street Naming Committee). The same reports and information th at would be included in the presentation to the former Commissions would be incorporated in the Planning Commission staff reports. 2. Personnel Commission – No change from Charter; meeting quarterly. 3. Library Commission – No change from Charter; meeting quarterly. 9.1 Packet Pg. 19 9.1.c Packet Pg. 84 Attachment: Streamline Consolidation Staff Report - December 13, 2021 (3619 : Commission Consolidation) 4. Arts and Culture Commission – No change from Charter; meeting quarterly. 5. Parks and Recreation Commission (inherit the duties of the Bicycle Pedestrian Commission’s education and encouragement functions) – meeting quarterly. 6. Youth Commission – No change; meeting quarterly. 7. Open Government Commission – No change. 8. Building Appeals Board – meet as needed. 9. Physically Challenged Appeals Board – meet as needed. It should be noted that numerous opportunities exist for board members/commissioners whose board/committees have been consolidated. Remaining boards and commission typically have numerous vacancies and the number of representatives on certain boards/commissions could potentially be expanded. Implementation The resolution and ordinance, while being adopted and introduced (respectively) this evening, are designed in a manner to allow up to six months for implementation to wind down and subsequently transfer the consolidated duties. Implementation will involve City staff and Commission members coordinating the changes that are proposed, through the staff liaisons. By approaching the implementation individually with each of the Commissions, a smoother transition is likely for each individual Commission. Some Commissions have very detailed workplans and are in-progress on activities to complete one or more items in the workplan. The additional time to continue operating would allow the Commissions to potentially wrap up some of their workplan items before the consolidation is completed. Additionally, the time would allow for the opportunity to see if there are vacant seats on other Commissions that may be of interest to those who are in a Commission being consolidated. Other Commissions may not have pending activities and may be able to consolidate at a faste r rate. The timeframe is to allow flexibility to treat each Commission uniquely in their consolidation. ALTERNATIVES Council may choose to accept, reject, or modify the staff recommendation. FISCAL IMPACT/FUNDING SOURCE No cost increases are anticipated from this action. There will be some cost savings, but the amount is not known at this time. There will be more significant staff time and resource savings, as other work can be performed with the staff time and resources saved from the number and frequency of board and commission meetings being reduced. 9.1 Packet Pg. 20 9.1.c Packet Pg. 85 Attachment: Streamline Consolidation Staff Report - December 13, 2021 (3619 : Commission Consolidation) CONCLUSION With the consolidation of the four Commissions, and the reduction in the frequency of meetings for the remaining Commissions, the demand on Commissioners and staff will be reduced. It is believed that this will help reduce the burden on Commissioners, making service on our Commissions more appealing and sustainable for interested residents. It will also reduce City resource consumption and staff time, which will be made available for other tasks that are assigned to the staff liaisons and board secretaries. NEXT STEPS Depending upon Council’s action(s), staff will bring back the second reading and adoption of the ordinance for the consolidation of the Bicycle Pedestrian Commission. Staff will also commence collaboration with each of the staff liaisons to the Commissions to start the transition planning process, as well as preparing the remaining Commissions to undertake any new functions assigned to them. PUBLIC OUTREACH Any action undertaken by Council will be relayed in the City’s community engagement messaging, as well as updates as the functions transition from one Commission to another. Attachments: 1. DRAFT Resolution - Committee Consolidation 2. DRAFT Consolidation Ordinance - Bicycle Pedestrian Commission 9.1 Packet Pg. 21 9.1.c Packet Pg. 86 Attachment: Streamline Consolidation Staff Report - December 13, 2021 (3619 : Commission Consolidation) RESOLUTION NO. 2021-XX RESOLUTION NO. 2021-XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY CONSOLIDATING THE HOUSING AND NEIGHBORHOOD REVITALIZATION COMMITTEE, HISTORIC HERITAGE COMMITTEE, AND THE STREET NAMING COMMITTEE, AND PLACING THEIR ASSOCIATED BOARD FUNCTIONS UNDER THE AUTHORITY OF THE PLANNING COMMISSION WHEREAS, the Housing and Neighborhood Revitalization Committee, Historic Heritage Committee, and the Street Naming Committee are the three committees in operation out of the combined thirteen (13) boards, commission, and committees for the City; and WHEREAS, the City’s current thirteen (13) boards, commissions and committees, each require extensive staff support, whether or not the body has a full membership, business to conduct, or is able to achieve a quorum for its meetings; and WHEREAS, the City Council initiated a future Council agenda item on September 13, 2021 for an agenda item to staff to create a more efficient and effective structure for the City’s boards and commissions; and WHEREAS, on November 15, 2021, staff presented a report with options that had been developed as of that time. At that meeting, Council directed staff to proceed with the full streamline option of consolidating the City’s boards, committees and commissions, and return to Council on December 13th with an agenda item to adopt the consolidation; and WHEREAS, the City Council desires to consolidate the City’s Housing and Neighborhood Revitalization Committee, Historic Heritage Committee, and the Street Naming Committee with the Planning Commission. NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Gilroy as follows: 1. The Housing and Neighborhood Revitalization Committee, the Historic Heritage 9.1.a Packet Pg. 22 Attachment: DRAFT Resolution - Committee Consolidation (3572 : Boards and Commissions Consolidation)9.1.c Packet Pg. 87 Attachment: Streamline Consolidation Staff Report - December 13, 2021 (3619 : Commission Consolidation) RESOLUTION NO. 2021-XX Committee, and the Street Naming Committee are hereby scheduled to be consolidated to the Planning Commission, effective June 30, 2022, or such earlier time as determined by the committees. 2. City staff is to wind down and transfer the activities of these committees in an expeditious manner which shall be completed no later than June 30, 2022, and as of the date of each such transfer, the terms of all sitting members of each respective committee shall come to an end. PASSED AND ADOPTED this 13th day of December, 2021 by the following roll call vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: APPROVED: ___________________________ ATTEST: Marie Blankley, Mayor _________________________ Thai Pham, City Clerk 9.1.a Packet Pg. 23 Attachment: DRAFT Resolution - Committee Consolidation (3572 : Boards and Commissions Consolidation)9.1.c Packet Pg. 88 Attachment: Streamline Consolidation Staff Report - December 13, 2021 (3619 : Commission Consolidation) -1- 4891-7643-1621v1 JH\00000999 ORDINANCE NO. 2021-XX AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GILROY CONSOLIDATING THE BICYCLE PEDESTRIAN COMMISSION AND PLACING ITS ASSOCIATED COMMISSION FUNCTIONS FOR INFRASTRUCTURE PLANNING AND DEVELOPMENT REVIEW UNDER THE AUTHORITY OF THE PLANNING COMMISSION, AND THE ASSOCIATED COMMISSION FUNCTIONS FOR EDUCATION AND ENCOURAGEMENT ACTIVITIES UNDER THE AUTHORITY OF THE PARKS AND RECREATION COMMISSION. WHEREAS, the City of Gilroy currently has a total of thirteen (13) boards, commissions and committees, each requiring extensive staff support, whether or not the body has a full membership, business to conduct, or is able to achieve a quorum for its meetings; and WHEREAS, the Bicycle Pedestrian Commission is one of the City’s Commissions which are not required pursuant to the Gilroy City Charter; and WHEREAS, City Council initiated a future Council agenda item on September 13, 2021 for an agenda item to staff to create a more efficient and effective structure for the City’s boards and commissions; and WHEREAS, on November 15, 2021, staff presented a report with options that had been developed as of that time. At that meeting, Council directed staff to proceed with the full streamline option of consolidating the City’s boards, committees and commissions, and return to Council on December 13th with an agenda item to adopt the consolidation; and WHEREAS, the City Council desires to consolidate the Bicycle Pedestrian Commission with the duties being consolidated with either the Planning or Parks and Recreation Commissions, based on the subject matter jurisdiction. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GILROY DOES ORDAIN AS FOLLOWS. SECTION I The Bicycle Pedestrian Commission (Commission) is scheduled to be consolidated. Ordinances Nos. 2009-03 and 2018-14, which established the Commission will be repealed in their entirety and no longer in effect after June 30, 2022, or such earlier time as determined by the Commission. SECTION II 9.1.b Packet Pg. 24 Attachment: DRAFT Consolidation Ordinance - Bicycle Pedestrian Commission (3572 : Boards and Commissions Consolidation)9.1.c Packet Pg. 89 Attachment: Streamline Consolidation Staff Report - December 13, 2021 (3619 : Commission Consolidation) -2- 4891-7643-1621v1 JH\00000999 City staff are to wind down and transfer the activities of this Commission in an expeditious manner which shall be completed no later than June 30, 2022, and as of the date of such transfer, the terms of all sitting Commissioners shall come to an end. The functions and duties shall be transferred to the Planning Commission and Parks and Recreation Commission, in a manner to maximize efficiency and effectiveness within the associated subject matter jurisdiction of each Commission. SECTION III If any section, subsection, sentence, clause or phrase of this Ordinance is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Gilroy hereby declares that it would have passed and adopted this ordinance, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases may be declared invalid or unconstitutional. SECTION IV This Ordinance shall take effect thirty (30) days after its adoption. The City Clerk is hereby directed to publish this Ordinance or a summary thereof pursuant to Government Code Section 36933. PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF GILROY this 10th day of January, 2022 by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: APPROVED: _______________________________ Marie Blankley, Mayor ATTEST: LeeAnn McPhillips, City Clerk 9.1.b Packet Pg. 25 Attachment: DRAFT Consolidation Ordinance - Bicycle Pedestrian Commission (3572 : Boards and Commissions Consolidation)9.1.c Packet Pg. 90 Attachment: Streamline Consolidation Staff Report - December 13, 2021 (3619 : Commission Consolidation) 0 0 0 0 Z1 0 a z 0 ,o 0 ., 0 O H o U 0 0 V •° o b rg° O v� U E rn U - ›., 'o an o 2 - > O c e� up • U Q, .o �J °; N O .0 0 .0 ;-,1-4 0 4O�+ 8 "CS C CZ O trs•CT— 0o E ', a �, 'd O U cep P:1 W W W Vd . N N HHcu O En 4-1 H H › 41 cd 1�0��c b`D CD ~ �N �, 4-1 to-0w ; °— ° Q'4 0 z 0' W ... AG ct N C.)> N ch .0 El 'd Cd 0 a 0 y ao 4 PLEASE PRINT NEATLY (to be used to call you to the podium) a 2 o o b A • 0 v) t. "RI irj O a) CJrciti • A G�, o 0 0 by 0 0 a) br)• (1-. •o � a.) O 0 N cc; a) CC^ O 0 1b Ct O CC3 (7) O U cip 0 • bD a4 f., b .4 7 U a) ,-0 • a) E 5. 0 0 O u 0 a) 0 a z/ Ei PLEASE P W AGENDA ITEM(S): NU a w PI H ▪ a)v o c co � H , cd 23 • R. � N C A-, '' U O "Cet O . -4 0ca N rA - a) ▪ U ✓ �Q., Q) ril ',E 5 a) ccn City of Gilroy STAFF REPORT Agenda Item Title: Consideration of authorizing virtual meetings pursuant to Section 54953 of the Brown Act for Council and all Boards and Commissions Meeting Date: January 10, 2022 From: Jimmy Forbis, City Administrator Department: Administration Submitted By: Jimmy Forbis Prepared By: Jimmy Forbis Strategic Plan Goals ☐ Develop a Financially Resilient Organization ☐ Ensure Neighborhood Equity from City Services ☐ Promote Economic Development Activities ☐ Promote Safe, Affordable Housing for All ☐ Maintain and Improve City Infrastructure RECOMMENDATION Adopt Resolution authorizing virtual meetings pursuant to Section 54953 of the Brown Act for Council and all Boards and Commissions. BACKGROUND On March 4, 2020, the Governor of the State of California (“Governor”) issued a Proclamation of a State of Emergency due to COVID-19. Such proclamation remains in effect, as are the facts, circumstances, and emergency under which it was issued. On March 17, 2020, the Governor issued Executive Order N-29-20 allowing local legislative bodies to hold meetings via teleconference and to make meetings accessible electronically without it constituting a violation of the open meeting laws found in the Ralph M. Brown Act (California Government Code Sections 54950 et seq., “Brown Act”). 10.1 Packet Pg. 91 On March 16, 2020, the City Council adopted Resolution No. 2020-17 ratifying the City Administrator as Director of Emergency Services Proclamation dated March 13, 2020. Since the enactment of the Executive order, local legislative bodies in California have been able to hold public meetings by “teleconference” (a term that includes video conferencing) without complying with all the Brown Act requirements for teleconference meetings, as follows: • Giving notice of each teleconference location from which, a member would by participating in a public meeting and specifically identifying each teleconference location in the meeting notice and on the agenda, including the full address and room number; • Assuring that each teleconference location is accessible to the public; • Allowing members of the public to address the body at each teleconference location; • Posting agendas at all teleconference locations; and • During teleconference meetings, at least a quorum of the members of the local body must participate from locations within the boundaries of the territory over which the local body exercises jurisdiction. In March 2020, staff transitioned holding public meetings via WebEx, and eventually to Zoom for all City meetings. Remote meetings have allowed the City Council, City Council Committees, and the City’s community advisory bodies to continue to conduct City business from the safety of their individual locations. The usage of remote technology for public meetings over has allowed the City to ensure the public’s continued access to meetings while also ensuring the public’s safety. On June 11, 2021, the Governor issued Executive Order N -08-21, which, among other things, rescinded his prior Executive Order N-29-20 and set a date of October 1, 2021, for public agencies to transition back to public meetings held in full compliance with the Brown Act. In August 2021 the City Council, City Council Committees, and the City’s community advisory bodies returned to in-person meetings as the positive rate of Covid-19 cases had decreased nationwide and continued to do so for several months. ANALYSIS Due to the recent rise in COVID-19 cases, including due to the Omicron variant, the City is concerned about protecting the health and safety of attendees. This concern is heightened given that even fully vaccinated people have contracted the Omicron variant, that people may have and transmit the virus before knowing they are infected and/or if they are asymptomatic, that meetings of City legislative bodies often last several hours, and that City meeting facilities are limited in space with seats close together. 10.1 Packet Pg. 92 Subsequent to the above-mentioned Executive Order issuance, and because of the Delta variant surge in California back in late summer 2021, the legislature took action to extend the COVID-19 exceptions to the Brown Act’s teleconference requirements, subject to additional safeguards. AB 361, signed by the Governor on September 16, 2021, allows a local agency to continue to use teleconferencing without complying with the Brown Act provisions above in any of the following circumstances: • The legislative body holds a meeting during a proclaimed state of emergency, and state or local officials have imposed or recommended measures to promote social distancing. • The legislative body holds a meeting during a proclaimed state of emergency for the purpose of determining, by majority vote whether, as a result of the emergency, meeting in person would present imminent risks to the health or safety of attendees. • The legislative body holds a meeting during a proclaimed state of emergency and has determined, by majority vote, that, as a result of the emergency, meeting in person would present imminent risks to the health or safety of attendees. The City meets the requirements to hold meetings remotely in order to ensure the health and safety of the public if: • The Santa Clara County Health Officer has issued various health orders and updates designed to slow the spread of COVID-19 (including variants thereof) such as vaccinations, quarantines, face covering requirements, and social distancing recommendations designed to protect public health. • The Santa Clara County Health Officer is strongly recommending teleconferenced meetings as those meetings present the lowest risk of transmission of SARS-CoV- 2, the virus that causes COVID-19, and further recommends social distancing and face masking of all attendees. AB 361 also provides that, if the state of emergency remains active for more than 30 days, a local agency must make the following findings by majority vote 30 days after it first implements the bill’s exemptions to the Brown Act teleconferencing rules and every 30 days thereafter to continue using them: (A) The legislative body has reconsidered the circumstances of the state of emergency. (B) Any of the following circumstances exist: (i) The state of emergency continues to directly impact the ability of the members to meet safely in person. 10.1 Packet Pg. 93 (ii) State or local officials continue to impose or recommend m easures to promote social distancing. The City will have to put an item on the agenda once every 30 days to make findings regarding the circumstances of the emergency and vote to continue using the law’s exemptions. The stated aim of AB 361 is “to improv e and enhance public access to local agency meetings during the COVID-19 pandemic and future applicable emergencies, by allowing broader access through teleconferencing options” consistent with Executive Order N-29-20. The bill sunsets as of January 1, 2024. FISCAL IMPACT/FUNDING SOURCE None. Attachments: 1. Draft Resolution Attachments: 1. Draft Resolution 10.1 Packet Pg. 94 RESOLUTION NO. 2022-XX 4894-1564-7497v1 ALF\04706083 RESOLUTION NO. 2022-XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY MAKING CERTAIN FINDINGS RELATING TO THE EXISTING STATE OF EMERGENCY CAUSED BY THE COVID-19 PANDEMIC AND DETERMINING AS A RESULT OF THE STATE OF EMERGENCY THAT CITY COUNCIL MEETINGS AND MEETINGS OF OTHER CITY LEGISLATIVE BODIES SHALL BE HELD BY TELECONFERENCING PURSUANT TO GOVERNMENT CODE SECTION 54953(E) WHEREAS, on March 4, 2020, the Governor issued a proclamation of a state of emergency pursuant to Government Code Section 8625, relating to the respiratory illness known as COVID-19, which is caused by the novel coronavirus SARS-CoV-2; and WHEREAS, the Governor’s proclamation remains in effect; and WHEREAS, on March 11, 2020, the World Health Organization declared the existence of a pandemic due to the global spread of COVID-19; and WHEREAS, on March 13, 2020, the Director of Emergency Services issued a proclamation declaring the existence of a local emergency within the City relating to COVID-19, and on March 16, 2020, the City Council adopted a resolution ratifying the declaration of local emergency; and WHEREAS, since August 2, 2021, an order of the Santa Clara County Public Health Officer has been in effect requiring the use of face coverings indoors by all persons; and WHEREAS, despite progress in addressing the pandemic, not all eligible individuals are fully vaccinated, and new, more virulent variants of the SARS-CoV-2 virus are spreading in California and throughout the world; and WHEREAS, to date, Santa Clara County has had nearly 190,000 reported cases of COVID-19, and nearly 2,000 residents of the County have died of the illness; and WHEREAS, as of January 6, 2022, the Santa Clara County Health Department reported a seven-day rolling average of 1,918 new COVID-19 cases per day; and WHEREAS, since Thanksgiving, the statewide seven-day average case rate has increased by over 800 percent, and the number of COVID-19 hospitalized patients has increased by over 150 percent; and WHEREAS, this surge is being driven by the recent emergence of the Omicron variant, which early data suggests is more transmissible than the Delta variant; and 10.1.a Packet Pg. 95 Attachment: Draft Resolution (3621 : Authorizing Virtual Meetings) RESOLUTION NO. 2022-XX 4894-1564-7497v1 ALF\04706083 WHEREAS, on January 5, 2022, the Governor issued Executive Order N-1-22, which extends from January 1, 2022, until April 1, 2022, the date by which state bodies may continue to meet by teleconferencing; and WHEREAS, as a result of the COVID-19 pandemic, and in particular because of the recent surge in cases caused by the Omicron variant, continuing to hold in-person meetings of the City Council and of the City’s other legislative bodies would present imminent risks to the health or safety of attendees; WHEREAS, AB 361, which was signed into law on September 16, 2021, amended Government Code Section 54953 to authorize local legislative bodies to determine by resolution to conduct meetings by teleconferencing during proclaimed public health emergencies, and any such resolution must be reaffirmed every thirty (30) days to continue in effect; NOW, THEREFORE, BE IT RESOLVED THAT, 1. The City Council finds that the foregoing recitals are true and correct. 2. Beginning on the date following the date of the adoption of this resolution, the City Council and the City’s other legislative bodies shall meet by teleconferencing. Such meetings shall be conducted according to the requirements set forth in Government Code Section 54953(e)(2). 3. This resolution shall be of no further force and effect on February 9, 2022, unless prior to that date the City Council reconsiders this resolution and finds that either of the following circumstances exists: a. The state of emergency relating to COVID-19 continues to directly impact the ability of the members of the City Council and of the public to meet safely in person; or b. State or local officials have imposed or recommended measures to promote social distancing. PASSED AND ADOPTED this 10th day of January, 2022, by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: APPROVED: Marie Blankley, Mayor ATTEST: Thai Pham, City Clerk 10.1.a Packet Pg. 96 Attachment: Draft Resolution (3621 : Authorizing Virtual Meetings) City of Gilroy STAFF REPORT Agenda Item Title: Accept the Annual Comprehensive Financial Report for Fiscal Year-Ended June 30, 2021 Meeting Date: January 10, 2022 From: Jimmy Forbis, City Administrator Department: Finance Department Submitted By: Harjot Sangha Prepared By: Harjot Sangha Strategic Plan Goals  Develop a Financially Resilient Organization ☐ Ensure Neighborhood Equity from City Services ☐ Promote Economic Development Activities ☐ Promote Safe, Affordable Housing for All ☐ Maintain and Improve City Infrastructure RECOMMENDATION Accept and file report. EXECUTIVE SUMMARY Accept and file the audited Annual Comprehensive Financial Report (ACFR)1 for the fiscal year-ended June 30, 2021 (FY21). ANALYSIS 1 The Government Finance Officers Association has changed the title and abbreviation from the Comprehensive Annual Financial Report (CAFR), to the title and abbreviation used in this report. 10.2 Packet Pg. 97 Following the close of each fiscal year on June 30th, the City’s external auditors conduct an audit of the City’s financial records and assist in the compilation of the ACFR. The objective of external financial reporting is to ensure accountability. The goal of a financial statement audit is to provide users with a reasonable assurance from an independent source that the information presented in the statements is reliable. The audit for the fiscal year ended June 30, 202 1 (FY21) and was recently completed by The Pun Group, LLP (Auditor), Certified Public Accountants. The firm was engaged in 2020 and issued the FY20 ACFR. FY21 is the second year of the three -year term. In conjunction with the annual audit, the City prepares the ACFR to comply with the requirements to receive the Certificate of Achievement for Excellence in Financial Reporting administered by the Government Finance Officers Association (GFOA). The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standard for preparation of state and local government financial reports. The City’s ACFR has received this award for the previous seven fiscal years and believe the current report continues to conform to GFOA’s highest standard. As a result of their annual independent audit of the City’s financial records and statements, the Auditor has rendered an unmodified (“clean”) opinion, the optimal opinion issued by independent auditors, on the City’s financial statements for the fiscal year ended June 30, 2021. A detailed analysis of the City’s financial position as of June 30, 2021 is included in the ACFR attached to this staff report (Attachment 1). In accordance with Government Auditing Standards, the auditors also identify any deficiencies in internal control over financial reporting and provide recommendations to City management on correcting these deficiencies. Summary of highlights are as follows: • Citywide: The City’s overall net position decreased by $3.2 million from prior fiscal year (FY20) primarily due to change in net investment in capital assets. • General Fund: o Revenues: The general fund actual revenues of $55.9 million were $4.6 million more than the prior year primarily in the areas of property related tax revenues, building permit, and plan check and inspection related revenues. A key item of note is the $5.5 million of American Rescue Plan Act (ARPA) funding the City received during the fiscal year was subsequently recorded as unearned revenue at June 30, 2021 as expenditures related to those funds are programmed in FY 22 and onwards. 10.2 Packet Pg. 98 o Expenditures: The general fund actual expenditures of $51.0 million were $5.1 million less than the prior year, a result of the fiscal recovery plan instituted by the City Council during the year. From a budgetary perspective, during the fiscal year, the actual expenditures were $3.6 million less than the amended budget due to savings in personnel related expenses and conservative departmental spending practices. o Fund Balance: The fund balance (ACFR purposes) in the general fund increased by $4.6 million to $19.6 million from the prior year, which represents 38% of actual FY21 expenditures. FISCAL IMPACT/FUNDING SOURCE There are no direct fiscal impacts to receiving and filing the ACFR. The audit provides Council and other stakeholders with the assurance that the City is meeting its obligation for producing financial reports that are presented fairly and accurately. Annual financial audit is part of the Finance Department’s annual workplan, thus the resources and costs associated with the audit and preparation of the report are included in the adopted budget. Attachments: 1. Annual Comprehensive Financial Report as of June 30, 2021 10.2 Packet Pg. 99 City of Gilroy California Year Ended June 30, 2021 Annual Comprehensive Financial Report INTRODUCTORY SECTION City of Gilroy Annual Comprehensive Financial Report For the Year Ended June 30, 2021 Table of Contents Page INTRODUCTORY SECTION (Unaudited) Letter of Transmittal ...................................................................................................................................................... i Elected Officials & City Staff ....................................................................................................................................... v Organizational Chart .................................................................................................................................................... vi Map ............................................................................................................................................................................. vii GFOA Certificate of Achievement for Excellence in Financial Reporting ............................................................... viii FINANCIAL SECTION Independent Auditors’ Report on Financial Statements ......................................................................................... 1 Management’s Discussion and Analysis (Required Supplementary Information) (Unaudited) ......................... 5 Basic Financial Statements: Government-Wide Financial Statements: Statement of Net Position .............................................................................................................................. 18 Statement of Activities ................................................................................................................................... 20 Fund Financial Statements: Governmental Fund Financial Statements: Balance Sheet .......................................................................................................................................... 27 Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position ......................................................................... 28 Statement of Revenues, Expenditures, and Changes in Fund Balances ................................................................................................................ 29 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities ...................................................................................................................... 30 Proprietary Fund Financial Statements: Statement of Net Position ........................................................................................................................ 32 Statement of Revenues, Expenses, and Changes in Net Position ............................................................ 35 Statement of Cash Flows ......................................................................................................................... 36 Fiduciary Fund Financial Statements: Statement of Fiduciary Net Position ........................................................................................................ 41 Statement of Changes in Fiduciary Net Position ..................................................................................... 42 Notes to the Basic Financial Statements ........................................................................................................... 47 City of Gilroy Annual Comprehensive Financial Report For the Year Ended June 30, 2021 Table of Contents (Continued) Page FINANCIAL SECTION (Continued) Required Supplementary Information (Unaudited) Schedule of Changes in the Net Pension Liability and Related Ratios– Last Ten Fiscal Years CalPERS Miscellaneous Plan ........................................................................................................................ 92 CalPERS Safety Plan ..................................................................................................................................... 94 Schedule of Plan Contributions - Pension – Last Ten Fiscal Years CalPERS Miscellaneous Plan ........................................................................................................................ 96 CalPERS Safety Plan ..................................................................................................................................... 98 Schedule of Changes in the Net OPEB Liability and Related Ratios – Last Ten Fiscal Years ...................... 101 Budgetary Comparison Schedules General Fund ................................................................................................................................................ 102 Notes to the Budgetary Comparison Schedules ................................................................................................ 105 Supplementary Information: Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual: Public Facilities Impact Capital Projects Fund ............................................................................................ 108 Nonmajor Governmental Funds: Description of Nonmajor Governmental Funds ........................................................................................... 109 Combining Balance Sheet ............................................................................................................................ 111 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances .................................... 119 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual: Gas Tax Special Revenue Fund ............................................................................................................. 127 Pavement Management Special Revenue Fund ..................................................................................... 128 Public Safety Grants Special Revenue Fund ......................................................................................... 129 Prop 172 Sales Tax Special Revenue Fund ........................................................................................... 130 Community Development Block Grant Special Revenue Fund ............................................................ 131 Rehabilitation Loans Special Revenue Fund ......................................................................................... 132 Housing Trust Fund Special Revenue Fund .......................................................................................... 133 Community Facilities District Special Revenue Fund ........................................................................... 134 Measure B Special Revenue Fund ......................................................................................................... 135 Vehicle License Fee Special Revenue Fund .......................................................................................... 136 Los Arroyos Fund Special Revenue Fund ............................................................................................. 137 CalHome Funds Special Revenue Fund .............................................................................................. 138 City of Gilroy Annual Comprehensive Financial Report For the Year Ended June 30, 2021 Table of Contents (Continued) Page Supplementary Information (Continued): Nonmajor Governmental Funds (Continued): Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual (Continued): Capital Projects Fund ............................................................................................................................ 139 BANS 2009 Financing Capital Projects Fund ....................................................................................... 140 Traffic Impact Capital Projects Fund .................................................................................................... 141 Storm Drains Capital Projects Fund ...................................................................................................... 142 Utility Undergrounding Capital Projects Fund ...................................................................................... 143 Street Trees Development Capital Projects Fund .................................................................................. 144 Sewer Development Capital Projects Fund ........................................................................................... 145 Water Development Capital Projects Fund ........................................................................................... 146 Bank Interest Capital Projects Fund ...................................................................................................... 147 Gilroy Community Library Capital Projects Fund ................................................................................ 148 Refunding Lease 2010 Debt Service Fund ............................................................................................ 149 2013 Refunding Bond Debt Service Fund ............................................................................................. 150 Gilroy Community Library Debt Service Fund ..................................................................................... 151 CA Energy Commission Loan Debt Service Fund ................................................................................ 152 Internal Service Funds: Combining Statement of Net Position.......................................................................................................... 154 Combining Statement of Revenues, Expenses and Changes in Net Position .............................................. 156 Combining Statement of Cash Flows ........................................................................................................... 158 Fiduciary Funds: Combining Statement of Fiduciary Net Position ......................................................................................... 162 Combining Statement of Changes in Fiduciary Net Position ...................................................................... 164 City of Gilroy Annual Comprehensive Financial Report For the Year Ended June 30, 2021 Table of Contents (Continued) Page STATISTICAL SECTION (Unaudited) Description of Statistical Section Contents ............................................................................................................... 169 Financial Trends: Net Position By Component - Last Ten Fiscal Years ............................................................................................ 170 Changes in Net Position - Last Ten Fiscal Years .................................................................................................. 172 Fund Balances of Governmental Funds - Last Ten Fiscal Years ........................................................................... 176 Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years ........................................................ 178 Revenue Capacity: Sales Tax by Category - Last Ten Fiscal Years ..................................................................................................... 180 Sales Tax Rates - Last Ten Fiscal Years ................................................................................................................ 182 Principal Sales Tax Producers – Last Fiscal Year and Nine Years Ago ................................................................ 183 Assessed Value and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years ................................. 184 Assessed Value of Property by Use Code - Last Three Fiscal Years .................................................................... 185 Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years .................................................................... 186 Principal Property Taxpayers – Last Fiscal Year and Nine Fiscal Years Ago ...................................................... 188 Property Tax Levies, Tax Collections, and Delinquency - Last Ten Fiscal Years ................................................ 189 Debt Capacity: Ratios of Outstanding Debt by Type - Last Ten Fiscal Years ............................................................................... 190 Ratio of General Bonded Debt Outstanding - Last Ten Fiscal Years .................................................................... 192 Schedule of Direct and Overlapping Bonded Debt ................................................................................................ 193 Legal Debt Margin Information - Last Ten Fiscal Years ....................................................................................... 194 Revenue Bond Coverage - Wastewater System - Last Ten Fiscal Years .............................................................. 196 Demographic and Economic Information: Demographic and Economic Statistics – Last Ten Fiscal Years ........................................................................... 198 Principal Employers – Current Year and Seven Years Ago .................................................................................. 199 Operating Information: Full-Time Equivalent City Government Employees By Function/Program – Last Ten Fiscal Years ................... 201 Operating Indicators by Function / Program – Last Ten Fiscal Years ................................................................... 202 Capital Assets By Function – Last Ten Fiscal Years ............................................................................................. 