06/20/2022 City Council Regular Agenda Packet
June 16, 2022 6:45 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, JUNE 20, 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 a nd 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 delivered to the City Council at, or prior to, the public
hearing. Please take notice that the time within which to seek judicial review of any final
administrative determination reached at this meeting is governed by Section 1094.6 of the
California Code of Civil Procedure.
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
City Council Regular Meeting Agenda
06/20/2022 Page2 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 C ity 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 - Parks Make Life Better! Month
2.1.2. Proclamation - 50th Anniversary of Title IX
2.1.3. Retirement Proclamation - Randy Decker
2.1.4. Retirement Proclamation - Tracy Kester
2.1.5. Retirement Proclamation - Nestor Quinones
City Council Regular Meeting Agenda
06/20/2022 Page3 3. COMMISSION INTERVIEWS
3.1. Interviews for Open Seats on Boards, Commissions and Committees
with Terms Expired or Vacant as of June 10, 2022 for Future
Appointment July 5, 2022
1. Staff Report: Thai Pham, City Clerk
2. Public Comment
3. Possible Action:
Interview candidates for open seats on City Boards, Commissions, and
Committees vacant as of March 21, 2022.
4. PRESENTATIONS TO THE COUNCIL
4.1. Presentation by Frontier Communications Concerning Gilroy Fiber-
optic Upgrades
4.2. 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 Cler k. 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 t o 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 meeting record. Items
received after the 1:00pm deadline will be provided to the City Council as soon as
practicable. Written material provided by public members under this section of the
agenda will be limited to 10 pages in hard copy. An unlimited amount of material
may be provided electronically.
5. COUNCIL CORRESPONDENCE
5.1. City Council Member Meeting Attendance
5.2. Correspondence from Santa Clara Valley Transportation Authority
5.3. LAFCO Budget for FY 2022-2023
City Council Regular Meeting Agenda
06/20/2022 Page4 6. REPORTS OF COUNCIL MEMBERS
Council Member Bracco – Gilroy Sister Cities Association (alternate), Santa Clara Co.
Library JPA, SCVWD Joint Council-SCRWA-Board Water Resources Committee, South
County Regional Wastewater Authority Board, Street Naming Committee
Council Member Armendariz – ABAG (Alternate), CalTrain Policy Group, Gilroy
Downtown Business Association Board (alternate), Gourmet Alley Ad Hoc Committee,
Historic Heritage Committee, Santa Clara Co. Library JPA (alternate), Santa Clara
Valley Habitat Agency Implementation Board, Silicon Valley Clean Energy Authority
JPA Board (Alternate), Street Naming Committee, VTA Committee for Transit
Accessibility (Alternate)
Council Member Marques – Gilroy Downtown Business Association Board, Gilroy
Gardens Board of Directors, Gourmet Alley Ad Hoc Committee, H istoric Heritage
Committee (Alternate), Santa Clara Valley Habitat Agency Governing Board, Santa
Clara Valley Habitat Agency Implementation Board, South County Regional Wastewater
Authority (Alternate)
Council Member Hilton – Gilroy Economic Development Partnership, Silicon Valley
Clean Energy Authority JPA Board, South County United for Health, Visit Gilroy
California Welcome Center Board
Council Member Tovar – Economic Development Corporation Board, Gourmet Alley
Ad Hoc Committee, Recycling and Waste Reduction Commission, Santa Clara Co.
Expressway Plan 2040 Policy Advisory Board, SCVWD Water Commission (alternate),
South County Joint Recycled Water Advisory Committee, South County Regional
Wastewater Authority Board, Street Naming Committee, South County Youth Task
Force Policy Team (alternate), VTA Committee for Transit Accessibility
Council Member Leroe-Muñoz – ABAG, CalTrain Policy Group (alternate), Cities
Association of Santa Clara County Board of Directors, Economic Development
Corporation Board, Gilroy Youth Task Force, SCVWD Water Commission, Silicon
Valley Regional Interoperability Authority Board, South County Youth 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 Reg ional Wastewater Authority
Board, VTA Board of Directors Alternate, VTA Mobility Partnership, VTA Policy Advisory
Committee, VTA South County City Group
7. FUTURE COUNCIL INITIATED AGENDA ITEMS
City Council Regular Meeting Agenda
06/20/2022 Page5 8. 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.
8.1. City Council - Regular Meeting - Jun 6, 2022 6:00 PM
8.2. City Council - Special Meeting - Study Session - Jan 11, 2021 6:00 PM
8.3. City Council - Special Meeting - Feb 20, 2021 8:00 AM
8.4. City Council - Special Meeting - Study Session - Mar 8, 2021 6:00 PM
8.5. City Council - Special Meeting - Study Session - Sep 14, 2021 6:00
PM
8.6. Adopt a Resolution of the City Council of the City of Gilroy Setting
the Tax Rate for Fiscal Year 2022-2023 for the Gilroy Community
Library Project Bonds
8.7. Amendment to the Agreement with Cal-West Lighting and Signal
Maintenance, Inc. for Traffic Signal and Streetlight Maintenance
8.8. Approval of the Fourth Amendment to the Franchise Agreement
Between the City of Gilroy and Recology South Valley for Solid
Waste Management Services
9. BIDS AND PROPOSALS
9.1. Approve the Purchase of a Vactor 2100i Combination Single Engine
Sewer Cleaner from Owen Equipment in an amount not to exceed
$594,156.16.
1. Staff Report: Daryl Jordan, PE, Public Works Director
2. Public Comment
3. Possible Action:
Approve the purchase of a Vactor 2100i Combination Single Engine Sewer
Cleaner from Owen Equipment in an amount not to exceed $594,156.16 using
the cooperative purchasing agreement with Sourcewell (formerly known as the
National Joint Powers Alliance).
City Council Regular Meeting Agenda
06/20/2022 Page6 10. PUBLIC HEARINGS
10.1. Acceptance of the Public Health Goal Report for the Gilroy Drinking
Water System in Accordance with California Health and Safety Code
116470
1. Staff Report: Daryl Jordan, PE, Public Works Director
2. Disclosure of Ex-Parte Communications
3. Open Public Hearing
4. Close Public Hearing
5. Possible Action:
Accept the 2019-2021 Public Health Goal Report for the Gilroy Drinking Water
System in accordance with California Health and Safety Code 116470.
11. UNFINISHED BUSINESS
11.1. Council Adopt a Resolution of the City Council of the City of Gilroy
Calling and Giving Notice of, on Its Own Motion, the Submission to
the Electors of the City of Gilroy at a Special Municipal Election, to
be Consolidated with the Statewide General Election on November 8,
2022, a Ballot Measure Proposal to Amend Sections 1109 and 1111 of
the City of Gilroy City Charter to Modify Construction Contract
Procurement and the Bidding Process
1. Staff Report: Jimmy Forbis, City Administrator
2. Public Comment
3. Possible Action:
Council:
a) Discussion and consideration of a Council-sponsored charter amendment
for the November 8, 2022 statewide general election;
b) If Council wishes to proceed with a charter amendment, adopt a resolution
of the City Council of the City of Gilroy calling and giving notice of, on its
own motion, the submission to the electors of the City of Gilroy at a
special municipal election, to be consolidated with the statewide general
election on November 8, 2022, a ballot measure proposal to amend
sections 1109 and 1111 of the City of Gilroy City Charter to modify
construction contract procurement and the bidding process;
c) Council discussion and consideration of whether to permit rebuttal
arguments and authorize the City Council or any member or members of
the City Council to submit a rebuttal argument in favor of the City measure
in the November 8, 2022 Voter’s Sample Ballot, pursuant to Elections
Code Section 9285, to be incorporated in the resolution calling the
election;
d) Council discussion and consideration of whether to authorize the City
Council or any member or members of the City Council to submit an
argument in favor of the City measure on the November 8, 2022 Voter's
Sample Ballot, pursuant to Elections Code Section 9282, to be
incorporated in the resolution calling the election; and
City Council Regular Meeting Agenda
06/20/2022 Page7 e) Council discussion and consideration of whether to direct the City Clerk to
transmit a copy of the measure to the City Attorney to prepare an impartial
analysis, pursuant to Elections Code Section 9280.
11.2. Approval of Third Extension to the Exclusive Negotiating Agreement
with Sharks Sports & Entertainment, LLC to Fully Assess the
Potential of Having the Sharks Organization Operate a New Indoor
Recreational Facility
1. Staff Report: Jimmy Forbis, City Administrator
2. Public Comment
3. Possible Action:
Approve the Third Amendment to Exclusive Negotiating Rights Agreement with the Sharks Sports &
Entertainment, LLC, and authorize the City Administrator to execute the Amendment
11.3. Gilroy Ice Center Non-Binding Term Sheet Approval
1. Staff Report: Jimmy Forbis, City Administrator
2. Public Comment
3. Possible Action:
Approve a non-binding term sheet with Sharks Sports & Entertainment, LLC
(SSE) for the development of a two sheet ice facility at the Gilroy Sports Park.
11.4. Introduction of the Comprehensive User Fee Study and First Reading
of an Ordinance Amending Sections of Chapter 7 of the Gilroy City
Code Entitled "Cost Comparison System for Fee and Service Charge
Revenue"
1. Staff Report: Harjot Sangha, Finance Director
2. Public Comment
3. Possible Action:
1. Receive 2022 Comprehensive User Fee Study report;
2. After the City Clerk reads the title of the ordinance, motion to waive further
reading of the ordinance; and
b) Introduce an Ordinance of the City Council of the City of Gilroy amending
sections 7.3, 7.4, and 7.5 of Chapter 7 of the Gilroy City Code entitled "Cost
Comparison System for Fee and Service Charge Revenue".
City Council Regular Meeting Agenda
06/20/2022 Page8 12. INTRODUCTION OF NEW BUSINESS
12.1. 2022 Fireworks Public Safety Mitigation Fees
1. Staff Report: Jim Wyatt, Fire Chief
2. Public Comment
3. Possible Action:
A Resolution of the City Council of the City of Gilroy Setting the Annual Fireworks
Service Fee for Impacts on City Fire and Police Services Related to the Sale and
Use of Safe and Sane Fireworks Pursuant to Gilroy City Code Section 10A.
12.2. Approval of the Third Operating Memorandum to the Glen Loma
Ranch Development Agreement
1. Staff Report: Melissa Durkin, Planner II
2. Public Comment
3. Possible Action:
Approve the Third Operating Memorandum to the Glen Loma Ranch
Development Agreement.
13. CITY ADMINISTRATOR'S REPORTS
14. CITY ATTORNEY'S REPORTS
15. CLOSED SESSION
16. ADJOURNMENT
FUTURE MEETING DATES
JULY 2022
5* Regular Meeting - 6:00 p.m.
AUGUST 2022
1* Regular Meeting - 6:00 p.m.
15* Regular Meeting - 6:00 p.m.
SEPTEMBER 2022
12* Regular Meeting - 6:00 p.m.
19* Regular Meeting - 6:00 p.m.
OCTOBER 2022
3* Regular Meeting - 6:00 p.m.
17* Regular Meeting - 6:00 p.m.
NOVEMBER 2022
7* Regular Meeting - 6:00 p.m.
21* Regular Meeting - 6:00 p.m.
DECEMBER 2022
5* Regular Meeting - 6:00 p.m.
*Meeting is webstreamed
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·WHEREAS, the City of Gilroy joins cities and counties throughout
California in promoting July as Parks Make Life Better!
Month; and
WHEREAS, Parks and Recreation promotes physical, emotional, and
mental health and wellness through organized and self-
directed fitness, play, and activity; and
WHEREAS, Parks and Recreation creates memorable experiences
through youth sports and enrichment activities, teen
centers and programs, senior activity centers, adult fitness
and enrichment programs, free community events, and
beyond;and
WHEREAS, Parks and Recreation fosters social cohesiveness in
communities by celebrating diversity, providing spaces to
come together peacefully, modeling compassion,
promoting social equity, connecting social networks, and
ensuring all people have access to its benefits; and
WHEREAS, Parks and Recreation supports safe, vibrant, attractive,
progressive communities that make life better through
positive alternatives offered in their recreational
opportunities; and
PARKS MAKE LIFE BETTER! MONTH
7/4a:iA /4 :·~
Marie Blankley
Attested to by:
~-~
Thai Nam Pham
Citv Clerk
2.1.1
Packet Pg. 9 Communication: Proclamation - Parks Make Life Better! Month (Proclamations, Awards, and Presentations)
2.1.2
Packet Pg. 10 Communication: Proclamation - 50th Anniversary of Title IX (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 June 10, 2022
for Future Appointment July 5, 2022
Meeting Date: June 20, 2022
From: Jimmy Forbis, City Administrator
Department: City Clerk
Submitted By: Thai Pham, City Clerk
Prepared By: Thai Pham, City Clerk
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:
3.1
Packet Pg. 11
• Arts and Culture Commission – One (1) seat with term expiring 12/31/2024 and
one (1) seat with term expiring 12/31/2025
• Open Government Commission – One (1) seat with term expiring 12/31/2025
• Parks & Recreation Commission – One (1) seat with term expiring 12/31/2025
• 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
June 10, 2022 at 5 p.m., staff received two (2) applications for the following
commission:
Diego Martinez and Jessica Irwin for Open Government 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 July 5, 2022 Regular Meeting.
Attachments:
1. Application - Open Government Commission - Martinez, Diego
2. Application - Open Government Commission - Irwin, Jessica
3.1
Packet Pg. 12
CAUTION: This email originated from an External Source. Please use proper judgment and caution when opening
attachments, clicking links, or responding to this email.
From:noreply@civicplus.com
To:City Clerk
Subject:EXTERNAL - Online Form Submittal: City of Gilroy Application for Board, Commission and Committee Appointment
Date:Tuesday, May 3, 2022 1:56:45 PM
City of Gilroy Application for Board, Commission and Committee
Appointment
City of Gilroy Application for Board, Commission, and Committee Appointment
All Commission, Board and Committee applications are a public record.
First Name Diego
Last Name Martinez
Board/Commission/Committee
of Interest
Open Government Commission
Are you a registered voter
within the City limits?
Yes
Physical Address 1
City, State, Zip
Phone Number
E-mail Address
Alternate Phone Number Field not completed.
List your qualifications for this
appointment:
I am currently in my sophomore year at Gavilan
College where I am majoring in political science. I have
great computer literacy, leadership, dependability,
research skills, communication and teamwork, and I
am also fluent in Spanish as my second language.
List any service to the
community including any prior
appointments.
I have volunteered at goodwill and at St. Mary’s food
pantry back in 2016-2017. I have also helped create
petitions for action at the apartments that I live at.
What are you goals while
serving on this
Board/Commission/Committee?
I hope to help the community grow as this is where I
have lived all of my life. I aim to gain experience in my
field of study, which is political science, and to use that
experience to come back in the future to run for office
3.1.a
Packet Pg. 13 Attachment: Application - Open Government Commission - Martinez, Diego (3822 : Commission Interviews)
in Gilroy. I wish to serve with complete eloquence.
Why are you the most qualified
to serve on this
Board/Commission/Committee?
I am the most qualified to serve, as I believe I will be
the most passionate about serving my city and to help
the people of this great community. I will be the most
dependable out of everyone, and will strive to create a
great experience for myself and my peers.
Declaration of Residency I Understand
Email not displaying correctly? View it in your browser.
3.1.a
Packet Pg. 14 Attachment: Application - Open Government Commission - Martinez, Diego (3822 : Commission Interviews)
CAUTION: This email originated from an External Source. Please use proper judgment and caution when opening
attachments, clicking links, or responding to this email.
From:noreply@civicplus.com
To:City Clerk
Subject:EXTERNAL - Online Form Submittal: City of Gilroy Application for Board, Commission and Committee Appointment
Date:Saturday, June 4, 2022 1:27:00 PM
City of Gilroy Application for Board, Commission and Committee
Appointment
City of Gilroy Application for Board, Commission, and Committee Appointment
* All Commission, Board and Committee applications are a public record.
First Name Jessica
Last Name Irwin
Board/Commission/Committee
of Interest
Open Government Commission
Are you a registered voter
within the City limits?
Yes
Physical Address 1
City, State, Zip
Phone Number
E-mail Address
Alternate Phone Number Field not completed.
List your qualifications for this
appointment:
Professionally, I have
- 10+ years of security experience,
- 15 years of experience with strategic
communications, community management, and
community outreach with a focus on open source
technology and open access/open information.
As my primary expertise is in security and risk
management, I have:
- created data classification and data management
systems and policies,
- built and audited processes and systems in highly
regulated environments for sharing data and
information.
3.1.b
Packet Pg. 15 Attachment: Application - Open Government Commission - Irwin, Jessica (3822 : Commission Interviews)
In addition to keeping an eye on data quality and data
integrity, I have also:
- lead the communications and coordination for sharing
sensitive or important information with audiences large
and small after notable security breaches, legal action,
or and other high-profile incidents
- collaborated with several other entities and
organizations (local, state, and federal enforcement,
policy makers, private companies) to ensure that any
information being shared is not abused or misused.
List any service to the
community including any prior
appointments.
Before the COVID-19 pandemic hit, I spent 7 years
organizing and leading cybersecurity and privacy
trainings for librarians, educators, and students.
I have delivered cybersecurity and privacy trainings to
students of all ages — elementary school to college
student.
I have also done security trainings for lawyers, judges,
and public officials who are frequently the target of
harassment or threats.
What are you goals while
serving on this
Board/Commission/Committee?
I have 3 main goals in community participation:
1) To actively invest in my time, talents, and skills in
my community here in Gilroy.
2) To help Gilroy reach its full potential by doing my
part to help build trust with open government initiatives.
3) To share cutting-edge professional knowledge that
helps the city do more despite resource drain and
budget cuts, potentially in cost-effective ways —
especially if technology can help!
Why are you the most qualified
to serve on this
Board/Commission/Committee?
Professionally, my work history and day-to-day
experience give me deep understanding and fluency in
balancing the need for openness with the need for data
privacy and discretion. I am also versed in educating
people about why some information cannot or should
not be shared, and actively demonstrating the various
policies and standards (municipal, state, federal) that
various organizations and entities have to comply with
in order to dispell disinformation or rumors from
becoming an issue. Having collaborated with various
law enforcement agencies and regulators (local, state,
federal, and international) during active investigations
and incidents, I understand the nuance of articulating
policy and making decisions around information
sharing, especially when there is significant pressure
from external groups for radical transparency (e.g.
putting it all out there without thinking about how
3.1.b
Packet Pg. 16 Attachment: Application - Open Government Commission - Irwin, Jessica (3822 : Commission Interviews)
information could be weaponized to cause harm to a
community or individuals).
On a personal level, I am deeply motivated to
contribute to my community in meaningful ways to
make it better and stronger for everyone.
Declaration of Residency I Understand
Email not displaying correctly? View it in your browser.
3.1.b
Packet Pg. 17 Attachment: Application - Open Government Commission - Irwin, Jessica (3822 : Commission Interviews)
City of Gilroy
MEMORANDUM
Date: June 20, 2022
To: Honorable Mayor and City Council Members
From: Thai Nam Pham, City Administrator
Subject: 2022 Council Member Attendance
Dear Honorable Mayor and Council Members,
Attached, please find City Council Member attendance to the Council Meetings beginning
from January 4, 2021 to June 6, 2022.
Respectfully Submitted
Thai Nam Pham, City Clerk
5.1
Packet Pg. 18 Communication: City Council Member Meeting Attendance (COUNCIL CORRESPONDENCE)
Present Absent Present Absent Present AbsentMarie Blankley32 0 13 0 45 0Rebeca Armendariz29 3 11 2 40 5Dion Bracco32 0 13 0 45 0Zach Hilton26 6 8 5 34 11Peter Leroe‐Muñoz30 2 13 0 43 2Carol Marques32 0 12 1 44 1Fred Tovar31 1 12 1 43 22021 2022 (YTD) TOTALCity of Gilroy City Council Member Attendance to Council Meetings(2021 ‐ 2022 YTD)5.1Packet Pg. 19Communication: City Council Member Meeting Attendance (COUNCIL CORRESPONDENCE)
2022 Calendar Year Attendance1/10/2022 Regular1/24/2022 Regular2/7/2022 Regular2/15/2022 Special2/28/2022 Regular3/7/2022 Regular3/21/2022 Regular4/4/2022 Regular4/18/2022 Regular4/25/2022 Special5/2/2022 Regular5/16/2022 Regular06/06/2022 Regular6/20/2022 RegularMarie BlankleyPPPPPPPPPPPPPRebeca ArmendarizPPPPPPPPAPPPADion Bracco PPPPPPPPPPPPPZach Hilton PAPPPAPPAAPPAPeter Leroe‐MuñozPPPPPPPPPPPPPCarol MarquesPPPPPPPPPAPPPFred Tovar PPPPPAPPPPPPP7/5/2022 Regular8/1/2022 Regular8/15/2022 Regular9/12/2022 Special9/19/2022 Regular10/3/2022 Regular10/17/2022 Regular11/7/2022 Regular11/21/2022 Regular12/5/2022 SpecialMarie BlankleyRebeca ArmendarizDion BraccoZach HiltonPeter Leroe‐MuñozCarol MarquesFred TovarMarie BlankleyRebeca ArmendarizDion BraccoZach HiltonPeter Leroe‐MuñozCarol MarquesFred Tovar13 012 112 111 213 085Total 2022 Present YTD Total 2021 Absent YTD13 05.1Packet Pg. 20Communication: City Council Member Meeting Attendance (COUNCIL CORRESPONDENCE)
2021 Calendar Year Attendance1/4/2021 Regular1/11/2021 Special Study Session1/25/2021 Regular2/1/2021 Regular2/10/2021 Special2/22/2021 Special3/01/2021 Regular3/8/2021 Specal Study Session3/15/2021 Regular3/29/2021 Special Study Session04/05/2021 Regular4/19/2022 Regular05/03/2021 Regular05/10/2021 Special5/17/2021 Regular5/24/2021 SpecialMarie BlankleyPPPPPPPPPPPPPPPPRebeca ArmendarizPPPPPPPPPPPPPPPPDion Bracco PPPPPPPPPPPPPPPPZach Hilton PPPPPPPPPPPPPAPPPeter Leroe‐MuñozPPPPPPPAPPPPPPPPCarol MarquesPPPPPPPPPPPPPPPPFred Tovar PPPPPAPPPPPPPPPP06/07/2021 Regular06/21/2021 Regular07/01/2021 Regular08/02/2021 Regular08/16/2021 Regular8/23/2021 Special09/13/2021 Regular9/14/2021 Special09/20/2021 Regular10/04/2021 Regular10/18/2021 Regular10/25/2021 Special11/1/2021 Special11/15/2021 Special12/06/2021 Special12/13/2021 SpecialMarie BlankleyPPPPPPPPPPPPPPPPRebeca ArmendarizPPPPPPPAPPPPAPAPDion Bracco PPPPPPPPPPPPPPPPZach Hilton PPPPAPPAAPPPAPPAPeter Leroe‐MuñozPPPAPPPPPPPPPPPPCarol MarquesPPPPPPPPPPPPPPPPFred Tovar PPPPPPPPPPPPPPPPMarie BlankleyRebeca ArmendarizDion BraccoZach HiltonPeter Leroe‐MuñozCarol MarquesFred Tovar031 1Total 2021 Present Total 2021 Absent32 029 332 026 630 2325.1Packet Pg. 21Communication: City Council Member Meeting Attendance (COUNCIL CORRESPONDENCE)
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Packet Pg. 22 Communication: Correspondence from Santa Clara Valley Transportation Authority (COUNCIL CORRESPONDENCE)
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Packet Pg. 23 Communication: Correspondence from Santa Clara Valley Transportation Authority (COUNCIL CORRESPONDENCE)
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Packet Pg. 24 Communication: Correspondence from Santa Clara Valley Transportation Authority (COUNCIL CORRESPONDENCE)
June 6, 2022 TO: County Executive, Santa Clara County City Managers, Cities in Santa Clara County District Managers, Independent Special Districts in Santa Clara County FROM: Neelima Palacherla, LAFCO Executive Officer
SUBJECT: LAFCO BUDGET FOR FISCAL YEAR 2022-2023 ____________________________________________________________________________________________________
At its public hearing on June 1, 2022, the Local Agency Formation Commission (LAFCO) adopted its Final Budget for Fiscal Year 2022-2023. The adopted Final Budget and the staff reports are attached for your information. Pursuant to the apportionment method specified in Government Code §56381 and §56381.6, the County Auditor-Controller will apportion LAFCO’s net operating expenses to the cities, the County and the independent special districts based on the Final Budget adopted by LAFCO. Please expect to receive an invoice from the County Controller’s Office in the next few days. Should you have any questions regarding the LAFCO budget or cost apportionment, do not hesitate to contact me at (408) 993-4713 / neelima.palacherla@ceo.sccgov.org. Thank you. Attachments: Fiscal Year 2022-2023 Budget approved by LAFCO on June 1, 2022 June 1, 2022 Staff Report: Final LAFCO Budget for FY 2022-2023 April 6, 2022 Staff Report: Proposed Work Plan and Budget for FY 2022-2023 cc: Board of Supervisors, Santa Clara County City Council Members, Cities in Santa Clara County Independent Special District Board Members Santa Clara County Cities Association Santa Clara County Special Districts Association
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Packet Pg. 25 Communication: LAFCO Budget for FY 2022-2023 (COUNCIL CORRESPONDENCE)
FINAL LAFCO BUDGET
FISCAL YEAR 2022- 2023
ITEM #TITLE
APPROVED
BUDGET
FY 2022
ACTUALS
Year to Date
2/28/2022
PROJECTIONS
Year End
FY 2022
FINAL
BUDGET
FY 2023
EXPENDITURES
Object 1: Salary and Benefits $844,239 $412,232 $691,414 $810,419
Object 2: Services and Supplies
5255100 Intra-County Professional $10,000 $0 $10,000 $10,000
5255800 Legal Counsel $75,896 $48,562 $75,000 $78,326
5255500 Consultant Services $150,000 $25,239 $100,000 $150,000
5285700 Meal Claims $750 $56 $100 $750
5220100 Insurance $8,500 $8,590 $8,590 $9,237
5250100 Office Expenses $5,000 $1,098 $2,000 $5,000
5270100 Rent & Lease $47,784 $35,838 $47,784 $53,182
5255650 Data Processing Services $22,048 $10,665 $22,048 $28,038
5225500 Commissioners' Fee $10,000 $1,300 $7,000 $10,000
5260100 Publications and Legal Notices $1,000 $551 $1,000 $1,000
5245100 Membership Dues $12,500 $12,316 $12,316 $12,887
5250750 Printing and Reproduction $1,500 $0 $500 $1,500
5285800 Business Travel $10,000 $0 $0 $10,000
5285300 Private Automobile Mileage $1,000 $7 $150 $1,000
5285200 Transportation&Travel (County Car Usage)$600 $0 $100 $600
5281600 Overhead $49,173 $24,587 $49,173 $30,041
5275200 Computer Hardware $3,000 $0 $1,000 $3,000
5250800 Computer Software $5,000 $853 $4,000 $5,000
5250250 Postage $1,000 $3 $500 $1,000
5252100 Staff/Commissioner Training Programs $2,000 $0 $1,000 $2,000
5701000 Reserves -$50,000 $0 $0 $0
TOTAL EXPENDITURES $1,210,990 $581,897 $1,033,675 $1,222,980
REVENUES
4103400 Application Fees $30,000 $24,077 $30,000 $30,000
4301100 Interest: Deposits and Investments $6,000 $4,283 $6,000 $6,000
TOTAL REVENUE $36,000 $28,360 $36,000 $36,000
3400150 FUND BALANCE FROM PREVIOUS FY $288,660 $312,351 $312,351 $201,006
NET LAFCO OPERATING EXPENSES $886,330 $241,186 $685,324 $985,974
3400800 RESERVES Available $200,000 $200,000 $200,000 $200,000
COSTS TO AGENCIES
5440200 County $295,443 $295,443 $295,443 $328,658
4600100 Cities (San Jose 50% + Other Cities 50%)$295,443 $295,443 $295,443 $328,658
4600100 Special Districts $295,443 $295,443 $295,443 $328,658
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ITEM # 6
LAFCO MEETING: June 1, 2022
TO: LAFCO
FROM: Neelima Palacherla, Executive Officer
SUBJECT: FINAL BUDGET FOR FY 2023
FINANCE COMMITTEE / STAFF RECOMMENDATIONS 1.Adopt the Final Budget for Fiscal Year 2022-2023.2.Find that the Final Budget for Fiscal Year 2023 is expected to be adequate toallow the Commission to fulfill its statutory responsibilities.3.Authorize staff to transmit the Final Budget adopted by the Commissionincluding the estimated agency costs to the cities, the special districts, theCounty, the Cities Association of Santa Clara County and the Santa Clara CountySpecial Districts Association.4.Direct the County Auditor-Controller to apportion LAFCO costs to the cities; tothe special districts; and to the County; and to collect payment pursuant toGovernment Code §56381.
NO CHANGES TO THE DRAFT/PRELIMINARY BUDGET On April 6, 2022, the Commission adopted its preliminary budget for Fiscal Year 2022-2023. No changes are recommended to the preliminary budget adopted by the commission.
LAFCO ANNUAL BUDGET PROCESS REQUIREMENTS The Cortese Knox Hertzberg Local Government Reorganization Act of 2000 (CKH Act) which became effective on January 1, 2001, requires LAFCO, as an independent agency, to annually adopt a draft budget by May 1 and a final budget by June 15 at noticed public hearings. Both the draft and the final budgets are required to be transmitted to the cities, the special districts and the County. Government Code §56381(a) establishes that at a minimum, the budget must be equal to that of theprevious year unless the Commission finds that reduced staffing or program costswill nevertheless allow it to fulfill its statutory responsibilities. Any unspent funds atthe end of the year may be rolled over into the next fiscal year budget. Afteradoption of the final budget by LAFCO, the County Auditor is required to apportion
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the net operating expenses of the Commission to the agencies represented on LAFCO. LAFCO and the County of Santa Clara entered into a Memorandum of Understanding (MOU) (effective since July 2001), under the terms of which, the County provides staffing, facilities, and services to LAFCO. The associated costs are reflected in the LAFCO budget. LAFCO is a stand-alone, separate fund within the County’s accounting and budget system and the LAFCO budget information is formatted using the County’s account descriptions/codes.
COST APPORTIONMENT TO CITIES, DISTRICTS AND THE COUNTY The CKH Act requires LAFCO costs to be split in proportion to the percentage of an agency’s representation (excluding the public member) on the Commission. Santa Clara LAFCO is composed of a public member, two County board members, two city council members, and since January 2013 – two special district members. Government Code §56381(b)(1)(A) provides that when independent special districts are seated on LAFCO, the county, cities and districts must each provide a one-third share of LAFCO’s operational budget. Since the City of San Jose has permanent membership on LAFCO, as required by Government Code §56381.6(b), the City of San Jose’s share of LAFCO costs must be in the same proportion as its member bears to the total membership on the commission, excluding the public member. Therefore in Santa Clara County, the City of San Jose pays one sixth and the remaining cities pay one sixth of LAFCO’s operational costs. Per the CKH Act, the remaining cities’ share must be apportioned in proportion to each city’s total revenue, as reported in the most recent edition of the Cities Annual Report published by the Controller, as a percentage of the combined city revenues within a county. Each city’s share is therefore based on the 2019/2020 Report – which is the most recent edition available. Government Code Section 56381 provides that the independent special districts’ share shall be apportioned in proportion to each district’s total revenues as a percentage of the combined total district revenues within a county. The Santa Clara County Special Districts Association (SDA), at its August 13, 2012 meeting, adopted an alternative formula for distributing the independent special districts’ share to individual districts. The SDA’s agreement requires each district’s cost to be based on a fixed percentage of the total independent special districts’ share. The estimated apportionment of LAFCO’s FY 2023 costs to the individual cities and districts is included as Attachment B. The final costs will be calculated and invoiced to the individual agencies by the County Controller’s Office after LAFCO adopts the final budget.
ATTACHMENTS Attachment A: Final LAFCO Budget for Fiscal Year 2023 Attachment B: Costs to Agencies Based on the Final Budget
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Packet Pg. 28 Communication: LAFCO Budget for FY 2022-2023 (COUNCIL CORRESPONDENCE)
FINAL LAFCO BUDGET
FISCAL YEAR 2022- 2023
ITEM #TITLE
APPROVED
BUDGET
FY 2022
ACTUALS
Year to Date
2/28/2022
PROJECTIONS
Year End
FY 2022
FINAL
BUDGET
FY 2023
EXPENDITURES
Object 1: Salary and Benefits $844,239 $412,232 $691,414 $810,419
Object 2: Services and Supplies
5255100 Intra-County Professional $10,000 $0 $10,000 $10,000
5255800 Legal Counsel $75,896 $48,562 $75,000 $78,326
5255500 Consultant Services $150,000 $25,239 $100,000 $150,000
5285700 Meal Claims $750 $56 $100 $750
5220100 Insurance $8,500 $8,590 $8,590 $9,237
5250100 Office Expenses $5,000 $1,098 $2,000 $5,000
5270100 Rent & Lease $47,784 $35,838 $47,784 $53,182
5255650 Data Processing Services $22,048 $10,665 $22,048 $28,038
5225500 Commissioners' Fee $10,000 $1,300 $7,000 $10,000
5260100 Publications and Legal Notices $1,000 $551 $1,000 $1,000
5245100 Membership Dues $12,500 $12,316 $12,316 $12,887
5250750 Printing and Reproduction $1,500 $0 $500 $1,500
5285800 Business Travel $10,000 $0 $0 $10,000
5285300 Private Automobile Mileage $1,000 $7 $150 $1,000
5285200 Transportation&Travel (County Car Usage)$600 $0 $100 $600
5281600 Overhead $49,173 $24,587 $49,173 $30,041
5275200 Computer Hardware $3,000 $0 $1,000 $3,000
5250800 Computer Software $5,000 $853 $4,000 $5,000
5250250 Postage $1,000 $3 $500 $1,000
5252100 Staff/Commissioner Training Programs $2,000 $0 $1,000 $2,000
5701000 Reserves -$50,000 $0 $0 $0
TOTAL EXPENDITURES $1,210,990 $581,897 $1,033,675 $1,222,980
REVENUES
4103400 Application Fees $30,000 $24,077 $30,000 $30,000
4301100 Interest: Deposits and Investments $6,000 $4,283 $6,000 $6,000
TOTAL REVENUE $36,000 $28,360 $36,000 $36,000
3400150 FUND BALANCE FROM PREVIOUS FY $288,660 $312,351 $312,351 $201,006
NET LAFCO OPERATING EXPENSES $886,330 $241,186 $685,324 $985,974
3400800 RESERVES Available $200,000 $200,000 $200,000 $200,000
COSTS TO AGENCIES
5440200 County $295,443 $295,443 $295,443 $328,658
4600100 Cities (San Jose 50% + Other Cities 50%)$295,443 $295,443 $295,443 $328,658
4600100 Special Districts $295,443 $295,443 $295,443 $328,658
ITEM # 6
Attachment A
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Packet Pg. 29 Communication: LAFCO Budget for FY 2022-2023 (COUNCIL CORRESPONDENCE)
$985,974
JURISDICTION REVENUE PER
2019/2020 REPORT
PERCENTAGE OF
TOTAL REVENUE
ALLOCATION
PERCENTAGES
ALLOCATED
COSTS
County N/A N/A 33.3333333%$328,658.00
Cities Total Share 33.3333333%$328,658.00
San Jose N/A N/A 50.0000000%$164,329.00
Other cities share 50.0000000%$164,329.00
Campbell $64,253,019 1.7539391%$2,882.23
Cupertino $123,486,910 3.3708692%$5,539.32
Gilroy $124,499,405 3.3985077%$5,584.73
Los Altos $58,920,260 1.6083688%$2,643.02
Los Altos Hills $18,781,680 0.5126907%$842.50
Los Gatos $51,842,412 1.4151621%$2,325.52
Milpitas $200,526,874 5.4738585%$8,995.14
Monte Sereno $4,295,543 0.1172571%$192.69
Morgan Hill $108,189,286 2.9532842%$4,853.10
Mountain View $423,194,503 11.5521016%$18,983.45
Palo Alto $703,037,932 19.1910943%$31,536.53
Santa Clara $1,109,294,952 30.2808470%$49,760.21
Saratoga $33,333,495 0.9099171%$1,495.26
Sunnyvale $639,698,827 17.4621026%$28,695.30
Total Cities (excluding San Jose)$3,663,355,098 100.0000000%$164,329.00
Total Cities (including San Jose)$328,658.00
Special Districts Total Share (Fixed %)33.3333333%$328,658.00
Aldercroft Heights County Water District 0.06233%$204.85
Burbank Sanitary District 0.15593%$512.48
Cupertino Sanitary District 2.64110%$8,680.19
El Camino Healthcare District 4.90738%$16,128.50
Guadalupe Coyote Resource Conservation District 0.04860%$159.73
Lake Canyon Community Services District 0.02206%$72.50
Lion's Gate Community Services District 0.22053%$724.79
Loma Prieta Resource Conservation District 0.02020%$66.39
Midpeninsula Regional Open Space District 5.76378%$18,943.12
Purissima Hills Water District 1.35427%$4,450.92
Rancho Rinconada Recreation and Park District 0.15988%$525.46
San Martin County Water District 0.04431%$145.63
Santa Clara Valley Open Space Authority 1.27051%$4,175.63
Santa Clara Valley Water District 81.44126%$267,663.21
Saratoga Cemetery District 0.32078%$1,054.27
Saratoga Fire Protection District 1.52956%$5,027.02
South Santa Clara Valley Memorial District 0.03752%$123.31
Total Special Districts 100.00000%$328,658.00
Total Allocated Costs $985,974.00
https://www.sco.ca.gov/Files-ARD-Local/LocRep/2019-20_Cities_Revenues_LAFCO_Fee_CalculationsADA.pdf
`
LAFCO COST APPORTIONMENT: COUNTY, CITIES, SPECIAL DISTRICTS
Estimated Costs to Agencies Based on the Final FY 2023 LAFCO Budget
Net Operating Expenses for FY 2023
* Based on the FY 2019-2020 Annual Cities Report:
ITEM #6
Attachment B
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ITEM # 9
LAFCO MEETING: April 6, 2022
TO: LAFCO
FROM: Neelima Palacherla, Executive Officer
Dunia Noel, Asst. Executive Officer
SUBJECT: PROPOSED WORK PLAN AND BUDGET FOR FY 2023
FINANCE COMMITTEE / STAFF RECOMMENDATIONS 1. Adopt the Proposed Work Plan for Fiscal Year 2022-2023. 2. Adopt the Proposed Budget for Fiscal Year 2022-2023. 3. Find that the Proposed Budget for Fiscal Year 2023 is expected to be adequate to allow the Commission to fulfill its statutory responsibilities. 4. Authorize staff to transmit the Proposed Budget adopted by the Commission including the estimated agency costs as well as the LAFCO public hearing notice for the adoption of the Fiscal Year 2023 Final Budget to the cities, the special districts, the County, the Cities Association of Santa Clara County and the Santa Clara County Special Districts Association.
ANNUAL BUDGET PROCESS REQUIREMENTS The Cortese Knox Hertzberg Local Government Reorganization Act of 2000 (CKH Act) which became effective on January 1, 2001, requires LAFCO, as an independent agency, to annually adopt a proposed budget by May 1 and a final budget by June 15 at noticed public hearings. Both the proposed and the final budgets are required to be transmitted to the cities, the special districts and the County. Government Code §56381(a) establishes that at a minimum, the budget must be equal to that of the previous year unless the Commission finds that reduced staffing or program costs will nevertheless allow it to fulfill its statutory responsibilities. Any unspent funds at the end of the year may be rolled over into the next fiscal year budget. After adoption of the final budget by LAFCO, the County Auditor is required to apportion the net operating expenses of the Commission to the agencies represented on LAFCO.
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FISCAL YEAR 2022-2023 BUDGET DEVELOPMENT TIMELINE
Dates Staff Tasks / LAFCO Action March 14 - April 6 Notice of this public hearing was advertised in a local newspaper, posted on the LAFCO website and distributed to local agencies. The agenda and a link to the posted agenda packet are also distributed to local agencies, interested persons and organizations. The proposed Workplan and Budget are posted on the LAFCO website and available for public review and comment. April 6 LAFCO public hearing on adoption of Proposed Workplan and Budget April 7 Proposed Work Plan and Budget, preliminary apportionments and LAFCO public hearing notice for Final Budget Hearing transmitted to agencies June 1 LAFCO public hearing and adoption of Final Budget June 1 - July 1 Final Budget transmitted to agencies; Auditor requests payment from agencies
LAFCO FINANCE COMMITTEE At its February 2, 2022 LAFCO meeting, the Commission reappointed Commissioner Jimenez, Commissioner Kremen and Alternate Commissioner Melton to serve on the Finance Committee for FY 2023. At its special meeting held on March 14, 2022, the Finance Committee discussed the progress on the current year work plan and the status of the current year budget; and recommended the proposed FY 2023 work plan and budget for consideration and adoption by the full commission.
CURRENT YEAR IN REVIEW
PROGRESS REPORT ON FY 2021-2022 WORK PLAN LAFCO’s current fiscal year workplan was adopted at a noticed public hearing held on April 7, 2021. Attachment A depicts the current status (through the third quarter of the year) of the 2021-2022 Work Program. A major work focus during the past year has centered on the Countywide Fire Service Review including project kick-off and management, and stakeholder and public outreach. Staff prepared outreach material and coordinated with the Technical Advisory Committee and partner agencies to conduct three community meetings and a community survey to gather feedback on fire issues. The project has been on hold since January 2022 when LAFCO’s consultant contract was terminated.
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Staff is working on a process to retain a new consultant and proceed with the service review. LAFCO has seen a relatively higher application workload during this period – staff is currently processing three major applications and an inactive district dissolution; and has held several other pre-application meetings with local agencies and entities. Staff has also received and responded to many requests for assistance and expertise from local and regional agencies on a variety of matters in support of local or shared goals such as island annexations, environmental review activities, regional plans, housing needs allocations, city general plan updates and other topics that affect local agency boundaries and services. Similarly, responding to public inquiries is another significant and growing area of the workplan and staff has seen an increase in the volume and complexity of such inquiries particularly requests for information under the Public Records Act. In accordance with the Commission’s directive, as opportunities arise and time permits, staff has conducted targeted outreach to various local entities (special districts, County, cities and other community organizations/individuals) on LAFCO’s role in promoting sustainable growth and good governance. Other notable administrative activities and projects that have been completed or are underway include among others, the annual financial audit, the annual report, new commissioners onboarding, required staff training, bylaws revision, and office space lease negotiation and extension. Notwithstanding the preceding progress on various work plan items, some important, high priority projects such as the comprehensive review and update of LAFCO policies and scanning of LAFCO records have fallen behind and will not be completed by the end of the fiscal year. The delays are partly due to the application workload, increased demand for LAFCO services and staff’s efforts to prioritize and meet the needs of the local agencies and the public; and staffing issues including a vacant analyst position since January 2021. The projects in the current workplan that will not be completed by the end of the fiscal year have been added to the proposed FY 2023 workplan. The Finance Committee discussed this situation and its impact on the accomplishment of the work plan items and recommended that staff consider the option of recruiting temporary staff or an intern to assist with certain work plan items such as the scanning of LAFCO records. The LAFCO Annual Report for FY 2022 will be published at the end of the current fiscal year and will document all the applications reviewed and processed by LAFCO in Fiscal Year 2022; and will summarize the various accomplishments, activities/projects that LAFCO has engaged in or completed during the period.
STATUS OF FY 2021-2022 ADOPTED BUDGET
Attachment D includes the FY 2022 final budget adopted by the Commission at a noticed public hearing on June 2, 2021, the status of LAFCO’s expenditures and revenues as of February 28, 2022 and expenditure and revenue projections for FY
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2022 year end. The adopted LAFCO budget for FY 2022 is $886,330 and reflects a 10% reduction compared to the previous fiscal year’s (FY 2021) budgeted operating expenses. It is estimated that the total year-end projected expenditures for FY 2022 would be approximately 22% lower than the adopted budget primarily due to salary savings from the vacant analyst position and unspent Business Travel (due to the pandemic) and Consultant Services line items (due to the fire service review consultant termination, although it is expected that a portion of the Consultant Services line item amount will be encumbered for the new consultant). Staff anticipates that year end revenue for FY 2022 will tally with the amount budgeted. LAFCO has received the respective FY 2022 cost shares from the County, the cities and the independent special districts. The actual fund balance rolled over at the end of FY 2021 was higher at $312,351, compared to the amount estimated ($288,660) in the FY 2022 budget. The excess fund balance and the unspent FY 2022 expenditure amounts will carry over into FY 2023 and will be used to reduce net operating expenses that would in turn translate to reduced FY 2023 costs for contributing agencies.
PROPOSED WORK PLAN FOR FISCAL YEAR 2023
Attachment C includes the proposed work plan for FY 2023, as recommended by the Finance Committee, for consideration and adoption by the full commission. The proposed workplan includes ongoing as well as new projects and outlines detailed projects/activities organized under six broad areas: (1.) LAFCO application processing; (2.) island annexations; (3.) outreach, government/community relations and customer service; (4.) service reviews, special studies and sphere of influence updates; (5.) commission support; and (6.) administrative projects. The work plan assigns priority levels (high, moderate, low); and designates whether the work is to be conducted by staff or outside consultants. The proposed work plan includes a broad spectrum of responsibilities that LAFCO, as an independent local agency and as a regulatory body of the state, is expected to fulfil in its role of promoting sustainable growth and good governance in Santa Clara County. It incorporates the Commission’s legislative functions and mandates and also the Commission’s proactive local initiatives and priorities such as its directives for ongoing public outreach and communications, comprehensive organizational assessment and its proactive service review and implementation program. Reduced staffing levels due to a vacant analyst position since January 2021 will continue to affect work plan priorities and the accomplishment of the work plan. Recruitment for the vacant position is pending completion of the County’s classification study for LAFCO which is expected to be completed in the next few months at which time LAFCO can begin recruitment. However, actual professional staffing capabilities will be below 4.0 FTE for at least half of the upcoming fiscal year, and possibly longer considering the onboarding and training period for the new staff person.
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According to the Comprehensive Organizational Assessment report prepared by LAFCO’s consultant, even the 4.0 FTE staffing level is lower than other LAFCOs with comparable operations. However, in August 2020, the Commission voted to maintain the current 4.0 FTE staffing level given uncertain economic conditions related to the COVID-19 pandemic but kept open the option to consider the potential addition of 1.0 FTE in the future. To address this reduced staffing situation, staff must actively manage the workload in order to focus on accomplishing essential activities such as processing applications, completing projects currently underway such as the Countywide Fire Service Review, maintaining core administrative functions, tracking on-going projects and studies, supporting the commission and responding to local agency and public requests for assistance. Non-essential activities and other proactive initiatives will need to be deferred until staffing levels/expertise are restored. This is consistent with past practice where LAFCO’s statutorily mandated activities take priority over administrative projects that are not statutorily required, and over proactive commission-initiated projects which are discretionary but support LAFCO’s mission and statutory requirements.
PROPOSED BUDGET FOR FISCAL YEAR 2023
Attachment D includes the proposed Budget for FY 2022-2023 as recommended by the Finance Committee, for consideration and adoption by the full commission. The Finance Committee conducted a thorough review of the work plan and budget and recognized the public benefit of LAFCO’s work and the high demand for LAFCO’s services from local agencies and the public. The Committee maintained its commitment to ensure adequate resources that allow the Commission to fulfill its statutory responsibilities and accomplish its work plan while also limiting costs for LAFCO’s funding agencies As a result, the proposed budget maintains the overall expenditure for FY 2023 ($1,222,980) at a substantially similar level to the current year budget ($1,210,990). In addition to managing expenses to limit net operating expenses, projected current year cost savings (from salary savings, unspent travel, and other reduced operational costs), and a larger than estimated fund balance from FY 2021 are expected to result in a $312,351 fund balance at the end of the current year – and will be used to further reduce net operating expenses in FY 2023. LAFCO’s proposed net operating expense for FY 2023 is 11% higher than the current year budgeted amount which was 10% lower than FY 2021 which in turn was 14% lower than the FY 2020 operating expenses. Thus, the proposed 11% increase follows two years of reduced local agencies’ apportionments and is needed to meet state mandates and LAFCO work plan objectives.
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DESCRIPTION OF FY 2022-2023 BUDGET LINE ITEMS LAFCO and the County of Santa Clara entered into a Memorandum of Understanding (MOU) (effective since July 2001), under the terms of which, the County provides staffing, facilities, and services to LAFCO. The associated costs are reflected in the proposed LAFCO budget. LAFCO is a stand-alone, separate fund within the County’s accounting and budget system and the LAFCO budget information is formatted using the County’s account descriptions/codes. The following is a detailed itemization of the proposed budget.
EXPENDITURES Expenditures are divided into two main sections: Staff Salary and Benefits (Object 1) which comprise 66% of the total expenditures, and Services and Supplies (Object 2).
OBJECT 1. SALARIES AND BENEFITS $810,419 This line item supports the salary and benefits for the 4.0 FTE positions including the Executive Officer position, the two Analyst positions and the Clerk position. One Analyst position is currently vacant. Recruitment for the position is on hold until the County’s classification study for LAFCO staff positions is completed. LAFCO contracts with the County of Santa Clara for staffing and services and in accordance with the MOU between the County and LAFCO, all four positions are staffed through the County Executive’s Office. The proposed amount is based on the best available projections from the County at this time for salary and benefits for the 4 positions. Changes to the projections for the four positions that occur within the next couple of months will be reflected in the Final LAFCO budget.
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
FY 2020 FY 2021 FY 2022 FY 2023
LAFCO Net Operating Expenses
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OBJECT 2. SERVICES AND SUPPLIES
5255100 Intra-County Professional $10,000 This includes the costs for services from various County agencies such as the County Surveyor’s Office, the County Assessors’ Office, and the Registrar of Voters. The County Surveyor assists with map review and approval for boundary change proposals. In addition, the Surveyor’s Office also assists with research to resolve boundary discrepancies. The County Assessor’s Office prepares reports for LAFCO and the Registrar of Voters provides data necessary for processing LAFCO applications. This item also allows LAFCO to seek GIS mapping services including maintenance and technical assistance from the County Planning Office, as necessary. This budgeted amount has been maintained at the same level as the current year.
5255800 Legal Counsel $78,326 This item covers the cost for general legal services. In February 2009, the Commission retained the firm of Best Best & Krieger for legal services on a monthly retainer. The contract was amended in 2010 to reduce the number of total hours required to 240 hours per year. The contract sets the hourly rate and allows for an annual automatic adjustment to the rates based on the Consumer Price Index (CPI). In 2017, the contract was once again amended to increase the monthly retainer cost and limit the CEQA work within the retainer to 24 hours annually. Any additional CEQA work above 24 hours would be charged outside the retainer at the same hourly rate. The monthly retainer for FY 2023 increases to $6,278, based on a 3.2% increase in the Consumer Price Index for the prior calendar year (2021). This item covers the annual retainer fees and includes additional monies to cover approximately 10 hours of work outside the retainer at the current hourly rate of $299.
5255500 Consultant Services $150,000 This item is budgeted for hiring consultants to assist LAFCO with special projects such as for conducting service reviews and special studies, facilitating a strategic planning workshop, scanning LAFCO’s hardcopy records into the existing electronic document management system, meeting broadcast services for LAFCO meetings and for conducting the annual financial audit, among others. The Commission must take action to authorize such special projects prior to expending funds. This item also includes costs associated with ongoing existing contracts such as costs for maintenance and hosting of the LAFCO website by an outside provider.
5285700 Meal Claims $750 This item includes cost of food to support Commission events, workshops, meetings.
5220200 Insurance $9,237 This item is for the purpose of purchasing general liability insurance and workers’ compensation coverage for LAFCO. In 2010, LAFCO switched from the County’s coverage to the Special District Risk Management Authority (SDRMA), for the provision of general liability insurance. Additionally, LAFCO also obtains workers’
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compensation coverage for its commissioners from SDRMA. Workers’ compensation for LAFCO staff is currently covered by the County and is part of the payroll charge. SDRMA has recently provided estimated FY 2023 contribution amounts for use in the budgeting process: Property Liability ($8,137) and Workers’ Compensation ($1,100). SDRMA is in the process of negotiating rates on behalf of its program membership and expects to confirm rates in mid-May. The Final budget will reflect any major revisions to these estimates.
5270100 Rent & Lease $53,132 This item includes monthly rent for LAFCO office space during the FY 2023. The current lease term expires on May 5, 2022. At its February 2, 2022 Meeting, the Commission authorized the extension of the lease for a five year period through April 30, 2027.
5250100 Office Expenses $5,000 This item includes funds for purchase of books, subscriptions/publications necessary to keep current on laws and trends; small equipment and supplies for office operations, including printer/photocopier lease.
5255650 Data Processing Services $28,038 This item includes estimated costs associated with County Technology Solutions & Services Department (TSS) providing IT services to the LAFCO program. According to TSS, the projected costs cover Telecom services for 5 phones- VOIP/Landline ($3,300), Wireless Carrier Service ($550), MS Adobe special order, Acrobat Pro and MS Visio monthly subscription ($2,535), and other services ($21,653) comprising Enterprise Content Management services and solutions, Kronos support, Architecture and Innovation Services, Claranet services, Data Analytics and Visualizations, digital print and sccLearn. Any further revised cost estimates received from the County will be reflected in the Final LAFCO budget.
5225500 Commissioner’s Fees $10,000 This item covers the $100 per diem amount for LAFCO commissioners and alternate commissioners to attend LAFCO meetings and committee meetings.
5260100 Publications and Legal Notices $1,000 This item is for costs associated with publication of hearing notices for LAFCO applications and other projects/ studies, as required by state law. This budgeted amount has been maintained at the same level as the current year.
5245100 Membership Dues $12,887 This item includes CALAFCO – the California Association of LAFCOs membership dues. As approved at the CALAFCO Annual Membership Business meeting on October 31, 2019, the FY 2023 membership dues for Santa Clara LAFCO is $11,287. Additionally, this item includes estimated membership dues for CSDA – the California Special Districts Association. In June 2018, CSDA informed staff that Santa Clara LAFCO as a customer of SDRMA, must be a member of CSDA pursuant to SDRMA bylaws.
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5250750 Printing and Reproduction $1,500 This covers printing expenses for reports such as service reviews or other studies and documents.
5285800 Business Travel $10,000 This item includes funding for staff and commissioners to attend conferences and workshops. It would cover costs of air travel, accommodation, conference registration and other expenses at the conferences. CALAFCO annually holds a Staff Workshop (April 2023) and an Annual Conference (October 2022) that is attended by commissioners as well as staff.
5285300 Private Automobile Mileage $1,000 This item provides for mileage reimbursement when staff travels by private car to conduct site visits and attend meetings / training sessions. This budgeted amount has been maintained at the same level as the current year.
5285200 Transportation and Travel (for use of County car) $600 This item would cover costs associated with the use of a County vehicle for travel to conferences, workshops, site visits and meetings.
5281600 Overhead $30,041 This overhead charge is established by the County Controller’s Office, for service rendered by various County departments that do not directly bill LAFCO. The overhead includes LAFCO’s share of the County’s FY 2023 Cost Allocation Plan which is based on actual overhead costs from FY 2021 – the most recent year for which actual costs are available. The overhead amount includes the following charges from: County Executive’s Office: $11,036 Controller-Treasurer: $10,131 Employee Services Agency: $6,550 OBA: $330 BHS-MH - Employee: $211 TSS Intragovernmental Service: $912 Technology Services & Solutions: $3,496 Procurement: $137 Further, a “roll forward” is applied which is calculated by comparing FY 2021 Cost Plan estimates with FY 2021 actuals. The FY 2021 cost estimates were lower than the actuals by $2,736; this amount is added to the FY 2023 Cost Plan. This is a state requirement.
5275200 Computer Hardware $3,000 This item is designated for any required hardware upgrades / purchases.
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5250800 Computer Software $5,000 This amount is designated for computer software purchases, and annual licenses for GIS software and records management (LaserFische) hardware/software annual maintenance agreement.
5250250 Postage $1,000 This amount covers postage costs for mailing notices, agendas, agenda packets and general correspondence. This budgeted amount has been maintained at the same level as the current year.
5252100 Training Programs $2,000 This item covers the costs associated with attendance at staff development courses and seminars. CALAFCO conducts University Courses throughout the year on topics of relevance to LAFCO.
REVENUES
4103400 Application Fees $30,000 It is anticipated that LAFCO will receive approximately $30,000 in fees from processing applications. The actual amount earned from fees depends entirely on the level of application activity.
4301100 Interest $6,000 It is estimated that LAFCO will receive an amount of approximately $6,000 from interest earned on LAFCO funds.
3400150 Fund Balance from Previous Fiscal Year (FY 2022) $201,006 It is projected that there will be a savings or fund balance of approximately $201,006 at the end of the current year, which will be carried over to reduce the proposed Fiscal Year 2023 costs for LAFCO’s funding agencies (cities, independent special districts and the County). Projected Year-End [FY 2022] Fund Balance = (Projected Year-End [FY 22] Revenue + Actual Fund Balance from Previous Fiscal Year [FY 21] + Funds Received from Local Agencies in FY 22) - (Projected Year-End [FY 22] Expenses) = ($36,000+ $312,352 + $886,330) - $1,033,675 = $201,006 The fund balance excludes the reserves.
RESERVES
3400800 Reserves Available $200,000 This item includes reserves for two purposes: litigation reserve – for use if LAFCO is involved with any litigation; and contingency reserve – to be used for unexpected expenses. If used during the year, this account will be replenished in the following year. Since 2012, the reserves have been retained in a separate Reserves account, thus eliminating the need for LAFCO to budget each year for this purpose.
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The Reserves amount was held at $250,000 since FY 2020 to timely implement potential recommendations from the Comprehensive Organizational Assessment, and as a tentative measure in recognition that LAFCO operates in an increasingly complex and controversial environment. The implementation of the Comprehensive Organizational Assessment Study is currently pending the completion of the Classification Study by the County, which is expected soon. In FY 2022, LAFCO reduced the Reserves to $200,000, in order to further reduce costs to local agencies given the COVID -19 related economic hardships. The Finance Committee recommends maintaining the current level of reserves for FY 2023. This places the proposed Reserve amount at approximately 16% of the total FY 2023 expenditures. LAFCO has not adopted a Reserves policy, however as an independent agency, LAFCO should maintain sufficient reserves for flexibility and stability in the event of unanticipated needs.
FY 2023 NET OPERATING EXPENSES FY 2023 Net Operating Expenses = (Proposed FY 2023 Expenditures) - (Proposed FY 2023 Fee & Interest Revenues + Projected Fund Balance from FY 2022) = ($1,222,980) – ($36,000 + $201,006) = $985,974 The projected operating expense for FY 2023 is based on projected expenditures and revenues as well as on estimated fund balance for the current year. Further revisions may be needed as we get a better indication of current year expenses/revenues towards the end of this fiscal year. Additionally, a more accurate projection of costs/revenues for the upcoming fiscal year could become available, particularly for employee salary and benefits. This could result in changes to the proposed net operating expenses for FY 2023 which could in turn impact the costs for each of LAFCO’s funding agencies.
COST APPORTIONMENT TO CITIES, INDEPENDENT SPECIAL DISTRICTS
AND COUNTY In January 2013, independent special districts were seated on LAFCO. Government Code §56381(b)(1)(A) provides that when independent special districts are represented on LAFCO, the county, cities and independent special districts must each provide a one-third share of LAFCO’s operational budget. The City of San Jose has permanent membership on LAFCO pursuant to Government Code Section 56327. As required by Government Code §56381.6(b), the City of San Jose’s share of LAFCO costs must be in the same proportion as its member bears to the total membership on the commission, excluding the public member. The remaining cities’ share must be apportioned in proportion to each city’s total revenues, as reported in the most recent edition of the Cities Annual Report published by the Controller, as a percentage of the combined city revenues within a county.
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Government Code Section 56381 provides that the independent special districts’ share shall be apportioned in proportion to each district’s total revenues as a percentage of the combined total district revenues within a county. The Santa Clara County Special Districts Association (SDA), at its August 13, 2012 meeting, adopted an alternative formula for distributing the independent special districts’ share to individual districts. The SDA’s agreement requires each district’s cost to be based on a fixed percentage of the total independent special districts’ share. Therefore, in Santa Clara County, the County pays a third of LAFCO’s operational costs, the independent special districts pay a third, the City of San Jose pays one sixth and the remaining cities pay one sixth. Government Code §56381(c) requires the County Auditor to request payment from the cities, independent special districts and the County no later than July 1 of each year for the amount each agency owes based on the net operating expenses of the Commission and the actual administrative costs incurred by the Auditor in apportioning costs and requesting payment. The following is a draft apportionment to the agencies based on the proposed net operating expenses for FY 2023.
Apportionment of the costs among the 14 cities and among the 17 independent special districts will be calculated by the County Controller’s Office after LAFCO adopts the final budget in June. In order to provide each of the cities and districts with a general indication of their costs in advance, Attachment E includes draft estimated apportionments, based on the proposed FY 2023 net operating expenses and the 2018/2019 Cities Annual Report. The final apportionments will be prepared by the County Controller’s Office based on the latest available Cities Annual Report.
$328,658
$328,658
$164,329
$164,329
Proposed FY 2023 LAFCO Cost Apportionments
County Special Districts City of San Jose Other Cities
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ATTACHMENTS Attachment A: Status of FY 2022 Work Plan Attachment B: LAFCO Financials 2008-2021 Attachment C: Proposed Work Plan for Fiscal Year 2023 Attachment D: Proposed LAFCO Budget for Fiscal Year 2023 Attachment E: Estimated FY 2023 Costs to Agencies Based on the Proposed Budget
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STATUS OF CURRENT YEAR WORK PLAN (FISCAL YEAR 2022)
PAGE 1 of 7
PRIORITY* H - High Priority (essential activities: state mandate, Commission directive, requirements)
M - Medium Priority (important, provided resources allow or time permits)
L - Low Priority (desirable provided resources allow or time permits , not urgent)
PROJECT DESCRIPTION ACTIVITIES / TIMELINE RESOURCE
S PRIORITY* STATUS LAFCO APPLICATIONS Process applicant initiated LAFCO proposals Encourage pre-application meetings
prior to application submittal
Conduct pre-agenda meetings with
County Depts to obtain Assessor &
Surveyor reports, as needed
Process applications per CKH Act
requirements: issue Notice of
Application, Certificate of Filing /
Sufficiency, Public Hearing Notice, staff
report, conduct protest proceedings, as
needed
Staff H Several pre-
application
meetings held
(San Jose /
Cupertino, San
Jose / Milpitas,
NASA Moffett
Field / Mountain
View, etc.)
3 applications in
progress
Comment on potential LAFCO applications,
relevant projects & development proposals,
city General Plan updates and/ or related
environmental documents
Ongoing, as needed Staff H Ongoing
(RHNA, Coyote
Valley)
Review and update LAFCO policies for
context, clarity and consistency with State
law
In progress Staff /
Consultant
H In progress
Dissolution of inactive special districts Work with State Controller’s Office to
identify County Library Services Area as
inactive
Staff M Identification
completed.
Processing
dissolution.
Prepare flowcharts for LAFCO processes and
update application packets for current
requirements and ease of public use
Upon completion of policies update Staff L Internal
application
processing
checklists’
updates
completed.
ITEM # 9
Attachment A
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PROJECT DESCRIPTION ACTIVITIES / TIMELINE RESOURCE
S PRIORITY* STATUS ISLAND ANNEXATIONS Conduct outreach to cities with islands,
follow up on responses including
review/research of city limits/ USA
boundaries, provide assistance with
annexations or necessary USA amendments
Prepare and distribute island maps to
cities
Staff L Working with
cities upon
request (Los
Gatos, Monte
Sereno)3
Facilitate interagency discussions to support
remaining island annexations
Ongoing discussion with San Jose, Los
Altos Hills
Staff H In progress
Review and finalize city-conducted island
annexations
Ongoing, as needed
Staff H 3 finalized. OUTREACH, GOVERNMENT / COMMUNITY RELATIONS & CUSTOMER SERVICE Conduct outreach to increase awareness of
LAFCO’s role
Presentations to cities, other agencies on
LAFCO, as relevant
Distribute LAFCO communications
material to elected officials and staff of
cities, special districts and the County
Seek exhibit opportunities at public
spaces / events
Maintain website as the primary
information resource on LAFCO
Increase social media presence (Twitter)
Staff L
M
L
H
L
Presentations
provided upon
request (Grand
Jury, Leadership
Sunnyvale, )
Website updated
Engage and establish relationships with local
(cities, districts, county), regional
(ABAG/MTC), state (SGC, OPR, DoC, SWRCB)
agencies, organizations such as SDA, SCCAPO,
CALAFCO, other stakeholder groups
Attend regular meetings of SDA
(quarterly), SCCAPO (monthly), County
Planning Dept.(quarterly)
Small water systems issues / legislation
Collaborate with agencies and entities
with goals common to LAFCO
Staff M
M
M
Ongoing
Track LAFCO related legislation EO is voting member of the CALAFCO
Legislative Committee and attends
regular meetings
Staff M
M
EO served on the
Legislative
Committee until
October 2021.
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PROJECT DESCRIPTION ACTIVITIES / TIMELINE RESOURCE
S PRIORITY* STATUS
Commission takes positions and submit
letters on proposed legislation
Respond to public enquiries re. LAFCO
policies, procedures and application filing
requirements
Timely response to public inquiries
Update the PRA form for the website
Document research on complex inquiries
Report to Commission on complex
inquiries
Staff H
L
L
H
Ongoing.
High volume of
enquiries and
PRA requests. SERVICE REVIEWS, SPECIAL STUDIES & SPHERE OF INFLUENCE UPDATES Countywide Fire Service Review Participate in consultant selection,
negotiate contract
Manage consultant’s work and contract
Coordinate TAC meetings
Prepare and distribute
stakeholder/public outreach material
Coordinate stakeholder / public
engagement process
Prepare current maps of service provider
agencies
Attend stakeholder interviews with
consultant
Work with consultant on any data
collection issues
Review and comment on administrative
draft reports
Distribute Public hearing notices and
coordinate community workshops and
public hearings
Staff /
Consultant
H Retained
consultant.
Prepared stake
holder and public
outreach material
and conducted
community
meetings.
Consultant
contract
terminated in
January 2022.
Working on next
steps and
retaining a new
consultant.
