02/27/2023 Joint City Council & Gilroy Public Facilities Financing Authority Regular Meeting Agenda Packet (01 - Final)February 27, 2023 | 6:00 PM Page 1 of 8 City Council
Regular Meeting Agenda
CITY COUNCIL & GILROY PUBLIC FACILITIES
FINANCING AUTHORITY
REGULAR MEETING
AGENDA PACKET
MONDAY, FEBRUARY 27, 2023 | 6:00 PM
CITY COUNCIL CHAMBERS, CITY HALL
7351 ROSANNA STREET, GILROY, CA 95020
MAYOR / CHAIR
Marie Blankley
COUNCIL MEMBERS / DIRECTORS
Rebeca Armendariz
Dion Bracco
Tom Cline
Zach Hilton
Carol Marques
Fred Tovar
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 www.cityofgilroy.org for any updates to
meeting information.
COMMENTS BY THE PUBLIC WILL BE TAKEN ON AGENDA ITEMS BEFORE ACTION IS TAKEN BY THE CITY
COUNCIL. Public testimony is subject to reasonable regulations, including but not limited to time restrictions for
each individual speaker. Please limit your comments to 3 minutes. The amount of time allowed per speaker may
vary at the Mayor’s discretion depending on the number of speakers and length of the agenda.
Written comments on any agenda item may be emailed to the City Clerk’s Office at cityclerk@cityofgilroy.org or
mailed to the Gilroy City Clerk’s Office at City Hall, 7351 Rosanna Street, Gilroy, CA 95020. Comments received by
the City Clerk’s Office by 1 p.m. on the day of a Council meeting will be distributed to the City Council prior to or at
the meeting and available for public inspection with the agenda packet located in the lobby of Administration at
City Hall, 7351 Rosanna Street prior to the meeting. Any correspondence received will be incorporated into the
meeting record. Items received after the 1 p.m. deadline will be provided to the City Council as soon as
practicable. Written comments are also available on the City’s Public Records Portal at bit.ly/3NuS1IN.
City Council
Regular Meeting Agenda Page 2 of 8 February 27, 2023 | 6:00 PM
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 review of any final administrative determination reached at this meeting is governed
by Section 1094.6 of the California Code of Civil Procedure.
A Closed Session may be called during this meeting pursuant to Government Code Section 54956.9 (d)(2) if a point
has been reached where, in the opinion of the legislative body of the City on the advice of its legal counsel, based
on existing facts and circumstances, there is a 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.
To access written translation during the meeting, please scan the QR Code or
click this link:
Para acceder a la traducción durante la reunión, por favor escanee el código QR
o haga clic en el enlace:
bit.ly/3FBiGA0
Choose Language and Click Attend | Seleccione su lenguaje y haga clic en asistir
Use a headset on your phone for audio or read the transcript on your device.
Use sus auriculares para escuchar el audio o leer la transcripción en el
dispositivo.
The agenda for this regular meeting is as follows:
City Council
Regular Meeting Agenda Page 3 of 8 February 27, 2023 | 6:00 PM
1. OPENING (CITY COUNCIL)
1.1. Call to Order
1.2. Pledge of Allegiance
1.3. Invocation
1.4. City Clerk's Report on Posting the Agenda
1.5. Roll Call
1.6. Orders of the Day
1.7. Employee Introductions
2. CEREMONIAL ITEMS - Proclamations and Awards
2.1. Proclamation – Proclaiming March 2023 as Youth Arts Month
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
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.
4. REPORTS OF COUNCIL MEMBERS
Council Member Bracco – Cities Association Santa Clara County Board of Directors
(alternate), Santa Clara County Library Joint Powers Authority, Santa Clara Valley Water
Commission, Santa Clara Valley Water Joint Water Resources Commission, SCRWA
Council Member Armendariz – Santa Clara County Library Joint Powers Authority, Santa
Clara Valley Habitat Agency Governing Board, Santa Clara Valley Habitat Agency
Implementation Board, Silicon Valley Clean Energy Authority JPA Board (alternate), South
City Council
Regular Meeting Agenda Page 4 of 8 February 27, 2023 | 6:00 PM
County United for Health
Council Member Marques – ABAG, Gilroy Gardens Board of Directors, Santa Clara Valley
Habitat Agency Governing Board, Santa Clara Valley Habitat Agency Implementation
Board, SCRWA (alternate)
Council Member Hilton – CalTrain Policy Group (alternate), Silicon Valley Clean Energy
Authority JPA Board, South County United for Health (alternate), VTA Policy Advisory
Committee
Council Member Cline – Gilroy Economic Development Partnership (alternate), Gilroy
Sister Cities Association, Gilroy Youth Task Force, Silicon Valley Regional Interoperability
Authority Board, VTA Policy Advisory Committee (alternate), Visit Gilroy California Welcome
Center Board
Council Member Tovar – Gilroy Youth Task Force (alternate), Santa Clara County
Expressway Plan 2040 Advisory Board, Santa Clara Valley Water Commission, SCRWA,
South County Youth Task Force Policy Team, VTA Mobility Partnership
Mayor Blankley – ABAG (alternate), CalTrain Policy Group, Cities Association Santa Clara
County Board of Directors, Gilroy Economic Development Partnership, Gilroy Sister Cities
Association (alternate), Gilroy Youth Task Force, Santa Clara Valley Water Joint Water
Resources Commission, SCRWA, South County Youth Task Force Policy Team, VTA
Board of Directors, VTA Mobility Partnership
5. COUNCIL CORRESPONDENCE
5.1. Advisory and Request from the California League of Cities for a Resolution
Opposing the Taxpayer Protection and Government Accountability Act
Ballot Measure
6. FUTURE COUNCIL INITIATED AGENDA ITEMS
7. CONSENT CALENDAR
All matters listed under the Consent Calendar are considered by the City Council to be routine and will
be enacted by one motion. There will be no separate discussion of these items unless a request is
made by a member of the City Council or a member of the public. Any person desiring to speak on any
item on the consent calendar should ask to have that item removed from the consent calendar prior to
the time the Council votes to approve. If removed, the item will be discussed in the order in which it
appears.
7.1. Approval of the Action Minutes of the February 6, 2023 City Council
Regular Meeting
7.2. Adoption of a Resolution Approving Budget Amendments in Fiscal Year
2022-23 Adding $43,529 from the Board of State and Community
Corrections Officer Wellness and Mental Health Grant Program to the
Police Department Grants Fund.
7.3. Resolution of the City Council of the City of Gilroy Declaring Weeds a
Nuisance
7.4. Tentative Map Time Extension Request for Greenfield Subdivision approval
City Council
Regular Meeting Agenda Page 5 of 8 February 27, 2023 | 6:00 PM
to subdivide 8.36 acres into 14 residential lots, and dedication of 3.7 acres
to Uvas Creek Preserve, located at the northerly end of Greenfield Drive,
APN 808-20-008, Applicant James Suner (TM 16-02)
7.5. Adopt an Ordinance of the City Council of the City of Gilroy Amending
Chapter 19B of the Gilroy City Code Relating to Smoking Pollution Control
to Prohibit Smoking at Multi-Family Housing Properties and Public Events
Except in Designated Areas
7.6. Adopt an Ordinance of the City Council of the City of Gilroy Amending
Chapter 19C of the Gilroy City Code Relating to Social Host Accountability
to Increase the Penalty Amounts and Increase the Period of Time for
Issuing Citations
7.7. Claim of Loreen Clark (The City Administrator recommends a "yes" vote
under the Consent Calendar shall constitute a denial of the claim).
8. BIDS AND PROPOSALS
8.1. Award a Contract to Itech Solution in the Amount of $134,140 with a project
contingency of $13,414 (10%) and Approve a Project Expenditure of
$147,554 for Gilroy Sports Park Playground Surface Repair, Project No. 23-
PW-276
1. Staff Report: Daryl Jordan, Public Works Director
2. Public Comment
3. Possible Action:
Award a contract to Itech Solution in the amount of $134,140 with an additional
project contingency of $13,414 (10%), for a total construction cost of $147,554
for the Gilroy Sports Park Playground Surface Repair, Project No. 23-PW-276,
and authorize the City Administrator to execute the contract and associated
documents.
8.2. Approve an Amendment to the Agreement for Services with Alpine
Landscapes for Community Facilities District (CFD) Landscape
Maintenance Services to Include Trash and Debris Removal, the Annual
Cost for the Expanded Service, Extend the Agreement for 18 Months, with
a Total Cost of $500,450 for the 18 Month Extension
1. Staff Report: Daryl Jordan, Public Works Director
2. Public Comment
3. Possible Action:
Approve an amendment with Alpine Landscapes to increase the annual contract
amount by $26,916 per year to a total amount of $333,633 and extend the term
of the existing agreement by 18 months for landscape and maintenance services
and authorize the City Administrator to execute the amendment and related
documents.
8.3. Approve an Amendment to the Agreement for Services with Jensen
Landscape Services, LLC for Parks and Landscape Maintenance Services
to Include Trash and Debris Removal, the Annual Cost for the Expanded
Service, Extend the Agreement for 18 Months, with a Total Cost of
$1,541,637 for the 18 Month Extension
1. Staff Report: Daryl Jordan, Public Works Director
City Council
Regular Meeting Agenda Page 6 of 8 February 27, 2023 | 6:00 PM
2. Public Comment
3. Possible Action:
Approve an amendment with Jensen Landscape Services, LLC to increase the
annual contract amount by $92,750 to a total annual amount of $1,027,758 and
extend the term of the existing agreement by 18 months for landscape and
maintenance services and authorize the City Administrator to execute the
amendment and related documents.
9. PUBLIC HEARINGS
9.1. Proposed Tentative Map to divide 6955 Camino Arroyo into two parcels
(within Gilroy Crossing commercial development), Application No. TM 22-
05
1. Disclosure of Ex-Parte Communications
2. Staff Report: Sharon Goei, Community Development Director
3. Open Public Hearing
4. Close Public Hearing
5. Possible Action:
Staff has analyzed the proposed project and recommends that the City Council
take the following actions:
Determine that the proposed Tentative Map is exempt from further
environmental review and qualifies for the State CEQA Guidelines Class 15
Exemption, Minor Land Divisions because the proposed subdivision results in
less than four parcels, is in conformance with the City’s General Plan and
Zoning, seeks no exceptions or variances, and all services and access to the
resulting parcels is available, based on its independent analysis; and
Adopt a resolution to approve the proposed tentative map to divide the property
known as APN 841-70-045 into two separate parcels.
10. UNFINISHED BUSINESS
11. INTRODUCTION OF NEW BUSINESS
11.1. Renaming of the Gilroy Senior Center’s Classroom One after Theodore
“Ted” Carpenetti
1. Staff Report: Adam Henig, Recreation Manager
2. Public Comment
3. Possible Action:
Staff recommends renaming the Gilroy Senior Center’s Classroom One after
Theodore “Ted” Carpenetti.
11.2. Adopt a Resolution Declaring Additional Gilroy Gardens Property as
Surplus Pursuant to Government Code Section 54221; find that the
Council’s action in doing so is exempt from CEQA pursuant to CEQA
Guidelines Section 15061(b)(3)
1. Staff Report: Bryce Atkins, Assistant to the City Administrator
2. Public Comment
3. Possible Action:
Council adopt the resolution.
City Council
Regular Meeting Agenda Page 7 of 8 February 27, 2023 | 6:00 PM
11.3. Accept the Annual Comprehensive Financial Report for Fiscal Year-Ended
June 30, 2022
1. Staff Report: Harjot Sangha, Finance Director
2. Public Comment
3. Possible Action:
Accept and file the report.
11.4. Report on Illegal Fireworks Administrative Citations
1. Staff Report: Sharon Goei, Community Development Director
2. Public Comment
3. Possible Action:
Receive report on illegal fireworks administrative citations and provide direction
for the Fireworks Citation program.
12. ADJOURN TO THE MEETING OF GILROY PUBLIC FACILITIES FINANCING
AUTHORITY
13. OPENING (GILROY PUBLIC FACILITIES FINANCING AUTHORITY)
13.1. Call to Order
13.2. Roll Call
14. CONSENT CALENDAR (GILROY PUBLIC FACILITIES FINANCING AUTHORITY)
All matters listed under the Consent Calendar are considered by the Gilroy Public Facilities Financing
Authority to be routine and will be enacted by one motion. There will be no separate discussion of
these items unless a request is made by a member of the Authority 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.
14.1. Approval of the Action Minutes of the December 5, 2022 Gilroy Public
Facilities Financing Authority Regular Meeting
15. INTRODUCTION OF NEW BUSINESS (GILROY PUBLIC FACILITIES FINANCING
AUTHORITY)
15.1. Approval of Resolutions Specifying Circumstances Under Which Regular
Meetings Will Not Be Held; Designating Certain Officers and Employees as
Ex Officio Positions; and Adopting a Budget for Fiscal Year 2023-24
1. Staff Report: Andy Faber, General Counsel/Legal Advisor
2. Public Comment
3. Possible Action:
Staff recommends the Board to adopt resolutions of the Gilroy Public Facilities
Financing Authority (“Authority”) specifying circumstances under which regular
meetings will not be held; designating certain officers and employees as ex
officio positions; and adopting a budget for fiscal year 2023-24.
16. ADJOURN TO THE MEETING OF GILROY CITY COUNCIL
17. CITY ADMINISTRATOR'S REPORTS
17.1. Gilroy Clean Up Program Announcement
City Council
Regular Meeting Agenda Page 8 of 8 February 27, 2023 | 6:00 PM
18. CITY ATTORNEY'S REPORTS
19. CLOSED SESSION
19.1. Conference with Negotiator – Collective Bargaining Unit Pursuant to
Government Code Section 54957.6, Gilroy City Code Section 17A.11 (4)
Collective Bargaining Unit: Gilroy Police Officers Association, Inc.,
Representing Gilroy Police Officers;
City Negotiators: Jimmy Forbis, City Administrator; LeeAnn McPhillips,
Assistant City Administrator/Administrative Services & Human Resources
Director;
Anticipated Issue(s) Under Negotiation: Wages, Hours, Benefits, Working
Conditions; Memorandum of Understanding: MOU Between City of Gilroy &
Gilroy Police Officers
20. ADJOURN TO OPEN SESSION
Report of any action taken in Closed Session and vote or abstention of each Council
Member 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).
21. ADJOURNMENT
FUTURE MEETING DATES
March 2023
6 Regular Meeting - 6:00 p.m
13 Council Goal / Priority Setting Workshop - 6:00 p.m
20 Regular Meeting - 6:00 p.m
April 2023
3 Regular Meeting - 6:00 p.m
17 Regular Meeting - 6:00 p.m
May 2023
1 Regular Meeting - 6:00 p.m
15 Regular Meeting - 6:00 p.m
Meetings are webstreamed on the City of Gilroy’s website at gilroy.city/meetings.
CaliforniaCityFinance.Com
Fiscal and Program Effects of
Initiative 21-0042A1 on Local Governments
If Initiative 21-0042A1 is placed on the ballot and passed by voters, it will result in:
Over $20 billion of local government fee and charge revenues over 10 years placed at heightened legal
peril. Related public service reductions across virtually every aspect of city, county, special district, and
school services especially for drinking water, sewer sanitation, and public health and safety.
About $2 billion of revenues each year from fees and charges adopted after January 1, 2021 subject to
legal peril.1
Over $2 billion dollars of annual revenues from dozens of tax measures approved by voters between
January 1, 2022 and the effective date of the act2 subject to additional voter approval if not in compliance
with the initiative.
Indeterminable legal and administrative burdens and costs on local government from new and more
empowered legal challenges, and bureaucratic cost tracking requirements.
The delay and deterrence of municipal annexations.
Substantially higher legal and administrative cost of public infrastructure financing which will delay and
deter new residential and commercial development.
Service and infrastructure declines including in fire and emergency response, law enforcement, public
health, drinking water, sewer sanitation, parks, libraries, public schools, affordable housing,
homelessness prevention and mental health services.
1. Local Government Taxes and Services Threatened
With regard to taxes, Initiative 21-0042A1:
Prohibits advisory, non-binding measures as to use of tax proceeds on the same ballot.
o Voters may be less informed and more likely to vote against measures.
Eliminates the ability of special tax measures proposed by citizen initiative to be enacted by majority voter
approval (Upland).3
o Because the case law regarding citizen initiative special taxes approved by majority vote (Upland)
is so recent, it is unknown how common these sorts of measures might be in the future. This
initiative would prohibit such measures after the effective date of the initiative. Any such
measures adopted after January 1, 2022 through the effective date of the Act should it pass
would be void a year after the effective date of the initiative.
Requires that tax measures include a specific duration of time that the tax will be imposed. This seems to
require that all tax increases or extensions contain a sunset (end date).
o This would require additional tax measures to extend previously approved taxes.
A city charter may not be amended to impose, extend, or increase a tax might interfere with the ability of
cities that do not already have such authority in their charters to adopt Property Transfer Taxes.
o There are no more than a few of these every few years, but it is a valuable tax for those that
adopt it.
1 Assumes fee increases since January 1, 2022 would be subject to possible legal challenge if not adopted in compliance with the
Initiative.
2 The effective date of the initiative would be sometime in December 2024, the date the California Secretary of State certifies the
election results of the November 5, 2024 election.
3 Unlike the initiative 17-0050, this initiative does not eliminate that ability of cities and counties to adopt general taxes by majority
voter approval.
2217 Isle Royale Lane • Davis, CA • 95616-6616
Phone: 530.758.3952 • Fax: 530.758.3952
Rev. January 14, 2023
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Requires that a tax measure adopted after January 1, 2022 and before the effective date of the initiative
that was not adopted in accordance with the measure be readopted in compliance with the measure or
will be void twelve months after the effective date of the initiative.
o If past election patterns and elections in 2022 are an indication, over 200 tax measures approving
more than $2 billion annual revenues to support local public services would not be in compliance
and would be subject to reenactment. Most will be taxes without a specific end date and special
taxes (including parcel taxes). Because there is no regularly scheduled election within the 12
months following the effective date of the initiative, the measures would each require declaration
of emergency and unanimous vote of the governing board to be placed on a special election
ballot within a year for approval or the tax will be void after that date. I would expect most to
succeed, but some will not, in particular citizen initiative majority vote special taxes which would
have to meet a higher voter approval threshold to continue.
Requires voter approval to expand an existing tax to new territory (annexations). This would require
additional tax measures and would deter annexations and land development in cities.
o If a tax is "extended" to an annexed area without a vote after January 1, 2022, it will be void 12
months later until brought into compliance. Because there is no regularly scheduled election
within the 12 months following the effective date of the initiative, such extensions would each
require unanimous vote of the agency board to be placed on a special election ballot or would be
void a year later.
1.a. Number of Measures and Value of Local Taxes at Risk4
Over a hundred local measures were approved in 2022 that likely do not comply with the provisions of Initiative
21-0042A1. Nearly $2 billion of annual revenues from these voter approved measures will cease a year after the
effective date of the measure, reducing the local public services funded by these measures. We can expect a
similar volume of measures in 2024 and a similar volume of non-compliance. So the combined total of annual
local funding directly affected by Initiative 21-0042A1 due to its retroactivity provision is about $4 billion.
Citizen Initiative Special Taxes in 2022.
Special taxes placed on the ballot by citizen initiative and approved after January 1, 2022 by a majority but less
than two-thirds of the voters are out of compliance with Initiative 21-0042A1.
On June 7, 2022, there were three local special tax measures placed on the ballot by citizen initiative. Two failed
to get majority voter approval. A one percent transactions and use tax (sales tax) for the John C. Fremont
Healthcare District in Mariposa County received 69.6 percent approval, over the two thirds needed for any special
tax under California Constitution Article XIIIC. So this measure was passed in compliance with Initiative 21-
0042A1.
On November 8, 2022, there were 14 local special taxes placed on the ballot by citizen initiative. Seven of these
4 Source: Compilation and summary of data from County elections offices.
June 2022 Initiative Special Taxes - majority voter approval
Agency Name County Tax/Fee Rate
Estimated
Annual Revenue Use Sunset YES%
John C. Fremont
Healthcare District Mariposa Measure N
Transactions
& Use Tax 1 cent $ 150,000 hospital 40yrs 69.6%PASS
County of Kings Kings Measure F
Transactions
& Use Tax 1/2 cent $ 11,700,000 fire none 37.6%FAIL
Manhattan Beach
USD Los Angeles Measure A
School Parcel
Tax $1095/yr $ 12,000,000 schools 12yrs 31.2%FAIL
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measures failed with less than majority voter approval. The other seven measures received majority, but less than
two-thirds, voter approval. These measures passed under current law but are out of compliance with Initiative 21-
0042A1. Taken together these seven taxes will provide estimated annual revenues of from $900,000 to $1.4
billion in support of parks and recreation, zoo, library, affordable housing, transportation, homelessness
prevention, and schools in these communities.
Non-Specific Tax Durations in 2022
Voters approved 106 measures in June 2022 (10) and November 2022 (96) that do not provide a specific duration
of time that the tax will be imposed (end date). Typically, the ballot titles for these measures state that the tax
would be imposed “until ended by voters.” Four of these measures also did not include any estimate of the annual
revenues that the tax would generate, another violation of initiative 21-0042A1. Taken together, these approved
local measures generate $561 million per year that will expire a year after the effective date of the initiative if
Initiative 21-0042A1 passes.
November 2022 Initiative Special Taxes - majority voter approval
Agency Name County Tax/Fee Rate
Estimated
Annual Revenue Use Sunset YES%
Crockett Community
Services District Contra Costa Measure L Parcel Tax $50/parcel $ 60,000 parks/recr none 62.8%PASS
Oakland Alameda Measure Y Parcel Tax $68/parcel $ 12,000,000 zoo 20yrs 62.5%PASS
County of Mendocino Measure O
Transactions
& Use Tax
1/8 cent then 1/4
cent in 2027 $ 4,000,000 library none 60.8%PASS
Los Angeles Los Angeles Measure ULA
Property
Transfer Tax
4% if >$5m, 5.5%
if >$10m $600 m to $1.1 b affordable
housing none 57.3%PASS
County of Sacramento Measure A
Transactions
& Use Tax same 1/2 cent $ 212,512,500
transportati
on
40yrs 55.3%PASS
San Francisco Proposition M
Business
Operations Tax
$2500-$5000/
vacant resid unit $ 20,000,000 housing 30yrs 54.5%PASS
Santa Monica Los Angeles Measure GS
Property
Transfer Tax
$56/$1000 if
>$8m $ 50,000,000
schools,
homelessne
ss, afford.
housing
none 53.3%PASS
Total $900,000 to
$1.4 billion
Agency Name County Tax/Fee Rate
Estimated
Annual Revenue Use Sunset YES%
County of Calaveras Measure A
Transactions
& Use Tax 1 cent $ 5,000,000 fire none 49.4%FAIL
South San Francisco
(for Schools)San Mateo Measure DD
School Parcel
Tax $2.50/sf $ 55,900,000 schools none 47.2%FAIL
County of Fresno (for CSU ) Measure E
Transactions
& Use Tax
1/5 ct,
1/40 ct (Reedley) $ 36,000,000 Calif State
Univ 20yrs 46.9%FAIL
Santa Cruz Santa Cruz Measure N Parcel Tax $6k/v acant SFU xxx
vacant
property xxx 44.2%FAIL
County of Monterey Measure Q Parcel Tax $49/parcel $ 5,500,000 childcare 10yrs 41.1%FAIL
San Francisco City
College
San
Francisco Measure O School Parcel
Tax $150/sfu $ 37,000,000 schools 10yrs 36.7%FAIL
Morro Bay San Luis
Obispo Measure B Parcel Tax $120+/parcel $ 680,000 harbor none 36.0%FAIL
Inverness Public
Utility District Marin Measure O Parcel Tax
$0.20/sf,
$150/vacant $ 276,000 fire none 27.0%FAIL
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Measures in 2022 with Non-Specific Durations
Agency Name County Tax/Fee Rate
Annual
Revenue Use Sunset YES%
Oakland Alameda Measure T
Business Tax
General various $ 20,900,000 none 71.4%PASS
Culver City Los Angeles Measure BL
Business Tax
General various $ 10,000,000 none 60.5%PASS
El Segundo Los Angeles Measure BT
Business Tax
General various $ 3,000,000 none 51.2%PASS
Pico Rivera Los Angeles Measure AB
Business Tax
General various $ 5,800,000 none 75.5%PASS
Santa Ana Orange Measure W
Business Tax
General various neutral none 64.8%PASS
Tracy San Joaquin Measure B
Business Tax
General various $ 3,200,000 none 72.6%PASS
Burlingame San Mateo Measure X
Business Tax
General various $ 2,500,000 none 75.1%PASS
Los Gatos Santa Clara Measure J
Business Tax
General various $ 1,100,000 none 53.4%PASS
Santa Clara Santa Clara Measure H
Business Tax
General
$45/employee,
$15/rental unit $ 6,000,000 none 59.5%PASS
Brisbane San Mateo Measure O
Business Tax
lodging busn $2.50/rm/day $ 250,000 none 69.2%PASS
East Palo Alto San Mateo Measure L
Business Tax
resid. rentals
2.5%
grossRcpts $ 1,480,000 none 69.9%PASS
County of Santa Cruz Unincorporated Measure C
Busn Tax -
disp cups 12.5cents/cup $ 700,000 none 68.2%PASS
South Lake Tahoe El Dorado Measure G
Busn Tax
Cannabis
6% retail,
manufacturing $ 950,000 none 62.9%PASS
McFarland Kern Measure O
Busn Tax
Cannabis
8% of gross
receipts retail, $ 1,800,000 none 63.5%PASS
Avenal Kings Measure C
Busn Tax
Cannabis
$25+/sf or
15% gr rcpts $ 600,000 none 61.8%PASS
Baldwin Park Los Angeles Measure CB
Busn Tax
Cannabis
4%
grossRcpts $ 300,000 none 51.3%PASS
Claremont Los Angeles Measure CT
Busn Tax
Cannabis
4%-7% gr
rcpts, $1- $ 500,000 none 61.1%PASS
County of Los Angeles Unincorporated Measure C
Busn Tax
Cannabis
4% gross
receipts retail, $ 15,170,000 none 60.1%PASS
Cudahy Los Angeles Measure BA
Busn Tax
Cannabis
15%
grossRcpts $ 3,600,000 none 54.0%PASS
El Segundo Los Angeles Measure Y
Busn Tax
Cannabis
10%
GrossRcpt, $ 1,500,000 none 72.8%PASS
Hermosa Beach Los Angeles Measure T
Busn Tax
Cannabis
10%
GrossRcpt, $ 1,500,000 none 67.6%PASS
Lynwood Los Angeles Measure TR
Busn Tax
Cannabis 5%to10% $ 3,000,000 none 66.4%PASS
Santa Monica Los Angeles Measure HM Busn Tax
Cannabis
10% gross
Rcpts $ 5,000,000 none 66.4%PASS
South El Monte Los Angeles Measure CM Busn Tax
Cannabis
6% special
excise tax on $ 126,000 none 53.7%PASS
Monterey Monterey Measure J
Busn Tax
Cannabis 6% grossRcpt $ 1,300,000 none 65.2%PASS
Pacific Grove Monterey Measure N
Busn Tax
Cannabis 6% grossRcpt $ 300,000 none 70.8%PASS
Huntington Beach Orange Measure O
Busn Tax
Cannabis
6% retail, 1%
other $ 600,000 none 54.7%PASS
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Notes
?= Ballot measure title did not include an estimate of annual revenues, also not in compliance with Initiative 21-0042A1.
n/a*= Arcadia Measure SW passed but sports betting remains illegal after the failure of Propositions 26 and 27 on the November
statewide ballot.
Measures in 2022 with Non-Specific Durations
Agency Name County Tax/Fee Rate
Annual
Revenue Use Sunset YES%
Laguna Woods Orange Measure T
Busn Tax
Cannabis
4%-10% o f
gross receipts $ 750,000 none 61.1%PASS
Corona Riverside Measure G
Busn Tax
Cannabis
9% of gross
receipts for $ 5,000,000 none 61.6%PASS
Montclair San Bernardino Measure R
Busn Tax
Cannabis
7%
grossRcpts $ 3,500,000 none 70.3%PASS
County of San Diego Unincorporated Measure A
Busn Tax
Cannabis
6% retail, 3%
distribution, $ 5,600,000 none 57.4%PASS
Encinitas San Diego Measure L
Busn Tax
Cannabis
4% to 7% of
gross receipts $ 1,400,000 none 65.1%PASS
Healdsburg Sonoma Measure M
Busn Tax
Cannabis 8% grossRcpt $ 500,000 none 72.7%PASS
Exeter Tulare Measure B
Busn Tax
Cannabis
10% retail and
other, $10/sf ? none 66.5%PASS
Tulare Tulare Measure Y
Busn Tax
Cannabis
10% retail and
other, $10/sf ? none 65.2%PASS
Woodland Yolo Measure K
Busn Tax
Cannabis
10%
grossRcpts ? none 66.2%PASS
Redlands San Bernardino Measure J
Busn Tax
Distrib centers
from $0.047/sf
to $0.105/sf $ 530,000 none 53.5%PASS
Arcadia Los Angeles Measure SW Busn Tax
Sports Betting
5%
grossRcpts n/a* none 63.9%PASS
Albany Alameda Measure K ParcelTax $0.074+/sf $ 1,950,000 fire/EMS none76.0%PASS
Cameron Park Airport
District El Dorado Measure J ParcelTax
by $600 to
$900/parcel $ 117,900 airport/
streets none 78.2%PASS
Highlands Village
Lighting Benefit Zone El Dorado Measure L ParcelTax $140+/parcel $ 10,920 streets none 86.3%PASS
Knolls Property
Owners CSD El Dorado Measure P ParcelTax
by $300+ to
$600+/parcel $ 8,400 streets none 75.5%PASS
Sundance Trail Zone of
Benefit El Dorado Measure C ParcelTax $600+/yr $ 24,000 roads none 73.2%PASS
South Pasadena Los Angeles Measure LL ParcelTax xxx ? library none 86.2%PASS
River Delta Fire District Sacramento Measure H ParcelTax $90/yr $ 130,000 fire none 72.1%PASS
Emeryville Alameda Measure O PropTransfTax
$15/$1000 if
$1m-$2m, $ 5,000,000 none 71.6%PASS
San Mateo San Mateo Measure CC PropTransfTax
by 1% to 1.5%
if >$10m $ 4,800,000 none 71.8%PASS
Alameda Alameda Measure F TOT by 4% to 14% $ 910,000 none 59.2%PASS
Clovis Fresno Measure B TOT by 2% to 12% $ 500,000 none 69.7%PASS
Kerman Fresno Measure G TOT 10% $ 40,000 none 62.3%PASS
Trinidad Humboldt Measure P TOT by 4% to 12% $ 65,000 none 77.6%PASS
Imperial Imperial Measure G TOT by 4% to 12% $ 600,000 none 56.2%PASS
Arcadia Los Angeles Measure HT TOT by 2% to 12% $ 730,000 none 54.1%PASS
Santa Monica Los Angeles Measure CS TOT
by 1%, 3%
home shares $ 4,100,000 none 73.7%PASS
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Measures in 2022 with Non-Specific Durations
Agency Name County Tax/Fee Rate
Annual
Revenue Use Sunset YES%
Anaheim Orange Measure J TOT
online travel
companies $ 3,000,000 none 59.2%PASS
La Palma Orange Measure P TOT by 4% to 12% $ 200,000 none 71.1%PASS
Colfax Placer Measure B TOT by 2% to10% $ 29,000 none 73.5%PASS
Rocklin Placer Measure F TOT by 2% to 10% $ 300,000 none 59.8%PASS
Roseville Placer Measure C TOT by 4% to 10% $ 3,000,000 none 73.0%PASS
Big Bear Lake San Bernardino Measure P TOT by 2% to 10% $ 1,300,000 none54.4%PASS
Grand Terrace San Bernardino Measure M TOT new 10% $ 250,000 none 51.9%PASS
Yucca Valley San Bernardino Measure K TOT by 5% to 12% $ 1,300,000 none 71.9%PASS
Imperial Beach San Diego Measure R TOT by 4% to 14% $ 400,000 none 67.4%PASS
El Paso de Robles San Luis Obisp oMeasure F TOT by 1% to 11% $ 750,000 none 61.2%PASS
Belmont San Mateo Measure K TOT by 2% to 14% $ 600,000 none 79.3%PASS
Millbrae San Mateo Measure N TOT by 2% to 14% $ 1,500,000 none 75.8%PASS
County of Humboldt Unincorporated Measure J TOT by 2% to 12% $ 3,080,000 none 63.3%PASS
County of Placer -
North Tahoe TOT Area Measure A TOT by 2% to 10% $ 4,000,000 none 90.0%PASS
County of Santa Cruz Unincorporated Measure B TOT by 1% to 12% $ 2,300,000 none 69.2%PASS
County of El Dorado -
East Slope Tahoe Measure S TOT 2/3 by 4% to 14% $ 2,500,000 none 81.8%PASS
Chico Butte Measure H TrUT 1 cent $ 24,000,000 none 52.4%PASS
Mendota Fresno Measure H TrUT 1.25 cent $ 493,498 none 57.2%PASS
Blue Lake Humboldt Measure R TrUT 1 cent $ 30,000 none 55.4%PASS
Rio Dell Humboldt Measure O TrUT 3/4cent $ 400,000 none 53.3%PASS
County of Kern unincorporated areas Measure K TrUT 1 cent $ 54,000,000 none 50.8%PASS
McFarland Kern Measure M TrUT 1 cent $ 579,662 none 62.2%PASS
Tehachapi Kern Measure S TrUT 1 cent $ 4,000,000 none 57.2%PASS
Avenal Kings Measure A TrUT 1 cent $ 500,000 none 72.5%PASS
Susanville Lassen Measure P TrUT 1 cent $ 1,750,000 none 54.7%PASS
Baldwin Park Los Angeles Measure BP TrUT 3/4 cent $ 6,000,000 none 58.1%PASS
Malibu Los Angeles Measure MC TrUT 1/2 cent $ 3,000,000 none 52.6%PASS
Monterey Park Los Angeles Measure MP TrUT 3/4 cent $ 6,000,000 none 58.5%PASS
Torrance Los Angeles Measure SST TrUT 1/2 cent $ 18,000,000 none 55.0%PASS
Larkspur Marin Measure G TrUT 1/4 cent $ 700,000 none 59.4%PASS
Sand City Monterey Measure L TrUT
by 1/2cent to
1.5cents $ 1,400,000 none 68.7%PASS
Hemet Riverside Measure H TrUT same 1 cent $ 15,000,000 none 58.0%PASS
Elk Grove Sacramento Measure E TrUT 1 cent $ 21,000,000 none 54.1%PASS
Galt Sacramento Measure Q TrUT 1 cent $ 3,600,000 none 52.4%PASS
Colton San Bernardino Measure S TrUT 1 cent $ 9,500,000 none 66.8%PASS
Ontario San Bernardino Measure Q TrUT 1 cent $ 95,000,000 none 53.2%PASS
Solana Beach San Diego Measure S TrUT 1 cent $ 3,000,000 none 66.7%PASS
Brisbane San Mateo Measure U TrUT 1/2 cent $ 2,000,000 none 63.9%PASS
Goleta Santa Barbara Measure B TrUT 1 cent $ 10,600,000 none 64.7%PASS
Solvang Santa Barbara Measure U TrUT 1 cent $ 1,600,000 none 63.1%PASS
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Co-temporal Advisory Measures in 2022
At the November 2022 election, there was just one local general tax measure that was accompanied by an
advisory measure as to the use of funds. The City of Santa Monica’s Measure DT property transfer tax failed with
just 34 percent approval as voters instead chose the citizen initiative Measure GS.
There was also just one such tax use advisory measure on the June 2022 election. Susanville’s voters passed
Measure P, a 1 percent transactions and use (sales) tax that generates $1.75 million per year5 for general city
services. The measure was accompanied by advisory Measure Q, accompanied the city’s It asked, “If Measure P
passes, should the revenues be used to balance the budget to maintain and enhance existing public safety
services (police and fire), and provide funding to support street infrastructure improvements and provide funding
to support economic development efforts designed to increase businesses, jobs and visitors to Susanville?” Both
measures passed. Under Initiative 21-0042A1, the tax will expire a year after the effective date of the initiative
(i.e., in December 2025).
1.b. Additional Costs and Public Service Effects of the Tax Provisions
Assuming a similar volume of local measures through 2024 as we saw in 2022, there will be over 200 local
measures that will need to be redrafted to comply with the Initiative and placed back on the ballot for the taxes to
continue after December 2025. The costs of re-drafting, re-placing and re-voting on these measures, previously
legally approved by voters, will be in the tens of millions in total statewide.
2. “Exempt Charges” (fees and charges that are not taxes) and Services Threatened
With regard to fees and charges adopted after January 1, 2022, Initiative 21-0042A1:
Subjects new fees and charges for a product or service to a new "actual and reasonable test."
Subjects fees and charges for entrance to local government property; and rental and sale of local
government property to a new, undefined, “reasonable” test.
Allows legal challenge to any tax adopted before the effective date of the initiative and after January 1,
5 The Susanville measure also did not include a specific end date and so is included in the list and totals of those measures.
Measures in 2022 with Non-Specific Durations
Agency Name County Tax/Fee Rate
Annual
Revenue Use Sunset YES%
Watsonville Santa Cruz Measure R TrUT 1/2 cent $ 5,000,000 none 64.4%PASS
Vallejo Solano Measure P TrUT 7/8 cent $ 18,000,000 none 54.7%PASS
Modesto Stanislaus Measure H TrUT 1 cent $ 39,000,000 none 62.8%PASS
County of Colusa Measure A TrUT 2/3 1/2 cent $ 2,400,000 EMS none 69.4%PASS
Atwater Merced Measure B TrUT 2/3 same 1 cent $ 4,000,000 police/fire none 73.7%PASS
Truckee Nevada Measure U TrUT 2/3
by 1/4 cent to
1/2 cent $ 3,000,000 open space
/ trails none 76.4%PASS
Palo Alto Santa Clara Measure L UtilityTransfer 18% gas $ 7,000,000 none 77.7%PASS
Santa Clara Santa Clara Measure G UtilityTransfer 5 % $ 30,000,000 none 84.2%PASS
Hercules Contra Costa Measure N UUT 8% $ 3,600,000 none 69.3%PASS
Carson Los Angeles Measure UU UUT 2% electr, gas $ 8,000,000 none 78.4%PASS
Sebastopol Sonoma Measure N UUT 3.75% (same) $ 700,000 none 83.5%PASS
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2022. Such a lawsuit could enjoin (stop) the enactment of the tax pending the outcome of the legal
challenge.
Subjects a challenged fee to new, higher burdens of proof if legally challenged.
2.a. Value on New Local Government Fees and Charges at Risk6
Virtually every city, county, and special district must regularly (e.g., annually) adopt increases to fee rates and
charges and revise rate schedules to accommodate new users and activities. Most of these would be subject to
new standards and limitations under threat of legal challenge. Based on the current volume of fees and charges
imposed by local agencies and increases in those fees simply to accommodate inflation, the amount of local
government fee and charge revenue placed at risk is about $2 billion per year including those adopted since
January 1, 2022. Of $2 billion, about $900 million (45 percent) is for special districts, $800 million (40
percent) is cities, and $300 million (15 percent) is counties.7
Major examples of affected fees and charges are:
1. Certain water, sanitary sewer, wastewater, garbage, electric, gas service fees.
2. Nuisance abatement charges - such as for weed, rubbish and general nuisance abatement to fund
community safety, code enforcement, and neighborhood cleanup programs.
3. Emergency response fees - such as in connection with DUI.
4. Advanced Life Support (ALS) transport charges.
5. Business improvement district charges.
6. Fees for processing of land use and development applications such as plan check fees, use permits,
design review, environmental assessment, plan amendment, subdivision map changes.
7. Document processing and duplication fees.
8. Facility use charges, parking fees, tolls.
9. Fines, penalties.
10. Fees for parks and recreation services.
2.b. Additional Costs and Public Service Effects of the Fee/Charge Provisions
In addition to service delays and disruptions due to fee and charge revenues placed at greater legal risk, there
would be substantial additional costs for legal defense. The risk to fees and charges will make infrastructure
financing more difficult and will deter new residential and commercial development.
***********
mc
6 Source: California State Controller Annual Reports of Financial Transactions concerning cities, counties and special districts,
summarized with an assumed growth due to fee rate increases (not population) of 2 percent annually.
