03/21/2022 City Council Regular Agenda Packet
March 17, 2022 4:55 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, MARCH 21, 2022
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. Public testimony is subject to reasonable regulations, including but not
limited to time restrictions for each individual speaker. Please limit your comments to 3 minutes.
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.
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 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 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. Written comments are also available on the City’s Public Records Portal at
https://bit.ly/3G1vihU.
In compliance with the Americans with Disabilities Act, and Assembly Bill 361, 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 h eld at this
meeting, or in written correspondence d elivered 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
03/21/2022 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
The agenda for this regular meeting is as follows:
1. OPENING
1.1. Call to Order
1. Pledge of Allegiance
2. Invocation
3. City Clerk's Report on Posting the Agenda
4. Roll Call
1.2. Orders of the Day
1.3. Employee Introductions
2. CEREMONIAL ITEMS
2.1. Proclamations, Awards, and Presentations
2.1.1. Proclamation: Fair Housing Month
3. BOARD AND COMMISSION INTERVIEWS
3.1. Interviews for Open Seats on Boards, Commissions and Committees
with Terms Expired or Vacant as of March 21, 2022 for Future
Appointment April 4, 2022
1. Staff Report: Thai Pham, City Clerk
2. Possible Action:
Interview candidates for open seats on City Boards, Commissions, and
Committees vacant as of March 21, 2022.
City Council Regular Meeting Agenda
03/21/2022 Page3 4. PRESENTATIONS TO THE COUNCIL
4.1. 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 to 3 minutes each, varying at the Mayor’s discretion depending on the number of
speakers and length of the agenda. The law does not permit Council 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 agenda 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
meeting 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 will be incorporated into the meetin g 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 o f the
agenda will be limited to 10 pages in hard copy. An unlimited amount of ma terial
may be provided electronically.
City Council Regular Meeting Agenda
03/21/2022 Page4 5. 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 fo r 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 Governin g 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 Task 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
6. FUTURE COUNCIL INITIATED AGENDA ITEMS
City Council Regular Meeting Agenda
03/21/2022 Page5 7. 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.
7.1. Action Minutes of the City Council Regular Meeting
7.2. Accept and File Quarterly Cash and Investment Reports as of
December 31, 2021
7.3. Claim of St. Mary's School (The City Administrator recommends a
“yes” vote under the Consent Calendar shall constitute the denial of
the claim)
8. BIDS AND PROPOSALS
9. PUBLIC HEARINGS
10. UNFINISHED BUSINESS
10.1. Review Draft Pension Funding Policy and the Utilization of Savings
from the Potential Pension Obligation Bonds
1. Staff Report: Harjot Sangha, Finance Director
2. Public Comment
3. Possible Action:
1. Receive report and provide direction.
11. INTRODUCTION OF NEW BUSINESS
11.1. Receive FY22 Mid-Year Budget Update, Approve Adjustment of
Select Positions as Recommended, and Adopt Resolutions Updating
the FY22 and FY23 Position Control List and Budget Amendment in
the Liability Insurance Fund.
1. Staff Report: Harjot Sangha, Finance Director
2. Public Comment
3. Possible Action:
1. Receive the FY22 mid-year budget update.
2. Approve adjustments to select positions as recommended.
3. Adopt a resolution updating the City’s FY22 and FY23 Position Control
List
4. Adopt a resolution amending the City’s FY22 budget to appropriate
$350,000 in the Liability Insurance Fund.
City Council Regular Meeting Agenda
03/21/2022 Page6 11.2. Council Consideration of Support, Neutrality, or Opposition to
Assembly Bill 1944 (Teleconference by Members of the Legislative
Body from Undisclosed Location)
1. Staff Report: Bryce Atkins, Senior Management Analyst
2. Public Comment
3. Possible Action:
Council provide direction regarding its policy stance on Assembly Bill 1944.
11.3. Introduction and First Reading of An Ordinance of the City Council of
the City of Gilroy Adding Sections 10A.15 Through 10A.18 to the
Gilroy City Code Relating to Host Liability for Fireworks
1. Staff Report: Bryce Atkins, Senior Management Analyst
2. Public Comment
3. Possible Action:
a) After the City Clerk reads the title of the ordinance, motion to waive further
reading of the ordinance; and
b) Introduction of an Ordinance of the City Council of the Ci ty of Gilroy adding
Gilroy City Code Sections 10A.15 Through 10A.18 to Chapter 10A to create
and enforce a host liability for illegal fireworks and illegal use of legal
fireworks.
11.4. Approval of Funding Agreement with Valley Transportation Authority
- US101/10th Street - Hwy. 152 Interchange Project
1. Staff Report: Gary Heap, City Engineer/Transportation Engineer
2. Public Comment
3. Possible Action:
Approve the funding agreement between the City of Gilroy and the Valley
Transportation Authority (VTA) for the US101/10th Street - Hwy. 152 Interchange
Project.
11.5. Approval of Memorandum of Understanding between City of Gilroy
and the Transit Agency of Monterey County (TAMC) Regarding
Improvements Near the Gilroy Train Station
1. Staff Report: Gary Heap, City Engineer/Transportation Engineer
2. Public Comment
3. Possible Action:
Approve the Memorandum of Understanding between City of Gilroy, the Transit
Agency of Monterey County (TAMC), and the Valley Transportation Authority
(VTA) Regarding Improvements Near the Gilroy Train Station
12. CITY ADMINISTRATOR'S REPORTS
12.1. Fentanyl Town Hall
13. CITY ATTORNEY'S REPORTS
City Council Regular Meeting Agenda
03/21/2022 Page7 14. CLOSED SESSION
14.1. CONFERENCE WITH LEGAL COUNSEL - PENDING LITIGATION:
Significant exposure to litigation pursuant to paragraph (3) of
subdivision (e) of Government Code Section 54956.9 & Gilroy City
Code Section 17A.11(3)(b): One (1) Case as Defendant – allegations
of harassment, discrimination and retaliation against Cities
Association
1. Receive advice from City Attorney pursuant to Gilroy City Code
Section 17A.11(3) to assert the attorney-client privilege and enter into
closed session because discussion in open session would likely and
unavoidably prejudice the position of the City.
2. Receive Public Comment on Closed Session Item.
3. Pursuant to Gilroy City Code Section 17A.11(3), approve motion to
adjourn to Closed Session.
15. 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 GCC
Section 17A.13 (a); Public Report of the vote to continue in closed session if
required under GCC Section 17A.11 (e)
16. ADJOURNMENT
FUTURE MEETING DATES
APRIL 2022
4* Regular Meeting - 6:00 p.m.
18* Regular Meeting - 6:00 p.m.
MAY 2022
2* Regular Meeting - 6:00 p.m.
16* Regular Meeting - 6:00 p.m.
JUNE 2022
6* Regular Meeting - 6:00 p.m.
20* Regular Meeting - 6:00 p.m.
City of Gilroy, California
LET IT BE KNOWN TO ALL PERSONS the City of Gilroy joins the United States
Department of Housing and Urban Development (HUD), the California Department of
Fair Employment and Housing (DFEH), and other housing agencies in the celebration
of the anniversary of the passage of the Fair Housing Act, which enunciates a national
policy of fair housing for all who live in the United States; and
WHEREAS, the Fair Housing Act prohibits discrimination based on race, color,
religion, sex, handicap, familial status, and national origin; and
WHEREAS, the State of California additionally prohibits discrimination because of
sexual orientation, marital status, ancestry, source of income, disability,
medical condition, and age; and
WHEREAS, the City encourages and supports fair housing practices and to heighten
public awareness, the City of Gilroy pledges its commitment to improve
housing options and celebrates the value of harmonious and diverse
communities by promoting Fair Housing Law.
NOW, THEREFORE, I, Marie Blankley, Mayor of the City of Gilroy, on this 21st
day of March, 2022, along with my colleagues on the City Council, do hereby proclaim
April 2022 as
FAIR HOUSING MONTH
Attested to by:
Marie Blankley Thai Nam Pham
MAYOR City Clerk
Proclamation
2.1.1
Packet Pg. 8 Communication: Proclamation: Fair Housing Month (Proclamations, Awards, and Presentations)
City of Gilroy
STAFF REPORT
Agenda Item Title: Interviews for Open Seats on Boards, Commissions and
Committees with Terms Expired or Vacant as of March 21, 2022 for
Future Appointment April 4, 2022
Meeting Date: March 21, 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
Interview candidates for open seats on City Boards, Commissions, and Committees
vacant as of March 21, 2022.
BACKGROUND
The City Council opened the annual recruitment period ending December 17, 2021, to
fill seats on Boards, Commissions, and Committees with member terms vacant or
expiring as of December 31, 2021. At the February 7, 2022 City Council Regular
Meeting, Council appointed members to the various boards and committees; however,
vacancies remained for the following:
• Arts and Culture Commission – One (1) seat with term expiring 12/31/2024
• Open Government Commission – One (1) seat with term expiring 12/31/2025
• Parks & Recreation Commission – One (1) seat with term expiring 12/31/2025
3.1
Packet Pg. 9
• Physically Challenged Board of Appeals – Two (2) seats with terms expiring
12/31/2025
Staff has made every effort to notify the public about the open vacancies via the City’s
website and social media platforms. At the close of the application deadline, which was
March 11, 2022 at 5 p.m., staff received one (1) application for the following
commission:
Sergio Patterson for Parks and Recreation Commission seat with term expiring
12/31/2025.
CONCLUSION
For those seats without sufficient applications, the recruitment remains open. Interviews
have been scheduled with the City Council at this evening’s meeting, and appointments
are scheduled to take place at the April 4, 2022 Regular Meeting.
Attachments:
1. Application - Parks and Recreation Commission - Patterson, Sergio
3.1
Packet Pg. 10
City of Gilroy Board, Committee, and Commission Appointment | Sergio Patterson
Page 1 of 2
City of Gilroy Application
For Board, Committee, and Commission
Appointment
Date of Submission : 2/19/2022 11:16:28 AM
Name : Sergio Patterson
Board / Commission / Committee of Interest : Parks & Recreation Commission
Are you a registered voter within the City
limits? : Yes
Physical Address :
Alternate Phone Number :
List your qualifications for this appointment:
I've played sports my entire life and have a passion for the community and creating
good experiences for kids to enjoy the outdoors. I have two kids myself who have
participated in Gilroy rec activities and to have a chance to impact the city and the
activities for my kids and other kids in the community would be incredible.
I've coached a number of sports teams working various communities and understand
many of the processes that go into parks and planning.
I'm a program/project manager in my day job for LinkedIn and have a strong
background in planning and bringing stakeholders together to achieve goals.
I have strong program management skills that I believe will allow me to bring value to
this board.
List any service to the community including any prior appointments.
Coached under 7 boys soccer for city of Gilroy
Coached under 13 girls soccer for competitive you team
Mentored under privileged kids in San Jose Bay Area will goal of breaking into tech
Spent numerous hours servicing homeless community
What are you goals while serving on this Board/Commission/Committee?
1. Bring my passion of community and sports to the city and help take our parks and
recs org to the next level
2. Gain a deep understanding of what's working well and what could be improved to
have a strong impact on the children of our community. Help push the city to make
the necessary changes if needed to make our parks and recs program outstanding
3.1.a
Packet Pg. 11 Attachment: Application - Parks and Recreation Commission - Patterson, Sergio (3689 : Commission Interviews)
City of Gilroy Board, Committee, and Commission Appointment | Sergio Patterson
Page 2 of 2
3. Gain experience on the board and give back to the city of Gilroy
Why are you the most qualified to serve on this Board/Commission/Committee?
I've been a resident of Gilroy for over 20 years and I have a good understanding of the
current parks and recs programs.
I believe im well qualified with my passion to serve the community, experience
managing complex programs in Silicon Valley and willingness to learn and grow has
me well suited to thrive in this role.
3.1.a
Packet Pg. 12 Attachment: Application - Parks and Recreation Commission - Patterson, Sergio (3689 : Commission Interviews)
City Council Regular Meeting Minutes
March 7, 2022
Page 1 of 5
City Council Meeting Minutes
03/7/2022
City of Gilroy
City Council Regular Meeting Minutes
March 7, 2022
1. OPENING
1. Call to Order
The meeting was called to order at 6:00 PM by Mayor Marie Blankley.
1. Pledge of Allegiance
Council Member Armendáriz led the pledge of allegiance.
2. City Clerk's Report on Posting the Agenda
City Clerk Pham declared the posting of the agenda.
Attendee Name Title Status
Marie Blankley Mayor Present
Rebeca Armendáriz Council Member Present
Dion Bracco Council Member Present
Zach Hilton Council Member Excused
Peter Leroe-Muñoz Vice Mayor Present
Carol Marques Council Member Present
Fred Tovar Council Member Excused
2. Orders of the Day
There were none.
3. Employee Introductions
Recreation Manager introduced Vice Bautista, Jr., Recreation Coordinator.
Fire Chief Wyatt introduced Steven Hayes, promoted to Fire Captain, and Carlos
Hernandez, promoted to Fire Engineer.
Public Works Director introduced new Maintenance Worker I Matthew Jimenez,
Lucas Helling, and Isaac Muñoz.
2. CEREMONIAL ITEMS
2.1. Proclamations, Awards, and Presentations
Mayor Blankley read aloud proclamation for Women History's Month.
7.1
Packet Pg. 13 Minutes Acceptance: Minutes of Mar 7, 2022 6:00 PM (CONSENT CALENDAR (ROLL CALL VOTE))
City Council Regular Meeting Minutes
March 7, 2022
Page 2 of 5
City Council Meeting Minutes
03/7/2022
3. PRESENTATIONS TO THE COUNCIL
3.1. PUBLIC COMMENT BY MEMBERS OF THE PUBLIC ON ITEMS NOT
ON THE AGENDA BUT WITHIN THE SUBJECT MATTER
JURISDICTION OF THE CITY COUNCIL
Mayor Blankley opened Public Comment.
City Clerk Pham reported one written public Comment was
received by Donald Hanes.
There being no public speakers, Mayor Blankley closed Public Comment.
4. REPORTS OF COUNCIL MEMBERS
Council Member Bracco sent his condolence to Council Member Tovar.
Council Member Armendáriz had nothing to report.
Council Member Marques congratulated the City for receiving a $3.9 million grant
from Clean California Grant Award.
Vice Mayor Leroe-Muñoz reported that he will be attending a meeting of the
Cities Association of Santa Clara County Board of Directors meeting on March
10th discussing Assembly Bill 1944.
Mayor Blankley reported on VTA Board of Directors meeting and the Cities
Association of Santa Clara County Board of Directors meeting.
5. FUTURE COUNCIL INITIATED AGENDA ITEMS
Vice Mayor Leroe-Muñoz requested for Council to review and decide to take a
position on Assembly Bill 1944. The item received unanimous support.
6. CONSENT CALENDAR (ROLL CALL VOTE)
RESULT: APPROVE [UNANIMOUS]
MOVER: Peter Leroe-Muñoz, Vice Mayor
SECONDER: Dion Bracco, Council Member
AYES: Blankley, Armendáriz, Bracco, Leroe-Muñoz, Marques
ABSENT: Zach Hilton, Fred Tovar
6.1. Action Minutes for February 28, 2022 City Council Regular Meeting
A motion was made to approve the minutes.
6.2. Approval of the Eleventh Amendment to the Single Tenant Lease
Agreement With Gilroy Gardens Family Theme Park Extending the
Lease by One Year
A motion was made to approve the lease extension.
6.3. Claim of Michelle Fullerton (The City Administrator recommends a “yes”
vote under the Consent Calendar shall constitute the denial of the claim)
A motion was made to deny the claim.
7.1
Packet Pg. 14 Minutes Acceptance: Minutes of Mar 7, 2022 6:00 PM (CONSENT CALENDAR (ROLL CALL VOTE))
City Council Regular Meeting Minutes
March 7, 2022
Page 3 of 5
City Council Meeting Minutes
03/7/2022
6.4. Second Reading Of An Ordinance To Mandate Electronic And Paperless
Filing of Fair Political Practices Commission Campaign Disclosure
Statements
A motion was made to adopt the proposed ordinance.
Enactment No.: Ordinance No. 2022-02
7. BIDS AND PROPOSALS
There were none listed.
8. PUBLIC HEARINGS
There were none listed.
9. UNFINISHED BUSINESS
There were none listed.
10. INTRODUCTION OF NEW BUSINESS
10.1. General Plan & Housing Element Annual Progress Report
Customer Service Manager McCormick gave a staff presentation and
responded to Council Member questions.
Mayor Blankley opened Public Comment.
Joanne Fiero requested Council to prioritize extremely low-income
housing and emphasize the importance of coming up with new ideas
regards to housing.
There being no comments, Mayor Blankley closed Public Comment.
Possible Action:
Accept the 2021 General Plan and Housing Element Annual Progress
Report and direct staff to transmit the report to the appropriate State
agencies.
RESULT: APPROVE [UNANIMOUS]
MOVER: Peter Leroe-Muñoz, Vice Mayor
SECONDER: Dion Bracco, Council Member
AYES: Blankley, Armendáriz, Bracco, Leroe-Muñoz, Marques
ABSENT: Zach Hilton, Fred Tovar
10.2. Potential City of Gilroy Justice, Equity, Diversity, and Inclusion
(JEDI) Policy
City Administrator Forbis gave a staff presentation and responded to
Council Member questions.