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PROJECT DESCRIPTION ACTIVITIES / TIMELINE RESOURCE
S PRIORITY* STATUS
Prepare staff reports with
implementation recommendations
Follow up with agencies and report back
to the commission
Continue to monitor implementation of
recommendations from previous service
reviews and conduct special studies, as
necessary
RRRPD study – city took action to delay
decision on consolidation
Staff L Pending city
action
Follow up on new
issues for other
districts, upon
request (LGCSD)
Map Mutual Water companies Initial maps complete, further work
through service review
Staff L -
Engage in or support grant / partnership
opportunities on issues related to enhancing
viability of agriculture, and climate smart
growth
As needed, and as opportunities arise Staff L -
Compile and post JPA filings on the LAFCO
website
Notice provided, gather JPA information
through service review process
Staff L Ongoing COMMISSION SUPPORT Provide ongoing support to the 12
commissioners for regularly-scheduled
Commission meetings, special meetings and
Committee meetings (Finance Committee, Ad
Hoc Committee on Organizational
Assessment and the Fire Service Review TAC)
Prepare and distribute public hearing
notices and agenda packets, provide staff
support during the meetings, record
minutes, broadcast meetings
Hold pre-agenda review meeting with
Chair
Hold pre-meeting calls with individual
commissioners to address agenda item
questions
Process commissioner per diems for
attendance at LAFCO meetings
Staff H Ongoing
Keep the Commission informed EO report Staff H Ongoing
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PROJECT DESCRIPTION ACTIVITIES / TIMELINE RESOURCE
S PRIORITY* STATUS
off-agenda emails, as needed
Onboarding new Commissioners Facilitate filing / completion of Form 700,
commissioner pledge, ethics training.
Update LAFCO letterhead, directory, and
website
Set up vendor accounts, provide parking
permits
Conduct new Commissioner orientation
Recognize outgoing commissioners for
service on LAFCO
Staff H New
commissioner:
Linda LeZotte
Commissioners Selection Process Inform appointing bodies of any
upcoming vacancies and provide
information on appointment criteria
Convene ISDSC committee meeting, as
necessary
Coordinate public member selection
process, as necessary
Staff H As needed
Conduct a Strategic Planning Workshop 2018 Workshop re. LAFCO
Communications and Outreach Plan
Staff /
Consultant
L On hold
Commissioner participation in CALAFCO Support commissioner participation in
CALAFCO activities / or election to the
CALAFCO Board
Staff L On hold ADMINISTRATIVE PROJECTS Prepare LAFCO annual work plan March –June Staff H In progress
Prepare LAFCO annual budget March –June Staff H In progress
Prepare LAFCO Annual Report August 2021 Staff H Completed
Prepare LAFCO Annual Financial Audit October 2021 (Contract with Chavan
Associates ends after FY 2021 Audit)
Consultant /
Staff
H Completed.
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PROJECT DESCRIPTION ACTIVITIES / TIMELINE RESOURCE
S PRIORITY* STATUS
Contract
extended for FY
2023 and FY
2024
Office / facility management Coordinate with Building Manager on
facilities issues
Coordinate with County re.
computers/network, phone, printers,
office security, procurement , installation
& maintenance
Order and manage office supplies
Make travel arrangements and process
expense reimbursements.
Process mileage reimbursements
Negotiate office space lease (current
lease ends May 5, 2022)
Staff H Ongoing
Lease extended
through April
2027
Records management Organize scan of LAFCO records to
Electronic Document Management
System (LaserFische)
Maintain LAFCO’s hard copy records
Maintain and enhance the LAFCO
Website
Maintain LAFCO database
Staff/
Consultant
Staff
H
H
H
H
On hold
Ongoing
Contracts and payments & receivables Track consultant contracts and approve
invoices
Approve vendor invoices / process
annual payments for various services/
memberships
Staff H Ongoing
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PROJECT DESCRIPTION ACTIVITIES / TIMELINE RESOURCE
S PRIORITY* STATUS
Coordinate with County Controller’s
Office and track annual collection of
payments from member agencies
Review and update LAFCO bylaws /
administrative policies and procedures
Ongoing, as needed Staff H
Ongoing
Staff training and development CALAFCO workshops, conferences,
relevant courses
Staff M CALAFCO
Workshop
cancelled
Coordinate with County on administrative
issues
Attend monthly meetings with the
Deputy County Executive
Staff H Ongoing
Staff performance evaluation April - October 2021 Staff/Commi
ssion
H Completed in
2021. In progress
Comprehensive Organizational Assessment
Study – implementation
As needed Staff/Commi
ssion
H Pending result of
County study in
progress
Recruitment and training of LAFCO staff One LAFCO Analyst position currently
vacant –recruitment pending County
Classification study results
Staff H Pending result of
County study in
progress
Other administrative functions mandated of a
public agency (Form 806, maintaining
liability/workers comp insurance, etc.)
Ongoing Staff H Ongoing
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FY 2008 - FY 2021 LAFCO FINANCIALS
March 2022
ITEM
NO. TITLE
ACTUALS
FY 2008
ACTUALS
FY 2009
ACTUALS
FY 2010
ACTUALS
FY 2011
ACTUALS
FY 2012
ACTUALS
FY 2013
ACTUALS
FY 2014
ACTUALS
FY 2015
ACTUALS
FY 2016
ACTUALS
FY 2017
ACTUALS
FY 2018
ACTUALS
FY 2019
ACTUALS
FY 2020
ACTUALS
FY 2021
EXPENDITURES
Salary and Benefits $356,009 $400,259 $406,650 $413,966 $393,194 $411,929 $450,751 $466,755 $484,216 $514,381 $628,534 $713,900 $744,439 $730,716
Object 2: Services and Supplies
5255100 Intra-County Professional $66,085 $57,347 $13,572 $4,532 $6,118 $5,260 $5,663 $4,379 $18,523 $1,292 $703 $3,593 $346 $201
5255800 Legal Counsel $0 $9,158 $67,074 $52,440 $48,741 $56,791 $53,550 $52,854 $57,498 $71,131 $59,400 $72,276 $69,975 $65,791
5255500 Consultant Services $19,372 $75,000 $76,101 $58,060 $102,349 $59,563 $35,602 $37,250 $39,625 $0 $45,000 $52,650 $106,709 $41,966
5285700 Meal Claims $0 $368 $277 $288 $379 $91 $228 $209 $367 $50 $901 $257 $166 $0
5220100 Insurance $491 $559 $550 $4,582 $4,384 $4,378 $4,231 $4,338 $4,135 $4,679 $4,893 $5,296 $5,893 $10,452
1151 Office Expenses $1,056 $354 $716 $639 $1,212 $536 $850 $783 $6,266 $48,632 $15,412 $4,702 $2,544 $1,151
5270100 Rent and Lease $41,120 $39,360 $44,478 $46,254
5255650 Data Processing Services $8,361 $3,692 $3,505 $1,633 $3,384 $1,663 $3,311 $9,024 $1,519 $6,869 $877 $11,894 $15,500 $21,223
5225500 Commissioners' Fee $5,700 $5,400 $3,500 $3,400 $4,000 $4,900 $5,800 $4,900 $6,700 $5,300 $5,400 $5,000 $4,600 $6,100
5260100 Publications and Legal Notices $1,151 $563 $1,526 $363 $916 $222 $378 $2,484 $487 $191 $145 $192 $44 $90
5245100 Membership Dues $5,500 $7,000 $7,000 $7,000 $7,000 $14,473 $0 $7,428 $7,577 $8,107 $8,674 $9,615 $11,822 $12,144
5250750 Printing and Reproduction $5 $0 $0 $0 $0 $0 $9 $177 $703 $0 $0 $0 $799 $0
5285800 Business Travel $7,238 $8,415 $4,133 $8,309 $3,095 $4,777 $5,800 $4,042 $5,811 $3,877 $13,091 $4,260 $6,908 $0
5285300 Private Automobile Mileage $1,016 $704 $832 $1,185 $615 $424 $409 $396 $1,009 $1,264 $590 $689 $696 $61
5285200 Transportation&Travel (County Car Usage)$894 $948 $629 $0 $384 $250 $371 $293 $559 $605 $0 $328 $256 $0
5281600 Overhead $42,492 $62,391 $49,077 $46,626 $60,647 $43,133 $42,192 $34,756 $49,452 $0 $28,437 $69,944 $4,505 $30,917
5275200 Computer Hardware $0 $451 $0 $83 $2,934 $1,791 $2,492 $0 $106 $0 $0 $773 $0 $0
5250800 Computer Software $0 $0 $626 $314 $579 $3,124 $933 $1,833 $2,079 $754 $4,505 $3,012 $1,200 $4,708
5250250 Postage $1,160 $416 $219 $568 $309 $589 $246 $597 $411 $209 $183 $117 $73 $184
5252100 Staff Training Programs $0 $665 $491 $250 $300 $0 $0 $1,431 $0 $0 $0 $350 $525 $70
5701000 Reserves $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
TOTAL EXPENDITURES $516,530 $633,691 $636,478 $604,238 $640,540 $613,895 $612,816 $633,929 $687,043 $667,342 $857,865 $998,208 $1,021,478 $972,028
REVENUES
4103400 Application Fees $46,559 $41,680 $35,576 $48,697 $37,426 $45,458 $63,561 $27,386 $146,168 $20,436 $29,864 $33,049 $7,587 $34,622
4301100 Interest: Deposits and Investments $24,456 $16,230 $6,688 $4,721 $4,248 $3,416 $2,674 $2,844 $6,073 $10,830 $12,620 $12,141 $18,176 $10,488
3400150 Fund Balance from Previous FY $271,033 $368,800 $334,567 $275,605 $209,987 $208,219 $160,052 $226,111 $187,310 $293,489 $331,177 $314,693 $352,123 $312,351
TOTAL REVENUE $342,048 $426,711 $376,831 $329,023 $251,661 $257,092 $226,287 $256,341 $339,551 $324,755 $373,661 $359,883 $377,886 $357,461
NET LAFCO OPERATING EXPENSES $174,482 $206,980 $259,648 $275,215 $388,879 $356,802 $386,529 $377,588 $347,492 $342,587 $484,204 $638,325 $643,592 $983,785
3400800 RESERVES AVAILABLE $100,000 $100,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $250,000 $250,000
COSTS TO AGENCIES
5440200 County $271,641 $270,896 $267,657 $292,601 $298,597 $281,780 $156,002 $187,521 $220,668 $225,778 $266,298 $277,942 $381,904 $327,928
4600100 Cities (San Jose 50% +other cities 50%)$271,641 $270,896 $267,657 $292,601 $298,597 $282,625 $156,002 $187,521 $220,668 $225,778 $266,298 $277,942 $381,904 $327,928
4600100 Special Distrcits $296,892 $187,521 $220,668 $225,778 $266,298 $277,942 $381,904 $327,928
ITEM # 9
Attachment B
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PROPOSED WORK PLAN FOR FISCAL YEAR 2023
PAGE 1 OF 6
PRIORITY* H - High Priority (essential activities: state mandate, Commission directive, requirements)
M - Medium Priority (important, provided resources allow or time permits)
L - Low Priority (desirable provided resources allow or time permits , not urgent)
PROJECT DESCRIPTION ACTIVITIES / TIMELINE RESOURCES PRIORITY* LAFCO APPLICATIONS Process applicant initiated LAFCO proposals Encourage pre-application meetings prior to
application submittal
Conduct pre-agenda meetings with County Depts to
obtain Assessor & Surveyor reports, as needed
Process applications per CKH Act requirements: issue
Notice of Application, Certificate of Filing /
Sufficiency, Public Hearing Notice, staff report,
conduct protest proceedings, as needed
Staff H
Comment on potential LAFCO applications,
relevant projects & development proposals, city
General Plan updates and/ or related
environmental documents
Ongoing, as needed Staff H
Review and update LAFCO policies for context,
clarity and consistency with State law
In progress Staff / Consultant H
Prepare flowcharts for LAFCO processes and
update application packets for current
requirements and ease of public use
Upon completion of policies update Staff L ISLAND ANNEXATIONS Conduct outreach to cities with islands, follow
up on responses including review/research of
city limits/ USA boundaries, provide assistance
with annexations or necessary USA
amendments
Prepare and distribute island maps to cities Staff L
Facilitate interagency discussions to support
remaining island annexations
Monte Sereno Staff H
Review and finalize city-conducted island
annexations
Ongoing, as needed Staff H
ITEM # 9
Attachment C
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PROPOSED WORK PLAN FOR FISCAL YEAR 2023
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PROJECT DESCRIPTION ACTIVITIES / TIMELINE RESOURCES PRIORITY* OUTREACH, GOVERNMENT / COMMUNITY RELATIONS & CUSTOMER SERVICE Conduct outreach to increase awareness of
LAFCO’s role
Presentations to cities, other agencies on LAFCO, as
relevant
Distribute LAFCO communications material to elected
officials and staff of cities, special districts and the
County
Seek exhibit opportunities at public spaces / events
Maintain website as the primary information resource
on LAFCO
Increase social media presence (Twitter)
Staff L
M
L
H
L
Engage and establish relationships with local
(cities, districts, county), regional (ABAG/MTC),
state (SGC, OPR, DoC, SWRCB) agencies,
organizations such as SDA, SCCAPO, CALAFCO,
other stakeholder groups
Attend regular meetings of SDA (quarterly), SCCAPO
(monthly), County Planning Dept.(quarterly)
Small water systems issues / legislation
Collaborate with agencies and entities with goals
common to LAFCO
Staff M
M
M
Track LAFCO related legislation EO attends CALAFCO Legislative Committee meetings
Commission takes positions and submits letters on
proposed legislation
Staff L
M
Respond to public enquiries re. LAFCO policies,
procedures and application filing requirements
Timely response to public inquiries
Update the PRA form for the website
Document research on complex inquiries
Report to Commission on complex inquiries
Staff H
L
L
H
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PROJECT DESCRIPTION ACTIVITIES / TIMELINE RESOURCES PRIORITY* SERVICE REVIEWS, SPECIAL STUDIES & SPHERE OF INFLUENCE UPDATES Countywide Fire Service Review Manage new consultant’s work and contract
Coordinate TAC meetings
Attend stakeholder interviews with consultant
Work with consultant on any data collection issues
Review and comment on administrative draft reports
Distribute Public hearing notices and coordinate
community workshops and public hearings
Prepare and distribute stakeholder/public outreach
material
Coordinate stakeholder / public engagement process
Prepare staff reports with implementation
recommendations
Follow up with agencies and report back to the
commission
Staff / Consultant H
Continue to monitor implementation of
recommendations from previous service
reviews and conduct special studies, as
necessary
RRRPD study – city took action to delay decision on
consolidation
Staff L
Map Mutual Water companies Initial maps complete, further through service review Staff L
Engage in or support grant / partnership
opportunities on issues related to enhancing
viability of agriculture, and climate smart
growth
As needed, and as opportunities arise Staff L
Compile and post JPA filings on the LAFCO
website
Notice provided, gather JPA information through
service review process
Staff L
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PROJECT DESCRIPTION ACTIVITIES / TIMELINE RESOURCES PRIORITY* COMMISSION SUPPORT Provide ongoing support to the 12
commissioners for regularly-scheduled
Commission meetings, special meetings and
Committee meetings (Finance Committee, Ad
Hoc Committee on Organizational Assessment
and the Fire Service Review TAC)
Prepare and distribute public hearing notices and
agenda packets, provide staff support during the
meetings, record minutes, broadcast meetings
Hold pre-agenda review meeting with Chair
Hold pre-meeting calls with individual commissioners
to address agenda item questions
Process commissioner per diems for attendance at
LAFCO meetings
Staff H
Keep the Commission informed EO report
off-agenda emails, as needed
Staff H
Onboarding new Commissioners Facilitate filing / completion of Form 700,
commissioner pledge, ethics training.
Update LAFCO letterhead, directory, and website
Set up vendor accounts, provide parking permits
Conduct new Commissioner orientation
Recognize outgoing commissioners for service on
LAFCO
Staff H
Commissioners Selection Process Inform appointing bodies of any upcoming vacancies
and provide information on appointment criteria
Convene ISDSC committee meeting, as necessary
Coordinate public member selection process, as
necessary
Staff H
Conduct a Strategic Planning Workshop 2018 Workshop re. LAFCO Communications and
Outreach Plan
Staff / Consultant L
Commissioner participation in CALAFCO Support commissioner participation in CALAFCO
activities / or election to the CALAFCO Board
Staff L
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PROJECT DESCRIPTION ACTIVITIES / TIMELINE RESOURCES PRIORITY* ADMINISTRATIVE PROJECTS Prepare LAFCO annual work plan March –June Staff H
Prepare LAFCO annual budget March –June Staff H
Prepare LAFCO Annual Report August 2022 Staff H
Prepare LAFCO Annual Financial Audit October 2022 (Contract with Chavan Associates
extended for FY 2023 and FY 2024)
Consultant / Staff H
Office / facility management Coordinate with Building Manager on facilities issues
Coordinate with County re. computers/network,
phone, printers, office security, procurement,
installation & maintenance
Order and manage office supplies
Make travel arrangements and process expense
reimbursements.
Process mileage reimbursements
Office space lease extended (lease extended through
April 30, 2027)
Staff H
Records management Organize scan of LAFCO records to Electronic
Document Management System (LaserFische)
Maintain LAFCO’s hard copy records
Maintain and enhance the LAFCO Website
Maintain LAFCO database
Staff/ Consultant
Staff
H
H
H
H
Contracts and payments & receivables Track consultant contracts and approve invoices
Approve vendor invoices / process annual payments
for various services/ memberships
Coordinate with County Controller’s Office and track
annual collection of payments from member agencies
Staff H
Review and update LAFCO bylaws /
administrative policies and procedures
Ongoing, as needed Staff H
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PROJECT DESCRIPTION ACTIVITIES / TIMELINE RESOURCES PRIORITY*
Staff training and development CALAFCO workshops, conferences, relevant courses Staff M
Coordinate with County on administrative
issues
Attend monthly meetings with the Deputy County
Executive
Staff H
Staff performance evaluation April - October 2022 Staff/Commission H
Comprehensive Organizational Assessment
Study – implementation
As needed Staff/Commission H
Recruitment and training of LAFCO staff One LAFCO Analyst position currently vacant –
recruitment pending County Classification study
results
Staff H
Other administrative functions mandated of a
public agency (Form 806, maintaining
liability/workers comp insurance, etc.)
Ongoing Staff H
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PROPOSED LAFCO BUDGET
FISCAL YEAR 2022- 2023
ITEM #TITLE
APPROVED
BUDGET
FY 2022
ACTUALS
Year to Date
2/28/2022
PROJECTIONS
Year End
FY 2022
PROPOSED
BUDGET
FY 2023
EXPENDITURES
Object 1: Salary and Benefits $844,239 $412,232 $691,414
$810,419
Object 2: Services and Supplies
5255100 Intra-County Professional $10,000 $0 $10,000 $10,000
5255800 Legal Counsel $75,896 $48,562 $75,000 $78,326
5255500 Consultant Services $150,000 $25,239 $100,000 $150,000
5285700 Meal Claims $750 $56 $100 $750
5220100 Insurance $8,500 $8,590 $8,590 $9,237
5250100 Office Expenses $5,000 $1,098 $2,000 $5,000
5270100 Rent & Lease $47,784 $35,838 $47,784 $53,182
5255650 Data Processing Services $22,048 $10,665 $22,048 $28,038
5225500 Commissioners' Fee $10,000 $1,300 $7,000 $10,000
5260100 Publications and Legal Notices $1,000 $551 $1,000 $1,000
5245100 Membership Dues $12,500 $12,316 $12,316 $12,887
5250750 Printing and Reproduction $1,500 $0 $500 $1,500
5285800 Business Travel $10,000 $0 $0 $10,000
5285300 Private Automobile Mileage $1,000 $7 $150 $1,000
5285200 Transportation&Travel (County Car Usage)$600 $0 $100 $600
5281600 Overhead $49,173 $24,587 $49,173 $30,041
5275200 Computer Hardware $3,000 $0 $1,000 $3,000
5250800 Computer Software $5,000 $853 $4,000 $5,000
5250250 Postage $1,000 $3 $500 $1,000
5252100 Staff/Commissioner Training Programs $2,000 $0 $1,000 $2,000
5701000 Reserves -$50,000 $0 $0 $0
TOTAL EXPENDITURES $1,210,990 $581,897 $1,033,675 $1,222,980
REVENUES
4103400 Application Fees $30,000 $24,077 $30,000 $30,000
4301100 Interest: Deposits and Investments $6,000 $4,283 $6,000 $6,000
TOTAL REVENUE $36,000 $28,360 $36,000 $36,000
3400150 FUND BALANCE FROM PREVIOUS FY $288,660 $312,351 $312,351 $201,006
NET LAFCO OPERATING EXPENSES $886,330 $241,186 $685,324 $985,974
3400800 RESERVES Available $200,000 $200,000 $200,000 $200,000
COSTS TO AGENCIES
5440200 County $295,443 $295,443 $295,443 $328,658
4600100 Cities (San Jose 50% + Other Cities 50%)$295,443 $295,443 $295,443 $328,658
4600100 Special Districts $295,443 $295,443 $295,443 $328,658
March 14, 2022
ITEM # 9
Attachment D
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$985,974
JURISDICTION REVENUE PER
2018/2019 REPORT
PERCENTAGE OF
TOTAL REVENUE
ALLOCATION
PERCENTAGES
ALLOCATED
COSTS
County N/A N/A 33.3333333%$328,658.00
Cities Total Share 33.3333333%$328,658.00
San Jose N/A N/A 50.0000000%$164,329.00
Other cities share 50.0000000%$164,329.00
Campbell $64,536,222 1.7980522%$2,954.72
Cupertino $108,060,680 3.0106928%$4,947.44
Gilroy $125,345,516 3.4922679%$5,738.81
Los Altos $57,463,937 1.6010103%$2,630.92
Los Altos Hills $16,800,340 0.4680765%$769.19
Los Gatos $51,214,203 1.4268856%$2,344.79
Milpitas $216,026,300 6.0187372%$9,890.53
Monte Sereno $3,758,600 0.1047188%$172.08
Morgan Hill $110,550,245 3.0800549%$5,061.42
Mountain View $407,506,157 11.3535827%$18,657.23
Palo Alto $701,560,301 19.5462638%$32,120.18
Santa Clara $1,078,173,133 30.0391235%$49,362.98
Saratoga $34,095,585 0.9499416%$1,561.03
Sunnyvale $614,138,449 17.1105921%$28,117.66
Total Cities (excluding San Jose)$3,589,229,668 100.0000000%$164,328.98
Total Cities (including San Jose)$328,657.98
Special Districts Total Share (Fixed %)33.3333333%$328,658.00
Aldercroft Heights County Water District 0.06233%$204.85
Burbank Sanitary District 0.15593%$512.48
Cupertino Sanitary District 2.64110%$8,680.19
El Camino Healthcare District 4.90738%$16,128.50
Guadalupe Coyote Resource Conservation District 0.04860%$159.73
Lake Canyon Community Services District 0.02206%$72.50
Lion's Gate Community Services District 0.22053%$724.79
Loma Prieta Resource Conservation District 0.02020%$66.39
Midpeninsula Regional Open Space District 5.76378%$18,943.12
Purissima Hills Water District 1.35427%$4,450.92
Rancho Rinconada Recreation and Park District 0.15988%$525.46
San Martin County Water District 0.04431%$145.63
Santa Clara Valley Open Space Authority 1.27051%$4,175.63
Santa Clara Valley Water District 81.44126%$267,663.24
Saratoga Cemetery District 0.32078%$1,054.27
Saratoga Fire Protection District 1.52956%$5,027.02
South Santa Clara Valley Memorial District 0.03752%$123.31
Total Special Districts 100.00000%$328,658.03
Total Allocated Costs $985,974.01
LAFCO COST APPORTIONMENT: COUNTY, CITIES, SPECIAL DISTRICTS
Estimated Costs to Agencies Based on the Preliminary FY 2023 LAFCO Budget
Preliminary Net Operating Expenses for FY 2023
March 1, 2022
ITEM # 9
Attachment E
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City Council Regular Meeting Minutes
June 6, 2022
Page 1 of 9
City Council Regular Meeting Minutes
06/6/2022
City of Gilroy
City Council Regular Meeting Minutes
June 6, 2022
1. OPENING
1.1. Call to Order
The meeting was called to order at 6:00 PM by Mayor Marie Blankley.
1. Pledge of Allegiance
Council Member Bracco led the Pledge of Allegiance.
2. Invocation
Pastor Greg Quirke from South Valley Community Church led the Invocation.
3. 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 Armendariz Council Member Absent
Dion Bracco Council Member Present
Zach Hilton Council Member Absent
Peter Leroe-Muñoz Vice Mayor Present
Carol Marques Council Member Present
Fred Tovar Council Member Present
1.2. Orders of the Day
Item 10.2 was pulled by Mayor Blankley. Item has been rescheduled for the June
20, 2022 City Council Regular Meeting.
1.3. Employee Introductions
Chief Espinoza introduced Community Service Officer David Carter.
Fire Chief Wyatt introduced Jeff MacPhail, promoted to Captain, and Joshua
Guerriera, promoted to Fire Engineer.
Public Works Director Jordan introduced Water Conservation Officer Robert
Moreno and Public Works Deputy Director Matt Jones.
Finance Director Sangha introduced Lourdes Andrade -Torres, promoted to
Accountant.
2. CEREMONIAL ITEMS
2.1. Proclamations, Awards, and Presentations
2.1.1. Retirement Proclamation of Patrick Sullivan
Mayor Blankley read aloud the Proclamation.
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3. PRESENTATIONS TO THE COUNCIL
1. PUBLIC COMMENT BY MEMBERS OF THE PUBLIC ON ITEMS NOT ON THE
AGENDA BUT WITHIN THE SUBJECT MATTER JURISDICTION OF THE CITY
COUNCIL
The following individuals spoke on items not on the agenda:
Bryce Kingsley (no speaker card provided) voiced concern about the
homelessness issue within the City.
Betsy Bardwell (no speaker card provided) voiced concerns about
homelessness issue in her neighborhood.
Ron Kirkish thanked the previous two speakers for speaking about the
issue of homelessness within the City.
There being no further public comment, Mayor Blankley closed public comment.
4. REPORTS OF COUNCIL MEMBERS
Council Member Bracco had nothing to report.
Council Member Marques reported on Gilroy Gardens Board of Directors, Santa
Clara Valley Habitat Agency Governing Board, and Gilroy Downtown Business
Association Board.
Council Member Tovar thanked Economic Development Committee, reported
that the Gourmet Alley Ad Hoc Committee will meet tomorrow, and thanked City
Administrator Forbis for attending the various events held in the City this past
weekend.
Vice Mayor Leroe-Muñoz reported on Silicon Valley Regional Interoperability
Authority Board and Silicon Valley Water District Water Commission.
Mayor Blankley reported on the State of the City that was held on June 4 th and
notified Assembly Bill 2181 passed the State Assembly and is now move to the
State Senate.
5. FUTURE COUNCIL INITIATED AGENDA ITEMS
Council Member Marques requested a review and update of the Social Host
Ordinance. The item received unanimous support.
Council Member Bracco requested staff to research how other cities are enacting
new laws to deal with the homelessness issue and report back to Council. The
item received unanimous support.
6. CONSENT CALENDAR (ROLL CALL VOTE)
Council Member Tovar requested Item 6.6 to be pulled out of Consent Calendar.
Mayor Blankley opened Public Comment.
There being no comments, Mayor Blankley closed public comment.
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06/6/2022
RESULT: APPROVE [UNANIMOUS] (Items 6.1 THROUGH 6.5)
MOVER: Peter Leroe-Muñoz, Vice Mayor
SECONDER: Fred Tovar, Council Member
AYES: Blankley, Bracco, Leroe-Muñoz, Marques, Tovar
ABSENT: Rebeca Armendariz, Zach Hilton
6.1. City Council - Regular Meeting - May 16, 2022 6:00 PM
A motion was made to approve the minutes.
6.2. A Resolution of the City Council of the City of Gilroy Setting the
Appropriation Limit for Fiscal Year 2022-23
A motion was made to adopt the resolution.
Enactment No.: Resolution No. 2022-30
6.3. Approval of a Notice of Acceptance of Completion and Reduction of the
Faithful Performance and Payment Security Bonds for Property
Improvement Agreement No. 2018-02, Home Ranch – Tract 10302
A motion was made to approve the Notice of Acceptance.
6.4. Approval of the First Extension Term of the Agreement for Golf Course
Services with Gilroy Golf Course, Inc.
A motion was made to approve the first exte nsion of the agreement.
6.5. Third Amendment to Agreement for Services with Alpine Landscapes
for Community Facilities District (CFD) Landscape Maintenance
Services
6.6. Consent to the Appointment of Sharon Goei as Community
Development Director
Item was pulled out Consent Calendar by Council Member Tovar.
6.6 Consent to the Appointment of Sharon Goei as Community Development
Director
Council Member Tovar voiced concerns about not hiring within City staff or hiring
within the City for this position.
RESULT: CONSENT TO APPOINTMENT [3 TO 2]
MOVER: Dion Bracco, Council Member
SECONDER: Peter Leroe-Muñoz, Vice Mayor
AYES: Blankley, Bracco, Leroe-Muñoz
NOES: Carol Marques, Fred Tovar
ABSENT: Rebeca Armendariz, Zach Hilton
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06/6/2022
7. BIDS AND PROPOSALS
7.1. AWS Data Center Environmental Impact Review (EIR) Award of
Consultant Contract
Council member Leroe-Muñoz recused himself from the item due to conflict of
interest.
Customer Service Manager Cindy McCormick gave staff presentation and
responded to Council Member questions.
Mayor Blankley opened Public Comment.
There being no comments, Mayor Blankley closed public comment.
Possible Action:
Award a Contract to Circlepoint in the amount of $175,000 for preparation
of the AWS Data Center EIR and authorize the City Administrator to execute
the contract and associated documents.
RESULT: AWARD CONTRACT TO CIRCLEPOINT [4 TO 0]
MOVER: Dion Bracco, Council Member
SECONDER: Fred Tovar, Council Member
AYES: Marie Blankley, Dion Bracco, Carol Marques, Fred Tovar
ABSENT: Rebeca Armendariz, Zach Hilton
RECUSED: Peter Leroe-Muñoz
7.2. Award a Contract to Ausonio, Inc. in the amount of $499,052 for the
Cherry Blossom Apartment Refurbishment Project
Facilities Superintendent Walter Dunckel gave staff presentation and responded
to Council Member questions.
Mayor Blankley opened Public Comment.
There being no comments, Mayor Blankley closed public comment.
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Possible Action:
It is staff's recommendation for the City Council to:
1. Adopt a resolution of the City Council of the City of Gilroy amending the
fiscal year 2022-2023 budget to appropriate $499,052 for this project:
$250,000 from the fund balance of the Housing Trust Fund, $150,000
from the General Fund, and $99,052 from the fund balanc e of Facilities
Internal Service Fund.
2. Award a construction contract in the amount of $499,052 to Ausonio,
Inc. for the refurbishment of the Cherry Blossom Apartment building.
3. Authorize the City Administrator to execute the related contract
documents and approve any future change orders and items within the
approved project budget.
RESULT: APPROVE RESOLUTION, AWARD CONTRUCTION
CONTRACT TO AUSONIO, INC., AND AUTHORIZE CITY
ADMINISTRATOR TO EXECUTE RELATED CONTRACTS
[UNANIMOUS]
MOVER: Fred Tovar, Council Member
SECONDER: Carol Marques, Council Member
AYES: Blankley, Bracco, Leroe-Muñoz, Marques, Tovar
ABSENT: Rebeca Armendariz, Zach Hilton
Enactment No.: Resolution No. 2022-31
8. PUBLIC HEARINGS
There was none.
9. UNFINISHED BUSINESS
There was none.
10. INTRODUCTION OF NEW BUSINESS
10.1. Consideration of Entering into an Agreement with Visit Gilroy for
Tourism-Related Economic Development Services and Adopting a
Resolution of the City Council of the City of Gilroy Amending the Budget
for the City of Gilroy for Fiscal Year 2022-23
Senior Management Analyst gave staff presentation. He along with President
Howard from Visit Gilroy responded to Council Member questions.
Mayor Blankley opened Public Comment.
There being no comments, Mayor Blankley closed public comment.
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Possible Action:
Council:
a) Approve the agreement and authorize the City Administrator to execute;
and
b) Adopt a resolution amending the Fiscal Year 2022-23 Operating Budget.
RESULT: APPROVE AGREEMENT AND RESOLUTION [UNANIMOUS]
MOVER: Fred Tovar, Council Member
SECONDER: Carol Marques, Council Member
AYES: Blankley, Bracco, Leroe-Muñoz, Marques, Tovar
ABSENT: Rebeca Armendariz, Zach Hilton
Enactment No.: Resolution No. 2022-32
10.2. Approval of Third Extension of the Exclusivity Agreement with Sharks
Sports & Entertainment, LLC to Fully Assess the Potential of Having the
Sharks Organization Operate a New Indoor Recreational Facility
Item was pulled by Council.
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10.3. Willey House Lease Amendment
Management Analyst Decker gave staff presentation and responded to Council
Member questions.
Mayor Blankley opened Public Comment.
There being no comments, Mayor Blankley closed public comment.
Possible Action:
Approve an amendment to the lease with Advantage Peak, LLC for use of
the City-owned property at 140 5th Street, also known as the Willey House.
RESULT: APPROVE [4 TO 0]
MOVER: Dion Bracco, Council Member
SECONDER: Peter Leroe-Muñoz, Vice Mayor
AYES: Marie Blankley, Dion Bracco, Peter Leroe-Muñoz, Carol
Marques
ABSTAIN: Fred Tovar
ABSENT: Rebeca Armendariz, Zach Hilton
10.4. Adopt a Resolution of the City Council of the City of Gilroy Authorizing
the City Administrator to Execute Agreements with the California
Department of Transportation for the City Of Gilroy’s Clean California
Grant Project
Management Analyst Decker gave staff presentation and responded to Council
Member questions.
Mayor Blankley opened Public Comment.
There being no comments, Mayor Blankley closed public comment.
Possible Action:
Council adopt the resolution.
RESULT: APPROVE [UNANIMOUS]
MOVER: Carol Marques, Council Member
SECONDER: Fred Tovar, Council Member
AYES: Blankley, Bracco, Leroe-Muñoz, Marques, Tovar
ABSENT: Rebeca Armendariz, Zach Hilton
Enactment No.: Resolution No. 2022-33
10.5. Approval of Capital Improvement Plan Projects for Funding by the Road
Repair and Accountability Act of 2017 (SB-1) Funds
Public Work Director Jordan gave staff presentation and responded to Council
Member questions.
Mayor Blankley opened Public Comment.
There being no comments, Mayor Blankley closed public comment.
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Possible Action:
Adopt a Resolution of the City Council of the City of Gilroy adopting a list
of projects for Fiscal Year 2022-23 to be funded by SB-1: The Road Repair
and Accountability Act of 2017.
RESULT: APPROVE [UNANIMOUS]
MOVER: Peter Leroe-Muñoz, Vice Mayor
SECONDER: Fred Tovar, Council Member
AYES: Blankley, Bracco, Leroe-Muñoz, Marques, Tovar
ABSENT: Rebeca Armendariz, Zach Hilton
Enactment No.: Resolution No. 2022-34
11. CITY ADMINISTRATOR'S REPORTS
11.1. Update on the City’s Social Media Strategy
Communications Manager Bedell provided staff presentation and responded to
any Council Member questions on this item.
11.2. Summer Aquatics Program
City Administrator Forbis provided staff presentation on this item.
11.3. Potential Design-Build Charter Amendment
City Administrator Forbis provided staff presentation. He, City Clerk Pham, and
Public Works Director Jordan responded to Council Member questions.
12. CITY ATTORNEY'S REPORTS
There were none.
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 7:45 p.m .
The City Council convened in Closed Session at 7:50 p.m.
The Council voted to stay in closed session was unanimous.
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13.1. CONFERENCE WITH LABOR NEGOTIATORS - COLLECTIVE
BARGAINING UNITS Pursuant to GC Section 54957.6 and GCC Section
17A.11 (4)
Collective Bargaining Units: AFSCME Local 101 (General & Supervisory
Units) Representing Employees Affiliated with AFSCME, Local 101;
Local 2805, IAFF Fire Unit Representing Gilroy Firefighters; Gilroy
Management Association Representing Mid-Management Employees;
Unrepresented Exempt Employees (Confidential, Department Heads &
Council-Appointed); Unrepresented Confidential Non-Exempt
Employees; Part-Time/Temporary/Seasonal Employees (Hourly &
Exempt)
City Negotiators: Jimmy Forbis, City Administrator; LeeAnn McPhillips,
Administrative Services & Human Resources Director/Risk Manager
Anticipated Issues(s) Under Negotiation: Wages, Hours, Benefits, Working
Conditions; Memorandums of Understanding: City of Gilroy and Gilroy
Fire Fighters Local 2805, City of Gilroy and AFSCME, Local 101 General
& Supervisory Units; City of Gilroy and Gilroy Management Association
(GMA)
No reportable action.
14. ADJOURN TO OPEN SESSION
Mayor Blankley reported out of Closed Session as shown above.
15. ADJOURNMENT
The meeting was adjourned at 8:58 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
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Page 1 of 1
City Council Special Study Session Minutes
01/11/2021
City of Gilroy
City Council Meeting Minutes
January 11, 2021
STUDY SESSION - 6:00 P.M.
1. Call to Order
The meeting was called to order at 6:00 PM by Mayor Marie Blankley
Attendee Name Title Status
Marie Blankley Mayor Remote
Rebeca Armendariz Council Member Remote
Dion Bracco Council Member Remote
Zach Hilton Council Member Remote
Peter Leroe-Muñoz Council Member Remote
Carol Marques Council Member Remote
Fred Tovar Council Member Remote
2. STUDY SESSION
2.A. Gourmet Alley Presentation by the Gilroy Downtown Business
Association
The presentation was given by Gary Walton, John Taft and Jose Montes of the
Gilroy Downtown Business Association.
Mayor Blankley Public comment was opened.
Nancy Maciel of the Gilroy Downtown Business Association spoke on the
funding needed for the proposal and benefits to the community to drive
business in the downtown.
Al Pinheiro spoke on the need to start with the vision and take the idea
one piece at a time to create excitement in the downtown and described
the downtown specific plan process and streetscape work in the early
2000's.
Rita Imerson spoke on the concept describing the work of bringing in
talent.
Dave Peoples spoke in support of the proposal and parking needs.
Michelle Campbell of the Gilroy Downtown Business Association spoke in
support of the proposal.
Diane Sturla suggested that vehicle traffic patterns be adjusted to one -way
in the downtown.
Jane Howard of Visit Gilroy/California Welcome Center spoke in support
of the initiative.
There being no further speakers, Mayor Blankley closed public comment.
3. ADJOURNMENT
The meeting was adjourned 7:34 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
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City Council Special Strategic Meeting Minutes
02/20/2021
City of Gilroy
City Council Meeting Minutes
February 20, 2021
1. OPENING
Call to Order and Roll Call
Attendee Name Title Status
Marie Blankley Mayor Remote
Rebeca Armendariz Council Member Remote
Dion Bracco Council Member Remote
Zach Hilton Council Member Remote
Peter Leroe-Muñoz Council Member Remote
Carol Marques Council Member Remote
Fred Tovar Council Member Remote
2. Mayor's Opening Remarks
Mayor Blankley provided opening remarks.
3. City Administrator Introduction and Review of Meeting
Objectives
City Administrator Forbis introduced the meeting and provided an
overview.
Mayor Blankley opened public comment.
Jan Bernstein Chargin presented Council a plan to community plan
to address homelessness.
Dashiell Leeds requested Council to agendize new Reach Codes
by the end of this year to combat climate change.
Vanessa Ashford requested Council to review and accept the
community plan to address homelessness.
There being no further speakers, Mayor Blankley closed public comment.
4. Order of the Day
A motion was made from Council Member Tovar, seconded by
Council Member Leroe-Muñoz, to work through the planned lunch
recess. The motion was carried by the following vote.
Ayes: Council Member Bracco, Leroe-Muñoz, Marques, Tovar,
and Mayor Blankley
Noes: Council Member Armendariz and Hilton
2. Strategic Planning Workshop
City Administrator Forbis facilitated the workshop and provided an overview.
Mayor Blankley opened public comment.
Bruce Negel wanted more information about the City’s sustai nability plan and its
impact on the youth. He also brought attention to the City’s HVAC plan.
M. Scelioti requested for Council to accept the community plan to address
homelessnee.
Jan Bernstein Chargin presented Council a plan to community plan to addre ss
homelessness.
Vanessa Ashford addressed the issue of extreme low-income housing to the
Council.
Stephanie Brenal commented on the issue of homelessness within the City and
that the Council should prioritize the residents and businesses that have
contributed to their taxes first.
Sabrina Herrera commented on that serving the on-house neighbor is an
important priority and requested a community forum with stakeholders.
There being no further speakers, Mayor Blankley closed public comment.
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City Council Special Strategic Meeting Minutes
02/20/2021
3. Adjournment
The meeting was adjourned at 3:02 PM 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
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City Council Special Study Session Minutes
03/8/2021
City of Gilroy
City Council Special Study Session Minutes
March 8, 2021
1. Call to Order and Roll Call
The meeting was called to order at 6:00 P.M.
Attendee Name Title Status
Marie Blankley Mayor Remote
Rebeca Armendariz Council Member Remote
Dion Bracco Council Member Remote
Zach Hilton Council Member Remote
Peter Leroe-Muñoz Council Member Absent
Carol Marques Council Member Remote
Fred Tovar Council Member Remote
2. STUDY SESSION
2.1. (Review of/or Consideration of) Objective Design Standards (for multi-
family residential projects)
Senior Planner Cindy McCormick gave staff presentation. Brent Gibbons from
Mintier Harnish gave a presentation to Council Members. Both responded to
Council Member questions.
Mayor Blankley opened public comment.
Carolyn Tognetti inquired if the standards are for all types of multifamily
units.
There being no further speakers, Mayor Blankley closed public comment.
Possible Action:
Receive report and provide direction to staff.
2.2. Introduction to the City's 5-Year Pavement Management Program
City Engineer Heap and Engineer Than gave staff presentation and responded to
Council Member questions.
Mayor Blankley opened Public Comment.
There being no speakers, Mayor Blankley closed public comment.
Possible Action:
Receive report and provide feedback.
3. ADJOURNMENT
The meeting was adjourned at 8:16 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
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City Council Special Study Session Minutes
09/14/2021
City of Gilroy
City Council Special Study Session Minutes
September 14, 2021
1. CALL TO ORDER
The meeting was called to order at 6:00 PM by Mayor Marie Blankley
1.1. Posting of the Agenda
Management Assistant Ruiz announced that the agenda had been posted on
Friday, September 10th at 1:17 p.m.
Attendee Name Title Status
Marie Blankley Mayor Remote
Rebeca Armendariz Council Member Absent
Dion Bracco Council Member Remote
Zach Hilton Council Member Absent
Peter Leroe-Muñoz Council Member Remote
Carol Marques Council Member Remote
Fred Tovar Council Member Remote
2. STUDY SESSION
2.1. Valley Transit Authority (VTA) Presentation - Transit and the Gilroy
Transit Center
Mayor Blankley announced that public comment would be taken twice: before the
VTA presentation and after the VTA presentation.
Public comments received prior to the presentation by: Swanee Edwards,
Roland, Michael Margarita, John Taft, and Catherine.
City Administrator Forbis introduced Community Development Director Karen
Garner, Public Works Director Daryl Jordan, and VTA representative's Jay Tyree
and Deborah Degang. Tyree and Degang presented on VTA Transit Service,
Caltrain Service and High-Speed Rail Service. Both City staff and VTA
representatives responded to Council Member questions.
Comments and concerns were expressed by both the public and council
regarding shared parking, removal of lateral parking, enough parking spaces for
commuters and highway congestion management. Council asked VTA
representatives to take into consideration how will Valley Transit Authority plan
manage for future commuter congestion.
Public comments received after the presentation by: Stefanie Elle, Connie
Rogers, Catherine, Michael Margarita, Eugene Bradley, Christina Watson,
Swanee Edwards, Cheryl Parks, Roland, Carolyn Tognetti, Bob Weaver, John
Taft, Andrew Ridley, and Lisa Mastroianni-Bender.
Degang thanked the Council for their time and to be able to bring this topic up for
discussion. She closed by stating the next steps for VTA is to assess the Valley
Transportation Plan (VTP) and address the transit's vision for the entire county
and what this means post pandemic. VTP will also be focusing on how we should
look at the growing future congestion and where VTA wants to focus on multi -
module.
Possible Action:
Receive report from VTA concerning the current status and future plans for
transit service and the long-term use of the Gilroy Transit Center.
3. ADJOURNMENT
Mayor Blankley adjourned the meeting at 8:07 p.m.
I HEREBY CERTIFY that the foregoing minutes were duly and regularly adopted at
a regular meeting of the City Council of the City of Gilroy.
/s/ Thai Pham, CMC, CPMC
City Clerk
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City of Gilroy
STAFF REPORT
Agenda Item Title: Adopt a Resolution of the City Council of the City of Gilroy
Setting the Tax Rate for Fiscal Year 2022-2023 for the Gilroy
Community Library Project Bonds
Meeting Date: June 20, 2022
From: Jimmy Forbis, City Administrator
Department: Finance Department
Submitted By: Harjot Sangha, Finance Director
Prepared By: Harjot Sangha, Finance Director
Strategic Plan Goals
Develop a Financially
Resilient Organization
☐ Ensure Neighborhood
Equity from City
Services
☐ Promote Economic
Development
Activities
☐ Promote Safe,
Affordable Housing for All
☐ Maintain and Improve
City Infrastructure
RECOMMENDATION
Adopt a Resolution of the City Council of the City of Gilroy setting the tax rate for F iscal
Year 2022-2023 with respect to general obligation bonds for the Gilroy Community
Library Project.
BACKGROUND
On November 4, 2008, the voters of the City of Gilroy approved ballot Measure F for
construction of public library improvements adjacent to City Hall. Measure F provided
for the authorization to issue general obligation bonds for up to $37 million. It was
anticipated that the authorization would be split between two series of bonds. The first
series was issued in May 2009 and the second series was issued in August 2010.
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There is $3 million remaining in unissued authorization available to the City for future
use. The City has spent the majority of both the Series A and Series B bond proceeds
on the construction of the new library and other library facility improvements. There is
approximately $5 million remaining of the bond proceeds.
During fiscal year 2019-2020, the bonds were refinanced to take advantage of the low
interest rate environment. The refinancing saved property owners interest costs since
the refinancing included a lower interest rate on the principal, thus lowering the required
levy rate.
ANALYSIS
Staff recommends the FY23 tax rate of $0.017 per $100 of assessed valuation, which
represents a tax of approximately $17 per $100,000 of assessed valuation (after
applicable homeowner exemptions). As the assessed valuations of properties increase
over time, the ad valorem tax rate for the library bond will decrease. The prior year’s
rate was also $0.017 per $100.
FISCAL IMPACT/FUNDING SOURCE
Adoption of the tax rate for FY23 will keep the levy amount for taxpayers unchanged
from the prior year and will not hinder the annual repayment of the bonds.
Attachments:
1. Draft Resolution
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RESOLUTION NO. 2022-XX
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GILROY SETTING THE TAX RATE FOR FISCAL YEAR
2022-2023 WITH RESPECT TO GENERAL OBLIGATION
BONDS FOR THE GILROY COMMUNITY LIBRARY
PROJECT
WHEREAS, more than two-thirds of the electors voting at a special municipal election
held on November 4, 2008, voted for a proposition authorizing the issuance by the City of general
obligation bonds in the aggregate principal amount of $37,000,000 (the “Bonds”) for the purpose
of providing funds for the acquisition, construction, and improvement of public library facilities;
and
WHEREAS, the City has previously issued the initial series of the Bonds in the aggregate
principal amount of $10,500,000 on May 5, 2009, and the second series of the Bonds in the
aggregate principal amount of $23,500,000 on August 3, 2010; and
WHEREAS, the City approved the refinancing of the two series of bonds on May 20, 2019
(providing for a reduction in bond debt service starting in tax collection year 2019/20) with the
issuance of the 2019 Refunding General Obligation Bonds; and
WHEREAS, pursuant to Section 43632 of the California Government Code, the City
Council is required annually to levy and collect a tax sufficient to pay the principal of and interest
on the Bonds coming due and payable before the proceeds of a tax levied at the next general tax
levy will be available; and
WHEREAS, the City has determined that in order to provide sufficient funds to pay the
principal of and interest on the Bonds coming due and payable on February 1, 2023, and August
1, 2023, it is necessary to levy a tax upon all taxable property in the City at the rate of 0.0170% of
assessed valuation, based on the estimated assessed values for all rolls (secured, unsecured and
utility) for fiscal year 2022-2023.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Gilroy as
follows:
Section 1. Levy of Tax. The City Council hereby determines that the tax rate necessary
to pay the principal of and interest on the Bonds coming due and payable on February 1, 2023, and
August 1, 2023, is 0.0170% of assessed valuation, and such tax rate shall be and is hereby levied
in accordance with all applicable requirements of law.
Section 2. Collection of Tax. The Finance Director is hereby directed to forward a copy
of this Resolution to the Auditor-Controller of Santa Clara County, and to the Board of Supervisors
of the County, and to take such actions and execute such documents as may be required to cause
the tax rate set forth in Section 1 to be placed on the 2022-2023 property tax bill and collected by
the County.
8.6.a
Packet Pg. 81 Attachment: Draft Resolution (3810 : Library Bond Tax Rate)
Resolution No. 2022-XX
Setting Tax Rate for FY 22-23
City Council Regular Meeting | June 20, 2022
Page 2 of 2
Section 3. Application of Tax. As provided in Section 43634 of the California
Government Code, all taxes levied pursuant to this Resolution shall be used only for payment of
the Bonds and the interest thereon.
Section 4. Effective Date. This Resolution shall take effect from and after the date of its
passage and adoption.
PASSED AND ADOPTED at a Regular Meeting of the City Council of the City of Gilroy
on this 20th day of June 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
8.6.a
Packet Pg. 82 Attachment: Draft Resolution (3810 : Library Bond Tax Rate)
City of Gilroy
STAFF REPORT
Agenda Item Title: Amendment to the Agreement with Cal-West Lighting and
Signal Maintenance, Inc. for Traffic Signal and Streetlight
Maintenance
Meeting Date: June 20, 2022
From: Jimmy Forbis, City Administrator
Department: Public Works Department
Submitted By: Daryl Jordan, PE, Public Works Director
Prepared By: Ogarita Carranza, Management Analyst
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 an amendment to the agreement with Cal-West Lighting and Signal
Maintenance, Inc. to extend the contract term to June 30, 2024, and authorize the City
Administrator to execute the amendment and related documents.
EXECUTIVE SUMMARY
Due to the continuous need for regular maintenance and emergency responses for
traffic signal and streetlight maintenance, the City needs support from Cal-West Lighting
and Signal Maintenance, Inc.
Under the existing contract, Cal-West is the City’s traffic signal and streetlight
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Packet Pg. 83
maintenance and repair contractor. They provide services such as: routine inspection
and preventive maintenance to the City’s streetlight and traffic signal systems, conduct
emergency repairs, and provide underground service alert (USA) marking. An extension
to the Cal-West agreement would allow them to continue to provide these essential
services to the City.
BACKGROUND
Currently, the City owns 34 traffic signal systems and maintains an additional 11 traffic
signal systems that are Caltrans owned. Additionally, the City also owns and maintains
4,847 streetlights. Both the traffic signal and streetlight systems require regular
maintenance that includes, but not limited to; monthly routine, 3 -month routine, 6-month
routine, and annual routine maintenance.
The City is also required to respond to emergency calls regarding public safety. These
responses can range from a simple knockdown, to traffic collisions, to power outages.
These repairs vary in type and frequency from month to month.
Lastly, this agreement also allows the City to utilize Cal -West for the Underground
Service Alert (USA) program. This program requires the City to mark all City
underground utilities such as traffic loops, electrical conduits, and signal networking
systems prior to any third-party excavations. Due to the increase in construction
activities within the City, this service is not just essential but also mandatory.
ANALYSIS
Traffic signal and streetlight maintenance is a specialized electrical and electronics
service that few general contractors are qualified to provide. Cal-West was selected
through a competitive review and interview process and has been providing this service.
The original contract, in the amount of $306,210 annually, is effective until June 30,
2022; however, per the existing contract, the City may elect to extend the contract for
two additional one-year terms, through June 30, 2024.
Per Exhibit A, Cal-West has proposed to extend their contract without adjusting the
current pricing or submitting for a consumer price index increase for the next two fiscal
years, FY23 and FY24. For this reason, Staff recommends the Council to approve a
contract extension with Cal-West Lighting to the end of FY24 (June 30, 2024)
ALTERNATIVES
Council could choose not to approve the amendment to the contract with Cal -West
Lighting and Signal Maintenance, Inc. This would ter minate any existing maintenance
contract with the contractor and may result in delay in services in relation to
preventative maintenance and emergency responses. Staff does not recommend this
alternative.
FISCAL IMPACT/FUNDING SOURCE
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This contract amendment would extend the contract through June 30, 2024. Sufficient
funds have been budgeted in the approved FY23 budget under the Gas Tax Fund 209
(2105) and 213 (2103) for City’s traffic signal and streetlight maintenance and repair
services, as such, the extension of the contract with Cal-West is adequately funded in
FY23, and will be included in the proposed FY24 budget.
NEXT STEPS
With Council approval staff will finalize the amendment to the agreement and complete
the approval process.
Attachments:
1. Exhibit A - Cal-West Amendment
2. Cal-West Agreement
3. Gilroy CPI 2022-2023
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-1- 4845-8215-5540v1
MDOLINGER\04706083
FIRST AMENDMENT TO AGREEMENT FOR SERVICES WITH CAL-WEST LIGHTING
AND SIGNAL MAINTENNANCE, INC. FOR TRAFFIC SIGNAL AND STREET LIGHT
MAINTENANCE SERVICES
This First Amendment to the Agreement for Services (“First Amendment”) is made and entered
into as of July 1, 2022 (“Effective Date”), by and between the City of Gilroy, a California municipal
corporation (“CITY”), and Cal-West Lighting and Signal Maintenance, Inc. (“CONTRACTOR”).
WHEREAS, the City of Gilroy, a municipal corporation (“City”), and Cal-West Lighting and
Signal Maintenance, Inc. entered into that certain agreement entitled Agreement with Cal-West
Lighting and Signal Maintenance, Inc. for Traffic Signal and Streetlight Maintenance effective on July
1, 2019 hereinafter referred to as “Original Agreement”; and
WHEREAS, City and Cal-West Lighting and Signal Maintenance, Inc. have determined it is in
their mutual interest to amend certain terms of the Original Agreement.
NOW, THEREFORE, FOR VALUABLE CONSIDERATION, THE PARTIES AGREE AS
FOLLOWS:
1. Article 1 (Term of Agreement) of the Original Agreement shall be amended to read as follows:
“This Agreement will become effective on July 1, 2022 and will continue in effect through June
30, 2024 unless terminated in accordance with the provisions of Article 7 of the Original
Agreement.
3. This Amendment shall be effective on July 1, 2022.
4. Except as expressly modified herein, all of the provisions of the Original Agreement shall
remain in full force and effect. In the case of any inconsistencies between the Original Agreement and
this Amendment, the terms of this Amendment shall control.
5. This Amendment may be executed in counterparts, each of which shall be deemed an original,
but all of which together shall constitute one and the same instrument.
IN WITNESS WHEREOF, the parties have caused this Amendment to be executed as of the
dates set forth besides their signatures below.
CITY OF GILROY ALPINE LANDSCAPES
By: By:
[signature] [signature]
Jimmy Forbis Craig H. Geis, Jr.
[employee name] [name]
City Administrator President
[title/department] [title]
Date: Date:
8.7.a
Packet Pg. 86 Attachment: Exhibit A - Cal-West Amendment (3824 : Amendment to Agreement with Cal-West Lighting and Signal Maintenance, Inc.)
-2- 4845-8215-5540v1
MDOLINGER\04706083
Approved as to Form ATTEST:
City Attorney City Clerk
8.7.a
Packet Pg. 87 Attachment: Exhibit A - Cal-West Amendment (3824 : Amendment to Agreement with Cal-West Lighting and Signal Maintenance, Inc.)
AGREEMENT FOR SERVICES
19-RFP-PW-426 Traffic Signal and Streetlight Maintenance and Repair Services
This AGREEMENT made this Y' day of July. 211 between:
CITY: City of Gilroy, having a principal place of business at
7351 Rosanna Street, Gilroy, California
and CONTRACTOR: Cal -West Liahtina & Shmal Maintenance. Inc.. having a principal place of
business at 51a N"rdi Marbure WV San Jose. CA 95133.
ARTICLE 1. TERM OF AGREEMENT
This Agreement will become effective on 7/1/2019 and will continue in effect through 6/302022
unless terminated in accordance with the provisions of Article 7 of this Agreement.
Any lapse in insurance coverage as required by Article 5, Section D of this Agreement shall
terminate this Agreement regardless of any other provision stated herein.
Initial
ARTICLE 2. MDR PENDENT CONTRACTOR STATUS
It is the express intention of the parties that CONTRACTOR is an independent contractor and
not an employee, agent, joint venturer or partner of CITY. Nothing in this Agreement shall be
interpreted or construed as creating or establishing the relationship of employer and employee
between CITY and CONTRACTOR or any employee or agent of CONTRACTOR. Both parties
acknowledge that CONTRACTOR is not an employee for state or federal tax purposes.
CONTRACTOR shall not be entitled to any of the rights or benefits afforded to CITY'S
employees, including, without limitation, disability or unemployment insurance, workers'
compensation, medical insurance, sick leave, retirement benefits or any other employment
benefits. CONTRACTOR shall retain the right to perform services for others during the term of
this Agreement.
ARTICLE 3. SERVICES TO BE PERFORMED BY CONTRACTOR
A. Specific Services
CONTRACTOR agrees to: Perform the services as outlined in Exhibit "A" ("Specific
Provisions") and Exhibit "B" ("Scope of Services"), within the done periods described in
Exhibit "C" ("Milestone Schedule").
B. Method of Performing Services
CONTRACTOR shall determine the method, details and means of performing the above -
described services. CITY shall have no right to, mid shall not, control the mariner or determine
the method of accomplishing CONTRACTOR'S services.
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Packet Pg. 88 Attachment: Cal-West Agreement (3824 : Amendment to Agreement with Cal-West Lighting and Signal Maintenance, Inc.)
C. Employment of Assistants
CONTRACTOR may, at the CONTRACTOR'S own expense, employ such assistants as
CONTRACTOR deems necessary to perform the services required of CONTRACTOR by this
Agreement, subject to the prohibition against assignment and subcontracting contained in
Article 5 below. CITY may not control, direct, or supervise CONTRACTOR'S assistants in the
performance of those services. CONTRACTOR assumes full and sole responsibility for the
payment of all compensation and expenses of these assistants and for all state and federal income
tax, unemployment insurance, Social Security, disability insurance and other applicable
withholding.
D. Place of Work
CONTRACTOR shall perform the services required by this Agreement at any place or location
and at such times as CONTRACTOR shall determine is necessary to properly and timely
perform CONTRACTOR'S services.
ARTICLE 4.
A. Consideration
In consideration for the services to be performed by CONTRACTOR, CITY agrees to pay
CONTRACTOR the amounts set forth in Exhibit "D" ("Payment Schedule'). In no event
however shall the total compensation paid to CONTRACTOR exceed $918.630.00 3306210
annually).
B. Invoices
CONTRACTOR shal I submit invoices for all services rendered
C. Payment
Payment shall be due according to the payment schedule set forth in Exhibit "D". No payment
will be made unless CONTRACTOR has first provided City with a written receipt of invoice
describing the work performed and any approved direct expenses (as provided for in
Exhibit "A", Section IV) incurred during the preceding period. If CITY objects to all or any
portion of any invoice, CITY shall notify CONTRACTOR of the objection within thirty (30)
days from receipt of the invoice, give reasons for the objection, and pay that portion of the
invoice not in dispute. It shall not constitute a default or breach of this Agreement for CITY not
to pay any invoiced amounts to which it has objected until the objection has been resolved by
mutual agreement of the parties.
D. Expenses
CONTRACTOR shall be responsible for all costs and expenses incident to the performance of
services for CITY, including but not limited to, all costs of equipment used or provided by
CONTRACTOR, all fees, fines, licenses, bonds or taxes required of or imposed against
CONTRACTOR and all other of CONTRACTOR'S costs of doing business. CITY shall not be
aesszzstasetn _Z_ ucm 70MI
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Packet Pg. 89 Attachment: Cal-West Agreement (3824 : Amendment to Agreement with Cal-West Lighting and Signal Maintenance, Inc.)
responsible for any expenses incurred by CONTRACTOR in performing services for CITY,
except for those expenses constituting "direct expenses" referenced on Exhibit "A."
ARTICLE 5. OBLIGATIONS OF CONTRACTOR
A. Tools and Instrumentalities
CONTRACTOR shall supply all tools and instrumentalities required to perform the services
under this Agreement at its sole cost and expense. CONTRACTOR is not required to purchase
or rent any tools, equipment or services from CITY,
B. Workers' Compensation
CONTRACTOR agrees to provide workers' compensation insurance for CONTRACTOR'S
employees and agents and agrees to hold harmless, defend with counsel acceptable to CITY and
indemnify CITY, its officers, representatives, agents and employees from and against any and all
claims, suits, damages, costs, fees, demands, causes of action, losses, liabilities and expenses,
including without limitation reasonable attorneys' fees, arising out of any injury, disability, or
death of any of CONTRACTOR'S employees.
C. Indemnification of Liability, Duty to Defend
As to all liability, to the fullest extent permitted by law, CONTRACTOR shall defend, through
counsel approved by CITY (which approval shall not be unreasonably withheld), indemnify and
hold harmless CITY, its officers, representatives, agents and employees against any and all suits,
damages, costs, fees, claims, demands, causes of action, losses, liabilities and expenses,
including without limitation attorneys' fees, arising or resulting directly or indirectly from any
act or omission of CONTRACTOR or CONTRACTOR'S assistants, employees or agents,
including all claims relating to the injury or death of any person or damage to any property.
D. Insurance
In addition to any other obligations under this Agreement, CONTRACTOR shall, at no cost to
CITY, obtain and maintain throughout the term of this Agreement: (a) Commercial Liability
Insurance on a per occurrence basis, including coverage for owned and non -owned automobiles,
with a minimum combined single limit coverage of $1,000,000 per occurrence for all damages
due to bodily injury, sickness or disease, or death to any person, and damage to property,
including the loss of use thereof. As a condition precedent to CITY'S obligations under this
Agreement, CONTRACTOR shall furnish written evidence of such coverage (naming CITY, its
officers and employees as additional insureds on the Comprehensive Liability insurance policy
referred to in (a) immediately above via a specific endorsement) and requiring thirty (30) days
written notice of policy lapse or cancellation, or of a material change in policy terms.
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Packet Pg. 90 Attachment: Cal-West Agreement (3824 : Amendment to Agreement with Cal-West Lighting and Signal Maintenance, Inc.)
E. Assignment
Notwithstanding any other provision of this Agreement, neither this Agreement nor any duties or
obligations of CONTRACTOR under this Agreement may be assigned or subcontracted by
CONTRACTOR without the prior written consent of CITY, which CITY may withhold in its
sole and absolute discretion.
F. State and Federal Taxes
As CONTRACTOR is not CITY'S employee, CONTRACTOR shall be responsible for paying
all required state and federal taxes. Without limiting the foregoing, CONTRACTOR
acknowledges and agrees that:
CITY will not withhold FICA (Social Security) from CONTRACTOR'S
payments;
CITY will not make state or federal unemployment insurance contributions on
CONTRACTOR'S behalf;
CITY will not withhold state or federal income tax from payment to
CONTRACTOR;
CITY will not make disability insurance contributions on behalf of
CONTRACTOR;
CITY will not obtain workers' compensation insurance on behalf of
CONTRACTOR.
ARTICLE 6. OBLIGATIONS OF CITY
A. Cooperation of City
CITY agrees to respond to all reasonable requests of CONTRACTOR and provide access, at
reasonable times following receipt by CITY of reasonable notice, to all documents reasonably
necessary to the performance of CONTRACTOR'S duties under this Agreement.
B. Assignment
CITY may assign this Agreement or any duties or obligations thereunder to a successor
governmental entity without the consent of CONTRACTOR. Such assignment shall not release
CONTRACTOR from any of CONTRACTOR'S duties or obligations under this Agreement.
ARTICLE 7. TERMINATION OF AGREEMENT
A. Sale of CONTRACTOR's Business/ Death of CONTRACTOR
CONTRACTOR shall notify CITY of the proposed sale of CONTRACTOR's business no later
than thirty (30) days prior to any such sale. CITY shall have the option of terminating this
Agreement within thirty (30) days after receiving such notice of sale. Any such CITY
termination pursuant to this Article 7.A shall be in writing and sent to the address for notices to
CONTRACTOR set forth in Exhibit A, Subsection V.H., no later than thirty (30) days after
CITY' receipt of such notice of We.
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Packet Pg. 91 Attachment: Cal-West Agreement (3824 : Amendment to Agreement with Cal-West Lighting and Signal Maintenance, Inc.)
If CONTRACTOR is an individual, this Agreement shall be deemed automatically terminated
upon death of CONTRACTOR.
B. Termination by City for Default of CONTRACTOR
Should CONTRACTOR default in the performance of this Agreement or materially breach any
of its provisions, CITY, at CITY'S option, may terminate this Agreement by giving written
notification to CONTRACTOR. For the purposes of this section, material breach of this
Agreement shall include, but not be limited to the following:
CONTRACTOR'S failure to professionally and/or timely perform any of the
services contemplated by this Agreement.
2. CONTRACTOR'S breach of any of its representations, warranties or covenants
contained in this Agreement.
CONTRACTOR shall be entitled to payment only for work completed in accordance with the
terms of this Agreement through the date of the termination notice, as reasonably determined by
CITY, provided that such payment shall not exceed the amounts set forth in this Agreement for
the tasks described on Exhibit C" which have been fully, competently and timely rendered by
CONTRACTOR. Notwithstanding the foregoing, if CITY terminates this Agreement due to
CONTRACTOR'S default in the performance of this Agreement or material breach by
CONTRACTOR of any of its provisions, then in addition to any other rights and remedies CITY
may have, CONTRACTOR shall reimburse CITY, within ten (10) days after demand, for any
and all costs and expenses incurred by CITY in order to complete the tasks constituting the scope
of work as described in this Agreement, to the extent such costs and expenses exceed the
amounts CITY would have been obligated to pay CONTRACTOR for the performance of that
task pursuantto this Agreement.
C. Termination for Failure to Make Agreed -Upon Payments
Should CITY tail to pay CONTRACTOR all or any part of the compensation set forth in Article
4 of this Agreement on the date due, then if and only if such nonpayment constitutes a default
under this Agreement, CONTRACTOR, at the CONTRACTOR'S option, may terminate this
Agreement if such default is not remedied by CITY within thirty (30) days after demand for such
payment is given by CONTRACTOR to CITY.
D. Transition after Termination
Upon termination, CONTRACTOR shall immediately stop work, unless cessation could
potentially cause any damage or harn to person or property, in which case CONTRACTOR shall
cease such work as soon as it is safe to do so. CONTRACTOR shall incur no further expenses in
connection with this Agreement. CONTRACTOR shall promptly deliver to CITY all work done
toward completion of the services required hereunder, and shall act in such a manner as to
facilitate any the assumption of CONTRACTOR's duties by any new CONTRACTOR hired by
the CITY to complete such services.