7 School fees are also affected but the amount is negligible by comparison.
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1
The Taxpayer Protection and Government Accountability Act
Initiative No. 21-0042A1 1
Feb. 1, 2023
Effective date: Any new or increased tax or fee adopted by the Legislature, a
city council, or the local voters after January 1, 2022, must comply with the Act’s
new rules.
Voters
• Local advisory measures are prohibited. No measure may appear on the
ballot asking for approval of a general tax that would allow the voters to
express a preference for how the revenue from the general tax will, could, or
should be used.
• Overturns Upland decision which upheld a special tax that had been placed
on the ballot by the voters to be approved by a majority vote. Taxes
proposed by initiative will be subject to the same rules as taxes placed on the
ballot by a city council.
• Voters may not amend a city charter to impose, extend, or increase a tax or
fee.
Local taxes
• Requires voter approval in order to apply an existing tax:
o to territory that is annexed.
o to a new service or product, for example when a utility user tax is
applied to a new service.
• All new or increased taxes adopted after Jan. 1, 2022, must include a sunset
date.
State taxes
• All new or increased state taxes require statewide voter approval.
• Prohibits a property tax “surcharge” (increase). Prohibits any allocation of
property tax to the state.
1 This is a summary of some of the more significant provisions of the Act. Please review the Act for
a complete understanding of the changes it makes to the Constitution.
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2
Fees and charges
• Fees and charges for services and permits may not exceed the “actual cost”
of providing the product or service for which the fee is charged. “Actual
cost” is the “minimum amount necessary.” Examples include planning
services, excavation and encroachment permits, preparation of candidate
statement, and permit parking.
• State and cities have the burden of proving by “clear and convincing
evidence” that a fee/charge is not a tax, that the amount is reasonable, and
that it does not exceed “actual cost.”
• Franchise fees — historically considered fees, not taxes — will more likely be
considered taxes due to the elimination of an existing category of “fee” and
the requirement that charges to entrance, purchase, rental, or lease of
government property be “reasonable.” The state and cities issue franchises to
oil companies, utilities, gas companies, railroads, garbage companies, cable
companies, and other corporations.
• No fee or charge or exaction regulating vehicle miles traveled can be
imposed as a condition of property development or occupancy.
Fines and penalties (administrative enforcement of state law and municipal
codes)
• May require voter approval of fines and penalties for corporations and
property owners that violate state and local laws unless a new, undefined
adjudicatory process is used to impose the fines and penalties. Examples
include nuisance abatement, organic waste reduction requirements, and
failure to maintain a vacant property.
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ACTION ALERT
State Ballot Measure
Restricting Voters’ Input and Local Taxing Authority
*** CITY RESOLUTIONS NEEDED ***
ACTION:
The anti-local control California Business Roundtable measure has qualified
for the November 2024 ballot. Cal Cities requests cities adopt a city
resolution to demonstrate how harmful this measure would be to their
community and the people of California.
Send adopted city resolutions to BallotMeasures@calcities.org as soon as
possible. A sample city resolution is attached.
BACKGROUND
On Feb. 1, 2023, the “Taxpayer Protection and Government Accountability Act,”
or AG# 21-0042A1, qualified for the November 2024 ballot. This anti-local control
measure will decimate vital local and state services to the benefit of wealthy
corporations. The measure is sponsored by the California Business Roundtable
(CBRT) — the lobbying arm of the largest and wealthiest corporations in
California.
Cal Cities, along with a broad coalition of local governments, labor, public
safety, education, and infrastructure advocates, strongly oppose this initiative.
SUMMARY
The initiative limits voters’ authority, adopts new and stricter rules for raising taxes
and fees, and may make it more difficult to hold violators of state and local laws
accountable.
Effective date
•All new or increased taxes or fees adopted by the Legislature, a city council,
or the local voters after Jan. 1, 2022, must comply with the Act’s new rules.
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State taxes
•All new or increased state taxes will require majority voter approval.
Local taxes
•New requirements for voter approval:
o when an existing tax is applied to a newly annexed territory.
o when an existing tax is applied to a new service or product, for example
when a utility user tax is applied to a new service.
•All new or increased taxes adopted after Jan. 1, 2022, must include a sunset
date.
Fees and charges
•Requires that charges for access, use and rental of government property be
“reasonable” such as fees charged for use of government facilities and
public works infrastructure to oil companies, utilities, gas companies, cable
companies, and other corporations.
•Fees and charges for services and permits may not exceed the “actual cost”
of providing the product or service for which the fee is charged. “Actual
cost” is the “minimum amount necessary.” Examples include planning
services, excavation and encroachment permits, preparation of candidate
statement, and permit parking.
•State and cities have burden of proving by “clear and convincing evidence”
that a fee/charge is not a tax, that the amount is reasonable, and that it
does not exceed the “actual cost.”
•No fee or charge or exaction regulating vehicle miles traveled can be
imposed on new development.
Fines and penalties [administrative enforcement of state law and municipal
codes]
•May require voter approval of fines and penalties for corporations and
property owners that violate state and local laws unless a new, undefined
adjudicatory process is used to impose the fines and penalties. Examples
include nuisance abatement, organic waste reduction requirements, and
failure to maintain a vacant property.
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Voters
•Local advisory measures are prohibited. No measure may appear on the
ballot asking for approval of a general tax that would express the voters'
preference for how the tax revenue should be used.
•Overturns Upland decision so taxes proposed by initiative are subject to the
same rules as taxes placed on the ballot by a city council.
•Voters may not amend a city charter to impose, extend, or increase a tax or
fee.
Fiscal
•Puts approximately $2 billion from fees and charges at risk each year,
subject to legal peril.
•Puts approximately $2 billion of annual tax revenue at risk. Many tax
measures approved between 2022-2024 will need to be resubmitted to
voters to comply and be reapproved.
TALKING POINTS
Jeopardizes vital local and state services
•This far-reaching measure puts at risk billions of dollars currently
dedicated to critical state and local services.
•It could force cuts to fire and emergency response, law enforcement,
public health, parks, libraries, affordable housing, services to support
homeless residents, mental health services, and more.
Undermines voter rights, transparency, and accountability
•This misleading measure changes our Constitution to make it more
difficult for local voters to pass measures needed to fund local
services and projects.
•It also includes a provision that would retroactively cancel measures
that were passed by local voters — effectively undermining the rights
of voters to decide for themselves what their communities need.
•It would limit voter input by prohibiting local advisory measures, where
voters provide direction to politicians on how they want their local tax
dollars spent.
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Opens the door for lawsuits, bureaucracy, and red tape that will cost taxpayers
and hurt our communities
•The measure would encourage lawsuits, bureaucracy, and red tape
that would cost local taxpayers millions — while significantly delaying
and stopping investments in vital services.
Gives wealthy corporations a major loophole to avoid paying their fair share —
forcing local residents and taxpayers to pay more
•The measure would create new constitutional loopholes that allow
corporations to pay far less than their fair share for the impacts they
have on our communities, including local infrastructure and our
environment — shifting the burden and making individual taxpayers
pay more.
Allows corporations to dodge enforcement when they violate environmental,
health, public safety, and other laws
•The deceptive scheme may create new loopholes that make it much
more difficult for state and local regulators to issue fines and levies on
corporations that violate laws intended to protect our environment,
public health and safety, and our neighborhoods.
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February 6, 2023 | 6:00 PM Page 1 of 7 City Council
Regular Meeting Minutes
City of Gilroy
City Council Regular Meeting Minutes
Monday, February 6, 2023 | 6:00 PM
1.OPENING
1.1.Call to Order
The meeting was called to order by Mayor Blankley at 6:00 PM.
1.2.Pledge of Allegiance
Council Member Cline led the Pledge of Allegiance.
1.3.Invocation
Pastor Greg Quirke from South Valley Community Church provided the
Invocation.
1.4.City Clerk’s Report on Posting the Agenda
City Clerk Pham reported on the Posting of the Agenda.
1.5.Roll Call
Attendee Name Title Status
Rebeca Armendariz Council Member Present
Dion Bracco Mayor Pro Tempore Present
Tom Cline Council Member Present
Zach Hilton Council Member Present
Carol Marques Council Member Present
Fred Tovar Council Member Present
Marie Blankley Mayor Present
1.6.Orders of the Day
Mayor Blankley announced that Council will postpone in hearing of Closed
Session Item No. 14.1 to February 27, 2023 City Council Regular Meeting.
Mayor Blankley requested to move 11.4 to be the first item heard in Introduction
to New Business. She received no objections to the request.
1.7.Employee Introductions
Police Chief Espinoza introduced the following Police Officers Mario Corvera, Luis
Gonzalez, Travis Johnson, and Justin Rhodes.
2.CEREMONIAL ITEMS - Proclamations and Awards
2.1.Proclamation – Gun Violence Survivors Week
Mayor Blankley read aloud the proclamation.
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February 6, 2023 | 6:00 PM Page 2 of 7 City Council
Regular Meeting Minutes
3.PRESENTATIONS TO THE COUNCIL
3.1.PUBLIC COMMENT BY MEMBERS OF THE PUBLIC ON ITEMS NOT ON THE
AGENDA BUT WITHIN THE SUBJECT MATTER JURISDICTION OF THE CITY
COUNCIL
Mayor Blankley opened Public Comment. The following members spoke on items
that were not on the agenda.
Robert Zepeda to discuss the issue of acceptance of drag entertainment
within the community.
There being no further speakers, Mayor Blankley closed Public Comment.
4.REPORTS OF COUNCIL MEMBERS
Council Member Bracco recognized Mayor Blankley’s birthday.
Council Member Armendariz reported on Santa Clara County Library Joint Powers
Authority.
Council Member Marques had nothing to report.
Council Member Hilton reported on Silicon Valley Clean Energy Authority JPA Board.
Council Member Cline reported on Visit Gilroy California Welcome Center Board and Gilroy
Youth Task Force Policy Team. He also mentioned his attendance to the Mayor and New
Mayors and Council Members Academy hosted by the League of California Cities.
Council Member Tovar wished a Happy Birthday to the Mayor and Council Member Hilton
and thanked the public for attending the January 28th Strategic Planning Meeting.
Mayor Blankley reported on CalTrain Policy Group, VTA Board of Directors, VTA Board
Workshop, VTA Administrative and Finance Committee, and Gilroy Youth Task Force.
5.COUNCIL CORRESPONDENCE
5.1.Current Grant Status Update
Council received the report.
6.FUTURE COUNCIL INITIATED AGENDA ITEMS
Council Member Hilton requested for Council to receive a presentation from CARAS a youth
center at a future meeting. The item received majority support.
7.CONSENT CALENDAR
Mayor Blankley opened Public Comment. There being no speakers, Mayor Blankley closed
Public Comment.
Motion: Adopt the Consent Calendar.
RESULT: Pass
MOVER: Dion Bracco, Mayor Pro Tempore
SECONDER: Rebeca Armendariz, Council Member
AYES: Council Member Armendariz, Mayor Pro Tempore Bracco, Council Member Cline,
Council Member Hilton, Council Member Marques, Council Member Tovar, Mayor Blankley
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February 6, 2023 | 6:00 PM Page 3 of 7 City Council
Regular Meeting Minutes
7.1.Approval of the Action Minutes of the January 23, 2023 City Council Regular
Meeting
A motion was made to approve the minutes.
7.2.Approval of the Action Minutes of January 28, 2023 City Council Strategic
Planning Workshop
A motion was made to approve the minutes.
7.3.Claim of Javier Roacho (The City Administrator recommends a “yes” vote
under the Consent Calendar shall constitute the denial of the claim.)
A motion was made to deny the claim.
7.4.Claim of Mark Ribeiro (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
8.1.Approve the Purchase of Two Public Works Vehicles (One 2023 Ford Super
Duty F-550 Dump Truck and One 2023 Ford F-150 Crew Cab) Utilizing
Sourcewell Bid 091521-NAF in an amount not to exceed $154,829
Administrative Services and Human Resources Director McPhillips gave staff
presentation and responded to Council Member questions.
Mayor Blankley opened Public Comment. There being no further speakers, Mayor
Blankley closed Public Comment.
Motion: Approve the purchase of two public works vehicles (One 2023 Ford
Super Duty F-550 Dump Truck and One 2023 Ford F-150 Crew Cab) utilizing
Sourcewell bid 091521-NAF in an amount not to exceed $154,829
RESULT: Pass
MOVER: Fred Tovar, Council Member
SECONDER: Rebeca Armendariz, Council Member
AYES: Council Member Armendariz, Mayor Pro Tempore Bracco, Council
Member Cline, Council Member Hilton, Council Member Marques, Council
Member Tovar, Mayor Blankley
9.PUBLIC HEARING
There were none.
10.UNFINISHED BUSINESS
There were none.
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Regular Meeting Minutes
11.INTRODUCTION OF NEW BUSINESS
11.4.Approve a School Resource Officer Memorandum of Understanding for
Fiscal Year 2023-2024
Police Chief Espinoza provided staff presentation and responded to Council
Member questions.
Mayor Blankley opened Public Comment.
The following speakers spoke in favor of the item:
Debbie Flores
Ron Kirkish
Mike Nebsnick
There being no further speakers, Mayor Blankley closed Public Comment.
Motion: Adopt a resolution of the City Council of the City of Gilroy
authorizing the City Administrator to enter into an agreement between the
City of Gilroy and Gilroy Unified School District for two school resource
officers, including cost sharing, for Fiscal Year 2023-2024 (FY24).
RESULT: Pass
MOVER: Fred Tovar, Council Member
SECONDER: Tom Cline, Council Member
AYES: Council Member Armendariz, Mayor Pro Tempore Bracco, Council
Member Cline, Council Member Hilton, Council Member Marques, Council
Member Tovar, Mayor Blankley
Enactment No.: Resolution No. 2023-06
11.1.Introduction of An Ordinance of the City Council of the City of Gilroy
Amending Chapter 19C of the Gilroy City Code Relating to Social Host
Accountability to Increase the Penalty Amounts and Increase the Period of
Time for Issuing Citations
Assistant to City Administrator Bryce Atkins provided staff presentation and
responded to Council Member questions.
Mayor Blankley opened Public Comment. There being no speakers, Mayor
Blankley closed Public Comment.
Motion: Read the ordinance by title only and waive further reading.
RESULT: Pass
MOVER: Dion Bracco, Mayor Pro Tempore
SECONDER: Carol Marques, Council Member
AYES: Council Member Armendariz, Mayor Pro Tempore Bracco, Council
Member Cline, Council Member Hilton, Council Member Marques, Council
Member Tovar, Mayor Blankley
City Clerk Pham read aloud the title of the ordinance.
Motion: Introduce an Ordinance of the City Council of the City of Gilroy
Amending Chapter 19C of the Gilroy City Code Relating to Social Host
Accountability to Increase the Penalty Amounts and Increase the Period of
Time for Issuing Citations.
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Regular Meeting Minutes
RESULT: Pass
MOVER: Dion Bracco, Mayor Pro Tempore
SECONDER: Fred Tovar, Council Member
AYES: Council Member Armendariz, Mayor Pro Tempore Bracco, Council
Member Cline, Council Member Hilton, Council Member Marques, Council
Member Tovar, Mayor Blankley
11.3.Introduction of an Ordinance of the City Council of the City of Gilroy
Amending Chapter 19B of the Gilroy City Code Relating to Smoking
Pollution Control to Prohibit Smoking at Multi-family Housing Properties and
Public Events
Assistant to City Administrator Bryce Atkins provided staff presentation and
responded to Council Member questions.
Mayor Blankley opened Public Comment.
Thomas Lopez Lara spoke in support of the ordinance.
There being no further speakers, Mayor Blankley closed Public Comment.
Motion: to read the ordinance by title only and waive further reading of the
ordinance.
RESULT: Pass
MOVER: Marie Blankley, Mayor
SECONDER: Tom Cline, Council Member
AYES: Council Member Armendariz, Mayor Pro Tempore Bracco, Council
Member Cline, Council Member Hilton, Council Member Marques, Council
Member Tovar, Mayor Blankley
City Clerk Pham read aloud the title of the ordinance.
Motion: Introduce an Ordinance of the City Council of the City of Gilroy
Amending Chapter 19B of the Gilroy City Code Relating to Smoking
Pollution Control to Prohibit Smoking at Multi-family Housing Properties
and Public Events.
RESULT: Pass
MOVER: Zach Hilton, Council Member
SECONDER: Fred Tovar, Council Member
AYES: Council Member Armendariz, Mayor Pro Tempore Bracco, Council
Member Cline, Council Member Hilton, Council Member Marques, Council
Member Tovar, Mayor Blankley
11.4.Discussion and Possible Direction Concerning Oversight/Administration of
Council-Adopted Downtown Initiatives
City Administrator Forbis provided staff presentation and responded to Council
Member questions.
Mayor Blankley opened Public Comment.
Jeanie Rizzuto thanked City Administrator Forbis for having a meeting with
her with regard to the beautification of downtown and inquired how she and
other members of the community could get involved in the committee.
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Regular Meeting Minutes
Ron Kirkish opined that downtown business owners should have longer
terms in the standing committee as opposed to the proposed one year.
Terence Fugazzi stated that the City should enforce the current codes.
There being no further speakers, Mayor Blankley closed Public Comment.
Motion:
•To continue the current reporting structure for Council to receive
information concerning Downtown-related projects/issues;
•To form a City Council Downtown Committee for two years with the
first year focusing on the nine goals, and year two focusing on new
additional goals; and
•Council flesh out the goal parameters and the structure of the
committee at the March 13, 2023 City Council / Priority Setting
Workshop.
RESULT: Pass
MOVER: Rebeca Armendariz, Council Member
SECONDER: Fred Tovar, Council Member
AYES: Council Member Armendariz, Council Member Cline, Council Member
Marques, Council Member Tovar
NAYS: Mayor Pro Tempore Bracco, Council Member Hilton, Mayor Blankley
12.CITY ADMINISTRATOR'S REPORTS
City Administrator Forbis provided an update on the Shark Ice Rink Arena and housing
update efforts.
12.1.PG&E Scheduling Impacts on City Projects
Director of Public Works Jordan provided a brief report and responded to Council
Member questions.
12.2.Downtown Parking Lot Update
Director of Public Works Jordan provided a brief report and responded to Council
Member questions.
13.CITY ATTORNEY'S REPORTS
City Attorney Faber gave an update on the Civil Grand Jury Report and Housing Element.
14.CLOSED SESSION
14.1.Conference with Negotiator – Collective Bargaining Unit Pursuant to
Government Code Section 54957.6, Gilroy City Code Section 17A.11 (4)
Collective Bargaining Unit: Gilroy Police Officers Association, Inc.,
Representing Gilroy Police Officers;
City Negotiators: Jimmy Forbis, City Administrator; LeeAnn McPhillips, Assistant
City Administrator/Administrative Services & Human Resources Director;
Anticipated Issue(s) Under Negotiation: Wages, Hours, Benefits, Working
Conditions; Memorandum of Understanding: MOU Between City of Gilroy & Gilroy
Police Officers
The item was postponed to the February 27, 2023 City Council Regular Meeting.
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February 6, 2023 | 6:00 PM Page 7 of 7 City Council
Regular Meeting Minutes
15.ADJOURN TO OPEN SESSION
N/A.
16.ADJOURNMENT
The meeting was adjourned by Mayor Blankley at 8:00 PM.
I HEREBY CERTIFY that the foregoing minutes were duly and regularly adopted at a regular
meeting of the City Council of the City of Gilroy.
/s/Thai Nam Pham, CMC, CPMC
City Clerk
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Page 1 of 3
City of Gilroy
STAFF REPORT
Agenda Item Title:Adoption of a Resolution Approving Budget
Amendments in Fiscal Year 2022-23 Adding $43,529
from the Board of State and Community Corrections
Officer Wellness and Mental Health Grant Program to
the Police Department Grants Fund.
Meeting Date:February 27, 2023
From:Jimmy Forbis, City Administrator
Department:Police
Submitted By:Pedro Espinoza, Police Chief
Prepared By:Patricia Vigil, Management Analyst
STRATEGIC PLAN GOALS Not Applicable
RECOMMENDATION
Adopt a resolution of the City Council of the City of Gilroy approving budget
amendments for Fiscal Year 2022-23 in the Police Department Grants Fund.
EXECUTIVE SUMMARY
The Budget Act of 2022 (Assembly Bill 178, Chapter 45, Statutes of 2022) established
the Board of State and Community Corrections (BSCC) Officer Wellness and Mental
Health Grant Program which provides $50 million for city and county law enforcement
agencies for the purpose of improving officer wellness and expanding mental health
sources.
BACKGROUND
In June 2022, Governor Newsom signed the Budget Act of 2022 placing a spending
plan to include $50 million towards:
•Establishing or expanding officer wellness units,
•Establishing or expanding peer support units,
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Adoption of a Resolution Approving Budget Amendments in Fiscal Year 2022-23 Adding $43,529
from the Board of State and Community Corrections Officer Wellness and Mental Health Grant
Program to the Police Department Grants Fund.
City of Gilroy Page 2 of 3 February 27, 2023
•Services provided by licensed mental health professional, counselor, or other
professionals that work with law enforcement,
•Expanding multi agency mutual aid programs focused on officer wellness and
mental health, and
•Other programs and services that are evidence-based or have a successful track
record of enhancing officer wellness.
ANALYSIS
The allocation of funds was determined by the number of officers described in Penal
Code section 830.1. The funding allocation Gilroy Police Department will receive on or
before February 15, 2023, is $43,529.
The Gilroy Police Department Critical Incident Support Debrief (CISD)/ Peer Support
Team is responsible for the long-term success of the Department’s wellness program.
The team consists of trained department personnel to include two Sergeants, five
Officers, one Public Safety Dispatcher, one Records Technician, three Police
Chaplains, and a retired Police Corporal who is also a licensed marriage and family
therapist. The CISD Team is available to help all department personnel in the aftermath
of a critical incident such as mass-casualty events, line of duty deaths, colleague
suicide, and calls for service involving traumatic scenes.
CISD Team members attend P.O.S.T. reimbursable training including Critical Incident
Response and Critical Incident Stress Debrief. Members of CISD avail themselves to
counsel coworkers or to help guide coworkers to professional service providers.
A core goal of the Police Department work plan is to implement an employee wellness
and resiliency program. The funds will be used with the focus of developing and
expanding the CISD goals, incorporating a resiliency component, as well as programs
to assist police personnel with their physical and mental health.
ALTERNATIVES
Council may reject the recommendation to appropriate the BSCC Officer Wellness and
Mental Health Grant Funds for $43,529 into the FY23 budget. Staff does not
recommend this alternative as funds would not be available to further enhance
Department wellness goals.
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Adoption of a Resolution Approving Budget Amendments in Fiscal Year 2022-23 Adding $43,529
from the Board of State and Community Corrections Officer Wellness and Mental Health Grant
Program to the Police Department Grants Fund.
City of Gilroy Page 3 of 3 February 27, 2023
FISCAL IMPACT/FUNDING SOURCE
Approval of this action would increase revenue and expenditure appropriations to the
Police Department Grants Fund, by $43,529 in the FY23 budget.
Program/Project Cost Amount
30BSCCWell-Prog Exp (2253000-52610)
30BSCCWell-State (2253000-43120)$43,529.13
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RESOLUTION NO. 2023-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GILROY AMENDING THE BUDGET FOR THE CITY OF
GILROY FOR FISCAL YEAR 2022-2023 IN THE POLICE
DEPARTMENT GRANTS FUND 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 a proposed
amendment to said budget for Fiscal Year 2022-2023 for the City of Gilroy in the staff
report dated February 27, 2023 for the Police Department Grants Fund, appropriating
funding received from the Bureau of State and Community Corrections; and
WHEREAS, the City Council has carefully examined and considered the same and
is satisfied with said budget amendments.
NOW, THEREFORE, BE IT RESOLVED THAT appropriations in the Police
Department Grants Fund, is hereby increased by $43,529 for Fiscal Year 2022-2023.
PASSED AND ADOPTED this 27th day of February 2023 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
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Page 1 of 4
City of Gilroy
STAFF REPORT
Agenda Item Title:Resolution of the City Council of the City of Gilroy
Declaring Weeds a Nuisance
Meeting Date:February 27, 2023
From:Jimmy Forbis, City Administrator
Department:Fire
Submitted By:Jim Wyatt, Fire Chief
Prepared By:Jonathan Crick, Deputy Fire Marshal
STRATEGIC PLAN GOALS Not Applicable
RECOMMENDATION
Council adopt the resolution declaring weeds and accumulated refuse a nuisance in
order to commence the 2023 weed abatement process and program for the City of
Gilroy.
EXECUTIVE SUMMARY
Gilroy City Code, Chapter 12, Article III, establishes a procedure for the abatement of
weeds and refuse. The annual weed and refuse abatement program includes an initial
resolution declaring weeds and refuse a public nuisance. The resolution sets April 17,
2023, for a public hearing of the list of properties subject to abatement. The list created
for public hearing includes sites identified as having a weed or refuse problem in the
current year as well as during any one of the prior three years. Adoption of the list at the
public hearing provides authority for the City (or its contractor) to perform the abatement
of weeds and/or refuse for the listed sites and provides for cost recovery by adding it to
the property owner’s property tax bill as an assessment.
BACKGROUND
The Santa Clara County Weed Abatement Program began in the mid-1970s to reduce
the spread of wildfire. The Santa Clara County Weed Abatement Program provides
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Resolution of the City Council of the City of Gilroy Declaring Weeds a Nuisance
City of Gilroy Page 2 of 4 February 27, 2023
weed abatement services for 10 cities in Santa Clara County and the unincorporated
areas of Santa Clara County. Pursuant to an updated agreement signed in 2021
between the City of Gilroy and the Santa Clara County Agriculture Commissioner’s
Office, the County Vegetation Management Program has been implementing the weed
abatement program as a contractor to the City. Under the agreement, all abatement
activities are conducted by the County including the noticing of property owners,
property inspections, and the collection of abatement fees and inspection costs. The
City is responsible for adopting necessary resolutions and conducting public hearings
on the matter.
ANALYSIS
Program Details
The list created for the public hearings includes sites identified as having a weed or
refuse problem in the current year as well as during any one of the prior three years.
County staff will mail the initial abatement notice to identified property owners within
approximately two weeks of the resolution being adopted. Required information in the
weed abatement notice includes the public hearing date, instructions on the proper
abatement of the sites, and the May 15, 2023 deadline for abatement activities. In
addition, the notice also identifies the consequences of not meeting the deadline.
All identified sites will be required to pay the initial inspection fee, currently set at $92. If
a site is abated by the May 15, 2023 abatement deadline then additional fees, such as
re-inspection fees and/or abatement oversight fees, will not be assessed. The property
owner is required to maintain the abated site and failure to do so will result in the
assessment of additional fees. All properties must be free of fire hazards throughout
the year to meet minimum safety standards.
Sites that are identified to have weed and/or refuse problems will remain on the list for
at least three years. However, property owners can have their property removed from
the list. For instance, a site that has achieved three “compliant” years in a row, or a
vacant site that has since been developed and is fully landscaped may be removed
from the list.
After the initial outreach, the County will also send all property owners a reminder letter
30 days prior to the May 15, 2023 abatement deadline.
After May 15, 2023, the County will conduct inspections and notify those property
owners who have not abated their properties. For sites not in the Wildland Urban
Interface (WUI) Hazardous Fire Area, the property owner has two weeks to complete
the work. If abatement is completed prior to the next inspection, these properties will not
be subject to additional fees.
The two-week extension is not provided to properties in the WUI Hazardous Fire Area
because these areas are considered to have high fire hazards. In addition, the Public
Resources Code requires weed abatement in these areas without any extensions. For
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Resolution of the City Council of the City of Gilroy Declaring Weeds a Nuisance
City of Gilroy Page 3 of 4 February 27, 2023
sites in the WUI Hazardous Fire Area, the County will immediately assign the site for
abatement by a private contractor. Any site that is abated by the County will be
assessed the inspection fee ($92), the failed inspection fee ($519), and the cost
incurred by the abatement contractor, which is based primarily on the square footage of
the site, as well as the abatement oversight cost ($891).
Since the implementation of this program in 2010, the number of sites on the County’s
list has fluctuated from year to year but the numbers for Gilroy have decreased since
2017. In Gilroy, there were: 282 sites identified in 2017, 166 sites in 2018, 174 sites in
2019, 146 sites in 2020, 150 in 2021, 147 for 2022, and 166 for 2023.
Key dates associated with this year’s program are as follows:
February 27, 2023 City Council Resolution of Public Nuisance
March 13, 2023* County Notification to Listed Property Owners
April 17, 2023 Public hearing to consider List of Properties requiring abatement
May 1, 2023* County Notification of Abatement Deadline
May 15, 2023 Abatement Deadline
May 30, 2023* County conducts initial inspections
June 13, 2023* Extended Deadline for non-WUI properties only
August 7, 2023* Public hearing for City Council to Authorize Assessments
*Dates are approximate at this time and provide an estimate as determined by the
responsible Agency.
ALTERNATIVES
There are no alternatives. Section 12.48 of Chapter 12 of the Gilroy Municipal Code
requires that City Council pass a resolution declaring weeds and accumulated refuse to
be a public nuisance. Chapter 12 further requires that City Council order the Fire Chief
to implement the weed abatement process.
FISCAL IMPACT/FUNDING SOURCE
The use of the County as a contract agency to carry out their portions of the program
has been self-funded through cost recovery from property owners that have failed to
abate their sites. The Fire Marshal’s office absorbs the staffing cost for coordination and
communication with the County, the pre-hearing meeting when a property owner
appeals the fees, and processing of the Council Resolutions and Public Hearings.
If the County does not collect adequate funds to meet the program budget, they will
prorate the shortfall to the cities based on the percentage of the properties from each
City in the program. We will not know until later in the year if there is a budget shortfall
because abatement activities will continue through October. Historically, the County has
not had a budget shortfall because they have collected adequate fees directly from the
property owners to cover the cost of the program.
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Resolution of the City Council of the City of Gilroy Declaring Weeds a Nuisance
City of Gilroy Page 4 of 4 February 27, 2023
PUBLIC OUTREACH
As part of the annual program, property owners receive two Weed and Refuse
Abatement notices from the Santa Clara County Weed Abatement Program that clearly
identify the requirements of the program. Pursuant to the program requirements, the
County also notifies property owners when their properties fail inspections. The City of
Gilroy performs a variety of fire prevention public outreach, including weed abatement,
in coordination with the Public Information Office/Public Communication & Engagement
Manager. Such outreach includes a combination of social media, Gilroy Email Express,
and utility bill insert mailings.
NEXT STEPS
Once Council adopts the resolution, the public hearing of sites needing abatement will
be set for April 17, 2023.
In addition, a report of the property assessments will be presented to the City Council at
a public hearing on August 7, 2023. Prior to the hearing, property owners are invited to
contact the Fire Marshal to review any assessments they believe are in error. A final list
will be presented to the City Council for approval of the assessment. The County
Property Tax Assessor will then place the fees on the next property tax bill as an
assessment.
Attachments:
1. Draft Resolution
2. 2023 Gilroy Commencement Report (Excel spreadsheet of non-compliant properties
for weed abatement)
7.3
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RESOLUTION NO. 2023-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GILROY DECLARING CERTAIN WEEDS GROWING IN
THE CITY OF GILROY AND ACCUMULATIONS OF
REFUSE IN THE CITY OF GILROY TO BE A PUBLIC
NUISANCE, DESCRIBING WEEDS AND REFUSE WHICH
CONSTITUTE SUCH NUISANCE, AND PROVIDING
NOTICE OF THE ADOPTION OF THE RESOLUTION BY
PUBLICATION THEREOF
WHEREAS, certain weeds are growing in the City of Gilroy (“City”) upon the
various streets, alleys, sidewalks and upon private property, which weeds bear seeds of
a wingy or downy nature, or which may attain such growth as to become, when dry, a fire
menace, or which are otherwise noxious and dangerous; and
WHEREAS, certain refuse is accumulating in the City upon public and private
property; and
WHEREAS, said weeds and refuse constitute a public nuisance.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Gilroy
as follows:
1. That such weeds and refuse do now constitute and will continue to constitute
a public nuisance, and it is ordered that said public nuisance be abated in the
manner provided by Article III of Chapter 12 of the Gilroy City Code.
2. That said nuisance exists upon all of the streets, alleys, sidewalks and private
property within said City as shown, described and delineated on the several
maps of the property in the City which are recorded in the Office of the County
Assessor of the County of Santa Clara, reference in each instance for the
description of any particular street, alley or private property being hereby made
to the several maps aforesaid, and in the event of there being several
subdivision maps on which said lots are shown, reference is hereby made to
the latest subdivision map.
3. That it is ordered that Monday, the 17th of April 2023, at the hour of 6:00 o'clock
p.m. in the Council Chambers of the City Council of the City, 7351 Rosanna
Street, Gilroy, California, is hereby fixed as the time and place when objections
to the proposed destruction or removal of said weeds and refuse shall be heard
and given due consideration.
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Ordinance No. 2023-XX
Declaring Weeds a Public Nuisance
City Council Regular Meeting | February 27, 2023
Page 2 of 2
4. That the Chief of the Fire Department of the City is hereby ordered and directed
to cause notice of the adoption of this resolution and notice of said hearing to
be given to all of the affected property owners at their stated mailing address
on the latest tax assessor’s role, and also to be given in the manner and form
provided in Sections 14.29 and 12.53 of the Gilroy City Code, and to cause
said notice to be published in the City, at least ten (10) days prior to said
hearing; and
5. That nothing in this Resolution prohibits the issuance of citations for violations
of City Code Section 12.46 or City Fire Code with regards to Section 304.1.2.
