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06/20/2022 City Council Regular Agenda Packet AMENDED June 17, 2022 12:00 PM City Council Regular Meeting Agenda *AMENDED* Page1 MAYOR Marie Blankley COUNCIL MEMBERS Rebeca Armendariz Dion Bracco Zach Hilton Peter Leroe-Muñoz Carol Marques Fred Tovar CITY COUNCIL *AMENDED* 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 and available for public inspection with the agenda packet located in the lobby of Administration at City Hall, 7351 Rosanna Street prior to the meeting. Any correspondence received will be incorporated into the meeting record. Items received after the 1 p.m. deadline will be provided to the City Council as soon as practicable. Written comments are also available on the City’s Public Records Portal at https://bit.ly/3G1vihU. In compliance with the Americans with Disabilities Act, and Assembly Bill 361, the City will make reasonable arrangements to ensure accessibility to this meeting. If you need special assistance to participate in this meeting, please contact the City Clerk a minimum of 72 hours prior to the meeting at (408) 846-0204. If you challenge any planning or land use decision made at this meeting in court, you may be limited to raising only those issues you or someone else raised at the public hearing h eld at this meeting, or in written correspondence 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 *AMENDED* 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 City website at www.cityofgilroy.org subject to Staff’s ability to post the documents before the meeting. KNOW YOUR RIGHTS UNDER THE GILROY OPEN GOVERNMENT ORDINANCE Government's duty is to serve the public, reaching its decisions in full view of the public. Commissions, task forces, councils and other agencies of the City exist to conduct the people's business. This ordinance assures that deliberations are conducted before the people and that City operations are open to the people's review. FOR MORE INFORMATION ON YOUR RIGHTS UNDER THE OPEN GOVERNMENT ORDINANCE, TO RECEIVE A FREE COPY OF THE ORDINANCE OR TO REPORT A VIOLATION OF THE ORDINANCE, CONTACT THE OPEN GOVERNMENT COMMISSION STAFF AT (408) 846-0204 The agenda for this regular meeting is as follows: 1. OPENING 1.1. Call to Order 1. Pledge of Allegiance 2. Invocation 3. City Clerk's Report on Posting the Agenda 4. Roll Call 1.2. Orders of the Day 1.3. Employee Introductions 2. CEREMONIAL ITEMS 2.1. Proclamations, Awards, and Presentations 2.1.1. Proclamation - 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 *AMENDED* 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 matt er on a future agenda. Written comments to address the Council on matters not on this agenda may be e - mailed to the City Clerk’s Office at cityclerk@cityofgilroy.org or mailed to the Gilroy City Clerk’s Office at City Hall, 7351 Rosanna Street, Gilroy, CA 95020. Comments received by the City Clerk’s Office by 1:00pm on the day of a Council meeting will be distributed to the City Council prior to or at the meeting and available for public inspection with the agenda packet located in the lobby of Administration at City Hall, 7351 Rosanna Street, prior to the meeting. Any correspondence received will be incorporated into the 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 *AMENDED* 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, Historic Heritage Committee (Alternate), Santa Clara Valley Habitat Agency Governing Board, Santa Clara Valley Habitat Agency Implementation Board, South County Regional Wastewater Authority (Alternate) Council Member Hilton – Gilroy Economic Development Partnership, Silicon Valley Clean Energy Authority JPA Board, South County United for Health, Visit Gilroy California Welcome Center Board Council Member Tovar – Economic Development Corporation Board, Gourmet Alley Ad Hoc Committee, Recycling and Waste Reduction Commission, Santa Clara Co. Expressway Plan 2040 Policy Advisory Board, SCVWD Water Commission (alternate), South County Joint Recycled Water Advisory Committee, South County Regional Wastewater Authority Board, Street Naming Committee, South County Youth Task Force Policy Team (alternate), VTA Committee for Transit Accessibility Council Member Leroe-Muñoz – ABAG, CalTrain Policy Group (alternate), Cities Association of Santa Clara County Board of Directors, Economic Development Corporation Board, Gilroy Youth Task Force, SCVWD Water Commission, Silicon Valley Regional Interoperability Authority Board, South County Youth Task Force Policy Team, VTA Mobility Partnership, VTA South County City Group (alternate), VTA Policy Advisory Committee (alternate) Mayor Blankley – Cities Association of Santa Clara Co. Board of Directors (alternate), Gilroy Economic Development Partnership, Gilroy Sister Cities Association, Gilroy Youth Task Force (alternate), Santa Clara Valley Habitat Agency Governing Board, SCVWD Joint Council-SCRWA-Board Water Resources Committee, South County Joint Recycled Water Advisory Committee, South County Regional Wastewater Authority Board, VTA Board of Directors Alternate, VTA Mobility Partnership, VTA Policy Advisory Committee, VTA South County City Group 7. FUTURE COUNCIL INITIATED AGENDA ITEMS City Council Regular Meeting Agenda *AMENDED* 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 (forme rly known as the National Joint Powers Alliance). City Council Regular Meeting Agenda *AMENDED* 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. City Council Regular Meeting Agenda *AMENDED* 06/20/2022 Page7 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, 1111, and 1503 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 , 1111, and 1503 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 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. City Council Regular Meeting Agenda *AMENDED* 06/20/2022 Page8 11.2. Approval of Third Amendment 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". 