8.7.b
Packet Pg. 92 Attachment: Cal-West Agreement (3824 : Amendment to Agreement with Cal-West Lighting and Signal Maintenance, Inc.)
ARTICLE 8. GENERAL PROVISIONS
A. Amendment & Modification
No amendments, modifications, alterations or changes to the terms of this Agreement shall be
effective unless and until made in a writing signed by both parties hereto.
B. Americans with Disabilities Act of 1"0
Throughout the term of this Agreement, the CONTRACTOR shall comply fully with all
applicable provisions of the Americans with Disabilities Act of 1990 C'the Act") in its current
form and w it may be amended from time to time. CONTRACTOR shall also require such
compliance of all subcontractors performing work under this Agreement, subject to the
prohibition against assignment and subcontracting contained in Article 5 above. The
CONTRACTOR shall defend with counsel acceptable to CITY, indemnify and hold harmless the
CITY OF GILROY, its officers, employees, agents and representatives from and against all suits,
claims, demands, damages, costs, causes of action, losses, liabilities, expenses and fees,
including without limitation reasonable attorneys' fees, that may arise out of any violations of
the Act by the CONTRACTOR, its subcontractors, or the officers, employees, agents or
representatives of either.
C. Attorneys' Fees
If any action at law or in equity, including an action for declaratory relief, is brought to enforce
or interpret the provisions of this Agreement, the prevailing party will be entitled to reasonable
attorneys' fees, which may be set by the court in the same action or in a separate action brought
for that purpose, in addition to any other relief to which that party may be entitled.
D. Captions
The captions and headings of the various sections, paragraphs and subparagraphs of the
Agreement are for convenience only and shall not be considered nor referred to for resolving
questions of interpretation.
E. Compliance with Laws
The CONTRACTOR shall keep itself informed of all State and National laws and all municipal
ordinances and regulations of the CITY which in any manner affect those engaged or employed
in the work, or the materials used in the work, or which in any way affect the conduct of the
work, and of all such orders and decrees of bodies or tribunals having any jurisdiction or
authority over the same. Without limiting the foregoing, CONTRACTOR agrees to observe the
provisions of the Municipal Code of the CITY OF GILROY, obligating every contractor or
subcontractor under a contract or subcontract to the CITY OF GILROY for public works or for
goods or services to refrain from discriminatory employment or subcontracting practices on the
basis of the race, color, sex, religious creed, national origin, ancestry of any employee, applicant
for employment, or any potential subcontractor.
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Packet Pg. 93 Attachment: Cal-West Agreement (3824 : Amendment to Agreement with Cal-West Lighting and Signal Maintenance, Inc.)
F. Conflict of Interest
CONTRACTOR certifies that to the best of its knowledge, no CITY employee or office of any
public agency interested in this Agreement has any pecuniary interest in the business of
CONTRACTOR and that no person associated with CONTRACTOR has any interest that would
constitute a conflict of interest in any manner or degree as to the execution or performance of
this Agreement
G. Entire Agreement
This Agreement supersedes any and all prior agreements, whether oral or written, between the
parties hereto with respect to the rendering of services by CONTRACTOR for CITY and
contains all the covenants and agreements between the parties with respect to the rendering of
such services in any manner whatsoever. Each party to this Agreement acknowledges that no
representations, inducements, promises or agreements, orally or otherwise, have been made by
any party, or anyone acting on behalf of any party, which are not embodied herein, and that no
other agreement, statement or promise not contained in this Agreement shall be valid or binding.
No other agreements or conversation with any officer, agent or employee of CITY prior to
execution of this Agreement shall affect or modify any of the terns or obligations contained in
any documents comprising this Agreement Such other agreements or conversations shall be
considered as unofficial information and in no way binding upon CITY.
H. Governing Law and Venue
This Agreement shall be governed by and construed in accordance with the laws of the State of
California without regard to the conflict of laws provisions of any jurisdiction. The exclusive
jurisdiction and venue with respect to any and all disputes arising hereunder shall be in state and
federal courts located in Santa Clara County, California.
I. Notices
Any notice to be given hereunder by either party to the other may be effected either by personal
delivery in writing or by mail, registered or certified, postage prepaid with return receipt
requested. Mailed notices shall be addressed to the parties at the addresses appearing in
Exhibit "A", Section V.H. but each party may change the address by written notice in
accordance with this paragraph. Notices delivered personally will be deemed delivered as of
actual receipt; mailed notices will be deemed delivered as of three (3) days after mailing.
J. Partial Invalidity
If any provision in this Agreement is held by a court of competent jurisdiction to be invalid, void
or unenforceable, the remaining provisions will nevertheless continue in full force without being
impaired or invalidated in any way.
K. Time of the Essence
At I dates and times referred to in this Agreement are of the essence.
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Packet Pg. 94 Attachment: Cal-West Agreement (3824 : Amendment to Agreement with Cal-West Lighting and Signal Maintenance, Inc.)
L. Waiver
CONTRACTOR agrees that waiver by CITY of any one or more of the conditions of
performance under this Agreement shall not be construed as waiver(s) of any other condition of
performance under this Agreement.
Executed at Gilroy, California, on the date and year first above written.
CONTRACTOR:
Cal -West Lighting & Signal Maintenance,
Inc.
By. L 4- kj,—
Name: Cmie H. Geis. Jq
Title: President
Social Security or Taxpayer
Identification Number 20-1716563
Approved
City Attorney
4a15.rTB1-MMO _guMnGDX
CITY OF GILROY
By:
Name: Gabriel A. Gonzalez \
Title: City Admistmtor
8.7.b
Packet Pg. 95 Attachment: Cal-West Agreement (3824 : Amendment to Agreement with Cal-West Lighting and Signal Maintenance, Inc.)
EXHIBIT "A"
SPECIFIC PROVISIONS
PROJECT MANAGER
CONTRACTOR shall provide the services indicated on the attached Exhibit "B", Scope of
Services ("Services'D. (All exhibits referenced are incorporated herein by reference.) To
accomplish that end, CONTRACTOR agrees to assign Craig H. Geis Jr., who will act in the
capacity of Project Manager, and who will personally direct such Services.
Except as may be specified elsewhere in this Agreement, CONTRACTOR shall furnish all
technical and professional services including labor, material, equipment, transportation,
supervision and expertise to perform all operations necessary and required to complete the
Services in accordance with the terms of this Agreement.
NOTICE TO PROCEED/COMPLETION OF SERVICE
A. NOTICE TO PROCEED
CONTRACTOR shall commence the Services upon delivery to CONTRACTOR of a written
Notice to Proceed", which Notice to Proceed shall be in the form of a written communication
from designated City contact person(s). Notice to Proceed may be in the form of e-mail, fax or
letter authorizing commencement of the Services. For purposes of this Agreement, Soknirom
Than shall be the designated City contact person(s). Notice to Proceed shall be deemed to have
been delivered upon actual receipt by CONTRACTOR or if otherwise delivered as provided in
the Section V.H. ("Notices") of this Exhibit 11A".
B. COMPLETION OF SERVICES
When CITY determines that CONTRACTOR has completed all of the Services in accordance
with the terms of this Agreement, CITY shall give CONTRACTOR written Notice of Final
Acceptance, and CONTRACTOR shall not incur any further costs hereunder. CONTRACTOR
may request this determination of completion when, in its opinion, it has completed all of the
Services as required by the terms of this Agreement and, if so requested, CITY shall make this
determination within two (2) weeks of such request, or if CITY determines that CONTRACTOR
has not completed all of such Services as required by this Agreement, CITY shall so inform
CONTRACTOR within this two (2) week period.
Ill. PROGRESS SCHEDULE
The schedule for performance and completion of the Services will be as act forth in the attached
Exhibit "C".
IV. PAYMENT OF FEES AND DIRECT EXPENSES
Payments shall be made to CONTRACTOR as provided for in Article 4 of this Agreement.
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Packet Pg. 96 Attachment: Cal-West Agreement (3824 : Amendment to Agreement with Cal-West Lighting and Signal Maintenance, Inc.)
Direct expenses are charges and fees not included in Exhibit "B". CITY shall be obligated to
pay only for those direct expenses which have been previously approved in writing by CITY.
CONTRACTOR shall obtain written approval from CITY prior to incurring or billing of direct
expenses.
Copies of pertinent financial records, including invoices, will be included with the submission of
billing(s) for all direct expenses.
V. OTHER PROVISIONS
A. STANDARD OF WORKMANSHIP
CONTRACTOR represents and warrants that it has the qualifications, skills and licenses
necessary to perform the Services, and its duties and obligations, expressed and implied,
contained herein, and CITY expressly relies upon CONTRACTOR'S representations and
warranties regarding its skills, qualifications and licenses. CONTRACTOR shall perform such
Services and duties in conformance to and consistent with the standards generally recognized m
being employed by professionals in the same discipline in the State of California.
Any plans, designs, specifleations, estimates, calculations, reports and other documents furnished
under this Agreement shall be of a quality acceptable to CITY. The minimum criteria for
acceptance shall be a product of neat appearance, well- rganized, technically and grammatically
correct, checked and having the maker and checker identified. The minimum standard of
appearance, organization and content of the drawings shall be that used by CITY for similar
purposes.
B. RESPONSIBILITY OF CONTRACTOR
CONTRACTOR shall be responsible for the professional quality, technical accuracy, and the
coordination of the Services furnished by it under this Agreement. CONTRACTOR shall not be
responsible for the accuracy of any project or technical information provided by the CITY. The
CITY'S review, acceptance or payment for any of the Services shall not be construed to operate
as a waiver of any rights under this Agreement or of any cause of action arising out of the
performance of this Agreement, and CONTRACTOR shall be and remain liable to CITY in
accordance with applicable law for all damages to CITY caused by CONTRACTOR'S negligent
performance of any of the services furnished under this Agreement.
C. RIOHT OF CITY TO INSPECT RECORDS OF CONTRACTOR
CITY, through its authorized employees, representatives or agents, shall have the right, at my
and all reasonable times, to audit the books and records (including, but not limited to, invoices,
vouchers, canceled checks, time cards, etc.) of CONTRACTOR for the purpose of verifying any
and all charges made by CONTRACTOR in connection with this Agreement. CONTRACTOR
shall maintain for a minimum period of three (3) years (from the date of final payment to
CONTRACTOR), or for any longer period required by law, sufficient books and records in
accordance with standard California accounting practices to establish the correctness of all
charges submitted to CITY by CONTRACTOR, all of which shall be made available to CITY at
the CITY's offices within five (5) business days after CTTY's request.
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Packet Pg. 97 Attachment: Cal-West Agreement (3824 : Amendment to Agreement with Cal-West Lighting and Signal Maintenance, Inc.)
D. CONFIDENTIALITY OF MATERIAL
All ideas, memoranda, specifications, plans, manufacturing procedures, data (including, but not
limited to, computer data and source code), drawings, descriptions, documents, discussions or
other information developed or received by or for CONTRACTOR and all other written and oral
information developed or received by or for CONTRACTOR and all other written and oral
information submitted to CONTRACTOR in connection with the performance of this Agreement
shall be held confidential by CONTRACTOR and shall not, without the prior written consent of
CITY, be used for any purposes other than the performance of the Services, nor be disclosed to
an entity not connected with the performance of the such Services. Nothing furnished to
CONTRACTOR which is otherwise known to CONTRACTOR or is or becomes generally
known to the related industry (other than that which becomes generally known as the result of
CONTRACTOR'S disclosure thereof) shall be deemed confidential. CONTRACTOR shall not
use C I'Y'S name or insignia, or distribute publicity pertaining to the services rendered under
this Agreement in any magazine, trade paper, newspaper or other medium without the express
written consent of CITY.
E. NO PLEDGING OF C1TY'S CREDIT.
Under no circumstances shall CONTRACTOR have the authority or power to pledge the credit
of CITY or incur any obligation in the name of CITY.
F. OWNERSHIP OF MATERIAL.
All material including, but not limited to, computer information, data and source code, sketches,
tracings, drawings, plans, diagrams, quantities, estimates, specifications, proposals, tests, maps,
calculations, photographs, reports and other material developed, collected, prepared (or caused to
be prepared) under this Agreement shall be the property of CITY, but CONTRACTOR may
retain and use copies thereof subject to Section V.D of this Exhibit "A".
CITY shall not be limited in any way in its use of said material at any time for any work,
whether or not associated with the City project for which the Services are performed. However,
CONTRACTOR shall not be responsible for, and City shall indemnify CONTRACTOR from,
damages resulting from the use of said material for work other than PROJECT, including, but
not limited to, the release of this material to third parties for work other than on PROJECT:
G. NO THIRD PARTY BENEFICIARY,
This Agreement shall not be construed or deemed to be an agreement for the benefit of any third
parry or parties, and no third party or parties shall have any claim or right of action hereunder for
any cause whatsoever.
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Packet Pg. 98 Attachment: Cal-West Agreement (3824 : Amendment to Agreement with Cal-West Lighting and Signal Maintenance, Inc.)
H. NOTICES.
Notices ere to be sent as follows:
CITY: Nirom Than
City of Gilroy
7351 Rosanna Street
Gilroy, CA 95020
CONTRACTOR: "a H. Geis Jr.
Cal -West Lighting & Signal Maintenance. Inc.
530 North Marburg Way.
San Jose. CA 95133
FEDERAL FUNDING REQUIREMENTS.
If the box to the left of this sentence is checked, this Agreement involves federal
funding and the requirements of this Section V.I. apply.
If the box to the left of this sentence is checked, this Agreement does not involve
federal funding and the requirements of this Section V.I. do not apply.
DBE Program
CONTRACTOR shall comply with the requirements of Title 49, Part 26, Code of Federal
Regulations (49 CFR 26) and the City -adopted Disadvantaged Business Enterprise programs.
2. Cost Principles
Federal Acquisition Regulations in Title 48, CFR 31, shall be used to determine the allowable
cost for individual items.
Covenant against Contingent Fees
The CONTRACTOR warrants that he/she has not employed or retained any company or person,
other than a bona fide employee working for the CONTRACTOR, to solicit or secure this
Agreement, and that he/she has not paid or agreed to pay any company or person, other than a
bona tide employee, any fee, commission, percentage, brokerage fee, gift or any other
consideration, contingent upon or resulting from the award or formation of this Agreement. For
breach or violation of this warranty, the Local Agency shall have the right to annul this
Agreement without liability or, at its discretion, to deduct from the agreement price or
consideration, or otherwise recover, the full amount of such fee, commission, percentage,
brokerage fee, gift or contingent fee.
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Packet Pg. 99 Attachment: Cal-West Agreement (3824 : Amendment to Agreement with Cal-West Lighting and Signal Maintenance, Inc.)
PREVAILING WAGE
CONTRACTOR agrees and acknowledges that it is its obligation to determine whether, and to what
extent, any work performed is or any workers employed relative to any construction to be performed
under this Agreement arc subject to any Codes, Ordinances, Resolutions, Rules and other Regulations
and established policies of CITY and the laws of the State of California and the United States,
including, without limitation, the California Labor Code and Public Contract Code relating to public
contracting and prevailing wage requirements ("Prevailing Wage Laws'). To the extent Prevailing
Wage Laws apply to work performed or workers employed for the purpose of performing work under
this Agreement, CONTRACTOR shall fully comply with and ensure that all workers and/or
subcontractors are informed of and comply with all Prevailing Wage Laws and specifically any
applicable requirement of California Labor Code Sections 1720 et seq. and 1770 et seq. and the
regulations thereunder, which require the payment of prevailing wage rates based on labor
classification, as determined by the State of California, and the performance of other requirements on
certain "public works" or "maintenance" projects. It is the duty of CONTRACTOR to post a copy of
applicable prevailing wages at thejob site. Prevailing wage information may be obtained at
wwwAir.ca.gov.
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Packet Pg. 100 Attachment: Cal-West Agreement (3824 : Amendment to Agreement with Cal-West Lighting and Signal Maintenance, Inc.)
It/Yt11:111u;ki
SCOPE OF SERVICES
Traffic Signal Maintenance
Traffic Signal Routine Maintenance
Traffic Signal Unscheduled Maintenance
Traffic Signal Plan Review
Traffic Signal Construction Inspection
Underground Service Alerts (USA) for traffic signals%
Traffic Signal Design Modification
Signal Timing Update
Street Ught Maintenance
Street Light Routine Maintenance and Outages Reporting
Street Light Unscheduled Maintenance
Street Light Construction Inspection
Underground Service Alerts (USA) for streetlights
Testing of streetlight poles for structural integrity
Task I — Unscheduled Maintenance Items
1.1 Definition
Unscheduled Maintenance: which comprises of on -call, non -routine, as directed, and
emergency response work, is performed by the traffic signal system and streetlight maintenance
contractor (Contractor) selected as a result of this RFP. These works Include but are not limited
to:
1. Installation of traffic signs onto traffic signal equipment
2. Communication troubleshootingtrepair/installation
3. Underground Service Alerts (USA) for traffic signals
4. Inputting signal timing changes
8. Plan review of traffic signal design prepared by others
8. Review of shop drawings for traffic signal equipment
7. Traffic signal construction inspection
8. Other traffic signal system -related work
9. Testing of streetlight poles for structural integrity
10. Underground Service Alerts (USA) for streetlights
11. Numbering of streetlight poles
12. Review of shop drawings of street light equipment
13. Street light construction inspection
14. Other streetlight -related work
4 5426Td 610
ILAM708M
8.7.b
Packet Pg. 101 Attachment: Cal-West Agreement (3824 : Amendment to Agreement with Cal-West Lighting and Signal Maintenance, Inc.)
1.2 Introduction
The selected Contractor shall be responsible for providing maintenance, repair, and services as
directed by the City Engineer or his authorized agent. Work items shall include but not be limited
to all items listed in "Attachment C-1' and detailed in Attachment °C-2.° Any item not included in
Attachment C-1" shall be negotiated between the selected Contractor and the City on a time
and material basis.
The Contractor shall use and provide an Online Maintenance System with free access to
designated City staff. The entire online system should be a real-time system. System
functionality should include but not be limited to the following:
Work order tracking,
Work order status updates,
Asset and equipment management,
Maintenance requests,
Maintenance checklists that are maintained and updated regularly.
The City intends to utilize Cilyworks as a public asset management program in the future. The
contractor's Online Maintenance System shall have the capability to integrate or export its data
to the City's asset management program. The cost to export or integrate the two systems shall
be negotiated between the selected Contractor and the City on a time and material basis.
The work to be done shall consist of providing contract maintenance, repair, and services.
Maintenance shall include repair of damages resulting from traffic collisions, which have caused
dislocation of poles or equipment; Acts of God (i.e., excessive winds, rain, floods, earthquakes,
etc.); vandalism; street excavation; or failure of or resurfacing of the street. Repairs shall
include, but are not limited to, the following:
1. Detector loop replacement and patching
2. Realignment and replacement of signal indications
3. Video detection replacement, realignment, and detection zone programming
4. Emergency vehicle preemption replacement, realignment, and detection zone
programming
8. Aerial and underground splicing of the City's hardwire signal interconnect cable
8. Pedestrian indication and signal indisalion lamp replacement (LED)
7. Pedesrian head maintenance
8. Battery Back-up System (BBS) repairs, replacements, or installations of a new units.
9. Intersection rewiring and cable pulling
10. Any and all parts of controller mechanism
11. Concrete and foundation repairs
12. Traffic signal pole or equipment replacement
13. Other traffic signal system -related work
14. Streetlight pole or equipment replacement
15. Replacement of lamps and/or photoelectric cells
16. Traffic signal detector maintenance and/or replacement
1 T Other streetlight -related work
18. Repair and replacement of Internally Illuminated Street Name Signs (IISNS) and LED
street name signs
19. Streetlight pole painting
8.7.b
Packet Pg. 102 Attachment: Cal-West Agreement (3824 : Amendment to Agreement with Cal-West Lighting and Signal Maintenance, Inc.)
The selected Contractor shall furnish all tools, equipment, workshop facilities, transportation,
labor, parts, and materials and perform all work necessary to maintain In good quality operation
all traffic signal and streetlight facilities within the City of Gilroy. The selected Contractor shall
have all necessary tools, equipment, workshop facilities, transportation, labor, parts, and
materials to test and maintain Light Emitting Diodes (LEDs). All work performed or equipment
and parts supplied by the Contractor shall be subject to inspection and approval of the City
Engineer or his authorized agent Failure to pass inspection on any maintenance, repair, or
service item shall result in non-payment for that item until such time that the Contractor can
present the item to the City in an acceptable form.
1.3 Work Authorization Forms
A "Work Authorization Form" shall be provided prior to work commencing any non -routine work
items. The Contractor shall provide their cost estimates on the "Work Authorization Farm" and
shall prepare a work authorization form for any verbally authorized work or emergency response
work. This form shall be signed and accepted by the City prior to commencement of work.
During an emergency situation, the Contractor shall complete the work authorization form and
submit to the City within 24-hr of work completion. This form shall provide the Contractor with
the location, work to be performed, required completion date, authorization to proceed, and a
City or Contractor itemized estimate based on costs provided by the Contractor in their
proposals. All costs shall be detailed, unbundled, and listed separately. Actual time spent on the
job and work completed or in progress will be Inspected by City staff on a random basis. "Work
Authorization Forms" shall be prepared for all items of work for comparison to the final billing to
assure that proper costs and estimating procedures have been followed. Any additional work
not on the completed "Work Authorization Form" shall not be allowed until first approved by the
City Engineer or his authorized agent For sample form, see "Attachment H."
IA Verbal Notification
The Contractor shall respond on verbal notification from the City Engineer or his authorized
agent to all work items. Verbal notification will typically be given for "Standard" and/or
Emergency" response work items. If verbal nottfication is given and no response time is
provided, the Contractor shall respond on an emergency basis.
When the Contractor receives verbal notification to complete a "Scheduled Response" work
item, the Contractor shall prepare a field generated "Work Authorization Form' and submit it to
the City for final approval within two (2) working days after receiving notification. The Contractor
shall note the date, time, type of response, and City employee providing the verbal authorization
on the "Work Authorization Form."
See Task 3— Response for response definitions.
1.5 Contractor Notification
The Contractor shall notify the City Engineer or his authorized agent of any and all repairs
and/or replacements to the signal system at least forty eight (48) hours prior to the start of work
to allow for proper inspection of work. Emergency response work provided by the City does not
require this notification process.
The City Engineer or his authorized agent shall have the final decision on what is authorized.
The Contractor shall not be paid until work is complete and the City is notified of the completion
for final inspection and approval. Compliance with the authorization procedure shall not
relieve the Contractor from making necessary repairs within a timely manner.
8.7.b
Packet Pg. 103 Attachment: Cal-West Agreement (3824 : Amendment to Agreement with Cal-West Lighting and Signal Maintenance, Inc.)
Task 2 — Routine Preventative Maintenance
2.1 Definition
Routine Preventive Maintenance shall be performed by the Contractor responsible for
preventative maintenance and the associated operation of streetlight equipment, equipment
associated with RRFB crosswalks, flashing beacon apparatus, and traffic signal controllers and
cabinet equipment.
A full traffic signal intersection inventory shall be conducted and provided to the City in both
electronic and hardcopy form during the beginning of the contract. The inventory shall include
but not be limited to location, major & minor street, Cabinet type, BBS, EVP, RR Preemption,
Controller Type, Control Communication Type, CCTV, Video Detection, WAP, Traffic Loops,
pole data and etc. This work shall be done in conjunction with the first routine preventive
maintenance and at no additional cost to the City.
2.2 Traffic Sionals. RRFB Crosswalks_ Solar Sneed Sions, and Flashino Beacons
The Contractor agrees to the following preventative maintenance schedule for traffic signals,
RRFB crosswalks, and flashing beacons to be paid at the rate Identified in C-1 Items:
Monthly Routine Maintenance
Visually Inspect controller for proper operation
Visually inspect all vehicular and pedestrian signals for proper operation
Visually Inspect all LED signal units for proper operation, and replace outages found
Check the time setting and match with time sheet in controller cabinet
Visually inspect Battery Backup System (BBS)
Visually inspect all detections (Video, loop, and etc.)
Night checks of safety lights and internally illuminated street name signs (IISNS),
when applicable, twice each calendar month to determine outages andlor minor tree
trimming needs, it necessary (See 2.4 Night Checks for guidelines and requirements
Turn off utility power and make sure BBS switches effectively to BBS power
Manually record inspection date and time in controller cabinet and send written
confirmation of monthly inspection with recommendations to the City by
intersection/location (See Task 4— Reports for additional requirements)
Activate solar speed feedback sign for proper operations
Record solar speed feedback sign results on monthly inspection with
recommendations to the City by location (See Task 4 — Reports for additional
requirements)
Actuate and check RRFB flashing crosswalk, including associated sign, for proper
operation
Record RRFB crosswalk results on monthly inspection with recommendations to the
City by location (See Task 4 — Reports for additional requirements)
Night checks of all streetlight within the City limit per the 'Street Light Night Check
Zones". The contractor shall check one(1) zone per month. There are 8 zones total.
Record results on streetlight monthly inspection with recommendations to the City by
location address, and pole number.
8.7.b
Packet Pg. 104 Attachment: Cal-West Agreement (3824 : Amendment to Agreement with Cal-West Lighting and Signal Maintenance, Inc.)
3-Month Routine (in addition to monthNl
Check emergency vehicle detection, video detection, and signal interconnect, where
applicable, for proper operation
Check detector amplifier; and tune, if needed
Actuate and check each pedestrian push button for proper operation
Visually inspect roadway along loop detectors for possible exposed wires, cracks,
and potholes
Rotate batteries in BBS for Improved battery charging life
Manually record Inspection date and time in controller cabinet and send written
confirmation of 3-month Inspection with recommendations to the City by
intersectloMocation (See Task 4 — Reports for additional requirements)
Month Routine (in addition to monthly and 3-month)
Check controller cabinet filter
Check ground rod clamp and wire
Check wire schematics and records to make sure they are in the cabinet
Check operation of the fan
Check operation of ground fault receptacle
Measure voltage at service inputs in cabinet and record
Visually check for bent visors and back plates
Visually check integrity of splices
Check BBS battery voftagelamp output and make recommendation for battery
replacement when necessary
Test BBS charging system
Manually record inspection date and time in controller cabinet and send written
confirmation of 6-month inspection with recommendations to the City by
intersectionflocation (See Task 4 — Reports for additional requirements)
Clean and vacuum controller cabinet
Annual Routine !in addition to monthly. 3-month. and 6-month]
Replace all incandescent lamps in all signals with LED lamps
Clean and polish all lenses and reflectors
Vacuum and clean controller cabinet and contents
Replace cabinet fitter
Check weatherproof gasket seal on controller cabinets
Check for water accumulation and duct sealant
Lubricate hinges and lock on controller cabinets
Check alignment of all signal heads
Check indicator lamps
Check all connectors
Check detector extensions
Check load switches
Check relays
Check conflict monitor and provide City with computerized report in Microsoft Excel
identifying each intersection's results.
Clean BBS
Check all BBS connections and clean terminals
Manually record inspection date and time in controller cabinet and send written
confirmation of annual inspection with recommendations to the City by
intersection/location (See Task 4 — Reports for additional requirements)
Verify signal timing in controller and field signal timing sheets are consistent. Send a
copy of signal timing sheets to the City with the date of inspection.
Submit electronic and hardcopy of traffic signal intersection hardware inventory with
connection diagrams. The Inventory shall include but not be limited to location, major
minor street, cabinet type, BBS, EVP, RR Preemption, controller type, control
communication type, CCTV, video detection, WAP, traffic loops, pole data, conduit
sizes and etc. (see Attachment 0 for example)
8.7.b
Packet Pg. 105 Attachment: Cal-West Agreement (3824 : Amendment to Agreement with Cal-West Lighting and Signal Maintenance, Inc.)
2.3 Streetlights
The Contractor agrees to the following maintenance for streetlights to be paid at the rate
identified in C-1," Item Streetlight Maintenance:
Replace lamps that have become inoperative by virtue of burnout. Replacement
lamps shall be substantially equivalent to those replaced.
Replacement of Light Emitting Diode (LED) streetlight that have been inoperative by
virtue of failure. Replacement LED streetlights shall be per the City Standard. If the
cause of failure is covered under manufacture warranty, the Contractor shall
coordinate with the LED manufacture and provide removal and installation.
Replace photoelectric cells that have become inoperative from normal deterioration.
Minor trimming of trees below the light fixture for the purpose of allowing a
reasonable amount of light to be let through. Trimming is limited to within three (3)
feet of the bottom of the fixture.
Night check of each streetlight and safety light within the City's jurisdiction each
month to determine electrolier outages, pole condition, and/or minor tree trimming
needs. See 2.4 Night Checks for guidelines and requirements.
Maintain and submit a monthly log listing each call received, the name of the caller (if
given), the date of the call, the outage or other problem reported by the caller, and
the location of the outage or other problem reported by the caller. See Task 4 —
Reports for additional requirements.
Replace photo -reflective pole numbers that are no longer visible and in conformance
to City Standards.
Inspect street light pole integrity and replace the pole on an as needed basis.
The replacement services to be performed by the Contractor encompass outages from normal
deterioration. Each inoperative lamp and/or photoelectric cell shall be replaced within five (5)
working days or less from the date the Contractor receives notice from the City. See Task 3 —
Response for additional requirements.
2.4 Night Checks
The Contractor agrees to conduct night checks monthly during non -daylight hours as follows:
Contractor shall submit with this proposal a Zone Map dividing the city (within the
City Limit) into six (6) zones. The City has attached an example of the zoning map
for the contractor used. The contractor may use this zone map.
Contractor shall submit with this proposal a schedule for conducting night (non -
daylight hour) checks In the 6 zones.
Contractor shall submit an action plan of keeping track of the City's complete
streetlight inventory.
Contractor shall check each streetlight, safety light, and IISNS (if applicable) in the
assigned zone for the corresponding monthly check during non -daylight hours for
outages, pole condition, and/or minor tree timing needs monthly.
Contractor shall maintain and submit a monthly log for all night checks including but
not limited to date of visit and location of outage or other problem. See Task 4 —
Reports for additional requirements.
8.7.b
Packet Pg. 106 Attachment: Cal-West Agreement (3824 : Amendment to Agreement with Cal-West Lighting and Signal Maintenance, Inc.)
Task 3 — Response
3.1 Emeroencv Response (one hour maximum response time)
This Rem is considered to be a safety concern. When notified by the City to respond to an
emergency situation, the Contractor shall be at the site in one (1) hour or less from the time of
notification. Examples of a situation that would require an emergency response include but not
limited to signal and/or streetlight knockdowns, block of streetlights out -of -service, signal
damage, red lamp outages (LED), turned or misaligned signal head, or other repairs designated
emergency response by the City. The Contractor shall maintain a twenty-four (24) hour per day
emergency service for the replacement of burned out lamps or repair of any traffic signal or
associated traffic signal equipment. The Contractor shall maintain a local telephone number
where he can be reached twenty-four (24) hours per day. This telephone number shall be made
available to the Engineering Division and the Gilroy Police Department. The Contractor shall
make IMMEDIATE maintenance calls when notified by the City and informed that the call is an
emergency. In no Instance shall the response time to an emergency call exceed one (1) hour
from the time of notification.
3.2 Standard Response (24 hours maximum response time)
This item is considered important but not an immediate safety concern. Maintenance and repair
requests made on a regular basis shall be responded to within 24 hours of notification. In no
event will regular response work be considered overtime without prior approval of the City
Engineer or his authorized agent. Examples of work that would require a regular response are,
but not limited to, signal equipment repair/replacemerd, pedestrian head outages (modification
kits), vehicle detection problems, field wiring, routine lamp outages, and streetlight lamp
outages.
3.2.1 Standard Hiah Pdodtv Response (same day response time)
This Rem is considered high priority but not an immediate safety concern. Maintenance and
repair requests made on a high priority basis shall be responded to the same day as the
notification. High priority items will be determined by the City Engineer or his/her representative.
3.3 As-Required/Scheduled Response (five workinc day maximum response time)
Maintenance and repair requests made by the City that are not critical or the work involved is of
such nature as to require advance scheduling shall be completed on an "As -Required" basis.
Work authorizations of this type shall include a completion date to be shown on the work
schedule. Examples of "As-Required/Scheduled" maintenance would include but not limited to
loop repair/replacement, major equipment repaldreplacement, and permanent replacement of
knockdowns, major rewiring, and intersection modifications.
The formats presented above are only guidelines and do not relieve the Contractor of the
responsibility to perform. At all times, the contractor shall be required to respond to any work
request in any of the above manners as the City determines necessary. If the City should fail to
provide the Contractor with the required response time, the Contractor shall proceed under the
guidelines of "As-Required/Scheduled" response unless the work item requires a more
immediate response, as covered in the Request for Qualifications. The City may at any time
amend the response requirement for speck work items by notifying the Contractor either
verbally or in writing. Time extension may be granted due to material delay when the Contractor
has demonstrated that the delay was beyond the Contractor's control.
8.7.b
Packet Pg. 107 Attachment: Cal-West Agreement (3824 : Amendment to Agreement with Cal-West Lighting and Signal Maintenance, Inc.)
Task 4 — Reports
4.1 Monthly Maintenance Reoons
The Contractor shall submit to the Engineering Division within ten (10) working days from the
last day of each month a detailed monthly computer summary printout of all traffic signal system
and streetlight repair and emergency calls made. The summary shall provide the following
information:
TRAFFIC SIGNALS, RRFB CROSSWALKS, SOLAR SPEED FEED -BACK SIGNS,
AND FLASHING BEACONS
1. Date, time, City employee, and employee telephone number initiating the call
2. Location by intersection/location and number (see Attachment'C"), as provided
by the City, and Identification by a specific comer and/or direction of travel
3. Nature of the malfunction, if any found, and a description of the action taken by
the Contractor
4. Date, time, and name of Contractor's personnel conducting night check (when
applicable)
5. Date and time the Contractor's personnel and equipment arrived on the scene
6. Date and time the job was completed
STREETLIGHTS
1. Data, time, City employee or caller name (if given), and telephone number
initiating the call
2. Location by streetlight number, as provided by the City, and identification by
street name and/or address and nearest cross street
3. Nature of the malfunction, If any found, and a description of the action taken by
the Contractor
4. Date, time, and name of Contractor's personnel conducting night check (when
applicable)
5. Dale and time the Contractor's personnel and equipment arrived on the scene
6. Date and time the job was completed
wm i GSfi1monism rier.1PE The
Contractor must email every morning (Monday- Friday by 8:30 am) and notify the City Engineer
or his authorized agent of any and all work scheduled to take place during that day. If scheduled
work is completed and the Engineering Division has not been notified in advance, payment
will not be made until the work can be inspected by City staff. 4.
3 Detailed Cost Summary The
Contractor shall provide a detailed cost summary with the monthly invoices detailing work completed
for each work authorization. See Compensation for additional details. Task
5 — Traffic Signal Plan Review The
Contractor may be required to performed traffic signal plan review for the City. The Contractor
shall have the ability to professionally review traffic signal plans from the City and have
a turnaround time no greater than five (5) working days.
8.7.b
Packet Pg. 108 Attachment: Cal-West Agreement (3824 : Amendment to Agreement with Cal-West Lighting and Signal Maintenance, Inc.)
Task 6 — Traffic Signal Construction Inspection
The contractor may be required to perform traffic signal construction inspections. The contractor
shall have a competent inspector on site as directed by the City. The inspector shall provide
daily reports to the City representative.
Task 7 — Traffic Signal Design Modification
The contractor may be required to perform on site traffic signal modifications. Modifications may
include installation of left turn arrows, on -site signal timing changes, loop length increases,
advance detection zone changes and etc.
8.7.b
Packet Pg. 109 Attachment: Cal-West Agreement (3824 : Amendment to Agreement with Cal-West Lighting and Signal Maintenance, Inc.)
MUIREMENTS
1. The Contractor shall be required to maintain a primary facility location within seventy (70)
miles of the City limits of Gilroy. This requirement is mandated to assure the response by
the Contractor Is accomplished in a timely manner and in the case of emergencies, within
one (1) hour. The facility must be equipped with mobile equipment such as ladder trucks,
boom trucks, and related equipment and must also be equipped with facilities to effectuate
traffic signal equipment repairs.
2, The Contractor must provide an experienced, competent Superintendent and field
technician who will be responsible for effectively supervising all work in progress. In
addition to supervision or work in progress, the Superintendent must be capable of
Instructing his subordinates in correct and proper maintenance techniques.
3. The Contractor must employ competent, experienced traffic signal and streetlight
technicians (International Municipal Signal Association (IMSA) Certification desirable)
qualified in repair or trouble detection of the City's traffic signal and lighting equipment. If
any subcontractor, Superintendent, Foreman, laborer, or other person employed or
associated with the Contractor appears to City staff to be intemperate, incompetent,
troublesome, or otherwise undesirable to be employed on the work site, that employee
shall be immediately removed from the work site at the request of the City Engineer or his
authorized agent.
4. The Contractor shall be responsible for providing all necessary traffic control equipment in
all construction or maintenance zones per the latest CA MUTCD, or most recent edition, or
as determined by the City Engineer or his authorized agent to be required to give
adequate warning of any dangerous conditions that may be encountered, prevent
accidents, and avoid damage or injury to the public. In addition, the Contractor shall not
dose more than one lane of travel at a time unless otherwise authorized by the City
Engineer or his authorized agent. Lane closures from 7:00 am to 8:30 am and 4:00 pm to
6:00 pm are not permitted for Standard or As-Required/Scheduled Maintenance.
Emergency repairs shall be made whenever required and are not subject to the
aforementioned time restrictions.
5. The Contractor shall conduct his operations in order to minimize obstruction and
inconvenience to public travel. At no time shall the Contractor be allowed to stop work for
the purposes of a "coffee break" when the public right-of-way is impeded unless the work
being done requires more than four (4) hours to complete.
Whenever the Contractors operations create a condition hazardous to traffic or to the
public, he shall furnish and maintain, as necessary, fences, barricades, lights, signs, safety
cones, and other devices per the latest CA MUTCD, or most recent edition, or as
determined by the City Engineer or his authorized agent to be required to give adequate
warning of any dangerous conditions that may be encountered, prevent accidents, and
avoid damage or injury to the public. Failure to provide necessary devices shall be cause
for slopping of work and vacating the job site until the situation is remedied.
6. The Contractor shall be responsible for the correct placement, number, and monitoring of
temporary traffic signals and controls.
8.7.b
Packet Pg. 110 Attachment: Cal-West Agreement (3824 : Amendment to Agreement with Cal-West Lighting and Signal Maintenance, Inc.)
7. The Contractor shall be equipped with the spare parts insufficient quantities to maintain
signal and streetlight operations. In those instances where a complex device, equipment,
or component has to be repaired or replaced, the Contractor shall Install a temporary
replacement of his own until such time as the part can be permanently repaired or
replaced.
B. Should construction be underway by other forces or by other contractors within or adjacent
to the limits of the work specified or should work of any other nature be underway by other
forces within or adjacent to the said limits, the Contractor shall cooperate with all such
other contractor's or other forces to the end that any delay, duplication, or hindrance to
their work shall be avoided. -
9. All work shall conform to the most recent edition of Caltrans Standard Plans and
Specifications and the City of Gilroy Standard Details and Specifications.
10. The City Engineer or his authorized agent shall have access at all times to work completed
or in progress and shall be furnished with all reasonable means and facilities for
ascertaining the progress of work and the quality of the materials used. All work performed
and all materials furnished shall be subject to the City Engineer or his authorized agent's
inspection and approval. Any item not meeting the City Engineer or his authorized agent's
complete satisfaction shall be replaced immediately.
Inspection of work shall not relieve the Contractor of any obligation to fulfill the contract as
prescribed. Defective work or materials shall be made good, and unsuitable material may
be rejected notwithstanding the fact that such defective work and unsuitable materials
have been previously inspected by the City Engineer or his authorized agent and
accepted.
11. All work, which is determined by the City Engineer or his authorized agent to be defective
in is construction or is deficient in any way, shall be remedied or removed by the
Contractor at his expense in a manner acceptable to the City.
12. The City Engineer or his authorized agent shall decide all questions that may arise
regarding the quality or acceptability of materials furnished or work performed, the manner
of performance and rate of progress of the work, and the acceptable fulfillment of the
contract. The City Engineer's decision shall be final.
13. All fixed time, semi actuated, and fully actuated signals installed during the fife of the
contract shall be added to those already maintained by the Contractor, as the City notifies
the Contractor of the installation thereof. These signals shall be maintained at the same
rate and in the same manner as those covered by the agreement. In the event notification
Is made at other than the beginning of the monthly contract period, payment for that month
shall be prorated from the day the Contractor is notified.
14. All RRFB crosswalks added throughout the life of the contract shall be maintained by the
Contractor, as the City notifies the Contractor of the installation thereof. These RRFB
crosswalks shall be maintained at the same rate and in the same manner as those
covered by the agreement In the event notification is made at other than the beginning of
the monthly contract period, payment for that month shall be prorated from the day the
Contractor is notified.
8.7.b
Packet Pg. 111 Attachment: Cal-West Agreement (3824 : Amendment to Agreement with Cal-West Lighting and Signal Maintenance, Inc.)
15. All flashing beacons (not part of traffic signal assembly) added throughout the life of the
contract shall be maintained by the Contractor, as the City notifies the Contractor of the
installation thereof. These flashing beacons shall be maintained at the same rate and in
the same manner as those covered by the agreement. In the event notification is made at
other than the beginning of the monthly contract period, payment for that month shall be
prorated from the day the Contractor is notified.
16. All electroliers added throughout the lire of the contract shall be maintained by the
Contractor, as the City notifies the Contractor of the installation thereof. These electroliers
shall be maintained at the same rate and in the same manner as those covered by the
agreement. In the event notification is made at other than the beginning of the monthly
contract period, payment for that month shall be prorated from the day the Contractor Is
notified.
8.7.b
Packet Pg. 112 Attachment: Cal-West Agreement (3824 : Amendment to Agreement with Cal-West Lighting and Signal Maintenance, Inc.)
EXHIBIT"C"
MILESTONE SCHEDULE
103SM71 10
IACW700003 ''
8.7.b
Packet Pg. 113 Attachment: Cal-West Agreement (3824 : Amendment to Agreement with Cal-West Lighting and Signal Maintenance, Inc.)
EXHH3IT -D"
PAYMENT SCHEDULE
The Contractor shall submit to the Engineering Division an invoice for each month of
maintenance. The invoice shall include the date and time of the service call, date and time of
arrival at the location, date and time of completion of the prescribed work, description of service
rendered, and a detailed listing of parts, equipment, and labor utilized in this repair. Follow-up
work such as permanent knockdown replacements or other As-Requiredl Scheduled
Maintenance shall include all of the above and a copy of the City -authorized "Work
Authorization Form."
The Contractor shall be compensated for labor and mobile equipment for any regular
maintenance or services in accordance with the rates set forth In the proposal. Overtime rates
shall be charged, if any, only on weekdays from 5:00 pm to 8:00 am, Saturdays. Sundays, and
all national holidays. Overtime shall be charged for only the actual time spent at the work site in
fifteen (15) minute increments and any minimum call -out. The Contractor shall submit time
sheets at the request of the City Engineer or his authorized agent to confine any personnel and
mobile equipment charges whether for regular time or overtime. The Contractor's rates set forth
in the proposal shall be complete and final. No other charges shall be permitted other than
those stated in the Contractors proposal.
The Contractor shall be compensated at cost plus fifteen (15) percent for all material supplies
not specifically included in the below rate sheet. Upon demand, the contractor shall submit to
the City Engineer or his authorized agent copies of the material supplier's invoices for any
materials used or supplied under this contract.
267u 61 m
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8.7.b
Packet Pg. 114 Attachment: Cal-West Agreement (3824 : Amendment to Agreement with Cal-West Lighting and Signal Maintenance, Inc.)
See Attachment "C3" for a detailed inventory, (and general exceptions) of the following items:
MONTHLY MAINTENACE ESTIMATED QUANTITY COST uNrr
Base Contract Items:
1. Traffic Signal Maintenance (Monthly)
City Owned and Maintained)
2. Traffic Signal Maintenance (3-Month)
City Owned and Maintained)
3. Traffic Signal Maintenance (6-Month)
City Owned and Maintained)
4. Traffic Signal Maintenance (Annually)
City Owned and Maintained)
5. RRFB Crosswalk
Maintenance
City Owned and Maintained)
6. Flashing Red Beacon Maintenance
City Owned and Maintained)
7. Flashing Yellow Beacon Maintenance
City Owned and Maintained)
8. Solar Speed limit Radar Signs
341ntersectlons/month 80.00 PER EACH
2720.00 EXT. COST
34 intersections/month 0.0omaumd PER EACH (R)
Add -on Cost to item 1) 0.00-iodudsa EXT. COST
34 intersections/mordh LutnGluded PER EACH (R)
Add -on Cost to item 1, 2) 0.00fidudnn EXT. COST
34 intersectiona/month 0.wm1ww a PER EACH (R)
Add -on Cost to item 1, 2, 3) $ s.owndudw EXT. COST
5 hashing x-walk/month 45.00 PER EACH
225.00 EXT. COST
1 flashing beacon/month
17 flashing beaconfmonth
4 Solar Radar Sign/month
9. Traffic Signal Maintenance (Monthly) 11 Intersections/month
Caltrans Owned/Cky Maintained)
45.00 PER EACH
45.00 CXT. COST
45.00 PER EACH
06.00 EXT. COST
70.00 PER EACH
260.00 EXT. COST
t10.00 PER EACH
880.00 EXT. COST
10. Traffic Signal Maintenance (3-Month) 11 Intersections/month $ 0.owndWW PER EACH (R)
Caltrans Owned/City Maintained) Add -on Cost to item 9) o.00-indudod EXT. COST
11, Traffic Signal Maintenance (&Month) 11 intersections/month O 0 ndWW PER EACH (R)
Caltrans Owned/Clty Maintained) Add -on Cost to Item 9, 10) 0 N)A UN d EXT. COST
12. Traffic Signal Maintenance (Annually) 11 intersections/month o0n.mduded PER EACH (R)
Caltrans Owned/City Maintained) Add -on Cost to kern 9, 10, 11) $ o.owmtuddd EXT. COST
13. Streetlight Night Check Per Zone 1 zone/month 960-00 PER EACH (R)
City maintained)
8.7.b
Packet Pg. 115 Attachment: Cal-West Agreement (3824 : Amendment to Agreement with Cal-West Lighting and Signal Maintenance, Inc.)
14. USA Marking (strastiight and signal) 1 each (Marking/Remark only) $55,00 PER EACH
Caltrans/Clty Maintalned) (Assume 100 locationalmonth)' $5500.00 EXT. COST
Subtotal $ 11,365.00 (Eleven thousand three hundred slaty -fore dollars) per month
R) - denotes revocable hems. City may elect to revoke this Item at any time.
Actual count varies (actual cost shall be based on unit price)
te_1 l°„kTcd"I"olaiN P ryTl^ae'" V97Rd"`tlpA-'r K'". u na+r can i'i
See Attachment"O" for a description of the following items:
EQUIPMENT COST UNIT
1. Service Truck............................................................ 5.00 PER HOUR
2. Service Truck with arrow board.. , ..... ........................... 6.00 ___ PER HOUR
3. Arrow Board ................................................... 6.00Mo CharMe PER HOUR
4. Dump Truck............................................................ 30.00__.. _ PER HOUR
5. Air Compressor ................................................... 0.001No Charge PER HOUR
6. Bucket Truck.. .......................................................... 30.00 _ PER HOUR
7. Boom Truck......................................................... 30.00 PER HOUR
8. Concrete Saw............................................................ 0.00/No Charge PER HOUR
9. Lighting Trailer.......................................................... 0.00/No Charge PER HOUR
PERSONNEL COST UNIT
10. Field Technician Supervisor --Regular 125.00 PER HOUR
11. Field Technician Supervisor -Overtime 200.00 PER HOUR
12. Electrical Technician - Regular 125.00 PER HOUR
13. Electrical Technician - Overtime 200.00 PER HOUR
14. Traffic Technician - Regular 125.00 PER HOUR
15 Traffic Technician - Overtime 200.00 PER HOUR
16. Field Technician - Regular S75.00 PER HOUR
17. Field Technician - Overtime 105.00 PER HOUR
18. Crane Operator- Regular 125.00 PER HOUR
19. Crane Operator -Overtime 200.00 PER HOUR
20. Engineering Technician 125.00 PER HOUR
21. GIS Specialist 125.00 PER HOUR
22. Traffic Engineer! Electrical Engineer 165.00 PER HOUR
23, Clerical Support 00.00 PER HOUR
REPAIRS COST UNIT
24. Turned Signal Head 80.00 PER EACH
25. Turned Signal Head - Overtime 450.00 PER EACH
26. Turned PED Head 80.00 PER EACH
27. Turned PED Head -Overtime M150.00 _ PER EACH
28. Loose Back Plate 80.00 PER EACH
29. Bulb Cell 80.00 PER EACH
30. Bulb Call - Overtime 450.00 ,_PER EACH
31. LED Lamp Out 170,00 PER EACH
32. LED Lamp Out - Overtime 500.00 PER EACH
8.7.b
Packet Pg. 116 Attachment: Cal-West Agreement (3824 : Amendment to Agreement with Cal-West Lighting and Signal Maintenance, Inc.)
33. Re -splice Loop 105.00 PER EACH
34, Epoxy Loop 125.00 PER EACH
36a. Fiber Optic Fusion Splicing (single mode) 170.00 PER STRAND
35b. Fiber Optic Fusion Splicing (multimode) 170.00 PER STRAND
36. Type 1-A Pale (10' or 7') 650.00 PER EACH
37. 5 Section 12" Signal Head (including reflector, lamp, visor
t back plate) 730.00 PER EACH
38. MAS 5-Signal Head 800.00 PER EACH
39. 3secticn 12" signal head 400.00 PER EACH
40. 3-section 12" arrow signal head 300.00 PER EACH
41. Signal mount, pole 2D0.00 PER EACH
42. Signal mount, meat arts 95.00 PER EACH
43a. Pedestrian push button assembly (side mount) 70.00 PER EACH
43b. Pedestrian push button assembly (top mount) 7D.00 _ PER EACH
44a. PPB housing and sign (side mount) 80.00 PER EACH
44b. PPB housing and sign (top mount) 80.00 PER EACH
45. 4102-3p (ICC) universal Z crate visor 70.00 PER EACH
46. Pull box#5 250.00 PER EACH
47, Pull box#6 300.00 PER EACH
48, Pull box#6E 400.00 PER EACH
49. Pull box#7E 400.00 PER EACH
50. Type III AF service 3500.00 PER EACH
51, Telco Pedestal 600.00 PER EACH
52. Telco Pedestal 2 Blocks/ground rod Inst. 1600.00 PER EACH
53. 4094-D (ICC) type G Irdnl. Neon ped head n/a PER EACH
54 FED Mod Kit Installed 225.00 PER EACH
55. Loop installation (6'x6')-single 650.00 PER EACH
56. Loop Installation (8'x8') - Series of 4 Loops 2400.00 PER EACH
57. Video Detection (Autoscope) - One comers+ mini hub aee below PER EACH
58. Video Detection (Autoscope) -four cameras+ mini hub see below PER EACH
59. Stub out installation 80.00 _ PER EACH
60. IISNS Repair 250.00 PER EACH
61. Signal/Ped Head painting 100.00 PER EACH
62. 12 pair cable (pe22) installed/ 100' S soo.00 PER 100'
63. 25 pair cable (pe22) installed/ 100' 70D 00 „_ PER 100'
64. OSP Cst5e Cable installed/ 100' sno no PER 100'
65. Trench 1.5' conduit installed/ 100' MOM PER 100'
66, Trench 3.0" cendun installed/ 100' 3400.00 PER 100'
67. Trench colored quad -dud, schedule 40/ 100' 3900.00 PER 100'
68. Quad -Duct schedule 40 installed in open trench by dug by others $ 1000.00 PER 100'
69. Bore 1.5" conduit 100' 4000.00 PER 100'
70. Bore 3.0" conduit 100' 4300.00 PER 100'
71. Bore. colored quad4dud, schedule 40, 100' ge00.00 PER 100'
72. 70-watt HPS lamp 11.00 PER EACH
73. 100-watt HPS lamp 11.00 PER EACH
74. Tape Shield 50.OD PER EACH
75. Flat Lana 50.00 PER EACH
76. Leotek 20F LED fixture (furnish and install) sea belay PER EACH
77. Leotek 3OF LED fixture (furnish and install) see belay PER EACH
78. Leotek 40F LED fixture (fumish and install) see below PER EACH
79. Leotek 6OF LED fixture (furnish and install) see below PER EACH
8.7.b
Packet Pg. 117 Attachment: Cal-West Agreement (3824 : Amendment to Agreement with Cal-West Lighting and Signal Maintenance, Inc.)
al). Leotek 80F LED fixture (furnish and install) see below PER EACH
81. Leotek 100F LED fixture (furnish and install) S `see below PER EACH
82. Leotek 120F LED fixture (furl and install) see below PER EACH
83. King Luminaire LED Decorative Fixture (furnish and Install) soe below PER EACH
84. New Signal Turn On Support 155.00 PER HOUR
85. Furnish and Install Anti -Theft Pull Box Lid 380 00 PER EACH
86. Tape Programmed Visibility Head Kit 100,00 PER EACH
87. Furnish and Install streetlight photoelectric cells 85.00 PER EACH
Due to varying vendor market price fluctuations, cost(s) will be based on current market price plus labor
All vendor documentation and/or invoicing shall be forwarded to the City upon request.
Subcontractor Fee Schedule
TRAFFIC
PATTERNS
Typical Fees (Includes 10% Markup for Service thru Prime Contractor)
Work Type Hourly Rate Flat Rate per SheebProject
Project Management/Design $181.50
Expert Witness— Field lnvestigationslReview $214.50
Expert Witness — Deposition $324.50
ExpertWiitness— CourtTestimony $544.50
Traffic Handling Plans — Standard 324,50
Traffic Handling Plans —48 Hour RUSH 440.00
Traffic Handling Plans — Signage & Striping 1,045.00
Traffic Handling Plans — Traffic Signal Modifications 1,320.00
Traffic Signal Design— Includes Electrical Field investigation $16.500.00
Traffic Patterns provides a detailed work scope for review and approval by clients ptiur to the start of work.
Work Scopes are tailored to meet project budgets and gords-
8.7.b
Packet Pg. 118 Attachment: Cal-West Agreement (3824 : Amendment to Agreement with Cal-West Lighting and Signal Maintenance, Inc.)
ITEM DESCRIPTION
1-9 Supply equipment as required. Cost shall be given on a per hour basis.
10-23 Supply labor as required. Cost shall be given on a per hour basis, except as noted.
24-35 Supply material and complete work per most recent edition of Caltrans Standard Plans and
Specifications. Costs provided should be on a per unit basis.
36-45 Supply material only. Installation shall be given on a per hour basis.
46-49 Supply material and complete Pull Box Installation per most recent edition of Caltrans Standard
Plans and Specifications.
50 Supply material and complete installation per most recent edition of Caltrans Standard Plans
and Specifications.
51 Supply labor as required. Material is not included in this price. Cost shall be given on a unit
basis.
51-52 Supply material and install Telco Pedestal installation per most recent edition of Caltrans
Standard Plans and Specifications.
53-55 Supply and install pedestrian signal indications, ballasts, and transformers as they become
inoperative or defective. Pedestrian indications shall be per most recent edition of Caltrans
Standard Plans and Specifications.
56 Supply material and complete loop installation per most recent edition of Caltrans Standard
Plans and Specifications.
57-58 Supply material and complete video detection installation per draft Caltrans Standard
Specifications or most recent edition of Caltrans Standard Plans and Specifications.
59 Supply material as needed per job.
60 Supply material and complete IISNS Repair per most recent edition of Caltrans Standard Plans
and Specifications.
61 Supply material and complete painting per most recent edition of Caltmns Standard Plans and
8.7.b
Packet Pg. 119 Attachment: Cal-West Agreement (3824 : Amendment to Agreement with Cal-West Lighting and Signal Maintenance, Inc.)
Specifications.
62-64 Supply material and complete underground cable installation in existing conduit per most recent
edition of Callrans Standard Plans and Specifications.
65-68 Supply material and complete trenching conduit installation per most recent edition of Callrans
Standard Plans and Specifications.
69-71 Supply material and complete boring conduit installation per most recent edition of Callrans
Standard Plans and Specifications.
72 Supply material as needed per job.
73-82 Supply and install material
83 Supply enough labor to use up one full can of paint
84 Provide full Traffic Signal Turn on Support
65-86 Furnish and Install
8.7.b
Packet Pg. 120 Attachment: Cal-West Agreement (3824 : Amendment to Agreement with Cal-West Lighting and Signal Maintenance, Inc.)
CITY OF GILROY
STREET LIGHT NIGHT CHECK ZONES
53
8.7.b
Packet Pg. 121 Attachment: Cal-West Agreement (3824 : Amendment to Agreement with Cal-West Lighting and Signal Maintenance, Inc.)
May 31, 2022
City of Gilroy
7351 Rosanna Street
Gilroy, CA 95020
Dear Sirs,
I would like to take this opportunity to express my utmost Appreciation and Gratitude for allowing
Cal-West to assist the City of Gilroy with it's ongoing Traffic Signal and Street Light Maintenance
program.
We work hard to meet or exceed the expectations presented by the City towards achieving a smooth
flowing Traffic Signal and Street-Lighting solution. We feel that we have built a strong and solid
relationship with the City personnel in relation to reaching the same goals and hope they are pleased
with our performance.
The original contract agreed upon states there may be a contract extension for the next and upcoming
fiscal year based on satisfactory and approved performance. In addition, annual pricing may also be
adjusted accordingly as per the San Francisco-Oakland-San Jose Consumer Price Index.
We at Cal-West will consider it an Honor to have the opportunity to continue assisting the
City of Gilroy with it's ongoing Maintenance Services for the next fiscal year of July 2022 through
June 2023.
Cal-West shall not increase any pricing in any way and will not be submitting for a CPI increase for the
next two fiscal years.
Cal-West shall Honor it's original submitted pricing throughout the full term of the original Contract as
originally agreed upon.
Thank you for your time and consideration.
Sincerely,
Craig H. Geis Jr.
President
PO Box 612035 ♦ San Jose, CA 95161-2035
Phone: (408) 923-1313 ♦ Fax: (408) 923-1115 ♦ License No. 847901
EXHIBIT A
8.7.c
Packet Pg. 122 Attachment: Gilroy CPI 2022-2023 (3824 : Amendment to Agreement with Cal-West Lighting and Signal Maintenance, Inc.)
City of Gilroy
STAFF REPORT
Agenda Item Title: Approval of the Fourth Amendment to the Franchise
Agreement Between the City of Gilroy and Recology South
Valley for Solid Waste Management Services
Meeting Date: June 20, 2022
From: Jimmy Forbis, City Administrator
Department: Administration
Submitted By: Jimmy Forbis, City Administrator
Prepared By: Bryce Atkins, Senior Management Analyst
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 approve the amendment.
BACKGROUND
The City of Gilroy has an exclusive franchise a greement with Recology South Valley for
solid waste management services. The agreement is set to expire at the end of June.
The City’s shared Environmental Services Division with Morgan Hill is currently
negotiating the new agreement.
DISCUSSION
8.8
Packet Pg. 123
The City's current franchise for solid waste management services with Recology South
Valley expires at the end of June. While the City and Recology have been negotiating a
new franchise agreement for several months that will both extend the time of the
franchise and accommodate the new services required by State law, this document is
not finalized and a short-term extension will be required. Staff recommends that the
Council authorize the City Administrator to execute the attached two-month franchise
extension subject to the review and approval of the City Attorney.
ALTERNATIVES
Council may amend or reject the extension.
FISCAL IMPACT/FUNDING SOURCE
There are no new fiscal impacts to the City from this extension. The current contract
terms will simply continue for the additional timeframe until the new franchise
agreement negotiation and adoption process completes.
CONCLUSION
The extension amendment is required in order to maintain operations while the
negotiation process completes.
Attachments:
1. Fourth Amendment to Gilroy Franchise Agreement
8.8
Packet Pg. 124
FOURTH AMENDMENT TO THE FRANCHISE AGREEMENT
BETWEEN THE CITY OF GILROY
AND RECOLOGY SOUTH VALLEY
This Fourth Amendment to the Franchise Agreement (“Fourth Amendment”) is entered
this ____ day of June, 2022, by and between the City of Gilroy (the “City”), a municipal
corporation of the State of California, and Recology South Valley (“Contractor”), a California
Corporation.
This Fourth Amendment is made with references to the following facts:
A. City and Contractor are currently parties to an Agreement dated September 2, 1997, as
amended from time to time (the “Franchise Agreement”), by which City granted to
Contractor the exclusive franchise to collect, transport and dispose of garbage and
refuse produced within the corporate limits of City. The existing Agreement expires July
1, 2022.
B. City and Contractor are currently engaged in negotiations to establish a new franchise
agreement pursuant to which Contractor shall provide for solid waste collection and
management services and additional services to support compliance with SB 1383.
C. New franchise documents are nearly finalized but will not be ready for Council
consideration prior to the expiration of the current franchise.
NOW, THEREFORE, in consideration of the factual premises and the covenants and
conditions set forth in this Fourth Amendment, City and Contractor hereby agree as follows:
Section 18 (a) Commencement and Term shall be amended and replaced in its entirety by the
following:
18(a) Commencement and Term. This Agreement shall commence on the
Effective Date, but the Contractor’s services hereunder shall commence on July
9, 1997, or on such other date as the parties may mutually agree. The term of
this Agreement shall be eighteen (18) years and two months in addition to the
unexpired portion of the term of the present franchise agreement between the
parties, that is, until August 31, 2022.
All other terms of the Franchise Agreement, the First Amendment to the Agreement,
the Second Amendment to the Agreement, and the Third Amendment to the Agreement which
are not in conflict with the provisions of this Fourth Amendment shall remain unchanged in full
force and effect. In case of a conflict in the terms of the Franchise Agreement, the First
8.8.a
Packet Pg. 125 Attachment: Fourth Amendment to Gilroy Franchise Agreement (3827 : Franchise Agreement Extension)
Amendment to the Agreement, and the Second Amendment to the Agreement, the Third
Amendment to the Agreement and this Fourth Amendment, the provisions of this Fourth
Amendment shall control.
The Parties acknowledge and accept the terms and conditions of this Fourth
Amendment as evidenced by the following signatures of their duly authorized representatives.
It is the intent of the Parties that this Fourth Amendment shall become effective as of the date
first written above.
Dated: ______________________________
CITY OF GILROY
__________________
Marie Blankley, Mayor
____________________
Jimmy Forbis, City Administrator
APPROVED AS TO FORM:
CITY OF GILROY:
_____________________
Andy Faber, City Attorney
RECOLOGY SOUTH VALLEY
______________________
Salvatore M. Coniglio, Chief Executive Officer
8.8.a
Packet Pg. 126 Attachment: Fourth Amendment to Gilroy Franchise Agreement (3827 : Franchise Agreement Extension)
City of Gilroy
STAFF REPORT
Agenda Item Title: Approve the Purchase of a Vactor 2100i Combination Single
Engine Sewer Cleaner from Owen Equipment in an amount not
to exceed $594,156.16.
Meeting Date: June 20, 2022
From: Jimmy Forbis, City Administrator
Department: Public Works Department
Submitted By: Daryl Jordan, PE, Public Works Director
Prepared By: Daryl Jordan, PE, Public Works Director
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 purchase of a Vactor 2100i Combination Single Engine Sewer Cleaner
from Owen Equipment in an amount not to exceed $594,156.16 using the cooperative
purchasing agreement with Sourcewell (formerly known as the National Joint Powers
Alliance).
BACKGROUND
On December 4, 2017, Council unanimously approved the adoption of Resolutio n
Number 2017-39 authorizing the City Administrator to enter into an agreement with the
National Joint Powers Alliance (NJPA) and take advantage of the nationally leveraged
competitively solicited purchasing contracts.
9.1
Packet Pg. 127
The City utilized the purchasing power of NJPA Contract #022014-FSC as allowed by
the City’s purchasing process. The City has used NJPA in the past for purchasing.
NJPA completes all the required research, advertising, and competitive process aligned
with the City of Gilroy Purchasing Policy.
On June 6, 2018, NJPA became formally known as Sourcewell. Sourcewell promised
to maintain and continue to recognize the NJPA name. Membership agreements,
contracts, and agreements entered into with the NJPA will remain valid and continue in
effect without impact. This is to ensure contractual continuity and to safeguard any
disruptions to engagement with Sourcewell. Included in this would be membership,
use of cooperative purchasing contracts, or other contractual engagements.
On May 2, 2006, The State Water Board adopted Order No. 2006 -0003-DWQ,
Statewide General Waste Discharge Requirements (GWDR) for Sanitary Sewer
Systems (SSS) to regulate wastewater collection system management. The Order
required public agencies that own or operate sanitary sewer collection systems with
more than one mile of sewer pipes that convey untreated wastewater to a publicly
owned treatment facility, to develop and implement a Sewer System Management Plan
(SSMP) aimed at reducing, monitoring, and reporting Sanitary S ewer Overflows
(SSOs).
The GWDR order is in compliance with the Clean Water Act (CWA). The CWA
establishes the basic structure for regulating discharges of pollutants into the waters of
the United States. The Monitoring and Reporting Program (MRP) from the State Water
Resources Control Board (SWRCB) has issued statewide waste discharge
requirements for sanitary sewer systems, which include requirements for development
of an SSMP.
The City of Gilroy’s SSMP contains information on City sewer programs and plans for
operation and maintenance of the sewer collection system. Each element of the SSMP
describes how the City will comply with the Statewide Water Discharge Requirements
(WDRs) for Sanitary Sewer Systems. This will aid in eliminating or reducing cl aims,
fines, and lawsuits against the City.
The Vactor truck being purchased will be used to augment the existing fleet compliment
and to relegate the oldest Vactor in Fleet, which is 17 years in age, to a back -up status
or emergency status when a Vactor is in service or otherwise unavailable. The Vactor
purchased in 2017 will remain as a primary unit. The older Vactor with an estimated
500-gallon capacity of water for cleaning will be held in emergency reserve and
eventually retired. In contrast, the new Vactor has a 1500-gallon capacity of water for
cleaning.
The Vactor truck is used as the first defense against sewer blockages, spills into
waterways, and sewer intrusions, as well as digging for waterline repairs using its
hydro-excavator capabilities. It is imperative that problematic pipes, including those in
easements and siphons, be cleaned on their established cycles in order to protect
9.1
Packet Pg. 128
health, the environment, and property. Performing this work with the Vactor protects the
City from any potential regulatory enforcement by the Environmental Protection Agency,
State Water Board and Non-Governmental Organizations such as River Watch,
Baykeepers, and Clean Water Action.
ANALYSIS
The acquisition of a new Vactor will ensure that the Streets/Sewer/Trees Division can
adequately adhere to its Preventative Operation and Maintenance objectives, which are
as follows:
• Proactive, preventative, and corrective maintenance of gravity sewers,
• Ongoing CCTV inspection program to determine the condition of the gravity
sewers,
• Rehabilitation and replacement of sewers that are in poor condition, and
• Properly train City employees and contractors to assure proper operations and
maintenance of the collection system facilities.