204 i CITY ADMINISTRATOR’S OFFICE 7351 Rosanna Street Gilroy, CA 95020 Telephone (408) 846-0202 Facsimile (408) 846-0500 http://www.ci.gilroy.ca.us January 4, 2022 To the Honorable Mayor, Members of the City Council and Citizens of Gilroy: The City of Gilroy’s (City) Charter requires that the City publish a complete set of audited financial statements for each fiscal year. This report is published to fulfill that requirement for the fiscal year ended June 30, 2021. This Annual Comprehensive Financial Report (ACFR) is submitted for your information and review. The information contained herein has been provided to allow the reader to gain an understanding of Gilroy’s financial activities. Management assumes full responsibility for the completeness and reliability of the information contained in this report. The Management Discussion and Analysis (MD&A) is included to assist the reader in its review of the City’s financial statements. It provides a roadmap for the financial statements and related notes. To provide a reasonable basis for making these representations, management of the City has established a comprehensive framework of internal controls that is designed to both protect the government’s assets from loss, theft or misuse and to compile sufficient reliable information for the preparation of the City’s financial statements in conformity with U.S. Generally Accepted Accounting Principles (GAAP). Because the cost of internal controls should not outweigh their benefits, the City’s comprehensive framework of internal controls has been designed to provide reasonable, rather than absolute assurance that the financial statements will be free from material misstatements. Management is committed to maintaining the City’s internal controls to adequately safeguard assets; and to provide reasonable assurances of proper recording of financial transactions. The Pun Group LLP, Certified Public Accountants, have issued an unmodified (“clean”) opinion on Gilroy’s financial statements for the year ended June 30, 2021. The independent auditor’s report is located at the beginning of the financial section of this report. The MD&A immediately follows the independent auditor’s report and provides a narrative introduction, overview, and analysis of the basic financial statements. The MD&A complements this letter of transmittal and should be read in conjunction. Profile of the government The City is the southernmost city in Santa Clara County, and is located approximately 25 miles south of San Jose and approximately 75 miles south of San Francisco. Gilroy sits at the crossing of U.S. Highway 101 and State Highway 152. The City was first incorporated in 1870 and became a charter city on January 8, 1960. Per the California Department of Finance’s annual demographic’s report for 2021, as of January 1, 2021, the City had a population estimate of 56,599. Situated between the Diablo and Santa Cruz mountains in the Santa Clara Valley, the City experiences mild temperatures, while missing most of the coastal fog. The agricultural growing season ranges from 300 to 350 days a year. Over the past few decades, the City has been transitioning from an agricultural economy into a light industrial- and services-based economy. ii The City operates under the Council-Administrator form of government. The seven City Council members, including the Mayor, are elected-at-large to four-year terms in alternate slates of three elected every two years, and the Mayor being elected every four years. The City Council appoints the City Administrator who heads the executive branch of the government, implements City Council directives and policies, and manages the administrative and operational functions through the department directors. The City Administrator appoints the department directors with the exception of the City Clerk and the City Attorney, which are appointed by the City Council. The budget of the City is a detailed operating and capital improvement plan that identifies estimated costs and activities as related to estimated revenues. The City Administrator submits to the City Council a proposed biennial budget for all funds and the Council then proceeds to make any changes to the proposed budget it deems necessary. Before adopting the proposed budget, the Council holds a public hearing. After the conclusion of the public hearing the Council may further make revisions to the proposed budget. Thereafter the Council adopts the budget with revisions, if any. The City provides municipal services including police and fire protection, community and economic development, recreation activities, parks and street maintenance, water and sewer utilities and general City administration. Natural gas and electricity are provided by Pacific Gas and Electric Company. Water service is provided by the City. Wastewater is collected and treated by the South County Regional Wastewater Authority. Recycling and solid waste disposal services are provided in the City by Recology South Valley. Economic Setting Gilroy’s economy has been dominated by agriculture and its related industries (food processing, etc.) since the 1800s. However, the growing influence of Silicon Valley and regional population growth have resulted in significant changes in the local economy during the past twenty years. The economic boom in Silicon Valley which began in the early 1990s had profound impacts on the local economy, resulting in significant increases in home prices and land values as well as significant decreases in local unemployment. The covid-19 pandemic has fueled a crisis in the housing market, sending demand and prices for homes soaring to all-time highs in an already supply tight market. Gilroy is benefitting economically from this trend. Today, Gilroy’s economy is diversified into non-agricultural commercial and industrial activities such as light manufacturing, wholesale operations, automobile sales, and large retail centers. The Gilroy Outlets, Auto Mall area, and retail developments east of Highway 101 have put the City on the map as a regional retail destination and helped strengthen the City’s tax revenues. Manufacturing and wholesale/distribution operations take advantage of Gilroy’s proximity to Silicon Valley and easy access to Highway 152, leading to Interstate 5 and the Central Valley. Development and Construction Activity Prior to the 2008 economic recession, local real estate development and construction industries experienced a high demand for new residential, commercial, and industrial development. Although limited by the City’s Residential Development Ordinance (RDO), new housing construction saw a surge of activity, as RDO allocations approved in earlier years were built out. Housing developments in the northwest quad, north-central Gilroy, and Eagle Ridge area brought new households to the City, many residents of which commute to work in the north county area. Construction activity was also high in the southeast industrial area.  iii The covid-19 pandemic had an impact on development activity. While much economic activity stalled during the initial shelter-in-place order, permitting and construction activity in Gilroy resumed in the summer of 2020 and has been steady since. Coupled with historic low interest rates, the residential market has continued to remain robust and demand has outpaced the supply of both new and existing housing inventory, causing an increase of approximately 15% to 18% in year-to-year housing prices as of June 2021. One of the most active residential development areas in Gilroy is Glen Loma Ranch. This 392- acre master planned area is located between Santa Teresa Boulevard and the Uvas Creek corridor and when completed, will include approximately 1,600 residential units, 145 acres of parks and open space, and a trail system linking the various neighborhoods. Commercial development along the First Street, Leavesley and Tenth Street corridors provides millions of square feet of retail and professional services space to the City. Fiscal Year 2021 (FY21) Financial Results The City ended FY21 with an operating loss, resulting in a change in net position of $3.2 million. In the General Fund, the revenues for FY21 were lower than budgeted, primarily due to less Sales Tax revenue, Plan Check and Inspection revenue, and Building Permit revenue. Expenditures were also lower than budgeted primarily due to personnel and departmental savings. The revenues exceeded the expenditures by $4.9 million, before transfers ($0.1 million), resulting in a net increase in fund balance for the General Fund of $4.8 million. Revitalization and Capital Improvements Commercial development in certain corridors in Gilroy has added millions of square feet of retail and professional services space to the City. Downtown revitalization efforts have helped attract new businesses to the area, has retained existing businesses, and created a core area of antique stores, specialty shops, and restaurants. Restored historic buildings also add to the downtown’s character, including the Old City Hall and the Train Depot. However, some vacant storefronts persist and the City is focusing additional efforts at revitalizing these spaces. Within the past decade major projects including the Downtown Streetscape, the Camino Arroyo Bridge, the New Gilroy Library, and the Aquatics Center at Christopher High School have been added as significant assets to the community. The City’s capital improvement plan (CIP) provides a 5-year window of projects to be completed within the CIP horizon. The financial health of the capital improvement funds have improved over the last few years as a result of new development. Long-term financial planning and major initiatives The City’s general fund balance as of June 30, 2021 was $19.6 million. In June 2017, City Council adopted a general fund reserve policy of retaining a general fund reserve equal to 20% of annual general fund expenditures. The policy also adopted a separate economic stability reserve that is used only for limited purposes, at 10% of general fund expenditures. During FY21, the City was still impacted by the ongoing covid-19 pandemic but began to experience economic recovery. During the year, the City implemented a fiscal recovery plan and as part of the plan the City also implemented long-term expenditure adjustments to address a known structural imbalance. These measures were made to ensure that the City maintained its’ long-standing fiscal health for years to come and to this point have achieved the desired results.  iv Award and Acknowledgements The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Gilroy for its annual comprehensive financial report for the fiscal year ended June 30, 2020. This was the seventh consecutive year that the City achieved this prestigious award. In order to be awarded a Certificate of Achievement, the City had to publish an easily readable and efficiently organized ACFR that satisfied both generally accepted accounting principles and applicable program requirements. A Certificate of Achievement for Excellence in Financial Reporting is valid for a period of one year only. We believe that our FY21 ACFR continues to meet the Certificate of Achievement for Excellence in Financial Reporting Program’s requirements and we are submitting the FY21 ACFR to the GFOA to determine its eligibility for another certificate. The preparation of this report would not have been possible without the skill, diligence, and commitment of the entire staff of the Finance Department, and specifically Finance Manager Rosemary Guerrero. We wish to thank all government departments for their assistance in providing the data necessary to prepare this report. Credit also is due to the Mayor and the City Council for their continuing support for maintaining the highest standards of professionalism in the management of Gilroy’s finances and prioritizing the goal of financial sustainability. Respectfully submitted, Jimmy Forbis City Administrator   V  City of Gilroy Elected Officials & City Staff As of Fiscal Year-End - June 30, 2021 ELECTED OFFICIALS Marie Blankley Mayor Fred Tovar Mayor Pro Tempore Dion Bracco Council Member Carol Marques Council Member Peter Leroe-Muñoz Council Member Rebeca Armendariz Council Member Zach Hilton Council Member CITY STAFF Jimmy Forbis City Administrator Andrew Faber City Attorney (Berliner Cohen, LLP) LeeAnn McPhillips (Interim) City Clerk LeeAnn McPhillips Administrative Services and Human Resources Director/Risk Manager Karen Garner Community Development Director Harjot Sangha Finance Director James Wyatt Fire Chief Pedro Espinoza Police Chief Daryl Jordan Public Works Director ORGANIZATION CHART Gilroy CommunityCity CouncilCity AttorneyCity AdministratorCommunity DevelopmentPublic WorksAdministrative ServicesFinancePoliceFireCity Clerkvi   vii     viii FINANCIAL SECTION     INDEPENDENT AUDITORS’ REPORT To the Honorable Mayor and the Members of the City Council of the City of Gilroy Gilroy, California Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of City of Gilroy, California (the “City”) as of and for the year ended June 30, 2021, and the related notes to the basic financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America, and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2021, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. 200 E. Sandpointe Ave., Suite 600, Santa Ana, California 92707 Tel: 949-777-8800 • Fax: 949-777-8850 www.pungroup.cpa 3939352 Pun & McGeady_L_final.pdf 2 1/14/14 3:48 PM To the Honorable Mayor and the Members of the City Council of the City of Gilroy Gilroy, California Page 2 2 Emphasis of Matter Implementation of GASB 84 As discussed in Note 2V to the basic financial statements, the City implemented Governmental Accounting Standards Board (“GASB”) Statement No. 84, Fiduciary Activities. The adoption of the standard resulted in the custodial funds reporting beginning fiduciary net position in the amount of $1,092,316, and governmental activities and governmental funds reporting net position prior period adjustment of $12,990. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis, the Budgetary Comparison Schedules, the Schedules of Changes in Net Pension Liability and Related Ratios, the Schedules of Contributions – Pensions, the Schedule of Changes in Net Other Postemployment Benefits Liability and Related Ratios, and the Schedule of Contributions – Other Postemployment Benefits on pages 5 to 14 and 92 to 105 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the Required supplementary Information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The Introductory Section, the Combining and Individual Nonmajor Fund Financial Statements, Additional Schedules, and the Statistical Section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The Combining and Individual Nonmajor Fund Financial Statements are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Combining and Individual Nonmajor Fund Financial Statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole. The Introductory and the Statistical Sections, and Additional Schedules have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. To the Honorable Mayor and the Members of the City Council of the City of Gilroy Gilroy, California Page 3 3 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 4, 2022 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance. Santa Ana, California January 4, 2022   4 This page intentionally left blank. City of Gilroy Management’s Discussion and Analysis (Unaudited) For the Year Ended June 30, 2021 5 The following discussion and analysis of the financial performance of the City of Gilroy provides an overview of the City’s financial activities for the fiscal year ended June 30, 2021 (FY21). Please read it in conjunction with the financial statements identified in the accompanying table of contents. Using the Accompanying Financial Statements This annual report consists of a series of financial statements. The government-wide Statement of Net Position and the Statement of Activities provide information about the activities of the City as a whole and present a longer-term view of the City’s finances. Also included in the accompanying report are fund financial statements. For governmental activities, the fund financial statements tell how these services were financed in the short term as well as what remains for future spending. Fund financial statements also report the City’s operations in more detail than the government-wide statements by providing information about the City’s most significant funds. The remaining statements provide financial information about activities for which the City acts solely as a trustee or agent for the benefit of those outside of the government. Notes to the Basic Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. FINANCIAL HIGHLIGHTS  During FY21, the City’s overall net position, representing the difference between total assets plus deferred outflows of resources of the City, and total liabilities plus deferred inflows of resources, decreased by $3.2 million to $347.2 million. Of the total net position, $56.7 million, or about 17%, remains as unrestricted, and most of the remaining, about 67%, consists of net investment in capital assets. Additional detail can be found on the Statement of Net Position on page 18.  Total Citywide revenues were $103.0 million, $4.6 million better than FY20 primarily due to an increase in charges for services and operating grants and contributions.  Total citywide expenditures, excluding non-operating expenses, were $106.2 million, approximately $0.3 million more than FY20 primarily due to decreased spending in governmental activities of $4.7 million, offset by an increased spending in the business-type activities of $5.0 million from prior fiscal year.  As of June 30, 2021, the City’s governmental funds reported a combined ending fund balance of $77.9 million, an increase of 8%, or $5.9 million, from prior fiscal year.  The fund balance in the City’s General Fund increased by $4.8 million to $19.6 million, primarily due to increased revenues and conservation spending. During FY21, the General Fund had an excess of revenues over expenditures of $4.9 million, excluding transfers.  Actual revenues, excluding transfers, in the General Fund were $2.2 million less than the final budget, primarily due to lower than anticipated sales tax revenue, followed by a lower than expected permit revenue.  Actual expenditures, excluding transfers, in the General Fund were $3.6 million less than the final budget, as a result of personnel and operational savings across various departments. In addition, the City maintained its conservative spending practices during the fiscal year. City of Gilroy Management’s Discussion and Analysis (Unaudited) For the Year Ended June 30, 2021 6  As of June 30, 2021, the City had $117.6 million in long-term debt. Of the total, governmental activities long-term debt portion is $59.7 million, consisting of $25.6 million general obligation bonds, and $33.3 million in lease revenue bonds, and a loan payable of $0.8 million. The remaining $57.9 million is for business-type activities – all sewer revenue bonds. During the year, the City issued new sewer revenue bonds, Series 2021A, in the amount of $47 million to finance the City’s share of the South County Regional Wastewater Authority’s sewer treatment plant expansion project. OVERVIEW OF THE FINANCIAL STATEMENTS The annual report consists of four parts – management’s discussion and analysis (this section), the basic financial statements, required supplementary information, and a supplementary information section that presents combining statements for nonmajor governmental funds, internal service funds and fiduciary funds. The basic financial statements include two kinds of statements that present different views of the City:  The first two statements are government-wide financial statements that provide both long-term and short- term information about the City’s overall financial status.  The remaining statements are fund financial statements that focus on individual parts of the City government, reporting the City’s operations in more detail than the government-wide statements.  The governmental funds statements tell how general government services like public safety were financed in the short term as well as what remains for future spending.  Proprietary funds statements offer short-term and long-term financial information about the activities the government operates like businesses, such as the water and sewer system.  Fiduciary funds statements provide information about the fiduciary relationships – like the agency funds of the City – in which the City acts solely as agent or trustee for the benefit of others, to whom the resources in question belong. The financial statements also include notes that explain some of the information in the financial statements and provide more detailed data. The statements are followed by a section of required supplementary information that provides additional financial and budgetary information. Figure A-1 summarizes the major features of the City’s financial statements, including the portion of the City government they cover and the types of information they contain. The remainder of this overview section of management’s discussion and analysis explains the structure and contents of each of the statements. City of Gilroy Management’s Discussion and Analysis (Unaudited) For the Year Ended June 30, 2021 7 Figure A-1 Major Features of the City’s Government-wide and Fund Financial Statements ` Fund Statements Government-wide Statements Governmental Funds Proprietary Funds Fiduciary Funds Scope Entire City government (except fiduciary funds) The activities of the City that are not proprietary or fiduciary Activities the City operates similar to private businesses Instances in which the City is the trustee or agent for someone else’s resources Required financial statements  Statement of net position  Statement of activities  Balance sheet  Statement of revenues, expenditures and changes in fund balances  Statement of net position  Statement of revenues, expenses and changes net position  Statement of cash flows  Statement of fiduciary net position  Statement of change in fiduciary net position Accounting basis and measurement focus Accrual accounting and economic resources focus Modified accrual accounting and current financial resources focus Accrual accounting and economic resources focus Accrual accounting and economic resources focus Type of asset/ liability information All assets, deferred outflows of resources and liabilities, both financial and capital, and short-term and long-term Only assets expected to be used up and liabilities and deferred inflows of resources that come due during the year or soon thereafter; no capital assets or long-term debt included All assets, deferred outflows of resources and liabilities, both financial and capital, and short-term and long-term All assets and liabilities, both short- term and long-term; the City’s fiduciary funds do not currently contain capital assets, although they can Type of inflow/ outflow information All revenues and expenses during year, regardless of when cash is received or paid Revenues for which cash is received during or soon after the end of the year; expenditures when goods or services have been received and payment is due during the year or soon thereafter All revenues and expenses during the year, regardless of when cash is received or paid All revenues and expenses during the year, regardless of when cash is received or paid City of Gilroy Management’s Discussion and Analysis (Unaudited) For the Year Ended June 30, 2021 8 Reporting the City as a Whole The accompanying government-wide financial statements include two statements that present financial data for the City as a whole. One of the most important questions asked about the City’s finances is, “Is the City as a whole better off or worse off as a result of the year’s activities?” The Statement of Net Position and the Statement of Activities report information about the City as a whole and about its activities in a way that helps answer this question. These statements include all assets, deferred outflows of resources and liabilities using the accrual basis of accounting, which is similar to the accounting used by most private-sector companies. All of the current year’s revenues and expenses are considered regardless of when cash is received or paid. These two statements report the City’s net position and changes in them. You can think of the City’s net position – the difference between assets, deferred inflows/outflows of resources and liabilities – as one way to measure the City’s financial health, or financial position. Over time, increases and decreases in the City’s net position are one indicator of whether its financial health is improving or deteriorating. You will need to consider other nonfinancial factors, however, such as changes in the City’s property tax base and the condition of the City’s roads, to assess the overall health of the City. In the Statement of Net Position and the Statement of Activities, we divide the City into two kinds of activities:  Governmental activities - Most of the City’s basic services are reported here. Sales taxes, property taxes, and other revenues finance most of these activities.  Business-type activities - The City charges a fee to customers to help it cover all or most of the cost of the services accounted for in these funds. Reporting the City’s Major Funds The fund financial statements provide detailed information about the City’s most significant funds – not the City as a whole. Some funds are required to be established by State law or by bond covenants. However, City Council establishes many other funds to help it control and manage money for particular purposes or to show that it is meeting administrative responsibilities for using certain taxes, grants, or other money (such as grants received). The City’s two kinds of funds – governmental and proprietary – use different accounting approaches.  Governmental funds - Most of the City’s basic services are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year end that are available for spending. These funds are reported using an accounting method called modified accrual accounting, which measures cash and all other current financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short- term view of the City’s general government operations and the basic services it provides. Governmental fund information helps you determine whether there are more or fewer financial resources that can be spent in the near future to finance the City’s programs. We describe the relationship or differences between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds in reconciliations following the fund financial statements. City of Gilroy Management’s Discussion and Analysis (Unaudited) For the Year Ended June 30, 2021 9  Proprietary funds - When the City charges customers for the services it provides - whether to outside customers or to other units of the City - these services are generally reported in proprietary funds. Proprietary funds are reported in the same way that all activities are reported in the Statement of Net Position and the Statement of Activities. In fact, the City’s enterprise funds (a component of proprietary funds) are the same as the business-type activities we report in the government-wide statements but provide more detail and additional information, such as cash flows for proprietary funds. We use internal service funds (the other component of proprietary funds) to report activities that provide supplies and services for the City’s other programs and activities. Reporting the City’s Fiduciary Responsibilities The City is an agent for certain assets held for, and under the control of, other organizations and individuals. All of the City’s fiduciary activities are reported in a separate Statement of Fiduciary Net Position and Changes in Fiduciary Net Position. We exclude these activities from the City’s other financial statements because the City cannot use these assets to finance its operations. The City is responsible for ensuring that the assets reported in these funds are used for their intended purposes. GOVERNMENT-WIDE FINANCIAL STATEMENTS Figure 1: A summary of the government-wide statement of net position (in millions) follows: 2021 2020 2021 2020 2021 2020 Cash and investments $ 108.0 $ 95.3 $ 100.9 $ 44.5 $ 208.9 $ 139.8 Other Assets 11.3 10.6 70.3 73.7 81.6 84.3 Capital Assets 210.1 216.7 85.9 91.4 296.0 308.1 Total Assets 329.4 322.6 257.1 209.6 586.5 532.2 Deferred Outflows 14.8 13.7 2.9 2.5 17.7 16.2 Other Liabilities 21.1 13.7 3.8 3.7 24.9 17.4 Long term liabilities outstanding 155.6 151.4 73.5 20.6 229.1 172.0 Total Liabilities 176.7 165.1 77.3 24.3 254.0 189.4 Deferred Inflows 2.5 4.8 0.4 0.8 2.9 5.6 Net Position Net investment in capital assets 149.9 151.9 83.1 86.5 233.0 238.4 Restricted 57.6 57.1 - - 57.6 57.1 Unrestricted (42.6) (42.6) 99.2 97.5 56.6 54.9 Total Net Position $ 164.9 $ 166.4 $ 182.3 $ 184.0 $ 347.2 $ 350.4 Governmental Activities Business-Type Activities Total City of Gilroy Management’s Discussion and Analysis (Unaudited) For the Year Ended June 30, 2021 10 Figure 2: A summary of the government-wide statement of activities follows: Changes in Net Position (In millions) The increase or decrease in net position can provide an indication as to whether the overall position of the City improved or deteriorated during the year. Governmental Activities: Figure 1 – Statement of Net Position illustrates the total net position decreased by $1.5 million compared to the prior year, primarily in net investment in capital assets. Total asset’s increased by $6.8 million primarily in the cash and investment category, offset by an increase in total liabilities attributable to pension and OPEB liabilities. Figure 2 – Statement of Activities illustrates the program level revenues and expenditures for the fiscal year. Total revenues for governmental activities were $75.1 million, or about 8%, higher compared to the prior year primarily in the areas of charges for services and operating grant and contributions. Total expenditures for governmental activities were $76.0 million, or about 6%, less compared to the prior year, notably due to decreased spending in public works program. 2021 2020 2021 2020 2021 2020 Revenues Program revenues: Charges for services 12.1$ 9.4$ 27.5$ 27.5$ 39.6$ 36.9$ Operating grants and contributions 16.5 14.2 - - 16.5 14.2 Capital grants and contributions 2.0 1.9 2.5 2.4 4.5 4.3 General revenues: Taxes 43.4 41.6 - - 43.4 41.6 Investment income (loss)0.5 2.0 (0.1) - 0.4 2.0 Miscellaneous 0.6 0.2 - 1.2 0.6 1.4 Share of DCU net loss (sewer)- - (2.0) (2.1) (2.0) (2.1) Total revenues 75.1 69.3 27.9 29.0 103.0 98.3 Expenses: General government 7.3 6.1 - - 7.3 6.1 Public safety 40.8 40.1 - - 40.8 40.1 Public works 16.9 23.5 - - 16.9 23.5 Community development 7.1 8.6 - - 7.1 8.6 Recreation services 1.8 - - - 1.8 - Interest expense 2.1 2.4 - - 2.1 2.4 Water - - 16.4 12.6 16.4 12.6 Sewer - - 13.8 12.6 13.8 12.6 Total expenses 76.0 80.7 30.2 25.2 106.2 105.9 Change in net position before transfers (0.9) (11.4) (2.3) 3.8 (3.2) (7.6) Transfers (0.6) (0.4) 0.6 0.4 - - Change in net position (1.5) (11.8) (1.7) 4.2 (3.2) (7.6) Net position, beginning of year (as restated)166.4 178.2 184.0 179.8 350.4 358.0 Net position, end of year 164.9$ 166.4$ 182.3$ 184.0$ 347.2$ 350.4$ Business-type Activities TotalGovernmental Activities City of Gilroy Management’s Discussion and Analysis (Unaudited) For the Year Ended June 30, 2021 11 Business-type Activities: Figure 1 – Statement of Net Position illustrates the total net position for business-type activities decreased by $1.7 million compared to the prior year, primarily in the unrestricted net position. Total assets increased by $47.5 million notably in the cash and investment category, offset by an increase in the long-term liabilities due to the issuance of the sewer revenue bonds, series 2021, during the fiscal year. Figure 2 - Statement of Activities illustrates the total revenues for business-type activities were $27.9 million, excluding transfers, a decrease of $1.1 million from prior year, due to lower interest earnings. Total expenditures for business-type activities were $30.2 million, about $5.0 million higher than prior year, due to increased expenditures in water and sewer enterprise. The last rate increases for both utilities were implemented in fiscal year 2019. On October 19, 2021, Governor Gavin Newsom declared a drought emergency across the state, urging residents to conserve water. The measures are expected to have an impact to the water sales revenue, requiring a review of the current rate structure to ensure the utilities are not adversely impacted in their operations and to ensure the health and safety of both systems. MAJOR FUNDS As noted earlier, the City uses fund accounting to provide proper financial management of the City’s resources and to demonstrate compliance with finance-related legal requirements. Major Governmental Funds. The General Fund is the chief operating fund of the City. The City combines its Sidewalk Repair, Library Reserve, Golf Course and Community Recreation special revenue funds with the City’s General Fund for financial statement presentation as required under GASB 54 as they are subsidized by the general fund. At the end of FY21, the total fund balance of the general fund (as presented in the aforementioned manner) was $19.6 million. Revenues increased between the years ended June 30, 2020 and June 30, 2021 primarily as a result of increased property tax revenue, and charges for services in the areas of plan check and inspection fees and building permits. During FY21, the City continued to see economic recovery from the covid-19 pandemic induced recession. The Public Facilities Impact Capital Projects Fund has a total fund deficit of $5.4 million. The fund balance improved by $1.0 million by a combination of increased impact fee revenue from several major development projects, notably in the residential multi-family category, and decreased expenditures, notably in capital outlay category. In February 2008, this fund borrowed $13.7 million from several funds for the purchase of Gilroy Gardens. See Note 3, in the Notes to the Basic Financial Statements for additional information. The balance outstanding at June 30, 2021 is $6.3 million. Major Enterprise Funds. Unrestricted net position of the Sewer Fund at the end of the year amounted to $78.5 million and for the Water Fund amounted to $20.7 million. GENERAL FUND The final budgeted operating revenues of the General Fund were $58.1 million. The actual operating revenues of the General Fund were $55.9 million, $2.2 million less than the final budget, primarily due to lower than expected sales tax and permit revenue received as a result of the ongoing pandemic and related measures enacted at the state and county level. The final budgeted operating expenditures of the General Fund were $54.6 million. The actual operating expenditures of the General Fund were $51.0 million, approximately $3.6 million less than the final budget. The difference is primarily due to savings in personnel and operational expenditures in various programs. City of Gilroy Management’s Discussion and Analysis (Unaudited) For the Year Ended June 30, 2021 12 In June 2017, the City Council adopted a new general fund reserve policy that consisted of (i) an unrestricted General Fund Reserve of 20% of general fund expenditures and (ii) an Economic Stability Reserve of 10% of general fund expenditures that is intended to help the City weather a severe economic crisis. The following table summarizes the adopted general fund reserve policy: The Economic Stability Reserve shall only be used in extraordinary circumstances, upon satisfaction of one of the following “economic triggers” and with the majority vote of the City Council:  State take-away of significant revenue  Large drop in property taxes (decrease in assessed valuations)  Major business closures (sales tax and/or utility users’ tax impact)  Dramatic drop in development from projections  Large unexpected drop in sales taxes (or other primary revenues - utility users’ tax, franchise fees or transient occupancy tax) due to severe recession  The economic triggers cause the General Fund Reserve to fall below a predetermined percentage of expenditures (e.g. 20%). When the Economic Stability Reserve is used, the City is obligated to replenish the reserve by the end of the next biennial budget to 10% of the general fund expenditures for the given year. For FY21, the City enacted numerous expenditure adjustments to minimize the use of the City’s Unrestricted General Fund Reserve. At the start of the fiscal year, the City expected to utilize the entire Economic Stability Reserve (ESR). During the year, various economic stimuli were enacted by the federal government to trigger an economic recovery. The City received $5.5 million from the American Rescue Plan Act (ARPA) funding which has been recorded as unearned revenue at June 30, 2021, and is programmed to be expended during FY 22. At June 30, 2021, the City had replenished the ESR and exceeded the total minimum combined (30%) fund balance required by the Council policy. City of Gilroy Management’s Discussion and Analysis (Unaudited) For the Year Ended June 30, 2021 13 CAPITAL ASSETS The net decrease to capital assets, for both activities, during the year ended June 30, 2021 was due to depreciation expense. Additional information on the City’s capital assets can be found in the Notes 1(i) and 5 to the Basic Financial Statements. LONG-TERM DEBT As of June 30, 2021, the City’s governmental activities had bonded debt outstanding of $59.7 million, including unamortized premium. Of this amount, $25.6 million represents general obligation bonds secured solely by specified revenue sources, $33.3 million represents lease refunding revenue bonds, and $0.8 million represents streetlights related loan payable. As of June 30, 2021, the City’s business-type activities had $57.9 million bonded debt outstanding, consisting of $6.0 million of unamortized premium, $4.8 million of 2010 wastewater revenue refunding bonds, and the newly issued 2021 wastewater revenue bonds of $47.1 million. See Note 8 in the Notes to the Basic Financial Statements for a further discussion. 2021 2020 2021 2020 2021 2020 Land $ 21.3 $ 21.3 $ - $ - $ 21.3 $ 21.3 Construction in progress 7.3 8.8 0.1 7.6 7.4 16.4 Buildings and structures 78.6 77.8 - - 78.6 77.8 96.2 101.4 85.8 83.8 182.0 185.2 Furniture and equipment 6.7 7.4 - 6.7 7.4 Total $ 210.1 $ 216.7 $ 85.9 $ 91.4 $ 296.0 $ 308.1 Infrastructure/water and sewer mains and lines (in millions) Governmental activities Business-type activities Total 2021 2020 Governmental Acitities: Loan Payable 0.8$ 0.9$ General Obligation Bonds 25.6 26.6 Refunding Lease Revenue Bonds 33.3 36.7 Total Governmental Activities 59.7 64.2 Business-Type Acitivities Revenue Bonds 57.9 7.5 Total Business-Type Activities 57.9 7.5 Total Long-Term Debt 117.57$ 71.74$ City of Gilroy Management’s Discussion and Analysis (Unaudited) For the Year Ended June 30, 2021 14 Budgetary Highlights See the Required Supplementary Information in the City’s financial statements for a comparison of the City’s budgeted revenues and expenditures to actual revenues and expenditures. When preparing its budget, the City projects its revenues using realistic, but conservative methods so as to budget its expenditure appropriations in a prudent manner. As previously noted, the City has two unrestricted reserve levels – the Unrestricted General Fund Reserves and the Economic Stability Reserve, the latter being partially utilized during FY21. The City continues its conservative spending measures to ensure the long-term fiscal sustainability. In addition, the City continued economic incentive transfers from the general fund to the impact funds, to make these funds whole for the previously granted incentives. Economic Factors and Fiscal Year 21 Budgets On March 13, 2020 the City ceased in-person operations as a results of the Santa Clara County (SCC) Public Health “Stay-At-Home” order which also closed most of the City’s businesses to in-person activity through FY21. Although the pandemic is still ongoing, during FY21, the City experienced economic recovery as a result of federal stimulus funding made available for both the general public and municipalities across the nation to support the economy. The City has always taken a conservative approach in its spending in order to maintain a balanced budget – for and on behalf of the community – and will continue to be financially prudent during the current biennial budget. The City regularly reviews its revenues and expenditures and reports to the City Council to keep both the Council and the residents apprised of its current fiscal health and to ensure the adequate protection of the City’s financial resources. Contacting the City’s Financial Management This financial report is designed to provide our citizens, taxpayers, customers, and creditors with a general overview of the City’s finances and to show the City’s accountability for the money it receives. If you have questions about this report or need additional financial information, contact the Finance Director’s Office, at the City of Gilroy, 7351 Rosanna Street, Gilroy, California 95020. BASIC FINANCIAL STATEMENTS 15 This page intentionally left blank. 16 GOVERNMENT-WIDE FINANCIAL STATEMENTS 17 Discrete Component Unit (DCU) South County Governmental Business-Type Regional Wastewater Activities Activities Total Authority ASSETS Current assets: Cash and investments 105,132,693$ 45,781,461$ 150,914,154$ 8,893,106$ Cash and investments with fiscal agent 2,920,291 55,108,183 58,028,474 - Accounts receivable, net 96,385 3,699,027 3,795,412 173,167 Due from other governments 6,218,455 - 6,218,455 1,064,783 Inventory 91,449 310,497 401,946 - Prepaid items 12,084 - 12,084 - Interest receivable 883,652 - 883,652 - Loans receivable 3,214,755 - 3,214,755 - Due from primary government - - - 1,542,021 Due from DCU - 843,753 843,753 - Total current assets 118,569,764 105,742,921 224,312,685 11,673,077 Noncurrent assets: Land held for resale 706,754 - 706,754 - Equity investment in DCU (Note 7) - 65,461,335 65,461,335 - Capital assets - nondepreciable 28,622,389 108,139 28,730,528 27,811,293 Capital assets - depreciable, net 181,496,340 85,807,075 267,303,415 67,233,724 Total noncurrent assets 210,825,483 151,376,549 362,202,032 95,045,017 Total assets 329,395,247 257,119,470 586,514,717 106,718,094 DEFERRED OUTFLOWS OF RESOURCES Deferred charges on refunding - 62,127 62,127 - Deferred outflows of resources related to pensions 11,692,359 2,167,877 13,860,236 - Deferred outflows of resources related to OPEB 3,067,255 645,679 3,712,934 - Total deferred outflows of resources 14,759,614 2,875,683 17,635,297 - Primary Government City of Gilroy Statement of Net Position June 30, 2021 See accompanying Notes to the Basic Financial Statements 18 Discrete Component Unit (DCU) South County Governmental Business-Type Regional Wastewater Activities Activities Total Authority LIABILITIES Current liabilities: Accounts payable 2,824,374$ 582,185$ 3,406,559$ 796,324$ Accrued payroll and benefits 3,055,053 317,058 3,372,111 50,351 Deposits payable 2,852,473 20,745 2,873,218 - Interest payable 483,917 100,417 584,334 - Unearned revenues 6,256,473 - 6,256,473 - Due to DCU 1,132,239 409,782 1,542,021 - Due to the primary government - - - 843,753 Compensated absences, due within one year 249,279 25,000 274,279 - Claims payable, due within one year 1,440,000 - 1,440,000 - Long-term debt, due within one year 2,820,129 2,380,000 5,200,129 - Total current liabilities 21,113,937 3,835,187 24,949,124 1,690,428 Noncurrent liabilities: Compensated absences, due in more than one year 1,689,365 226,670 1,916,035 20,159 Claims payable, due in more than one year 4,918,812 - 4,918,812 - Long-term debt, due in more than one year 56,923,115 55,485,509 112,408,624 - Aggregate net pension liabilities 76,563,531 14,486,977 91,050,508 - Net OPEB liabilities 15,490,865 3,260,939 18,751,804 - Total noncurrent liabilities 155,585,688 73,460,095 229,045,783 20,159 Total liabilities 176,699,625 77,295,282 253,994,907 1,710,587 DEFERRED INFLOWS OF RESOURCES Deferred pension-related items 724,406 - 724,406 - Deferred OPEB-related items 1,814,525 381,971 2,196,496 - Total deferred inflows of resources 2,538,931 381,971 2,920,902 - NET POSITION Net investment in capital assets 149,891,568 83,119,598 233,011,166 95,045,017 Restricted for: Nonspendable: Minority interest of DCU (Note 7) - - - 44,103,153 Spendable: Public safety 459,026 - 459,026 - Community development 9,183,217 - 9,183,217 - Public works 45,663,391 - 45,663,391 - Debt service 2,264,934 - 2,264,934 - Total restricted 57,570,568 - 57,570,568 44,103,153 Unrestricted (deficit) (42,545,831) 99,198,302 56,652,471 (34,140,663) Total net position 164,916,305$ 182,317,900$ 347,234,205$ 105,007,507$ June 30, 2021 Statement of Net Position (Continued) City of Gilroy Primary Government See accompanying Notes to the Basic Financial Statements 19 Capital Grants Charges for Operating Grants and Expenses Services and Contributions Contributions Functions/Programs Primary Government (PG) Governmental Activities: General government 7,315,868$ 2,815,647$ -$ -$ Public safety 40,797,962 1,242,281 665,683 - Community development 7,147,532 4,185,811 1,321,563 1,937,064 Public works 16,862,660 3,593,959 14,495,658 63,293 Recreation services 1,779,121 223,154 - - Interest 2,081,420 - - - Total Governmental Activities 75,984,563 12,060,852 16,482,904 2,000,357 Business-Type Activities: Sewer 15,820,944 12,702,398 - 1,894,350 Water 16,435,598 14,830,153 - 616,709 Total Business-Type Activities 32,256,542 27,532,551 - 2,511,059 Total Primary Government 108,241,105$ 39,593,403$ 16,482,904$ 4,511,416$ Discretely Presented Component Unit (DCU) South County Regional Wastewater Authority 13,711,342$ 13,483,246$ -$ -$ City of Gilroy Statement of Activities For the Year Ended June 30, 2021 Program Revenues See accompanying Notes to the Basic Financial Statements 20 Discrete Component Unit (DCU) South County Governmental Business-Type Regional Wastewater Activities Activities Total Authority Functions/Programs Primary Government (PG) Governmental Activities: General government (4,500,221)$ -$ (4,500,221)$ -$ Public safety (38,889,998) - (38,889,998) - Community development 296,906 - 296,906 - Public works 1,290,250 - 1,290,250 - Recreation services (1,555,967) - (1,555,967) - Interest (2,081,420) - (2,081,420) - Total Governmental Activities (45,440,450) - (45,440,450) - Business-Type Activities: Sewer - (1,224,196) (1,224,196) - Water - (988,736) (988,736) - Total Business-Type Activities - (2,212,932) (2,212,932) - Total Primary Government (45,440,450) (2,212,932) (47,653,382) - Discretely Presented Component Unit (DCU) South County Regional Wastewater Authority - - - (228,096) General Revenues: Taxes: Property taxes 17,016,855 - 17,016,855 - Sales taxes 18,584,534 - 18,584,534 - Transient occupancy taxes 1,105,300 - 1,105,300 - Franchise taxes 1,732,613 - 1,732,613 - Utility users tax 4,400,681 - 4,400,681 - Real property transfer taxes 629,472 - 629,472 - Investment earnings 502,770 (157,277) 345,493 - Miscellaneous 644,291 - 644,291 - Transfers (641,121) 641,121 - Total General Revenues 43,975,395 483,844 44,459,239 - Changes in Net Position (1,465,055) (1,729,088) (3,194,143) (228,096) Net Position - Beginning, as restated (Note 16)166,381,360 184,046,988 350,428,348 105,235,603 Net Position - Ending 164,916,305$ 182,317,900$ 347,234,205$ 105,007,507$ Net (Expense) Revenue and Changes in Net Position City of Gilroy Statement of Activities (Continued) For the Year Ended June 30, 2021 See accompanying Notes to the Basic Financial Statements 21 This page intentionally left blank. 