PASSED and ADOPTED this 27th day of February 2023 by the following roll call
vote:
AYES:COUNCIL MEMBERS:
NOES:COUNCIL MEMBERS:
ABSTAIN:COUNCIL MEMBERS:
ABSENT:COUNCIL MEMBERS:
APPROVED:
Marie Blankley, Chair
ATTEST:
_______________________
Thai Nam Pham, City Clerk
7.3
p. 41 of 530
Situs APN CITY/STATE
2023 WEED ABATEMENT PROGRAM
COMMENCEMENT REPORT
CITY OF GILROY
TRA
Exhibit A
MARQUES, ALBERT 2020 ROCKROSE CT GILROY CA 95020-7931
02-0018340WINTERCT783-03-0731
SUNSET HILLS DEVELOPMENT LLC 575 SOUTHSIDE DR STE C GILROY CA 95020
02-0018351WINTERCT783-03-0772
HOEY RANCH COMPANY 2485 HECKER PASS HY GILROY CA 95020-8802
02-004NO SITUS 783-04-0323
SEVILLA, JERRY M AND CUNANAN, 'PO BOX 5175 ARAMCO MC DHAHRAN 31311
02-0041920MANTELLIDR783-45-0164
ENTERPRISE REI 8 LLC 10440 DE ANZA BL S STE D5ACUPERTINO CA 95014
02-0040HOLLYHOCKSLN783-45-0445
AHMADI, AMINREZA 'P O BOX 608 LOS GATOS CA 95030
02-0042320WILDROSECT783-46-0396
LE, ANH & IPX SERVICES INC 682 KAWEAH AVE CLOVIS CA 93619
2004783-46-0797
ENTERPRISE REI 8 LLC 24168 BIG BASIN WY SARATOGA CA 95070
02-0040SUNFLOWERCL783-47-0038
SHEVCHENKO, DENIS AND REBECA 9283 BRIARBERRY LN GILROY CA 95020-8210
02-0019283BRIARBERRYLN783-50-0069
ARDANUY, PAUL AND JACQUELYN M 1383 PHEASANT DR GILROY CA 95020-8203
02-0011383PHEASANTDR783-50-05010
PALMER, MARY L 1463 PHEASANT DR GILROY CA 95020-8219
02-0011463PHEASANTDR783-50-05811
SAULAN, KIMCHAU THI TRUSTEE 4125 HECKER PASS RD GILROY CA 95020
02-0018772FOXGLOVECT783-52-01912
KOLLAREDDY, SRIDHAR 7948 MCCLELLAN RD APT 1 CUPERTINO CA 95014
02-0018775WILD IRIS DR 783-52-02913
ZARGARIAN, HELGA 8755 WILD IRIS DR GILROY CA 95020-0000
02-0018755WILD IRIS DR 783-52-03114
VARGAS, ANABEL AND GOMEZ, 1355 ST FRANCIS ST REDWOOD CITY CA 94061
20018745WILD IRIS DR 783-52-03215
SANTO, EDWIN ICHIRO TRUSTEE 1381 PEREGRINE DR GILROY CA 95020-0000
02-0011381PEREGRINEDR783-55-01816
KARBALAEINEMATMOEINI, 2121 CRUDEN BAY WY GILROY CA 95020-0000
02-0042354BANYANST783-65-02217
WOODWARD, DEBBIE 9261 TEA TREE CT GILROY CA 95020-0000
02-0049261TEA TREE CT 783-72-00618
HY, SANG AND YEH, WEN CHUAN 1841 CAROB CT GILROY CA 95020-0000
02-0041881CAROBCT783-72-01119
IYER, EASHWAR SUBRAMANIAM 1830 CAROB CT GILROY CA 95020-0000
02-0041830CAROBCT783-72-01620
NGUYEN, HENRY H ET AL 6971 SPUMANTE WY GILROY CA 95020-0000
02-0041820CAROBCT783-72-01721
OPINSKI, ROSE 2626 FALLBROOK DR MERCED CA 95340
02-0041810CAROBCT783-72-01822
RAMM, ANGELA DAVINA MARTINEZ 574 BLAIRBURRY WY SAN JOSE CA 95123-1303
02-0049145TEA TREE WY 783-72-02023
CHAKAMIAN, SANJAR AND 1940 PEAR DR MORGAN HILL CA 95037-0000
02-0049045TEA TREE WY 783-72-02324
Page 1Santa Clara County Weed Abatement Program24 records of 166
7.3
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Situs APN CITY/STATE
2023 WEED ABATEMENT PROGRAM
COMMENCEMENT REPORT
CITY OF GILROY
TRA
Exhibit A
WORBOYS, TIMOTHY D TRUSTEE 9050 TEA TREE WY GILROY CA 95020-0000
02-0049050TEA TREE WY 783-72-02425
ATLLURI SASI K AND SURAPANENI 10800 MAXINE AVE CUPERTINO CA 95014-0120
20049035TEA TREE WY 783-72-02526
DO NGOC BICH THI ET AL 979 STORY RD #7024 SAN JOSE CA 95122
20049030TEA TREE WY 783-72-02627
KOLLAREDDY, USHARANI ET AL 7948 MCCLELLAN RD APT 1 CUPERTINO CA 95014
02-0049025MIMOSACT783-72-02728
THIEN, TRACY 38 PARK FLETCHER PL SAN JOSE CA 95136-2403
02-0048962TEA TREE WY 783-72-03029
UNGER, DAVID AND KHAWAJA, 8981 TEA TREE WY GILROY CA 95020-0000
02-0048981TEA TREE WY 783-72-03130
BHATTARAI, ATUL R AND 1660 WHEATLEY PL SAN JOSE CA 95121-0000
02-0048971TEA TREE WY 783-72-03331
PHAM, LAN ET AL 1085 MICHIGAN AV SAN JOSE CA 95125-2417
02-0048950MIMOSACT783-72-03532
INNEH, EMMANUEL AND JENNIFER 1710 VALLEY OAKS DR GILROY CA 95020
02-0048955MIMOSACT783-72-03633
NAYYAR, SAPNA ET AL 2204 BANYAN CT GILROY CA 95020-0000
02-0042204BANYANCT783-72-03934
ROBLES, RONALD E AND MARIA R 1225 VIENNA DR #251 SUNNYVALE CA 94089
02-0042203BANYANCT783-72-04035
NAKANO, NANCY N ET AL 2224 BANYAN CT GILROY CA 95020
02-0042224BANYANCT783-72-04236
NGUYEN, PHU AND DOAN, LILY 3339 VANGORN WY SAN JOSE CA 95121-2555
02-0049210MAHOGANYCT783-72-04537
ZHANG, HONGXIN AND TANG, WEI 2253 BANYAN CT GILROY CA 95020-0000
02-0042253BANYANCT783-72-05038
PREMNATH, FLEMING J AND 2356 PATRICIA DR SANTA CLARA CA 95050-5018
20042273BANYANCT783-72-05139
JEONG JONGHUN AND CHOI YUNHEE 'PO BOX 10652 SAN JOSE CA 95127
20042283BANYANCT783-72-05240
KRUPA, STANISLAW TRUSTEE & ET 901 CALLE SERRA SAN DIMAS CA 91773
02-0042202COLUMBINECT783-72-06141
RAMIREZ, PEDRO AND JOSEFINA 2725 SCOTTSDALE DR SAN JOSE CA 95148-3427
02-0042251MANTELLIDR783-72-06642
DHALIWAL, JASDEEP S ET AL 39224 GUARDINO DR 216 FREMONT CA 94538
02-0011681LONGMEADOCT783-75-08143
LEAL, AMADOR AND PALMINA 75 FARRELL AV GILROY CA 95020-7616
02-00175FARRELLAV790-07-00644
KUANG, WEIWEI 1952 EISENHOWER DR SANTA CLARA CA 95054-1621
02-001NO SITUS 790-07-08545
KUANG, WEIWEI 1952 EISENHOWER DR SANTA CLARA CA 95054-1621
02-001NO SITUS 790-07-08646
KUANG, WEIWEI 1952 EISENHOWER DR SANTA CLARA CA 95054-1621
02-001NO SITUS 790-07-08747
KUANG, WEIWEI 1952 EISENHOWER DR SANTA CLARA CA 95054-1621
02-001NO SITUS 790-07-08848
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Exhibit A
MARGARETICH, BOZO AND VANJA 946 STANLEY AV LOS ALTOS CA 94024-5067
02-0018877MONTEREYRD790-15-03649
BROOKS, JULIA M ET AL 9145 JARDIN WY GILROY CA 95020
02-0019145JARDINWY790-16-25750
D R HORTON BAY INC 3000 EXECUTIVE PY STE 100 SAN RAMON CA 94583
02-0019130KERNAV790-17-00251
D R HORTON BAY INC 3000 EXECUTIVE PY STE 100 SAN RAMON CA 94583
02-0019160KERNAV790-17-00352
TORRES, ALBERT 8401 DIANE CT GILROY CA 95020-4213
02-0008401DIANECT790-30-07653
FLORES, ANTHONY R PO BOX 1557 GILROY CA 95021-1557
02-000401BROADWAYST790-33-01954
HOWSON INDUSTRIES LLC 1648 MULBERRY LN SAN JOSE CA 95125-4942
02-0000CHURCHST790-35-00155
MA, WEIMIN TRUSTEE & ET AL 103 CHIPPENDALE CT LOS GATOS CA 95032
02-0008051CHURCHST790-35-00256
ROMAN CATHOLIC BISHOP OF SAN 11 FIRST ST GILROY CA 95020
02-0000CHURCHST790-35-00857
HOWSON INDUSTRIES LLC 1648 MULBERRY LN SAN JOSE CA 95125-4942
02-0000CHURCHST790-36-00258
INTERNATIONAL CHURCH OF THE 8335 CHURCH ST GILROY CA 95020
02-0008335CHURCHST790-36-03959
S A PROPERTIES GROUP LLC 5820 STONERIDGE MALL RD PLEASANTON CA 94588
02-00113751STST790-39-01960
YOUMANS, KRAIG AND FORTINO, 12005 TURLOCK AV SAN MARTIN CA 95046-9432
02-00113551STST790-39-03061
GORAYA, MANU K 860 MAPLE AV SAN MARTIN CA 95046-9538
02-0018771CHURCHST790-53-08762
TEMPLE SAN JOSE LLC 527 SIMAS DR MILPITAS CA 95035-4723
02-001108CHICKADEELN790-66-05763
7711 MONTEREY ROAD, LLC 7711 MONTEREY RD GILROY CA 95020
20007733MONTEREYRD799-03-05464
7711 MONTEREY RD LLC 0 305 SAN JOSE CA 95138
02-0007733MONTEREYRD799-03-05465
7711 MONTEREY RD LLC 7711 MONTEREY RD GILROY CA 95020
20007711MONTEREYRD799-03-05566
KAUR, SANDEEP AND SINGH, 3117 OAKGATE WY SAN JOSE CA 95148-3026
02-0007273EIGLEBERRYST799-09-02867
BAINS, JAGJIT SINGH 3435 HARBOR CT SAN JOSE CA 95127-4311
02-0000EIGLEBERRYST799-10-04268
DIAZ, JUAN A 'PO BOX 193 SAN MARTIN CA 95046
02-0001959THST799-10-05769
DING, ANDREW 7040 CHURCH ST GILROY CA 95020-6410
02-0007040CHURCHST799-11-06870
GOLDEN BRIDGE PROPERTIES LLC 1669 2 HOLLENBECK AV 185 SUNNYVALE CA 94087
02-000NO SITUS 799-11-06971
JEUNG MICHAEL A ET AL 7421 HANNA ST GILROY CA 95020
20007421HANNAST799-18-03172
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Exhibit A
MONSEF, CYRUS 6700 CHURCH ST GILROY CA 95020-6508
02-0016700CHURCHST799-33-00173
TMP ROYAL WAY LLC 5671 SANTA TERESA BL STE SAN JOSE CA 95123
02-0010FILBRODR799-44-09374
TMP ROYAL WAY LLC 5671 SANTA TERESA BL STE SAN JOSE CA 95123
02-0010ROYALWY799-44-09475
TMP ROYAL WAY LLC 5671 SANTA TERESA BL STE SAN JOSE CA 95123
02-0010ROYALWY799-44-09576
TMP ROYAL WAY LLC 5671 SANTA TERESA BL STE SAN JOSE CA 95123
02-0010ROYALWY799-44-09677
TMP ROYAL WAY LLC 5671 SANTA TERESA BL STE SAN JOSE CA 95123
02-0010ROYALWY799-44-09778
TMP ROYAL WAY LLC 5671 SANTA TERESA BL STE SAN JOSE CA 95123
02-0010ROYALWY799-44-09879
TMP ROYAL WAY LLC 5671 SANTA TERESA BL STE SAN JOSE CA 95123
02-0010THOMASRD799-44-10980
TMP ROYAL WAY LLC 5671 SANTA TERESA BL STE SAN JOSE CA 95123
02-001321LUCHESSAAV799-44-11081
EAGLE GARDEN LLC 21701 STEVENS CRK BLV CUPERTINO CA 95014
02-00114101STST808-01-02182
EAGLE GARDEN LLC 21701 STEVENS CRK BLV CUPERTINO CA 95014
02-0017890SANTA TERESA BL 808-01-02283
EAGLE GARDEN LLC 21701 STEVENS CRK BLV CUPERTINO CA 95014
02-00114901STST808-01-02384
PIROZZOLI, MONICA TRUSTEE & ET 366 5TH ST GILROY CA 95020
02-0010PONDEROSADR808-01-02485
CHRISTOPHER, DONALD C ET AL 305 BLOOMFIELD AV GILROY CA 95020
02-004NO SITUS 808-19-03086
COMMUNITY RESOURCESINC 480 STATE ST E STE 100 EAGLE ID 83616
02-001NO SITUSE 808-19-03187
SUNER CORPORATION 9761 ZUNI LN GILROY CA 95020-0000
02-0010THOMASLN808-20-00888
YAHYA, NAAIM A TRUSTEE & ET AL 1835 SULLIVAN CT MORGAN HILL CA 95037
200110WESTAV808-21-00989
THOMAS ROAD PROPERTIES LTD THE 7888 WREN AV D-143 GILROY CA 95020
02-0016201THOMASRD808-38-00190
CORP PRESI BISH CHURCH CHRIST 50 E NORTH TEMPLE FL 22 SALT LAKE CITY UT 84150-3620
02-0016151THOMASRD808-39-06691
HP AG LAND LLC 23 CORPORATE PL 150 NEWPORT BEACH CA 92625
02-001NO SITUS 810-20-02192
OWENS FINANCIAL GROUP INC 2221 OLYMPIC BL WALNUT CREEK CA 94595
02-0012740HECKER PASS RD 810-20-03393
WILLIAMS JAKIE C TRUSTEE & ET AL 1000 MESA RD GILROY CA 95020
02001810-28-02494
WILLIAMS, JAKIE C TRUSTEE & ET 1000 MESA RD GILROY CA 95020-6820
02-001925WILDFLOWERCT810-28-02695
WILLIAMS, JAKIE C TRUSTEE & ET 1000 MESA RD GILROY CA 95020-6820
02-001935WILDFLOWERCT810-28-02796
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Exhibit A
WILLIAMS, JAKIE C TRUSTEE & ET 1000 MESA RD GILROY CA 95020-6820
02-001945WILDFLOWERCT810-28-02897
WILLIAMS, JAKIE C TRUSTEE & ET 1000 MESA RD GILROY CA 95020-6820
02-001955WILDFLOWERCT810-28-02998
WILLIAMS, JAKIE C TRUSTEE & ET 1000 MESA RD GILROY CA 95020-6820
02-001950WILDFLOWERCT810-28-03299
WILLIAMS, JAKIE C TRUSTEE & ET 1000 MESA RD GILROY CA 95020-6820
02-001940WILDFLOWERCT810-28-033100
WILLIAMS, JAKIE C TRUSTEE & ET 1000 MESA RD GILROY CA 95020-6820
02-001930WILDFLOWERCT810-28-034101
WILLIAMS, JAKIE C TRUSTEE & ET 1000 MESA RD GILROY CA 95020-6820
02-001920WILDFLOWERCT810-28-035102
WILLIAMS, JAKIE C TRUSTEE & ET 1000 MESA RD GILROY CA 95020-6820
02-001910WILDFLOWERCT810-28-036103
WILLIAMS, JAKIE C TRUSTEE & ET 1000 MESA RD GILROY CA 95020-6820
02-001900WILDFLOWERCT810-28-037104
DO & PARTNERS LLC 9419 GERANIUM CL FOUNTAIN VALLEY CA 92708
02-0046675EAGLE RIDGE CT 810-60-018105
DO & PARTNERS LLC 9419 GERANIUM CL FOUNTAIN VALLEY CA 92708
02-0046685EAGLE RIDGE CT 810-60-019106
DO & PARTNERS LLC 9419 GERANIUM CL FOUNTAIN VALLEY CA 92708
02-0046695EAGLE RIDGE CT 810-60-020107
VILLAGE AT SANTA TERESA LP 1700 EL CAMINO REAL S 400 SAN MATEO CA 94402
02-0011520HECKER PASSS RD 810-66-012108
RADOSEVICH, ERIC J TRUSTEE 7518 FERNIE CT GILROY CA 95020-0000
02-0047518FERNIECT810-67-041109
DO & PARTNERS LLC 9419 GERANIUM CL FOUNTAIN VALLEY CA 92708
02-0046615EAGLE RIDGE CT 810-72-029110
DO & PARTNERS LLC 9419 GERANIUM CL FOUNTAIN VALLEY CA 92708
02-0046625EAGLE RIDGE CT 810-72-030111
DO & PARTNERS LLC 9419 GERANIUM CL FOUNTAIN VALLEY CA 92708
02-0046635EAGLE RIDGE CT 810-72-031112
DO & PARTNERS LLC 9419 GERANIUM CL FOUNTAIN VALLEY CA 92708
02-0046645EAGLE RIDGE CT 810-72-032113
DO & PARTNERS LLC 9419 GERANIUM CL FOUNTAIN VALLEY CA 92708
02-0046651EAGLE RIDGE CT 810-72-033114
DO & PARTNERS LLC 9419 GERANIUM CL FOUNTAIN VALLEY CA 92708
02-0046655EAGLE RIDGE CT 810-72-034115
DO & PARTNERS LLC 9419 GERANIUM CL FOUNTAIN VALLEY CA 92708
02-0046671EAGLE RIDGE CT 810-72-035116
UNION PACIFIC CO 10031 FOOTHILLS BLVD ROSEVILLE CA 95030
2001MONTEREYNU835-01-034117
UNION PACIFIC CO 10031 FOOTHILLS BLVD ROSEVILLE CA 95030
2001MONTEREYNU835-01-035118
HIGHLY VISUAL LLC 8840 FOREST ST GILROY CA 95020
2001MURRAYAV835-01-059119
ESPARZA ROBERT TRUSTEE 443 EL CAJON DR SAN JOSE CA 95111-3509
20018585MURRAYAV835-01-065120
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Exhibit A
SHELTON, G WILLIAM 1216 PALADIN WY PLEASANTON CA 94566
02-001210LAS ANIMAS AV 835-02-013121
UNION PACIFIC CO 10031 FOOTHILLS BLVD ROSEVILLE CA 95030
2001MONTEREYNU835-02-014122
CLOMONEY LLC 'PO BOX 60352 SUNNYVALE CA 94088
02-0010LAS ANIMAS AV 835-02-016123
CLOMONEY LLC 'PO BOX 60352 SUNNYVALE CA 94088
02-0010LAS ANIMAS AV 835-02-061124
ZEPEDA ALFREDO ET AL 1420 DUROUX RD LA MARQUE TX 77568
2001402MADISONCT835-03-059125
MONTANO, LYDIA R AND ALFRED 15191 KARL AV MONTE SERENO CA 95030-2229
02-001NO SITUS 835-04-067126
MONTANO, LYDIA R AND ALFRED 15191 KARL AV MONTE SERENO CA 95030-2229
02-001NO SITUS 835-04-068127
LAS ANIMAS DEVEL COLLC 'PO BOX 1772 GILROY CA 95021
02-001315LAS ANIMAS AV 835-05-006128
BALDEV MANN & GURMET MANN 832 BELL ST EAST PALO ALTO CA 94303
2001135LAS ANIMAS AV 835-05-007129
SHELTON G WILLIAM 1216 PALLADIN WAY PLEASANTON CA 94566
200155LAS ANIMAS AV 835-05-008130
GERA NICHOLAS TRUSTEE & ET AL 19341 MONTE VISTA DR SARATOGA CA 95070-6219
2001410COHANSEYAV835-05-016131
TES INVESTMENTS LLC 1754 TECHNOLOGY DR STE SAN JOSE CA 95110
2001405LAS ANIMAS AV 835-05-024132
8805 FORREST QOZB LLC 'PO BOX 787 DIABLO CA 94528
2001FORESTNU835-31-030133
HOLLER DYLAN R TRUSTEE 405 SPRING GROVE RD HOLLISTER CA 95023
2001FORESTNU835-31-031134
SWANSTON LANE LLC 18640 SUTTER BLVD STE 100 MORGAN HILL CA 95037
2000SWANSTONLN841-01-064135
CORIA EFRAIN AND CLAUDIA 7888 MONTEREY RD GILROY CA 95020
20007888MONTEREYRD841-02-009136
UNION PACIFIC CO 10031 FOOTHILLS BLVD ROSEVILLE CA 95030
2000NU841-02-046137
DRL PROPERTIES LLC 2545 MUIRFIELD WAY GILROY CA 95020
2000NU841-02-055138
PATEL JITENDRA AND NAYANA 39625 FREMONT BLVD FREMONT CA 94538
2000341LEWISST841-03-063139
RODRIGUEZ QUIRINO V AND 835 GREEN VALLEY RD WATSONVILLE CA 95076
2000311LEWISST841-03-070140
LIU DENG AND CHEN SASHA 400 PALM AVE MILLBRAE CA 94030
2000222MARTINST841-06-040141
SANCHEZ ELOY G AND ANGELICA M 7492 CHESTNUT ST GILROY CA 95020
20007492CHESTNUTST841-07-027142
TORRES-FERNANDEZ ELISA ET AL 7472 CHESTNUT ST GILROY CA 95020-5806
20007472CHESTNUTST841-07-043143
TORRES-FERNANDEZ, ELISA ET AL 7472 CHESTNUT ST GILROY CA 95020-5806
02-0007472CHESTNUTST841-07-043144
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Exhibit A
ZHENG SHAO LAN AND ZHU 7498 CHESTNUT ST GILROY CA 95020-5806
20007498CHESTNUTST841-07-049145
PACIFIC GAS AND ELECTRIC CO 111 ALMADEN BLVD SAN JOSE CA 95115
2001SOUTHFY841-10-039146
UNION PACIFIC CO 10031 FOOTHILLS BLVD ROSEVILLE CA 95030
2001SOUTHFY841-14-058147
UNION PACIFIC CO 10031 FOOTHILLS BLVD ROSEVILLE CA 95030
2001SOUTHFY841-14-059148
UNION PACIFIC CO 10031 FOOTHILLS BLVD ROSEVILLE CA 95030
2001841-14-060149
UNION PACIFIC CO 10031 FOOTHILLS BLVD ROSEVILLE CA 95030
2001841-14-072150
GARLIC FARM TRUCK CENTER LLC 5000 E 2ND ST UNIT G BENECIA CA 94510
20015870MONTEREYRD841-14-080151
MCCARTHY GILROY LLC 210 ALMENDRA AVE LOS GATOS CA 95030-7211
20016900CAMERONBL841-17-100152
MCCARTHY GILROY LLC 210 ALMENDRA AVE LOS GATOS CA 95030-7211
20016503CAMERONBL841-17-107153
UNITED NATURAL FOODS WEST INC 100 OLIVER ST FLR 18TH BOSTON MA '02110
2001841-17-121154
MARQUEZ, PRISCILLA A 402 HADLEY CT GILROY CA 95020-5839
02-000402HADLEYCT841-53-032155
NGUYEN THU TAM 2673 MCLAUGHLIN AVE SAN JOSE CA 95121-2752
2000841-53-066156
SOUTHPOINT BUSINESS PARK 'P O BOX 5368 SAN JOSE CA 95150
2001841-69-042157
CAPRARA JANICE TRUSTEE & ET AL 26769 EL CAMINO REAL GONZALES CA 93926
2001PACHECO PASS HY 841-70-014158
GILROY PARTNERS LLC 67 MOUNTAIN BLVD UNIT 201WARREN NJ '07059 2001HOLLOWAYRD841-70-026159
ROCHA JOE A AND VICTORIA M 575 SOUTHSIDE DR GILROY CA 95020
2001555HOLLOWAYRD841-70-037160
TEMPLE GILROY LLC 527 SIMAS DR MILPITAS CA 95035-4723
20016970CAMINO841-70-049161
SIEMPRE SOBRE EL DINERO LLC 190 MONTGOMERY ST N SAN JOSE CA 95110
02-0015885ROSSINLN841-72-001162
PULMUONE FOODS USA INC 2315 MOORE AVE FULLERTON CA 92833
2001560ROSSICT841-72-008163
LONESTAR CALIFORNIA INC 1501 BELVEDERE RD WEST PALM BEACH FL 33406
2001LUCHESSAEAV841-73-005164
HOANG VINCE AN TRI 5240 MONTEVERDE LN LINCOLN CA 95648
20015980TRAVEL PARK CL 841-75-011165
MCCARTHY GILROY LLC 210 ALMENDRA AVE LOS GATOS CA 95030-7211
20016601CAMERONBL841-84-009166
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Page 1 of 4
City of Gilroy
STAFF REPORT
Agenda Item Title:Tentative Map Time Extension Request for Greenfield
Subdivision approval to subdivide 8.36 acres into 14
residential lots, and dedication of 3.7 acres to Uvas
Creek Preserve, located at the northerly end of
Greenfield Drive, APN 808-20-008, Applicant James
Suner (TM 16-02)
Meeting Date:February 27, 2023
From:Jimmy Forbis, City Administrator
Department:Community Development
Submitted By:Sharon Goei, Community Development Director
Prepared By:Kraig Tambornini, Senior Planner
STRATEGIC PLAN GOALS Promote Safe Affordable Housing for All
RECOMMENDATION
Adopt a resolution approving a 12-month time extension of Tentative Map TM 16-02.
EXECUTIVE SUMMARY
On November 5, 2018, the City Council approved the Greenfield 14-lot subdivision for
an initial period of two years, through November 5, 2020. Legislative actions taken by
the State and City further extended project approval through November 30, 2022. The
applicant has filed an extension request in compliance with the State Subdivision Map
Act. Pursuant to the provisions of State law, a project qualifies for an extension of time
under the same conditions and circumstances under which it was originally approved.
No changes to conditions can be required except if necessary to comply with a
provision of state or federal law. Approval of this request would extend the permit
expiration date for TM 16-02 through to November 30, 2023.
BACKGROUND
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Tentative Map Time Extension Request for Greenfield Subdivision approval to subdivide 8.36
acres into 14 residential lots, and dedication of 3.7 acres to Uvas Creek Preserve, located at the
northerly end of Greenfield Drive, APN 808-20-008, Applicant James Suner (TM 16-02).
City of Gilroy Page 2 of 4 February 27, 2023
The City Council approved TM 16-02 on November 5, 2018, for 14 residential lots on
8.36 acres, via Resolution 2018-44. The approval included dedication of 3.7 acres as
public park space, resulting in a net density of 3 units per acre. The density and type of
development implements the site’s low density residential land use designation. A
mitigated negative declaration was also prepared and adopted for the project, with the
mitigations incorporated into the project conditions of approval.
The approval was granted for an initial period of two years, through November 5, 2020.
On June 1, 2020, City Council extended the expiration periods for all active entitlements
through May 31, 2021. This was in response to County and State Orders requiring
business closures during the COVID-19 pandemic. Subsequent to this action, on
September 30, 2020, the state legislature enacted AB 1561 which granted an additional
extension of 18 months to housing entitlements that were issued before March 4, 2020,
and that would expire before December 31, 2021. This had the effect to grant legislative
extensions for the project through November 30, 2022.
On November 30, 2022, the applicant paid fees and filed a request for a 12-month
extension to allow the processing of the final map and improvement plans. No other
changes to the approval have been requested; therefore, the time extension request
requires no additional review.
ANALYSIS
Staff has analyzed the time extension request and determined approval is
warranted based on the following:
Municipal Code and Subdivision Map Act:
The Subdivision Map Act, Government Code §66452.6(a), mandates an initial two-year
life for a tentative map, which may be extended by local ordinance for an additional 12
months. Gilroy City Code Section 21.41(i) provides that the City Council, at its
discretion, may extend approval of a tentative map for an additional 12 months.
Moreover, Government Code §66452.6(e) provides that a local agency may extend a
Tentative Map for an additional period or periods not to exceed six years. This provision
preempts City regulations that limit the number of extensions to three years.
Although granting an extension of the tentative map is discretionary, under Government
Code §66452.6(e), the courts have held that the local agency’s discretion is limited to
the length of the extension and that the local agency cannot add new conditions to the
tentative map. Under Government Code §66498.1 a local agency may condition or deny
a permit, approval, extension, or entitlement only if it determines any of the following:
(1) A failure to do so would place the residents of the subdivision or the immediate
community, or both, in a condition dangerous to their health or safety, or both.
(2) The condition or denial is required in order to comply with state or federal law.
7.4
p. 50 of 530
Tentative Map Time Extension Request for Greenfield Subdivision approval to subdivide 8.36
acres into 14 residential lots, and dedication of 3.7 acres to Uvas Creek Preserve, located at the
northerly end of Greenfield Drive, APN 808-20-008, Applicant James Suner (TM 16-02).
City of Gilroy Page 3 of 4 February 27, 2023
There were no specific health or safety concerns identified with the original approval.
There have been no material changes to the project site, conditions, or state or federal
laws that would warrant denial or revised conditions.
This first request would extend approval through November 30, 2023. During this time,
the applicant would need to pursue the process for recordation of a final map. The
applicant may also request an additional 12-month extension prior to the new expiration
date.
Housing Accountability Act:
In addition to the above, it is worth noting that since implementation of the Housing
Accountability Act in 1982, the intent of the law is to promote housing development in
response to the dire housing crisis in California. As a result, the State laws limit the
ability of local government to deny any new housing development. Government Code
Section 65589.5(j) states that a “proposed housing development project cannot be
denied if it complies with applicable, objective general plan, zoning, and subdivision
standards and criteria, including design review standards, in effect at the time that the
housing development project’s application is determined to be complete.”
In 2018, the original project was deemed complete and approved by City Council with
conditions of approval. The requested time extension considers the housing project to
be complete based on the fact that the development complies with applicable, objective
general plan, zoning, and subdivision standards and criteria, including design review
standards. At this time, the applicant proposes no changes to the approved project and
conditions of approval.
ALTERNATIVES
The City Council may deny the time extension. In this case, the City Council would need
to make the necessary findings to deny a tentative map. Staff does not recommend this
option.
FISCAL IMPACT/FUNDING SOURCE
No fiscal impacts are associated with this request for Council’s consideration and
determination. Collection of fees (as established by the City Council) for subsequent
review of the final map and improvement plans is adequate to cover the necessary
resources.
PUBLIC OUTREACH
Extensions are legislative actions that do not require notice and hearing.
NEXT STEPS
7.4
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Tentative Map Time Extension Request for Greenfield Subdivision approval to subdivide 8.36
acres into 14 residential lots, and dedication of 3.7 acres to Uvas Creek Preserve, located at the
northerly end of Greenfield Drive, APN 808-20-008, Applicant James Suner (TM 16-02).
City of Gilroy Page 4 of 4 February 27, 2023
Upon grant of the extension request, the applicant may proceed with initiation of the
final map process.
Attachments:
1. Vicinity Map
2. Time Extension Request
3. City Council Resolution No. 2018-44 (TM16-02 Approval)
4. Approved Tentative Parcel Map TM 16-02
5. Draft Resolution to Approve TM 16-02 Extension No. 1
7.4
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AERIAL PHOTOGRAPH AND SURROUNDING LAND USES FIGURE3AltaOakWayV il l a g e P la ceBrookWayBl a c kbe r ry Court
B e r r y b u s h Co u r t
Snowberry Ct
WestLuchessaAvenueGreenfield Drive
Cimino StreetAltaOakWayVillagePlace BrookWayBlackberry Court
Berrybush Court
Snowberry Ct
WestLuchessaAvenueGreenfield Drive
Cimino Street
Thomas RoadThomas Road
ResidentialGilroy High SchoolResidentialResidentialUvas CreekUvas CreekProject BoundaryAerial Source: Google Earth Pro, May 2, 2017. Photo Date: Apr. 20160 50 200 400 600 Feet
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7351 Rosanna Street, Gilroy, California 95020-6197
Telephone: (408) 846-0451 Fax: (408) 846-0429
http://www.cityofgilroy.org
November 16, 2018
James Suner
The James Group
2201 Columbine Court
Gilroy, CA 95020
Copy to:
Malcolm McPhail, Lead Pastor
New Hope Community Church
8886 Muraoka Drive
Gilroy, CA 95020
SUBJECT: Notice of Final Action (CC Resolution 2018-44)
Kristi A. Abrams
DIRECTOR
TM16-02 (# 16050031 ), Greenfield 14-Lot Residential Subdivision Project
Located on 8.36 acres at the end of Greenfield Drive (APN: 808-20-008).
Mr. Suner:
This letter is to confirm that on November 5, 2018, the City Council took action to
approve TM16-02 for a 14 lot subdivision on the subject property. The official decision
documentation City Council Resolution 2018-44 is attached for your records, which
contains the conditions of project approval and identifies any subsequent required
permits. Pursuant to the state map act, approval TM16-02 provides 24 months
(November 5, 2020) for the final map or an extension of time request to be filed. In
addition, the statutory period for challenging the CEQA environmental determination will
end 30 days from the date that the Notice of Determination has been filed with the
County Recorder's office.
Should you have any questions about this letter or the permitting process, please feel
free to contact me at kraig.tambornini@cityofgilroy.org or (408) 846-0214.
Respectfully,
Tamborrnhl
r Planner
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2 WHEREAS, the City Council held a duly noticed public hearing on October 15, 2018, and considered the public testimony, the Planning Com.mission recommendation, the City Council Staff Report� and· all other documentation related to application TM 16-02; and WHEREAS, the City Council continued the matter to November 5, 2018, with direction given to staff to meet with the applicant, and submit a resolution with revised conditions of approval reflecting recommendations of the City Council; and WHEREAS, using its independent judgement, and analysis based on deliberation and consideration of the materials · presented at the public hearings, including public testimony received, the City Council concludes the Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program prepared for TM 16-02 adequately assesses all potential environmental impacts of the project, mitigating potential impacts to a less than significant level, and that the project as proposed and conditioned conforms to the City's General Plan and elements thereof, the Gilroy City Code and all applicable · standards and criteria. Further, the City of Gilroy Community Development Departmentis the custodian for all documents pertaining to the FMND, including its adoption, andthe project.NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of Gilroy does hereby make findings required by the California Environmental Quality Act, the Gilroy City Code and the State Subdivision Map Act Section 664 7 4 and take action to adopt the Mitigating Negative Declaration and approving TM 16-02, as follows: SECTION I -CEQA Findings 1.Based upon the Record, the submissions by the Project Sponsor(s), theinformation in the staff report and provided from other interested parties, theoral testimony presented at this public hearing, and all other written materialssubmitted by all parties, the City Council hereby finds that, the contents ofMitigated Negative Declaration (MND) and the procedures through which theMND was prepared, publicized, and reviewed complied with the CaliforniaEnvironmental Quality A�t (California Public Resources Code Sections 21000et seq.) (CEQA). 14 California Code of Regulations Sections 15000 et seq.(the "CEQA Guidelines").2.The City Council further finds that the MND is adequate, accurate andobjective, reflected the independent analysis and judgment of the CityCouncil, and that the summary of comments and responses contained nosignificant revisions to the Draft Initial Study/fyfitigated Negative Declaration(ISIMND), and adopts the MND for the Project in compliance with CEQA.3.The City Council has reviewed and considered the IS/MND and the record asa whole and finds that there is no substantial evidence that the Project willhave a significant effect on the environment with the adoption of themitigation measures contained in the mitigation monitoring and reportingRESOLUTION 2018-44 7.4
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3 program (MMRP) to avoid potentially significant environmental effects associated with the Project, and hereby adopts the MND. 4.The City Council hereby adopts the Mitigation Monitoring and ReportingProgram for the project, incorporated herein. All required mitigation measuresidentified in the IS/MND and contained in the N1MRP are included asconditions of approval.5.The City Council further finds that since the MND was finalized, there havebeen no substantial project changes and no substantial changes in projectcircumstances that would require major revisions to the MND due to theinvolvement of new significant environmental effects or an increase in theseverity of previously identified significant impacts, and there is no newinformation of substantial importance that would change the conclusions setforth in the :MND.SECTION II -Tentative Map Findings 1.The subdivision request TM 16-02, including the design and improvement ofthe subdivision, would be substantially consistent with all applicable City ofGilroy General Plan goals, objectives, policies and programs, including thelow density residential land use designation given that the project, as proposedand conditioned, would:a.Promote infill residential development in an area designated for this typeof use and that would be compatible with the existing adjacent singlefamily residential neighborhoods, near parks and schools, and wouldprotect natural resources, which would be consistent with the StrategicDirection Chapter;b.Avoid encroachment into open space areas and provides a net density of 3units per acre within remaining buildable areas of the site, after dedicationof 3. 7 acres of land for public park and open space, which would besubstantially consistent with Community Design Chapter Policies 1.01,1.05, 1.09;c.Dedicate public land for the Uvas Creek Park Preserve open space, whichwould include extension of planned bicycle trails ( consistent with theadopted 1992 Uvas Creek Park Preserve Plan, the 2002 Park & RecreationSystem Master Plan and the 2005 Gilroy Trails Master.Plan), which wouldbe in substantial compliance with Public Facilities and Services Chapterpolicies 16.02, 16.04, 16.05, 16.12, and 16.14; andd.A void and protect sensitive open space habitat along Uvas Creek byproviding a setback of 150 feet from top of creek bank, satisfying theminimum setback of 100 feet from top of bank. and 35 feet setback fromthe edge of riparian habitat to the parcels, consistent with CommunityRESOLUTION 2018-44 7.4
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4 Resources Chapter policies 20.01, 20.02, 20.03, 20.06, 20.07, 20.08 and Action 20.B. e.The site is not covered by a specific plan document, thus no findings forconsistency are required for this criteria to comply with the StateSubdivision Map Act. However, right of way access to the site would beextended through a small corner of City open space property within the URanch Specific Plan area. This acquisition is minimal and would notmaterially impact the value, use or access for this existing open spaceamenity.2.The site is physically suited for the proposed development type and densitygiven that the site contains 4.66 acres of building area upland from portions ofthe property within the Uvas Creek Park Preserve riparian corridor openspace, which can accommodate a net density of 3 units per acre. Further, allproposed residential lots would be located upland of the flood plain alongUvas Creek, grading would be implemented in accordance with standardengineering practices and there are no unusual soils conditions associated withthe site that would preclude use of fill for development, and public utilitiesand infrastructure improvements needed in order to serve TM 16-01 · are inclose proximity, at the existing terminus of Greenfield Drive.3.TM 16-01 is consistent with the Gilroy City Code Zoning Ordinanceincluding the Rl District Standards, the Subdivision and Land DevelopmentCode, the State Subdivision Map Act, and all City ordinances, policies andstandards in effect as of the date the application was accepted as complete forprocessing on July 12, 2017, given that the development promotes �ingle ...family residential development with minimum 6,600 square foot lots sizes,improvements would comply with adopted City Engineering Standards andSpecifications for minimum 36 foot wide minimum paved private roadwaywidth, public utility easements, street trees, lighting, utility infrastructure,drainage and storm water management, and flood control,· and interimresidential dwelling unit allocations were been granted for the project on May17, 2016 and have not expired .4.The subdivision design and improvements would not result in environmentaldamage or injure fish or wildlife or their habitat, as identified in the MND,given that all significant environmental impacts associated with the projecthave been identified and would be mitigated to a less than significant level.5.The design of the applicant agrees with the necessity of and accepts allelements, requirements, and conditions of this resolution as being a reasonablemanner of preserving, protecting, providing for, and fostering the health,safety, and welfare of the citizenry in general and the persons who work, visitor live in this subdivision in particular.RESOLUTION 2018-44 7.4
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6.The subdivision design and improvements will not conflict with easements
acquired by the public at larger for access through or use of the property
within the proposed subdivision as follows:
a.As proposed an easement for Santa Clara Valley Water District shall be
preserved and maintained within the proposed Parcel A dedication.
b.As proposed and conditioned, the development would complete public
trails through the site, connect the trails with the proposed development
and adjacent developments to the east and west.
c.As conditioned, would provide public access through the development
along the proposed private roadway and sidewalks.
d.As conditioned, the developer would acquire access across O .2 acres of
land owned by Glen Loma Ranch as public open space, for additional road
right of way as necessary to extend Greenfield Drive into the property.
This acquisition for roadway access is minimal and necessary to provide
suitable access for development of the site consistent with the General
Plan, and would not conflict with nor materially diminish the use these
affected public open space lands.
7.The development is adjacent to wildlife vegetation and requires additional
findings to be made pursuant to the Subdivision Map Act for properties within
wildland urban interface areas. As conditioned by the Fire Department, the
findings for approval of development in wildland urban interface areas would
be satisfied as follows:
a.The project would be required to comply with vegetation management
requirements for property within potential fire hazard areas. This would
include ongoing specific vegetation management practices that would be
enforced by the City and made the responsibility of the property owners
and homeowners association for private open space vegetation of Lots 9-
14, and the City for the Uvas Creek Park Preserve open space. Based on
the proposed plans and conditions, the project would be consistent with
the fire safety regulations adopted by the State and City Fire Department
pursuant to Public Resources Code Sections 4290 and 4291.
b.Adequate fire suppression services would be available to the area based on
the provision of adequate access roads and fire hydrants that would be
installed to serve the project.
c.Ingress and egress is provided for the subdivision that meets minim.um
standards for 20 foot wide paved roadway, grades not exceeding 15
percent, and adequate turning radius provided for maneuverability through
the development.
8.As proposed and conditioned, the project would comply with all ordinances,
policies and standards in effect as of June 2017 (when the project application
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was accepted ·as complete, as well as any standards adopted by the state for
the purpose of protecting public health and safety.
SECTION II -Actions
1.The City Council hereby adopts the Mitigated Negative Declaration and the
mitigation monitoring and reporting program prepared for TM 16-02
Greenfield Drive 14 Lot Residential Subdivision project.
2.The City Council hereby approves TM 16-02, subject to the conditions of
approval set forth in Exhibit "A" attached hereto.
PASSED AND ADOPTED this 5th day ofNovember, 2018, by the following roll call
vote:
AYES: COUNCILMEMBERS: BLANKLEY, BRACCO, HARNEY, LEROE-MUNOZ, TOVAR, TUCKER and VELASCO
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: NONE
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7 EXHIBIT A CONDITIONS OF APPROVAL TM 16-02 Note: The following abbreviations identify the City department or division responsible for determining compliance with these conditions. The first group listed has responsibility for compliance at plan check, the second confirms compliance with the condition at final inspection, prior to final occupancy or issuance of a certificate of occupancy� or as specified in the condition. If only one group is identified, they have responsibilities from initial review through compliance verification. An internal condition reference number is located at the end of each condition (e.g. G-1 or MND-S2). RESPONSIBLE DEPARTMENTSffiIVISIONS BL Building Division/Inspectors PK Parks/Landscape Design CA City Attorney PL Planning Division cc Chemical Control Agency PW Public Works/Engineering FP Fire Prevention TR Traffic Division PD Police Department WW Wastewater/Source Control GENERAL PROJECT CONDITIONS 1.Approved Plans. Approval of Tentative Map TM16-02 is granted for approvedplans stamped as "Approved on November 5, 2018" ("the plans") on file with thePlanning Division. Build-out of the project shall conform to the plans, except asotherwise specified in these conditions. Any future adjustment or modification tothe plans shall be considered by the Community Development Director or designee,may require separate discretionary approval, and shall conform to all City, State,and Federal requirements, including subsequent City Code requirements or policiesadopted by City Council. (PL, G-1)2.Developer. Developer means permit applicant, property owner, operator, permittee,lessee, and/or tenants using the space(s) for the intended use(s). Developer shallconiply with project conditions for the life of the project. (CA, G-2)3.Indemnification Agreement. Developer agrees, as a condition of permit approval,at Developer's own expense, to defend, indemnify, and hold harmless the City ofGilroy ("the City") and its officers, contractors, consultants, attorneys, employeesand agents from any and all claim(s), action(s) or proceeding(s) brought against theCity or its officers, contractors, consultants, attorneys, employees, or agents tochallenge, attack, set aside, void or annul the approval of this resolution or anycondition attached thereto or any proceedings, acts or determinations taken,including actions taken under the California Environmental Quality Act of 1970, asRESOLUTION 2018-44 7.4
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amended, done or made prior to the approval of such resolution that were part of the
approval process. (CA, G-3)
4.Acceptance of Conditions. Failure to appeal this decision in a timely manner, orcommencement of any activity related to the project, in understood to clarify
Developer's acceptance of all conditions and obligations imposed by this permitand waiving any challenge to the validity of the conditions and obligations stated
herein. ( CA, G4)
5.. Covenants and Restrictions. Any covenants, conditions, and restrictions (CC&Rs)
applicable to the project property shall be consistent with the terms of this permit
and the City Code. If there is a conflict between the CC&Rs and the City Code orthis permit, the City Code or this permit shall prevail._ (PL/CA, G-11)
6.Enforcement Action. If Developer, owner or tenant fails to comply with any of the
conditions of this permit, the Developer, owner or tenant shall be subject revocationor other appropriate enforcement actions pursuant to the City Code. All costs
associated with any such actions shall be the responsibility of Developer, owner or
tenant. ( CA, G-7)
7.Occupancy Restriction. Prior to occupancy of residential units and/or acceptanceof the subdivision tract, Developer shall complete all required offsite and onsite
improvements related to the project, including structures, paving, and landscaping,unless otherwise allowed by the Community Development Director, or stated inthese conditions. (BL, G-8)
8.Expiration. The tentative map shall have an initial expiration period of twenty-four(24)months from the approval date if the final map is not approved prior to theinitial expiration date of November 5, 2020, subject to extensions of time that may
granted as provided pursuant to the State Subdivision Map Act. (PL, G-12)
9.Extension Requests. Should Developer intend to request an extension to the perm.itexpiration date, Developer must submit to the Planning Division a written
application with applicable fees prior to the expiration date. Only timely requests
may be considered pursuant to the City Code. Should the project approvals expire,allocations granted for 14 residential units pursuant to Gilroy City Code Section30.50.60 shall likewise expire. (PL, G-5)
PLANNING DIVISION STANDARD CONDITIONS
10.Subsequent Permits. Developer shall obtain necessary permits prior to initiatingany new construction or modifications authorized under this approval, including but
not limited to temporary construction trailers, temporary staging areas, model homesales offices, advertising signs of any kind, exterior and interior modifications.Developer shall pay all requisite fees in effect at the time of plan submittal and/or
issuance, as applicable. (PL/BL, PL-1)
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11.Architectural and Site Review. Architectural and Site Review shall be obtainedfor development of four or more residential parcels within the project, pursuant to
Gilroy City Code Section 30.50.41(a)(5).