ALTERNATIVES
Council can opt to not approve the purchase of a new Vactor. The 2005 Vactor has
severe limitations in its capacity, replacement parts and cleaning capability, making it a
poor choice for the City’s cleaning programs. Without a capable unit, crews are taken
away from conducting both the High Priority Cleaning (HPC) and System Wide Cleaning
(SWC)programs which lead to increased blockages, more service interruptions and
SSOs. These can lead to claims, fines, and lawsuits. Staff does not recommend this
option.
FISCAL IMPACT/FUNDING SOURCE
The total pricing associated with the purchase of a new Vactor 2100i Combination
Single Engine Sewer Cleaner is as follows:
Description Cost
Sourcewell Price $544,473.00
Sales Tax $49,683.16
Total Purchase Price $594,156.16
The Vactor 2100i will be purchased using Fund 600 (Fleet). The adopted FY22 budget
includes $1.5 million for vehicle replacement across the organization, including
$500,000 for the Vactor. Due to the ongoing supply chain issues worldwide, ordering of
new vehicles is backed up therefore staff do not project expending the full budgeted
9.1
Packet Pg. 129
amount for FY22. Staff recommend utilizing the appropriations from the remaining
vehicle replacement budget to fund the balance of the Vactor truck of approximately
$94,000. Staff plans to return to Council at mid-cycle with revised recommendations for
vehicles to be replaced during FY23 based on market availability of new vehicles.
NEXT STEPS
With Council’s approval, staff will finalize the purchase of the Vactor 2100i Combination
Single Engine Sewer Cleaner for the Public Works Operations Division. Owen
Equipment estimates eight to nine months of lead time for delivery to the City and once
delivered, the equipment will be deployable in approximately one week.
Attachments:
1. Proposal
9.1
Packet Pg. 130
Russ Knight
Tel: 707-290-9093
Quote Number: 2022-47537 1 of 8
Presents a Proposal Summary
of the
2100i
Combination Single Engine Sewer Cleaner with Positive Displacement Vacuum System Mounted on a Heavy
Duty Truck Chassis
for
City of Gilroy
613 Old Gilroy St.
Gilroy, Ca 95020
USA
Contract Number: 1011221-VTR
9.1.a
Packet Pg. 131 Attachment: Proposal (3858 : Approve the Purchase of a Vactor 2100i Combination Single Engine Sewer Cleaner)
Quote Number: 2022-47537 2 of 8
PRODUCT DESCRIPTION
· 2100i with Roots 824-16" Hg. Blower, 10 Yard Debris body, 1500 Gallons of Fresh Water
STANDARD FEATURES
· Aluminum Fenders
· Mud Flaps
· Electric/Hydraulic Four Way Boom
· Color Coded Sealed Electrical System
· Intuitouch Electronic Package
· Double Acting Dump Hoist Cylinder
· Handgun Assembly w/35' x 1/2" Hose w/Quick Disconnects
· 3" Y-Strainer at Water Pump Inlet
· Ex-Ten Steel Cylindrical Debris Tank
· Flexible Hose Guide
· (3) Nozzles with Carbide Inserts w/Rack
· Suction Tube Storage - 4 Pipe
· 1" Nozzle Pipe
· 10' Leader Hose
· Flat Rear Door w/Hydraulic Locks
· Dual Stainless Steel Float Shut Off
· Debris Body Vacuum Relief System
· Debris Deflector Plate
· 60" Dump Height
· Additional Water Tank Sight Guage
· Liquid Float Level Indicator
· Boom Transport Post Storage
· Boom Out of Position Indicator/Alarm
· Body Out of Position Indicator/Alarm
· 3" Y-Strainer @ Water Pump
· Performance Package
· 1" Water Relief Valve
· Microstrainer Prior to Blower
· Midship Handgun Coupling
· Side Mounted Water Pump
· Hose Wind Guide (Dual Roller)
· Hose Reel Manual Hyd. Extend/Retract
· Hose Reel Chain Cover (Full)
· Tachometer & Hourmeter/Blower
· Circuit Breakers
· LED Lights. Clearance, Back-Up, Stop, Tail & Turn
· Tow Hooks, Front and Rear
· Electronic Back-Up Alarm
· Hydraulic Tank Shutoff Valves
· Module Paint, Dupont Imron Elite - Sanded Primer Base
· 8" Vacuum Pipe Package
· Emergency Flare Kit
· Fire Extinguisher 5 Lbs.
· Fixed Rear Door Pipe Rack, 8" Pipe
· Subframe Mounted, 2-Pipe Rack, 8"
· Low Water Alarm with Water Pump Flow Indicator
· Joystick Boom Control
· Rodder System Accumulator- Jack Hammer on/off control w/ manual valve
· Digital Hose Footage Counter
· Water Pump Hour Meter
· PTO Hour Meter
9.1.a
Packet Pg. 132 Attachment: Proposal (3858 : Approve the Purchase of a Vactor 2100i Combination Single Engine Sewer Cleaner)
Quote Number: 2022-47537 3 of 8
· Hydraulic Oil Temp Alarm
· Digital Water Pressure Gauge
· Vactor Standard Manual and USB Version - 1 + Dealer
ADDITIONAL FEATURES
· 48" x 22" x 24" Curb Side Aluminum Toolbox with Lighting
· Roots 824-16" Hg. Blower
· 180 Degree Rotation, 10 Ft. Hydraulic Telescoping Boom, Front Loading 8" Suction Hose
· 80 GPM Variable Flow Water System
· 2500 PSI Water Pressure
· Hydraulic Cooling Package
· 1" x 1000' Piranha Sewer Hose, 2500 PSI
· Hydraulic Extending/Rotating 15" Hose Reel (1" x 1000') Capacity
· Debris Body Washout
· 6" Rear Door Knife Valve w/Camlock, Air Actuated, 3:00 Position
· 6" Rear Door Knife Valve w/Camlock, Air Actuated w/Port, 6:00 Position
· Full Rear Door Swinging Screen
· Centrifugal Separators (Cyclones)
· Folding Pipe Rack, Curbside, 8" Pipe
· Folding Pipe Rack, Streetside, 8" Pipe
· Rear Door Splash Shield
· Lube Manifold
· Plastic Lube Chart
· Laval Water Separator at Fill
· Hot Shift Blower Drive (automatic transmission)
· Bellypack Wireless Controls with hose reel controls, 2-way communications, and LCD Display
· Handgun Couplers, Front and Rear
· Hydro Excavation Kit - Includes Lances w/ Shield, Nozzles, Storage Tray, and Vacuum Tube
· Hose Wind Guide (Dual Roller), Auto, Hydraulically Indexing with Pinch Roller
· Rodder Hose Pinch Roller
· Hose Reel Manual Rewind Tool
· High Pressure Hose Reel
· Rodder Pump Drain Valves
· Rear Directional Control, LED Arrowboard
· Front Directional Control, LED Arrowstick
· Wireless, Waterproof, Rechargable, Handheld, LED Spot Light w/12V Charger
· Front Mounted, LED Beacon Light w/Limb Guard
· 14 Lighting Package, 14 Federal Signal Strobe Lights, LED
· LED Mid-Ship Turn Signals
· Worklights (2), LED,Boom
· Worklights (2), LED, Rear Door
· Worklight, LED, Operators Station
· Worklight, LED, Hose Reel Manhole
· Worklight, LED, Curb Side
· Worklight, LED, Street Side
· Hose Reel Wrapped for Delivery
· Toolbox, Front Bumper Mounted, 16 x 12 x 18 w/(2) LED Side Markers
· Behind Cab Toolbox with Lighting
· Toolbox, Driver Side Chassis Frame, 24w x 24h x 24d, with Lighting
· Toolbox, Driver Side Subframe, 18w x 24h x 24d, with Lighting
· (4) Long Handle Tool Storage Locations Behind Cab
· Camera System, Front, Rear and Both Sides
· Safety Cone Storage Rack - Post Style Front Bumper driver side
· Additional Safety Cone Storage Rack – 2 @ Rear bumper Drop in Style
· Digital Water Level Indicator
· Digital Debris Body Level Indicator
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Packet Pg. 133 Attachment: Proposal (3858 : Approve the Purchase of a Vactor 2100i Combination Single Engine Sewer Cleaner)
Quote Number: 2022-47537 4 of 8
· Blower High Temperature Safety Shutdown
· 1 Printed Full Vactor Manual
· Vactor Standard Manual and USB Version – 1
· Chassis Mods: Power Windows/Lock/Mirrors. Duel Air Ride Seats. Aluminum Wheels. Chassis engine inspection door
· Water Tank upgrade to Helix Jet Bugs tank
· 15k Nozzle allowance: Style TBD
· 1 x new 8” by 78” Higbee Tube
· Owen to Furnish and install Motorola CM300D mobile radio and 2 x external speakers midship and front of t ruck
9.1.a
Packet Pg. 134 Attachment: Proposal (3858 : Approve the Purchase of a Vactor 2100i Combination Single Engine Sewer Cleaner)
Quote Number: 2022-47537 5 of 8
ALL COST INCREASES FOR MAJOR COMPONENTS (ENGINES, TRANSMISSIONS, AXLES AND TIRES), ALL COSTS
RESULTING FROM GOVERNMENT MANDATED REQUIREMENTS, AND ALL RAW MATERIAL SURCHARGES WILL BE
PASSED THROUGH AND ADDED TO FACTORY INVOICES.
Customer Initials ________
Sourcewell price for Vactor 2100i…………..………………………………………………………..$544,473.00
Tax @9.125 %........................................................................................................................................$49,683.16
Total Price FOB Gilroy, Ca.………...………………………………….…………………….........…$594,156.16
Registration and training included
THE PROPERTY HEREIN IS GUARANTEED BY MANUFACTURER'S WARRANTY ONLY AND SELLER MAKES NO WARRANTY EXPRESSED OR IMPLIED, OF MERCHANTABILITY OR OTHERWISE, OR OF FITNESS FOR ANY PARTICULAR PURPOSE, THAT EXTENDS BEYOND THE ABOVE DESCRIPTION OF THE EQUIPMENT. NOTE: Price is good until June 25, 2022. Cost increases due to the addition of Government mandated safety or environmental devices incurred after the date of this proposal, will be charged to you at our cost. Proof of such costs, if any, will be documented. TAXES: SALES TAX applicable at time of delivery will be shown on our invoice. FEDERAL EXCISE TAXES, if applicable, will require payment unless a properly executed Exemption Certificate is submitted.
DELIVERY: 240-265 days TERMS: Net 10 or Approved Lease
Let me know if you need any additional information. I can provide you with a bid spec if you need it. I would welcome
the opportunity to set up a demo to show you guys just how easy it is to use our unit. If you have any questions, please
give me a call at (707) 290-9093.
Sincerely,
Russell Knight
Russell Knight
Branch Manager
9.1.a
Packet Pg. 135 Attachment: Proposal (3858 : Approve the Purchase of a Vactor 2100i Combination Single Engine Sewer Cleaner)
QuoteNumber:2022-47537 6 of 8
LIMITED WARRANTY
Limited Warranty. Each machine manufactured by VACTOR MANUFACTURING (or, "the Company") is warranted against defects in
material and workmanship for a period of 12 months, provided the machine is used in a normal and reasonable manner and in accordance
with all operating, maintenance and safety instructions. In addition, certain machines and components of certain machines have extended
warranties as set forth below. If sold to an end user, the applicable warranty period commences from the date of delivery to the end user. If
used for rental purposes, the applicable warranty period commences from the date the machine is first made available for rent al by the
Company or its representative. This limited warranty may be enforced by any subsequent transferee during the warranty period. This
limited warranty is the sole and exclusive warranty given by the Company.
STANDARD EXTENDED WARRANTIES (Total Warranty Duration)
2100 Series, HXX Series and Jetters 10 years against water tank leakage due to corrosion. Nonmetallic wate r tanks
are covered for 5 yrs. against any factory defect in material or workmanship.
2100 Series, HXX Series and Guzzler only 5 years against leakage of debris tank, centrifugal compressor or housing due to
rust-through.
2100 Series and Jetters 2 years - Vactor Rodder Pump
Exclusive Remedy. Should any warranted product fail during the warranty period, the Company will cause to be repaired or replaced, as
the Company may elect, any part or parts of such machine that the Company's examination disclo ses to be defective in material or factory
workmanship. Repairs or replacements are to be made at the selling Company's authorized dealer's or distributor's location or at other
locations approved by the Company. In lieu of repair or replacement, the Compa ny may elect, at its sole discretion, to refund the purchase
price of any product deemed defective. The foregoing remedies shall be the sole and exclusive remedies of any party making a valid
warranty claim.
This Limited Warranty shall not apply to (and the Company shall not be responsible for):
1. Major components or trade accessories that have a separate warranty from their original manufacturer, such as, but not lim ited to, trucks
and truck chassis, engines, hydraulic pumps and motors, tires and batterie s.
2. Normal adjustments and maintenance services.
3. Normal wear parts such as, but not limited to, oils, fluids, vacuum hose, light bulbs, fuses and gaskets.
4. Failures resulting from the machine being operated in a manner or for a purpose not recommended or not in accordance with operating,
maintenance or safety instructions provided by the Company.
5. Repairs, modifications or alterations without the express written consent of the Company, which in the Company's sole judg ment, have
adversely affected the machine's stability, operation or reliability as originally designed and manufactured.
6. Items subject to misuse, negligence, accident or improper maintenance.
*NOTE* The use in the product of any part other than parts approved by the Company may invalidate this warranty. The Company
reserves the right to determine, in its sole discretion, if the use of non -approved parts operates to invalidate the warranty. Nothing
contained in this warranty shall make the Company liable for loss, injury, or d amage of any kind to any person or entity resulting from any
defect or failure in the machine.
THIS WARRANTY SHALL BE IN LIEU OF ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, AND TO THE EXTENT
PERMITTED, CONFERRED BY STATUTE, INCLUDING WITHOUT LIMITATION, ANY IMPLIED WARRANTIES OF
MERCHANTABILITY, OR FITNESS FOR A PARTICULAR PURPOSE, OR ANY WARRANTY AGAINST FAILURE OF ITS
ESSTENTIAL PURPOSE, ALL OF WHICH ARE DISCLAIMED.
This warranty is in lieu of all other obligations or liabilities, contractual and otherwise, on the part of the Company. For the avoidance of
doubt, the Company shall not be liable for any indirect, special, incidental or consequential damages, including, but not lim ited to, loss of
use or lost profits. The Company makes no representation that th e machine has the capacity to perform any functions other than as
contained in the Company's written literature, catalogs or specifications accompanying delivery of the machine. No person or affiliated
company representative is authorized to alter the terms of this warranty, to give any other warranties or to assume any other liability on
behalf of the Company in connection with the sale, servicing or repair of any machine manufactured by the Company. Any legal action
based hereon must be commenced within eighteen (18) months of the event or facts giving rise to such action.
The Company reserves the right to make design changes or improvements in its products without imposing any obligation upon it self to
change or improve previously manufactured products.
VACTOR MANUFACTURING
1621 S. Illinois Street
Streator, IL 61364
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Packet Pg. 136 Attachment: Proposal (3858 : Approve the Purchase of a Vactor 2100i Combination Single Engine Sewer Cleaner)
TERMS AND CONDITIONS
Quote Number:2022-47537 7 of 8
ORDERS: All orders are subject to acceptance by Vactor
Manufacturing, Inc. or Guzzler Manufacturing, Inc. (hereafter
referred to as Vactor). Orders for products not normally carried
in stock or requiring special engineering or manufacturing is in
every case subject to approval by Vactor's Management.
PRICES: All orders are subject to current prices in effect at the
time of order acknowledgement.
F.O.B. Point: Unless otherwise stated, all prices listed are
F.O.B. factory.
PAYMENT TERMS: The company's payment terms are due
upon receipt, unless otherwise stated. However, until such time
as Vactor receives full payment, Vactor shall maintain a
purchase money security interest in the product.
CANCELLATION: Orders cannot be cancelled except upon
terms that will compensate Vactor for any loss or damage
sustained. Such loss will be a minimum of 10% of the purchase
price.
SHIPMENT: All proposals are based on continuous and
uninterrupted delivery of the order upon completion, unless
specifications distinctly state otherwise. In the event that
agreement is reached for Vactor to store compl eted items, they
will be immediately invoiced to the customer and become due
and payable. Storage shall be at the risk of the customer and
Vactor shall be liable only for ordinary care of the property.
STORAGE CHARGES: Vactor shall charge the customer at
current rates for handling and storing customer's property (e.g.
truck chassis) held for more than thirty (30) days after
notification of availability for shipment. All customer's
property, or third party's property, that is stored by Vactor i s at
the customer's or other party's risk. Vactor is not liable for any
loss or damage thereto caused by fire, water, corrosion, theft,
negligence, or any caused beyond its reasonable control.
PERFORMANCE: Vactor shall not be liable for failure to
complete the contract in accordance with its terms if failure is
due to wars, strikes, fires, floods, accidents, delays in
transportation or other causes beyond its reasonable control.
EXPERIMENTAL WORK: Work performed at customer's
request such as sketches, drawings, design, testing, fabrication
and materials shall be charged at current rates.
SKETCHES, ENGINEERING DRAWINGS, MODELS and
all preparatory work created or furnished by Vactor, shall
remain its exclusive property; and no use of same shall be made
nor may ideas obtained therefrom be used except with the
consent of and on terms acceptable to Vactor.
TAXES: Buyer's final cost shall include all applicable sales and
use taxes, including all sales and use taxes attributable to any
changes made to Buyer's initial order placed hereunder or to any
changes to applicable sales and use tax laws. However, Vactor
Manufacturing, Inc. shall be responsible for Federal Excise Tax
(F.E.T.) unless it is separately stated on the invoice and added to
the selling price. If F.E.T. is not separately stated on the invoice
it has not been included in the price and Vactor will pay any
F.E.T. due itself and bear the cost of the tax. Any refunds or
adjustments to the F.E.T. in such cases belong to Vactor.
PRODUCT IMPROVEMENTS: Vactor reserves the right to
change manufacturing specifications and procedure in
accordance with its product improvement policy.
MOUNTING PRICES: Mounting prices assume normally
factory installation on a truck chassis suitable for the unit
purchased. Relocation of batteries, fuel tanks, mufflers, air
tanks, etc. will be an additional charge, billed at the standard
factory labor rate.
WARRANTY: Vactor warrants its products to be free from
defects in material and workmanship for a period of 12 months,
subject to the limitations and conditions set forth in its current
published warranty. Other than those expressly stated herein.
THERE ARE NOT OTHER WARRANTIES OF ANY KIND
EXPRESS OR IMPLIED, AND SPECIFICALLY EXCLUDED
BUT NOT BY WAY OF LIMITATION, ARE THE IMPLIED
WARRANTIES OF FITNESS FOR A PARTICULAR
PURPOSE AND MECHANTABILITY.
IT IS UNDERSTOOD AND AGREED THE VACTOR'S
LIABILITY WHETHER IN CONTRACT, IN TORT,
UNDER ANY WARRANTY IN NEGLIGENCE OR
OTHERWISE SHALL NOT EXCEED THE RETURN OF
THE AMOUNT OF THE PURCHASE PRICE PAID BY
THE PURCHASER AND UNDER NO CIRCUMSTANCES
SHALL VACTOR BE LIABLE FOR SPECIAL,
INDIRECT, INCIDENTAL OR CONSEQUENTIAL
DAMAGES. THE PRICES STATED FOR THE
EQUIPMENT IS A CONSIDERATION IN LIMITING
VACTOR'S LIABILITY. NO ACTION REGARDLESS OF
FORM, ARISING OUT OF THE TRANSACTION OF THE
AGREEMENT MAY BE BROUGHT BY PURCHASER
MORE THAN ONE YEAR AFTER THE CAUSE OF
ACTION HAS OCCURRED.
VACTOR'S MAXIMUM LIABILITY SHALL NOT
EXCEED AND BUYER'S REMEDY IS LIMITED TO
EITHER (I) REPAIR OR REPLACEMENT OF THE
DEFECTIVE PART OF PRODUCT, OR AT VACTOR'S
OPTION (II) RETURN OF THE PRODUCT AND
REFUND OF THE PURCHASE PRICE AND SUCH
REMEDY SHALL BE BUYER'S ENTIRE AND
EXCLUSIVE REMEDY.
CHOICE OF LAW: These terms and conditions shall be
construed according to the laws of the State of Illinois. Failure
9.1.a
Packet Pg. 137 Attachment: Proposal (3858 : Approve the Purchase of a Vactor 2100i Combination Single Engine Sewer Cleaner)
TERMS AND CONDITIONS
Quote Number:2022-47537 8 of 8
at anytime by Vactor to exercise any right of its rights under this
agreement shall not constitute a waiver-thereof nor prejudice
Vactor's right to enforce it thereafter.
COMPLETE AGREEMENT: These terms and conditions,
contain the complete and final agreement between the parties
hereto and no other agreement in any way modifying any of
these terms and conditions will be binding on Vactor unless in
writing and agreed to by an authorized representative of Vactor.
All proposed terms included in Buyer's purchase order or other
standard contracting documents are expressly rejected.
I agree with the above terms and conditions:
___________________________
Date: ______________
9.1.a
Packet Pg. 138 Attachment: Proposal (3858 : Approve the Purchase of a Vactor 2100i Combination Single Engine Sewer Cleaner)
City of Gilroy
STAFF REPORT
Agenda Item Title: Acceptance of the Public Health Goal Report for the Gilroy
Drinking Water System in Accordance with California Health
and Safety Code 116470
Meeting Date: June 20, 2022
From: Jimmy Forbis, City Administrator
Department: Public Works Department
Submitted By: Daryl Jordan, PE, Public Works Director
Prepared By: Daryl Jordan, PE, Public Works Director
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 the 2019-2021 Public Health Goal Report for the Gilroy Drinking Water Syst em
in accordance with California Health and Safety Code 116470.
EXECUTIVE SUMMARY
The City’s water system continues to comply with all health -based drinking water
standards and Maximum Contaminant Levels established by the State Water
Resources Control Board (SWRCB) and the United States Environmental Protection
Agency (USEPA).
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The City of Gilroy obtains its municipal water supply from groundwater well sources
within the Llagas Basin Aquifer. The City currently operates nine water wells (referred
to as Well 1, 2…,8,8a) that vary in depth and are located throughout the City. In 2021,
these wells supplied potable water to an estimated 58,213 residents for personal and
industrial use.
This Public Health Goal (PHG) Staff Report for 2019-2021 is being provided to the City
Council to comply with SWRCB regulations. SWRCB regulations require cities with over
10,000 water connections to prepare a report and hold a public hearing, for the purpose
of accepting and responding to public comment, whenever any drinking water
contaminant exceeds the established PHGs. PHGs are classified more as
recommendations than mandates. Neither the SWRCB nor USEPA mandate additional
actions nor specific treatments for contaminants exceeding PHGs.
One constituent in the City’s water, Tetracholoroethylene, also known as
perchloroethylene (PCE) and sometimes called “dry-cleaning fluid”, has exceeded the
established PHG, on average, by 0.00003 Milligram/liter for the years 2019-2021.
Attached to this staff report are the Consumer Confidence Report (CCR) for 2021 and
the July 25, 2019 monitoring report for Well 2. The CCR is a water quality summary of
the Gilroy water system that is mailed to all residents each year. The 2021 CCR is
attached to this staff report because it shows the max imum concentration of PCE
detected in the water system for the PHG reporting period. The Well 2 monitoring
report is the corresponding source document for the maximum detection level of PCE.
BACKGROUND
The USEPA and the SWRCB develop regulations called Maximum Contaminant Levels
(MCLs) to comply with the Safe Drinking Water Act. MCLs are the legal limit of a
contaminant that can be found in drinking water and still protect public health.
PHGs are established by the State Office of Environmental Health Hazard Assessment.
Similar to MCLs, PHGs prescribe the maximum amount of a contaminant that can be
found in drinking water. MCLs are enforceable regulatory standards that all public water
systems in the state must adhere to. Conversely, PHGs are non -enforceable health-
based goals that do not consider the limits of detection and available treatment
technologies. Some PHG levels are such that current water systems either cannot
meet or would have to invest an exorbitant amount of money and effort to meet, which
makes delivering drinking water at those PHG levels infeasible. PHGs are generally
considered recommendations rather than mandates.
Section 116470(b) of the California Health and Safety Code requires all public water
systems with more than 10,000 service connections to prepare and submit a PHG
Report by July 1st, which covers the preceding three calendar years. This PHG Report
contains information regarding a contaminant found in the City of Gilroy’s water system
that exceeded its PHG identified level.
10.1
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The PHG Report is prepared because the PHG for one constituent in the City’s water,
Tetracholoroethylene (also known as perchloroethylene or PCE), has exceeded the
PHG, on average, by 0.00003 mg/l for the years 2019-2021.
Tetrachloroethylene is a chlorinated hydrocarbon solvent and chemical intermediate
which is used in several commercial processes. It is often used as a dry cleaning and
textile-processing solvent and for vapor degreasing in metal cleaning operations.
Numerous household products contain some level of PCE. PCEs used in the
production of chlorofluorocarbons (CFCs) has declined in recent years due to reduced
production of CFCs (which are often associated with aerosol sprays, blowing agents for
foams and packing materials, solvents, and refrigerants) stemming from efforts to
protect the stratospheric ozone layer from depletion. Solvent recovery operations and
recycling have also reduced demand for PCE production. Past dry -cleaning operations
in Gilroy are the most likely source of contamination in our wells. These chemicals were
from previous releases into the ground and percolated to the current water table level
where the solvent was detected.
It is important to recognize that PHGs are goals rather than enforceable standards and
that public water systems are not required to meet PHGs. Public water systems are only
required to not exceed the MCLs established by the SWRCB. In the three years
covered by this report, the City has only exceeded the PHGs for one contaminant,
Tetrachloroethylene (PCE), and only in two out of the nine wells. The City’s water has
never exceeded the MCLs for PCE.
The MCLs are enforceable standards that represent the highest level of a contaminant
that is allowed in drinking water. PHGs are based solely on publi c health risk
considerations, and do not account for the practical risk -management factors that are
considered by the USEPA or the SWRCB when establishing MCLs. PHGs are
concentrations of drinking water contaminants that pose no significant health risk if
consumed for a lifetime, based on current risk assessment principles, practices, and
methods. PHGs are established by the California Office of Environmental Health Hazard
Assessment (OEHHA) and are not enforceable standards.
ANALYSIS
Some of the test results for Well 1 and Well 2 have exceeded the PHG for PCE. The
MCL for PCE is 0.005 mg/l (milligrams per liter, which is the same as parts per million)
and the PHG is 0.00006 mg/l. The MCL for PCE is 83 times higher than the PHG.
Wells 1 and 2 have been tested monthly in 2019, 2020, and 2021, whereas Well 3 and
Well 7 have been tested quarterly. The range of detections in these years was between
non-detect and 0.0024 mg/l. The highest reading for PCE was at Well 2 on July 25,
2019 with a reading of 0.0024 mg/l, which is still 48% below the MCL. The average
concentration of PCE for the 3 years of this report is 0.0000 9 mg/l. Each year’s average
readings are only slightly higher than the PHG and well below the MCL of 0.005 mg/l as
shown in the chart below.
10.1
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Wells 1 and 2, which are located within 2,500-3,000 feet of each other in central Gilroy,
produce approximately 35% of the City’s water supply. It is important to note that all
City wells have, at all times, met State/Federal standards for drinking water. The City’s
water system continues to comply with all health -based drinking water standards and
maximum contaminant levels established by the SWRCB and the USEPA. No
additional actions or treatment are recommended by the State or USEPA as there is no
known impact to humans.
FISCAL IMPACT/FUNDING SOURCE
There are no financial impacts associated with receiving and filing this report.
Attachments:
1. 2021 Consumer Confidence Report Brochure
2. City of Gilroy Monitoring Results - July 25, 2019
10.1
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TABLE 1 - SAMPLING RESULTS SHOWING THE DETECTION OF COLIFORM BACTERIA 2019Microbiological Contaminants(to be completed only if there was a detection of bacteria)Highest No. ofdetectionsNo. ofmonths in violationMCLMCLGTypical Source of BacteriaTotal Coliform Bacteria(in a month)20More than 5% samples in a month with a detection0Naturally present in the environmentFecal Coliform or E. coli(in a year)00A routine sample and a repeat sample detect total coliform and either sample also detects fecal coliform or E. coli0Human and animal fecal wasteTables 1, 2, 3, 4, and 5 list all of the drinking water contaminants that were detected during the most recent sampling for the constituent. The presence of these contaminants in the water does not necessarily indicate that the water poses a health risk. The SWRCB requires us to monitor for certain contaminants less than once per year because the concentrations of these contaminants are not expected to vary significantly from year to year. Some of the data, though representative of the water quality, are more than one year old. TABLE 2 - CUSTOMER TAP LEAD/COPPER SAMPLINGLead and Copper (to be completed only if there was a detection of lead or copper in the last sample set)No. ofsamplescollected90th percentilelevel detectedSchools that have requested lead samplingNo. SitesexceedingALALMCLGTypical Source of ContaminantLead (ppb)6/30/2021300.00 ND240152Internal corrosion of household water plumbing systems; discharges from industrial manufacturers; erosion of natural depositsCopper (ppm)6/30/2021300.310N/A01.30.3Internal corrosion of household water plumbing systems; erosion of natural deposits; leaching from wood preservatives TABLE 3 - SAMPLING RESULTS FOR SODIUM AND HARDNESSChemical or Constituent(and reporting units)SampleDataAvg. LevelDetectedRange of DetectionsMCLPHG(MCLG)Typical Source of ContaminantSodium (ppm)5/12/202126.5617–58nonenoneGenerally found in ground and surface waterHardness (ppm)5/12/2021234174– 271nonenoneGenerally found in ground and surface waterTABLE 4 - DETECTION OF CONTAMINANTS WITH A PRIMARY DRINKING WATER STANDARDChemical or Constituent(and reporting units)SampleDataAvg.LevelDetectedRange ofDetectionMCLPHG(MCLG)Typical Source of ContaminantFluoride (ppm)20210.09ND–0.1221(NA)Erosion of natural deposits; water additive which pro-motes strong teeth; discharge from fertilizer and aluminum factoriesNitrate (N) (ppm)Quarterly202152.3–8.91010(NA)Runoff and leaching from fertilizer use; leaching from septic tanks, sewage; erosion of natural depositsTetrachloroethylene [PCE] (ppb)Monthly20210.011ND–2.150.06(NA)Leaching from PVC pipes; discharge from factories, dry cleaners and auto shops (metal degreaser)Total trihalomethanes[TTHMs] (ppb)Quarterly20214.68ND–10.380NA(NA)By-product of drinking water chlorinationTotal Haloacetic Acids(HAA5) (ppb)Quarterly20211.05ND–2.960NA(NA)By-product of drinking water chlorinationTABLE 5 - DETECTION OF CONTAMINANTS WITH A SECONDARY DRINKING WATER STANDARDChemical or Constituent(and reporting units)SampleDataAvg. LevelDetectedRange ofDetectionsMCLPHG(MCLG)Typical Source of ContaminantChloride (ppm)5/12/202130.3322–48500NA(NA)Runoff/leaching from natural deposits; seawater influenceSpecific Conductance(micromhos/cm)5/12/2021555.56490–6101600NA(NA)Substances that form ions when in water; seawater influenceSulfate (ppm)5/12/202137.5632–44500NA(NA)Runoff/leaching from natural deposits, industrial wastesTotal dissolved solids [TDS] (ppm)5/12/2021349290–4001000NA(NA)Runoff/leaching from natural depositsPresented By
The City of Gilroy
Water Department
California drinking water regulations require that water delivered
by public water systems be, at all times, pure, wholesome and
potable, as required by the Federal and State Safe Drinking Water
Acts. To accomplish this mandate, domestic water must meet
strict standards, as established in the California Domestic Water
Quality and Monitoring Regulations. This regulation includes
primary and secondary Maximum Contaminant Levels (MCL) and
monitoring frequencies for specified microbiological, chemical and
radionuclide contaminants. Primary contaminants are those that
may have an adverse health effect. Secondary contaminants are
those that may adversely affect the aesthetic quality of the
drinking water. The regulation includes the provisions adopted by
the federal Safe Drinking Water Act of 1974. The state has direct
enforcement responsibility for all public water systems with 200 or
more service connections.
The Environmental Protection Agency (EPA) establishes monitoring
requirements and maximum contaminant levels. As the EPA
develops new standards, California will amend state regulations,
which establish water quality requirements for local water supplies.
The domestic water supplied by the City of Gilroy meets all current
regulations. This report includes the respective Public Health Goal
(PHG), or the federal Maximum Contaminant Level Goal (MCLG) for
chemicals that do not yet have a PHG.
If present, elevated levels of lead can cause serious health
problems, especially for pregnant women and young children. Lead
in drinking water is primarily from materials and components
associated with service lines and home plumbing. The City of Gilroy
is responsible for providing high quality drinking water, but cannot
control the variety of materials used in plumbing components. When
your water has been sitting for several hours, you can minimize the
potential for lead exposure by flushing your tap for 30 seconds to 2
minutes before using water for drinking or cooking. If you are
concerned about lead in your water, you may wish to have your
water tested. Information on lead in drinking water, testing
methods, and steps you can take
to minimize exposure is available from the Safe Drinking Water
Hotline or at http://www.epa.gov/regulatory-information-
topic/regulatory-information-topic-cross-cutting-issues#lead TABLE 6 - DETECTION OF UNREGULATED CONTAMINANTSChemical or ConstituentSample DateLevel DetectedAction LevelHealth Effects LanguageVanadium (ppb)7/8/03Avg. 1.19(ND–5.0)50The babies of some pregnant women who drink water containing vanadium in excess of the action level may have an increased risk of developmental effects, based on studies in laboratory animals*Any violation of an MCL or AL is asterisked. Additional information regarding the violation is provided below.Annual Water
Quality Report
2021
10.1.a
Packet Pg. 143 Attachment: 2021 Consumer Confidence Report Brochure (3857 : Acceptance of the Public Health Goal Report
City of Gilroy
Annual Water Quality Report PWSID#4310004
The report contains important information about your drinking
water. Translate it or speak with someone who understands it.
Este informe contiene información muy importante sobre su agua
beber. Tradúzcalo ó hable con alguien que lo entienda bien.
The City of Gilroy tests it’s water for many constituents as required
by State and Federal Regulations. This report shows the results of
our monitoring for the period of January 1–December 31, 2021.
The City of Gilroy is committed to providing a safe and reliable supply of
excellent quality drinking water that meets Federal and State regulations.
This brochure is a snapshot of the quality of water that we provided in
2021. Included are the details about the source of the City’s water, what
it contains, and how it compares to State standards. We are committed to
providing you with information because informed customers are the best
allies. The City encourages public interest and participation in decisions
affecting the community’s drinking water supply. Our City Council generally
meets at 6:00 P.M. on the first and third Monday of each month at
City Hall. The Santa Clara Valley Water District Board (SCVWD) of
Directors meetings are on the first and third Tuesday of each month at
9:30 a.m. (and the fifth Tuesday at 7:30 p.m. when applicable).
The City of Gilroy will take any steps necessary to ensure that your water
continues to meet safe drinking water standards.
The State Water Resources Control Board (SWRCB), Drinking Water
Field Operations Branch, requires water agencies to annually notify their
customers of the constituents or elements in their drinking water. This
is not the result of punitive action, nor is it indicative of any violation of
treatment practices. It is strictly a mandated public information service
legislated to keep you informed each year of the facts about your
drinking water.
Water System
The City of Gilroy obtains its municipal water supply from ground-
water well sources within the Llagas Basin Aquifer. The City currently
operates nine water wells that vary in depth that are located
throughout the City. In 2021, these wells supplied 58,213 residents
with water for personal and industrial use. Gilroy treats our water with
chlorine disinfection to remove or reduce harmful contaminants that
may come from the source water. The City has performed a Source
Water Assessment of our water which identifies possible impacts to
water quality. Our source water is considered most vulnerable to the
following activities: gas stations, dry cleaners, and metal plating/
finishing/fabricating. A copy of the Source Water Assessment is
available by contacting Engineering at (408) 846-0450. If you have
any questions regarding this report or the water system, please
contact Jeff Castro at (408) 846-0270.
As the Environmental Protection
Agency (EPA) develops new
standards, California will amend
state regulations that establish
water quality requirements for local
water supplies. The domestic water
supplied by the City of Gilroy meets
all current regulations.
This report includes the respective
public health goal (PHG), or the
federal maximum contaminant level
goal (MCLG) for chemicals that do
not yet have a PHG.
System Improvements
To meet the growing needs of our customers, the City of Gilroy is
continually evaluating, maintaining and improving our water system.
The City has installed variable frequency drive (VFD’s) on three of our
wells in an effort to reduce energy costs and maintain system pressure
during high demand. The City is also in the preliminary stage of a new
well at McCarthy Ranch on the south side of the City.
The State Water Resources Control Board (SWRCB) required all cities
in California to do an inventory of service lines containing lead, or
lead containing materials, in their water system. In June of 2018 the
city completed the inventory and identified 450 steel services out of
15,167 services with materials containing small amounts of lead in
our distribution system. The city has begun systematically removing
and replacing these services as required, in fact the City has already
reduced the inventory of its steel services to 263 as of April 2022.
The City submitted a timeline to SWRCB in 2020 regarding the plan
for removal of all of the remaining steel services, the timeline was
accepted by the state and all services will be reduced by July 2028.
It is important to note that the groundwater that makes up 100% of
Gilroy’s supply does not have the corrosive properties found in other
parts of the country that has resulted in elevated amounts of lead in
the water. Gilroy participates in the mandatory tri-annual testing and
reporting on lead and copper in our water. The levels observed in
that specialized testing are extremely low. In fact, the levels are
so low that SWRCB has allowed the City to reduce the frequency of
testing from annually to tri-annually.
Drinking water, including bottled water, may reasonably be expected
to contain at least small amounts of some contaminants. The presence
of contaminants does not necessarily indicate that water poses a
health risk. More information about contaminants and potential health
effects can be obtained by calling the EPA’s Safe Drinking Water Act
Hotline (1-800-426-4791).
Some people may be more vulnerable to contaminants in drinking
water than the general population. Immuno-compromised persons
such as persons with cancer undergoing chemotherapy, persons
who have undergone organ transplants, people with HIV/AIDS or
other immune system disorders, some elderly, and infants can be
particularly at risk from infections. These people should seek the
advice about drinking water from their health care providers.
USEPA/Centers for Disease Control (CDC) guidelines on appropriate
means to lessen the risk of infection by Cryptosporidium and other
microbial contaminants are available from the Safe Drinking Water
Hotline (1-800-426-4791).
Water Conservation
State agencies, led by the State Water Resources Control Board,
has executed a statewide water conservation campaign to make
all Californians aware and encourage personal actions to reduce
water usage. More information is available about water
conservation and actions at the following website: cityofgilroy.org/
waterconservation
Water conservation measures not only save our water supply, but
can also cut the cost of water. Conserving water reduces the energy
costs of pumping water to our facilities as well as the chemical costs
for treating the water. There are several measures you, as the water
consumer, can do to conserve on water usage.
Conservation measures you can use inside your home include:
1. Fix leaky faucets, pipes, toilets, etc.
2. Install water-saving devices in faucets, toilets and appliances.
Simply replacing old fixtures with a new one will reduce water
consumption by nearly one-half. (See Santa Clara Valley Water
District web site for rebates available for water saving devices
at http://www.valleywater.org/rebates
3. Wash only full loads of laundry.
4. Don’t use the toilet for trash disposal.
5. Take shorter showers. Do not let the water run while shaving,
washing, brushing teeth, or cleaning fruits and vegetables.
6. Run the dishwasher only when full.
7. Purchase an energy efficient washing machine and dishwasher and
receive a rebate.
You can conserve outdoors as well:
1. Water the lawn and garden as little as possible. Outdoor watering
is more efficient between 7p.m. and 3a.m., and also reduces
demand during peak use periods. From November-March water
1 day a week or less. From April-October watering 2 days per week.
2. Use mulch around plants and shrubs or choose plants that don’t
need much water. Get a rebate for replacing your lawn at
www.valleywater.org/landscaperebateprogram
3. Repair leaks in faucets and hoses. Use water-saving nozzles.
4. Wash your car at a commercial car wash that recirculates its water.
5. Sweep clippings, leaves, and dirt from walks and driveways
rather than using the hose.
6. Obey any and all water use restrictions and regulations.
Consult the City of Gilroy website at www.cityofgilroy.org/
waterconservation for the latest water conservation regulations.
Contaminants
The sources of drinking water (both tap water and bottled water)
include rivers, lakes, streams, ponds, reservoirs, springs, and wells.
As water travels over the surface of the land or through the ground,
it dissolves naturally-occurring minerals and, in some cases, picks up
chemicals and substances resulting from the presence of animals or
from human activity.
Contaminants that may be present in source water
before we treat it include:
• Microbial contaminants, such as viruses and bacteria, that may
come from sewage treatment plants, septic systems, agricultural
livestock operations and wildlife.
• Inorganic contaminants, such as salts and metals, which can
be naturally-occurring or result from urban storm water runoff,
industrial or domestic wastewater discharges, oil and gas
production, mining or farming.
• Pesticides and herbicides, which may come from a variety of
sources such as agricultural, urban storm water runoff, and
residential uses.
• Organic Chemical Contaminants, including synthetic and volatile
organic chemicals that are byproducts of industrial processes and
petroleum production, and can also come from gas stations, urban
storm water runoff, agricultural application and septic systems.
• Radioactive contaminants, which can be naturally occurring or be
the result of oil and gas production and mining activities.
In order to ensure that tap water is safe to drink, the US
Environmental Protection Agency (USEPA) and the SWRCB prescribe
regulations that limit the amount of certain contaminants in water
provided by public water systems. Department regulations also
establish limits for contaminants in bottled water that must provide
the same protection for public health.
Nitrate in drinking water at levels above 10 mg/L is a health risk for
infants less than six months of age. Such nitrate levels in drinking
water can interfere with the capacity of the infant’s blood to carry
oxygen, resulting in a serious illness; symptoms include shortness
of breath and blueness of the skin. Nitrate levels above 10 mg/L
may also affect the ability of the blood to carry oxygen in other
individuals, such as pregnant women, and those with certain specific
enzyme deficiencies. If you are caring for an infant, or you are
pregnant, you should ask advice from your health care provider.
Definitions
Maximum Contaminant Level (MCL): The highest level of a
contaminant that is allowed in drinking water. Primary MCLs
are set as close to the PHGs (or MCLGs) as is economically and
technologically feasible. Secondary MCLs are set to protect the
odor, taste, and appearance of drinking water.
Maximum Contaminant Level Goal (MCLG): The level of a
contaminant in drinking water below which there is no known or
expected risk to health. MCLGs are set by the U.S. Environmental
Protection Agency.
Public Health Goal (PHG): The level of a contaminant in drinking
water below which there is no known or expected risk to health.
PHGs are set by the California Environmental Protection Agency.
Maximum Residual Disinfectant Level (MRDL): The level of a
disinfectant added for water treatment that may not be exceeded
at the consumer’s tap.
Maximum Residual Disinfectant Level Goal (MRDLG): The level
of a disinfectant added for water treatment below which there
is no known or expected risk to health. MRDLGs are set by the
U.S. Environmental Protection Agency.
Primary Drinking Water Standards: MCLs and MRDLs for
contaminants that affect health along with their monitoring and
reporting requirements, and water treatment requirements.
NA: not applicable
ND: not detectable at testing limit
ppm: parts per million or milligrams per liter (mg/L)
ppb: parts per billion or micrograms per liter (ug/L)
ppt: parts per trillion or nanograms per liter (ng/L)
pCi/L: picocuries per liter (a measure of radiation)
Regulatory Action Levels (AL): The concentration of a contaminant
which, if exceeded, triggers treatment or other requirements that
a water system must follow.
10.1.a
Packet Pg. 144 Attachment: 2021 Consumer Confidence Report Brochure (3857 : Acceptance of the Public Health Goal Report
10.1.b
Packet Pg. 145 Attachment: City of Gilroy Monitoring Results - July 25, 2019 (3857 : Acceptance of the Public Health Goal Report for Gilroy Drinking Water
City of Gilroy
STAFF REPORT
Agenda Item Title: Council Adopt a Resolution of the City Council of the City of
Gilroy Calling and Giving Notice of, on Its Own Motion, the
Submission to the Electors of the City of Gilroy at a Special
Municipal Election, to be Consolidated with the Statewide
General Election on November 8, 2022, a Ballot Measure
Proposal to Amend Sections 1109 and 1111 of the City of
Gilroy City Charter to Modify Construction Contract
Procurement and the Bidding Process
Meeting Date: June 20, 2022
From: Jimmy Forbis, City Administrator
Department: Administration
Submitted By: Jimmy Forbis, City Administrator
Prepared By: Jimmy Forbis, City Administrator
Strategic Plan Goals
☐ Develop a Financially
Resilient Organization
☐ Ensure Neighborhood
Equity from City
Services
☐ Promote Economic
Development
Activities
☐ Promote Safe,
Affordable Housing for All
☐ Maintain and Improve
City Infrastructure
RECOMMENDATION
Council:
a) Discussion and consideration of a Council-sponsored charter amendment for the
November 8, 2022 statewide general election;
b) If Council wishes to proceed with a charter amendment, adopt a resolution of the
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City Council of the City of Gilroy calling and giving notice of, on its own motion,
the submission to the electors of the City of Gilroy at a special municipal election,
to be consolidated with the statewide general election on November 8, 2022, a
ballot measure proposal to amend sections 1109 and 1111 of the City of Gilroy
City Charter to modify construction contract procurement and the bidding
process;
c) Council discussion and consideration of whether to permit rebuttal arguments
and authorize the City Council or any member or members of the City Council to
submit a rebuttal argument in favor of the City measure in the November 8, 2022
Voter’s Sample Ballot, pursuant to Elections Code Section 9285, to be
incorporated in the resolution calling the election;
d) Council discussion and consideration of whether to authorize the City Council or
any member or members of the City Council to submit an argument in favor of
the City measure on the November 8, 20 22 Voter's Sample Ballot, pursuant to
Elections Code Section 9282, to be incorporated in the resolution calling the
election; and
e) Council discussion and consideration of whether to direct the City Clerk to
transmit a copy of the measure to the City Attorney to prepare an impartial
analysis, pursuant to Elections Code Section 9280.
EXECUTIVE SUMMARY
City staff is proposing to Council a resolution to call for a special municipal election to
amend the Gilroy City Charter relating to public works project bidding and notification
provisions. These changes include the following:
1) Increasing the formal bidding threshold for public projects from $35,000 to be
consistent with the California Public Contract Code.
2) Adding best value contracting as a procurement option.
3) Adding design-build contracting as a procurement option.
4) Modernizing the public noticing/bid solicitation rules in the Charter.
If approved, staff will submit the special municipal election resolution and ballot
language for inclusion in, and consolidation with, the November 8, 2022 general
election.
POLICY DISCUSSION
Should an amendment to the City of Gilroy’s (“City”) City Charter (“Charter”) be p laced
on the November 8, 2022 general election ballot to consider amending the provisions
related to the bid process for public project contracts and official advertisements in
newspapers?
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BACKGROUND
The City of Gilroy is a Charter City. In 1960 the community voted to adopt a Charter,
which creates independent authorities and regulations on top of State law, instead of
being a general law city which follows only the authorities and restrictions put into place
by the State legislature.
The Charter grants authorities and imposes regulations across many areas of the City’s
operations, encapsulated through 15 different articles in the Charter. One of these
articles, Article 11 entitled “Fiscal Administration”, includes the bidding process for
public projects in Section 1109, and official advertising in Section 1111.
The Charter was adopted in 1960. Section 1109 had a n amendment adopted on
November 4, 1997. However, Section 1111 has not been updated since the original
Charter adoption in 1960. During this time however, many technological enhancements
have been made, procurement processes have been developed that are now best
practices throughout the state and nation, and the costs of projects have increased
greatly.
ANALYSIS
In brief, the changes being proposed are:
1) Increasing the formal bidding threshold for public projects from $35,000 to be
consistent with the California Public Contract Code.
2) Adding best value contracting as a procurement option.
3) Adding design-build contracting as a procurement option.
4) Modernizing the public noticing/bid solicitation rules in the Charter.
Attached to this staff report is the proposed resolution, which has the proposed Charter
amendment language as its Exhibit A.
The staff proposed ballot measure changes are discussed below. The following
proposed changes relate to what is called Public Works Contracts by the Public
Contract Code, but in the Charter has the specific term “public projects” for Section
1109, which means “…the construction or improvement of public buildings, works,
drains, sewers, utilities, parks and streets (exclusive of projects for maintenance and
repair of streets).”
Increasing the formal bidding threshold for public projects from $35,000 to be
consistent with the California Public Contract Code
This section was amended from the 1960 charter to establish the cap before projects
must be administered through formal bid at $35,000. The Charter originally referenced a
section of the Government Code that at the time established a lower amount for public
projects. That Government Code section no longer exists.
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As time has passed and costs for capital projects have continued to increase
significantly from year-to-year, the $35,000 cap for formal bidding is no longer
appropriate. The California Public Contract Code allows cities to informally bid public
projects that cost up to $200,000, with anything more than $200,000 requiring formal
bidding procedures. The Charter amendment is intended to attain consistency with that
allowed threshold for informal bidding.
The formal bidding process for public projects requires significant documentation and
staff involvement across departments, including but not limited to: Public Works,
Finance, City Attorney, Communications and Engagement, and others depending upon
the specific nature of the public project being bid.
Procuring public works contracts for projects costing less than the threshold required for
formal bidding can be accomplished by a streamlined informal bidding process, similar
to other goods and services. Informal processes do not require the additional procedural
steps of procurement involved in the formal bidding process, and can be modified by
adopted policy of Council. For public projects under the "formal bidding" threshold, the
City Code and adopted policies govern the procurement, so while the process does
allow for informal bids, there are still appropriate checks and balances in place to
ensure that competitive bids are received and that contractors follow important City
policies.
Projects that cost $35,000 or less 25 years ago (such as replacing playground
equipment in a neighborhood park, rehabilitating a small sanitary sewer, or building a
small section of sidewalk) now cost significantly more to build. Increasing the
procurement threshold in the City Charter would allow for increased efficiency, cost
savings, and local/small business participation in the City’s public projects. The
increased local/small business participation would be possible given the simpler
requirements for contractors to bid on smaller cost public works projects. By using the
Public Contract Code, the amount for informal bidding will be reviewed and potentially
adjusted every five years to account for cost increases.
It is not the City's intent to use this increase to break larger projects up into smaller
projects for the sole reason of getting them under this threshold as this would negate
the time and cost savings achieved by using a more expedited bidding process and
would also be prohibited under the City Charter. Additionally, City staff is prohibited from
breaking larger projects into smaller ones to avoid the formal bidding process under the
current purchasing policy.
Adding Best Value Contracting (BVC) as a procurement option
The current formal bidding process involves selecting a public project contractor based
exclusively on the lowest price. Unlike that process, BVC involves selecting a contractor
on the basis of objective criteria to determine the best combination of price and
qualifications. Allowing this as a procurement option for major public works contracts on
complicated projects would provide staff with a valuable "tool in the toolbox."
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The BVC procurement process is similar to the City's traditional formal bidding process
for major public works contracts. Bids are solicited in substantially the same manner,
and contractors submit to the City sealed bids with a price proposal - just as they do
under the current process.
The difference is that bidders also submit experience and qualifications information to
the City. The experience and qualifications information is evaluated by a panel, and the
panel gives each bidder a "qualifications score" based on objective criteria. Importantly,
the pricing information remains sealed until the panel completes its evaluation and
scoring of the bidders. This ensures the panel's evaluations are not influenced by the
pricing information.
Ultimately, the BVC procurement process involves the application of a formula in which
the pricing information and qualifications score are used to select the cont ractor that will
provide the best combination of price and qualifications.
On projects such as street repaving where the conditions are well known and there are
several qualified contractors competing for work, the BVC process likely would not be
necessary. However, on projects such as rehabilitating the storm water conveyance
system (where contractors frequently must adapt in the field to new unknown
conditions), having a selection process that looks at contractor experience,
performance, and compliance would help ensure the overall performance of the project.
While this procurement process does take more time at the front -end than the traditional
"low bid" process, when used appropriately, it is intended to save time on a project as it
would increase the likelihood that on complicated projects the contractor most equipped
to deliver the project is selected.
Adding Design-Build contracting as a procurement option
The current standard bidding process requires separate contracts for different elements
of the project. In the development of a public project, the City would have to contract
with a designer to design engineered drawings and plans of a project. Once the design
is complete, the City then has to competitively bid for a contractor to conduct the
construction. The additional bid time can add three to six months, possibly more, to the
timeframe to complete construction. Additionally, as the project is constructed, there can
be conflicts between the designer and the contractor regarding construction and de sign,
which can lead to administrative and operational challenges in completing the project,
which can drive up costs and delay the project.
Design-Build is a form of contracting where the City would only have to bid a project
with a contractor, which would form a team including a designer, and manage all
subcontractors for design and construction. This potentially can save money and
significant time on a project. A Design-Build contract may not be useful in all projects
but having the option for the right projects can be essential to delivering a timely and
cost-efficient project. The proposed amendment language would allow for Design-Build
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contracting for public projects that cost $1 million or more and follow the California
Public Contract Code for Design-Build competitive bidding.
Modernizing the public noticing/bid solicitation rules in the Charter
Since 1960, major technological advances have shaped the manner in which
governments and private enterprises conduct their business, including processes that
are more transparent, efficient, and allow for larger broadcasting of bid opportunity
advertisements. This includes the use of the internet, web portals, and electronic mail
and distribution systems, none of which were available in 1960 when this Charter
section was created.
The Charter's public projects contract procurement requirements include other
provisions that need to be updated and modernized. One such provision is the
requirement that bids be published in a "newspaper of general circulation in the City."
Given the advent of technology to notify bidders, removing the requirement to advertise
in a newspaper would create efficiencies in the process and allow additional time to be
spent on more successful avenues to generate bid interest, as well as sav ing money
currently spent on such advertisements.
The proposed language does not remove a newspaper of general circulation from being
used but removes its use as a requirement for every formal bid. The language revision
in Section 1109 adds electronic publication, publication in a trade journal, and use of a
list of qualified contractors as additional options that may be used in -lieu of, or in
addition to, a newspaper of general circulation.
Further, Section 1111 removes the daily requirement of a newspape r of general
circulation, since no newspapers serving Gilroy publish every day of the week. It also
removes the specific procurement process and replaces it with a reference to the City’s
purchasing policy, which contains Council-approved provisions for procurement of
services, and has greater responsiveness to updates with best practices, rather than a
Charter amendment. As part of this change, the proposed ballot measure also amends
Section 1503(h), the definition of “Newspaper of general circulation with in the City”, to
be consistent with the changes made in Section 1111, but in the general provisions
section of the Charter. The change modifies the definition to maintain the definition held
by the California Government Code.
DISCUSSION OF RECOMMENDATIONS
Should Council determine to proceed with the proposed ballot measure, there are a few
decisions that Council will need to make that would be incorporated into the resolution,
and are so identified in the attached draft resolution. These include:
1. Preparation of an impartial analysis
As part of the California Elections Code, Section 9280, the City Council may
direct the City Clerk to transmit a copy of the measure to the City Attorney for the
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purposes of preparing an impartial analysis. If directed, this impa rtial analysis
would be included in the Voters Sample Ballot that is sent to registered voters in
the general election. The impartial analysis of the measure would discuss the
effect of the measure on the existing law and the operation of the measure. Any
such impartial analysis must include a statement indicating that the measure was
placed on the ballot by the governing body of the City since it would be initiated
by the City.
2. Argument in favor of the ballot measure
As part of the California Elections Code, Section 9282, the City Council may
authorize any member(s) of the City Council to submit an argument in favor of
the City’s ballot measure for inclusion in the Voters Sample Ballot. The argument
would be capped at 300 words in length.
3. Rebuttal arguments
As part of the California Elections Code, Section 9285, the City Council may
authorize the City Council or any member(s) of the City Council to submit a
rebuttal argument in favor of the City measure for inclusion in the Voters Sample
Ballot. Any arguments filed against the measure would be transmitted to the City,
and the authorized Council or member(s) of Council for rebutting the argument
shall have up to 250 words in rebuttal that would be published.
ALTERNATIVES
Council may amend or reject the resolution calling for the municipal election and the
proposed ballot language. This is not recommended.
FISCAL IMPACT/FUNDING SOURCE
For the November 2022 ballot, the costs of the election are partially defrayed from the
existing ballots for the general election at the same time. The cost for adding this ballot
measure to the November ballot is estimated to be $30,000. If the special municipal
election is not consolidated, the cost would be greater. The final amount will be known
once the ballots are produced, and the specific number of registered voters for this
upcoming election in Gilroy are known. The funding would come from the City’s General
Fund. If approved, a budget amendment to authorize the costs will be included in the
upcoming mid-cycle budget adjustments packet.
CONCLUSION
The Charter’s sections relating to public works projects is outdated. Current best
practices, technological advances, and construction costs necessitate updating the
Charter to deliver infrastructure assets to the community in a t imely, cost-effective,
transparent and efficient procurement process. These changes are not unique to the
City, and are practices currently performed by other cities in California.
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NEXT STEPS
If the City Council approves this item, staff will place the approved language on the
November 8, 2022 general election ballot. Additional steps, including the City Attorney’s
impartial analysis and the City’s arguments for the ballot measure, would then be
undertaken shortly after Council approval of any ballot measure.
PUBLIC OUTREACH
No public outreach has been conducted for this item aside from the publicly posted
agenda. There are limitations on what the City can do as it relates to public outreach for
the ballot measure, if approved. The results of this Council meeting will be shared in the
City’s e-newsletter. Any other public outreach regarding the potential ballot measure will
be conducted in accordance with legal requirements and restrictions going forward, if
approved.
Attachments:
1. DRAFT Resolution - Charter Amendment (2022)
2. DRAFT Resolution - Charter Amendment (2022) - Exhibit A
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RESOLUTION NO. 2022-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF GILROY CALLING AND GIVING NOTICE OF, ON ITS
OWN MOTION, THE SUBMISSION TO THE ELECTORS
OF THE CITY OF GILROY AT A SPECIAL MUNICIPAL
ELECTION, TO BE CONSOLIDATED WITH THE
STATEWIDE GENERAL ELECTION ON NOVEMBER 8,
2022, A BALLOT MEASURE PROPOSAL TO AMEND
SECTIONS 1109 AND 1111 OF THE CITY OF GILROY CITY
CHARTER TO MODIFY CONSTRUCTION CONTRACT
PROCUREMENT AND THE BIDDING PROCESS
WHEREAS, a General election on Tuesday, November 8, 2022, has been called by
Resolution No. 2022-25, adopted on Monday, May 16, 2022, and
WHEREAS, pursuant to authority provided by the California Constitution, Article XI and
the Government Code, Title 4, Division 2, Chapter 2 (commencing at Section 34450) and the
Election Code Division 9, Chapter 3, Article 3 (commencing at Section 9255) of the State of
California, the City Council of the City of Gilroy desires to submit to the voters a proposed charter
amendment relating to construction contract procurement and the bidding process, and to place the
measure on the ballot for the next General Election on November 8, 2022; and
WHEREAS, the City Council is authorized and directed by statute to submit the proposed
charter amendment to the voters.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Gilroy
that:
Section 1. A Special Municipal Election is hereby called and ordered to be held in the City
of Gilroy on November 8, 2022 to vote on a ballot measure to amend Sections 1109 and 1111 of
Article XI of the Gilroy City Charter to modify construction contract procurement and the bidding
process, which shall be deemed ratified, pursuant to Government Code Section 34459, if a majority
of the electors voting on the measure vote to approve the measure. The full text of the proposed
City Charter amendment is attached as Exhibit A and incorporated by reference in this Resolution.
Section 2. The ballot measure will be placed on the ballot for the November 8, 2022
election which shall be substantially in the following form:
MEASURE_______
Construction Contract Procurement and Public Noticing Modernization
Shall the City of Gilroy Charter be amended to:
• Modify the bidding threshold from $35,000 to the
amount authorized by California Public Contract Code
Section 22032;
• Establish authority to procure for Design-Build and
Best Value contracts;
• Allow modernization of public noticing?
YES
NO
11.1.a
Packet Pg. 154 Attachment: DRAFT Resolution - Charter Amendment (2022) (3821 : Charter Amendment 2022)
Resolution No. 2022-XX
Charter Amendment
City Council Regular Meeting | June 20, 2022
Page 2 of 3
Section 3. That the vote requirement for the measure to pass is a majority (50% +1) of the
votes cast.
Section 4. The City Council hereby requests the Board of Supervisors of the County of
Santa Clara, California to permit the Registrar of Voters of Santa Clara County to render to the
City of Gilroy such services as the City Clerk of the City of Gilroy may request relating to the
conduct of the above-described Special Municipal Election with respect to the following matters:
Coordination of election precincts, polling places, voting booths, voting systems
and election officers; printing and mailing of voter pamphlets; preparation of the
tabulation of the results of votes cast and all other services necessary to conduct an
election.
Section 5. The City Council hereby requests, consents to, and orders that the Registrar of
Voters of the County of Santa Clara consolidate the Special Municipal Election called and ordered
to be held on November 8, 2022 with any other election that may be held on that date.
Section 6. The City Council hereby authorized the Board of Supervisors of Santa Clara
County, California to canvass the returns of the Special Municipal Election.
Section 7. The City Council hereby directs the City Clerk to reimburse the County of Santa
Clara in full for any of the above-mentioned services which may be performed by the Registrar of
Voters, upon presentation of a bill to the City, with funds already appropriated to the City Clerk
for election purposes.
Section 8. The City Council hereby directs the City Clerk to take all actions necessary to
facilitate the Special Municipal Election in the time frame specified herein and comply with
provisions of the Elections Code of the State of California, City Charter, Ordinances, Resolutions
and Policies regarding the conduct of the Special Municipal Election.
Section 9. Pursuant to Section 12111 of the California Elections Code, the City Council
hereby directs the City Clerk to: (a) cause a synopsis of the proposed measure to be published at
least one time not later than one week before the election in the Gilroy Dispatch, a newspaper of
general circulation within the City of Gilroy; (b) consolidate the Notice of Measure to be Voted
with the Notice of Election into a single notice; (c) cause copies of the full text of the proposed
measure set forth in the attached Exhibit A to be printed in the Voter Information Portion of the
Sample Ballot; (d) cause copies of the Sample Ballot to be mailed to each of the qualified electors
of the City of Gilroy; and (e) do all other things required by law to submit the specified measure
above to the electors of the City of Gilroy at the Special Municipal Election, including causing the
full text of the proposed measure to be made available in the Office of the City Clerk at no cost
and posted on the City Clerk's website.
11.1.a
Packet Pg. 155 Attachment: DRAFT Resolution - Charter Amendment (2022) (3821 : Charter Amendment 2022)
Resolution No. 2022-XX
Charter Amendment
City Council Regular Meeting | June 20, 2022
Page 3 of 3
Section 10. Pursuant to Sections 9282 and 9285 of the California Elections Code, the City
Council hereby approves the submittal of direct arguments for and against the ballot measure, if
any, [and authorizes the City Council or any member or members of the Council to author and
submit a ballot measure argument in favor of the ballot measure] [but determines that rebuttal
arguments will not be allowed] OR [and approves the submittal of rebuttal arguments in response
to arguments for and against the ballot measure and authorizes the City Council or any member or
members of the City Council to author and submit a rebuttal, if any.]
Section 11. The City Council hereby directs the City Clerk to transmit a copy of the
measure qualifying for placement on the ballot to the City Attorney for preparation of an impartial
analysis.
Section 12. The City Council hereby acknowledges that the consolidated election will be
held and conducted in the manner prescribed in California Elections Code Section 10418.
Section 13. This resolution shall take effect immediately upon adoption.
PASSED AND ADOPTED this 20th day of June, 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.a
Packet Pg. 156 Attachment: DRAFT Resolution - Charter Amendment (2022) (3821 : Charter Amendment 2022)
EXHIBIT A TO RESOLUTION NO. 2022-XX
4890-7867-2418v1
NON-BC\04706083
That the citizens of the City of Gilroy do hereby enact the following amendment to the
City Charter:
1. That Section 1109 of the City Charter be amended to read as follows:
Section 1109. Contracts for Public Projects.
Every public project involving an expenditure of City monies of more than Thirty-Five
Thousand Dollars ($35,000) greater than the amount allowed for informal bidding
pursuant to Section 22032 of the California Public Contract Code, or successor statute,
as the same may be amended from time to time, for the construction or improvement of
public buildings, works, drains, sewers, utilities, parks and streets (exclusive of projects
for maintenance and repair of streets) shall be let by contract to the lowest responsive
and responsible bidder, or through best value contracting, after notice by one or more of
the following methods:
A. pPublication in athe official newspaper of general circulation in the City by one or
more insertions, the first of which shall be at least seven (7) days before the time
for opening bids;
B. Publication electronically so that the notice is publicly available to the general
community of potential bidders;
C. Publication in a trade journal specified by the Uniform Cost Accounting Act
Commission by one or more insertions, the first of which shall be at least seven
(7) days before the time for opening bids; or
A.D. By using a list of qualified contractors, which includes responsible
contractors who have bid in the past and qualified contractors who ask to be
included on the list..
The Council may reject any and all bids, if deemed excessive or unsatisfactory and
readvertise for bids, or provide for the work to be procured in the open market, but in no
case of open market procurements shall the price paid be higher than the responsible
low bid rejected.
The Council, without advertising for bids, following the adoption of a resolution declaring
that the project can be performed more economically by day labor, or the materials or
supplies furnished at a lower price in the open market, may have the project done in the
manner stated without further complying with the provisions of this section.
For contracts equal to or in excess of One Million Dollars ($1,000,000) the Council may
negotiate and award a Design-Build Contract without formal public bidding if the Council
finds that such a contract would save money or result in faster project completion. The
process for competitively selecting a design-build contractor shall be consistent with the
California Public Contract Code.
2. That Section 1111 of the City Charter be amended to read as follows:
11.1.b
Packet Pg. 157 Attachment: DRAFT Resolution - Charter Amendment (2022) - Exhibit A (3821 : Charter Amendment 2022)
EXHIBIT A TO RESOLUTION NO. 2022-XX
4890-7867-2418v1
NON-BC\04706083
Section 1111. Contracts for Official Advertising.
The Cityouncil shall procure services contract annually for the official advertising in a
newspaper of general circulation in of the City in accordance with the California
Government Code and the City’s purchasing policyfor the ensuing fiscal year. In the
event there is more than one daily newspaper of general circulation in the City, the
Council shall advertise for sealed bids for the work. The advertisement shall set forth
distinctly and specifically the work contemplated to be done. The Council shall let the
contract for such official advertising to the lowest responsible bidder publishing a daily
newspaper of general circulation in the City which has been in existence at least one
year at the time of awarding the contract; provided, however, that the Council may reject
any and all bids and re-advertise in its discretion.