Mayor Blankley opened Public Comment.
There being no comments, Mayor Blankley closed Public Comment.
7.1
Packet Pg. 15 Minutes Acceptance: Minutes of Mar 7, 2022 6:00 PM (CONSENT CALENDAR (ROLL CALL VOTE))
City Council Regular Meeting Minutes
March 7, 2022
Page 4 of 5
City Council Meeting Minutes
03/7/2022
Possible Action:
Council approve staff recommendation to solicit Request for
Proposals (RFP) for the development of the City's Justice, Equity,
Diversity, and Inclusion plan.
RESULT: APPROVE [UNANIMOUS]
MOVER: Rebeca Armendáriz, Council Member
SECONDER: Peter Leroe-Muñoz, Vice Mayor
AYES: Blankley, Armendáriz, Bracco, Leroe-Muñoz, Marques
ABSENT: Zach Hilton, Fred Tovar
11. CITY ADMINISTRATOR'S REPORTS
11.1. Clean California Grant Award
City Administrator Forbis provided an update on the item and responded
to Council Member questions.
Mayor Blankley opened Public Comment.
Gary Walton stated he was pleased with the grant but asked for
more detail on the application of the grant. He also invited Council
Members and staff to a cleanup event of Gourmet Alley on March
26th.
Being no further speakers, Mayor Blankley closed Public Comment.
12. CITY ATTORNEY'S REPORTS
None provided.
13. CLOSED SESSION
Mayor Blankley opened Public Comment.
There being no further speakers, Mayor Blankley closed Public Comment.
Mayor Blankley adjourned Regular Meeting to Closed Session at 6:50 p.m.
The City Council convened in Closed Session at 7:00 p.m.
The Council vote to stay in closed session was unanimous.
13.1. CONFERENCE WITH REAL PROPERTY NEGOTIATORS Pursuant to
GC Sec. 54956.8 and GC Sec.17A.8 (a) (2)
13.1.1. Property: Gilroy Sports Park, 5925 Monterey Frontage Road
(APN’s 808-221-026, -028, and -030)
Negotiators: Jimmy Forbis, City Administrator
Other Party to Negotiations: Sharks Sports and Entertainment,
LLC
Under Negotiations: Price and Terms of Lease
No reportable action.
7.1
Packet Pg. 16 Minutes Acceptance: Minutes of Mar 7, 2022 6:00 PM (CONSENT CALENDAR (ROLL CALL VOTE))
City Council Regular Meeting Minutes
March 7, 2022
Page 5 of 5
City Council Meeting Minutes
03/7/2022
14. ADJOURNMENT
The meeting was adjourned at 7:06 P.M. by Mayor Blankley.
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 Pham, CMC, CPMC
City Clerk
7.1
Packet Pg. 17 Minutes Acceptance: Minutes of Mar 7, 2022 6:00 PM (CONSENT CALENDAR (ROLL CALL VOTE))
City of Gilroy
STAFF REPORT
Agenda Item Title: Accept and File Quarterly Cash and Investment Reports as of
December 31, 2021
Meeting Date: March 21, 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 the quarterly cash and investment reports as of December 31, 2021.
EXECUTIVE SUMMARY
Council is requested to accept and file the quarterly investment reports as of December
31, 2021.
BACKGROUND
The quarterly investment reports are prepared pursuant to the City’s investment policy
to keep the City Council apprised of City’s investment activities.
ANALYSIS
7.2
Packet Pg. 18
At December 31, 2021 – The City’s cash and investments totaled $140.8 million, of
which $140.4 million is invested with the LAIF. The fiscal year-to-date earnings are
$164,386. In addition, approximately $57 million is held by Fiscal Agents in the Trustee
capacity for various bond issues as bond proceeds, debt service reserves, bond
payments, and for post-employment benefits related to pension. Majority of the balance
($48.8 million) consists of City of Gilroy’s share of the Acquisition and Construction
Funds for the SCRWA Plant Expansion Project.
FISCAL IMPACT/FUNDING SOURCE
There are no direct fiscal impacts to receiving and filing cash and investment reports.
This is an activity included in Finance Department’s annual workplan.
Attachments:
1. Investment Report City 12-31-21
7.2
Packet Pg. 19
7.2.a
Packet Pg. 20 Attachment: Investment Report City 12-31-21 (3698 : Cash and Investment Reports as of December 31, 2021)
7.2.a
Packet Pg. 21 Attachment: Investment Report City 12-31-21 (3698 : Cash and Investment Reports as of December 31, 2021)
7.2.a
Packet Pg. 22 Attachment: Investment Report City 12-31-21 (3698 : Cash and Investment Reports as of December 31, 2021)
7.2.a
Packet Pg. 23 Attachment: Investment Report City 12-31-21 (3698 : Cash and Investment Reports as of December 31, 2021)
7.2.a
Packet Pg. 24 Attachment: Investment Report City 12-31-21 (3698 : Cash and Investment Reports as of December 31, 2021)
7.2.a
Packet Pg. 25 Attachment: Investment Report City 12-31-21 (3698 : Cash and Investment Reports as of December 31, 2021)
7.2.a
Packet Pg. 26 Attachment: Investment Report City 12-31-21 (3698 : Cash and Investment Reports as of December 31, 2021)
7.2.a
Packet Pg. 27 Attachment: Investment Report City 12-31-21 (3698 : Cash and Investment Reports as of December 31, 2021)
7.2.a
Packet Pg. 28 Attachment: Investment Report City 12-31-21 (3698 : Cash and Investment Reports as of December 31, 2021)
7.2.a
Packet Pg. 29 Attachment: Investment Report City 12-31-21 (3698 : Cash and Investment Reports as of December 31, 2021)
7.2.aPacket Pg. 30Attachment: Investment Report City 12-31-21 (3698 : Cash and Investment Reports as of December 31, 2021)
City of Gilroy
STAFF REPORT
Agenda Item Title: Claim of St. Mary's School (The City Administrator recommends a
“yes” vote under the Consent Calendar shall constitute the denial of
the claim)
Meeting Date: March 21, 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 March
21, 2022 meeting:
• Claim of St. Mary’s School
Attachments:
7.3
Packet Pg. 31
1. Claim of St. Mary School - Amended 2.25.22
7.3
Packet Pg. 32
7.3.a
Packet Pg. 33 Attachment: Claim of St. Mary School - Amended 2.25.22 (3705 : Claim of St. Mary's School)
7.3.a
Packet Pg. 34 Attachment: Claim of St. Mary School - Amended 2.25.22 (3705 : Claim of St. Mary's School)
7.3.a
Packet Pg. 35 Attachment: Claim of St. Mary School - Amended 2.25.22 (3705 : Claim of St. Mary's School)
7.3.a
Packet Pg. 36 Attachment: Claim of St. Mary School - Amended 2.25.22 (3705 : Claim of St. Mary's School)
7.3.a
Packet Pg. 37 Attachment: Claim of St. Mary School - Amended 2.25.22 (3705 : Claim of St. Mary's School)
7.3.a
Packet Pg. 38 Attachment: Claim of St. Mary School - Amended 2.25.22 (3705 : Claim of St. Mary's School)
7.3.a
Packet Pg. 39 Attachment: Claim of St. Mary School - Amended 2.25.22 (3705 : Claim of St. Mary's School)
7.3.a
Packet Pg. 40 Attachment: Claim of St. Mary School - Amended 2.25.22 (3705 : Claim of St. Mary's School)
7.3.a
Packet Pg. 41 Attachment: Claim of St. Mary School - Amended 2.25.22 (3705 : Claim of St. Mary's School)
City of Gilroy
STAFF REPORT
Agenda Item Title: Review Draft Pension Funding Policy and the Utilization of Savings
from the Potential Pension Obligation Bonds
Meeting Date: March 21, 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
1. Receive report and provide direction.
POLICY DISCUSSION
Should the City Council adopt a formal pension funding policy to ensure its commitment
to addressing the rising pension costs?
The City is exploring the issuance of Pension Obligation Bonds (POBs) to refinance its
pension obligations. The transaction, if approved, will generate approximately $1.7
million to $2.3 million in annual savings from the potential issuance, a portion of which
could be utilized to bolster the Section 115 Trust for future pension costs.
BACKGROUND
10.1
Packet Pg. 42
Since 2014, the City’s unfunded accrued liability (“UAL”) for its California Public
Employees Retirement System (CalPERS) Miscellaneous and Safety Plans has grown
69%, from $58.5 million to $99 million. This UAL represents the shortfall/gap between
what is needed to pay retiree benefits versus how much in current assets the City has in
its accounts with CalPERS. As shown in Figure 1 below, the annual payments made to
amortize the existing CalPERS UAL have grown rapidly from about $2.4 million in FY
2014 to over $7.0 million in FY 2022 and are projected to grow to over $11.0 million by
FY 2031 based on the most recently released actuarial report.
Figure 1. City of Gilroy Current UAL Payments
$-
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
$8.0
$9.0
$10.0
$11.0
$12.0
2014201520162017201820192020202120222023202420252026202720282029203020312032203320342035203620372038203920402041204220432044204520462047204820492050MillionsCurrent UAL Payments
In recent years, the City Council has taken actions to address the issue of rising
pension costs by:
• Establishing and initially funding a Section 115 Trust for future pension costs
• Directing staff to make prepayments of the annual UAL amount and transferring
any realized savings to the pension trust
• Directing staff to transfer up to 25% of annual year -end savings in the General
Fund to the pension trust, subject to approval of the City Council
• Including in its strategic priorities to explore the refinancing of pension obligations
at lower interest rates via POBs and conducted a related study session
10.1
Packet Pg. 43
• Granting initial authorization to proceed with the issuance of POBs and related
judicial validation process
Staff is now returning to Council to formalize the current practice, incorporate prior
direction, and facilitate a discussion regarding what the potential cash flow savings
should be utilized for, should the City Council ultimately approve the issuance of the
POBs.
ANALYSIS
Staff has drafted the attached Pension Funding Policy for City Council’s consideration.
This policy outlines following:
• City will continue to budget and make the actuarially determined minimum
required employer contributions as determined by the CalPERS actuaries. The
minimum required amount consists of two components, the normal cost
(represented as a percentage) and the unfunded accrued liability (represented as
an amount).
• The City will prepay the annual UAL payment in July to achieve budgetary
savings, and subsequently will transfer an equal amount to the pension trust in
the same fiscal year the savings are realized. (For FY22, this amount was
$242,000 which Council authorized to be transferred in November 2021).
• The City will annually review and transfer up to 25% of year-end savings in
General Fund expenditures to the pension trust. This will occur at the close of
fiscal year and subject to City Council’s approval. Further, this transfer would
only occur so long the City has met its adopted General Fund Reserve Policy of
30% (20% operations and 10% economic uncertainty). Taking FY21 as an
example, the budgeted expenditures in the General Fund were $53 million and
the actual expenditures were $51 million, yielding a $2 million in year-end
savings in the General Fund. Therefore, up to 25% of $2 million, or $500,000,
would have been transferred to the pension trust, subject to City Council
approval.
• The City will target to achieve and maintain the funded status of each of its plans
between 90% - 100%.
• The City will also consider the option to make additional discretionary payments
directly to CalPERS which serves to reduce the UAL and future required
contributions. This would be considered in the context of annual evaluation of
reserve levels or year-end savings analysis mentioned above.
• Pension Obligation Bonds: City is evaluating the issuance of POBs to refinance
the pension liabilities. In the draft policy, staff has outlined several guidelines to
be considered in structuring and issuing POBs. These include seeking expert
advice and analysis to quantify risks, achieving a minimum all -in interest rate
10.1
Packet Pg. 44
when compared to the CalPERS discount rate, ensuring maturities do not exceed
the current term of UAL amortization, and ensuring the P OBs yield significant
savings and identifying what the savings should be prioritized for.
Update on POBs Analysis
The City Council last received an update on the POBs project in January 2022, when it
granted initial authorization to proceed with the issuance and initiated the validation
process. The validation process is currently underway and is expected to be complete
over the next month.
Below is an updated preliminary analysis based on current market conditions. The
previous analysis estimated the interest rates to be between 3.2 - 3.5%, with estimated
$2.0 - $2.5 million in average annual savings. The Federal Open Market Committee
(FOMC) of the Federal Reserve has communicated that it plans on raising federal funds
interest rate during 2022. In anticipation, the markets reacted to price this in and as a
result the interest rates have generally increased since January 2022. The below
analysis estimates the rates to be about 90 basis points (0.9%) higher (4.0 - 4.3%) than
from the last analysis presented, which drops estimated average annual savings for an
18- and 22-year POB down to about $1.7M and $2.4M respectively through FY 2036.
Currently, the market is experiencing volatility with developments in the economy and
around the world, most notably inflation.
10.1
Packet Pg. 45
Further, given that broader markets are down this year, there is a concern that
CalPERS may experience a lower than expected or even a negative investment return
for the fiscal year. This would directly impact future pension costs with or without POBs.
If the POBs are issued, and subsequently CalPERS does experience a lower or a
negative investment return, it is likely the City will generate a nominal UAL. Although it
will be amortized over a range of years like the current UAL, it’s important the City be
able to pay off any future UALs as they are incurred.
To achieve this, it is critical for the City to set aside and build up reserves in the pension
trust it has established. As such, staff recommends that if POBs are issued, any
realized savings be directed to bolster the pension trust (Section 115) to mitigate
against future UALs. Having these potential new monies from savings further enables
the City to set a realistic reserve level target to fund and maintain the pension trust
balances.
For example, much like the existing General Fund reserve policy, which requires the
City to maintain 20% General Fund reserves for operations in the General Fund, the
City could establish a target amount which equal to that percentage for the pension
trust. FY22 General Fund expenditures are $57 million; thus the 20% reserve equivalent
amount would be approximately $11.5 million, or $12 million rounded up. The existing
balance in the pension trust is approximately $2 million. With the current estimated
average annual savings range of $1.7 million to $2.4 million from the POBs, excluding
future investment returns, it would take approximately 4 - 6 years to reach the total
target contribution, at which time Council could revisit the policy and repurpose the
savings.
ALTERNATIVES
The City Council could direct staff to make additional modifications to the policy, but
staff believes the policy as drafted achieves the purpose and intent.
FISCAL IMPACT/FUNDING SOURCE
The proposed policy formalizes the City’s existing practice and incorporates prior
Council direction funding pension obligations. The City budgets for the actuarially
determined minimum required contributions as determined by CalPERS actuaries for
the normal cost and the UAL.
Most of the other proposed pension funding mechanisms are in the manner of utilizing
budgetary savings and are not expected to result in increased budgetary appropriations.
The savings mechanisms include:
• Savings from annual UAL prepayment option to be allocated to the pension trus t
• Year-end savings from General Fund expenditures
• Savings from potential issuance of POBs to be utilized for bolstering the pension
trust until the target contribution amount of $12 million is reached
10.1
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NEXT STEPS
Staff will plan to return at the next Council meeting for the City Council to formally adopt
the pension funding policy. Staff expects to return to the City Council for formal
consideration of POBs in May 2022. If at that time POBs are not recommended or
approved by the City Council, the following elements of the policy will still apply, annual
prepayment of UAL in July, and up to 25% of annual year -end savings in General Fund
expenditures to be directed to the pension trust. In addition, periodic review and
consideration will be given to make additional discretionary payments to reach the
target funded status of 90-100%.
Attachments:
1. City of Gilroy Pension Funding Policy_Draft
10.1
Packet Pg. 47
PENSION FUNDING POLICY
Purpose
The purpose of this policy is to define how the City’s pension funding obligations will be met. As part of
its overall compensation plan, the City provides a defined benefit pension benefit to its employees. This
benefit is administered by the California Public Employees Retirement System (CalPERS) and funded
through contributions from the City and its employees and from investment earnings on those
contributions. The CalPERS Board of Administration, under the California Public Employees’ Retirement
Law (PERL), is responsible for the administration and investment of the funds it receives and determines
the amounts contributed by each of the governmental entities that participate in CalPERS. The PERL
sets employee contribution rates. The City has two separate plans with CalPERS, one for Safety
employees (the Safety Plan) and one for all other employees (the Miscellaneous Plan).
Policy
It is the policy of the City to fulfill its obligation to maintain fiscally responsible management practices
and to ensure that promised retirement benefits are funded. To that end, the City will meet its pension
funding obligations as follows:
1. Section 115 Pension Trust: The City has established and will maintain a pension stabilization
fund in the form of a Section 115 Pension Trust. Assets in the Section 115 Pension Trust may be
used only for pension related costs and at the direction of the City Council. Once the targeted
funding level is reached, the earnings on the assets in the Trust may be applied to offset a
portion of the City’s annual pension contributions to CalPERS or make additional discretionary
payments to CalPERS.
2. Actuarially Determined Contributions: Each fiscal year, the City will contribute to CalPERS the
amount determined by CalPERS actuaries to be the minimum required employer contribution
for that year. The minimum contribution consists of two components, normal cost and
unfunded accrued liability (UAL). The normal cost is expressed as a rate that is applied to
pensionable payroll costs and reflects the cost of pension benefits earned by employees in the
current fiscal year. The UAL payment is a flat dollar amount that represents a portion of the cost
of past benefits earned by employees, but for which, because of deviations in actual experience
and changes in assumptions about investment performance, the normal cost rates established
for those prior years has been determined to be insufficient to provide the promised retirement
benefit. The CalPERS actuaries recalculate the total UAL each year and an updated multi-year
amortization schedule is provided to show the projected annual minimum payments.