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. City Council Regular Meeting Agenda *AMENDED* 06/20/2022 Page9 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 (Riif/ fl~' (Ra4/0UUU/ ·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. 10 Communication: Proclamation - Parks Make Life Better! Month (Proclamations, Awards, and Presentations) 2.1.2 Packet Pg. 11 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. 12 • 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. 13 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. 14 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. 15 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. 16 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. 17 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. 18 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. 19 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. 20Communication: 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. 21Communication: 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. 22Communication: City Council Member Meeting Attendance (COUNCIL CORRESPONDENCE) 5.2 Packet Pg. 23 Communication: Correspondence from Santa Clara Valley Transportation Authority (COUNCIL CORRESPONDENCE) 5.2 Packet Pg. 24 Communication: Correspondence from Santa Clara Valley Transportation Authority (COUNCIL CORRESPONDENCE) 5.2 Packet Pg. 25 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 5.3 Packet Pg. 26 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 5.3 Packet Pg. 27 Communication: LAFCO Budget for FY 2022-2023 (COUNCIL CORRESPONDENCE) PAGE 1 OF 2 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 5.3 Packet Pg. 28 Communication: LAFCO Budget for FY 2022-2023 (COUNCIL CORRESPONDENCE) PAGE 2 OF 2 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 5.3 Packet Pg. 29 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 5.3 Packet Pg. 30 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 5.3 Packet Pg. 31 Communication: LAFCO Budget for FY 2022-2023 (COUNCIL CORRESPONDENCE) PAGE 1 OF 13 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. 5.3 Packet Pg. 32 Communication: LAFCO Budget for FY 2022-2023 (COUNCIL CORRESPONDENCE) PAGE 2 OF 13 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. 5.3 Packet Pg. 33 Communication: LAFCO Budget for FY 2022-2023 (COUNCIL CORRESPONDENCE) PAGE 3 OF 13 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 5.3 Packet Pg. 34 Communication: LAFCO Budget for FY 2022-2023 (COUNCIL CORRESPONDENCE) PAGE 4 OF 13 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. 5.3 Packet Pg. 35 Communication: LAFCO Budget for FY 2022-2023 (COUNCIL CORRESPONDENCE) PAGE 5 OF 13 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. 5.3 Packet Pg. 36 Communication: LAFCO Budget for FY 2022-2023 (COUNCIL CORRESPONDENCE) PAGE 6 OF 13 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 5.3 Packet Pg. 37 Communication: LAFCO Budget for FY 2022-2023 (COUNCIL CORRESPONDENCE) PAGE 7 OF 13 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’ 5.3 Packet Pg. 38 Communication: LAFCO Budget for FY 2022-2023 (COUNCIL CORRESPONDENCE) PAGE 8 OF 13 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. 5.3 Packet Pg. 39 Communication: LAFCO Budget for FY 2022-2023 (COUNCIL CORRESPONDENCE) PAGE 9 OF 13 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. 5.3 Packet Pg. 40 Communication: LAFCO Budget for FY 2022-2023 (COUNCIL CORRESPONDENCE) PAGE 10 OF 13 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. 5.3 Packet Pg. 41 Communication: LAFCO Budget for FY 2022-2023 (COUNCIL CORRESPONDENCE) PAGE 11 OF 13 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. 5.3 Packet Pg. 42 Communication: LAFCO Budget for FY 2022-2023 (COUNCIL CORRESPONDENCE) PAGE 12 OF 13 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 5.3 Packet Pg. 43 Communication: LAFCO Budget for FY 2022-2023 (COUNCIL CORRESPONDENCE) PAGE 13 OF 13 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 5.3 Packet Pg. 44 Communication: LAFCO Budget for FY 2022-2023 (COUNCIL CORRESPONDENCE) 5.3 Packet Pg. 45 Communication: LAFCO Budget for FY 2022-2023 (COUNCIL CORRESPONDENCE) 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 5.3 Packet Pg. 46 Communication: LAFCO Budget for FY 2022-2023 (COUNCIL CORRESPONDENCE) STATUS OF CURRENT YEAR WORK PLAN (FISCAL YEAR 2022) PAGE 2 of 7 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. 5.3 Packet Pg. 47 Communication: LAFCO Budget for FY 2022-2023 (COUNCIL CORRESPONDENCE) STATUS OF CURRENT YEAR WORK PLAN (FISCAL YEAR 2022) PAGE 3 of 7 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. 5.3 Packet Pg. 48 Communication: LAFCO Budget for FY 2022-2023 (COUNCIL CORRESPONDENCE) STATUS OF CURRENT YEAR WORK PLAN (FISCAL YEAR 2022) PAGE 4 of 7 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 5.3 Packet Pg. 49 Communication: LAFCO Budget for FY 2022-2023 (COUNCIL CORRESPONDENCE) STATUS OF CURRENT YEAR WORK PLAN (FISCAL YEAR 2022) PAGE 5 of 7 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. 