3. That Section 1503(h) of the City Charter be amended to read as follows:
(h) “Newspaper of general circulation within the City” is as defined by the Government
Code of the State of California.
11.1.b
Packet Pg. 158 Attachment: DRAFT Resolution - Charter Amendment (2022) - Exhibit A (3821 : Charter Amendment 2022)
City of Gilroy
STAFF REPORT
Agenda Item Title: Approval of Third Extension to the Exclusive Negotiating
Agreement with Sharks Sports & Entertainment, LLC to Fully
Assess the Potential of Having the Sharks Organization
Operate a New Indoor Recreational Facility
Meeting Date: June 20, 2022
From: Jimmy Forbis, City Administrator
Department: Administration
Submitted By: Adam Henig, Recreation Manager
Prepared By: Jimmy Forbis, City Administrator
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 Third Amendment to Exclusive Negotiating Rights Agreement with the
Sharks Sports & Entertainment, LLC, and authorize the City Administrator to execute
the Amendment
DISCUSSION
The City of Gilroy has an opportunity to continue its exclusivity agreement with a private
firm, Sharks Sports & Entertainment, LLC (“SSE”). At this time, before the City can
continue in business discussions, it is necessary to extend the exclusivity period.
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Exclusivity is the condition in which each party grants the other party sole rights
regarding a particular business function or product sale and/or purchase. Put another
way, exclusivity is an arrangement between two parties wherein neither will explore
entering a similar deal with other parties for a certain period.
The original ENA with SSE is dated as of May 6, 2019 and Council has twice approved
extensions of the ENA, which currently will expire on July 1, 2022 . Approval of
extending the exclusivity agreement (six additional months) would give both parties the
opportunity to conduct additional due diligence. During this time staff would continue to
take a close look at the details of the proposal and determine if it is advantageous for
the community, or not, and how best to proceed.
Both the City and SSE have already allocated resources towards a potential facility
agreement. Further talks would enable the City and SSE to finalize a potential project,
identify financing and determine the ongoing operational relationship. The final
agreement would be presented to Council for consideration of app roval.
While project details are still under discussion, the facility would likely include
opportunities for a variety of sporting programs and events to include ice hockey and
would be located off Monterey Road, as part of the Gilroy Sports Park. The project
would provide recreational opportunities for all Gilroy residents and those travelling to
Gilroy for tournaments, competitions, and other events.
Having the proposed facility operated by a national brand with a proven track record of
operating recreational ice facilities would be a great opportunity for economic
development and has the potential to heighten our position in the region as a
destination location and increase travel and tourism to Gilroy. The development of the
Gilroy Sports Center is consistent with the Council goals related to making Gilroy a
Recreation Destination.
Discussions during this preliminary period are non -binding and provide the opportunity
to fully assess the potential of the proposed facility in Gilroy.
ALTERNATIVES
Do not approve the Third Amendment to the ENA. This is not recommended because it
would necessarily stop any further business discussions.
FISCAL IMPACT/FUNDING SOURCE
No fiscal impacts are expected from the extension of the exclusivity period. Any
recommendations for future Council actions that necessitate expenditures will be
discussed as part of those staff reports.
NEXT STEPS
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If approved, the City will continue to work with the SSE on the development of a
financing plan and other documentation for the development of the project, all of which
would ultimately be submitted to the City Council for consideration.
PUBLIC OUTREACH
If terms are reached, during project design work the City will conduct public outreach
sessions to gain public input.
Attachments:
1. Third Amendment to ENA Between Gilroy and SSE
2. Public Comment - Beauchamp, Marc
3. Public Comment - Squatritto, Lorrin
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11.2.a
Packet Pg. 162 Attachment: Third Amendment to ENA Between Gilroy and SSE (3842 : Sharks Exclusivity Agreement)
11.2.a
Packet Pg. 163 Attachment: Third Amendment to ENA Between Gilroy and SSE (3842 : Sharks Exclusivity Agreement)
From:Marc Beauchamp
To:City Clerk
Subject:EXTERNAL - Gilroy City Council Meeting 06/20/2022 agenda item 11.2 and 11.3 regarding Sharks Ice
Date:Wednesday, June 15, 2022 2:36:37 PM
CAUTION: This email originated from an External Source. Please use proper judgment and caution when opening
attachments, clicking links, or responding to this email.
City Clerk, Council City Members and Mayor:
I am writing to encourage the city to approve the non-binding term
sheet to bring a Shark's Ice to Gilroy. I have been a Gilroy resident
for 10 years. I'm originally from Canada and have played hockey most
of my life. I have played in the Shark's Ice adult league in San Jose
from 2000 to 2020. I would definitely take on the sport again if a
facility in Gilroy was opened. I'm also father to 2 teenage boys who
have always wanted to play hockey. The distance to the facility in
San Jose has been a deterrent to joining the sport. Having this in
our city would absolutely make that dream possible for them.
Respectfully,
Marc Beauchamp
11.2.b
Packet Pg. 164 Attachment: Public Comment - Beauchamp, Marc (3842 : Sharks Exclusivity Agreement)
From:Lorrin Squatritto
To:City Clerk
Subject:EXTERNAL - Comment for June 20th Meeting re: potential ice rink
Date:Thursday, June 16, 2022 9:05:31 AM
CAUTION: This email originated from an External Source. Please use proper judgment and caution when opening
attachments, clicking links, or responding to this email.
Dear Council Members,
I am ecstatic to see that the city is working hard to make the ice rink at the Gilroy Sports Park a reality. My family
and I have longed for opportunities such as skating and ice hockey close to home for a long time now.
It also pleases me that the city is being mindful of the financial risks associated with such a large project. However,
the level of risk aversion shown thus far has me concerned that the city is limiting our opportunity for a world-class
facility. As it is currently outlined, does the plan for facility allow for future expansion of the facility and what it
offers, should the ice rinks prove very popular and city budgets allow? In addition to wanting a high quality indoor
pool, it would be great to have other indoor recreation facilities that accommodate things like soccer, futsal, or even
an American Ninja Warrior style gym. Such a facility would not only add incredible value to our community for
local families, but it would be able to draw groups for tournaments that would help support local hotels and
restaurants. When considering the financial impacts of this project, please make sure you are not limiting important
possibilities for the community at large. Thank you.
Sincerely,
Lorrin Squatritto
Sent from my iPhone
11.2.c
Packet Pg. 165 Attachment: Public Comment - Squatritto, Lorrin (3842 : Sharks Exclusivity Agreement)
City of Gilroy
STAFF REPORT
Agenda Item Title: Gilroy Ice Center Non-Binding Term Sheet Approval
Meeting Date: June 20, 2022
From: Jimmy Forbis, City Administrator
Department: Administration
Submitted By: Jimmy Forbis, City Administrator
Prepared By: Jimmy Forbis, City Administrator
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 a non-binding term sheet with Sharks Sports & Entertainment, LLC (SSE) for
the development of a two sheet ice facility at the Gilroy Sports Park.
EXECUTIVE SUMMARY
After nearly three years of discussion the City of Gilroy (“City”) and Sharks Sports &
Entertainment, LLC (SSE) have reached a mutual agreement for the framework to
negotiate an operating agreement for the Gilroy Ice Center. Council is requested to
approve the Term Sheet, which is a non-binding document that describes basic agreed
upon deal points that could be included in the final operating agreement.
POLICY DISCUSSION
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Should the City and SSE agree to the non -binding term sheet for the development of
the Gilroy Ice Center?
BACKGROUND
The City and SSE entered into the first exclusivity agreement on May 6, 2019, to expire
in May of 2020. This was a requirement to proceed with business discussions and for
each party to conduct their due diligence concerning the Gilroy Ice Center.
The intent was to reach deal-points of a viable framework to proceed towards an
agreement. At the November 4, 2019 Council meeting, Council adopted a budget
amendment of $1.842 million for the planning and environmental analysis of Gilroy
Sports Park Phase 3, with the majority of funding for an agriculture easement for
agriculture impact mitigation of future development of Phase 3 at the Gilroy Sports Park,
including the potential ice rink facility with SSE. That agriculture easement was
approved on January 6, 2020, with the easement ultimately emplaced at the Van Dyke
Ranch on Crews Road near Gilroy.
The City Council created on February 3, 2020, the Economic Development Ad Hoc
Committee – Sharks Sports and Entertainment. This Ad Hoc Committee discuss ed the
conceptual facility to potentially include opportunities for a variety of sporting programs
and events to include ice hockey and would be located off Monterey Road, as part of
the Gilroy Sports Park. The purpose of the Ad Hoc Committee was to enable Council
Members to participate in an official capacity in preliminary negotiations with SSE with
the Committee terminating with the culmination of the one-year exclusivity period.
At the Planning Commission Meeting of May 21, 2020, the Commission held a public
hearing for the amendment of the Environmental Impact Report (EIR) for Gilroy Sports
Park Phase III, and recommended adoption to the City Council. The recommended
amendment to the EIR was approved by the City Council on June 15, 2020, at its
regular meeting.
In the intervening time since the initial exclusivity period, the City and SSE have
continued to negotiate in good faith. The Council has approved two prior extensions of
the negotiating period, with the latest extension expiring on July 1, 2022. An extension
request to the exclusivity period/agreement is also being considered at the June 20,
2022, City Council meeting.
The development of the Gilroy Ice Center has been identified as one of the three
recreational economic development initiatives for the City and the Gilroy Economic
Development Partnership.
ANALYSIS
The City and SSE have worked diligently over the last few years to develop a non-
binding term sheet that allows both entities to continue efforts to bring an ice facility to
the Gilroy Sports Park. The term sheet (attachment) serves as a basis for more
11.3
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detailed, legally binding documents. As the City and SSE have reach ed an agreement
on the framework of a potential deal in the term sheet, normally a binding agreement
would be drawn up, incorporating any changes in the term sheet in the final
negotiations. However, efforts towards that final agreement will be paused due to two
significant milestones that must be achieved beforehand: consideration by the City
Council to place on the November 2022 General Election Ballot a measure that would
permit “design-build” projects and the completion of the Surplus Lands Act (SLA)
process with the California Housing and Community Development Department (HCD).
Design-Build
The current standard bidding process requires separate contracts for different elements
of the project. This is considered an antiquate approach and typical of charters of that
era (1940s). In the development of a public works project over $35,000 in costs, the
City would have to procure a designer to design engineered drawings and plans of a
project. Once the design is complete, the City then must competitively bid for a
contractor to conduct the construction. The additional bid time can add three to six
months, possibly more, to the timeframe to complete construction. Additionally, as the
project is constructed, there can be conflicts between the designer and the contractor
regarding construction and design, which can lead to administrative and operational
challenges in completing the project, which can drive up costs and delay the project.
Design-Build is a form of contract where the City would only have to bid a project with a
contractor, which would form a team including a designer, and manage all
subcontractors for design and construction. This technique is used extensively in the
private sector and is now allowed by State law in the public sector. Other cities
including San Jose and Santa Cruz with similar provisions have amended their charters
to include design-build.
Design-build could potentially save money and significant time on a project. A Design -
Build contract may not be useful in all projects but having the option for the right
projects can be essential to delivering a timely and cost -efficient project. In a separate
Council action, City staff is proposing charter amendment language that would allow for
Design-Build contracting for public projects that cost $1 million or more and follow the
California Public Contract Code for Design-Build competitive bidding.
Surplus Lands Act
The State Surplus Land Act (Government Code Section 54220 et seq) applies generally
to any “disposition” of city-owned property. It has various exceptions, but generally
requires a city to notify housing developers and public agencies that may be int erested
in open-space uses of the land prior to any disposition of city-owned property – this is
the process that the City completed for the Hecker Pass Tourism Gateway (also known
as the land adjacent to Gilroy Gardens).
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The recipients of the notice of surplus land declaration have 60 days to indicate their
interest in the property; if legitimate responses are received, then the city must
negotiate with them (but is not required to reach a deal) in a 90-day period.
The enforcement agency is State HCD, and they have recently been given expanded
powers to interpret and enforce the SLA. The penalty for a first violation is a fine equal
to 30% of the price received for the land. HCD's interpretations of the scope of the SLA
tend to be very expansive as they have determined that a property lease of more than
five years is a "disposition" under the SLA. This determination is relevant to the Term
Sheet as it outlines a potential operating agreement of more than five years.
As the Term Sheet outlines, the project is to receive funding through a bond issuance
and in order to sell bonds, it will be necessary to conclude that compliance with the SLA
has been met. To date, the City and SSE have been proceeding on the basis that the
parties would be under an exemption that applies to Exclusive Negotiating Agreements
entered prior to Sept. 30, 2019. However, to use this exemption, the disposition must
occur by Dec. 31, 2022.
In order to shorten project timeline and save on costs, both the City and SSE are
considering the advantages of using a Design-Build process for the ice facility, a
process that would require a Gilroy City Charter amendment which, pending City
Council approval, could potentially go on the Nov. 8, 2022 ballot.
As the results of the ballot measure would not be known until November 2022 and the
results of the election not certified until December 2022 , it is not realistic to expect that
the final agreement would be in place prior to the Dec. 31, 2022 cutoff date . SSE has
requested instead that the City go through the full SLA process outlined above, to
ensure that there will not be an issue of SLA compliance.
The process would require that the City and SSE pause any further discussions
concerning the development of the ice facility and that the Cou ncil declare the land
surplus on July 5, 2022, then start the notification process (during which the City would
suspend any negotiations with the Sharks). The City would likely know by mid-
September whether any qualifying responses to the surplus declaration are received.
Due Diligence
Over the course of exploring the viability of the Gilroy Ice Center, both the City and SSE
utilized the expertise of outside consultants to evaluate the financial viability, analyze
risk, and identify potential challenges for such a large project.
Initially, the City and SSE discussed the potential of the project including additional
amenities such as an indoor pool and recreational facility, however the analysis did not
support such facilities for several reasons. The primary reason being the location of the
facility.
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Furthermore, operation of such facilities is not within the core function of SSE and thus
SSE and City staff agreed that in order to increase the opportunity for success, efforts
and resources should be focused on an ice facility.
The Term Sheet is not binding, and the City is under no legal obligation to eventually
enter into an operating agreement with SSE. The Term Sheet is an informal method to
establish basic parameters of the final agreement as the Gilroy version of this
transaction is similar to one entered between the City of San Jose and SSE
(Solar4America Ice Rink).
The City utilized a team of outside economic analyst s, the City’s independent financial
advisor, and bond counsel to help the City through the due diligence process and make
sure that any recommendations were/are based on solid information that minimizes the
risk to the City while providing a unique recreational opportunity for the Gilroy
community.
Financially, SSE is inheriting the risk as they are responsible for debt service payments
on behalf of the City and have conducted their own market analysis to determine if
revenues from the facility will be adequate to support the debt service. SSE is also
being required to provide a letter of credit as insurance for two-years’ worth of debt
service payments.
In any transaction, there are no absolute guarantees, but given the provisions in the
term-sheet, the past performance of SSE in other locations and the reputation of the
entire SSE organization, City staff has found what it believes is a good financial partner
with a history of being a good community servant.
As part of the due diligence, City staff also worked with a City Council Ad Hoc
Committee and visited a similar facility in Southern California. Staff has checked
references and discussed this opportunity with other ice facility operators all of which
spoke positively of their relationship with SSE.
Non-Binding Term Sheet
The Term Sheet includes 25 different provisions for development of an Operating
Agreement for the Gilroy Ice Center. Below is a summary of each provision, however
greater detail is provided in the attached draft Term Sheet.
1. Description of Project and Facility
• Gilroy Sports Park (5925 Monterey Frontage Road)
• Two NHL-sized ice rinks
• 387 parking spaces
2. Scope of Term Sheet
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• Addresses the construction of the proposed Project and SSEs long term
operation of the facility
3. Owner – the City of Gilroy
4. Operator – Sharks Sports and Entertainment LLC
5. Construction Financing Plan (in greater detail in the Financial Impact section)
• Developed at City expense through taxable municipal revenue bonds
• City fully reimbursed through payments from SSE
• “Project” cost not to exceed $30 million
• Finance Costs description
• Support Services description which includes the City’s obligation to
fund/finance fees, permits, public improvements required by the mitigation
monitoring report costs (MMRP), survey work, habit conservation plan
fees, off-site utility main lines and installation of two traffic signals which is
expected to cost approximately $4 million, funded with accumulated
impact fees, not the General Fund
6. Design Build Charter Amendment, Selection of Architect/Contractor,
Consulting/Operating Agreements
• City may determine to proceed with Charter amendment
• SSE Consulting fee of $270,000 for design and operational matters
• $225,000 Design fees split between City/SSE. City/SSE reimbursed if
project is constructed. If project is not constructed City reimburses SSE
for their portion - not through the General Fund.
7. Term of agreement equal to the bond repayment period (30-35 years)
8. Annual Base Payments
• SSE makes base payments equal to debt service on the bonds
• SSE pays City “spread” of 50 basis points over the interest rate on the
principal balance to offset financing-related expenses
• Additional payments are made to Capital Reserve Account
9. Operating Revenues - SSE is entitled to all revenues generated by the facility
• Operating Expenses – SSE is responsible for costs associated with the
orderly operation of the facility
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10. Permitted use – SSE has the right to operate the facility as an ice rink with
ancillary uses
11. Programming/Use of Facility
12. Ordinary Maintenance and Repairs are the responsibility of SSE
13. Capital Repairs/Replacements/Enhancements are the responsibility of SSE
14. Extraordinary Repair Work – responsibility of the City to include structural
elements of the building (disbursed through the Capital Reserve Account)
15. Employee Requirements – SSE required to comply with all applicable City
ordinances
16. Community Benefit – SSE to schedule programs at appropriate/convenient times
for the public including free general admission for up to 5,000 at -risk youth
annually
17. Fee Schedule – commensurate with fees at other SSE locations
18. Building Naming Rights – SSE may sell naming rights but must include “Gilroy” in
in the name
19. Expansion Potential – SSE seeks the potential to expand the facility with two
additional ice rinks. City to notify SSE if land is to be utilized for other purposes.
20. Letter of Credit – SSE to provide a two-year letter of credit (approximately $4
million) as security for the debt service. Letter may eventually be returned should
debt service coverage provisions be met.
21. Transfer/Assignment of agreement to another party requires City approval
22. Parking
• 387 cost-free parking spaces
• SSE permitted to charge for parking (with City approval) for scheduled
tournaments and special events
23. Property Insurance – City responsible for property insurance, approximately
$40,000 annually
24. Waiver of Subrogation – SSE responsible for insurance for operations; both
parties release the other party to recover damages for certain provisions
25. Damage and Destruction – provisions should the Ice Center become damaged or
destroyed
As previously stated, the City and SSE are not entering a legally binding agreement,
however the general parameters of the final negotiated operating agreement are
expected to encompass those listed above. Some modifications will be required, and
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the City Council will have final approval of all terms and con ditions of the agreement. It
is not until that time that the City will make a legal commitment to the project.
ALTERNATIVES
Council could decide to not approve the Term Sheet and thus the project would cease
to be considered. Council could also make adjustments and revisions to the Term
Sheet; however, those amendments would be subject to the approval of SSE.
FISCAL IMPACT/FUNDING SOURCE
At this time, it is anticipated that the facility will cost approximately $25 million to
construct ($31 million with debt interest) which will be funded by revenues generated by
the facility.
The City will contribute off-site improvements which will be funded through the City’s
Public Facilities Impact and Traffic Impact Funds which both have adequate fund
balance to support the approximately $4 million of anticipated improvements needed for
the project.
The City’s General Fund will not be required to provide funding during this project as
improvements required to be constructed by the City will be funded by the impact f unds
mentioned above. All General Fund contributions will be in the form of staff time and
waived permit fees which is typically of projects developed by the City, constructed on
City land, and owned by the City. In total, these costs are expected to amount to
approximately $500,000.
The municipal bonds for the project will be secured by payments from SSE with a two-
year letter of credit equal to two-years of debt service payments utilized as collateral.
As the City will be the owner of the facility, it is issuing municipal bonds for financing the
project and is thus required to provide its own security for the payment, thus the City
would pledge the Gilroy Sports Park as collateral. This practice is similar to other
financing structures like the Gilroy Police station and Corporation Yard that at one time
or another have been used as collateral for the City’s various bond issuances.
It is important to note that under the conditions of the non-binding Term Sheet, the
Sharks would be under a legal obligation to make the debt service payments on behalf
of the City. This arrangement is similar to others that SSE has previously entered into in
their other facilities.
To date, this project has never been described as “economically -driven” as neither City
nor SSE expect make significant financial gains with this project. The funding is
designed for cost-recovery and capital reserves. The City does not expect to receive a
significant direct economic impact; however it can be assumed that indirect econ omic
impact will be gained due to increase hotels stays and other travel -related revenues that
the City is expected to receive.
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For the City, this is an opportunity to provide a recreational facility for not only for the
Gilroy community but also serve as a regional recreational destination. For SSE, this is
an opportunity to also invest in the community and fulfill a core value of their
organization which is to “grow the game.”
CONCLUSION
This is a unique opportunity for the City to enter into an agreement with a national brand
willing to invest their time and expertise into the Community. There are many steps left
in this process, but the approval of the draft Term Sheet would be the first official
declaration of support for the project by the City Council.
NEXT STEPS
Should Council approve the staff recommendation, all negotiations and development
with SSE would pause until the completion of the Surplus Lands Act process and the
successful passage of a potential City Charter amendment to permit a “design-build”
procurement process.
PUBLIC OUTREACH
City staff has previously conducted a Town Hall with residents to discuss th is project.
Should the City and SSE continue negotiations after completion of the SLA process, an
extensive public outreach campaign will be conducted.
Attachments:
1. Non Binding Term Sheet
2. Exhibit A to Term Sheet
3. Ice Center Project Description
4. Public Comment - Beauchamp, Marc
5. Public Comment - Squatritto, Lorrin
6. Public Comment - Welka, Paul
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Page 1 4868-9573-2769v5 ALF\04706215
NON-BINDING TERM SHEET FOR AN
OPERATING AGREEMENT FOR GILROY ICE CENTER
Ver. June 10, 2022
1. Description of
Project and
Facility
The “Project” consists of City’s construction of the following improvements in the Phase III
area of the Gilroy Sports Park located at 5925 Monterey Frontage Road, Gilroy CA 95020:
(a) a building (“Building”)of approximately 100,000 square feet on two levels, containing (i)
two NHL-sized ice rinks and ancillary uses including spectator seating, training rooms and
conditioning area, multi-purpose rooms, offices, and support areas, as well as a restaurant,
snack bar and pro shop (the “Ice Center”)and (ii) all furnishings, trade fixtures, and
equipment located within the Building and necessary for the operation or use of the Ice
Center (“FF&E”), including scoreboards, dasher boards and netting, lighting and sound
equipment, and storage systems for the Ice Center (but excluding any personal property
owned by SSE, including pro shop merchandise and business office furniture and proprietary
software, computer hardware, and telecommunications systems that are interconnected or
integrated with SSE’s operations in other facilities), and (b) a parking area of approximately
387 spaces (“Parking Area”) . The Ice Center, FF&E and Parking Area as constructed or
installed by City are collectively referred to herein as the “Facility”. A description and site
plan of the Facility are attached as Exhibit A hereto.
2. Scope of Term
Sheet
This document (“Term Sheet”) addresses the construction and financing of the proposed
Project and, following completion thereof, SSE’s proposed long term operation of the
Facility, including right to use overflow parking at other adjacent City-owned parking lots.
Approval of this Term Sheet does not constitute a “project” within the meaning of the
California Environmental Quality Act (“CEQA”). Before the Facility can be approved or
permitted for construction, the City as lead agency will undertake appropriate CEQA review,
as well as all other appropriate City processes, the fulfillment of which shall be in the City’s
sole and absolute discretion. The Parties expressly disclaim any duty to reach formal
agreement upon the documents mentioned in Section 6 hereof imposed upon them by
approval of this Term Sheet or by their past or future conduct. The Parties continue to be
bound by the terms of the existing Exclusive Negotiating Rights Agreement between the
parties dated May 6, 2019, as amended.
3. Owner The City of Gilroy, a municipal corporation (“City”)
4. Operator Sharks Sports & Entertainment LLC, a Delaware limited liability company, or its designated
subsidiary (“SSE”)
5. Construction
Financing Plan
The Project would be developed by the City at its expense. City would issue taxable
municipal revenue bonds to finance the costs of the Project (“Project Costs”) and the costs
of issuing the revenue bonds (“Finance Costs”). The Project Costs and the Finance Costs
would be fully reimbursed to the City, with interest, through the Annual Base Payments to be
made by SSE under the Operating Agreement, as described in Section 8 below. In order for
the Project to be economically feasible, the parties have determined that the Project Costs
and the Finance Costs together should not exceed $30.0 Million and that the interest rate on
the revenue bonds should not exceed 6.0%. SSE and City will work together in good faith to
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refine the budgets for the Project Costs and the Finance Costs to the mutual satisfaction of
both parties.
In addition, the City would separately fund and/or provide (through its own workforce) the
following services in support of the Project (the “Support Services”), without reimbursement
via the bond financing or otherwise:
Definitions:
The term “Project Costs” includes the following costs for the design, permitting and
construction/installation of the Ice Center, FF&E, and Parking Area improvements (all
of which are public improvements benefitting the City):
(i) Design, engineering, LEED consulting, and other consulting services,
including the Consulting Fee to be paid to SSE and the Design Fees to be
funded by City and SSE as described in Section 6;
(ii) Compliance with applicable MMRP conditions set forth in the EIR (air
quality control measures for construction activities; LEED Silver building
standards; on-site landscaping within stream setback buffer; and storm
drainage plan);
(iii) Water, sanitary sewer and other utility connection fees;
(iv) Third party special testing and inspection services;
(v) Grading, utility trenching and installation of utility facilities;
(vi) Landscaping and arborist services;
(vii) Project management services;
(viii) Premiums for insurance and bonds required by the Contract Documents;
(ix) Labor, supervision, materials, supplies, hauling, and temporary facilities;
(x) Purchasing and installing furniture, fixtures, and equipment; and
(i) Building and site signage.
The term “Finance Costs” includes all costs related to the underwriting, issuance and
sale of the revenue bonds, including costs for the following items:
(i) Bond Counsel/Disclosure Counsel fees and expenses;
(ii) Municipal advisor fees and expenses;
(iii) Rating agency fees;
(iv) Trustee fees and expenses;
(v) The establishment of a Capitalized Interest Fund;
(vi) The establishment of a Debt Service Reserve Fund, if required; and
(vii) Underwriter’s discount, if applicable.
The term “Support Services” includes all other services and work paid for or
provided by City related to the Project, such as the following:
(i) Planning applications and approvals, including necessary CEQA
clearance;
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(ii) City Charter and Ordinance amendments to allow design-build Project
delivery;
(iii) Habitat Conservation Plan fees, traffic mitigation fees, in-lieu fees, and
other development fees or exactions;
(iv) Preparation and bidding of Construction Contract documents;
(v) Building permit applications and inspections;
(vi) Construction of public improvements required by the MMRP, such as
traffic signals, traffic lanes, and other street improvements;
(vii) Improvements to off-site utility main lines, including any upsizing or
extensions that may be needed;
(viii) Economic feasibility studies; and
(ix) Survey work to establish the boundary lines of the subject parcel and/or
any required utility easements.
6. Design Build
Charter
Amendment;
Selection of
Architect and
Contractor;
Consulting
Services and
Operating
Agreements
In order to utilize a design build project delivery method, City has determined an
amendment of the City Charter will be required. City may determine to prepare and present
to the voters of the City for consideration of approval at the November 2022 election a
proposed ballot measure amending applicable provisions of the City Charter to authorize the
design build project delivery method.
If such a Charter amendment is passed, the Parties may determine to cooperate on using a
design build process for the design, engineering and construction of the Project.
Subject to the approval of this Term Sheet, the parties will work together in good faith to
negotiate and draft the following formal agreements. However, the Parties acknowledge
that for compliance with the State Surplus Land Act, they may be obliged to cease
negotiations until that Act has been fully complied with, at which time negotiations may
resume and the Consulting Fee shall commence.
(a) A Consulting Agreement, pursuant to which City would pay SSE a flat fee of $270,000
(“Consulting Fee”) for consulting on design and operational matters during the pre-
construction phase and providing Project management services during the construction
phase. The Consulting Fee would be payable in 18 equal monthly installments of $15,000
each over the anticipated 18 month pre-construction and construction period.
(b) Assuming the choice of a design build process, a Reimbursement Agreement, pursuant to
which SSE would agree to advance a portion of the costs and fees (“Design Fees”)
payable to the design professionals and other consultants and contractors that City will
retain to prepare the basis of design documents which will be used for design/build
contractors to bid upon a design build contract for design and construction of the Project.
The Design Fees which are estimated at $225,000 shall initially be funded 50% by City and
50% by SSE. If the Project is constructed the full amount of the Design Fees shall be
included in the Project Costs and reimbursed to City and SSE out of the revenue bond
proceeds. If the Project is not constructed, City shall reimburse SSE the full amount of
the Design Fees advanced by SSE within the time and in the manner set forth in the
Reimbursement Agreement.
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(c) An Operating Agreement (“Agreement”), pursuant to which SSE would have the certain
rights and obligations pursuant to the Agreement to operate the Facility for the term,
subject to the operating covenants and other terms and provisions thereof. The
Agreement is expected to be generally consistent with the provisions below, but would
include additional details, definitions and clarifications. 7. Initial Term;
Extensions; Hold
Over
The initial term of the Agreement would commence upon City’s completion of the Project,
and would continue for approximately 30 or 35 full fiscal years thereafter (the “Initial
Term”). The Initial Term is anticipated to equal the repayment period of the City Debt
Service obligation. SSE shall have successive options to extend the term in increments of
three or more years, provided that the total term, including the Initial Term and all extension
option terms, shall not exceed 55 years.
Upon the expiration of the term, as it may be extended by SSE through exercise of one or
more extension options, the Agreement will automatically be renewed upon the same terms
and conditions on a year-to-year basis unless terminated by either party upon not less than
one year’s notice.
8. Annual Base
Payments and
Additional
Payments
SSE would make Annual Payments to City , as follows:
(a) Initial Term Base Payment: Annual Base Payments for the first 30 or 35 years of the Initial
Term shall be payable to the City pursuant to a fixed payment schedule (“Payment
Schedule”) to be attached to the Agreement. The aggregate of all Annual Base Payments will
be equivalent to the aggregate of all of City’s Debt Service obligations on the revenue bonds
(assuming a fixed interest rate and principal payments that will be fully amortized at the final
maturity date), and will be paid in installments that are sufficient to timely fund City’s
scheduled Debt Service payments under the revenue bonds.
The parties anticipate that repayment of the City Debt Service obligation will commence
following the expected date of Project completion and gradually increase over a 5-year
Project stabilization period, with the exact amounts and dates of each payment to be set
forth in the Payment Schedule. Prior to Project completion, it is expected that City’s Debt
Service will be paid from a “Capitalized Interest Fund” that will be funded by the bond issue
as part of the Finance Costs.
(b) Extension Term Base Payment: The Annual Base Payments for the extension option
terms shall be determined only as of the commencement of the 1st extended term, based
on mutual agreement or appraisal of the fair market use value (“FMUV”) of the Ice Center,
taking into consideration all of the following:
• The then-existing improvements will continue to be operated as a publicly-accessible
ice rink facility.
• The Agreement obligates the operator to operate the Ice Center for the benefit of
the public, including community-based programming and community benefit
requirements.
• The Annual Base Payment for all extension option terms (approximately 20 or 25
years in total) would be established upon exercise of the first extension option, with
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specified market rate and/or inflation increases over the remaining as of yet
unexercised option terms.
• No commissions, improvement allowances or other incentives or concessions would
be provided by the City.
• The goodwill generated by SSE at the Facility would not be considered a factor in
determining the FMUV of the Facility.
• Any Capital Enhancements (defined below) paid for exclusively by SSE would not be
considered in determining the condition and quality of the Facility.
The City would commission the appraisal. If SSE disputes the determination of FMUV then
SSE shall commission a second appraisal. If the FMUV determinations of the two appraisals
are within 10% of the lower of the two appraisals, then the Annual Base Payment for the
extension option terms shall be the average of the two. If the values are not within 10% of
the lower of the two appraisals then the first two appraisers shall appoint a third appraiser
who shall select one of their two appraisals as the final determination of FMUV.
(c) Additional Payments: In addition to the Annual Base Payments, during the Initial Term
(but not any extended terms) SSE will pay City, in periodic installments (payable at the same
time Annual Base Payments are due), an amount equal to a “spread” of 50 basis points
(0.50%) over the interest rate on the principal balance of each installment of revenue bonds
being paid by the City (“Additional Payments”). The exact amounts and dates of each
installment of Additional Payments shall be set forth on the Payment Schedule to be
attached to the Agreement.
Additional Payments shall first be used to pay costs and expenses associated with the
ongoing administration of the revenue bonds, including rating agency fees, trustee fees,
consulting fees, and other City administrative expenses associated with the Project. Any
remaining Additional Payments shall be deposited into an interest-bearing special fund
(“Capital Reserve Account”) and used only to pay for the following:
• Extraordinary Repair Work;
• Uninsured losses (including payment of deductibles or restoration costs) following a
casualty;
• Capital Enhancements, to the extent the City Council approves a contribution to the
cost thereof; or
• Any other alterations or FF&E for the Facility as authorized by the City Council.
Any funds remaining in the Capital Reserve Account at the end of the Initial Term shall be
distributed to SSE to pay for Capital Repairs and Replacements (defined in Section 13 below)
made by SSE during the last five years of the Initial Term, subject to City’s approval of a
CapEx Plan for such Capital Repairs and Replacements.
Any funds remaining in the Capital Reserve Account following payment for such Capital
Repairs and Replacements shall remain the sole property of the City.
9. Operating
Revenues;
SSE shall be entitled to all “Operating Revenues”, meaning all income, receipts, fees and
other revenues generated by the operation of the Facility, including revenues from use or
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Operating
Expenses
license agreements, sub-operating agreements, concessions, food and beverage sales, retail
sales, naming rights, advertising, image rights, signage, branding, broadcast or other media
distribution rights, websites, social media platforms, mobile applications, special promotions,
and the like. SSE shall be responsible for all expenses payable in connection with the orderly
and efficient administration, management, and operation of the Facility (“Operating
Expenses”), including the cost of water, gas, and electrical utility services, which shall be
separately metered for the Facility.
10. Permitted Use Subject to the operating covenants and other provisions of the Operating Agreement, SSE
would have the exclusive right to operate and use the Facility exclusively as an ice rink with
ancillary uses, including pro shop, snack bar, party rooms, training rooms, skate rental etc.,
and parking in accordance with SSE’s customary practices at similar facilities.
SSE may conduct its operations through its own employees, or through affiliates,
contractors, subtenants, licensees, concessionaires or other vendors, provided that in all
cases SSE shall be primarily responsible for the operations of the Facility consistent with the
requirements of the Agreement.
11. Programming;
Use of Facility
SSE will maintain a balanced and diverse schedule of programs of hockey, figure skating,
public skating, ice dancing and other ice-related activities at the Ice Center, similar to its
program at its other ice center facilities. Operating times would generally be between 5:30
am and 1:00 am twelve months a year, based on demand and economics. Upon reasonable
request, SSE will meet with City to discuss any operational concerns or issues. The City
understands that the Ice Center will need to be temporarily closed from time to time during
the construction of certain Capital Repairs and Replacements and Capital Enhancements
(defined in Section 13 below).
12. Ordinary
Maintenance and
Repairs
SSE will be responsible for Ordinary Maintenance and Repair of the Facility, including the Ice
Center FF&E, as an Operating Expense of the Facility. “Ordinary Maintenance and Repair”
means repairs, maintenance and other work necessary to keep the Facility (including the ice
refrigeration system and all other Ice Center FF&E) functioning and in good order and repair.
Consistent with GAAP, Ordinary Maintenance and Repair includes: (A) routine maintenance
and repair work that is typically performed at least once per year to maintain an asset in its
current condition without substantially improving or extending the useful life of the asset;
and (B) the purchase of parts and supplies that are typically used for one year or less, and are
not expected to increase the useful life of an asset by more than one year.
13. Capital Repairs
and
Replacements;
Capital
Enhancements
SSE will be responsible for all Capital Repairs and Replacements to the Facility (excluding
Extraordinary Repair Work as described in Section 14 below) in accordance with an annual
Capital Expenditure Plan approved by the City following completion of the Project. The
following terms have the definitions given below:
(a) “Capital Budget” means the budget for first year of the CapEx Plan, which when
approved by the City shall constitute authorization for SSE to complete the Capital
Repairs and Replacements described therein.
(b) “Capital Expenditure Plan” or “CapEx Plan” means a five-year itemized schedule of
Capital Repairs and Replacements that SSE anticipates will need to be completed during
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the upcoming five Fiscal Years in order to maintain the Facility in the condition required
by the Agreement.
(c) “Capital Repairs and Replacements” means all expenditures for renovation, repair,
construction, acquisition or replacement of capital items included in the Facility which
are subject to wearing out after a useful life and therefore typically can be forecasted and
budgeted for. For example, Capital Repairs and Replacements would include
replacement of roof coverings, carpeting, or mechanical equipment, or replacement of
worn out Zambonis.
(d) “Capital Enhancements” means items of work that are not required to repair or replace
worn out elements of the Ice Center, but are new improvements that are made to
improve the quality, functioning, efficiency or competitiveness of the Ice Center.
Prior to each fiscal year, SSE would prepare and submit to City for its approval a 5-year CapEx
Plan/Capital Budget. Following City’s approval, SSE shall make the Capital Repairs and
Replacements identified in the Capital Budget, in accordance with the time frame indicated
therein, subject to reasonable adjustments based upon unanticipated repairs and
replacements and general business conditions.
SSE, at its option, may also make Capital Enhancements as identified in an approved Capital
Budget, or as otherwise approved by the City.
SSE shall be responsible for all costs of making such Capital Repairs and Replacements and
Capital Enhancements, without contribution by the City except as expressly stated in the
Agreement.
All FF&E purchased by SSE that is essential to the operation of the Ice Center as a publicly-
accessible ice rink facility shall immediately become the property of the City when installed
within the Ice Center, subject to the rights of SSE to remove and replace the Ice Center FF&E
as determined by SSE in its reasonable discretion consistent with good management
practices.
14. Extraordinary
Repair Work
Except as otherwise provided in Section 13 with respect to SSE’s obligation to undertake
Capital Repairs and Replacements, City, at its expense, will be solely responsible for repairs
to structural elements of the Building or permanently installed, unexposed mechanical,
electrical, and plumbing components that are not expected to wear out during the life of the
Building (“Extraordinary Repair Work”). Except to the extent otherwise expressly provided
in the Agreement, the costs of such Extraordinary Repair Work shall be paid through
disbursements from the Capital Reserve Account (to be funded by SSE as described above)
or, if there are insufficient funds in the Capital Reserve Account, from other City funding
sources (without contribution by SSE).
15. City Employment
Programs and
Requirements
SSE will comply, at its cost, with all applicable City ordinances.
16. Community
Benefits
SSE shall schedule public skating at prime times convenient to the public and at other times
as ice surfaces may be available.
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SSE will operate the Ice Center in such a manner as to encourage its use by all members of
the public who are interested in recreational programs and activities on ice.
SSE will offer school-based programs for the benefit of the youth of Gilroy free general
admission, skate rental and group instruction for up to 5,000 at-risk youth per year.
Consistent with the availability of and scheduling for the ice rinks, SSE will establish public
skating periods and operate clinics for the public to learn how to skate on ice and to increase
the ice-skating skills of interested people. SSE will offer programs to play ice hockey, figure
skating, and speed skating as well as other ice oriented recreational activities.
As part of this ongoing scheduling and programming for the Ice Center, SSE shall provide
regular time periods for practice sessions for youth engaged in figure skating and hockey.
SSE will establish youth ice hockey camps during the summer.
SSE, in its discretion, will provide equipment as needed and tuition waivers to programs and
camps for youth that have demonstrated interest in and commitment to hockey and figure
skating. SSE will coordinate its youth-oriented skating programs with the City’s Parks and
Recreation Department.
Consistent with SSE’s rules and regulations regarding the use and scheduling of the Ice
Center, City shall be entitled to non-exclusive use of the Ice Center or an individual room on
an exclusive basis, without paying facility rental or admission fees, for up to fifty (50) hours
per year, for any City purpose.
The Agreement will more specifically define and describe the above community benefit
contributions.
17. Fee Schedules Fees will be commensurate with fees at other SSE locations. 18. Building Naming
Rights and
Advertising Rights
SSE would be entitled to use the name “Sharks Ice at Gilroy” and the logo of the Sharks on
Building and directional signage at the Ice Center, as well as in advertising, internal labeling
of forms, certificates and paper products, digital uses, and general reference to the Ice
Center.
Alternatively, SSE may sell the naming rights to the Building to a commercial sponsor, in
which case SSE would have the right to utilize a name for the Building that incorporates the
name of the sponsor, provided that SSE would continue to include “Gilroy” in the name.
Both the naming rights sponsor and the name of the Building would be subject to approval
by the City not to be unreasonably withheld.
The Agreement would set forth specific requirements and procedures for obtaining approval
of the naming rights sponsor and related exterior signage.
SSE would also have the right to sell advertising and branding opportunities within the Ice
Center to SSE sponsors, provided such advertising is in good taste and consistent with good
community standards, subject to approval by the City in its reasonable discretion.
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19. Expansion
Potential
SSE would like to have the potential to expand the Facility to include a phase 2 ice center
with two or more additional NHL-sized ice rinks and ancillary uses including spectator
seating, multi-purpose rooms, offices, support areas and/or snack bars, together with a
sufficient number of additional parking spaces to support the added rinks. Such expansion is
not part of this Term Sheet or the Agreement and would not be analyzed as part of the
Project for CEQA purposes. The City will notify and consult with the Sharks regarding any
improvements contemplated to the Sports Park that might affect such expansion potential.
The City would reserve full and complete discretion with respect to approval of any such
future expansion.
20. Letter of Credit or
Security Deposit
As security for SSE’s payment obligations under the Agreement, SSE shall deliver to City
either an irrevocable letter of credit in favor of City as the beneficiary thereof or a cash
security deposit (or any combination of the two) (collectively, “Letter of Credit”) as
described below.
As used herein, the following definitions shall apply:
“Two Year Letter of Credit” shall mean a Letter of Credit in an amount equal to the lesser of
(i) approximately two years of Annual Base Payments at the fully stabilized Annual Base
Payment amount, or (ii) $4.0 Million.
“One Year Letter of Credit” shall mean a Letter of Credit in an amount equal to the lesser of
(i) approximately one year of Annual Base Payments at the fully stabilized Annual Base
Payment amount, or (ii) $2.0 Million.
Initially, SSE shall deliver a Two Year Letter of Credit to the City. However, the Two Year
Letter of Credit shall be reduced to a One Year Letter of Credit at such time as the Debt
Service Coverage Ratio for the prior two (2) Fiscal Years is at least 1.25, as confirmed in
writing by the City Administrator.
Furthermore, the One Year Letter of Credit shall be returned by City to SSE and SSE shall
have no further obligation to maintain any Letter of Credit at such time as the Debt Service
Coverage Ratio for the prior three (3) Fiscal Years is at least 1.50, as confirmed in writing by
the City Administrator.
“Debt Service Coverage Ratio” means Qualified Net Operating Revenues (defined below)
divided by the Annual Base Payment payable at the fully stabilized Base Payment amount,
which formula can be depicted as follows:
Qualified Net Operating Revenues ÷ Annual Base Payment
“Qualified Net Operating Revenues” means the following difference: (i) all Operating
Revenues for a Fiscal Year; less (ii) all Operating Expenses for a Fiscal Year, excluding only: (x)
the Annual Base Payment and Additional Payment, (y) fees for the Letter of Credit, and (z)
expenditures for Capital Repairs and Replacements and Capital Enhancements.
The Letter of Credit may be reduced or eliminated, as applicable, when the above conditions
have been met; provided, however, the City Administrator may, by written notice to SSE,
require that SSE increase or reinstate, as applicable, (i) the One Year Letter of Credit if the
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average annual Debt Service Coverage Ratio over the prior consecutive two Fiscal Years has
been more than 1.25 but less than 1.50, or (ii) the Two Year Letter of Credit if the average
annual Debt Service Coverage Ratio over the prior consecutive three Fiscal Years has been
less than 1.25.
21. Transfers and
Assignments
At any time after completion of the Project, SSE shall have the right, subject to City’s
approval which shall not be unreasonably withheld, conditioned or delayed, to assign the
Agreement to another person or entity who has the experience, reputation and financial
ability to perform the SSE’s duties under the Agreement.
City may consider any or all of the following in providing or withholding its consent: (i)
financial capacity, (ii) reputation as to integrity, (iii) record and experience and qualifications
in managing commercial ice centers meeting the applicable standard, and (iv) record and
reputation in dealings with local government and community concerns.
22. Parking The Project would have approximately 387 parking spaces, with overflow parking at adjacent
City facilities on a space available basis. During scheduled tournaments and other special
events City shall cooperate with SSE to ensure that extra parking is available in overflow
parking lots at no additional charge to SSE. SSE would be responsible for all costs of
repairing, maintaining and operating the 387 parking spaces, as an Operating Expense of the
Facility. Subject to City’s approval not to be unreasonably withheld, SSE may charge parking
fees for scheduled tournaments and special events. Except as otherwise provided above, all
parking would be free to customers of the Ice Center.
23. Property
Insurance
The City shall maintain a property insurance policy (or participate in an equivalent property
risk management program) insuring the Facility, including the Ice Center (including FF&E)
against all risks of physical loss (“Covered Loss”) including wind and flood, boiler, sprinkler
leakage, terrorism, and hazardous materials contamination, but excluding earthquake.
(a) Such policy or program (“Property Insurance”) shall provide that in the event of a Covered
Loss, adjustment and payment of proceeds shall be based on Full Replacement Cost
valuation. Deductibles shall be in such amounts as may be determined by the City in its
discretion (but the City, and not SSE, shall be responsible for payment of all deductible
amounts).
(b) The City’s Property Insurance will be primary with respect to the Facility, including Ice
Center, and any policies of insurance that SSE may carry shall not contribute with the City’s
policies. The City shall not be required to insure any personal property owned by SSE
(which property is not included in FF&E as defined above).
(c) On an annual basis, the City shall provide SSE with certificates of insurance (or equivalent
documentation) evidencing the City’s compliance with its insurance obligations under the
Agreement.
(d) If a Covered Loss occurs, the City shall take all commercially reasonable actions to collect
all available proceeds as soon as is reasonably practicable, and to apply those proceeds
for the repair of the Building, including Ice Center, unless the Agreement is terminated in
accordance with the provisions under “Damage and Destruction” below
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24. Waiver of
Subrogation;
Indemnity and
limitation on
damages
SSE and the City shall agree to release the other party and waive their entire right to recover
damages against the other party for loss or damage to the releasing party’s property arising
out of or incident to the types of perils covered by the Property Insurance described above,
notwithstanding the fact that such loss or damage may have resulted from the negligence of
the released party’s employees or agents. Each party agrees to obtain from its insurance
carriers or programs an appropriate “waiver of subrogation” provision as may be necessary to
effectuate the intent of this provision.
SSE would agree to indemnify, defend and hold City harmless from and against any and all
liabilities, claims, damages and costs arising out of operation of the Facilities by SSE; provided,
however the foregoing indemnity would not apply to claims to the extent arising from the
active negligence or intentional misconduct of City.
Neither party would have the right to recover any consequential or punitive damages in the
event of a default by the other party.
25. Damage and
Destruction
If the Ice Center (including FF&E) is damaged or destroyed, then subject to the following terms
and conditions, the City shall be required to repair the damaged Ice Center (including FF&E),
unless there is a Shortfall.
As used herein, “Shortfall” means either (i) the amount by which the estimated cost of repair
exceeds the sum of (A) the proceeds payable under the City’s Property Insurance (for a
Covered Loss); plus (B) the applicable deductible amount payable by the City; or (ii) the entire
cost of repair in the event of an earthquake or other loss that is not covered by the City’s
Property Insurance.
(a) If City is required to repair the Ice Center (e.g., where the loss is covered by the Property
Insurance), the City shall commence repair work as soon as reasonably practicable (but
in all cases within 12 months after the Covered Loss) and shall diligently prosecute such
work to completion.
(b) If the City is not required to repair the Ice Center (e.g., in the event of a Shortfall), then
the City shall elect, within 30 days following receipt of an estimate of the repair costs, to
either: (i) repair the Ice Center (in which case any Shortfall would be paid by the City
from its own funds and the Agreement would continue), or (ii) terminate the Agreement.
However, the City’s election to terminate may be cancelled by SSE if SSE agrees to pay
any Shortfall to repair the Ice Center, or agrees to continue to occupy the undamaged
portions of the Ice Center.
(c) If SSE elects to pay the Shortfall to have City repair the Ice Center, the City shall be
required to repair the Ice Center as soon as is reasonably practicable. The City shall use
all available insurance proceeds for the cost of rebuilding and related work (such as clean
up, project management, demolition, environmental mitigation, etc.), and SSE shall pay
any Shortfall from its own funds.
11.3.a
Packet Pg. 185 Attachment: Non Binding Term Sheet (3852 : Sharks Ice Non-Binding Term Sheet Approval)
11.3.b
Packet Pg. 186 Attachment: Exhibit A to Term Sheet (3852 : Sharks Ice Non-Binding Term Sheet Approval)
11.3.bPacket Pg. 187Attachment: Exhibit A to Term Sheet (3852 : Sharks Ice Non-Binding Term Sheet Approval)
11.3.cPacket Pg. 188Attachment: Ice Center Project Description (3852 : Sharks Ice Non-Binding Term Sheet Approval)
11.3.cPacket Pg. 189Attachment: Ice Center Project Description (3852 : Sharks Ice Non-Binding Term Sheet Approval)
11.3.c
Packet Pg. 190 Attachment: Ice Center Project Description (3852 : Sharks Ice Non-Binding Term Sheet Approval)
11.3.c
Packet Pg. 191 Attachment: Ice Center Project Description (3852 : Sharks Ice Non-Binding Term Sheet Approval)
11.3.cPacket Pg. 192Attachment: Ice Center Project Description (3852 : Sharks Ice Non-Binding Term Sheet Approval)
From:Marc Beauchamp
To:City Clerk
Subject:EXTERNAL - Gilroy City Council Meeting 06/20/2022 agenda item 11.2 and 11.3 regarding Sharks Ice
Date:Wednesday, June 15, 2022 2:36:37 PM
CAUTION: This email originated from an External Source. Please use proper judgment and caution when opening
attachments, clicking links, or responding to this email.
City Clerk, Council City Members and Mayor:
I am writing to encourage the city to approve the non-binding term
sheet to bring a Shark's Ice to Gilroy. I have been a Gilroy resident
for 10 years. I'm originally from Canada and have played hockey most
of my life. I have played in the Shark's Ice adult league in San Jose
from 2000 to 2020. I would definitely take on the sport again if a
facility in Gilroy was opened. I'm also father to 2 teenage boys who
have always wanted to play hockey. The distance to the facility in
San Jose has been a deterrent to joining the sport. Having this in
our city would absolutely make that dream possible for them.
Respectfully,
Marc Beauchamp
11.3.d
Packet Pg. 193 Attachment: Public Comment - Beauchamp, Marc (3852 : Sharks Ice Non-Binding Term Sheet Approval)
From:Lorrin Squatritto
To:City Clerk
Subject:EXTERNAL - Comment for June 20th Meeting re: potential ice rink
Date:Thursday, June 16, 2022 9:05:31 AM
CAUTION: This email originated from an External Source. Please use proper judgment and caution when opening
attachments, clicking links, or responding to this email.
Dear Council Members,
I am ecstatic to see that the city is working hard to make the ice rink at the Gilroy Sports Park a reality. My family
and I have longed for opportunities such as skating and ice hockey close to home for a long time now.
It also pleases me that the city is being mindful of the financial risks associated with such a large project. However,
the level of risk aversion shown thus far has me concerned that the city is limiting our opportunity for a world-class
facility. As it is currently outlined, does the plan for facility allow for future expansion of the facility and what it
offers, should the ice rinks prove very popular and city budgets allow? In addition to wanting a high quality indoor
pool, it would be great to have other indoor recreation facilities that accommodate things like soccer, futsal, or even
an American Ninja Warrior style gym. Such a facility would not only add incredible value to our community for
local families, but it would be able to draw groups for tournaments that would help support local hotels and
restaurants. When considering the financial impacts of this project, please make sure you are not limiting important
possibilities for the community at large. Thank you.
Sincerely,
Lorrin Squatritto
Sent from my iPhone
11.3.e
Packet Pg. 194 Attachment: Public Comment - Squatritto, Lorrin (3852 : Sharks Ice Non-Binding Term Sheet Approval)
11.3.f
Packet Pg. 195 Attachment: Public Comment - Welka, Paul (3852 : Sharks Ice Non-Binding Term Sheet Approval)
City of Gilroy
STAFF REPORT
Agenda Item Title: Introduction of the Comprehensive User Fee Study and First
Reading of an Ordinance Amending Sections of Chapter 7 of
the Gilroy City Code Entitled "Cost Comparison System for
Fee and Service Charge Revenue"
Meeting Date: June 20, 2022
From: Jimmy Forbis, City Administrator
Department: Finance Department
Submitted By: Harjot Sangha, Finance Director
Prepared By: Harjot Sangha, Finance Director
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 2022 Comprehensive User Fee Study report;
2. After the City Clerk reads the title of the ordinance, motion to waive further
reading of the ordinance; and
b) Introduce an Ordinance of the City Council of the City of Gilroy amending
sections 7.3, 7.4, and 7.5 of Chapter 7 of the Gilroy City Code entitled "Cost
Comparison System for Fee and Service Charge Revenue".
EXECUTIVE SUMMARY
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As part of its FY22 and FY23 workplan, staff has completed an update to the City’s
Comprehensive User Fee Schedule. The City’s current fee schedule was last updated
and adopted in 2014. The fee schedule establishes user fees charged for services
rendered by various departments. The User Fee Study (“Study”) was made available to
the community and frequent users of City services, such as developers and contr actors.
Staff conducted two community meetings, on June 9 th and June 16th, to solicit feedback.
In addition to adjusting the fees, staff is introducing an ordinance to amend sections of
Chapter 7 of the Gilroy City Code, entitled “Cost Comparison System for Fee and
Service Charge Revenue” for items outlined in the policy discussion below.
POLICY DISCUSSION
Should the City Council adopt an ordinance amending section of Chapter 7 of the Gilroy
City Code, entitled “Cost Comparison System for Fee and Service Charge Revenue” to:
1. Annually adjust the fee schedule based on a consumer price index (CPI) to keep
pace with the increases in cost of providing services and require a
comprehensive fee to be conducted at least every five years.
2. Provide flexibility to exclude certain types of expenses not directly attributable to
the cost of providing services when performing user fee calculations.
3. Update language pertaining to types of regulation, product, and service the City
provides and related percentage of costs to be recovered for such services.
BACKGROUND
The City’s current fee schedule was last updated and adopted in 2014. In 2019, the City
initiated a Study as part of its workplan. However, in 2020 the project was paused due
to the onset of the COVID-19 pandemic which shifted the City’s priorities to addressing
the challenges brought on by the pandemic. As part of the current biennial budget
development process, staff included the completion of the user fee study project in its
workplan. Over the last 10 months, staff re-engaged with the consultant (Willdan
Financial Services), reviewed the 2019 draft fee study schedules, and worked with
various departments to adjust the calculations based on budget and level of effort. This
was needed as the 2019 update was based on p re-pandemic levels of staffing and
service budgets.
ANALYSIS
The study’s objective is to help determine the full cost of the services the City provides.
The total cost of each service included in the analysis is based on the full cost of
providing the service, including direct salaries and benefits, direct departmental costs,
and indirect costs from central support services. The scope of the study encompasse d a
review and calculation of fees charged by the following departments and fee groups:
General Administration, Finance, Wastewater, Community Development, Public Works,
Recreation, Police, and Fire.
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At the May 16th City Council meeting, Council received an update regarding the study
which included information regarding the process and methodology utilized for the
study, as well as what the Council and community can expect the recommendations to
include: removal and addition of fees across departments, an inflationary factor to
annually adjust the fees based on a consumer price index, and related amendment s to
Chapter 7 of Gilroy City Code. A link to the May 16 th report is provided as an
attachment.
The User Fee Study
The recommended fee schedules within the Study, Appendix C – Cost Recovery
Analysis, include the description of the service/fee, the current fee, the full cost of
providing the service related to that fee, the current subsidy, the recommended fee, and
the net change in fee amount from the current fee. The recommended fees are set at
100% cost recovery for all service areas as required by the Gilroy City Code, with the
exception of certain facility and park rental fees which are recommended to follow the
current categorical subsidy based on whether the user is a Gilroy resident, a non -profit
organization, or if the use is for a City/school event.
The table below provides a summary of the number of fees that were adjusted or
remain unchanged by service area. Details of the adjustments are within the Appendix
C of the Study.
Service Area
# of Fees
Increased
# of Fees
Decreased
# of New
Fees
Added
# of Fees
Unchanged
General
Administration 1 - 2 13
Finance 33 5 4 40
Wastewater 3 - 1 9
Public Works 5 1 8 96
Recreation 70 3 12 30
Fire 56 2 8 18
Police 20 6 - 28
Community
Development –
Building
114 38 50 16
Community
Development -
Planning
42 6 12 10
Average 38 9 12 29
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The following analysis provides a summary of the results by Service Area on types of
fees collected and any new fees proposed. The User Fee Study and the fee schedules
included in Appendix C should be reviewed for additional information and details.
General Administration
The fees within the General Administration services includes general governance
functions such as City Administrator, City Attorney, City Clerk, and Administrative
Services. The fees within this service group are mostly related to document
reproduction and miscellaneous fees related to special services/research requested.
Two new fees are recommended to be added, a document reproduction , and a notary
fee set to the maximum amount as allowed by the Government Code 8211, current at
$15. The majority of existing fees are recommended to follow current fee methodology
of assessing the Department/Division’s hourly rate for the service.
Finance
The fees within the Finance services primarily include business license processing,
water and wastewater utility services, and other miscellaneous fees such as returned
check and/or delinquency charges. Four new fees are recommended to be added to the
schedule which are pass-through costs from merchant processor for credit card and
ACH/e-check type payments. The City currently absorbs the merchant processing fees
and is recommending passing the cost onto the user of service s. The fee is 2.95% for
non-utility payments, $3.50 for utility payments, and $0.75 per e-check/ACH transaction.
The implementation of the pass-through costs will coincide with the Tyler Munis
(Enterprise Resource Planning-ERP) and Tyler EnerGov (permitting) systems being
fully live and operational.
Wastewater
The fees within the Wastewater services relate primarily to the South County Regional
Wastewater Authority (SCRWA) and include services related to pretreatment plan
checks and other related inspections to regulate the wastewater discharge of specific
commercial and industrial users of the plant as required by law. One new fee, re-
inspection fee, is recommended to be added, established at $214 with a ½ hour
minimum.
Public Works
The fees within the Public Works services primarily include subdivision map and
improvement plan check and inspection, encroachment permits, oversize transportation
permits, stormwater compliance, special staff analysis and reimbursement rates for
storm, sewer, and water main pipes. Eight new fees are recommended to be added, five
of which relate to Stormwater post construction Best Management Practice (BMP) as
required by State law. The fees, ranging from $31 to $504, cover initial costs to accept
11.4
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and enter postconstruction BMP information from new development to the State
database, and to annually solicit, accept, review, monitor and report on the semi-annual
inspections required. The City of Gilroy contracts with the City of Morgan Hill for such
environmental services and these fees would help recover a portion of the stormwater
compliance service costs paid to the City of Morgan Hill. Other new fees include
miscellaneous services such as curb paining ($467) and driveway red tipping ($357).
Recreation
The fees within Recreation services primarily include facilities and park rental fees. Most
of the fees are time-based and thus are increasing due to higher personnel costs. The
current facilities and park rental fees are subsidized based on a 4 -tier scale, Categories
A through D, where category D is 100% cost recovery, and categories A through C are
subsidized for Gilroy residents, non-profit organizations, and City/School events. No
change to the current methodology is recommended at this time, other than increases to
the fees. Twelve new fees are recommended to be added, which cover two new park
facilities currently not on the fee schedule (Christmas Hill - Park Side, and San Ysidro
Picnic Pavilion), and a new fee for cancellation of park and field reservation is also
recommended to be added at $64.
In 2020 a new approach was established for the recreation services where the General
Fund contributes $1.5 million annually to be expended on programs that serve the
needs of the City’s vulnerable population(s) including adaptive, special needs, senior
center, youth center and volunteer programs. Any new programs identified by the
division requires City Administrator approval to be accommodated within the existing
$1.5 million funding or the program must demonstrate 100% cost recovery for
consideration.
Fees for seasonal recreation classes and programs are recommended to follow the
current practice where program offerings and related fees are adjusted seasona lly
based on market analysis and consider fluctuations and trends in participation rates to
attain cost recovery. A related ordinance amendment is also recommended, as
discussed further below, to bring the City Code in line with current practice.
Fire
The fees within the Fire services primarily include fire prevention and hazardous
materials permits, plan checks and inspections. Eight new fees are recommended to be
added related to false alarms, additional permits and inspections for hazardous
materials and above ground petroleum storage sites, with fees ranging from $193 up to
$562.
Police
The fees within the Police services primarily include annual operational permits for
certain types of businesses, animal control, vehicle impound/release, graffiti abatement,
and other cost recovery items such as call backs, crime analysis services , and DUI
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related cost recovery. No new fees are recommended to be added within Police
services.
Community Development – Building
The fees within Community Development’s Building Division primarily include plan
checks and permits related to building, roofing, electrical, mechanical, plumbing,
grading, and other miscellaneous structures. A total of 50 new fees, ranging from $30
up to $2,426, are recommended to be added across various permits categories:
including solar and energy storage system permits, sign and monument, reproduction of
documents, pool demolition, electrical permits related to electric vehicle charging, HVAC
replacement, and permits related water and sewer re-piping.
For building permits, the valuation-based method is utilized, using the International
Code Council (ICC) building valuation data table, adjusted regionally, to provide the
average construction cost per square foot. The Building permits value table is
recommended to increase by 3.8%, to achieve 100% cost recovery.
Community Development – Planning
The fees within Community Development’s Planning Division primarily include
architectural and site reviews, conditional use permits, general plan and zoning review
and amendments, environmental review, urban service area amendments, tentative
maps, and other miscellaneous review and permits. Twelve new fees , ranging from
$126 up to $5,712, are recommended to be added to include historic site
demolition/alternation permit, signage permits, additional temporary and conditional use
permits, zoning verification, Murray Las Animas overlay, and public noticing.
Ordinance
As mentioned in the policy consideration above, staff is recommending that the City
Council introduce an ordinance amending sections of Chapter 7 of the Gilroy City Code,
entitled “Cost Comparison System for Fee and Service Charge Revenue” to:
1. Annually adjust the fee schedule based on a consumer price index to keep pace
with the increases in cost of provide services and require a comprehensive fee
study to be conducted at least every five years.
2. Provide flexibility to exclude certain types of expenses not directly attributable to
the cost of providing service when performing user fee calculations.
3. Update language pertaining to types of regulation, product, and service the City
provides and related percentage of costs to be recovered for such services.
To effectuate the above, three sections of the code are recommended to be updated:
Section 7.3 –outlines the various expenditure elements to be included in the
calculation of the fee and service charge . Staff is recommending adding the
following text at the end of the section to allow for certain exclusions:
11.4
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“When developing the cost allocation plan or service charge model which
establishes the said fees and service charges, certain expenses may be
considered for exclusion from the calculation which may not be directly
attributable to a service being provided.”
Section 7.4 – outlines the adjustment of the fee schedule and provides a table of
regulations, products, or services with their respective percentage of cost to be
recovered. The recommended changes in this section include the following:
1. Replacing current language that requires annual fee studies to annual
adjust the fees based on CPI and requiring comprehensive fee stud ies to
be conducted not less than every five years.
2. Updating the fee table to:
o Categorize the fees in correct Service Areas
▪ For example: Existing code had various business permits
(massage, cardroom, taxicab etc.) as a Finance service,
which is now a Police service.
o Removal of fee descriptions that are outdated
▪ For example: The residential development ordinance (RDO)
and related housing exemption fee are no longer service
categories, thus are removed.
o Updating cost recovery language for Recreation services
▪ For example: Under the current code, facilities and park
rentals are required to be 100% cost recovery. In actuality
the current fees adopted in 2014 are tiered in categories A -
D, where category D is 100% cost recovery and A through C
are subsidized at various percentages for Gilroy residents,
non-profit organizations, and the City/School events. This
change will bring the code in line with current practice.
It is important to note that the table, while it is being replaced in its entirety,
maintains the same cost recovery percentages established in the existing code,
with certain adjustments as outlined above.
Section 7.5 – Current code requires the fee analysis to be conducted annually
and be presented to Council annually via public hearing. This is not the current
practice. As a best practice, comprehensive fee studies are recommended to be
conducted not less than every five years. As such, this section is being amended
to remove the word “annual” from public hearing requirement to adjust the fees.
Any future adoption of comprehensive fee analysis and any related adjustments
would still be conducted via public hearing as required by law, just not annually.
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This also does not prevent the City from adopting one-off fees as may be
required.
ALTERNATIVES
1. City Council could direct staff to not adjust select fees or adjust at a lower cost
recovery level. This is not recommended as it is the Council’s strategic priority to
be fiscally resilient and sustainable. As such, updating the City’s fees and
charges periodically to ensure 100% cost recovery is critical.
2. City Council could decide to forgo one or more of the proposed amendments to
Chapter 7 of the Gilroy City Code. This is not recommended, especially as the
adjustments bring the code in line with current practice and include an annual
inflationary factor to adjust the fees to keep up with the rising costs.
FISCAL IMPACT/FUNDING SOURCE
There is no fiscal impact to receiving this report. The cost for the user fee study to
update the 2019 study is $7,500 and is included in the Finance Department’s adopted
FY22 budget. Various departments have contributed efforts to review a nd update the
fee calculation models and the work was accommodated within their respective
department’s workplan.
The fees will be brought back to City Council for adoption via formal Public Hearing on
July 5th. The adjusted fees are projected to recover the cost of providing the various City
services.
NEXT STEPS
Staff will return to Council on July 5th for formal adoption of the resolution setting the
new fee schedule, with target implementation effective date of August 1, 2022 and
formal adoption of the ordinance with amendments to Chapter 7.
PUBLIC OUTREACH
The Study was released to the community on June 3, 2022 and communicated via the
weekly Email Express, and via email to the development community, with links to the
City’s webpage, online comment form, and an invite to two community meetings
conducted on June 9th (virtual) and June 16th (Council Chambers).
Only one attendee from the community was present for the June 9th virtual town hall
meeting and had no comments or questions.
No attendees from the community were present for the June 16th in person meeting
hosted at the Council Chambers for the development and business community.