22 FUND FINANCIAL STATEMENTS 23 This page intentionally left blank. 24 GOVERNMENTAL FUND FINANCIAL STATEMENTS 25 This page intentionally left blank. 26 Capital Projects Fund Public Other General Facilities Governmental Fund Impact Funds Total ASSETS Cash and investments 25,208,601$ 861,563$ 59,129,272$ 85,199,436$ Receivables: Accounts 44,752 - 34,381 79,133 Due from other governments 5,881,343 - 337,112 6,218,455 Interest 110,116 - 773,536 883,652 Loans - - 3,214,755 3,214,755 Advances from other funds - - 2,366,705 2,366,705 Inventory 47,874 - - 47,874 Land held for resale - - 706,754 706,754 Restricted assets: Cash and investments with fiscal agents - - 920,291 920,291 Total assets 31,292,686$ 861,563$ 67,482,806$ 99,637,055$ LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Liabilities: Accounts payable 540,322$ 1,304$ 1,499,919$ 2,041,545$ Accrued liabilities 2,283,839 - 187,139 2,470,978 Deposits payable 2,817,174 - 35,299 2,852,473 Unearned revenue 6,018,108 - 238,365 6,256,473 Advances to other funds - 6,257,747 - 6,257,747 Due to the component unit - - 1,132,239 1,132,239 Total liabilities 11,659,443 6,259,051 3,092,961 21,011,455 Deferred inflows of resources: Unavailable revenues - - 722,123 722,123 Total deferred inflows of resources - - 722,123 722,123 Fund balances: Nonspendable 47,874 - - 47,874 Restricted - - 58,391,239 58,391,239 Assigned - - 5,276,537 5,276,537 Unassigned (deficit)19,585,369 (5,397,488) (54) 14,187,827 Total fund balances 19,633,243 (5,397,488) 63,667,722 77,903,477 Total liabilities, deferred inflows of resources, and fund balances 31,292,686$ 861,563$ 67,482,806$ 99,637,055$ City of Gilroy Balance Sheet June 30, 2021 Governmental Funds See accompanying Notes to the Basic Financial Statements 27 Total Fund Balances - Total Governmental Funds 77,903,477$ Nondepreciable, net of $1,758,826 reported in Internal Service Fund 26,863,563$ Depreciable, net of $4,628,891 reported in Internal Service Fund 176,867,449 203,731,012 Bonds payable (55,799,646)$ Premium on bonds payable (3,177,681) Loans payable (765,917) Interest payable (483,917) Compensated absences, net of $91,484 reported in Internal Service Fund (1,847,160) (62,074,321) Pension related deferred outflows of resources 11,692,359$ Aggregate net pension liability (76,563,531) Pension related deferred inflows of resources (724,406) (65,595,578) OPEB related deferred outflows of resources 3,067,255$ Aggregate net OPEB liability (15,490,865) OPEB related deferred inflows of resources (1,814,525) (14,238,135) 722,123 24,467,727 Net Position of Governmental Activities 164,916,305$ City of Gilroy Reconciliation of the Governmental Funds Balance Sheet to the June 30, 2021 Government-Wide Statement of Net Position Amounts reported for governmental activities in the Statement of Net Position were reported differently because: Long-term liabilities are not due and payable in the current period and accordingly are not reported as fund liabilities. All liabilities, both current and long-term, are reported in the Statement of Net Position: Capital assets used in governmental activities were not current financial resources. Therefore, they were not reported in the Governmental Funds Balance Sheet. Internal Service Funds were used by management to charge the costs of certain activities, such as insurance and equipment replacement to individual funds. The assets and liabilities of the Internal Service Funds were included in the governmental activities in the Government-Wide Statement of Net Position. Revenue reported as unavailable revenue in the governmental funds when it is not received soon enough after year-end to be considered available. The availability criteria does not apply to the Government-Wide Financial Statements and, therefore, the revenue is recognized when eligibility requirements are met and earned. Net pension liabilities and the related deferred outflows of resources and deferred inflows of resources are not due and payable in the current period or not available for current expenditures and are not reported in the governmental fund financial statements: Net OPEB liabilities and the related deferred outflows of resources and deferred inflows of resources are not due and payable in the current period or not available for current expenditures and are not reported in the governmental fund financial statements: See accompanying Notes to the Basic Financial Statements 28 Capital Projects Fund Public Other General Facilities Governmental Fund Impact Funds Total Revenues: Taxes 43,223,009$ -$ 2,693,488$ 45,916,497$ Intergovernmental 244,556 - 6,367,718 6,612,274 Charges for services 7,947,218 4,325,852 5,211,797 17,484,867 Licenses and permits 2,278,304 - - 2,278,304 Fines and forfeitures 231,688 - - 231,688 Investment income (loss)(25,861) 4,624 379,689 358,452 Miscellaneous 1,979,322 281,104 606,843 2,867,269 Total revenues 55,878,236 4,611,580 15,259,535 75,749,351 Expenditures: Current: General government 5,696,954 - 234,068 5,931,022 Public safety 34,888,755 - 967,428 35,856,183 Recreation services 1,702,666 - - 1,702,666 Community development 3,990,556 - 1,533,356 5,523,912 Public works 4,534,371 8,429 2,688,922 7,231,722 Capital outlay 213,465 - 6,029,592 6,243,057 Debt service: Principal retirement - - 2,817,325 2,817,325 Interest and fiscal charges - 91,343 2,693,031 2,784,374 Total expenditures 51,026,767 99,772 16,963,722 68,090,261 Revenues over (under) expenditures 4,851,469 4,511,808 (1,704,187) 7,659,090 Other financing sources (uses): Issuance of debt - - 16,459,825 16,459,825 Payment to refunded bond escrow - - (17,555,000) (17,555,000) Transfers in 334,031 40,763 23,931,305 24,306,099 Transfers out (397,146) (3,591,375) (20,965,283) (24,953,804) Total other financing sources (uses)(63,115) (3,550,612) 1,870,847 (1,742,880) Net Change in Fund Balances 4,788,354 961,196 166,660 5,916,210 Fund balances: Beginning of year, as restated (note 16) 14,844,889 (6,358,684) 63,501,062 71,987,267 End of year 19,633,243$ (5,397,488)$ 63,667,722$ 77,903,477$ City of Gilroy Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds For the Year Ended June 30, 2021 See accompanying Notes to the Basic Financial Statements 29 Net Change in Fund Balances - Total Governmental Funds 5,916,210$ Capital outlay, net of $1,121,175 in Internal Service Fund and $1,877,390 which was expensed 4,365,667$ Depreciation, net of $707,518 in Internal Service Funds (10,882,545) Net effect on disposal of capital assets (525,457) (7,042,335) 46,153 (16,459,825) Bonds payable - scheduled debt service 2,725,813$ Bonds payable - refunded debt service 17,555,000 Loans payable 91,512 20,372,325 157,592 545,362 19,497 (2,287,597) (682,770) (2,049,667) Change in Net Position of Governmental Activities (1,465,055)$ Internal Service Funds are used by management to charge the costs of certain activities, such as insurance and equipment replacement, to individual funds. The net revenue of the Internal Service Funds is reported in governmental activities. Certain pension expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. Certain OPEB expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. Compensated absences were reported in the Government-Wide Statement of Activities, but they did not require the use of current financial resources. Therefore, compensated absences were not reported as expenditures in the governmental funds. Net change in revenues that was considered unavailable in the governmental funds. These items have been reported as revenue in the Statement of Activities. Amortization of bond discount was recognized in interest expense on the Government-Wide Statement of Activities, but did not require the use of current financial resources. Therefore amortization of bond discount was not reported as an expenditure in the governmental funds. Proceeds from the issuance of long-term debt is not a revenue in the Statement of Activities, but is reported as a liability on the Government-Wide Statement of Net Position. Principal repayment on long-term debt is not an expense in the Statement of Activities, but is considered an expenditure in governmental funds. Interest accrued on long-term debt is reported in the Statement of Activities, but does not require the use of current financial resources. Therefore, accrued interest is not reported as an expenditure in governmental funds. This amount represents the change in accrued interest from the prior year. Capital assets used in governmental activities are not financial resources and therefore are not reported in governmental funds. Governmental activities in the Statement of Activities were reported differently because: City of Gilroy Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes For the Year Ended June 30, 2021 in Fund Balances to the Government-Wide Statement of Activities See accompanying Notes to the Basic Financial Statements 30 PROPRIETARY FUND FINANCIAL STATEMENTS 31 Governmental Activities Total Internal Enterprise Service Sewer Water Funds Funds ASSETS Current assets: Cash and investments 18,837,132$ 26,944,329$ 45,781,461$ 19,933,257$ Cash and investments with fiscal agent 55,108,183 - 55,108,183 2,000,000 Accounts Receivable 1,757,205 1,941,822 3,699,027 17,252 Inventory - 310,497 310,497 43,575 Prepaid items - - - 12,084 Due from DCU 843,753 - 843,753 - Total current assets 76,546,273 29,196,648 105,742,921 22,006,168 Noncurrent assets: Advances to other funds (Note 3) - - - 3,891,042 Equity investment in DCU (Note 7) 65,461,335 - 65,461,335 - Capital assets: Capital assets, not depreciated - 108,139 108,139 1,758,826 Capital assets, depreciated, net 31,611,884 54,195,191 85,807,075 4,628,891 Total noncurrent assets 97,073,219 54,303,330 151,376,549 10,278,759 Total assets 173,619,492 83,499,978 257,119,470 32,284,927 DEFERRED OUTFLOWS OF RESOURCES Deferred amount on refunding 62,127 - 62,127 - Deferred outflows of resources related to pension 1,116,886 1,050,991 2,167,877 - Deferred outflows of resources related to OPEB 293,693 351,986 645,679 - Total deferred outflows of resources 1,472,706 1,402,977 2,875,683 - June 30, 2021 Proprietary Funds Statement of Net Position City of Gilroy Business-Type Activities See accompanying Notes to the Basic Financial Statements 32 Governmental Activities Total Internal Enterprise Service Sewer Water Funds Funds LIABILITIES Current liabilities: Accounts payable 42,697 539,488 582,185 782,829 Accrued liabilities 150,400 166,658 317,058 584,075 Deposits payable - 20,745 20,745 - Interest payable 100,417 - 100,417 - Due to DCU 409,782 - 409,782 - Compensated absences, current portion 11,000 14,000 25,000 9,100 Claims payable, current portion - - - 1,440,000 Bond payable, current portion 2,380,000 - 2,380,000 - Total current liabilities 3,094,296 740,891 3,835,187 2,816,004 Noncurrent liabilities: Compensated absences 95,780 130,890 226,670 82,384 Claims payable - - - 4,918,812 Bond payable 55,485,509 - 55,485,509 - Net pension liability 7,463,661 7,023,316 14,486,977 - Net OPEB liability 1,483,268 1,777,671 3,260,939 - Total noncurrent liabilities 64,528,218 8,931,877 73,460,095 5,001,196 Total liabilities 67,622,514 9,672,768 77,295,282 7,817,200 DEFERRED INFLOW OF RESOURCES Deferred inflow of resources related to OPEB 173,743 208,228 381,971 - Total deferred inflows of resources 173,743 208,228 381,971 - NET POSITION Net investment in capital assets 28,816,268 54,303,330 83,119,598 6,387,717 Unrestricted 78,479,673 20,718,629 99,198,302 18,080,010 Total net position 107,295,941$ 75,021,959$ 182,317,900$ 24,467,727$ City of Gilroy Statement of Net Position (Continued) Proprietary Funds June 30, 2021 Business-Type Activities See accompanying Notes to the Basic Financial Statements 33 This page intentionally left blank. 34 Governmental Activities Total Internal Enterprise Service Sewer Water Funds Funds OPERATING REVENUES: Charges for services 12,702,398$ 14,815,350$ 27,517,748$ 26,583,342$ Miscellaneous - 14,803 14,803 1,628,614 TOTAL OPERATING REVENUES 12,702,398 14,830,153 27,532,551 28,211,956 OPERATING EXPENSES: Operations 10,853,866 13,589,177 24,443,043 24,180,510 Depreciation 1,505,087 1,368,486 2,873,573 707,518 Billing 678,651 678,571 1,357,222 - Administration 720,726 799,364 1,520,090 282,999 Claims and judgments - - - 3,777,857 Insurance premiums - - - 1,463,945 TOTAL OPERATING EXPENSES 13,758,330 16,435,598 30,193,928 30,412,829 OPERATING INCOME (LOSS)(1,055,932) (1,605,445) (2,661,377) (2,200,873) NONOPERATING REVENUES (EXPENSES): Investment income (loss) (29,535) (127,742) (157,277) 144,622 Interest expense (79,785) - (79,785) - Share of DCU net loss (1,982,829) - (1,982,829) - Total Nonoperating Income (Loss)(2,092,149) (127,742) (2,219,891) 144,622 NET INCOME (LOSS) BEFORE TRANSFERS AND CAPITAL CONTRIBUTIONS (3,148,081) (1,733,187) (4,881,268) (2,056,251) TRANSFERS: Transfers in (Note 3) 692,874 - 692,874 6,584 Transfers out (Note 3) - (51,753) (51,753) - Capital contributions 1,894,350 616,709 2,511,059 - TOTAL TRANSFERS AND CAPITAL CONTRIBUTIONS 2,587,224 564,956 3,152,180 6,584 CHANGES IN NET POSITION (560,857) (1,168,231) (1,729,088) (2,049,667) NET POSITION: Beginning of the year 107,856,798 76,190,190 184,046,988 26,517,394 End of the year 107,295,941$ 75,021,959$ 182,317,900$ 24,467,727$ Proprietary Funds Statement of Revenues, Expenses, and Changes in Net Position City of Gilroy Business-Type Activities For the Year Ended June 30, 2021 See accompanying Notes to the Basic Financial Statements 35 Governmental Activities Total Internal Enterprise Service Sewer Water Funds Funds CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers and users 12,630,231$ 14,806,003$ 27,436,234$ 28,227,904$ Cash paid to suppliers for goods and services (8,450,384) (11,026,870) (19,477,254) (22,582,480) Cash paid to employees for services (2,889,586) (3,137,945) (6,027,531) (1,864,715) Cash paid for insurance claims - - - (2,505,435) Net Cash Provided by (Used in) Operating Activities 1,290,261 641,188 1,931,449 1,275,274 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Cash received from other funds 692,874 (51,753) 641,121 354,073 Net Cash Provided by (Used in) Noncapital Financing Activities 692,874 (51,753) 641,121 354,073 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Proceeds from issuance of debt 52,702,750 - 52,702,750 - Acquisition of capital assets 1,894,350 3,235,003 5,129,353 (1,121,175) Principal paid (2,150,000) - (2,150,000) - Interest paid (297,499) - (297,499) - Net Cash (Used in) Capital and Related Financing Activities 52,149,601 3,235,003 55,384,604 (1,121,175) CASH FLOWS FROM INVESTING ACTIVITIES: Capital contributions to DCU (1,433,612) - (1,433,612) - Interest received (29,535) (127,742) (157,277) 144,622 Net Cash Provided by Investing Activities (1,463,147) (127,742) (1,590,889) 144,622 Net Change In Cash and Cash Equivalents 52,669,589 3,696,696 56,366,285 652,794 CASH AND CASH EQUIVALENTS: Beginning of year 21,275,726 23,247,633 44,523,359 21,280,463 End of year 73,945,315$ 26,944,329$ 100,889,644$ 21,933,257$ CASH AND CASH EQUIVALENTS: Cash and investments 18,837,132$ 26,944,329$ 45,781,461$ 19,933,257$ Cash and investments with fiscal agent 55,108,183 - 55,108,183 2,000,000 Total cash and cash equivalents 73,945,315$ 26,944,329$ 100,889,644$ 21,933,257$ City of Gilroy Statement of Cash Flows Proprietary Funds For the Year Ended June 30, 2021 Business-Type Activities See accompanying Notes to the Basic Financial Statements 36 Governmental Activities Total Internal Enterprise Service Sewer Water Funds Funds Reconciliation of Operating Income (Loss) to Net Cash Provided by (Used in) Operating Activities: Operating income (loss) (1,055,932)$ (1,605,445)$ (2,661,377)$ (2,200,873)$ Adjustments to reconcile to net cash provided by Operating activities: Depreciation 1,505,087 1,368,486 2,873,573 707,518 Noncapital financing activities: Share of DCU net loss (549,217) - (549,217) - Changes in assets and liabilities: (Increase)/decrease in accounts receivables (72,167) 12,775 (59,392) 15,948 (Increase)/decrease in inventory of materials - 160,074 160,074 (4,602) (Increase)/decrease in prepaid items - - - 80,160 (Increase)/decrease in due from DCU 200,614 - 200,614 - (Increase)/decrease in investment in DCU 88,478 - 88,478 - (Increase)/decrease in deferred outflows of resources related to pension 99 4,839 4,938 - (Increase)/decrease in deferred outflows of resources related to OPEB (217,035) (260,113) (477,148) - Increase/(decrease) in accounts payable (10,058) (169,453) (179,511) 121,784 Increase/(decrease) in accrued liabilities (20,716) 8,089 (12,627) (152,513) Increase/(decrease) in deposits payable - (36,925) (36,925) - Increase/(decrease) in due to DCU 260,125 - 260,125 - Increase/(decrease) in compensated absences (20,276) 2,469 (17,807) (28,515) Increase/(decrease) in claims payable - - - 2,736,367 Increase/(decrease) in net pension liabilities 1,043,840 954,982 1,998,822 - Increase/(decrease) in net OPEB liabilities 328,835 394,103 722,938 - Increase/(decrease) in deferred inflows of resources (144,993) (137,055) (282,048) - Increase/(decrease) in deferred inflows of resources related to OPEB (46,423) (55,638) (102,061) - Net Cash Provided by Operating Activities 1,290,261$ 641,188$ 1,931,449$ 1,275,274$ Noncash Financing, capital or Investing activities: City share of DCU net loss (1,982,829)$ -$ -$ -$ Capital asset contributions 1,894,350$ 616,709$ 2,511,059$ -$ City of Gilroy Statement of Cash Flows (Continued) Proprietary Funds For the Year Ended June 30, 2021 Business-Type Activities See accompanying Notes to the Basic Financial Statements 37 This page intentionally left blank. 38 FIDUCIARY FUND FINANCIAL STATEMENTS 39 This page intentionally left blank. 40 Custodial Funds ASSETS Cash and investments 816,428$ Cash and investments with fiscal agent 290,613 Total assets 1,107,041 NET POSITION Restricted For: Individuals, organizations and other governments 1,107,041 Total net position 1,107,041$ June 30, 2021 Statement of Fiduciary Net Position City of Gilroy Fiduciary Funds See accompanying Notes to the Basic Financial Statements 41 Custodial Funds REVENUES: Taxes 920,975$ Investment income 995 Total revenues 921,970 EXPENDITURES: General administration 27,042 Payments on conduit bonds - principal 651,251 Payments on conduit bonds - interest 228,952 Total expenditures 907,245 CHANGE IN NET POSITION 14,725 NET POSITION: Beginning of year, as restated (Note 16)1,092,316 End of year 1,107,041$ City of Gilroy Statement of Changes in Fiduciary Net Position Fiduciary Funds June 30, 2021 See accompanying Notes to the Basic Financial Statements 42 43 NOTES TO THE BASIC FINANCIAL STATEMENTS 44 This page intentionally left blank. City of Gilroy Index to the Notes to the Basic Financial Statements For the Year Ended June 30, 2021 45 Page Note 1 – Summary of Significant Accounting Policies ..................................................................................... 47 A. Description of the Reporting Entity ............................................................................................... 47 B. Basis of Accounting and Measurement Focus ............................................................................... 48 C. Cash and Investments ..................................................................................................................... 50 D. Interfund Loans Receivable and Payable ....................................................................................... 51 E. Accounts and Due from Other Governments ................................................................................. 51 F. Loans Receivable ........................................................................................................................... 51 G. Inventories ...................................................................................................................................... 52 H. Land Held for Resale...................................................................................................................... 52 I. Capital Assets ................................................................................................................................. 52 J. Deferred Outflows/Inflows of Resources ....................................................................................... 52 K. Interest Payable .............................................................................................................................. 53 L. Unearned Revenue ......................................................................................................................... 53 M. Compensated Absences .................................................................................................................. 53 N. Net Pension Liability ...................................................................................................................... 53 O. Other Postemployment Benefits Liability ...................................................................................... 54 P. Claims Payable ............................................................................................................................... 54 Q. Net Position .................................................................................................................................... 54 R. Fund Balances ................................................................................................................................ 54 S. Spending Policy ............................................................................................................................. 55 T. Property Taxes ............................................................................................................................... 56 U. Use of Estimates ............................................................................................................................. 56 V. Implementation of New GASB Pronouncements .......................................................................... 57 Note 2 – Stewardship, Compliance and Accountability ................................................................................... 57 A. Encumbrances ................................................................................................................................ 57 B. Continuing Appropriations ............................................................................................................. 57 C. Deficit Fund Balances/Net Position ............................................................................................... 58 D. Excess of Expenditure Over Appropriations .................................................................................. 58 Note 3 – Cash and Investments .......................................................................................................................... 58 A. Demand Deposits ........................................................................................................................... 59 B. Investments Authorized by the California Government Code and the City's Investment Policy ................................................................................................................. 60 C. Fair Value Measurements ............................................................................................................... 60 D. Disclosures Relating to Interest Rate Risk ..................................................................................... 61 E. Disclosures Relating to Credit Risk ............................................................................................... 61 F. Concentration of Credit Risk .......................................................................................................... 61 G. Custodial Credit Risk ..................................................................................................................... 61 H. Investment in State Investment Pool .............................................................................................. 62 I. Investment Agreement ................................................................................................................... 62 Note 4 – Loans Receivable .................................................................................................................................. 63 City of Gilroy Index to the Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 46 Page Note 5 – Interfund Transactions ........................................................................................................................ 63 A. Advances to/from Other Funds ........................................................................................................ 63 B. Transfers ........................................................................................................................................... 64 C. Due to/from Component Unit .......................................................................................................... 64 Note 6 – Capital Assets ........................................................................................................................................ 65 Note 7 – Equity Investment in Discretely Presented Component Unit ........................................................... 67 Note 8 – Deferred Compensation ........................................................................................................................ 68 Note 9 – Long-Term Liabilities ........................................................................................................................... 68 A. Governmental Activities ................................................................................................................. 68 B. Business-Type Activities ................................................................................................................. 72 C. Debt without Government Commitment ......................................................................................... 74 Note 10 – Defined Benefit Pension Plans (CalPERS) ........................................................................................ 75 A. Summary ......................................................................................................................................... 75 B. General Information about the Pension Plans ................................................................................. 76 C. Net Pension Liability ....................................................................................................................... 78 D. Changes in the Net Pension Liability .............................................................................................. 80 E. Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions .................... 81 Note 11 – Other Postemployment Healthcare Plan ........................................................................................... 82 Note 12 – Claims Payable .................................................................................................................................... 86 Note 13 – Risk Management................................................................................................................................ 86 Note 14 – Commitments and Contingencies ...................................................................................................... 87 Note 15 – Classification of Fund Balances ......................................................................................................... 88 Note 16 – Prior Period Adjustments ................................................................................................................... 89 Note 17 – Subsequent Events .............................................................................................................................. 90 City of Gilroy Notes to the Basic Financial Statements For the Year Ended June 30, 2021 47 Note 1 – Summary of Significant Accounting Policies The basic financial statements of the City of Gilroy, California, (the “City”) have been prepared in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) as applied to governmental agencies. The Governmental Accounting Standards Board (“GASB”) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The following is a summary of the City’s significant policies: A. Description of the Reporting Entity The City was incorporated in 1870 under the general laws of the State of California and became a charter city on January 8, 1960. The City operates under the Council-Administrator form of government. As required by accounting principles generally accepted in the United States of America, these financial statements present the City and its component units, entities for which the City is considered to be financially accountable. The City is considered to be financially accountable for an organization if the City appoints a voting majority of that organization’s governing body and the organization is able to provide specific financial benefits to or impose specific financial burdens on the City. The City is also considered to be financially accountable if an organization is fiscally dependent (i.e., it is unable to adopt its budget, levy taxes, set rates or charges or issue bonded debt without approval from the City). In certain cases, other organizations are included as component units if the nature and significance of their relationship with the City are such that their exclusion would cause the City’s financial statements to be misleading or incomplete. The Gilroy Public Facilities Financing Authority is considered to be a blended component unit of the reporting entity of the City because its sole purpose is to finance and construct the City’s public facilities. Blended component units, although legally separate entities, are in substance, part of the City’s operations and so data from these units are reported within the funds of the primary government. The Gilroy Public Facilities Financing Authority does not issue separate component unit financial statements. Discretely Presented Component Unit (“DCU”) The South County Regional Wastewater Authority (“Authority”) was created on July 1, 1992 by the City of Gilroy and City of Morgan Hill (“Member Agencies”). The purpose of the Authority is to plan and implement regional solutions to the wastewater treatment and management problems resulting from the generation of wastewater within the service areas of the Member Agencies. To achieve this purpose, the Authority constructs, maintains and operates facilities for sewage treatment and wastewater reclamation. The City of Gilroy and the City of Morgan Hill have a 58.1% and 41.9% capacity interest in the wastewater treatment plant, respectively which is used to determine the capital contribution amounts by the Member Agencies and the pro-rata share of the Authority’s income (loss). The Authority is governed by a Board of Directors, which consists of three members from the Gilroy City Council and two members from the Morgan Hill City Council. The Authority’s budget and annual contribution requirements are approved by the Board of Directors of the Authority. The City’s management provides accounting services, engineering services and administrative support to the Authority. Daily operations of the Authority have been contracted directly to a private provider of services for wastewater management and operations. The Authority is presented in a separate column to emphasize that it is legally separate from the City but provides a financial benefit to the City. Debt issued by the Authority requires approval by the City, and the City approves the budget of the Authority. Complete financial statements of the Authority can be obtained from the City’s administrative offices. City of Gilroy Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 48 Note 1 – Summary of Significant Accounting Policies (Continued) A. Description of the Reporting Entity (Continued) The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information about the reporting government as a whole, except for its fiduciary activities. All fiduciary activities are reported only in the fund financial statements. Governmental activities, which normally are supported by taxes, intergovernmental revenues and other nonexchange transactions, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. Likewise, the primary government is reported separately from discretely presented component . B. Basis of Accounting and Measurement Focus The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for by providing a separate set of self-balancing accounts that comprise its assets, liabilities, net position/fund balance, revenues and expenditures or expenses, as appropriate. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions. The minimum number of funds is maintained in accordance with legal and managerial requirements. Government-Wide Financial Statements The City’s Government-Wide Financial Statements include a Statement of Net Position and a Statement of Activities. These statements present summaries of governmental and business-type activities for the City accompanied by a total column. The DCU column in the government-wide statement of net position and statement activities includes the financial data of the Authority. The City’s equity investment in the Authority is reported in the Sewer Fund as an Equity Investment in the DCU and is adjusted annually using the equity method of accounting. Fiduciary activities of the City are not included in the Government-Wide statements. These financial statements are presented on an “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all of the City’s assets and liabilities, including capital assets, as well as infrastructure assets, and long-term liabilities, are included in the accompanying Statement of Net Position. The Statement of Activities presents changes in Net Position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. Certain types of transactions are reported as program revenues for the City in three categories:  Charges for services  Operating grants and contributions  Capital grants and contributions Certain eliminations have been made in regards to interfund activities, payables and receivables. All internal balances in the Statement of Net Position have been eliminated except those representing balances between the governmental activities and the business-type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities, internal service fund transactions have been eliminated; however, those transactions between governmental and business-type activities have not been eliminated. City of Gilroy Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 49 Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) The following interfund activities have been eliminated:  Due to/from other funds  Advances to/from other funds  Transfers in/out Governmental Fund Financial Statements Governmental Fund Financial Statements include a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances for all major governmental funds and nonmajor funds aggregated. An accompanying schedule is presented to reconcile and explain the differences between fund balance as presented in these statements to the net position presented in the Government-Wide Financial Statements. The City has presented all major funds that met the applicable criteria. All governmental funds are accounted for on a spending or "current financial resources" measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the Balance Sheet. The Statement of Revenues, Expenditures and Changes in Fund Balances presents increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period. Revenues are recognized as soon as they are both “measurable” and “available”. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. The primary revenue sources, which have been treated as susceptible to accrual by the City, are property tax, sales tax, intergovernmental revenues and other taxes. Expenditures are recorded in the accounting period in which the related fund liability is incurred. The Reconciliation of the Fund Financial Statements to the Government-Wide Financial Statements is provided to explain the differences created by the integrated approach of GASB Statement No. 34. The City reports the following major governmental funds: General Fund - The General Fund is used to account for resources traditionally associated with governments which are not required by law or sound financial management to be accounted for in another fund. Public Facilities Impact Capital Projects Fund - This fund has been established to track expenditures related to the construction of facilities for public use. Proprietary Fund Financial Statements Proprietary Fund Financial Statements include a Statement of Net Position, a Statement of Revenues, Expenses and Changes in Net Position, and a Statement of Cash Flows for each major Proprietary Fund. A separate column representing internal service funds is also presented in these statements. However, internal service balances and activities have been combined with the governmental activities in the Government-Wide Financial Statements. The City’s internal service funds include three individual funds which provide services directly to other City funds. These areas of service include - Fleet and Facilities, Information Technology, and Self-Insurance. City of Gilroy Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 50 Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Proprietary Fund Financial Statements (Continued) Proprietary funds are accounted for using the "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the Statement of Net Position. The Statement of Revenues, Expenses and Changes in Net Position presents increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. In these funds, receivables have been recorded as revenue and provisions have been made for uncollectible amounts. Operating revenues in the proprietary funds are those revenues that are generated from the primary operations of the fund. All other revenues are reported as nonoperating revenues. Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as nonoperating expenses. The City reports the following major enterprise fund: Sewer Fund - This fund is used to account for sewage stations and collection systems provided by the City to the public. Water Fund - This fund is used to account for water services provided by the City to the public. Fiduciary Fund Financial Statements Fiduciary fund financial statements include a Statement of Fiduciary Net Position and a Statement of Changes in Fiduciary Net Position. These funds have been established to account for assets received and held by the City while acting in the capacity of an agent or custodian. The City reports the following custodial funds: Custodial Funds – These funds account for resources held by the City in custodial capacity for special assessments collected to pay the bonded indebtedness for the Highway 152 Series Bonds and for the revenues that come from fundraising and donations used to buy equipment for the Senior Center. Discretely Presented Component Unit Financial Statements The activities of the Authority closely resemble those of ongoing businesses in which the purpose is to conserve and add to basic resources while meeting operating expenses from current revenues. The Authority provides services on a continuous basis and its activities are substantially financed by revenues derived from user charges and contributions from the member agencies. The Authority utilizes the accrual basis of accounting. Revenues are recognized when earned and expenses are recognized as they are incurred. C. Cash and Investments The City pools its available cash for investment purposes. Highly liquid market investments with maturities of one year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value. City of Gilroy Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 51 Note 1 – Summary of Significant Accounting Policies (Continued) C. Cash and Investments (Continued) U.S. GAAP defines fair value, establishes a framework for measuring fair value and establishes disclosures about fair value measurement. Investments, unless otherwise specified, recorded at fair value in the financial statements, are categorized based upon the level of judgment associated with the inputs used to measure their fair value. The three levels of the fair value measurement hierarchy are described below: Level 1 – Inputs are unadjusted, quoted prices for identical assets and liabilities in active markets at the measurement date. Level 2 – Inputs, other than quoted prices included in Level 1, that are observable for the assets and liabilities through corroboration with market data at the measurement date. Level 3 – Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the assets and liabilities at the measurement date. A statement of cash flows is presented for proprietary fund types. For purposes of reporting cash flows, the City considers all highly liquid investments with maturities of three months or less when purchased and cash and investments maintained in the City’s pool to be cash equivalents. Disclosures for deposits and investment risks, as required and applicable, have been provided in Note 2:  Interest Rate Risk  Credit Risk - Overall - Custodial Credit Risk - Concentration of Credit Risk D. Interfund Loans Receivable and Payable Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as “due from/to other funds” (i.e., current portion of interfund loans) or advances to/from other fund (i.e., non-current interfund loans). Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “interfund balances”. E. Accounts and Due from Other Governments All accounts and due from other governments are shown net of any allowance for doubtful accounts, if applicable, and estimated refunds due. F. Loans Receivable The accompanying financial statements reflect the recording of certain loans receivable that represent loans made to various parties for homebuyer and rehabilitation loan programs. Where reasonably estimable, an allowance for doubtful accounts has been recorded to reflect management’s best estimate of probable losses associated with nonrepayment. City of Gilroy Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 52 Note 1 – Summary of Significant Accounting Policies (Continued) G. Inventory Inventories are stated at cost using the first-in, first-out (FIFO) method. Inventories recorded in governmental funds are recorded as an expenditure when used (consumption method). Inventory balances represent expendable supplies held for consumption. Reported expenditures reflect the purchase and consumption of supplies during the year. Nonspendable fund balance has been reported in the governmental funds’ fund financial statements to show that inventories do not constitute “available spendable resources,” even though they are a component of fund balance. H. Land Held for Resale Land held for resale represents land, structures, and their related improvements acquired for resale. The current land held for resale includes a multi-family residential project which was acquired via foreclosure process by the Housing Trust Fund and converted to affordable rental units. The City intends to sell the property to a non-profit affordable housing developer to rehabilitate the existing facility and maintain it as affordable housing units. I. Capital Assets Capital assets are recorded at cost where historical records are available and at an estimated historical cost where no historical records exist. Contributed capital assets are valued at acquisition value at the date of the contribution. Generally, capital asset purchases in excess of $10,000 are capitalized if they have an expected useful life of more than one year. Capital assets include all public domain (infrastructure) assets consisting of certain improvements including roads, streets, sidewalks, medians and storm drains. The following schedule summarizes capital asset useful lives: Buildings and improvements 40 years Machinery and equipment 5 - 25 years Furniture and fixtures 10 - 20 years Vehicles 8 years Infrastructure 5 - 70 years Depreciation has been provided using the straight-line method over the estimated useful life of the asset in the government-wide financial statements and in the fund financial statements of the proprietary funds. J. Deferred Outflows/Inflows of Resources The statement of financial position reports separate sections for deferred outflows of resources and deferred inflows of resources, when applicable. Deferred Outflows of Resources represent outflows of resources (consumption of net position) that apply to future periods and that, therefore, will not be recognized as an expense until that time. The City reports pension contribution after measurement date and deferred loss related to pension, OPEB and debt refunding in this category. Deferred Inflows of Resources represent inflows of resources (acquisition of net position) that apply to future periods and that, therefore, are not recognized as revenue until that time. The City reports unavailable revenues and deferred gain related to pension and OPEB in this category. City of Gilroy Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 53 Note 1 – Summary of Significant Accounting Policies (Continued) K. Interest Payable In the government-wide financial statements, interest payable on long-term debt is recognized as the liability is incurred for governmental activities and business-type activities. In the fund financial statements, only proprietary fund and private-purpose trust fund types recognize the interest payable when the liability is incurred. L. Unearned Revenue Unearned revenue is reported for transactions for which revenue has been received but has not yet been earned. Unearned revenues primarily consist of prepaid charges for services and grant allocations, primarily for American Rescue Plan Act funding, which have not yet been spent. M. Compensated Absences All full-time employees accumulate vacation benefits in varying annual amounts. Sick leave benefits accrue at the rate of one day per month for all full-time employees (except fire shift employees who accrue 12 hours of sick leave per month) regardless of their length of service to the City. Upon termination or retirement, employees are paid for all unused vacation time and overtime. No cash payment is made for unused sick leave upon termination or retirement. A liability is recorded for unused vacation and similar compensatory leave balances since the employees’ entitlement to these balances are attributable to services already rendered and it is probable that virtually all of these balances will be liquidated by either paid time off or payments upon termination or retirement. If material, a proprietary fund liability is accrued for all leave benefits relating to the operations of the proprietary funds. A current liability is accrued in the governmental funds for material leave benefits due on demand to governmental fund employees that have terminated prior to year-end. All other amounts are recorded in the government-wide financial statements. These noncurrent amounts will be recorded as fund expenditures in the year in which they are paid or become due. N. Net Pension Liability For purposes of measuring the net pension liability, deferred outflows and inflows of resources related to pensions, and pension expense, information about the fiduciary net position and additions to/deductions from the fiduciary net position have been determined on the same basis as they are reported by the CalPERS Financial Office. For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. The following timeframes are used for pension reporting: Valuation Date June 30, 2019 Measurement Date June 30, 2020 Measurement Period July 1, 2019 to June 30, 2020 Gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time. The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense. The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized straight-line over 5 years. All other amounts are amortized straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period. City of Gilroy Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 54 Note 1 – Summary of Significant Accounting Policies (Continued) O. Other Postemployment Benefits Liability For purposes of measuring the OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB and OPEB expense, information about the City's OPEB plan have been determined by an independent actuary. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Generally accepted accounting principles require that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used: Valuation Date June 30, 2019 Measurement Date June 30, 2020 Measurement Period July 1, 2019 to June 30, 2020 P. Claims Payable The City records a liability for litigation, judgments and claims when it is probable that an asset has been impaired or a liability has been incurred prior to year-end and the probable amount of loss (net of any insurance coverage) can be reasonably estimated. This liability is recorded in the internal service fund that accounts for the City’s self-insurance activity. Q. Net Position In the government-wide financial statements and proprietary fund financial statements, net position is classified as follows: Net Investment in Capital Assets – This component of net position consists of capital assets, net of accumulated depreciation and related deferred charges on refunding, reduced by the outstanding balances of debt that are attributable to the acquisition, construction, or improvement of those items, net of unspent debt proceeds. Restricted – This component of net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets. Separate line items are used to distinguish among major categories of restrictions and are further displayed as expendable or nonexpendable based on the nature of the restriction. Unrestricted – This component of net position is the amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that are not included in the determination of net investment in capital assets or the restricted component of net position. R. Fund Balances In the governmental fund financial statements, fund balances are classified as follows: Nonspendable fund balance includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact. The City’s nonspendable fund balance represents inventory, prepaid expenses, land held for resale, and loans receivable unless the proceeds from the collection of those loans receivable or from sale of the properties is restricted, committed, or assigned. City of Gilroy Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 55 Note 1 – Summary of Significant Accounting Policies (Continued) R. Fund Balances (Continued) Restricted fund balance includes resources that are subject to externally enforceable legal restrictions. It includes amounts that can be spent only for the specific purposes stipulated by constitution, external resource providers, or through enabling legislation. Committed fund balance includes amounts that can be used only for the specific purposes determined by a formal action of the City’s highest level of decision-making authority. The City Council, as the City’s highest level of decision-making authority, may commit, through a resolution, fund balance for specific purposes pursuant to constraints imposed by such formal actions taken. Committed amounts cannot be used for any other purpose unless the City Council removes or changes the specific use through the same type of formal action taken to establish the commitment. Assigned fund balance consists of funds that are set aside for specific purposes by the City’s highest level of decision-making authority or a body or official that has been given the authority to assign funds. The City has not adopted a policy on the authority to assign amounts for specific purposes. Unassigned fund balance is the residual classification for the City’s fund balance and includes all spendable amounts not contained in the other classifications. This category also provides the resources necessary to meet unexpected expenditures and revenue shortfalls. The General Fund is the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it is not appropriate to report a positive unassigned fund balance amount. However, in governmental funds other than General Fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund. S. Spending Policy Government-Wide Financial Statements and the Proprietary Fund Financial Statements When expenses are incurred for purposes for which both restricted and unrestricted components of net position are available, the City’s policy is to apply the restricted component of net position first, then the unrestricted component of net position as needed. Governmental Fund Financial Statements When expenditures are incurred for purposes for which both restricted and unrestricted fund balances are available, the City’s policy is to apply restricted fund balances first, then unrestricted fund balances as needed. When expenditures are incurred for purposes where only unrestricted fund balances are available, the City uses the unrestricted resources in the following order, except for instances wherein an ordinance specifies the fund balance:  Committed  Assigned  Unassigned City of Gilroy Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 56 Note 1 – Summary of Significant Accounting Policies (Continued) T. Property Taxes Property taxes in the State of California are administered for all local agencies at the County level, and consist of secured, unsecured and utility tax rolls. The following is a summary of major policies and practices relating to property taxes: Property Valuations - are established by the Assessor of the County of Santa Clara for the secured and unsecured property tax rolls; the utility property tax roll is valued by the State Board of Equalization. Under the provisions of Article XIIIA of the State Constitution (Proposition 13 adopted by the voters on June 6, 1978), properties are assessed at 100% of full value. From this base of assessment, subsequent annual increases in valuation are limited to a maximum of 2%. However, increases to full value are allowed for property improvements or upon change in ownership. Personal property is excluded from these limitations and is subject to annual reappraisal. Tax Levies - are limited to 1% of full market value which results in a tax rate of $1.00 per $100 assessed valuation, under the provisions of Proposition 13. Tax rates for voter-approved indebtedness are excluded from this limitation. Tax Levy Dates - are attached annually on March 1 preceding the fiscal year for which the taxes are levied. The fiscal year begins July 1 and ends June 30 of the following year. Taxes are levied on both real and unsecured personal property as it exists at that time. Liens against real estate, as well as the tax on personal property, are not relieved by subsequent renewal or change in ownership. Tax Collections - are the responsibility of the County Tax Collector. Taxes and assessments on secured and utility rolls which constitute a lien against the property may be paid in two installments. The first is due on November 1 of the fiscal year and is delinquent if not paid by December 10, and the second is due on March 1 of the fiscal year and is delinquent if not paid by April 10. Unsecured personal property taxes do not constitute a lien against real property unless the taxes become delinquent. Payment must be made in one installment, which is delinquent if not paid by August 31 of the fiscal year. Significant penalties are imposed by the County for late payments. Tax Levy Apportionments - Due to the nature of the City-wide maximum levy, it is not possible to identify general purpose tax rates for specific entities. Under State legislation adopted subsequent to the passage of Proposition 13, apportionments to local agencies are made by the County Auditor-Controller based primarily on the ratio that each agency represented of the total City-wide levy for the three years prior to fiscal year 1979. Property Tax Administration Fees - The State of California fiscal year 1990-91 Budget Act authorized counties to collect an administrative fee for collection and distribution of property taxes. Property taxes are recorded as net of administrative fees withheld during the fiscal year. U. Use of Estimates The preparation of financial statements requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities, at the date of the financial statements, as well as the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. City of Gilroy Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 57 Note 1 – Summary of Significant Accounting Policies (Continued) V. Implementation of New GASB Pronouncements During fiscal year ended June 30, 2021, the City implemented the following new GASB Pronouncement: GASB Statement No. 84 Fiduciary Activities. This statement establishes standards relating accounting and financial reporting for identifying and financial reporting of fiduciary activities. Those provisions are effective for reporting periods beginning after December 15, 2019, as amended by GASB Statement No. 95. Application of this statement was effective starting in fiscal year ending June 30, 2021. See Note 16 for details. GASB Statement No. 90, Majority Equity Interests. This statement defines a majority equity interest and specifies that a majority equity interest in a legally separate organization should be reported as an investment if a government’s holding of the equity interest meets the definition of an investment. Those provisions are effective for reporting periods beginning after December 15, 2019. The City’s equity investment in the Authority is reported in the Sewer Fund. The application of this statement did not have a material effect on the City’s financial statements for the fiscal year ending June 30, 2021. GASB Statement No. 98. The Annual Comprehensive Financial Report. This Statement establishes the term annual comprehensive financial report and its acronym ACFR. That new term and acronym replace instances of comprehensive annual financial report and its acronym in generally accepted accounting principles for state and local governments. Those provision are effective for fiscal years ending after December 15, 2021. The City has elected early implementation of this statement. Application of this statement was primarily qualitative and did not have a material financial effect on the City’s financial statements for the fiscal year ending June 30, 2021. Note 2 – Stewardship, Compliance and Accountability A. Encumbrances Encumbrances are estimations of costs related to unperformed contracts for goods and services. These commitments are recorded for budgetary control purposes in the General, Special Revenue, and similar governmental funds. Encumbrances outstanding at fiscal year-end are reported as committed or assigned fund balance. They represent the estimated amount of the expenditure ultimately to result if unperformed contracts in- process at fiscal year-end are completed. They do not constitute expenditures or estimated liabilities. There were no significant amounts of encumbrances outstanding as of June 30, 2021. B. Continuing Appropriations The unexpended and unencumbered appropriations that are available and recommended for continuation are approved by the City Council for carryover to the following fiscal year. These commitments are reported as committed or assigned fund balance. City of Gilroy Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 58 Note 2 – Stewardship, Compliance and Accountability (Continued) C. Deficit Fund Balances/Net Position The following funds contained a deficit fund balance/net position as of June 30, 2021: Funds Amount Major Capital Projects Fund: Public Facilities Impact Fund (5,397,488)$ In the Government-Wide Financial Statements, the City had a deficit unrestricted net position at June 30, 2021 for its governmental activities of $(42,545,831) of which, $(76,563,531) and $(15,490,865) were attributed to aggregate net pension liabilities and net other postemployment benefits liability, respectively. D. Excess of Expenditure Over Appropriations The following funds contained excess of expenditures over final appropriations for the year ended June 30, 2021: Funds Appropriations Expenditures Excess Nonmajor Funds: Special Revenue Funds: Community Development Block Grant Fund 488,807$ 1,262,063$ (773,256)$ Housing Trust Fund 150,883 524,084 (373,201) Capital Projects Funds: Sewer Development Fund 584,601 1,375,571 (790,970) Note 3 – Cash and Investments The City maintains a cash and investment pool, which includes cash balances and authorized investments of all funds. Statement of Governmental Business-type Discretely Fiduciary Activities Activities Presented Net Position Total Cash and investments 105,132,693$ 45,781,461$ 8,893,106$ 816,428$ 160,623,688$ Cash and investment with fiscal agent 2,920,291 55,108,183 - 290,613 58,319,087 Total cash and investments 108,052,984$ 100,889,644$ 8,893,106$ 1,107,041$ 218,942,775$ Government-Wide Statement of Net Position City of Gilroy Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 59 Note 3 – Cash and Investments (Continued) Cash and investment at June 30, 2021 consisted of the following: Cash and cash equivalents: Demand deposits 3,587,296$ Petty cash 4,955 Total cash and cash equivalents 3,592,251 Investments: Local Agency Investment Fund 157,035,876 Investments with Fiscal Agent: Investment Agreement 2,621,000 Money Market Mutual Fund 55,693,648 Total investments 215,350,524 Total cash and investments 218,942,775$ A. Demand Deposits The carrying amount of the City’s demand deposits were $3,587,296 at June 30, 2021. Bank balances before reconciling items were $6,364,431 at that date, the total amount of which was insured or collateralized with securities held by the pledging financial institutions in the City’s name as discussed below. The California Government Code requires California banks and savings and loan associations to secure the City’s cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the City's name. The market value of pledged securities must equal at least 110% of the City's cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City’s total cash deposits. The City may waive collateral requirements for cash deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation (“FDIC”). The City, however, has not waived the collateralization requirements. City of Gilroy Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 60 Note 3 – Cash and Investments (Continued) B. Investments Authorized by the California Government Code and the City's Investment Policy The table below identifies the investment types that are authorized by the City's investment policy and the California Government Code. The table also identifies certain provisions of the California Government Code (or the City's investment policy, if more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table below does not identify investment types that are authorized and held by bond trustees that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City's investment policy. Maximum Maximum Maximum Percentage of Investment in One Authorized Investment Type Maturity Portfolio Issuer Local Agency Investment Fund (LAIF)N/A None None U.S. Government Sponsored Agency Securities N/A None None Insured Certificate of Deposit (CD's)N/A 15%$250,000 Banker's Acceptances N/A 15%None Commercial Paper N/A 10%None Passbook Savings or Money Market Demand Deposits N/A None None Money Market Mutual Funds N/A 5%None Liquidity: *Securities or bonds purchased under a prior investment policy may be held or sold but additional purchases shall not be made. N/A- Not applicable C. Fair Value Measurements At June 30, 2021, investments are reported at fair value. Investments in investment contracts are valued at cost and exempt from the fair value hierarchy. Investments that are measured at fair value using the net asset value (NAV) per share are not classified in the fair value hierarchy. The City values investments in money market mutual funds at NAV based on amortized cost The following table presents the fair value measurement of investments on a recurring basis and the levels within GASB 72 fair value hierarchy in which the fair value measurements fall at June 30, 2021: Primary Government Total N/A Local Agency Investment Fund 157,035,876$ 157,035,876$ Investment Agreement 2,621,000 2,621,000 Total Investments 159,656,876$ 159,656,876$ Investments measured at the net asset value (NAV) Money Market Mutual Funds 55,693,648$ Total investments measured at the net asset value (NAV)55,693,648$   City of Gilroy Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 61 Note 3 – Cash and Investments (Continued) D. Disclosures Relating to Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer-term investments and timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations. Information about the sensitivity of the fair values of the City's investments to market interest rate fluctuations is as follows: 12 Months Investment Type Total or less 12-24 Local Agency Investment Fund 157,035,876$ 157,035,876$ -$ Investment Agreement 2,621,000 - 2,621,000 Money Market Mutual Funds 55,693,648 55,693,648 - Total 215,350,524$ 212,729,524$ 2,621,000$ Remaining Maturity (in Months) E. Disclosures Relating to Credit Risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the City’s investment policy or debt agreements, and the actual rating by Standard & Poor’s as of year-end for each investment type. Minimum Legal Investment Type Total Rating Local Agency Investment Fund 157,035,876$ N/A Investment Agreement 2,621,000 A1 Money Market Mutual Funds 55,693,648 N/A Total 215,350,524$ F. Concentration of Credit Risk The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. There are no investments in any one issuer (other than U.S. Treasury securities, mutual funds and external investment pools) that represent 5% or more of total City investments. The money market funds held with fiscal agents are related to bond issuances and reserves and not subject to the limitation set by the code. G. Custodial Credit Risk Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. City of Gilroy Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 62 Note 3 – Cash and Investments (Continued) G. Custodial Credit Risk (Continued) The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker- dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. For investments identified herein as held by fiscal agent, the trustee selects the investment under the terms of the applicable trust agreement, acquires the investment and holds the investment on behalf of the reporting government. H. Investment in State Investment Pool The City is a voluntary participant in the Local Agency Investment Fund (“LAIF”) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. The City investments in LAIF at June 30, 2021 included a portion of pool funds invested in Structured Notes and Asset-Backed Securities. Structured Notes: debt securities (other than asset-backed securities) whose cash flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or that have embedded forwards or options. Asset-Backed Securities: generally, mortgage-backed securities that entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages (for example, Collateralized Mortgage Obligations) or credit card receivables. As of June 30, 2021, the City had $148,198,237 invested in LAIF, which had invested 2.31% of the pool investment funds in Structured Notes and Asset-Backed Securities. I. Investment Agreement The City has entered into nonparticipating investment contracts (GICs), which are authorized under bond documents as outlined in the City's investment policy or the debt agreement. GICs are non-marketable interest- bearing agreements with or guaranteed by certain financial institutions. The agreements provide for a guaranteed return on principal over a specified period. A GIC is a general obligation instrument issued by a financial institution, subject to applicable legal restrictions. The Fund's investments in GIC's represent proceeds from bond issues that have been set aside (held for the benefit of the bondholders) as debt service reserves. The investment contract is held long-term and bears interest rate of 3.31%. Investment contract is collateralized by investments, with $2,621,000 collateralized at 104%. City of Gilroy Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 63 Note 4 – Loans Receivable At June 30, 2021 loans receivable consisted of the following: Government Wide Financial Statements Governmental Activities Down payment assistance 1,637,094$ Housing improvement to non-profits 450,000 Involuntary liens 131,345 Affordable housing development loans 790,000 Housing rehabilitation 206,316 Total loans receivable 3,214,755$ The City made deferred loans to senior citizens, the physically handicapped, and low to moderate income residents for the purposes of rehabilitation and down payment assistance. These loans are repaid at the end of a 30 year term or when the title to the property changes. The City also made deferred loans to third party housing non profits to fund housing projects which are due the earlier of 55 years after completion of the projects or December 31, 2074. Where reasonably estimable, an allowance for doubtful accounts has been recorded to reflect management’s best estimate of probable losses associated with nonrepayment. Estimates of any additional potential losses associated with nonrepayment cannot be reasonably estimated at this time. Note 5 - Interfund Transactions A. Advances to/from Other funds The following is a summary of advances to and from other funds as of June 30, 2021: Advances to Other Funds Nonmajor Governmental Funds Internal Service Fund Total Public Facilities Impact Capital Projects Fund 2,366,705$ 3,891,042$ 6,257,747$ Total 2,366,705$ 3,891,042$ 6,257,747$ Advances from Other Funds In February 2008, the City purchased the Gilroy Gardens Property (Property), which includes a horticultural education and theme park, for approximately $13.7 million. At the same time, the City entered into a single tenant lease of the Property with the seller, Gilroy Gardens Family Theme Park, Inc. To fund the acquisition, the Public Facilities Fund borrowed from certain funds which is accounted for as a long-term advance for a period of twenty years. The annual loan activity is budgeted through revenue and expenditure transactions. The loan interest is at the City’s annual average portfolio yield. The original loan amounts were as follows: Storm Drains Fund ($1.2 million), the Sewer Development Fund ($5.0 million), the Fleet Services Fund ($4.3 million), the Equipment Outlay Fund ($2.2 million) and the Water Fund ($1.0 million). As of June 30, 2021, the Water Fund loan has been paid off in full. City of Gilroy Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 64 Note 5 – Interfund Transactions (Continued) B. Transfers During the year ended June 30, 2021, the City had the following transfers: Public Facilities Nonmajor Water Impact Capital Governmental Enterprise Transfers In General Fund1 Projects Fund2 Funds3 Fund4 Total General Fund -$ -$ 282,278$ 51,753$ 334,031$ Public Facilities Impact Capital Projects Fund 40,763 - - - 40,763 Nonmajor Governmental Funds 351,383 3,591,375 19,988,547 - 23,931,305 Sewer Enterprise Fund - - 692,874 - 692,874 Internal Service Fund 5,000 - 1,584 - 6,584 Total 397,146$ 3,591,375$ 20,965,283$ 51,753$ 25,005,557$ Transfers Out 1General Fund support of certain capital projects, safety related grants, and IT services. 2Public Facilities Impact Capital Projects Fund supports various debt instruments. 3Other Governmental Funds support of grant personnel costs, debt retirements and sewer development project costs. 4Enterprise Fund transfers to the General Fund to support fringe benefit costs and subsidize environmental costs. C. Due to/from Component Unit The following is a summary of due to and from the Authority as of June 30, 2021: Due to component unit South Regional Wastewater Authority Nonmajor Governmental Funds 1,132,239$ Sewer Enterprise Fund 409,782 1,542,021$ The amounts owed by the City to the Authority are primarily for outstanding operating and capital contributions at year end. City of Gilroy Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 65 Note 6 – Capital Assets Governmental Activities The following is a summary of changes in capital assets for the governmental activities for the year ended June 30, 2021: Balance Balance July 1, 2020 Additions Deletions Reclassifications June 30, 2021 Capital assets not being depreciated: Land 21,334,900$ -$ -$ -$ 21,334,900$ Construction in progress 8,757,417 5,114,280 (525,457) (6,058,751) 7,287,489 Total capital assets not being depreciated 30,092,317 5,114,280 (525,457) (6,058,751) 28,622,389 Capital assets being depreciated: Building and improvements 121,325,914 - - 3,792,566 125,118,480 Equipment and furniture 11,054,544 77,527 - - 11,132,071 IT equipment and software 2,896,751 - (254,600) - 2,642,151 Vehicle 13,239,496 295,035 - - 13,534,531 Infrastructure 282,689,581 - (258,536) 2,266,185 284,697,230 Total capital assets being depreciated 431,206,286 372,562 (513,136) 6,058,751 437,124,463 Less accumulated depreciation for: Building and improvements (43,471,009) (2,994,267) - - (46,465,276) Equipment and furniture (8,314,182) (481,734) - - (8,795,916) IT equipment and software (2,580,947) (97,479) 254,600 - (2,423,826) Vehicle (8,906,650) (535,295) - - (9,441,945) Infrastructure (181,278,408) (7,481,288) 258,536 - (188,501,160) Total accumulated depreciation (244,551,196) (11,590,063) 513,136 - (255,628,123) Total capital assets being depreciated, net 186,655,090 (11,217,501) - 6,058,751 181,496,340 Total governmental activities 216,747,407$ (6,103,221)$ (525,457)$ -$ 210,118,729$ Depreciation expense was charged to functions/programs of governmental activities for the year ended June 30, 2021 as follows: General government 854,655$ Public safety 1,238,339 Public works 7,629,384 Community development 1,160,167 Internal service fund 707,518 Total depreciation expense 11,590,063$ City of Gilroy Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 66 Note 6 – Capital Assets (Continued) Business-Type Activities The following is a summary of changes in capital assets for the business-type activities for the year ended June 30, 2021: Balance Balance June 30, 2020 Additions Deletions Reclassifications June 30, 2021 Capital assets not being depreciated: Construction in progress 7,603,111$ 594,092$ (3,212,385)$ (4,876,679)$ 108,139$ Total capital assets not being depreciated 7,603,111 594,092 (3,212,385) (4,876,679) 108,139 Capital assets being depreciated: Land improvements 427,852 - - - 427,852 Equipment and furniture 212,630 - - - 212,630 Vehicles 213,353 - - - 213,353 Infrastructure 150,887,033 - - 4,876,679 155,763,712 Total capital assets being depreciated 151,740,868 - - 4,876,679 156,617,547 Less accumulated depreciation for: Land improvements (427,853) - - - (427,853) Equipment and furniture (194,158) (2,737) - - (196,895) Vehicles (4,741) (14,224) - - (18,965) Infrastructure (67,310,147) (2,856,612) - - (70,166,759) Total accumulated depreciation (67,936,899) (2,873,573) - - (70,810,472) Total capital assets being depreciated, net 83,803,969 (2,873,573) - 4,876,679 85,807,075 Total business-type activities 91,407,080$ (2,279,481)$ (3,212,385)$ -$ 85,915,214$ Depreciation expense was charged to the business-type activities as follows: Sewer 1,505,087$ Water 1,368,486 Total depreciation expense 2,873,573$ City of Gilroy Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 67 Note 6 – Capital Assets (Continued) Discretely Presented Component Unit The following is a summary of changes in capital assets for the DCU for the year ended June 30, 2021: Balance Balance June 30, 2020 Additions Deletions Reclassifications June 30, 2021 Capital assets not being depreciated: Land 13,396,202$ -$ -$ -$ 13,396,202$ Construction in progress 11,711,219 2,963,611 - (259,739) 14,415,091 Total capital assets not being depreciated 25,107,421 2,963,611 - (259,739) 27,811,293 Capital assets being depreciated: Building and improvements 72,223,229 - - 34,520 72,257,749 Land improvements 10,681,371 - - - 10,681,371 Equipment and furnitures 19,964,163 - - - 19,964,163 Vehicles 1,295,492 209,709 - - 1,505,201 Infrastructure 35,649,317 - - 225,219 35,874,536 Total capital assets being depreciated 139,813,572 209,709 - 259,739 140,283,020 Less accumulated depreciation for: Building and improvements (39,520,098) (1,690,608) - - (41,210,706) Land improvements (5,717,579) (190,342) - - (5,907,921) Equipment and furniture (7,146,107) (998,977) - - (8,145,084) Vehicles (1,108,125) (31,336) - - (1,139,461) Infrastructure (15,005,973) (1,640,151) - - (16,646,124) Total accumulated depreciation (68,497,882) (4,551,414) - - (73,049,296) Total capital assets being depreciated, net 71,315,690 (4,341,705) - 259,739 67,233,724 Total governmental activities 96,423,111$ (1,378,094)$ -$ -$ 95,045,017$ Note 7 – Equity Investment in DCU The City and the City of Morgan Hill are members of the South County Regional Wastewater Authority, a joint powers authority (“Authority”), that provides for the construction, ownership, maintenance and operation of a domestic sewer treatment plant. The agreement provides for the participants’ capacity right to use the system. The participants are also obligated to share in the annual direct operating costs of the Authority. The City maintains the accounting records for the Authority. The City’s equity investment in the DCU is reported on the statement of net position of the City’s sewer enterprise fund as an “equity investment in DCU” in the amount of $65,461,335 as required under the equity method of accounting for investments. The financial statements of the Authority can be obtained from the City’s finance department. City of Gilroy Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 68 Note 8 – Deferred Compensation The City maintains a deferred compensation plan under Section 457 of the Internal Revenue Code (IRC) for the benefit of its employees. The plan allows the employees to defer or postpone the taxation of a designated amount of earnings set aside for retirement. The City has a fiduciary responsibility to safeguard the assets of the program and to ensure that the plan is properly maintained by the plan administrator. Generally speaking, assets are available to participants only upon termination of employment with the City, retirement, death or disability. The City has placed the plan assets into a trust for the exclusive benefit of plan participants and their beneficiaries. Accordingly, all plan assets have been excluded from the accompanying financial statements, except for those plan assets for which the City provides record keeping services. Note 9 – Long-Term Liabilities A. Governmental Activities The following is a summary of changes in the City’s long-term liabilities for the fiscal year ended June 30, 2021: Balance Balance Due within Due in more June 30, 2020 Additions Deletions June 30, 2021 One Year than One Year Governmental Activities: Refunding Lease Revenue Bonds: 2010 Series 17,555,000$ -$ (17,555,000)$ -$ -$ -$ 2013 Series 18,155,000 - (945,000) 17,210,000 990,000 16,220,000 2020A Series - 13,740,000 (790,000) 12,950,000 715,000 12,235,000 Unamortized premium 1,003,218 2,719,825 (545,362) 3,177,681 - 3,177,681 Loan payable 857,429 - (91,512) 765,917 92,433 673,484 Direct borrowings and placement General Obligation Bonds: Library 2019A Series 8,342,578 - (326,786) 8,015,792 337,143 7,678,649 Library 2019B Series 18,287,881 - (664,027) 17,623,854 685,553 16,938,301 Total long-term debt 64,201,106 16,459,825 (20,917,687) 59,743,244 2,820,129 56,923,115 Other long-term liabilities Claims payable 3,622,445 6,514,224 (3,777,857) 6,358,812 1,440,000 4,918,812 Compensated absences 1,986,656 1,529,069 (1,577,081) 1,938,644 249,279 1,689,365 Total long-term liabilities 69,810,207$ 24,503,118$ (26,272,625)$ 68,040,700$ 4,509,408$ 63,531,292$ Classification City of Gilroy Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 69 Note 9 – Long-Term Liabilities (Continued) A. Governmental Activities (Continued) Refunding Lease Revenue Bonds (LRBs) 2010 Series On July 27, 2010, the City refinanced its 2009 Bond Anticipation Notes (“BANs”) and issued Refunding Revenue Bonds, in the amount of $24,475,000. The proceeds from the issue were used to redeem the 2009 BANs. Interest on the bonds is payable semiannually on May 1 and November 1 of each year commencing on May 1, 2011, and the Bonds mature on November 1, 2033. The principal balance of outstanding bonds of $17,555,000 was paid off during the year from the Refunding Lease Revenue Bonds, 2020A Series. Refunding Lease Revenue Bonds (LRBs) 2013 Series On July 25, 2013, the City refinanced its 2010 BANs by issuing Refunding Revenue Bonds, in the amount of $23,120,000. The proceeds from the issue were used to redeem the 2010 BANs. Interest on the bonds is payable semiannually at rates ranging from 3.00% to 5.25% on May 1 and November 1 of each year commencing on November 1, 2013, and the Bonds mature on November 1, 2033. The principal balance of outstanding bonds at June 30, 2021 was $17,210,000. The reserve requirement at June 30, 2021 was $920,222, and the actual reserve was $920,286. The annual debt service requirements to maturity for the Refunding LRBs 2013 Series are as follows: Year ending June 30, Principal Interest Total 2022 990,000$ 848,019$ 1,838,019$ 2023 1,035,000 805,156 1,840,156 2024 1,080,000 760,044 1,840,044 2025 1,130,000 710,444 1,840,444 2026 1,175,000 662,875 1,837,875 2027-2031 6,755,000 2,435,803 9,190,803 2032-2034 5,045,000 466,350 5,511,350 Total 17,210,000$ 6,688,691$ 23,898,691$ Refunding Lease Revenue Bonds (LRBs) 2020A Series On August 1, 2020, the Gilroy Public Facilities Financing Authority issued its Series 2020A Lease Revenue Refunding Bonds in the amount of $13,740,000. The bonds were issued at a premium of $2,719,825 which was deferred and will be amortized over the life of the bonds. The proceeds from the issuance were used to refund the outstanding Series 2010 Refunding LRBs and to pay the costs incurred in connection with the issuance of the 2020A bonds. Interest on the bonds is payable semiannually at rates ranging from 1.21% to 2.08% on May 1 and November 1 of each year commencing on November 1, 2020, and the Bonds mature on November 1, 2033. The principal balance of outstanding bonds at June 30, 2021 was $12,950,000. City of Gilroy Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 70 Note 9 – Long-Term Liabilities (Continued) A. Governmental Activities (Continued) Refunding Lease Revenue Bonds (LRBs) 2020A Series (Continued) The annual debt service requirements to maturity for the Refunding Lease Revenue Bonds 2020A Series are as follows: Year ending June 30, Principal Interest Total 2022 715,000$ 629,625$ 1,344,625$ 2023 755,000 592,875 1,347,875 2024 795,000 554,125 1,349,125 2025 840,000 513,250 1,353,250 2026 880,000 470,250 1,350,250 2027-2031 5,180,000 1,619,500 6,799,500 2032-2034 3,785,000 290,125 4,075,125 Total 12,950,000$ 4,669,750$ 17,619,750$ Loan Payable The City entered into a loan agreement with the California Energy Commission (CEC) to provide funds to install equipment for energy conservation. Under the original loan agreement the City was authorized to borrow up to $1,812,722 with interest at 1% per annum, semiannual payments to be paid commencing December following the year the project was completed. The City borrowed a total of $1,201,155 with semiannual payments of interest and principal of $49,931 with the first payment occurring on December 27, 2016. The principal balance of outstanding at June 30, 2021 was $765,917. The annual debt service requirements to maturity for the loan is as follows: Year ending June 30, Principal Interest Total 2022 92,433$ 7,429$ 99,862$ 2023 93,359 6,503 99,862 2024 94,281 5,581 99,862 2025 95,240 4,622 99,862 2026 96,195 3,667 99,862 2027-2029 294,409 5,180 299,589 Total 765,917$ 32,981$ 798,898$ City of Gilroy Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 71 Note 9 – Long-Term Liabilities (Continued) A. Governmental Activities (Continued) General Obligation Bonds (Gilroy Community Library Project) 2019 Refunding Bonds, Series A On June 26, 2019, the City issued General Obligation Refunding Bonds 2019 Series A through a private placement, in the amount of $8,633,538. The proceeds from the issue were used to currently refund the General Obligation Bonds Series 2009. The City’s refunding of the 2009 General Obligation Bonds resulted in an economic gain (difference between the present value of the old and new debt) of $1,447,576 and an aggregate savings in debt service between the refunding debt and the refunded debt of $1,966,116. Interest on the bonds is payable semiannually at 3.12% on February 1 of each year commencing on February 1, 2021. The Bonds mature on February 1, 2039. The bonds are payable solely from ad valorem property taxes levied by the City and collected by the County. The principal balance of outstanding bonds at June 30, 2021 was $8,015,792. The annual debt service requirements to maturity for the General Obligation Refunding Bonds, 2019 Series A are as follows: Year ending June 30, Principal Interest Total 2022 337,143$ 250,093$ 587,236$ 2023 347,829 239,574 587,403 2024 358,853 228,722 587,575 2025 370,226 217,525 587,751 2026 381,960 205,974 587,934 2027-2031 2,099,251 843,378 2,942,629 2032-2036 2,453,691 494,468 2,948,159 2037-2039 1,666,839 105,092 1,771,931 Total 8,015,792$ 2,584,826$ 10,600,618$ General Obligation Bonds (Gilroy Community Library Project) 2019 Refunding Bonds, Series B On November 5, 2019, the City issued General Obligation Refunding Bonds 2019 Series B through a private placement, in the amount of $19,087,551. The proceeds from the issue were used to currently refund the General Obligation Bonds Series 2010. The City’s refunding of the 2010 General Obligation Bonds resulted in an economic gain (difference between the present value of the old and new debt) of $3,430,633 and an aggregate savings in debt service between the refunding debt and the refunded debt of $2,525,981. Interest on the bonds is payable semiannually at a rate of 3.19% on February 1 of each year commencing on February 1, 2020. The Bonds mature on February 1, 2040. The bonds are payable solely from ad valorem property taxes levied by the City and collected by the County. The principal balance of outstanding bonds at June 30, 2021 was $17,623,854. City of Gilroy Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 72 Note 9 – Long-Term Liabilities (Continued) A. Governmental Activities (Continued) General Obligation