5.3 Packet Pg. 50 Communication: LAFCO Budget for FY 2022-2023 (COUNCIL CORRESPONDENCE) STATUS OF CURRENT YEAR WORK PLAN (FISCAL YEAR 2022) PAGE 6 of 7 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 5.3 Packet Pg. 51 Communication: LAFCO Budget for FY 2022-2023 (COUNCIL CORRESPONDENCE) STATUS OF CURRENT YEAR WORK PLAN (FISCAL YEAR 2022) PAGE 7 of 7 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 ADMINISTRATIVE PROJECTS 5.3 Packet Pg. 52 Communication: LAFCO Budget for FY 2022-2023 (COUNCIL CORRESPONDENCE) 5.3 Packet Pg. 53 Communication: LAFCO Budget for FY 2022-2023 (COUNCIL CORRESPONDENCE) 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 5.3 Packet Pg. 54 Communication: LAFCO Budget for FY 2022-2023 (COUNCIL CORRESPONDENCE) 5.3 Packet Pg. 55 Communication: LAFCO Budget for FY 2022-2023 (COUNCIL CORRESPONDENCE) 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 5.3 Packet Pg. 56 Communication: LAFCO Budget for FY 2022-2023 (COUNCIL CORRESPONDENCE) PROPOSED WORK PLAN FOR FISCAL YEAR 2023 PAGE 2 OF 6 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 5.3 Packet Pg. 57 Communication: LAFCO Budget for FY 2022-2023 (COUNCIL CORRESPONDENCE) PROPOSED WORK PLAN FOR FISCAL YEAR 2023 PAGE 3 OF 6 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 5.3 Packet Pg. 58 Communication: LAFCO Budget for FY 2022-2023 (COUNCIL CORRESPONDENCE) PROPOSED WORK PLAN FOR FISCAL YEAR 2023 PAGE 4 OF 6 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 5.3 Packet Pg. 59 Communication: LAFCO Budget for FY 2022-2023 (COUNCIL CORRESPONDENCE) PROPOSED WORK PLAN FOR FISCAL YEAR 2023 PAGE 5 OF 6 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 5.3 Packet Pg. 60 Communication: LAFCO Budget for FY 2022-2023 (COUNCIL CORRESPONDENCE) PROPOSED WORK PLAN FOR FISCAL YEAR 2023 PAGE 6 OF 6 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 ADMINISTRATIVE PROJECTS 5.3 Packet Pg. 61 Communication: LAFCO Budget for FY 2022-2023 (COUNCIL CORRESPONDENCE) 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 5.3 Packet Pg. 62 Communication: LAFCO Budget for FY 2022-2023 (COUNCIL CORRESPONDENCE) 5.3 Packet Pg. 63 Communication: LAFCO Budget for FY 2022-2023 (COUNCIL CORRESPONDENCE) $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 5.3 Packet Pg. 64 Communication: LAFCO Budget for FY 2022-2023 (COUNCIL CORRESPONDENCE) 5.3 Packet Pg. 65 Communication: LAFCO Budget for FY 2022-2023 (COUNCIL CORRESPONDENCE) 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. 8.1 Packet Pg. 66 Minutes Acceptance: Minutes of Jun 6, 2022 6:00 PM (CONSENT CALENDAR (ROLL CALL VOTE)) City Council Regular Meeting Minutes June 6, 2022 Page 2 of 9 City Council Regular Meeting Minutes 06/6/2022 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. 8.1 Packet Pg. 67 Minutes Acceptance: Minutes of Jun 6, 2022 6:00 PM (CONSENT CALENDAR (ROLL CALL VOTE)) City Council Regular Meeting Minutes June 6, 2022 Page 3 of 9 City Council Regular Meeting Minutes 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 8.1 Packet Pg. 68 Minutes Acceptance: Minutes of Jun 6, 2022 6:00 PM (CONSENT CALENDAR (ROLL CALL VOTE)) City Council Regular Meeting Minutes June 6, 2022 Page 4 of 9 City Council Regular Meeting Minutes 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. 8.1 Packet Pg. 69 Minutes Acceptance: Minutes of Jun 6, 2022 6:00 PM (CONSENT CALENDAR (ROLL CALL VOTE)) City Council Regular Meeting Minutes June 6, 2022 Page 5 of 9 City Council Regular Meeting Minutes 06/6/2022 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. 8.1 Packet Pg. 70 Minutes Acceptance: Minutes of Jun 6, 2022 6:00 PM (CONSENT CALENDAR (ROLL CALL VOTE)) City Council Regular Meeting Minutes June 6, 2022 Page 6 of 9 City Council Regular Meeting Minutes 06/6/2022 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. 8.1 Packet Pg. 71 Minutes Acceptance: Minutes of Jun 6, 2022 6:00 PM (CONSENT CALENDAR (ROLL CALL VOTE)) City Council Regular Meeting Minutes June 6, 2022 Page 7 of 9 City Council Regular Meeting Minutes 06/6/2022 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. 8.1 Packet Pg. 72 Minutes Acceptance: Minutes of Jun 6, 2022 6:00 PM (CONSENT CALENDAR (ROLL CALL VOTE)) City Council Regular Meeting Minutes June 6, 2022 Page 8 of 9 City Council Regular Meeting Minutes 06/6/2022 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. 8.1 Packet Pg. 73 Minutes Acceptance: Minutes of Jun 6, 2022 6:00 PM (CONSENT CALENDAR (ROLL CALL VOTE)) City Council Regular Meeting Minutes June 6, 2022 Page 9 of 9 City Council Regular Meeting Minutes 06/6/2022 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 8.1 Packet Pg. 74 Minutes Acceptance: Minutes of Jun 6, 2022 6:00 PM (CONSENT CALENDAR (ROLL CALL VOTE)) 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 8.2 Packet Pg. 75 Minutes Acceptance: Minutes of Jan 11, 2021 6:00 PM (CONSENT CALENDAR (ROLL CALL VOTE)) Page 1 of 2 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. 8.3 Packet Pg. 76 Minutes Acceptance: Minutes of Feb 20, 2021 8:00 AM (CONSENT CALENDAR (ROLL CALL VOTE)) Page 2 of 2 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 8.3 Packet Pg. 77 Minutes Acceptance: Minutes of Feb 20, 2021 8:00 AM (CONSENT CALENDAR (ROLL CALL VOTE)) Page 1 of 1 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 8.4 Packet Pg. 78 Minutes Acceptance: Minutes of Mar 8, 2021 6:00 PM (CONSENT CALENDAR (ROLL CALL VOTE)) Page 1 of 1 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 8.5 Packet Pg. 79 Minutes Acceptance: Minutes of Sep 14, 2021 6:00 PM (CONSENT CALENDAR (ROLL CALL VOTE)) 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. 8.6 Packet Pg. 80 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 8.6 Packet Pg. 81 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. 