As of writing this staff report, no comments have been received via the online form
either.
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Attachments:
1. 2022 Comprehensive User Fee Study
2. Draft Ordinance
3. May 16th, 2022 Staff Report
11.4
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City of Gilroy
User Fee Study
June 20, 2022
11.4.a
Packet Pg. 205 Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction)
i Comprehensive User Fee Study
TABLE OF CONTENTS
Executive Summary ................................................................................................................................ 1
User Fee Background .............................................................................................................................. 2
Background .................................................................................................................................................. 2
California User Fee History .......................................................................................................................... 2
Additional Policy Considerations ................................................................................................................. 3
Study Objective....................................................................................................................................... 4
Scope of the Study ....................................................................................................................................... 4
Aim of the Report ......................................................................................................................................... 5
Project Approach and Methodology ........................................................................................................ 6
Conceptual Approach ................................................................................................................................... 6
Fully Burdened Hourly Rates ........................................................................................................................ 6
Summary Steps of the Study ........................................................................................................................ 7
Allowable Costs ............................................................................................................................................ 7
Methodology ................................................................................................................................................ 8
Quality Control/Quality Assurance .............................................................................................................. 8
Reasons for cost increases/decreases over current fees............................................................................. 9
City Staff Contributions ................................................................................................................................ 9
Gilroy User Fees .................................................................................................................................... 10
Cost Recovery............................................................................................................................................. 10
Subsidization .............................................................................................................................................. 10
Impact on Demand (Elasticity) ................................................................................................................... 11
Summary .................................................................................................................................................... 11
General Administration ......................................................................................................................... 12
Analysis ...................................................................................................................................................... 12
Finance ................................................................................................................................................. 13
Analysis ...................................................................................................................................................... 13
Wastewater .......................................................................................................................................... 14
Analysis ...................................................................................................................................................... 14
Public Works ......................................................................................................................................... 15
Analysis ...................................................................................................................................................... 15
Recreation ............................................................................................................................................ 16
11.4.a
Packet Pg. 206 Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction)
ii Comprehensive User Fee Study
Analysis ...................................................................................................................................................... 16
Fire ....................................................................................................................................................... 17
Analysis ...................................................................................................................................................... 17
Police .................................................................................................................................................... 18
Analysis ...................................................................................................................................................... 18
Community Development ..................................................................................................................... 19
Analysis ...................................................................................................................................................... 19
Appendix A – Total Allowable Cost to be Recovered ............................................................................. 21
Appendix B – Fully Burdened Hourly Rates ............................................................................................ 22
Appendix C – Cost Recovery Analysis .................................................................................................... 26
11.4.a
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1 Comprehensive User Fee Study
Executive Summary
The City of Gilroy engaged Willdan Financial Services (Willdan) to determine the full costs incurred by the
City to support the various activities for which the City charges user fees. Due to the complexity and the
breadth of performing a comprehensive review of fees, Willdan employed a variety of fee methodologies
to identify the full costs of individual fee and program activities. This report and the appendices herein
identifies 100% full cost recovery for City services and the recommended level of recovery as determined
through discussion with departmental staff.
The reality of the local government fee environment is that significant increases to achieve 100% cost
recovery can often not be feasible, desirable, or appropriate depending on policy direction —particularly in
a single year. The recommended fees identified herein are either at or less than full cost recovery.
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2 Comprehensive User Fee Study
U ser Fee Background
Background
As part of a general cost recovery strategy, local governments adopt user fees to fund programs and services
that provide limited or no direct benefit to the community as a whole. As cities struggle to maintain levels
of service and variability of demand, they have become increasingly aware of subsidies provided by the
General Fund and have implemented cost-recovery targets. To the extent that governments use general
tax monies to provide individuals with private benefits, and not require them to pay the full cost of the
service (and, therefore, receive a subsidy), the government is limiting funds that may be available to provide
other community-wide benefits. In effect, the government is using community funds to pay for private
benefit. Unlike most revenue sources, cities have more control over the level of user fees they charge to
recover costs, or the subsidies they can institute.
Fees in California are required to conform to the statutory requirements of the California Consti tution,
Proposition 218, and the California Code of Regulations. The Code also requires that the City Council adopt
fees by either ordinance or resolution, and that any fees in excess of the estimated total cost of rendering
the related services must be approved by a popular vote of two-thirds of those electors voting because the
charge would be considered a tax and not a fee.
California User Fee History
Before Proposition 13, California cities were less concerned with potential subsidies and recovering the cost
of their services from individual fee payers. In times of fiscal shortages, cities simply raised property taxes,
which funded everything from police and recreation to development-related services. However, this
situation changed with the passage of Proposition 13 in 1978.
Proposition 13 established the era of revenue limitation in California local government. In subsequent years,
the State saw a series of additional limitations to local government revenues. Proposition 4 (1979) defined
the difference between a tax and a fee: a fee can be no greater than the cost of providing the service; and
Proposition 218 (1996) further limited the imposition of taxes for certain classes of fees. As a result, cities
were required to secure a supermajority vote in order to enact or increase taxes. Since the public continues
to resist efforts to raise local government taxes, cities have little control and very few successful options for
new revenues. Compounding this limitation, the State of California took a series of actions in the 1990’s
and 2000’s to improve the State’s fiscal situation—at the expense of local governments. As an example, in
2004-05, the Educational Revenue Augmentation Funds (“ERAF”) take-away of property taxes and the
reduction of Vehicle License Fees have severely reduced local tax revenues.
In addition, on November 2, 2010, California voters approved Proposition 26, the “Stop Hidden Taxes
Initiative”, which is aimed at defining “regulatory fees” as a special tax rather than a fee, thus requiring
approval by two-thirds vote of local voters. These regulatory fees are typically intended to mitigate the
societal and environmental impacts of a business or person’s activities. Proposition 26 contains seven
categories of exceptions. The vast majority of fees that cities would seek to adopt will most likely fall into
one or more of these exemptions.
11.4.a
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3 Comprehensive User Fee Study
Additional Policy Considerations
The recent trend for municipalities is to update their fee schedules to reflect the actual costs of certain
public services primarily benefitting users. User Fees recover costs associated with the provision of specific
services benefiting the user, thereby reducing the use of General Fund monies for such purposes.
In addition to collecting the direct cost of labor and materials associated with processing and administering
user services, it is common for local governments to recover support costs. Support costs are those costs
relating to a local government’s central service departments that are properly allocable to the local
government’s operating departments. Central services support cost allocations were incorporated using
the resulting indirect overhead percentages determined through the Cost Allocation Plan. This plan was
developed prior to the User Fee study to determine the burden placed upon central services by the
operating departments in order to allocate a proportionate share of central service cost.
As labor effort and costs associated with the provision of services fluctuate over time, a significant element
in the development of any fee schedule is that it has the flexibility to remain current. Therefore, it is
recommended that the City include an inflationary factor in the resolution adopting the fee schedule to
allow the City Council, by resolution, to annually increase or decrease the fees.
The City may employ many different inflationary factors. The most commonly used inflator is some form of
the Consumer Price Index (CPI) as it is widely well known and accepted. A similar inflator is the implicit price
deflator for Gross Domestic Product (GDP), which is much like the CPI except that while the CPI is based on
the same “basket” of goods and services every year, the price deflators’ “basket” can change year to year.
Since the primary factor for the cost of a City’s services is usually the costs of the personnel involved, tying
an inflationary factor that connects more directly to the personnel costs can be suitable if there is a clear
method, or current practice of obtaining said factor.
Each City should use an inflator that they believe works the best for their specific situation and needs. It is
also recommended that the City perform this internal review annually with a comprehensive review of
services and fees performed every three to five years, which would include adding or removing fees for any
new or eliminated programs/services, as well as updating the underlying cost and personnel data.
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4 Comprehensive User Fee Study
Study Objective
As the City of Gilroy seeks to efficiently manage limited resources and adequately respond to increased
service demands, it needs a variety of tools. These tools provide assurance that the City has the best
information and the best resources available to make sound decisions, fairly and legitimately set fees,
maintain compliance with state law and local policies, and meet the needs of the City administration and
its constituency. Given the limitations on raising revenue in local government, the City recognizes that a
User Fee Study is a very cost-effective way to understand the total cost of services and identify potential
fee deficiencies. Essentially, a User Fee is a payment for a requested service provided by a local government
that primarily benefits an individual or group.
The total cost of each service included in this analysis is based on the full cost of providing City services,
including direct salaries and benefits of City staff, direct departmental costs, and indirect costs from central
service support. This study determines the full cost recovery fee for the City to provide each service;
however, each fee is set at the City’s discretion, up to 100% of the total cost, as specified in this report.
The principal goal of the study was to help the City determine the full cost of the services that the City
provides. In addition, Willdan established a series of additional objectives including:
• Developing a rational basis for setting fees
• Identifying subsidy amount, if applicable, of each fee in the model
• Ensuring compliance with State law
• Developing an updatable and comprehensive list of fees
• Maintaining the fees accordance with City policies and goals
The study results will help the City better understand its true costs of providing services and may serve as
a basis for making informed policy decisions regarding the most appropriate fees, if any, to collect from
individuals and organizations that require individualized services from the City.
Scope of the Study
The scope of this study encompasses a review and calculation of the user fees charged by the following
Gilroy departments and fee groups:
• General Administration
• Finance
• Wastewater
• Public Works
• Recreation
• Fire
• Police
• Community Development
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The study involved the identification of existing and potential new fees, fee schedule restructuring, data
collection and analysis, orientation and consultation, quality control, communication and presentations,
and calculation of individual service costs (fees) or program cost recovery levels.
Aim of the Report
The User Fee Study focused on the cost of City services, as City staff currently provides them at existing,
known, or reasonably anticipated service and staff levels. This report provides a summary of the study
results, and a general description of the approach and methods Willdan and City staff used to determine
the recommended fee schedule. The report is not intended to document all of the numerous discussions
throughout the process, nor is it intended to provide influential dissertation on the qualities of the utilized
tools, techniques, or other approaches.
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Project Approach and M ethodology
Conceptual Approach
The basic concept of a User Fee Study is to determine the “reasonable cost” of each service provided by
the City for which it charges a user fee. The full cost of providing a service may not necessarily become the
City’s fee, but it serves as the objective basis as to the maximum amount that may be collected.
The standard fee limitation established in California law for property-related (non-discretionary) fees is the
“estimated, reasonable cost” principle. In order to maintain compliance with the letter and spirit of this
standard, every component of the fee study process included a related review. The use of budget figures ,
time estimates, and improvement valuation clearly indicates reliance upon estimates for some data.
F ully Burdened Hourly Rat es
The total cost of each service included in this analysis is primarily based on the Fully Burdened Hourly Rates
(FBHRs) that were determined for City personnel directly involved in providing services. The FBHRs include
not only personnel salary and benefits, but also any costs that are reasonably ascribable to personnel. The
cost elements that are included in the calculation of fully burdened rates are:
• Salaries & benefits of personnel involved
• Operating costs applicable to fee operations
• Departmental support, supervision, and administration overhead
• Internal Service Costs charged to each department
• Indirect City-wide overhead costs
An important factor in determining the fully burdened rate is in the calculation of productive hours for
personnel. This calculation takes the available workable hours in a year of 2,080 and adjusts this figure to
account for calculated or anticipated hours’ employees are involved in non‐billable activities such as paid
vacation, sick leave, emergency leave, holidays, and other considerations, as necessary. Dividing the full
cost by the number of productive hours provides the FBHR.
The FBHRs are then used in conjunction with time estimates, when appropriate, to calculate a fees' cost
based on the personnel and the amount of their time that is involved in providing each service.
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Summary Steps of the Study
The methodology to evaluate most User Fee levels is straightforward and simple in concept. The following
list provides a summary of the study process steps:
Allowable Costs
This report identifies three types of costs that, when combined, constitute the fully burdened cost of a
service (Appendix A). Costs are defined as
direct labor, including salary and benefits,
departmental overhead costs, and the City’s
central services overhead, where
departmental and central service overhead
costs constitute support costs. These cost
types are defined as follows:
• Direct Labor (Personnel Costs): The
costs related to staff salaries for
time spent directly on fee-related
services.
• Departmental Overhead: A
proportional allocation of
departmental overhead costs, including operation costs such as supplies and materials that are
necessary for the department to function.
• Central Services Overhead: These costs, represent services provided by those Central Services
Departments whose primary function is to support other City departments. The calculations utilized
the de minimus rate of 10% proscribed by 2 CFR Part 200 Cost Principles for use in organizations
that do not have a cost allocation plan.
Data Analysis
Department Interviews
Time Estimates
Labor Costs
Cost Allocation Plan
Building Cost Layers
Direct Services
Indirect Services
Department Overhead
City-Wide Overhead
Set Fees
Define the Full Cost of
Services
Set Cost Recovery Policy
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Methodology
The three methods of analysis for calculating fees used in this report are the:
Case Study Method (Standard Unit Cost Build-Up Approach): This approach estimates the actual
labor and material costs associated with providing a unit of service to a single user. This analysis is suitable
when City staff time requirements do not vary dramatically for a service, or for special projects where the
time and cost requirements are easy to identify at the project’s outset. Further, the method is effective in
instances when a staff member from one department assists on an application, service or permit for
another department on an as-needed basis. Costs are estimated based upon interviews with City staff
regarding the time typically spent on tasks, a review of available records, and a time and materials analysis.
Programmatic Approach: In some instances, the underlying data is not available or varies widely, leaving
a standard unit cost build-up approach impractical. In addition, market factors and policy concerns (as
opposed to actual costs) tend to influence fee levels more than other types of services. Willdan employed
a different methodology where appropriate to fit the programs’ needs and goals. Typical programmatic
approach cases are facility use fees, penalties, and instances where a program cost is divided over the user
base to obtain a per applicant cost for shared cost services.
Valuation Based Fees: This manner of collection is used when the valuation of the improvement can be
used as a proxy for the amount of effort it would take for City staff to complete the service provided. More
specifically, this approach is commonly used for certain User Fees in the Building Division. It is generally
accepted that as a project’s size scales up, the cost of the project increases, and the amount of effort needed
to review and inspect also increases. It is also generally true that the more complex the type of construction,
the more the cost, and time needed to review and inspect. Using a valuation-based fees provides for a
system that can adjust as project sizes scale. Land is not included in valuation determination.
Quality Control/Quality Assurance
All study components are interrelated, thus flawed data at any step in the process will cause the ultimate
results to be inconsistent and unsound. The elements of our Quality Control process for User Fee
calculations include:
• Involvement of knowledgeable City staff
• Clear instructions and guidance to City staff
• Reasonableness tests and validation
• Normalcy/expectation ranges
• FTE balancing
• Internal and external reviews
• Cross-checking
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Reasons for cost inc reases/decreases over current fees
Within the fee tables in Appendix C, the differences are identified between the full costs calculated
through the study and the fee levels currently in effect. The reasons for differences between the two can
arise from a number of possible factors including:
• Previous fee levels may have been set at levels less than full cost intentionally, based on policy
decisions
• Staffing levels and the positions that complete fee and service activity may vary from when the
previous costs were calculated
• Personnel and materials costs could have increased at levels that differed from any inflationary
factors used to increase fees since the last study
• Costs that this study has identified as part of the full cost of services may not have been accounted
for in a previous study
o Departmental overhead and administration costs
o Vehicle and Facility Maintenance support costs
o Indirect overhead from central service support
• Changes in processes and procedures within a department, or the City as a whole
City Staff Contributions
As part of the study process, Willdan received tremendous support and cooperation from City staff, which
contributed and reviewed a variety of components to the study, including:
• Budget and other cost data
• Staffing structures
• Fee and service structures, organization, and descriptions
• Direct and indirect work hours (billable/non-billable)
• Time estimates to complete work tasks
• Frequency and current fee levels
• Review of draft results and other documentation
A User Fee Study requires significant involvement of the managers and line staff from the departments—
on top of their existing workloads and competing priorities. The contributions from City staff were critical
to this study. We would like to express our appreciation to the City and its staff for their assistance,
professionalism, positive attitudes, helpful suggestions, responsiveness, and overall cooperation.
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Gilroy U ser Fees
Cost Recovery
The cost recovery models, by department/division fee type, are presented in detail in Appendix C. Full cost
recovery is determined by summing the estimated amount of time each position (in increments of minutes
or hours) spends to render a service. Time estimates for each service rendered were predominately
determined by Willdan and City Staff through a time and materials survey conducted for each
department/division fee included in the study. The resulting cost recovery amount represents the total cost
of providing each service. The City’s current fee being charged for each service, if applicable, is provided in
this section, as well, for reference.
It is important to note that the time and materials survey used to determine the amount of time each
employee spends assisting in the provision of the services listed on the fee schedule is essential in
identifying the total cost of providing each service. Specifically, in providing services, a number of
employees are often involved in various aspects of the process, spending anywhere from a few minutes to
several hours on the service.
The principal goal of this study was to identify the cost of City services, to provide information to help the
City make informed decisions regarding the actual fee levels and charges. The responsibility to determine
the final fee levels is a complicated task. City staff must consider many issues in formulating
recommendations, and the City Council must consider those same issues and more in making the final
decisions.
City staff assumes the responsibility to develop specific fee level recommendations to present to the City
Council. Unfortunately, there are no hard and fast rules to guide the City, since many of the considerations
are based on the unique characteristics of the City of Gilroy, and administrative and political discretion.
However, in setting the level of full cost recovery for each fee, one should consider whether the service
solely benefits one end user or the general community.
Subsidization
Recalling the definition of a user fee helps guide decisions regarding subsidization . The general standard is
that individuals (or groups) who receive a wholly private benefit should pay 100% of the full cost of the
services. In contrast, services that are simply public benefit should be funded entirely by the general fund’s
tax dollars. Unfortunately, for the decision makers, many services fall into the range between these two
extremes. The graphic on the following page illustrates the potential decision basis.
Further complicating the decision, opponents of fees often assert that the activities subject to the fees
provide economic, cultural, “quality of life,” or other community benefits that exceed the costs to the City.
It is recommended the City consider such factors during its deliberations regarding appropriate fee levels.
Of course, subsidization can be an effective public policy tool since it can be used to reduce fees to
encourage certain activities (such as compliance inspections to ensure public safety) or allow some people
to be able to afford to receive services they otherwise could not at the full cost. In addition, subsidies can
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be an appropriate and justifiable action, such as to allow citizens to rightfully access services, without
burdensome costs.
Despite the intent, it is important for the City and public to understand that subsidies must be covered by
another revenue source, such as the General Fund. Therefore, the general taxpayer will potentially help to
fund private benefits, and/or other City services will not receive funds that are otherwise directed to cover
subsidies.
Impact on Demand (Elasti city )
Economic principles of elasticity suggest that increased costs for services (higher fees) will eventually curtail
the demand for the services; whereas lower fees may spark an incentive to utilize the services and
encourage certain actions. Either of these conditions may be a desirable effect to the City. However, the
level of the fees that would cause demand changes is largely unknown. The Cost of Service Study did not
attempt to evaluate the economic or behavioral impacts of higher or lower fees; nevertheless, the City
should consider the potential impacts of these issues when deciding on fee levels.
Summary
If the City’s principal goal of this study were to maximize revenues from user fees, Willdan would
recommend setting user fees at 100% of the full cost identified in this study. However, we understand that
revenue enhancement is not the only goal of a cost of service study, and sometimes full-cost recovery is
not needed, desired, or appropriate. Other City and departmental goals, City Council priorities, policy
initiatives, past experience, implementation issues, and other internal and external factors may influence
staff recommendations and City Council decisions. City staff has reviewed the full costs and identified the
“recommended fee levels” for consideration by City Council. The attached appendices exhibit these unit
fees individually.
The preceding sections provide background for each department or division and the results of this study’s
analysis of their fees. For the full list of each fee and their analysis, refer to Appendix C of this report.
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General Administration
The Administration Department is a central services department that provides oversight and guidance to
all departments within the City of Gilroy. Operational oversight of the Department is provided by the City
Administrator through general direction provided to the offices contained within. These offices include the
following: City Administrator’s Office, City Attorney’s Office (Contracted), Administrative Services (Human
Resources, Fleet, Facilities and Information Technology), City Clerk’s Office, Communications and
Engagement Office, Economic Development, and Emergency Services.
Analysis
Willdan individually reviewed the services associated with the General Administration fees. The review also
consisted of an evaluation of existing services in an effort to update the fee schedule.
The analysis of the General Administration services relied primarily upon a standard unit cost build-up
approach, whereby we determined the reasonable cost of each fee occurrence using staff time to recover
the direct cost of staff and the pro-rata share of departmental costs, including indirect costs for City Central
Services. Willdan then compared the calculated full cost against the current fee amount to determine, if
charged, whether the current fee is recovering the costs associated with the requested service. The analysis
found that services are currently being provided below full cost. As a result of the fee recommendations,
there would be:
• An increase to the Subpoena Duces Tecum – personnel cost to $15.85,
• 2 new fees would be added and;
• The remaining fees would remain as currently set as detailed in Appendix C.
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Finance
The Finance Department provides timely and accurate financial information to City management, the City
Council and the public, and administers the City’s assets including cash and investments in a prudent and
responsible manner. Within the Finance Department, there are various function s including: accounts
payable/receivable, payroll, investments, debt service, general accounting, budget, and utility billing.
Analysis
Willdan individually reviewed the services associated with the Finance Department. The review also
consisted of an evaluation of existing services in an effort to update the fee schedule.
The analysis of the Finance services relied primarily upon a standard unit cost build-up approach, whereby
we determined the reasonable cost of each fee occurrence using staff time to reco ver the direct cost of
staff and the pro-rata share of departmental costs, including indirect costs for City Central Services. Willdan
then compared the calculated full cost against the current fee amount to determine, if charged, whether
the current fee is recovering the costs associated with the requested service. It is recommended that the
City set Finance fees at the at or near 100% cost recovery for most fees as detailed in Appendix C. As a
result of the suggested fees in total for the Finance schedule there would be:
• An increase to 33 fees;
• 40 fees would remain as currently set;
• 4 new fees would be added, and;
• 5 fees would decrease as detailed in Appendix C.
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Wastewater
The Public Works Department oversee the capital budget and operations of the South County Regional
Wastewater Authority (SCRWA). SCRWA treats the wastewater for the Cities of Gilroy and Morgan Hill and
produces recycled water for South Santa Clara County.
Analysis
Willdan individually reviewed the services associated with Wastewater fees. The review also consisted of
an evaluation of existing services in an effort to update the fee schedule.
The analysis of the Wastewater services relied primarily upon a standard unit cost build-up approach,
whereby we determined the reasonable cost of each fee occurrence using staff time to recover the direct
cost of staff and the pro-rata share of departmental costs, including indirect costs for City Central Services.
Willdan then compared the calculated full cost against the current fee amount to determine, if charged,
whether the current fee is recovering the costs associated with the requested service. The analysis found
that most of the services being provided are currently set below their full cost. It is recommended that the
City set Water Billing fees at the levels detailed in Appendix C. As a result, there would be:
• An increase to 3 fees;
• 9 fees would remain as currently set;
• 1 new fee would be added, and;
• The average fee change would be 52% as detailed in Appendix C.
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Public Works
Public Works designs, builds and maintains the City’s water, wastewater, storm drain, street, sidewalk, park,
landscape, urban forest and related infrastructure. The department is also responsible for managing various
City facilities including buildings, building systems, parking lots, shelters as well as the entire fleet for the
City of Gilroy. The department prepares and coordinates the capital budget for facilities and the capital and
maintenance budgets for all City infrastructure. The Public Works Department is comprised of two divisions;
the Engineering Division and the Operations Division. The Engineering Division oversees the functions
related to the Capital Improvement Program, Traffic Engineering and Land Development. The Operations
Division is made up of Street, Sewer and Urban Forest Maintenance, Park Maintenance, and Water
Operations. Public Works Engineering reviews new developments to ensure that all new public
infrastructure is in compliance with City, State and Federal codes, regulations and standards.
Analysis
Willdan individually reviewed the services and programs associated with the Public Works Department. The
review also consisted of an evaluation of existing services in an effort to update the fee schedule.
The analysis of services in Public Works relied primarily upon a standard unit cost build-up approach,
whereby we determined the reasonable cost of each fee occurrence using staff time to recover the direct
cost of staff and pro-rata share of departmental costs, including indirect costs for City Central Services.
Willdan then compared the calculated full cost against the current fee amount to determine whether the
current fee is recovering the costs associated with the requested service. The analysis found that current
fee levels are subsidizing the cost of service. It is recommended that the City set most Engineering Services
fees at or near 100% cost recovery for most fees as detailed in Appendix C. As a result, there would be:
• an increase to 5 fees;
• 1 fee would decrease;
• 8 new fees would be added;
• 5 fees would change from flat to deposit based;
• 96 fees would remain as currently set, and;
• the average estimated fee increase would be around 15% for flat fee services.
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Recreation
Housed with the City Administrator’s office, the Recreation Division offers programming geared for all ages
and interests. From preschoolers to youth theater actors to active baby boomers and beyond, there are
many diversified program options offered annually to residents. The Recreation Division comprises of a
Recreation Manager, 2 Recreation Coordinators, a Community Coordinator, and a Management Analyst.
Focused program areas are senior services, adaptive, at-risk youth, general recreation services, and
facility/park rentals.
Analysis
Willdan individually reviewed the services and programs associated with the Recreation Division. The
review also consisted of an evaluation of existing services in an effort to update the fee schedule.
The analysis of Recreation Division mainly encompassed facility rentals. The fee for use for government
owned facilities and property can be set discretionally by the City, typically based on past usage
characteristics, policy goals, and surrounding jurisdiction comparison. The cost of capital acquisition,
maintenance, repair, and upgrade to the City and subsequently the public is offset through rental or use
fees. As such these fees should be set using the knowledge of activity use for the facilities, policy desires of
the City, and market factors when desirable. It is generally accepted that some Recreation programs provide
a measure of public benefit to the residents and City as a whole, and as such is it common for services to
bear significant subsidies. In addition, cities generally want to ensure that their programs and services
remain affordable to the community at large, and that the programs remain competitive with surrounding
jurisdictions. As such, the Recreation Division has established facility and park rental fees as part of this
analysis, and any programmatic fees are established seasonally taking various market factors into
consideration. The suggested fees detailed in Appendix C would result in:
• An increase for 70 fees;
• 3 fees would decrease;
• 12 new fees will be added, and;
• 30 fees would remain as currently set as detailed in Appendix C.
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Fire
The Gilroy Fire Department is a multi-risk community service provider and is comprised of two divisions:
Administration and Operations. Administration provides leadership direction and oversight necessary to
deliver services in a cost-effective manner. They are also responsible for managing the department’s
business transactions. Administration ensures that they adhere to state and federal mandates and
standards of practice. They strive to meet or exceed the City Council’s established performance objectives.
The Operations Division is comprised of three sub-divisions: Field Operations, Training, and Emergency
Medical Services (EMS). Each sub-division is managed by a Division Chief who provides direction and
oversight. The department currently deploys its response resources from three fire stations within the City
of Gilroy. The department relies on boundary drop, auto-aid and mutual-aid agreements with the South
Santa Clara County Fire Protection District, CalFire and other fire departments within the County to obtain
additional and specialized resources when needed. Without these agreements, the department could not
safely extinguish large wildland and structure fires or mitigate hazardous materials events. When
requested, these agencies will also respond to City incidents when all three Gilroy fire stations are
committed to other emergency incidents. In addition to response, the Fire Department also performs
proactive community services.
Analysis
Willdan individually reviewed the services and programs associated with the Fire Department. The review
also consisted of an evaluation of existing services in an effort to update the fee schedule. Most of the fees
within the Fire services relate to fire prevention and hazardous materials handling and are utilized by the
Fire Prevention and Hazardous Materials Division which is strategically housed within the Community
Development Department to provide enhanced service delivery complimenting the Building and Planning
services. The Division works collaboratively with the Fire Department on inspections and hazmat response
activities.
The analysis of services in Fire relied primarily upon a standard unit cost build-up approach, whereby we
determined the reasonable cost of each fee occurrence using staff time to recover the direct cost of staff
and pro-rata share of departmental costs, including indirect costs for City Central Services. Willdan then
compared the calculated full cost against the current fee amount to determine whether the current fee is
recovering the costs associated with the requested service. The analysis found that current fee levels are
subsidizing the cost of service. It is recommended that the City set most Fire Services fees at or near 100%
cost recovery for most fees as detailed in Appendix C, with some specific fees set to retain subsidies. As a
result, there would be:
• An increase for 56 fees;
• 2 fees would decrease;
• 8 new fees will be added, and;
• 18 fees would remain as currently set as detailed in Appendix C.
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Police
The Police Department is divided into three divisions; Field Operations (Patrol), Special Operations
(Investigations & Specialty Units/Teams/Policy/Training/Hiring/Legal Issues), and Administration
(Records/Communications/Budget) each managed by a Police Captain. The overall mission of the
department is to provide public safety services in partnership with the community. Community generated
calls for service including emergency and nonemergency requests comprise Department activity. When not
actively engaged in community requests for service, Department personnel engage in proactive or self -
generated activities to further department and community goals for public safety. The Department also
maintains an Investigations component to include Detectives, the Anti-Crime Team and participation in
regional crime task forces. Non-sworn staff provide communications/dispatch services, records processing,
property/evidence management, animal control, and several other ancillary duties in support of the
Department’s mission.
Analysis
Willdan individually reviewed the services and programs associated with the Police Department. The review
also consisted of an evaluation of existing services in an effort to update the fee schedule.
The services included in Police are a mixture of fines and user fees. The fines are set to deter the listed and
the analysis of the user fees relied primarily upon a standard unit cost build -up approach, whereby we
determined the reasonable cost of each fee occurrence using staff time to recover the direct cos t of staff
and the pro-rata share of departmental costs, including indirect costs for City Central Services. Willdan then
compared the calculated full cost against the current fee amount to determine, if charged, whether the
current fee is recovering the costs associated with the requested service. The analysis found that all services
are currently under recovering the cost of providing them. Based on the suggested fees for the penalties
and services listed under Police, there would be:
• An increase to 20 fees;
• 6 fees would decrease;
• 28 fees would remain as currently set, and;
• The average fee change would be 8% as detailed in Appendix C.
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Community Development
The Community Development Department works with the public, development community, and
community partners to protect and enhance the quality of life in the community by facilitating development
activity across the City. This facilitation is conducted through the entitlement and permitting process, where
the Department ensures safe, orderly and quality development that adheres to the local zoning ordinance,
2040 General Plan, building and fire codes, and other applicable local and state laws and policies. Our
attention to the safety and well-being of the community is balanced with fostering the pursuit of economic
growth and opportunity
The Building Division ensures that the City’s adopted building codes are adhered to during the plan review
and building permit process. By collaborating with our customers, we are able to assist them with the
application, plan review, and inspection process. Providing a good building inspection program enhances
and encourages a solid and safer housing stock and further promotes code compliant commercial and
industrial buildings within our community.
The Planning Division provides current and long-term community planning services in conformance with
the Gilroy General Plan and Zoning Ordinance. Development shall be consistent with City Council direction
to enhance the design and livability of residential neighborhoods, commercial areas and industrial zones
within the City’s urban sphere while promoting sustainable development.
Analysis
Willdan individually reviewed the services and programs associated with the Community Development
Department. The review also consisted of an evaluation of existing services in an effort to update the fee
schedule.
The analysis of Community Development services relied primarily upon a standard unit cost build-up
approach (except for fees related to the Building Permit program), whereby we determined the reasonable
cost of each fee occurrence using staff time to recover the direct cost of staff and pro -rata share of
departmental costs, including indirect costs for City Central Services. The analysis found that services are
currently set below the full cost of providing them. For unit fees under Mechanical, Plumbing, and Electrical
sections the services listed are not typically provided on a single use basis, but often combi ne multitudes
within those sections. As such the suggested fees in those sections were limited in the cost recovery
recommended. It is recommended that the City increase cost recovery for Community Development
services to the levels shown for each fee as detailed in Appendix C. As a result, there would be:
• an increase to 114 fees;
• 38 fees would decrease;
• 50 new fees will be added, and;
• 16 fees would remain as currently set.
In addition to the above referenced fees listed under Community Development, the Building Permit fees
are also provided by this division. For the Building Permit fees, valuation is used as a proxy for measuring
the amount of effort needed to provide services on a case by case basis. This method is an industry standard
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widely used by other California cities and counties to evaluate the cost of providing service. It is generally
understood that the larger and more complex a project is, more time and effort that is required to provide
the service. Project valuation also follows that trend where additional square footage for a building type
increase the total valuation. At the same time difference construction projects carry different costs of
construction per square foot that correspond to more complex construction needs and would also
correspond to additional plan review and inspection time needed by staff. So, by using a combination of
project valuation and historical revenue figures to calculate a cost multiplier and a cost recovery analysis
for historical and anticipated future construction trends, current cost recovery along with variability in
charges due to project type and scale is determined. The result of the cost analysis completed using fee
activity going back to fiscal year 2008 for Building Permits and found that the program is currently operating
at 96% cost recovery. It is recommended that the fees be increased to raise cost recovery to 100%, which
would require a 3.8% increase. Current and new fees are detailed in Appendix C.
The analysis of Planning Services relied primarily upon a standard unit cost build-up approach, whereby we
determined the reasonable cost of each fee occurrence using staff time to recover the direct cost of staff
and the pro-rata share of departmental costs, including indirect costs for City Central Services. Willdan then
compared the calculated full cost against the current fee amount to determine, if charged, whether the
current fee is recovering the costs associated with the requested service. The analysis found that flat rate
fees were regularly set below the full cost of providing the service. It is recommended that the City set most
Planning Division fees at 100% cost recovery for most fees as detailed in Appendix C. As a result, there
would be:
• an increase to 42 fees;
• 6 fees would decrease;
• 12 new fees will be added;
• 10 fees would remain as currently set, and;
• The average fee change would be 24% for flat fee services as detailed in Appendix C.
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Appendix A – Total Allowable Cost to be Recovered
Below are the total department costs for those departments included in the fee study. However, only a
percentage of the total cost is realized as staff does not just work on services related to User Fees, but also
works on an array of other City functions during the operational hours of the City. The amounts listed below
will not reconcile to City budgets as costs that should not be included in overhead for personnel in the
application of determining fully burdened hourly rates were excluded. Examples of these costs are capital,
debt, monetary transfers, passthrough contract costs, and any other costs that are charged directly to the
service requestor.
City of Gilroy - User Fee
Overhead Rate Calculations
Department
Salary and
Benefits
Department
Operations &
Administration
Direct
Overhead %
Indirect
Allocation %
100: CITY CLERK 221,948 54,287 24.5%0.0%
100: COMMUNICATIONS & ENGAGEMENT 169,493 18,500 10.9%0.0%
100: COMMUNITY DEVELOPMENT 3,105,012 66,046 2.1%7.5%
100: COUNCIL 210,303 11,684 5.6%0.0%
100: FINANCE 669,039 32,087 4.8%0.0%
100: FIRE 10,570,948 418,200 4.0%6.8%
100: HUMAN RESOURCES 872,866 401,810 46.0%0.0%
100: POLICE 20,103,405 538,077 2.7%7.4%
100: PUBLIC WORKS 2,559,761 296,340 11.6%6.1%
254: COMMUNITY DEVELOPMENT BLOCK GRANT 81,337 118,433 145.6%3.6%
259: HOUSING TRUST FUND 256,581 4,350 1.7%5.1%
268: REACT TASK FORCE 257,455 - 0.0%6.8%
290: COMMUNITY RECREATION 865,854 120,245 13.9%7.2%
600: FLEET INTERNAL SERVICE FUND 602,298 98,715 16.4%6.9%
651: FACILITIES INTERNAL SERVICE FUND 718,637 787,098 109.5%3.9%
690: INFORMATION TECHNOLOGY INTERNAL SERVICE FUND 674,387 794,523 117.8%4.5%
700: SEWER ENTERPRISE FUND 3,425,441 150,114 4.4%9.5%
720: WATER ENTERPRISE FUND 3,554,536 442,550 12.5%5.7%
11.4.a
Packet Pg. 228 Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction)
22 Comprehensive User Fee Study
Appendix B – Fully Burdened Hou rly Rates
Below are fully burdened hourly rates (FBHR’s) of staff positions that provide for the services detailed in
Appendix C. The FBHR’s were used to determine the full cost of each service. They include the salary and
benefit costs for each position as well as all applicable overhead amounts for each position as determined
by the department they are assigned to. Positions of the same title will have different fully burdened hourly
rates due to the different overhead factors of the departments. Refer previously to Appendix A for
identifying the percentage overheads for each department. For any user fee service request that is outside
the scope of the fees detailed in Appendix C, or for services for which there is no fee currently set, the City
can notify and charge up to the full cost of the personnel, third party, or material cost involved to the service
requestor.
City of Gilroy - User Fee
Fully Burdened Hourly Rate Calculation
Department Position
Fully Burdened Hourly
Rate
Position Rates
100: CITY ADMINISTRATOR Administator - CITY ADMINISTRATOR 224.90
100: CITY ADMINISTRATOR Administator - ECONOMIC DEVELOPMENT MANAGER 133.95
100: CITY ADMINISTRATOR Administator - MANAGEMENT ANALYST (NON-CONFIDENTIAL)100.10
100: CITY ADMINISTRATOR Administator - PROGRAM ADMINISTRATOR 150.19
100: COMMUNITY DEVELOPMENT CD - BUILDING INSPECTOR 1 103.33
100: COMMUNITY DEVELOPMENT CD - BUILDING INSPECTOR 2 121.11
100: COMMUNITY DEVELOPMENT CD - BUILDING OFFICIAL 135.03
100: COMMUNITY DEVELOPMENT CD - CODE ENFORCEMENT OFFICER 116.20
100: COMMUNITY DEVELOPMENT CD - COMMUNITY DEVELOPMENT DIRECTOR 193.73
100: COMMUNITY DEVELOPMENT CD - CUSTOMER SERVICE MANAGER 155.77
100: COMMUNITY DEVELOPMENT CD - DEPUTY FIRE MARSHAL/HAZ MAT SUPERVISOR 149.39
100: COMMUNITY DEVELOPMENT CD - GIS COORDINATOR 109.18
100: COMMUNITY DEVELOPMENT CD - HAZARDOUS MATERIALS INSPECTOR 1 97.30
100: COMMUNITY DEVELOPMENT CD - HAZARDOUS MATERIALS INSPECTOR 2 120.97
100: COMMUNITY DEVELOPMENT CD - MANAGEMENT ANALYST (NON-CONFIDENTIAL)84.06
100: COMMUNITY DEVELOPMENT CD - MANAGEMENT ASSISTANT 93.48
100: COMMUNITY DEVELOPMENT CD - OFFICE ASSISTANT 2 56.26
100: COMMUNITY DEVELOPMENT CD - PERMIT TECHNICIAN 77.61
100: COMMUNITY DEVELOPMENT CD - PLANNER 2 107.28
100: COMMUNITY DEVELOPMENT CD - PLANNING TECHNICIAN 78.58
100: COMMUNITY DEVELOPMENT CD - SENIOR PLANNER 150.27
100: CITY CLERK Clerk - CITY CLERK 140.65
100: COMMUNICATIONS & ENGAGEMENT Communications - COMMUNICATION & ENGAGEMENT MANAGER 123.91
100: COUNCIL Council - COUNCIL MEMBER 19.05
100: COUNCIL Counil - MAYOR 21.90
100: FINANCE Finance - ACCOUNTANT 2 99.45
100: FINANCE Finance - ACCOUNTING ASSISTANT 2 89.19
100: FINANCE Finance - ACCOUNTING TECHNICIAN 2 - PAYROLL 98.17
100: FINANCE Finance - BUDGET/FINANCE ANALYST (NON-CONFIDENTIAL)104.49
100: FINANCE Finance - FINANCE DIRECTOR 201.55
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Packet Pg. 229 Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction)
23 Comprehensive User Fee Study
City of Gilroy - User Fee
Fully Burdened Hourly Rate Calculation
Department Position
Fully Burdened Hourly
Rate
Position Rates
100: FINANCE Finance - FINANCE MANAGER 127.20
100: FINANCE Finance - SENIOR MANAGEMENT ANALYST (CONFIDENTIAL)114.42
100: FIRE Fire - FIRE ADMINISTRATION TECHNICIAN 56.71
100: FIRE Fire - FIRE CAPTAIN 177.39
100: FIRE Fire - FIRE CHIEF 217.57
100: FIRE Fire - FIRE DIVISION CHIEF 213.29
100: FIRE Fire - FIRE ENGINEER 159.49
100: FIRE Fire - FIREFIGHTER 1 128.62
100: FIRE Fire - FIREFIGHTER 2 151.92
100: FIRE Fire - MANAGEMENT ANALYST (NON-CONFIDENTIAL)100.32
100: HUMAN RESOURCES HR - HUMAN RESOURCES ANALYST 130.73
100: HUMAN RESOURCES HR - HUMAN RESOURCES ASSISTANT 2 117.46
100: HUMAN RESOURCES HR - HUMAN RESOURCES DIRECTOR/RISK MANAGER 278.73
100: HUMAN RESOURCES HR - HUMAN RESOURCES TECHNICIAN 1 131.36
100: HUMAN RESOURCES HR - SENIOR HUMAN RESOURCES ANALYST 155.72
100: POLICE Police - COMMUNITY SERVICES OFFICER 77.02
100: POLICE Police - CRIME ANALYSIS/RECORDS/PROP&EVIDENCE MGR 152.81
100: POLICE Police - DETENTION SERVICES OFFICER 118.40
100: POLICE Police - MANAGEMENT ANALYST (NON-CONFIDENTIAL)96.35
100: POLICE Police - MANAGEMENT ASSISTANT 77.15
100: POLICE Police - MULTI-SERVICE OFFICER 125.05
100: POLICE Police - OFFICE ASSISTANT 2 82.27
100: POLICE Police - POLICE CAPTAIN 209.17
100: POLICE Police - POLICE CHIEF 254.17
100: POLICE Police - POLICE CORPORAL 167.89
100: POLICE Police - POLICE OFFICER 153.53
100: POLICE Police - POLICE RECORDS TECHNICIAN 1 70.97
100: POLICE Police - POLICE RECORDS TECHNICIAN 2 74.70
100: POLICE Police - POLICE SERGEANT 187.14
100: POLICE Police - PROPERTY AND EVIDENCE TECHNICIAN 88.14
100: POLICE Police - PUBLIC SAFETY COMMUNICATIONS SUPERVISOR 137.94
100: POLICE Police - PUBLIC SAFETY COMMUNICATOR 110.44
100: POLICE Police - PUBLIC SAFETY COMMUNICATOR TRAINEE 78.89
100: POLICE Police - SENIOR POLICE RECORDS TECHNICIAN 96.07
100: POLICE Police - YOUTH TASK FORCE COORDINATOR 100.66
100: PUBLIC WORKS PW - CITY ENGINEER/TRANSPORTATION ENGINEER 199.86
100: PUBLIC WORKS PW - DEPUTY DIRECTOR OF PUBLIC WORKS - OPS 186.17
100: PUBLIC WORKS PW - ENGINEER 2 134.48
100: PUBLIC WORKS PW - ENGINEERING TECHNICIAN/INSPECTOR 2 95.67
100: PUBLIC WORKS PW - ENGINEERING TECHNICIAN/INSPECTOR 3 96.86
100: PUBLIC WORKS PW - MAINTENANCE WORKER 1 86.61
100: PUBLIC WORKS PW - MAINTENANCE WORKER 2 92.84
100: PUBLIC WORKS PW - MANAGEMENT ANALYST (NON-CONFIDENTIAL)114.67
100: PUBLIC WORKS PW - MANAGEMENT ASSISTANT 98.36
100: PUBLIC WORKS PW - OPERATIONS SERVICES SUPERVISOR 115.18
100: PUBLIC WORKS PW - PUBLIC WORKS DIRECTOR/CITY ENGINEER 215.83
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Packet Pg. 230 Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction)
24 Comprehensive User Fee Study
City of Gilroy - User Fee
Fully Burdened Hourly Rate Calculation
Department Position
Fully Burdened Hourly
Rate
Position Rates
100: PUBLIC WORKS PW - SENIOR CIVIL ENGINEER 162.68
100: PUBLIC WORKS PW - SENIOR MANAGEMENT ANALYST 136.42
254: COMMUNITY DEVELOPMENT BLOCK GRANT Fund 254 - HCD TECHNICIAN 2 208.64
254: COMMUNITY DEVELOPMENT BLOCK GRANT Fund 254 - PROGRAM ADMINISTRATOR 361.59
259: HOUSING TRUST FUND Fund 259 - HCD TECHNICIAN 2 87.59
259: HOUSING TRUST FUND Fund 259 - PROGRAM ADMINISTRATOR 151.81
268: REACT TASK FORCE Fund 268 - POLICE OFFICER 160.56
290: COMMUNITY RECREATION Fund 290 - COMMUNITY COORDINATOR 82.57
290: COMMUNITY RECREATION Fund 290 - RECREATION COORDINATOR 98.98
290: COMMUNITY RECREATION Fund 290 - RECREATION MANAGER 152.78
290: COMMUNITY RECREATION Fund 290 - SENIOR MANAGEMENT ANALYST (CONFIDENTIAL)133.26
600: FLEET INTERNAL SERVICE FUND Fund 600 - EQUIPMENT MECHANIC 95.55
600: FLEET INTERNAL SERVICE FUND Fund 600 - FLEET SUPERINTENDENT 118.53
600: FLEET INTERNAL SERVICE FUND Fund 600 - SENIOR EQUIPMENT MECHANIC 104.70
651: FACILITIES INTERNAL SERVICE FUND Fund 651 - FACILITIES MAINTENANCE SPECIALIST 165.59
651: FACILITIES INTERNAL SERVICE FUND Fund 651 - FACILITIES SUPERINTENDENT 248.34
651: FACILITIES INTERNAL SERVICE FUND Fund 651 - SENIOR CUSTODIAN 171.34
690: INFORMATION TECHNOLOGY INTERNAL SERVICE FUND Fund 690 - INFORMATION TECHNOLOGY APPLICATIONS ANALYST 203.84
690: INFORMATION TECHNOLOGY INTERNAL SERVICE FUND Fund 690 - INFORMATION TECHNOLOGY MANAGER 337.55
690: INFORMATION TECHNOLOGY INTERNAL SERVICE FUND Fund 690 - INFORMATION TECHNOLOGY TECHNICIAN 1 141.84
690: INFORMATION TECHNOLOGY INTERNAL SERVICE FUND Fund 690 - PUBLIC SAFETY SYSTEMS ADMINISTRATOR 260.20
700: SEWER ENTERPRISE FUND Fund 700 - ACCOUNTANT 2 108.46
700: SEWER ENTERPRISE FUND Fund 700 - ACCOUNTING ASSISTANT 1 80.44
700: SEWER ENTERPRISE FUND Fund 700 - ACCOUNTING ASSISTANT 2 89.67
700: SEWER ENTERPRISE FUND Fund 700 - ACCOUNTING TECHNICIAN 2 109.65
700: SEWER ENTERPRISE FUND Fund 700 - ACCOUNTING TECHNICIAN 2 - PAYROLL 107.06
700: SEWER ENTERPRISE FUND Fund 700 - BUDGET/FINANCE ANALYST (NON-CONFIDENTIAL)113.96
700: SEWER ENTERPRISE FUND Fund 700 - CITY ENGINEER/TRANSPORTATION ENGINEER 192.86
700: SEWER ENTERPRISE FUND Fund 700 - DEPUTY DIRECTOR OF PUBLIC WORKS - OPS 179.65
700: SEWER ENTERPRISE FUND Fund 700 - ENGINEER 1 110.21
700: SEWER ENTERPRISE FUND Fund 700 - ENGINEER 2 137.09
700: SEWER ENTERPRISE FUND Fund 700 - ENGINEERING TECHNICIAN/INSPECTOR 3 93.46
700: SEWER ENTERPRISE FUND Fund 700 - FINANCE DIRECTOR 219.81
700: SEWER ENTERPRISE FUND Fund 700 - FINANCE MANAGER 138.72
700: SEWER ENTERPRISE FUND Fund 700 - GIS COORDINATOR 113.68
700: SEWER ENTERPRISE FUND Fund 700 - MAINTENANCE WORKER 1 74.43
700: SEWER ENTERPRISE FUND Fund 700 - MAINTENANCE WORKER 2 87.29
700: SEWER ENTERPRISE FUND Fund 700 - MANAGEMENT ANALYST (NON-CONFIDENTIAL)113.96
700: SEWER ENTERPRISE FUND Fund 700 - MANAGEMENT ASSISTANT 93.71
700: SEWER ENTERPRISE FUND Fund 700 - OPERATIONS SERVICES SUPERVISOR 112.69
700: SEWER ENTERPRISE FUND Fund 700 - PUBLIC WORKS DIRECTOR/CITY ENGINEER 208.27
700: SEWER ENTERPRISE FUND Fund 700 - SENIOR CIVIL ENGINEER 156.98
700: SEWER ENTERPRISE FUND Fund 700 - SENIOR ENVIRONMENTAL ENGINEER 156.98
700: SEWER ENTERPRISE FUND Fund 700 - SENIOR MAINTENANCE WORKER - STREETS 107.02
700: SEWER ENTERPRISE FUND Fund 700 - SENIOR MANAGEMENT ANALYST 131.64
700: SEWER ENTERPRISE FUND Fund 700 - SENIOR MANAGEMENT ANALYST (CONFIDENTIAL)124.79
720: WATER ENTERPRISE FUND Fund 720 - ACCOUNTANT 2 112.84
720: WATER ENTERPRISE FUND Fund 720 - ACCOUNTING ASSISTANT 1 83.68
720: WATER ENTERPRISE FUND Fund 720 - ACCOUNTING ASSISTANT 2 93.28
720: WATER ENTERPRISE FUND Fund 720 - ACCOUNTING TECHNICIAN 2 114.07
720: WATER ENTERPRISE FUND Fund 720 - ACCOUNTING TECHNICIAN 2 - PAYROLL 111.38
720: WATER ENTERPRISE FUND Fund 720 - BUDGET/FINANCE ANALYST (NON-CONFIDENTIAL)118.55
11.4.a
Packet Pg. 231 Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction)
25 Comprehensive User Fee Study
City of Gilroy - User Fee
Fully Burdened Hourly Rate Calculation
Department Position
Fully Burdened Hourly
Rate
Position Rates
720: WATER ENTERPRISE FUND Fund 720 - CITY ENGINEER/TRANSPORTATION ENGINEER 200.64
720: WATER ENTERPRISE FUND Fund 720 - DEPUTY DIRECTOR OF PUBLIC WORKS - OPS 186.89
720: WATER ENTERPRISE FUND Fund 720 - ENGINEER 1 114.65
720: WATER ENTERPRISE FUND Fund 720 - ENGINEER 2 142.61
720: WATER ENTERPRISE FUND Fund 720 - ENGINEERING TECHNICIAN/INSPECTOR 3 97.23
720: WATER ENTERPRISE FUND Fund 720 - FINANCE DIRECTOR 228.67
720: WATER ENTERPRISE FUND Fund 720 - FINANCE MANAGER 144.32
720: WATER ENTERPRISE FUND Fund 720 - GIS COORDINATOR 118.26
720: WATER ENTERPRISE FUND Fund 720 - MAINTENANCE WORKER 1 77.27
720: WATER ENTERPRISE FUND Fund 720 - MAINTENANCE WORKER 2 90.92
720: WATER ENTERPRISE FUND Fund 720 - MANAGEMENT ANALYST (NON-CONFIDENTIAL)118.55
720: WATER ENTERPRISE FUND Fund 720 - MANAGEMENT ASSISTANT 97.49
720: WATER ENTERPRISE FUND Fund 720 - OPERATIONS SERVICES SUPERVISOR 125.35
720: WATER ENTERPRISE FUND Fund 720 - PUBLIC WORKS DIRECTOR/CITY ENGINEER 216.67
720: WATER ENTERPRISE FUND Fund 720 - SENIOR CIVIL ENGINEER 163.31
720: WATER ENTERPRISE FUND Fund 720 - SENIOR MAINTENANCE WORKER - WATER 109.91
720: WATER ENTERPRISE FUND Fund 720 - SENIOR MANAGEMENT ANALYST 136.95
720: WATER ENTERPRISE FUND Fund 720 - SENIOR MANAGEMENT ANALYST (CONFIDENTIAL)129.82
11.4.a
Packet Pg. 232 Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction)
26 Comprehensive User Fee Study
Appendix C – Cost Recovery Analysis
The following tables provide the results of the analysis, resulting full cost recovery amount, and
recommended fees. For fees in which the full cost, existing fee and suggested fee is listed as “NA,” the
amount or percentage was not calculable based on cost data or variable fee structure. This is most common
when either the current or the suggested fee includes a variable component that is not c omparable on a
one to one basis, a full cost was not calculated (for penalties, fines, and facility use), or when there is not a
current fee amount to compare against.
