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09/19/2022 City Council Regular Agenda Packet
September 16, 2022 12:15 PM City Council Regular Meeting Agenda Page1 MAYOR Marie Blankley COUNCIL MEMBERS Rebeca Armendariz Dion Bracco Zach Hilton Peter Leroe-Muñoz Carol Marques Fred Tovar CITY COUNCIL AGENDA CITY OF GILROY CITY COUNCIL CHAMBERS, CITY HALL 7351 ROSANNA STREET GILROY, CA 95020 REGULAR MEETING 6:00 P.M. MONDAY, SEPTEMBER 19, 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 meet ing 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, 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’s Office at least 72 hours prior to the meeting at (408) 846-0204 or cityclerk@cityofgilroy.org to help ensure that reasonable arrangements can be made. If you challenge any planning or land use decision made at this meeting in court, you may be limited to raising only those issues you or someone else raised at the public hearing held at this meeting, or in written correspondence delivered to the City Council at, or prior to, the public hearing. Please take notice that the time within which to seek judicial r eview of any final administrative determination reached at this meeting is governed by Section 1094.6 of the California Code of Civil Procedure. City Council Regular Meeting Agenda 09/19/2022 Page2 A Closed Session may be called during this meeting pursuant to Government Code Section 54956.9 (d)(2) if a point has been reached where, in the opinion of the legislative body of the City on the advice of its legal counsel, based on existing facts and circumstances, there is a significant exposure to litigation against the City. Materials related to an item on this agenda submitted to the City Council after distribution of the agenda packet are available with the agenda packet on the City website at www.cityofgilroy.org subject to Staff’s ability to post the documents before the meeting. KNOW YOUR RIGHTS UNDER THE GILROY OPEN GOVERNMENT ORDINANCE Government's duty is to serve the public, reaching its decisions in full view of the public. Commissions, task forces, councils and other agencies of the City exist to conduct the people's business. This ordinance assures that deliberations are conducted before the people and that City operations are open to the people's review. FOR MORE INFORMATION ON YOUR RIGHTS UNDER THE OPEN GOVERNMENT ORDINANCE, TO RECEIVE A FREE COPY OF THE ORDINANCE OR TO REPORT A VIOLATION OF THE ORDINANCE, CONTACT THE OPEN GOVERNMENT COMMISSION STAFF AT (408) 846-0204 If you need assistance with translation and would like to speak during public comment, please contact the City Clerk a minimum of 72 hours prior to the meeting at 408-846-0204 or e-mail the City Clerk’s Office at cityclerk@cityofgilroy.org. Si necesita un intérprete durante la junta y gustaría dar un comentario público, comuníquese con el Secretario de la Ciudad un mínimo de 72 horas antes de la junta al 408-846-0204 o envíe un correo electrónico a la Oficina del Secretario de la Ciudad a cityclerk@cityofgilroy.org. 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 3. BOARD AND COMMISSION INTERVIEWS 3.1. Interviews for Open Seats on Boards, Commissions and Committees with Terms Expired or Vacant as of September 12, 2022 for Future Appointment October 3, 2022 City Council Regular Meeting Agenda 09/19/2022 Page3 1. Staff Report: Thai Pham, City Clerk 2. Possible Action: Interview candidates for open seats on City Boards, Commissions, and Committees vacant as of September 12, 2022. 4. PRESENTATIONS TO THE COUNCIL 4.1. PUBLIC COMMENT BY MEMBERS OF THE PUBLIC ON ITEMS NOT ON THE AGENDA BUT WITHIN THE SUBJECT MATTER JURISDICTION OF THE CITY COUNCIL This portion of the meeting is reserved for persons desiring to address the Council on matters within the Gilroy City Council’s jurisdiction but not on the agenda. Persons wishing to address the Council are requested to complete a Speaker’s Card located at the entrances and handed to the City Clerk . Speakers are limited to 1 to 3 minutes each, varying at the Mayor’s discretion depending on the number of speakers and length of the agenda. The law does not permit Council action or extended discussion of any item not on the agenda except under special circumstances. If Council action is requested, the Council may place the matter on a future agenda. Written comments to address the Council on matters not on this agenda may be e - mailed to the City Clerk’s Office at cityclerk@cityofgilroy.org or mailed to the Gilroy City Clerk’s Office at City Hall, 7351 Rosanna Street, Gilroy, CA 95020. Comments received by the City Clerk’s Office by 1:00pm on the day of a Council meeting will be distributed to the City Council prior to or at the meeting and available for public inspection with the agenda packet located in the lobby of Administration at City Hall, 7351 Rosanna Street, prior to the meeting. Any correspondence received will be incorporated into the 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. 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 City Council Regular Meeting Agenda 09/19/2022 Page4 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 V alley Habitat Agency Governing Board, SCVWD Joint Council-SCRWA-Board Water Resources Committee, South County Joint Recycled Water Advisory Committee, South County Regional Wastewater Authority Board, VTA Board of Directors Alternate, VTA Mobility Partnership, VTA Policy Advisory Committee, VTA South County City Group 6. COUNCIL CORRESPONDENCE 7. FUTURE COUNCIL INITIATED AGENDA ITEMS 8. CONSENT CALENDAR (ROLL CALL VOTE) All matters listed under the Consent Calendar are considered by the City Council to be r outine 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. Action Minutes of the City Council - Regular Meeting - Sep 12, 2022 6:00 PM 8.2. A Resolution Proclaiming September 15 through October 15, 2022 as National Hispanic Heritage Month 8.3. Accept and File Quarterly Cash and Investment Report as of June 30, 2022 8.4. Approval of Public Art Sculpture Proposed for the Tenth and Chestnut Commercial Project 8.5. Second Amendment to Agreement for Services with Allied Universal for After-Hours Park Security Patrol Services To Increase Existing Agreement by $42,480. City Council Regular Meeting Agenda 09/19/2022 Page5 9. BIDS AND PROPOSALS 10. PUBLIC HEARINGS 11. UNFINISHED BUSINESS 12. INTRODUCTION OF NEW BUSINESS 12.1. Receive Preliminary FY22 Year-End Financial Report and Adopt Resolution Authorizing Mid-Cycle Budget Adjustments and Updating Position Control List 1. Staff Report: Harjot Sangha, Finance Director 2. Public Comment 3. Possible Action: 1. Receive preliminary Fiscal Year 2022 (FY22) year-end report. 2. Approve $250,000 to be transferred to the Section 115 Pension Trust, pursuant to the Pension Funding Policy. 3. Adopt a resolution approving the updated Position Control List. 4. Adopt a resolution authorizing recommended mid-cycle budget adjustments. 12.2. Consideration of Adding Cesar Chavez Day (March 31) as a City of Gilroy Observed Holiday 1. Staff Report: LeeAnn McPhillips, Administrative Services/HR Director/Risk Manager 2. Public Comment 3. Possible Action: Review information and options and provide staff direction. 13. CITY ADMINISTRATOR'S REPORTS 13.1. City Hall HVAC Replacement Update 13.2. Street Maintenance Project Update 13.3. 10th/Chestnut Project Update 13.4. Police Records Management System Implementation 13.5. City-wide Justice, Equity, Diversity, Inclusion Program Update 14. CITY ATTORNEY'S REPORTS 15. CLOSED SESSION 15.1. PUBLIC EMPLOYEE PERFORMANCE EVALUATION Pursuant to Government Code Section 54957 and Gilroy City Code Section 17A.11 (2); Employee Name/Title: Andy Faber, City Attorney 16. ADJOURN TO OPEN SESSION Report of any action taken in Closed Session and vote or abstention of each Councilmember if required by Government Code Section 54957.1 and GCC Section 17A.13 (a); Public Report of the vote to continue in closed session if required under GCC Section 17A.11 (e) City Council Regular Meeting Agenda 09/19/2022 Page6 17. ADJOURNMENT FUTURE MEETING DATES OCTOBER 2022 3* Regular Meeting - 6:00 p.m. 17* Regular Meeting - 6:00 p.m. 24* Special Study Session 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 City of Gilroy STAFF REPORT Agenda Item Title: Interviews for Open Seats on Boards, Commissions and Committees with Terms Expired or Vacant as of September 12, 2022 for Future Appointment October 3, 2022 Meeting Date: September 19, 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 September 12, 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. 7 • Arts and Culture Commission – Two (2) seats with terms expiring 12/31/2024 and one (1) seat with term expiring 12/31/2025 • Parks & Recreation Commission – One (1) seat with a term expiring 12/31/2022 • Physically Challenged Board of Appeals – Two (2) seats with terms expiring 12/31/2025 In addition, Youth Commission’s annual recruitment period has also begun with six (6) seats with terms expiring September 30, 2024. 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 September 9, 2022, at 5 p.m., staff received the following applicants: Parks and Recreation Commission One (1) seat with term expiring 12/31/2022 1. Ryan Littell 2. Terence Fugazzi 3. Luis Ramirez Youth Commission Six (6) seats with term expiring 09/30/2024 1. Emily Zheng 2. Sophie Gong 3. James Dinh 4. Destiny Saldate 5. Michael D’Angelo 6. Alfred James 7. Winston James (Incumbent) CONCLUSION For those seats without sufficient applications, recruitment remain s open. Interviews have been scheduled with the City Council at this evening’s me eting, and appointments are scheduled to take place at the October 3, 2022, Regular Meeting. Attachments: 1. Application - Parks and Recreation Commission - Received 2022-08-29 - Littell, Ryan 2. Application - Parks and Recreation Commission - Received 2022-09-02 - Fugazzi, Terence 3. Application - Parks and Recreation Commission - Received 2022-09-07 - Ramirez, Luis 4. Application - Youth Commission - Received 2022-06-29 - Zheng, Emily 5. Application - Youth Commission - Received 2022-08-15 - Gong, Sophie 6. Application - Youth Commission - Received 2022-08-16 - Dinh, James 3.1 Packet Pg. 8 7. Application - Youth Commission - Received 2022-09-09 - D'Angelo, Michael 8. Application - Youth Commission - Received 2022-09-09 - James, Alfred 9. Application - Youth Commission - Received 2022-09-09 - James, Winston 10. Application - Youth Commission - Received 2022-09-09 - Saldate, Destiny 3.1 Packet Pg. 9 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:Sunday, August 28, 2022 12:55:21 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 Ryan Last Name Littell Board/Commission/Committee of Interest Parks & Recreation Commission Are you a registered voter within the City limits? Yes Physical Address 1 City, State, Zip Gilroy Phone Number E-mail Address Alternate Phone Number Field not completed. List your qualifications for this appointment: I have masters degree in environmental sciences from UCLA and am a civil engineer with ten years of work experience and I work with the Santa Clara valley water district. I Was an Eagle Scout and participated in many trial projects and now have a great interest in our trails and parks. List any service to the community including any prior appointments. None What are you goals while serving on this Goal is to make parks safe and desirable locations for leisure. My hope is to make our community for attune 3.1.a Packet Pg. 10 Attachment: Application - Parks and Recreation Commission - Received 2022-08-29 - Littell, Ryan (3894 : Commission Interviews) Board/Commission/Committee?to our environments needs to create a greener future. Why are you the most qualified to serve on this Board/Commission/Committee? I have great organizational skills and understand that as a community we need to work together to keep Gilroy a safe and beautiful place for families to live and grow. Declaration of Residency I Understand Email not displaying correctly? View it in your browser. 3.1.a Packet Pg. 11 Attachment: Application - Parks and Recreation Commission - Received 2022-08-29 - Littell, Ryan (3894 : 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:Friday, September 2, 2022 8:33:42 AM 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 Terence Last Name Fugazzi Board/Commission/Committee of Interest Parks & Recreation 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: 9-year resident. Active in staying abreast of city issues and getting involved when I feel it necessary. Our family is active and enjoys the outdoors, especially the dog parks. My personal qualifications are 25 years in executive management in the area of marketing. BS in Computer Science. List any service to the community including any prior appointments. Never. My semi-retirement status now makes more I comment possible. What are you goals while serving on this Board/Commission/Committee? Help steer our parks and recreation needs and offerings in the best way to fit the citizens of Gilroy. 3.1.b Packet Pg. 12 Attachment: Application - Parks and Recreation Commission - Received 2022-09-02 - Fugazzi, Terence (3894 : Commission Interviews) Why are you the most qualified to serve on this Board/Commission/Committee? Not knowing the other applicants, I would be a bit presumptive to think how I might be the “most” qualified. That said: I care. I’m smart. I have time to give back to my community. Declaration of Residency I Understand Email not displaying correctly? View it in your browser. 3.1.b Packet Pg. 13 Attachment: Application - Parks and Recreation Commission - Received 2022-09-02 - Fugazzi, Terence (3894 : Commission Interviews) 3.1.c Packet Pg. 14 Attachment: Application - Parks and Recreation Commission - Received 2022-09-07 - Ramirez, Luis (3894 : Commission Interviews) 3.1.c Packet Pg. 15 Attachment: Application - Parks and Recreation Commission - Received 2022-09-07 - Ramirez, Luis (3894 : Commission Interviews) 1 Thai Pham From:noreply@civicplus.com Sent:Wednesday, June 29, 2022 10:52 AM To:City Clerk Subject:EXTERNAL - Online Form Submittal: Youth Commission Application Youth Commission Application City of Gilroy Application for the Gilroy Youth Commission The City of Gilroy accepts applications at any time and will keep them on file for one year. PLEASE NOTE: All Board, Commission, and Committee applications are a public record. First Name Emily Jiarui Last Name Zheng Birth Date Address1 Address2 Field not completed. City Gilroy State California Zip 95020 Phone Number Secondary Phone Number Field not completed. Email address Grade 13 School Please list your background, including community service within the City of Gilroy,and any prior My stepdad is homeless and I eat food from the foodbanks. I do volunteer work for the community with my church. My CAUTION: This email originated from an External Source. Please use proper judgment and caution when opening attachments, clicking links, or responding to this email. 