82 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. 83 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 8.7 Packet Pg. 84 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 8.7 Packet Pg. 85 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 8.7 Packet Pg. 86 -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. 87 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. 88 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. d6 W711261v1 -1- rAe'A1706083 8.7.b Packet Pg. 89 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 8.7.b Packet Pg. 90 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. 46S 4161,1 .j_ 1ACIa410601B 8.7.b Packet Pg. 91 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. iA95226rdirlN , uomrosms 8.7.b Packet Pg. 92 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. 93 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. aosasrmst.t - 6- rAcnarassas 8.7.b Packet Pg. 94 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. 83S M406M 8.7.b Packet Pg. 95 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. 96 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. 4a1 W_Cn6io LAM7 aces -I- 8.7.b Packet Pg. 97 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. 4B7a4287"M UL1a_Z_ 70M 8.7.b Packet Pg. 98 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. rise 4Kss10 . 3_ LAcmerosoas 8.7.b Packet Pg. 99 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. 1a9&nlr lv1 -¢ ucotme m 8.7.b Packet Pg. 100 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. anszmrau" ucnarosres _5_ 8.7.b Packet Pg. 101 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. 102 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. 103 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. 104 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. 105 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. 106 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. 107 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. 108 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. 109 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. 110 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. 111 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. 112 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. 113 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. 114 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 uCV7 K 8.7.b Packet Pg. 115 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. 116 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. 117 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. 118 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. 119 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. 120 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. 121 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. 122 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. 123 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. 124 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. 125 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. 126 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. 127 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. 128 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. 129 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. 130 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. 131 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. 132 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. 133 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 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 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. 135 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. 136 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 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 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. 138 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. 139 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). 10.1 Packet Pg. 140 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 Packet Pg. 141 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 Packet Pg. 142 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 Packet Pg. 143 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. 144 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. 145 Attachment: 2021 Consumer Confidence Report Brochure (3857 : Acceptance of the Public Health Goal Report 10.1.b Packet Pg. 146 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, 1111, and 1503 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 11.1 Packet Pg. 147 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, 1111, and 1503 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 Counc il 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 placed 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? 11.1 Packet Pg. 148 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. Additionally, Section 1503(h) in Article 15 entitled “General Provisions” defines for the purposes of the Charter what a newspaper of general circulation is. This section is interlinked with Section 1111 by defining a term used in Section 1111. The Charter was adopted in 1960. Section 1109 had a n amendment adopted on November 4, 1997. However, Sections 1111 and 1503 have 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 cost s 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 buildin gs, 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 11.1 Packet Pg. 149 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. 