11.4.a
Packet Pg. 233 Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction)
General Administration# Description Current Fee/Charge Unit Notes Full CostCurrent Subsidy %Recommended Fee Fee ΔMiscellaneous City Code Section 7.1.(a)1 Letter of Verification, Certification & ClearanceDepartment(s)/Division(s) hourly rates plus direct costNA NADepartment(s)/Division(s) hourly rates plus direct cost$02 Notice of Intent to Circulate Filing Fee 200.00 (EC 9202(b)) NA NA $200.00$03 ResearchDepartment(s)/Division(s) hourly rates plus direct costminimum ½ hourNA NADepartment(s)/Division(s) hourly rates plus direct cost$04 Special Services/InspectionsDepartment(s)/Division(s) hourly rates plus direct costAfter Hours: Calculated Rate at time and a halfminimum 3 hours if called back after hoursNA NADepartment(s)/Division(s) hourly rates plus direct costAfter Hours: Calculated Rate at time and a half$05 Notary FeeNewMaximum fees established by GC 8211 NA NA Maximum NAReproduction Fees (City Code Section 7.1. (a), 17A.29 & Res. 2008‐55)6Agendas/Agenda Packet/Minutes of all Policy Body Meetings (City‐wide) 0.01Per page + postageNA NA $0.01$07Meeting Audio and Video Recordings (City‐wide)Direct Costs of Medium UsedNA NA Direct Costs of Medium Used $08Audio and Video Recording TranscriptionDepartment(s)/Division(s) hourly rates plus direct costNA NADepartment(s)/Division(s) hourly rates plus direct cost$09Fair Political Practices Commission (FPPC) Filings Copies0.10Per PageNA NA $0.10$010 Photo Copies (City‐wide)0.10Per page + postageNA NA $0.10$011Other reproductions onto USBDirect Costs of Medium UsedNA NA Direct Costs of Medium Used $012Microfilm ReproductionNewNA NA Actual Cost$0Subpoena13 Subpoena Duces Tecum ‐ standard page0.10per pageActual cost for oversize plus personnel costs and postageNA NA $0.10$014 Subpoena Duces Tecum ‐ microfilm0.20per microfilmActual cost for oversize plus personnel costs and postageVariable NA Actual CostNA15 Subpoena Duces Tecum ‐ personnel cost6.00per 1/4 hr plus postage costs$17.74 66% $15.85$1016 City Employees Subpoenaed as Witness 275.00per day minimum depositGovernment Code Sections 68096.1 and 68097.2. Actual cost to be determined. If less than min deposit, difference to be refunded, if more than min deposit, additional expense to be billedNA NA $275.00$0City of Gilroy27Comprehensive User Fee Study11.4.aPacket Pg. 234Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction)
Finance# DescriptionCurrent Fee/Charge Unit NotesCodeFull CostCurrent Subsidy %Recommended Fee Fee ΔCity Code Section 7.1. (a)) (City Code Chapter 13, Article IV and City Code Section 16A.6)(City Code Section 13.39)1Change (other than location of ownership) Renewal/Reprint15.00$44.59 66%$44.00$29 2Commercial/Industrial ‐ No Fire/Bldg Inspections Required 120.00$183.61 35%$183.00$63 3 Commercial/Industrial ‐ Only Fire Inspection Required 250.00$439.90 43%$439.00$189 4Commercial/Industrial ‐ Fire & Building Inspections Required370.00$454.10 19%$454.00$84 5 Home Occupation70.00$161.53 57%$161.00$91 6 Salon Space/Out‐of‐town business service address 30.00$30.32 1%$30.00$0 7 Pretreatment/CUPA Review40.00$24.19 ‐65%$24.00($16)8 Police Regulated Business Review190.00If fee is not covered under the cost of permit$255.90 26%$255.00$65 9 a.New businesses will pay on esƟmated gross receipts for partial year and first full year's license. b.Fees for subsequent years will be based upon annual gross receipts as follows: (Each branch location will be reported separately)City Code Sections 13.43 and 13.44(a)$ 0 ‐ $ 40,000 40.00 AnnuallyNA NA $40.00 $0 $ 40,001 ‐ $ 140,00080.00AnnuallyNA NA$80.00$0 $140,001 ‐ $ 240,000120.00AnnuallyNA NA$120.00$0 $240,001 ‐ $ 340,000160.00AnnuallyNA NA$160.00$0 $340,001 ‐ $ 540,000200.00AnnuallyNA NA$200.00$0 $540,001 ‐ $ 740,000240.00AnnuallyNA NA$240.00$0 $740,001 ‐ $ 940,000280.00AnnuallyNA NA$280.00$0 $940,001 ‐ $1,140,000320.00AnnuallyAdditional $20 per year for each $200,000, or any portion thereof.NA NA$320.00$0 $ 17,740,001 or more2,000.00AnnuallyNA NA$2,000.00$0 100 ‐ 20.00AnnuallyNA NA$0.00$0 3 ‐ 540.00AnnuallyNA NA$40.00$0 6 ‐ 2080.00AnnuallyNA NA$80.00$0 21 ‐ 40120.00AnnuallyNA NA$120.00$0 41 ‐ 60160.00AnnuallyNA NA$160.00$0 61 ‐ 80200.00AnnuallyNA NA$200.00$0 81 ‐ 100240.00AnnuallyNA NA$240.00$0 101 ‐ Over280.00AnnuallyNA NA$280.00$0 Licenses due January 1st of each year Business License Regulatory Review/Inspection FeesBusiness Licenses ‐ New/moved/change in location or ownershipRetail, wholesale business, manufacturing, food processors with a fixed place of business within the city limits.Apartments (at one location or address)Number of UnitsCity of Gilroy28Comprehensive User Fee Study11.4.aPacket Pg. 235Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction)
Finance# DescriptionCurrent Fee/Charge Unit NotesCodeFull CostCurrent Subsidy %Recommended Fee Fee Δ(City Code Section 13.40‐42)11Circus, Menagerie, Bullfight, Amusement Ride, Carnival, Fair, etc.200.00 For first Day$150.00 for each additional day(City Code Section 13.44(c)) NA NA $200.00 $0 12 Contractors/Sub‐Contractors 90.00 Semi‐Annual NA NA $90.00 $0 13 Contractors/Sub‐Contractors 150.00 AnnualNA NA $150.00 $0 14 Motor Vehicles 50.00 Annually(delivery trucks, taxicabs*, tow trucks*, ambulances, etc.)*Note: Also needs permit(City Code Section 13.42) NA NA $50.00 $0 15Non‐Professional business‐type services(primary service function)50.00AnnuallyNA NA$50.00$0 16 Seasonal Sales Stands 50.00(Christmas trees, fireworks, pumpkin patch, etc.) (City Code Section 13.44)NA NA$50.00$0 17 Transient Business License100.00Annually Also needs permitNA NA$100.00$0 18Transient Business License ‐ (Peddlers, Solicitors, Vendors, Vehicle, Wagon, Pushcart)50.00MonthlyNA NA$50.00$0 19 Vending/Music/Amusement Machines10.00per machine/ annually(City Code Section 13.40)NA NA$10.00$0 20 ACPP (Abandoned Cart Prevention Plan) Review Fee 125.00per plan(City Code Section 19A.20)$116.20 ‐8%$116.00($9)21 Abandoned Shopping Carts115.00per cart(City Code Section 19A.11)$153.49 25%$153.00$38 22 Downtown Vacant Building Registration120.00annual registration(Ordinance No. 2012‐02)$87.15 ‐38%$87.00($33)23 Delinquent Account ReceivablesFinance/Utility Division hourly rate + direct costs(City Code Section 7.1. (a))NA NAFinance/Utility Division hourly rate + direct costs$0 24 Interest Rate1.5%per month(City Code Section 2.43(f))NA NA$0.02$0 25 Refuse Collection Lien ProcessAdministration Fee based on total cost to City(City Code Section 12.23‐10)NA NAAdministration Fee based on total cost to City$0 26 Returned Check Fee25.00first check, $35.00 subsequent checkstriple the amount of check if under California Civil “mailed by certified mail.”(California Civil Code Section 1719(a)) NA NA$25.00$0 27 Garage Sale License0.00per event 1 event allowed per cal. Year(City Code Section 13.44 (d))$11.19 100% $0.00$0 # DescriptionCurrent Fee/Charge Unit NotesCity CodeFull CostCurrent Subsidy %Recommended Fee Fee Δ28 Deposits ‐ Residential50.00(City Code Chapter 19, Article VI)NA NA$200.00$150 29 Deposits ‐ Commercial*75.00/250.00/Amount determined by Finance Dept.(City Code Chapter 19, Article VI)NA NA$175/$3,500/ Amount determined by Finance Dept.$100 30 Deposits ‐ Per Apartment Unit20.00(City Code Chapter 19, Article VI)NA NA$160.00$140 Licenses due July 1st of each year Miscellaneous FeesSanitary Sewer ServiceCity of Gilroy29Comprehensive User Fee Study11.4.aPacket Pg. 236Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction)
Finance# DescriptionCurrent Fee/Charge Unit NotesCodeFull CostCurrent Subsidy %Recommended Fee Fee Δ31 Sewer Service Initiation Fee10.00(City Code Chapter 19, Article VI)$18.66 46%$18.00$8 # DescriptionCurrent Fee/Charge Unit NotesCodeFull CostCurrent Subsidy %Recommended Fee Fee Δ32 Deposits ‐ Residential50.00(City Code Section 27.42)NA NA$200.00$150 33 Deposits ‐ Commercial*75.00/250.00/or higher amount determined by Finance Dept.(City Code Section 27.42)NA NA$175/$3,500/ Amount determined by Finance Dept.$100 34 Deposits ‐ Per Apartment Unit20.00(City Code Section 27.42)NA NA$160.00$140 35 Service Charge ‐ Backflow Inspection 37.00per device$58.51 37%$58.00$21 36 Service Charge ‐ Construction Water3.00f.f + $182.73/acreNA NA$3.00$0 37 Delinquent Services70.00NA NA$50.00($20)38 Delinquent Services ‐ Over‐time15.00additionalNA NA$15.00$0 39 Delinquent Services ‐ Call‐out130.00additionalNA NA$150.00$20 40 Delinquent Services ‐ Locking Services Required 45.00additionalNA NA$45.00$0 41 Delinquent Services ‐ Locking Services Broken 20.00additionalNA NA$20.00$0 42 Removal 60.00$77.52 23%$77.00$17 43 Test ‐ 1 ½” and over75.00$100.25 25%$100.00$25 44 Test ‐ ¾” to 1”140.00$181.83 23%$181.00$41 45 Deposit1,000.00per meterNA NA$1,000.00$0 46 Usage65.00 +$4.65/1,000 galsHillside Pressure Rate per 1,000 gals. Zone 2 $5.40 Zone 3 $6.16NA NA65.00 +$4.65/1,000 gals $0 47 Water Meter ‐ 5/8 x ¾ inch674.67Basic Cost ‐ $417.48 + Angle Stop ‐ $77.81 + Corporation Stop & Tap ‐ $179.38$714.55 6%$714.00$39 48 Water Meter ‐ 1 inch 744.50Basic Cost ‐ $487.31 + Angle Stop ‐ $77.81 + Corporation Stop & Tap ‐ $179.39$820.40 9%$820.00$76 49 Water Meter ‐ 1 ½ inch1,291.03Basic Cost ‐ $889.13 + Angle Stop ‐ $167.87 + Corporation Stop & Tap ‐ $234.03$1,436.04 10%$1,436.00$145 50 Water Meter ‐ 2 inch 1,626.11Basic Cost ‐ $1,111.42 + Angle Stop ‐ $213.97 + Corporation Stop & Tap ‐ $300.72$1,900.38 14%$1,900.00$274 51 Water Meter ‐ 2 inch Omni T21,386.34$1,434.26 3%$1,434.00$48 52 Water Meter ‐ 3 inch Omni T21,605.15$2,417.47 34%$2,417.00$812 53 Water Meter ‐ 4 inch Omni T22,823.49$2,806.84 ‐1%$2,806.00($17)54 Water Meter ‐ 3 inch Omni C22,074.64$2,417.47 14%$2,417.00$342 55 Water Meter ‐ 4 inch Omni C23,368.76$3,900.48 14%$3,900.00$531 56 Water Meter ‐ 6 inch Omni C25,587.26$6,467.10 14%$6,467.00$880 57 Water Meter ‐ 8 inch Omni C2New$10,293.02 NA$10,293.00NA58 Water Meter ‐ 3 inch Fire Hydrant Meter971.29$1,500.47 35%$1,500.00$529 59 Water Meter ‐ Flange to 1” Meter Adapter75.00$75.00 0%$75.00$0 60 Water Meter ‐ Special Order processing fee 40.00$54.95 27%$54.00$14 MeterPortable Fire Hydrant MeterWater Meters***Water ServiceCity of Gilroy30Comprehensive User Fee Study11.4.aPacket Pg. 237Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction)
Finance# DescriptionCurrent Fee/Charge Unit NotesCodeFull CostCurrent Subsidy %Recommended Fee Fee Δ61 Water Tanker Truck20.00First 6,000 gals plus $4.65/1,000 gals afterNA NA$20.00$0 62 Water Service Initiation Fee ‐ Over‐time50.00$64.11 22%$64.00$14 63 Water Service Initiation Fee 15.00additional$22.73 34%$22.00$7 64 Water Service Initiation Fee ‐ Call‐out130.00additional$227.29 43%$227.00$97 65 Credit Card Processing Fee (pass‐through) Non‐Utility Newper transactionThis is a pass‐through cost from merchant processor.NA NA3%NA66 Credit Card Processing Fee (pass‐through) Utility Newper transactionThis is a pass‐through cost from merchant processor.NA NA$3.50NA67 ACH/e‐checkNewper transactionThis is a pass‐through cost from merchant processor.NA NA$0.75NA* Commercial accounts paying the higher sewer base amount will pay $250.00, or a higher amount determined by Finance Department.** If applications for both are submitted and processed at the same time, the fee will be $ 405.00 + 40.50 = $ 445.50.*** Rates for larger meters will be established by the Finance Department, as necessaryCity of Gilroy31Comprehensive User Fee Study11.4.aPacket Pg. 238Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction)
South County Regional Wastewater Authority# Description Current Fee/Charge Unit Notes Code Full CostCurrent Subsidy %Recommended FeeFee Δ1 Board Agendas/Packet 0.01 per page plus mailing NA NA $0.01 $02 Pool Drain Inspection80.00$183.95 57% $183.00 $103(Authority City Code Section 19.106(b))3 Inspection FeeDivision hourly rateActivities shall include time for inspection, monitoring, travel, reports, research, plus actual cost consulting, paperwork and any office time that relates to the industrial user.NA NADivision hourly rate$04 Re‐Inspection FeeNewper hour 1/2 hour minimum$214.58 NA $214.00 NA5 Septage Hauler Treatment Service Fees 0.15per gal(Ord. 93‐2)NA NA $0.15 $06 Reproduction0.10per page$6.05 98% $0.10 $07 Special Event Fee‐ Plan Check Fee*125.00$149.39 16% $149.00 $248 Special Event Fee‐ Event Fee*125.00per hourwith 1 hour minimum + 50% after hours and travel time$195.67 36% $171.00 $469 Surcharge ‐ BOD in excess of 300 mg/l 0.95per lb of BODNA NA $0.95 $010 Surcharge ‐ TSS in excess of 300 mg/l 0.23per lb of TSSNA NA $0.23 $011 Pretreatment Final InspectionDivision hourly rate per hour$135.18 NA $135.00 NA12 Pretreatment Plan‐check Division hourly rate per hour$135.18 NA $135.00 NA13 Pretreatment re‐inspection Division hourly rate1/2 hour minimum$135.18 NA $135.00 NA*The number of inspectors necessary to monitor an event shall be determined by the Program Administrator. Factors to be considered shall be the number of vendors and area to be monitored.FeesPretreatment Fees City of Gilroy32Comprehensive User Fee Study11.4.aPacket Pg. 239Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction)
Public Works# DescriptionCurrent Fee/Charge Unit NotesFull CostCurrent Subsidy %Recommended Fee Fee Δ1Subdivision Map Check(A) ‐ Final Map1,755.00 +$15.70/lot NA NA$8,000 Deposit + $220/hrNA2Subdivision Map Check(A) ‐ Parcel Map2,035.00 +$630.00/lot NA NA$5,000 Deposit + $220/hrNA3Subdivision Map Check(A) ‐ Re‐assessment Map1,710.00+$630.00/lot plus customer assessment consultantNA NA$5,000 Deposit + $220/hrNA4 Certificate of Compliance (Lot Line Adjustment, Lot Merger) 500.00per certificateNA NA$2,500 Deposit + $220/hrNA5 Community Facilities District Formation Fee5,000.00NA NA$6,500 Deposit NA6Encroachment Permit *based on total cost of public right‐of‐way improvements360.00Plus % cost of the improvement constructed in ROW$401.13 10% $401.00$41 7 $0.00 ‐ $100,00012.60%NA NA12.60%$0 8 $100,001 ‐ $200,00010.50%NA NA10.50%$0 9 Over $200,0008.40%NA NA8.40%$0 10 Re‐submittal Review after 3 submittalsDivision(s) hourly rate2 hour minimumNA NADivision(s) hourly rate $0 11 Annual Utility Encroachment Permit5000 + 200 for each base permitAnnuallyAllows staff to issue one annual permit and then bill utility company monthly for additional individual permits$8,134.05 NA$7,500.00$2,500 12 Additional VisitNewNA NAFBHRNA13 Community Event Banner Fee200.00$657.85 70% $657.00$457 14 Oversize Transportation Permits ‐ Single Trip16.00NA NA$16.00$0 15 Oversize Transportation Permits ‐ Annual Permit90.00NA NA$90.00$0 16 Oversize Transportation Permits ‐ Repetitive Permit 90.00NA NA$90.00$0 17 Impact Fee Deferral 285.00+ $25.00/additional lotsame address plus Expungement Fee $180.00$411.87 31%$411 + $32.00/additional lotsame address plus Expungement Fee $234.00$126 Special Public Works ServicesCity of Gilroy33Comprehensive User Fee Study11.4.aPacket Pg. 240Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction)
Public Works# DescriptionCurrent Fee/Charge Unit NotesFull CostCurrent Subsidy %Recommended Fee Fee ΔSpecial Public Works Services18Special Cost Schedules, Agreements, Right of Way Reviews and other Misc Services185.00per hourNA NACity Attorney Hourly Rate$0 19Special Staff Analysis(A)Division(s) hourly rate for public works engineering review and inspection services on specified applications applicable in Resolution 2014‐14Deposit RequiredNA NADivision(s) hourly rate for public works engineering review and inspection services on specified applications applicable in Resolution 2014‐14$0 20 Special Legal ReviewCity Attorney Hourly RateDeposit RequiredNA NACity Attorney Hourly Rate$0 21 Curb Painting/Signage RequestNewRed/Green/Yellow/White Parking Restriction Upon Request by Property Owner$467.74 NA$467.00NA22 Driveway Red TippingNewRed Tipping Driveway for Visibility$357.53 NA$357.00NA# DescriptionCurrent Fee/Charge Unit NotesFull CostCurrent Subsidy %Recommended Fee Fee Δ23Additional plan review required by changes, additions or revisions to approved plans Division(s) hourly rate2 hour minimumNA NADivision(s) hourly rate $0 24 Re‐inspection fee and fee for inspections not shown 125.00per hour Minimum charge‐one half hour$162.68 23% $162.00$37 25Inspections outside of normal business hoursImprovement Plan Check and Inspection Fees475.00+ 160.00/hour after 3 hours$435.86 ‐9%$435.00($40)*At time of Improvement Plan/Final Map submittal 40% of fee is due for Plan Check. Remainder 60% due prior to submittal of Final Map for Council approval# DescriptionCurrent Fee/Charge Unit NotesFull CostCurrent Subsidy %Recommended Fee Fee Δ26Stormwater Post Construction BMP Initial Setup Fee ‐ Base Fee and First BMPNew$504.30 NA$504.00NA27Stormwater Post Construction BMP Initial Setup Fee ‐ Additional BMPNew$100.86 NA$100.00NAImprovement Plan Check and Inspection Fees(A) StormwaterCity of Gilroy34Comprehensive User Fee Study11.4.aPacket Pg. 241Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction)
Public Works# DescriptionCurrent Fee/Charge Unit NotesFull CostCurrent Subsidy %Recommended Fee Fee ΔSpecial Public Works Services28Stormwater Postconstruction BMP Annual Administration and Monitoring Fee ‐ Base Fee and First BMPNew$413.98 NA$413.00NA29Stormwater Postconstruction BMP Annual Administration and Monitoring Fee ‐ Additional BMPNew$31.84 NA$31.00NA30Stormwater Postconstruction BMP Annual Administration and Monitoring Delinquent Fee (per month of delinquency)New$58.38 NA$58.00NA# DescriptionCurrent Fee/Charge Unit NotesFull CostCurrent Subsidy %Recommended Fee Fee ΔSewer Mains ‐ including manhole and other pertinences Developer responsibility is up to and including 12" mains31 6" Main ‐ Full PipeN/Aper LFNA NANA$0 32 6" Main ‐ Half Pipe73.00per LFNA NA$73.00$0 33 8" Main ‐ Full PipeN/Aper LFNA NANA$0 34 8" Main ‐ Half Pipe75.00per LFNA NA$75.00$0 35 10" Main ‐ Full PipeN/Aper LFNA NANA$0 36 10" Main ‐ Half Pipe81.00per LFNA NA$81.00$0 37 12" Main ‐ Full Pipe166.00per LFNA NA$166.00$0 38 12" Main ‐ Half Pipe83.00per LFNA NA$83.00$0 39 15" Main ‐ Full Pipe174.00per LFNA NA$174.00$0 40 15" Main ‐ Half Pipe87.00per LFNA NA$87.00$0 41 18" Main ‐ Full Pipe186.00per LFNA NA$186.00$0 42 18" Main ‐ Half Pipe93.00per LFNA NA$93.00$0 43 21" Main ‐ Full Pipe204.00per LFNA NA$204.00$0 44 21" Main ‐ Half Pipe102.00per LFNA NA$102.00$0 45 24" Main ‐ Full Pipe211.00per LFNA NA$211.00$0 46 24" Main ‐ Half Pipe106.00per LFNA NA$106.00$0 47 27" Main ‐ Full Pipe244.00per LFNA NA$244.00$0 48 27" Main ‐ Half Pipe122.00per LFNA NA$122.00$0 49 30" Main ‐ Full Pipe287.00per LFNA NA$287.00$0 50 30" Main ‐ Half Pipe144.00per LFNA NA$144.00$0 51 33" Main ‐ Full Pipe315.00per LFNA NA$315.00$0 52 33" Main ‐ Half Pipe158.00per LFNA NA$158.00$0 53 36" Main ‐ Full Pipe356.00per LFNA NA$356.00$0 54 36" Main ‐ Half Pipe178.00per LFNA NA$178.00$0 55 39" Main ‐ Full Pipe423.00per LFNA NA$423.00$0 56 39" Main ‐ Half Pipe212.00per LFNA NA$212.00$0 ReimbursementsCity of Gilroy35Comprehensive User Fee Study11.4.aPacket Pg. 242Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction)
Public Works# DescriptionCurrent Fee/Charge Unit NotesFull CostCurrent Subsidy %Recommended Fee Fee ΔSpecial Public Works Services57 42" Main ‐ Full Pipe529.00per LFNA NA$529.00$0 58 42" Main ‐ Half Pipe265.00per LFNA NA$265.00$0 Storm Mains ‐ including manholes, catch basins and other pertinences Developer responsibility is up to and including 24" mains59 18" Main RCP ‐ Full PipeN/Aper LFNA NANA$0 60 18" Main RCP ‐ Half Pipe63.00per LFNA NA$63.00$0 61 21" Main RCP ‐ Full PipeN/Aper LFNA NANA$0 62 21" Main RCP ‐ Half Pipe69.00per LFNA NA$69.00$0 63 24" Main RCP ‐ Full Pipe140.00per LFNA NA$140.00$0 64 24" Main RCP ‐ Half Pipe70.00per LFNA NA$70.00$0 65 27" Main RCP ‐ Full Pipe164.00per LFNA NA$164.00$0 66 27" Main RCP ‐ Half Pipe82.00per LFNA NA$82.00$0 67 30" Main RCP ‐ Full Pipe177.00per LFNA NA$177.00$0 68 30" Main RCP ‐ Half Pipe86.00per LFNA NA$86.00$0 69 33" Main RCP ‐ Full Pipe182.00per LFNA NA$182.00$0 70 33" Main RCP ‐ Half Pipe91.00per LFNA NA$91.00$0 71 36" Main RCP ‐ Full Pipe189.00per LFNA NA$189.00$0 72 36" Main RCP ‐ Half Pipe95.00per LFNA NA$95.00$0 73 42" Main RCP ‐ Full Pipe197.00per LFNA NA$197.00$0 74 42" Main RCP ‐ Half Pipe99.00per LFNA NA$99.00$0 75 48" Main RCP ‐ Full Pipe233.00per LFNA NA$233.00$0 76 48" Main RCP ‐ Half Pipe117.00per LFNA NA$117.00$0 77 54" Main RCP ‐ Full Pipe273.00per LFNA NA$273.00$0 78 54" Main RCP ‐ Half Pipe137.00per LFNA NA$137.00$0 79 60" Main RCP ‐ Full Pipe315.00per LFNA NA$315.00$0 80 60" Main RCP ‐ Half Pipe158.00per LFNA NA$158.00$0 81 66" Main RCP ‐ Full Pipe357.00per LFNA NA$357.00$0 82 66" Main RCP ‐ Half Pipe179.00per LFNA NA$179.00$0 83 72" Main RCP ‐ Full Pipe399.00per LFNA NA$399.00$0 84 72" Main RCP ‐ Half Pipe200.00per LFNA NA$200.00$0 85 78" Main RCP ‐ Full Pipe431.00per LFNA NA$431.00$0 86 78" Main RCP ‐ Half Pipe216.00per LFNA NA$216.00$0 87 84" Main RCP ‐ Full Pipe461.00per LFNA NA$461.00$0 88 84" Main RCP ‐ Half Pipe231.00per LFNA NA$231.00$0 89 90" Main RCP ‐ Full Pipe492.00per LFNA NA$492.00$0 90 90" Main RCP ‐ Half Pipe246.00per LFNA NA$246.00$0 91 96" Main RCP ‐ Full Pipe522.00per LFNA NA$522.00$0 City of Gilroy36Comprehensive User Fee Study11.4.aPacket Pg. 243Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction)
Public Works# DescriptionCurrent Fee/Charge Unit NotesFull CostCurrent Subsidy %Recommended Fee Fee ΔSpecial Public Works Services92 96" Main RCP ‐ Half Pipe261.00per LFNA NA$261.00$0 93 TrafficIn accordance with City's reimbursement policyNA NAIn accordance with City's reimbursement policy$0 Water Mains ‐ including fire hydrants, valves, valve boxes and other pertinences Developer responsibility is up to and including 12" mains94 6" Main ‐ Full PipeN/Aper LFNA NANA$0 95 6" Main ‐ Half Pipe39.00per LFNA NA$39.00$0 96 8" Main ‐ Full PipeN/Aper LFNA NANA$0 97 8" Main ‐ Half Pipe41.00per LFNA NA$41.00$0 98 10" Main ‐ Full PipeN/Aper LFNA NANA$0 99 10" Main ‐ Half Pipe47.00per LFNA NA$47.00$0 100 12" Main ‐ Full Pipe104.00per LFNA NA$104.00$0 101 12" Main ‐ Half Pipe52.00per LFNA NA$52.00$0 102 14" Main ‐ Full Pipe114.00per LFNA NA$114.00$0 103 14" Main ‐ Half Pipe57.00per LFNA NA$57.00$0 104 16" Main ‐ Full Pipe124.00per LFNA NA$124.00$0 105 16" Main ‐ Half Pipe62.00per LFNA NA$62.00$0 106 18" Main ‐ Full Pipe135.00per LFNA NA$135.00$0 107 18" Main ‐ Half Pipe68.00per LFNA NA$68.00$0 108 20" Main ‐ Full Pipe151.00per LFNA NA$151.00$0 109 20" Main ‐ Half Pipe76.00per LFNA NA$76.00$0 110 24" Main ‐ Full Pipe164.00per LFNA NA$164.00$0 111 24" Main ‐ Half Pipe82.00per LFNA NA$82.00$0 112 30" Main ‐ Full Pipe182.00per LFNA NA$182.00$0 113 30" Main ‐ Half Pipe91.00per LFNA NA$91.00$0 114 36" Main ‐ Full Pipe211.00per LFNA NA$211.00$0 115 36" Main ‐ Half Pipe106.00per LFNA NA$106.00$0 Notes: The Half Pipe schedule is used to determine the front footage reimbursement to former developers for infrastructure previously installed along the front footage of the development.The Full Pipe schedule is used to determine the oversizing reimbursement to the developer for installing water, sewer, and storm main extensions to sizes required by each master plan that are greater than the sizes required by the development. The oversized portion is the difference between the master planned size for the main and the greater of the main size required by the development or the developer’s minimum responsibility for each main.(A) Reflects fee increases to offset the City’s expenditures for the city’s High Speed Rail Master Plan effort. *For any user fee service request that is outside the scope, or for services for which there is no fee currently set, the City can charge up to the full cost of the FBHR for personnel involved.City of Gilroy37Comprehensive User Fee Study11.4.aPacket Pg. 244Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction)
Recreation# Description Current Fee/Charge Unit Notes Full CostCurrent Subsidy %Recommended Fee Fee ΔFacility Fees (City Code Section 18.9)Christmas Hill Park Outdoor Sites1Mulberry (East or West) ‐ A*0.00Per Day$218.61 100% $0.00 $0 2Mulberry (East or West) ‐ B*100.00Per Day$226.03 56% $165.00 $65 3Mulberry (East or West) ‐ C*150.00Per Day$226.03 34% $200.00 $50 4Mulberry (East or West) ‐ D*200.00Per Day$226.03 12% $226.00 $26 5Mulberry (East or West) ‐ Deposit100.00Per DayNA NA $135.00 $35 6Mulberry (Total) ‐ A*0.00Per Day$305.22 100% $0.00 $0 7Mulberry (Total) ‐ B*200.00Per Day$312.63 36% $208.00 $8 8Mulberry (Total) ‐ C*250.00Per Day$312.63 20% $260.00 $10 9Mulberry (Total) ‐ D*300.00Per Day$312.63 4% $312.00 $12 10Mulberry (Total) ‐ Deposit100.00Per DayNA NA $135.00 $35 11Sycamore (No Lights) ‐ A*0.00Per Day$188.97 100% $0.00 $0 12Sycamore (No Lights) ‐ B*55.00Per Day$196.38 72% $69.00 $14 13Sycamore (No Lights) ‐ C*105.00Per Day$196.38 47% $132.00 $27 14Sycamore (No Lights) ‐ D*155.00Per Day$196.38 21% $196.00 $41 15Sycamore (No Lights) ‐ Deposit100.00Per DayNA NA $135.00 $35 16Amphitheater ‐ A*0.00Per Day$290.83 100% $0.00 $0 17Amphitheater ‐ B*155.00Per Day$298.24 48% $181.00 $26 18Amphitheater ‐ C*205.00Per Day$298.24 31% $239.00 $34 19Amphitheater ‐ D*255.00Per Day$298.24 14% $298.00 $43 20Amphitheater ‐ Deposit100.00Per DayNANA$135.00$35 21Walnut ‐ A*0.00Per Day$188.97 100% $0.00$0 22Walnut ‐ B*55.00Per Day$196.38 72% $69.00$14 23Walnut ‐ C*105.00Per Day$196.38 47% $132.00$27 24Walnut ‐ D*155.00Per Day$196.38 21% $196.00$41 25Walnut ‐ Deposit100.00Per DayNANA$135.00$35 26Christmas Hill Ranch Site not including TEEC Bldg. ‐ A*0.00Per Day$605.54 100% $0.00$0 27Christmas Hill Ranch Site not including TEEC Bldg. ‐ B*250.00Per Day$612.95 59% $437.00$187 28Christmas Hill Ranch Site not including TEEC Bldg. ‐ C*300.00Per Day$612.95 51% $524.00$224 29Christmas Hill Ranch Site not including TEEC Bldg. ‐ D*350.00Per Day$612.95 43% $612.00$262 30Christmas Hill Ranch Site not including TEEC Bldg. ‐ Deposit500.00Per DayNANA$500.00$0 31Christmas Hill Park Side ‐ A*NewPer Day$812.12 NA$0.00NA32Christmas Hill Park Side ‐ B*NewPer Day$819.53 NA$585.00NA33Christmas Hill Park Side ‐ C*NewPer Day$819.53 NA$702.00NAFacilities & ParksCity of Gilroy38Comprehensive User Fee Study11.4.aPacket Pg. 245Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction)
Recreation# Description Current Fee/Charge Unit Notes Full CostCurrent Subsidy %Recommended Fee Fee ΔFacilities & Parks34Christmas Hill Park Side ‐ D*NewPer Day$819.53 NA $819.00 NA35Christmas Hill Park Side ‐ DepositNewPer DayNA NA $500.00 NA36Entire Christmas Hill Including Ranch Site (Not including TEEC Bldg.) ‐ A*0.00Per Day$2,038.13 100% $0.00 $0 37Entire Christmas Hill Including Ranch Site (Not including TEEC Bldg.) ‐ B*750.00Per Day$2,067.77 64% $1,500.00 $750 38Entire Christmas Hill Including Ranch Site (Not including TEEC Bldg.) ‐ C*1,000.00Per Day$2,067.77 52% $1,750.00 $750 39Entire Christmas Hill Including Ranch Site (Not including TEEC Bldg.) ‐ D*1,250.00Per Day$2,067.77 40% $2,067.00 $817 40Entire Christmas Hill Including Ranch Site (Not including TEEC Bldg.) ‐ Deposit750.00Per DayNA NA $750.00 $0 Las Animas Veteran’s Park Outdoor Sites41Lakeside ‐ A*0.00Per DayNo Music allowed $203.79 100% $0.00 $0 42Lakeside ‐ B*100.00Per DayNo Music allowed $211.20 53% $105.00 $5 43Lakeside ‐ C*150.00Per DayNo Music allowed $211.20 29% $158.00 $8 44Lakeside ‐ D*200.00Per DayNo Music allowed $211.20 5% $211.00 $11 45Lakeside ‐ Deposit100.00Per DayNo Music allowed NA NA $135.00 $35 46The Oaks ‐ A*0.00Per DayNo lights/no music allowed $218.61 100% $0.00 $0 47The Oaks ‐ B*120.00Per DayNo lights/no music allowed $226.03 47% $165.00 $45 48The Oaks ‐ C*170.00Per DayNo lights/no music allowed $226.03 25% $200.00 $30 49The Oaks ‐ D*220.00Per DayNo lights/no music allowed $226.03 3% $226.00 $6 50The Oaks ‐ Deposit100.00Per DayNo lights/no music allowed NA NA $135.00 $35 51Park Site Reservation Cancellation FeeNewPlus Actual Payment Processing Cost$64.31 NA $64.00 NAOther Park Amenities52Bounce House Special Permit Fee at Non‐Reservable Picnic Sites ‐ A*0.00$50.71 100% $0.00$0 53Bounce House Special Permit Fee at Non‐Reservable Picnic Sites ‐ B, C, or D*35.00$50.71 31% $50.00$15 54 San Ysidro Picnic Pavilion ‐ A*NewPer Day$203.79 NA$0.00NA55 San Ysidro Picnic Pavilion ‐ B*NewPer Day$211.20 NA$75.00NA56 San Ysidro Picnic Pavilion ‐ C*NewPer Day$211.20 NA$125.00NA57 San Ysidro Picnic Pavilion ‐ D*NewPer Day$211.20 NA$211.00NA58 San Ysidro Picnic Pavilion DepositNewNANA$135.00NACity of Gilroy39Comprehensive User Fee Study11.4.aPacket Pg. 246Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction)
Recreation# Description Current Fee/Charge Unit Notes Full CostCurrent Subsidy %Recommended Fee Fee ΔFacilities & ParksSoftball Fields59 Field Reservations ‐ A* 0.00 per 2 hours baseball/softball/Soccer $188.47 100% $0.00 $0 60 Field Reservations ‐ B* 45.00 per 2 hours baseball/softball/Soccer $203.30 78% $60.00 $15 61 Field Reservations ‐ C* 55.00 per 2 hours baseball/softball/Soccer $203.30 73% $70.00 $15 62 Field Reservations ‐ D* 65.00 per 2 hours baseball/softball/Soccer $203.30 68% $90.00 $25 63 Field Reservations ‐ Deposit 100.00 baseball/softball/Soccer NA NA $135.00 $35 64 Lights ‐ A* 0.00$30.14 100% $0.00 $0 65 Lights ‐ B* 25.00 per hour $30.14 17% $30.00 $5 66 Lights ‐ C* 25.00 per hour $30.14 17% $30.00 $5 67 Lights ‐ D* 25.00 per hour $30.14 17% $30.00 $5 68 Lights ‐ Deposit NANA NA NA $0 69 Field Reservation Cancellation Fee NewPlus Actual Payment Processing Cost$64.31 NA $64.00 NASenior Center 70 Main Hall ‐ A* 0.00 per hour. $121.21 100% $0.00 $0 71 Main Hall ‐ B* 65.00 per hour. $128.63 49% $79.00 $14 72 Main Hall ‐ C* 85.00 per hour. $128.63 34% $103.00 $18 73 Main Hall ‐ D* 105.00 per hour. $128.63 18% $128.00 $23 74 Main Hall ‐ Deposit 500.00NA NA $500.00 $0 75 Meeting Room ‐ A* 0.00 per hour. $64.31 100% $0.00 $0 76 Meeting Room ‐ B* 25.00 per hour. $71.73 65% $39.00 $14 77 Meeting Room ‐ C* 35.00 per hour. $71.73 51% $55.00 $20 78 Meeting Room ‐ D* 45.00 per hour. $71.73 37% $71.00 $26 79 Meeting Room ‐ Deposit 100.00NA NA $135.00 $35 Wheeler Center80 Multi‐purpose Rm. ‐ A* 0.00 per hour. $64.31 100% $0.00 $0 81 Multi‐purpose Rm. ‐ B* 25.00 per hour. $71.73 65% $39.00 $14 82 Multi‐purpose Rm. ‐ C* 35.00 per hour. $71.73 51% $55.00 $20 83 Multi‐purpose Rm. ‐ D* 45.00 per hour. $71.73 37% $71.00 $26 84 Multi‐purpose Rm. ‐ Deposit 100.00NA NA $135.00 $35 85 Craft Room ‐ A* 0.00 per hour. $64.31 100% $0.00 $0 86 Craft Room ‐ B* 25.00 per hour. $71.73 65% $39.00 $14 87 Craft Room ‐ C* 35.00 per hour. $71.73 51% $55.00 $20 88 Craft Room ‐ D* 45.00 per hour. $71.73 37% $71.00 $26 89 Craft Room ‐ Deposit 100.00NA NA $135.00 $35 90 Dance Room ‐ A* 0.00 per hour. $64.31 100% $0.00 $0 91 Dance Room ‐ B* 25.00 per hour. $71.73 65% $39.00 $14 92 Dance Room ‐ C* 35.00 per hour. $71.73 51% $55.00 $20 93 Dance Room ‐ D* 45.00 per hour. $71.73 37% $71.00 $26 94 Dance Room ‐ Deposit 100.00NA NA $135.00 $35 City of Gilroy40Comprehensive User Fee Study11.4.aPacket Pg. 247Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction)
Recreation# Description Current Fee/Charge Unit Notes Full CostCurrent Subsidy %Recommended Fee Fee ΔFacilities & ParksOther Community Recreation Buildings95Las Animas Park Multi‐Purpose Room ‐ A*0.00 per hour. $64.31 100% $0.00 $0 96Las Animas Park Multi‐Purpose Room ‐ B*65.00 per hour. $71.73 9% $39.00 ($26)97Las Animas Park Multi‐Purpose Room ‐ C*75.00 per hour. $71.73 ‐5% $55.00 ($20)98Las Animas Park Multi‐Purpose Room ‐ D*85.00 per hour. $71.73 ‐19% $71.00 ($14)99Las Animas Park Multi‐Purpose Room ‐ Deposit100.00NA NA $135.00 $35 100Facility Reservation Cancellation Fee50.00Plus Actual Payment Processing Cost$64.31 NA $64.00 $25 Gymnasiums 101 Wheeler ‐ A* 0.00 per hour. $79.14 100% $0.00 $0 102 Wheeler ‐ B* 35.00 per hour. $86.55 60% $54.00 $19 103 Wheeler ‐ C* 45.00 per hour. $86.55 48% $70.00 $25 104 Wheeler ‐ D* 55.00 per hour. $86.55 36% $86.00 $31 105 Wheeler ‐ Deposit 250.00 per hour. NA NA $250.00 $0 106 Solorsano ‐ A* 0.00 per hour. $79.14 100% $0.00 $0 107 Solorsano ‐ B* 50.00 per hour. $86.55 42% $61.00 $11 108 Solorsano ‐ C* 60.00 per hour. $86.55 31% $73.00 $13 109 Solorsano ‐ D* 70.00 per hour. $86.55 19% $86.00 $16 110 Solorsano ‐ Deposit 250.00NA NA $250.00 $0 111 Christopher High School Small Gym Set by GUSD$86.55 NA $86.00 $0 112 Cesar Chavez Gym Set by GUSD$86.55 NA $86.00 $0 113Gymnasium Reservation Cancellation Fee (except those managed by GUSD)50.00Plus Actual Payment Processing Cost$64.31 22% $64.00 $0 Facility Attendant and Custodial Hourly Rates for Rentals114 Facility Attendant 18.00 per hourMinimum 2 hours$21.39 16% $21.00$3 115 Custodial Attendant 24.00per hourMinimum 2 hours$24.60 2%$24.00$0 *Note:Category A ‐ City and GUSD programs and special eventsCategory B ‐ Non‐profit OrganizationsCategory C ‐ City of Gilroy Residents (Private functions and/or open to the public) Category D ‐ Non‐Residents or any company/business or group holding an event (social, business, educaƟon or for profit) Requires a City of Gilroy business license when rented for “profit‐making” events and may require a special event permit approval. In addition to the approval of the City of Gilroy Recreation Department Director, ten percent (10%) of gross revenues from the event or $500, whichever is greater, are payable and due to the City at the conclusion of the event.Additional personnel, set‐up and equipment costs will be assessed and applied accordingly to all categoriesCity of Gilroy41Comprehensive User Fee Study11.4.aPacket Pg. 248Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction)
Fire# Description Current Fee/Charge Unit Notes Full CostCurrent Subsidy %Recommended Fee Fee Δ1Flammable/Combustible Material above‐ground Storage Tank (over 600 gallons) and new technological hazards, Fire training & equipment fee1,020.00 per address $1,914.02 47% $1,914.00 $894 2 Reproduction ‐ PRA's ‐ Photos copy, scanning Department hourly rate + cost of photoNA NADepartment hourly rate + cost of photo$0 3 Business License Regulatory Review Fire Inspections 130.00 per hour One hour minimum$279.98 NA$279.00$149 4 Annual Business Inspections ‐ Fire CompanyNewper hour One hour minimum$485.09 NA$485.00NABLES/Fire Prevention5 Delinquent Service265.00$313.40 15%$313.00$48 6 False AlarmNewper code$252.72 NA$252.00NA7 Fire Alternates Materials ReviewDivision Hourly Rate + Contractual Costsper application$265 minimum/application +$130.00/hour for each additional review/inspection NA NADivision Hourly Rate + Contractual Costs$0 8 Fire Alternates Materials Review ‐ additional review/inspection 130.00per hour$298.77 56%$298.00$168 9 Fire Clearance Inspection115.00per hour 2 hr minimum$375.43 69%$375.00$260 10 Fire Code Operational Permits (Section 105 of the CFC/GFC) 275.00Opertional, currently includes inpsection $432.18 36%$432.00$157 11 Fire Code Re‐Inspection130.00per hour 1/2 hr minimum$193.28 33%$193.00$63 12 Hazmat/CUPA Re‐Inspection Newper hour 1/2 hr minimum$193.28 NA$193.00NA13 Fire Flow Per Hydrant300.00$459.47 35%$459.00$159 14 Permit for new Fire or Haz Mat SystemsBuilding Table ADoes not include plan review or inspections ie:Sprinkler System and Chemical Equipment Review, including Fire Protection Systems, Alarm System, Aboveground TankNA NABuilding Table A $0 15 Fire Plan Check 400.00 for 2 hours $537.36 26% $537.00 $137 16 Fire Plan Check ‐ additional hour including resubmittals 130.00per hour$237.13 45%$237.00$107 17Energy Storage System ‐ Plan Check (Fire Prevention) ESS having capacities exceeding 20 KWh400.00+ divisional hourly rate for each additionalhour$421.44 5%$421.00$21 18Energy Storage System ‐ Inspection (Fire Prevention)ESS having capacities exceeding 20 KWh260.00+ divisional hourly rate for each additionalhour$275.49 6%$275.00$15 19 Fireworks ‐ Aerial DisplayFire Engine Standby Rate 1 hr minimumCity Code Section 10A.8 as required by the Fire Chief City Code Section 10.9$1,736.09 NA$1,736.00$0 20 Fireworks ‐ Aerial Display Inspection permit New 3 hr minimumPlus 150% after hours and travel time. (Does not include Fire Code permits)$562.57 NA$562.00$0 21 Fireworks ‐ Retail Sales635.00per booth$758.87 16%$758.00$123 FeesCity of Gilroy42Comprehensive User Fee Study11.4.aPacket Pg. 249Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction)
Fire# Description Current Fee/Charge Unit Notes Full CostCurrent Subsidy %Recommended Fee Fee ΔFees22 Special Event Inpsection Fee130.00per hourPlus 50% after hours and travel time. 1 hr minimum (Does not include Uniform Fire Code permits)$389.63 67%$389.00$259 23 Special Inspection/Consultant310.00for 2 hours Plus consultant cost$361.78 14%$361.00$51 24 Special Inspection/Consultant ‐ additional hour125.00per hour Plus consultant cost$160.98 22%$160.00$35 25State Fire Marshal Required Inspection ‐ Business License processing Fee Apartments: 3‐16 units35.00per parcelState Health and Safety Code 13146.2(a) if not under a regulatory permit$256.99 86%$256.00$221 26State Fire Marshal Required Inspection ‐ Business License Processing Fee Apartments: 17‐32 units65.00per parcelState Health and Safety Code 13146.2(a) if not under a regulatory permit$332.95 80%$332.00$267 27State Fire Marshal Required Inspection ‐ Business License Processing Fee Apartments: 33‐100 units135.00per parcelState Health and Safety Code 13146.2(a) if not under a regulatory permit$408.92 67%$408.00$273 28State Fire Marshal Required Inspection ‐ Business License Processing Fee Apartments: 101 plus units270.00per parcelState Health and Safety Code 13146.2(a) if not under a regulatory permit$560.84 52%$560.00$290 29State Fire Marshal Required Inspection ‐ Apartments: Inspections/testing140.00per hour 1 hr minimum$649.79 78%$649.00$509 30 Other State Regulated Sites140.00per hour1 hr minimum. Schools, Hotels/Motels, Licensed Care Facilities, Institutions, $500.40 72%$500.00$360 31 Hazmat/Fire Prevention Application ReviewNewper hour$319.30 NA$319.00NA32 Tree Lots Cleaning DepsitNew$198.33 NA$198.00NABLES/Hazardous Materials33 Above Ground Petroleum Storage Site ‐Tier 1165.00site annualNo containers greater than 5,000 gallons and aggregate not more than 10, 000 gallons$384.36 57%$384.00$219 34 Above Ground Petroleum Storage Site Non‐qualifying Facility NewContainers greater than 10,000 gallons $505.34 NA$505.00NA35 Above Ground Petroleum Storage Site ‐Tier 2NewContainers greater than 5,000 gallons and no more than 10, 000 gallons. Cannot have an aggregate total storage of more than 10,000 gallons.$444.85 NA$444.00NA36 CAL‐ARP Facility Inspection Fee/Permit375.00per year$626.31 40%$626.00$251 37 CAL‐ARP Facility Audit/Processing Fee ‐ in house1,000.00$2,077.99 52%$2,077.00$1,077 38 CAL‐ARP Facility Audit Fee ‐ outsourced375.00plus consultant cost$2,532.59 85%$2,532.00$2,157 39 Technology Data Management Fee20.00per year Old CERS fee$11.59 ‐72%$11.00($9)40 Facility Closure295.00first 2 hours $125 for each add 1 hour$449.21 34%$449.00$154 41 Hazardous Material Plan Check/Inspection125.00per hour$686.75 82%$686.00$561 Hazardous Material Storage Ordinance Permit Fees42 HMS01/HMORT Retail Only (limited substances) 140.00per year over 1 hour inspection$263.39 47%$263.00$123 43 HMS02270.00per year plus$384.36 30%$384.00$114 City of Gilroy43Comprehensive User Fee Study11.4.aPacket Pg. 250Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction)
Fire# Description Current Fee/Charge Unit Notes Full CostCurrent Subsidy %Recommended Fee Fee ΔFees44 Up to 5,000 lbs, solidsHourly over 2 hour inspection$0.00 NAHourly$0 45 55 ‐ 550 gal, liquidsHourly over 2 hour inspection$0.00 NAHourly$0 46 200 ‐ 2,000 cubic ft. at STP for compressed gasHourly over 2 hour inspection$0.00 NAHourly$0 47 HMS03500.00per year plus$626.31 20%$626.00$126 48 5,000 ‐ 25,000 lbs, solidsHourly over 4 hour inspection$0.00 NAHourly$0 49 550 ‐ 2,750 gal, liquidsHourly over 4 hour inspection$0.00 NAHourly$0 50 2,000 ‐ 10,000 cubic ft. at STP for compressed gasHourly over 4 hour inspection$0.00 NAHourly$0 51 HMS04690.00per year plus$807.77 15%$807.00$117 52 25,000 ‐ 50,000 lbs, solidsHourly over 5 1/2 hour inspection$0.00 NAHourly$0 53 2,750 ‐ 5,500 gal, liquidsHourly over 5 1/2 hour inspection$0.00 NAHourly$0 54 10,000 ‐ 20,000 cubic ft. at STP for compressed gasHourly over 5 1/2 hour inspection$0.00 NAHourly$0 55 HMS05820.00per year plus$928.74 12%$928.00$108 56 > 50,000 lbs, solidsHourly over 6 1/2 hour inspection$0.00 NAHourly$0 57 > 5,500 gal, liquidsHourly over 6 1/2 hour inspection$0.00 NAHourly$0 58 > 20,000 cubic ft. at STP for compressed gasHourly over 6 1/2 hour inspection$0.00 NAHourly$0 Corrosive, Toxic, & Highly Toxic Gas Fees including liquified and sub atmospheric materials59 Storage below MAQ125.00annual$382.53 67%$382.00$257 60 Storage above MAQ375.00annual$503.50 26%$503.00$128 61 Use below MAQ500.00annual$654.72 24%$654.00$154 62 Use above MAQ1,000.00annual$887.73 ‐13%$887.00($113)63 Cryogens270.00annual not corrosive, toxic or highly toxic$412.77 35%$412.00$142 Hazardous Waste Generator Fees64 HWG 1 – less than 2.5 tons/year100.00per year$263.39 62%$263.00$163 65 HWG 2 – 2.5 to less than 5 tons/year160.00per year$323.88 51%$323.00$163 66 HWG 3 ‐ 5 to less than 25 tons/year350.00per year$505.34 31%$505.00$155 67 HWG 4 ‐ 25 to less than 50 tons/year665.00per year$686.80 3%$686.00$21 68 HWG 5 ‐ 50 to less than 250 tons/year790.00per year$868.25 9%$868.00$78 69 HWG 6 ‐ 250 to less than 500 tons/year915.00per year$1,049.71 13%$1,049.00$134 70 HWG 7 ‐ 500 to less than 1,000 tons/year1,040.00per year$1,231.17 16%$1,231.00$191 71 HWG 8 ‐ 1,000 to less than 2,000 tons/year1,290.00per year$1,412.63 9%$1,412.00$122 72Hazardous Waste Generator (HWG0)–Retail/Episodic (Generates less than 100 kg/month)50.00per year$240.98 79%$240.00$190 73Hazardous Waste Generator RCRALQG (Generates more than 1 kg (2.2 lbs) of acute hazardous waste)50.00per year$240.98 79%$240.00$190 Tiered Permit Fees74 Conditional Exempt (CE)250.00annual$384.36 35%$384.00$134 City of Gilroy44Comprehensive User Fee Study11.4.aPacket Pg. 251Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction)
Fire# Description Current Fee/Charge Unit Notes Full CostCurrent Subsidy %Recommended Fee Fee ΔFees75 Conditional Authorization (CA)500.00annual$626.31 20%$626.00$126 76 Permit by Rule (PBR)1,005.00annual plus recording fees$1,231.17 18%$1,231.00$226 77 Spill Investigation, Response/Cleanup oversightDepartment/Division hourly rate$125 minimum$600.74 NADepartment/Division hourly rate, $135 minimum$0 Underground Tank78 Installation1,190.00per site up to 3 tanks$3,344.54 64%$3,344.00$2,154 79 Modification (piping & repair only)270.00minimum plus $125/hr addl review/inspections$468.12 42%$468.00$198 80 Operating Permit500.00site annualfull compliance ($820.62 for first 3 tanks) $230 for each additional tank$1,184.89 58%$1,184.00$684 81 Re‐inspection270.00each$470.23 43%$470.00$200 82 Removal815.00per tank Including additional hourly rate $1,473.25 45%$1,473.00$658 83 Testing250.00per tank$267.61 7%$267.00$17 City of Gilroy45Comprehensive User Fee Study11.4.aPacket Pg. 252Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction)
Police # Description Current Fee/Charge Unit Notes Code Full CostCurrent Subsidy %Recommended Fee Fee Δ1 Call Back/Second ResponsePolice Operation Division Hourly ratesCity reserves legal options for amounts over $500.00(City Code Section 16.35) NA NAPolice Operation Division Hourly rates$0 2 Crime Analysis Services 120.00 per hour $152.81 21% $152.00 $32 3 DUI Cost Recovery Department(s)/Division(s) hourly rates plus actual repair and/or replacement of damaged public propertyAll Emergency PersonnelGovernment Code Section 53130‐53158NA NADepartment(s)/Division(s) hourly rates plus actual repair and/or replacement of damaged public property$0 4 Graffiti Abatement FeesDepartment(s)/Division(s) hourly rates plus actual repair and/or replacement of damaged public property(City Code Section 12.5) NA NADepartment(s)/Division(s) hourly rates plus actual repair and/or replacement of damaged public property$0 5Provision of Special Services(Subsided Rate)145.00 per hour 45% of Police Operation Division hourly rate or $65.00 per hour$153.53 6% $153.00 $8 6 Reproduction ‐ Photos Department hourly rate plus cost of photoNA NADepartment hourly rate plus cost of photo$0 7 School Truancy Charges Police division hourly rates (City Code Section 7.4) NA NA Police division hourly rates $0 8 Tow Truck Driver ‐ Annual Fee 50.00 (City Code Section 24.A.2) $51.87 4% $51.00$1 City of Gilroy46Comprehensive User Fee Study11.4.aPacket Pg. 253Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction)
Police # Description Current Fee/Charge Unit Notes Code Full CostCurrent Subsidy %Recommended Fee Fee Δ9Vehicle Equipment Inspection and Certification ‐ Resident 10.00$56.13 82% $56.00 $46 10Vehicle Equipment Inspection and Certification ‐ Non‐Resident 35.00$56.13 38% $56.00 $21 11 Vehicle Impound/Release Fees 150.00(California Vehicle Code Section 22850.5)$146.80 ‐2% $146.00 ($4)12Police Community Room Fee ‐ *Category "A"FreeNA NA Free $0 13Police Community Room Fee ‐ *Category "B"50.00per hour with $200.00 security depositNA NA $50.00 $0 14Police Community Room Fee ‐ *Category "C"100.00per hour with $200.00 security depositNA NA $100.00 $0 15Police Community Room Fee ‐ *Category "D"100.00per hour with $200.00 security depositNA NA $200.00 $100 # Description Current Fee/Charge Unit Notes Code Full CostCurrent Subsidy %Recommended Fee Fee Δ16 Firearms Sales Permit 205.00 Annually Also needs license (City Code Section 9A.4) $303.89 33% $303.00$98 17 Mobile Vendor ‐ New Application 160.00(Portable container, pushcart, stands, vehicle or wagon that is placed on private property)Also needs license(City Code Section 16A.13) $146.72 ‐9% $146.00($14)Police PermitsCity of Gilroy47Comprehensive User Fee Study11.4.aPacket Pg. 254Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction)
Police # Description Current Fee/Charge Unit Notes Code Full CostCurrent Subsidy %Recommended Fee Fee Δ18Mobile Vendor ‐ Renewal Application60.00 Annually(Portable container, pushcart, stands, vehicle or wagon that is placed on private property)Also needs license(City Code Section 16A.13) $76.93 22% $76.00 $16 19Solicitor’s Identity Permit (door‐to‐door solicitor) ‐ New Application160.00 Also needs license (City Code Section 16A.1) $146.72 ‐9% $146.00($14)20Solicitor’s Identity Permit (door‐to‐door solicitor) ‐ Renewal Application60.00Annually Also needs license (City Code Section 16A.1) $76.93 22% $76.00$16 21Adult Business Permit ‐ New ApplicationOperations hourly rate (minimum fee of $8,440.00)Police Investigations Also needs licenseNA NAOperations hourly rate (minimum fee of $8,440.00)$0 22Adult Business Permit ‐ Renewal Application1,515.00 Annually $1,951.78 22% $1,951.00 $436 (City Code Sections 4.7, 4.13, 4.14, 4.27, 4.28, 4.30, 4.37, 4.42, 4.59)23Animal Bite Investigation/Quarantine175.00$152.53 ‐15% $152.00 ($23)24 Spay/Neutered 1 yr. /3 yrs 17.00/49.00NA NA Per 3rd Party Contract $0 25 Non‐Altered 1 yr. /3 yrs. 25.00/70.00NA NA Per 3rd Party Contract $0 26 Late fees ‐ 60 days after due date 25.00NA NA Per 3rd Party Contract $0 27 Duplicate tag (Renewals only) 4.00NA NA Per 3rd Party Contract $0 Animal Control FeesAnimal License: Dog/CatCity of Gilroy48Comprehensive User Fee Study11.4.aPacket Pg. 255Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction)
Police # Description Current Fee/Charge Unit Notes Code Full CostCurrent Subsidy %Recommended Fee Fee Δ28Authority to contract for private serviceTo be determined by services contractNA NATo be determined by services contract$0 29First 24 hour impound at Police Dept100.00NA NA $100.00 $0 30 Each additional day at station 40.00 per day NA NA $40.00 $0 31 Animals quarantined at shelter 175.00+ County impound fee & boardNA NA $175.00 $0 32 At Large impound 110.00+ County impound fee & board, set mileage and Animal Shelter FeeNA NA $110.00 $0 33 Animal Control Permit Fee 45.00 AnnuallyPet shop, commercial kennel, private kennel, pet grooming parlor, animal menagerie, animal shelter or horse establishment or exotic animal(City Code Section 4.37) NA NA $45.00 $0 34 Bingo Permit ‐ New Application 200.00 (City Code Section 5A.7) $159.38 ‐25% $159.00($41)35 Bingo Permit ‐ Annual Renewal Fee 25.00$56.59 56% $56.00$31 36 Initial Cardroom Permit Fee 5,000.00deposit(Resolution 2013‐06) NA NA $5,000.00$0 37 Annual Cardroom Permit (Renewal) 555.00NA NA $555.00$0 38 Annual Table Permit Fees 300.00per tableNA NA $300.00$0 Impound FeeCity of Gilroy49Comprehensive User Fee Study11.4.aPacket Pg. 256Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction)
Police # Description Current Fee/Charge Unit Notes Code Full CostCurrent Subsidy %Recommended Fee Fee Δ39 One Week Table Permit 25.00Must have a minimum of one Annual Table Permit NA NA $25.00$0 40Initial Employee Registration Application370.00per employeeNA NA $370.00$0 41 Annual Employee185.00NA NA $185.00$0 42 Concealed Weapons Permit ‐ New Ap100.00$20.00 upon filing and remainder upon approvalPenal Code Section 12054 NA NA $100.00 $0 43 Concealed Weapons Permit ‐ Annual 25.00 Penal Code Section 12054 NA NA $25.00$0 44 Dance Hall Permit**405.00(City Code Chapter 8.2) $409.43 1% $409.00$4 45 Massage Permit ‐ Initial215.00(Establishments, managing employees and/or practitioners) Practitioners permit fee is waived if simultaneously applying for an establishment or management employee permit(City Code Section 13.52(c))$288.31 25% $288.00 $73 City of Gilroy50Comprehensive User Fee Study11.4.aPacket Pg. 257Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction)
Police # Description Current Fee/Charge Unit Notes Code Full CostCurrent Subsidy %Recommended Fee Fee Δ46 Massage Permit ‐ Renewal 125.00Annually(Establishments, managing employees and/or practitioners) Practitioners permit fee is waived if simultaneously applying for an establishment or management employee permit$137.82 9% $137.00 $12 47 Pawnbrokers, Junk and Secondhand 55.00 Annual Fee (City Code Chapter 12B) NA NA $55.00$0 48 Regulatory Bar Permit 405.00Annually(City Code Section 16.5) $439.72 8% $439.00$34 49 Taxi Cab ‐ Company Permits 235.00Permit(City Code Sections 23.6, 23.35)$273.97 14% $273.00$38 50 Taxi Cab Driver ‐ New 150.00$178.86 16% $178.00$28 51 Taxi Cab Driver ‐ Renewal 100.00$132.08 24% $132.00$32 52 False Alarms Reponse195.00After 3rd and subsequent alarm within 12 months.City reserves legal options for amounts over $500.00(City Code Section 3B.5) $192.11 ‐2% $192.00($3)53 False Alarms Registration 35.00per registrationInitial registration only.(City Code Section 3B.5) $38.58 9% $38.00$3 54 False Alarms Reinstatement 25.00per reinstatementNo response status after 7 alarms in 12 months. (City Code Section 3B.5) $38.58 35% $38.00$13 *Note:See Facilities Fees for category descriptionsCity of Gilroy51Comprehensive User Fee Study11.4.aPacket Pg. 258Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction)
Community Development# Description Current Fee/Charge Unit Notes Full CostCurrent Subsidy %Recommended Fee Fee ΔGeneral Inspections and Fees (all divisions)(A)(B)1Additional plan review required by changes, additions or revisions to approved plansDivision(s) hourly rate 2 hour minimum NA NA Division(s) hourly rate $0 2 Inspections for which no fee is specifically indicated Division(s) hourly rate minimum charge‐one half hour NA NA Division(s) hourly rate $0 3 Inspections outside of normal business hours ‐ BldgDivision(s) hourly rate $525.003 hours plus $170/hr each additional hour $524.02 NA $895.00 NA4 Inspections outside of normal business hours ‐ Planning 575.00 3 hours plus $185/hr $476.46 ‐21% $476.46 ($99)5 Re‐inspection fees assessed determination 75.00 + Division(s) hourly rate $89.69 16% $89.69 $15 6 Building Damage Survey Inspection and Report NEW+ Division(s) hourly rate OR see Inspection outside of normal business hrs.$291.89 NA $291.89 NABuilding Life Environmental Safety (BLES)# Description Current Fee/Charge Unit Notes Full CostCurrent Subsidy %Recommended Fee Fee Δ7 Plan Check Review 75% of building permit feeMinimum 1/2 hour division hourly rate of $75.00 as set forth on Table 1‐A page 16NA NA 75% of building permit fee $0 8 Deferred Submittal 75.00 + Division(s) hourly rate (2 hour minimum)$137.03 45% $137.03$62 9 RevisionsDivision(s) hourly rate + Division(s) hourly rate (2 hour minimum)$137.03 NA$137.03NA10 Expedited Building Plan Check Review150% of Building Permit fee1st round review onlyNANA 150% of Building Permit fee $0 Building Permit Fees# DescriptionCurrent Fee/ChargeUnitNotesFull CostCurrent Subsidy %Recommended Fee Fee Δ11 Building PermitAs set forth in Table 1‐A (page 14)12 Electrical, Mechanical and PlumbingAs set forth in pages 17‐2413 GradingAs set forth in pages 25State of California Fees# DescriptionCurrent Fee/ChargeUnitNotesFull CostCurrent Subsidy %Recommended Fee Fee Δ14Strong Motion Fee (Charged by State through City)Strong Motion instrumentation and Seismic Hazard Mapping Fees (SMIP) State FeesFee is based on attached Building Valuation schedule which is determined by: $ .00010 x valuation with a minimum of $ 0.50 for Group R occupancies excluding hotels and motels, and $.00021 x valuation for all other occupancies.NANA Fee is based on attached Building Valuation schedule which is determined by: $ .00010 x valuation with a minimum of $ 0.50 for Group R occupancies excluding hotels and motels, and $.00021 x valuation for all other occupancies. $0 15 Category 1 ‐ Residential, 1st to 3rd Story: Valuation x 0.00013= Fee $ 0.50 Min. FeeNA NA $ 0.50 Min. Fee $0 16 Category 2 ‐ All Other Buildings: Valuation x 0.00028= Fee $ 0.50 Min. FeeNA NA $ 0.50 Min. Fee $0 17 Building Standards Administration Special Revolving Fund (BSASRF)18 Permit Valuation $1 to $25,000 $1 NA NA $1 $0 Building Plan Check City of Gilroy52Comprehensive User Fee Study11.4.aPacket Pg. 259Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction)
Community Development# Description Current Fee/Charge Unit Notes Full CostCurrent Subsidy %Recommended Fee Fee Δ19 Permit Valuation $25,001 to $50,000$2 NANA$2 $0 20 Permit Valuation $50,001 to $75,000$3 NANA$3 $0 21 Permit Valuation $75,001 to $100,000$4 NANA$4 $0 22 Every $25,000 or fraction thereof above $100,000Add $ 1NANA Add $ 1 $0 City of Gilroy Standard Permitting Fees# DescriptionCurrent Fee/ChargeUnitNotesFull CostCurrent Subsidy %Recommended Fee Fee Δ23General Plan Update Fee / High Speed Rail Master Plan Fee to offset city’s expenditures (Excludes Residential: photovoltaic; water heater, furnace, and air conditioning replacements; reroofs; and interior remodeling such as kitchen and bath remodels. For purposes of this section, “residential” is considered as one‐ and two‐family residences, including interior and photovoltaic work on individual condominium and townhouse units)4.7%of Building and Engineering fees AKA General Plan Update Fee 4.7% 13% 64% 13% 8%# Description Current Fee/Charge Unit Notes Full CostCurrent Subsidy %Recommended Fee Fee Δ24 Accessibility ‐ Equivalent Facilitation 225.00for first hour+ divisional hourly rate for each additional hour $224.23 0%$224.00($1)25 Accessibility ‐ Unreasonable Hardship Application295.00for first hour + divisional hourly rate for each additional hour $291.75 ‐1%$291.00($4)26 Addressing FeeNEWeach$89.20 NA$89.00NA27 Administrative Hearing1,195.00each$1,188.78 ‐1%$1,188.00($7)28 Alternative Materials Review960.00each type$944.09 ‐2%$944.00($16)29 Building Code Appeal Fee2,180.00each$1,601.79 ‐36% $1,601.00($579)30 Certificate of Occupancy ‐ Reproduction50.00each$84.74 41% $84.00$34 31 Demolition ‐ Historical Building 3,565.00$2,415.62 ‐48% $2,415.00($1,150)32 Demolition ‐ Major (Greater than 501 sq. ft.)1,050.00$996.88 ‐5%$996.00($54)33 Demolition ‐ Minor (120‐500 sq. ft.)395.00$366.51 ‐8%$366.00($29)34 House Moving ‐ Within City2,100.00$1,645.80 ‐28% $1,645.00($455)35 House Moving ‐ From outside City2,100.00plus travel time$1,645.80 ‐28% $1,645.00($455)36 Physically Challenged Board of Appeal2,180.00$1,439.50 ‐51% $1,439.00($741)37 Plot Plan Review/Lot Change550.00each$612.13 10% $612.00$62 38 Reproduction ‐ Building Permit40.00$50.40 21% $50.00$10 39 Reproduction ‐ Building Plans (Architectural 24x36, max 20 sheets) 92.00for first sheet $7.50 for each additional sheet$117.3322% $117.00$25 40Reproduction ‐ Building Address Files/Plans (8x14/11x17, max 20 sheets)NEWfor first sheet +$0.20/sheet$56.02 NA$56.00NA41 Reproduction ‐ Building Address Files/Plans (8x11, max 20 sheets) NEWfor first sheet +$0.10/sheet$56.02 NA$56.00NA42Reproduction ‐ Microfilm ‐ Building Plan Sheet (24x36, max 20 sheets)39.00for first sheet $7.50 for each additional sheet$117.33 67% $117.00$78 43Reproduction ‐ Microfilm ‐ Project Specification Sheet (24x36, max 20 sheets)92.00for first sheet $7.50 for each additional sheet$117.33 22% $117.00$25 Miscellaneous Fees (City Code Sections 6.1 & 7.1. (a))City of Gilroy53Comprehensive User Fee Study11.4.aPacket Pg. 260Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction)
Community Development# Description Current Fee/Charge Unit Notes Full CostCurrent Subsidy %Recommended Fee Fee Δ44 Reproduction ‐ Project Specifications (8x11, max 20 sheets) 23.00 for first sheet +$0.10/sheet $56.02 59% $56.00 $33 45Temporary Certificate of OccupancyBond Application345.00$1,028.97 66% $1,028.00 $683 46 Utility Bond Application 245.00$295.87 17% $295.00 $50 47 Building Technology Fee NEW % of permit fees 5% NA 5% NAPhotovoltaic Permitting Fees# Description Current Fee/Charge Unit Notes Full CostCurrent Subsidy %Recommended Fee Fee Δ48 Residential 15 kW or less NEW Residential $562.10 NA $450.00 NA49 Residential More than 15 kW NEW + $15.00 per kwW above 15 kW $755.48 NA $500.00 NA50 Commercial 50 kW or less NEW Commercial $1,064.93 NA $1,000.00 NA51 Commercial 50 kW ‐ 250 kW NEW + $7.00 per kw above 50 kW $1,490.79 NA $1,000.00 NA52 Commercial More than 250 kW NEW + $5.00 per kW above 250 kW $2,681.77 NA $2,400.00 NASolar Thermal Permiting Fees# Description Current Fee/Charge Unit Notes Full CostCurrent Subsidy %Recommended Fee Fee Δ53Residential 10 kWth or less NEW$480.52 NA $450.00 NA54Residential More than 10 kWth NEW+ $ 15.00 per kWth above 10 kWth $533.39 NA $450.00 NA55Commercial 30 kWth or less NEW$1,104.75 NA $1,000.00 NA56Commercial 30 kWth – 260 kWth NEW+ $ 7.00 per kWth above 30 kWth $1,245.26 NA $1,000.00 NA57Commercial More than 260 kWth NEW+ $ 5.00 per kWth $2,426.94 NA $2,426.00 NAPhotovoltaic Energy Storage System Permitting Fees# Description Current Fee/Charge Unit Notes Full CostCurrent Subsidy %Recommended Fee Fee Δ58 Energy Storage System ‐ Permit Fee NEW each $103.27 NA $103.27 NA59 Energy Storage System ‐ Plan Check (Building) NEW + divisional hourly rate for each additional hour $166.03 NA $166.03 NA61 Energy Storage System ‐ Inspection (Building) NEW + divisional hourly rate for each additional hour $146.77 NA $146.77 NATable 1‐A ‐ Building Permit Fees Roofing Permitting Fees# Description Current Fee/Charge Unit Notes Full CostCurrent Subsidy %Recommended Fee Fee Δ62Residential Inspection 160.00 minimum fee + $147.00/each additional hour $146.77 ‐9% $146.00 ($14)Residential Re‐roof overlay, prep old roof, felt, new roof63 Application Fee 70.00 plus $69.80 0% $69.00 ($1)64 1st 25 squares 275.00 plus $195.73 ‐40% $195.00 ($80)City of Gilroy54Comprehensive User Fee Study11.4.aPacket Pg. 261Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction)
Community Development# Description Current Fee/Charge Unit Notes Full CostCurrent Subsidy %Recommended Fee Fee Δ65 Ea. additional 25 squares130.00plus$135.18 4%$135.00$5 66 Ea. additional inspection after 3 inspections130.00$146.77 11% $146.00$16 Residential conversion, tear‐off plywood, felt, new roof67 Application Fee70.00plus$69.80 0%$69.00($1)68 1st 25 squares370.00plus $270.35 ‐37% $270.00($100)69 Ea. additional 25 squares130.00plus$165.45 21% $165.00$35 70 Ea. additional inspection after 3 inspections125.00$165.45 24% $165.00$40 Commercial/Industrial 71Commercial/Industrial Pre‐roof Inspections(A) (minimum charge – 1 hour) 205.00 minimum fee + 147.00/each additional hour $215.85 5% $215.00 $10 72 Commercial Re‐roofBased on valuation or contract price whichever is greater. **NA NA Based on valuation or contract price whichever is greater. ** $0 Swimming Pool Permitting Fees# Description *Minimum Valuation Unit Notes Full CostCurrent Subsidy %Recommended Fee Fee Δ73ResidentialSwimming Pools and/or Spas55.00 per sq. ft.Based on construction valuation or minimum sq. ft. whichever is greaterNA NA $120.00 $65 74CommercialSwimming Pools and/or Spas73.00 per sq. ft.Based on construction valuation or minimum sq. ft. whichever is greaterNA NA $150.00 $77 75 Supplementals (Plumbing, Mechanical, and Electrical) 210.00NA NA $179.00 ($31)76 Pool Replaster Surface NEW$333.05 NA $330.00 NA77 Demo: Vinyl NEW$345.49 NA $345.00 NA78 Demo: Gunite NEW$462.03 NA $450.00 NA79 Pre‐Treatment Discharge Permit 80.00NA NA $80.00 $0 Wall / Monument Sign or Art Sculpture Permitting FeesSigns, Outline Lighting and Marquees(A)# Description*Minimum ValuationUnitNotesFull CostCurrent Subsidy %Recommended Fee Fee Δ80 New Sign / Art SculptureNEWBased on valuation or contract price whichever is greater.**NA NA Based on valuation or contract price whichever is greater.** NA81For signs with outline lighting systems or marquees supplied from a new branch circuit22.50 each $60.56 NA $60.00 $38 82For signs with outline lighting systems or marquees supplied from an existing branch circuit NEW each $30.28 NA $30.00 NA83For additional branch circuits within the same sign, outline lighting system or marquee4.50 each $6.06 NA $6.00 $2 84 Structural Footings for Monument Sign/Art Sculpture New each $363.85 NA $363.00 NA85 Electrical Supplemental Fee 47.00 As set forth on pg 17 $52.87 NA$52.00 $5 # Description *Minimum Valuation Unit Notes Full CostCurrent Subsidy %Recommended Fee Fee Δ86 Deck 8.70 per sq. ft. * NA NA $15.00 $6 Miscellaneous Permitting FeesCity of Gilroy55Comprehensive User Fee Study11.4.aPacket Pg. 262Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction)
Community Development# Description Current Fee/Charge Unit Notes Full CostCurrent Subsidy %Recommended Fee Fee Δ87 Patio Cover / Structures with open walls16.30per sq. ft. *NANA$45.00$29 88 Exterior Stucco to Residence HomeNEWper sq ft.*NANA$7.00NA89 Outdoor Fireplace Based on valuation of $3,260 or contract price whichever is greater.+ supplemental fees for Electrical, Mechanical and/or PlumbingNANABased on valuation of $3,260 or contract price whichever is greater. $0 90 Above ground Tank905.00 + supplemental fees for Electrical, Mechanical and/or Plumbing‐Based on valuation or contract price whichever is greater.**NANA Based on valuation or contract price whichever is greater.** $0 * Minimum Valuation is considered as the valuation on this page or the contract / construction valuation whichever is greater ** ValuaƟon is based on contract price or construcƟon valuaƟon for material and labor at fair market value whicever is greaterTable A ‐ Building Valuation Data # Description Current Fee/Charge Unit Notes Full CostCurrent Subsidy %Recommended Fee Fee ΔPermit Issuance91 For issuing each permit 115.00 plus $155.30 26% $155.00 $40 92 For issuing each supplemental permit 47.00$52.87 11% $52.00 $5 Temporary Power Service+ Issuance fees93For a temporary service power pole or pedestal including all pole or pedestal‐mounted receptacle outlets and appurtenances, each23.50 flat fee $30.28 NA $30.00 $7 94For a temporary distribution system and temporary lighting and receptacle outlets for construction sites, decorative light, Christmas tree sales lots, firework stands, etc. each11.50 flat fee $124.39 NA $124.00 $113 Lighting FixturesFor lighting fixtures, sockets or other lamp‐holding devices:95 First 20 each 26.00 plus $31.49 17% $31.00 $5 96 Additional fixtures, each additional 20 21.00 each $25.43 NA $25.00 $4 For pole or platform‐mounted lighting fixtures:97 First 10 26.00 plus $31.49 17% $31.00 $5 98 each additional 1.30 each $1.82 NA $1.00 ($0)For theatrical‐type lighting fixtures or assemblies99 First 10 26.00 plus $31.49 17% $31.00 $5 100 each additional 1.30 each $1.82 NA $1.00 ($0)Electrical Permittings FeesCity of Gilroy56Comprehensive User Fee Study11.4.aPacket Pg. 263Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction)
Community Development# Description Current Fee/Charge Unit Notes Full CostCurrent Subsidy %Recommended Fee Fee ΔPower Apparatus(A)(B)For motors, generators, transformers, rectifiers, synchronous converters, capacitors, industrial eating, air conditioners and heat pumps, cooking or baking equipment and other apparatus, as follows: Rating in horsepower (HP), kilowatts (KW), kilovolt‐amperes (KVA), or kilovolt‐amperes‐reactive (KVAR):Note: a.For equipment or appliances having more than one motor, transformer, heater, etc., the sum of the combined ratings may be used. b.These fees include all switches, circuit breakers, contactors, thermostats, relays and other directly related control equipment.101 Up to and including 1, each 4.50$36.33 88% $36.00 $32 102 Over 1 and not over 10, each 11.50$31.49 63% $31.00 $20 103 Over 10 and not over 50, each 22.50$29.07 23% $29.00 $7 104 Over 50 and not over 100, each 42.50$26.64 ‐60% $26.00 ($17)105 Over 100, each 64.00$24.22 ‐164% $24.00 ($40)Busways+ Issuance fees106For trolley and plug‐in type busways, each 100 feet, or fraction thereof.6.80 Note:An additional fee will be required for lighting fixtures, motors and other appliances that are connected to trolley and plug‐in type busways. No fee is required for portable tools.$60.56 89% $60.00 $53 Carnivals and Circuses(A)Carnivals, circuses, or other traveling shows or exhibitions utilizing transportable‐type rides, booths, displays and attractionsFor permanently installed rides, booths, displays and attractions, use the UNIT FEE SCHEDULE107 For electric generators and electrically driven ride, each 23.50 each + Issuance fees $33.76 30% $33.00 $10 108For mechanically driven rides and walk‐through attractions or displays having electric lighting, each6.80 each + Issuance fees $27.01 75% $27.00 $20 109 For a system of area and booth lighting, each 6.80 each + Issuance fees $13.50 50% $13.00 $6 Electrical Services110 For main services of 400 amps or less 314.00$385.16 18% $385.00 $71 111 For main services over 400 amps 805.00$704.21 ‐14% $704.00 ($101)112For Sub-Panels of 200 amps or lessNEW + Issuance fees $177.55 NA $177.00 NA113For Sub-Panels over 200 amps NEW + Issuance fees $269.95 NA $269.00 NA114 Meter Pedelstal NEW flat fee $293.61 NA $293.00 NACell Tower: 115Cell Tower Permit feefee includes plan check for 1st and 2nd reviewNEW each plus $1,038.64 NA $1,038.00 NA116 With Battery NEW$785.11 NA $785.00 NA117 No Battery NEW$249.05 NA $249.00 NAElectrical Vehicle Charging118 EVC ‐ Residential NEW$275.68 NA $275.00 NA119 EVC ‐ Commercial NEWBased on valuation or contract price whichever is greater.**NA NABased on valuation or contract price whichever is greater.**NACity of Gilroy57Comprehensive User Fee Study11.4.aPacket Pg. 264Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction)
Community Development# Description Current Fee/Charge Unit Notes Full CostCurrent Subsidy %Recommended Fee Fee ΔUnit Fee ScheduleFor receptacle, switch and lighting outlets. For receptacle, switch, lighting or other outlets at which current is used or controlled, except services, feeders and meters:+ issuance fees120 First 20, lump sum 26.00 plus $31.49 17% $31.00 $5 121 each additional 20 21.00$25.43 17% $25.00 $4 Electrical Permit Fees for new construction or addition shall be the Division Hourly Rate (half‐hour minimum) per required inspection or based on the fixture counts or the fee per square foot based on the construction category as set# Category Cost per Trade Unit Notes Full CostCurrent Subsidy %Recommended Fee Fee Δ122 Assembly Occupancies 0.115 per square foot $0.118 NA $0.118 $0 123 Hazardous Use 0.251 per square foot $0.256 NA $0.256 $0 124 Hotel / Motel 0.115 per square foot $0.136 NA $0.136 $0 125 Manufacturing 0.251 per square foot $0.256 NA $0.256 $0 126 Medical / Dental Office 0.168 per square foot $0.247 NA $0.247 $0 127 Office / Shell Speculative Uses 0.168 per square foot $0.178 NA $0.178 $0 128 Parking Structure 0.021 per square foot $0.021 NA $0.021 $0 129 Repair Garage / Gas Station 0.251 per square foot $0.256 NA $0.256$0 130 Research and Development0.168per square foot$0.172 NA$0.172$0 131Residential (single, two‐family and multifamily apartments and condominiums)0.136per square foot$0.158 NA$0.158$0 132 Restaurant / Market0.251per square foot$0.242 NA$0.242($0)133 Commercial Restrooms0.251per square foot$0.724 NA$0.724$0 134 Store / Retail0.168per square foot$0.167 NA$0.167($0)135 Warehouses0.052per square foot$0.092 NA$0.092$0 136 All Others0.136per square foot$0.079 NA$0.079($0)# DescriptionCurrent Fee/ChargeUnitNotesFull CostCurrent Subsidy %Recommended Fee Fee ΔPermit Issuance(A) (B)137 For issuing each permit115.00plus$155.30 26% $155.00$40 138 For issuing each supplemental permit47.00$52.87 11% $52.00$5 Heating, Ventilation, and Air Conditioning (HVAC)139Residential (New) Furnace and / or AC/Condenser293.00$332.00 12% $332.00$39 140Residential existing (Replace) Furnace and / or AC/CondenserNEW$192.73 NA$192.00NA141Residential (New, Adding, Replacing and / or Relocating) Ducting and vents.NEW each + Issuance fees, if standalone $27.58 NA $27.00 NA142 Commercial (New) Furnace and/or HVAC/Condenser NEW$494.58 NA $494.00 NAElectrical Permits Fees (A)(B)forth below. These Permit Fees are in addition to the Permit Issuance Fees. These fees do not include Plan Check fees.Mechanical Permit and Plan Review(a)(b)City of Gilroy58Comprehensive User Fee Study11.4.aPacket Pg. 265Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction)