3.1.d Packet Pg. 16 Attachment: Application - Youth Commission - Received 2022-06-29 - Zheng, Emily (3894 : Commission Interviews) 2 experience with groups or organizations that would qualify you for this Commission: Chinese School Principal had me organize the face painting activities for the Bay Area youth and kids. Why would you like to be appointed to the Gilroy Youth Commission? My stepdad sleeps outside a lot. He doesn't do drugs or alcohol. He has no criminal background. He's not crazy. I am from China, just as many in Gilroy are here from other countries. I want to help youth in Gilroy get a quality education, and other activities / interests that can lead to scholarships and Leadership development. My school principal, parents, and myself signed extensive paperwork to allow me to take courses at Shasta College for credit and grade. My classmates are over 18, and due to me getting tested into more advanced courses, many are 21 or over. My course in Sociology helps me understand the context for the issues faced by Gilroy youth. Emma Lazarus and Pablo Neruda started writing and also created profound poems at the age of 11 and 10 respectively. Please judge me by my merits and not by age. What do you feel is the biggest problem facing the youth of Gilroy?If you are appointed,what are the steps you will take to address the problem? The biggest problems faced by Gilroy youth are: Poverty, lack of education, Racism, and parents overwhelmed by federal and state programs not meeting their needs. Healthcare is another important issue. Medical works only in theory and on the surface. My mom doesn't speak English and when I was tasked to help her locate an Oncologist, none of the numbers worked, or they had you on hold for hours, and ultimately many that you finally talked to in person wouldn't even accept Medical. Bullying is also an issue and many families have challenges when this occurs at school. Reapplying Commissioners) What can you do to improve your previous performance on the Commission? Field not completed. Email not displaying correctly? View it in your browser. 3.1.d Packet Pg. 17 Attachment: Application - Youth Commission - Received 2022-06-29 - Zheng, Emily (3894 : Commission Interviews) 3.1.e Packet Pg. 18 Attachment: Application - Youth Commission - Received 2022-08-15 - Gong, Sophie (3894 : Commission Interviews) 3.1.e Packet Pg. 19 Attachment: Application - Youth Commission - Received 2022-08-15 - Gong, Sophie (3894 : Commission Interviews) 3.1.e Packet Pg. 20 Attachment: Application - Youth Commission - Received 2022-08-15 - Gong, Sophie (3894 : Commission Interviews) 3.1.f Packet Pg. 21 Attachment: Application - Youth Commission - Received 2022-08-16 - Dinh, James (3894 : Commission Interviews) 3.1.f Packet Pg. 22 Attachment: Application - Youth Commission - Received 2022-08-16 - Dinh, James (3894 : 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: Youth Commission Application Date:Friday, September 9, 2022 4:12:45 PM Youth Commission Application City of Gilroy Application for the Gilroy Youth Commission The City of Gilroy accepts applications at any time and will keep them on file for one year. PLEASE NOTE: All Board, Commission, and Committee applications are a public record. First Name Michael Last Name D’Angelo Birth Date Address1 Address2 Field not completed. City Gilroy State California Zip 95020 Phone Number Secondary Phone Number Email address Grade 11 School Christopher High School Please list your background, including community service within the City of Gilroy, and any prior experience with groups I have no experience in community service in Gilroy, but I have worked a construction multiple times during summers. 3.1.g Packet Pg. 23 Attachment: Application - Youth Commission - Received 2022-09-09 - D'Angelo, Michael (3894 : Commission Interviews) or organizations that would qualify you for this Commission: Why would you like to be appointed to the Gilroy Youth Commission? I would like to be part of the Commission so I can help out with my town I have been in my whole life. Also I would like to learn politics and things that is going on in Gilroy. What do you feel is the biggest problem facing the youth of Gilroy? If you are appointed, what are the steps you will take to address the problem? The thing that I feel that is a big problem in Gilroy for the youth is mainly the Levi down by the creek. I feel it was really fun to walk and go down a couple years ago, but homeless have started to go there and use the creek for a lot of stuff like washing clothes bathing, and I feel it makes it really unsafe to walk, Reapplying Commissioners) What can you do to improve your previous performance on the Commission? Make sure we are putting are money into are city wisely and also try your best to think how your next decision would effect the whole community not just a section of people Email not displaying correctly? View it in your browser. 3.1.g Packet Pg. 24 Attachment: Application - Youth Commission - Received 2022-09-09 - D'Angelo, Michael (3894 : 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: Youth Commission Application Date:Friday, September 9, 2022 4:41:26 PM Youth Commission Application City of Gilroy Application for the Gilroy Youth Commission The City of Gilroy accepts applications at any time and will keep them on file for one year. PLEASE NOTE: All Board, Commission, and Committee applications are a public record. First Name Alfred Last Name James Birth Date Address1 Address2 Field not completed. City Gilroy State CA Zip 95020 Phone Number Secondary Phone Number Field not completed. Email address Grade 10 School Dr. T.J. Owen's Gilroy Early College Academy. Please list your background, including community service within the City of Gilroy, and any prior experience with groups Since the 5th grade, I have been a part of the Boy Scouts of America in Troop 792. Throughout the years, I have been helping out other scouts complete their Eagle projects, all of which have the same goal of benefiting the community. One of the more notable projects was led by an Eagle Scout, Joey Pantaleoni. In this project, the troop built a cement wall at the Gilroy Sports Complex so water wouldn't disrupt the soccer games that 3.1.h Packet Pg. 25 Attachment: Application - Youth Commission - Received 2022-09-09 - James, Alfred (3894 : Commission Interviews) or organizations that would qualify you for this Commission: occurred and placed trash cans around the park. Another notable project was led by another Eagle Scout, Lucas Bissell. In this project, we built and painted a bookshelf at the San Martin Lions Club that holds books for children to read, take from, or donate to. Both of these projects gave me wonderful opportunities to help out and give back to the community. Why would you like to be appointed to the Gilroy Youth Commission? I want to be appointed to the Gilroy Youth Commission because I would like to connect the gap between the youth and the city to enhance engagement in the community. I have also seen how helping the community has improved the city and I’d like to be a part of this. I would also like to connect the gap between the youth and the city to enhance engagement in the community. What do you feel is the biggest problem facing the youth of Gilroy? If you are appointed, what are the steps you will take to address the problem? A noticeable problem that exists within the youth of Gilroy is smoking and drug abuse. I’ve seen this issue occur at countless high schools and middle schools, and its effects are devastating. It definitely feels like there is a lack of resources related to this, so if I’m appointed, I would push more towards hosting events that discuss the dangers/consequences of drug abuse. These events would likely be geared towards students, parents, and school administrators to prevent drug abuse at home and at school. Reapplying Commissioners) What can you do to improve your previous performance on the Commission? Field not completed. Email not displaying correctly? View it in your browser. 3.1.h Packet Pg. 26 Attachment: Application - Youth Commission - Received 2022-09-09 - James, Alfred (3894 : 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: Youth Commission Application Date:Friday, September 9, 2022 4:57:01 PM Youth Commission Application City of Gilroy Application for the Gilroy Youth Commission The City of Gilroy accepts applications at any time and will keep them on file for one year. PLEASE NOTE: All Board, Commission, and Committee applications are a public record. First Name Winston Last Name James Birth Date Address1 Address2 Field not completed. City Gilroy State CA Zip 95020 Phone Number Secondary Phone Number Field not completed. Email address Grade 12 School Christopher High School Please list your background, including community service within the City of Gilroy, and any prior experience with groups My history with the City of Gilroy can be seen through my work as a Boy Scout and a former City of Gilroy Youth Commissioner. As a Boy Scout I worked on various projects that have not only helped Gilroy, but specifically the youth of Gilroy. As a 2 term Senior Patrol Leader of my Boy Scout Troop, 792, I believe I have the leadership history and qualifications that can once again translate into my appointment on the Gilroy Youth 3.1.i Packet Pg. 27 Attachment: Application - Youth Commission - Received 2022-09-09 - James, Winston (3894 : Commission Interviews) or organizations that would qualify you for this Commission: Commision. For example, when working on an Eagle project for the City of Gilroy, we worked on a concrete wall that prevented flooding of rainwater onto Gilroy Sports Park fields which previously prevented the youth soccer teams of Gilroy from being able to play their matches. With my previous history as being a commissioner the last two years, I have been given a taste of what a normal term could look like without the burden of COVID. I understand the commitment it takes to be a part of the Commision, and would like to lead the commission again in a different pathway with what I have learned over the past years. Why would you like to be appointed to the Gilroy Youth Commission? I would liked to be reappointed to the Gilroy Youth Commision, because I understood the effect the commission had on the community of Gilroy where it was beneficial and getting a reward out of our work was satisfying and I know with more planning and more experience coming into the commission once again, I would be able to lead the commission with some more expertise to have a even more profound effect in being able to engage city and youth involvement. What do you feel is the biggest problem facing the youth of Gilroy? If you are appointed, what are the steps you will take to address the problem? I feel the biggest problem facing the youth of Gilroy is the lack of resources and lack of connection between the City of Gilroy and the youth community. Without resources like this youth commission there are not a lot of ways to connect with youth and give them opportunities, something the youth community is lacking. I feel should I be reappointed to the commission, so I can take a better approach as to giving the youth more resources and bridging the gap between youth and city. I would do this with more engaging events for the youth to where they can understand the importance of having a strong city community. I would introduce workshop events and community youth events that engage this relationship. Reapplying Commissioners) What can you do to improve your previous performance on the Commission? Although my term was stunted by the effects of COVID-19, I know with the experience I have grasped over the last two years, I can introduce my expertise on to the Youth Commision in a way where we grow from out mistakes from previous years such as lack of planning. However, with this expertise comes a lot of knowledge on what can work, and with the COVID rates not being as such an obstacle, I believe I can build on the previous downfalls of the commission in the last two years, to create a year of flourishment in the commission. One where the events made for the youth are truly engaging and finding better ways to get the city of Gilroy involved in what we do. I believe with my experience and knowledge of previous years, I can point the commission in a positive direction. Email not displaying correctly? View it in your browser. 3.1.i Packet Pg. 28 Attachment: Application - Youth Commission - Received 2022-09-09 - James, Winston (3894 : 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: Youth Commission Application Date:Thursday, September 8, 2022 5:06:49 PM Youth Commission Application City of Gilroy Application for the Gilroy Youth Commission The City of Gilroy accepts applications at any time and will keep them on file for one year. PLEASE NOTE: All Board, Commission, and Committee applications are a public record. First Name Destiny Last Name Saldate Birth Date Address1 Address2 Field not completed. City gilroy State California Zip 95020 Phone Number Secondary Phone Number Field not completed. Email address Grade 11 School Christopher High School Please list your background, including community service within the City of Gilroy, and any prior experience with groups i have no experience 3.1.j Packet Pg. 29 Attachment: Application - Youth Commission - Received 2022-09-09 - Saldate, Destiny (3894 : Commission Interviews) or organizations that would qualify you for this Commission: Why would you like to be appointed to the Gilroy Youth Commission? i want to practice servant leadership What do you feel is the biggest problem facing the youth of Gilroy? If you are appointed, what are the steps you will take to address the problem? There is not enough activities and lack of mentorship if i am appointed i would find a way to first of all get us all together and ask about different activities the youth would like to see Reapplying Commissioners) What can you do to improve your previous performance on the Commission? Field not completed. Email not displaying correctly? View it in your browser. 