3. Annual UAL Prepayment: CalPERS offers the option to make monthly payments on the UAL or
prepay the entire annual amount at a discounted level by the end of July. The City will prepay
its annual obligation each year to achieve budgetary savings. The City will transfer an amount
equivalent to the budgetary savings from the prepayment to the Section 115 Pension Trust. The
transfer to the trust shall be within the same fiscal year the savings are realized.
4. Allocation from Annual Year-end Savings: Upon meetings the City’s General Fund Reserve
Policy of 30% (20% for operations, and 10% for economic uncertainty), up to 25% (twenty-five
percent) of all future year-end savings in General Fund expenditures shall be transferred to the
Section 115 Pension Trust subject to approval of the City Council. Year-end savings are
determined upon the close of the fiscal year. Special considerations shall be made by the
10.1.a
Packet Pg. 48 Attachment: City of Gilroy Pension Funding Policy_Draft (3680 : POB Savings Utilization/Pension Funding Policy)
Finance Director each year when determining potential year-end savings so as not to leave any
General Fund supported funds (Worker’s Compensation and Liability Insurance Fund) with a
negative fund balance.
5. Targeted Funding Level: The City’s goal is to achieve and maintain a funded status for each of
its plans of between 90% and 100%. A funded status of 100% signifies that the City’s pension
assets with CalPERS match its accrued liabilities.
6. Additional Discretionary Payments: CalPERS allows member agencies to make additional
discretionary payments at any time and in any amount, which would serve to reduce the UAL
and future required contributions. The City will consider this option in the context of its annual
evaluation of reserve levels and budgetary requirements.
7. Pension Obligation Bonds (POBs): POBs are a tool that can be used to provide an additional
discretionary payment to CalPERS upon the determination that the cost to borrow the funds for
the payment is less than continuing to make the projected prescribed UAL payments at the
current discount rate. If the City issues POBs, the following guidelines will apply:
a. Expert advice and analysis by actuaries and municipal advisors will be utilized to
quantify the risk of CalPERS investment underperformance (including discount rate
reductions, stock market crashes, or sustained investment underperformance) and the
threshold at which the City would be worse off issuing POBs versus not.
b. The interest rate on the POBs shall be at least 2% less than the current CalPERS discount
rate.
c. The final maturity date on the POBs will be no more than the then current term of the
UAL.
d. The POBs structure will contain an early call provision.
e. The POBs shall not finance Normal Costs and shall only be used to refinance unfunded
pension liabilities.
f. The POBs should provide significant demonstrated cash flow savings.
g. The City shall budget and transfer 100% of cash flow savings (determined at bond
issuance, not adjusted annually for any new unfunded liability, or change in actuarial
assumptions) to be transferred to the Section 115 Trust to bolster the pension trust to
mitigate against future UAL likely to occur. The annual transfers should occur until a
reserve target amount of $12 million is met, at which time the Council would revisit the
policy.
h. In the event of an economic hardship, or other unanticipated fiscal emergency, the City
Council may make an emergency declaration to reduce the annual transfer to the
section 115 trust, only if the existing 10% economic uncertainty reserve in the General
Fund is projected to be depleted. This declaration will only apply to the fiscal year in
which it was made. Ongoing fiscal challenges will require a second or third emergency
declaration.
10.1.a
Packet Pg. 49 Attachment: City of Gilroy Pension Funding Policy_Draft (3680 : POB Savings Utilization/Pension Funding Policy)
City of Gilroy
STAFF REPORT
Agenda Item Title: Receive FY22 Mid-Year Budget Update, Approve Adjustment of
Select Positions as Recommended, and Adopt Resolutions
Updating the FY22 and FY23 Position Control List and Budget
Amendment in the Liability Insurance Fund.
Meeting Date: March 21, 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
1. Receive the FY22 mid-year budget update.
2. Approve adjustments to select positions as recommended.
3. Adopt a resolution updating the City’s FY22 and FY23 Position Control
List
4. Adopt a resolution amending the City’s FY22 budget to appropriate
$350,000 in the Liability Insurance Fund.
EXECUTIVE SUMMARY
This report serves to provide the City Council with a mid -year update on Fiscal Year
2022 (FY22) Budget.
11.1
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BACKGROUND
Each year, the Finance Department prepares and present s to Council a mid-year
budget update on the revenues and expenditures of the City’s fiscal year performance.
Typically, the mid-year budget update reports on a 6 -month interval (July 1st through
December 31st), however, this update will cover the 7-month period from July 1, 2021
through January 31, 2022.
It is important to note that the City’s internal service funds (IT, Fleet, Facilities, Fringe
Benefits, Worker’s Compensation and Liability Funds) are not provided in this report. As
these funds receive their revenue from charges to the other departments and funds in
the City, it would essentially be double counting revenues and expenditures if they were
to be included in the calculations below.
Citywide, the revenues of the City are received below an evenly distributed level. This is
due to the lag time between when the economic transactio n occurs and when the City’s
revenues are received. This is typical in each report until the Comprehensive Annual
Financial Report is provided to Council after the completion of each fiscal year.
ANALYSIS
General Fund
Revenues
For FY22, the General Fund’s budgeted revenues are $61.1 million. Year-to-date
(YTD), as of January 31, 2022, $34.8 million in revenues were received, approximately
57% of the total annual amount budgeted, however the percentages received vary by
category type.
General Fund Revenues by
Category
FY22
Amended
Budget
FY22
YTD as of
January 31, 2022 % of Budget
Sales Tax 18.9$ 8.3$ 44%
Property Tax 17.3 9.1 52%
Utility Users Tax 4.2 2.9 68%
Franchise Tax 1.8 0.4 20%
Transient Occupancy Tax 1.4 0.7 50%
Business License 0.6 0.7 118%
Other Revenues 17.0 12.9 76%
Total 61.1$ 34.8$ 57%
(In Millions)
• Sales Tax – Sales tax is the General Fund’s primary source of revenue. The
sales tax funds are collected by the California Department of Tax and Fee
11.1
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Administration (CDTFA) and are typically received two months after the funds are
collected, creating a lag. The current sales tax rate in Gilroy is 9.125%, and the
City directly receives 1% of the rate as its local share. The collection amount
represents five months’ distribution. The City’s sales tax revenue continues to
show strong signs of economic recovery and based upon the most recent sales
tax data; the City’s Sales Tax Consultant is projecting the FY22 sales tax
revenue will total $20.3 million, an increase of $1.4 million over the amount
budgeted.
• Property Tax – The City’s property tax revenues are collected and remitted by
the Santa Clara County and vary in distribution amounts and intervals. As of
January 31, 2022, the City had received 52%, or $9.1 million of the budgeted
amount. The Assessor’s office meets with the cities in the County on a quarterly
basis to provide updates to property tax revenue allocation. Based on the last
quarterly meeting, the City of Gilroy is expected to receive the full budgeted
amount for FY22.
• Utility Users Tax – Utility taxes are assessed against the value of energy and
telecommunications, such as gas, electricity, steam, cable, and phone charges.
The current tax rates are 4.5% for telecommunications and 5% for gas and
electric. As of January 31, 2022, the City had received 68% of the amount
budgeted, thus staff expects the actual revenue for FY22 to slightly exceed the
budget.
• Franchise Tax – The City receives franchise tax revenue from three franchise
types - gas and electric, cable tv, and garbage/refuse. As of January 31, 2022,
the City had received 20% of the amount budgeted. The payments appear to be
delayed for the gas and electric franchise.
• Transient Occupancy Tax (TOT) – The City’s TOT revenue comes from a 9% tax
on hotel room rentals under 30 days, including RV parks in the City. The tax is
remitted quarterly and is due within one m onth after the quarter end. As of
January 31, 2022, the City had received 50% of the amount budgeted, however
not all the payments due for the quarter ending December 30, 2021 were
received as of January 31, 2022. Staff projects the actual revenue for FY22 to
slightly exceed the budget as the restrictions related to the COVID pandemic
have been lifted across the County and the State.
• Business License – As of January 31, 2022, the City received 118% of the total
amount budgeted. The business license revenue is tied to the timing of the
annual renewal of the license where the majority are renewed in the first half of
the fiscal year. However, at the close of fiscal year, an accounting treatment is
applied to defer some of the business license revenue as the term of the license
spans into the subsequent fiscal year. Therefore, business license revenue for
the year will roughly match the budget amount.
11.1
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• Other Revenues – This category consists of departmental charges for services,
general administration charges, fines and forfeitures, and intergovernmental
revenues. As of January 31, 2022, the City received 76% of the total amount
budgeted. Notable large payments include reimbursements from the State of
California for the Gilroy Fire Department’s participation in the deployment of
strike teams, as well as the revenue recognition of the first payment from the
American Rescue Plan Act (ARPA) which was deferred as a result of FY21 year-
end audit. The development related revenues for Public Works and the
Community Development Departments are included in this aggregate category,
and overall are tracking on budget, with 52% of the budgeted amount having
been received as of January 31, 2022.
Expenditures
For FY22, the General Fund’s budgeted expenditures are $56.9 million. As of January
31, 2022, the expenditures were $32.5 million, or about 57% of the total amount
budgeted.
General Fund Expenditures by
Department/Function
FY22
Amended
Budget
FY22
YTD as of
January 31, 2022
% of
Budget
Administration 2.1$ 1.2$ 57%
Recreation Transfer 1.5 0.9 58%
Finance 1.0 0.5 50%
Human Resources 1.3 0.8 58%
Police 24.1 14.3 59%
Fire 12.2 8.3 68%
Public Works 7.3 2.9 39%
Community Development 4.7 2.4 51%
Central Services 1.8 1.0 54%
Other General Government 0.9 0.4 43%
Total 56.9$ 32.5$ 57%
(In Millions)
Overall, the General Fund is tracking to the budget and most departments are within or
below targets for the period, as typically expenditures would be at 58% by the end of
January. The Fire Department has experienced an increase in overtime to maintain
adequate staffing levels across its operations while continuing the recruitment efforts to
fill vacant positions. Staff expects the Department’s expenditures to be at or within
budget by the end of the fiscal year.
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Non-General Funds
Revenues
For FY22, the non-General Fund budgeted revenues, excluding bond proceeds, are
$60.7 million. As of January 31, 2022, the revenues received were $30.5 million, or
about 50% of the total amount budgeted.
Non-General Fund Revenues
by Fund Type
FY22
Amended
Budget
FY22
YTD as of
January 31, 2022 % of Budget
Special Revenues 7.1$ 3.4$ 48%
Recreation 2.0 0.9 45%
Capital/Development 18.6 8.9 48%
Debt Service 3.9 2.2 55%
Sewer*13.8 7.2 53%
Water 14.5 7.6 52%
Agency 0.9 0.4 47%
Total 60.7$ 30.5$ 50%
*Excludes Bond Proceeds
(In Millions)
• Special Revenues – This primary source of revenue in this fund type is
intergovernmental funds in the manner of tax sharing or grants from the Federal,
State, County, and other regional governments. For the City of Gilroy, these
Special Revenues primarily provide funding for transportation (Gas Taxes,
Vehicle Registration, and Measure B), public safety (Proposition 172 sales tax,
Gang Prevention, and regional task forces) and community development (CDBG
and Housing). In aggregate, the revenues are 48% of the target for this reporting
period.
• Recreation – Recreation has received 45% of the revenues for the fiscal year.
The recreation fund receives an annual allocation of $1.5 million dollars from the
General Fund, and in addition, acquires revenues from charges for services or
grants related to recreation programs. The services provided by the Recreation
are seasonal, typically most active during spring and the summer.
• Capital/Development – Capital and Development Impact Funds are at 48% of
budget. The revenues are collected as a result of new development approval and
the required contributions to development impact funds to offset infrastructure
impacts. Although the YTD is tracking under budget, the revenue largely
depends on the size and impact of the development, and when that project may
make the contribution, therefore it is not evenly distributed during the fiscal year.
11.1
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• Debt Service – Debt service funds receive their revenues from annual property
tax levies and/or via interfund transfers from other funds. The revenues are at
55% of the budgeted amount.
• Sewer – The Sewer Fund has received 53% of its budgeted amount and is
tracking slightly below the target for the reporting period. However, the utility is
billed monthly in arrears, and therefore lag by one month. Staff expects the
actual sewer revenues to come in at the budgeted amount.
• Water – The Water Fund has received 52% of its budgeted amount and is
tracking slightly below the target for the reporting period. However, similar to the
Sewer Fund, the utility is billed monthly in arrears, therefore lag by one month.
Staff expects the actual water revenues to come in at the budgeted amount.
Expenditures
For FY22, the non-General Fund budgeted expenditures are $103.6 million. As of
January 31, 2022, the expenditures are $26 million, or about 25% of the total amount
budgeted.
Non-General Fund
Expenditures by Fund Type
FY22
Amended
Budget
FY22
YTD as of
January 31, 2022
% of
Budget
Special Revenues 9.0$ 1.6$ 18%
Recreation 2.1 1.2 56%
Capital/Development 24.5 4.3 18%
Debt Service 5.1 2.9 57%
Sewer 43.6 8.4 19%
Water 18.4 6.7 36%
Agency 0.9 0.8 90%
Total 103.6$ 26.0$ 25%
(In Millions)
• Special Revenues – The primary expenditures in this fund type are for roads and
sidewalk infrastructure, followed by grant related expenditures for the Police
Department. As of January 31, 2022, expenditures are at 18% of the annual
budgeted amount. Road and infrastructure capital projects typically commence
after the winter/rainy season therefore staff expects funds to be encumbered in
the latter part of the fiscal year for project such as the annual citywide pavement
maintenance.
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• Recreation – Unlike in the previous year, where shelter in place orders impacted
the ability to provide programs, the recreation division has been able to host
programs this fiscal year and thus has expended 56% of its budget. Council
recently awarded a contract for the Aquatic Center Operation at the Christopher
High School.
• Capital/Development – Capital and Development Impact Funds have expended a
total of 18% of the annual budgeted amount. The below target spending is a
result of low utilization of contract services, improvement projects, and
reimbursement line items within the reporting period. Further reimbursements are
expected in the remainder of the fiscal year.
• Debt Service – The debt service funds have expended 57% of their budgeted
amount. The debt service payments typically include semiannual interest
payments, and one annual principal payment.
• Sewer – The Sewer Fund has expended 19% of the total budgeted amount. Of
the total budget of $43 million, about $34 million is related to capital outlay
including the South County Regional Wastewater Authority’s Plant Expansion
project that commenced in the current fiscal year and has expended about $2.8
million YTD. The remaining budget, $10 million, is related to sewer operations
which has expended 56% of its budgeted amount through this reporting period
and is tracking slightly under the target level.
• Water – The Water Fund has expended 36% of the total budgeted amo unt. Of
the total budget of $18.4 million, about $4.5 million is related to capital outlay.
The remaining budget, $13.8 million, is related to water operations which has
expended 51% of its budgeted amount through this reporting period and is
tracking slightly under the target level.
General Fund Forecast
The City Council last received the General Fund Forecast update in November 2021
when the preliminary FY21 year-end budget report was presented. The chart below is
an updated General Fund Forecast, which incorporates City Council approved budget
amendments to the adopted biennial budget for FY22 and FY23, as well as updated
Sales Tax revenue information. The previous forecast projected a negative operating
margin from FY24 onwards. With the updated sales tax information, the forecast now
yields a net positive operating margin.
While this forecast provides a welcoming outlook, there continues to be cause for
concern due to recent developments in the economy and around the world. Further,
given that broader markets are down this year, there is a concern that CalPERS may
experience a lower than expected or even a negative return for the fiscal year. This
would directly impact future pension related costs. If CalPERS experiences a negative
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return, the impact of the strong FY21 investment returns could easily be wiped out. Staff
continues to monitor the economic conditions and will return to Council should
adjustments be warranted.
Actual Actual Amended Amended Forecast Forecast Forecast Forecast
General Fund Forecast (In Millions)FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27
Beginning Fund Balance 21.3$ 13.9$ 18.6$ 20.4$ 21.0$ 21.7$ 22.2$ 22.5$
Add: Revenues 50.7 55.9 57.2 56.9 58.2 59.9 61.5 63.1
Less: Expenditures (58.1) (51.2) (55.4) (56.3) (57.5) (59.4) (61.2) (63.0)
Operating Margin (7.4) 4.7 1.8 0.6 0.7 0.5 0.3 0.1
Ending Fund Balance 13.9$ 18.6$ 20.4$ 21.0$ 21.7$ 22.2$ 22.5$ 22.6$
One-time Contribution (ARPA)10.9
One-time Expenditures (ARPA)(1.6) (1.6) - - - -
Ending Fund Balance (with ARPA)*13.9$ 18.6$ 29.7$ 28.7$ 29.4$ 29.9$ 30.2$ 30.3$
Minimum Fund Balance Required 30%30%30%30%30%30%30%30%
Fund Balance as a % 24%36%37%37%38%37%37%36%
Fund Balance as a % (with ARPA)24%36%52%50%51%50%49%48%
*Please note the positions added back beginning FY22 utilizing the ARPA funds are an ongoing operational expenditure thus are not reflected in the one-time expenditure line item for ARPA above.