12.Building Plan Details. Developer plans for building permit applications for futureresidences shall identify all exterior building materials and colors, including productand finish manufacturer name, color name and number, and surface finish type ( e.g.
stucco with sand finish, plaster with smooth finish) to be used in construction,subject to review for compliance with Zoning standards. This shall include reviewand requirement for compliance with the site design requirements of Gilroy City
Code Section 30.5.50 which specifies that new residences shall have at least 3 ofthe following 5 design elements to differentiate from residences on adjacent lots on
the same street frontage(PL, PL-2):(A)Floor plan.
(B) Front Elevation.(C) Roof Design.(D) Exterior Materials.
(E)Reversed floor plan.
13.Conditions on Plan Sets. Developer shall submit plans that include, on all sets, areproduction of all conditions of approval of this permit, as adopted by the decision
maker. (PL, PL-3)
14.Landscape and Lighting. Developer shall submit combined final landscape andlighting plan improvement plans to verify location of street trees and street light
standards shall not conflict with drainage plans, landscape plans, tree locations,parking spaces, or any other such land use concerns. (PL, PL-6)
15. · Habitat Conservation Permit. Concurrent with or prior to an application for agrading permit, Developer shall apply for a Santa Clara Valley Habitat Plan permitfrom the City of Gilroy. The grading permit will be issued only after payment of
assessed fees and approval of the Habitat Plan permit. (PL, PL-9)
16.Habitat Conservation Fee Payment. Prior to issuance of a grading permit,Developer shall present to the Community Development Director or designee, a
receipt issued by Santa Clara County for full payment of the Santa Clara ValleyHabitat Plan fees for associated with the proposed development. Such receipt shall
be dated within six ( 6) months of the grading permit issuance date, or the feeamount may be reassessed and difference collected at the time of grading permit
issuance. (PL, PL-10)
17.Construction Noise. To minimize potential construction-related impacts to noise,
Developer shall include the following language on any grading, site work, and
construction plans issued for the subject site (PL/BL, PL-11)
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"During earth-moving, gr�ding, and construction activities, Developer shall
implement the following measures at the construction site:
(A)Limit construction activity to weekdays between 7:00 a.m. and 7:00 p.m., andon Saturdays between 9:00 a.m. and 7:00 p.m. Construction noise is prohibited
on Sundays and City-observed holidays;
(B) Locate stationary noise-generating equipment as far as possible from sensitivereceptors when sensitive receptors adjoin or are near a construction projectarea;(C) Construct sound walls or other noise reduction measures prior to developing
the project site;(D) Equip all internal combustion engine driven equipment with intake and exhaustmufflers that are in good condition and appropriate for the equipment;
(E)Prohibit all unnecessary idling of internal combustion engines;(F)Utilize "quiet" models of air compressors and other stationary noise sourceswhere technology exists; and(G)Designate a "disturbance coordinator' who would be responsible forresponding to any complaints about construction noise. The disturbancecoordinator will determine the cause of the noise complaint (e.g. bad muffler,etc.) and will require that reasonable measures be implemented to correct the
problem."
18.Air Quality. To minimize potential construction-related impacts to air quality,
Developer shall include the following language on any grading, site work, andconstruction plans issued for the project site (PL/BL, PL-12):
"During earth-moving, grading, and construction activities, Developer shallimplement the following basic control measures at the construction site:
(A) All exposed surfaces ( e.g. parking areas, staging areas, soil piles, graded areas,
and unpaved access roads) shall be watered two times per day;
(B)All haul trucks transporting soil, sand, or other loose material onsite or offsiteshall be covered;(C)All visible mud or dirt tracked out onto adjacent public roads shall be removedusing wet power vacuum street sweepers at least ·once per day. The use of drypower sweeping is prohibited;
(D) All vehicle speeds on unpaved roads or pathways shall be limited to 15 miles
per hour;(E)All roadways, driveways, and sidewalks to be paved shall be completed assoon as possible. Building pads shall be laid as soon as possible after grading
unless seeding or soil binders are used;(F)Idling times shall be minimized either by shutting equipment off when not in
use or reducing the maximum idling time to 5 minutes ( as required by theCalifornia airborne toxics control measure Title-13, Section 2485 of California
Code of Regulations [CCR]). Clear signage shall be provided for construction
workers at all access points;
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11 (G) All construction equipment shall be maintained and properly tuned inaccordance with manufacturer's specifications. All equipment shall be checkedby a certified visible emissions evaluator; and(H) Post a publicly visible sign with the telephone number and person to contact atthe lead agency regarding dust complaints. This person shall respond and takecorrective action within 48 hours. The Air District's phone number shall alsobe visible to ensure compliance with applicable regulations."19.Archaeological Resources. In the event of an accidental discovery ofarchaeological resources during grading or construction activities, Developer shallinclude the following language on any grading, site work, and construction plansissued for the project site (BL/PL, PL-13):'�If archaeological or cultural resources are discovered during earth-moving, grading, or construction activities, all work shall be halted within at least 50 meters (165 feet) of the find and the area shall be staked off immediately. The monitoring professional archaeologist, if one is onsite, shall be notified and evaluate the find. If a monitoring professional archaeologist is not onsite, the City shall be notified immediately and a qualified professional archaeologist shall be retained ( at Developer's expense) to evaluate the find and report to the City, If the find is determined to be significant, appropriate mitigation measures shall be formulated by the professional archaeologist and implemented by the responsible party." 20.Cultural Resources. In the event of an accidental discovery or recognition of any-human remains, Developer shall include the following language in all grading, sitework, and construction plans (BL/PL, PL-14):"If human remains are found during earth-moving, grading, or construction activities, there shall be no further excavation or disturbance of the site or any nearby area reasonably suspected to overlie adjacent human remains until the coroner of Santa Clara County is contacted to determine that no investigation of the cause of death is required. If the coroner determines the remains to be Native American the coroner shall contact the Native American Heritage Commission within 24 hours. The Native American Heritage Commission shall identify the person or persons it believes to be the most likely descendent (MLD) from the deceased Native American. The MLD may then make recommendations to the landowner or the person responsible for the excavation work, for means of treating or disposing of, with appropriate dignity, the human remains and associated grave goods as provided in Public Resources Code Section 5097.98. The landowner or his authorized representative shall rebury the Native American human remains and associated grave goods with appropriate dignity on the property in a location not subject to further disturbance if: a) the Native American Heritage Commission is unable to identify a MLD or the MLD failed to make a recommendation within 24 hours after being notified by the commission; b) the descendent identified fails to make a recommendation; or c) the landowner or his authorized representative rejects the recommendation of the descendent, and the mediation by the Native RESOLUTION 2018-44 7.4
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American Heritage Commission fails to provide measures acceptable to the
landowner."
21.Equipment Screening. Developer shall provide screening of all mecl:1:anical
equipment, post indicator valves, backflow prevention devices, etc., shown on finalimprovement plans. All ground mounted utility appurtenances such as transformers
shall not be visible from any public right-of-way and shall be adequately scree11edthrough the use or combination of low concrete or masonry walls, berms, and
landscaping. (PL, PL-17)
22.Any masonry or concrete walls used for screening purposes shall comply with frontand street side yard height limits and be setback from property lines or back ofsidewalks at least 3-feet in order to accommodate landscaping along the exteriorfacing elevation. (PL-22)
23.Backflow preventers shall be painted dark green, except the fire connection whichshall be painted yellow. Interior lot lines may be delineated by fencing, constructed
of wood material. (PL-17)· ·
24.The final placement and design of the equipment and screening for the items in theabove conditions 23, 24 and 25, shall be to the satisfaction of the CommunityDevelopment Director or desigrtee.
25.Homeowners Association. Developer shall establish a Homeowners' Association
(HOA) for the development. The HOA shall be responsible for the maintenance andenforcement of parking, private streets, common landscaping, recreation and other
interior areas held in common by the HOA. Such responsibilities shall be providedwithin the CC&Rs for the development. (PL, PL-27)
26.Prior to recordation of the Final Map, the CC&R's shall be submitted to the City for
review and approval to confirm the items required in these conditions of approvalhave been satisfied; subject to review by the Community Development Director,City Engineer and City Attorney.
PLANNING LANDSCAPING CONDITIONS
27.Developer shall submit a Landscape and Irrigation Plan for common areas with
completed Landscape Documentation Package,including a soilanalysis/management report along with appropriate application review fees, to the
Community Development Department, including required documentation for
compliance verification, and obtain approval of such plans. Landscaping plans shallinclude details for tree mitigation and include planting along the retaining wall
system supporting the Lots 9-14 building pads. (PL, PL-4 3)
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13 28.As part of the Landscape Plan submittal, Developer shall not include any invasiveplant species, such as those listed by the California Invasive Plant Council. (PL, PL-44)29.As part of the Landscape Plan submittal, Developer shall clarify a minimum three(3)inch layer of mulch to be applied on all exposed soil surfaces, as required by theState MWELO. (PL, PL-45)·30. With the final landscape plan submittal, Developer shall (as part of the irrigationsystem) include sensors that suspend or alter irrigation operation during unfavorable weather conditions (e.g. automatic rain shut-off devices). (PL, PL-42) 31.Prior to occupancy or and/or final tract acceptance, Developer shall submit a signedCertificate of Completion, along with all necessary supporting documentation andpayment to the Community Development Department, for compliance verificationof the landscape installation. Developer shall complete installation of alllandscaping and irrigation in accordance with the approved plans. (PL-4 7, PL-48)32.Developer is required under MWELO to provide a copy of the approved Certificateof Completion to the property owner or his or her designee. Prior to completion ofeach build-out phase of development, Developer shall provide the CommunityDevelopment Director or designee a summary of each lot in that phase and timingof compliance with this requirement. (PL, PL-49)33.For the life of the project, Developer and/or HOA hall maintain commonlandscaping and irrigation improvements in accordance with the approved plans,except as otherwise permitted or required by law. Significant changes to thenumber, placement, and selection of plant species may require a modification to thisapproval, to be determined by the Community Development Director or designee.(PL, PL-50)PLANNING DIVISION SPECIAL CONDITIONS 34.Off-site improvements. Developer shall comply with the requirements of theEngineering Division for all off-site right of way improvements, which includesacquiring the right of way access to connect Greenfield Drive with the projectroadway.3 5. Public/Private Roadway Demarcation. The improvement plans shall provide a distinctive pavement treatment to demarcate the transition from public to private roadway, to the satisfaction of the Planning Manager and City Engineer. 36.The Building Envelopes that are shown on the tentative map shall not be required.37.Private Open Space Restrictions for Lots 9 thru 14. The area extending from thetop of the uppermost retaining wall to the rear and side property lines of Lot 9RESOLUTION 2018-44 7.4
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14 through Lot 14, which back up to the Uvas Creek preserve, shall be restricted as follows: No structures, ornamental landscaping, private garden areas, accessory structures, grading, decks, pools, or hardscape improvements shall be permitted within the private open areas. The private open space shall be maintained with approved native or compatible landscaping, and open view fencing only, which is complementary and compatible with the adjacent public open space vegetation. Any modification shall be subject to review and approval of the Community Development Director or designee for compliance with these conditions and Gilroy City Code. 38.Private Open Space View Fencing Requirement for Lots 9 thru 14). TheDeveloper shall install open view fencing along the rear of building envelopes ( ontop of the upp�rmost retaining wall) and along the perimeter of the private openspace areas of Lots 9 through Lot 14. The open view fencing details shall besubmitted for review and approval by the Planning Division with grading permits orimprovement plans. Fencing shall be installed prior to occupancy of residences onthese lots. The open view fencing restrictions shall be included in the projectCC&R's. Any modification to this requirement shall be subject to review andapproval by the Community Development Director or designee and the PublicWorks Director for compliance with these conditions and Gilroy City Code.3 9. Public Access Easement. Public access easements shall be granted for sidewalks and roadways through the development. 40.Common Improvements. Developer shall complete all required commonlandscaping, street trees, lighting and tree mitigation. A phasing schedule may besubmitted for approval by the Planning Manager prior to issuance of gradingpermits. All improvements must be completed prior to acceptance of the Tract map.·41. Common Retaining Wall Design. Should the retaining wall be used, plans shallindicate a minimum grade separation of five feet (5') that shall be maintained between the two maximum five-foot (5') tall retaining walls that are proposed to support the fill and building envelopes of lots 9 through 14. This area shall be planted with landscaping designed to prevent climbing and soften the appearance of the wall. Similar landscaping shall be included along the base of the wall. 42.Processing Fees. Outstanding application processing fees in the amount of$9,796.81shall be paid, consistent with the application reimbursement agreement.Any outstanding fees must be received prior to recordation of the Final Map.PLANNING DMSION ENVIRONMENTAL CONDITIONS The following mitigation measures shall be incorporated as conditions of approval, consistent with the Mitigation Monitoring and Reporting Program prepared and adopted for the project. RESOLUTION 2018-44 7.4
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15 43.(MM AIR-1.1) The project shall develop a plan demonstrating that the off-roadequipment used on-site to construct the project would achieve a fleet-wide averageof at least 30 percent reduction in DPM exhaust emissions or greater. One feasibleplan to achieve this reduction would include the following:(A)All mobile diesel-powered off-road equipment larger than 25 horsepowerand operating on the site for more than two days shall meet, at a minimum,U.S. EPA particulate matter emissions standards for Tier 2 engines orequivalent(B)Generator used to provide power shall meet, at a minimum, U.S. EPAparticulate matter emissions standards for Tier 4 engines or equivalent. Ortheir usage shall be limited to 100 hours total.44.(MM BJQ .. 1.1) Pre-construction nesting bird surveys shall be completed prior tothe start of construction activities, if construction activities are proposed tocommence during the nesting season (February 1 to August 31) in order to avoid·impacts to nesting birds. These surveys shall be completed by a qualified biologistno more than 14 days before construction begins during the early part of thebreeding season (February 1 through April 30) and no more than 30 days beforeconstruction begins during the latter part of the breeding season (May 1 throughAugust 31 ). During this survey, the biologist or ornithologist shall observe if anynesting birds are within the project area.45.(MM BI0-1.2) If an active nest is found in an area that will be disturbed byconstruction, the ornithologist shall designate an adequate buffer zone to beestablished around the nest, in consultation with the California Department of Fishand Wildlife. The buffer would ensure that nests shall not be disturbed duringproject construction.46.(MM BI0-1.3) The applicant shall submit a report indicating the results of the preconstruction survey and any designated buffer zones to the satisfaction of theDirector of Planning, prior to the issuance of a demolition permit.47.(MM BI0-2.1) Bat Pre-activity Survey. Prior to any removal of trees 12 inches orgreater in diameter at 4.5 feet above grade, a pre-activity survey for roosting batswill be conducted within the impact area. The survey will be conducted by aqualified bat biologist. No activities that would result in disturbance of active ·batroosts will proceed prior to the completed survey. If no active roosts or maternitycolonies are found, then no further action is warranted. If a large maternity colonyor bat roost is presented, MM BIO-3.2 or 3.3 shall be implemented.48.(MM BI0-2.2) Avoidance. In order to avoid impacts, if an occupied bat roost isfound in a tree that would be disturbed or removed by proposed activities, theProject may be redesigned to avoid the disturbance of the tree. If the roost isunoccupied at the time of the survey, the City may choose to install bat exclusiondevices to prevent bats from taking up occupancy of the structure prior to the onsetRESOLUTION 2018-44 7.4
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16 of the proposed activity. If avoidance is not feasible, MM BI0-3.3 shall be implemented. 49.(MM BI0-2.3) Exclude Bats Prior to Disturbance. If disturbance of an active nonbreeding pallid bat roost cannot be avoided, the individuals will be safely evictedbetween August 1 and October 15th or between February 15 and March 15. Batsmay be evicted through exclusion after notifying the California Department of Fishand Wildlife. Trees with roosts that need to be removed will first be disturbed atdusk, just prior to removal that evening, to allows bats to escape the darker hours.50.(MM BI0-3.1) Woodrat Pre-Construction Surveys. Pre-construction surveys forwoodrat nests shall be conducted within the impact footprint by a qualifiedmammologist prior to the start of work. The surveys shall be conducted betweenMarch 1st and October 31st, when woodrats are more active, and shall be conductedno m.ore than 30 days prior to the start of work. Woodrat nests detected during thesurvey shall be mapped and one or more of the following measures shall beimplemented:(A)Disturbance-free Woodrat Buffers. Dusky-footed wood.rats are year-roundresidents. Therefore, avoidance mitigation is limited to redesigning theproject to avoid direct impacts on woodrat nests to the extent feasible.Ideally, a minimum 10-foot buffer should be maintained between projectconstruction activities and each nest to avoid disturbance. In somesituations, a smaller buffer may be allowed if in the opinion of a qualifiedbiologist, removing the nest would be a greater impact than the anticipatedas a result of Project activities.(B) Relocation of Woodrat Nest Materials. If active woodrat nests are foundwithin the Project boundary and avoidance is not feasible, then thewood.rats shall be evicted from their nests prior to the removal of the nestsand onset of ground-disturbing activities to avoid injury or mortality of thewoodrats. A qualified biologist shall disturb the woodrat nest such that allwoodrats would seek refuge outside of the Project activity area.Subsequently, the nest sticks shall be removed from the site, if feasible,these materials would be piled at the base of a nearby tree or shrub. Thespacing between relocated nests shall not be less than 100 feet, unless aqualified biologist has determined that the habitat can support higherdensities of nests.51.(MM BI0 .. 4.1) Prior to issuance of a grading permit, the applicant shall submit afinal tree replacement plan to mitigate for proposed tree removals consistent withGilroy City Code Article XXXVIII (Landscaping) and Consolidated LandscapePolicy. The final plan shall identify the species, size, numbers, and locations for thereplacement trees. The tree replacement program will be subject to review andapproval by the Planning Manager and shall be implemented with construction ofthe subdivision improvements ..RESOLUTION 2018-44 7.4
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52.(MM BI0-4.2) The project would also be required to implement tree preservation
measures before and during project construction for significant trees to be retained
(which as revised by the applicant shall include preservation of trees 46, 49, 52, 53,
54, 56, 70, 74, 75, 76, 77, 79 and 80 as shown on Table 3 Trees Recommended for
Removal of the Preliminary Arborist Report). These measures shall be included on
all plans. Tree protection measures include the following Tree Preservation
Guidelines as established in the arborist report prepared for the project
environmental analysis:
Design Recommendations.
(A) The trees identified for preservation shall be established and plotted on all
plans (including but not limited to demolition, improvement, utility,
drainage, grading, landscape and irrigation plans), subject to review and
comment by the Consulting Arborist.
(B)Changes to plans shall be subject to review and comment by the
Consulting Arborist with regard to tree impacts.
(C) A Tree Protection Zone (TPZ) shall be established around each tree to be
preserved. Specific TPZ zones are specifically required for the following
trees located within the area of development:
Tree No. TPZ
#8 5' North. Drip line in all other directions.
#19 5' North and West.
Dripline in all other directions. #31 5' South. Dripline in all
other directions.
#36,37,38 10' West. Drip line in all other directions.
(D)TPZ's for trees not listed above shall be established at the dripline or a 10-
foot radius, whichever is greater.
(E) Underground services and utilities, including subdrains, water and sewer,
shall be routed armmd the TPZ. Where encroachment cannot be avoided,
special construction techniques such as hand digging or tunneling under
roots shall be employed where necessary to minimize root injury.
(F)All temporary access roads and staging for materials, equipment, etc.,
shall remain outside of TPZ's.
(G) Herbicides must be safe for use around trees and labeled for that use.
(H) Irrigation systems must be designed so that no trenching will occur within
the TPZ.
Pre-construction Treatments
(I)Per the City's Consolidated Landscape Policy, policies 6.2 and 6.3, the
developer shall hire a certified consulting arborist for the entire span of the
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18 project. All arborist recommendations shall be drafted bn the final construction, grading, or landscape plans. (J)The consulting arborist shall sign the final landscape plans authorizing thisplan is consistent with the recommendations made in the arborist report.(K) The construction superintendent shall meet with the Consulting Arboristbefore beginning work to discuss work procedures and tree protection.(L)Fence all trees to be retained to completely enclose the Tree ProtectionZone prior to demolition, grubbing or grading. Fences shall be 6' highchain link, mounted to steel posts firmly driven into the ground or onstanchions fastened securely with rebar staples 12" deep, as required bythe City. Fences are to remain until all grading and construction iscompleted.(M)Trees recommended for preservation may require clearancepruning for construction. All pruning shall be. completed by a CertifiedArborist or Tree Worker and adhere to the latest edition of the ANSI Z133and A3 00 standards as well as the Best Management Practices ... TreePruning published by the International Society of Arboriculture.(N) Structures and underground features to be removed within the TreeProtection Zone shall use the smallest equipment, and operate fromoutside the Tree Protection Zone. The consultant shall be on-site duringall operations within the Tree Protection Zone to monitor demolitionactivity.(0) Apply and maintain 4-6" wood chip mulch within the Tree ProtectionZone.(P)All tree work shall comply with the Migratory Bird Treaty Act as well asCalifornia Fish and Wildlife code 3503�3513 to not disturb nesting birds.To the extent feasible tree pruning and removal should be scheduledoutside of the breeding season. Breeding bird surveys should be conductedprior to tree work. Qualified biologists. should be involved in establishingwork buffers for active nests.During Construction (Q)Prior to beginning work, all contractors working in the vicinity of trees tobe preserved are required to meet with the Consulting Arborist at the siteto review all work procedures, access routes, storage areas and treeprotection measures.(R) No grading, construction, demolition or other work shall occur within theTree Protection Zone. Any modifications must be approved and monitoredby the Consulting Arborist.(S)Any excavation within the dripline or other work that is expected toencounter tree roots should be approved and monitored by the ConsultingArborist. Roots shall be cut by manually digging a trench and cuttingexposed roots with a sharp saw. The Consulting Arborist will identifyRESOLUTION 2018 .. 44 7.4
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where root pruning is required.
(T) If injury should occur to any tree during construction, it should be·evaluated as soon as possible by the Consulting Arborist so that
appropriate treatments can be applied.
(U) Any roots damaged during grading or construction shall be exposed to
sound tissue and cut cleanly with a saw.(V) Fences have been erected to protect trees to be preserved. Fences define a
specific Tree Protection Zone (TPZ) for each tree or group of trees. Fences
are to remain until all site work has been completed. Fences may not be
relocated or removed without permission of the Consultant.
(W)Construction trailers, traffic and storage areas must remain outside
fenced areas at all times.(X) Prior to grading, pad preparation and excavation work trenching may
require root pruning outside of the TPZ. The Consulting Arborist shall
identify where root pruning is required prior to the start of work. Roots
shall be cleanly cut to the depth of the excavation. Roots shall be cut by
manually digging a trench and cutting exposed roots with a saw, with a
vibrating knife, rock saw, narrow trencher with sharp blades, or other
approved root pruning equipment. (Y) No materials, chemicals, debris or equipment shall be dumped or stored
within the TPZ.(Z)Any tree pruning required for clearance during construction must be
performed by a Certified Arborist.
Post Construction (AA) Trees preserved and replacement trees shall be monitored
following construction of site improvements to assure the health of trees
post construction. Occasional pruning, fertilization, mulch, pest
management, replanting and irrigation may be required.
ENGINEERING DIVISION CONDITIONS
GENERAL
53.All improvements shall be designed and constructed in accordance with the City of
Gilroy Municipal Code and Standard Specifications and Details, and is subject to all
laws of the City of Gilroy by reference. Street improvements and the design of alloff-site storm drainage facilities, sewer and water lines, and all street sections shallbe in accordance with City Standards and shall follow the most current City Master
Plan for streets, as approved by the City of Gilroy' s Public Works Director/CityEngineer.
54.Until such time as the Improvements are accepted by City, Developer shall beresponsible for and bear the risk of loss to any of the Improvements constructed or
installed.
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20 55.Applicant shall obtain all applicable permits from federal, state, and local agenciesas required to construct the proposed improvements. A copy of these permits willbe provided prior to building permits.56.Applicant shall obtain will serve and review letter from Recology confirmingserviceability and site accessibility of solid waste pickup. Contract StevenLucchetti, Operations Manager 408-842-3358.57.All existing public utilities shall be protected in place and if necessary relocated asapproved by the City Engineer. No permanent structure is permitted within Cityeasements without the approval of the City of Gilroy.5 8. Prior to building permit issuance, developer shall dedicate necessary easements for the project development, including but not limited to 16-foot Public Service easement along all the project proposed and future street frontages. The private streets shall be designated as a Public Utility Easement (PUE), Water Line Easement (WLE), and Emergency Vehicle Access Easement (EV AE). 59.Prior to the Final Map recordation applicant shall successfully obtain and recordnecessary ingress/egress and public utility easement from adjacent property owner,APN 808-19-020, for the extension of the Greenfield Drive to serve the proposeddevelopment.60.Improvement plan shall include all approved Conditions of Approval (COA) andapproved mitigation measures for the project on the 2nd sheet of the improvementplan set.61.Improvement plan set submittal shall include civil, landscape, electrical and jointtrench plan.62.Public Improvement Plan title sheet shall include a table identifying ownership andmaintenance responsibilities for all existing and proposed improvements, includingbut not limited to, streets, water, sewer, storm, street lights, landscaping andstorm.water treatment areas.FEES 63.The project is subject to the City's Street Tree, Storm, Sewer, Water, Traffic; andPublic Facilities Development Impact Fees. Payment of Street Tree and StormDevelopment Impact Fees is required at first building permit issuance. Sewer,Water, Traffic, and Public Facilities Development Impact Fees are due prior tobuilding occupancy.64.At improvement plan submittal, Developer shall submit a $25,000 (Twenty FiveThousand) initial deposit for plan check and processing. This deposit will becredited/accounted for toward final plan check and inspection fee.65.Prior to plan approval, developer shall submit a detailed project cost estimate withappropriate contingency, subject to City Engineer approval.RESOLUTION 2018-44 7.4
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21 66.Prior to final plan approval, Developer shall pay 100% of the plan check andinspection fees and other related fees that the property is subject to, enter into aproperty improvement agreement, and provide payment and performance bonds.GRADING & DRAINAGE 67.Prior to final map approval, the developer shall submit a grading plan and adrainage study prepared by a registered Civil Engineer. The drainage study shallanalyze the existing and ultimate conditions and facilities, and the study shallinclude all off-site tributary areas. The study and the design shall be in compliancewith the City's Stormwater Management Guidance Manual (latest edition).Existing offsite drainage patterns, i.e., tributary areas, drainage amount and velocityshall not be altered by the development. The developer shall satisfy the conclusionsand recommendations of the approved drainage study and storm water managementplan.68.All grading activity shall address National Pollutant Discharge Elimination System(NPDES) requirements. If all or part of the construction occurs during the rainyseason, the developer shall submit an Erosion Control Plan to the Public WorksDirector for review and approval. This plan shall inco_rporate erosion controldevices and other techniques in accordance with Municipal Code § 27C tominimize erosion. The developer shall have a QSP on site as necessary to ensureimplementation and maintenance of all erosion control measures. Specificmeasures to control sediment runoff, construction pollution and other potentialconstruction contamination sediment runoff, construction pollution and otherpotential construction contamination shall be addressed through the Erosion ControlPlan and Storm Water Pollution Prevention Plan (SWPPP). The SWPPP shallsupplement the Erosion Control Plan and project improvement plans. Thesedocuments shall also be kept on-site while the project is under construction. ANotice oflntent (NOI) shall be filed with the State Water Resources Control Board,with a copy provided to the Engineering Division before a grading permit will beissued. WDID# shaU be provided prior to the commencement or work.69.All grading operations and soil compaction activities shall be per the approvedproject's geotechnical report that was prepared for the design of the project andshall be subject to the approval of the Public Works Director. Site preparation andcut/fill construction shall be conducted under the observation of, and tested by, alicensed soils or geotechnical engineer. A report shall be filed with the City ofGilroy for each phase of construction, stating that all site preparation and cut/fillconstruction were performed in conformance with the requirements of the project'sgeotechnical report. This shall be subject to review and approval by theEngineering Division. The developer shall add this condition to the general notes onthe grading plan.70.Prior to building permit issuance, the applicant's soils engineer shall review thefinal grading and drainage plans to ensure that designs for foundations, retainingwalls, site grading, and site drainage are in accordance with their recommendations.RESOLUTION 2018-44 7.4
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The applicant's soils engineer's approval shall then be conveyed to the City either by letter or by signing the plans. TRANSPORTATION 71.Any work in the public right-of-way shall require a traffic control plan prepared by
a licensed professional engineer with experience in preparing such plans. Traffic
Control Plan shall be prepared in accordance with the requirements of the latestedition of the California Manual on Uniform. Traffic Control Devices. The TrafficControl Plan shall be approved prior to the commencement of any work within thepublic right of way.
72.At first plan submittal developer shall model all Emergency Vehicle circulationmovements, as separate plan sheet. The circulation plan shall be prepared to thecity Engineer's satisfaction, and modeled with AutoTurn Swept analysis software,
all turning and street circulation movements.
73.At first plan submittal developer shall model all Solid Waste Vehicle circulationmovements, as separate plan sheet. The circulation plan shall be prepared to the
city Engineer's satisfaction, and modeled with AutoTurn Swept analysis software,all turning and street circulation movements.
74.Developer shall submit final photometric plans as part of Improvement plans forreview and approval.
75.Developer shall install all joint trench to have (4) dedicated 1 112"SCH 80 PVCconduit for City Fiber Optic need in a quad duct arrangement along public Collectorand Arterial streets. Quad duct shall be per City STD EL-11.
76.Developer shall design driveway grades to keep a standard design vehicle from
dragging or "bottoming out" on the street or driveway and to keep water collectedin the street from flowing onto the lots. The details of such design shall be providedat improvement plan phase and shall be to the satisfaction of the CityTransportation Engineer.
77.The developer shall not obstruct the noted sight distance areas. Overall cumulative
height of the grading, landscaping & signs as determined by sight distance shall notexceed 2 feet when measured from street elevation.
78.Project shall connect to the existing 12-foot Class-1 Bike Path (trail) at the easterlyboundary of the project by lot 14.FINALMAP 79.The Final Tract Map shall be presented to the City Council for review and action.
The City Council meeting will be scheduled approximately fifty (50) days after the
Final Map is deemed technically correct, and Subdivision Improvement Plans withsupporting documents, reports and agreements are approved by the City. Executed
Final Map shall be returned to the City Public Works Department if Final Map has
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23
not been filed in the County Recorder's Office within ninety (90) days from the
date of City Council's approval.
80.The tentative map and all final maps shall designate all common lots and easements
as lettered lots or lettered easements. The Final map should be clear on the limits of
Public vs. Private (HOA) responsibilities. The Final map should also be clear of the
HOA vs. Homeowners responsibilities.
81.Prior to final map approval, the developer shall establish a homeowner association.The homeowner association shall be responsible for the maintenance of thelandscaping, walls, private streetlights, private utilities, private streets, and common
areas, and shall have assessment power. HOA shall be responsible maintenanceof the Storm Water Control treatment areas and the CC&R's shall describe how
the stormwater BMPs associated with privately owned improvements andlandscaping shall be maintained by the association. This information shall be
clearly included in.the Conditions, Covenants, and Restrictions (CC&R) andrecorded documents. The CC&R document shall be submitted for review and
approval by the City Engineer.
82.Uvas Creek Parcel A. Prior to or concurrent with final map approval, Developershall dedicate Parcel A for the use of the public. Developer shall complete all
improvements, including but not limited to the proposed Bicycle Trail and itsextension to the adjacent properties. Property Homeowner's Association shall takefull responsibility for management and maintenance of the proposed improvementswithin Parcel A. Seasonal vegetation management shall be scheduled to occur at theend of the rainy season and consistent with the annual weed abatement resolution.The HOA shall implement any vegetation management within Parcel A and Fuel
Transition Zones at the beginning of weed abatement season. This language shallbe included in_ the HOA conditions, covenants and restrictions.
83.The bicycle trail alignment within Parcel A shall avoid identified wetland areas.
84.The City shall in good faith support efforts by Developer to facilitate dedication of
the open space parcel to a suitable non-City public agency as a means of ensuringlong term preservation and management of the open space parcel. This shall bewithout cost or liability to the City. In the absence of such dedication, the HomeOwners Association shall have the responsibility for the long-term preservation and
management of such area.
PUBLIC IMPROVEMENTS
85.Prior to building permit issuance, developer shall execute a public improvementagreement and post Payment and Performance bonds each for 100% of cost for
improvement with the City that shall secure the construction of the public
improvements. Insurance shall be provided per the terms of the agreement.
86.The developer shall repair or replace all existing improvements not designated for
removal that are damaged or removed because of developer's operations.
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Developer shall request a walkAhrough with the Engineering Construction
Inspector before the start of construction to verify existing conditions.
87.The developer shall obtain all local and state permits necessary for all project onsite
and offsite construction.
88.Prior to any work within public right of way or City easement, the developer shall
obtain an encroachment permit from the City.WATER QUALITY 89.Proposed development shall comply with state mandated regional permits for both
pre-construction and post-construction storm water quality requirements per chapter27D of the Gilroy Municipal Code, and is subject to, but not limited to, thefollowing:
a.At grading permit phase, submit a fmal design Stormwater Management Plan andfinal signed Performance Requirement Certifications specified in the City of
Gilroy Stormwater Management Guidance Manual (latest edition).
b.At improvement plan phase, confirm that the bioretention basin locations shown
on the Stormwater Control Plan match with the locations shown on theLandscape Plans.
c.Prior to building permit issuance, the Developer of the site shall enter into aformal written Stormwater BMP Operation and Maintenance Agreement with
the City.
i.The City shall record this agreement against the property or properties
involved and it shall be binding on all subsequent owners of land served bythe storm water management treatment BMPs. The City-standard StormwaterBMP Operation and Maintenance Agreement will be provided by Public
Works Engineering.
ii.This Agreement shall require that the BMPs not be modified and BMP
maintenance activities not alter the designed function of the facility from itsoriginal design unless approved by the City prior to the commencement of the
proposed modification or maintenance activity.
iii.This Agreement shall also provide that in the event that maintenanceor repair is neglected, or the stonn water management facility becomes adanger to public health or safety, the city shall have the authority to perform ·
maintenance and/or repair work and to recover the costs from the owner.
iv.All on-site storm water management facilities shall be operated and
maintained in good condition and promptly repaired/replaced by the propertyowner(s) or other legal entity approved by the City.
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v.Any repairs or restoration/replacement and maintenance shall be in
accordance with City-approved plans.
vi.The property owner(s) shall develop a maintenance schedule for the
life of any storm water management facility and shall describe themaintenance to be completed, the time period for completion, and who shallperform the maintenance. This maintenance schedule shall be included withthe approved Stormwater Runoff Management Plan.
d.Stormwater BMP Inspections will be required for this project and shall
adhere to the following:
i.The property owner(s) shall be responsible for having all storm watermanagement facilities . inspected for condition and function by aknowledgeable third party.
ii.Unless otherwise required by the City Engineer or designee, storm
water facility inspections shall be done at least twice per year, once in Fall, in
preparation for the wet season, and once in Winter. Written records shall bekept of all inspections and shall include, at minimum, the following
information:
1.Site address;
2.Date and time of inspection;
3.N atne of the person conducting the inspection;
4.List of storm water facilities inspected;
5.Condition of each storm water facility inspected;
6.Description of any needed maintenance or repairs; and
7.As applicable, the need for site re-inspection.
e.Upon completion of each inspection, an inspection report shall besubmitted to Public Works Engineering no later than October 1st for the Fallreport, and no later than March 15th of the following year for the Winter report.
f.Before commencing any grading or construction activities, the developer
shall obtain a National Pollutant Discharge Elimination System (NPDES)permit and provide evidence of filing of a Notice of Intent (NOI) with the.State
Water Resources Control Board.