3.1.j Packet Pg. 30 Attachment: Application - Youth Commission - Received 2022-09-09 - Saldate, Destiny (3894 : Commission Interviews) City Council Regular Meeting Minutes September 12, 2022 Page 1 of 8 City of Gilroy City Council Regular Meeting Minutes September 12, 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 Invocation was led by Pastor Quirke from South Valley Community Church. 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 Present Dion Bracco Council Member Present Zach Hilton Council Member Present Peter Leroe-Muñoz Vice Mayor Present Carol Marques Council Member Present Fred Tovar Council Member Present 1.2. Orders of the Day There were none. 1.3. Employee Introductions There were none. 2. CEREMONIAL ITEMS 2.1. Proclamations, Awards, and Presentations 2.1.1. Proclamation Naming September as Childhood Cancer Awareness Month Mayor Blankley read aloud the proclamation and presented it to Allyssa Gil-Ojeda, Development and Communications Coordinator of Jacob's Heart. 3. PRESENTATIONS TO THE COUNCIL 3.1. PUBLIC COMMENT BY MEMBERS OF THE PUBLIC ON ITEMS NOT ON THE AGENDA BUT WITHIN THE SUBJECT MATTER JURISDICTION OF THE CITY COUNCIL The following individuals spoke on items that were not on the agenda: 8.1 Packet Pg. 31 Minutes Acceptance: Minutes of Sep 12, 2022 6:00 PM (CONSENT CALENDAR (ROLL CALL VOTE)) City Council Regular Meeting Minutes September 12, 2022 Page 2 of 8 The following members spoke in favor of building a youth Center at the east side of Gilroy: Raymundo Armendariz Hazel Quintero Jacqueline Castillo Xavier Garcia Vanetina Runales John Zekanoski invited Council Members to SCAPA DART Annual Disaster Preparedness Exercise scheduled for September 24th at San Martin Airport. David C. Lopez requested an update on his case from the Police Department. Ron Kirkish urged council to vote no on Council Member’s Hilton future agenda item on gun safety ordinance. Joan Lewis provided Council Members a brochure to Council updating the state of the farming community. Eric Jacobson spoke about the issue of homelessness at IOOF Avenue. Valentina Runales spoke on the issue homelessness, advocated for a youth center, and commented on one of the Council Member comments about the low rider community in the City. There being no further speakers, Mayor Blankley closed Public Comment. 4. REPORTS OF COUNCIL MEMBERS Council Member Bracco had nothing to report. Council Member Armendáriz recognize Hispanic Heritage Month. Council Member Marques notified the public of two upcoming events: Chalk Festival on October 8th and Beer Crawl on October 15th. Council Member Hilton reported on South County United for Health. Council Member Tovar National League of Cities Conference. Council Member Leroe-Muñoz reported on VTA Mobility Partnership will be meeting on Wednesday, September 14th, and reminded the public that Gilroy’s National Night Out Event is on October 4th. Mayor Blankley reported on Gilroy Economic Development Partnership and League of California Cities Conference. 5. COUNCIL CORRESPONDENCE 5.1. City Council Member Meeting Attendance Council accepted the report. 6. FUTURE COUNCIL INITIATED AGENDA ITEMS Council Member Hilton requested Council to amend City Code Chapter 16 Offenses-Miscellaneous to add “Safe Storage of Firearms” on a future agenda . The item failed to receive majority support. 8.1 Packet Pg. 32 Minutes Acceptance: Minutes of Sep 12, 2022 6:00 PM (CONSENT CALENDAR (ROLL CALL VOTE)) City Council Regular Meeting Minutes September 12, 2022 Page 3 of 8 Council Member Armendariz requested Council to con sider a resolution recognizing September 15th through October 15th as National Hispanic Heritage Month. The item received unanimous support. 7. CONSENT CALENDAR (ROLL CALL VOTE) RESULT: APPROVE [UNANIMOUS] MOVER: Dion Bracco, Council Member SECONDER: Fred Tovar, Council Member AYES: Blankley, Armendariz, Bracco, Hilton, Leroe-Muñoz, Marques, Tovar 7.1. City Council - Regular Meeting - Aug 15, 2022 6:00 PM A motion was made to approve the minutes. 7.2. City Council - Special Meeting - Study Session - Aug 29, 2022 6:00 PM A motion was made to approve the minutes as amended. 7.3. Proclamation Naming September 17 - 23, 2022 as Constitution Week A motion was made to accept the Proclamation. 7.4. Approval of the Update to the Gilroy Conflict of Interest Code During Its Biennial Review A motion was made to adopt the resolution. Enactment No.: Resolution No. 2022-67 7.5. 2023 City Council Meeting Schedule A motion was made to approve the 2023 City Council Meeting Schedule. 7.6. Acceptance of an Office of Traffic Safety Selective Traffic Enforcement Program Grant for $95,000 and Adoption of a Resolution of the City Council of the City of Gilroy Approving a FY23 Budget Amendment A motion was made to adopt the resolution. Enactment No.: Resolution No. 2022-68 7.7. Adoption of a Resolution in Opposition to the Proposed Sargent Ranch Quarry Project in South Santa Clara County A motion was made to adopt the resolution. Enactment No.: Resolution No. 2022-69 7.8. Claim of Ceily Hepner (The City Administrator recommends a “yes” vote under the Consent Calendar shall constitute the denial of the claim.) A motion was made to deny the claim. 8. BIDS AND PROPOSALS There were none. 9. PUBLIC HEARINGS There were none. 10. UNFINISHED BUSINESS 8.1 Packet Pg. 33 Minutes Acceptance: Minutes of Sep 12, 2022 6:00 PM (CONSENT CALENDAR (ROLL CALL VOTE)) City Council Regular Meeting Minutes September 12, 2022 Page 4 of 8 10.1. Consideration of Expanding Restrictions on Camping on Public Property Senior Management Analyst Atkins provided staff report and responded to Council Member questions. Mayor Blankley opened public comment. Jan Bernstein Chargin reminded Council that kids are also in homeless encampments and requested the City should make maps where the unhoused could go be publicly available. Ron Kirkish requested that a ban on homeless encampments should be 1,000 ft in the new ordinance Araceli Vaquera requested that playgrounds be considered within the ordinance. Eric Jacobson stated the Gilroy should look into the City of Fremont model of dealing with homeless encampments and designate walk areas in the new ordinance. Valentina Renales stated that the City needs to fix the underlying issues of homelessness and provide rehab services in the City. She also advocated that Youth Center is needed in Gilroy to prevent future kids in becoming homeless. Sally Armendariz stated that a Youth Center is need on east side of Gilroy. Maria Delgado inquired if the City has conducted a survey on who the unhoused population are. Bill O'Connor stated he like the proposed approach of dealing with encampments. There being no further speakers, Mayor Blankley closed public comment. Mayor Blankley requested Council to direct staff to come back to no camping within 500 ft of schools, daycares, playgrounds, or where children are expected to be; and no camping that restricts public safety or infrastructure access. The request received unanimous support. Council Member Marques requested Council to look at creeks within the City’s jurisdiction. The request received unanimous support. Council Member Armendariz requested Council for staff to provide a report on service provider feedback, port-a-potties and trash bins, and ample notices based on best practices. The request did not receive majority support. Council Member Leroe-Munoz requested Council for staff to look at the enforcement of this proposed ordinance. The request received unanimous support. 11. INTRODUCTION OF NEW BUSINESS 11.1. Approval of an Exclusive Negotiating Agreement by and between Select Contracts and the City of Gilroy in Order to Assess Opportunities for Development of the 536 Acres of Hillside Property at Gilroy Gardens (Proposed to be Renamed the Recreation Gateway Area) City Administrator Forbis provided staff presentation and responded to 8.1 Packet Pg. 34 Minutes Acceptance: Minutes of Sep 12, 2022 6:00 PM (CONSENT CALENDAR (ROLL CALL VOTE)) City Council Regular Meeting Minutes September 12, 2022 Page 5 of 8 Council Member questions. Mayor Blankley opened Public Comment. Kelly Ogier requested Council to vote for the proposal. There being no further speakers, Mayor Blankley closed Public Comment. a) Approve an Exclusive Negotiating Agreement between the City of Gilroy and Select Contracts and authorize the City Administrator to execute all related documents; and RESULT: APPROVE [UNANIMOUS] MOVER: Fred Tovar, Council Member SECONDER: Rebeca Armendariz, Council Member AYES: Blankley, Armendariz, Bracco, Hilton, Leroe-Muñoz, Marques, Tovar b) Approve the Gilroy Economic Development Partnership recommendation to rename the "536 Project" to the "Recreation Gateway Area." RESULT: APPROVE [UNANIMOUS] MOVER: Peter Leroe-Muñoz, Vice Mayor SECONDER: Rebeca Armendariz, Council Member AYES: Blankley, Armendariz, Bracco, Hilton, Leroe-Muñoz, Marques, Tovar 11.2. Award of Contract to W-Trans for Downtown Parking Management Plan - Adopt a resolution of the City Council of the City of Gilroy amending the budget for the City of Gilroy for Fiscal Year 2022 -2023 and appropriating proposed expenditure amendments from the General Fund. City Engineer Heap provided staff presentation and responded to Council Member questions. Mayor Blankley opened Public Comment. Scott Solmonson inquired what would be the cost of implementing the parking management plan. There being no further speakers, Mayor Blankley closed Public Comment. Adopt a resolution of the City Council of the City of Gilroy amending the budget for the City of Gilroy for Fiscal Year 2022 -2023 and appropriating proposed expenditure amendments from the General Fund. a) Adopt a resolution of the City Council of the City of Gilroy amending the budget for the City of Gilroy for Fiscal Year 2022 -2023 and appropriating proposed expenditure amendments from the General Fund RESULT: APPROVE [5 TO 2] MOVER: Fred Tovar, Council Member SECONDER: Rebeca Armendariz, Council Member AYES: Blankley, Armendariz, Hilton, Leroe-Muñoz, Tovar NAYS: Dion Bracco, Carol Marques 8.1 Packet Pg. 35 Minutes Acceptance: Minutes of Sep 12, 2022 6:00 PM (CONSENT CALENDAR (ROLL CALL VOTE)) City Council Regular Meeting Minutes September 12, 2022 Page 6 of 8 Enactment No.: Resolution No. 70 b) Award a contract to W-Trans in the amount of $273,419 with a project contingency of $27,342 (approximately 10%) for the Downtown Parking Management Plan, Project, No. 22-RFP-PW-477 and authorize the City Administrator to execute the contract and associated documents. RESULT: APPROVE [5 TO 2] MOVER: Fred Tovar, Council Member SECONDER: Rebeca Armendariz, Council Member AYES: Blankley, Armendariz, Hilton, Leroe-Muñoz, Tovar NAYS: Dion Bracco, Carol Marques 11.3. Memorandum of Understanding with the County of Santa Clara to Utilize Affordable Housing Bonds (2016 Measure A) for the Development of Affordable Housing at 8th & Alexander City Administrator Forbis provided staff presentation and responded to Council Member questions. Mayor Blankley opened Public Comment. Valentina Renales inquired what waiving the development impact fees meant. City Administrator Forbis briefly responded to Ms. Renales’s inquiry. There being no further speakers, Mayor Blankley closed Public Comment. a) Approve the Memorandum of Understanding with the County of Santa Clara to Utilize Affordable Housing Bonds (2016 Measure A) for the Development of Affordable Housing at 8th & Alexander; b) Authorize the City Administrator to waive development impact fees and to execute the Memorandum of Understanding and any related documents; and c) Authorize the City Administrator to make minor modifications to the MOU with the legal approval of the City Attorney. RESULT: APPROVE [UNANIMOUS] (ALL IN ONE MOTION) MOVER: Rebeca Armendariz, Council Member SECONDER: Fred Tovar, Council Member AYES: Blankley, Armendariz, Bracco, Hilton, Leroe-Muñoz, Marques, Tovar 12. CITY ADMINISTRATOR'S REPORTS 12.1. California Office of Emergency Services Grant City Administrator Forbis provided brief report and responded to Council Member questions. 12.2. Car Show Impact on City Services City Administrator Forbis provided brief report and responded to Council Member questions. 8.1 Packet Pg. 36 Minutes Acceptance: Minutes of Sep 12, 2022 6:00 PM (CONSENT CALENDAR (ROLL CALL VOTE)) City Council Regular Meeting Minutes September 12, 2022 Page 7 of 8 Mayor Blankley opened public comment. Sally Armendariz stated bringing this item is an attack on Hispanic community. Valentina Renales implored Council to embrace Gilroy's low-rider community. Ron Kirkish apologized for writing the letter he wrote previously. Scott Solmonson inquired what the issue was at Downtown. There being no further speakers, Mayor Blankley closed public comment. 12.3. Uvas Creek Clean Up Event City Administrator Forbis provided brief report and responded to Council Member questions. 12.4. Update on Unhoused Encampment at IOOF Ave and Miller Slough City Administrator Forbis provided brief report and responded to Council Member questions. Mayor Blankley opened public comment. Scott Solmonson inquired what the site clean up was actually entailing. There being no further speakers, Mayor Blankley closed public comment. 12.5. South County Joint Webinar – CalHFA ADU Grant Program City Administrator Forbis provided brief and responded to Council Member questions. 13. CITY ATTORNEY'S REPORTS There was none. 14. CLOSED SESSION Mayor Blankley opened Public Comment. There being no further speakers, Mayor Blankley closed Public Comment. Council Member Armendariz notified that she would recuse herself on Closed Session item No. 14.1. A motion was made by Mayor Blankley to go into Closed Session. The vote was unanimous Mayor Blankley adjourned Regular Meeting to Closed Session at 9:00 p.m. The City Council convened in Closed Session at 9:05 p.m. The Council voted to stay in closed session was unanimous. 14.1. CONFERENCE WITH LEGAL COUNSEL – PENDING LITIGATION: Government Code Section 54956.9(d)(1) and Gilroy City Code Section 17A.11(3)(b) Name of case: Jesse R. Sanchez; Mirna Leonides Sanchez; and the Estate of Jesse Sanchez, Jr. v. The City of Gilroy; County of Santa Clara; Rebeca Armendariz; Sally Armendariz; Domingo Armendariz Filed August 22, 2022. 