Mid-Year Adjustments
Liability Insurance – The City has experienced an increase in liability claims in the
recent years. This coupled with general increases in the insurance markets has resulted
in significant increases in insurance premiums. This has resulted actual premiums being
higher than budgeted during the biennial budget development process. Staff is
recommending a budget amendment to accommodate this increase in the City’s Liability
Insurance Fund in the amount of $350,000 for the FY22. Similarly, staff is expecting an
increase in insurance premium for FY23 as well. Staff is working with the insurance
carrier to determine the FY23 premium basis. As such, staff will make any
recommendations for the FY23 adjustments during mid -cycle budget update.
Personnel - Staff is recommending the following adjustments to select positions and has
included a related resolution updating the FY22 and FY23 position control list.
• Covert the current part-time EOC Coordinator position to a full-time position and
change the title to Emergency Services and Volunteer Coordinator
o The Recreation Division is currently tasked with managing the volunteer
program. Given the reduced service and staffing levels within the Division,
it is recommended that the recreation staff be dedicated to other
recreation programs, and the volunteer program should transit ion to the
Emergency Services function. There is typically a need for volunteers
during emergency situations. Having the volunteer program directly
managed by the EOC Coordinator would provide direct access to
volunteers during an emergency. If approved, this position would be
added to the Gilroy Management Association schedule as a full -time
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position with the new title of Emergency Services and Volunteer
Coordinator.
o To date, the position has been responsible for various grant awards which
has freed up monies previously allocated within the division budget.
• Convert the current part-time Deputy City Clerk position to a full-time Deputy City
Clerk.
o The Deputy City Clerk position was previously a full-time position which
was unfunded. Staff evaluated the position further and attempted to recruit
it in the part-time capacity but were unsuccessful. However, in considering
the current needs in the City Clerk’s office, staff is recommending that the
position be added back as full-time to support the City Clerk’s office. This
will likely result in a successful recruitment as candidates prefer a full-time
role. Furthermore, the position is needed to assist with increases in
public records requests and the upcoming election cycle.
• Covert the following two positions in the Police Department as a result of
reorganization within certain functions of the Department.
o Crime Analysis/Records/Property & Evidence Manager position to a Police
Crime Analyst.
o Convert the Senior Police Records Technician to a Police Records
Supervisor.
• Lastly, the City Council previously approved two Quality of Life Officers for a two -
year pilot program. These have also been added to the position control list for
FY22 and FY23.
Attached to this staff report is an updated resolution with the changes for Council’s
consideration and adoption.
ALTERNATIVES
There are no recommended alternatives for the mid-year budget update.
City Council could elect not to approve the adjustments to select positions as
recommended. Staff does not recommend this option.
FISCAL IMPACT/FUNDING SOURCE
The fiscal impact of the mid-year budget update has been outlined in the above report.
The fiscal impact for adjustments to select positions as recommended will be
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accommodated within the respective departments’ budgets for both fiscal years, thus no
additional appropriations are required.
The fiscal impact for the increase in insurance premiums for FY22 will result in an
increase of $350,000 in appropriations. The Liability Fund has adequate fund balance to
accommodate this increase.
Attachments:
1. Position Control Draft Resolution FY22 and FY23 Amended
2. Budget Amendment Draft Resolution - Liability Insurance
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RESOLUTION NO. 2022-XX
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY
AMENDING THE AUTHORIZED POSITION CONTROL LIST FOR THE
CITY OF GILROY FOR FISCAL YEARS 2021-2022 AND 2022-2023
WHEREAS, the business operations of the City of Gilroy are conducted by hired
professional staff; and
WHEREAS, the City of Gilroy is committed to delivering services to our residents; and
WHEREAS, the delivery of services is effectuated by providing adequate and appropriate
staffing levels to carry out the business of the City.
NOW, THEREFORE, BE IT RESOLVED that the number and classifications of both
regular and limited-term full-time positions in which persons may be employed by the City of
Gilroy during Fiscal Year 2021-2022 and Fiscal Year 2022-2023 are hereby Amended and shall
be as set forth in the attached position control list, incorporated herein by reference.
BE IT FURTHER RESOLVED that a change in the position control list shall only be
accomplished by resolution of the City Council of the City of Gilroy.
PASSED AND ADOPTED at a Regular Meeting of the City Council this 21st day of March
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
11.1.a
Packet Pg. 60 Attachment: Position Control Draft Resolution FY22 and FY23 Amended (3679 : FY22 Mid-Year Budget Update)
Resolution No. 2022-XX
Position Control List
City Council Regular Meeting | March 21, 2022
Page 2 of 5
POSITION CONTROL LIST
Below is the table showing the authorized full-time positions by department.
DEPARTMENT
AMENDED
FY22
AMENDED
FY23
ADMINISTRATION 14 14
City Administrator 1 1
City Clerk 1 1
Community Coordinator 1 1
Community Engagement Manager 1 1
Deputy City Administrator 0 0
Deputy City Clerk 1 1
Economic Development Manager 0 0
Emergency Services & Volunteer Coordinator 1 1
HCD Technician 1 1
Housing and Grants Manager 0 0
Management Analyst 1 1
Management Assistant 0 0
Office Assistant I/II 0 0
Program Administrator 1 1
Recreation Coordinator 2 2
Recreation Director 0 0
Recreation Manager 1 1
Recreation Specialist 0 0
Recreation Supervisor 0 0
Senior Management Analyst 2 2
ADMINISTRATIVE SERVICES 18 18
Administrative Services & Human Resources
Director/Risk Manager 1 1
Custodian 0 0
Equipment Mechanic 2 2
Facilities Maintenance Specialist 3 3
Facilities Superintendent 1 1
11.1.a
Packet Pg. 61 Attachment: Position Control Draft Resolution FY22 and FY23 Amended (3679 : FY22 Mid-Year Budget Update)
Resolution No. 2022-XX
Position Control List
City Council Regular Meeting | March 21, 2022
Page 3 of 5
Fleet Superintendent 1 1
Human Resources Analyst 1 1
Human Resources Assistant I\II 0 0
Human Resources Technician I 1 1
IT Applications Analyst 1 1
IT Director 0 0
IT Manager 1 1
IT Technician I/II 1 1
Management Assistant 1 1
Public Safety Systems Administrator 1 1
Senior Custodian 1 1
Senior Equipment Mechanic 1 1
Senior Human Resources Analyst 1 1
COMMUNITY DEVELOPMENT 23 23
Building Inspector I/II 3 3
Building Official 1 1
Code Enforcement Officer 2 2
Community Development Director 1 1
Customer Service Manager 1 1
Deputy Director of Community Development 0 0
Deputy Fire Marshal/Haz Mat Supervisor 1 1
Fire Marshal 0 0
GIS Coordinator/Planner 1 1
Hazardous Materials Inspector I/II 3 3
Management Analyst 1 1
Management Assistant 1 1
Office Assistant I/II 1 1
Permit Technician 2 2
Planner I/II 2 2
Planner I/II (Limited Term - Three Years) 0 0
Planning Division Manager 0 0
Planning Technician 1 1
Senior Planner 2 2
FINANCE 13 13
11.1.a
Packet Pg. 62 Attachment: Position Control Draft Resolution FY22 and FY23 Amended (3679 : FY22 Mid-Year Budget Update)
Resolution No. 2022-XX
Position Control List
City Council Regular Meeting | March 21, 2022
Page 4 of 5
Accountant II 1 1
Accounting Assistant I/II 6 6
Accounting Technician - Payroll 1 1
Accounting Technician I/II 1 1
Budget/Finance Analyst 1 1
Finance Director 1 1
Finance Manager 2 2
Revenue Officer 0 0
FIRE 44 44
Fire Administration Technician 1 1
Fire Captain 10 10
Fire Chief 1 1
Fire Division Chief 3 3
Fire Engineer 9 9
Firefighter I/II 19 19
Management Analyst 1 1
Management Assistant 0 0
POLICE 101 101
Community Services Officer 4 4
Crime Analysis/Records/Property and
Evidence Manager 0 0
Police Crime Analyst 1 1
Detention Services Officer 3 3
Management Analyst 1 1
Management Assistant 1 1
Multi-Service Officer 1 1
Office Assistant I/II 1 1
Police Captain 3 3
Police Chief 1 1
Police Corporal 8 8
Police Officer 44 44
Police Records Technician I/II 6 6
Police Sergeant 11 11
Property and Evidence Technician 1 1
11.1.a
Packet Pg. 63 Attachment: Position Control Draft Resolution FY22 and FY23 Amended (3679 : FY22 Mid-Year Budget Update)
Resolution No. 2022-XX
Position Control List
City Council Regular Meeting | March 21, 2022
Page 5 of 5
Public Safety Communications Supervisor 1 1
Public Safety Communicator 12 12
Senior Police Records Technician 0 0
Police Records Supervisor 1 1
Youth Task Force Coordinator 1 1
PUBLIC WORKS 49 49
City Engineer/Transportation Engineer 1 1
Deputy Director of Public Works 1 1
Engineer I/II 5 5
Engineer I/II (Limited Term - Three Years) 0 0
Engineering Technician/Inspector I/II/III 2 2
Maintenance Worker I/II 27 27
Management Analyst 2 2
Management Assistant 1 1
Operations Services Supervisor 3 3
Public Works Director 1 1
Senior Civil Engineer 2 2
Senior Environmental Engineer 1 1
Senior Management Analyst 0 0
Senior Maintenance Worker 3 3
CITYWIDE FULL-TIME PERSONNEL 262 262
11.1.a
Packet Pg. 64 Attachment: Position Control Draft Resolution FY22 and FY23 Amended (3679 : FY22 Mid-Year Budget Update)
RESOLUTION NO. 2022-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF GILROY AMENDING THE BUDGET FOR THE CITY
OF GILROY FOR FISCAL YEARS 2021-2022 IN THE
LIABILITY INSURANCE FUND AND APROPRIATING
PROPOSED EXPENDITURE AMENDMENTS
WHEREAS, the City Administrator prepared and submitted to the City Council a budget
for the City of Gilroy for Fiscal Years 2021-2022 and 2022-2023, and the City Council carefully
examined, considered and adopted the same on June 7, 2021; and
WHEREAS, City Staff has prepared and submitted to the City Council a proposed
amendment to said budget for Fiscal Years 2021-2022 for the City of Gilroy in the staff report
dated March 21, 2022 providing a mid-year budget update and appropriating additional funds for
the increase in liability insurance premiums for FY22; and
WHEREAS, the City Council has carefully examined and considered the same and is
satisfied with said budget amendments.
NOW, THEREFORE, BE IT RESOLVED THAT appropriations for Fiscal Years 2021-
2022 are hereby increased in the Liability Fund by $350,000.
PASSED AND ADOPTED this 21st day of March 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
11.1.b
Packet Pg. 65 Attachment: Budget Amendment Draft Resolution - Liability Insurance (3679 : FY22 Mid-Year Budget Update)
City of Gilroy
STAFF REPORT
Agenda Item Title: Council Consideration of Support, Neutrality, or Opposition to
Assembly Bill 1944 (Teleconference by Members of the Legislative
Body from Undisclosed Location)
Meeting Date: March 21, 2022
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 provide direction regarding its policy stance on Assembly Bill 1944.
POLICY DISCUSSION
Does the City Council wish to support Assembly Bill 1944 (AB 1944), oppose it, or
maintain a neutral stance towards this proposed state legislation?
BACKGROUND
City Council meetings, along with all board meetings of public sector boards, are
governed by the Ralph M. Brown Act (Brown Act), which establishes transparency and
public access to legislative bodies at public meetings. Current law for having members
of a legislative body teleconferencing for public meetings establishes certain
requirements. These requirements include:
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• The legislative body must notice each teleconference location of each member
that will be participating in the public meeting,
• Each teleconference location must be accessible to the public,
• Members of the public must be allowed to address the legislative b ody at each
teleconference location,
• The legislative body must post an agenda at each teleconference location,
• At least a quorum of the legislative body must participate from locations within
the boundaries of the local agency’s jurisdiction
During the COVID-19 Pandemic, Executive Order N-29-20 from the Governor
suspended some of these requirements in the interest of public health during a declared
emergency when meeting in person may present imminent risks to the health or safety
of attendees. The suspension of some of these requirements and some new conditions
were modified by AB 361, through to January 1, 2024.
AB 1944 seeks to make some of these changes to teleconferencing of public meetings
an ongoing option for legislative bodies.
ANALYSIS
Under AB 1944, the following changes are made to these requirements of the Brown
Act:
• If a member of a legislative body elects to teleconference from a location that is
not public, the address does not need to be identified in the notice and agenda.
• The location or member does not need to be accessible to the public when the
legislative body has elected to allow members to participate via teleconferencing.
• Requires all open and public meetings of a legislative body that elects to use
teleconferencing to provide a video stream accessible to members of the public
and an option for members of the public to address the body remotely during the
public comment period through an audio-visual or call-in option.
• Video streaming – as defined in AB 1944 – means media in which the data from
a live filming or a video file is continuously delivered via the internet to a remote
user, allowing a video to be viewed online by the public without being
downloaded on a host computer or device.
These are the changes that are currently included in AB 1944, which is attached to this
staff report. The bill currently is in the early stages. A s of the writing of this staff report
the bill remains with the Committee on Local Government. There may be subsequent
changes as the bill moves through the legislative process in the State Assembly and the
State Senate.
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ALTERNATIVES
The Council may choose to support, oppose, or be neutral towards AB 1944.
FISCAL IMPACT/FUNDING SOURCE
No fiscal impacts are anticipated associated with this action, however shou ld the City
decide to adopts provisions of AB 1944 for its’ own Council meeting, there are logistical
impacts that should be considered. These impacts will be presented to Council should
they consider adopting all or part of the AB 1944 provisions.
CONCLUSION
As the League of California Cities and other interested parties advocate for or against
this bill, the matter before the Council is to determine if the Council supports or opposes
the legislation. Should Council determine to support or oppose the le gislation, a letter of
support or opposition may be crafted if desired by Council. The letter would then be sent
to the League of California Cities and/or our locally elected state legislators regarding
AB 1944.
NEXT STEPS
Depending upon the direction of Council, staff will prepare a letter of either opposition or
support to AB 1944, to be shared with the League of California Cities and the
representatives in the state legislature that represent the City of Gilroy.
Attachments:
1. AB 1944
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11.2.a
Packet Pg. 69 Attachment: AB 1944 (3702 : AB 1944)
11.2.a
Packet Pg. 70 Attachment: AB 1944 (3702 : AB 1944)
11.2.a
Packet Pg. 71 Attachment: AB 1944 (3702 : AB 1944)
11.2.a
Packet Pg. 72 Attachment: AB 1944 (3702 : AB 1944)
11.2.a
Packet Pg. 73 Attachment: AB 1944 (3702 : AB 1944)
11.2.a
Packet Pg. 74 Attachment: AB 1944 (3702 : AB 1944)
City of Gilroy
STAFF REPORT
Agenda Item Title: Introduction and First Reading of An Ordinance of the City Council
of the City of Gilroy Adding Sections 10A.15 Through 10A.18 to the
Gilroy City Code Relating to Host Liability for Fireworks
Meeting Date: March 21, 2022
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
a) After the City Clerk reads the title of the ordinance, motion to waive further
reading of the ordinance; and
b) Introduction of an Ordinance of the City Council of the City of Gilroy adding Gilroy
City Code Sections 10A.15 Through 10A.18 to Chapter 10A to create and
enforce a host liability for illegal fireworks and illegal use of legal fireworks.
BACKGROUND
Similar to many cities throughout California the City of Gilroy has seen an increase in
the amount of illegal fireworks activity during the 4th of July period. This can become a
great risk to public safety as it impacts the volume of 911 calls for service that result in
longer response times for other critical emergencies, and at the same time place an
increased risk of fire related property loss, personal injury; or death. Fire danger from
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illegal fireworks to structures and open space vegetation is real and posts clear threat to
the public health, safety, and the general welfare of the City's residents and businesses.
The quality of life of our community members that suffer from post -traumatic stress
disorder and pets is also affected during this time of year.
The Fire and Police Departments have been tackling illegal fireworks through public
education and awareness campaigns, as well as increased presence and enforcement
activity during the July 4th period. Educational messaging reminding the public of what
types of fireworks are permitted, when and where they can be used, and how to safely
use them have been and will continue to be a main method to prevent illegal firework
usage. Structure and vegetation fires caused by firework activities are generally the
result of using fireworks that are explosive or aerially launched. These types of fireworks
are illegal in California and are often purchased outside the state or obtained via mail
order.
ANALYSIS
Most illegal firework crimes are misdemeanors as prescribed by the California Health
and Safety Code. State law requires that most misdemeanor crimes be committed in the
presence of a law enforcement officer for an enforcement action to occur. Community
members may also exercise their right to a citizen’s arrest; however, this is seldomly
used and/or proven to be an effective practice.
Educational and enforcement campaigns against setting off illegal fireworks through a
host liability ordinance have been implemented in many jurisdictions in California,
including Rancho Cordova, Citrus Heights, Woodland, Long Beach, Gardena, Kern
County, Redwood City, Pacifica, Rohnert Park, Lemoore, Folsom, and Hanford.