90.The developer is responsible for ensuring that all contractors are aware of all storm
water quality measures and implement such measures. Failure to comply with the
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26 approved construction BMPs_ will result in the issuance of correction notices, citations or a project stop order. UTILITIES 91.All service to the development shall be an "undergro1UJ.d service" designed andinstalled in accordance with the Pacific Gas and Electric Company, AT&T (phone)Company and local cable company regulations. Transformers and switch gearcabinets shall be placed underground unless otherwise approved by the PlanningDirector and the City Engineer. Underground utility plans must be submitted priorto installation.92.Improvement plans are required for all on-site and off-site improvements. Thefollowing items will need to be completed prior to first building permit submittal:a)The Developer shall provide joint trench composite plans for the undergroundelectrical, gas, telephone, cable television, and communication conduits andcables including the size, location and details of all trenches, locations of buildingutility service stubs and· meters and placements or arrangements of junctionstructures as a part of the Improvement Plan submittals for the project. Showpreferred and alternative locations for all utility vaults and boxes if project has notobtained PG&E approval. A licensed Civil or Electrical Engineer shall sign thecomposite drawings and/or utility improvement plans. (All dry utilities shall beplaced underground).b)The Developer shall negotiate right-of-way with Pacific Gas and Electric andother utilities subject to the review and approval by the Engineering Division andthe utility companies.c)Will Serve Letter" from each utility company for the subdivision shall be suppliedto the City.93.A note shall be placed on the joint trench composite plans which states that the planagrees with City Codes and Standards and that no underground utility conflictexists. The Joint trench consultant shall provide the City a separate "project utilitycomposite plan" showing all Civil, Landscape, electrical, and joint trenchinformation to confirm that there are no conflicts with joint trench plan utilities.Joint Trench Shall not be conceptual.94.Storm and sewer lines in private areas shall be privately owned and maintained bythe HOA.95.Prior to any construction of the dry utilities in the field, the following will.need tobe supplied to the City: ·a)A professional engineer-original electrical plan.RESOLUTION 2018-44 7.4
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27 b)A letter from the design Electrical or Civil Engineer that states the electrical planconforms to City codes and Standards, and to the approved subdivisionimprovement plans.96.Sanitary sewer laterals and/or water meters located in driveways shall have trafficrated boxes and lids.97.The Developer/Contractor shall make accessible any or all City utilities as directedby the Public Works Director.98.All mainline storm drain piping shall have a minimum diameter of 18 inches andthe lateral connections shall have a minimum diameter of 15 inches.WATER CONSERVATION 99.Landscape design shall comply with the State Water Efficient Landscaperequirements. Prior to building permit issuance complete landscape documentationpackage shall be submitted along with landscape plan for review and approval ofthe City Engineer; and prior to final/occupancy permit issuance, project LandscapeArchitect shall certify compliance with the State requirements and submit aCertificate of Completion by the owner.100.The project shall fully comply with the measures required by the City's WaterSupply Shortage Regulations Ordinance (Gilroy City Code, Chapter 27, Article VI),and subsequent amendments to meet the requirements imposed by the State ofCalifornia's Water Board. This ordinance established permanent voluntary water·saving measures and temporary conservation standards.101.Recycled water shall be used.for construction water, where available, as determinedby the Public Worlcs Director. Recycled water shall be billed at the municipalindustrial rate based on the current Santa Clara Valley WaterDistrict's municipalindustrial rate.WATER 102.The proposed 8" DIP water main within the proposed subdivision shall beconnected to the existing water main line on Riverview Circle to provide a loopingwater system with two points of connection.103.All construction water from fire hydrants shall be metered and billed at the currenthydrant meter rate.104.Where recycled water is not available, as determined by the Public Works Director,potable water shall be used. All City potable water will be billed based on the City'scomprehensive fee schedule wder the Portable Fire hydrant meter rate.105.The Developer shall perform field verification testing of the water system and willmodify any part of the systems that does not perform to the standards established bythe City.RESOLUTION 2018-44 7.4
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28 CONSTRUCTION BMP 106.It is the responsibility of the contractor to make sure that all dirt tracked into thepublic right-of-way is cleaned up on a daily basis. Mud; silt, concrete and otherconstruction debris shall not be washed into the City's storm drains.107.Blowing dust shall be reduced by timing construction activities so that paving andbuilding construction begin as soon as possible after completion of grading, and bylandscaping disturbed soils as soon as possible. Further, water trucks shall bepresent and in use at the construction site. All portions of the site subject _toblowing dust shall be watered as often as deemed necessary by the City, or aminimum of three times daily, or apply (non-toxic) soil stabilizers on all unpavedaccess roads, parking areas, and staging areas at construction sites in order to insureproper control of blowing dust for the duration of the project. Watering on publicstreets shall not occur. Streets will be cleaned by street sweepers or by hand asoften as deemed necessary by the Public Works Director, or at least once a day.Watering associated with on-site construction activity shall take place between thehours of 8 a.m. and 5 p.m. and shall include at least one late-afternoon watering tominimize the effects of blowing dust. All public streets soiled or littered due to thisconstruction activity shall be cleaned and swept on a daily basis during theworkweek to the satisfaction of the Public Works Director. Demolition orearthwork activities shall be halted when wind speeds (instantaneous gusts) exceed25 MPH. All trucks hauling soil, sand, or other loose debris shall be covered.CONSTRUCTION 108.If the project has excess fill or cut that will be off�hauled to a site or on .. hauled from
a site within the city limits of Gilroy, an additional p ermit is required. Thisstatement must be added as a general note to the Grading and Drainage Plan.109.The minimum soils sampling and testing frequency shall conform to Chapter 8 ofthe Caltrans Construction Manual. The subdivider shall require the soils engineer todaily submit all testing and sampling and reports to the City Engineer.110.Prior to Final Map approval, the Developer/ Applicant shall submit a proposedconstruction phasing and schedule for approval by the City Engineer. Scheduleformat shall be Microsoft Project, and shall identify the scheduled critical path forthe installation of improvements. The schedule shall be updated weeldy.111.At least one week prior to commencement of work, the Developer shall post at thesite and mail to the Engineering Division and to owners of property within (300')three hundred feet of the exterior boundary of the project site a notice thatconstruction work will commence on or around the stated date. The notice shallinclude a list of contact persons with name, title, phone number and area ofresponsibility. The person responsible for maintaining the list shall be included. Thelist shall be current at all times and shall consist of persons with authority to initiatecorrective action in their area of responsibility. The names of individualsresponsible for dust, noise and litter control shall be expressly identified in thenotice.RESOLUTION 2018-44 7.4
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29 112.Prior to final inspections, all pertinent conditions of approval and all improvementsshall be completed to the satisfaction of the Planning Director and City Engineer.113.All work shown on the improvement plans shall be inspected. Uninspected workshall be removed as deemed appropriate by the Public Works Director.114.All public improvements, including the complete installation of all improvementsrelative to streets, fencing, sanitary sewer, storm drainage, water system,underground utilities, etc., shall be completed and attested to by the City Engineerbefore approval of occupancy of any unit. Where facilities of other agencies areinvolved, such installation shall be verified as having been completed and acceptedby those agencies ..115.Construction activity shall be restricted to the period between 7:00 a.m. to 7:00 p.m.Mondays through Fridays, Saturday 9:00 a.m. to 7:00 p.m. for general constructionactivity. No work shall be done on Sundays and City Holidays. The Public WorksDirector may apply additional construction period restrictions, as necessary, toaccommodate standard commute traffic along arterial roadways and along schoolcommute routes.116.The City shall be notified at least two (2) working days prior to the start of anyconstruction work and at that time the contractor shall provide a project scheduleand a 24-hour emergency telephone number list.CONSTRUCTION PARKING 117.No vehicle having a manufacturer's rated gross vehicle weight exceeding tenthousand (10,000) pounds shall be allowed to park on the portion of a street whichabuts property in a residential zone without prior approval from the Public WorksDirector(§ 15.40.070).MONUMENTS 118.All monuments shall be set per the recorded final map. A certificate letter by theSurveyor or Engineer will be provided to the City Engineer.prior to.projectacceptance.ACCEPTANCE 119.Certification of grades and compaction is required prior to Building Pennit final.This statement must be added as a general note to the Grading and Drainage Plan.120.Until such time as all improvements required are fully completed and accepted byCity, Developer will be responsible for the care maintenance of and any damage tosuch improvements. City shall not, nor shall any officer or employee thereof, beliable or responsible for any accident, loss or damage, regardless of cause,happening or occurring to the work or Improvements required for this project priorto the completion and acceptance of the work or Improvements. All such risks shallbe the responsibility of and are hereby assumed by the Developer.RESOLUTION 2018-44 7.4
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121.The developer shall submit as .. built plans for civil, landscape, electrical, joint
trench.
122.The developer shall submit AutoCAD files each consultant's composite basemap
linework showing all public and private improvements and utility layouts. Utilitylayers shall be clearly labeled to identify private and public status and separate pen
color designated.EIRE DEPARTMENT. CONDITIO� ... •::.: . ··. ,.. " ,. ·� •:�• ':: .· .. . - .. . . ---�· ... --
123.TM 16-02 Conditions shall be included on off.-site improvement plans as "FireDepartment Notes." Prior to street completion, the Fire Marshal shall be contacted
and a fire clearance for off-site improvements be scheduled. No building permits
will be issued without a Fire -Off-Site Improvement Inspection and Fire Flow Test
administered by the Fire Marshal.
124.Open Spaces, including parcel A (between residential lots and the trail) and parcel
C, shall have vegetation management to remove dead plants and debris, and toremove, disc or mow weeds during weed abatement season from April to Novemberof each year. Trees in this area shall be limbed up 6' off the ground. In HOA·managed areas the HOA shall be responsible. For privately owned property it shall
be performed by the property owner.
125.Fire Hydrants shall be able to flow 1500 gpm with a 20 psi residual pressure shall
be spaced every 300 ft., and within 150 ft. of any building. Blue reflectors shall beadhered to the road surface in front of each hydrant. Improvement plan shall
provide Fire Hydrants per the City Standard. Hydrants shall be installed prior tocommencement of construction with combustible materials. A hydrant flow test
shall be performed by Fire Marshal prior to possession by the water department.
126.All homes shall be provided with water laterals and meters sized to allow for a
residential NFP A 13d fire sprinkler system. Off-site improvement plan shallprovide all homes shall be provided with 1.5 inch water laterals and 1" meters sized
to allow for a residential NFP A 13d fire sprinkler system. Plot plans for tract homesshall specify that the house is to be provided with fire sprinklers.
127.Roadways shall provide a mi¢mum 20 feet of unobstructed travel. Verticalclearance of not less than 13.5 ft. shall be provided. Turning radius shall not be less
than 32' inside and 40' outside. Parking.restrictions as follows: For road widths lessthan 28 ft., no parldng on either side, road width less than 36 ft., no parking on one
side, road width at or over 36 ft., parking not restricted.
128.Where parking is 1·estricted, it shall be posted with signs for No Parking-Fire Lane
and curbs shall be painted red. Include details in OffhSite improvement plans.
129.Final Map shall include a paragraph that reads: "Red curbing and signage shall be
maintained by the Home Owners Association. A _parldng enforcement shall be
RESOLUTION 2018-44
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31 implemented by the Homeowners Association and lots A and C subject to vegetation management by the HOA." 130.All individual lots (lots 1, 2, 9 -14) that border open space must have noncombustible perimeter fences, as well as maintain a minimum 30 foot vegetationzone within their respective lots.131.The homeowners association will be responsible for vegetation management forparcels A, B, and C.RESOLUTION 2018-44
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RESOLUTION NO. 2023-__
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY
APPROVING A TIME EXTENSION FOR TENTATIVE MAP TM 16-02
CREATING 14 SINGLE-FAMILY RESIDENTIAL LOTS, TWO COMMON
PARCELS, ONE PUBLIC PARK PARCEL, LOCATED AT THE
NORTHERLY TERMINUS OF GREENFIELD DRIVE AND SOUTH OF
UVAS CREEK, APN 808-20-008, FILED BY JAMES SUNER
WHEREAS, on November 5, 2018, the City Council of the City of Gilroy by
Resolution No 2018-44 adopted a mitigated negative declaration and approved Tentative
Map Application TM 16-02 for an initial period of two years, subject to 131 conditions and
incorporating project mitigation measures; and
WHEREAS, on June 1, 2020, the City Council adopted Resolution No. 2020-33
that extended the expiration date of all tentative maps, architectural and site permits, and
planned unit development approvals that were active during the COVID shelter in place
order, through May 31, 2021; and
WHEREAS, on September 29, 2020, Assembly Bill No. 1561 Chapter 195 was
enacted to amend Section 65583 and to add Section 65914.5 to the Government Code
relating to land use, to extend by 18 months the period for the expiration of a housing
entitlement that was issued before, and was in effect on, March 4, 2020, and that will
expire before December 31, 2021; and
WHEREAS, legislative extensions granted by the State and City Council extended
approval of TM 16-02 through November 30, 2022; and
WHEREAS, On November 30, 2022, James Suner submitted a Time Extension
request for the Tentative Map TM 16-02; and
WHEREAS, On February 27, 2023, the City Council considered the time extension
request; and
WHEREAS, the location and custodian of the documents or other materials that
constitute the record of proceedings of TM 16-02 time extension request is the office of
the City Clerk.
NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of
Gilroy hereby approves a 12-month time extension of time for TM 16-02, through
November 30, 2023. Approval of TM 16-02 time extension shall include all other
conditions of approval and mitigation measures applied to the project by City Council
Resolution 2018-44, which are incorporated by reference herein.
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Resolution No. 2023-XX
Time Extension TM 16-02
City Council Regular Meeting | February 27, 2023
Page 2 of 2
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PASSED AND ADOPTED this 27th day of February 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
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Page 1 of 2
City of Gilroy
STAFF REPORT
Agenda Item Title:Adopt an Ordinance of the City Council of the City of
Gilroy Amending Chapter 19B of the Gilroy City Code
Relating to Smoking Pollution Control to Prohibit
Smoking at Multi-Family Housing Properties and
Public Events Except in Designated Areas
Meeting Date:February 27, 2023
From:Jimmy Forbis, City Administrator
Department:Administration
Submitted By:Bryce Atkins, Assistant to the City Administrator
Prepared By:Bryce Atkins, Assistant to the City Administrator
STRATEGIC PLAN GOALS Not Applicable
RECOMMENDATION
Council adopt the ordinance
BACKGROUND
The item was initiated by Council on May 16, 2022, to agendize a discussion regarding
Chapter 19B relating to smoking prohibitions. The item was heard by the City Council at
the regular City Council meeting on October 3, 2022. At that time, the Council provided
direction to bring back an ordinance banning smoking at multi-family housing properties
as well as at public events. Staff began development and returned to Council at the
January 23, 2023 meeting to receive additional feedback on a few of the ordinance
provisions based upon its research. Having that feedback, staff completed the
development of the proposed ordinance, and brought the proposed ordinance to
Council for the introduction of the ordinance on February 6, 2023. There were no
proposed changes, aside from a minor, clarifying change in the title of the ordinance,
which was carried out.
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Adopt an Ordinance of the City Council of the City of Gilroy Amending Chapter 19B of the
Gilroy City Code Relating to Smoking Pollution Control to Prohibit Smoking at Multi-Family
Housing Properties and Public Events Except in Designated Areas
City of Gilroy Page 2 of 2 February 27, 20235
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ANALYSIS
The detailed analysis is included in the attached staff report from the introduction of the
proposed ordinance on February 6, 2023.
ALTERNATIVES
Council may choose not to adopt the ordinance. This is not recommended, as the
proposed ordinance was constructed with feedback from the City Council. Should
Council not adopt the ordinance, either the ordinance would need to be revised and
restart the adoption process, or the pursuit would be canceled, depending upon
Council’s action.
FISCAL IMPACT/FUNDING SOURCE
None. This ordinance would incur minimal costs for updating in the City Code and
outreach about what it requires of multi-family housing properties. These costs will be
borne within existing appropriations.
PUBLIC OUTREACH
This ordinance’s introduction and adoption were advertised and discussed publicly at
the February 6, 2023 regular Council meeting. The ordinance was included on the
publicly posted agendas for the February 6, 2023, and February 27, 2023 regular City
Council meetings.
NEXT STEPS
If adopted, staff will commence outreach to multi-family housing properties about the
new requirements and include the prohibitions on special event permits for public
events.
Attachments:
1. Proposed Ordinance
2. Ordinance Introduction Staff Report – February 6, 2023
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ORDINANCE NO. 2023-XX
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GILROY
AMENDING CHAPTER 19B OF THE GILROY CITY CODE RELATING TO
SMOKING POLLUTION CONTROL TO PROHIBIT SMOKING AT MULTI-
FAMILY HOUSING PROPERTIES AND PUBLIC EVENTS EXCEPT IN
DESIGNATED AREAS
WHEREAS, the City of Gilroy (City) is a municipal corporation, duly organized
under the constitution and laws of the State of California; and
WHEREAS, the U.S. Surgeon General has concluded that there is no risk-free
level of exposure to secondhand smoke and the California Air Resources Board identified
secondhand smoke as a toxic air contaminant for which there is no safe level of exposure;
and
WHEREAS, according to the Centers for Disease Control, secondhand smoke is
responsible for an estimated 34,000 heart disease-related and 7,300 lung cancer-related
deaths among adult nonsmokers each year; and
WHEREAS, in children, secondhand smoke causes ear infections, more frequent
and severe asthma attacks, respiratory infections, and increases the risk of Sudden Infant
Death Syndrome (SIS); and
WHEREAS, research demonstrates that secondhand smoke in multi-unit housing
can and does transfer between units, creeping under doorways and through wall cracks;
and
WHEREAS, harmful residues from tobacco smoke can be absorbed by and cling
to virtually all indoor surfaces long after smoking has stopped and then be emitted back
into the air, making this a potential health hazard; and
WHEREAS, pursuant to California Health and Safety Code Section 118910,
California cities and counties have the legal authority to adopt local laws that prohibit all
tobacco use indoors and outdoors in areas not already covered by state law; and
WHEREAS, to provide for the public health, safety, and welfare by discouraging
the inherently dangerous behavior of smoking around non-tobacco users, especially
children, to protect the public from exposure to secondhand smoke where they live, work,
and play, and to protect the public from nonconsensual exposure to secondhand smoke
in and around their homes, the City desires to amend and add new sections to Chapter
19B of the Gilroy City Code relating to smoking within multi-unit housing properties and
at public events.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GILROY DOES
HEREBY ORDAIN AS FOLLOWS:
SECTION I
The foregoing recitals are true and correct and are incorporated herein by this reference.
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Ordinance No. 2023-XX
Amending Chapter 19B – Smoking Prohibitions in Multi-Family Housing and Public Events
City Council Regular Meeting | February 27, 2023
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SECTION II
That Section 19B.1, entitled “Definitions”, shall be amended to read as follows.
19B.1 Definitions.
These definitions are not intended to be used in interpretation of the City’s Zoning Code
or any other provisions of the Gilroy City Code except as used in this Chapter. The
following words and phrases, whenever used in this chapter, shall be construed as
follows:
“Bar” means any area or a room utilized primarily for the sale of intoxicating liquors for
consumption by guests on the premises and in which the sale of food and the provision
of entertainment are merely incidental to the sale of intoxicating liquors.
“Common Area” means every area of a Multi-unit Residence that residents of more than
one unit are entitled to enter or use, including, but not limited to, halls, pathways, lobbies,
courtyards, elevators, stairs, community rooms, playgrounds, gym facilities, swimming
pools, parking garages, parking lots, grassy or landscaped areas, restrooms, laundry
rooms, cooking areas, and eating areas.
“Employee” means any person who is employed by an employer in consideration for
direct or indirect monetary wages or profit.
“Employer” means any person who employs the services of an individual person.
"Enclosed area" means an area in which outside air cannot circulate freely to all parts of
the area, and includes an area that has any type of overhead cover whether or not that
cover includes vents or other openings and at least three walls or other vertical
boundaries of any height whether or not those boundaries include vents or other
openings; or four walls or other vertical boundaries that exceed six feet in height whether
or not those boundaries include vents or other openings.
“Multi-unit Residence” means property containing two or more attached units, including,
but not limited to, apartment buildings, condominiums, duplexes and triplexes, attached
single-family homes, senior and assisted living facilities, and long-term health care
facilities. “Multi-unit Residences” do not include the following:
1. a hotel or motel that meets the requirements of California Civil Code section
1940(b)(2);
2. a mobile home park;
3. a campground; and
4. a detached single-family home with or without an attached or detached accessory
dwelling unit, junior accessory dwelling unit, or second unit.
“Open to the public” means available for use by or accessible to the general public during
the normal course of business conducted by either private or public entities.
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Amending Chapter 19B – Smoking Prohibitions in Multi-Family Housing and Public Events
City Council Regular Meeting | February 27, 2023
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“Park” means a park, playground, swimming pool, recreation center or any other area in
the city, owned or used by the city and devoted to active or passive recreation, with the
exceptions that “park” does not include the Gilroy Municipal Golf Course, Gilroy Gardens,
or Christmas Hill Park during the Gilroy Garlic Festival.
"Person" means any natural person, business, cooperative association, nonprofit entity,
personal representative, receiver, trustee, assignee, or other legal entity including
government agencies.
"Public event" means any event which may be open to or attended by the general public,
including a farmer’s market, parade, craft fair, or similar event. Public events may be
located within an enclosed or unenclosed area to which the public is invited or in which
the public is permitted. Smoking is permitted on streets and sidewalks being used in a
traditional capacity as pedestrian or vehicular thoroughfares, unless it is being used in
association with a public event, or otherwise prohibited by this chapter or other law. The
prohibition of smoking at public events includes the full area permitted or identified as the
boundaries of the public event, plus a reasonable distance area from the boundary of the
event, as defined in this chapter.
“Restaurant” means any coffee shop, cafeteria, short order cafe, luncheonette, tavern,
cocktail lounge, sandwich stand, soda fountain, private school cafeteria or eating
establishment, and any other eating establishment, organization, club (including veterans
club), boarding house, or guesthouse, the primary function of which is to give, sell or offer
for sale food to the public, guests, patrons, or employees, except that the term “restaurant”
shall not include a tavern or a cocktail lounge if said tavern or cocktail lounge is a bar as
defined in this section.
"Reasonable Distance" means a distance of twenty-five (25) feet in any direction from
any doorway, window opening, crack, or vent of any area where smoking is prohibited
under of this chapter. Nothing in this definition shall limit or reduce the minimum smoking
prohibition distance requirements for any publicly owned or utilized building or structure,
subject to state or federal regulations.
“Smoke” or “smoking” means and includes inhaling or exhaling upon, burning or carrying
any lighted smoking equipment for tobacco, or any other plant or product used for the
personal habit commonly known as smoking.
"Unenclosed area" means any area that is not an enclosed area.
“Unit” means a personal dwelling space, even one lacking cooking facilities or private
plumbing facilities, and includes any associated exclusive-use area, such as a private
balcony, porch, deck, or patio. “Unit” includes, without limitation, an apartment; a
condominium; a townhouse; a room in a senior facility; a room in a long-term health care
facility, assisted living facility, community care facility, or hospital; a room in a hotel or
motel; a dormitory room; a room in a single-room occupancy facility; a room in a homeless
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Amending Chapter 19B – Smoking Prohibitions in Multi-Family Housing and Public Events
City Council Regular Meeting | February 27, 2023
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shelter; a mobile home; a camper vehicle or tent; a single-family home; and an accessory
dwelling unit, junior accessory dwelling unit, or second unit.
SECTION III
That Section 19B.2 shall be amended to read as follows.
19B.2 Smoking prohibited.
Labor Code Section 6404.5 prohibits smoking in enclosed places of employment (as
defined in that code section) in the State of California. In addition, pursuant to Labor Code
Section 6404.5, local governments retain the right to adopt and implement stricter anti-
smoking requirements than are imposed pursuant to Labor Code Section 6404.5,
including the right to regulate and prohibit smoking in any area not defined as a place of
employment or in which smoking is not regulated pursuant to Labor Code Section 6404.5.
This chapter is intended to supplement the provisions of Labor Code Section 6404.5. All
places within the city shall be subject to the provisions of Labor Code Section 6404.5, as
such section may be amended or recodified from time to time. In addition, smoking is
prohibited in all of the following places within the city:
(1) Outdoor Eating Areas. Fifty (50) percent of outdoor eating areas for all restaurants,
which shall be reserved for nonsmokers.
(2) Elevators. Elevators in buildings generally open to and used by the public, including
elevators in apartment buildings, irrespective of the number of living units in such
apartment buildings.
(3) Hospitals and Health Care Facilities. Every public and private health care facility
including, but not limited to, hospitals, clinics, and physicians and dentists offices,
provided that smoking is permitted in patient smoking areas of long-term health care
facilities, as defined in Section 1418 of the Health and Safety Code.
(4) Places of Public Assembly. Hearing rooms or places of public assembly owned by the
city or in which the business of the city, or any of its boards or commissions, is conducted.
(5) Public Lobbies, Public Hallways. Waiting rooms, lobbies and public hallways of every
building under direct or indirect control of the city.
(6) Museums, Libraries, Galleries. All museums, libraries and galleries.
(7) Designated Nonsmoking Areas. Any area of any business, governmental or charitable
establishment which has been designated by the owner or person in charge of such
establishment as a nonsmoking area and marked with a nonsmoking sign or signs.
Exceptions set forth later in this chapter shall not apply to this subsection.
(8) Public Restrooms. Public restrooms.
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Amending Chapter 19B – Smoking Prohibitions in Multi-Family Housing and Public Events
City Council Regular Meeting | February 27, 2023
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(9) Parks. Parks grounds and parking lot(s).
(10) Public Events as defined in Section 19B.1.
(11) Multi-unit housing as regulated by Section 19B.6.
SECTION IV
That Section 19B.6 shall be added to read as follows.
19B.6 Smoking prohibited - multi-unit housing
(a) Beginning April 1, 2023, smoking is prohibited and no person shall smoke inside any
new or existing unit of a Multi-unit Residence, in any enclosed or unenclosed Common
Area of a Multi-unit Residence, or within a Reasonable Distance of any operable doorway,
window, opening, or vent of a Multi-unit Residence.
(b) Smoking is prohibited in Multi-unit Residences as provided in subsection (a) of this
section, except that a person with legal control over a Common Area, or authorized
representative, may designate a portion of the common area as a designated smoking
area; provided, that at all times the designated smoking area complies with subsection
(c) of this section.
(c) Designated Smoking Areas in Multi-unit Residences. A designated smoking area shall:
1. Be an Unenclosed Area;
2. Be a Reasonable Distance from Unenclosed Areas primarily used by children and
unenclosed areas with improvements that facilitate physical activity including, for
example, playgrounds, tennis courts, swimming pools, and school campuses;
3. Be a Reasonable Distance in any direction from any operable doorway, window,
opening or other vent into an enclosed area that is located at the Multi-unit
Residence and is a Nonsmoking Area;
4. Be a Reasonable Distance in any direction from a Nonsmoking Area and/or any
operable doorway, window, opening or other vent into an enclosed area of
adjacent private property;
5. Have a clearly marked perimeter;
6. Have a receptacle for cigarette butts that is emptied and maintained; and
7. Be identified by conspicuous signs.
(d) Smoking is prohibited in adjacent unenclosed property within a Reasonable Distance
in any direction of any doorway, window, opening, or other vent into an enclosed area of
a Multi-unit Residence.
(e) Common Areas Free from Smoking Waste. Persons with legal control over common
areas in Multi-unit Residences, and their authorized representatives, shall ensure that all
Common Areas except those meeting the requirements of subsection (C) of this section
remain free of Smoking and tobacco waste, and ash trays, ash cans, or other receptacles
designed for or primarily used for disposal of smoking and tobacco waste.
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Amending Chapter 19B – Smoking Prohibitions in Multi-Family Housing and Public Events
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(f) Signage. “No smoking” signs shall be posted as required by Section 19B.4 of this
chapter but are not required inside any unit of a Multi-unit Residence. Signs shall be
maintained by the person or persons with legal control over the common areas or the
authorized representative of such person.
(g) Lease Terms. Every lease or other rental agreement for the occupancy of a new or
existing unit in a Multi-unit Residence entered into, renewed, or continued month-to-
month after April 1, 2023 shall include the following:
1. A clause providing that it is a material breach of the agreement to Smoke or allow
Smoking:
a. in the Unit, including exclusive-use areas such as balconies, porches, or
patios; and
b. in any Common Area of the Multi-unit Residence other than a designated
Smoking area.
2. A description of and/or image depicting the location(s) of any designated Smoking
area(s) on the property, if any.
3. A clause expressly conveying third-party beneficiary status to all occupants of the
Multi-unit Residence as to the Smoking provisions of the lease or other rental
agreement. Such a clause shall provide that any tenant of the Multi-unit Residence
may sue another tenant/owner to enforce the Smoking provisions of the agreement
but that no tenant shall have the right to evict another tenant for a breach of the
Smoking provisions of the agreement.
(h) Whether or not a landlord complies with subsection (g) of this section, the clauses
required by that subsection shall be implied and incorporated by law into every agreement
to which subsection (g) of this section applies and shall become effective as of the earliest
possible date on which the landlord could have made the insertions pursuant to
subsection (g) of this section.
(i) Other Requirements and Prohibitions
1. No Person shall dispose of used Smoking waste within the boundaries of an area
in which Smoking is prohibited by this chapter.
2. The presence of Smoking waste receptacles in violation of subsection (i)(1) above
or the absence of signs shall not be a defense to a violation of any provision of this
chapter.
3. Each instance of Smoking in violation of this chapter shall constitute a separate
violation. For violations other than Smoking, each day of a continuing violation of
this chapter shall constitute a separate violation.
(j) Violation – penalty
1. For violations of this Section 19B.6, the remedies provided by this article are
cumulative and in addition to any other remedies available at law or in equity.
Except as otherwise provided, enforcement of this chapter is at the sole discretion
of the city. Nothing in this chapter shall create a right of action in any person against
the city or its agents to compel public enforcement of this article against any party.
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Ordinance No. 2023-XX
Amending Chapter 19B – Smoking Prohibitions in Multi-Family Housing and Public Events
City Council Regular Meeting | February 27, 2023
Page 7 of 8
1
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2. Any person who violates any of the provisions of this Section 19B.6 shall be guilty
of an infraction and upon conviction thereof shall be punished as provided in
Chapter 1.7 or, in the alternative, subject to enforcement action pursuant to
Chapter 6A.13: Administrative citation.
3. Any violation of this Section 19B.6 is hereby declared to be a public nuisance.
4. In addition to other remedies provided by this section or otherwise available at law
or in equity, any violation of this section may be remedied by a civil action brought
by the city attorney, including, without limitation, administrative or judicial nuisance
abatement proceedings, civil code enforcement proceedings, and suits for
injunctive relief.
5. Owners, operators, property managers, and officers of homeowners’ associations
for residential properties, whether rental or owner-occupied, are required to post
signs in accordance with Section 19B.4 and provide notice to residents or tenants
of the requirements of this Chapter. Owners, operators, and property managers of
rental property must include the requirements of Section 19B.6(g) in their leases
or other rental agreements. If the owners, operators, property managers, and
officers of rental property and homeowners’ associations for residential properties
have satisfied these requirements, they shall not be responsible for violations of
the requirements of this chapter by tenants or residents, guests, or invitees of
tenants or residents.
SECTION V
If any section, subsection, sentence, clause or phrase of this Ordinance is for any reason
held to be invalid or unconstitutional, such decision shall not affect the validity of the
remaining portions of this ordinance. The City Council of the City of Gilroy hereby declares
that it would have passed and adopted this ordinance, and each section, subsection,
sentence, clause or phrase hereof, irrespective of the fact that any one or more sections,
subsections, sentences, clauses or phrases may be declared invalid or unconstitutional.
SECTION VI
This Ordinance shall take effect thirty (30) days after its adoption. The City Clerk is hereby
directed to publish this Ordinance or a summary thereof pursuant to Government Code
Section 36933.
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Ordinance No. 2023-XX
Amending Chapter 19B – Smoking Prohibitions in Multi-Family Housing and Public Events
City Council Regular Meeting | February 27, 2023
Page 8 of 8
1
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PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF GILROY this 27th
day of February 2023 by the following vote:
AYES:COUNCIL MEMBERS:
NOES:COUNCIL MEMBERS:
ABSTAIN:COUNCIL MEMBERS:
ABSENT:COUNCIL MEMBERS:
APPROVED:
Marie Blankley, Mayor
ATTEST:
_______________________
Thai Nam Pham, City Clerk
7.5
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CCityy off Gilroy
STAFF REPORT
Agenda Item Title: Introduction of an Ordinance of the City Council of the
City of Gilroy Amending Chapter 19B of the Gilroy City
Code Relating to Smoking Pollution Control to Prohibit
Smoking at Multi-family Housing Properties and Public
Events
Meeting Date:February 6, 2023
From:Jimmy Forbis, City Administrator
Department:Administration
Submitted By:Bryce Atkins, Assistant to the City Administrator
Prepared By:Bryce Atkins, Assistant to the City Administrator
STRATEGIC PLAN GOALS Promote Safe Affordable Housing for All
RECOMMENDATION
1. Motion to read the ordinance by title only and waive further reading of the
ordinance; and
2. Introduce an Ordinance of the City Council of the City of Gilroy Amending Chapter
19B of the Gilroy City Code Relating to Smoking Pollution Control to Prohibit
Smoking at Multi-family Housing Properties and Public Events.
BACKGROUND
The item was initiated by Council on May 16, 2022, to agendize a discussion regarding
Chapter 19B relating to smoking prohibitions. The item was heard by the City Council at
the regular City Council meeting on October 3, 2022. At that time, the Council provided
direction to bring back an ordinance banning smoking at multi-family housing properties
as well as at public events. Staff began development and returned to Council at the
January 23, 2023 meeting to receive additional feedback on a few of the ordinance
provisions based upon its research. Having that feedback, staff completed the
development of the proposed ordinance, and is before the Council for the introduction of
the new ordinance.
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Introduction of An Ordinance; Prohibit Smoking at Multi-Family Housing Properties and Pu
Events
City of Gilroy Page 2 of 3 February 6, 2023
ANALYSIS
Staff commenced a review of other municipal ordinances in Santa Clara County of
ordinances relating to the prohibition of smoking at multi-family housing (MFH) properties,
as well as at public events. Staff also received specific direction on key terms of
prohibitions that were not specifically addressed in the direction but were in other example
ordinances.
The proposed changes are described below. Attached to this staff report is the proposed
ordinance effectuating the expanded prohibitions, as well as a redline edit that shows the
changes to the Gilroy City Code if adopted.
19B.1 Definitions
These changes include definitions of terms in the new code language. Key new definitions
include the establishment of MFH property as being of two or more units, as well as the
exceptions for hotels, mobile home parks, and accessory dwelling units, to name a few.
Additionally, the definition of Reasonable Distance is used to establish buffer zones
around areas where smoking is prohibited. The third definition identified for specific
attention is the definition of Public Event, which is any event that may be open to or
attended by the general public, including a farmer’s market, parade, craft fair, or similar
event in which the public is invited or in which the public is permitted. Smoking is still
permitted on streets and sidewalks being used in a traditional capacity as a pedestrian or
vehicular thoroughfares unless it is being used in association with a public event, at which
point if it is in the public event area or reasonable distance smoking will be prohibited.
There are additional definitions contained in the ordinance to aid in interpreting the code
language.
19B.2 Smoking Prohibited
Public events and MFH are added to the list of areas smoking is prohibited within.
19B.6 Smoking Prohibited – Multi-Family Housing
This is the addition that contains the regulations prohibiting smoking at MFH properties.
The prohibition includes the requirement that the ban includes new and existing units,
enclosed or unenclosed common areas, within a reasonable distance. There is an option
for the property owner to have a designated smoking area provided the requirements
contained in the ordinance are met is included in lease agreements, as well as granting
the status of a third-party beneficiary to other tenants of MFH properties to sue tenants
violating the code to enforce compliance. It also allows the City to enforce but does not
require the City to enforce these provisions. Property owners and managers who follow
the requirements of this chapter would not be responsible for violations of the
requirements by tenants or residents, or their guests.
ALTERNATIVES
Council may modify or reject the proposed ordinance. Should Council wish to modify the
proposed ordinance, staff will take those comments, modify the ordinance and restart the
adoption process.
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Introduction of An Ordinance; Prohibit Smoking at Multi-Family Housing Properties and Pu
Events
City of Gilroy Page 3 of 3 February 6, 2023
FISCAL IMPACT/FUNDING SOURCE
There are no anticipated fiscal impacts from the adoption of this ordinance aside from
outreach efforts which will be absorbed within existing budget appropriations.
PUBLIC OUTREACH
There have been multiple agenda items on publicly posted meeting agendas for this topic.
These include the meetings of October 3, 2022, and January 23, 2023, and this agenda.
Additionally, this item was advertised in the newspaper for this introduction as well as
adoption potentially on February 27, 2023.
NEXT STEPS
If Council introduces the ordinance, the ordinance will return to the following meeting of
February 27, 2023, on the consent calendar.
Attachments:
1. Draft Ordinance
2. Gilroy City Code Chapter 19B – Redline edits
7.5
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Page 1 of 2
City of Gilroy
STAFF REPORT
Agenda Item Title:Adopt an Ordinance of the City Council of the City of
Gilroy Amending Chapter 19C of the Gilroy City Code
Relating to Social Host Accountability to Increase the
Penalty Amounts and Increase the Period of Time for
Issuing Citations
Meeting Date:February 27, 2023
From:Jimmy Forbis, City Administrator
Department:Administration
Submitted By:Bryce Atkins, Assistant to the City Administrator
Prepared By:Bryce Atkins, Assistant to the City Administrator
STRATEGIC PLAN GOALS Promote Safe Affordable Housing for All
RECOMMENDATION
Council adopt the ordinance.
BACKGROUND
At the June 6, 2022 Regular City Council Meeting, the City Council initiated a future
agenda item to bring back the social host ordinance for review. The ordinance was
reviewed at the January 9, 2023 Regular City Council Meeting, where the direction was
received to increase the penalties for a first offense up to $1,000 and increase the time
period for issuing citations with the amount of time to be proposed by staff. Staff
returned to Council on February 6, 2023, with a proposed ordinance to amend the
penalty to $1,000 for the first offense, and $2,000 for the second and each subsequent
offense. Additionally, the ordinance introduced establishes an extended window to issue
citations, setting the timeframe for 180 days. No changes to the introduced ordinance
were made.
7.6
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Adopt an Ordinance of the City Council of the City of Gilroy Amending Chapter 19C of the
Gilroy City Code Relating to Social Host Accountability to Increase the Penalty Amounts and
Increase the Period of Time for Issuing Citations
City of Gilroy Page 2 of 2 February 27, 20235
9
2
ANALYSIS
The analysis was conducted on the staff report for the ordinance introduction, which is
attached to this staff report.
ALTERNATIVES
Council may reject the ordinance. This is not recommended, as the ordinance is
consistent with the direction given by the City Council. Should the City Council wish to
amend the proposed ordinance, the adoption process would need to be restarted.
FISCAL IMPACT/FUNDING SOURCE
No direct fiscal impacts are expected from the adoption process. Revenues from
penalties may be increased, depending on the number of violations that occur and are
successfully cited.
PUBLIC OUTREACH
The ordinance was introduced at a public meeting of the City Council on February 6.
The proposed ordinance and dates the item was before Council were advertised in the
newspaper, and were listed on the publicly posted agendas for January 9, 2023,
February 6, 2023, and the February 27, 2023 regular City Council meetings.
NEXT STEPS
If adopted, the ordinance will be transmitted to our City Code Publisher for the
amendment to the City Code.
Attachments:
1. Proposed Ordinance Amending Chapter 19C - Social Host Accountability
2. Staff Report of February 6, 2023
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ORDINANCE NO. 2023-XX
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GILROY
AMENDING CHAPTER 19C OF THE GILROY CITY CODE RELATING TO
SOCIAL HOST ACCOUNTABILITY TO INCREASE THE PENALTY
AMOUNTS AND INCREASE THE PERIOD OF TIME FOR ISSUING
CITATIONS
WHEREAS, the City of Gilroy (City) is a municipal corporation, duly organized
under the constitution and laws of the State of California; and
WHEREAS, the occurrence of loud or unruly gatherings on private property where
alcoholic beverages are served to, consumed by or in the possession of underage
persons is harmful to the underage persons themselves, and is a threat to the public
health, safety, or quiet enjoyment of residential property and the general welfare; and
WHEREAS, the imposition of administrative penalties on persons for loud or unruly
gatherings where alcohol is consumed by, served to or in the possession of underage
persons is a reasonable and necessary means to protect and promote the health, safety,
and general welfare of the youth and other residents of the City of Gilroy; and
WHEREAS, the imposition of an administrative fee upon social hosts and/or
landowners who knowingly allow such loud or unruly gatherings to occur on their
premises, at their residence, or at rented facilities where alcoholic beverages are served
to, consumed by, or in the possession of underage persons is a reasonable and
necessary means to offset the municipal costs associated with providing fire, police and
other emergency services to loud or unruly gatherings; and
WHEREAS, Ordinance 2007-14 was adopted on June 4, 2007 to establish
Chapter 19C of the Gilroy City Code relating to social host accountability, including the
establishment of fines and time period for issuance of administrative citations; and
WHEREAS, the City Council has determined that the fine amount is too low and
desires to increase the fine amount associated with violations; and
WHEREAS, the time period of thirty (30) days after the violation to issue the
citation is too short to be reasonable in the instances when multiple citations are possible
and/or investigations into the violations are needed to determine proper citation issuance;
and
WHEREAS, the City Council introduced the ordinance on February 6, 2023.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GILROY DOES
HEREBY ORDAIN AS FOLLOWS:
SECTION I
The foregoing recitals are true and correct and are incorporated herein by this reference.
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Ordinance No. 2023-XX
Amending Chapter 19C - Social Host Accountability
City Council Regular Meeting | February 27, 2023
Page 2 of 3
1
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SECTION II
That Section 19C.4(a)(1) shall be amended to read as follows.
(1) Administrative Penalties. A first violation of this section shall result in a citation
with a one-thousand-dollar ($1,000.00) penalty. A second or subsequent violation
within a twelve-month period shall result in a citation with a two-thousand-dollar
($2,000.00) penalty.
SECTION III
That Section 19C.4(a)(2) shall be amended to read as follows.
(2) The police shall give notice of a violation of this section by issuing an
administrative citation to any and all persons identified by the enforcement officer
within one hundred eighty (180) days of the violation. The administrative citation
shall also give notice of the right to request an administrative hearing to challenge
the validity of the administrative citation and the time for requesting that hearing
pursuant to section 19C.6 below.
SECTION IV
If any section, subsection, sentence, clause or phrase of this Ordinance is for any reason
held to be invalid or unconstitutional, such decision shall not affect the validity of the
remaining portions of this ordinance. The City Council of the City of Gilroy hereby declares
that it would have passed and adopted this ordinance, and each section, subsection,
sentence, clause or phrase hereof, irrespective of the fact that any one or more sections,
subsections, sentences, clauses or phrases may be declared invalid or unconstitutional.
SECTION V
This Ordinance shall take effect thirty (30) days after its adoption. The City Clerk is hereby
directed to publish this Ordinance or a summary thereof pursuant to Government Code
Section 36933.
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Ordinance No. 2023-XX
Amending Chapter 19C - Social Host Accountability
City Council Regular Meeting | February 27, 2023
Page 3 of 3
1
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PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF GILROY this 27th
day of February 2023 by the following vote:
AYES:COUNCIL MEMBERS:
NOES:COUNCIL MEMBERS:
ABSTAIN:COUNCIL MEMBERS:
ABSENT:COUNCIL MEMBERS:
APPROVED:
Marie Blankley, Mayor
ATTEST:
_______________________
Thai Nam Pham, City Clerk
7.6
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CCityy off Gilroy
STAFF REPORT
Agenda Item Title: Introduction of An Ordinance of the City Council of the
City of Gilroy Amending Chapter 19C of the Gilroy City
Code Relating to Social Host Accountability to Increase
the Penalty Amounts and Increase the Period of Time
for Issuing Citations
Meeting Date:February 6, 2023
From:Jimmy Forbis, City Administrator
Department:Administration
Submitted By:Bryce Atkins, Assistant to the City Administrator
Prepared By:Bryce Atkins, Assistant to the City Administrator
STRATEGIC PLAN GOALS Not Applicable
RECOMMENDATION
a) Motion to read the ordinance by title only and waive further reading; and
b) Introduce an Ordinance of the City Council of the City of Gilroy Amending Chapter
19C of the Gilroy City Code Relating to Social Host Accountability to Increase the
Penalty Amounts and Increase the Period of Time for Issuing Citations.