8.1 Packet Pg. 37 Minutes Acceptance: Minutes of Sep 12, 2022 6:00 PM (CONSENT CALENDAR (ROLL CALL VOTE)) City Council Regular Meeting Minutes September 12, 2022 Page 8 of 8 No reportable action. 14.2. PUBLIC EMPLOYEE PERFORMANCE EVALUATION Pursuant to Government Code Section 54957 and Gilroy City Code Section 17A.11 (2); Employee Name/Title: Andy Faber, City Attorney No reportable action. 15. ADJOURN TO OPEN SESSION Mayor Blankley reported out of Closed Session as shown above. 16. ADJOURNMENT The meeting was adjourned at 9:20 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 8.1 Packet Pg. 38 Minutes Acceptance: Minutes of Sep 12, 2022 6:00 PM (CONSENT CALENDAR (ROLL CALL VOTE)) City of Gilroy STAFF REPORT Agenda Item Title: A Resolution Proclaiming September 15 through October 15, 2022 as National Hispanic Heritage Month Meeting Date: September 19, 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 adopts the resolution proclaiming September 15 through October 15, 2022, as National Hispanic Heritage Month. BACKGROUND Each year since 1988, the National Hispanic Heritage Month has been recognized throughout the United States and came originally from the National Hispanic Heritage Week which started in 1968. 8.2 Packet Pg. 39 The National Hispanic Heritage Month recognizes the contributions of the Hispanic community to the nation, as well as the history and culture of each nation and people - group of Hispanic heritage. Attached is a resolution proclaiming the recognition of September 15 through October 15, 2022, as National Hispanic Heritage Month. Attachments: 1. Draft Resolution 8.2 Packet Pg. 40 RESOLUTION NO. 2022-XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY PROCLAIMING SEPTEMBER 15, 2022 THROUGH OCTOBER 15, 2022 AS NATIONAL HISPANIC HERITAGE MONTH WHEREAS, America’s cultural diversity has helped strengthen and define our country for hundreds of years; and WHEREAS, as entrepreneurs and public servants, scholars, and artists, Hispanic Americans have provided wisdom, energy, and leadership in both small and large communities across this country; and WHEREAS, Hispanics represent a vibrant and thriving part of our diverse community. Their histories and cultures stretch across centuries, and the contributions of those who come to our community continue to add new chapters in our City’s history; and WHEREAS, each year, Americans observe National Hispanic Heritage Month from September 15 to October 15, by celebrating the histories, cultures, and contributions of American citizens whose ancestors came from Spain, M exico, the Caribbean, and Central and South America; and WHEREAS, the observation started in 1968 as Hispanic Heritage Week under President Lyndon Johnson and was expanded by President Ronald Reagan in 1988 to cover a 30-day period starting on September 15 and ending on October 15. It was enacted into law on August 17, 1988, on the approval of Public Law 100-402; and WHEREAS, the day of September 15 is significant because it is the anniversary of independence for Latin American countries Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua. In addition, Mexico and Chile celebrate their independence days on September 16 and September 18, respectively. Also, Día de la Raza, which is October 12, falls within this 30-day period; and WHEREAS, during National Hispanic Heritage Month we recognize the millions of Hispanic Americans whose love of family, hard work, and community have helped unite us as a people and sustain us as a nation; and, WHEREAS, the City of Gilroy looks forward to celebrating Hispanic Heritage Month with the greater community to highlight the rich heritage, art, history, food, music, and tradition of all 26+ Latin-American nations while recognizing that these nations are not monogamous and this month celebrates, honors and pays tribute to all for their contributions to our city and society; and WHEREAS, while many Hispanic Americans today are thriving, others are still struggling to overcome obstacles, including language and cultural barriers, as well as discrimination; and 8.2.a Packet Pg. 41 Attachment: Draft Resolution (3975 : Hispanic Heritage Month) Resolution No. 2022-XX National Hispanic Heritage Month City Council Regular Meeting | September 19, 2022 Page 2 of 2 WHEREAS, the City of Gilroy is committed to recognizing Hispanic culture and heritage as an important part of the City and its strong, inclusive community, and to ensuring that all Hispanic Americans have the opportunities they need to realize their dreams of a better life. NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of Gilroy does hereby support September 15, 2022, through October 15, 2022, as National Hispanic Heritage Month and calls for its observance by all residents. PASSED AND ADOPTED this 19th day of September 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 8.2.a Packet Pg. 42 Attachment: Draft Resolution (3975 : Hispanic Heritage Month) City of Gilroy STAFF REPORT Agenda Item Title: Accept and File Quarterly Cash and Investment Report as of June 30, 2022 Meeting Date: September 19, 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 Accept and file the quarterly cash and investment report as of June 30, 2022. EXECUTIVE SUMMARY Council is requested to accept and file the quarterly investment report as of June 30, 2022. BACKGROUND The quarterly investment reports are prepared pursuant to the City’s investment policy to keep the City Council apprised of the City’s investment activities. 8.3 Packet Pg. 43 ANALYSIS At June 30, 2022, the City’s cash and investments totaled $172.9 million, of which $153.9 million is invested with the LAIF. The fiscal year-to-date interest earnings are $0.6 million. In addition, approximately $47.7 million is held by Fiscal Agents in the Trustee capacity for various bond issues as bond proceeds, debt service reserves, bond payments, and for post-employment benefits related to pension. The majority of this balance ($40.3 million) consists of the City of Gilroy’s share of the Acquisition and Construction Funds for the SCRWA Plant Expansion Project. FISCAL IMPACT/FUNDING SOURCE There are no direct fiscal impacts to receiving and filing the quarterly cash and investment report. This is an activity included in the Finance Department’s annual workplan. Attachments: 1. Investment Report City 06-30-22 8.3 Packet Pg. 44 8.3.a Packet Pg. 45 Attachment: Investment Report City 06-30-22 (3957 : Cash and Investment Report as of June 30, 2022) 8.3.a Packet Pg. 46 Attachment: Investment Report City 06-30-22 (3957 : Cash and Investment Report as of June 30, 2022) 8.3.a Packet Pg. 47 Attachment: Investment Report City 06-30-22 (3957 : Cash and Investment Report as of June 30, 2022) 8.3.a Packet Pg. 48 Attachment: Investment Report City 06-30-22 (3957 : Cash and Investment Report as of June 30, 2022) 8.3.a Packet Pg. 49 Attachment: Investment Report City 06-30-22 (3957 : Cash and Investment Report as of June 30, 2022) 8.3.a Packet Pg. 50 Attachment: Investment Report City 06-30-22 (3957 : Cash and Investment Report as of June 30, 2022) 8.3.a Packet Pg. 51 Attachment: Investment Report City 06-30-22 (3957 : Cash and Investment Report as of June 30, 2022) 8.3.a Packet Pg. 52 Attachment: Investment Report City 06-30-22 (3957 : Cash and Investment Report as of June 30, 2022) 8.3.a Packet Pg. 53 Attachment: Investment Report City 06-30-22 (3957 : Cash and Investment Report as of June 30, 2022) 8.3.a Packet Pg. 54 Attachment: Investment Report City 06-30-22 (3957 : Cash and Investment Report as of June 30, 2022) 8.3.a Packet Pg. 55 Attachment: Investment Report City 06-30-22 (3957 : Cash and Investment Report as of June 30, 2022) City of Gilroy STAFF REPORT Agenda Item Title: Approval of Public Art Sculpture Proposed for the Tenth and Chestnut Commercial Project Meeting Date: September 19, 2022 From: Jimmy Forbis, City Administrator Department: Community Development Department Submitted By: Sharon Goei, Community Development Director Prepared By: Kraig Tambornini, Senior Planner 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 public art sculpture proposed for the Tenth and Chestnut project. BACKGROUND On September 20, 2021, the City Council approved a commercial shopping center planned development at Tenth and Chestnut Streets, AS 20 -14, TM 20-03 and Z 20-04. As a condition of approval (AS 20-14, Condition 9) the applicant is obliged and has agreed to install a suitable, significant piece of public art prior to occupancy of the complex. 8.4 Packet Pg. 56 On June 14, 2022, the Arts and Culture Commission reviewed the sculpture proposed for the project, and on a vote of 4-0 unanimously recommended the project to the City Council for approval. The artists Jonathan and Saori Russel of Ride Art Studio and the applicant were available to present the artwork. ANALYSIS The public art piece consists of a kinetic sculpture of a garlic bulb and cloves installed on a concrete podium at a prominent public entry into the project. The location and concept are the same as shown on the plans approved for the project entitlements. The artists intend to keep the theme local to the City, and garlic is a well-known representative of Gilroy nationwide. The sculpture will be 22 feet high and have a lighting feature at night. The Public Art Policy provides the following criteria that may be used in evaluating a proposal: • The relationship of the artwork and site in terms of physical dimensions, social dynamics, local character, and surrounding context (existing or planned). • The visibility of the site by the general public. • Public safety. • The contribution of the artwork’s design to an area by emphasizing a particular location through landmarks, gateways, and/or linkages to other parts of the community. • Interior and exterior vehicular and pedestrian traffic patterns. • Site design including landscaping, drainage, grading, lighting, and seating considerations. • Relationship of proposed artwork to existing artwork in the site vicinity. • Environmental impacts such as noise, sound, light, and odor. • Public accessibility to the artwork. • The probability of vandalism. The Arts and Culture Commission has concluded the artwork would satisfy the applicable criteria. The artists provided additional discussion about the details of the construction, including the quality of materials to be used and the durability of the structural components. The artists noted that there would be the ability to maintain control over the lighting, which is meant for decorative purposes only, and assured the committee that the rotating elements would be of high quality and operate smoothly and quietly. 8.4 Packet Pg. 57 ALTERNATIVES Council may approve the proposed artwork as presented. Staff recommends this option because the artwork has been recommended by the Arts and Culture Commission. Council may continue the matter and direct staff to work with the applicant to develop additional or alternative art concepts for its review and consideration. Staff does not recommend this option because the Arts and Culture Commission has reviewed and supported the concepts as presented to the Council. FISCAL IMPACT/FUNDING SOURCE The art is on private property and all costs are borne by the developer, including ongoing maintenance. NEXT STEPS The applicant will need to submit plans and obtain a building permit to install the artwork. The installation is required before final building occupancy can be granted. Attachments: 1. Site Plan 2. Plaza Allium Kinetic Sculpture Dimensions 3. Plaza Allium Kinetic Sculpture Materials 4. Plaza Allium Sculpture Images and Night View 5. Plaza Allium Sculpture Elevation View 6. Plaza Allium Artwork Video (Link) 8.4 Packet Pg. 58 8.4.aPacket Pg. 59Attachment: Site Plan (3933 : Public Art at Tenth and Chestnut) 19’9’10’6’ A Kinetic Wind Sculpture Proposal for PLAZA ALLIUM (E 10th Street and Chestnut Street, Gilroy, CA) DIMENSIONS Rotation of cloves Concept Drawing by Ride Art Studio Copyright © 2021 Ride Art, LLC3’8.4.b Packet Pg. 60 Attachment: Plaza Allium Kinetic Sculpture Dimensions (3933 : Public Art at Tenth and Chestnut) A Kinetic Wind Sculpture Proposal for PLAZA ALLIUM (E 10th Street and Chestnut Street, Gilroy, CA) Concept Drawing by Ride Art Studio Copyright © 2021 Ride Art, LLC MATERIALS & FINISH Stainless Steel Powderdoated Stainless Steel: Light Yellow Powdercoated Stainless Steel: Green Powdercoated Stainless Steel: White Internal Color Changing LED Light (12v) (included in sculpture proposal) 8.4.c Packet Pg. 61 Attachment: Plaza Allium Kinetic Sculpture Materials (3933 : Public Art at Tenth and Chestnut) 8.4.d Packet Pg. 62 Attachment: Plaza Allium Sculpture Images and Night View (3933 : Public Art at Tenth and Chestnut) 8.4.d Packet Pg. 63 Attachment: Plaza Allium Sculpture Images and Night View (3933 : Public Art at Tenth and Chestnut) 8.4.d Packet Pg. 64 Attachment: Plaza Allium Sculpture Images and Night View (3933 : Public Art at Tenth and Chestnut) 8.4.d Packet Pg. 65 Attachment: Plaza Allium Sculpture Images and Night View (3933 : Public Art at Tenth and Chestnut) 8.4.d Packet Pg. 66 Attachment: Plaza Allium Sculpture Images and Night View (3933 : Public Art at Tenth and Chestnut) 8.4.d Packet Pg. 67 Attachment: Plaza Allium Sculpture Images and Night View (3933 : Public Art at Tenth and Chestnut) 8.4.d Packet Pg. 68 Attachment: Plaza Allium Sculpture Images and Night View (3933 : Public Art at Tenth and Chestnut) 8.4.d Packet Pg. 69 Attachment: Plaza Allium Sculpture Images and Night View (3933 : Public Art at Tenth and Chestnut) 8.4.d Packet Pg. 70 Attachment: Plaza Allium Sculpture Images and Night View (3933 : Public Art at Tenth and Chestnut) 8.4.d Packet Pg. 71 Attachment: Plaza Allium Sculpture Images and Night View (3933 : Public Art at Tenth and Chestnut) 8.4.d Packet Pg. 72 Attachment: Plaza Allium Sculpture Images and Night View (3933 : Public Art at Tenth and Chestnut) 8.4.d Packet Pg. 73 Attachment: Plaza Allium Sculpture Images and Night View (3933 : Public Art at Tenth and Chestnut) 8.4.d Packet Pg. 74 Attachment: Plaza Allium Sculpture Images and Night View (3933 : Public Art at Tenth and Chestnut) 8.4.d Packet Pg. 75 Attachment: Plaza Allium Sculpture Images and Night View (3933 : Public