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 11.1 Packet Pg. 150 The current formal bidding process involves selec ting 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 procuremen t option for major public works contracts on complicated projects would provide staff with a valuable "tool in the toolbox." 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 se lect the contractor 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 elem ents 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 condu ct 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. 11.1 Packet Pg. 151 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 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 pr ocesses 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 circul ation 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, a s well as saving 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 newspaper 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 within 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 11.1 Packet Pg. 152 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 purposes of preparing an impartial analysis. If directed, this impartial 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. 11.1 Packet Pg. 153 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 timely, 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. 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 11.1 Packet Pg. 154 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, 1111 AND 1503 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, and Section 1503 of Article XV 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. 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 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. 156 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 aut hor 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. 157 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. 158 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. 159 Attachment: DRAFT Resolution - Charter Amendment (2022) - Exhibit A (3821 : Charter Amendment 2022) City of Gilroy STAFF REPORT Agenda Item Title: Approval of Third Amendment 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. 11.2 Packet Pg. 160 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 11.2 Packet Pg. 161 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 11.2 Packet Pg. 162 11.2.a Packet Pg. 163 Attachment: Third Amendment to ENA Between Gilroy and SSE (3842 : Sharks Exclusivity Agreement) 11.2.a Packet Pg. 164 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. 165 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. 166 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 11.3 Packet Pg. 167 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 Packet Pg. 168 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). 11.3 Packet Pg. 169 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. 11.3 Packet Pg. 170 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 11.3 Packet Pg. 171 • 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 11.3 Packet Pg. 172 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 11.3 Packet Pg. 173 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. 11.3 Packet Pg. 174 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 11.3 Packet Pg. 175 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 11.3.a Packet Pg. 176 Attachment: Non Binding Term Sheet (3852 : Sharks Ice Non-Binding Term Sheet Approval) Page 2 4868-9573-2769v5 ALF\04706215 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; 11.3.a Packet Pg. 177 Attachment: Non Binding Term Sheet (3852 : Sharks Ice Non-Binding Term Sheet Approval) Page 3 4868-9573-2769v5 ALF\04706215 (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. 11.3.a Packet Pg. 178 Attachment: Non Binding Term Sheet (3852 : Sharks Ice Non-Binding Term Sheet Approval) Page 4 4868-9573-2769v5 ALF\04706215 (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 11.3.a Packet Pg. 179 Attachment: Non Binding Term Sheet (3852 : Sharks Ice Non-Binding Term Sheet Approval) Page 5 4868-9573-2769v5 ALF\04706215 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 11.3.a Packet Pg. 180 Attachment: Non Binding Term Sheet (3852 : Sharks Ice Non-Binding Term Sheet Approval) Page 6 4868-9573-2769v5 ALF\04706215 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 11.3.a Packet Pg. 181 Attachment: Non Binding Term Sheet (3852 : Sharks Ice Non-Binding Term Sheet Approval) Page 7 4868-9573-2769v5 ALF\04706215 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. 11.3.a Packet Pg. 182 Attachment: Non Binding Term Sheet (3852 : Sharks Ice Non-Binding Term Sheet Approval) Page 8 4868-9573-2769v5 ALF\04706215 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. 11.3.a Packet Pg. 183 Attachment: Non Binding Term Sheet (3852 : Sharks Ice Non-Binding Term Sheet Approval) Page 9 4868-9573-2769v5 ALF\04706215 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 11.3.a Packet Pg. 184 Attachment: Non Binding Term Sheet (3852 : Sharks Ice Non-Binding Term Sheet Approval) Page 10 4868-9573-2769v5 ALF\04706215 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 11.3.a Packet Pg. 185 Attachment: Non Binding Term Sheet (3852 : Sharks Ice Non-Binding Term Sheet Approval) Page 11 4868-9573-2769v5 ALF\04706215 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. 