BACKGROUND
At the June 6, 2022 Regular City Council Meeting, the City Council initiated a future
agenda item to bring back the social host ordinance for review. The ordinance was
reviewed at the January 9, 2023 Regular City Council Meeting, where direction was
received to increase the penalties for a first offense up to $1,000 and increase the time
period for issuing citations with the amount of time to be proposed by staff.
ANALYSIS
There are no changes proposed relating to the regulatory nature of the ordinance. The
only changes are those two that were requested for the enforcement of those regulations.
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An Ordinance of the City Council of the City of Gilroy - Social Host Accountability to Incr
the Penalty Amounts and Increase the Period of Time for Issuing Citations
City of Gilroy Page 2 of 2 February 6, 2023
As such, attached is an ordinance for Council consideration to introduce for future
adoption.
The ordinance amends Section 19C.4(a)(1) to change the initial penalty to $1,000, the
second and each subsequent offense to $2,000. This would not change the third or
subsequent violations by comparison, as the penalty is escalated in the second citation
amount to the same amount as the third violation under the current code – $2,000. This
penalty structure is consistent with the Fireworks Host Liability penalties.
The ordinance also amends Section 19C.4(a)(2), to allow for administrative citations to
be issued up to one-hundred eighty (180) days, roughly six months after the violation.
Staff would seek to issue the citations as close to the violation date as possible, but in the
instance of multiple citations, and/or if the investigation into the incident is required, this
would provide a more reasonable amount of time for this work to be conducted and
citations issued.
ALTERNATIVES
Council may adopt, amend, or reject the proposed ordinance.
FISCAL IMPACT/FUNDING SOURCE
There is no defined fiscal impact to the City as the revenue from penalties would only be
triggered in the case of a violation. In the event of a violation being issued, the City would
receive $750 more per first violation, $1,000 more for each second violation, and the
penalty would be the same for the third and each subsequent violation.
PUBLIC OUTREACH
This item was discussed at the January 9, 2023 Regular City Council Meeting.
Additionally, the introduction of this ordinance and its future date for adoption was
advertised in the newspaper and this agenda item was included on the publicly posted
agenda for this meeting.
NEXT STEPS
Should Council introduce the ordinance, the ordinance would be brought before Council
on the February 27th regular Council Meeting for adoption.
Attachments:
1. Draft Social Host Accountability Amendment Ordinance
7.6
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Page 1 of 1
City of Gilroy
STAFF REPORT
Agenda Item Title:Claim of Loreen Clark (The City Administrator
recommends a "yes" vote under the Consent
Calendar shall constitute a denial of the claim).
Meeting Date:February 27, 2023
From:Jimmy Forbis, City Administrator
Department:Administrative Services
Submitted By:LeeAnn McPhillips, Assistant City Administrator
Prepared By:LeeAnn McPhillips, Assistant City Administrator
STRATEGIC PLAN GOALS Not Applicable
RECOMMENDATION
Based on the recommendation from Municipal Pooling Authority (MPA) and/or legal
counsel, this claim is recommended for rejection.
EXECUTIVE SUMMARY
Based on the recommendation from Municipal Pooling Authority (MPA) and/or legal
counsel, the following claim is submitted to the City Council for rejection at the February
27, 2023 meeting:
• Claim of Loreen Clark
Attachments:
1. Claim of Loreen Clark
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7.7
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7.7
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City of Gilroy
STAFF REPORT
Agenda Item Title:Award a Contract to Itech Solution in the Amount of
$134,140 with a project contingency of $13,414 (10%)
and Approve a Project Expenditure of $147,554 for
Gilroy Sports Park Playground Surface Repair, Project
No. 23-PW-276
Meeting Date:February 27, 2023
From:Jimmy Forbis, City Administrator
Department:Public Works
Submitted By:Daryl Jordan, Public Works Director
Prepared By:Michael Lewis, Management Analyst
STRATEGIC PLAN GOALS Ensure Neighborhood Equity from City Services
RECOMMENDATION
Award a contract to Itech Solution in the amount of $134,140 with an additional project
contingency of $13,414 (10%), for a total construction cost of $147,554 for the Gilroy
Sports Park Playground Surface Repair, Project No. 23-PW-276, and authorize the City
Administrator to execute the contract and associated documents.
EXECUTIVE SUMMARY
The State of California Department of Parks and Recreation, Office of Grants and Local
Services (OGALS) allocates grant funds to cities and counties based on population
under Proposition 68. OGALS offers two grant programs: 1) The General Per Capita
Program and 2) the Urban County Per Capita Program. Through both programs, the
City of Gilroy will receive $78,750 for the Gilroy Sports Park Playground Surface Repair,
Project No. 23-PW-276 (Project), approved by Resolution 2020-64 which was adopted
by City Council on October 19, 2020.
Staff advertised the Project in the San Jose Mercury Newspaper, ARC Document
Solutions, and on the City’s website and received two bids. After a successful bid
opening, staff recommends awarding a contract to the lowest responsive bidder, Itech
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Award a contract to Itech Solution in the amount of $147,554 for Gilroy Sports Park Playground
Surface Repair, Project No. 23-PW-276
City of Gilroy Page 2 of 3 February 27, 20235
6
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Solution. The contract price from the successful contractor will be $147,554, including
contingency.
BACKGROUND
The State of California Department of Parks and Recreation Office of Grants and Local
Services allocates grant funds to cities and counties based on population with two grant
programs under Proposition 68: 1) The General Per Capita Program and 2) the Urban
County Per Capita.
On August 10, 2020, the City was notified that it received an allocation under the
Proposition 68 General Per Capita Grant Program. The City’s total allocation amount
from the General Per Capita Program is $177,952 and $34,182 from the Urban County
Per Capita for a total of $212,134.
The City applied for funding in October 2020 for two projects, the San Ysidro
Lighting/Picnic Area Improvement Project, and the Gilroy Sports Park Playground
Surface Repair Project. The San Ysidro Lighting/Picnic Area Improvements Project
would install/construct recreation features and support amenities at San Ysidro Park
that are consistent with the Park and Recreation Master Plan’s goal to “Pursue a variety
of financing mechanisms for acquisition, development, long-term operations and
maintenance of the parks and recreation system.”
The Gilroy Sports Park Playground Surface Repair, Project No. 23-PW-276 received
$78,750 from this allocation which will assist in the repair of the badly damaged
recycled playground rubber surface at Gilroy Sports Park. The current condition of the
rubberized surface at the Gilroy Sports Park is in disarray, replete with numerous
patches of missing rubber throughout the approximately 6,400 square foot area.
ANALYSIS
On October 19, 2020, the City Council approved Resolution 2020-64 which approved
the filing of the project application.
On December 9, 2022, staff advertised the Project in the San Jose Mercury News, ARC
Document Solutions, and on the City’s website with a bid opening date of January 2,
2023. One addendum was issued on December 22, 2022, which contained answers to
three questions regarding the project. Staff received two bids for the Project. A
summary of the bid results is shown below:
RANK COMPANY NAME TOTAL BID
AMOUNT
1 Itech Solution $134,140.00
2 VNH Builders $173,768.08
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Award a contract to Itech Solution in the amount of $147,554 for Gilroy Sports Park Playground
Surface Repair, Project No. 23-PW-276
City of Gilroy Page 3 of 3 February 27, 20235
6
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The lowest responsive bidder is Itech Solution with a total bid of $134,140. The
Engineer’s Estimate was $86,000. The engineer's estimate was low due to substantially
increased petroleum and labor costs over the last two years. The lowest bid is 56%
higher than the Engineer’s Estimate.
Staff anticipates construction of the Project to begin in March 2023 and be completed by
May 2023.
ALTERNATIVES
Council could choose to reject all bids. Staff does not recommend this option, as the
City will lose this grant funding opportunity for the Gilroy Sports Park if not used by June
30, 2024. The costs associated with this project are also likely to rise if a new round of
bidding occurs. The funding will provide much-needed attention and repairs to the
playground area that children mainly frequent, improving safety and overall peace of
mind.
FISCAL IMPACT/FUNDING SOURCE
Funding for this project would be drawn from the Landscaping Operating Budget of the
General Fund (Fund 100) as there are sufficient budgetary savings to fund the contract.
The City will absorb the cost of the project initially and staff will invoice the State of
California Department of Parks and Recreation’s OGALS Division the amount of
$78,750 for reimbursement to the City.
The remaining $68,804 will be funded by funds in the Landscaping Operating Budget in
the current fiscal year.
NEXT STEPS
With Council approval, the contract with Itech Solution will be executed, and staff will
work with the contractor to develop a final construction schedule to begin construction in
March 2023.
Attachments:
1. Gilroy Sports Park Contractor Signed
8.1
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SECTION 00500
AGREEMENT
GILROY SPORTS PARK PLAYGROUND SURFACE REPAIR
PROJECT No. 23-PW-276
THIS AGREEMENT, made this 27th day of February 2023, by and
between the City of Gilroy, hereinafter called the “City”, and Itech Solution
hereinafter called the “Contractor.”
W I T N E S S E T H:
WHEREAS, the City has caused the Contract Documents to be
prepared comprised of bidding and contract requirements and technical
specifications and drawings for the construction of the GILROY SPORTS
PARK PLAYGROUND SURFACE REPAIR, 23-PW-276, as described
therein, and
WHEREAS, the Contractor has offered to perform the proposed
work in accordance with the terms of the Contract Documents.
NOW, THEREFORE, in consideration of the mutual covenants
and agreements of the parties herein contained and to be performed, the
City and Contractor agree as follows:
Article 1. Work.
Contractor shall complete the Work as specified or indicated in the Contract
Documents.
Article 2. Contract Time.
The Work shall be completed by the Contractor in accordance with the
Contract Documents within the time period required by Paragraph 00810-
2.0, Time Allowed for Completion, subject to extension as expressly provided
in the Contract Documents.
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Gilroy Sports Park Playground Surface Repair Project No.23-PW-276
SECTION 00500-27
Article 3. Liquidated Damages.
The city and the contractor recognize that the city will suffer substantial damages
and significant financial loss as a result of the contractor’s delays in performance
of the work described in the contract documents. The city and the contractor
hereby acknowledge and agree that the damages and financial loss sustained as
a result of any such delays in performance will be extremely difficult and
impractical to ascertain. Therefore, the city and contractor hereby agree that in
the event of such delays in performance, the city shall be entitled to
compensation by way of liquidated damages (and not penalty) for the detriment
resulting therefrom in accordance with paragraph 00700-6.5, liquidated damages,
of the contract documents. The city and the contractor further agree that the
amounts designated as liquidated damages are a reasonable estimate of the
city’s damages and financial loss in the event of any such delays in performance
considering all of the circumstances existing as of the date of this agreement,
including the relationship of such amounts to the range of harm to the city which
reasonably could be anticipated as of the date of this agreement and the
expectation that proof of actual damages would be extremely difficult and
impractical.
By initialing this paragraph below, the parties hereto signify their approval and
consent to the terms of this article 3.
________________________________ ________________________________
City’s Initials Contractors Initials
Article 4. Contract Price.
In consideration of the Contractors performance of the Work in accordance with the
Contract Documents, the City shall pay the Contract Price set forth in the Contract
Documents.
Article 5. Contract Documents.
The Contract Documents which comprise the entire agreement between City and
Contractor concerning the Work consist of this Agreement (Section 00500 of the
Contract Documents) and the following, all of which are hereby incorporated into this
Agreement by reference with the same force and effect as if set forth in full.
Invitation to Bid
Instructions to Bidders
03
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Gilroy Sports Park Playground Surface Repair Project No.23-PW-276
SECTION 00500-28
Bid Documents
Designation of Subcontractors
Bid Guaranty Bond
Agreement
Acknowledgements
Performance Bond
Payment Bond
General Conditions
Supplementary Conditions
General Requirements
Standard Specifications (Caltrans, 2010 edition)
Technical Specifications
Drawings
Addenda, if any
Executed Change Orders, if any
Maintenance Bond
Notice of Award
Notice to Proceed
Article 6. Miscellaneous.
Capitalized terms used in this Agreement which are defined in Section 01090,
References, of the Contract Documents will have the meanings set forth in Section
01090, References.
Contractor shall not assign any rights, obligations, duties or responsibilities under or
interest in the Contract Documents without the prior written consent of the City, which
consent may be withheld by the City in its sole discretion. No assignment by the
Contractor of any rights, obligations, duties or responsibilities under or interests in the
Contract Documents will be binding on the City without the prior written consent of the
City (which consent may be withheld in City’s sole discretion); and specifically but
without limitation monies that may become due and monies that are due may not be
assigned without such consent (except to the extent that the effect of this restriction
may be limited by law), and unless specifically stated to the contrary in any written
consent to an assignment, executed by the City, no assignment will release or
discharge the assignor from any liability, duty, obligation, or responsibility under the
Contract Documents.
Subject to the foregoing, the Contract Documents shall be binding upon and shall inure
to the benefit of the parties hereto and their respective successors and assigns.
Nothing contained in the Contract Documents shall in any way constitute a personal
obligation of or impose any personal liability on any employees, officers, directors,
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Gilroy Sports Park Playground Surface Repair Project No.23-PW-276
SECTION 00500-29
agents or representatives of the City or its successor and assigns.
In accordance with California Business and Professions Code Section 7030, the
Contractor is required by law to be licensed and regulated by the Contractors’ State
License Board which has jurisdiction to investigate complaints against Contractors if a
complaint regarding a latent act or omission is filed within four years of the date of the
alleged violation. A complaint regarding a latent act or omission pertaining to structural
defects must be filed within 10 years of the date of the alleged violation. Any questions
concerning the Contractor may be referred to the Registrar, Contractors’ State License
Board, P.O. Box 26000, Sacramento, California 95826.
IN WITNESS WHEREOF, this agreement has been executed on this
day of , .
Name of Contractor Signature of City
City Administrator
Signature of Contractor Title of Signator
_____________________
Title of Signator Approved as to form by
City Attorney
ATTEST:ATTEST:
Signature Signature
Title of Signator Title of Signator
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owner
February 27 2023
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Page 1 of 4
City of Gilroy
STAFF REPORT
Agenda Item Title:Approve an Amendment to the Agreement for
Services with Alpine Landscapes for Community
Facilities District (CFD) Landscape Maintenance
Services to Include Trash and Debris Removal, the
Annual Cost for the Expanded Service, Extend the
Agreement for 18 Months, with a Total Cost of
$500,450 for the 18 Month Extension
Meeting Date:February 27, 2023
From:Jimmy Forbis, City Administrator
Department:Public Works
Submitted By:Daryl Jordan, Public Works Director
Prepared By:Michael Lewis, Management Analyst
STRATEGIC PLAN GOALS Maintain and Improve City Infrastructure
RECOMMENDATION
Approve an amendment with Alpine Landscapes to increase the annual contract
amount by $26,916 per year to a total amount of $333,633 and extend the term of the
existing agreement by 18 months for landscape and maintenance services and
authorize the City Administrator to execute the amendment and related documents.
EXECUTIVE SUMMARY
The City of Gilroy currently contracts with Alpine Landscapes to provide landscape
maintenance to Community Facilities District (CFD) sites throughout the City. This
approval followed a formal bid process and evaluation of several vendors. The current
contract will expire on February 28, 2023.
An amendment is being requested to extend the term of the agreement and to add
garbage and debris removal services to the existing contract.
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Approve Amendment to Agreement for Services with Alpine Landscapes for Community
Facilities District (CFD) Landscape Maintenance Services
City of Gilroy Page 2 of 4 February 27, 2023
BACKGROUND
City Council approved a landscape maintenance contract with Alpine Landscapes on
January 8, 2018, to augment landscape services throughout the City of Gilroy’s CFD
areas. The contract with Alpine expires on February 28, 2023.
New developments are required to include stormwater runoff Best Management
Practices (BMPs) which are mostly landscaped infiltration treatment facilities and control
measures. The most common BMPs in Gilroy are bio-swales and bio-detention basins
for managing stormwater runoff generated by developments. Best maintenance
practice regulations require mechanical, and not pesticide control of weeds, rodents,
and other vegetation. Manual trash and sediment removal are routine service
requirements including maintenance reports. In order to effectively manage these
Stormwater Management (SWM) treatment areas, Community Facilities District (CFD)
sites have been created.
The Community Facilities District is a financing mechanism for developments that do
not have Homeowners’ Associations (HOAs) that would otherwise manage
development-required landscape elements. As such, the CFD contract cost is heavily
impacted by the rigorous, manual maintenance required for these facilities.
The City’s current contract with Alpine Landscape provides landscape maintenance for
CFD sites in the city. The CFD landscape site maintenance expenses are paid out of
Fund 260 (Community Facilities District Fund). Residential properties in the CFD areas
are assessed the cost to maintain the sites under the district financing procedures.
ANALYSIS
Alpine Landscapes continues to provide the City with excellent maintenance services
and has proven to be responsive to any needs that arise. Parks staff has been pleased
by the quality of work that Alpine Landscapes provides for the maintenance and upkeep
of CFD areas. To continue the services outlined in the contract, staff is recommending
an amendment to be approved to include trash and debris removal in the scope of work.
Staff is also recommending that the current agreement with Alpine Landscapes be
extended by 18 months to expire on August 31, 2024.
The revised total not-to-exceed annual contract amount under this amendment is
$333,633 per year. At this new annual rate, the cost for the additional 6 months is
$166,817. The additional year would be $333,633, for a combined total of $500,450 for
the full 18-month period.
The City recently conducted a Request for Proposal (RFP) process for landscape
maintenance services. The proposals received were evaluated by the Public Works
Department and notices of intent to award were issued which were subsequently
subjected to protests. After further review of the protests and the City’s process for
scoping the services and evaluating the proposals, it was determined revisions are
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Approve Amendment to Agreement for Services with Alpine Landscapes for Community
Facilities District (CFD) Landscape Maintenance Services
City of Gilroy Page 3 of 4 February 27, 2023
warranted in the City’s procurement process of the service. Since the current agreement
is set to expire at the end of the month, staff determined it is in the best interest of the
City to cancel the RFPs and extend the existing agreement. This will provide continuity
of services and allow staff time to refine the RFP process and update the evaluation
criteria/metrics. Staff is recommending an 18-month extension, however, staff will plan
on conducting the next RFP process in about 12 months to allow sufficient time for the
process and ensure there is ample notice/transition period should the provider of the
services change as a result of the next RFP process.
ALTERNATIVES
Council could choose not to award the extension with Alpine Landscapes. Not using
Alpine Landscapes for this work would require an increase in staff time to conduct the
landscape maintenance work and would divert resources from other core services.
Current staffing levels do not support the amount of work needed to maintain the
entirety of the CFD area, as such, the City heavily relies on contractors to perform the
work.
FISCAL IMPACT/FUNDING SOURCE
Funding for the landscape maintenance services would be drawn from Fund 260
(Community Facilities District Fund) out of the Contractual Services budget. There is
sufficient funding to support the contract through the remainder of the fiscal year and
services will be budgeted for future years via the budget development process.
Current Annual Contract Amount = $306,717
Increase to Annual Amount = $26,916
o Trash and Debris Removal - $11,580
o 5% CPI (Consumer Price Index) increase - $15,336
Revised Annual Contract Amount = $333,633
Plus 6 additional months = $166,817
Plus 12 additional months = $333,633
Total contract extension increase = $500,450
NEXT STEPS
With Council approval of the contract with Alpine Landscapes, staff will finalize the
agreement and continue landscape services with the Contractor.
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Approve Amendment to Agreement for Services with Alpine Landscapes for Community
Facilities District (CFD) Landscape Maintenance Services
City of Gilroy Page 4 of 4 February 27, 2023
Attachments:
1. Alpine Landscapes – Fourth Amendment Contractor Signed
2. Alpine Landscapes – Third Amendment
3. Alpine Landscapes – Second Amendment
4. Alpine Landscapes – First Amendment
5. Alpine Landscapes – CFD Parks Landscape Maintenance Services
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-1- 4845-8215-5540v1 MDOLINGER\04706083
FOURTH AMENDMENT TO AGREEMENT FOR SERVICES WITH ALPINE
LANDSCAPES FOR COMMUNITY FACILITIES DISTRICT (CFD) LANDSCAPE
MAINTENANCE SERVICES
This Fourth Amendment to the Agreement for Services (“Fourth Amendment”) is made and
entered into as of February 22, 2023 (“Effective Date”), by and between the City of Gilroy, a
California municipal corporation (“CITY ”), and Alpine Landscapes (“CONTRACTOR”).
WHEREAS, CITY and CONTRACTOR are parties to that certain Agreement for Services,
effective on March 1, 2018, hereinafter referred to as “Original Agreement”; and
WHEREAS, CITY and CONTRACTOR have determined it is in their mutual interest to amend
certain terms of the Original Agreement.
NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth below
and for other valuable consideration, the receipt and adequacy of which is hereby acknowledged, the
parties hereto agree as follows:
1.Article TERM OF AGREEMENT of the Original Agreement shall be amended to read as
follows:
“This Agreement will become effective on March 1, 2018 and will continue in effect through August
31, 2024 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. Exhibit D of the Original Agreement shall be amended by the addition of the following services
to the Scope of Work:
•Trash & Debris Disposal
3.Article 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 annual compensation paid to CONTRACTOR exceed $333,633.”
3.This Amendment shall be effective on March 1, 2023.
4.Except as expressly modified herein, all of the provisions of the Original Agreement shall
remain in full force and effect. In the case of any inconsistencies between the Original Agreement and
this Amendment, the terms of this Amendment shall control.
5.This Amendment may be executed in counterparts, each of which shall be deemed an original,
but all of which together shall constitute one and the same instrument.
DocuSign Envelope ID: EAF1721C-49E3-4B64-A754-D05890652ED0 8.2
p. 147 of 530
-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 ALPINE LANDSCAPES
By: By:
[signature] [signature] Jimmy Forbis Ryan Dinsmore
[employee name] [name] City Administrator President/Owner
[title/department] [title]
Date: Date:
Approved as to Form ATTEST:
City Attorney City Clerk
DocuSign Envelope ID: EAF1721C-49E3-4B64-A754-D05890652ED0
2/22/2023
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-1- 4845-8215-5540v1 MDOLINGER\04706083
THIRD AMENDMENT TO AGREEMENT FOR SERVICES WITH ALPINE LANDSCAPES
FOR COMMUNITY FACILITIES DISTRICT (CFD) LANDSCAPE MAINTENANCE
SERVICES
This Third Amendment to the Agreement for Services (“Third Amendment”) is made and
entered into as of May 1, 2022 (“Effective Date”), by and between the City of Gilroy, a California
municipal corporation (“CITY ”), and Alpine Landscapes (“CONTRACTOR”).
WHEREAS, the City of Gilroy, a municipal corporation (“City”), and Alpine Landscapes
entered into that certain agreement entitled Agreement with Alpine Landscapes for Community
Facilities District (CFD) Landscape Maintenance effective on March 1, 2018 hereinafter referred to as
“Original Agreement”; and
WHEREAS, City and Alpine Landscapes 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 sites to
the Scope of Work:
• Harvest Park II Cohansey Ave Median Only
• Cougar Court
2. Article 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 annual compensation paid to CONTRACTOR exceed $306,717.00.”
3. This Amendment shall be effective on May 1, 2022.
4. Except as expressly modified herein, all of the provisions of the Original Agreement shall
remain in full force and effect. In the case of any inconsistencies between the Original Agreement and
this Amendment, the terms of this Amendment shall control.
5. This Amendment may be executed in counterparts, each of which shall be deemed an original,
but all of which together shall constitute one and the same instrument.
IN WITNESS WHEREOF, the parties have caused this Amendment to be executed as of the
dates set forth besides their signatures below.
DocuSign Envelope ID: 409678EA-078A-4E20-8390-97F1A958C3C1 8.2
p. 149 of 530
-2- 4845-8215-5540v1 MDOLINGER\04706083
CITY OF GILROY ALPINE LANDSCAPES
By: By:
[signature] [signature]
Jimmy Forbis Ryan Dinsmore
[employee name] [name]
City Administrator President/Owner
[title/department] [title]
Date: Date:
Approved as to Form ATTEST:
City Attorney City Clerk
DocuSign Envelope ID: 409678EA-078A-4E20-8390-97F1A958C3C1
6/8/2022
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DocuSign Envelope ID: CE9E3770-7B3B-4613-8D28-7B819AAE681D 8.2
p. 151 of 530
DocuSign Envelope ID: CE9E3770-7B3B-4613-8D28-7B819AAE681D 8.2
p. 152 of 530
FIRST AMENDMENT TO AGREEMENT FOR SERVICES WITH ALPINE LANDSCAPES
FOR (CFD) LANDSCAPE MAINTENANCE SERVICES
This First Amendment to the Agreement for Services ("First Amendment") is made and entered
into as of August 28, 2019 ("Effective Date"), by and between the City of Gilroy, a California
municipal corporation ("CITY"), and Alpine Landscapes ("CONTRACTOR").
WHEREAS, CITY and CONTRACTOR are parties to that certain Agreement for Services,
effective on January 4, 2018, hereinafter referred to as "Original Agreement"; and
WHEREAS, CITY and CONTRACTOR have determined it is in their mutual interest to amend
certain terms of the Original Agreement.
NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth below
and for other valuable consideration, the receipt and adequacy of which is hereby acknowledged, the
parties hereto agree as follows:
1. Article 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 annual compensation paid to CONTRACTOR exceed $262,477.00."
2. This Amendment shall be effective on August 28, 2019.
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.
CONTRACTOR:
Alpine Landsca e
By:
signature]
Ryan smore
employee name]
President/Owner
title/department]
CITY:
CITY OF GILROY
By:
signature]
Gabriel A. Gonzalez
name]
City Administrator
title]
Date: 3 /s 2 l Date: ppQ Q
f A rdved as to Form:
4845-8215-5540v1
ATT
MDOLINGER104706083
City Clerk
Gilroy City Attorney's Office
By, '
Citv Attornev
8.2
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AGREEMENT FOR SERVICES
For contracts over $5,000 — NON - DESIGN, NON - ENGINEERING TYPE CONTRACTOR)
This AGREEMENT made this 4 day of January, 2018, between:
CITY: City of Gilroy, having a principal place of business at
7351 Rosanna Street, Gilroy, California
and CONTRACTOR: Alpine Landscapes, having a principal place of business at 8595 Murray
Ave., Gilroy, CA 95020.
TERM OF AGREEMENT
This Agreement will become effective on March 1, 2018 and will continue in effect through
February 28, 2021 unless terminated in accordance with the provisions of Article 7 of this
Agreement.
Any lapse in insurance coverage as required by Article 5, Section D of this Agreement shall
terminate this Agreement regardless of any other provision stated herein. '7
Initial
INDEPENDENT CONTRACTOR STATUS
It is the express intention of the parties that CONTRACTOR is an independent contractor and
not an employee, agent, joint venture or partner of CITY. Nothing in this Agreement shall be
interpreted or construed as creating or establishing the relationship of employer and employee
between CITY and CONTRACTOR or any employee or agent of CONTRACTOR. Both parties
acknowledge that CONTRACTOR is not an employee for state or federal tax purposes.
CONTRACTOR shall not be entitled to any of the rights or benefits afforded to CITY'S
employees, including, without limitation, disability or unemployment insurance, workers'
compensation, medical insurance, sick leave, retirement benefits or any other employment
benefits. CONTRACTOR shall retain the right to perform services for others during the term of
this Agreement.
SERVICES TO BE PERFORMED BY CONTRACTOR
Specific Services
CONTRACTOR agrees to: Perform the services as outlined in Exhibit "A" ( "Specific
Provisions ") and Exhibit "B" ( "Scope of Services "), within the time periods described in
Exhibit "C" ( "Milestone Schedule ").
Method of Performing Services
CONTRACTOR shall determine the method, details and means of performing the above -
described services. CITY shall have no right to, and shall not, control the manner or determine
the method of accomplishing CONTRACTOR'S services.
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Employment of Assistants
CONTRACTOR may, at the CONTRACTOR'S own expense, employ such assistants as
CONTRACTOR deems necessary to perform the services required of CONTRACTOR by this
Agreement, subject to the prohibition against assignment and subcontracting contained in
Article 5 below. CITY may not control, direct, or supervise CONTRACTOR'S assistants in the
performance of those services. CONTRACTOR assumes full and sole responsibility for the
payment of all compensation and expenses of these assistants and for all state and federal income
tax, unemployment insurance, Social Security, disability insurance and other applicable
withholding.
Place of Work
CONTRACTOR shall perform the services required by this Agreement at any place or location
and at such times as CONTRACTOR shall determine is necessary to properly and timely
perform CONTRACTOR'S services.
COMPENSATION
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 $262,480.00.
Invoices
CONTRACTOR shall submit invoices for all services rendered.
Payment
Payment shall be due according to the payment schedule set forth in Exhibit "D ". No payment
will be made unless CONTRACTOR has first provided City with a written receipt of invoice
describing the work performed and any approved direct expenses (as provided for in
Exhibit "A", Section M incurred during the preceding period. If CITY objects to all or any
portion of any invoice, CITY shall notify CONTRACTOR of the objection within thirty (30)
days from receipt of the invoice, give reasons for the objection, and pay that portion of the
invoice not in dispute. It shall not constitute a default or breach of this Agreement for CITY not
to pay any invoiced amounts to which it has objected until the objection has been resolved by
mutual agreement of the parties.
Expenses
CONTRACTOR shall be responsible for all costs and expenses incident to the performance pf
services for CITY, including but not limited to, all costs of equipment used or provided by
CONTRACTOR, all fees, fines, licenses, bonds or taxes required of or imposed against
CONTRACTOR and all other of CONTRACTOR'S costs of doing business. CITY shall not be
8.2
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responsible for any expenses incurred by CONTRACTOR in performing services for CITY,
except for those expenses constituting "direct expenses" referenced on Exhibit "A."
OBLIGATIONS OF CONTRACTOR
Tools and Instrumentalities
CONTRACTOR shall supply all tools and instrumentalities required to perform the services
under this Agreement at its sole cost and expense. CONTRACTOR is not required to purchase
or rent any tools, equipment or services from CITY.
Workers' Compensation
CONTRACTOR agrees to provide workers' compensation insurance for CONTRACTOR'S
employees and agents and agrees to hold harmless, defend with counsel acceptable to CITY and
indemnify CITY, its officers, representatives, agents and employees from and against any and all
claims, suits, damages, costs, fees, demands, causes of action, losses, liabilities and expenses,
including without limitation reasonable attorneys' fees, arising out of any injury, disability, or
death of any of CONTRACTOR'S employees.
Indemnification of Liability, Duty to Defend
As to all liability, to the fullest extent permitted by law, CONTRACTOR shall defend, through
counsel approved by CITY (which approval shall not be unreasonably withheld), indemnify and
hold harmless CITY, its officers, representatives, agents and employees against any and all suits,
damages, costs, fees, claims, demands, causes of action, losses, liabilities and expenses,
including without limitation attorneys' fees, arising or resulting directly or indirectly from any
act or omission of CONTRACTOR or CONTRACTOR'S assistants, employees or agents,
including all claims relating to the injury or death of any person or damage to any property.
Insurance
In addition to any other obligations under this Agreement, CONTRACTOR shall, at no cost to
CITY, obtain and maintain throughout the term of this Agreement: (a) Commercial Liability
Insurance on a per occurrence basis, including coverage for owned and non -owned automobiles,
with a minimum combined single limit coverage of $1,000,000 per occurrence for all damages
due to bodily injury, sickness or disease, or death to any person, and damage to property,
including the loss of use thereof. As a condition precedent to CITY'S obligations under this
Agreement, CONTRACTOR shall furnish written evidence of such coverage (naming CITY, its
officers and employees as additional insureds on the Comprehensive Liability insurance policy
referred to in (a) immediately above via a specific endorsement) and requiring thirty (30) days
written notice of policy lapse or cancellation, or of a material change in policy terms.
Assignment
Notwithstanding any other provision of this Agreement, neither this Agreement nor any duties or
obligations of CONTRACTOR under this Agreement may be assigned or subcontracted by
CONTRACTOR without the prior written consent of CITY, which CITY may withhold in its
sole and absolute discretion.
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State and Federal Taxes
The CONTRACTOR is not a CITY'S employee; CONTRACTOR shall be responsible for
paying all required state and federal taxes. Without limiting the foregoing, CONTRACTOR
acknowledges and agrees that:
CITY will not withhold FICA (Social Security) from CONTRACTOR'S payments;
CITY will not make state or federal unemployment insurance contributions on
CONTRACTOR'S behalf;
CITY will not withhold state or federal income tax from payment to CONTRACTOR;
CITY will not make disability insurance contributions on behalf of CONTRACTOR;
CITY will not obtain workers' compensation insurance on behalf of CONTRACTOR.
Prevailing Wage
The CONTRACTOR agrees and acknowledges that it is its obligation to determine whether, and
to what extent, the work performed under this Agreement is subject to any Codes, Ordinances,
Resolutions, Rules and other Regulations and established policies of the City and the laws of the
State of California, the United States, the California Labor Code and Public Contract Code
relating to public contracting and prevailing wage laws. The CONTRACTOR shall ensure that
all subcontractors are informed and are required to pay prevailing wages in compliance with the
California Labor Code and the regulations thereunder. It shall be the duty of the CONTRACTOR
to post a copy of applicable prevailing wages at the job site. Prevailing wage information may be
obtained at www.dir.ca.gov.
OBLIGATIONS OF CITY
Cooperation of City
CITY agrees to respond to all reasonable requests of CONTRACTOR and provide access, at
reasonable times following receipt by CITY of reasonable notice, to all documents reasonably
necessary to the performance of CONTRACTOR'S duties under this Agreement.
Assignment
CITY may assign this Agreement or any duties or obligations thereunder to a successor
governmental entity without the consent of CONTRACTOR. Such assignment shall not release
CONTRACTOR from any of CONTRACTOR'S duties or obligations under this Agreement.
TERMINATION OF AGREEMENT
Sale of CONTRACTOR's Business/ Death of CONTRACTOR.
CONTRACTOR shall notify CITY of the proposed sale of CONTRACTOR's business no later
than thirty (30) days prior to any such sale. CITY shall have the option of terminating this
Agreement within thirty (30) days after receiving such notice of sale. Any such CITY
termination pursuant to this Article 7.A shall be in writing and sent to the address for notices to
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CONTRACTOR set forth in Exhibit A, Subsection V.H., no later than thirty (30) days after
CITY' receipt of such notice of sale.
If CONTRACTOR is an individual, this Agreement shall be deemed automatically terminated
upon death of CONTRACTOR.
Termination by City for Default of CONTRACTOR
Should CONTRACTOR default in the performance of this Agreement or materially breach any
of its provisions, CITY, at CITY'S option, may terminate this Agreement by giving written
notification to CONTRACTOR. For the purposes of this section, material breach of this
Agreement shall include, but not be limited to the following:
1. CONTRACTOR'S failure to professionally and /or timely perform any of the
services contemplated by this Agreement.
2. CONTRACTOR'S breach of any of its representations, warranties or covenants
contained in this Agreement.
CONTRACTOR shall be entitled to payment only for work completed in accordance with the
terms of this Agreement through the date of the termination notice, as reasonably determined by
CITY, provided that such payment shall not exceed the amounts set forth in this Agreement for
the tasks described on Exhibit C" which have been fully, competently and timely rendered by
CONTRACTOR. Notwithstanding the foregoing, if CITY terminates this Agreement due to
CONTRACTOR'S default in the performance of this Agreement or material breach by
CONTRACTOR of any of its provisions, then in addition to any other rights and remedies CITY
may have, CONTRACTOR shall reimburse CITY, within ten (10) days after demand, for any
and all costs and expenses incurred by CITY in order to complete the tasks constituting the scope
of work as described in this Agreement, to the extent such costs and expenses exceed the
amounts CITY would have been obligated to pay CONTRACTOR for the performance of that
task pursuant to this Agreement.
Termination for Failure to Make Agreed -Upon Payments
Should CITY fail to pay CONTRACTOR all or any part of the compensation set forth in Article
4 of this Agreement on the date due, then if and only if such nonpayment constitutes a default
under this Agreement, CONTRACTOR, at the CONTRACTOR'S option, may terminate this
Agreement if such default is not remedied by CITY within thirty (30) days after demand for such
payment is given by CONTRACTOR to CITY.
Transition after Termination
Upon termination, CONTRACTOR shall immediately stop work, unless cessation could
potentially cause any damage or harm to person or property, in which case CONTRACTOR shall
cease such work as soon as it is safe to do so. CONTRACTOR shall incur no further expenses in
connection with this Agreement. CONTRACTOR shall promptly deliver to CITY all work done
toward completion of the services required hereunder, and shall act in such a manner as to
facilitate any the assumption of CONTRACTOR's duties by any new CONTRACTOR hired by
the CITY to complete such services.
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GENERAL PROVISIONS
Amendment & Modification
No amendments, modifications, alterations or changes to the terms of this Agreement shall be
effective unless and until made in a writing signed by both parties hereto.
Americans with Disabilities Act of 1990
Throughout the term of this Agreement, the CONTRACTOR shall comply fully with all
applicable provisions of the Americans with Disabilities Act of 1990 ("the Act ") in its current
form and as it may be amended from time to time. CONTRACTOR shall also require such
compliance of all subcontractors performing work under this Agreement, subject to the
prohibition against assignment and subcontracting contained in Article 5 above. The
CONTRACTOR shall defend with counsel acceptable to CITY, indemnify and hold harmless the
CITY OF GILROY, its officers, employees, agents and representatives from and against all suits,
claims, demands, damages, costs, causes of action, losses, liabilities, expenses and fees,
including without limitation reasonable attorneys' fees, that may arise out of any violations of
the Act by the CONTRACTOR, its subcontractors, or the officers, employees, agents or
representatives of either.
Attorneys' Fees
If any action at law or in equity, including an action for declaratory relief, is brought to enforce
or interpret the provisions of this Agreement, the prevailing party will be entitled to reasonable
attorneys' fees, which may be set by the court in the same action or in a separate action brought
for that purpose, in addition to any other relief to which that party may be entitled.
Captions
The captions and headings of the various sections, paragraphs and subparagraphs of the
Agreement are for convenience only and shall not be considered nor referred to for resolving
questions of interpretation.
Compliance with Laws
The CONTRACTOR shall keep itself informed of all State and National laws and all municipal
ordinances and regulations of the CITY which in any manner affect those engaged or employed
in the work, or the materials used in the work, or which in any way affect the conduct of the
work, and of all such orders and decrees of bodies or tribunals having any jurisdiction or
authority over the same. Without limiting the foregoing, CONTRACTOR agrees to observe the
provisions of the Municipal Code of the CITY OF GILROY, obligating every contractor or
subcontractor under a contract or subcontract to the CITY OF GILROY for public works or for
goods or services to refrain from discriminatory employment or subcontracting practices on the
basis of the race, color, sex, religious creed, national origin, ancestry of any employee, applicant
for employment, or any potential subcontractor.
Conflict of Interest
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CONTRACTOR certifies that to the best of its knowledge, no CITY employee or office of any
public agency interested in this Agreement has any pecuniary interest in the business of
CONTRACTOR and that no person associated with CONTRACTOR has any interest that would
constitute a conflict of interest in any manner or degree as to the execution or performance of
this Agreement.
Entire Agreement
This Agreement supersedes any and all prior agreements, whether oral or written, between the
parties hereto with respect to the rendering of services by CONTRACTOR for CITY and
contains all the covenants and agreements between the parties with respect to the rendering of
such services in any manner whatsoever. Each party to this Agreement acknowledges that no
representations, inducements, promises or agreements, orally or otherwise, have been made by
any party, or anyone acting on behalf of any party, which are not embodied herein, and that no
other agreement, statement or promise not contained in this Agreement shall be valid or binding.
No other agreements or conversation with any officer, agent or employee of CITY prior to
execution of this Agreement shall affect or modify any of the terms or obligations contained in
any documents comprising this Agreement. Such other agreements or conversations shall be
considered as unofficial information and in no way binding upon CITY.
Governing Law and Venue
This Agreement shall be governed by and construed in accordance with the laws of the State of
California without regard to the conflict of laws provisions of any jurisdiction. The exclusive
jurisdiction and venue with respect to any and all disputes arising hereunder shall be in state and
federal courts located in Santa Clara County, California.