Art at Tenth and Chestnut) 8.4.d Packet Pg. 76 Attachment: Plaza Allium Sculpture Images and Night View (3933 : Public Art at Tenth and Chestnut) 8.4.ePacket Pg. 77Attachment: Plaza Allium Sculpture Elevation View (3933 : Public Art at Tenth and Chestnut) https://cityofgilroy.org/167/Community-Development 8.4.f Packet Pg. 78 Attachment: Plaza Allium Artwork Video (Link) (3933 : Public Art at Tenth and Chestnut) City of Gilroy STAFF REPORT Agenda Item Title: Second Amendment to Agreement for Services with Allied Universal for After-Hours Park Security Patrol Services To Increase Existing Agreement by $42,480. Meeting Date: September 19, 2022 From: Jimmy Forbis, City Administrator Department: Public Works Department Submitted By: Daryl Jordan, PE, Public Works Director Prepared By: Michael Lewis, 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 with Allied Universal to increase funding and update contract language to the existing agreement for after-hours park security patrol services and authorize the City Administrator to execute the amendment and related documents. EXECUTIVE SUMMARY The City of Gilroy currently contracts with Universal Protection Service LP dba Allied Universal (formerly known as First Alarm, Inc.) to provide after-hours park security patrol services for city parks, trails, landscaped areas, and other facilities that are closed 8.5 Packet Pg. 79 at night. The original annual contract amount awarded for patrol services was $85,840 annually for an initial three-year term. Public Works staff recommends exercising its fourth and fifth-year options of the City’s contract with Allied Universal, permitting a new expiration date of January 31, 2025, as allowed in the Original Agreement. An amendment is also being requested to update the contract language, payment schedule, and to increase the overall contract by $42,480. BACKGROUND On December 2, 2019, City Council approved a three -year agreement for the period of January 2020-January 2023 in the amount of $257,520 ($85,840 annually) with Allied Universal (formerly known as First Alarm, Inc.) to patrol and secure City parks after hours. This three-year agreement also included the option for two additional one-year contract extensions. The First Amendment to the agreement was signed on May 17, 2022, to include a surcharge of 5.56% to be charged monthly on a separate invoice due to increasing fuel charges. The surcharge took effect for services on April 1, 2022. The additional surcharge allocations will expire once fuel costs revert to pre-January 2022 levels. These patrol services are paid out of the Landscape Maintenance operating budget of the General Fund (Fund 100-2420). ANALYSIS Allied Universal provides the City with exceptional patrol services and has proven to be responsive and effective. Some of the services Allied Universal provides are securing park and recreation facilities, unlocking gates at tennis courts, ejecting after-hours trespassers and vehicles, among other tasks that help secure City facilities . Parks Landscape and Maintenance Division staff has been pleased by the quality of work that Allied Universal provides to public facilities throughout the City. In order to continue utilizing Allied Universal’s services, staff recommends exercising its fourth and fifth-year options as allowed in the Original Agreement. An amendment is also being requested to update the contract language, payment schedule, and to increase the contract by $42,480. The new revised total contract amount under this amendment is $471,680. The increase of $42,480 of the contract amount is considered supplemental as this is an existing agreement. If awarded, the additional money will be used for the fuel surcharges awarded in the first amendment and emergencies that may occur throughout the remaining term of the contract. 8.5 Packet Pg. 80 ALTERNATIVES Council could choose not to approve the request to increase funding to Allied Universal. Not approving the amendment would force Public Works staff to solicit a new Request for Proposals (RFP) for work that is currently being performed. FISCAL IMPACT/FUNDING SOURCE The after-hours park security patrol services are paid from the Landscape Maintenance operating budget of the General Fund (100-2420). There are sufficient funds and budgetary appropriations in the General Fund to account for this contract increase . As such, the total increase requested is as follows: Description Amount Current Annual Contract Amount $85,840 Increase of Annual Amount $14,160 Revised Annual Contract Amount $100,000 Increase Requested for Overall Contract Amount $42,480 Revised Total Contract Amount (Including Fourth and Fifth-Year options through January 31, 2025) $471,680 NEXT STEPS With Council approval of the contract extension and funding increase, staff will finalize the amendment to the agreement and complete the process. Attachments: 1. First Alarm - First Amendment 2. First Alarm Security & Patrol - Park Patrol 2020 3. Allied Second Amendment - Contractor Signed 8.5 Packet Pg. 81 -1- 4845-8215-5540v1 MDOLINGER\04706083 FIRST AMENDMENT TO AGREEMENT FOR SERVICES WITH ALLIED UNIVERSAL SECURITY SERVICES FOR CITY OF GILROY PARK SECURITY PATROL This First Amendment to the Agreement for Services (“First Amendment”) is made and entered into as of April 1, 2022 (“Effective Date”), by and between the City of Gilroy, a California municipal corporation (“CITY”), and Allied Universal Security Services (“CONTRACTOR”). WHEREAS, the City of Gilroy, a municipal corporation (“City”), and Allied Universal Security Services entered into that certain agreement entitled City of Gilroy Park Security Patrol, effective on February 1, 2020, hereinafter referred to as “Original Agreement”; and WHEREAS, City and Allied Universal Security Services 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. Exhibit D of the Original Agreement shall be amended by the addition of the following to the payment schedule: Park security patrol shall include a surcharge of 5.56% to be charged monthly on a separate invoice due to increasing fuel costs. The surcharge will take effect for services on April 1, 2022 and end once fuel costs revert to pre-January 2022 levels. 2. This Amendment shall be effective on April 1, 2022. 3. 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. 4. 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 ALLIED UNIVERSAL SECURITY SERVICES By: By: [signature] [signature] Jimmy Forbis [employee name] [name] City Administrator [title/department] [title] Date: Date: DocuSign Envelope ID: 0FEE374E-8541-480C-9EE1-0B0450DBA870 Branch Manager 5/17/2022 Matthew Luther DocuSign Envelope ID: 0CAFFC71-C06D-4F34-B7B5-717F38F802F0 5/17/2022 8.5.a Packet Pg. 82 Attachment: First Alarm - First Amendment (3914 : Second Amendment to Agreement for Services with Allied Universal) -2- 4845-8215-5540v1 MDOLINGER\04706083 Approved as to Form ATTEST: City Attorney City Clerk DocuSign Envelope ID: 0FEE374E-8541-480C-9EE1-0B0450DBA870DocuSign Envelope ID: 0CAFFC71-C06D-4F34-B7B5-717F38F802F0 8.5.a Packet Pg. 83 Attachment: First Alarm - First Amendment (3914 : Second Amendment to Agreement for Services with Allied Universal) 8.5.b Packet Pg. 84 Attachment: First Alarm Security & Patrol - Park Patrol 2020 (3914 : Second Amendment to Agreement for Services with Allied Universal) 8.5.b Packet Pg. 85 Attachment: First Alarm Security & Patrol - Park Patrol 2020 (3914 : Second Amendment to Agreement for Services with Allied Universal) 8.5.b Packet Pg. 86 Attachment: First Alarm Security & Patrol - Park Patrol 2020 (3914 : Second Amendment to Agreement for Services with Allied Universal) 8.5.b Packet Pg. 87 Attachment: First Alarm Security & Patrol - Park Patrol 2020 (3914 : Second Amendment to Agreement for Services with Allied Universal) 8.5.b Packet Pg. 88 Attachment: First Alarm Security & Patrol - Park Patrol 2020 (3914 : Second Amendment to Agreement for Services with Allied Universal) 8.5.b Packet Pg. 89 Attachment: First Alarm Security & Patrol - Park Patrol 2020 (3914 : Second Amendment to Agreement for Services with Allied Universal) 8.5.b Packet Pg. 90 Attachment: First Alarm Security & Patrol - Park Patrol 2020 (3914 : Second Amendment to Agreement for Services with Allied Universal) 8.5.b Packet Pg. 91 Attachment: First Alarm Security & Patrol - Park Patrol 2020 (3914 : Second Amendment to Agreement for Services with Allied Universal) 8.5.b Packet Pg. 92 Attachment: First Alarm Security & Patrol - Park Patrol 2020 (3914 : Second Amendment to Agreement for Services with Allied Universal) 8.5.b Packet Pg. 93 Attachment: First Alarm Security & Patrol - Park Patrol 2020 (3914 : Second Amendment to Agreement for Services with Allied Universal) 8.5.b Packet Pg. 94 Attachment: First Alarm Security & Patrol - Park Patrol 2020 (3914 : Second Amendment to Agreement for Services with Allied Universal) 8.5.b Packet Pg. 95 Attachment: First Alarm Security & Patrol - Park Patrol 2020 (3914 : Second Amendment to Agreement for Services with Allied Universal) 8.5.b Packet Pg. 96 Attachment: First Alarm Security & Patrol - Park Patrol 2020 (3914 : Second Amendment to Agreement for Services with Allied Universal) 8.5.b Packet Pg. 97 Attachment: First Alarm Security & Patrol - Park Patrol 2020 (3914 : Second Amendment to Agreement for Services with Allied Universal) 8.5.b Packet Pg. 98 Attachment: First Alarm Security & Patrol - Park Patrol 2020 (3914 : Second Amendment to Agreement for Services with Allied Universal) 8.5.b Packet Pg. 99 Attachment: First Alarm Security & Patrol - Park Patrol 2020 (3914 : Second Amendment to Agreement for Services with Allied Universal) 8.5.b Packet Pg. 100 Attachment: First Alarm Security & Patrol - Park Patrol 2020 (3914 : Second Amendment to Agreement for Services with Allied Universal) 8.5.b Packet Pg. 101 Attachment: First Alarm Security & Patrol - Park Patrol 2020 (3914 : Second Amendment to Agreement for Services with Allied Universal) 8.5.b Packet Pg. 102 Attachment: First Alarm Security & Patrol - Park Patrol 2020 (3914 : Second Amendment to Agreement for Services with Allied Universal) 8.5.b Packet Pg. 103 Attachment: First Alarm Security & Patrol - Park Patrol 2020 (3914 : Second Amendment to Agreement for Services with Allied Universal) 8.5.b Packet Pg. 104 Attachment: First Alarm Security & Patrol - Park Patrol 2020 (3914 : Second Amendment to Agreement for Services with Allied Universal) 8.5.b Packet Pg. 105 Attachment: First Alarm Security & Patrol - Park Patrol 2020 (3914 : Second Amendment to Agreement for Services with Allied Universal) -1- 4845-8215-5540v1 MDOLINGER\04706083 SECOND AMENDMENT TO AGREEMENT FOR SERVICES WITH ALLIED UNIVERSAL FOR AFTER-HOURS PARK SECURITY PATROL SERVICES This Second Amendment to the Agreement for Services (“Second Amendment”) is made and entered into as of June 1, 2022 (“Effective Date”), by and between the City of Gilroy, a California municipal corporation (“CITY”), and Universal Protection Service LP dba Allied Universal (“CONTRACTOR”). WHEREAS, the City of Gilroy, a municipal corporation (“City”), and Allied Universal entered into that certain agreement entitled Agreement with Allied Universal for After-Hours Park Security Patrol Services effective on February 1, 2020 hereinafter referred to as “Original Agreement”; and WHEREAS, City and Allied Universal 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 February 1, 2020 and will continue in effect through January 31, 2025 unless terminated in accordance with the provisions of Article 7 in 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. 2. Article 4. COMPENSATION (Consideration) of the Original Agreement shall be amended to read as follows: 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 $471,680.00.” 3. Exhibit “B” of the Original Agreement shall be amended and replaced with the updated language (attached) 4. Exhibit “D” of the Original Agreement shall be amended and replaced with the updated Payment Schedule (attached) 5. This Amendment shall be effective on June 1, 2022. 6. 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. 7. 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. DocuSign Envelope ID: 238F2474-CE83-41E8-BA16-ED1D3C7DBDA4 8.5.c Packet Pg. 106 Attachment: Allied Second Amendment - Contractor Signed (3914 : Second Amendment to Agreement for Services with Allied Universal) -2- 4845-8215-5540v1 MDOLINGER\04706083 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 ALLIED UNIVERSAL By: By: [signature] [signature] Jimmy Forbis Matthew Luther [employee name] [name] City Administrator Branch Manager [title/department] [title] Date: Date: Approved as to Form ATTEST: City Attorney City Clerk DocuSign Envelope ID: 238F2474-CE83-41E8-BA16-ED1D3C7DBDA4 9/9/2022 8.5.c Packet Pg. 107 Attachment: Allied Second Amendment - Contractor Signed (3914 : Second Amendment to Agreement for Services with Allied Universal) EXHIBIT “B” SCOPE OF SERVICES – CITY OF GILROY PARK SECURITY PATROL Under direction of the Public Works Department and Police Department staff, security vendor shall provide after-hours park security patrol services for parks, trails and landscaped areas and other facilities that are closed. Park security patrol services shall include but not be limited to: • Securing gates, securing restrooms, securing pools, securing, and checking miscellaneous park and recreation facilities as needed. • Checking in with City Communications via phone by calling (408)-846-0350 at the beginning and end of their patrol shift. • Locking and unlocking gates at tennis courts or other gated facilities at the end of nightly patrol work shift, if requested. • Ejecting after-hours trespassers (sleepers and campers), ejecting unauthorized vehicles, and responding to calls for service for limited after hour special events and aiding park visitors with after hour permits. • Providing the City with nightly patrol reports (Daily Activity Report) that documents with text and photographs: patrol activities, vandalism, ejections, and other after-hours issues. • Visiting sites throughout Gilroy as deemed necessary by patrol staff or by direction of City Staff (see primary and secondary patrol sites on attached site tour list). • Documenting theft, attempted theft, break-ins, and arson. • Documenting any negative interaction with the public and contacting Gilroy Police for assistance if an uncooperative trespasser is encountered. • Using a