Bonds (Gilroy Community Library Project) 2019 Refunding Bonds, Series B (Continued) The annual debt service requirements to maturity for the General Obligation Refunding Bonds, 2019 Series B are as follows: Year ending June 30, Principal Interest Total 2022 685,553$ 562,201$ 1,247,754$ 2023 707,776 540,332 1,248,108 2024 730,720 517,754 1,248,474 2025 754,408 494,444 1,248,852 2026 778,864 470,378 1,249,242 2027-2031 4,289,817 1,962,699 6,252,516 2032-2036 5,031,701 1,232,651 6,264,352 2037-2040 4,645,015 376,347 5,021,362 Total 17,623,854$ 6,156,806$ 23,780,660$ B. Business-Type Activities Balance Balance Due within Due in more June 30, 2020 Additions Deletions June 30, 2021 One Year than One Year Other debt: 2010 Wastewater Revenue Bonds 7,080,000$ -$ (2,260,000)$ 4,820,000$ 2,380,000$ 2,440,000$ 2021 Wastewater Revenue Bonds - 47,080,000 - 47,080,000 - 47,080,000 Unamortized premium 465,517 5,732,751 (232,759) 5,965,509 - 5,965,509 7,545,517 52,812,751 (2,492,759) 57,865,509 2,380,000 55,485,509 Other long-term liabilities Compensated absences 269,477 198,500 (216,307) 251,670 25,000 226,670 7,814,994$ 53,011,251$ (2,709,066)$ 58,117,179$ 2,405,000$ 55,712,179$ Classification 2010 Wastewater Revenue Refunding Bonds On March 1, 2010, the City issued revenue refunding bonds in the amount of $23,375,000. The bonds were issued to refinance an existing installment payment obligation of the City. The City had originally structured the sewer revenue bonds through the Authority. The structure consisted of a pledge of an installment sale from the City to the Authority as the collateral for the revenue bonds issued by the Authority. As part of the March 2010 refunding, the City issued new debt to refund the Authority bonds. The outstanding balance of the new debt is reported in the Sewer Fund. The City’s covenants require the City to maintain sufficient net sewer revenues to pay the outstanding debt. The Authority does not have responsibility to set rates to meet these covenants. The bonds are payable from the net revenues of the City’s Sewer Fund pledged as security for the debt. Interest on the bonds is payable at rates ranging from 3.0% to 5.0%. Principal payments range from $1,465,000 to $2,440,000 payable on August 1 of each year beginning in 2011 and maturing in 2022. The principal balance of outstanding bonds at June 30, 2021 was $4,820,000. City of Gilroy Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 73 Note 9 – Long-Term Liabilities (Continued) B. Business-Type Activities (Continued) 2010 Wastewater Revenue Refunding Bonds (Continued) Covenants within the bonds require the City to maintain insurance on the facility, establish wastewater rates, exclusive of sewer development fees, which are sufficient to pay the City’s share of the operating costs of the Authority, maintain reserves, provide net revenues equal to at least 1.2 times the annual debt service amounts. The reserve requirement at June 30, 2021 was $2,621,000, and the actual reserve was $2,664,381. The annual debt service requirements (principal and interest) to maturity for the 2010 Wastewater Revenue Refunding Bonds are as follows: Year ending June 30, Principal Interest Total 2022 2,380,000$ 181,500$ 2,561,500$ 2023 2,440,000 61,000 2,501,000 Total 4,820,000$ 242,500$ 5,062,500$ 2021A Wastewater Revenue Bonds On June 30, 2021, the Gilroy Public Facilities Financing Authority issued revenue bonds in the amount of $47,080,000. The bonds were issued to finance the City’s portion of certain improvements to the Authority’s treatment facility. The bonds are payable from revenues consisting primarily of installment payments payable by the City under an installment purchase agreement. The obligation of the city to make installment payments is a special obligation of the City payable solely from and secured by a pledge of net wastewater revenues of the City’s wastewater system on a parity with the City’s obligation to pay installment payments that secure the 2010 Wastewater Revenue Bonds. Interest on the bonds is payable at rates ranging from 3.0% to 4.0%. Principal payments range from $725,000 to $2,210,000 payable on August 1 of each year beginning in 2021 and maturing in 2057. The principal balance of outstanding bonds at June 30, 2021 was $47,080,000. The annual debt service requirements (principal and interest) to maturity for the 2021A Wastewater Revenue Bonds are as follows: Year ending June 30, Principal Interest Total 2022 -$ 898,801$ 898,801$ 2023 - 1,533,500 1,533,500 2024 725,000 1,519,000 2,244,000 2025 755,000 1,489,400 2,244,400 2026 785,000 1,458,600 2,243,600 2027-2031 4,430,000 6,785,900 11,215,900 2032-2036 5,415,000 5,804,000 11,219,000 2037-2041 6,455,000 4,773,075 11,228,075 2042-2046 7,490,000 3,728,850 11,218,850 2047-2051 8,705,000 2,516,175 11,221,175 2052-2056 10,110,000 1,107,750 11,217,750 2057 2,210,000 33,150 2,243,150 Total 47,080,000$ 31,648,201$ 78,728,201$ City of Gilroy Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 74 Note 9 – Long-Term Liabilities (Continued) C. Debt without Government Commitment Community Facilities District No. 2000-1, Highway 152, Special Tax Bonds In December 2002, Community Facilities District No. 2000-1 pursuant to Mello-Roos Community Facilities Act of 1982, issued $7,185,000 of Special Tax Bonds to finance the costs associated with the construction of public facilities for interchange improvements at State Highway 152 and U.S. Highway 101 and for widening and improving Highway 152. In September 2006, Community Facilities District No. 2000-1 pursuant to Mello-Roos Community Facilities Act of 1982, issued $8,670,000 of Special Tax Bonds to finance the costs associated with the construction of public facilities for interchange improvements at State Highway 152 and U.S. Highway 101 and for the widening and improving Highway 152. These bonds were refunded in July 2018 with proceeds from the issuance in a private placement of Community Facilities District No. 2000-1 (Highway 152) Special Tax Refunded Bonds, Series 2018 in the aggregate principal amount of $7,815,860. These bonds do not constitute a debt or obligation of the City because they are payable solely from the Special Tax revenue assessed on the underlying parcels. The City is not liable for repayment but acts as an agent for the property owners in collecting the assessments, forwarding the collections to bondholders, and initiating foreclosure proceedings, if appropriate. The outstanding principal balance as of June 30, 2021 was $6,560,907. City of Gilroy Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 75 Note 10 – Defined Benefit Pension Plans (CalPERS) A. Summary The following is the summary of net pension liabilities and the related deferred outflow of resources and deferred inflow of resources at June 30, 2021 and pension expenses for the year then ended: Governmental Business-Type Activities Activities Total Deferred outflows of resources: Pension contribution after measurement date: Miscellaneous 2,295,299$ 1,476,762$ 3,772,061$ Safety 6,718,586 - 6,718,586 Total contribution after measurement date 9,013,885 1,476,762 10,490,647 Changes in assumptions: Safety 629,611 - 629,611 Total changes in assumptions 629,611 - 629,611 Difference between expected and actual experience: Miscellaneous 751,253 483,346 1,234,599 Total difference between expected and actual experience 751,253 483,346 1,234,599 Difference between projected and actual earnings on plan investments: Miscellaneous 322,932 207,769 530,701 Safety 974,678 - 974,678 Total difference between projected and actual earnings on plan investments 1,297,610 207,769 1,505,379 Total deferred outflows of resources 11,692,359$ 2,167,877$ 13,860,236$ Aggregate net pension liabilities: Miscellaneous 22,516,797$ 14,486,977$ 37,003,774$ Safety 54,046,734 - 54,046,734 Total aggregate net pension liabilities 76,563,531$ 14,486,977$ 91,050,508$ Deferred inflows of resources: Changes in assumptions: Safety 158,399$ -$ 158,399$ Total changes in assumptions 158,399 - 158,399 Difference between expected and actual experience: Safety 566,007 - 566,007 Total difference between expected and actual experience 566,007 - 566,007 Total deferred inflows of resources 724,406$ -$ 724,406$ Pension expense: Miscellaneous 3,648,708$ 2,347,525$ 5,996,233$ Safety 8,503,723 - 8,503,723 Total net pension expense 12,152,431$ 2,347,525$ 14,499,956$ City of Gilroy Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 76 Note 10 – Defined Benefit Pension Plans (CalPERS) (Continued) B. General Information about the Pension Plans Plan Descriptions The City participates in the 2.5% at 55 (Miscellaneous Tier I), 2.0% at 62 (Miscellaneous Tier II PEPRA), 3.0% at 50 (Police Safety Tier I), 2.0% at 50 (Police Safety Tier II), 2.7% at 57 (Police Safety Tier III PEPRA), 3% at 55 (Fire Safety Tier I), 2% at 55 (Fire Safety Tier II) and 2% at 57 (Fire Safety Tier III PEPRA) agent multiple- employer defined benefit plans. The City’s defined benefit pension plans provide retirement and disability benefits, annual cost-of-living adjustments and death benefits to plan members and beneficiaries. The Plans are part of the Public Agency portion of the California Public Employees Retirement System (CalPERS), an agent multiple-employer plan administered by CalPERS, which acts as a common investment and administrative agent for participating public employers within the State of California. A menu of benefit provisions as well as other requirements are established by state statutes within the Public Employees’ Retirement Law. The City selects optional benefit provisions from the benefit menu by contract with CalPERS and adopts those benefits through City ordinance. CalPERS issues a separate annual comprehensive financial report. Copies of CalPERS’s annual financial report may be obtained from the CalPERS Executive Office, 400 P Street, Sacramento, CA 95814. All full-time employees of the City are eligible to participate in the Plans. Part-time employees and temporary employees who work an average of 20 hours per week and over 1,000 hours per year are also eligible to participate. Upon 5 years of service, miscellaneous employees and public safety employees who retire at or after age 50 are entitled to receive an annual retirement benefit. The benefit is payable monthly for life, in an amount that varies from each Tier, of the employees’ single highest year’s salary for each year of credited service. The Plans also provide death and disability benefits. Benefits Provided CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 to 62 with statutorily reduced benefits. For employees hired into a plan with the 1.5% at 65 formula, eligibility for service retirement is age 55 with at least five years of services. PEPRA miscellaneous members become eligible for service retirement upon attainment of age 52 with at least five years of service. All members are eligible for nonduty disability benefits after five years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit or the Optional Settlement 2W Death Benefit. Safety members can receive a special death benefit if the member dies while actively employed and the death is job-related. Fire members may receive the alternate death benefit in lieu of the Basic Death Benefit or the 1957 Survivor Benefit if the member dies while actively employed and has at least 20 years of total CalPERS service. The cost-of-living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law. City of Gilroy Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 77 Note 10 – Defined Benefit Pension Plans (CalPERS) (Continued) B. General Information about the Pension Plans (Continued) Benefits Provided (Continued) The Plans’ provisions and benefits in effect at the measurement date of June 30, 2020 are summarized as follows: Hire date Prior to January 1, 2013 On or after January 1, 2013 Benefit formula 2.5% @ 55 2% @ 62 Benefit vesting schedule 5 years of service 5 years of service Benefit payments Monthly for life Monthly for life Retirement age 50 52 Benefit per year of service, as a percentage of salary 2.0% to 3.0% 1.0% to 2.5% Required employee contribution rates 8.000%7.000% Required contribution during measurement period 11.363%11.363% Miscellaneous Hire Date Prior to January 5, 2011 Prior to January 1, 2013 On or After January 1, 2013 Benefit formula 3% @ 50 2% @ 50 2.7% @ 57 Benefit vesting schedule 3 years of service 3 years of service 3 years of service Benefit payments Monthly for life Monthly for life Monthly for life Retirement age 50-55 50-55 50-57 Benefit per year of service, as a percentage of salary 3.000% 2.00%-2.70% 2.00%-2.70% Required employee contribution rates 9.000%9.000%13.000% Required contribution during measurement period 21.412%21.412%21.412% Safety - Police Hire Date Prior to January 5, 2011 Prior to January 1, 2013 On or After January 1, 2013 Benefit formula 3% @ 55 2% @ 55 2% @ 57 Benefit vesting schedule 3 years of service 3 years of service 3 years of service Benefit payments Monthly for life Monthly for life Monthly for life Retirement age 50-55 50-55 50-57 Benefit per year of service, as a percentage of salary 2.4%-3.0% 1.426%-2.0% 1.426%-2.0% Required employee contribution rates 9.000%7.000%10.500% Required contribution during measurement period 21.412%21.412%21.412% Safety - Fire City of Gilroy Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 78 Note 10 – Defined Benefit Pension Plans (CalPERS) (Continued) B. General Information about the Pension Plans (Continued) Employees Covered At the measurement date of June 30, 2020, the following employees were covered by the benefit terms for all Plans: Inactives currently receiving benefits 116 Inactives entitled to but not yet receiving benefits 30 Active employees 124 Total 270 Contributions Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’s annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. City contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contributions requirements are classified as plan member contributions. C. Net Pension Liability Actuarial Methods and Assumptions Used to Determine Total Pension Liability The June 30, 2019 valuation was rolled forward to determine the June 30, 2020 total pension liability, based on the following actuarial methods and assumptions: Actuarial Cost Method Actuarial Assumptions: Discount Rate Inflation Salary Increases Mortality Rate Table1 Post Retirement Benefit Increase Entry Age Normal in accordance with the requirement of GASB Statement No. 68 7.15% 2.50% Varies by Entry Age and Service 1The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from December 2017 that can be found on the CalPERS website. Derived using CalPERS’ membership data for all funds. The lesser of contract COLA or 2.50% until Purchasing Power Protection Allowance floor on purchasing power applies, 2.50% thereafter City of Gilroy Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 79 Note 10 – Defined Benefit Pension Plans (CalPERS) (Continued) C. Net Pension Liability (Continued) Long-Term Expected Rate of Return The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses. The expected real rates of return by asset class are as follows: Current Target Real Return Real Return Asset Class1 Allocation Years 1 - 102 Years 11+3 Global equity 50.00%4.80%5.98% Fixed income 28.00%1.00%2.62% Inflation assets 0.00%0.77%1.81% Private equity 8.00%6.30%7.23% Real assets 13.00%3.75%4.93% Liquidity 1.00%0.00%-0.92% 2 An expected inflation of 2.0% used 3 An expected inflation of 2.92% used 1 In the CalPER's ACFR, Fixed Income is included in Global Debt Securities; Liquidity is included in Short-term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities. Discount Rate The discount rate used to measure the total pension liability was 7.15%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Subsequent Events There were no subsequent events that would materially affect the results in this disclosure. City of Gilroy Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 80 Note 10 – Defined Benefit Pension Plans (CalPERS) (Continued) D. Changes in the Net Pension Liability The following table shows the changes in net pension liability for the City’s miscellaneous plan recognized over the measurement period. Total Pension Plan Fiduciary Net Net Pension Liability Position Liability/(Asset) (a) (b) (c) = (a) - (b) Balance at June 30, 2019 (Valuation Date) 116,325,023$ 81,865,434$ 34,459,589$ Changes Recognized for the Measurement Period: Service Cost 2,360,748 - 2,360,748 Interest on the total pension liability 8,220,201 - 8,220,201 Difference between expected and actual experience 670,381 - 670,381 Plan to plan resource movement - 1,029 (1,029) Contributions from the employer - 3,645,000 (3,645,000) Contributions from employees - 1,076,549 (1,076,549) Net investment income - 4,099,977 (4,099,977) Benefit payments, including refunds of employee contributions (6,415,856) (6,415,856) - Administrative expenses - (115,410) 115,410 Net Changes during July 1, 2019 to June 30, 2020 4,835,474 2,291,289 2,544,185 Balance at June 30, 2020 (Measurement Date) 121,160,497$ 84,156,723$ 37,003,774$ Increase (Decrease) Miscellaneous Plan Total Pension Plan Fiduciary Net Net Pension Liability Position Liability/(Asset) (a) (b) (c) = (a) - (b) Balance at June 30, 2019 (Valuation Date) 171,850,808$ 120,137,570$ 51,713,238$ Changes Recognized for the Measurement Period: Service Cost 4,116,535 - 4,116,535 Interest on the total pension liability 12,139,906 - 12,139,906 Difference between expected and actual experience (85,114) - (85,114) Plan to plan resource movement - (1,029) 1,029 Contributions from the employer - 6,320,224 (6,320,224) Contributions from employees - 1,575,349 (1,575,349) Net investment income - 6,112,651 (6,112,651) Benefit payments, including refunds of employee contributions (8,070,115) (8,070,115) - Administrative expenses - (169,364) 169,364 Net Changes during July 1, 2019 to June 30, 2020 8,101,212 5,767,716 2,333,496 Balance at June 30, 2020 (Measurement Date) 179,952,020$ 125,905,286$ 54,046,734$ Safety Increase (Decrease) City of Gilroy Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 81 Note 10 – Defined Benefit Pension Plans (CalPERS) (Continued) D. Changes in the Net Pension Liability (Continued) Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the City for all Plans, calculated using the discount rate for each Plan, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate: Discount Rate Current Discount Discount Rate - 1% (6.15%) Rate (7.15%) + 1% (8.15%) Miscellaneous Plan 51,845,285$ 37,003,774$ 24,639,213$ Safety Plan 78,083,445$ 54,046,734$ 34,186,110$ Plan's Net Pension Liability/(Asset) Pension Plans Fiduciary Net Position Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports. E. Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions For the year ended June 30, 2021, the City recognized pension expense in the amounts of $5,996,233 and $8,503,723 for the miscellaneous plan and safety plan, respectively. As of measurement date of June 30, 2020, the City has deferred outflows and deferred inflows of resources related to pensions as follows: Deferred outflows Deferred inflows of Resources of Resources Contribution made after the measurement date 3,772,061$ -$ Difference between expected and actual experience 1,234,599 - Net difference between projected and actual earning on pension plan investments 530,701 - Total 5,537,361$ -$ Miscellaneous Plan Deferred outflows Deferred inflows of Resources of Resources Contribution made after the measurement date 6,718,586$ -$ Change in assumptions 629,611 (158,399) Difference between expected and actual experience - (566,007) Net difference between projected and actual earnings on pension plan investments 974,678 - Total 8,322,875$ (724,406)$ Safety Plan City of Gilroy Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 82 Note 10 – Defined Benefit Pension Plans (CalPERS) (Continued) E. Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions (Continued) The $3,772,061 reported in the Miscellaneous Plans and $6,718,586 reported in the Safety Plans as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows: Measurement Period Miscellaneous Safety Ending June 30 Plan Plan 2021 645,442$ (381,683)$ 2022 391,255 173,524 2023 394,163 595,502 2024 334,440 492,540 1,765,300$ 879,883$ Deferred Outflows/(Inflows) of Resources Note 11 – Other Postemployment Healthcare Plan Governmental Business-Type Activities Activities Total Deferred outflows of resources: Employer contributions made subsequent to the measurement date 461,896$ 97,232$ 559,128$ Changes in assumption 2,605,359 548,447 3,153,806 Total deferred outflows of resources 3,067,255$ 645,679$ 3,712,934$ Total OPEB liability 15,490,865$ 3,260,939$ 18,751,804$ Total OPEB liability 15,490,865$ 3,260,939$ 18,751,804$ Deferred inflows of Resources: Change in assumption 843,448$ 177,552$ 1,021,000$ Difference between expected and actual experience 971,077 204,419 1,175,496 Total deferred inflows of resources 1,814,525$ 381,971$ 2,196,496$ OPEB Expense 1,144,667$ 240,960$ 1,385,627$ Plan Description The City’s Retiree Healthcare Plan (Plan) is a single-employer defined benefit healthcare plan administered by the City. The plan provides healthcare benefits to eligible retirees and their dependents through the California Public Employee’s Retirement System healthcare program (PEMHCA) and a post-employment retention/recognition incentive benefit program (RRIB) which requires proof of medical coverage. Benefit provisions are established and may be amended through agreements and memorandums of understanding between the City, its management employees and unions representing City employees. City of Gilroy Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 83 Note 11 – Other Postemployment Healthcare Plan (Continued) Plan Description (Continued) For all retirees under the plan, the City contributes the PEMHCA minimum contribution on the unequal method for eligible retirees and surviving spouses. The PEMHCA minimum amount is $139 in 2020 and $145 in 2021. No dental, vision or life insurance benefits are provided. The RRIB incentive benefit is for certain bargaining units’ retirees that retired prior to July 1, 2014 (police and fire employees), July 1, 2015 (management employees) or November 1, 2015 (AFSCME, miscellaneous employees). Prior employees that retired on or before these dates and were fifty (50) or more years of age (police and fire employees) or fifty-five (55) or more years of age (AFSCME and management employees) and previously retired from City service with a minimum of fifteen (15) years of service with the City are eligible to receive this postretirement benefit until reaching the age of sixty-five (65). Additional tiers of years of service were added to the plan to qualify for benefits. This supplemental pension plan has been discontinued for new participants after the dates noted above. The employer contribution under RRIB provides a temporary monthly annuity (to age 65) up to $300 per month based on service at retirement to eligible retirees. All classes of employees are covered, if eligible. The City offers a Health Reimbursement Plan (PEMHCA) for new retirees after the dates noted above. No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement 75. The plan does not issue a separate report. Employees Covered At the measurement date of June 30, 2020, the following current and former employees were covered by the benefit terms under the plan: Active plan members 265 Retirees 226 Total 491 Total OPEB Liability The City’s OPEB liability of $18,751,804 was measured as of June 30, 2020 and was determined by an actuarial valuation as of June 30, 2019 rolled forward to 2020 using standard update procedures. The OPEB liability from the governmental activities is primarily liquidated from the general fund. City of Gilroy Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 84 Note 11 – Other Postemployment Healthcare Plan (Continued) Actuarial Assumptions and Other Inputs The total OPEB liability as of June 30, 2019 actuarial valuation was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified: Actuarial Valuation Date June 30, 2019 Contribution Policy No pre-funding Discount Rate 2.21% at June 30, 2020 (Bond Buyer 20-Bond Index). 3.50% at June 30, 2019 (Bond Buyer 20-Bond index) Inflation 2.75% annually Salary Increase Aggregate - 3% annually, Merit - CalPERS 1997-2015 Experience Study Mortality, Retirement, Termination, and Disability CalPERS 1997-2015 Experience Study Mortality Improvement Scale Modified projected fully generational with Scale MP-2019 Healthcare Trend Rate - Non-Medicare An annual healthcare cost trend rate of 7.25% for 2021, decreasing to an ultimate rate of 4.0% in 2076 Healthcare Trend Rate - Medicare An annual healthcare cost trend rate of 6.3% for 2021, decreasing to an ultimate rate of 4.0% in 2076 Changes in total OPEB Liability The change in total OPEB liability are as follows: Total OPEB Liability Balance at June 30, 2019 (Valuation Date)14,594,602$ Changes Recognized for the Measurement Period: Service Cost 906,127 Interest on the total OPEB liability 533,762 Changes in assumptions 3,218,042 Benefit payments (500,729) Net Changes during July 1, 2019 to June 30, 2020 4,157,202 Balance at June 30, 2020 (Measurement Date) 18,751,804$ Sensitivity of the Total OPEB Liability to Changes in the Discount Rate The following presents the total OPEB liability of the City, calculated using the discount rate for the Plan, as well as what the City’s total OPEB liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate: Discount Rate - 1% Current Discount Discount Rate + 1% Rate (1.21%) Rate (2.21%) Rate (3.21%) 22,013,981$ 18,751,804$ 16,177,996$ Plan's Total OPEB Liability City of Gilroy Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 85 Note 11 – Other Postemployment Healthcare Plan (Continued) Sensitivity of the Total OPEB Liability to Changes in the Discount Rate (Continued) The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using healthcare cost trend rates that are one percentage point lower or one percentage point higher) than the current healthcare cost trend rates: Healthcare Cost Trend Rates -1% (6.3% - 7.25%) 1% 15,681,082$ 18,751,804$ 22,753,612$ Plan's Total OPEB Liability OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the year ended June 30, 2021, the City recognized OPEB expense of $1,385,627. At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred outflows Deferred inflows of Resources of Resources Difference between expected and actual experience -$ (1,175,496)$ Changes in assumptions 3,153,806 (1,021,000) Employer contributions made subsequent to the measurement date 559,128 - Total 3,712,934$ (2,196,496)$ The $559,128 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the OPEB liability in the year ending June 30, 2022. The change in assumptions was due to the change in discount rate to 2.21% from 3.50% for the June 30, 2020 measurement date and is amortized over the average expected remaining service lives. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Measurement Period Deferred Outflows/ Ended June 30 (Inflows) of Resources 2022 (54,262)$ 2023 (54,262) 2024 32,738 2025 225,738 2026 308,786 Thereafter 498,572 957,310$ City of Gilroy Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 86 Note 12 – Claims Payable The workers’ compensation and general liability claims administrators have estimated liabilities for probable future payments relating to claims outstanding as of June 30, 2021 in the following amounts which are recorded in separate internal service funds: Worker' compensation claims 3,592,854$ General liability claims 2,765,958 Total claims payable 6,358,812$ Although the eventual outcome of these claims is uncertain, in the opinion of management, the resolution of these matters is not expected to have a material adverse effect on the financial condition of the City, beyond the provision for losses reflected in the recorded claims payable liabilities. Changes in claims payable for workers’ compensation for the past three fiscal years are as follows: Current Year Amounts Beginning Claims and End Amounts Due in of Year Changes in Claim of Year Due within more than Workers' Compensation Liability Estimates Payments Liability One Year One Year 2018-2019 2,888,480$ 1,433,203 (1,066,813) 3,254,870$ 879,000$ 2,375,870$ 2019-2020 3,254,870 70,329 (392,803) 2,932,396 792,000 2,140,396 2020-2021 2,932,396 2,058,195 (1,397,737) 3,592,854 970,000 2,622,854 Changes in claims payable for general liability for the past three fiscal years are as follows: Current Year Amounts Beginning Claims and End Amounts Due in of Year Changes in Claim of Year Due within more than General Liability Liability Estimates Payments Liability One Year One Year 2018-2019 138,238$ 114,526$ (642,811)$ (390,047)$ (66,000)$ (324,047)$ 2019-2020 609,953 525,681 (445,585) 690,049 117,000 573,049 2020-2021 690,049 4,456,029 (2,380,120) 2,765,958 470,000 2,295,958 Note 13 – Risk Management Bodily injury, property damage and public officials’ errors and omissions insurance is provided via participation in a joint power’s authority. Effective July 1, 2015, the City is a member of the Municipal Pooling Authority (MPA), a joint powers authority established pursuant to California Government Code Sections 990.4-990.8 and 6500, et seq. The pool has 20 member cities. The City is insured by the MPA for up to $29,000,000 per claim for liability coverage, including $28,000,000 provided by an excess policy with the California Affiliated Risk Management Authority, after a deductible of $50,000 which is paid by the City. Premiums paid by the participating members may be retrospectively increased or decreased to reflect the actual operating costs of MPA and the City’s share of incurred losses. The City is contingently liable for assessments which may be made by MPA in the event that MPA has insufficient resources to pay unexpectedly large claims. City of Gilroy Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 87 Note 13 – Risk Management (Continued) The City is self-insured for the first $500,000 of each workers’ compensation claim. The City belongs to the Local Agency Workers’ Compensation Excess (LAWCX) joint powers authority, established pursuant to California Government Code Sections 990.4-990.8 and 6500 et seq., for the purpose of workers’ compensation excess coverage. LAWCX coverage is for individual workers’ compensation claims in excess of $500,000 up to $5,000,000. In addition, additional excess coverage beyond $5,000,000 is purchased via California State Association of Counties Excess Insurance Authority (CSAC EIA) bringing statutory coverage to $50,000,000. Note 14 – Commitments and Contingencies Under the terms of federal, county, and state grants, periodic audits are required, and certain costs may be questioned as not appropriate expenditures under the terms of the grants. Such audits could lead to reimbursements to the grantor agencies. If expenditures were disallowed, the City believes such disallowances, if any, would be immaterial. The City is a defendant in certain legal claims and actions arising from the normal course of operations. In the opinion of management and legal counsel, such claims and actions will not have a material adverse effect on the City’s financial position. Gilroy Garlic Festival On July 28, 2019, the Gilroy Garlic Festival, held at Christmas Hill Park, was the site of an unexpected and random shooting. The gunman killed himself, three others and wounded 17 people. The City’s response costs have been submitted to the California Governor’s Office of Emergency Services (Cal OES) for reimbursement consideration. The City has been named as a party in litigation lawsuits against the Gilroy Garlic Festival Association responsible for organizing the festival. Currently, the Gilroy Garlic Festival Association’s insurance is covering all legal costs. The City may incur additional financial impacts as a result of this event. At this time, the extent of those impact is unknown as it is too early in the case to make those determinations. COVID-19 In December 2019, a novel strain of coronavirus has spread around the world resulting in business and social disruption. The coronavirus was declared a Public Health Emergency of International Concern by the World Health Organization on January 30, 2020. The pandemic was ongoing during FY21 and is still ongoing in nature as various variants of the virus have emerged causing public health administrators to continue implementing mitigation measures including but not limited to masking and limitations on social gatherings. The full financial impact and duration cannot be determined at this time. Business-Type Activities Delinquencies The City provides water and sewer utility services. Since the onset of the pandemic in 2020, Governor Gavin Newsom issued executive orders instituting moratorium on shutting off water services for delinquent/non-payment accounts. Subsequent legislation enacted in September 2021 extended that moratorium through December 31, 2021. The City’s water and sewer utilities currently have estimated $900,000 in delinquent accounts. The City is currently offering its delinquent customers a payment arrangement plan and will continue its collection efforts. In addition, State Water Resources Control Board of California has instituted a water and wastewater arrearage payment program to provide relief to community water and wastewater systems for unpaid bills related to the pandemic. The funding will cover water debt from residential and commercial customers accrued between March 4, 2020 and June 15, 2021 in the first round, and if the program still has funding available, it will extend to wastewater charges. The City has submitted application to receive a grant allocation from the program. City of Gilroy Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 88 Note 14 – Commitments and Contingencies (Continued) Listed below are projects for uncompleted contracts over $250,000 outstanding as of June 30, 2021: Name of Project Outstanding Amount Enterprise Resource Planning (ERP) and Permitting Software Systems and Implementation Services 1,316,051$ 10th Street and Uvas Creek Bridge Design Services 780,761 McCarthy Well Project - Design and Construction Engineering Services 543,749 FY21 Citywide Pavement Maintenance 256,666 2,897,227$ Note 15 – Classification of Fund Balances Public Facilities Nonmajor Impact Capital Governmental General Projects Fund Funds Total Nonspendable: Inventory 47,874$ -$ -$ 47,874$ 47,874 - - 47,874 Restricted: Public safety - - 459,026 459,026 Community library - - 6,496,675 6,496,675 Street maintenance - - 5,550,992 5,550,992 Grant programs - - 1,679,551 1,679,551 Housing - - 2,707,415 2,707,415 Traffic impact - - 14,258,526 14,258,526 Sewer development - - 13,182,409 13,182,409 Water development - - 5,102,067 5,102,067 Storm drains - - 2,078,854 2,078,854 Community development - - 4,442,031 4,442,031 Debt service - - 1,702,332 1,702,332 Museum - - 9,554 9,554 City poor assistance - - 15,053 15,053 Land held for resale - - 706,754 706,754 Subtotal - - 58,391,239 58,391,239 Assigned: Capital projects - - 5,276,537 5,276,537 Subtotal - - 5,276,537 5,276,537 Unassigned (deficit)19,585,369 (5,397,488) (54) 14,187,827 Total 19,633,243$ (5,397,488)$ 63,667,722$ 77,903,477$ City of Gilroy Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 89 Note 15 – Classification of Fund Balances (Continued) General Fund Balance Policy The City’s general fund reserve policy consists of an unrestricted General Fund Reserve of 20% of general fund expenditures and an Economic Stability Reserve of 10% of general fund expenditures. The Economic Stability Reserve would only be used in extraordinary circumstances, upon satisfaction of one of the following “economic triggers” and with the majority vote of the City Council: (i) state take-away of significant revenue; (ii) large drop in property taxes (decrease in assessed valuations), (iii) major business closures (sales tax and/or utility users’ tax impact); (iv) dramatic drop in development from projections; (v) large unexpected drop in sales taxes (or other primary revenues - utility users’ tax, franchise fees or transient occupancy tax) due to severe recession or (vi) the economic triggers cause the General Fund Reserve to fall below a predetermined percentage of expenditures (e.g. 20%). In the event the Economic Stability Reserve is used, the City is obligated to replenish the reserve by the end of the next biennial budget to 10% of the general fund expenditures for the given year. Note 16 – Prior Period Adjustments The City made following prior period adjustments as of July 1, 2020: Governmental Business-Type Activities Activities Total Net position at July 1, 2020, as previously reported 166,368,370$ 184,046,988$ 350,415,358$ To implement GASB 84 12,990 - 12,990 Net position at July 1, 2020, as restated 166,381,360$ 184,046,988$ 350,428,348$ General Fund Henry Miller Museum Trust Total Net position at July 1, 2020, as previously reported 14,858,470$ -$ -$ 14,858,470$ To implement GASB 84 (13,581) 17,238 9,333 12,990 Net position at July 1, 2020, as restated 14,844,889$ 17,238$ 9,333$ 14,871,460$ Permanent Funds The City made the following prior period adjustments as of July 1, 2020 to report the net position of its custodial funds: Senior Advisory Highway 152 Highway 152 Highway 152 Board Series 2002 Series 2006 Series 2018 Total Net position at July 1, 2020, as previously reported -$ -$ -$ -$ -$ To implement GASB 84 8,345 544 709 1,082,718 1,092,316 Net position at July 1, 2020, as restated 8,345$ 544$ 709$ 1,082,718$ 1,092,316$ Custodial Funds Prior period adjustments in general fund, fiduciary funds and governmental activities are all from the implementation of GASB statement 84. City of Gilroy Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021 90 Note 17 – Subsequent Events American Rescue Plan Act On March 11, 2021 President Joe Biden signed into law H.R. 1319 – American Rescue Plan Act of 2021 to combat the impacts of the COVID-19 pandemic and lay the foundation for a strong economic recovery. The total bill was a $1.9 trillion-dollar package and included $350 billion dollars in funding for state, local, territorial, and tribal governments. The specific breakdown of this $350 billion included: $195 billion for states, $130 billion for local governments, $20 billion for tribal governments, and $4.5 billion for territories. The City was allocated $10,964,521 as a result of the passage of the bill. This funding will be received in two equal $5,482,260 tranches from the Treasury Department. The first tranche was received on May 19, 2021 and the second tranche will be distributed 365 days from that day. The ARPA funding requires obligation of recovery funds by December 31, 2024 and expenditure of funds by December 31, 2026. As of June 30, 2021, a total of $5,482,260 is reported in unearned revenue in the general fund. REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED) 91 Measurement period 2019-20 2018-19 2017-18 2016-17 2015-16 Total pension liability Service cost 2,360,748$ 2,218,281$ 2,107,888$ 2,119,709$ 1,974,107$ Interest 8,220,201 7,888,537 7,397,421 7,057,333 6,992,371 Changes of benefit terms - - - - - Changes of assumptions - - (870,201) 5,558,063 - Differences between expected and actual experience 670,381 3,067,906 1,618,519 (2,724,046) (878,722) Benefit payments, including refunds of employee contributions (6,415,856) (6,003,668) (5,515,662) (4,810,256) (4,335,513) Net change in total pension liability 4,835,474 7,171,056 4,737,965 7,200,803 3,752,243 Total pension liability - beginning 116,325,023 109,153,967 104,416,002 97,215,199 93,462,956 Total pension liability - ending (a)121,160,497$ 116,325,023$ 109,153,967$ 104,416,002$ 97,215,199$ Pension fiduciary net position Contributions - employer 3,645,000$ 3,254,181$ 2,796,490$ 2,535,645$ 2,448,744$ Contributions - employee 1,076,549 992,926 1,003,145 888,342 895,816 Net investment income 4,099,977 5,226,520 6,275,073 7,621,577 355,337 Benefit payments, including refunds of employee contributions (6,415,856) (6,003,668) (5,515,662) (4,810,256) (4,335,513) Plan to plan resource movement 1,029 - (182) - - Administrative expense2 (115,410) (55,985) (115,667) (100,535) (41,912) Other Miscellaneous Income/(Expense)1 - 182 (219,654) - - Net change in plan fiduciary net position 2,291,289 3,414,156 4,223,543 6,134,773 (677,528) Plan fiduciary net position - beginning 3 81,865,434 78,451,278 74,227,735 68,092,962 68,770,490 Plan fiduciary net position - ending (b)84,156,723$ 81,865,434$ 78,451,278$ 74,227,735$ 68,092,962$ Plan net pension liability - ending (a) - (b)37,003,774$ 34,459,589$ 30,702,689$ 30,188,267$ 29,122,237$ Plan fiduciary net position as a percentage 69.46% 70.38% 71.87% 71.09% 70.04% of the total pension liability Covered payroll3 13,093,445$ 12,003,033$ 11,457,160$ 10,902,171$ 11,189,178$ Plan net pension liability as a percentage of covered payroll 282.61% 287.09% 267.98% 276.90% 260.27% Notes to Schedule: 3 Includes one year’s payroll growth using 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-19; 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-17. City of Gilroy Required Supplementary Information (Unaudited) Schedule of Changes in the Net Pension Liability and Related Ratios For the Year Ended June 30, 2021 Last Ten Fiscal Years Changes of Assumptions: None in 2019 and 2020. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumption December 2017. There were no changes in the discount rate. In 2017, the accounting discount rate reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense.) In 2014, amounts reported were based on the 7.5 percent discount rate. California Public Employees' Retirement System Defined Pension Plan - Miscellaneous Plan 1 Historical information is presented only for measurement periods for which GASB 68 is applicable. 2 Includes any beginning of year adjustment. Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2017 valuation date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes). 92 Measurement period 2014-15 2013-141 Total pension liability Service cost 1,914,477$ 1,886,470$ Interest 6,720,915 6,378,166 Changes of benefit terms - - Changes of assumptions (1,563,145) - Differences between expected and actual experience 67,994 - Benefit payments, including refunds of employee contributions (4,140,599) (3,800,609) Net change in total pension liability 2,999,642 4,464,027 Total pension liability - beginning 90,463,314 85,999,287 Total pension liability - ending (a)93,462,956$ 90,463,314$ Pension fiduciary net position Contributions - employer 2,236,836$ 2,105,469$ Contributions - employee 894,531 978,326 Net investment income 1,523,463 10,200,504 Benefit payments, including refunds of employee contributions (4,140,599) (3,800,609) Plan to plan resource movement - - Administrative expense2 (77,393) - Other Miscellaneous Income/(Expense)1 - - Net change in plan fiduciary net position 436,838 9,483,690 Plan fiduciary net position - beginning 3 68,333,652 58,849,962 Plan fiduciary net position - ending (b)68,770,490$ 68,333,652$ Plan net pension liability - ending (a) - (b)24,692,466$ 22,129,662$ Plan fiduciary net position as a percentage 73.58% 75.54% of the total pension liability Covered payroll3 10,920,524$ 10,072,452$ Plan net pension liability as a percentage of covered payroll 226.11% 219.70% Notes to Schedule: City of Gilroy Required Supplementary Information (Unaudited) Schedule of Changes in the Net Pension Liability and Related Ratios (Continued) For the Year Ended June 30, 2021 Last Ten Fiscal Years Changes of Assumptions: None in 2019 and 2020. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumption December 2017. There were no changes in the discount rate. In 2017, the accounting discount rate reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense.) In 2014, amounts reported were based on the 7.5 percent discount rate. California Public Employees' Retirement System Defined Pension Plan - Miscellaneous Plan 1 Historical information is presented only for measurement periods for which GASB 68 is applicable. 