Notices
Any notice to be given hereunder by either party to the other may be effected either by personal
delivery in writing or by mail, registered or certified, postage prepaid with return receipt
requested. Mailed notices shall be addressed to the parties at the addresses appearing in
Exhibit "A ", Section V.H. but each party may change the address by written notice in
accordance with this paragraph. Notices delivered personally will be deemed delivered as of
actual receipt; mailed notices will be deemed delivered as of three (3) days after mailing.
Partial Invalidity
If any provision in this Agreement is held by a court of competent jurisdiction to be invalid, void
or unenforceable, the remaining provisions will nevertheless continue in full force without being
impaired or invalidated in any way.
Time of the Essence
All dates and times referred to in this Agreement are of the essence.
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CONTRACTOR agrees that waiver by CITY of any one or more of the conditions of
performance under this Agreement shall not be construed as waiver(s) of any other condition of
performance under this Agreement.
Executed at Gilroy, California, on the date and year first above written.
CONTRACTOR:
Alpine Landscape
By:
Name: R Dinsmore
Title: President /Owner
Social Security or Taxpayer
Identification Number 770295843
Approved as to Form
1-\<-A - - -
City Attorney
CITY:
CITY OF GILROY
By:
Name: Gabriel Gonzalez Os
Title: City Administrator
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EXHIBIT "A"
SPECIFIC PROVISIONS
PROJECT MANAGER
CONTRACTOR shall provide the services indicated on the attached Exhibit "B", Scope of
Services ( "Services "). (All exhibits referenced are incorporated herein by reference.) To
accomplish that end, CONTRACTOR agrees to assign Bill Headley, Parks Supervisor, who
will act in the capacity of Project Manager, and who will personally direct such Services.
Except as may be specified elsewhere in this Agreement, CONTRACTOR shall furnish all
technical and professional services including labor, material, equipment, transportation,
supervision and expertise to perform all operations necessary and required to complete the
Services in accordance with the terms of this Agreement.
NOTICE TO PROCEED /COMPLETION OF SERVICE
NOTICE TO PROCEED
CONTRACTOR shall commence the Services upon delivery to CONTRACTOR of a written
Notice to Proceed ", which Notice to Proceed shall be in the form of a written communication
from designated City contact person(s). Notice to Proceed may be in the form of e -mail, fax or
letter authorizing commencement of the Services. For purposes of this Agreement, Bill
Headley, Parks Supervisor shall be the designated City contact person(s). Notice to Proceed
shall be deemed to have been delivered upon actual receipt by CONTRACTOR or if otherwise
delivered as provided in the Section V.H. ( "Notices ") of this Exhibit "A ".
COMPLETION OF SERVICES
When CITY determines that CONTRACTOR has completed all of the Services in accordance
with the terms of this Agreement, CITY shall give CONTRACTOR written Notice of Final
Acceptance, and CONTRACTOR shall not incur any further costs hereunder. CONTRACTOR
may request this determination of completion when, in its opinion, it has completed all of the
Services as required by the terms of this Agreement and, if so requested, CITY shall make this
determination within two (2) weeks of such request, or if CITY determines that CONTRACTOR
has not completed all of such Services as required by this Agreement, CITY shall so inform
CONTRACTOR within this two (2) week period.
PROGRESS SCHEDULE
The schedule for performance and completion of the Services will be as set forth in the attached
Exhibit "C ".
PAYMENT OF FEES AND DIRECT EXPENSES
Payments shall be made to CONTRACTOR as provided for in Article 4 of this Agreement.
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Direct expenses are charges and fees not included in Exhibit "B ". CITY shall be obligated to
pay only for those direct expenses which have been previously approved in writing by CITY.
CONTRACTOR shall obtain written approval from CITY prior to incurring or billing of direct
expenses.
Copies of pertinent financial records, including invoices, will be included with the submission of
billing(s) for all direct expenses.
OTHER PROVISIONS
STANDARD OF WORKMANSHIP
CONTRACTOR represents and warrants that it has the qualifications, skills and licenses
necessary to perform the Services, and its duties and obligations, expressed and implied,
contained herein, and CITY expressly relies upon CONTRACTOR'S representations . and
warranties regarding its skills, qualifications and licenses. CONTRACTOR shall perform such
Services and duties in conformance to and consistent with the standards generally recognized as
being employed by professionals in the same discipline in the State of California.
Any plans, designs, specifications, estimates, calculations, reports and other documents furnished
under this Agreement shall be of a quality acceptable to CITY. The minimum criteria for
acceptance shall be a product of neat appearance, well - organized, technically and grammatically
correct, and checked and having the maker and checker identified. The minimum standard of
appearance, organization and content of the drawings shall be that used by CITY for similar
purposes.
RESPONSIBILITY OF CONTRACTOR
CONTRACTOR shall be responsible for the professional quality, technical accuracy, and the
coordination of the Services furnished by it under this Agreement. CONTRACTOR shall not be
responsible for the accuracy of any project or technical information provided by the CITY. The
CITY'S review, acceptance or payment for any of the Services shall not be construed to operate
as a waiver of any rights under this Agreement or of any cause of action arising out of the
performance of this Agreement, and CONTRACTOR shall be and remain liable to CITY in
accordance with applicable law for all damages to CITY caused by CONTRACTOR'S negligent
performance of any of the services furnished under this Agreement.
RIGHT OF CITY TO INSPECT RECORDS OF CONTRACTOR
CITY, through its authorized employees, representatives or agents, shall have the right, at any
and all reasonable times, to audit the books and records (including, but not limited to, invoices,
vouchers, canceled checks, time cards, etc.) of CONTRACTOR for the purpose of verifying any
and all charges made by CONTRACTOR in connection with this Agreement. CONTRACTOR
shall maintain for a minimum period of three (3) years (from the date of final payment to
CONTRACTOR), or for any longer period required by law, sufficient books and records in
accordance with standard California accounting practices to establish the correctness of all
charges submitted to CITY by CONTRACTOR, all of which shall be made available to CITY at
the CITY's offices within five (5) business days after CITY's request.
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CONFIDENTIALITY OF MATERIAL
All ideas, memoranda, specifications, plans, manufacturing procedures, data (including, but not
limited to, computer data and source code), drawings, descriptions, documents, discussions or
other information developed or received by or for CONTRACTOR and all other written and oral
information developed or received by or for CONTRACTOR and all other written and oral
information submitted to CONTRACTOR in connection with the performance of this Agreement
shall be held confidential by CONTRACTOR and shall not, without the prior written consent of
CITY, be used for any purposes other than the performance of the Services, nor be disclosed to
an entity not connected with the performance of the such Services. Nothing furnished to
CONTRACTOR which is otherwise known to CONTRACTOR or is or becomes generally
known to the related industry (other than that which becomes generally known as the result of
CONTRACTOR'S disclosure thereof) shall be deemed confidential. CONTRACTOR shall not
use CITY'S name or insignia, or distribute publicity pertaining to the services rendered under
this Agreement in any magazine, trade paper, newspaper or other medium without the express
written consent of CITY.
NO PLEDGING OF CITY'S CREDIT.
Under no circumstances shall CONTRACTOR have the authority or power to pledge the credit
of CITY or incur any obligation in the name of CITY.
OWNERSHIP OF MATERIAL.
All material including, but not limited to, computer information, data and source code, sketches,
tracings, drawings, plans, diagrams, quantities, estimates, specifications, proposals, tests, maps,
calculations, photographs, reports and other material developed, collected, prepared (or caused to
be prepared) under this Agreement shall be the property of CITY, but CONTRACTOR may
retain and use copies thereof subject to Section V.D of this Exhibit "A".
CITY shall not be limited in any way in its use of said material at any time for any work,
whether or not associated with the City project for which the Services are performed. However,
CONTRACTOR shall not be responsible for, and City shall indemnify CONTRACTOR from,
damages resulting from the use of said material for work other than PROJECT, including, but
not limited to, the release of this material to third parties for work other than on PROJECT.
NO THIRD PARTY BENEFICIARY.
This Agreement shall not be construed or deemed to be an agreement for the benefit of any third
party or parties, and no third party or parties shall have any claim or right of action hereunder for
any cause whatsoever.
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NOTICES.
Notices are to be sent as follows:
CITY: Bill Headley, Parks Supervisor
City of Gilroy
7351 Rosanna. Street
Gilroy, CA 95020
CONTRACTOR: Ryan Dinsmore, President/Owner
Alpine Landscapes
8595 Murray Avenue
Gilroy, CA 95020
FEDERAL FUNDING REQUIREMENTS.
If the box to the left of this sentence is checked, this Agreement involves federal
funding and the requirements of this Section V.I. apply.
Q If the box to the left of this sentence is checked, this Agreement does not involve
federal funding and the requirements of this Section V.I. do not apply.
DBE Program
CONTRACTOR shall comply with the requirements of Title 49, Part 26, Code of Federal
Regulations (49 CFR 26) and the City- adopted Disadvantaged Business Enterprise programs.
Cost Principles
Federal Acquisition Regulations in Title 48, CFR 3 1, shall be used to determine the allowable
cost for individual items.
Covenant against Contingent Fees
The CONTRACTOR warrants that he/she has not employed or retained any company or person,
other than a bona fide employee working for the CONTRACTOR, to solicit or secure this
Agreement, and that he /she has not paid or agreed to pay any company or person, other than a
bona fide employee, any fee, commission, percentage, brokerage fee, gift or any other
consideration, contingent upon or resulting from the award or formation of this Agreement. For
breach or violation of this warranty, the Local Agency shall have the right to annul this
Agreement without liability or, at its discretion, to deduct from the agreement price or
consideration, or otherwise recover, the full amount of such fee, commission, percentage,
brokerage fee, gift or contingent fee.
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vzylt i4%e-
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EXHIBIT "B"
SCOPE OF SERVICES
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LANDSCAPE STANDARDS AND SPECIFICATIONS
1. Landscape Maintenance Areas
Landscape maintenance areas shall consist of parks, landscaped City facilities, slope
areas, medians, streetscapes, and trails, drainage channels, identified in the Contract
Landscape Location Information Sheets. These areas shall include, but not limited to all
turf, trees, shrubs, ground covers, planters, slopes, vines, sidewalks, paths, courts,
courtyards, parking lots, roadways, medians, opens space areas, gutters, v- ditch, bike
trails, street barriers, fence lines and irrigations systems.
2. Normal Hours and Days of Maintenance Services
a. Contractor shall perform the required maintenance service daily between the hours of
7:00 a.m. and 6:00 p.m., five days per week. No maintenance functions that generate
excess noise, which would cause annoyance to residents of the area before 8am.
b. The Contractor shall conduct the work at all times in a manner which will not
interfere with normal recreation programs, special events, pedestrian traffic on
adjacent sidewalks or vehicular traffic on adjacent streets.
c. Any modification in the hours and days of maintenance services as stated in the
Contractor's Service Schedules/ Calendars are subject to approval by the City.
3. Personnel
a. Positive public relations are an important part of this contract service. Services provide
under the CFD landscape service contact are a critical part of providing and maintaining these
important public use facilities. Contract staff serves a vital role in delivering these public
services. Contract staff must maintain both professional image and behavior whenever in
contact with citizens. Contract staff shall be trained on how to handle public contact and
provide the appropriate customer service. Contract staff must always maintain a neat and
clean appearance and be easily identified by some type of company uniform.
b. A background review and security clearance for all on -site contract employees is required.
Contractor shall provide all needed information to the City's representative and make
employees available for forger printing at a site to be determined. Contractor shall provide
any background information needed for Department of Justice (DOJ) and Department of
Motor Vehicles (DMV) drivers' record review. Further, a one -time drug testing or evidence
of drug screening maybe required for background review. All cost for background checks
will be paid by contractor.
c. The Contractor shall provide personnel fully trained in all phases of landscape irrigation
systems operation, maintenance, adjustments, and repair; in all types of components to
include irrigation controllers, valves, moisture sensing devices, and sprinkler heads; and with
all brands and models of irrigation equipment used within the City.
d. The Contractor shall provide personnel knowledgeable of, and be proficient in, current water
management concepts, with the capability of working with City staff in implementing more
advanced water management strategies.
e. The Contractor shall provide personnel capable of verbal and written communication in
professional level English. Site Supervisor and Irrigation Tech shall have cell phone with
email access.
f. The City expects the Contractor's staff to give to city representative(s) all items lost or
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misplaced by the general public, regardless of perceived value found on contract sites. The
Contractor shall communicate this expectation to all employees.
g. Contract employees shall carry an ID badge with their photo provided by the City Human
Resources Department. Contract employees shall produce photo ID when requested.
h. The City will provide mandatory BMP training for all contract landscape maintenance staff
regarding storm water management and operational best practices. City will provide
Spanish/English translator.
i. A contractor's representative shall attend City's annual traffic safety class.
4. Service Changes
The City reserves the right to make additions, deletions, revisions and /or otherwise
modify the General and Specific Landscape Maintenance Specifications or change the
frequency of the services during the contract period. A Request for Quote will be issued
for additional service work or one time contract work. A change order will be issued
with a two -week notice. Any change in Specification that causes the contractor to suffer
additional expenses shall be adjusted based on the fee schedule or negotiated upon
written justification.
5. Vandalism and Repair of Damage
Contractor shall report any damage to City property, including but not limited to,
vandalism, acts of God, and third party negligence, to the City representative.
If the Contractor, its employees or subcontractors cause damage to any City facility then
the Contractor shall repair such damage at its own cost within a reasonable time or the
City may repair or cause the repair of such damage and the cost thereof shall be deducted
from monies due to the Contractor from the City.
6. Protection of Existing Sites and Structures
The Contractor shall exercise due care in protecting from damage all existing sites, structures and
utilities both above surface and underground on the City's property. Any damage to City property .
deemed to be caused by the Contractor's negligence or failure to use due care shall be corrected
or paid for by the Contractor at no cost to the City.
If the City requests or directs the Contractor to perform work in a given area, Contractor shall
verify and locate any underground utilities. This does not release the Contractor's duty to take
reasonable precautions when working in these areas. Any damage or problems shall be reported
immediately to the City.
7. Service Frequency and Schedules
Inspect and service every site once per week as a contract standard.
The Contractor shall, within ten (10) working days after the effective date of the
Contract, submit a work schedule to the City's representative(s) for review and approval.
Said work schedule shall be based on a twelve -month calendar identifying and
delineating the time frames for the required work by the day of the week, morning or
afternoon.
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The Contractor shall submit revised schedules / calendars when actual performance
differs substantially from planned performance. Said revisions shall be submitted to the
City's representative(s) for review and, if appropriate, approval, within five (5) working
days prior to scheduled time for the work.
At the discretion of City staff, weekly inspection meetings will be held(or more
frequently if deemed necessary by the City) between the Contractor and the city
representative(s) are to be scheduled to determine progress, review weekly site
inspections and address any changes in schedules, problem areas, etc.
Contractor shall notify the City, in writing, at least two (2) weeks prior to the date and
time of all pre- approved "Specialty Functions." "Specialty Functions" are defined as:
a. Fertilization
b. Tree Trimming/Management
c. Aerate —Turf
Performance during Inclement Weather
During the periods that rainfall hinders normal operations, the Contractor shall adjust its
workforce to accomplish those activities that are not affected by weather. The prime
factors in assigning work shall be the safety of the workforce, the public, and damage to
landscaping. Leaf and down branch pickup and drain clearing are a high priority. Rainy
days are not an excuse to pull workforce from city. Contractor shall continue landscape
tasks that can be safely preformed in the rain. Such as sidewalk pruning, low limb
removal, or items that city contractor inspector points out.
8. Extra Work/ Excluded Work
The following tasks shall be treated as extra work items:
a. Soil testing
b. Major tree trimming. Major tree trimming is defined as work that requires an aerial
lift (bucket truck), tree climbing or work that cannot be done from the ground with a pole
saw or pole chain saw.
c. Filling of holes in turf or shrub beds. (filling minor holes is included in the
Contractor's work)
d. Major irrigation repairs such as controllers, mainline repairs, valve replacement, and
irrigation wire repairs, pumps, and backflow devices.
e. Turf over seeding and top dressing will be handled by city staff.
f. Debell Uvas Creek Park Preserve open space/ channel, Christmas Hill Park Hillside,
and overflow parking area shall be done by city staff.
g. Doggie Bag Dispenser Maintenance and /or refilling with new bags.
h. Recreation Program support including ball field prep
i. Facility reservation support and customer response
j. General Park, playground and building repairs.
k. Electrical system maintenance and repairs
1. Raking and cleaning of playground surfaces such as sand and wood fiber shall be
done by city staff. Concrete surfaces around playground areas are to be cleaned
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blown off) during the service schedule by contractor. Contractor will rake leaves,
pick up garbage and debris during the scheduled service day in playgrounds.
9. Garbage, Litter and Debris Removal
a. Garbage, litter, and debris shall be removed as needed to prevent citizen complaint
and prepare turf areas for mowing and general facility use. Trash containers shall be
serviced and emptied when 1/3 full or when there is detectable odor.
b. Service frequency shall be once per week as a minimum as per Attachment B..
c. Garbage can liners shall be supplied by the Contractor and be of a quality approved
by the City representative. Garbage can liners shall be replaced when cans are
emptied.
d. Litter and plant debris will be removed from landscaped, hardscape, and adjacent
open space areas on a regular basis to achieve neat, clean, and attractive facilities.
Landscape debris will not be blown into streets and left unless collection of such
debris has been previously approved and coordinated with city staff.
e. Shopping carts and garage sale signs in and on the perimeter of contract sites shall
be considered part of the garbage and litter removal service. Functioning shopping
carts are to be placed in the corner of the employee parking lot at the City
Corporation Yard. Non - working shopping carts are to be loaded into the metal bid in
the City Corporation yard.
f. Disposal of garbage, litter, and debris shall be made at the City yard disposal areas
and any available on -site trash dumpsters. Alternate yard waste disposal sites other
than the City yard may become available and will be reported to the Contractor by the
City representative. Contractor shall keep all garbage and debris inside bunker areas
in city yard.
10. Landscape Maintenance (Facilities, Parks, Trails,'Slope Areas, Parking Lots)
A. GENERAL
1. All animal feces or other materials detrimental to human health shall be removed
per the service schedule.
2. All broken glass and sharp objects shall be removed per the service schedule.
3. All areas shall be inspected per the service schedule and maintained in a neat,
clean, and safe condition at all times.
4. All areas shall have leaves and debris removed per the service schedule.
5. All areas shall be inspected for vandalism, safety hazards, and serviceability per
the service schedule. Deficiencies shall be reported in writing immediately
email) to the City.
6. All sidewalks within the City areas shall be swept or cleaned, if necessary, to
remove any glass or heavy debris.
7. All sidewalk areas abutting maintained areas shall be cleaned when dirtied by
Contractor's operations and at other times as required.
8. All leaves, paper, and debris shall be removed from landscaped areas and
disposed of offsite.
9. Trash cans provided by City shall be emptied per the service schedule. Contractor
shall provide plastic liners for all trash cans at Contractor's expense, to be
changed, not emptied, per the service schedule.
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10. All "V" drains shall be kept free of vegetation, debris, and algae to allow
unrestricted water flow.
11. All other drainage facilities shall be cleaned of all vegetation and debris. All
grates shall be tested for security and refastened as necessary. Missing or
damaged grates shall be reported to City.
B. HARD SURFACE AREAS
1. All areas shall be swept weekly to remove all deposits of silt and/or sand. Any unsafe
condition shall be removed upon discovery per the service schedule.
2. All areas shall be inspected per the service schedule and maintained in a neat, clean, and
safe condition at all times.
C. BICYCLE/WALKING TRAILS /ASPHALT WALKWAYS/ TRAILS
Special emphasis shall be placed on edging along these areas to prevent damage to
asphalt by vegetation. Bicycle /walking trails shall be kept free of encroaching vegetation.
11. Plant Care
Tree, Shrub and Ground Cover Maintenance
The latest edition of the Sunset Western Garden Book shall be the general guidelines and
reference tool for care and maintenance of all plant material.
A. Shrubs and Ground Covers
1. Pruning will be done in a manner to enhance the natural form of the plant and maintain
the design intent for the landscape. However there are or can be landscaped areas with
security concerns that will require different pruning for safety visibility. The City
representative will notify Contractor of special pruning sites.
2. Typically, shrubs which are planted along walls and fences should be maintained in a
manner which will allow the plant material to soften the hard structural feature.
3. Where the design intent is to have sweeps of shrubs, the plants shall be allowed to grow
together.
4. In some areas, it may be more appropriate to remove some shrubs entirely and allow
adjacent plant material to fill in rather than try to keep the plants in bounds with repeated
pruning. The Cities representative will point which plants, if needed, are to be removed.
5. Keep shrubs and ground cover a minimum of 12" from buildings, walls, trees and shrubs.
Shrubs and ground cover shall not be allowed to encroach upon walks or curbs.
6. City will provide a species specific and site specific pruning guideline appendix (in
progress) for selected plants to the company awarded contract.
7. Examples of plant care we expect shown below.
a) Vines and overhead vegetation (up to 18') on or over hanging walls boundary fences
shall be trimmed from growing on private property, i.e. the back side of wall. This
does not apply to existing vines have already grown over. If adjacent property owner
requests ivy or vegetation trimmed from top of wall, contractor shall be required to
remove it at no extra cost.
b) Hedge plants shall be allowed to grow together.
c) Rosemary and like ground covers to be cut back to 8 " -12" in height. Except where
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rosemary is already overgrown.
d) Ornamental grasses are to be pruned back during the late winter months.
e) Ground cover roses are be encouraged to grow together and are to be kept under 18 "-
24" in height.
f) Spring flowering perennials are to be cut back after flowering. Examples Lavender
and daylilies.
g) A three foot radius of free space shall be maintained around all fire hydrants. Low
ground (under 6 ") cover is ok.
8. Allow plants to grow to their natural shape.
9. All shrubs and ground cover is to be trimmed not to interfere with irrigation operation or
to encroach on to private property or Right -of -Way. Line of sight traffic safety issues as
identified by City engineering Department will also determine proper height and
appearance.
10. All dead, diseased and unsightly branches, vines or other growth shall be removed as they
develop.
11. All shrubs are to be trimmed symmetrically in natural form and proportion, but not to
interfere with vehicular and pedestrian clearance, visibility and access, unless otherwise
directed by a City's representative. Prune shrubs to encourage healthy growth habits,
natural form and proportion, symmetrical appearance and proper vertical and horizontal
clearance. Line of sight traffic safety issues as identified by City Contract Inspector will
also determine proper height and appearance
B. Trimming and Care of trees includes:
LQualified Professional personnel shall perform all pruning. Only recognized and
approved methods, techniques and standards shall be used. Trees pruned improperly or
damaged will be replaced by Contractor with plants of the same appropriate size as
determined by the City inspector.
2. All tree pruning shall conform to the Best Management Practices for Trees published by
the International society of Arboriculture and adhere to the most recent edition of the
American National Standards for Maintenance Tree Care Operations (ANSI A330)
3. Contractor shall raise trees as needed or directed by city staff and /or designated
representative.
4. Pruning of trees shall be done for the following conditions:
a. To maintain clearance for pedestrians (8 feet), road ways for vehicles (15 feet),
or from facilities (5 feet).
b. Property line/boundary pruning for both balance and good neighbor pruning for
sound walls, parks, and pump stations areas
c. To provide visibility site lines of pedestrians and motorists.
d. To maintain walkways and maintenance bands free from obstruction and /or
safety issues.
e. To improved or enhance tree growth.
f. To eliminate or reduce potentially unsafe conditions.
g. To correct shape, particularly for wind disfigurements.
5. Remove no more than 20% of live foliage within the trees during one pruning operation.
6. All cuts shall be thinning cuts as opposed to heading cuts. This means leaving a lateral
branch no less than 1/3 the diameter of the parent branch, or completely removing the
branch at its point of origin.
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7. All cuts shall be distal to the branch bark ridge or, if present the branch collar. The cuts
shall be close to but shall not injure the branch collar.
8. Interior branches shall not be stripped out. Liontailing is not permitted.
9. Contractor shall prune young trees under 18 foot in height to develop permanent
scaffold branches, remove crossing branches, remove diseased or damaged growth, or
eliminate narrow branch crotches.
10. Major tree trimming is not included. Major tree trimming is defined as work that
requires an aerial lift (bucket truck), tree climbing or work that cannot be done from the
ground with a pole saw or pole chain saw.
11. Trees shall be inspected regularly for hazardous conditions. Corrective action shall be
promptly performed by the contractor and the city notified.
12. Contractor to coordinate with city staff on large pruning projects so city can chip
branches. A notification of ten working days is required in non - emergency conditions.
13. Periodic re- staking and tying shall be done as needed. Plant ties shall be checked
frequently and adjusted to prevent girdling. Trees shall not rub against stakes at any
time. When trees no longer require the support of stakes, contact the city for
authorization to remove stakes and ties.
14. Maybe young trees which are leaning due to under developed truck caliper ought to be
staked at the direction of the city.
15. Fallen trees or branches shall be promptly removed. Promptly notify the City for large
trees down.
12. Landscaped Roadways, Roundabouts, and Medians
1. The scope of work for medians not only includes the landscaped areas but also those
areas of the median that are attached or directly adjacent to cobble /concrete hardscape
per its design. (Noses and turn lanes are examples of this condition).
2. Plant material shall not be allowed to obstruct any site line of vehicular traffic, and
shall be kept below 36" in height from the road surface in any areas where traffic site
lines may be impacted. City Traffic Engineer and Landscape Inspector may provide
direction as requested for proper maintenance.
3. Irrigation shall be adjusted and inspected as often as needed to insure no unsafe
condition is created by irrigation run -off onto road surface or over spray onto
vehicles.
4. All maintenance personnel shall wear class 3 safety vests while working on medians,
and at no time shall work be performed in the roadway without City approved Traffic
Control Plan and all required traffic control signage in place.
5. Contractor is responsible for insuring that all median maintenance is performed in a
safe manner and that no hazard is created by such operation.
6. When closing a traffic lane for landscape maintenance work, an electronic sign board
arrow) shall be used in high speed and /or high traffic areas (i.e. Santa Teresa). Work
shall only be performed on the closed lane side.
7. Cones are to. be bright orange. Old and faded cones shall be replaced.
8. Notify city staff when high speed or high traffic areas are to be serviced via email.
9. If the work to be performed and will take less time to complete then the time it takes
to set up traffic control, then no traffic control is necessary. An example would be
weed spraying, litter control, or irrigation maintenance.
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13. Turf Care
A. Turf Mowing
1. The contractor shall not mow, or use any equipment of turf areas when frost is present
or if the turf is saturated or standing water is present. Mowing should not begin until
turf area is free of litter and trash.
2. Mowing shall be accomplished with rotary mulching mowers. Blades shall be kept
sharp to produce a clean cut. Mowers shall be kept clean and free of fuel, oil, hydraulic
fluid, and grease leaks.
3. Mowing equipment shall be washed between sites to minimize the spread of weed
seeds.
4. Mowing patterns shall be alternated to avoid creating ruts and compaction.
5. Use caution when mowing berms or uneven areas to avoid scalping turf. Rodent dirt
mounds need to be knocked down, spread, or removed so as reduce turf loss until
rodent activity is abated.
6. Mowing shall typically be performed as needed from December through March and at
least weekly from April through November. This is a guide only and will vary based
on weather. Mowing shall be frequent enough so that no more than 1/3 of the leaf is
removed at each mowing. During active growing season, mowing may need to be
done twice weekly on play fields. Mowing height shall be 3 1/2 "unless otherwise
directed by city staff.
7. All clippings shall be efficiently mulched to leave no visible trace or picked and
removed only when necessary and removed to a designated dumping site. At no time
shall unsightly clippings be left before vacating site following mowing operation.
8. Contractor shall have a spare mower of comparable size available within 24 hours of a
mower breaking down.
9. Keep grass clippings away from waterways and out of the street.
B. Turf Aeration
1. All turf (not including the no -mow) areas shall be core aerated in September /October.
Cores should be reincorporated into the turf. Core size should be '/2" diameter.
Alternative methods of relieving compaction may be authorized by City.
2. Prior to any cultivation activity, all irrigation heads, valves, and utility boxes shall be
flagged. The soil shall be allowed to dry prior to cultivation.
C. Edging
1. When turf abuts concrete walk ways or concrete mow band, turf shall be edged with a
metal blade edger. If a spin trimmer is required to edge around utility boxes, or
wooden header boards, it shall be held so that the cut is vertical. A bevel cut will not
be used. After mowing or edging hardscape (walks /drives /patios /streets) shall be
swept or blown clean. Debris will not be left in street gutters or and removed.before
vacating site.
2. Tree wells are to be maintained with a neat turf edge and wells shall be kept weed free.
3. Chemical edging shall not be used anywhere.
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D. Turf Fertilization
1. Fertilization schedule for all turf shall be:
a. March/April 44-0-0 Polyplus SL
b. Late August, early September 16 -8 -8
c. November 44 -0 -0 65% Polyplus SL Urea
2. Fertilizer use shall be reported with pesticide use.
E. Turf Pest control
1. Weeds - All turf grass in the CFD areas are relatively new with very few broadleaf
weeds. At this time it is best to manually remove broadleaf weeds or spot spray.
14. Pest Control
1. Weed Control Plan- Develop an annual weed control plan that your company feels
would produce a cost effective approach that provides high quality results for turf,
shrubs and ground cover, annual flowers, bike /walking trails, open space edges/ post
and cable /fence lines, and hardscape (cracks and crevices) including sidewalk, curb
and gutter frontages. Control weeds with pre- emergent herbicides and selective
systematic herbicides or through mechanical means, i.e. mowing, hoeing and weed
whipping. No pesticides, herbicides, or other chemicals may be used in or around Low
Impact Development Structural Control Measures such as Bio- retention ponds, bio-
swales, or infiltration ponds of any kind.
2. Written Pest Control Recommendations - A written pest control recommendation
from a licensed pest control advisor will be required for all pesticide applications. The
contractor shall provide copies of all recommendations to the City at least _5_
working days prior to application. Recommendation shall take into consideration
drainage to water ways (Uvas Creek), drain inlets, and adjacent schools.
Recommendation shall evaluate pesticides used and application activities performed
and identify pollution prevention and source control opportunities.
3. Prohibit application of pesticides, herbicides and fertilizers as required by the
regulations DPR 11 -004 Prevention of Surface Water Contamination by Pesticides
enacted by the Department o f Pesticide Regulation.
4. No spraying shall be within 48 hours of predicted rainfall with greater than 50%
probability as predicted by National Oceanic and Atmospheric Administration
NOAA).
5. Collect and properly dispose of unused pesticides, herbicides and fertilizers containers.
6. Do not spray weeds in playground areas. Weeds are to be removed manually.
7. Reoccurring unwanted plants (i.e. berry bushes, poison oak) are to be sprayed to kill
plant roots or removed by digging up root system.
S. Trees in turf - maintain a minimum 3 ft. radius weed free.
6 Product Use Summery - Prior to the 15th of the month, the contractor shall provide to
the city a summary of pesticides used the prior month. Provide the product EPA
registration number and the amount of product used.
7 Posting — post all entry areas with spray notices when broadcast spraying public use
areas and verbally notify public visitors when spot spraying when in the area. Remove
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facility spray notices when spraying is complete unless product label provides for
different posting requirements.
8 Spray marker — the routine use of spray marker dyes is discouraged. Contact the
City if such use is desired
9 Weed control can be done with chemicals or with mechanical means (i.e. hoeing or
mowing), or other cultural practices. The Contractor shall take vigorous responsibility
for controlling weeds growing in cracks, or expansion joints, along fences /sound walls
and areas contiguous to all active the City landscape areas (including sidewalks, curbs,
and gutters). This includes all landscaped medians that are attached or directly
adjacent landscaped roadway areas.
10 Moluskacides should be iron phosphate based or other City approved control
11 Pest Control Licensing — The contractor shall have a qualified person who holds the
appropriated California Department of Pesticide Regulations licensing oversee all
pesticide applications. If restricted materials are used, the applicator must be licensed.
12 Trails — keep trail shoulders free of weeds 24" from any trail hardscape edges. Post
sign when spraying along trails.
13 Minimal insect control is practiced and is to be handled on a case -by -case basis and
will be charged as an extra.
14 Minimal disease control is practiced and is to be handled on a case -by -case basis and
will be charged as an extra.
15 Rodent Control
a.All mounds, burrows, or other minor damage shall be discovered in a timely
manner and repaired by Contractor. Rodent problems should be identified and
reported to the City in their early stages as part of weekly inspections before
causing critical damage to areas. Lack of early discovery will be considered
negligence on the part of the Contractor. Depending on the scope of the problem,
rodent control in the form of baiting or trapping will be recommended and
scheduled work.
b.Gopher control
i. The contractor shall obtain a written pest control recommendation from a
licensed Pest Control Advisor for baiting for gopher control. All bait shall
be placed below ground in the burrow system. Any spilled bait shall be
promptly picked up. Any dead gophers found on the surface shall be
collected and properly disposed of.
ii. If trapping is to be used all State Regulation must be followed. If trapping
is to be used, contractor shall notify and get City's approval on sites and
locations. Dead gophers must be disposed of properly.
iii. The contractor shall comply with all other provisions of pesticide
requirements.
iv. The contractor shall promptly remove or disperse any soil mounds
discovered on the turf.
V. Contractor to give city a per- treatment per site price. A total of 10 site
visits will be included in price, but charged as work as needed. So if no
rodent control is needed the City will not be charged.
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vi. No chemical control of rodents in Low Impact Development Structural
Control Measures such as Bio- retention ponds, bio- swales, or infiltration
ponds of any kind.
c. Ground Squirrel control shall be handled on a case by case basis and coordinated
with City representative. Ground squirrel will be treated as an additional cost and is
not included in this contract.
15. Irrigation
a. Contractor and its employees shall bi- weekly (every two weeks) inspect and test all
irrigation systems for system operability; component malfunctions, and adjusts schedules
to address weather changes and irrigation requirements. Any signs ' of irrigation
malfunctions will be immediately addressed and system checks will become as frequent
as necessary to insure problems are fully resolved without any further damage. These
inspections may also become more frequent in certain areas that are under observation
due to chronic malfunctions or vandalism. Between November 1 and March 1 if systems
are turned off because of weather conditions, monthly inspections will be acceptable to
insure that there has been no damage to the systems.
b. After Value -The contractor shall be responsible for all labor for the irrigation repairs
after the valve including the solenoid, rebuilding of the valve, lateral lines, and sprinkler
heads, and including adjustment to sprinklers. Contractor to bill the City for all irrigation
material costs plus a fifteen (15) percent markup.
c. Before Valve: Replacement of remote control valves, rebuilding or replacement of quick
couplers, flow control valves, master valves, backflows and mainline repairs are not
included and shall be billed to the city at an hourly rate basis or on a bid basis. The city's
representative will ok work to be done on case by case basis. All irrigation materials used
will be charged to city at cost plus a fifteen (15) markup.
d. An irrigation audit shall be done during the winter months listing all work extra work that
should be done to improve system efficiency, i.e. raised heads, upgrading of nozzles and
deliver to the city representative by the end of February.
e. Under no circumstances can a system go unchecked long enough to cause any problems
with startup when weather conditions warrant systems to be fully operational. Contractor
shall set and program automatic controllers for seasonal watering requirements. A sign in
sheet shall be placed inside each irrigation controller box that designates by date and
signature each time the system is inspected or adjusted for non - central station controllers.
f. All replacement materials are to be with new original types and models materials, unless
a substitute is approved by City representative.
g. Contractor shall maintain an adequate inventory of medium to high usage stock items for
repair of the irrigation systems.
h. Contractor shall implement repairs in accordance with all effective warranties, and no
separate payment shall be made for repairs on equipment covered by warranty.
i. Notify the owner in writing of any conditions that are discovered which may prevent the
system from delivering the correct amount of moisture.
j. Adjust risers and sprinkler locations to compensate maturing landscape. This work will
be done at an additional cost. The Irrigation Technician shall notify city staff of needed
work.
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k. Reflect actual evapotranspiration (E.T) requirements and requirements of soil and plants
when programing controllers.
1. Eliminate runoff onto streets, sidewalks, and other non - target areas by using a
Cycle /Soak programs.
m. Provide sufficient time for soil to dry out between irrigations when programing
controllers.
n. Maximize public use of City property when programing controllers.
o. Repairs of any irrigation components or property damaged by Contractor or as a result
of negligence, error or omission by Contractor shall be the full responsibility of the
Contractor.
p. Remote control valves -Many RCV are used in the city. Along the 3rd street corridor
Rainbird PESB- NP -NAN series are used. The contractor should be familiar with all
types of modern remote control valves.
q. Quick coupler valves
The standard quick coupler valve is the single slot Rain Bird 44 or Buckner QB44RCIO
on potable water sites. On recycled water sites along the 3rd Street Corridor a 1" Acme
thread valves are used. It is the City's responsibility to repair quick couplers.
r. Master Valves - Master valves used are normally open Superior 3300. Del Rey Park and
the Ranch Site use Griswold normally open 2160 valves. Rainbow Park and Leavesly at
Arroyo Circle use normally closed valves. It is the City's responsibility to repair master
valves and Flow Control Valves.
s. Fixed Spray heads
1. The standard pop -up fixed spray head is the Rain Bird 1800 series SAM -PRS.
Twelve inch pop -up is typically used in ground cover, shrub, and bedding plant
areas. Four inch and six inch has been used in turf. If it is necessary to replace a
four inch body in a turf area, it should be upgraded to a six -inch pop -up.
2. All heads used on recycled water lines must be equipped with purple caps.
t. Rotor Sprinklers -A variety of rotor heads are used in the city systems. The Contractor
should be familiar with all types of rotor sprinklers. These CFD sites use mainly MP
Rotators.
u. Drip - Inline drip, on -line drip and Multi Outlet drip is used along the 3rd Street Corridor
and at Mesa Soundwall. The Contractor should be familiar with all types of drip systems.
v. Flow Sensors -Data Industrial (Badger) flow sensors are used at many sites. Flow
Sensors are the City's responsibility to repair.
w. Pumps -No pumps are used on these sites.
x. Controllers and Programming
1. All CFD site use the Rain Master Evolution. Most of the on -line controllers are
linked to flow meters and master valves and will shut down the system if high or
unscheduled flows are detected. Low flow and electrical faults are also detected
by the central system. The central controller is linked to an on -site weather
station and that data is used to adjust station run times and shut down during
unfavorable weather events. The landscape contractor is expected to
communicate with city staff regarding site irrigation needs. The city will service
irrigation controllers.
2. City staff will program controllers which are on -line with the central system.
Irrigation programming will be coordinated around facility use.
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3. The general guide for irrigation is to water deeply but infrequently. The soil
surface should be allowed to dry between irrigations. Typically three irrigations
per week is sufficient for turf. Irrigation schedules must take into account public
use of the facility and hydraulic capacity of the systems. Irrigation programming
will be coordinated with the city.
4. Upon completion of work, verify that all cabinets are properly locked before
leaving the area. Due to the potential damage to systems from leaving a cabinet
unlocked, this type of infraction will be considered a serious act of negligence by
the contractor.
5. When site irrigation is checked or serviced the Irrigation Tech shall sign and fill
out Controller Maintenance sheet provided in each controller.
y. Recycled Water:
Sites along 3rd street are irrigated with recycled water. This is disinfected tertiary
treated waste water which is provided by the South County Regional Wastewater
Authority.
All irrigation heads and pipe shall be color coded purple or otherwise labeled. Only
Acme threaded quick couplers shall be used on recycled water systems. Employees
working on sites with recycled water shall be trained on the precautions to use. The
contractor foreman or supervisor is encourage to attend the annual supervisors training
conducted by the South County Regional Wastewater Authority. Contact the city for
additional information on this.
16. Care for Storm Water elements -Low Impact Development Structural
Control Measures (LID SCMs)
Bioswale Features work includes:
Water must flow downstream to inlet. Confirm there is no evidence of long -term
ponding which causes dying plants and /or bare spots at the bottom of the swale.
Fix any flow paths that develop.
Remove all trash and debris on service days.
Fix rodent holes and erosion with proper materials per design specs.
Manually remove all weeds.
Trim over -grown plants that are blocking the inlets or outlets, or if they are growing
into the public right -of -way.
No pesticides, herbicides, or other chemicals may be used in or around the swales.