186 Attachment: Non Binding Term Sheet (3852 : Sharks Ice Non-Binding Term Sheet Approval) 11.3.b Packet Pg. 187 Attachment: Exhibit A to Term Sheet (3852 : Sharks Ice Non-Binding Term Sheet Approval) 11.3.bPacket Pg. 188Attachment: Exhibit A to Term Sheet (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.cPacket Pg. 190Attachment: 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.c Packet Pg. 192 Attachment: Ice Center Project Description (3852 : Sharks Ice Non-Binding Term Sheet Approval) 11.3.cPacket Pg. 193Attachment: 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. 194 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. 195 Attachment: Public Comment - Squatritto, Lorrin (3852 : Sharks Ice Non-Binding Term Sheet Approval) 11.3.f Packet Pg. 196 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 11.4 Packet Pg. 197 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. 11.4 Packet Pg. 198 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 11.4 Packet Pg. 199 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 Packet Pg. 200 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 11.4 Packet Pg. 201 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 Packet Pg. 202 “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. 11.4 Packet Pg. 203 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. 11.4 Packet Pg. 204 Attachments: 1. 2022 Comprehensive User Fee Study 2. Draft Ordinance 3. May 16th, 2022 Staff Report 11.4 Packet Pg. 205 City of Gilroy User Fee Study June 20, 2022 11.4.a Packet Pg. 206 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. 207 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 Packet Pg. 208 Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction) 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. 11.4.a Packet Pg. 209 Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction) 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 Packet Pg. 210 Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction) 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. 11.4.a Packet Pg. 211 Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction) 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 11.4.a Packet Pg. 212 Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction) 5 Comprehensive User Fee Study 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. 11.4.a Packet Pg. 213 Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction) 6 Comprehensive User Fee Study 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. 11.4.a Packet Pg. 214 Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction) 7 Comprehensive User Fee Study 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 11.4.a Packet Pg. 215 Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction) 8 Comprehensive User Fee Study 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 11.4.a Packet Pg. 216 Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction) 9 Comprehensive User Fee Study 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. 11.4.a Packet Pg. 217 Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction) 10 Comprehensive User Fee Study 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 11.4.a Packet Pg. 218 Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction) 11 Comprehensive User Fee Study 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. 11.4.a Packet Pg. 219 Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction) 12 Comprehensive User Fee Study 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. 11.4.a Packet Pg. 220 Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction) 13 Comprehensive User Fee Study 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. 11.4.a Packet Pg. 221 Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction) 14 Comprehensive User Fee Study 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. 11.4.a Packet Pg. 222 Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction) 15 Comprehensive User Fee Study 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. 11.4.a Packet Pg. 223 Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction) 16 Comprehensive User Fee Study 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. 11.4.a Packet Pg. 224 Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction) 17 Comprehensive User Fee Study 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. 11.4.a Packet Pg. 225 Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction) 18 Comprehensive User Fee Study 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. 11.4.a Packet Pg. 226 Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction) 19 Comprehensive User Fee Study 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 11.4.a Packet Pg. 227 Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction) 20 Comprehensive User Fee Study 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. 11.4.a Packet Pg. 228 Attachment: 2022 Comprehensive User Fee Study (3861 : User Fee Study Introduction) 21 Comprehensive User Fee Study 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. 229 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 11.4.a Packet Pg. 230 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 11.4.a Packet Pg. 231 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. 232 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. 233 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. 234 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. 235Attachment: 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. 236Attachment: 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. 237Attachment: 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. 238Attachment: 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. 