clearly marked uniform and security vehicle (uniform and patrol services used shall be pre-approved by the Gilroy Police Department). DocuSign Envelope ID: 238F2474-CE83-41E8-BA16-ED1D3C7DBDA4 8.5.c Packet Pg. 108 Attachment: Allied Second Amendment - Contractor Signed (3914 : Second Amendment to Agreement for Services with Allied Universal) 8.5.c Packet Pg. 109 Attachment: Allied Second Amendment - Contractor Signed (3914 : Second Amendment to Agreement for Services with Allied Universal) 8.5.c Packet Pg. 110 Attachment: Allied Second Amendment - Contractor Signed (3914 : Second Amendment to Agreement for Services with Allied Universal) EXHIBIT “D” PAYMENT SCHEDULE – CITY OF GILROY PARK SECURITY PATROL • Regular Hourly Rate $29.00 (Regular Workday – 8 Hours) • Holiday Hourly Rate $43.50* • Special Project Overtime $43.50 *Refer to Holiday Calendar attachment for the City of Gilroy’s observed holidays PAYMENTS • Year 1 = $85,840 • Year 2 = $85,840 • Year 3 = $100,000 • Year 4 = $100,000 • Year 5 = $100,000 Revised Contract Total = $471,680 DocuSign Envelope ID: 238F2474-CE83-41E8-BA16-ED1D3C7DBDA4 8.5.c Packet Pg. 111 Attachment: Allied Second Amendment - Contractor Signed (3914 : Second Amendment to Agreement for Services with Allied Universal) The City of Gilroy will observe the following Holiday Schedule for 2022 2022 Holiday Calendar Day Date Holiday Observed/City Offices Closed Holiday Friday December 31, 2021 New Year’s Day (Observed) Monday January 17, 2022 Martin Luther King Jr. Day Monday February 21, 2022 Presidents’ Day Monday May 30, 2022 Memorial Day Monday July 4, 2022 Independence Day Monday September 5, 2022 Labor Day Friday November 11, 2022 Veteran’s Day Thursday November 24, 2022 Thanksgiving Friday November 25, 2022 Day after Thanksgiving Friday December 23, 2022 Christmas Eve (Closure Day) Monday December 26, 2022 Christmas Day (Observed) Monday January 2, 2023 New Year’s Day (Observed) DocuSign Envelope ID: 238F2474-CE83-41E8-BA16-ED1D3C7DBDA4 8.5.c Packet Pg. 112 Attachment: Allied Second Amendment - Contractor Signed (3914 : Second Amendment to Agreement for Services with Allied Universal) City of Gilroy STAFF REPORT Agenda Item Title: Receive Preliminary FY22 Year-End Financial Report and Adopt Resolution Authorizing Mid-Cycle Budget Adjustments and Updating Position Control List Meeting Date: September 19, 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 preliminary Fiscal Year 2022 (FY22) year-end report. 2. Approve $250,000 to be transferred to the Section 115 Pension Trust, pursuant to the Pension Funding Policy. 3. Adopt a resolution approving the updated Position Control List. 4. Adopt a resolution authorizing recommended mid-cycle budget adjustments. EXECUTIVE SUMMARY This report serves to inform the City Council and the community about the City’s Fiscal Year 2022 (FY22) preliminary year-end financial performance. The General Fund is the 12.1 Packet Pg. 113 primary focus of this report, as it is the primary funding source for essential City services. All the non-general funds’ information is presented in aggregate in the latter part of the report. BACKGROUND The City of Gilroy adopts two, one-year operational budgets through a biennial budget process. The FY22 and FY23 Budgets were adopted on June 7, 2021. On March 21, 2022, staff provided a FY22 mid-year budget update including an update to the General Fund forecast. This report serves to provide the preliminary FY22 year-end financial report, an update to the General Fund forecast, and the recommended mid-cycle adjustments. ANALYSIS General Fund Revenues For FY22, the General Fund revenues totaled $72.4 million, approximately $11.2 million better compared to the amended budget of $61.2 million due to the American Rescue Plan Act (ARPA) monies and higher than projected tax revenues. Excluding the one- time ARPA monies, the General Fund revenues were 11% better than budget, or about $6.4 million. The table below compares the FY22 budgeted General Fund revenues by category to the unaudited actuals. General Fund Revenues by Category FY22 Amended Budget FY22 Actuals (Unaudited)% of Budget Sales Tax 18.9$ 22.1$ 117% Property Tax 17.3 18.5 107% Utility User Tax 4.2 5.4 127% Franchise Tax 1.8 1.8 100% Transient Occupancy Tax 1.4 1.6 109% Business License 0.6 0.9 153% Other Revenues*17.0 22.2 130% Total 61.3$ 72.4$ 118% *Includes one-time ARPA Funds (In Millions) • Sales Tax – Sales tax is the General Fund’s primary source of revenue. For FY22, the City received $22.1 million in sales tax revenue, approximately 17%, or about $3.2 million higher than budgeted. The notable increases were in the 12.1 Packet Pg. 114 transportation segment which includes auto sales and service stations, followed by County pool, food product, and general retail segments. • Property Tax – For FY22, the City received $18.5 million in property tax revenue, approximately 7%, or about $1.2 million higher than budgeted. Much of this increase is attributable to the additional excess Educational Revenue Augmentation Fund (ERAF) funds received by the City than originally budgeted. A portion of annual property tax revenue collected by the County goes to the ERAF to support local school districts. When the amount contributed to ERAF is more than the minimum cost of funding local schools, the excess funds are returned to the county, cities, and special districts. • Utility Users Tax (UUT) – For FY22, the City received $5.4 million in UUT revenue, approximately 27%, or about $1.2 million better than budget. The notable increases were in energy-related utilities (gas and electric). • Transient Occupancy Tax (TOT) – For FY22, the City received $1.6 million in TOT revenue, approximately 9%, or about $0.2 million higher than budgeted. TOT was one of the hardest hit revenue sources during the pandemic. While TOT saw a notable increase in FY22, it has not returned to pre-pandemic levels. • Franchise Tax – For FY22, the City received $1.8 million in franchise tax revenue, which is consistent with what was budgeted. • Business License – For FY22, the City received $0.9 million in business license tax revenue, approximately $0.3 million higher than budgeted. • Other Revenues –This revenue category consists of departmental charges for services, general administration charges, fines and forfeitures, and intergovernmental revenues. For FY22, the City received $22.2 million in other revenues, primarily due to $10.3 million of ARPA funding, $3.5 million in development-related revenues from public works and community development, $3.1 million in general overhead charges, and the remainder from other departmental charges for services and intergovernmental grants or reimbursements. Expenditures For FY22, the General Fund expenditures were $55.9 million, approximately 2%, or about $1.1 million under budget. The table below compares the budgeted General Fund expenditures by Departments to the unaudited actuals. 12.1 Packet Pg. 115 General Fund Expenditures by Department/Function FY22 Amended Budget FY22 Actuals (Unaudited) % of Budget Administration 2.2$ 2.2$ 100% Recreation Transfer 1.5 1.5 100% Finance 1.0 0.8 86% Human Resources 1.3 1.5 114% Police 24.1 23.8 99% Fire 12.2 12.9 106% Public Works 7.3 5.3 72% Community Development 4.7 4.4 92% Central Services 1.8 2.6 149% Other General Government 0.9 0.8 94% Total 57.0$ 55.9$ 98% (In Millions) Non-General Funds Revenues The City has approximately 90 non-general funds. The information (revenues and expenditures) for these funds is presented in aggregate by fund type. For FY22, in aggregate, the City received $73.1 million in Non-General Fund revenues, approximately $3.6 million less than budgeted. The table below compares the budgeted Non-General Fund revenues by Fund Type to the unaudited actuals. Non-General Fund Revenues by Fund Type FY22 Amended Budget FY22 Actuals (Unaudited)% of Budget Special Revenues 7.1$ 6.5$ 92% Recreation 2.0 2.0 100% Capital/Development 19.1 19.1 100% Debt Service 5.3 5.3 100% Internal Service 14.0 12.8 92% Sewer*13.8 13.5 98% Water 14.5 13.0 90% Agency 0.9 0.9 100% Total 76.7$ 73.1$ 95% *Excludes Sewer Bond Proceeds (In Millions) • Special Revenues – The primary source of this fund type is intergovernmental funds in the manner of tax sharing or grants from Federal, State, County, and 12.1 Packet Pg. 116 other regional governments. For the City of Gilroy, these Special Revenues primarily provide funding for transportation (Gas Taxes, Vehicle Registration, and Measure B), public safety (Proposition 172 sales tax, Gang Prevention, and regional task forces), and community development (CDBG and Housing). For FY22, The City received $6.5 million in special revenues, approximately 8%, or about $0.6 million less than budgeted notably due to decreased Measure B funds received in FY22. • Recreation – As part of the General Fund Financial Recovery Plan adopted in 2020, the Recreation Division the General Fund contribution to the fund was set at $1.5 million annually. For FY22, the Recreation Fund generated approximately $0.5 million in user fees, and the General Fund contributed $1.5 million as adopted. • Capital/Development Impact Funds – The revenues in these funds are collected as a result of new development approval and the required contributions to various impact funds (public facilities, water, sewer, traffic, trees, and storm drain) to offset infrastructure impacts. For FY22, the City received $19.1 million in capital/development impact funds, consistent with the budgeted amount. However, within this fund type, Public Facilities Impact Fund revenues were $1.9 million higher than budgeted, which was offset by lower than budgeted revenues in the Traffic Impact, Sewer and Storm Drain Development Funds. • Internal Service Funds (ISFs) – The City’s internal services funds (IT, Fleet, Facilities, Fringe Benefits, Worker’s Compensation, and Liability Funds) primarily receive their revenue from charges to other departments and funds in the City. For FY22, the internal services received $12.8 million in revenues, approximately 8%, or about $1.2 million less than budgeted. This is primarily due to the decreased fleet service charges to departments in FY22 as the supply chain constraints impacted the procurement of new replacement vehicles in the market. • Debt Service – The revenues in these funds are from various sources, including special tax assessments as well as special revenue funds of the City. These funds are utilized to account for the annual debt service of the City’s outstanding general obligation debt. During FY22, this fund type received the full budgeted $5.3 million amount necessary to make the annual debt service payments. • Sewer – For FY22, the City generated $13.5 million in the Sewer Fund revenues, approximately $0.3 million, or 2%, less than budgeted. • Water – For FY22, the City generated $13.0 million in Water Fund revenues, approximately $1.5 million, or 10%, less than budgeted. The notable decrease is due to the water conservation mandated by the State and the declaration of water supply shortage conditions within the City during FY22 in response to the drought. 12.1 Packet Pg. 117 Expenditures The table below compares the Non-General Fund Expenditures by Fund Type for FY22 amended budget and unaudited actuals. For FY22, in aggregate, the non-general fund expenditures were $68.7 million, approximately $58.4 million, or 46%, less than appropriated budget. Non-General Fund Expenditures by Fund Type FY22 Amended Budget FY22 Actuals (Unaudited) % of Budget Special Revenues 10.9$ 4.2$ 39% Recreation 2.1 1.5 73% Capital/Development 25.4 8.0 32% Debt Service 5.1 5.1 100% Internal Service 20.7 13.2 64% Sewer 43.6 23.9 55% Water 18.4 11.7 64% Agency 0.9 0.9 100% Total 127.0$ 68.7$ 54% (In Millions) • Special Revenues – For FY22, the City expended $4.2 million, or 39%, of the $10.9 million in special revenue appropriations. The primary category of expenditures for special revenue funds is capital outlay (Gas Taxes, Measure B, Vehicle Registration, and SB1). The City Council adopted the current Capital Improvement Program (FY21 through FY25) in November 2020. Due to the complex nature of capital projects, the lead time to develop, design, bid and subsequently award can take many months and can span over fiscal years. During FY22, Council awarded key capital projects such as the FY22 Citywide pavement Maintenance and the 7th and Eigleberry Parking Lot. • Recreation –For FY22, the Recreation Fund expended $1.5 million, approximately $0.6 million, or 27%, less than the appropriated budget. During the restructuring of the Recreation Division few years ago, it was recommended, and Council concurred, the facilities charges historically assessed to the Recreation Fund should transition over to the General Fund as facilities would be maintained regardless of if and when the recreation programs would resume post -pandemic and the reduced General Fund contribution of $1.5 million should be allocated to provide direct recreation related programs and services. • Capital/Development Impact Funds – For FY22, the City expended $8.0 million, or 32%, of the $25.4 million appropriations in the Capital/Development Impact Funds. The underspending was primarily in the areas of contractual services and capital outlay within the Traffic Impact and the Water Impact programs. 