Community Development# Description Current Fee/Charge Unit Notes Full CostCurrent Subsidy %Recommended Fee Fee Δ143 Commercial existing (Replace) Furnace and/or HVAC/CondensorNEWFlat Fee or based on construction valuation, whichever is greater$366.51 NA $366.00 NA144 Commercial ‐ Ducts and Vents (New, Replacing or Relocating) NEW each +issuance fees, if standalone $30.00 NA $30.00 NAUnit Fee Schedule + issuance fees145For the installation or relocation of each forced‐air or gravity‐type furnace or burner, including ducts and vents attached to such appliance, up to 100,000 btu/h13.60$18.41 NA $18.00 $4 146For the installation or relocation of each forced‐air or gravity‐type furnace or burner, including ducts and vents attached to such appliance, over 100,000 btu/h15.70$18.41 NA $18.00 $2 147For the installation or relocation of each floor furnace, including vent 13.60$15.99 NA $15.00 $1 148For the installation or relocation of each suspended heater, recessed wall heater or floor‐mounted unit heater13.60$15.99 NA $15.00 $1 149For the installation, relocations or replacements of each appliance vent installed and not included in an appliance permit 6.50$7.75 NA $7.00 $1 150For the repair of, alteration of, or addition to each heating appliance, refrigeration unit, cooling unit absorption unit, or each heating, cooling, absorption, or evaporative cooling system, including installation of controls regulated by this code13.60$15.99 NA $15.00 $1 151For the installation or relocation of each boiler or compressor to and including 3 horsepower, or each absorption system to and including 100,000 btu/h13.60$15.99 NA $15.00 $1 152For the installation or relocation of each boiler or compressor to and including 3 horsepower and including 15 horsepower, or each absorption system over 100,000 btu/h to and including 500,000 btu/h23.50$27.86 NA $27.00 $4 153For the installation or relocation of each boiler or compressor over 15 horsepower to and including 30 horsepower, or each absorption system over 500,000 btu/h to and including 1,000,000 btu/h32.70$38.76 NA $38.00 $5 154For the installation or relocation of each boiler or compressor over 30 horsepower to and including 50 horsepower, or each absorption system over 1,000,000 btu/h to and including 1,750,000 btu/h48.20$56.92 NA $56.00 $8 City of Gilroy59Comprehensive User Fee Study11.4.aPacket Pg. 266Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction)
Community Development# Description Current Fee/Charge Unit Notes Full CostCurrent Subsidy %Recommended Fee Fee Δ155For the installation or relocation of each boiler or compressor to and including 50 horsepower, or each absorption system over 1,750,000 btu/h87.00$102.94 NA $102.00 $15 156 For each air‐handling unit over 10,000 cfm 15.70$18.41 NA $18.00 $2 157 For each evaporative cooler other than portable type 10.00$15.74 NA $12.00 $2 158 For each ventilating fan connected to a single duct 6.50$7.63 NA $7.00 $1 159For each ventilation system which is not a portion of any heating or air conditioning system authorized by a permit 10.00$12.11 NA $12.00 $2 160For the installation of each hood which is served by mechanical exhaust, including the ducts for such hood10.00$12.11 NA $12.00 $2 161 For installation or relocation of each domestic type incinerator 15.70$18.41 NA $18.00 $2 162For the installation or relocation of each commercial or industrial type incinerator64.00$76.30 NA $76.00 $12 163For each appliance or piece of equipment regulated by this code but not classed in other appliance categories or for which no other fee is listed 10.00$12.11 NA $12.00 $2 Mechanical Permit Fees for new construction or addition shall be the Division Hourly Rate (half‐hour minimum) per required inspection or based on the fixture counts or the fee per square foot based on the construction category as set# Category Cost per Trade Unit Notes Full CostCurrent Subsidy %Recommended Fee Fee Δ164 Assembly Occupancies 0.115 per square foot $0.118 NA $0.118 $0 165 Hazardous Use 0.251 per square foot $0.256 NA $0.256 $0 166 Hotel / Motel 0.115 per square foot $0.136 NA $0.136 $0 167 Manufacturing 0.251 per square foot $0.256 NA $0.256 $0 168 Medical / Dental Office 0.168 per square foot $0.247 NA $0.247 $0 169 Office / Shell Speculative Uses 0.168 per square foot $0.178 NA $0.178 $0 170 Parking Structure 0.021 per square foot $0.021 NA $0.021 $0 171 Repair Garage / Gas Station 0.251 per square foot $0.256 NA $0.256$0 172 Research and Development0.168per square foot$0.172 NA$0.172$0 173Residential (single, two‐family and multifamily apartments and condominiums)0.136per square foot$0.158 NA$0.158$0 174 Restaurant / Market0.251per square foot$0.242 NA$0.242($0)175 Restrooms0.251per square foot$0.724 NA$0.724$0 176 Store / Retail0.168per square foot$0.167 NA$0.167($0)177 Warehouses0.052per square foot$0.092 NA$0.092$0 forth below. These Permit Fees are in addition to the Permit Issuance Fees. These fees do not include Plan Check fees.Mechanical Permits Fees (A)(B)City of Gilroy60Comprehensive User Fee Study11.4.aPacket Pg. 267Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction)
Community Development# Description Current Fee/Charge Unit Notes Full CostCurrent Subsidy %Recommended Fee Fee Δ178 All Others0.136per square foot$0.079 NA$0.079($0)# DescriptionCurrent Fee/ChargeUnitNotesFull CostCurrent Subsidy %Recommended Fee Fee ΔPermit Issuance(A) (B)179 For issuing each permit115.00plus$155.30 26% $155.00$40 180 For issuing each supplemental permit47.00$52.87 11% $52.00$5 Water Heater & Water Softener permitting fees181 Tankles Water‐heaterNEW$219.33 NA$219.00NA182 Water heater replacement147.00$185.57 21% $185.00$38 183 Electric water heaterNew$185.57 NA$185.00NA184 Heat Pump Water HeaterNewflat fee$254.66 NA$254.00NA185 For each water heater vent11.00each+ Issuance Fees, if standalone$13.32 NA$13.00$2 *If converting and/or relocating, Building Plan Check and Building Inspections fees are also applicable.186 Water SoftnerNEWflat fee$146.86 NA$146.00NAWaterline & Sewer Repipe187 Residential repipe waterlineNEW$265.53 NA$265.00NA188 Residential repipe from house to main waterlineNEW$185.57 NA$185.00NA189 Residential repipe sewerNEW$354.89 NA$354.00NA190 Residential repipe from house to main sewerNEW$264.05 NA$264.00NA191 Commercial repipe sewerNEW$715.06 NA$715.00NA192 Commercial repipe from house to main sewerNEW$449.00 NA$448.00NA193 For each building sewer and each trailer park sewer28.30each+issuance fee$33.91 17% $33.00$5 Unit Fee Schedule + issuance fees194 For each plumbing fixture or trap or set of fixtures on one trap 8.90each$12.11 NA$12.00$3 194For each industrial waste pretreatment interceptor including its trap and vent excepting kitchen‐type grease interceptors functioning as fixture traps18.00each$24.22 NA$24.00$6 195For installation, alteration, or repair of water piping and/or water treating equipment, each4.50each$5.45 NA$5.00$1 196 For repair or alteration of drainage or vent piping, each fixture 4.50each$5.45 NA$5.00$1 197For each lawn sprinkler system on any one meter, including backflow protection devices therefore 13.00each$15.74 NA$15.00$2 For atmospheric‐type vacuum breakers:198 1 to 5 11.00each$13.32 NA$13.00$2 199 Over 52.40each$2.91 NA$2.00($0)Plumbing Permit and Plan Review(a)(b)City of Gilroy61Comprehensive User Fee Study11.4.aPacket Pg. 268Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction)
Community Development# Description Current Fee/Charge Unit Notes Full CostCurrent Subsidy %Recommended Fee Fee ΔFor each back flow protective device other than atmospheric‐type vacuum breakers200 2 inches and smaller 11.00 each $13.32 NA $13.00 $2 201 Over 2 inches 22.50 each $26.64 NA $26.00 $4 Plumbing Permit Fees for new construction or addition shall be the Division Hourly Rate (half‐hour minimum) per required inspection or based on the fixture counts or the fee per square foot based on the construction category as set# Category Cost per Trade Unit Notes Full CostCurrent Subsidy %Recommended Fee Fee Δ202 Assembly Occupancies 0.115 per square foot $0.118 NA $0.118 $0 203 Hazardous Use 0.251 per square foot $0.256 NA $0.256 $0 204 Hotel / Motel 0.115 per square foot $0.136 NA $0.136 $0 205 Manufacturing 0.251 per square foot $0.256 NA $0.256 $0 206 Medical / Dental Office 0.168 per square foot $0.247 NA $0.247 $0 207 Office / Shell Speculative Uses 0.168 per square foot $0.178 NA $0.178 $0 208 Parking Structure 0.021 per square foot $0.021 NA $0.021 $0 209 Repair Garage / Gas Station 0.251 per square foot $0.256 NA $0.256$0 210 Research and Development0.168per square foot$0.172 NA$0.172$0 211Residential (single, two‐family and multifamily apartments and condominiums)0.136per square foot$0.158 NA$0.158$0 212 Restaurant / Market0.251per square foot$0.242 NA$0.242($0)213 Restrooms0.251per square foot$0.724 NA$0.724$0 214 Store / Retail0.168per square foot$0.167 NA$0.167($0)215 Warehouses0.052per square foot$0.092 NA$0.092$0 216 All Others0.136per square foot$0.079 NA$0.079($0)# CategoryCost per TradeUnitNotesFull CostCurrent Subsidy %Recommended Fee Fee Δ217 Mininmum plan review290.00Minimum (1 hr Plan Review)$263.62 ‐10% $263.00($27)218 Up to 1000 cubic yards 390.00Inpection Times Included.$384.31 ‐1%$384.00($6)219 1001 cubic yards, to 10,000 cubic yards390.00for the first 1,000 cubic yardsplus $12.60 for each additional 1,000 cubic yards, or fraction thereof$384.31 ‐1%$384.00($6)220 10,001 cubic yards, to 100,000 cubic yards500.00for the first 10,000 cubic yardsplus $54.00 for each additional 10,000 cubic yards, or fraction thereof$495.62 ‐1%$495.00($5)forth below. These Permit Fees are in addition to the Permit Issuance Fees. These fees do not include Plan Check fees.Plumbing Permits Fees (A)(B)Grading/Cut and/or Fill Permit Fees(a)City of Gilroy62Comprehensive User Fee Study11.4.aPacket Pg. 269Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction)
Community Development# Description Current Fee/Charge Unit Notes Full CostCurrent Subsidy %Recommended Fee Fee Δ221 100,001 cubic yards or more985.00for the first 10,000 cubic yardsplus $30.40 for each additional 10,000 cubic yards, or fraction thereof$1,074.36 8%$1,074.00$89 # DescriptionCurrent Fee/ChargeUnitNotesFull CostCurrent Subsidy %Recommended Fee Fee Δ222 Loan Demand Payoff Fee250.00$6.00 ‐4067% $6.00($244)(A) Reflects fee increases to offset the city’s expenditures for the city’s High Speed Rail Master Plan effort.*For any user fee service request that is outside the scope, or for services for which there is no fee currently set, the City can charge up to the full cost of the FBHR for personnel involved.(B) Fee will be reduced by 4.49% for residential: photovoltaic; water heater, furnace, and air conditioning replacements; reroofs; and interior remodeling such as kitchen and bath remodels. For purposes of this section, “residential” is considered as one‐ and two‐family residences, including interior and photovoltaic work on individual condominium and townhouse units. Housing Community Development Loan FeesCity of Gilroy63Comprehensive User Fee Study11.4.aPacket Pg. 270Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction)
Minimum Value Maximum ValueCurrent Base RateSuggested Base RateCurrent Plus $$Suggested Plus $$ For every11,000 250.00259.560.000.0001,0012,000 250.00259.563.483.611002,001 25,000 286.04296.9815.2215.801,00025,001 50,000 636.18660.5010.9811.401,00050,001 100,000 910.75945.577.617.901,000100,001 500,000 1,291.341,340.716.086.311,000500,001 1,000,000 3,724.573,866.965.165.361,0001,000,001 and up 6,305.426,545.593.423.551,000Percent Change = 3.8%Cost Recovery Level = 100%Building Valuation TableSuggested (All New Construction)City of Gilroy64Comprehensive User Fee Study11.4.aPacket Pg. 271Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction)
Planning Fees ‐ Processing Fees and Charges (City Code Section 7.1. (a))# DescriptionCurrent Fee/Charge UnitNotesFull CostCurrent Subsidy % Recommended Fee Fee Δ1Administrative Time Extension380.00plus publishing costs***$410.06 7% $410.06$30 2Annexation15,910.00Plus actual attorney fees. Note: Actual cost for other related fees will be collected by the City for outside agencies.$19,632.13 19% $19,632.13$3,722 Appeals 3 Appeal, Planning Commission600.00Plus publishing costs***Plus actual attorney fees$930.31 36% $930.00$330 4 Appeal, All others2,540.00Plus publishing costs***Plus actual attorney fees$1,145.09 ‐122% $1,145.00($1,395)Architectural and Site Review ‐ Commercial, Wireless & Miscelleanous4,55 New Construction (up to 5,000 sq.ft.)8,900.00$10,365.88 14% $10,365.88$1,466 6 New Construction (each additonal 5,000 sq.ft.)695.00$925.92 25% $925.92$231 7 Remodel/Additions4,065.00Additions up to 10% of existing SF$2,647.74 ‐54% $2,647.74($1,417)Architectural and Site Review ‐ Residential8 New Construction, 4 or more homes (base fee)7,295.00$8,293.65 12% $8,294.00$999 9New Construction, 4 or more homes (add for each flat land tract plan)$540.00$591.58 9% $592.00$52 10New Construction, 4 or more homes (add for each hillside tract plan)1,160.00$1,202.53 4% $1,203.00$43 11 Hillside (single custom home), Duplex or Triplex4,090.00$4,532.05 10% $4,532.00$442 12 Remodel/Additions735.00$1,172.46 37% $1,172.46$437 Architectural and Site Review ‐ Industrial4,513 New Construction (up to 10,000 sq.ft.)5,125.00$7,655.15 33% $7,655.15$2,530 14 New Construction (each additonal 10,000 sq.ft.)$290.00$604.08 52% $604.08$314 15 Remodel/Additions2,130.00Additions up to 10% of existing SF$2,292.14 7% $2,292.14$162 16Conditional Use Permit5,275.00Plus publishing costs***Plus actual attorney fees$5,530.11 5% $5,530.00$255 17Development Agreement17,250.00DepositMinimum (Hourly rate invoiced against initial deposit, plus $10,000 deposit for attorney fees)$19,081.10 10% $19,081.10$1,831 Environmental 18 Categorical Exemption450.00$536.41 16% $536.00$86 19 Initial Study/ND/MND, non‐complex project (Staff Review) 9,415.00min15% of contract cost (admin) + Mitigation Monitoring cost + publishing cost*** + 15% staff review + 10% contingency$12,113.17 22% $12,113.17$2,698 20 Environmental Impact Report (staff review)19,820.00min15% of contract cost (admin) + Mitigation Monitoring cost + publishing cost*** + 15% staff review + 10% contingency$23,739.79 17% $23,739.79$3,920 21 EIR/MND/Initial Study (Consultant Contract)pass throughActual contract cost plus 15% of contract cost + 15% staff review + 10% contingency NA NA$0 General Plan Amendment22 General Plan Map Amendment (up to 10 acres)15,575.00min + hourly rate if fee explus attorney fees and publishing cost***$15,603.93 0% $15,603.93$29 23 General Plan Map Amendment (each additional 10 acres)$100.00$150.27 33% $150.00$50 24 General Plan Text Amendment10,710.00min + hourly rate if fee explus attorney fees and publishing cost***$18,747.74 43% $18,747.74$8,038 25Habitat Conservation Permit Processing, Not Complex1,150.00DepositDivision hourly rate invoiced against initial deposit plus consultant cost and 15% admin fee$1,373.34 16% $1,373.34$223 26Mills Act Request1,305.00Plus actual attorney fees$2,112.49 38% $2,112.49$807 27Minor Deviation Variance Review1,235.00$2,451.84 50% $2,451.84$1,217 28Minor Modification320.00Deposit$332.71 4% $320.00$0 29Miscellaneousdivision hourly rate NA NA division hourly rate $0 30Mobile Home Rent Review4,945.00plus arbitrator's fee$5,032.26 2% $5,032.26$87 31Planned Unit Development 13,875.00plus A&S fee, plus attorney fees + publishing fees$16,202.91 14% $16,203.00$2,328 City of Gilroy65Comprehensive User Fee Study11.4.aPacket Pg. 272Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction)
Planning Fees ‐ Processing Fees and Charges (City Code Section 7.1. (a))# DescriptionCurrent Fee/Charge UnitNotesFull CostCurrent Subsidy % Recommended Fee Fee Δ32Reasonable Accommodation400.00$1,120.29 64% $1,120.00 $720 33Sign Permit (first sign)126.00$293.14 57% $293.00 $167 34Temporary Use Permit (standard) 925.00 min Planning Division hourly rate plus attorney fees $2,074.06 55% $2,074.00 $1,149 35Tentative Parcel Map (up to 4 lots)7,355.00 Plus publishing costs***Plus actual attorney fees $10,252.85 28% $10,253.00 $2,898 Tentative Tract Map (5 or more lots)36 Tentative Tract Map (5 ‐ 12 lots) 13,995.00 Plus publishing costs***Plus actual attorney fees $19,036.49 26% $19,036.49 $5,041 37 Tentative Tract Map (each lot over 12 lots, flat lot) $115.00$301.85 62% $302.00 $187 38 Tentative Tract Map (each lot over 12 lots, Hillside lot) $500.00$876.58 43% $877.00 $377 39 Tentative Tract Map Extension 1,010.00 Plus publishing costs***Plus actual attorney fees $767.71 ‐32% $768.00 ($242)Urban Service Area Amendment 40 Urban Service Area Amendment (up to 10 acres) 27,785.00plus publishing cost and attorney fees. LAFCO fees and additional deposit to be provided after city action***$29,187.63 5% $29,188.00 $1,403 41 Urban Service Area Amendment (each additoinal 10 acres) $165.00$423.15 61% $423.00 $258 42Variance Request5,185.00 Plus publishing costs***Plus actual attorney fees $5,469.66 5% $5,469.66 $285 Zoning Amendment43 Zoning Map Amendment (up to 10 acres) 5,060.00 plus publishing costs***Plus actual attorney fees $11,884.56 $0.57 $11,884.56 $6,825 44 Zoning Map Amendment (each additional 10 acres) 120.00$150.27 $0.20 $150.27 $30 45 Zoning Ordinance Text Amendment7,085.00Plus publishing costs***Plus actual attorney fees$14,417.42 $0.51 $14,417.42$7,332 46Pre‐Application DRG Review1,520.00$3,485.52 56% $3,485.52$1,966 Other Review and Service Fees47 Continuation Request by ApplicantHourly Ratehourly rate, minimum $370 plus publishing cost***NA NA Hourly Rate$0 48 Research Hourly Rate + Direct Cost Depositminimum 2 hourNA NA Hourly Rate + Direct Cost $0 49 Planning InspectionsDivisional hourly rate$69.00 minimumNA NADivisional hourly rate $0 50 Planning Plan CheckDivisional hourly rate$69.00 minimumNA NA Divisional hourly rate $0 51 Security Deposit Application Fee270.00DepositNA NA $270.00$0 52 Affordable Housing Project4,290.00plus attorney fees$3,271.03‐31% $3,271.03($1,019)53 Affordable Housing Agreement3,450.00unit/Depositplus attorney fees$6,089.20 43% $6,089.20$2,639 54 Designated Historic Resource review permit (Admin)3,560.00$2,935.88 ‐21% $2,935.88($624)55 Designated Historic Resource review permit (Commission) 3,560.00plus consultant fees and 15% admin fee$2,967.01 ‐20% $2,967.00($593)56 Historic Demolition / Significant Alteration review permit (commission) Newplus consultant fees and 15% admin fee$4,423.38 NA $5,712.91NA57 Initial Study/ND/MND, Complex project (Staff Review)New15% of contract cost (admin) + Mitigation Monitoring cost + publishing cost***$5,068.23 NA $12,581.51NA58 Existing Sign Program PermitNew$507.70 NA $507.70NA59 New Sign Program (e.g., for new/remodeled shopping centers) New$2,224.20 NA $2,224.20NA60 Sign Permit, each additional sign New$126.93 NA $126.93NA61 Minor Temporary Use Permit (e.g. flower vendors, model homes, trailers)New$1,536.17 NA $1,536.17NA62 Minor Conditional Use Permit (e.g., wine bar, farmers market)New$1,159.68 NA $1,159.68NA63 Habitat Conservation Permit Processing ‐ Complex Newplus consultant fees$3,162.47 NA $3,162.00NA64 Zoning VerificationNew$400.42 NA $400.42NA65 General Plan / Zoning Ordinance Update Fee15%of Planning Applications20%25% 20%5%City of Gilroy66Comprehensive User Fee Study11.4.aPacket Pg. 273Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction)
Planning Fees ‐ Processing Fees and Charges (City Code Section 7.1. (a))# DescriptionCurrent Fee/Charge UnitNotesFull CostCurrent Subsidy % Recommended Fee Fee Δ66 Technology FeeNewOf Planning Applications and Building Permits5%NA 5%NA67 Public Noticing FeeNew$1,128.32 NA $1,128.32NA68 Murray Las Animas Overlay FeeNew$1,422.32 NA $1,422.00NA69 Tree Removal Permit300.00$332.71 NA $300.00$0 70 Zoning Clearance (Wireless Facilities320.00Depositplus RF Report Preparation Cost$335.57 NA $320.00$0 For those projects involving multiple public hearing applications, the publication costs will be reduced to a single charge when it is determined, and reasonably possible, that the public‐hearing applications can be processed together.For any user fee service request that is outside the scope, or for services for which there is no fee currently set, the City can charge up to the full cost of the FBHR for personnel involved.City Attorney costs will be passed on directly to applicant as neededAdditional fees may be assessed, as determined by the Community Development Director, based upon complications due to environmental review, three or more re‐submittals, applicant‐initiated project revisions, continued public hearings, additional publishing City of Gilroy67Comprehensive User Fee Study11.4.aPacket Pg. 274Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction)
27368 Via Industria, Suite 200
Temecula, California 92590-4856
800.755.6864 | Fax: 888.326.6864
951.587.3500 | Fax: 951.587.3510
www.willdan.com
11.4.a
Packet Pg. 275 Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction)
ORDINANCE NO. 2022-XX
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF GILROY AMENDING SECTIONS 7.3, 7.4 AND 7.5 OF
CHAPTER 7 OF THE GILROY CITY CODE ENTITLED
COST COMPARISON SYSTEM FOR FEE AND SERVICE
CHARGE REVENUE
WHEREAS, pursuant to Article XIIIB of the California Constitution, it is the intent of the
City Council of the City of Gilroy to require the ascertainment and recovery of costs reasonably
borne from fees and charges levied therefor in providing the regulation, products, or services as
enumerated in the Chapter 7 of the City’s code; and
WHEREAS, a comprehensive user fee study was conducted by the City of Gilroy to
determine the costs of providing services; and
WHEREAS, section 7.3 of the Chapter 7 defines “cost reasonably borne” as used and
ordered to be applied; and
WHEREAS, it is the City’s intent to exclude certain expense types which may not be
directly attributable to a service being provided; and
WHEREAS, section 7.4 and 7.5 of the Chapter 7 provides a schedule of fees and service
charges and outlines the frequency at which the fees shall be reviewed and adjusted via an annual
public hearing; and
WHEREAS, it is the City’s intent to (1) replace the existing schedule with a revised
schedule, (2) to automatically adjust the said fees and service charges annually in July based on
the published Consumer Price Index (CPI) for the San Francisco Area or, if said index ceases to
be published, according to a comparable measure of inflation determined by the City’s Finance
Director; and (3) conduct a full analysis of City’s cost reasonably borne not less than every five
years; and
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 7.3 through Section 7.5 of the Gilroy City Code is amended to read as follows:
7.3 “Costs reasonably borne” defined.
“Costs reasonably borne,” as used and ordered to be applied in this chapter are to consist of the
following elements:
11.4.b
Packet Pg. 276 Attachment: Draft Ordinance (3861 : User Fee Study Introduction)
Ordinance No. 2022-XX
User Fee Schedule
City Council Regular Meeting | July 5, 2022
Page 2 of 9
(a) All applicable direct costs including, but not limited to salaries, wages, overtime, employee
fringe benefits, services and supplies, maintenance and operation expenses, contracted
services, special supplies, and any other direct expense incurred.
(b) All applicable indirect costs including, but not restricted to, building maintenance and
operations, equipment maintenance and operations, communications expenses, computer
costs, printing and reproduction, vehicle expenses, insurance, debt services and like
expenses when distributed on an accounted and documented rational proration system.
(c) Fixed assets recovery expenses, consisting of depreciation of fixed assets, and additional fixed
asset expense recovery charges calculated on the current estimated cost of replacement,
divided by the approximate life expectancy of the fixed asset. A further additional charge
to make up the difference between book value depreciation not previously recovered and
reserved in cash and the full cost of replacement, which also shall be calculated and
considered a cost so as to recover such unrecovered costs between book value and cost of
replacement over the remaining life of the asset.
(d) General overhead, expressed as a percentage, distributing and charging the expenses of the city
council, city administrator, city clerk, elections, city treasurer, finance department, city
attorney, unallocated non-departmental expenses, and all other staff and support service
provided to the entire city organization as now organized and as it may be reorganized at
any time in the future. Overhead shall be prorated between tax-financed services and fee-
financed services on the basis of said percentage so that each of taxes and fees and charges
shall proportionately defray such overhead costs.
(e) Departmental overhead, expressed as a percentage, distributing and charging the cost of each
department head and his or her supporting expenses as enumerated in subsections (a), (b),
(c) and (f) of this section.
(f) Debt service costs, consisting of repayment of principal, payment of interest, and trustee fees
and administrative expenses for all applicable bond, certificate, or securities issues or loans.
Any required coverage factors of added reserves beyond basic debt service costs also shall
be considered a cost if required by covenant within any securities ordinance, resolution,
indenture or general law applicable to the city. (Ord. No. 90-5, § 1, 3-19-90; Ord. No. 91-
15, §§ 3, 4, 5-20-91)
When developing the cost allocation plan or service charge model which establishes the said fees
and service charges, certain expenses may be considered for exclusion from the calculation which
may not be directly attributable to a service being provided.
7.4 Schedule of fees and service charges.
The primary factor for the cost of a City’s service or fee is usually the costs of the personnel which
typically increase year over year. As such, tying an inflationary factor to annually adjust the fees
and services charges is deemed reasonable. Unless otherwise specified by resolution, the fees and
service charges set pursuant to this chapter shall be automatically adjusted annually in July for
Consumer Price Index (CPI) increase so as to recover the listed percentage of costs reasonably
11.4.b
Packet Pg. 277 Attachment: Draft Ordinance (3861 : User Fee Study Introduction)
Ordinance No. 2022-XX
User Fee Schedule
City Council Regular Meeting | July 5, 2022
Page 3 of 9
borne necessary to provide the listed regulation, product or service. The CPI increase shall be
based on the published CPI for San Francisco Area (San Francisco – Oakland – San Jose) April
Edition or, if said index ceases to be published, according to a comparable measure of inflation as
determined by the City’s Finance Director, and rounded to nearest dollar unless a different edition
or rounding is otherwise specified by resolution. The City Administrator, Finance Director and
each City department head, under the direction of the City Administrator, shall review the fees and
services charges periodically and provide, if necessary, an adjusted fee or charge schedule to the
City Council for its consideration, in place of or in addition to the automatic annual CPI increase
for the regulation, product or service below. A full analysis of City costs reasonably borne, as
defined in Section 7.3, shall be conducted not less than every five years.
Regulation, Product, or Service
Percentage of Cost Reasonably
Borne to Be Recovered
(percent)
Method of Cost Recovery
(F=Fee) (H=Hourly)
General Administration:
Miscellaneous:
Letters of verification, certification
and clearance 100 H
Notary service 100 F
Notice of intention to file 100 F
Research 100 H
Special services/inspections 100 H
Publications 100 H and F
Reproduction 100 H and F
Subpoena-witnesses/duces
tecum 100 H and F
Finance:
Business license—
New/Move/Change 100 F
Miscellaneous:
Abandoned shopping cart 100 F
Delinquent account receivables 100 H
Refuse collection lien process 100 H
Returned check fee 100 F
Rentals 100 F
Sewer enterprise 100 F
Water enterprise 100 F
Backflow inspections 100 H
Construction water 100 F
Delinquency services 100 F
Locking services 100 F
Meter installation, removal and
testing 100 H and F
11.4.b
Packet Pg. 278 Attachment: Draft Ordinance (3861 : User Fee Study Introduction)
Ordinance No. 2022-XX
User Fee Schedule
City Council Regular Meeting | July 5, 2022
Page 4 of 9
Portable meter rental 100 F
Water meter 100 F
Water (tank truck) 100 F
Water service initiation 100 F
Water and Wastewater Rates Fees set by resolution, not subject to CPI adjustment
Community Development Department—All Divisions:
After hours building and fire
inspection 100 H
Building and fire re-inspections 100 H
Special inspections 100 H
Community Development Department—Building:
Building plan change review 100 F
Building plan check 100 F
Building permit 100 F
Miscellaneous
Alternative materials review 100 F
Building code appeal 100 F
Building moving/demolition 100 F
Lot change 100 F
Pre-roof inspection 100 H
Temporary certificate of
occupancy 100 F
Permits and inspection 100 F
Community Development Department— Fire Prevention:
Fire clearance inspection 100 H
Fire code/gen. fire insp. 100 F
Fire flow test 100 F
Fire plan check, including energy
storage systems 100 F
Hazmat/CUPA Inspection 100 F
Fireworks—Aerial display 100 H
Fireworks—Retail sales 100 F
Fireworks—Warehouse 100 H
Special event 100 F
Weed abatement 100 F
11.4.b
Packet Pg. 279 Attachment: Draft Ordinance (3861 : User Fee Study Introduction)
Ordinance No. 2022-XX
User Fee Schedule
City Council Regular Meeting | July 5, 2022
Page 5 of 9
Community Development Department—Hazardous Materials:
Facility closure 100 H
Hazardous materials storage
permit 100 F
Hazardous waste generators 100 F
Protected aboveground or
underground storage tank 100 F
Spill cleanup and investigation
(including fire dept. costs) 100 H
Tank removal/installation 100 F
Tiered permit 100 F
Community Development Department— Pretreatment:
Pool drain inspection 100 F
Pretreatment plan check and
inspections 100 F
Special events plan check 100 F
Community Development Department—Planning:
Annexation 100 F
Appeals 100 F
Architectural and site 100 F
Conditional use 100 F
Continuance request by applicant 100 F
Development time extension 100 H
Environmental:
Categorical exemption 100 F
Initial study 100 H
Expanded initial study 100 H
Initial study—City preparation 100 H
Environmental impact report 100 F
General plan map amendment 100 F
General plan text amendment 100 F
Historic neighborhood 100 F
Historic site 100 F
Habitat Conservation 100 F
Home occupation 0 —
Home occupation appeal 100 F
Minor deviation appeal 100 F
Minor deviation variance 100 F
11.4.b
Packet Pg. 280 Attachment: Draft Ordinance (3861 : User Fee Study Introduction)
Ordinance No. 2022-XX
User Fee Schedule
City Council Regular Meeting | July 5, 2022
Page 6 of 9
Mobile home rent 100 F
Planned unit development 100 F
Sign permit 100 F
Temporary use 100 F
Tentative parcel map 100 F
Tentative tract map 100 F
Urban service area 100 F
Variance 100 F
Williamson Act cancellation 100 F
Zoning change 100 F
Zoning code enforcement 100 H
Zoning ordinance amendment 100 F
Public Works Department—Engineering:
Development impact fees 100 F
Miscellaneous:
Assessment/ 100 F reapportionment map
Certificate of compliance 100 F
Encroachment
Handicap signs 100 F
Curb painting/signage 100 F
Wide/oversized vehicle 100 F
Stormwater best management
practice (BMP) setup and
monitoring
100 F
Public improvement plan check
and inspection 100 F
Subdivision final map and parcel
map 100 F
Recreation Services—Parks and Facilities:
Facility and parks rental* 100 F
11.4.b
Packet Pg. 281 Attachment: Draft Ordinance (3861 : User Fee Study Introduction)
Ordinance No. 2022-XX
User Fee Schedule
City Council Regular Meeting | July 5, 2022
Page 7 of 9
*Recreation facility and park rental have 4 categories (Category A, B, C, and D) as outlined below.
Category D represents 100 percent cost recovery. Fees for Categories A through C are set in the adopted
resolution.
Category A ‐ City and GUSD programs and special events
Category B ‐ Non‐profit Organizations
Category C ‐ City of Gilroy Residents (Private functions and/or open to the public)
Category D ‐ Non‐Residents or any company/business or group holding an event (social, business,
education or for profit)
Recreation Services - Seasonal Classes, Programs, and Events:
Aquatics
Fees for recreation classes and programs are established seasonally
at the time recreation activity guide is prepared. As such, these fees
are to be adjusted based on seasonal market analysis and should
consider fluctuations and trends in participation rates to attain
maximum cost recovery.
Recreation programs
Adult programs
Cultural classes/events
Preschool
Youth and teen programs
Special events
Fire Department:
False alarm 100 F
Police Department:
Permits—Regulatory:
Firearms sales 100 F
Mobile vendor 100 F
Massage 100 F
Solicitor’s 100 F
Animal control 100 F
Bingo 100 F
Cardroom 100 F
Concealed weapons 100 F
Dance hall 100 F
Pawnbrokers, junk and
secondhand dealers 100 F
Regulatory bar 100 F
Taxi cab—Company 100 F
Taxi cab—Driver 100 F
Tow Truck 100 F
Other Services:
Call back/2nd response 100 H
11.4.b
Packet Pg. 282 Attachment: Draft Ordinance (3861 : User Fee Study Introduction)
Ordinance No. 2022-XX
User Fee Schedule
City Council Regular Meeting | July 5, 2022
Page 8 of 9
Crime analysis services 100 H
DUI investigation 100 H
False alarm 100 F
Graffiti abatement 100 H
Provision of special services 100* H
School truancy 100 H
Tow truck driver 100 F
Vehicle equipment inspection 100 F
Vehicle impound/release 100 F
Reproduction of documents 100 F
False alarm 100 F
* 100% cost recovery except for events where the public safety benefit, as determined by the
police chief, is of community concern. In this case the event may be subsidized at 55%.
All fees and charges set pursuant to this section shall take effect immediately upon the passage of
a resolution by the City Council setting forth said specific fee amounts, with the exception of the
annual automatic CPI adjustment, which shall take effect every July 1 and shall not require passage
of a resolution by the City Council. Said fees and charges will be initially adopted via resolution
by the city council after a public hearing. The city clerk shall cause notice to be provided as set
out in Government Code Section 6062.a.
Section 7.5 Provision of data.
Pursuant to the California Government Code, at least ten (10) days prior to the required public
hearing set out herein, the city administrator shall make available to the public appropriate data
indicating the cost, or estimated cost, required to support the fees and charges for which changes
are proposed to be made or fees or charges imposed. The city administrator also shall provide a
summary of the present fee and charge schedules and those proposed at such public hearing. A
general explanation of such changes also shall be published per the requirements of Government
Code Section 6062.a.
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.
11.4.b
Packet Pg. 283 Attachment: Draft Ordinance (3861 : User Fee Study Introduction)
Ordinance No. 2022-XX
User Fee Schedule
City Council Regular Meeting | July 5, 2022
Page 9 of 9
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.
PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF GILROY this 5th
day of July 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
11.4.b
Packet Pg. 284 Attachment: Draft Ordinance (3861 : User Fee Study Introduction)
City of Gilroy
STAFF REPORT
Agenda Item Title: Introduction of Comprehensive User Fee Study Update
Meeting Date: May 16, 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
Receive report.
EXECUTIVE SUMMARY
As part of its FY22 and FY23 workplan, staff is completing an update to the City’s
Comprehensive User Fee Schedule which was last adopted in 2014. The fee schedule
establishes user fees charged for services rendered by various departments. The fee
schedule report is being finalized and the draft report will be made available for the
public and presented to the City Council in June, and subsequently will be brought back
for a public hearing to formally adopt the updated fee schedule.
BACKGROUND
11.4.c
Packet Pg. 285 Attachment: May 16th, 2022 Staff Report (3861 : User Fee Study Introduction)
The City’s current fee schedule was last updated and adopted in 2014. In 2019, the City
initiated a comprehensive user fee study update (the “study”) as part of its workplan.
However, in 2020 the project was paused due to the onset of the COVID-19 pandemic
which shifted the City’s priorities to addressing the challenges brought on by the
pandemic. As part of the current biennial budget development process, staff included
the completion of the user fee study project in its workplan. Over the last 10 months,
staff re-engaged with the consultant (Willdan Financial Services), reviewed the 2019
draft fee study schedules, and worked with various departments to adjust the
calculations based on budget and level of effort. This was needed as the 2019 update
was based on pre-pandemic levels of staffing and service budgets.
ANALYSIS
The study’s objective is to help determine the full cost of the services the City provides.
The total cost of each service included in the analysis is based on the full cost of
providing the service, including direct salaries and benefits, direct departmental costs,
and indirect costs from central support services. The scope of the study encompasses a
review and calculation of fees charged by the following departments and fee groups:
Administration, Finance, Wastewater, Building, Planning, Public Works, Recreation,
Police and Fire.
Process and Methodology
The City is made up of various departments, each with its own purpose and
function. Departments that provide support internally to other City departments
are generally referred to as central services. Examples of these include City
Council, City Administrator, City Attorney, City Clerk, Communications and
Engagement, Human Resources, and Finance. These departments perform
various functions that provide support to other operating departments including
Fire, Police, Community Development, and Public Works. The first step in
updating the fee study is to develop a Cost Allocation Plan (CAP), which is used
to determine the appropriate allocation of costs from the central service
departments to the operating departments and to ensure allowable versus
unallowable costs are in accordance with standard and accepted cost allocation
principles. These are often referred to as indirect costs or indirect overhead.
Next, the consultant and staff identify direct overhead for the operating
departments which include supplies, materials, and other direct overhead costs
within the respective department’s budget. The indirect cost and the direct
overhead costs are then averaged into the hourly rates for each employee
position.
The City’s user fee calculations are mostly time-based, except for select fees
which are either capped by legislation or follow the industry standard. In other
words, fees are developed by determining the amount of time that each position
works on a particular service rendered, multiplied by the average fully burdened
11.4.c
Packet Pg. 286 Attachment: May 16th, 2022 Staff Report (3861 : User Fee Study Introduction)
hourly rate for that position. This approach has been applied for most
departmental user fees except for Building Permits and the Recreation division’s
programmatic fees which are discussed further below.
Below is an illustrative example:
Building Permit Fees
For the building permit fees, the valuation-based method is utilized. The City’s
current practice, also the industry standard, for assessing building permit fees is
to utilize the International Code Council’s (ICC) building valuation data table
which provides the average construction costs per square foot. This is a common
methodology used by jurisdictions in determining permit fees. Building permit
fees are based on the valuation of the project, to reflect the amount of work to be
completed in reviewing the project. The larger the project, the higher the
valuation. Since larger projects require more staff time for review and
inspections, the fees escalate with the valuation to ensure the project pays for its
use of City resources, such as staff time, in permitting the project. No changes
will be recommended to this method, except for utilizing the most current ICC
building valuation data table.
Recreation Fees
Since 2014, the Recreation program fees, excluding facilities and park rentals,
have been established each season at the time that the recreation activity guide
is prepared. The fees are typically adjusted based on market analysis which
considers fluctuations and trends in participation rates, which helps to attain
maximum cost recovery. As part of the General Fund Fiscal Recovery Plan
instituted in 2020, the City Council fundamentally changed how the Recreation
division provides services. The General Fund contribution towards recreation
was reduced from $2.7 million to $1.5 million annually. Additionally, a new
11.4.c
Packet Pg. 287 Attachment: May 16th, 2022 Staff Report (3861 : User Fee Study Introduction)
approach was established that the $1.5 million would be expended on programs
that serve the needs of the City’s vulnerable population(s). Those programs
include adaptive, special needs, Senior Center, Youth Center, and volunteer
programs, as well as park and facility reservations. Any new programs identified
by the Division requires the City Administrator’s approval and must either be
accommodated within the existing $1.5 million funding or demonstrate 100% cost
recovery for consideration. The facilities and park rental fee group will be
included on the City’s updated user fee schedule.
Removal and Addition of Fees
Included in the comprehensive fee study update was a process of identifying
services that the departments are currently performing for which a current fee
does not exist. Departments also reviewed existing fees to see if any are
obsolete. As a result of this process, existing fees that are obsolete will be
recommended to be removed, and new fees for which a fee did not previously
exist will be added.
Inflationary Factor
Since most of the City’s user fees are time-based, it is recommended that City
Council include an inflationary factor in the resolution adopting the fee schedule.
As labor effort and costs associated with the provision of the service fluctuate
over time, having an inflationary factor affords the flexibility for the fee schedule
to remain current. The City can employ different approaches to inflationary
factors. The commonly used inflator is a form of Consumer Price Index (CPI). As
such, staff will be recommending an index to be utilized to annually adjust the fee
schedule. Building permit fees will be recommended to be adjusted at the release
of the ICC’s building valuation data table.
City Code Amendments via Ordinance
The City Code contains language pertaining to levels of cost recovery for fee-
based services, as well as the definition of what is to be included for such cost
analysis. Staff will be bringing forward some clean-up language to the Code that
aligns it with current and best practice. For example, current language requires
Council to annually approve a fee schedule, which has not been the practice.
While staff will recommend the fee schedule be adjusted annually by CPI, the full
scaled comprehensive fee study is generally conducted at a lesser frequency,
every three to five years. Further, it is recommended the definition of costs to be
included be revised to generally exclude debt service and capital expenses if it
cannot be directly ascribed to the service being provided as doing so could inflate
the department’s expenses which can result in higher fully burdened hourly rates
used in the time-based calculation.
11.4.c
Packet Pg. 288 Attachment: May 16th, 2022 Staff Report (3861 : User Fee Study Introduction)
The City Code’s Chapter 7, Section 7.4 provides for cost recovery percentage for
all product and services at 100% across all departments, except for recreation
programs which vary from 20% to 100% depending on the program. As
previously mentioned, as part of the General Fund Fiscal Recovery Plan
instituted during 2020, the City Council performed a reset of the Recreation
Division’s service levels and established any new programs to be 100% cost
recovery. Staff will propose Code changes that effectuate this change and direct
any future recreation programs and related fees be adjusted at the time the
program offering is made available based on market analysis and as approved
by the City Administrator.
FISCAL IMPACT/FUNDING SOURCE
The cost for the user fee study to update the 2019 study is $7,500 and is included in the
Finance Department’s adopted FY22 budget. Various departments have contributed
efforts to review and update the fee calculation models and the work was
accommodated within their respective department’s workplan.
NEXT STEPS
The report will be introduced and presented to the City Council in June and
subsequently will be brought back for a public hearing for formal adoption via resolution.
PUBLIC OUTREACH
Staff will release the draft user fee study report to the public, especially the developer
community, to solicit feedback.
11.4.c
Packet Pg. 289 Attachment: May 16th, 2022 Staff Report (3861 : User Fee Study Introduction)
City of Gilroy
STAFF REPORT
Agenda Item Title: 2022 Fireworks Public Safety Mitigation Fees
Meeting Date: June 20, 2022
From: Jimmy Forbis, City Administrator
Department: Fire Department
Submitted By: Jim Wyatt, Fire Chief
Prepared By: Jim Wyatt, Fire Chief
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 Resolution of the City Council of the City of Gilroy Setting the Annual Fireworks
Service Fee for Impacts on City Fire and Police Services Related to the Sale and Use of
Safe and Sane Fireworks Pursuant to Gilroy City Code Section 10A.
EXECUTIVE SUMMARY
Pursuant to Gilroy City Code Section 10A.8(b), the Fireworks Service Fee is to be
determined each year by the City's Fire and Police Chiefs and adopted by resolution.
The Fireworks Service Fee is intended to provide funding for the City to take actions to:
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1) Reduce the use of illegal and dangerous fireworks that occur in conjunction
with the legal use of Safe and Sane Fireworks during the 4th of July
celebration.
2) Augment daily staffing in preparation for an increase in pol ice, fire and EMS
activity resulting from firework usage.
The Fireworks Service Fee is separate and different from the booth permit and
application fee that the City charges for the operation of the Safe and Sane Fireworks
sales booths.
BACKGROUND
The City Code does not specify what the Fireworks Service Fee is intended to cover or
how the Mitigation Plan is to be structured. In the past, the Police and Fire Chiefs
determined the required staffing and deployment including:
1) staffing additional dispatchers for the July 4th weekend;
2) staffing additional patrol officers for the July 4th weekend;
3) staffing an additional Fire Engine for the July 4th weekend;
4) adding additional staffing to existing fire engines for the July 4th weekend;
and
5) the bulk mailing of an English/Spanish notification postcard to all Gilroy
mailing addresses and the coordination of any administrative citations issued
and the subsequent appeals hearings, if needed, performed by the Fire
Marshal’s office.
Gilroy City Code Section 10A.8 requires that a Fireworks Service Fee be paid by the
Safe and Sane Fireworks vendors to fund additional staff resources to counter the use
of illegal and dangerous fireworks during the July 4th celebrations. The Fireworks
Service Fee is to provide cost recovery for the Gilroy Fire and Police Departments'
Fireworks Mitigation Plan.
The City Code establishes a limit of booth permits and grandfathers the booth permit to
organizations that had a permit the prior year. Currently, one vendor provides the
fireworks for up to 15 non-profit organizations that have a booth permit. The vendor
monitors the existing organizations as well as manages any potential new applicants for
a booth permit that becomes available.
How, or if, the vendor then recoups the fee from the potential 15 non-profit
organizations is a contractual arrangement between the vendor and the non -profit booth
organizations, and is not dictated by the City Code. However, the vendor typically
assesses a portion of the estimated fee to each organization. This fee has ranged
between 6-8% of the organizations’ revenue, which is dependent on the fee and that
year’s revenues.
ANALYSIS
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The cost of the 2022 Fireworks Mitigation Plan is based on the attached spreadsheet
and totals $51,900.65. The Police Department, Fire Department, and Fire Marshal's
Office each provided the cost analysis for their portion of the plan using the Finance
Department’s calculated hourly rate by position. The attached Fee Calculation 202 2
form provides the cost breakdown. The attached Resolution is to adopt the Fireworks
Service Fee for implementing the 2022 Fireworks Mitigation Plan.
The wholesale vendor that supplies the State Certified Safe and Sane Fireworks to the
non-profit organizations pays the fireworks service fee. The fee is deposited into the
fireworks mitigation account and is then transferred to each department’s revenue
accounts. Since the fees are based on the costs provided by each department, there is
typically not a shortage or overage. However, if there is an excess of funds collected,
staff could apply the excess funds to the next year’s fireworks service fee. However, if
additional overtime is required to implement the mitigation plan, then the City could add
any unreimbursed overtime costs to the fee calculation for the following year’s program.
A surplus of $1,349.94 from the 2021 Mitigation Fee has been applied to offset this
year’s mitigation fees.
ALTERNATIVES
The City Council could decide to take no action. A Fireworks Service Fee would not be
established to provide funding to reduce the use of illegal and dangerous fireworks. The
additional enforcement would not occur, and funding would be provided through the
general fund, or a combination of reduced enforcement with taxpayer funding. Staff
does not recommend this action.
FISCAL IMPACT/FUNDING SOURCE
Staff does not expect any net costs to the City as the fee charged to the vendor is
based on the actual cost of carrying out the plan.
CONCLUSION
The fee will reimburse the City for the implementation of the Fireworks Mitigation Plan.
NEXT STEPS
If approved, staff would then implement this year’s Illegal and Dangerous Fireworks
Mitigation Program and apply the fee as authorized.
PUBLIC OUTREACH
The City Communications and Engagement Manager and the Fire Marshal’s office will
produce and send out post card mailers to all Gilroy addresses to inform the public
about illegal and dangerous fireworks. The Fire Marshal’s Office will also coordinate
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with the Community Engagement Office to release the same information on media
channels used previously for community engagement.
Attachments:
1. Spreadsheet of the 2022 Fireworks Mitigation Fee Calculation
2. Spreadsheet of the 2022 Fireworks Booth locations
3. Draft Resolution
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Fully
Burdened
Hourly Rate
OT
Hours
# of
Staff
# of
Hours Total
Police Department
Police Sergeant (OT)187.14 1.5 1 5.5 $1,543.91
Police Corporal (OT)167.89 1.5 1 5.5 $1,385.09
Patrol Officer (OT)153.53 1.5 12 5.5 $15,199.47
Public Safety Communicator (OT)110.44 1.5 2 5.5 $1,822.26
TOTAL POLICE $19,950.73
Fire Department
Firefighter I/II (OT)151.92 1.5 4 10 $9,115.20
Fire Engineer (OT)159.49 1.5 4 10 $9,569.40
Fire Captain (OT)177.39 1.5 4 10 $10,643.40
TOTAL FIRE $29,328.00
Fire Prevention
Fireworks Administrative Citation Booklets $0.00
All Fireworks Prohibited Posters & Duct Tape $411.01
Fireworks Facebook Boosts $200.00
Utility Bill Insert (electronic and mailed)$1,120.00
Deputy Fire Marshal (OT)149.39 1.5 1 10 $2,240.85
TOTAL Fire Prevention $3,971.86
TOTAL PROGRAM $53,250.59
LESS ACT. BALANCE ($1,349.94)
TOTAL FEE $51,900.65
12.1.a
Packet Pg. 294 Attachment: Spreadsheet of the 2022 Fireworks Mitigation Fee Calculation (3859 : 2022 Fireworks Public
Organization:Permit#
1 Apostolic Assembly Church
2 Christian School Parents Club
3 El Camino Club (CHP)
4 Gavilan College
5 Gilroy Elks Lodge
6 Gilroy High School Cheerleader Boosters
7 Gilroy High School Quarterback Club
8 Gilroy High School Wrestling
9 Gilroy Police Officers Association
10 Gilroy Little League BallPark Fund
11 Gilroy Pop Warner Football
12 Gilroy Youth Football & Cheer
13 South County Baseball Boosters
14 Victory Outreach Gilroy
15 Stick and Move Amateur Boxing
Green highlight means new location
Yellow highlight means potential issue
691 First Street
2022 Firework Booth Permits
Proposed Sales Site:
7150 Camino Arroyo
303 East Tenth Street
971 First Street
1203- 1260 First Street
825 First Street
7940 Monterey Rd.
6900 Automall Parkway
8850 San Ysidro Ave
8400 Church Street
8401 Church Street
80 W. Tenth Street
727 First Street
777 First Street
8000 Santa Teresa Blvd.
12.1.b
Packet Pg. 295 Attachment: Spreadsheet of the 2022 Fireworks Booth locations (3859 : 2022 Fireworks Public Safety
RESOLUTION NO. 2022-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GILROY SETTING THE ANNUAL FIREWORKS SERVICE
FEE FOR IMPACTS ON CITY FIRE AND POLICE SERVICES
RELATED TO THE SALE AND USE OF SAFE AND SANE
FIREWORKS PURSUANT TO GILROY CITY CODE
CHAPTER 10A
WHEREAS, Chapter 10A of the City of Gilroy (“City”) City Code regulates the local
retail sale, use and storage of “safe and sane fireworks” as defined in 12529 of the Health and
Safety Code of the State of California; and
WHEREAS, the City Fire and Police Departments each year experience a significant
number of non-routine Fire and Police requests for services, emergency calls and citizen
complaints, all of which are directly related to the use of illegal and legal fireworks during 4 th of
July celebrations; and
WHEREAS, the City Council on April 5, 2004, adopted Ordinance No. 2004-03 adding
section 10A.8(b) to Chapter 10A of the City Code to establish a permit fee for fireworks sales, and
a fireworks service fee to alleviate the financial impacts of providing public safety services directly
related to the 4th of July celebrations; and
WHEREAS, Ordinance No. 2004-03 requires that the fireworks service fee be determined
by the City’s Fire and Police Chiefs and adopted annually by City Council resolution; and
WHEREAS, the City Council also on April 5, 2004, adopted Resolution No. 2004-24,
directing the City’s Fire and Police Chiefs to develop a Fireworks Mitigation Strategy for the
upcoming 4th of July celebrations each year, setting forth the amount of the fireworks service fee
to recover the anticipated costs.
WHEREAS, the City Fire and Police Chiefs have developed a Fireworks Mitigation
Strategy for the 4th of July, 2022, celebrations that includes both public information and additional
public safety staff hours at an anticipated cost to the City of $51,900.65, and
WHEREAS, the City Council on June 20, 2022 reviewed the Fireworks Mitigation
Strategy Fee for 4th of July, 2022, attached hereunto as Exhibit A.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF GILROY, AS FOLLOWS:
1. Based on the 4th of July, 2022 Fireworks Mitigation Strategy with supporting
documents (e.g. Staff Report, Mitigation Fee Calculation, Permit list), the fireworks
service fee for 2022 has been determined to be $51,900.65.
12.1.c
Packet Pg. 296 Attachment: Draft Resolution (3859 : 2022 Fireworks Public Safety Mitigation Fees)
Resolution No. 2022-XX
Annual Fireworks Service Fee
City Council Regular Meeting | June 20, 2022
Page 2 of 2
2. On June 20, 2022, the City Council reviewed the fireworks service fee for the 4th
of July, 2022, and finds that the fee is a reasonable regulatory cost designed to
mitigate the adverse health, safety, environmental, and/or other societal effects
from the local retail sale, use, and storage of “safe and sane fireworks” as regulated
by Gilroy City Code Chapter 10A and is no more than necessary to cover the costs
of the City’s police and fire department July 4th fireworks mitigation strategy
activities.
PASSED AND ADOPTED this 20th day of June, 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
12.1.c
Packet Pg. 297 Attachment: Draft Resolution (3859 : 2022 Fireworks Public Safety Mitigation Fees)
City of Gilroy
STAFF REPORT
Agenda Item Title: Approval of the Third Operating Memorandum to the Glen
Loma Ranch Development Agreement
Meeting Date: June 20, 2022
From: Jimmy Forbis, City Administrator
Department: Community Development Department
Submitted By: Jon Biggs, Interim Community Development Director
Prepared By: Melissa Durkin, Planner II
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 Third Operating Memorandum to the Glen Loma Ranch Development
Agreement.
EXECUTIVE SUMMARY
Staff recommends entering into a Third Operating Memorandum to the Glen Loma
Ranch Development Agreement to memorialize the City Council’s direction to redirect
funding from Glen Loma Ranch McCutchin Creek Park to the Glen Loma Ranch fire
station. Redirecting these funds will reduce the gap in fire station funding. The
Operating Memorandum would also obligate the City to accept the offer of dedication for
the McCutchin Creek Park parcel (assuming no extraordinary conditions would prevent
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the acceptance of the offer of dedication ) and to construct McCutchin Creek Park at an
unspecified date.
BACKGROUND
The City of Gilroy and Glen Loma Corporation entered into a Development Agreement
(Glen Loma Ranch DA) dated November 21, 2005 for the development of the Glen
Loma Ranch project. The Glen Loma Ranch DA obligated the Glen Loma Corporation
to construct several public improvements including a fire station and two parks. One
park (Cydney Casper Park) has been constructed. The second park (McCutchin Creek
Park) and the fire station have not been constructed.
Glen Loma Ranch DA section 4.4.1.3 provides for caps on the funds Glen Loma is
required to pay the City for construction of Glen Loma Ranch public improvements. The
cost caps are in 2005 dollars and are subject to upward adjustment. The construction
cost caps, in 2005 dollars, for McCutchin Creek Park is $1,608,194 and for the fire
station is $3,853,993.
At the Council’s December 2, 2019 meeting, the Council voted unanimously to direct
staff to redirect funding from McCutchin Creek Park to the fire station to reduce the gap
in fire station funding.
In authorizing the use of McCutchin Park funds for the fire station, t he City Council
recognized that the funds obligated for construction of the fire station were inadequate
to construct a modern station.
ANALYSIS
Glen Loma Ranch DA section 3.13 anticipates refinements and clarifications to the Glen
Loma Ranch DA. This section of the Glen Loma Ranch DA allows the City and Glen
Loma to enter into operating memoranda to make such refinements and clarifications.
After execution, the operating memoranda becomes a part of the Glen Loma Ranch DA.
The City and Glen Loma Corporation have entered into two operating memoranda so
far.
This proposed third operating memorandum would obligate Glen Loma Corporation to
pay the City the funds required for construction of McCutchin Creek Park. The
proposed payment amount, $2,336,791, is equivalent to the $1,608,194 referenced in
the Glen Loma Ranch DA adjusted upward in accordance with DA secti on 4.4.1.3. This
payment would be concurrent with recordation of the Palomino/McCutchin Creek final
map. The Operating Memorandum would obligate the City to accept dedication of the
McCutchin Creek Park parcel if it meets City standards for parkland use; if the City does
not accept the offer within two years of final recordation of the Palomino/McCutchin
Park Parcel Final Map, then both parties would be required to meet and confer to
identify a reasonable future use of the parcel. After receipt of the fun ds from the Glen
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Loma Corporation, the City would be responsible for construction of the McCutchin
Creek Park.
The proposed Operating Memorandum would eliminate Glen Loma Corporation’s
obligation to construct McCutchin Creek Park. Further, the Operatin g Memorandum
would redirect the park funding to the City, allowing the City to use the funding for the
Glen Loma Ranch fire station.
ALTERNATIVES
Denial of the approval of the Operating Memorandum would result in no changes to the
Glen Loma Ranch Development Agreement as it currently stands. This alternative is not
recommended, as the City is utilizing these park fund to assist in funding the costs
construct the new fire station.
FISCAL IMPACT/FUNDING SOURCE
Approval of this Operating Memorandum would assist in funding for the new fire station
in the Glen Loma Ranch area. The City will receive the $2.3 million from Glen Loma and
deposit it into the Capital Projects Fund to offset the cost of constructing the Fire station
in the future. Furthermore, the City will need to identify funding in the future to develop
the McCutchin Creek Park.
CONCLUSION
Staff finds that the proposed Operating Memorandum is consistent with the Glen Loma
Ranch Specific Plan, does not increase the density or intensity of use of the property,
and does not increase the anticipated disturbed areas within the Specific Plan.
Furthermore, the proposed Operating Memorandum is consistent with City Council
direction to redirect McCutchin Creek Park construction funds toward construction of the
Glen Loma Ranch fire station.
Attachments:
1. Glen Loma - Third Operating Memorandum to Development Agreement
2. Exhibit A - MC Park Parcel - OM
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Page 1 4888-9483-6507v9 ALF\04706099
THIRD OPERATING MEMORANDUM TO
DEVELOPMENT AGREEMENT – GLEN LOMA RANCH
WHEREAS, City of Gilroy (“City”), Glen Loma Corporation (“Developer”), and
the owners of Glen Loma Ranch (“Owners”) entered into a Development Agreement dated
November 21, 2005 (the “Development Agreement”) for the development of the Glen
Loma Ranch Project, an area composed of approximately 359 acres of land (of which
approximately 192 acres will be developed) northeast of Santa Teresa Boulevard and
southwest of Uvas Creek, including, among other things, open space, a trail system, parks, a
fire station, residential neighborhoods, senior housing, and commercial uses (the
“Approved Project”);
WHEREAS, the Approved Project is described in detail in the Glen Loma Ranch
Specific Plan (“Specific Plan”), as revised on May 19, 2014 by Ordinance No. 2014-07;
WHEREAS, on February 6, 2017 the City approved tentative map TM 16-01 for the
neighborhoods within the Specific Plan commonly known as Palomino and McCutchin
Creek (“Palomino/McCutchin Tentative Map”);
WHEREAS, Developer/Owners are processing a final map which is consistent with
the Palomino/McCutchin Tentative Map (“Palomino/McCutchin Final Map”) and the
recordation of which will create the separate parcel for the future McCutchin Creek Park
identified as Parcel ___ on the attached Exhibit A (“Park Parcel”), and which shall be
offered for dedication to the City on the Palomino/McCutchin Final Map;
WHEREAS, Section 3.13 of the Development Agreement anticipates that clarifications
or minor revisions with respect to the details of performance of City or Developer/Owners may
be effectuated through operating memoranda approved by City and Developer/Owners, which,
after execution, become a part of the Development Agreement;
WHEREAS, City and Developer/Owners entered into the Operating Memorandum to the
Development Agreement dated June 21, 2017, which among other things modified Section
4.4.1.1 of the Development Agreement to document the relocation of the previously proposed
Montonico Park to the McCutchin Creek Park site and to require park construction by
Developer/Owners to occur concurrent with development of the adjacent McCutchin Creek
Neighborhood; and
WHEREAS, the City and Developer/Owners now desire to document further
clarifications and minor revisions to the Development Agreement through this Third Operating
Memorandum as permitted by Section 3.13 of the Development Agreement, and the City
Attorney has determined that the use of an Operating Memorandum is appropriate.
NOW, THEREFORE, City and Developer/Owners agree as follows:
12.2.a
Packet Pg. 301 Attachment: Glen Loma - Third Operating Memorandum to Development Agreement (3769 : Glen Loma Ranch Development Agreement
Page 2 4888-9483-6507v9 ALF\04706099
1) In lieu of the requirement contained in Section 4.4.1.1 of the Development
Agreement for Developer/Owners to construct the McCutchin Creek Park, the City and
Developer/Owners shall proceed as follows:
a. Prior to the recordation of the Palomino/McCutchin Final Map
Developer/Owners shall cause the amount of $2,336,791.00 (“Funding
Obligation”) to be paid to the City. Upon payment of the Funding Obligation,
Developer/Owners shall be automatically relieved of the obligation to construct
McCutchin Creek Park.
b. Following recordation of the Palomino/McCutchin Final Map the
City shall consider the offer of dedication of the Park Parcel and shall accept such
offer provided the Park Parcel complies with City standards for assuming
ownership of parkland sites. In the event that the City has not accepted the Park
Parcel within two years following the recordation of the Palomino/McCutchin
Final Map, the offer of dedication shall be automatically rescinded, and the parties
shall meet and confer to identify a reasonable future use for the Park Parcel.
c. After receipt of the Funding Obligation and acceptance of the offer
of dedication of the Park Parcel, the City shall be responsible for construction of
the McCutchin Creek Park.
2) After review of these clarifications and minor revisions, the City Council
finds that these clarifications and minor revisions are consistent with the Glen Loma
Ranch Specific Plan, do not increase the density or intensity of use of the Property, do not
increase the anticipated disturbed areas within the Specific Plan, and therefore that the
use of an Operating Memorandum is appropriate.
The parties execute this Third Operating Memorandum as of June ___, 2022.
CITY:
City of Gilroy,
a California municipal corporation Approved as to form
By: __________________________ By: __________________________
Jimmy Forbis Andrew L. Faber
City Administrator City Attorney
DEVELOPER:
Glen Loma Corporation,
a California corporation
By: __________________________
John M. Filice, Jr.
President
12.2.a
Packet Pg. 302 Attachment: Glen Loma - Third Operating Memorandum to Development Agreement (3769 : Glen Loma Ranch Development Agreement
Page 3 4888-9483-6507v9 ALF\04706099
OWNERS:
Filice Family Estate,
a California limited partnership
by its General Partner, Cugini Calabria LLC,
a California limited liability company
By: ___________________________
John M. Filice, Jr.
Manager
Donald C. Christopher a/k/a Donald Christopher
By: ____________________________
Donald C. Christopher
Christopher Ranch LLC,
a California limited liability company
By: ____________________________
Bill Christopher
Manager
The Christopher Family Partnership,
a California limited partnership
By: ____________________________
Frank Artie Christopher, Jr.
General Partner
By:_____________________________
Anna Noreen Christopher
General Partner
12.2.a
Packet Pg. 303 Attachment: Glen Loma - Third Operating Memorandum to Development Agreement (3769 : Glen Loma Ranch Development Agreement
Page 4 4888-9483-6507v9 ALF\04706099
D Christopher & Sons LLC,
a California limited liability company
By: ____________________________
William A. Christopher
Manager
12.2.a
Packet Pg. 304 Attachment: Glen Loma - Third Operating Memorandum to Development Agreement (3769 : Glen Loma Ranch Development Agreement
12.2.b
Packet Pg. 305 Attachment: Exhibit A - MC Park Parcel - OM (3769 : Glen Loma Ranch Development Agreement Operating Memorandum)