The proposed update to the Gilroy City Code (City Code) provides for host liability for
illegal fireworks and the illegal use of legal fireworks, allowing Fire Department, Police
Department, and Code Enforcement personnel to hold the owner or person in
possession of real property, or the host of a gathering on public or private property,
responsible for the discharge of illegal fireworks. Persons cited under the proposed host
liability ordinance can request a hearing per Chapter 6A of the City Code.
This ordinance would improve enforcement capabilities in several ways. Typically, it is
not difficult for enforcement officers to identify the specific location an aerial firework
originates. The challenge lies in identifying the specific individual user or possessor of
the firework. The "Host Liability" ordinance greatly simplifies this difficulty and al lows an
officer to focus on a particular person (or multiple persons) responsible for the property
or event. The adoption of this new ordinance accompanied with social media outreach
to inform the public of its existence and potential penalties are likely to have a significant
impact on reducing illegal fireworks. This ordinance will also aid in keeping our police
officers safe as it will reduce the number of physical encounters with community
members that may be agitated and/or under the influence.
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The ordinance is crafted in a manner to avoid a narrow application to property owners
only. It is designed to apply to any person who has the right to use, possess or occupy a
public or private property under a lease, permit, license, rental agreement, or contrac t.
Additionally, the ordinance could be applied to any person who hosts, organizes,
supervises, officiates, conducts, or accepts responsibility for a gathering on public or
private property. The ordinance does not apply to responsible parties who immediate ly
seek the City's assistance in removing noncompliant individuals.
The ordinance will also assist police officers to address the use of fireworks that may be
legal to use on July 4th, but are used during other times of the year when prohibited by
the City Code.
The fee structure and appeals process are the same as the social host liability
provisions already in the City Code (Chapter 19C). The initial fine in the draft ordinance
is $1,000 for the first violation. Every subsequent violation will carry a $2,000 fine.
ALTERNATIVES
Council may modify or reject the proposed ordinance. Rejection of the ordinance is not
recommended, as it would provide additional ability for those enforcing illegal fireworks
use to attain compliance.
FISCAL IMPACT/FUNDING SOURCE
None. The adoption of this ordinance provides additional authority for officers and City
staff to enforce against illegal fireworks but does not obligate any additional resources
to be used. The ordinance allows the planned resources and staffing to addre ss illegal
fireworks use to be more effective at attaining compliance.
CONCLUSION
Adoption of a host liability ordinance for fireworks will assist the City in attaining
compliance regarding the prohibition of illegal fireworks in Gilroy. The ordinance wil l
hold property owners, or those with possessory interest in the property (rent, lease,
permitted event, etc.), accountable for illegal use of fireworks that occur on the property.
This will provide an extra incentive for property owners and renters to ensure that the
illegal use of fireworks does not occur on their property. Any violation of ordinance will
subject to an administrative citation carrying a fine in the amount of $1,000 dollars.
NEXT STEPS
If introduced, then the ordinance will return to the Council at the next regular meeting for
adoption. The ordinance would go into effect 30 days after adoption.
PUBLIC OUTREACH
If and when adopted, community engagement efforts will be undertaken to share this
information with the community for the few months between adoption and the July 4th
holiday.
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Attachments:
1. DRAFT Ordinance - Fireworks Host Liability
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ORDINANCE NO. 2022-XX
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF GILROY ADDING GILROY CITY CODE SECTIONS
10A.15 THROUGH 10A.18 TO CHAPTER 10A TO CREATE
AND ENFORCE A HOST LIABILITY FOR ILLEGAL
FIREWORKS AND ILLEGAL USE OF LEGAL
FIREWORKS
WHEREAS, the City of Gilroy (City) may adopt regulations to protect the health, safety,
and welfare of the public under California Constitution Article XI, Section 7, and California
Government Code Section 37100, and thereby is authorized to declare what use or condition
constitutes a public nuisance; and
WHEREAS, the City has the authority under California Government Code Section
53069.4 to issue administrative citations for violations of the City’s ordinances; and
WHEREAS, the City is authorized to regulate or prohibit the sale, use, or discharge of
fireworks pursuant to California Health and Safety Code Section 12511; and
WHEREAS, pursuant to Chapter 10A, entitled Fireworks, of the Gilroy City Code (City
Code), the City currently prohibits the sale, possession and use of “dangerous fireworks” as
defined by state law, within the City and permits the discharge of safe and sane fireworks, as
defined by state law, within the City only during the hours between 12:00 AM July 1st and 12:00
AM July 5th; and
WHEREAS, the City periodically reviews its ordinances to ensure that they are achieving
their aims, while continuing to adhere to legal requirements; and
WHEREAS, the City Council of the City of Gilroy finds that the aims of City Code
Chapter 10A would be better achieved by penalizing not only those individuals who use fireworks
in violation of the City Code, but also those individuals who allow such illegal use on property
that they either own or control; and
WHEREAS, Chapter 10A of the City Code does not currently include a fireworks “host
liability” provision; and
WHEREAS, the City has experienced an increased use of illegal fireworks around the 4th
of July celebrations each year and wishes to implement an ordinance to reduce the likelihood of
injuries or property damage as a result of these illegal fireworks; and
WHEREAS, the City desires to implement a new “host liability” regulation in order to
ensure those who have possession of a residence or other property are held legally responsible for
dangerous illegal firework possession and use on that property; and
WHEREAS, the City Council finds that holding property owners responsible for illegal
firework use is necessary to protect the public health, safety, and welfare; and
11.3.a
Packet Pg. 79 Attachment: DRAFT Ordinance - Fireworks Host Liability (3647 : Fireworks Host Liability Ordinance Intro)
Ordinance No. 2022-XX
Host Liability for Illegal Fireworks
City Council Regular Meeting | April 4, 2022
Page 2 of 6
WHEREAS, the City Council desires to amend and update its City Code to reflect the
current needs of the City, and to ensure the health, safety, and welfare of the public.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GILROY DOES
HEREBY ORDAIN AS FOLLOWS:
SECTION I
The forgoing recitals are true and correct and are incorporated herein by this reference.
SECTION II
Sections 10A.15 through 10A.18 are hereby added to the Gilroy City Code to read as follows:
10A.15 Host liability.
A. The term “host” in this Section shall mean any of the following:
1. An owner of any private residential or non-residential real property in the City; or
2. Any person who has the right to use, possess, or occupy public or private property
under a lease, permit, license, rental agreement, or contract; or
3. Any person who hosts, organizes, supervises, officiates, conducts, or accepts
responsibility for a gathering on public or private property.
4. A person need not be present at the property or any such gathering resulting in the
response giving rise to the imposition of civil fines or civil fees for response costs. Prior
knowledge of the illegal use of fireworks is not a pre-requisite to a finding that any
specific individual is a responsible host as defined by this section.
B. The term “strictly liable” in this Section shall mean liability for a wrongful act regardless of a
person's intent, knowledge, negligence, or lack thereof in committing the wrongful act.
C. Any host shall be strictly liable for any unlawful ignition, explosion, discharge, use, or display
of any fireworks in violation of this Chapter on their property or at their gathering, except that
no person who has the right to use, possess, or occupy a unit in a multifamily residential
property under a lease, rental agreement, or contract shall be liable for a violation of this
Chapter occurring in the common area of the property unless the person hosts, organizes,
supervises, officiates, conducts, or accepts responsibility for a gathering at which the violation
occurs.
D. Any person having the care, custody, or control of a minor shall be strictly liable for any
unlawful ignition, explosion, discharge, use, or display of fireworks by the minor in violation
of this section.
11.3.a
Packet Pg. 80 Attachment: DRAFT Ordinance - Fireworks Host Liability (3647 : Fireworks Host Liability Ordinance Intro)
Ordinance No. 2022-XX
Host Liability for Illegal Fireworks
City Council Regular Meeting | April 4, 2022
Page 3 of 6
E. Except as provided below in subsection F, no host shall permit or allow another person on
private property, or at a gathering on public property, where the host knows or reasonably
should know that the person is engaged in a violation of this Chapter.
F. The provisions of this Section shall not apply to:
1. Conduct involving display, use, or discharge of fireworks as permitted under federal or
state law;
2. A host who initiates contact with law enforcement or fire officials to assist in removing
any person from the property or gathering in order to comply with this Chapter, if the
request for assistance is made before any other person contacts law enforcement or fire
officials to complain about the violation of this Chapter.
G. Penalties for any person cited under this section 10A.15 are exclusively set forth in sections
10A.16 through 10A.18. Section 10A.14 shall not apply to liability arising under the provisions
of this this section 10A.15 or for violation of this section 10A.15.
10A.16 Administrative penalties.
Any enforcement officer of the city, at his or her discretion, may issue an administrative citation
for a violation of section 10A.15. There is no requirement of a first warning in order for the
enforcement officer to issue this citation.
A. Administrative Penalties. A first violation of this section shall result in a citation with a
thousand-dollar ($1,000.00) penalty. A second or subsequent violations shall result in a citation
with a two thousand-dollar ($2,000.00) penalty.
B. The police shall give notice of a violation of this section by issuing an administrative citation
to any and all persons identified by the enforcement officer within thirty (30) days of the
violation. The administrative citation shall also give notice of the right to request an
administrative hearing to challenge the validity of the administrative citation and the time for
requesting that hearing pursuant to section 10A.18 below.
C. The administrative penalty prescribed in subsection A is in addition to any administrative cost
recovery fee for public safety responses that may be assessed pursuant to section 10A.17
below.
D. In the event that the person who is in violation of this section is a juvenile, then the juvenile
and the parents or guardians of that juvenile will be jointly and severally liable for the
administrative penalty.
10A.17 Administrative cost recovery fees for public safety responses.
A. In addition to any administrative penalty imposed for violation of section 10A.15, when any
violation occurs on private property and an enforcement officer at the scene determines that
there is a threat to the public peace, health, safety or general welfare, the public safety officer
shall give to the person(s) responsible warning that a second or follow up violation of this
11.3.a
Packet Pg. 81 Attachment: DRAFT Ordinance - Fireworks Host Liability (3647 : Fireworks Host Liability Ordinance Intro)
Ordinance No. 2022-XX
Host Liability for Illegal Fireworks
City Council Regular Meeting | April 4, 2022
Page 4 of 6
section on the same date or on any later date will result in his/her/their liability for the cost of
providing public safety services (i.e., fire, ambulance, police, and other emergency providers)
(hereinafter “administrative cost recovery fees.”)
B. The requirement of a first warning does not limit the ability of the enforcement officer to issue
an administrative citation, or for the imposition of administrative cost recovery fees on the
same day that the warning is given if the warning does not end the violations. The
administrative cost recovery fees shall be separate and distinct from an administrative citation
and penalty a violation described in section 10A.16 above.
1. The amount of administrative cost recovery fees includes but is not limited to those
costs set forth below, but shall not exceed five hundred dollars ($500.00) per incident;
2. The portion of the cost of salaries and benefits of law enforcement, fire or other
emergency response personnel for the amount of time spent responding to, remaining
at, or otherwise dealing with the illegal fireworks use, and the administrative costs
attributable to such response(s);
3. The cost of any medical treatment to or for any law enforcement, fire or other
emergency response personnel injured responding to, remaining at or leaving the scene
of illegal fireworks use; and
4. The cost of the use of any city equipment or property, and the cost of repairing any city
equipment or property damaged, in responding to, remaining at or leaving the scene of
illegal fireworks use.
C. In the event that the person who is in violation of this section is a juvenile, then the juvenile
and the parents or guardians of that juvenile will be jointly and severally liable for the
imposition of administrative cost recovery fees.
D. Administrative cost recovery fees will not be imposed in those situations where the responsible
host calls for emergency services for an actual emergency at the premises.
10A.18 Hearings on the imposition of administrative penalty and/or imposition of
administrative cost recovery fees; appeals.
A. Any person subject to an administrative penalty pursuant to section 10A.16, or subject to an
administrative cost recovery fees pursuant to section 10A.17, shall have the right to request an
administrative hearing within thirty (30) days of the issuance of an administrative citation for
a violation of section 10A.15 and/or the imposition of administrative cost recovery fees as
specified in this chapter, pursuant to Gilroy City Code Chapter 6A, Article II, section 6A.11
through 6A.23.
B. To request such a hearing, the person requesting the hearing shall notify the city clerk in writing
within thirty (30) days of the issuance of the administrative citation and/or imposition of
administrative cost recovery fees, pursuant to section 6A.16 of the City Code.
C. The hearing procedure shall be as set forth in section 6A.17 of the City Code.
11.3.a
Packet Pg. 82 Attachment: DRAFT Ordinance - Fireworks Host Liability (3647 : Fireworks Host Liability Ordinance Intro)
Ordinance No. 2022-XX
Host Liability for Illegal Fireworks
City Council Regular Meeting | April 4, 2022
Page 5 of 6
D. Any person aggrieved by an administrative decision of the hearing officer may obtain review
of the administrative decision by filing a petition for review with the Superior Court in Santa
Clara County in accordance with the time lines and provisions set forth in California
Government Code Section 53069.4.
E. Notwithstanding the provisions of Chapter 6A.20, the amount of an administrative penalty
and/or administrative cost recovery fees, shall be deemed a debt owed to the city by any person
found in violation of section 10A.15 and penalized as identified in section 10A.16 and/or
section 10A.17 and, if that person is a juvenile, then also his/her parents or guardians. Any
person owing such administrative penalties and/or administrative cost recovery fees shall be
liable in an action brought in the name of the city for recovery of such administrative penalty
and/or administrative fees. These recovery costs may include reasonable attorney fees incurred
in the action.
SECTION III
Except as set forth in this Ordinance, all other provisions of the Gilroy Charter and City Code shall
remain in full force and effect.
SECTION IV
This Ordinance is not intended to and shall not be construed or given effect in a manner that
imposes upon the City or any officer or employee thereof a mandatory duty of care towards persons
and property within or without the City, so as to provide a basis of civil liability for damages,
except as otherwise imposed by law.
SECTION V
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 VI
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.
11.3.a
Packet Pg. 83 Attachment: DRAFT Ordinance - Fireworks Host Liability (3647 : Fireworks Host Liability Ordinance Intro)
Ordinance No. 2022-XX
Host Liability for Illegal Fireworks
City Council Regular Meeting | April 4, 2022
Page 6 of 6
PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF GILROY this 4th
day of April, 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
11.3.a
Packet Pg. 84 Attachment: DRAFT Ordinance - Fireworks Host Liability (3647 : Fireworks Host Liability Ordinance Intro)
City of Gilroy
STAFF REPORT
Agenda Item Title: Approval of Funding Agreement with Valley Transportation
Authority - US101/10th Street - Hwy. 152 Interchange Project
Meeting Date: March 21, 2022
From: Jimmy Forbis, City Administrator
Department: Public Works Department
Submitted By: Daryl Jordan
Prepared By: Gary Heap
Gary Heap
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
Approve the funding agreement between the City of Gilroy and the Valley
Transportation Authority (VTA) for the US101/10th Street - Hwy. 152 Interchange
Project.
BACKGROUND
On November 8, 2016, a 30-year half-cent transportation sales tax measure, referred to
as 2016 Measure B, was approved by Santa Clara County voters. On January 23, 2019,
the Valley Transportation Authority (VTA) began implementation of the program.
The Measure B program areas that are relevant to Gilroy include:
• Bicycle / Pedestrian
• Caltrain Corridor Capacity Improvements
• County Expressways
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• Highway Interchanges
• Local Streets & Roads (LS&R)
• Transit Operations
The Measure B Highway Interchanges category includes three projects in the Gilroy
area: US 101/10th Street-SR 152 Ramp and Intersection Improvements, US 101/Buena
Vista Avenue Interchange, and US 101/SR 25 Interchange Improvements. While VTA is
currently managing the US 101/SR 25 Interchange Improvements Project through the
Mobility Partnership (a coalition of elected officials from Gilroy, Morgan Hill, and San
Benito County), the City of Gilroy is the lead agency on all the other projects.
The VTA had allocated $1,000,000 for the US 101/Buena Vista Interchange Project
activities for future reimbursement of costs associated with any design and pre -design
activities. On August 17, 2020, the City Council requested the VTA transfer this $1M in
pre-design funding to the US101/10th Street-SR 152 Interchange Project. The VTA
Board of Directors approved the transfer of funds between projects on April 1, 2021.
On November 24, 2021, the VTA Board of Directors approved a prioritized project list
and funding for various phases of twelve separate interchange projects within the
Measure B Program. The City of Gilroy was awarded $7,655,000 for the design and
environmental phases of the US101/10th Street-SR 152 Interchange Project. Prior to
design, the project is required to complete a Project Initiation Document (PID). This PID
is an engineering document, or technical report, that documents the project ’s scope,
cost, and schedule.
The VTA will be managing this phase of the project on behalf of the City. The City will
participate as the project sponsor and will coordinate activities through the VTA . The
attached funding agreement identifies the City’s and VTA’s roles and funding
responsibilities for this PID phase. The VTA will fund the project using the transferred
$1M Measure B Highway Interchange funds from the Buena Vista Interchange pre-
design. The City’s contribution towards this phase of the project will be $120,000 which
will be funded out of Fund 433 (Traffic Impact Fees).
Staff recommends approval of the VTA/City of Gilroy funding agreement for the PID
phase of the US101/10th Street-SR 152 Interchange Project.