239Attachment: 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. 240Attachment: 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. 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 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. 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 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. 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 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. 244Attachment: 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. 245Attachment: 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. 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 & 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. 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 & 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. 248Attachment: 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. 249Attachment: 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. 250Attachment: 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. 251Attachment: 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. 252Attachment: 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. 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 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. 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 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. 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 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. 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 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. 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 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. 258Attachment: 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. 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 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. 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 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. 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 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. 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 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. 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 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. 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 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. 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 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. 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 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. 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 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. 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 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. 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 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. 270Attachment: 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. 271Attachment: 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. 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 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. 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 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. 274Attachment: 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. 275Attachment: 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. 276 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. 277 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. 278 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. 279 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. 280 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. 281 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. 282 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. 283 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. 284 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. 285 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. 286 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. 287 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. 288 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. 289 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. 290 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: 12.1 Packet Pg. 291 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 12.1 Packet Pg. 292 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 12.1 Packet Pg. 293 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 12.1 Packet Pg. 294 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. 295 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. 296 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. 297 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. 298 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 12.2 Packet Pg. 299 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 12.2 Packet Pg. 300 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 12.2 Packet Pg. 301 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. 302 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. 303 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. 304 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. 305 Attachment: Glen Loma - Third Operating Memorandum to Development Agreement (3769 : Glen Loma Ranch Development Agreement 12.2.b Packet Pg. 306 Attachment: Exhibit A - MC Park Parcel - OM (3769 : Glen Loma Ranch Development Agreement Operating Memorandum)