12.1 Packet Pg. 118 • Internal Service Funds (ISFs) – For FY22, the City expended $13.2 million, or 61%, of the $20.7 million appropriations in the Internal Service Funds. The underspending was primarily in the capital outlay expenditures in the Fleet Services, Information Technology, and Equipment Outlay funds. • Debt Service – For FY22, this fund type expended the full budgeted amount to make the annual debt payments for the outstanding loan, and the general obligation and lease revenue bonds. • Sewer Enterprise – For FY22, the Sewer Fund expended $23.9 million, or 55%, of the $43.6 million appropriations. The underspending was primarily in the areas of capital outlay related to the Plant Expansion Project that’s underway. Excluding capital outlay, the fund expended $8.7 million, or about 91% of the budget on annual ongoing operations. • Water Enterprise – For FY22, the Water Fund expended $11.7 million, or 64%, of the $18.4 million appropriations. The underspending was primarily in the areas of contractual payments to the Water District for water extraction fees, and capital outlay. Excluding capital outlay, the fund expended $11.4 million or about 83% of the budget on annual ongoing operations. Mid-Cycle Budget Adjustments Staff is recommending adjustments to revenues and expenditures in various funds as part of this mid-cycle report. These adjustments are included as Exhibit A to the attached budget amendment resolution and discussed below. Revenues: $7.0 million • Sales Tax – The economy saw a robust rebound over the last year as State and County mandates were retracted. For FY23, the sales tax is now projected to come in $2.0 million better than the adopted budget of $20.6 million. • Property Tax – Based on the County’s latest projections, City’s property tax assessment roll for FY23 is expected to see an increase of 6% from prior year. For FY23, the property tax is now projected to come in $2.3 million bet ter than the adopted budget of $16.9 million. • Utility User Tax – FY22 saw significant increase in energy related utilities. For FY23, the utility user tax is now projected to come in $1.2 million better than the adopted budget of $4.3 million. • Business License – For FY23, business license is now projected to come in 0.2 million higher than the adopted budget of $0.5 million. • Other Revenues – For FY23, the other revenues category is recommended to be adjusted by $1.4 million as a result of projected increases in charges for services and permits as a result of the recent adjustments to user fees, and other increases in grant revenues. 12.1 Packet Pg. 119 Expenditures: $3.3 million Personnel: • Position Restorations o Recreation Coordinator to Recreation Supervisor – Given the growth of recreation programming and the hiring of additional part-time staff to support recreation, it is appropriate to restore a Recreation Supervisor position. This restoration will occur by upgrading an existing Recreation Coordinator position to a Recreation Supervisor position. Human Resources will coordinate the internal promotion process. – The cost will be absorbed within existing appropriations. o Maintenance Worker II to Senior Maintenance Worker (2 Positions) – Based on the needs of both the Parks & Landscape Section and the Streets/Wastewater/Trees Section of Public Works Operations, this change will restore a Senior Maintenance Worker position in each Section. The restorations will occur by upgrading an existing Maintenance Worker I/II position in each Section to a Senior Maintenance Worker position. Human Resources will coordinate the internal promotion process. – The cost will be absorbed within existing appropriations. o Detention Service Officer - This position was unfunded in 2020 as part of the General Fund Recovery Plan. The position was responsible for providing general assistance to the operations and support services divisions. Duties included maintaining detention facility and booking, fingerprinting, and transporting arrestees to the jail. Currently this task is being performed by a patrol officer, taking them away from providing services out in the community. – The cost will be absorbed within existing appropriations. • Reclassifications o Senior Management Analyst to an Assistant to the City Administrator – After review of the work being performed by the Senior Management Analyst in City Administration, this employee is performing work at a higher level. This employee works closely with the Senior Executive Team, City Administrator, City Clerk and City Council on very high-level projects. As a result of this work audit, it is recommended that this position be reclassified to the position of Assistant to the City Administrator. Placeholder funding is being included in the FY 23 budget update so that this reclassification can be vetted further and submitted to the Personnel Commission for consideration. - $20,000 • New Positions o Network Administrator – Currently, the Information Technology Division is staffed with a part-time Network Administrator at 25 hours per week. While 12.1 Packet Pg. 120 a part-time position provides some support, it is not enough support to match the network administration workload. Increasing the Network Administrator position to full-time will provide much needed additional capacity for the Division. In addition, hiring and retaining a part-time Network Administrator is challenging as most strong candidates/ employees want a full-time position. Funds are budgeted for the part-time position; therefore, the only new cost is for the a dditional salary and benefits. - $150,000 o Accounting Assistant I/II – In August 2021, the City Hall was re-opened to the public for in-person services after the pandemic related shut-down. As part of this re-opening, a customer service “concierge” station at the City Hall was commissioned as a pilot, staffed on rotation by various departments within the City Hall. The service has been viewed as highly successful, and thus staff recommends that the service be provided by a consistent employee. As the majority of the customers visiting the City Hall are seeking services in the Finance Department , it is recommended the desk be staffed by an Accounting Assistant I/II classification which can backfill other similar positions in the department and provide rotati onal flexibility at the desk. - $86,000 o Management Analyst (Grants) – As part of the FY22 and FY23 strategic planning process Council identified Grant Writing as one of its 16 legislative items. Over the last year, the City has engaged professional grant writing services and successfully received grant awards from various County, State and Federal agencies. As many successes have been realized on grant awards, staff recommends adding a new Management Analyst position to further this initiative. The position will also assist with other special projects in the City Administrator’s office. The grant funds/revenue that will be secured through the efforts of this position will more than offset the cost of the position. - $145,000 • Overtime Budget – increase to the overtime budget is requested for the Fire Department. Fire Department’s overtime budget is not adequate to cover the normal time off and other core department functions. Some of the current fire overtime is due to staffing the temporary fire station and ensuring adequate staffing levels until vacant positions are filled, however, this overtime is primarily covered by salary savings. - $500,000 • Contribution to Section 115 Trust – Pursuant to the Pension Funding Policy adopted earlier this year. The policy requires the City to annually prepay the unfunded accrued liability (UAL) payment at the beginning of the fiscal year, and to divert the interest savings to the Section 115 Trust. The interest savings from the FY23 UAL prepayment was $273,000 and have been deposited into the Section 115 Trust. In addition, the policy calls for an allocation, up to 25%, to be made from annual year-end savings from the General Fund expenditures. As such, staff is recommending an allocation of $250,000 be made from the 12.1 Packet Pg. 121 approximately $1 million savings in the FY22 General Fund expenditures. - $250,000 Materials and Services: • Administration – Increase is requested for: o Professional membership costs and contractual services - $102,000 o November 2022 general election including the ballot measure - $63,000 o Training and professional development for new hires - $5,000 • Administrative Services – Increase is requested for: o Recruitment related expenses - $50,000 o Energy costs (fuel and natural gas) - $323,000 o General liability premiums for FY23 - $300,000 o Repairs and maintenance projects at various facilities, a carryover from FY22 - $205,000 o Information technology equipment and software systems, a carryover from FY22 - $222,000 • Community Development – Increase is requested for: o Contractual services related to the Housing Element - $100,000 • Finance – increase is requested for: o Contractual services for audit-related services - $33,000 Capital Outlay: • Administrative Services – Increase is requested for: o Vehicle procurement, carryover from FY22 - $723,000 General Fund Forecast The chart below is an updated General Fund Forecast, which incorporates FY22 preliminary year-end actuals, roll forward encumbrances, year-to-date budget amendments for FY23, and the recommended mid-cycle adjustments noted above. The Council recently approved various labor contracts which are also incorporated through their respective terms in the forecast. Overall, excluding ARPA monies, the General Fund ended FY22 with a net operating margin of $6.2 million mostly attributable to higher than projected tax revenues. The one-time ARPA monies, coupled with the robust growth in the economy, has stabilized the City’s fiscal health, as evidenced in the forecast below. FY23 is projected to have an operating margin of $3.3 million. Staff recommends that these funds be retained for 12.1 Packet Pg. 122 future recessionary impacts to the economy or future allocation to one -time investments. Actual YEP Amended Forecast Forecast Forecast Forecast Forecast General Fund Forecast (In Millions)FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 Beginning Fund Balance 13.9$ 18.6$ 24.8$ 28.1$ 29.3$ 29.4$ 29.5$ 29.7$ Add: Revenues 55.9 62.1 63.0 62.5 64.0 65.8 67.8 69.7 Less: Expenditures (51.2) (55.9) (59.7) (61.3) (63.9) (65.7) (67.6) (69.4) Operating Margin*4.7 6.2 3.3 1.2 0.1 0.1 0.2 0.3 Ending Fund Balance 18.6$ 24.8$ 28.1$ 29.3$ 29.4$ 29.5$ 29.7$ 30.0$ One-time Contribution (ARPA)10.3 0.6 One-time Expenditures (ARPA)(3.9) Ending Fund Balance (with ARPA)*18.6$ 35.1$ 35.1$ 36.3$ 36.4$ 36.5$ 36.7$ 37.0$ Minimum Fund Balance Required 30%30%30%30%30%30%30%30% Fund Balance as a % 36%44%47%48%46%45%44%43% Fund Balance as a % (with ARPA)36%63%55%59%57%56%54%53% Positions added back beginning FY22 utilizing the ARPA funds are an ongoing operational expenditure thus are not reflected in the one-time expenditure line item for ARPA above There continues to be cause for concern due to ongoing developments in the economy and around the world. The increase in inflation continues to be a primary cause of concern, which hit a 40-year high. For much of 2022, the core Consumer Price Index (CPI), which measures the changes in the price of goods and services, excluding food and energy, has continually come in at or above 6% from a year earlier. Furthermore, there is an expected recessionary impact on the economy from the federal reserve’s tightening monetary policy by hiking the interest rates. While staff has made related adjustments to the forecast, the duration of the higher inflation and monetary policy may have additional impacts and require further adjustments. The volatility in the broader markets has also impacted CalPERS, which has a direct impact on future pension- related costs. For FY22, CalPERS announced preliminary net investment returns of negative 6.1%. This essentially wiped out the strong FY21 investment returns which were expected to significantly reduce the outstanding unfunded accrued liability and related payments. Staff has modeled the impact of the negative FY22 returns and adjusted the respective forecast years for when the impact will occur. Staff continues to forecast conservatively and monitor the economic conditions. Over the last several years the Council has taken bold and strategic actions to utilize fund balance to address various needs of the City . This includes establishment of a section 115 pension trust, adoption of a pension funding policy, focus on economic development, and investments in City’s infrastructure as it relates to technology, streets, and public safety facilities and equipment. There continues to be a need to invest additional resources in infrastructure planning and development. As we approach the next biennial budget development, the same vision and strategic planning should be practiced utilizing the fund balance on one-time investments. Resolutions Attached to this report are two resolutions for Council consideration and adoption. One for the updated Position Control list, and another for the budget adjustments. 12.1 Packet Pg. 123 ALTERNATIVES There are no recommended alternatives to the preliminary FY22 year-end report. City Council could elect to not approve any single, multiple, or all the mid-cycle adjustments to the expenditures. Staff does not recommend this option. FISCAL IMPACT/FUNDING SOURCE The fiscal impact of the preliminary FY22 year-end financial activity has been outlined above in the report. As noted, the General Fund ended the year with better than expected revenues due to acceleration of the economic recovery and the one-time ARPA monies. The mid-cycle adjustments recommended total $7.0 million for revenues and $3.4 million for expenditures. Attachments: 1. Draft Budget Amendment Resolution - FY23 Mid-Cycle Adjustments 2. Draft Resolution - Position Control FY23 Amended 12.1 Packet Pg. 124 RESOLUTION NO. 2022-XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY AMENDING THE BUDGET FOR THE CITY OF GILROY FOR 2022-2023 AND APPROPRIATING PROPOSED EXPENDITURE AMENDMENTS WHEREAS, the City Administrator prepared and submitted to the City Council a budget for the City of Gilroy for Fiscal Years 2021-2022 and 2022-2023, and the City Council carefully examined, considered, and adopted the same on June 7, 2021; and WHEREAS, City Staff has prepared and submitted to the City Council proposed amendments to said budget for Fiscal Year 2022-2023 for the City of Gilroy in the staff report dated September 15, 2022, for Preliminary Fiscal Year 2021-2022 year-end report and mid-cycle adjustments for Fiscal Year 2022-2023. NOW, THEREFORE, BE IT RESOLVED THAT the appropriations for Fiscal Year 2022-2023 shall be increased in respective funds as outlined in Exhibit A to this resolution. PASSED AND ADOPTED this 19th day of September 2022 by the following roll call vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: APPROVED: Marie Blankley, Mayor ATTEST: _______________________ Thai Nam Pham, City Clerk 12.1.a Packet Pg. 125 Attachment: Draft Budget Amendment Resolution - FY23 Mid-Cycle Adjustments (3958 : FY22 Preliminary Financial Report and Mid-cycle EXHIBIT A FY23 Adjustments: Revenues #Fund Category Increase Amount 1 General Fund Sales Tax 1,989,000$ 2 General Fund Property Tax 2,266,000 3 General Fund Utility User Tax 1,172,000 4 General Fund Business License 