ALTERNATIVES
The City Council can decide not to approve the funding agreement with VTA. This
action will not allow the project to move forward.
FISCAL IMPACT/FUNDING SOURCE
This project will be funded using $1M of Measure B Highway Interchanges funds
transferred from the Buena Vista Interchange Project. The City’s contribution towards
the project will be $120,000 which will be funded out of Fund 433 (T raffic Impact Fees).
There are adequate appropriations within the adopted biennial budget to accommodate
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the $120,000 contribution, therefore no budget amendment is needed at this time.
NEXT STEPS
Once the funding agreement is approved by Council, the VTA will p roceed with the PID
phase of the project.
Attachments:
1. VTA-City Funding Agreement
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Page 1 of 7
Gilroy – VTA US101/SR152/10th St. Interchange Improvement
FUNDING AGREEMENT
BETWEEN THE CITY OF GILROY AND
SANTA CLARA VALLEY TRANSPORTATION AUTHORITY
FOR THE US 101/SR 152/10th ST. INTERCHANGE IMPROVEMENT PROJECT
THIS AGREEMENT (“Agreement”) is made and entered into by and between the CITY OF GILROY,
a municipal corporation of the State of California ("CITY"), and SANTA CLARA VALLEY
TRANSPORTATION AUTHORITY, a public agency organized as a special district under California
law ("VTA") as of the date of the last party to sign below. Hereinafter, CITY and VTA may be
individually referred to as "Party" or collectively referred to as "Parties".
I. RECITALS
A. Whereas, CITY and VTA each recognize the need to improve traffic operations, improve
local circulation and provide Complete Streets benefits in the City of Gilroy in the County
of Santa Clara along 10th Street (Automall Parkway) between Chestnut Street and Camino
Arroyo and wish to widen 10th Street and the existing bridge over US 101 (hereinafter
referred to as “PROJECT“); and
B. Whereas, CITY and VTA would like to begin the Project Initiation Document (“PID”) phase
of the PROJECT (“Scope of work”) as the Parties continue to coordinate for additional
Project funding.
C. Whereas, on June 24, 2016, the VTA Board of Directors adopted a resolution to place a
ballot measure before the voters of Santa Clara County in November 2016 to authorize a
30- year half-cent retail transaction and use tax (“2016 MEASURE B”) for nine
transportation-related program categories; and
D. Whereas, on November 8, 2016, the voters of Santa Clara County enacted 2016 MEASURE
B for 30 years to pay for the nine transportation -related program categories; and
E. Whereas, on October 5, 2017, the VTA Board of Directors established the 2016 Measure
B Program (“PROGRAM”) and adopted the 2016 Measure B Program Category Guidelines;
and
F. Whereas, the PROGRAM includes a “Highway Interchange” program category
(“HIGHWAY IC CATEGORY”), which includes a list of eligible projects, that funds highway
projects throughout the valley; and
G. Whereas, the 2016 Measure B Program Category Guidelines for the HIGHWAY IC
CATEGORY require a minimum 10% non-2016 Measure B contribution for development
11.4.a
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Gilroy – VTA US101/SR152/10th St. Interchange Improvement
of highway interchange projects; and
H. Whereas, on August 17, 2020, the CITY approved the reallocation of the VTA’s $1,000,000
Measure B funds from the City’s US 101/Buena Vista Road Int erchange Improvement
Project to the PROJECT, and subsequently approved by VTA’s Board of Directors on April
1, 2021. The $1,000,000 Measure B IC funds reallocated from the US 101/Buena Vista
Road Interchange Improvement Project will be used to fund the PID phase of the project;
and
I. Whereas, the PROJECT is eligible to receive HIGHWAY IC CATEGORY funds; and
J. Whereas, the overall PROJECT cost is estimated to be $50,000,000.
K. Whereas, the CITY expects to contribute $7,300,000, over the lifetime of the project, from
developer contribution and traffic impact fee s as CITY's matching contribution towards
the PROJECT; and
L. Whereas, on August 5, 2021, the VTA Board of Directors established the 2016 Measure B
Highway Interchange Program Prioritization and Project Selection Process and directed
staff to develop a ranked priority list of HIGHWAY IC CATEGORY projects; and
M. Whereas, as a result of the August 5, 2021, VTA Board action, allocation of HIGHWAY IC
CATEGORY funds for the Project Approval and Environmental Document (“PA&ED”)
phase, the Development final design (“PS&E”) phase, and the right-of-way (“ROW”)
phase of the project, and/or construction phases of the PROJECT is not guaranteed and is
dependent on the results of the selection process; and
N. Whereas, CITY and VTA will coordinate and work on obtaining HIGHWAY IC CATEOGORY
funds for the PA&ED, PS&E, ROW, and construction phases of the PROJECT by submitting
an application to and complying with the 2016 Measure B Highway Interchange Program
Prioritization and Project Selection Process as identified; and
O. Whereas, this Agreement is intended to delineate the duties, and funding responsibilities
of the Parties for the PROJECT.
NOW, THEREFORE, in consideration of the mutual promises contained in this Agreement, the
Parties agree as follows:
11.4.a
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Gilroy – VTA US101/SR152/10th St. Interchange Improvement
II. AGREEMENT
1. The PROJECT. The Parties agree to construct the PROJECT pursuant to the terms and
conditions set forth herein.
2. Scope of Work. The Scope of Work is the PID phase of the PROJECT, which includes but not
limited to: (i) obtaining all necessary permits and approvals required from all governmental
or regulatory agencies and/ or entities having jurisdiction over the PROJECT; and (ii) those
planning and design activities necessary to complete the PID phase.
3. Cost of PROJECT. The anticipated total cost of the PROJECT is Fifty Million Dollars
($50,000,000).
4. CITY’S Financial Contribution. CITY agrees to contribute to the PROJECT an amount not to
exceed One Hundred Twenty Thousand Dollars ($120,000) (hereinafter “CITY’S
Contribution”) towards the development of the PID phase of the PROJECT.
5. Use of CITY’s Contribution. VTA will use the CITY’s Contribution and the interest earned
thereon for allowable costs and expenses for the sole purpose of completing the PROJECT, as
set forth in this Agreement.
Upon execution of the Agreement, VTA will invoice CITY for the CITY’s Contribution, and, upon
receipt, will deposit the CITY’s Contribution into an interest-bearing account. CITY will pay to
VTA the CITY’s Contribution within thirty (30) calendar days after receipt of invoice.
Should the PROJECT be awarded HIGHWAY IC CATEGORY funds as a result of the 2016
Measure B Highway Interchange Program Prioritization and Project Selection Process, CITY’s
Contribution and any interest earned will be considered as part of the required minimum 10%
non-2016 Measure B contribution of total PROJECT cost.
CITY’s financial contribution towards PA&ED, PS&E, ROW and Construction phases will be
subject to future negotiation and will be mutually agreed upon in a written amendment to
this Agreement.
6. City’s Role in PROJECT. During the term of the PROJECT, CITY will provide CITY staff oversight
of, and participation in, the PROJECT, and necessary and appropriate coordination with all
departments of the CITY. The CITY is not expected to take on an administrative role or hire
consultants for the PROJECT, but may inspect work on the PROJECT as desired. CITY will issue,
if required, necessary encroachment permits for the PROJECT at no cost where the work
meets the CITY’s encroachment permit requirements. After reasonable opportunity to review
11.4.a
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Gilroy – VTA US101/SR152/10th St. Interchange Improvement
PROJECT's documents and subject to the CITY’s discretion, the CITY will provide timely
reviews, comments, and approvals of PROJECT's documents submitted by VTA to CITY. CITY
will attend any Project Development Team meetings. CITY costs incurred to administer and
participate in the PROJECT as described in this Agreement will not be allowable costs against
CITY's Contribution.
7. VTA’s Role in PROJECT.
a. Tasks. VTA will perform and/or be responsible for the following tasks to complete the
PROJECT:
i. Serve as project manager for PROJECT;
ii. Coordinate with the State of California and other relevant stakeholders as
necessary to allow for review and approval of PROJECT;
iii. Complete PID work for PROJECT;
iv. Complete activities necessary for the PA&ED documents for PROJECT,
subject to future funding;
v. Complete activities necessary for the PS&E documents for PROJECT,
subject to future funding;
vi. Complete ROW activities, subject to future funding;
vii. Advertise, award, and administer construction contract, subject to future
funding;
viii. Conduct close-out activities for the PROJECT, subject to future funding.
Costs and expenses to perform these tasks will be considered allowable costs and
expenses pursuant to this Agreement.
b. Consultants. VTA may retain design consultants to perform any of the functions listed in
Section 7(a). VTA’s administrative costs to procure and manage consultant agreements as
well as the actual costs of such consultants will be allowable costs pursuant to this
Agreement.
c. Project Cost Updates. VTA will actively monitor actual PROJECT expenditures to ensure
that CITY’s Contribution is used to pay for allowable PROJECT expenditures.
If an amount exceeding CITY’s Contribution is required to complete PROJECT, VTA will
notify CITY in writing that additional funds are needed pursuant to Section II Article 5.
VTA shall not perform any work until an amendment to this Agreement is executed,
adding funds to cover PROJECT completion.
d. Other Project Management Duties. VTA will include CITY staff as an active participant
within VTA's project management process, VTA will hold periodic project development
team meetings as agreed upon by the PROJECT team to assess the progress of PROJECT
and address PROJECT issues as they arise.
11.4.a
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Gilroy – VTA US101/SR152/10th St. Interchange Improvement
8. Compliance with Governmental Requirements. VTA will comply with all laws and
regulations pertaining to the PROJECT.
Compliance with 2016 Measure B requirements. In anticipation of future 2016 Measure B
funds, VTA and CITY will comply with all 2016 Measure B requirements as identified in the
2016 Measure B Program and Program Guidelines for the HIGHWAY IC CATEGORY.
9. Term of Agreement. This Agreement will become effective upon full execution and remain
in effect through the earlier of: (i) December 31, 2030, or (ii) completion of PROJECT. If the
PROJECT is delayed beyond December 31, 2030, or cancelled completely, either Party may
terminate this Agreement which can be accomplished by either Party giving written notice to
the other Party of such termination. This term of this Agreement can be extended by
amendment in accordance with section 17 below.
10. Audit and Record Retention. CITY may audit the expenses incurred in the performance of
this Agreement. VTA will retain all records related to the PROJECT for three (3) years after
the completion of PROJECT. During this period and during the PROJECT, VTA will make these
records available to the City for inspection within a reasonable time, upon City’s written
request. VTA will repay any portion of the City Contribution used for unallowable expenses
as determined by the audit.
11. Parties’ Representatives. The General Manager of VTA, or the General Manager’s designee,
is hereby made the representative of VTA for all purposes under this Agreement. The Director
of the Public Works for CITY (“Director”), or the Director’s designee, is hereby made the
representative of CITY for all purposes under this Agreement.
12. Indemnification.
a. Neither VTA nor any officer or employee thereof shall be responsible for any damage or
liability occurring by reason of CITY’s negligence, recklessness, or willful misconduct under
or in connection with any work, authority or jurisdiction associated with the PROJECT. In
addition, CITY shall fully indemnify and hold VTA harmless from any liability imposed for
injury (as defined by Government Code §810.8) occurring by reason of CITY’s negligence,
recklessness, or willful misconduct under or in connection with any work, authority or
jurisdiction delegated to CITY under this Agreement. This provision will survive the
termination or expiration of this Agreement.
b. Neither CITY nor any officer or employee thereof shall be responsible for any damage or
liability occurring by reason of VTA’s negligence, recklessness, or willful misconduct in the
completion of any work associated with the PROJECT. In addition, VTA shall fully
indemnify and hold CITY harmless from any liability imposed for injury (as defined by
Government Code §810.8) occurring by reason of VTA’s negligence, recklessness, or
willful misconduct in the completion of the work, undertaken by VTA pursuant to this
11.4.a
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Gilroy – VTA US101/SR152/10th St. Interchange Improvement
Agreement. This provision will survive the termination or expiration of this Agreement.
13. No Waiver. The failure of either Party to insist upon the strict performance of any of the
terms of this Agreement will not be deemed a waiver of any right or remedy that either Party
may have and will not be deemed a waiver of their right to require strict performance of all
of the terms thereafter.
14. Notice. Any notice required to be given by either Party, or which either Party may wish to
give, will be in writing and served either by personal delivery or sent by certified or registered
mail, postage prepaid, addressed as follows:
To VTA: Santa Clara Valley Transportation Authority
Chief Engineering and Program Delivery Officer
3331 North First Street, Bldg. A
San Jose, CA 95134-1906
To CITY: City of Gilroy
Daryl Jordan, Public Works Director
Department of Public Works
7351 Rosanna St.
Gilroy, CA 95020
Daryl.jordan@ci.gilroy.ca.us
Notice will be deemed effective on the date personally delivered or, if mailed, three (3) days
after deposit in the United States mail.
15. Dispute Resolution. If a question arises regarding interpretation of this Agreement or its
performance, or the alleged failure of a Party to perform, the Party raising the question or
making the allegation shall give written notice thereof to the other Party. The Parties s hall
promptly meet in an effort to resolve the issues raised. If the Parties fail to resolve the issues
raised, alternative forms of dispute resolution, including mediation or arbitration, may be
pursued by mutual agreement. It is the intent of the Parti es to the extent possible that
litigation be avoided as a method of dispute resolution.
16. Entire Agreement. This Agreement constitutes the entire Agreement between the Parties
pertaining to the subject matter contained therein and supersedes all prior or
contemporaneous agreements, representations, and understandings of the Parties relative
thereto.
17. Amendments. No alteration or variation of the terms of this Agreement will be valid unless
made in writing and signed by both of the Parties hereto, and no oral understanding or
agreement not incorporated herein will be binding on any of the Parties hereto.
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Packet Pg. 93 Attachment: VTA-City Funding Agreement (3685 : Approval of Funding Agreement with VTA - US101/10th Street-Hwy. 152 Interchange Project)
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Gilroy – VTA US101/SR152/10th St. Interchange Improvement
18. Warranty of Authority to Execute Agreement. Each Party to this Agreement represents and
warrants that each person whose signature appears hereon has been duly authorized and
has the full authority to execute this Agreement on behalf of the entity that is a Party to this
Agreement.
19. Severability. If any term, covenant, condition or provision of this Agreement, or the
application thereof to any person or circumstance, shall to any extent be held by a court of
competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms,
covenants, conditions and provisions of this Agreement, or the application thereof to any
person or circumstance, shall remain in full force and effect and shall in no way be affected,
impaired or invalidated thereby.
20. Governing Law. The laws of the State of California will govern this Agreement, as well as any
dispute that might arise between VTA and CITY, without regard to conflict of law provisions.
WITNESS THE EXECUTION HEREOF the day and year first hereinabove set forth.
“CITY”
City of Gilroy
a municipal corporation
“VTA”
Santa Clara Valley Transportation Authority
a public agency
Jimmy Forbis Carolyn M. Gonot
City Administrator General Manager/CEO
Date Date
APPROVED AS TO FORM:
APPROVED AS TO FORM:
Andy Faber Susana Inda
City Attorney Assistant Counsel for VTA
11.4.a
Packet Pg. 94 Attachment: VTA-City Funding Agreement (3685 : Approval of Funding Agreement with VTA - US101/10th Street-Hwy. 152 Interchange Project)
City of Gilroy
STAFF REPORT
Agenda Item Title: Approval of Memorandum of Understanding between City of Gilroy
and the Transit Agency of Monterey County (TAMC) Regarding
Improvements Near the Gilroy Train Station
Meeting Date: March 21, 2022
From: Jimmy Forbis, City Administrator
Department: Public Works Department
Submitted By: Daryl Jordan
Prepared By: Gary Heap
Gary Heap
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
Approve the Memorandum of Understanding between City of Gilroy, the Transit Agency
of Monterey County (TAMC), and the Valley Transportation Authority (VTA) Regarding
Improvements Near the Gilroy Train Station
BACKGROUND
The Transportation Agency of Monterey County (TAMC) staff have been coordinating
with the City of Gilroy and the Santa Clara Valley Transportation Authority (VTA) for
improvements at the Gilroy train station to support the extension of passenger rail
service from Gilroy to Salinas. This Memorandum of Understanding (MOU) lays out the
responsibilities and commitments among the agencies to support this project through
completion.
11.5
Packet Pg. 95
The Monterey County Rail Extension project includes track and associated
improvements around the existing Gilroy train station, which is the end of the line for the
current Caltrain passenger rail service. In orde r to extend those train services
southward to Salinas, the station track needs to be extended across 10th Street and
Luchessa Avenue to connect with the Union Pacific mainline tracks. Other project
improvements include a relocated Caltrain equipment shed, railroad crossing
enhancements, an improved sidewalk on 10th Street, and related stormwater
improvements.
The City of Gilroy manages the public right-of-way at the 10th Street and Luchessa
Avenue crossings outside the limits of the rail crossing work tha t is taking place within
the Union Pacific right-of-way. The work outside the rail alignment includes minor
street, sidewalk, and stormwater treatment improvements which will be authorized for
construction under a separate encroachment permit to be issue d to the TAMC's
construction contractor. The City will accept and maintain those improvements after
construction.