2 Includes any beginning of year adjustment. 3 Includes one year’s payroll growth using 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-19; 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-17. Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2017 valuation date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes). 93 Measurement period 2019-20 2018-19 2017-18 2016-17 2015-16 Total pension liability Service cost 4,116,535$ 4,001,654$ 3,782,506$ 3,795,030$ 3,436,724$ Interest 12,139,906 11,586,454 11,090,179 10,658,420 10,258,316 Changes of benefit terms - - - - - Changes of assumptions - - (633,599) 9,024,447 - Differences between expected and actual experience (85,114) (560,783) (600,354) (1,138,485) (557,694) Benefit payments, including refunds of employee contributions (8,070,115) (7,569,570) (7,391,540) (6,957,768) (6,616,198) Net change in total pension liability 8,101,212 7,457,755 6,247,192 15,381,644 6,521,148 Total pension liability - beginning 171,850,808 164,393,053 158,145,861 142,764,217 136,243,069 Total pension liability - ending (a)179,952,020$ 171,850,808$ 164,393,053$ 158,145,861$ 142,764,217$ Pension fiduciary net position Contributions - employer 6,320,224$ 5,572,994$ 4,906,333$ 4,528,260$ 4,131,687$ Contributions - employee 1,575,349 1,245,565 1,196,981 1,157,337 1,130,369 Net investment income 6,112,651 7,469,298 8,983,812 10,785,793 541,083 Benefit payments, including refunds of employee contributions (8,070,115) (7,569,570) (7,391,540) (6,957,768) (6,616,198) Plan to plan resource movement (1,029) - (263) - - Administrative expense2 (169,364) (80,996) (165,621) (143,087) (59,596) Other Miscellaneous Income/(Expense)1 - 263 (314,517) - - Net change in plan fiduciary net position 5,767,716 6,637,554 7,215,185 9,370,535 (872,655) Plan fiduciary net position - beginning 3 120,137,570 113,500,016 106,284,831 96,914,296 97,786,951 Plan fiduciary net position - ending (b)125,905,286$ 120,137,570$ 113,500,016$ 106,284,831$ 96,914,296$ Plan net pension liability - ending (a) - (b)54,046,734$ 51,713,238$ 50,893,037$ 51,861,030$ 45,849,921$ Plan fiduciary net position as a percentage 69.97% 69.91% 69.04% 67.21% 67.88% of the total pension liability Covered payroll3 14,083,254$ 13,479,938$ 12,879,248$ 12,700,905$ 12,637,804$ Plan net pension liability as a percentage of covered payroll 383.77% 383.63% 395.16% 408.33% 362.80% Notes to Schedule: 2 Includes any beginning of year adjustment. 3 Includes one year’s payroll growth using 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-19; 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-17. Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2017 valuation date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes). Changes of Assumptions: None in 2019 or 2020. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumption December 2017. There were no changes in the discount rate. In 2017, the accounting discount rate reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense.) In 2014, amounts reported were based on the 7.5 percent discount rate. City of Gilroy Required Supplementary Information (Unaudited) Schedule of Changes in the Net Pension Liability and Related Ratios (Continued) For the Year Ended June 30, 2021 Last Ten Fiscal Years California Public Employees' Retirement System Defined Pension Plan - Safety Plan 1 Historical information is presented only for measurement periods for which GASB 68 is applicable. 94 Measurement period 2014-15 2013-141 Total pension liability Service cost 3,251,786$ 3,441,840$ Interest 9,778,748 9,235,218 Changes of benefit terms - - Changes of assumptions (2,444,546) - Differences between expected and actual experience 437,762 - Benefit payments, including refunds of employee contributions (5,976,690) (5,792,746) Net change in total pension liability 5,047,060 6,884,312 Total pension liability - beginning 131,196,009 124,311,697 Total pension liability - ending (a)136,243,069$ 131,196,009$ Pension fiduciary net position Contributions - employer 3,911,991$ 3,844,918$ Contributions - employee 1,106,970 1,082,775 Net investment income 2,139,791 14,460,928 Benefit payments, including refunds of employee contributions (5,976,690) (5,792,746) Plan to plan resource movement - - Administrative expense2 (110,062) - Other Miscellaneous Income/(Expense)1 - - Net change in plan fiduciary net position 1,072,000 13,595,875 Plan fiduciary net position - beginning 3 96,714,951 83,119,076 Plan fiduciary net position - ending (b)97,786,951$ 96,714,951$ Plan net pension liability - ending (a) - (b)38,456,118$ 34,481,058$ Plan fiduciary net position as a percentage 71.77% 73.72% of the total pension liability Covered payroll3 12,055,260$ 12,092,757$ Plan net pension liability as a percentage of covered payroll 319.00% 285.14% Notes to Schedule: City of Gilroy Required Supplementary Information (Unaudited) Schedule of Changes in the Net Pension Liability and Related Ratios (Continued) For the Year Ended June 30, 2021 Last Ten Fiscal Years Changes of Assumptions: None in 2019 or 2020. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumption December 2017. There were no changes in the discount rate. In 2017, the accounting discount rate reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense.) In 2014, amounts reported were based on the 7.5 percent discount rate. California Public Employees' Retirement System Defined Pension Plan - Safety Plan 1 Historical information is presented only for measurement periods for which GASB 68 is applicable. 2 Includes any beginning of year adjustment. 3 Includes one year’s payroll growth using 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-19; 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-17. Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2017 valuation date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes). 95 Fiscal Year End 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 Actuarially determined contribution 3,772,061$ 3,645,000$ 3,254,181$ 2,796,490$ 2,535,645$ 2,448,744$ 2,236,836$ Contributions in relation to the actuarially determined contribution2 (3,772,061) (3,645,000) (3,254,181) (2,796,490) (2,535,645) (2,448,744) (2,236,836) Contribution deficiency (excess) -$ -$ -$ -$ -$ -$ -$ Covered payroll3 13,486,248$ 13,093,445$ 12,003,033$ 11,457,160$ 10,902,171$ 11,189,178$ 10,920,524$ Contributions as a percentage of covered payroll3 27.97% 27.84% 27.11% 24.41% 23.26% 21.88% 20.48% Notes to Schedule: Methods and assumptions used to determine contribution rates: Actuarial cost method Entry Age Normal Cost Method Amortization method Level percentage of payroll Asset valuation method Market value Inflation 2.50% Salary increases Varies by entry age and service Payroll Growth 2.875% Investment rate of return Retirement age Mortality The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2019-20 were derived from the June 30, 2017 funding valuation report. 7.15% net of pension plan investment expenses; includes Inflation. The probabilities of retirement are based on the 2017 CalPERS Experience study for the period from 1997 to 2015. The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries 3 Includes one year’s payroll growth using 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-19; 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-17. 2 Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions. 1 Historical information is presented only for measurement periods for which GASB 68 is applicable. City of Gilroy Required Supplementary Information (Unaudited) Schedule of Plan Contributions - Pension For the Year Ended June 30, 2021 Last Ten Fiscal Years California Public Employees' Retirement System Defined Pension Plan - Miscellaneous 96 Fiscal Year End 2013-14 1 Actuarially determined contribution 2,105,469$ Contributions in relation to the actuarially determined contribution2 (2,105,469) Contribution deficiency (excess)-$ Covered payroll3 10,072,452$ Contributions as a percentage of covered payroll3 20.90% Notes to Schedule: Methods and assumptions used to determine contribution rates: Actuarial cost method Entry Age Normal Cost Method Amortization method Level percentage of payroll Asset valuation method Market value Inflation 2.50% Salary increases Varies by entry age and service Payroll Growth 2.875% Investment rate of return Retirement age Mortality The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2019-20 were derived from the June 30, 2017 funding valuation report. City of Gilroy Required Supplementary Information (Unaudited) Schedule of Plan Contributions - Pension (Continued) For the Year Ended June 30, 2021 Last Ten Fiscal Years California Public Employees' Retirement System Defined Pension Plan - Miscellaneous 1 Historical information is presented only for measurement periods for which GASB 68 is applicable. 7.15% net of pension plan investment expenses; includes Inflation. The probabilities of retirement are based on the 2017 CalPERS Experience study for the period from 1997 to 2015. The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries 2 Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions. 3 Includes one year’s payroll growth using 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-19; 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-17. 97 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 Actuarially determined contribution 6,718,586$ 6,320,224$ 5,572,994$ 4,906,333$ 4,528,260$ 4,131,687$ 3,911,991$ Contributions in relation to the actuarially determined contribution2 (6,718,586) (6,320,224) (5,572,994) (4,906,333) (4,528,260) (4,131,687) (3,911,991) Contribution deficiency (excess) -$ -$ -$ -$ -$ -$ -$ Covered payroll3 14,505,752$ 14,083,254$ 13,479,938$ 12,879,248$ 12,700,905$ 12,637,804$ 12,055,260$ Contributions as a percentage of covered payroll3 46.32% 44.88% 41.34% 38.09% 35.65% 32.69% 32.45% Notes to Schedule: Methods and assumptions used to determine contribution rates: Actuarial cost method Entry Age Normal Cost Method Amortization method Level percentage of payroll Asset valuation method Market value Inflation 2.50% Salary increases Varies by entry age and service Payroll Growth 2.875% Investment rate of return Retirement age Mortality 2 Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions. City of Gilroy Required Supplementary Information (Unaudited) Schedule of Plan Contributions - Pension (Continued) For the Year Ended June 30, 2021 Last Ten Fiscal Years California Public Employees' Retirement System Defined Pension Plan - Safety Plan 1 Historical information is presented only for measurement periods for which GASB 68 is applicable. The probabilities of retirement are based on the 2017 CalPERS Experience study for the period from 1997 to 2015. The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries. 7.15% net of pension plan investment expenses; includes Inflation. 3 Includes one year’s payroll growth using 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-19; 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-17. The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2019-20 were derived from the June 30, 2017 funding valuation report. 98 2013-14 1 Actuarially determined contribution 3,844,918$ Contributions in relation to the actuarially determined contribution2 (3,844,918) Contribution deficiency (excess)-$ Covered payroll3 12,092,757$ Contributions as a percentage of covered payroll3 31.80% Notes to Schedule: Methods and assumptions used to determine contribution rates: Actuarial cost method Entry Age Normal Cost Method Amortization method Level percentage of payroll Asset valuation method Market value Inflation 2.50% Salary increases Varies by entry age and service Payroll Growth 2.875% Investment rate of return Retirement age Mortality City of Gilroy Required Supplementary Information (Unaudited) Schedule of Plan Contributions - Pension (Continued) For the Year Ended June 30, 2021 Last Ten Fiscal Years California Public Employees' Retirement System Defined Pension Plan - Safety Plan 1 Historical information is presented only for measurement periods for which GASB 68 is applicable. The probabilities of retirement are based on the 2017 CalPERS Experience study for the period from 1997 to 2015. The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries. 2 Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions. 3 Includes one year’s payroll growth using 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-19; 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-17. The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2019-20 were derived from the June 30, 2017 funding valuation report. 7.15% net of pension plan investment expenses; includes Inflation. 99 This page intentionally left blank. 100 Measurement period 2019-20 2018-19 2017-18 2016-17 Total OPEB liability Service cost 906,127$ 697,310$ 723,000$ 832,000$ Interest 533,762 594,793 546,000 463,000 Actual vs. expected experience - (1,655,290) - - Changes of assumptions 3,218,042 547,789 (625,000) (1,691,000) Benefit payments, including refunds of employee contributions (500,729) (524,000) (491,000) (479,000) Net change in total OPEB liability 4,157,202 (339,398) 153,000 (875,000) Total OPEB liability - beginning 14,594,602 14,934,000 14,781,000 15,656,000 Total OPEB liability - ending (a)18,751,804$ 14,594,602$ 14,934,000$ 14,781,000$ Covered employee-payroll 3 28,912,941$ 29,906,910$ 27,610,000$ 26,626,000$ Plan net OPEB liability as a percentage of covered payroll 64.86% 48.80% 54.09% 55.51% Notes to Schedule: Benefit Changes: There were no changes in benefits. Changes in Assumptions: The discount rate for the June 30, 2017 measurement date was increased to 3.58% from 2.85%. The discount rate for the June 30, 2018 measurement date was increased to 3.87% from 3.58%. The discount rate for the June 30, 2019 measurement date was decreased to 3.50% from 3.87%. The discount rate for the June 30, 2020 measurement date was decreased to 2.21% from 3.50% Plan assets: There are no plan assets accumulated in a trust that meets the criteria of GASB to pay related benefits for the OPEB plan. Historical information is presented only for measurement periods for which GASB 75 is applicable. For the Year Ended June 30, 2021 Schedule of Changes in the Net OPEB Liability and Related Ratios Required Supplementary Information (Unaudited) City of Gilroy Other Post Employment Benefit Plan Last Ten Fiscal Years 101 Original Final Variance with Budget Budget Actual Final Budget REVENUES: Taxes: Property taxes 15,077,258$ 15,077,258$ 17,016,855$ 1,939,597$ Sales tax 21,411,869 21,411,869 18,296,221 (3,115,648) Transient occupancy tax 1,955,955 1,955,955 1,105,300 (850,655) Utility taxes 4,643,807 4,643,807 4,400,681 (243,126) Franchise taxes 1,732,351 1,732,351 1,732,613 262 Document transfer tax 313,982 313,982 629,472 315,490 Motor vehicle in lieu tax 33,111 33,111 41,867 8,756 Total taxes 45,168,333 45,168,333 43,223,009 (1,945,324) Intergovernmental: Grants 143,500 143,500 244,556 101,056 Total intergovernmental Charges for Services: Administrative charges 2,289,048 2,289,048 2,040,609 (248,439) Overhead to enterprise 447,799 447,799 459,171 11,372 Plan checks and inspections 2,604,871 2,604,871 4,550,708 1,945,837 Special planning services 500,000 500,000 458,761 (41,239) Special police services 54,122 54,122 14,355 (39,767) Special fire services 150,000 150,000 163,499 13,499 Community recreation 1,234,935 1,234,935 260,115 (974,820) Total charges for services 7,280,775 7,280,775 7,947,218 666,443 Licenses and Permits: Business licenses 713,987 713,987 540,234 (173,753) Hazardous material permits 194,500 194,500 261,076 66,576 Building permits 2,694,783 2,694,783 1,437,490 (1,257,293) Other licenses and permits 59,276 59,276 39,504 (19,772) Total licenses and permits 3,662,546 3,662,546 2,278,304 (1,384,242) Fines: Vehicle fines 166,580 166,580 45,517 (121,063) Parking fines 21,150 21,150 18,582 (2,568) Abandoned vehicle 75,000 75,000 167,589 92,589 Total Fines 262,730 262,730 231,688 (31,042) Investment income 500,890 500,890 (25,861) (526,751) Miscellaneous: Police and fire 490,536 490,536 865,811 375,275 Community services 116,800 116,800 113,664 (3,136) Buildings 2,000 2,000 3,963 1,963 Other 466,140 466,140 995,884 529,744 Total Miscellaneous 1,075,476 1,075,476 1,979,322 903,846 Total Revenues 58,094,250 58,094,250 55,878,236 (2,216,014) (Continued) City of Gilroy Required Supplementary Information Budgetary Comparison Schedule - General Fund For the Year Ended June 30, 2021 102 Original Final Variance with Budget Budget Actual Final Budget EXPENDITURES: General Government: City council 224,523 214,823 218,221 (3,398) City administration 2,144,509 1,622,415 1,398,664 223,751 Emergency services 4,020 1,100 180,937 (179,837) Finance 783,915 689,843 709,869 (20,026) General administration 1,510,635 1,510,635 1,616,786 (106,151) City attorney 435,000 435,000 586,598 (151,598) Personnel 1,415,622 1,257,254 985,879 271,375 Total general government 6,518,224 5,731,070 5,696,954 34,116 Public Safety: Police administration 3,761,447 3,763,342 4,171,332 (407,990) Police patrol operations 16,138,476 15,170,559 14,352,698 817,861 Police investigation 1,591,426 1,458,071 1,296,714 161,357 Communications 2,441,105 2,433,981 2,088,121 345,860 Police records 1,290,513 1,190,678 1,027,363 163,315 Fire administration 1,646,554 1,553,872 1,160,410 393,462 Fire operations 10,239,679 10,834,575 10,792,117 42,458 Total public safety 37,109,200 36,405,078 34,888,755 1,516,323 Public works: Engineering 1,223,089 858,208 696,701 161,507 Street maintenance/forestry 1,276,596 1,193,645 1,236,216 (42,571) Landscape maintenance 2,943,739 2,366,982 2,601,454 (234,472) Total public works 5,443,424 4,418,835 4,534,371 (115,536) Community development: Administration 287,539 378,675 211,921 166,754 Planning 2,553,760 2,074,211 1,834,575 239,636 B.L.E.S.1,906,931 1,535,727 1,438,038 97,689 Chemical containment hazardous materials 625,789 493,400 506,022 (12,622) Total community development 5,374,019 4,482,013 3,990,556 491,457 Recreation services: Community recreation 3,928,008 2,777,721 1,702,666 1,075,055 Total recreation services 3,928,008 2,777,721 1,702,666 1,075,055 Capital outlay: Capital outlay 273,869 785,869 213,465 572,404 Total capital outlay 273,869 785,869 213,465 572,404 TOTAL EXPENDITURES 58,646,744 54,600,586 51,026,767 3,573,819 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (552,494) 3,493,664 4,851,469 1,357,805 OTHER FINANCING SOURCES: Transfers in 182,000 182,000 334,031 152,031 Transfers out (282,884) (282,884) (397,146) (114,262) Total other financing sources (100,884) (100,884) (63,115) 37,769 NET CHANGE IN FUND BALANCE (653,378)$ 3,392,780$ 4,788,354 1,395,574$ FUND BALANCE: Beginning of Year 14,844,889 End of Year 19,633,243$ (Concluded) For the Year Ended June 30, 2021 City of Gilroy Required Supplementary Information Budgetary Comparison Schedule - General Fund (Continued) 103 This page intentionally left blank. 104 The City Administrator submits to the City Council a proposed budget for all funds. Council then proceeds to make any changes to the proposed budget it deems necessary. Before adopting the proposed budget, Council holds a public hearing for any interested party desiring to be heard. Notice must be given 10 days prior to the hearing and must be published in the City’s official newspaper. After the conclusion of the public hearing, Council may further make revisions to the proposed budget. Thereafter, Council adopts the budget with revisions, if any. Legally adopted budgets for all governmental funds are established on a basis consistent with accounting principles generally accepted in the United States of America. City Council approval is required for all revisions to the adopted budget that require additional appropriations or new funding. City Administrator approval is required for all transfers within the adopted budget. Operational appropriations lapse at fiscal year-end unless City Council takes formal action to carry forward appropriations into the following fiscal year. The level on which expenditures may not legally exceed appropriations is the fund level. The budgetary comparison schedules are not presented for the Lease Revenue Bond Series 2020A Debt Service Fund. City of Gilroy Required Supplementary Information Notes to the Budgetary Comparison Schedules For the Year Ended June 30, 2021 Budget and Budgetary Accounting 105 This page intentionally left blank. 106 SUPPLEMENTARY INFORMATION 107 Original Final Variance with Budget Budget Actual Final Budget REVENUES: Charges for services 6,194,926$ 6,194,926$ 4,325,852$ (1,869,074)$ Investment income 153,606 153,606 4,624 (148,982) Miscellaneous - - 281,104 281,104 Total revenues 6,348,532 6,348,532 4,611,580 (1,736,952) EXPENDITURES: Current: Public works 1,292,600 1,611,596 8,429 1,603,167 Debt service: Interest and fiscal charges 58,715 58,715 91,343 (32,628) Total expenditures 1,351,315 1,670,311 99,772 1,570,539 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 4,997,217 4,678,221 4,511,808 (166,413) OTHER FINANCIN SOURCES (USES): Transfers in 40,763 40,763 40,763 - Transfers out (4,330,995) (4,330,995) (3,591,375) 739,620 Total other financing sources (uses)(4,290,232) (4,290,232) (3,550,612) 739,620 NET CHANGE IN FUND BALANCE 706,985$ 387,989$ 961,196 573,207$ FUND BALANCE: Beginning of Year (6,358,684) End of Year (5,397,488)$ City of Gilroy Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Public Facilities Impact Capital Projects Fund For the Year Ended June 30, 2021 108 Community Development Block Grant - This fund is used to account for Housing and Urban Development grants used to operate the Community Development Grant Program. Rehabilitation Loans - This fund is used to account for loan proceeds used from the state for housing projects. Housing Trust Fund - This fund is used to account for local funds used to address affordable housing and homelessness, for both capital projects and services provided to homebuyers regarding down payment assistance and administrative oversight. Community Facilities District - This fund is used to account for funds from special landscape assessment districts used to maintain improvements of a public nature that provide benefits to the property owner. Vehicle License Fee - This fund is used to account for vehicle license fees received from Santa Clara County to be used for pavement maintenance, operations, signals, signs and markings. Measure B - This fund is used to account for street and road maintenance and repair projects. Traffic Impact - This fund is used to finance the construction of streets, bridges, interchanges and traffic signals within the City as described in the City of Gilroy’s Circulation Element. Improvements and expansions of the City’s traffic circulation system are needed to accommodate development of new residential, commercial and industrial uses with the City. The traffic impact fee is used to expand system capacity to accommodate new development. Storm Drains - This fund is used finance the construction of drainage collection and distribution systems within the City as described in the City of Gilroy’s Storm Drain Master Plan. Improvements and expansions of the City’s storm drain system are needed to accommodate development of new residential, commercial and industrial uses within the City. The storm drain development fee is used to expand system capacity to accommodate new development. Utility Undergrounding - This fund is used to allocate resources to underground existing overhead utilities (electricity, telephone and cable) along fully constructed streets. The City collects the fee from developers as development occurs along these streets. Street Trees Development - This fund is used to account for the collection of a front footage fee to plant trees in new developments. Prop 172 Sales Tax - This fund is used to account for funds received from state sales tax used for public safety activities. NONMAJOR GOVERNMENTAL FUNDS These funds account for revenue sources that are restricted for specific purposes (other than those resources to be expended solely for the construction of major capital facilities). Gas Tax - This fund is used to account for the City’s share of state gasoline tax required to be used for construction and maintenance of the City’s road network system. Pavement Management - This fund is used to account for County Measure A and other transportation grants used to repair and rebuild various roads. Public Safety Grants - This fund is used to account for state and federal grants used for public safety activities. SPECIAL REVENUE FUNDS BANS 2009 Financing -This fund is used to account for the 2009 short-term refinancing of the City’s public facilities debt. The City included its cost for the Christopher High School joint use public facilities with GUSD in the refinancing. Los Arroyos Fund - This fund is used to account for funds received from South County Housing to support future homebuyers in the Los Arroyos neighborhood. CAPITAL PROJECTS FUNDS These funds account for resources intended to be used primarily for major capital facilities (other than those financed by revenues of proprietary funds). Capital Projects -This fund is used to account for major capital projects other than those financed by revenues of proprietary funds, including projects that are partially funded from other sources such as grants or fuel tax. CalHome Funds - This fund is used to account funds received from South County Housing to support future homebuyers. 109 PERMANENT FUNDS Museum Trust - This fund was established by the sale of a vase by the Gilroy Museum. The purpose in selling the vase was to create an endowment for the museum. This would generate interest income for the museum. Henry Miller - This fund is used to account for a donation from Henry Miller. The annual interest earned on the original donation of $15,000 is the amount donated to the poor of Gilroy each Christmas season. Lease Revenue Bonds Series 2020A - This fund is used to account for the payments of debt service of principal and interest for the PFFA Lease Revenue 2020A Bonds. Sewer Development - This fund is used to account for the construction of sewer collection and conveyance systems within the City as described in the City of Gilroy’s Sewer Master Plan. Improvements and expansions of the City’s sewer system are needed to accommodate development of new residential, commercial and industrial uses within the City. The sewer development fee is used to expand system capacity to accommodate new development. CA Energy Commission Loan -This fund is used to account for the payments of debt service of principal and interest for the loan agreement between the CA Energy Commission (CEC) and the City for the Wide LED streetlight replacement project. Gilroy Community Library -This fund is used to account for payments of the indebtedness of the refinanced 2019 series A and B General Obligation Bonds for the Gilroy Community Library. Water Development - This fund is used to account for the construction of water transmission, distribution and storage systems within Pressure Zone 1 of the City’s water system as described in the City of Gilroy’s Water Master Plan. Improvements and expansions of the City’s water system are needed to accommodate development of new residential, commercial and industrial uses within the City. The water development fee is used to expand capacity to accommodate new development. Refunding Lease 2010 -This fund is used to account for the payments of debt service of principal and interest for the PFFA Refunding Lease 2010 Bonds. 2013 Refunding Bond -This fund is used to account for the payments of debt service of principal and interest for the 2013 Lease Revenue Refunding Bonds. Bank Interest - This fund is used to account for the interest earned on the citywide treasurer’s investment pool. Quarterly, the earnings are allocated to the appropriate funds. At the end of the fiscal year, the earnings of those funds not subject to interest are transferred to the Capital Projects Fund. Gilroy Community Library - This fund is used to account for the acquisition, construction and improvement of facilities to be used as a public library within the City. Funding was provided by issuance of general obligation bonds. Interest earned on specific LAIF account will be recorded directly to the Library fund. DEBT SERVICE FUNDS These funds account for resources accumulated for the payment of principal and interest (other than that for proprietary fund debt). NONMAJOR GOVERNMENTAL FUNDS (Continued) CAPITAL PROJECTS FUNDS (Continued) 110 Public Pavement Safety Prop 172 Gas Tax Management Grants Sales Tax ASSETS Cash and investments 6,157,416$ 178,466$ 291,149$ 13,946$ Receivables: Accounts - - 34,381 - Due from other governments 103,159 - 98,884 57,335 Interest - - - - Loans - - - - Advances from other funds - - - - Land held for resale - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total assets 6,260,575$ 178,466$ 424,414$ 71,281$ LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Liabilities: Accounts payable 695,200$ -$ 10,486$ -$ Accrued liabilities 14,383 - 26,183 - Deposits payable - - - - Unearned revenue - - - - Due to the component unit - - - - Total liabilities 709,583 - 36,669 - Deferred inflows of resources: Unavailable revenues - - - - Total deferred inflows of resources - - - - Fund balances: Restricted 5,550,992 178,466 387,745 71,281 Assigned - - - - Unassigned (deficit)- - - - Total fund balances 5,550,992 178,466 387,745 71,281 Total liabilities, deferred inflows of resources, and fund balances 6,260,575$ 178,466$ 424,414$ 71,281$ (Continued) City of Gilroy Combining Balance Sheet Nonmajor Governmental Funds June 30, 2021 Special Revenue Funds 111 Community Housing Community Development Rehabilitation Trust Facilities Block Grant Loans Fund District ASSETS Cash and investments -$ 230$ 740,604$ 1,388,841$ Receivables: Accounts - - - - Due from other governments 73,460 - - - Interest 395,011 - 320,760 - Loans 1,712,075 - 1,322,080 - Advances from other funds - - - - Land held for resale - - 706,754 - Restricted assets: Cash and investments with fiscal agents - - - - Total assets 2,180,546$ 230$ 3,090,198$ 1,388,841$ LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Liabilities: Accounts payable 91,241$ -$ 41,577$ 3,722$ Accrued liabilities 8,621 - 15,473 22,246 Deposits payable - - - - Unearned revenue - - - - Due to the component unit - - - - Total liabilities 99,862 - 57,050 25,968 Deferred inflows of resources: Unavailable revenues 401,363 - 320,760 - Total deferred inflows of resources 401,363 - 320,760 - Fund balances: Restricted 1,679,321 230 2,712,388 1,362,873 Assigned - - - - Unassigned (deficit)- - - - Total fund balances 1,679,321 230 2,712,388 1,362,873 Total liabilities, deferred inflows of resources, and fund balances 2,180,546$ 230$ 3,090,198$ 1,388,841$ (Continued) City of Gilroy Combining Balance Sheet (Continued) Nonmajor Governmental Funds June 30, 2021 Special Revenue Funds 112 Vehicle License Los Arroyos CalHome Measure B Fee Fund Funds ASSETS Cash and investments 2,041,259$ 1,218,746$ 407,538$ 294,243$ Receivables: Accounts - - - - Due from other governments - - - - Interest - - - 57,765 Loans - - - 180,600 Advances from other funds - - - - Land held for resale - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total assets 2,041,259$ 1,218,746$ 407,538$ 532,608$ LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Liabilities: Accounts payable 123$ 533,258$ -$ -$ Accrued liabilities - - - - Deposits payable - - - - Unearned revenue - - - 238,365 Due to the component unit - - - - Total liabilities 123 533,258 - 238,365 Deferred inflows of resources: Unavailable revenues - - - - Total deferred inflows of resources - - - - Fund balances: Restricted 2,041,136 685,488 407,538 294,243 Assigned - - - - Unassigned (deficit)- - - - Total fund balances 2,041,136 685,488 407,538 294,243 Total liabilities, deferred inflows of resources, and fund balances 2,041,259$ 1,218,746$ 407,538$ 532,608$ (Continued) City of Gilroy Combining Balance Sheet (Continued) Nonmajor Governmental Funds June 30, 2021 Special Revenue Funds 113 BANS Capital 2009 Traffic Storm Projects Financing Impact Drains ASSETS Cash and investments 5,404,205$ 34,968$ 14,342,877$ 1,143,471$ Receivables: Accounts - - - - Due from other governments - - - - Interest - - - - Loans - - - - Advances from other funds - - - 939,317 Land held for resale - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total assets 5,404,205$ 34,968$ 14,342,877$ 2,082,788$ LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Liabilities: Accounts payable 27,435$ -$ 84,351$ 3,934$ Accrued liabilities 100,233 - - - Deposits payable - - - - Unearned revenue - - - - Due to the component unit - - - - Total liabilities 127,668 - 84,351 3,934 Deferred inflows of resources: Unavailable revenues - - - - Total deferred inflows of resources - - - - Fund balances: Restricted - 34,968 14,258,526 2,078,854 Assigned 5,276,537 - - - Unassigned (deficit)- - - - Total fund balances 5,276,537 34,968 14,258,526 2,078,854 Total liabilities, deferred inflows of resources, and fund balances 5,404,205$ 34,968$ 14,342,877$ 2,082,788$ (Continued) City of Gilroy Combining Balance Sheet (Continued) Nonmajor Governmental Funds June 30, 2021 Capital Projects Funds 114 Street Utility Trees Sewer Water Undergrounding Development Development Development ASSETS Cash and investments 8$ 139,092$ 12,891,194$ 5,106,671$ Receivables: Accounts - - - - Due from other governments - - - - Interest - - - - Loans - - - - Advances from other funds - - 1,427,388 - Land held for resale - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total assets 8$ 139,092$ 14,318,582$ 5,106,671$ LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Liabilities: Accounts payable -$ -$ 3,934$ 4,604$ Accrued liabilities - - - - Deposits payable - - - - Unearned revenue - - - - Due to the component unit - - 1,132,239 - Total liabilities - - 1,136,173 4,604 Deferred inflows of resources: Unavailable revenues - - - - Total deferred inflows of resources - - - - Fund balances: Restricted 8 139,092 13,182,409 5,102,067 Assigned - - - - Unassigned (deficit)- - - - Total fund balances 8 139,092 13,182,409 5,102,067 Total liabilities, deferred inflows of resources, and fund balances 8$ 139,092$ 14,318,582$ 5,106,671$ (Continued) City of Gilroy Combining Balance Sheet (Continued) Nonmajor Governmental Funds June 30, 2021 Capital Projects Funds 115 Gilroy Refunding 2013 Bank Community Lease Refunding Interest Library 2010 Bond ASSETS Cash and investments -$ 5,254,686$ 65$ 86,833$ Receivables: Accounts - - - - Due from other governments - 4,274 - - Interest - - - - Loans - - - - Advances from other funds - - - - Land held for resale - - - - Restricted assets: Cash and investments with fiscal agents - - - 920,288 Total assets -$ 5,258,960$ 65$ 1,007,121$ LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Liabilities: Accounts payable 54$ -$ -$ -$ Accrued liabilities - - - - Deposits payable - - - - Unearned revenue - - - - Due to the component unit - - - - Total liabilities 54 - - - Deferred inflows of resources: Unavailable revenues - - - - Total deferred inflows of resources - - - - Fund balances: Restricted - 5,258,960 65 1,007,121 Assigned - - - - Unassigned (deficit)(54) - - - Total fund balances (54) 5,258,960 65 1,007,121 Total liabilities, deferred inflows of resources, and fund balances -$ 5,258,960$ 65$ 1,007,121$ (Continued) City of Gilroy Combining Balance Sheet (Continued) Nonmajor Governmental Funds June 30, 2021 Capital Projects Funds Debt Service Funds 116 Permanent Funds Gilroy CA Energy Lease Revenue Community Commission Bond Series Henry Miller Library Loan 2020A Library ASSETS Cash and investments 1,237,715$ 20,033$ 675,110$ 15,053$ Receivables:- - Accounts - - - - Due from other governments - - - - Interest - - - - Loans - - - - Advances from other funds - - - - Land held for resale - - - - Restricted assets: Cash and investments with fiscal agents - - 3 - Total assets 1,237,715$ 20,033$ 675,113$ 15,053$ LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Liabilities: Accounts payable -$ -$ -$ -$ Accrued liabilities - - - - Deposits payable - - - - Unearned revenue - - - - Due to the component unit - - - - Total liabilities - - - - Deferred inflows of resources: Unavailable revenues - - - - Total deferred inflows of resources - - - - Fund balances: Restricted 1,237,715 20,033 675,113 15,053 Assigned - - - - Unassigned (deficit)- - - - Total fund balances 1,237,715 20,033 675,113 15,053 Total liabilities, deferred inflows of resources, and fund balances 1,237,715$ 20,033$ 675,113$ 15,053$ (Continued) City of Gilroy Combining Balance Sheet (Continued) Nonmajor Governmental Funds June 30, 2021 Debt Service Funds 117 Permanent Funds Total Other Museum Governmental Trust Funds ASSETS Cash and investments 44,853$ 59,129,272$ Receivables: Accounts - 34,381 Due from other governments - 337,112 Interest - 773,536 Loans - 3,214,755 Advances from other funds - 2,366,705 Land held for resale - 706,754 Restricted assets: Cash and investments with fiscal agents - 920,291 Total assets 44,853$ 67,482,806$ LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Liabilities: Accounts payable -$ 1,499,919$ Accrued liabilities - 187,139 Deposits payable 35,299 35,299 Unearned revenue - 238,365 Due to the component unit - 1,132,239 Total liabilities 35,299 3,092,961 Deferred inflows of resources: Unavailable revenues - 722,123 Total deferred inflows of resources - 722,123 Fund balances: Restricted 9,554 58,391,239 Assigned - 5,276,537 Unassigned (deficit)- (54) Total fund balances 9,554 63,667,722 Total liabilities, deferred inflows of resources, and fund balances 44,853$ 67,482,806$ (Concluded) City of Gilroy Combining Balance Sheet (Continued) Nonmajor Governmental Funds June 30, 2021 118 Public Pavement Safety Prop 172 Gas Tax Management Grants Sales Tax Revenues: Taxes -$ -$ -$ 288,314$ Intergovernmental 2,229,186 333,034 656,371 - Charges for services - - - - Investment income 34,558 308 2,486 80 Miscellaneous - - 90,678 - Total revenues 2,263,744 333,342 749,535 288,394 Expenditures: Current: General government - - - - Public safety - - 716,554 250,874 Community development - - - - Public works 551,141 - - - Capital outlay 2,554,185 216,623 55,785 - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total expenditures 3,105,326 216,623 772,339 250,874 Revenues over (under) expenditures (841,582) 116,719 (22,804) 37,520 Other financing sources (uses): Issuance of debt - - - - Payment to refunded bond escrow - - - - Transfers in - 8,119 118,965 - Transfers out (107,363) - (197,168) (37,520) Total other financing sources (uses)(107,363) 8,119 (78,203) (37,520) Net Change in Fund Balances (948,945) 124,838 (101,007) - Fund balances: Beginning of year 6,499,937 53,628 488,752 71,281 End of year 5,550,992$ 178,466$ 387,745$ 71,281$ (Continued) Special Revenue Funds City of Gilroy Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended June 30, 2021 119 Community Housing Community Development Rehabilitation Trust Facilities Block Grant Loans Fund District Revenues: Taxes -$ -$ -$ 468,109$ Intergovernmental 684,138 - - - Charges for services - - - - Investment income 30,873 - 8,572 5,942 Miscellaneous 4,896 - 270,122 - Total revenues 719,907 - 278,694 474,051 Expenditures: Current: General government - - - - Public safety - - - - Community development 1,009,272 - 524,084 - Public works - - - 346,346 Capital outlay 252,791 - - - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total expenditures 1,262,063 - 524,084 346,346 Revenues over (under) expenditures (542,156) - (245,390) 127,705 Other financing sources (uses): Issuance of debt - - - - Payment to refunded bond escrow - - - - Transfers in 148,183 - 18,664 - Transfers out (60,338) - - - Total other financing sources (uses)87,845 - 18,664 - Net Change in Fund Balances (454,311) - (226,726) 127,705 Fund balances: Beginning of year 2,133,632 230 2,939,114 1,235,168 End of year 1,679,321$ 230$ 2,712,388$ 1,362,873$ (Continued) Special Revenue Funds City of Gilroy Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds For the Year Ended June 30, 2021 120 Vehicle License Los Arroyos CalHome Measure B Fee Fund Funds Revenues: Taxes -$ -$ -$ -$ Intergovernmental 2,052,798 366,285 - 45,906 Charges for services - - - - Investment income 7,135 6,568 2,013 1,206 Miscellaneous - - - 77,118 Total revenues 2,059,933 372,853 2,013 124,230 Expenditures: Current: General government - - - - Public safety - - - - Community development - - - - Public works 22,633 171,331 - - Capital outlay - 651,470 - - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total expenditures 22,633 822,801 - - Revenues over (under) expenditures 2,037,300 (449,948) 2,013 124,230 Other financing sources (uses): Issuance of debt - - - - Payment to refunded bond escrow - - - - Transfers in - - - - Transfers out - - - - Total other financing sources (uses)- - - - Net Change in Fund Balances 2,037,300 (449,948) 2,013 124,230 Fund balances: Beginning of year 3,836 1,135,436 405,525 170,013 End of year 2,041,136$ 685,488$ 407,538$ 294,243$ (Continued) City of Gilroy Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds For the Year Ended June 30, 2021 Special Revenue Funds 121 BANS Capital 2009 Traffic Storm Projects Financing Impact Drains Revenues: Taxes -$ -$ -$ -$ Intergovernmental - - - - Charges for services - - 2,918,793 60,897 Investment income 31,445 173 63,221 19,030 Miscellaneous 113,900 - - - Total revenues 145,345 173 2,982,014 79,927 Expenditures: Current: General government - - - - Public safety - - - - Community development - - - - Public works - - 124,404 48,787 Capital outlay 236,816 - 2,061,922 - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total expenditures 236,816 - 2,186,326 48,787 Revenues over (under) expenditures (91,471) 173 795,688 31,140 Other financing sources (uses): Issuance of debt - - - - Payment to refunded bond escrow - - - - Transfers in - - 48,769 1,196 Transfers out - - - - Total other financing sources (uses)- - 48,769 1,196 Net Change in Fund Balances (91,471) 173 844,457 32,336 Fund balances: Beginning of year 5,368,008 34,795 13,414,069 2,046,518 End of year 5,276,537$ 34,968$ 14,258,526$ 2,078,854$ (Continued) Capital Projects Funds City of Gilroy Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds For the Year Ended June 30, 2021 122 Street Utility Trees Sewer Water Undergrounding Development Development Development Revenues: Taxes -$ -$ -$ -$ Intergovernmental - - - - Charges for services - 2,396 1,764,901 464,810 Investment income 35 681 80,738 23,833 Miscellaneous - - - - Total revenues 35 3,077 1,845,639 488,643 Expenditures: Current: General government - - - - Public safety - - - - Community development - - - - Public works - - 1,375,571 48,709 Capital outlay - - - - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total expenditures - - 1,375,571 48,709 Revenues over (under) expenditures 35 3,077 470,068 439,934 Other financing sources (uses): Issuance of debt - - - - Payment to refunded bond escrow - - - - Transfers in - 27 28,351 5,893 Transfers out (8,119) - (692,875) - Total other financing sources (uses)(8,119) 27 (664,524) 5,893 Net Change in Fund Balances (8,084) 3,104 (194,456) 445,827 Fund balances: Beginning of year 8,092 135,988 13,376,865 4,656,240 End of year 8$ 139,092$ 13,182,409$ 5,102,067$ (Continued) City of Gilroy Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds For the Year Ended June 30, 2021 Capital Projects Funds 123 Gilroy Refunding 2013 Bank Community Lease Refunding Interest Library 2010 Bond Revenues: Taxes -$ -$ -$ -$ Intergovernmental - - - - Charges for services - - - - Investment income - 29,303 20,224 787 Miscellaneous - - - - Total revenues - 29,303 20,224 787 Expenditures: Current: General government - - 6,914 5,707 Public safety - - - - Community development - - - - Public works - - - - Capital outlay - - - - Debt service: Principal retirement - - - 945,000 Interest and fiscal charges - - 463,382 891,669 Total expenditures - - 470,296 1,842,376 Revenues over (under) expenditures - 29,303 (450,072) (1,841,589) Other financing sources (uses): Issuance of debt - - - - Payment to refunded bond escrow - - (17,555,000) - Transfers in - - 17,969,653 1,845,169 Transfers out - - (1,892,247) - Total other financing sources (uses)- - (1,477,594) 1,845,169 Net Change in Fund Balances - 29,303 (1,927,666) 3,580 Fund balances: Beginning of year (54) 5,229,657 1,927,731 1,003,541 End of year (54)$ 5,258,960$ 65$ 1,007,121$ (Continued) Capital Projects Funds City of Gilroy Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds For the Year Ended June 30, 2021 Debt Service Funds 124 Permanent Funds Gilroy CA Energy Lease Revenue Community Commission Bond Series Henry Library Loan 2020A Miller Revenues: Taxes 1,937,065$ -$ -$ -$ Intergovernmental - - - - Charges for services - - - - Investment income 3,299 159 6,717 82 Miscellaneous - - 50,129 - Total revenues 1,940,364 159 56,846 82 Expenditures: Current: General government 6,680 - 212,500 2,267 Public safety - - - - Community development - - - - Public works - - - - Capital outlay - - - - Debt service: Principal retirement 990,810 91,515 790,000 - Interest and fiscal charges 843,675 8,347 485,958 - Total expenditures 1,841,165 99,862 1,488,458 2,267 Revenues over (under) expenditures 99,199 (99,703) (1,431,612) (2,185) Other financing sources (uses): Issuance of debt - - 16,459,825 - Payment to refunded bond escrow - - - - Transfers in - 99,863 3,638,453 - Transfers out - - (17,969,653) - Total other financing sources (uses)- 99,863 2,128,625 - Net Change in Fund Balances 99,199 160 697,013 (2,185) Fund balances: Beginning of year, as restated (Note 16) 1,138,516 19,873 (21,900) 17,238 End of year 1,237,715$ 20,033$ 675,113$ 15,053$ (Continued) City of Gilroy Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds For the Year Ended June 30, 2021 Debt Service Funds 125 Permanent Funds Total Other Museum Governmental Trust Funds Revenues: Taxes -$ 2,693,488$ Intergovernmental - 6,367,718 Charges for services - 5,211,797 Investment income 221 379,689 Miscellaneous - 606,843 Total revenues 221 15,259,535 Expenditures: Current: General government - 234,068 Public safety - 967,428 Community development - 1,533,356 Public works - 2,688,922 Capital outlay - 6,029,592 Debt service: Principal retirement - 2,817,325 Interest and fiscal charges - 2,693,031 Total expenditures - 16,963,722 Revenues over (under) expenditures 221 (1,704,187) Other financing sources (uses): Issuance of debt - 16,459,825 Payment to refunded bond escrow - (17,555,000) Transfers in - 23,931,305 Transfers out - (20,965,283) Total other financing sources (uses)- 1,870,847 Net Change in Fund Balances 221 166,660 Fund balances: 9,333 63,501,062 Beginning of year, as restated (Note 16) End of year 9,554$ 63,667,722$ (Concluded) City of Gilroy Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds For the Year Ended June 30, 2021 126 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Revenues: Intergovernmental 2,007,500$ 2,007,500$ 2,229,186$ 221,686$ Investment income 114,872 114,872 34,558 (80,314) Total Revenues 2,122,372 2,122,372 2,263,744 141,372 Expenditures: Current: Public works 1,509,089 4,654,107 551,141 4,102,966 Capital outlay 1,047,000 2,481,414 2,554,185 (72,771) Total Expenditures 2,556,089 7,135,521 3,105,326 4,030,195 REVENUE OVER (UNDER) EXPENDITURES (433,717) (5,013,149) (841,582) 4,171,567 Other Financing Sources (Uses): Transfers out (107,363) (107,363) (107,363) - Total Other Financing Sources (Uses)(107,363) (107,363) (107,363) - NET CHANGE IN FUND BALANCE (541,080)$ (5,120,512)$ (948,945) 4,171,567$ FUND BALANCE: Beginning of Year 6,499,937 End of Year 5,550,992$ City of Gilroy Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2021 Budgeted Amounts Gas Tax Special Revenue Fund 127 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Revenues: Intergovernmental -$ -$ 333,034$ 333,034$ Investment income - - 308 308 Total Revenues - - 333,342 333,342 Expenditures: Capital outlay - 304,385 216,623 87,762 Total Expenditures - 304,385 216,623 87,762 REVENUE OVER (UNDER) EXPENDITURES - (304,385) 116,719 421,104 Other Financing Sources (Uses): Transfers in - - 8,119 8,119 Total Other Financing Sources (Uses)- - 8,119 8,119 NET CHANGE IN FUND BALANCE -$ (304,385)$ 124,838 429,223$ FUND BALANCE: Beginning of Year 53,628 End of Year 178,466$ City of Gilroy Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Pavement Management Special Revenue Fund For the Year Ended June 30, 2021 Budgeted Amounts 128 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Revenues: Intergovernmental 551,800$ 1,027,656$ 656,371$ (371,285)$ Investment income 11,043 11,043 2,486 (8,557) Miscellaneous - - 90,678 90,678 Total Revenues 562,843 1,038,699 749,535 (289,164) Expenditures: Current: Public safety 614,686 1,009,183 716,554 292,629 Capital outlay - 126,000 55,785 70,215 Total Expenditures 614,686 1,135,183 772,339 362,844 REVENUE OVER (UNDER) EXPENDITURES (51,843) (96,484) (22,804) 73,680 Other Financing Sources (Uses): Transfers in 157,885 157,885 118,965 (38,920) Transfers out (100,000) (100,000) (197,168) (97,168) Total Other Financing Sources (Uses)57,885 57,885 (78,203) (136,088) NET CHANGE IN FUND BALANCE 6,042$ (38,599)$ (101,007) (62,408)$ FUND BALANCE: Beginning of Year 488,752 End of Year 387,745$ City of Gilroy Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Public Safety Grants Special Revenue Fund Budgeted Amounts For the Year Ended June 30, 2021 129 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Revenues: Taxes 261,000$ 261,000$ 288,314$ 27,314$ Investment income 723 723 80 (643) Total Revenues 261,723 261,723 288,394 26,671 Expenditures: Current: Public safety 258,129 258,129 250,874 7,255 Total Expenditures 258,129 258,129 250,874 7,255 REVENUE OVER (UNDER) EXPENDITURES 3,594 3,594 37,520 33,926 Other Financing Sources (Uses): Transfers out - - (37,520) (37,520) Total Other Financing Sources (Uses)- - (37,520) (37,520) NET CHANGE IN FUND BALANCE 3,594$ 3,594$ - (3,594)$ FUND BALANCE: Beginning of Year 71,281 End of Year 71,281$ City of Gilroy Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Prop 172 Sales Tax Special Revenue Fund Budgeted Amounts For the Year Ended June 30, 2021 130 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Revenues: Intergovernmental 509,869$ 509,869$ 684,138$ 174,269$ Investment income 9,009 9,009 30,873 21,864 Miscellaneous - - 4,896 4,896 Total Revenues 518,878 518,878 719,907 201,029 Expenditures: Current: Community development 253,807 319,807 1,009,272 (689,465) Capital outlay - 169,000 252,791 (83,791) Total expenditures 253,807 488,807 1,262,063 (773,256) REVENUE OVER (UNDER) EXPENDITURES 265,071 30,071 (542,156) (572,227) Other Financing Sources (Uses): Transfers in - - 148,183 148,183 Transfers out (53,500) (53,500) (60,338) (6,838) Total Other Financing Sources (Uses)(53,500) (53,500) 87,845 141,345 NET CHANGE IN FUND BALANCE 211,571$ (23,429)$ (454,311) (430,882)$ FUND BALANCE: Beginning of Year 2,133,632 End of Year 1,679,321$ City of Gilroy Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Community Development Block Grant Special Revenue Fund Budgeted Amounts For the Year Ended June 30, 2021 131 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Revenues: Investment income 5$ 5$ -$ (5)$ Total revenues 5 5 - (5) Net Change in Fund Balances 5$ 5$ - (5)$ Fund balances: Beginning of year 230 End of year 230$ City of Gilroy Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Rehabilitation Loans Special Revenue Fund Budgeted Amounts For the Year Ended June 30, 2021 132 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Revenues: Investment income 31,441$ 31,441$ 8,572$ (22,869)$ Miscellaneous 55,000 55,000 270,122 215,122 Total revenues 86,441 86,441 278,694 192,253 Expenditures: Current: Community development 150,883 150,883 524,084 (373,201) Total expenditures 150,883 150,883 524,084 (373,201) Revenues over (under) expenditures (64,442) (64,442) (245,390) (180,948) Other financing sources (uses): Transfers in - - 18,664 18,664 Total other financing sources (uses)- - 18,664 18,664 Net Change in Fund Balances (64,442)$ (64,442)$ (226,726) (162,284)$ Fund balances: Beginning of year 2,939,114 End of year 2,712,388$ City of Gilroy Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Housing Trust Fund Special Revenue Fund Budgeted Amounts For the Year Ended June 30, 2021 133 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Revenues: Taxes 380,000$ 380,000$ 468,109$ 88,109$ Investment income 16,855 16,855 5,942 (10,913) Total revenues 396,855 396,855 474,051 77,196 Expenditures: Current: Public works 369,477 371,091 346,346 24,745 Total expenditures 369,477 371,091 346,346 24,745 Net Change in Fund Balances 27,378$ 25,764$ 127,705 101,941$ Fund balances: Beginning of year 1,235,168 End of year 1,362,873$ Budgeted Amounts City of Gilroy Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Community Facilities District Special Revenue Fund For the Year Ended June 30, 2021 134 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Revenues: Intergovernmental 1,000,804$ 1,000,804$ 2,052,798$ 1,051,994$ Investment income - - 7,135 7,135 Total revenues 1,000,804 1,000,804 2,059,933 1,059,129 Expenditures: Current: Public works 1,000,804 1,000,804 22,633 978,171 Total expenditures 1,000,804 1,000,804 22,633 978,171 Net Change in Fund Balances -$ -$ 2,037,300 2,037,300$ Fund balances: Beginning of year 3,836 End of year 2,041,136$ Budgeted Amounts City of Gilroy Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Measure B Special Revenue Fund For the Year Ended June 30, 2021 135 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Revenues: Intergovernmental 320,000$ 320,000$ 366,285$ 46,285$ Investment income 37,126 37,126 6,568 (30,558) Total revenues 357,126 357,126 372,853 15,727 Expenditures: Current: Public works 20,000 450,700 171,331 279,369 Capital outlay 235,100 849,650 651,470 198,180 Total expenditures 255,100 1,300,350 822,801 477,549 Net Change in Fund Balances 102,026$ (943,224)$ (449,948) 493,276$ Fund balances: Beginning of year 1,135,436 End of year 685,488$ City of Gilroy Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Vehicle License Fee Special Revenue Fund Budgeted Amounts For the Year Ended June 30, 2021 136 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Revenues: Investment income 7,634 7,634 2,013 (5,621) Net Change in Fund Balances 7,634$ 7,634$ 2,013 (5,621)$ Fund balances: Beginning of year 405,525 End of year 407,538$ City of Gilroy Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Los Arroyos Fund Special Revenue Fund Budgeted Amounts For the Year Ended June 30, 2021 137 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Revenues: Intergovernmental -$ -$ 45,906$ 45,906$ Investment income 2,220 2,220 1,206 (1,014) Miscellaneous - - 77,118 77,118 Total revenues 2,220 2,220 124,230 122,010 Net Change in Fund Balances 2,220$ 2,220$ 124,230 122,010$ Fund balances: Beginning of year 170,013 End of year 294,243$ City of Gilroy Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual CalHome Funds Special Revenue Fund Budgeted Amounts For the Year Ended June 30, 2021 138 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Revenues: Investment income 34,815$ 34,815$ 31,445$ (3,370)$ Miscellaneous - - 113,900 113,900 Total revenues 34,815 34,815 145,345 110,530 Expenditures: Capital outlay - 307,270 236,816 70,454 Total expenditures - 307,270 236,816 70,454 Net Change in Fund Balances 34,815$ (272,455)$ (91,471) 180,984$ Fund balances: Beginning of year 5,368,008 End of year 5,276,537$ Budgeted Amounts City of Gilroy Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Capital Projects Fund For the Year Ended June 30, 2021 139 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Revenues: Investment income 276$ 276$ 173$ (103)$ Total revenues 276 276 173 (103) Net Change in Fund Balances 276$ 276$ 173 (103)$ Fund balances: Beginning of year 34,795 End of year 34,968$ Budgeted Amounts City of Gilroy Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual BANS 2009 Financing Capital Projects Fund For the Year Ended June 30, 2021 140 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Revenues: Charges for services 3,776,744$ 3,776,744$ 2,918,793$ (857,951)$ Investment income 302,924 302,924 63,221 (239,703) Total revenues 4,079,668 4,079,668 2,982,014 (1,097,654) Expenditures: Current: Public works 10,296 1,201,782 124,404 1,077,378 Capital outlay 594,000 1,928,355 2,061,922 (133,567) Total expenditures 604,296 3,130,137 2,186,326 943,811 Revenues over (under) expenditures 3,475,372 949,531 795,688 (153,843) Other financing sources (uses): Transfers in 48,769 48,769 48,769 - Total other financing sources (uses)48,769 48,769 48,769 - Net Change in Fund Balances 3,524,141$ 998,300$ 844,457 (153,843)$ Fund balances: Beginning of year 13,414,069 End of year 14,258,526$ Budgeted Amounts City of Gilroy Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Traffic Impact Capital Projects Fund For the Year Ended June 30, 2021 141 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Revenues: Charges for services 52,931$ 52,931$ 60,897$ 7,966$ Investment income 27,234 27,234 19,030 (8,204) Total revenues 80,165 80,165 79,927 (238) Expenditures: Current: Public works 155,155 362,509 48,787 313,722 Total expenditures 155,155 362,509 48,787 313,722 Revenues over (under) expenditures (74,990) (282,344) 31,140 313,484 Other financing sources (uses): Transfers in 68,831 68,831 1,196 (67,635) Total other financing sources (uses)68,831 68,831 1,196 (67,635) Net Change in Fund Balances (6,159)$ (213,513)$ 32,336 245,849$ Fund balances: Beginning of year 2,046,518 End of year 2,078,854$ Budgeted Amounts City of Gilroy Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Storm Drains Capital Projects Fund For the Year Ended June 30, 2021 142 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Revenues: Investment income 181$ 181$ 35$ (146)$ Other financing sources (uses): Transfers out - - (8,119) (8,119) Total other financing sources (uses)- - (8,119) (8,119) Net Change in Fund Balances 181$ 181$ (8,084) (8,265)$ Fund balances: Beginning of year 8,092 End of year 8$ Budgeted Amounts City of Gilroy Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Utility Undergrounding Capital Projects Fund For the Year Ended June 30, 2021 143 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Revenues: Charges for services 2,600$ 2,600$ 2,396$ (204)$ Investment income 3,032 3,032 681 (2,351) Total revenues 5,632 5,632 3,077 (2,555) Other financing sources (uses): Transfers in 27 27 27 - Total other financing sources (uses)27 27 27 - Net Change in Fund Balances 5,659$ 5,659$ 3,104 (2,555)$ Fund balances: Beginning of year 135,988 End of year 139,092$ Budgeted Amounts City of Gilroy Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Street Trees Development Capital Projects Fund For the Year Ended June 30, 2021 144 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Revenues: Charges for services 2,376,306$ 2,376,306$ 1,764,901$ (611,405)$ Investment income 321,166 321,166 80,738 (240,428) Total revenues 2,697,472 2,697,472 1,845,639 (851,833) Expenditures: Current: Public works 508,078 584,601 1,375,571 (790,970) Total expenditures 508,078 584,601 1,375,571 (790,970) Revenues over (under) expenditures 2,189,394 2,112,871 470,068 (1,642,803) Other financing sources (uses): Transfers in 352,847 352,847 28,351 (324,496) Transfers out (694,146) (694,146) (692,875) 1,271 Total other financing sources (uses)(341,299) (341,299) (664,524) (323,225) Net Change in Fund Balances 1,848,095$ 1,771,572$ (194,456) (1,966,028)$ Fund balances: Beginning of year 13,376,865 End of year 13,182,409$ Budgeted Amounts City of Gilroy Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Sewer Development Capital Projects Fund For the Year Ended June 30, 2021 145 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Revenues: Charges for services 608,015$ 608,015$ 464,810$ (143,205)$ Investment income 102,996 102,996 23,833 (79,163) Total revenues 711,011 711,011 488,643 (222,368) Expenditures: Current: Public works 2,902,219 4,467,920 48,709 4,419,211 Total expenditures 2,902,219 4,467,920 48,709 4,419,211 Revenues over (under) expenditures (2,191,208) (3,756,909) 439,934 4,196,843 Other financing sources (uses): Transfers in 5,893 5,893 5,893 - Total other financing sources (uses)5,893 5,893 5,893 - Net Change in Fund Balances (2,185,315)$ (3,751,016)$ 445,827 4,196,843$ Fund balances: Beginning of year 4,656,240 End of year 5,102,067$ Budgeted Amounts City of Gilroy Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Water Development Capital Projects Fund For the Year Ended June 30, 2021 146 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Revenues: Investment income 3$ 3$ -$ (3)$ Total revenues 3 3 - (3) Net Change in Fund Balances 3$ 3$ - (3)$ Fund balances: Beginning of year (54) End of year (54)$ Budgeted Amounts City of Gilroy Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Bank Interest Capital Projects Fund For the Year Ended June 30, 2021 147 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Revenues: Investment income 89,485$ 89,485$ 29,303$ (60,182)$ Total revenues 89,485 89,485 29,303 (60,182) Net Change in Fund Balances 89,485$ 89,485$ 29,303 (60,182)$ Fund balances: Beginning of year 5,229,657 End of year 5,258,960$ Budgeted Amounts City of Gilroy Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Gilroy Community Library Capital Projects Fund For the Year Ended June 30, 2021 148 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Revenues: Investment income 62,500$ 62,500$ 20,224$ (42,276)$ Total revenues 62,500 62,500 20,224 (42,276) Expenditures: Current: General government 5,500 5,500 6,914 (1,414) Debt service: Interest and fiscal charges 810,706 810,707 463,382 347,325 Total expenditures 816,206 816,207 470,296 345,911 Revenues over (under) expenditures (753,706) (753,707) (450,072) 303,635 Other financing sources (uses): Payment to refunded bond escrow (930,000) (930,000) (17,555,000) (16,625,000) Transfers in 1,746,206 1,746,206 17,969,653 16,223,447 Transfers out - - (1,892,247) (1,892,247) Total other financing sources (uses)816,206 816,206 (1,477,594) (2,293,800) Net Change in Fund Balances 62,500$ 62,499$ (1,927,666) (1,990,165)$ Fund balances: Beginning of year 1,927,731 End of year 65$ Budgeted Amounts City of Gilroy Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Refunding Lease 2010 Debt Service Fund For the Year Ended June 30, 2021 149 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Revenues: Investment income -$ -$ 787$ 787$ Total revenues - - 787 787 Expenditures: Current: General government 8,500 8,500 5,707 2,793 Debt service: Principal retirement 945,000 945,000 945,000 - Interest and fiscal charges 891,669 891,669 891,669 - Total expenditures 1,845,169 1,845,169 1,842,376 2,793 Revenues over (under) expenditures (1,845,169) (1,845,169) (1,841,589) 3,580 Other financing sources (uses): Transfers in 1,845,169 1,845,169 1,845,169 - Total other financing sources (uses)1,845,169 1,845,169 1,845,169 - Net Change in Fund Balances -$ -$ 3,580 3,580$ Fund balances: Beginning of year 1,003,541 End of year 1,007,121$ Budgeted Amounts City of Gilroy Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 2013 Refunding Bond Debt Service Fund For the Year Ended June 30, 2021 150 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Revenues: Taxes 2,110,683$ 2,110,683$ 1,937,065$ (173,618)$ Investment income 27,179 27,179 3,299 (23,880) Total revenues 2,137,862 2,137,862 1,940,364 (197,498) Expenditures: Current: General government 5,200 5,200 6,680 (1,480) Debt service: Principal retirement 890,000 890,000 990,810 (100,810) Interest and fiscal charges 1,215,483 1,215,483 843,675 371,808 Total expenditures 2,110,683 2,110,683 1,841,165 269,518 Net Change in Fund Balances 27,179$ 27,179$ 99,199 72,020$ Fund balances: Beginning of year 1,138,516 End of year 1,237,715$ Budgeted Amounts City of Gilroy Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Gilroy Community Library Debt Service Fund For the Year Ended June 30, 2021 151 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Revenues: Investment income 822$ 822$ 159$ (663)$ Total revenues 822 822 159 (663) Expenditures: Debt service: Principal retirement 91,516 91,515 91,515 - Interest and fiscal charges 8,347 8,347 8,347 - Total expenditures 99,863 99,862 99,862 - Revenues over (under) expenditures (99,041) (99,040) (99,703) (663) Other financing sources (uses): Transfers in 99,863 99,863 99,863 - Total other financing sources (uses)99,863 99,863 99,863 - Net Change in Fund Balances 822$ 823$ 160 (663)$ Fund balances: Beginning of year 19,873 End of year 20,033$ Budgeted Amounts City of Gilroy Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual CA Energy Commission Loan Debt Service Fund For the Year Ended June 30, 2021 152 General Liability -This fund is used to account for all expenses relating to the City’s general liability insurance. The costs are recovered through an annual “user fee” which is charged to various funds. INTERNAL SERVICE FUNDS These funds account for goods or services provided to other departments of the City where the intent of the City is that the costs of these goods or services are to be recovered through interdepartmental charges at the time that the goods are delivered or the services rendered to those departments. Fleet Services -This fund is used to account for the operations required to maintain the City’s vehicles. The costs are recovered through an annual “user fee” which is charged to all departments/funds that have vehicle use. This fund also provides funding for replacement of all the City’s vehicles on an “as needed” basis. Equipment Outlay -This fund is used to allocate resources intended for the purchase of General Fund equipment costing more than $1,000. Workers’ Compensation - This fund is used to account for all expenses relating to workers’ compensation (i.e., injury claims, insurance premiums, etc.). The costs are recovered through an annual “user fee” which is charged to all departments/funds that have employees. Facility Services -This fund is used to account for all expenses relating to the operation and maintenance of City facilities. The costs are recovered through an annual “user fee” which is charged to all departments/funds that have facilities. Information Technologies -This fund is used to account for all expenses relating to computer hardware, software, maintenance, capital purchasing and other service charges. The costs are recovered through an annual “user fee” which is charged to all departments/funds that have computer equipment. Fringe Benefits -This fund is used for City paid benefits which are charged. Examples include medical, dental, disability, unemployment, life insurance and retirement including PERS and PARS. These benefit costs are allocated to the funds based on budget for three quarters and then reconciled to actual in the fourth quarter. 153 Fleet Equipment Workers' General Services Outlay Compensation Liability ASSETS Current assets: Cash and investments 3,694,735$ 2,500,756$ 3,742,855$ 2,960,256$ Cash and investments with fiscal agent - - - - Accounts receivable - - - - Inventory 43,575 - - - Prepaid items - - - - Total current assets 3,738,310 2,500,756 3,742,855 2,960,256 Noncurrent assets: Interfund loans receivable 2,989,892 901,150 - - Capital assets: Nondepreciable 7,999 4,404 - - Depreciable, net 3,932,213 482,476 - - Total capital assets 3,940,212 486,880 - - Total noncurrent assets 6,930,104 1,388,030 - - Total assets 10,668,414 3,888,786 3,742,855 2,960,256 Current Liabilities: Accounts payable 208,520 41,713 - 43,912 Accrued liabilities 27,746 732 - 386 Compensated absences, current portion 1,800 - - - Claims payable, current portion - - 970,000 470,000 Total current liabilities 238,066 42,445 970,000 514,298 Noncurrent liabilities: Compensated absences 16,563 - - - Claims payable - - 2,622,854 2,295,958 Total noncurrent liabilities 16,563 - 2,622,854 2,295,958 Total liabilities 254,629 42,445 3,592,854 2,810,256 NET POSITION: Investment in capital assets 3,940,212 486,880 - - Unrestricted 6,473,573 3,359,461 150,001 150,000 Total net position 10,413,785$ 3,846,341$ 150,001$ 150,000$ (Continued) City of Gilroy Combining Statement of Net Position Internal Service Funds June 30, 2021 LIABILITIES 154 Facility Information Fringe Services Technologies Benefits Total ASSETS Current assets: Cash and investments 1,943,261$ 4,633,048 458,346$ 19,933,257$ Cash and investments with fiscal agent - - 2,000,000 2,000,000 Accounts receivable 17,252 - - 17,252 Inventory - - - 43,575 Prepaid items - 12,084 - 12,084 Total current assets 1,960,513 4,645,132 2,458,346 22,006,168 Noncurrent assets: Interfund loans receivable - - - 3,891,042 Capital assets: Nondepreciable - 1,746,423 - 1,758,826 Depreciable, net - 214,202 - 4,628,891 Total capital assets - 1,960,625 - 6,387,717 Total noncurrent assets - 1,960,625 - 10,278,759 Total assets 1,960,513 6,605,757 2,458,346 32,284,927 Current Liabilities: Accounts payable 116,616 369,109 2,959 782,829 Accrued liabilities 56,446 39,682 459,083 584,075 Compensated absences, current portion 3,400 3,900 - 9,100 Claims payable, current portion - - - 1,440,000 Total current liabilities 176,462 412,691 462,042 2,816,004 Noncurrent liabilities: Compensated absences 31,001 34,820 - 82,384 Claims payable - - - 4,918,812 Total noncurrent liabilities 31,001 34,820 - 5,001,196 Total liabilities 207,463 447,511 462,042 7,817,200 NET POSITION: Investment in capital assets - 1,960,625 - 6,387,717 Unrestricted 1,753,050 4,197,621 1,996,304 18,080,010 TOTAL NET POSITION 1,753,050$ 6,158,246$ 1,996,304$ 24,467,727$ (Concluded) City of Gilroy Combining Statement of Net Position (Continued) Internal Service Funds June 30, 2021 LIABILITIES 155 Fleet Equipment Workers' General Services Outlay Compensation Liability OPERATING REVENUES: Charges for services 1,930,538$ 125,923$ 1,292,484$ 1,264,785$ Miscellaneous - - - 1,078,386 Total operating revenues 1,930,538 125,923 1,292,484 2,343,171 OPERATING EXPENSES: Current: Operations 1,607,004 209,285 - - Depreciation 506,335 108,833 - - Administration - - 196,038 86,216 Claims and judgments - - 1,397,737 2,380,120 Insurance premiums - - 276,239 1,187,706 Total operating expenses 2,113,339 318,118 1,870,014 3,654,042 OPERATING INCOME (LOSS)(182,801) (192,195) (577,530) (1,310,871) NONOPERATING REVENUES: Investment income 59,389 25,118 17,073 9,136 Total nonoperating revenues 59,389 25,118 17,073 9,136 INCOME (LOSS) BEFORE TRANSFERS (123,412) (167,077) (560,457) (1,301,735) TRANSFERS: Transfers in 5,000 - - - Total transfers 5,000 - - - CHANGES IN NET POSITION (118,412) (167,077) (560,457) (1,301,735) NET POSITION: Beginning of year 10,532,197 4,013,418 710,458 1,451,735 End of year 10,413,785$ 3,846,341$ 150,001$ 150,000$ (Continued) Internal Service Funds For the Year Ended June 30, 2021 City of Gilroy Combining Statement of Revenues, Expenses, and Changes in Net Position 156 Facility Information Fringe Services Technologies Benefits Total OPERATING REVENUES: Charges for services 2,487,387$ 2,901,398$ 16,580,827$ 26,583,342$ Miscellaneous 546,628 3,600 - 1,628,614 Total operating revenues 3,034,015 2,904,998 16,580,827 28,211,956 OPERATING EXPENSES: Current: Operations 2,806,186 2,973,302 16,584,733 24,180,510 Depreciation - 92,350 - 707,518 Administration 745 - - 282,999 Claims and judgments - - - 3,777,857 Insurance premiums - - - 1,463,945 Total operating expenses 2,806,931 3,065,652 16,584,733 30,412,829 OPERATING INCOME (LOSS)227,084 (160,654) (3,906) (2,200,873) NONOPERATING REVENUES: Investment income 7,916 25,990 - 144,622 Total nonoperating revenues 7,916 25,990 - 144,622 INCOME (LOSS) BEFORE TRANSFERS 235,000 (134,664) (3,906) (2,056,251) TRANSFERS: Transfers in - 1,584 - 6,584 Total transfers - 1,584 - 6,584 CHANGES IN NET POSITION 235,000 (133,080) (3,906) (2,049,667) NET POSITION: Beginning of year 1,518,050 6,291,326 2,000,210 26,517,394 End of year 1,753,050$ 6,158,246$ 1,996,304$ 24,467,727$ (Concluded) City of Gilroy Combining Statement of Revenues, Expenses, and Changes in Net Position (Continued) For the Year Ended June 30, 2021 Internal Service Funds 157 Fleet Equipment Workers' General Services Outlay Compensation Liability CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers and users 1,930,538$ 125,923$ 1,292,484$ 2,343,171$ Cash paid to suppliers for goods and services (1,110,506) (206,735) (196,807) (62,151) Cash paid to employees for services (503,175) 732 - (24,190) Cash paid for insurance claims - - (1,013,518) (1,491,917) Net cash provided by (used in) operating activities 316,857 (80,080) 82,159 764,913 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Cash received from other funds 235,872 116,617 - - Net cash provided by noncapital financing activities 235,872 116,617 - - CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition of capital assets (275,777) (63,790) - - Net cash (used in) capital and related financing activities (275,777) (63,790) - - CASH FLOWS FROM INVESTING ACTIVITIES: Interest received 59,389 25,118 17,073 9,136 Net cash provided by investing activities 59,389 25,118 17,073 9,136 Net change in cash and cash equivalents 336,341 (2,135) 99,232 774,049 RECONCILIATION OF CASH AND CASH EQUIVALENTS TO STATEMENTOF NET POSITION: Beginning of year 3,358,394 2,502,891 3,643,623 2,186,207 End of year 3,694,735$ 2,500,756$ 3,742,855$ 2,960,256$ CASH AND CASH EQUIVALENTS: Cash and investments 3,694,735$ 2,500,756$ 3,742,855$ 2,960,256$ Cash and investments with fiscal agent - - - - Total cash and cash equivalents 3,694,735$ 2,500,756$ 3,742,855$ 2,960,256$ Reconciliation of Operating Income (Loss) to to Net Cash Provided by (used in) Operating Activities: Operating income (loss) (182,801)$ (192,195)$ (577,530)$ (1,310,871)$ Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation 506,335 108,833 - - Changes in assets and liabilities: (Increase)/decrease in accounts receivables - - - - (Increase)/decrease in inventory (4,602) - - - (Increase)/decrease in prepaid items - - - - Increase/(decrease) in accounts payable 70,454 2,550 (33) 24,065 Increase/(decrease) in accrued liabilities (29,379) 732 (736) (24,190) Increase/(decrease) in compensated absences (43,150) - - - Increase/(decrease) in claims payable - - 660,458 2,075,909 Net cash provided by (used in) operating activities 316,857$ (80,080)$ 82,159$ 764,913$ (continued) City of Gilroy Combining Statement of Cash Flows Internal Service Funds For the Year Ended June 30, 2021 158 Facility Information Fringe Services Technologies Benefits Total CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers and users 3,049,963$ 2,904,998$ 16,580,827$ 28,227,904$ Cash paid to suppliers for goods and services (2,234,187) (2,114,556) (16,657,538) (22,582,480) Cash paid to employees for services (677,517) (660,565) - (1,864,715) Cash paid for insurance claims - - - (2,505,435) Net cash provided by (used in) operating activities 138,259 129,877 (76,711) 1,275,274 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Cash received from other funds - 1,584 - 354,073 Net cash provided by noncapital financing activities - 1,584 - 354,073 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition of capital assets - (781,608) - (1,121,175) Net cash (used in) capital and related financing activities - (781,608) - (1,121,175) CASH FLOWS FROM INVESTING ACTIVITIES: Interest received 7,916 25,990 - 144,622 Net cash provided by investing activities 7,916 25,990 - 144,622 Net change in cash and cash equivalents 146,175 (624,157) (76,711) 652,794 RECONCILIATION OF CASH AND CASH EQUIVALENTS TO STATEMENTOF NET POSITION: Beginning of year 1,797,086 5,257,205 2,535,057 21,280,463 End of year 1,943,261$ 4,633,048$ 2,458,346$ 21,933,257$ CASH AND CASH EQUIVALENTS: Cash and investments 1,943,261$ 4,633,048$ 458,346$ 19,933,257$ Cash and investments with fiscal agent - - 2,000,000 2,000,000 Total cash and cash equivalents 1,943,261$ 4,633,048$ 2,458,346$ 21,933,257$ Reconciliation of Operating Income (Loss) to to Net Cash Provided by (used in) Operating Activities: Operating income (loss) 227,084$ (160,654)$ (3,906)$ (2,200,873)$ Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation - 92,350 - 707,518 Changes in assets and liabilities: (Increase)/decrease in accounts receivables 15,948 - - 15,948 (Increase)/decrease in inventory - - - (4,602) (Increase)/decrease in prepaid items - 80,160 - 80,160 Increase/(decrease) in accounts payable (107,803) 133,173 (622) 121,784 Increase/(decrease) in accrued liabilities (189) (26,568) (72,183) (152,513) Increase/(decrease) in compensated absences 3,219 11,416 - (28,515) Increase/(decrease) in claims payable - - - 2,736,367 Net cash provided by (used in) operating activities 138,259$ 129,877$ (76,711)$ 1,275,274$ City of Gilroy Combining Statement of Cash Flows (Continued) Internal Service Funds For the Year Ended June 30, 2021 159 This page intentionally left blank. 160 These funds account for assets held by the City on behalf of other organizations. Fiduciary Funds Senior Advisory Board - This fund is used to account for revenues that come from fundraising and donations. The funds are used to buy equipment for the Senior Center. Highway 152 Series 2002 - This fund is used to account for special assessments collected and pay the bonded indebtedness for the Highway 152 Series 2002 improvements. Highway 152 Series 2006 - This fund is used to account for special assessments collected and pay the bonded indebtedness for the Highway 152 Series 2006 improvements. Highway 152 Series 2018 - This fund is used to account for special assessments collected and pay the bonded indebtedness for the Highway 152 Series 2018 Bonds. Custodial Funds 161 Senior Advisory Highway 152 Highway 152 Highway 152 Board Series 2002 Series 2006 Series 2018 Assets: Cash and investments 8,386$ -$ -$ 808,042$ Cash and investments with fiscal agent - - - 290,613 Total Assets 8,386 - - 1,098,655 Net Position: Restricted for: Individuals, organizations, and other governments 8,386 - - 1,098,655 Total Net Position 8,386$ -$ -$ 1,098,655$ (Continued) Custodial Funds City of Gilroy Combining Statement of Fiduciary Net Position Fiduciary Funds June 30, 2021 162 Total Assets: Cash and investments 816,428$ Cash and investments with fiscal agent 290,613 Total Assets 1,107,041 Net Position: Restricted for: Individuals, organizations, and other governments 1,107,041 Total Net Position 1,107,041$ (Concluded) City of Gilroy Combining Statement of Fiduciary Net Position (Continued) Fiduciary Funds June 30, 2021 163 Senior Advisory Highway 152 Highway 152 Highway 152 Board Series 2002 Series 2006 Series 2018 REVENUES: Taxes -$ -$ -$ 920,975$ Transfer from other custodial fund - - - 1,253 Investment income 41 - - 954 Total additions 41 - - 923,182 EXPENDITURES: General administration - - - 27,042 Transfer to other custodial fund - 544 709 - Payments on conduit bonds - principal - - - 651,251 Payments on conduit bonds - interest - - - 228,952 Total deductions - 544 709 907,245 CHANGE IN NET POSITION 41 (544) (709) 15,937 NET POSITION: Beginning of year, as restated 8,345 544 709 1,082,718 End of year 8,386$ -$ -$ 1,098,655$ (Continued) June 30, 2021 Custodial Funds City of Gilroy Combining Statement of Changes in Fiduciary Net Position Fiduciary Funds 164 Total REVENUES: Taxes 920,975$ Transfer from other custodial fund 1,253 Investment income 995 Total additions 923,223 EXPENDITURES: General administration 27,042 Transfer to other custodial fund 1,253 Payments on conduit bonds - principal 651,251 Payments on conduit bonds - interest 228,952 Total deductions 908,498 CHANGE IN NET POSITION 14,725 NET POSITION: Beginning of year, as restated 1,092,316 End of year 1,107,041$ (Concluded) June 30, 2021 City of Gilroy Combining Statement of Changes in Fiduciary Net Position (Continued) Fiduciary Funds 165 This page intentionally left blank. 166 STATISTICAL SECTION Contents Page Financial Trends 170 - 178 Revenue Capacity 180 - 189 Debt Capacity 190 - 197 Demographic and Economic Information 198 - 199 Operating Information 201 - 205 STATISTICAL SECTION (Unaudited) This part of the City of Gilroy's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City's overall financial health. These tables contain trend information to help the reader understand how the City's financial performance and well-being have changed over time. Sources: Unless otherwise noted, the information in these tables is derived from the comprehensive annual financial reports for the relevant year. These tables contain information to help the reader assess the City's most significant local revenue source, the property tax. These tables present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future. These tables offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place. These tables contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the City provides and the activities it performs. 169 2012 2013 2014 2015 2016 Governmental Activities: Net investment in capital assets 180,031,582$ 170,944,637$ 162,950,296$ 167,625,947.00$ 159,684,128$ Restricted 19,257,961 19,616,322 24,277,233 22,320,085.00 35,564,991 Unrestricted 25,031,844 26,414,676 28,892,199 (26,524,001) (25,032,197) Total governmental activities net position 224,321,387 216,975,635 216,119,728 163,422,031 170,216,922 Business-type Activities: Net investment in capital assets 93,390,622 91,165,074 88,728,174 90,335,349 90,917,108 Restricted - - - - - UUnrestricted 79,652,868 82,012,944 85,736,094 84,832,390 88,668,400 Total business-type activities net position 173,043,490 173,178,018 174,464,268 175,167,739 179,585,508 Primary Government: Net investment in capital assets 273,422,204 262,109,711 251,678,470 257,961,296 250,601,236 Restricted 19,257,961 19,616,322 24,277,233 22,320,085 35,564,991 UUnrestricted 104,684,712 108,427,620 114,628,293 58,308,389 63,636,203 Total primary government net position 397,364,877$ 390,153,653$ 390,583,996$ 338,589,770$ 349,802,430$ Fiscal Year City of Gilroy Net Position By Component Last Ten Fiscal Years (accrual basis of accounting) 170 2017 2018 2019 2020 2021 Governmental Activities: Net investment in capital assets 154,863,285$ 159,069,886$ 156,750,373$ 151,904,792$ 149,891,568$ Restricted 41,636,040 48,731,281 49,688,804 57,137,761 57,570,568 Unrestricted (25,229,815) (36,193,491) (37,759,850) (42,661,193) (42,545,831) Total governmental activities net position 171,269,510 171,607,676 168,679,327 166,381,360 164,916,305 Business-type Activities: Net investment in capital assets 88,183,287 87,336,604 91,134,932 83,550,353 83,119,598 Restricted - - - UUnrestricted 93,612,020 98,375,675 100,053,259 100,496,635 99,198,302 Total business-type activities net position 181,795,307 185,712,279 191,188,191 184,046,988 182,317,900 Primary Government: Net investment in capital assets 243,046,572 246,406,490 247,885,305 235,455,145 233,011,166 Special revenue 41,636,040 48,731,281 49,688,804 57,137,761 57,570,568 UUnrestricted 68,382,205 62,182,184 62,293,409 57,835,442 56,652,471 Total primary government net position 353,064,817$ 357,319,955$ 359,867,518$ 350,428,348$ 347,234,205$ Fiscal Year City of Gilroy Net Position By Component (Continued) Last Ten Fiscal Years (accrual basis of accounting) 171 2012 2013 2014 2015 2016 Expenses: Governmental activities: General government 11,895,682$ 3,732,098$ 3,795,033$ 3,619,582$ 3,900,226$ Public safety 5,995,050 28,747,964 29,696,344 30,273,444 31,020,245 Community development 14,271,031 15,485,705 14,824,460 15,901,215 21,413,283 Community services 180,845 7,686,862 7,726,938 7,807,765 8,217,318 Recreation Services - - - - - Interest and other charges 16,654,681 3,226,789 3,744,396 3,406,855 3,327,992 Total governmental activities expenses 48,997,289 58,879,418 59,787,171 61,008,861 67,879,064 Business-type activities Sewer 11,575,152 10,206,770 9,929,622 9,806,990 12,298,662 Water 11,428,662 8,081,041 8,642,660 8,329,710 8,370,320 Total business-type activities expenses 23,003,814 18,287,811 18,572,282 18,136,700 20,668,982 Total primary government expenses 72,001,103$ 77,167,229$ 78,359,453$ 79,145,561$ 88,548,046$ Program revenues: Governmental activities: Charges for services: General government 7,623$ 1,119,217$ 1,415,106$ 2,096,137$ 1,651,713$ Public safety 1,055,373 1,004,530 897,059 1,030,410 1,146,593 Community development 767,444 3,866,305 5,434,764 7,385,391 6,145,791 Community services 66,788 757,445 810,503 886,988 978,780 Recreation services - - - - - Operating grants and contributions 8,711,464 14,091,083 15,057,119 13,109,933 22,838,535 Capital grants and contributions - 3,207,487 3,157,642 8,999,636 3,820,892 Total governmental activities program revenues 10,608,692 24,046,067 26,772,193 33,508,495 36,582,304 Business-type activities: Charges for services: Sewer 7,828,759 8,441,024 10,359,334 - 11,984,798 Water 4,556,861 8,179,888 8,640,784 - 7,330,300 Capital grants and contributions 95,360 1,410,773 179,707 - 5,086,464 Total business-type activities program revenues 12,480,980 18,031,685 19,179,825 - 24,401,562 Total primary government program revenues 23,089,672$ 42,077,752$ 45,952,018$ 33,508,495$ 60,983,866$ Net revenue (expense): Governmental activities (38,388,597)$ (34,833,351)$ (33,014,978)$ (27,500,366)$ (31,296,760)$ Business-type activities (10,522,834) (256,126) 607,543 (18,136,700) 3,732,580 Total primary government net expense (48,911,431)$ (35,089,477)$ (32,407,435)$ (45,637,066)$ (27,564,180)$ City of Gilroy Fiscal Year Changes in Net Position Last Ten Fiscal Years (accrual basis of accounting) 172 2017 2018 2019 2020 2021 Expenses: Governmental activities: General government 6,437,408$ 7,315,065$ 7,696,445$ 6,131,791$ 7,315,868$ Public safety 33,393,829 35,591,790 37,837,438 40,088,865 40,797,962 Community development 19,167,193 19,211,323 22,518,209 8,556,959 7,147,532 Public works 8,978,597 9,654,957 - 23,525,423 16,862,660 Recreation Services - - 9,526,627 - 1,779,121 Interest and other charges 3,256,733 3,147,606 3,226,849 2,431,588 2,081,420 Total governmental activities expenses 71,233,760 74,920,741 80,805,568 80,734,626 75,984,563 Business-type activities Sewer 12,060,236 11,538,388 14,044,716 14,668,434 15,820,944 Water 9,197,426 9,937,768 11,777,220 12,603,780 16,435,598 Total business-type activities expenses 21,257,662 21,476,156 25,821,936 27,272,214 32,256,542 Total primary government expenses 92,491,422$ 96,396,897$ 106,627,504$ 108,006,840$ 108,241,105$ Program revenues: Governmental activities: Charges for services: General government 3,087,335$ 3,280,977$ 3,726,486$ 3,550,758$ 2,815,647$ Public safety 1,439,418 959,277 1,234,017 1,188,951 1,242,281 Community development 5,207,571 6,430,321 6,624,477 3,909,360 4,185,811 Public works 986,582 977,834 - 715,299 3,593,959 Recreation services - - 1,009,235 - 223,154 Operating grants and contributions 15,860,767 19,389,757 13,146,274 14,247,635 16,482,904 Capital grants and contributions 5,438,560 10,319,300 6,538,076 1,931,458 2,000,357 Total governmental activities program revenues 32,020,233 41,357,466 32,278,565 25,543,461 30,544,113 Business-type activities: Charges for services: Sewer 12,833,030 12,961,285 12,904,657 12,872,189 12,702,398 Water 9,156,082 11,343,036 12,294,119 14,590,973 14,830,153 Capital grants and contributions 1,172,844 2,330,335 4,160,510 2,439,117 2,511,059 Total business-type activities program revenues 23,161,956 26,634,656 29,359,286 29,902,279 30,043,610 Total primary government program revenues 55,182,189$ 67,992,122$ 61,637,851$ 55,445,740$ 60,587,723$ Net revenue (expense): Governmental activities (39,213,527)$ (33,563,275)$ (48,527,003)$ (55,191,165)$ (45,440,450)$ Business-type activities 1,904,294 5,158,500 3,537,350 2,630,065 (2,212,932) Total primary government net expense (37,309,233)$ (28,404,775)$ (44,989,653)$ (52,561,100)$ (47,653,382)$ City of Gilroy Changes in Net Position (Continued) Last Ten Fiscal Years Fiscal Year (accrual basis of accounting) 173 2012 2013 2014 2015 2016 General revenues and other changes in net position: Governmental Activities: Taxes: Property taxes 8,907,492$ 9,462,337$ 9,728,458$ 10,862,568$ 11,468,510$ Sales tax 13,833,561 14,114,277 14,423,130 15,858,910 17,884,735 Transient occupancy taxes 998,743 1,092,486 1,234,798 1,501,837 1,676,691 Franchise tax 1,355,340 1,326,364 1,408,045 1,463,770 1,569,059 Other taxes 4,781,148 4,694,440 4,759,067 4,905,868 5,116,588 Investment income 922,309 350,105 630,095 619,139 647,057 State motor vehicle in lieu 25,739 26,670 22,072 21,479 21,385 Other 109,798 390,812 632,113 164,321 392,815 Transfers (647,847) (669,940) (678,707) (689,011) (685,189) Total governmental activities 30,286,283 30,787,551 32,159,071 34,708,881 38,091,651 Business-type activities: Investment and rental income 777,528 - - - - Other 600 - - - - Share of DCU net income (loss)(1,059,357) - - - - Transfers 647,847 669,940 678,707 689,011 685,189 Total business-type activities 366,618 669,940 678,707 689,011 685,189 Total primary government 30,652,901$ 31,457,491$ 32,837,778$ 35,397,892$ 38,776,840$ Changes in net position: Governmental activities 301,450$ (4,045,800)$ (855,907)$ 7,208,515$ 6,794,891$ Business-type activities 950,871 413,814 1,286,250 3,800,429 4,417,769 Total primary government 1,252,321$ (3,631,986)$ 430,343$ 11,008,944$ 11,212,660$ Net Position (Net Assets), Beginning 396,112,556$ 397,364,877$ 390,153,653$ 390,583,996$ 338,589,770$ Beginning Fund Balance Restatement (1)- (3,579,238) - (63,003,170) - Changes in Net Position (Net Assets) 1,252,321 (3,631,986) 430,343 11,008,944 11,212,660 Net Position (Net Assets), Ending 397,364,877$ 390,153,653$ 390,583,996$ 338,589,770$ 349,802,430$ (1)Net Position, as restated Fiscal Year City of Gilroy Changes in Net Position (Continued) Last Ten Fiscal Years (accrual basis of accounting) 174 2017 2018 2019 2020 2021 General revenues and other changes in net position: Governmental Activities: Taxes: Property taxes 12,278,553$ 13,161,002$ 14,476,481$ 15,595,639$ 17,016,855$ Sales tax 17,768,469 18,827,189 20,186,105 17,233,882 18,584,534 Transient occupancy taxes 1,709,332 1,722,355 1,771,882 1,237,812 1,105,300 Franchise tax 1,623,951 1,713,690 1,669,817 1,855,622 1,732,613 Other taxes 5,264,486 5,192,899 5,093,813 5,667,201 5,030,153 Investment income 900,622 1,190,732 2,567,147 2,039,471 502,770 State motor vehicle in lieu 24,715 29,444 26,695 - - Other 15,188 571,340 166,316 127,479 644,291 Transfers (305,505) 1,241,528 (640,347) (447,847) (641,121) Total governmental activities 39,279,811 43,650,179 45,317,909 43,309,259 43,975,395 Business-type activities: Investment and rental income - - 1,298,215 1,169,133 (157,277) Other - - - - (79,785) Share of DCU net income (loss)- - - (2,112,340) (1,982,829) Transfers 305,505 (1,241,528) 640,347 447,847 641,121 Total business-type activities 305,505 (1,241,528) 1,938,562 (495,360) (1,578,770) Total primary government 39,585,316$ 42,408,651$ 47,256,471$ 42,813,899$ 42,396,625$ Changes in net position: Governmental activities 66,284$ 10,086,904$ (3,209,094)$ (11,881,906)$ (1,465,055)$ Business-type activities 2,209,799 3,916,972 5,475,912 4,247,045 (1,729,088) Total primary government 2,276,083$ 14,003,876$ 2,266,818$ (7,634,861)$ (3,194,143)$ Net Position (Net Assets), Beginning 348,802,430$ 352,078,513$ 357,319,955$ 359,586,773$ 350,428,348 Beginning Fund Balance Restatement (1)- (8,762,454) - (1,523,564) - Changes in Net Position (Net Assets) 2,276,083 14,003,896 2,266,818 (7,634,861) (3,194,143) Net Position (Net Assets), Ending 351,078,513$ 357,319,955$ 359,586,773$ 350,428,348$ 347,234,205$ (1)Net Position, as restated Fiscal Year City of Gilroy Changes in Net Position (Continued) Last Ten Fiscal Years (accrual basis of accounting) 175 2012 2013 2014 2015 2016 General fund: Nonspendable 59,670$ 45,003$ 52,592$ 74,622$ 84,923$ Restricted - - - - - Assigned - - - - - Unassigned 25,423,199 23,038,183 22,291,553 21,316,940 22,202,316 Total general fund 25,482,869$ 23,083,186$ 22,344,145$ 21,391,562$ 22,287,239$ All other governmental funds: Nonspendable 9,766 5,454,973 9,265 9,265 8,670 Restricted 37,880,519 31,995,403 41,474,238 40,117,010 44,922,496 Assigned 525,601 226,654 576,889 544,284 2,827,521 Unassigned (12,379,723) (12,423,935) (11,866,882) (12,884,818) (7,883,587) Total all other governmental funds 26,036,163$ 25,253,095$ 30,193,510$ 27,785,741$ 39,875,100$ Fiscal Year City of Gilroy Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) 176 2017 2018 2019 2020 2021 General fund: Nonspendable 74,217$ 126,965$ 76,000$ 126,915$ 47,874$ Restricted - - - - - Assigned - - - - - Unassigned 24,354,609 25,475,105 27,683,870 14,731,555 19,585,369 Total general fund 24,428,826$ 25,602,070$ 27,759,870$ 14,858,470$ 19,633,243$ All other governmental funds: Nonspendable 9,470 25,570 1,000 706,754 706,754 Restricted 50,775,875 55,248,281 57,445,219 56,261,267 56,999,818 Assigned 1,588,907 1,448,954 1,483,818 5,368,008 5,276,537 Unassigned (5,761,804) (2,841,776) (4,206,362) (54) (4,712,875) Total all other governmental funds 46,612,448$ 53,881,029$ 54,723,675$ 62,335,975$ 58,270,234$ Fiscal Year City of Gilroy Fund Balances of Governmental Funds (Continued) Last Ten Fiscal Years (modified accrual basis of accounting) 177 2012 2013 2014 2015 2016 Revenues: Taxes 30,122,948$ 33,041,266$ 33,902,225$ 37,190,336$ 40,177,903$ Licenses and permits 2,000,283 2,071,569 2,088,024 2,847,912 3,720,755 Intergovernmental 6,413,621 5,258,266 5,235,608 3,260,688 4,291,272 Charges for services 14,688,796 13,944,828 17,081,714 17,396,590 24,960,535 Fines 425,265 251,313 226,220 281,580 266,163 Special assessments 2,133,413 - - - - Investment income (loss)898,495 385,744 697,612 600,960 608,641 Contribution from property owners - - - - - Miscellaneous 826,591 1,035,480 1,464,470 2,128,737 2,059,106 Total revenues 57,509,412 55,988,466 60,695,873 63,706,803 76,084,375 Expenditures: General government 3,287,262 3,793,066 4,073,708 4,025,604 4,532,241 Public safety 25,448,868 26,416,606 27,448,432 28,845,371 29,867,361 Community services 5,650,806 6,029,323 6,072,624 6,322,864 6,764,060 Community development 26,470,128 14,393,211 10,031,035 16,393,573 14,675,204 Debt service: Principal retirement 2,170,000 1,350,000 25,745,000 2,215,000 2,305,000 Interest 3,287,244 3,319,071 3,525,898 3,557,829 3,479,710 Bond issuance costs - - 275,515 2,582 - Total expenditures 66,314,308 55,301,277 77,172,212 61,362,823 61,623,576 Excess of revenues over (under) expenditures (8,804,896) 687,189 (16,476,339) 2,343,980 14,460,799 Other Financing Sources (Uses): Transfers in 5,496,446 3,746,485 3,574,115 4,318,330 6,803,782 Transfers out (7,576,735) (7,616,425) (7,154,454) (11,012,940) (8,521,471) Issuance of loan/notes - - - 959,229 241,926 Issuance of bonds - - 23,120,000 - - Payment to refunded bond escrow - - - - - Payment to bond excrow agent - - - - - Premium on bonds - - 1,138,052 - - Total other financing sources (uses)(2,080,289) (3,869,940) 20,677,713 (5,735,381) (1,475,763) Net Change in fund balances (10,885,185)$ (3,182,751)$ 4,201,374$ (3,391,401)$ 12,985,036$ Fund balances - June 30 134,465,357$ 131,282,606$ 135,483,980$ 132,092,579$ 12,985,036$ Debt service as a percentage of noncapital expenditures 8.34%9.57%38.74%9.55%9.53% (a) (a) Long-term debt was transferred to the Successor Agency on February 1, 2012. The Successor Agency is not considered a component unit for the City, thus the debt payments are disclosed in the Fiduciary Funds section of this report. Fiscal Year City of Gilroy Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) 178 2017 2018 2019 2020 2021 Revenues: Taxes 41,350,739$ 43,512,402$ 51,483,855$ 44,269,937$ 45,916,497$ Licenses and permits 2,713,733 2,751,137 3,487,338 1,776,651 2,278,304 Intergovernmental 3,748,000 4,047,728 3,913,484 5,473,529 6,612,274 Charges for services 18,973,863 22,820,605 11,501,828 13,951,822 17,484,867 Fines 293,899 208,305 239,873 282,535 231,688 Special assessments - - - - - Investment income (loss)762,671 1,084,408 1,247,543 1,884,149 358,452 Contribution from property owners - - - - - Miscellaneous 1,604,397 1,635,888 1,990,459 1,348,130 2,867,269 Total revenues 69,447,302 76,060,473 73,864,380 68,986,753 75,749,351 Expenditures: General government 4,906,824 5,103,946 5,760,831 6,361,042 5,931,022 Public safety 30,830,873 31,781,515 34,062,421 36,867,887 35,856,183 Public Works 7,231,274 7,723,166 7,831,193 7,897,645 7,231,722 Community development 11,052,313 14,993,509 15,421,483 19,143,243 5,523,912 Recreation services - - - - 1,702,666 Capital outlay - - - - 6,243,057 Debt service: Principal retirement 2,459,619 2,558,818 2,654,708 2,986,212 2,817,325 Interest 3,410,441 3,302,252 3,448,556 3,011,707 2,784,374 Bond issuance costs - - 112,903 - - Total expenditures 59,891,344 65,463,206 69,292,095 76,267,736 68,090,261 Excess of revenues over (under) expenditures 9,555,958 10,597,267 4,572,285 (7,280,983) 7,659,090 Other Financing Sources (Uses): Transfers in 4,233,745 4,503,781 4,236,075 8,937,984 24,306,099 Transfers out (4,910,768) (6,659,253) (5,876,422) (12,905,997) (24,953,804) Issuance of loan/notes - - - - - Issuance of bonds - - - 19,087,551 16,459,825 Payment to refunded bond escrow - - - (19,350,000) (17,555,000) Payment to bond escrow agent - - (8,565,000) - - Premium on bonds - - 8,633,538 - - Total other financing sources (uses)(677,023) (2,155,472) (1,571,809) (4,230,462) (1,742,880) Net Change in fund balances 8,878,935$ 8,441,795$ 3,000,476$ (11,511,445)$ 5,916,210$ Fund balances - June 30 8,878,935$ 8,441,795$ 3,000,476$ (11,511,445)$ 5,916,210$ Debt service as a percentage of noncapital expenditures 9.95%9.08%9.09%7.96%8.34% (modified accrual basis of accounting) Fiscal Year City of Gilroy Changes in Fund Balances of Governmental Funds (Continued) Last Ten Fiscal Years 179 CATEGORY 2012 2013 2014 2015 2016 Outlet Center $2,833,256 $2,845,863 $2,867,431 $2,899,778 $2,747,030 Newman Development 2,131,034 2,201,623 2,230,855 2,332,215 2,426,698 Regency Center 940,836 949,436 946,073 965,112 999,738 Downtown Core 224,977 271,227 296,354.00 316,595.00 356,687 General Retail 6,130,103 6,268,149 6,340,713 6,513,700 6,530,153 Auto Dealers 1,045,717 1,131,680 1,649,758 2,136,541 2,633,013 Service Stations 1,543,421 1,457,239 1,442,888 1,292,736 1,094,398 Transportation 2,589,138 2,588,919 3,092,646 3,429,277 3,727,411 Others 3,284,517 3,344,680 3,697,010 3,695,108 4,018,337 Allocation from State and County 1,829,803 1,912,529 1,292,761 2,220,825 3,608,834 TOTALS:$13,833,561 $14,114,277 $14,423,130 $15,858,910 $17,884,735 Population 50,081 51,505 52,413 53,000 55,170 Sales Tax Per Capita 276 274 275 299 324 City of Gilroy Sales Tax by Category Last Ten Fiscal Years Fiscal Year Source: MBIA MuniServices Company State of California, Department of Finance, Population Estimates for California Cities 0 50 100 150 200 250 300 350 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 0 5,000 10,000 15,000 20,000 25,000 Others State/County Gen. Retail Transportation Per Capita 180 CATEGORY 2017 2018 2019 2020 2021 Outlet Center $2,669,216 $2,571,713 $2,464,617 $1,739,806 $1,869,275 Newman Development 2,500,961 2,529,804 2,743,665 2,643,207 2,955,455 Regency Center 968,005 987,417 1,004,376 896,599 1,000,140 Downtown Core 398,344 385,497.00 505,600 472,427 512,427 General Retail 6,536,526 6,474,431 6,718,258 5,752,039 6,337,297 Auto Dealers 3,224,719 3,691,038 3,855,166 3,056,022 2,446,254 Service Stations 1,064,232 1,290,582 1,298,298 1,129,189 1,085,319 Transportation 4,288,951 4,981,620 5,153,464 4,185,211 3,531,573 Others 4,263,541 4,632,323 4,418,367 4,294,454 4,580,258 Allocation from State and County 2,679,451 2,152,877 3,896,016 3,002,179 3,867,949 TOTALS:$17,768,469 $18,241,251 $20,186,105 $17,233,883 $18,317,077 Population 55,936 55,615 55,928 57,084 59,920 Sales Tax Per Capita 318 328 361 302 306 City of Gilroy Sales Tax by Category (Continued) Last Ten Fiscal Years Fiscal Year Source: MBIA MuniServices Company State of California, Department of Finance, Population Estimates for California Cities 181 Agency 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 6.250% 6.500% 6.500% 6.500% 6.250% 6.000% 6.000% 6.000% 6.000% 6.000% 0.250% 0.250% 0.250% 0.250% 0.250% 0.250% 0.250% 0.250% 0.250% 0.250% 0.750% 0.750% 0.750% 0.750% 1.000% 1.000% 1.000% 1.000% 1.000% 1.000% - 0.125% 0.125% 0.125% 0.125% 0.125% 0.125% 0.125% 0.125% 0.125% -- 0.500% 0.500% 0.500% 0.500% 0.500% 0.500% 0.500% 0.500% 0.500% 0.500% 0.500% 0.500% 0.500% 0.500% 0.500% 0.500% 0.500% 0.500% 0.500% 0.500% - 0.125% 0.125% 0.125% 0.125% 0.125% 0.125% 0.125% 0.125% 0.125% -- 0.500% 0.500% 0.500% 0.500% 0.500% Total 8.250% 8.750% 8.750% 8.750% 8.750% 9.000% 9.000% 9.000% 9.000% 9.000% Source: California Department of Tax and Fee Administration FISCAL YEAR City of Gilroy Sales Tax Rates Last Ten Fiscal Years SCC Transit District SCC Valley Transportation Authority SCC VTA Bay Area Rapid Transit Silicon Valley Transportation Solutions Tax State of California Santa Clara County (SCC) Transportation Funds City of Gilroy SCC Retail Transactions and Use Tax SCC Transactions and Use Tax 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 10.00% 2013 2014 2015 2016 2017 2018 2019 2020 2021 Total Gilroy 182 Taxpayer Business Type Taxpayer Business Type Action Gypsum Supply West Bldg.Matls-Whsle Arco Am/Pm Mini Marts Service Stations Best Buy Stores Furniture/Appliance Best Buy Stores Furniture/Appliance Chevron Service Stations Service Stations Calvin Klein Apparel Stores Costco Wholesale Department Stores Chevron Service Stations Service Stations Cresco Equipment Rentals Heavy Industry Coach Stores Apparel Stores Digital Storm Miscellaneous Other Costco Wholesale Department Stores Gilroy Buick Gmc Auto Sales - New Gilroy Auto Outlet Auto Sales - New Gilroy Chevrolet Cadillac Auto Sales - New Gilroy Chevrolet Cadillac Auto Sales - New Gilroy Motorcycle Center Misc. Vehicle Sales Gilroy Gas & Mini-Mart Service Stations Gilroy Toyota Auto Sales - New Gilroy Toyota Auto Sales - New Happy Daze RVs Misc. Vehicle Sales Home Depot Bldg.Matls-Retail Home Depot Bldg.Matls-Retail Jn Abbott Distributor Energy Sales Lowe'S Home Centers Bldg.Matls-Retail Kohl'S Department Stores Department Stores Mcdonald'S Restaurants Restaurants Lowe'S Home Improvement Bldg.Matls-Retail Nike Factory Store Apparel Stores Nike Factory Store Apparel Stores Pape Machinery Heavy Industry Polo Ralph Lauren Apparel Stores Ross Stores Apparel Stores Rotten Robbie Service Stations Service Stations Rotten Robbie Service Stations Service Stations See-Grins Rv Misc. Vehicle Sales Safeway Stores Food Markets South County Chrysler Plymouth Auto Sales - New See Grins RVs Misc. Vehicle Sales South County Nissan Auto Sales - New Shell Service Stations Service Stations Target Stores Department Stores Target Stores Department Stores The Garlic Farm Travel Center Service Stations Tractor Supply Company Miscellaneous Retail Tv'S Gas & Foodmart Service Stations Union 76 Service Stations Service Stations Valero Service Stations Service Stations Wal Mart Stores Department Stores Wal Mart Stores Department Stores Source: MuniServices, LLC / Avenu Insights & Analytics City of Gilroy Principal Sales Tax Producers Last Fiscal Year and Nine Years Ago 2020-21 2011-12 183 Fiscal Year End Local Secured* Home Owner Exempt Valuation Net Local Secured Net Utility Net Unsecured Net Taxable Assessed Value Total Direct Tax Rate (1) Estimated Actual Taxable Value (2) Factor of Taxable Assessed Value (2) Assessed Value as a Percentage of Actual Value 2008-09 6,488,553,329 46,390,400 6,442,162,929 94,818,014 278,011,535 6,814,992,478 - - - 2009-10 5,859,438,604 46,207,000 5,813,231,604 82,118,014 265,276,407 6,160,626,025 - - - 2010-11 5,515,703,007 47,031,600 5,468,671,407 80,918,014 232,541,079 5,782,130,500 0.902963 - - - 2011-12 5,477,242,040 46,387,600 5,430,854,440 78,686,470 281,804,033 5,791,344,943 0.902963 - - - 2012-13 5,467,139,776 46,209,800 5,420,929,976 72,086,470 266,918,393 5,759,934,839 0.902963 - - - 2013-14 5,913,805,270 46,463,200 5,867,342,070 64,186,470 260,981,844 6,192,510,384 0.902963 - - - 2014-15 6,395,754,046 46,050,200 6,349,703,846 52,530,836 265,879,967 6,668,114,649 0.902963 - - - 2015-16 6,798,621,370 45,871,000 6,752,750,370 47,030,836 268,445,327 7,068,226,533 0.902963 - - - 2016-17 7,385,130,561 46,578,000 7,338,552,561 42,130,836 273,713,487 7,654,396,884 0.902963 - - - 2017-18 7,872,947,886 47,244,400 7,825,703,486 39,330,836 263,667,226 8,128,701,548 0.097037 10,250,699,087 1.261050 79.30% 2018-19 8,445,397,378 48,090,000 8,397,307,378 38,939,704 256,724,279 8,692,971,361 0.097037 11,893,042,148 1.368122 73.09% 2019-20 9,001,686,593 47,874,400 8,953,812,193 32,539,704 257,410,089 9,243,761,986 0.097037 16,306,012,109 1.764002 56.69% 2020-21 9,557,360,668 47,341,000 9,510,019,668 29,739,704 267,854,749 9,807,614,121 0.097037 11,688,408,441 1.191769 83.91% Source: Santa Clara County Assessor data, MuniServices, LLC / Avenu Insights & Analytics Source: 2016-17 and prior, previously published ACFR. *Local secured is net of other exemptions. 1.) Total direct tax rate is the city share of the 1% Proposition 13 tax only for TRA 02-000. 2.) Estimated Actual Value is derived from a series of calculations comparing median assessed values from 1940 to current median sale prices. Based on these calculations a multiplier value was extrapolated and applied to current assessed values. City of Gilroy Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years (modified accrual basis of accounting) 184 Category 2018-19 2019-20 2020-21 Residential 6,846,995,669 7,292,373,081 7,766,498,649 Commercial 899,654,270 931,059,983 989,793,738 Industrial 479,091,993 538,635,466 667,191,707 Vacant - 216,844,260 163,403,099 Institutional 112,041,055 111,348,784 65,615,240 Professional 17,961,578 108,709,436 110,337,229 Agriculture 47,135,427 52,895,647 38,226,087 Unitary 38,939,704 32,539,704 29,739,704 Transportation 193,663,876 28,585,319 28,569,765 Public 104,675,187 23,763,391 31,201,356 Recreational 22,525,565 23,001,970 22,973,251 Social 18,604,008 19,463,964 19,888,529 Forestry 6,830,161 6,966,865 7,106,317 Unknown 2,149,694 - - Gross Secured Value 8,790,268,187 9,386,187,870 9,940,544,671 Unsecured Value 260,824,323 261,877,511 272,030,637 Less Exemptions 358,121,149 404,303,395 404,961,187 Net Taxable Value 8,692,971,361 9,243,761,986 9,807,614,121 Source: Santa Clara County Assessor data, MuniServices, LLC / Avenu Insights & Analytics Use code categories are based on Santa Clara County Assessor's data City of Gilroy Assessed Value of Property by Use Code Last Three Fiscal Years 185 2011-12 2012-13 2013-14 2014-15 2015-16 Basic City and County Levy City Direct Rate 0.097037 0.097037 0.097037 0.097037 0.097037 All others 0.902963 0.902963 0.902963 0.902963 0.902963 1.000000 1.000000 1.000000 1.000000 1.000000 Override Assessments County Retire Levy 0.038800 0.038800 0.038800 0.038800 0.038800 County Library 0.002400 0.002400 0.002400 0.002400 0.002400 VMC 2008 0.004700 0.005100 0.003500 0.009100 0.008800 County Housing Bond 2016 0.000000 0.000000 0.000000 0.000000 0.000000 Gilroy City Bond 2008 0.036500 0.036500 0.034000 0.034000 0.029000 Gilroy Unified School 2002 0.054500 0.057100 0.058000 0.056600 0.052200 Gilroy Unified 11/2008 0.047900 0.047200 0.056400 0.059900 0.054900 Gilroy Unified 2016 0.000000 0.000000 0.000000 0.000000 0.000000 Gavilan Community College 04 0.021700 0.025700 0.024800 0.023900 0.022600 Gavilan Jt CCD 2018 0.000000 0.000000 0.000000 0.000000 0.000000 Lease Debt-Gilroy Unified 0.000000 0.000000 0.000000 0.000000 0.000000 Lease Debt-Gilroy Unified Priorye 0.000000 0.000000 0.000000 0.000000 0.000000 SCVWD-State Water Project 0.006300 0.006900 0.007000 0.006500 0.005700 0.212800 0.219700 0.224900 0.231200 0.214400 TOTAL TAX RATE 1.212800 1.219700 1.224900 1.231200 1.214400 Source: Santa Clara County Auditor data, MuniServices, LLC / Avenu Insights & Analytics Source: 2016-17 and prior: previously published ACFR This table shows rates for TRA 02-000. City of Gilroy Direct and Overlapping Property Tax Rates (Per $100 of Taxable Value) Last Ten Fiscal Years 186 2016-17 2017-18 2018-19 2019-20 2020-21 Basic City and County Levy City Direct Rate 0.097037 0.097037 0.097037 0.097037 0.097037 All others 0.902963 0.902963 0.902963 0.902963 0.902963 1.000000 1.000000 1.000000 1.000000 1.000000 Override Assessments . . County Retire Levy 0.038800 0.038800 0.038800 0.038800 0.038800 County Library 0.002400 0.002400 0.002400 0.002400 0.002400 VMC 2008 0.008600 0.008200 0.007200 0.006900 0.006900 County Housing Bond 2016 0.000000 0.012660 0.010500 0.010000 0.000000 Gilroy City Bond 2008 0.027200 0.026000 0.025000 0.020000 0.019000 Gilroy Unified School 2002 0.050100 0.047800 0.046700 0.044400 0.042800 Gilroy Unified 11/2008 0.051300 0.049100 0.046300 0.054400 0.054100 Gilroy Unified 2016 0.060000 0.055900 0.015400 0.053400 0.055000 Gavilan Community College 04 0.021600 0.020000 0.019200 0.018700 0.018400 Gavilan Jt CCD 2018 0.000000 0.000000 0.000000 0.024400 0.023200 Lease Debt-Gilroy Unified 0.000000 0.000000 0.000000 0.000000 0.000000 Lease Debt-Gilroy Unified Priorye 0.000000 0.000000 0.000000 0.000000 0.000000 SCVWD-State Water Project 0.008600 0.006200 0.004200 0.004100 0.003700 0.268600 0.267060 0.215700 0.277500 0.264300 TOTAL TAX RATE 1.268600 1.267060 1.215700 1.277500 1.264300 City of Gilroy Direct and Overlapping Property Tax Rates (Continued) (Per $100 of Taxable Value) Last Ten Fiscal Years 187 Taxpayer Taxable Value ($) Percent of Total City Taxable Value (%) Taxable Value ($) Percent of Total City Taxable Value (%) Simon Property Group 221,085,523 2.25% 188,724,148 3.30% Olam West Coast Inc 145,402,420 1.48%67,031,145 1.17% Excel Gilroy LLC 79,339,671 0.81%80,535,391 1.41% United Natural Foods West Inc 59,995,195 0.61% Mabury Vineyards LLC Et Al 56,736,066 0.58% Performance Food Group Inc 43,571,698 0.44% Towman Cadena LLC 36,765,274 0.37% Wal Mart Real Est Bus Trt 35,881,137 0.37%29,929,922 0.52% 7610 Isabella Way LLC 31,549,414 0.32% E P & G South Valley Plaza LLC 28,090,800 0.29% Calatlantic Group Inc 26,360,073 0.27% CaLPine Gilroy Cogen L P 26,333,230 0.27% Monterey Gourmet Foods 25,895,799 0.26% Central Valley Coalition 25,819,152 0.26% Costco Wholesale Corp A Ws Corp 24,407,273 0.25%20,229,845 0.35% Canciamilla Anthony Trustee & Et Al 22,000,000 0.22% Tri Pointe Homes Inc 20,852,880 0.21% Pacheco Pass Retail XII LLC 18,889,499 0.19% Target Corporation 18,014,108 0.18%15,377,306 0.27% First Street Gilroy I LLC 17,998,920 0.18% Gilroy Self Storage Partners LLC 17,204,848 0.18% Mission Park Gilroy LLC 16,974,210 0.17%14,504,263 0.25% HD Development of Maryland,Inc 16,900,673 0.17%14,426,847 0.25% Lee James Trustee 16,646,400 0.17% Trimark-Gilroy Hospitality LLC Et Al 16,167,604 0.16% Inland Western Retail Real 54,323,523 0.95% Shapell Industries Inc 44,961,651 0.79% Health Care Reit Inc 35,118,063 0.61% South Valley Apts LLC 27,049,496 0.47% Mccarthy Gilroy LLC 26,814,860 0.47% Land Department 20,986,807 0.37% CP6 Sv LLC 20,853,990 0.36% Tin Inc.20,460,687 0.36% Chinatown LLC 19,324,285 0.34% Wells Fargo Bk 18,764,924 0.33% Kelly-Kehriotis Partners LLC 15,775,969 0.28% Lowes HIW Inc A WS Corp 15,259,395 0.27% D R Horton Bay Inc 15,249,924 0.27% Santa Teresa Properties LLC 13,735,811 0.24% Avery Cypress Pointe LP 12,704,589 0.22% Sterigenics U S LLC 12,689,230 0.22% Town Place LLC 12,508,259 0.22% Total Top 25 Taxpayers 1,048,881,867 10.69%817,340,330 14.30% Total Taxable Value 9,807,614,121 100.00%5,713,805,465 100.00% Source: Santa Clara County Assessor data, MuniServices, LLC / Avenu Insights & Analytics 2020-21 2011-12 City of Gilroy Principal Property Taxpayers Last Fiscal Year and Nine Fiscal Years Ago 188 Fiscal Year Tax Levied for the Fiscal Year Amount Collected Percent (%) of Levy 2011-12 5,664,737$ 5,609,406$ 99.02% 2012-13 5,634,085$ 5,622,101$ 99.79% 2014-15 6,515,197$ 6,547,657$ 100.50% 2015-16 6,903,278$ 6,963,327$ 100.87% 2016-17 7,472,764$ 7,487,528$ 100.20% 2017-18 7,941,242$ 7,941,242$ 100.00% 2018-19 8,521,868$ 8,521,868$ 100.00% 2019-20 9,060,136$ 9,060,136$ 100.00% 2020-21 9,598,648$ 9,598,648$ 100.00% Source: MuniServices, LLC / Avenu Insights & Analytics Source: 2016-17 and prior, previously published ACFR Source: Finance Department, County of Santa Clara City of Gilroy Property Tax Levies, Tax Collections, and Delinquency Last Ten Fiscal Years 189 General Tax Lease Special Fiscal Revenue Allocation Notes & Revenue Assessment Revenue Year Bonds (4)(5)(6)Bonds Loans Bonds (4)Bonds Bonds 2010 10,724,640$ 1,500,000$ 46,370,000$ 1,130,000$ -$ 2011 34,529,124 24,340,000 25,410,269 870,000 - 2012 33,860,997 - 24,340,000 24,438,409 - - 2013 33,162,870 - 24,340,000 23,710,455 - - 2014 32,434,743 - - 47,182,360 - - 2015 31,681,616 - 959,229 45,587,503 - - 2016 30,893,489 - 1,201,155 43,937,647 - - 2017 30,080,362 - 1,126,536 42,232,790 - - 2018 29,247,235 - 1,082,253 40,462,933 - - 2019 28,305,209 - 948,011 38,623,072 - - 2020 26,630,459 857,428 35,710,000 2021 25,639,646 765,913 30,160,000 Note: Details regarding the outstanding debt can be found in the notes to the basic financial statements. Source: (1) Finance Department, City of Gilroy (2) Finance Department, County of Santa Clara (3) In 2010, the City issued revenue refunding bonds to refinance an existing installment payment obligation. (4) Presented net of related premiums, discounts, and adjustments. (5) GO Bonds Series 2009 refinanced on June 1, 2019 to Series 2019 A. (6) GO Bonds Series 2010 refinanced on November 5, 2019 to Series 2019 B. (7) 2021 Wastewater Revenue Bonds Series A issued June 2021. City of Gilroy Ratios of Outstanding Debt by Type Last Ten Fiscal Years Governmental Activities 190 Wastewater Total % of Fiscal Revenue Primary Property Net Debt Year Bonds (3) (4) (7)Government (1)Assessed Value (2)per Capita 2010 26,168,102$ 85,892,742$ 1.39% 1,758 2011 25,935,334 111,084,727 1.92% 2,253 2012 24,237,585 106,876,991 1.85% 2,134 2013 22,384,827 103,598,152 1.80% 2,011 2014 20,477,068 100,094,171 1.62% 1,910 2015 18,519,310 96,747,658 1.45% 1,825 2016 16,491,551 92,523,842 1.31% 1,677 2017 14,393,793 87,833,481 1.15% 1,570 2018 12,206,034 82,998,455 1.02% 1,484 2019 9,928,276 77,804,568 0.90% 1,391 2020 7,545,517 70,743,404 0.77% 1,239 2021 51,900,000 108,465,559 1.10% 1,810 Note: Details regarding the outstanding debt can be found in the notes to the basic financial statements. Source: (1) Finance Department, City of Gilroy (2) Finance Department, County of Santa Clara (3) In 2010, the City issued revenue refunding bonds to refinance an existing installment payment obligation. (4) Presented net of related premiums, discounts, and adjustments. (5) GO Bonds Series 2009 refinanced on June 1, 2019 to Series 2019 A. (6) GO Bonds Series 2010 refinanced on November 5, 2019 to Series 2019 B. (7) 2021 Wastewater Revenue Bonds Series A issued June 2021. City of Gilroy Ratios of Outstanding Debt by Type (Continued) Last Ten Fiscal Years Business-Type Activities 191 Ratio of General Tax Net General Bonded General Fiscal Obligation Allocation Assessed Debt to Net Bonded Debt Year Bonds (4)Bonds Total (1)Value (2)Population (3)Assessed Value Per Capita 2011 34,529,124 34,529,124 5,782,130,500 49,316 0.597% 700 2012 33,860,997 33,860,997 5,791,344,943 50,081 0.585% 676 2013 33,162,870 33,162,870 5,759,934,839 51,505 0.576% 644 2014 32,434,743 32,434,743 6,192,510,384 52,413 0.524% 619 2015 31,681,616 31,681,616 6,668,114,649 53,000 0.475% 598 2016 30,893,489 30,893,489 7,068,226,533 55,170 0.437% 560 2017 30,080,362 30,080,362 7,654,396,884 55,936 0.393% 538 2018 29,247,235 29,247,235 8,128,701,548 55,615 0.360% 526 2019 28,305,209 28,305,209 8,692,971,361 55,928 0.326% 506 2020 26,630,459 26,630,459 9,243,761,986 57,084 0.288% 467 2021 25,639,646 25,639,646 9,807,614,121 59,920 0.261% 428 Source: (1) State of California, Finance Department. (2) This is the amount restricted for the COP debt service principal payments. City of Gilroy Ratio of General Bonded Debt Outstanding Last Ten Fiscal Years OUTSTANDING GENERAL BONDED DEBT 49 50 51 52 53 55 56 56 56 57 58 0.000% 0.100% 0.200% 0.300% 0.400% 0.500% 0.600% 0.700% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 44 46 48 50 52 54 56 58 60 192 2020-21 Assessed Valuation : $9,854,955,121 Total Debt City’s Share of DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/2021 % Applicable (1)Debt 6/30/21 Santa Clara County $812,685,000 1.79% $14,538,935 Gavilan Joint Community College District 219,400,000 26.138 57,346,772 Gilroy Unified School District 362,567,495 82.233 298,150,128 City of Gilroy 25,639,646 100 25,639,646 City of Gilroy Community Facilities District No. 2000-1 6,560,907 100 6,560,907 Santa Clara Valley Water District Benefit Assessment District 57,010,000 1.789 1,019,909 TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT $403,256,297 DIRECT AND OVERLAPPING GENERAL FUND DEBT: Santa Clara County General Fund Obligations $914,957,860 1.79% $16,368,596 Santa Clara County Pension Obligation Bonds 341,399,194 1.789 6,107,632 Santa Clara County Board of Education Certificates of Participation 2,670,000 1.789 47,766 Gavilan Joint Community College District General Fund Obligations 6,670,000 26.138 1,743,405 Gilroy Unified School District Certificates of Participation 23,365,000 82.233 19,213,740 City of Gilroy General Fund Obligations 30,160,000 100 30,160,000 Santa Clara County Vector Control Certificates of Participation 1,765,000 1.789 31,576 TOTAL GROSS DIRECT AND OVERLAPPING GENERAL FUND DEBT $73,672,715 Less: Santa Clara County supported obligations 452,211 TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT $73,220,504 TOTAL DIRECT DEBT $55,799,646 TOTAL GROSS OVERLAPPING DEBT $421,129,366 TOTAL NET OVERLAPPING DEBT $420,677,155 GROSS COMBINED TOTAL DEBT $476,929,012 NET COMBINED TOTAL DEBT $476,476,801 Ratios to 2020-21 Assessed Valuation : Direct Debt ($25,639,646) 0.26% Total Direct and Overlapping Tax and Assessment Debt 4.09% Total Direct Debt ($55,799,646)0.57% Gross Combined Total Debt 4.84% Net Combined Total Debt 4.83% Source: Avenu Insights & Analytics, California Municipal Statistics, Inc. (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease City of Gilroy Schedule of Direct and Overlapping Bonded Debt June 30, 2021 (1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value. 193 2011 2012 2013 2014 2015 Assessed valuation 5,829,162,100 5,837,732,543 5,806,144,639 6,238,973,584 6,714,164,849 Debt Limit Rate (1)15%15%15%15%15% Debt limit 874,374,315 875,659,881 870,921,696 935,846,038 1,007,124,727 Total net debt applicable to limit: General obligation bonds 33,830,000 33,190,000 32,520,000 31,820,000 31,095,000 Legal debt margin 840,544,315$ 842,469,881$ 838,401,696$ 904,026,038$ 976,029,727$ Total debt applicable to the limit as a percentage of debt limit 4.0%3.9%3.9%3.5%3.2% Continued (1) Section 1108 of the City of Gilroy Charter limits the general obligation bonds of the City to 15% of total assessed value of real and personal property within the City. City of Gilroy Legal Debt Margin Information Last Ten Fiscal Years Fiscal Year 194 2016 2017 2018 2019 2020 2021 Assessed valuation 7,114,097,533 7,700,974,884 8,175,945,948 8,741,061,361 9,291,636,386 9,807,614,121 Debt Limit Rate (1)15%15%15%15%15%15% Debt limit 1,067,114,630 1,155,146,233 1,226,391,892 1,311,159,204 1,393,745,458 1,471,142,118 Total net debt applicable to limit: General obligation bonds 30,335,000 29,550,000 28,745,000 27,983,538 27,087,578 25,639,646 Legal debt margin 1,036,779,630$ 1,125,596,233$ 1,197,646,892$ 1,283,175,666$ 1,366,657,880$ 1,445,502,472$ Total debt applicable to the limit as a percentage of debt limit 2.9%2.6%2.4%2.2%2.0%1.8% End (1) Section 1108 of the City of Gilroy Charter limits the general obligation bonds of the City to 15% of total assessed value of real and personal property within the City. City of Gilroy Legal Debt Margin Information (Continued) Last Ten Fiscal Years Fiscal Year 195 2012 2013 2014 2015 2016 Gross revenues: Charges for services 8,170,711$ 8,441,024$ 9,168,356$ 10,336,111$ 11,773,938$ Investment income (loss)451,737 283,816 370,199 257,938 210,826 Rate Stabilization Fund Balance - 750,000 - - - Transfer from Sewer Impact Fund 674,534 704,007 705,356 700,544 700,111 Total gross revenues 9,296,982 10,178,847 10,243,911 11,294,593 12,684,875 Operating expenses: Operations 5,259,612 5,893,404 5,612,274 6,281,516 7,296,107 Billing 551,109 533,611 559,262 588,131 612,551 Administration 237,750 279,787 375,945 377,770 500,398 Claims and judgements - - - - - Total operating expenses 6,048,471 6,706,802 6,547,481 7,247,417 8,409,056 Net Revenues 3,248,511 3,472,045 3,696,430 4,047,176 4,275,819 Series 1999 installment payments / Refunding Series 2010 payments 2,462,276$ 2,571,000$ 2,576,576$ 2,576,576$ 2,566,550$ Gross revenue debt service coverage 377.58% 395.91% 397.58% 438.36% 494.24% Net revenue debt service coverage 131.93% 135.05% 143.46% 157.08% 166.60% Fund available Sewer Development Capital Project Fund 10,391,910$ 11,416,503$ 12,304,205$ 10,363$ 11,481,078$ Sewer Fund cash and cash equivalent 29,427,892 29,267,803 27,625,188 26,336,933 18,537,029 Rate stabilization fund - 750,000 750,000 750,000 750,000 Total funds available 39,819,802$ 41,434,306$ 40,679,393$ 27,097,296$ 30,768,107$ Days funds on hand 1,776 1,593 1,540 1,326 805 Fiscal Year City of Gilroy Revenue Bond Coverage - Wastewater System Last Ten Fiscal Years 196 2017 2018 2019 2020 2021 Gross revenues: Charges for services 12,644,730$ 12,720,141$ 12,904,657$ 12,872,189$ 12,702,398$ Investment income (loss)188,300 241,144 593,929 561,664 (29,535) Rate Stabilization Fund Balance - - - - - Transfer from Sewer Impact Fund 696,546 697,198 694,146 693,577 692,874 Total gross revenues 13,529,576 13,658,483 14,192,732 14,127,430 13,365,737 Operating expenses: Operations 7,454,895 7,466,650 8,339,489 9,462,155 10,853,866 Billing 594,654 618,400 668,982 730,892 678,651 Administration 472,465 558,846 706,101 667,733 720,726 Claims and judgements - - - - - Total operating expenses 8,522,014 8,643,896 9,714,572 10,860,780 12,253,243 Net Revenues 5,007,562 5,014,587 4,478,160 3,266,650 1,112,494 Series 1999 installment payments / Refunding Series 2010 payments 2,558,687$ 2,562,738$ 2,557,625$ 2,557,750$ 2,557,750$ Gross revenue debt service coverage 528.77% 532.96% 554.92% 552.34% 522.56% Net revenue debt service coverage 195.71% 195.67% 175.09% 127.72% 43.50% Fund available Sewer Development Capital Project Fund 12,964,741$ 14,534,002$ 13,533,945$ 13,376,865$ 12,891,194$ Sewer Fund cash and cash equivalent 16,777,330 17,391,216 17,687,792 18,610,720 18,837,132 Rate stabilization fund 750,000 750,000 750,000 Total funds available 30,492,071$ 32,675,218$ 31,971,737$ 31,987,585$ 31,728,326$ Days funds on hand 719 734 665 625 561 Fiscal Year Last Ten Fiscal Years Revenue Bond Coverage - Wastewater System (Continued) City of Gilroy 197 Fiscal Year Population (1) Net Taxable Assessed Values Per Capita Taxable Property Values Personal Income Per Capita Income City Unemployment Rate (%) (2) County Population (1) Public School Enrollment (3) 2011-12 50,081 5,791,344,943 115,640 1,438,276,239 28,719 12.7%-- 2012-13 51,505 5,759,934,839 111,833 1,474,536,645 28,629 10.4%-- 2013-14 52,413 6,192,510,384 118,148 1,512,219,876 28,852 8.6%-- 2014-15 53,000 6,668,114,649 125,813 1,566,627,000 29,559 6.9%-- 2015-16 55,170 7,068,226,533 128,117 1,648,534,770 29,881 5.7%-- 2016-17 55,936 7,654,396,884 136,842 1,720,759,168 30,763 4.9%-- 2017-18 55,615 8,128,701,548 146,160 1,817,498,200 32,680 3.7% 1,956,598 11,834 2018-19 55,928 8,692,971,361 155,431 1,927,859,413 34,470 2.5% 1,954,282 11,652 2019-20 57,084 9,243,761,986 161,933 2,046,518,484 35,851 13.9% 1,961,969 11,672 2020-21 56,599 9,807,614,121 173,282 2,190,227,917 38,697 8.6% 1,934,171 10,248 Source: Santa Clara County Assessor data, MuniServices, LLC / Avenu Insights & Analytics Source: 2016-17 and prior: previously published ACFR Report ( - ) Data unavailable. 1.) Population Projections are provided by the California Department of Finance Projections. 2.) Unemployment and Labor Force Data are provided by the EDD's Labor Market Information Division. City of Gilroy Demographic and Economic Statistics Last Ten Fiscal Years 3.) Student Enrollment reflects the total number of students enrolled in the Las Virgenes Unified School District. Any other school districts within the City are not accounted for in this statistic. 198 Business Name Number of Employees Rank Percent of Total Employment (%) Number of Employees Rank Percent of Total Employment (%) Gilroy Unified School District* 1,024 1 3.39% Christopher Ranch LLC 696 2 2.30% 800 1 4.08% Olam International (Formerly ConAgra-Gilroy Foods) 422 3 1.40% 500 4 2.55% Community Solutions 324 4 1.07% Walmart Supercenter 305 5 1.01% 395 5 2.01% Costco Wholesale 304 6 1.01% 220 7 1.12% Saint Louise Regional Hospital 288 7 0.95% 550 2 2.81% City of Gilroy 258 8 0.85% Gavilan College 223 9 0.74% Head Start Nursery 188 10 0.62% 180 9 0.92% Gilroy Gardens Theme Park (formerly Bonfante) 500 3 2.55% Monterey Gourmet Foods 225 6 1.15% Kaiser Permanente 200 8 1.02% International Paper 180 10 0.92% Total Top 10 Employers 4,032 13.35% 3,750 19.13% Total City Labor Force (1) 30,200 19,607 Source: MuniServices, LLC / Avenu Insights & Analytics Source: 2013-14 previously published ACFR. Nine years prior data is unavailable. Results based on direct correspondence with city’s local businesses. (1) Total City Labor Force provided by EDD Labor Force Data. * Includes FTE & PTE. City of Gilroy Principal Employers Current Year and Seven Years Ago 2020-21 2013-14 199 This page intentionally left blank. 200 Department 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Administration 6 6 5 4 5 5 6 6 7 7 City Council and Mayor 7 7 7 7 7 7 7 7 7 7 Community Development 18 18 20 21 21 18 18 21 23 20 Finance 14 13 13 13 13 11 13 14 14 11 Fire 39 41 39 40 39 35 36 37 37 43 Fleet and Facilities 10 10 10 10 10 10 10 10 10 7 Human Resources 3 3 4 4 4 4 4 4 5 4 Information Technology 2 4 4 2 2 3 3 4 3 4 Police 87 87 88 93 94 87 92 94 96 98 Public Works 34 34 36 38 43 40 42 54 57 48 Recreation 11 11 11 11 12 10 11 11 11 4 Total 231 234 237 243 250 230 242 262 270 253 (a) Beginning in fiscal year 2013-2014, the amount represents the number of filled positions by departments. Prior to fiscal year 2013-14, the amounts noted represent budgeted positions. City of Gilroy Full-Time Equivalent City Employees By Function / Program Last Ten Fiscal Years 201 Function 2012 2013 2014 2015 2016 General Gvoernement Number of Business Licenses Issued 2,958 2,855 2,615 3,034 2,685 Total Volunteer Service Hours 31,905 29,566 35,439 32,598 34,723 Total City-Wide Training Hours Provided 3,513 1,300 1,245 1,957 2,356 Total Vehicle Work Orders Generated 3,118 2,919 2,739 3,146 2,629 Total Facilities Work Orders Generated 1,660 1,658 1,613 1,542 1,445 Public Safety Police Number of 911 Calls Received 22,328 24,074 27,753 28,498 21,044 ** Number of Police Calls for Service 59,361 58,124 58,112 62,200 62,071 Number of Investigations Assigned to Detectives 781 769 727 821 913 Number of Case Reports Processed 10,708 11,956 11,926 13,566 12,621 Fire Total Calls for Service 4,014 4,322 4,557 5,131 5,007 Total Fire Calls 172 178 182 179 223 Total Emergency Medical Aid Calls 2,410 2,566 2,802 3,341 3,323 Community Development Number of Building Inspections Completed 14,055 13,938 14,101 21,592 24,500 Number of Building Permits Processed 1,160 1,158 1,706 2,042 2,197 Number of Fire Code Permits Issued 587 577 567 819 839 Public Works 430,000 660,000 930,000 90,000 274,479 Linear Feet of Preventive Cleaning 540,000 640,000 600,000 716,900 785,288 Million Gallons of Wastewater Treated per Day 6.39 6.27 6.05 5.99 5.97 Million Gallons of Municipal Water Produced per Day 7.71 8.32 7.87 6.79 5.94 Million Gallons of Wastewater Flow per Day (COG)0.37 3.58 3.45 3.50 3.59 Number of Utility Billing Customers 13,210 13,540 13,716 13,865 14,300 Recreation Number of Registrations Processed 5,075 7,405 5,500 6,378 5,856 Number of Meals Provided to Seniors Annually 17,744 19,459 19,549 20,031 21,351 Source: City of Gilroy, Various City Departments * Statistic not available Square Feet of Chip/Cape/Slurry Seal Completed City of Gilroy Operating Indicators By Function / Program Last Ten Fiscal Years Fiscal Year 202 Function 2017 2018 2019 2020 2021 General Gvoernement Number of Business Licenses Issued 3,166 3,800 3,965 3,160 4,319 Total Volunteer Service Hours 33,855 31,505 28,460 18,465 2,521 Total City-Wide Training Hours Provided 3,112 3,200 2,688 2,892 1,038 Total Vehicle Work Orders Generated 2,478 1,428 1,327 1,514 1,904 Total Facilities Work Orders Generated 1,317 1,428 1,411 1,488 1,405 Public Safety Police Number of 911 Calls Received 23,744 23,484 22,235 23,578 22,740 Number of Police Calls for Service 63,887 63,073 64,134 58,354 44,016 Number of Investigations Assigned to Detectives 845 815 986 1,023 971 Number of Case Reports Processed 12,320 12,478 11,075 11,020 10,095 Fire Total Calls for Service 5,441 5,374 5,555 6,243 6,299 Total Fire Calls 223 265 282 336 381 Total Emergency Medical Aid Calls 3,735 3,707 3,739 4,065 4,089 Community Development Number of Building Inspections Completed 23,623 17,991 17,450 14,618 15,652 Number of Building Permits Processed 1,903 1,970 2,050 1,300 1,361 Number of Fire Code Permits Issued 476 1,060 1,230 885 474 Public Works Square Feet of Chip/Cape/Slurry Seal Completed 712,504 533,397 1,430,477 1,547,477 1,451,239 Linear Feet of Preventive Cleaning 707,379 854,304 897,479 849,228 632,280 Million Gallons of Wastewater Treated per Day 7.60 6.16 6.66 6.18 6.14 Million Gallons of Municipal Water Produced per Day 6.46 7.07 6.80 7.20 7.60 Million Gallons of Wastewater Flow per Day (COG)4.84 3.87 4.13 3.73 3.49 Number of Utility Billing Customers 14,549 14,870 15,133 15,218 15,311 Recreation Number of Registrations Processed 5,807 4,952 4,737 4,232 2,380 Number of Meals Provided to Seniors Annually 22,566 23,815 25,103 21,979 19,525 Source: City of Gilroy, Various City Departments * Statistic not available ** Available Data Reflects Fiscal Year City of Gilroy Operating Indicators By Function / Program (Continued) Last Ten Fiscal Years 203 2012 2013 2014 2015 2016 General Government City Buildings 55 55 55 55 55 Public Safety Police Police Sattions 1 1 1 1 1 Police Vehicles 71 72 76 79 86 Fire Fire Stations 3 3 3 3 3 Fire Vehicles 20 20 20 20 20 Public Works Park sites 16 16 16 16 16 Centerline Miles of Streets 156 159 118 120 119 Number of Streetlights 3,894 3,969 4,150 4,150 4,773 Miles of Storm Trunk Mains 30 31 31 31 31 Miles of Sewer Mains 108 110 110 111 111 Treatment Plant Dry Weather Flow Capacity (MGD)9 9 9 9 9 Water Meters in Municipal Service Area 13,319 13,651 13,831 14,127 14,669 Miles of Water Mains 116 120 121 152 152 Number of Fire Hydrants 1,948 1,960 2,048 2,150 2,265 Source: City of Gilroy, Various City Departments Function City of Gilroy Capital Assets By Function Last Ten Fiscal Years 204 2017 2018 2019 2020 2021 General Government City Buildings 55 57 57 57 57 Public Safety Police Police Sattions 1 1 1 1 1 Police Vehicles 87 83 103 109 109 Fire Fire Stations 3 3 3 3 3 Fire Vehicles 21 20 19 19 20 Public Works Park sites 16 19 19 20 21 Centerline Miles of Streets 126 151 166 166 166 Number of Streetlights 4,794 4,841 4,861 4,885 4,295 Miles of Storm Trunk Mains 37 39 40 40 40 Miles of Sewer Mains 151 160 161 163 162 Treatment Plant Dry Weather Flow Capacity (MGD)9 9 9 9 9 Water Meters in Municipal Service Area 14,783 14,450 15,133 15,220 15,266 Miles of Water Mains 204 205 210 205 219 Number of Fire Hydrants 2,290 1,948 2,229 2,187 2,293 Source: City of Gilroy, Various City Departments Function City of Gilroy Capital Assets By Function (Continued) Last Ten Fiscal Years 205 This page intentionally left blank. 206