124,000 5 General Fund Other Revenues: Charges for services, grants, and permits1,443,000 6,994,000$ 12.1.a Packet Pg. 126 Attachment: Draft Budget Amendment Resolution - FY23 Mid-Cycle Adjustments (3958 : FY22 Preliminary FY23 Adjustments: Expenditures #Fund Department Category Description Increase Amount 1 General Fund Administration Personnel Management Analyst - Grants Administration 145,000$ 2 General Fund Administration Personnel Reclass Senior Management Analyst to Assistant to the City Administrator 20,000 3 General Fund Administration Materials and Services Increase to Professional Memberships and Contractual Services 102,000 4 General Fund Administration Materials and Services November 2022 General Election 63,000 5 General Fund Administration Materials and Services Training and professional development 5,000 7 General Fund Administrative Services Materials and Services Increase in recruitment expenses 50,000 8 General Fund Community Development Materials and Services Contractual Services - Housing Element 100,000 9 General Fund Finance Materials and Services Contractual Services - Increase related to audit services 33,000 10 General Fund Finance Personnel Accounting Assistant I/II - City Hall Concierge Desk 26,000 11 General Fund Fire Personnel Increase to overtime 500,000 12 General Fund Police Personnel Restore Detention Service Officer position Absorb in existing Budget 14 General Fund Public Works Personnel Restore two Maintenance Worker II to Senior Maintenance Workers position Absorb in existing Budget 15 General Fund Non-Departmental Personnel Pension Trust Contribution 250,000 16 Recreation Administration Personnel Restore Recreation Coordinator to Recreation Supervisor Absorb in existing Budget 17 Fleet Services Administrative Services Materials and Services Increase to fuel and oil products 273,000 18 Fleet Services Administrative Services Capital Outlay Vehicle purchases (reappropriation from FY22)723,000 19 Liability Insurance Administrative Services Materials and Services Increase in general liability premiums for FY23 300,000 20 Facility Services Administrative Services Materials and Services Repairs and maintenance (reappropriation from FY22)205,000 21 Facility Services Administrative Services Materials and Services Increase in natural gas costs 50,000 22 Information Technology Administrative Services Personnel Network Administrator 150,000 23 Information Technology Administrative Services Materials and Services Cybersecurity equipment and software 200,000 24 Information Technology Administrative Services Materials and Services Email and social media archiving system 22,000 25 Sewer Finance Personnel Accounting Assistant I/II - City Hall Concierge Desk 30,000 26 Water Finance Personnel Accounting Assistant I/II - City Hall Concierge Desk 30,000 3,277,000$ 12.1.a Packet Pg. 127 Attachment: Draft Budget Amendment Resolution - FY23 Mid-Cycle Adjustments (3958 : FY22 Preliminary RESOLUTION NO. 2022-XX RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY AMENDING THE AUTHORIZED POSITION CONTROL LIST FOR THE CITY OF GILROY FOR FISCAL YEARS 2021-2022 AND 2022-2023 WHEREAS, the business operations of the City of Gilroy are conducted by hired professional staff; and WHEREAS, the City of Gilroy is committed to delivering services to our residents; and WHEREAS, the delivery of services is effectuated by providing adequate and appropriate staffing levels to carry out the business of the City. NOW, THEREFORE, BE IT RESOLVED that the number and classifications of both regular and limited-term full-time positions in which persons may be employed by the City of Gilroy during Fiscal Year 2021-2022 and Fiscal Year 2022-2023 are hereby Amended and shall be as set forth in the attached position control list, incorporated herein by reference. BE IT FURTHER RESOLVED that a change in the position control list shall only be accomplished by resolution of the City Council of the City of Gilroy. PASSED AND ADOPTED at a Regular Meeting of the City Council this 19th day of September 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 12.1.b Packet Pg. 128 Attachment: Draft Resolution - Position Control FY23 Amended (3958 : FY22 Preliminary Financial Report and Mid-cycle adjustments) Resolution No. 2022-XX Position Control List City Council Regular Meeting | September 19, 2022 Page 2 of 5 POSITION CONTROL LIST Below is the table showing the authorized full-time positions by department. As of September 19, 2022 DEPARTMENT AMENDED FY22 AMENDED FY23 ADMINISTRATION 14 15 Assistant to the City Administrator 0 1 City Administrator 1 1 City Clerk 1 1 Community Coordinator 1 1 Community Engagement Manager 1 1 Deputy City Administrator 0 0 Deputy City Clerk 1 1 Economic Development Manager 0 0 Emergency Services & Volunteer Coordinator 1 1 HCD Technician 1 1 Housing and Grants Manager 0 0 Management Analyst 1 2 Management Assistant 0 0 Office Assistant I/II 0 0 Program Administrator 1 1 Recreation Coordinator 2 1 Recreation Director 0 0 Recreation Manager 1 1 Recreation Specialist 0 0 Recreation Supervisor 0 1 Senior Management Analyst 2 1 ADMINISTRATIVE SERVICES 18 19 Administrative Services & Human Resources Director/Risk Manager 1 1 Custodian 0 0 Equipment Mechanic 2 2 Facilities Maintenance Specialist 3 3 12.1.b Packet Pg. 129 Attachment: Draft Resolution - Position Control FY23 Amended (3958 : FY22 Preliminary Financial Report and Mid-cycle adjustments) Resolution No. 2022-XX Position Control List City Council Regular Meeting | September 19, 2022 Page 3 of 5 Facilities Superintendent 1 1 Fleet Superintendent 1 1 Human Resources Analyst 1 1 Human Resources Assistant I\II 0 0 Human Resources Technician I 1 1 IT Applications Analyst 1 1 IT Director 0 0 IT Manager 1 1 IT Technician I/II 1 1 Management Assistant 1 1 Network Administrator 0 1 Public Safety Systems Administrator 1 1 Senior Custodian 1 1 Senior Equipment Mechanic 1 1 Senior Human Resources Analyst 1 1 COMMUNITY DEVELOPMENT 23 23 Building Inspector I/II 3 3 Building Official 1 1 Code Enforcement Officer 2 2 Community Development Director 1 1 Customer Service Manager 1 1 Deputy Director of Community Development 0 0 Deputy Fire Marshal/Haz Mat Supervisor 1 1 Fire Marshal 0 0 GIS Coordinator/Planner 1 1 Hazardous Materials Inspector I/II 3 3 Management Analyst 1 1 Management Assistant 1 1 Office Assistant I/II 1 1 Permit Technician 2 2 Planner I/II 2 2 Planner I/II (Limited Term - Three Years) 0 0 Planning Division Manager 0 0 Planning Technician 1 1 Senior Planner 2 2 12.1.b Packet Pg. 130 Attachment: Draft Resolution - Position Control FY23 Amended (3958 : FY22 Preliminary Financial Report and Mid-cycle adjustments) Resolution No. 2022-XX Position Control List City Council Regular Meeting | September 19, 2022 Page 4 of 5 FINANCE 13 14 Accountant II 1 1 Accounting Assistant I/II 6 7 Accounting Technician - Payroll 1 1 Accounting Technician I/II 1 1 Budget/Finance Analyst 1 1 Finance Director 1 1 Finance Manager 2 2 Revenue Officer 0 0 FIRE 44 44 Fire Administration Technician 1 1 Fire Captain 10 10 Fire Chief 1 1 Fire Division Chief 3 3 Fire Engineer 9 9 Firefighter I/II 19 19 Management Analyst 1 1 Management Assistant 0 0 POLICE 101 102 Community Services Officer 4 4 Crime Analysis/Records/Property and Evidence Manager 0 0 Police Crime Analyst 1 1 Detention Services Officer 3 4 Management Analyst 1 1 Management Assistant 1 1 Multi-Service Officer 1 1 Office Assistant I/II 1 1 Police Captain 3 3 Police Chief 1 1 Police Corporal 8 8 Police Officer 44 44 Police Records Technician I/II 6 6 Police Sergeant 11 11 Property and Evidence Technician 1 1 12.1.b Packet Pg. 131 Attachment: Draft Resolution - Position Control FY23 Amended (3958 : FY22 Preliminary Financial Report and Mid-cycle adjustments) Resolution No. 2022-XX Position Control List City Council Regular Meeting | September 19, 2022 Page 5 of 5 Public Safety Communications Supervisor 1 1 Public Safety Communicator 12 12 Senior Police Records Technician 0 0 Police Records Supervisor 1 1 Youth Task Force Coordinator 1 1 PUBLIC WORKS 49 49 City Engineer/Transportation Engineer 1 1 Deputy Director of Public Works 1 1 Engineer I/II 5 5 Engineer I/II (Limited Term - Three Years) 0 0 Engineering Technician/Inspector I/II/III 2 2 Maintenance Worker I/II 27 25 Management Analyst 2 2 Management Assistant 1 1 Operations Services Supervisor 3 3 Public Works Director 1 1 Senior Civil Engineer 2 2 Senior Environmental Engineer 1 1 Senior Management Analyst 0 0 Senior Maintenance Worker 3 5 CITYWIDE FULL-TIME PERSONNEL 262 266 12.1.b Packet Pg. 132 Attachment: Draft Resolution - Position Control FY23 Amended (3958 : FY22 Preliminary Financial Report and Mid-cycle adjustments) City of Gilroy STAFF REPORT Agenda Item Title: Consideration of Adding Cesar Chavez Day (March 31) as a City of Gilroy Observed Holiday Meeting Date: September 19, 2022 From: Jimmy Forbis, City Administrator Department: Human Resources Department Submitted By: LeeAnn McPhillips, Administrative Services/HR Director/Risk Manager Prepared By: LeeAnn McPhillips, Administrative Services/HR Director/Risk Manager 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 Review information and options and provide staff direction. POLICY DISCUSSION The policy question for City Council consideration is whether or not the City of Gilroy should add Cesar Chavez Day (March 31st) as an observed holiday wherein City offices are closed to the public. Given that City offices are closed to the pu blic on observed holidays and other impacts, adding holidays is a policy decision for the Council to determine. 12.2 Packet Pg. 133 BACKGROUND During the recent labor negotiations process, the topic of adding holidays was raised by two labor groups, AFSCME and GMA. The grou ps requested consideration of adding Cesar Chavez Day and Juneteenth as additional observed holidays. Most employees in these labor groups would have a paid day off if these additional holidays are added to the City of Gilroy’s observed holiday list. At the Council meeting of August 15, 2022, the Council unanimously approved a council-initiated item to conduct a future Council discussion on the topic of adding Cesar Chavez Day as an additional observed City of Gilroy holiday. Cesar Chavez Day is a federal commemorative holiday and an observed holiday for the State of California since the year 2000, celebrated to honor the enduring legacy of the American labor rights hero. Cesar Eduardo Chavez was born on March 31, 1927 , to a Mexican American family in Yuma, Arizona. He spent his early years on a farm where his mother worked as a part-time laborer. In the late 1930s as a result of the Great Depression, Chavez and his family moved to California in search of a better livelihood. Chavez spent most of his adult years fighting for workers’ rights. In 1962, Chavez, along with Dolores Huerta, established the National Farm Workers Association. Chavez passed away in 1993 and later that year he was posthumously awarded the Presidential Medal of Freedom by President Clinton. Cesar Chavez Day was initiated by former President Obama in 2014 and on March 31 of each year community leaders come together to celebrate the life of this American icon and take inspiration from his four decades of selfless service to the workers of the United States. ANALYSIS Staff gathered data from our comparison agencies regarding observed holidays for Council to review. As can be seen by the below data chart, four of the twelve comparison agencies observe Cesar Chavez Day. The average number of holidays provided by the comparative agencies is 14 (13.875) and is a combination of observed holidays and floating holidays. The average number of observed holidays is 12 (11.67). Gilroy falls below both averages. 12.2 Packet Pg. 134 Agency Name # of Observed Holidays (City Offices Closed) # of Floating Holidays (City Offices open; employees take time on an approved date of choice) Cesar Chavez Day Observed or Floating? Total # of Holidays Gilroy 10 2 (in form of personal leave hours – Lincoln’s Birthday & Admissions Day) No 12 Campbell 9.5 5 No 14.5 Dublin 12 2 No 14 Hollister 11.5 2 No 13.5 Milpitas 12 1 Yes 13 Morgan Hill 12 2 (Lincoln’s Birthday & Veteran’s Day) Yes 14 Newark 11 2 No 13 Pacifica 11 2 No 13 San Bruno 11 3.5 No 14.5 Santa Cruz 11 3 (24 hours) No 14 Seaside 13 Up to 2 – varies by bargaining unit Yes 15 South San Francisco 13 (12 full day plus 2 half day) 1 No 14 Watsonville 13 1 (Lincoln’s Birthday) Yes 14 An additional consideration regarding the addition of observed holidays is equity to employees who hold positions that operate 24/7 and who are not able to observe holidays, but rather receive holiday pay. In lieu of observed holidays, employees in the police and fire departments receive holiday pay. Per the current labor agreements, holiday pay is paid as a % of base salary as follows: GPOA – 6.37% IAFF, Local 2805 – 6.6% AFSMCE – 6% (classifications of Public Safety Communicator and Police Records Technician only) While there is no obligation to do so, it would be equitable to propo rtionately increase the amount of holiday pay provided to employees who must work on holidays if additional observed holidays will be granted to non-safety employees. ALTERNATIVES Given the impact on the provision of city services, the City Council may consider adding additional observed holidays or not. 12.2 Packet Pg. 135 FISCAL IMPACT/FUNDING SOURCE Employees work 2080 hours in a fiscal year. The value of providing eight hours of holiday time off is .00385 or less than a ½ percent. While there is no additional hard cost as the non-safety employee is paid the same salary, the time off has value as the employee is not working. However, if the amount of holiday pay for safety employees is increased, there will be an additional cost of approximately $130,000 annually if holiday pay is proportionately increased. CONCLUSION The addition of additional observed holidays is at the Council’s discretion. NEXT STEPS If the Council decides to move forward with adding an additional observed holiday, then staff will meet with Council in closed session to discuss impacts on City of Gilroy labor groups and to receive direction for discussions with labor. Following the conclusion of those discussions and outcomes, staff would return to Council with a resolution to add the additional observed holiday to the City of Gilroy observed holiday list. 12.2 Packet Pg. 136