The Santa Clara Valley Transportation Authority (VTA) owns the station area, parking
lot, and Caltrain layover yard. VTA needs to approve li cense agreements for the
construction contractor to perform the work on VTA property. VTA will also be accepting
the improvements after construction, and maintaining the yard, station area, parking lot,
and stormwater facilities.
TAMC is responsible for securing the funding, environmental clearance, stakeholder
coordination, utility relocation, and hiring the design team, right-of-way acquisition team,
construction manager, and the construction team. This project is expected to be
advertised for construction in May 2023. Construction is expected to start in August
2023 and be completed by August 2024.
ALTERNATIVES
The City Council can decide not to approve the MOU between the City, TAMC and the
VTA. This would delay the project.
FISCAL IMPACT/FUNDING SOURCE
This project is fully funded by TAMC. No City funds will be used for any of the planned
improvements. Ongoing maintenance of those improvements after construction will be
budgeted in the City’s Streets Fund.
PUBLIC OUTREACH
Public outreach for this project will be conducted through the City’s Communication and
Engagement Team.
Attachments:
1. TAMC-Gilroy-VTA MOU Final with Exhibits
11.5
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https://tamcmonterey.sharepoint.com/Shared Documents/Work Program/Rail/SALINAS RAIL EXTENSION/Gilroy/MOU/TAMC-Gilroy-VTA MOU
Final.docx
MEMORANDUM OF UNDERSTANDING
AMONG
THE TRANSPORTATION AGENCY OF MONTEREY COUNTY AND
THE CITY OF GILROY AND
THE SANTA CLARA VALLEY TRANSPORTATION AUTHORITY
REGARDING IMPROVEMENTS NEAR THE GILROY TRAIN STATION
TO SUPPORT THE EXTENSION OF PASSENGER RAIL SERVICE
FROM GILROY TO SALINAS
Effective Date: _______________
This Memorandum of Understanding (hereinafter “MOU”) is made and entered into among the
Transportation Agency for Monterey County (hereinafter “TAMC”), and the City of Gilroy
(hereinafter “the City”), and the Santa Clara Valley Transportation Authority (hereinafter “VTA”),
each a “Party” and collectively hereinafter referred to as the “Parties”, regarding the Monterey
County Rail Extension improvements near the Gilroy train station (hereinafter the “Project”).
WHEREAS, the Parties have a cooperative working relationship for planning, development, and
implementation of improvements near the Gilroy train station as part of the Monterey County
Rail Extension Project, Package 3; and
WHEREAS, through previous transportation planning studies, TAMC and the State of California
determined that they needed to invest in a system of premium transit services that could better
compete with traveling by automobile and attract new riders from the automobile modes of
travel in order to provide additional transportation capacity in the US 101 Corridor, thereby
reducing congestion, improving air quality, and saving energy in the Monterey Bay Area and San
Francisco Bay Area; and
WHEREAS, the Governor and the Legislature expressed their support and endorsement of this
Project by providing funding for the Monterey County Rail Extension project from the Traffic
Congestion Relief Act of 2000, the Proposition 116 Rail Bond, the Public Transportation Account,
and the Transit and Intercity Rail Capital Program; and
WHEREAS, to provide safe, efficient and effective transportation alternatives to the automobile,
TAMC adopted a resolution endorsing the Extension of Rail Service into Monterey County as the
Locally Preferred Alternative for the US 101 corridor on January 31, 2007; and
WHEREAS, the City recognizes the benefit and importance to the City of implementing new
passenger rail service, as expressed by support letters sent in June 2007 to the Federal Transit
Administration and in June 2013 to the California Transportation Commission; and
WHEREAS, VTA endorsed the Monterey County Rail Extension project via a transfer of
$18 million in Traffic Congestion Relief funding to the project in 2015 for improvements
pertaining to the Gilroy Caltrain station; and
11.5.a
Packet Pg. 97 Attachment: TAMC-Gilroy-VTA MOU Final with Exhibits (3595 : Approval of MOU between City and TAMC)
TAMC/GILROY/VTA MOU – DRAFT
https://tamcmonterey.sharepoint.com/Shared Documents/Work Program/Rail/SALINAS RAIL EXTENSION/Gilroy/MOU/TAMC-Gilroy-VTA MOU
Final.docx
Page 2 of 8
WHEREAS, TAMC, as the Lead Agency under the California Environmental Quality Act (CEQA),
certified the final Environmental Impact Report (EIR) on August 23, 2006, and adopted an
Addendum to the EIR on August 28, 2013, which EIR and Addendum to the EIR contemplate the
actions described herein; and
WHEREAS, the California Transportation Commission, as a responsible agency, approved
TAMC’s Final EIR on September 7, 2006; and
WHEREAS, AMBAG adopted the Monterey County Rail Extension project as an element of the
regional Metropolitan Transportation Plan/ Sustainable Communities Strategy in June 2018; and
WHEREAS, it is recognized that, with respect to some of the provisions set forth herein,
numerous actions must be taken pursuant to federal, state and local laws and regulations
before such policies can be implemented; and
WHEREAS, the purpose of this MOU is to provide a framework for the Parties’ cooperation, and
the respective duties of the Parties will be set forth in subsequent permits and agreements; and
NOW THEREFORE, the Parties hereby agree as follows:
PROJECT FEATURES AND LIMITS
1. To collaborate on the continued development of the Project located in the City of Gilroy along
the Union Pacific Railroad (UPRR) Coast Main Line Track, at Milepost (MP) 77.4, generally
bordered by US 101 to the south, East 7th Street to the north, Monterey Road to the west, and
either Alexander Street (on East 10th Street) or Automall Parkway (on Luchessa Avenue) to the
east. Affected local access roadways include Monterey Road, 10th Street, and Luchessa
Avenue (See Exhibit A, site map).
2. That the Project is intended to facilitate transportation uses, including, but not limited to, an
extension of passenger rail service from Gilroy southward toward Salinas.
3. That the full buildout of the Project, as described in the EIR and EIR Addendum, includes, but
is not limited to, the following capital improvement projects:
a. Extension of track from the Gilroy station and layover facility to connect to the UPRR
Coast Main Line Track;
b. Construction, relocation, and/or removal of tracks, turnouts, and railroad signaling
within the Gilroy layover facility;
c. Modification of the rail crossings on East 10th Street and East Luchessa Avenue;
d. Improvements to the sidewalk on East 10th Street; and
e. Site drainage and stormwater treatment facilities per the City of Gilroy National
Pollutant Discharge Elimination System (NPDES) Permit requirements.
11.5.a
Packet Pg. 98 Attachment: TAMC-Gilroy-VTA MOU Final with Exhibits (3595 : Approval of MOU between City and TAMC)
TAMC/GILROY/VTA MOU – DRAFT
https://tamcmonterey.sharepoint.com/Shared Documents/Work Program/Rail/SALINAS RAIL EXTENSION/Gilroy/MOU/TAMC-Gilroy-VTA MOU
Final.docx
Page 3 of 8
4. To the scope, character and layout of the Project, as defined by the conceptual plan dated
October 12, 2021 (Exhibit B).
5. That, within the footprint of the approved EIR, the precise limits, locations and/or alignments
of Project features may be adjusted to accommodate design refinements, specifically:
a. Right-of-way limits;
b. Utilities and subsurface constraints, if any;
c. Americans with Disabilities Act (ADA) requirements; and
d. Environmental impact mitigation, as may be required.
DESIGN STANDARDS AND COORDINATION
The Parties further agree:
6. To cooperate in good faith to develop the Project.
7. TAMC will be primarily responsible for project development, which includes the funding,
planning, any further state and any applicable federal environmental review, design, right-of-
way acquisition, and construction of the rail and other related elements of the Project (e.g.,
items identified in Paragraph 3, a-e). TAMC will collect input from the Peninsula Corridor Joint
Powers Board (Caltrain), UPRR, Amtrak, California Public Utilities Commission (CPUC), the
California High-Speed Rail Authority, and neighboring businesses, residents, property owners,
and the general public and will reflect this input, consistent with the design framework
described herein.
8. The City will be primarily responsible for maintenance of any project improvements
constructed by TAMC for the East 10th Street and East Luchessa Avenue grade crossings within
the City property or right-of-way, including, but not limited to, sidewalks, roadway pavement,
and stormwater treatment. The City is responsible for issuing encroachment permits and for
specifying any City design standards that apply to the Project. The encroachment permits shall
address TAMC’s construction contractor's indemnification obligations toward the City with
respect to construction of improvements in the City’s right of way. Following the City’s
acceptance of the improvements, TAMC and the City shall enter a separate property
acceptance agreement that shall include substantially the terms set forth in Exhibit C to this
Agreement.
9. VTA will be the lead agency for coordinating for the maintenance of any project
improvements constructed on VTA property, including, but not limited to, the Caltrain
equipment shed, track improvements, and stormwater treatment.
11.5.a
Packet Pg. 99 Attachment: TAMC-Gilroy-VTA MOU Final with Exhibits (3595 : Approval of MOU between City and TAMC)
TAMC/GILROY/VTA MOU – DRAFT
https://tamcmonterey.sharepoint.com/Shared Documents/Work Program/Rail/SALINAS RAIL EXTENSION/Gilroy/MOU/TAMC-Gilroy-VTA MOU
Final.docx
Page 4 of 8
10. The design of the Project shall be consistent with the following documents, as appropriate:
a. Peninsula Corridor Joint Powers Board (Caltrain) Draft Design Criteria – Third Edition,
August 2020
b. Union Pacific Railroad (UP) Track Standard Drawings – 2019
c. City of Gilroy Standard Details and Specifications
d. City of Gilroy’s Stormwater Management Guidance Manual for Low Impact
Development & Post-Construction Requirements - June 2015
11. That the Project must include all mitigations identified or to be identified through CEQA and
any applicable National Environmental Policy Act (NEPA) environmental documents, per the
adopted Mitigation Monitoring and Reporting Program.
12. That the City or VTA, as appropriate, shall authorize TAMC to act as the City’s or VTA’s agent
to effect necessary utility relocations in accordance with the City's or VTA’s utility franchise
agreements with utility owners.
13. That they will coordinate on related projects, including, but not limited to, the California High-
Speed Rail project, Caltrain’s service changes, and proposed changes to the VTA-owned yard
and parking lot. For greater clarity, the Parties’ commitment to cooperate is a commitment to
cooperate in good faith and not a commitment to pursue any particular course of action with
respect to such projects.
14. That TAMC is responsible for paying access permit fees but will not be assessed development
impact fees as a condition of permit approvals for the Project.
15. That Project implementation is contingent on funding availability.
GENERAL PROVISIONS
A. Terms of this MOU
Should any provision of this MOU prove to be invalid or illegal, the court is authorized and
instructed to modify the same to effectuate the original intent of the parties to the extent
possible. It is agreed and understood that the paramount purpose for which the Parties have
entered into this MOU is to express their mutual intent to cooperate in good faith to realize the
Project.
B. Effective Date
This MOU is effective on __________________________ and will remain in force until
December 31, 2025, unless extended or sooner terminated by mutual consent of the Parties.
The period of performance may be extended or shortened by written agreement of the Parties.
11.5.a
Packet Pg. 100 Attachment: TAMC-Gilroy-VTA MOU Final with Exhibits (3595 : Approval of MOU between City and TAMC)
TAMC/GILROY/VTA MOU – DRAFT
https://tamcmonterey.sharepoint.com/Shared Documents/Work Program/Rail/SALINAS RAIL EXTENSION/Gilroy/MOU/TAMC-Gilroy-VTA MOU
Final.docx
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Any Party hereto may terminate this MOU at any time by giving 180 days written notice to the
other Party.
C. Authority
Any individual executing this MOU on behalf of a Party represents and warrants hereby
that he or she has the requisite authority to enter into this MOU on behalf of such Party and
bind the party to the terms and conditions of this MOU.
D. Further Actions
Each of the Parties agrees to execute and deliver to the other Party such information
and documents, as may reasonably be required to give effect to the terms and conditions of
this MOU.
E. Modifications or Amendment
This MOU is not subject to modification or amendment except by a writing signed by all
the Parties hereto. This MOU may be executed in two or more counterparts, each of which will
be deemed an original, but all of which together shall constitute one and the same MOU.
F. Interpretations
No Party to this MOU is to be deemed the party which prepared this MOU within the
meaning of California Civil Code Section 1654
G. Disputes
In the event of a dispute arising out of the performance of this MOU, each Party must send
a written notice of dispute to the other Party. Within fifteen (15) working days of receipt of such
notice, the notified Party must respond and agree to a meeting for the purpose of negotiating a
settlement or procedure for settlement of the dispute. This is an agreement to cooperate in
good faith, and the sole remedy for a breach of any provision of this Agreement (other than a
provision for indemnification or defense) is the termination hereof.
H. Indemnification
In lieu of and notwithstanding the pro rata risk allocation that may otherwise be imposed
among the parties pursuant to Government Code Section 895.6, each party shall hold harmless,
indemnify, and defend the other parties (including their respective elected and appointed
officials, agents, and employees), from all claims, liabilities, fines or other penalties, costs, or
attorneys’ fees arising from the indemnifying party’s omissions, negligence, or willful
misconduct in the performance of this Agreement. TAMC shall also hold harmless, indemnify,
and defend the City and VTA (including their respective elected and appointed officials, agents,
11.5.a
Packet Pg. 101 Attachment: TAMC-Gilroy-VTA MOU Final with Exhibits (3595 : Approval of MOU between City and TAMC)
TAMC/GILROY/VTA MOU – DRAFT
https://tamcmonterey.sharepoint.com/Shared Documents/Work Program/Rail/SALINAS RAIL EXTENSION/Gilroy/MOU/TAMC-Gilroy-VTA MOU
Final.docx
Page 6 of 8
and employees) in any action or proceeding challenging the Project or any approval for it. For
greater clarity, TAMC and its construction contractor(s) are responsible for the construction of
the project, and after accepting improvements constructed as part of the Project, the City and
VTA are responsible for the ongoing maintenance of such improvements. Therefore, these
provisions for indemnification are not intended to make either the City or VTA liable or
responsible for any aspect of construction, excepting for their own sole and active negligence or
willful misconduct, and nothing herein is intended to make TAMC liable or responsible for any
maintenance obligation assumed by the City or VTA, excepting for its own negligence or willful
misconduct. This section shall survive the termination of the agreement.
I. Records
Each Party to this MOU must maintain books, accounts, records and data related to this
MOU in accordance with federal and/or state requirements and shall maintain those books,
accounts, records and data for three (3) years after termination of this MOU. For the duration of
this MOU, and for a period of three (3) years thereafter, each Party’s representatives and
representatives of the California Department of Transportation, the Auditor General of the
State of California shall have the right to examine these books, accounts, records, data and
other information relevant to this MOU for the purpose of auditing and verifying statements,
invoices, bills and revenues pursuant to this MOU.
J. Notices and Correspondence
Any notice required to be given to any Party must be in writing and deemed given if
personally delivered upon the other party or deposited in the United States mail, and sent
certified mail, return receipt requested, postage prepaid and addressed to the other party at
the address set forth below, or sent via email transmission to the party to which notice is
given:
If to TAMC: Todd A. Muck
Executive Director
Transportation Agency for Monterey County
55-B Plaza Circle
Salinas, CA 93901-2902
Telephone: (831) 775-0903
Email: todd@tamcmonterey.org
If to the City: Jimmy Forbis
City Administrator
City of Gilroy
7351 Rosanna Street
Gilroy, CA 95020
11.5.a
Packet Pg. 102 Attachment: TAMC-Gilroy-VTA MOU Final with Exhibits (3595 : Approval of MOU between City and TAMC)
TAMC/GILROY/VTA MOU – DRAFT
https://tamcmonterey.sharepoint.com/Shared Documents/Work Program/Rail/SALINAS RAIL EXTENSION/Gilroy/MOU/TAMC-Gilroy-VTA MOU
Final.docx
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Telephone: (408) 846-0250
Email: jimmy.forbis@cityofgilroy.org
If to VTA: Carolyn Gonot
General Manager
Santa Clara Valley Transportation Authority
3331 North First Street
San Jose, CA, 95134
Telephone: (408)321-5559
Email: Carolyn.Gonot@vta.org
K. Applicable Law
California law governs this MOU.
Attachments:
• Exhibit A: Site Map
• Exhibit B: Monterey County Rail Extension Package 3 Conceptual Plan, dated
October 12, 2021
• Exhibit C: Draft Terms of Property Acceptance Agreement to be Entered by Subsequent
Agreement between the City and TAMC
11.5.a
Packet Pg. 103 Attachment: TAMC-Gilroy-VTA MOU Final with Exhibits (3595 : Approval of MOU between City and TAMC)
TAMC/GILROY/VTA MOU – DRAFT
https://tamcmonterey.sharepoint.com/Shared Documents/Work Program/Rail/SALINAS RAIL EXTENSION/Gilroy/MOU/TAMC-Gilroy-VTA MOU
Final.docx
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IN WITNESS WHEREOF, the Parties hereto have executed this MOU as of the Effective Date and
as set forth herein:
Todd A. Muck, Executive Director Dated _______________
Transportation Agency for Monterey County
As to Form: ______________________________
Katherine A. Hansen
TAMC Counsel
Jimmy Forbis, City Administrator Dated ______________
City of Gilroy
As to Form: _____________________________
Andy Faber
Gilroy City Counsel
Carolyn Gonot, General Manager Dated ______________
Santa Clara Valley Transportation Authority
As to Form: _____________________________
Shannon Smyth-Mendoza
Sr. Assistant Counsel for VTA
11.5.a
Packet Pg. 104 Attachment: TAMC-Gilroy-VTA MOU Final with Exhibits (3595 : Approval of MOU between City and TAMC)
Existing Track
New Track
Removed Track
Gilroy RR Station
Monterey Rd.10th St.Luchessa Ave.U.S. 101
NGILROY STATION TRACK PROJECT
Salinas Rail Extension
DESCRIPTION
• New track work to connect the Gilroy yard/station
track to the Union Pacific mainline track
• Improved vehicle/pedestrian grade crossing
improvements at Luchessa Avenue and 10th Street
SERVICE PLAN
• Extends passenger rail service from Gilroy in
Santa Clara County to Salinas in Monterey County
• At least two commute-oriented round trips
every weekday at the start of service, with the
opportunity to expand
DELIVERY STATUS
• California Environmental Quality Act document
is completed
• Design is at 75%
• Scope of construction and schedule needs to be
approved by Union Pacific Railroad
• Construction could start as early as 2021
COST ESTIMATE
• $16 million
Map Not to Scale
CONTACT: Transportation Agency for Monterey County • 55-B Plaza Circle, Salinas, CA 93901 • Phone (831) 775-0903 www.tamcmonterey.org
March 2020
11.5.a
Packet Pg. 105 Attachment: TAMC-Gilroy-VTA MOU Final with Exhibits (3595 : Approval of MOU between City and TAMC)
GateGateGateAsphalt ParkingConcConcConc
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20020 0200200 205205 210210 215215 22022050.5'22.6'+/-22.4'+/-26.8'+/-58.9'+/-55.9'+/-925-974-2500
Walnut Creek, CA 94596
Suite 400
100 Pringle AvenueEAST LUCHESSA AVENUESALINAS RAIL EXTENSION - KICK START PROJECT
MONTEREY ROAD AUTOM
ALL PARKW
AY(SB) U.S.
1
0
1
(NB) U.S.
1
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1
51'+/
-EL CAMI
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1
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1 57'+/-10/12/2021
REVISED DESIGN
AS NOTEDA. GURA
A. GURA
11OF
TAMC
TRANSPORTATION AGENCY
Salinas, CA 93901
55-B Plaza Circle
FOR MONTEREY COUNTY
CHECKED:
DATE:
DESIGNED:
DRAWN:CONTRACT NO:
SCALE:
SHEET NO:
DRAWING NO:
K.P.C.
REVISED DESIGN PER CPUC COMMENTS
AND TRACK IMPROVEMENTS
PACKAGE 3 - GILROY STATION
SCHEMATIC IN NATURE
DETAILS PROVIDED ARE
COORDINATION PURPOSES ONLY.
EXHIBIT PROVIDED FOR
54.4'+/-30.6'+/-58+/-'20+/-'
- CONCEPTUAL -
FOR REVIEW/DISCUSSION
- CONCEPTUAL -
FOR REVIEW/DISCUSSION
1650+00 MP 7
8.5
1650+80.57(MP 78.67)MT1 1659+61.97EOT(MP 78.67)(E) No. 10 RH HTTOMT1 1659+49.091648+61.78PCPC 1655+99.36 1653+80.32PTPT 1658+42.48 (MP 78.67)Exist MT1 EOT 1659+65.37 1625+001625+84.03PT1645+001655+001648+16.74PCC1657+21.93PCC1658+27.04PT(MP 78.06)PC 1627+54.89Begin (E) TRK 750PtSw (E) No. 10 RH HTTO(MP 78.05)MT STA 1526+13.701650+001655+00(MP 78.49)PtSw No. 20 RH POTO= EOT 5+29.38 Trk XO2= POB 1650+56.12 Trk MT1Sta 1650+56.12 Trk 119XO1
PROPOSED TRACK / ROADWAY / STATION PLATFORMS
SHIFT TRACK
(SHADED BOX)
WORK TO BE COMPLETED BY CONTRACTOR
EXISTING TRACK
LEGEND:MP 78.5 MT2
MT1 / XO2 N0
S C A L E I N F E E T
100 200100
TRK 119
TRK MT
PROPOSED NON-UPRR TRACK (CALTRAIN OR TAMC)
EXISTING NON-UPRR TRACK (CALTRAIN OR TAMC)
TRACK REMOVAL
REMOVE NON-UPRR TRACK (CALTRAIN OR TAMC)
SHIFT NON-UPRR TRACK (CALTRAIN OR TAMC)
FORCE (UNSHADED BOX)
WORK TO BE COMPLETED BY UPRR OR OTHER
TO CARNADERO
TIMETABLE SOUTH
AND NORTH SAN LUIS OBISPO
1625+001660+00
TRK MT2
TRK MT
TRK 119
OCTOBER 12, 2021
TRK MT2
TRK MT157.1'+/-1590+00EAST TENTH STREETOLD GILROY STREETWEST 7TH STREETMONTEREY ROAD
WEST 8TH STREETWEST 9TH STREETWEST TENTH STREETT-127
MONTEREY ROADEAST 7TH STREETMT NNTRK MT
ALEXANDER STREET
HORNLEIN COURTMONTEREY ROAD
RAILROAD STREET
T
R
K
750TO CARNADERO
TIMETABLE SOUTHAND NORTH SAN LUIS OBISPO
TRK 119
TRK MT 1625+0010/12/2021 3:49:37 PM$FILES$UPRR R/W Wood, Switch Stand Outside
Install No. 20 LH POTO, 136#
Wood, Switch Stand Outside
Install No. 20 LH POTO, 136#
Shift
MT, End Track
Sta. 1642+59.48
Shift
MT, Begin Track
Sta. 1627+54.89
Shift
MT1, End Track
Sta. 1658+47.58
Wood, Switch Stand Outside
Install No. 20 RH POTO, 136#
PROPERTY BOUNDARY LIMIT
EXISTING MT1
PROPOSED XO2
SHIFT 42 TF
EXIST TRK MT
SHIFT 385 TF
TEXT
TEXT
750 HTTO
EXIST TRK
GANTRY AND 31' LONG GATE
LIGHT, BACK LIGHT, OVERHEAD
NO. 9 SIGNAL WITH FLASHING
CONSTRUCT CPUC STANDARD
CONSTRUCT 690 LF FENCE
Relocate Signal
BEGIN TRK MT1
END PROPOSED TRK XO2
END PROPOSED TRK 119
EXIST TRACK 747 HTTO
EXISTING TRK MT1
EXISTING TRK MT2
Proposed Signal
Relocate Signal Cabinet
Proposed Signal Cabinet
Track MT
Shift 865 TF
Signal
Proposed
Shift 830 TF Track MT1
REMOVE No. 9 HTTO
SOUTH LEAD TRACKS
RECONFIGURED
REMOVE 20' TRACK GATE
EXISTING TRACK T-119
600 TF TRACK SHIFT
EXISTING MT1
FLASHING LIGHT AND GATE
STANDARD NO. 9 SIGNAL WITH
REMOVE EXISTING CPUC
EXISTING TRACK 127
CHAIN LINK FENCE
INSTALL 114 LF NEW
#10 HTTO
EXISTING
EXISTING T-119
INSTALL No. 10 HTTO
INSTALL 18' DOUBLE SWING GATES
EXISTING TRK MT
INSTALL 20' TRACK GATES
CWR ON WOOD TIES
INSTALL 125 TF T-119 136#
INSTALL 300 LF CHAINLINK FENCE
PROPOSED BIORETENTION AREA
CONSTRUCT MEDIAN
AREA
BIORETENTION
PROPOSED
PEDESTRIAN SIGNAL AND 30' LONG GATE BY UPRR
OVERHEAD GANTRY, FLASHING LIGHTS,
INSTALL CPUC STANDARD NO. 9 SIGNAL WITH
PROPOSED DRIVEWAY APRON
TO BE REMOVED
EXISTING BUILDING
TO BE REMOVED
SPILL CONTAINMENT
TRANSFORMER, AND
EXISTING CABINETS,
AND SPILL CONTAINMENT
CABINETS, TRANSFORMER,
STORAGE BUILDING,
PEDESTRIAN SIGNAL AND 30' LONG GATE BY UPRR
OVERHEAD GANTRY, FLASHING LIGHTS,
INSTALL CPUC STANDARD NO. 9 SIGNAL WITH
TURNBACK TRACK T-121
CONSTRUCT 605 TF
FENCE
CHAIN LINK
LF NEW
INSTALL 657
TRK 119 1607+16.93
MP 77.67 DOT 755186C
TRK MT1 1607+17.61
EAST TENTH STREET
INSTALL 97.50 TF CONCRETE PANELS
CONSTRUCT 650 LF FENCE
STATION
EXIST GILROY
STATION PLATFORM
EXISTING 600'
Proposed Signal
Speed = 50 / 40 MPHElev. = 0.75" / 1.00"S/L = 00'00'00"°Dc = 2
12'56.19"°
Delta = 1Curve # 2Main Track 1 (Existing)
Speed = 35 / 35 MPHElev. = 0.75" / 1.00"S/L = 00'07'30"°Dc = 1
50'0.87"°Delta = 5
Curve # 1Main Track 1 (Existing)
Contractor Assemble
Remove 250 TF Trk MT
Contractor Assemble
Design Speed = 50 / 40 MPHElev. = 3/4"S/L = 50' / 0'Dc = 0°45'00" / 0°19'45.68"
R = 7,639.533' / 17,396.59
Delta = 0°57'12.53" / 1°23'32.30"
Compound Curve # 3Track 119
Design Speed = 50 / 40 MPHElev. = 3/4"
S/L = 65'Dc = 1°25'00"
R = 4,044.46'Delta = 5°25'51.37"
Curve # 2
Track 119 (Proposed)
Design Speed = 50 / 40 MPHElev. = 3/4"S/L = 65'Dc = 1°15'00"R = 4,583.72'Delta = 3°22'21.09"Curve # 4Track MT1 (Proposed)
Contractor Assemble
Remove 250 TF Trk MT1
Design Speed = 50 / 40 MPHElev. = 0.75"
S/L = 60'Dc = 1°00'00"R = 5,729.65'Delta = 3°35'14.72"Curve # 1Track MT (Shifted)
Elev. = 0.75"S/L = 50' Dc = 0°45'00"R = 7,639.53'Delta = 0°58'13.50"Compound Curve # 2Main Track (Shifted)
Design Speed = 50 / 40 MPH / 1.00"/ 00'
00'00"°20'00" / 1° / 0
/ 17,376.59' / 5,729.65'11'46.91"°54'9.13" / 0° / 0
TRK MT
TRK 119
TO MORGAN HILL
TIMETABLE NORTHAND ELMHURST
TRK MT1
Design Speed = 50 / 40 MPH
Elev. = 3/4"
S/L = 65'
D = 1°25'00"
Delta = 5°25'51.37"
Curve 2
Track 119 (Revised)
DESIGN SPEED = 50 / 40 MPH
ELEVATION = 0.75"
LS = 60'
LC = 538.12'
DELTA = 3°23'14.72"
D = 1°00'00"
CURVE # 1
TRACK MT (SHIFTED)
ELEVATION = 0.75"
S/L = 50'
Dc = 0°45'00"
R = 7,639.53'
DELTA = 0°58'13.50"
COMPOUND CURVE # 2
TRACK MT (SHIFTED)
DESIGN SPEED = 50 / 40 MPH
/ 1.00"
/ 00'
00'00"°20'00" / 1° / 0
/ 17,376.59' / 5,729.65'
11'46.91"°54'9.13" / 0° / 0
REMOVE 750 LF FENCE
T-750
T
R
K 745TR
K 747Design Speed = 50 / 40 MPH
Elev. = 3/4"
S/L = 50' / 0'
Dc = 0°45'00" / 0°19'45.68"
R = 7,639.533' / 17,396.59
Delta = 0°57'12.53" / 1°23'32.30"
Compound Curve # 3
Track 119
Design Speed = 50 / 40 MPH
Elev. = 3/4"
S/L = 65'
D = 1°15'00"
R = 4,583.72'
Delta = 3°22'21.09"
Curve 4
Track MT1 (Shifted)
STANDARD NO. 9
REMOVE EXISTING CPUC
Speed = 50 / 40 MPH
Elev. = 0.75" / 1.00"
S/L = 00'
00'00"°Dc = 2
12'56.19"°Delta = 1
Curve # 2
Main Track 1 (Existing)
UPRR R/W
UPRR R/W
UPRR R/W
UPRR R/W
T-127
T-121
T-123
MT
T-119
TRK MT
TO MORGAN HILL
TIMETABLE NORTH
AND ELMHURST
T-123
TRK 119
REMOVE EXISTING CPUC STANDARD NO. 9
REMOVE 675 LF FENCE
VTA PROPERTYVTA PROPERTY
T-119
TRK 734
UPRR R/W
UPRR R/W
UPRR R/W
VTA PROPERTY
UPRR R/W
VTA PROPERTY
T-119
UPRR R/W
UPRR R/W
1640+001655+001630+001625+001645+001635+001627+06.85PSC1640+58.20PS1626+41.85PS1652+54.96PSC1641+08.20PSC1651+89.96PS1630+90.20PCS PT 1655+89.761655+24.76PCS1646+58.08PT1630+001635+001640+00(MP 78.27)PtSw No. 20 LH POTOXO1 EOT 5+22.33MT STA 1638+73.111640+53.42PS1641+03.42PSC1630+99.77PSC1634+98.51PT1630+39.77PS1642+35.34PCCSta 1658+47.58 =1630+001635+001640+001628+79.23PCC1633+87.25PCC1646+55.06PC PCS 1642+32.86PSC 1642+59.64 =Sta 1642+59.44 MTPCC 1634+54.49 (MP 78.17)PtSw No. 20 LH POTO= POB 0+00.00 TRK XO1Sta 1633+57.62 TRK 119Operated DPSSPtSw Power Trk 119 STA 1632+90.00 (MP 78.17) 21'+/-'25'+/-'1625+001608+95.32PSC1631+55.20PT= XO2 POB 0+00.00RH POTOExist PtSw No. 20 = MT2 POB 1645+21.87MT STA 1645+21.87 (MP 78.39)30'1625+0020.1' Mi
n'26.3' MIN14.7' MIN1634+38.51PCSMATCHLINE SEE BELOWMATCHLINE SEE ABOVE101
11.5.a
Packet Pg. 106 Attachment: TAMC-Gilroy-VTA MOU Final with Exhibits (3595 : Approval of MOU between City and TAMC)
https://tamcmonterey.sharepoint.com/Shared Documents/Work Program/Rail/SALINAS RAIL EXTENSION/Gilroy/MOU/TAMC-Gilroy-VTA MOU
EXHIBIT C.docx
EXHIBIT C
DRAFT TERMS OF PROPERTY ACCEPTANCE AGREEMENT
TO BE ENTERED BY SUBSEQUENT AGREEMENT BETWEEN THE CITY AND TAMC
1. Pursuant to that certain Memorandum of Understanding among the City of Gilroy (“City”),
the Transportation Agency for Monterey County (“TAMC”), and the Santa Clara Valley
Transportation Authority (“VTA”) dated ________________, relating to the Monterey
County Rail Extension Project, Package 3, TAMC has constructed certain improvements for
the East 10th Street and East Luchessa Avenue grade crossings within the City property or
right-of-way, including, but not limited to, sidewalks, roadway pavement, and stormwater
treatment (the “Improvements”). The Improvements are depicted in plans attached hereto
as Attachment 1.
2. The City hereby accepts the Improvements, and TAMC’s construction contractor warrants
that the Improvements shall be free from material defect, wear and tear excepted, for a
period of one year from the date of this agreement. Should the City identify any material
defect in the improvements within one year of this agreement, it shall notify TAMC’s
construction contractor of the same, and TAMC’s construction contractor shall correct the
defect at its own cost and expense.
3. From the date of this agreement, TAMC is no longer responsible for ordinary maintenance
of the Improvements. The City shall hold harmless, indemnity, and defend TAMC and its
elected and appointed officials, agents, and employees from any and all claims of damage
or other liability arising from any failure to maintain the Improvements, including, without
limitation, any claim arising for damages due to damage to any public or private property or
because of the death or bodily injury of any person
4. From the date of this agreement, City shall maintain the stormwater treatment
Improvements to standard and consistent with the City’s municipal stormwater
improvement.
5. For one year from the date of this agreement, TAMC shall hold harmless, indemnify, and
defend the City and its elected and appointed officials, agents, and employees from any and
all claims of damage or other liability arising from any defect in the construction of the
Improvements, including, without limitation, any claim arising for damages due to damage
to any public or private property or because of the death or bodily injury of any person.
6. The indemnification and defense obligations set forth herein are intended in lieu of, and
notwithstanding, the pro rata risk allocation that may otherwise be imposed between the
Parties pursuant to Government Code Section 895.6, or any other statute, regulation or rule
that may otherwise affect the terms of this agreement.
7. [Insert any other terms negotiated between the parties here.]
11.5.a
Packet Pg. 107 Attachment: TAMC-Gilroy-VTA MOU Final with Exhibits (3595 : Approval of MOU between City and TAMC)