Remove sediment buildup at the bottom of the swale. Sediment buildup of over 1 cubic
yard shall be removed by the City.
Fix ponding by replacing soil per design specs. This shall be done by the City or
contractor shall be contracted to make repairs.
Replace dying or dead vegetation, as needed. Plant replacement is not included in this
contract. Contractor shall notify the City of dying or dead vegetation. City will contract
with contractor to replace plants.
Adjust irrigation schedule, if needed, for healthy plants.
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Report and fix odors. If there is an order problem contractor shall notify the City.
Contractor will work with the City rectify problem.
Report and fix any pedestrian paths that develop. Contractor shall notify the City to the
presence of any pedestrian paths that develop. Contractor shall work with the contractor
to rectify the problem.
Control Rodents in Bioretention features by non - chemical means.
Bioretention Features
Report and fix any pedestrian paths that develop. Contractor shall notify the City to the
presence of any pedestrian paths that develop. Contractor shall work with the contractor
to rectify the problem.
Remove all trash and debris on service schedule.
Fix rodent holes and erosion with proper materials per design specs.
Manually remove all weeds.
Trim over -grown plants that are blocking the inlets or outlets, or if they are growing into
the public right -of -way.
No pesticides, herbicides, or other chemicals may be used in or around the Bioretention
features.
Remove sediment buildup at the bottom of the Bioretention feature. Sediment buildup of
over 1 cubic yard shall be removed by the City.
Replace dying or dead vegetation, as needed. Plant replacement is not included in this
contract. Contractor shall notify the City of dying or dead vegetation. City will contract
with contractor to replace plants.
Adjust irrigation schedule, if needed, for healthy plants.
Report and fix odors. If there is an order problem contractor shall notify the City.
Contractor will work with the City rectify problem.
Report and fix any pedestrian paths that develop. Contractor shall notify the City to the
presence of any pedestrian paths that develop. Contractor shall work with the contractor
to rectify the problem.
Control Rodents in Bioretention features by non - chemical means.
Keys, Deficiency, Severance, and Termination
Locks and Keys
The Contractor shall be responsible for the series of keys assigned to it and shall assign these
keys to its personnel for use in maintaining the facilities. The Contractor shall properly use and
keep safe all keys or locks issued or used by the City to the Contractor.
The contractor shall report all lost or stolen keys or locks to the City representative(s) within
twenty -four (24) hours after discovery of the loss. The Contractor shall reimburse the City for the
total cost, as determined by the City, of replacing the lock, re- keying the site or duplicating
additional keys.
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Upon termination or cancellation of the Contract, the Contractor shall immediately return all
keys, cards, remote controls, etc., to the City. The Contractor shall reimburse the City for the
total cost, as determined by the City, for the total cost of keys not returned.
Deficiency Notice Procedures
a. Deficiencies will be recorded and presented to the contractor via e -mail, fax or U.S.
Mail. The Contractor shall respond within 24 hours with a plan to remedy and to
prevent future occurrence, Contractor will be responsible for providing follow up
documentation. Contractor supervision is responsible for re- inspection of problem
areas before notifying the City the problem has been resolved.
b. Contractor's management team must be available for face -to -face meetings called by
the City within 48 hours of notification.
c. Failure to resolve the problem will result in a written vendor "Non- Compliance "
report seeking a written response from the contract management outlining a
permanent resolution to the problem. Patterns of complaints, which may indicate the
contractor's failure to adequately staff, train and supervise, shall cause a face to face
meeting with the highest level of the contractor's management deemed necessary by
the City in order to clarify the contractor's obligations and produce a written work
plan and time frame for remedying the deficiencies.
d. Failure to resolve a written "Non- Compliance contract services notice" will result in
one or all of the following:
i. Payment deductions to the Contractor for services not performed per contract
where City had no or reduced service.
ii. Termination of selected contracted service area/s because of contractor's
continued failure to perform in the designated areas.
iii. Total contract termination for failure to perform after repeated "Notices of
Non - Compliance have been issued.
iv. Contract works that the contractor failed to preform and City staff was
compelled to perform and must fill in for, will be back charged (labor and
equipment) to contractor. (Example: contractor fails to mow turf as scheduled.
City may to do work and back charge contractor.)
Right of Severance and Termination
1. Remove worker: The City shall.have the right to request removal of any specific
Contractor worker from City contract properties for the following:
a. The City reserves the right to request removal of any specific Contractor
worker if the worker is deemed by City to be incompetent or negligent based
on worker's inability to execute required project tasks.
b. For failure to adhere to the City's standards
c. For worker misconduct.
2. Terminate contract: City reserves the right to terminate this contract with
Contractor upon 10 days advance written notice should Contractor fail to meet
obligations of the contract as noted under Deficiency Notice Procedures (d. iii above).
Such failures include, but are not be limited to:
a. Consistent failure to respond to requests for service or to remedy contract
deficiencies,
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b. Consistent failure to provide qualified, trained workers and supervisors,
c. Contractor failure to keep City informed.
3. Back charge — City will bill Contractor for work not performed where city staff had
fill in.
One Site Safety
Maintenance and Operation of Equipment and Vehicles
The Contractor shall take necessary precautions for the safe operation of equipment and the
protection of the public from injury and damage from such equipment and vehicles. Contractor
shall repair or replace, immediately, all equipment deemed by City to be unsafe, irreparable or in
unsatisfactory condition. All vehicles shall have the contractor's name visible to the public.
Contactor shall operate equipment and vehicles so as to minimize service vehicles driving off
pathways and hardscape onto turf and planters with irrigation and plants and prevent damage.
Contractor shall use street frontages and parking areas rather than pathways and sidewalks when
possible operating vehicles in contract sites.
String Trimmers
Contractor shall train staff and operate all string trimmers in a safe manner. Training shall
include proper techniques in avoiding flying debris and protecting staff, pedestrians and vehicles
from harm. Care shall be exercised with regard to the use of string trimmers to prevent damage
to building surfaces, walls, header board, light fixtures, signage, etc. String trimmers shall not
be used around trees. A 2 to 3 foot soil buffer zone shall be maintained around the
circumference at the base of all trees, unless otherwise directed by City. Any trees damaged by
string trimmer or mower shall be replaced at no additional cost to the City.
Reference Materials
The following documents will be used to judge best and proper landscape practices and
procedures unless otherwise specified or instructed.
All specifications for materials to be used and construction guidelines will be based on City of
Gilroy Construction Standards unless otherwise noted and/or approved.
Latest edition Sunset New Western Garden Book
Standard practices of the International Society of Arboriculture
Cal -OSHA Requirements
The contractor shall comply with all provisions of the California Occupational Health and Safety
Act., taking all precautions in the performance of the service to prevent injury to persons and
property.
Accident Reporting
The Contractor shall immediately notify the designated City representative(s) of any accident,
regardless of whether or not injury or damage is evident, involving the public and the
Contractor's staff, vehicles, and /or equipment. The Contractor shall provide all written reports
and /or documentation requested by the City.
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Management and Supervision
The Contractor shall provide fully trained and qualified personnel: The staff activity will be
closely monitored by City representative(s) at each site to detect operational irregularities and
non - compliance with the Contract.
It is the responsibility of Contractor's executive, management, and supervisory staff to oversee
the activities of its staff, throughout the range of its activities at all contract sites.
The City will not supervise the contractor's supervisors or employees.
All Supervisors must be qualified, proficient in English, trained and capable of providing
adequate supervision and direction of all staff and must demonstrate verbal and written
communication skills sufficient for the work required herein.
The Contractor's crew leader and operational staff, as well as their supervisory and management
staff, shall be knowledgeable in this Contract and its time lines. An outline of the task
requirements, schedule, and time lines for each site shall be kept with each crew. If any task
cannot be thoroughly completed within the Contract schedule time line, the City's representative
shall be notified promptly in the prescribe manner established at contract startup.
Contractor shall be expected to take reasonable care to identify and report
conditions /situations /occurrences which may be harmful or result in decline of plant material or
landscape or interfere with public use. If this care is not exercised then repair of resultant damage
to landscape or plant material shall be the responsibility of contractor.
Contractor to incur all costs to assess, repair or replace any physical property damaged as a result
of contractor's negligence or failure to take reasonable care to identify and report potential
problems with the landscape.
Contractor shall inspect and identify any condition(s) that renders any portion of a site unsafe, as
well as any unsafe practices occurring thereon, and shall immediately notify the City
representative(s) of any unsafe or undesirable condition(s). Contactor shall take emergency
safety actions to protect worker and or the public from a developing or observed hazardous
conditions. Safety action taken by the contractor not related to normal contraction services shall
be appropriately compensated by the City when justified in writing and include any public safety
call for service report number.
The Contractor shall make minor corrections including, but not limited to, filing minor holes in
turf and activity areas, using barricades or traffic cones to alert the public to the existence of
hazards, replacing Contractor - damaged valve box covers, and securing any damaged apparatus
so as to protect members of the public or others from injury.
If needed, the Contractor shall assist the public by summoning emergency assistance while at the
site. The Contractor shall cooperate fully with City in the investigation of any injury or death
occurring at any site, including a complete written report.
During all operations, the Contractor shall comply with local ordinances regarding noise levels.
Any scheduling of the Contractor's operations may be modified by City at no additional
compensation to Contractor in order to ensure that the public is not unduly impacted by the noise
of equipment or operations.
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EXHIBIT "C"
MILESTONE SCHEDULE
Service Frequency and Schedules
Inspect and service every site once per week as a contract standard.
The Contractor shall, within ten (10) working days after the effective date of the
Contract, submit a work schedule to the City's representative(s) for review and approval.
Said work schedule shall be based on a twelve -month calendar identifying and
delineating the time frames for the required work by the day of the week, morning or
afternoon.
The Contractor shall submit revised schedules / calendars when actual performance
differs substantially from planned performance. Said revisions shall be submitted to the
City's representative(s) for review and, if appropriate, approval, within five (5) working
days prior to scheduled time for the work.
At the discretion of City staff, weekly inspection meetings will be held(or more
frequently if deemed necessary by the City) between the Contractor and the city
representative(s) are to be scheduled to determine progress, review weekly site
inspections and address any changes in schedules, problem areas, etc.
Contractor shall notify the City, in writing, at least two (2) weeks prior to the date and
time of all pre- approved "Specialty Functions." "Specialty Functions" are defined as:
a. Fertilization
b. Tree Trimming/Management
c. Aerate —Turf
Performance during Inclement Weather
During the periods that rainfall hinders normal operations, the Contractor shall adjust its
workforce to accomplish those activities that are not affected by weather. The prime
factors in assigning work.shall be the safety of the workforce, the public, and damage to
landscaping. Leaf and down branch pickup and drain clearing are a high priority. Rainy
days are not an excuse to pull workforce from city. Contractor shall continue landscape
tasks that can be safely preformed in the rain. Such as sidewalk pruning, low limb
removal, or items that city contractor inspector points out.
Sites and On -Call services are also itemed under Exhibit "D" (payinent /fee schedule).
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Page 1 of 3
City of Gilroy
STAFF REPORT
Agenda Item Title:Approve an Amendment to the Agreement for
Services with Jensen Landscape Services, LLC for
Parks and Landscape Maintenance Services to
Include Trash and Debris Removal, the Annual Cost
for the Expanded Service, Extend the Agreement for
18 Months, with a Total Cost of $1,541,637 for the 18
Month Extension
Meeting Date:February 27, 2023
From:Jimmy Forbis, City Administrator
Department:Public Works
Submitted By:Daryl Jordan, Public Works Director
Prepared By:Michael Lewis, Management Analyst
STRATEGIC PLAN GOALS Maintain and Improve City Infrastructure
RECOMMENDATION
Approve an amendment with Jensen Landscape Services, LLC to increase the annual
contract amount by $92,750 to a total annual amount of $1,027,758 and extend the term
of the existing agreement by 18 months for landscape and maintenance services and
authorize the City Administrator to execute the amendment and related documents.
EXECUTIVE SUMMARY
The City of Gilroy currently contracts with Jensen Landscape Services, LLC to provide
landscape maintenance to various sites throughout the City. This approval followed a
formal bid process and evaluation of several vendors. The current contract will expire
on February 28, 2023.
An amendment is being requested to extend the term of the agreement and to add
garbage and debris removal services to the existing contract.
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Approve Amendment to Agreement for Services with Jensen Landscape Services, LLC for City-
Wide Parks and Landscape Maintenance Services
City of Gilroy Page 2 of 3 February 27, 2023
BACKGROUND
The City Council approved a City-Wide Park and Landscape maintenance contract with
Jensen Landscape Services, LLC on January 8, 2018. The contract expires on
February 28, 2023.
The City of Gilroy has made use of landscape contract maintenance services for more
than twenty years, adding additional facilities and services to the contract as the City
has grown and constructed additional parks, landscaped roadways, public trails, or
other facilities that have required landscape maintenance services. These routine
services include plant care, tree care, weeds, pest control, litter pick-up, irrigation
maintenance, and general maintenance such as seasonal leaf removal. The City
issued an RFP for new contracts, but the City received protests, and further work is
needed as described in the Analysis portion of the staff report. The five-year Park and
Landscape Maintenance Contract is expiring, and an extension is needed to continue
services with Jensen Landscape Services, LLC until the City can enter into a new, long-
term contract with a vendor.
ANALYSIS
Jensen Landscape Services, LLC continues to provide the City with excellent
maintenance services and has proven to be responsive to any needs that arise. Parks
staff has been pleased by the quality of work that Jensen provides for the maintenance
and upkeep of City-Wide landscape areas.
To continue the services outlined in the contract, staff is recommending an amendment
be approved to include trash and debris removal in the scope of work. Staff is also
recommending that the current agreement with Jensen be extended by 18 months to
expire on August 31, 2024.
The revised total not-to-exceed annual contract amount under this amendment is
$1,027,758 per year. At this new annual rate, the cost for the additional 6 months will
be $513,879. The additional year would be $1,027,758, for a combined total of
$1,541,637 for the full 18-month period.
The City recently conducted a Request for Proposal (RFP) process for landscape
maintenance services. The proposals received were evaluated by the Public Works
Department and notices of intent to award were issued which were subsequently
subjected to protests. After further review of the protests and the City’s process for
scoping the services and evaluating the proposals, it was determined revisions are
warranted in the City’s procurement process of the service. Since the current agreement
is set to expire at the end of the month, staff determined it is in the best interest of the
City to cancel the RFPs and extend the existing agreement. This will provide continuity
of services and allow staff time to refine the RFP process and update the evaluation
criteria/metrics. Staff is recommending an 18-month extension; however, staff will plan
on conducting the next RFP process in about 12 months to allow sufficient time for the
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Approve Amendment to Agreement for Services with Jensen Landscape Services, LLC for City-
Wide Parks and Landscape Maintenance Services
City of Gilroy Page 3 of 3 February 27, 2023
process and ensure there is ample notice/transition period should the provider of the
services change as a result of the next RFP process.
ALTERNATIVES
Council could choose not to award the extension to Jensen Landscape Services, LLC.
Not using Jensen Landscape for this work would require an increase in staff time to
conduct the landscape maintenance work and would divert resources from other core
services. Current staffing levels do not support the amount of work needed to maintain
the entirety of the City-Wide area, as such, the City heavily relies on contractors to
perform the work.
FISCAL IMPACT/FUNDING SOURCE
Funding for the landscape maintenance services would be drawn from Fund 100
(General Fund) out of the Landscape Operating budget. There is sufficient funding to
support the contract through the remainder of the fiscal year and services will be
budgeted for future years via the budget development process.
Current Annual Contract Amount = $935,008
Increase to Annual Amount = $92,750
o Trash and Debris Removal - $46,000
o 5% CPI (Consumer Price Index) increase - $46,750
Revised Annual Contract Amount = $1,027,758
Plus 6 additional months = $513,879
Plus 12 additional months = $1,027,758
Total contract extension increase = $1,541,637
NEXT STEPS
With Council approval of the contract with Jensen, staff will finalize the agreement and
continue landscape services with the Contractor.
Attachments:
1. Jensen Third Amendment
2. Jensen Landscapes – Second Amendment
3. Jensen Landscapes – First Amendment
4. Jensen Landscape – Citywide Parks and Landscape Maintenance Services
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-1- 4845-8215-5540v1 MDOLINGER\04706083
THIRD AMENDMENT TO AGREEMENT FOR SERVICES WITH JENSEN LANDSCAPE
SERVICES, LLC FOR CITY-WIDE LANDSCAPE MAINTENANCE SERVICES
This Third Amendment to the Agreement for Services (“Third Amendment”) is made and
entered into as of February 22, 2023 (“Effective Date”), by and between the City of Gilroy, a
California municipal corporation (“CITY”), and Jensen Landscape Services, LLC
(“CONTRACTOR”).
WHEREAS, CITY and CONTRACTOR are parties to that certain Agreement for Services,
effective on March 1, 2018, hereinafter referred to as “Original Agreement”; and
WHEREAS, CITY and CONTRACTOR have determined it is in their mutual interest to amend
certain terms of the Original Agreement.
NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth below
and for other valuable consideration, the receipt and adequacy of which is hereby acknowledged, the
parties hereto agree as follows:
1. Article TERM OF AGREEMENT of the Original Agreement shall be amended to read as
follows:
“This Agreement will become effective on March 1, 2018 and will continue in effect through August
31, 2024 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. Exhibit D of the Original Agreement shall be amended by the addition of the following services
to the Scope of Work:
• Trash & Debris Disposal
3. Article 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 annual compensation paid to CONTRACTOR exceed $1,027,758.”
3. This Amendment shall be effective on March 1, 2023.
4. Except as expressly modified herein, all of the provisions of the Original Agreement shall
remain in full force and effect. In the case of any inconsistencies between the Original Agreement and
this Amendment, the terms of this Amendment shall control.
5. This Amendment may be executed in counterparts, each of which shall be deemed an original,
but all of which together shall constitute one and the same instrument.
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-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 JENSEN LANDSCAPE SERVICES, LLC
By: By:
[signature] [signature] Jimmy Forbis
[employee name] [name] City Administrator
[title/department] [title]
Date: Date:
Approved as to Form ATTEST:
City Attorney City Clerk
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DocuSign Envelope ID: 1A2A4418-DDC3-48C6-9440-0E90AFCBCECB 8.3
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DocuSign Envelope ID: 1A2A4418-DDC3-48C6-9440-0E90AFCBCECB 8.3
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AGREEMENT FOR SERVICES
For contracts over $5,000 — NON - DESIGN, NON - ENGINEERING TYPE CONTRACTOR)
This AGREEMENT made this 4 day of January, 2018, between:
CITY: City of Gilroy, having a principal place of business at
7351 Rosanna Street, Gilroy, California
and CONTRACTOR: Jensen Landscape Services, LLC, having a principal place of business at
81983 Concourse Drive, San Jose, CA 95131.
TERM OF AGREEMENT
This Agreement will become effective on March 1, 2018 and will continue in effect through
February 28, 2021 unless terminated in accordance with the provisions of Article 7 of this
Agreement.
Any lapse in insurance coverage as required by Article 5, Section D of this Agreement shall
tenninate this Agreement regardless of any other provision stated herein. ccr
Initial
INDEPENDENT CONTRACTOR STATUS
It is the express intention of the parties that CONTRACTOR is an independent contractor and
not an employee, agent, joint venture or partner of CITY. Nothing in this Agreement shall be
interpreted or construed as creating or establishing the relationship of employer and employee
between CITY and CONTRACTOR or any employee or agent of CONTRACTOR. Both parties
acknowledge that CONTRACTOR is not an employee for state or federal tax purposes.
CONTRACTOR shall not be entitled to any of the rights or benefits afforded to CITY'S
employees, including, without limitation, disability or unemployment insurance, workers'
compensation, medical insurance, sick leave, retirement benefits or any other employment
benefits. CONTRACTOR shall retain the right to perform services for others during the term of
this Agreement.
SERVICES TO BE PERFORMED BY CONTRACTOR
Specific Services
CONTRACTOR agrees to: Perform the services as outlined in Exhibit "A" ( "Specific
Provisions ") and Exhibit "B" ( "Scope of Services "), within the time periods described in
Exhibit "C" ( "Milestone Schedule ").
Method of Performing Services
CONTRACTOR shall determine the method, details and means of performing the above -
described services. CITY shall have no right to, and shall not, control the manner or determine
the method of accomplishing CONTRACTOR'S services.
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Employment of Assistants
CONTRACTOR may, at the CONTRACTOR'S own expense, employ such assistants as
CONTRACTOR deems necessary to perform the services required of CONTRACTOR by this
Agreement, subject to the prohibition against assignment and subcontracting contained in
Article 5 below. CITY may not control, direct, or supervise CONTRACTOR'S assistants in the
performance of those services. CONTRACTOR assumes full and sole responsibility for the
payment of all compensation and expenses of these assistants and for all state and federal income
tax, unemployment insurance, Social Security, disability insurance and other applicable
withholding.
Place of Work
CONTRACTOR shall perform the services required by this Agreement at any place or location
and at such times as CONTRACTOR shall determine is necessary to properly and timely
perform CONTRACTOR'S services.
COMPENSATION
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 $935,007.86.
Invoices
CONTRACTOR shall submit invoices for all services rendered.
Payment
Payment shall be due according to the payment schedule set forth in Exhibit "D ". No payment
will be made unless CONTRACTOR has first provided City with a written receipt of invoice
describing the work performed and any approved direct expenses (as provided for in
Exhibit "A ", Section M incurred during the preceding period. If CITY objects to all or any
portion of any invoice, CITY shall notify CONTRACTOR of the objection within thirty (30)
days from receipt of the invoice, give reasons for the objection, and pay that portion of the
invoice not in dispute. It shall not constitute a default or breach of this Agreement for CITY not
to pay any invoiced amounts to which it has objected until the objection has been resolved by
mutual agreement of the parties.
Expenses
CONTRACTOR shall be responsible for all costs and expenses incident to the performance of
services for CITY, including but not limited to, all costs of equipment used or provided by
CONTRACTOR, all fees, fines, licenses, bonds or taxes required of or imposed against
CONTRACTOR and all other of CONTRACTOR'S costs of doing business. CITY shall not be
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responsible for any expenses incurred by CONTRACTOR in performing services for CITY,
except for those expenses constituting "direct expenses" referenced on Exhibit "A."
OBLIGATIONS OF CONTRACTOR
Tools and Instrumentalities
CONTRACTOR shall supply all tools and instrumentalities required to perform the services
under this Agreement at its sole cost and expense. CONTRACTOR is not required to purchase
or rent any tools, equipment or services from CITY.
Workers' Compensation
CONTRACTOR agrees to provide workers' compensation insurance for CONTRACTOR'S
employees and agents and agrees to hold harmless, defend with counsel acceptable to CITY and
indemnify CITY, its officers, representatives, agents and employees from and against any and all
claims, suits, damages, costs, fees, demands, causes of action, losses, liabilities and expenses,
including without limitation reasonable attorneys' fees, arising out of any injury, disability, or
death of any of CONTRACTOR'S employees.
Indemnification of Liability, Duty to Defend
As to all liability, to the fullest extent permitted by law, CONTRACTOR shall defend, through
counsel approved by CITY (which approval shall not be unreasonably withheld), indemnify and
hold harmless CITY, its officers, representatives, agents and employees against any and all suits,
damages, costs, fees, claims, demands, causes of action, losses, liabilities and expenses,
including without limitation attorneys' fees, arising or resulting directly or indirectly from any
act or omission of CONTRACTOR or CONTRACTOR'S assistants, employees or agents,
including all claims relating to the injury or death of any person or damage to any property.
Insurance
In addition to any other obligations under this Agreement, CONTRACTOR shall, at no cost to
CITY, obtain and maintain throughout the term of this Agreement: (a) Commercial Liability
Insurance on a per occurrence basis, including coverage for owned and non -owned automobiles,
with a minimum combined single limit coverage of $1,000,000 per occurrence for all damages
due to bodily injury, sickness or disease, or death to any person, and damage to property,
including the loss of use thereof. As a condition precedent to CITY'S obligations under this
Agreement, CONTRACTOR shall furnish written evidence of such coverage (naming CITY, its
officers and employees as additional insureds on the Comprehensive Liability insurance policy
referred to in (a) immediately above via a specific endorsement) and requiring thirty (30) days
written notice of policy lapse or cancellation, or of a material change in policy terms.
Assignment
Notwithstanding any other provision of this Agreement, neither this Agreement nor any duties or
obligations of CONTRACTOR under this Agreement may be assigned or subcontracted by
CONTRACTOR without the prior written consent of CITY, which CITY may withhold in its
sole and absolute discretion.
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State and Federal Taxes
The CONTRACTOR is not a CITY'S employee; CONTRACTOR shall be responsible for
paying all required state and federal taxes. Without limiting the foregoing, CONTRACTOR
acknowledges and agrees that:
CITY will not withhold FICA (Social Security) from CONTRACTOR'S payments;
CITY will not make state or federal unemployment insurance contributions on
CONTRACTOR'S behalf;
CITY will not withhold state or federal income tax from payment to CONTRACTOR;
CITY will not make disability insurance contributions on behalf of CONTRACTOR;
CITY will not obtain workers' compensation insurance on behalf of CONTRACTOR.
Prevailing Wage
The CONTRACTOR agrees and acknowledges that it is its obligation to determine whether, and
to what extent, the work performed under this Agreement is subject to any Codes, Ordinances,
Resolutions, Rules and other Regulations and established policies of the City and the laws of the
State of California, the United States, the California Labor Code and Public Contract Code
relating to public contracting and prevailing wage laws. The CONTRACTOR shall ensure that
all subcontractors are informed and are required to pay prevailing wages in compliance with the
California Labor Code and the regulations thereunder. It shall be the duty of the CONTRACTOR
to post a copy of applicable prevailing wages at the job site. Prevailing wage information may be
obtained at www.dir.ca.gov.
OBLIGATIONS OF CITY
Cooperation of City
CITY agrees to respond to all reasonable requests of CONTRACTOR and provide access, at
reasonable times following receipt by CITY of reasonable notice, to all documents reasonably
necessary to the performance of CONTRACTOR'S duties under this Agreement.
Assignment
CITY may assign this Agreement or any duties or obligations thereunder to a successor
governmental entity without the consent of CONTRACTOR. Such assignment shall not release
CONTRACTOR from any of CONTRACTOR'S duties or obligations under this Agreement.
TERMINATION OF AGREEMENT
Sale of CONTRACTOR's Business/ Death of CONTRACTOR.
CONTRACTOR shall notify CITY of the proposed sale of CONTRACTOR's business no later
than thirty (30) days prior to any such sale. CITY shall have the option of terminating this
Agreement within thirty (30) days after receiving such notice of sale. Any such CITY
termination pursuant to this Article 7.A shall be in writing and sent to the address for notices to
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CONTRACTOR set forth in Exhibit A, Subsection V.H., no later than thirty (30) days after
CITY' receipt of such notice of sale.
If CONTRACTOR is an individual, this Agreement shall be deemed automatically terminated
upon death of CONTRACTOR.
Termination by City for Default of CONTRACTOR
Should CONTRACTOR default in the performance of this Agreement or materially breach any
of its provisions, CITY, at CITY'S option, may terminate this Agreement by giving written
notification to CONTRACTOR. For the purposes of this section, material breach of this
Agreement shall include, but not be limited to the following:
1. CONTRACTOR'S failure to professionally and /or timely perform any of the
services contemplated by this Agreement.
2. CONTRACTOR'S breach of any of its representations, warranties or covenants
contained in this Agreement.
CONTRACTOR shall be entitled to payment only for work completed in accordance with the
terms of this Agreement through the date of the termination notice, as reasonably determined by
CITY, provided that such payment shall not exceed the amounts set forth in this Agreement for
the tasks described on Exhibit C" which have been fully, competently and timely rendered by
CONTRACTOR. Notwithstanding the foregoing, if CITY terminates this Agreement due to
CONTRACTOR'S default in the performance of this Agreement or material breach by
CONTRACTOR of any of its provisions, then in addition to any other rights and remedies CITY
may have, CONTRACTOR shall reimburse CITY, within ten (10) days after demand, for any
and all costs and expenses incurred by CITY in order to complete the tasks constituting the scope
of work as described in this Agreement, to the extent such costs and expenses exceed the
amounts CITY would have been obligated to pay CONTRACTOR for the performance of that
task pursuant to this Agreement.
Termination for Failure to Make Agreed -Upon Payments
Should CITY fail to pay CONTRACTOR all or any part of the compensation set forth in Article
4 of this Agreement on the date due, then if and only if such nonpayment constitutes a default
under this Agreement, CONTRACTOR, at the CONTRACTOR'S option, may terminate this
Agreement if such default is not remedied by CITY within thirty (30) days after demand for such
payment is given by CONTRACTOR to CITY.
Transition after Termination
Upon termination, CONTRACTOR shall immediately stop work, unless cessation could
potentially cause any damage or harm to person or property, in which case CONTRACTOR shall
cease such work as soon as it is safe to do so. CONTRACTOR shall incur no further expenses in
connection with this Agreement. CONTRACTOR shall promptly deliver to CITY all work done
toward completion of the services required hereunder, and shall act in such a manner as to
facilitate any the assumption of CONTRACTOR's duties by any new CONTRACTOR hired by
the CITY to complete such services.
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GENERAL PROVISIONS
Amendment & Modification
No amendments, modifications, alterations or changes to the terms of this Agreement shall be
effective unless and until made in a writing signed by both parties hereto.
Americans with Disabilities Act of 1990
Throughout the term of this Agreement, the CONTRACTOR shall comply fully with all
applicable provisions of the Americans with Disabilities Act of 1990 ( "the Act ") in its current
form and as it may be amended from time to time. CONTRACTOR shall also require such
compliance of all subcontractors performing work under this Agreement, subject to the
prohibition against assignment and subcontracting contained in Article 5 above. The
CONTRACTOR shall defend with counsel acceptable to CITY, indemnify and hold harmless the
CITY OF GILROY, its officers, employees, agents and representatives from and against all suits,
claims, demands, damages, costs, causes of action, losses, liabilities, expenses and fees,
including without limitation reasonable attorneys' fees, that may arise out of any violations of
the Act by the CONTRACTOR, its subcontractors, or the officers, employees, agents or
representatives of either.
Attorneys' Fees
If any action at law or in equity, including an action for declaratory relief, is brought to enforce
or interpret the provisions of this Agreement, the prevailing party will be entitled to reasonable
attorneys' fees, which may be set by the court in the same action or in a separate action brought
for that purpose, in addition to any other relief to which that party may be entitled.
Captions
The captions and headings of the various sections, paragraphs and subparagraphs of the
Agreement are for convenience only and shall not be considered nor referred to for resolving
questions of interpretation.
Compliance with Laws
The CONTRACTOR shall keep itself informed of all State and National laws and all municipal
ordinances and regulations of the CITY which in any manner affect those engaged or employed
in the work, or the materials used in the work, or which in any way affect the conduct of the
work, and of all such orders and decrees of bodies or tribunals having any jurisdiction or
authority over the same. Without limiting the foregoing, CONTRACTOR agrees to observe the
provisions of the Municipal Code of the CITY OF GILROY, obligating every contractor or
subcontractor under a contract or subcontract to the CITY OF GILROY for public works or for
goods or services to refrain from discriminatory employment or subcontracting practices on the
basis of the race, color, sex, religious creed, national origin, ancestry of any employee, applicant
for employment, or any potential subcontractor.
Conflict of Interest
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CONTRACTOR certifies that to the best of its knowledge, no CITY employee or office of any
public agency interested in this Agreement has any pecuniary interest in the business of
CONTRACTOR and that no person associated with CONTRACTOR has any interest that would
constitute a conflict of interest in any manner or degree as to the execution or performance of
this Agreement.
Entire Agreement
This Agreement supersedes any and all prior agreements, whether oral or written, between the
parties hereto with respect to the rendering of services by CONTRACTOR for CITY and
contains all the covenants and agreements between the parties with respect to the rendering of
such services in any manner whatsoever. Each party to this Agreement acknowledges that no
representations, inducements, promises or agreements, orally or otherwise, have been made by
any party, or anyone acting on behalf of any party, which are not embodied herein, and that no
other agreement, statement or promise not contained in this Agreement shall be valid or binding.
No other agreements or conversation with any officer, agent or employee of CITY prior to
execution of this Agreement shall affect or modify any of the terms or obligations contained in
any documents comprising this Agreement. Such other agreements or conversations shall be
considered as unofficial information and in no way binding upon CITY.
Governing Law and Venue
This Agreement shall be governed by and construed in accordance with the laws of the State of
California without regard to the conflict of laws provisions of any jurisdiction. The exclusive
jurisdiction and venue with respect to any and all disputes arising hereunder shall be in state and
federal courts located in Santa Clara County, California.
Notices
Any notice to be given hereunder by either party to the other may be effected either by personal
delivery in writing or by mail, registered or certified, postage prepaid with return receipt
requested. Mailed notices shall be addressed to the parties at the addresses appearing in
Exhibit "A ", Section V.H. but each party may change the address by written notice in
accordance with this paragraph. Notices delivered personally will be deemed delivered as of
actual receipt; mailed notices will be deemed delivered as of three (3) days after mailing.
Partial Invalidity
If any provision in this Agreement is held by a court of competent jurisdiction to be invalid, void
or unenforceable, the remaining provisions will nevertheless continue in full force without being
impaired or invalidated in any way.
Time of the Essence
All dates and times referred to in this Agreement are of the essence.
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CONTRACTOR agrees that waiver by CITY of any one or more of the conditions of
performance under this Agreement shall not be construed as waiver(s) of any other condition of
perfonnance under this Agreement.
Executed at Gilroy, California, on the date and year first above written.
CONTRACTOR:
Jensen Landscape Services, LLC
1
Name: Clint Christman
Title: District Manager
Social Security or Taxpayer
Identification Number 204880717
Approved as to Fonn
City Attorney
CITY:
CITY OF GILROY
By:
Name: Gabriel Gonzalez
Title: City Administrator
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i
SPECIFIC PROVISIONS
PROJECT MANAGER
CONTRACTOR shall provide the services indicated on the attached Exhibit "B ", Scope of
Services ( "Services "). (All exhibits referenced are incorporated herein by reference.) To
accomplish that end, CONTRACTOR agrees to assign Bill Headley, Parks Supervisor, who
will act in the capacity of Project Manager, and who will personally direct such Services.
Except as may be specified elsewhere in this Agreement, CONTRACTOR shall furnish all
technical and professional services including labor, material, equipment, transportation,
supervision and expertise to perform all operations necessary and required to complete the
Services in accordance with the terms of this Agreement.
NOTICE TO PROCEED /COMPLETION OF SERVICE
NOTICE TO PROCEED
CONTRACTOR shall commence the Services upon delivery to CONTRACTOR of a written
Notice to Proceed ", which Notice to Proceed shall be in the form of a written communication
from designated City contact person(s). Notice to Proceed may be in the form of e -mail, fax or
letter authorizing commencement of the Services. For purposes of this Agreement, Bill
Headley, Parks Supervisor shall be the designated City contact person(s). Notice to Proceed
shall be deemed to have been delivered upon actual receipt by CONTRACTOR or if otherwise
delivered as provided in the Section V.H. ( "Notices ") of this Exhibit "A ".
COMPLETION OF SERVICES
When CITY determines that CONTRACTOR has completed all of the Services in accordance
with the terms of this Agreement, CITY shall give CONTRACTOR written Notice of Final
Acceptance, and CONTRACTOR shall not incur any further costs hereunder. CONTRACTOR
may request this determination of completion when, in its opinion, it has completed all of the
Services as required by the terms of this Agreement and, if so requested, CITY shall make this
determination within two (2) weeks of such request, or if CITY determines that CONTRACTOR
has not completed all of such Services as required by this Agreement, CITY shall so inform
CONTRACTOR within this two (2) week period.
PROGRESS SCHEDULE
The schedule for performance and completion of the Services will be as set forth in the attached
Exhibit "C ".
PAYMENT OF FEES AND DIRECT EXPENSES
Payments shall be made to CONTRACTOR as provided for in Article 4 of this Agreement.
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Direct expenses are charges and fees not included in Exhibit "B ". CITY shall be obligated to
pay only for those direct expenses which have been previously approved in writing by CITY.
CONTRACTOR shall obtain written approval from CITY prior to incurring or billing of direct
expenses.
Copies of pertinent financial records, including invoices, will be included with the submission of
billing(s) for all direct expenses.
OTHER PROVISIONS
STANDARD OF WORKMANSHIP
CONTRACTOR represents and warrants that it has the qualifications, skills and licenses
necessary to perform the Services, and its duties and obligations, expressed and implied,
contained herein, and CITY expressly relies upon CONTRACTOR'S representations and
warranties regarding its skills, qualifications and licenses. CONTRACTOR shall perform such
Services and duties in conformance to and consistent with the standards generally recognized as
being employed by professionals in the same discipline in the State of California.
Any plans, designs, specifications, estimates, calculations, reports and other documents furnished
under this Agreement shall be of a quality acceptable to CITY. The minimum criteria for
acceptance shall be a product of neat appearance, well - organized, technically and grammatically
correct, and checked and having the maker and checker identified. The minimum standard of
appearance, organization and content of the drawings shall be that used by CITY for similar
purposes.
RESPONSIBILITY OF CONTRACTOR
CONTRACTOR shall be responsible for the professional quality, technical accuracy, and the
coordination of the Services furnished by it under this Agreement. CONTRACTOR shall not be
responsible for the accuracy of any project or technical information provided by the CITY. The
CITY'S review, acceptance or payment for any of the Services shall not be construed to operate
as a waiver of any rights under this Agreement or of any cause of action arising out of the
performance of this Agreement, and CONTRACTOR shall be and remain liable to CITY in
accordance with applicable law for all damages to CITY caused by CONTRACTOR'S negligent
performance of any of the services furnished under this Agreement.
RIGHT OF CITY TO INSPECT RECORDS OF CONTRACTOR
CITY, through its authorized employees, representatives or agents, shall have the right, at any
and all reasonable times, to audit the books and records (including, but not limited to, invoices,
vouchers, canceled checks, time cards, etc.) of CONTRACTOR for the purpose of verifying any
and all charges made by CONTRACTOR in connection with this Agreement. CONTRACTOR
shall maintain for a minimum period of three (3) years (from the date of final payment to
CONTRACTOR), or for any longer period required by law, sufficient books and records in
accordance with standard California accounting practices to establish the correctness of all
charges submitted to CITY by CONTRACTOR, all of which shall be made available to CITY at
the CITY's offices within five (5) business days after CITY's request.
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CONFIDENTIALITY OF MATERIAL
All ideas, memoranda, specifications, plans, manufacturing procedures, data (including, but not
limited to, computer data and source code), drawings, descriptions, documents, discussions or
other information developed or received by or for CONTRACTOR and all other written and oral
information developed or received by or for CONTRACTOR and all other written and oral
information submitted to CONTRACTOR in connection with the performance of this Agreement
shall be held confidential by CONTRACTOR and shall not, without the prior written consent of
CITY, be used for any purposes other than the performance of the Services, nor be disclosed to
an entity not connected with the performance of the such Services. Nothing furnished to
CONTRACTOR which is otherwise known to CONTRACTOR or is or becomes generally
known to the related industry (other than that which becomes generally known as the result of
CONTRACTOR'S disclosure thereof) shall be deemed confidential. CONTRACTOR shall not
use CITY'S name or insignia, or distribute publicity pertaining to the services rendered under
this Agreement in any magazine, trade paper, newspaper or other medium without the express
written consent of CITY.
NO PLEDGING OF CITY'S CREDIT.
Under no circumstances shall CONTRACTOR have the authority or power to pledge the credit
of CITY or incur any obligation in the name of CITY.
OWNERSHIP OF MATERIAL.
All material including, but not limited to, computer information, data and source code, sketches,
tracings, drawings, plans, diagrams, quantities, estimates, specifications, proposals, tests, maps,
calculations, photographs, reports and other material developed, collected, prepared (or caused to
be prepared) under this Agreement shall be the property of CITY, but CONTRACTOR may
retain and use copies thereof subject to Section V.D of this Exhibit "A ".
CITY shall not be limited in any way in its use of said material at any time for any work,
whether or not associated with the City project for which the Services are performed. However,
CONTRACTOR shall not be responsible for, and City shall indemnify CONTRACTOR from,
damages resulting from the use of said material for work other than PROJECT, including, but
not limited to, the release of this material to third parties for work other than on PROJECT.
NO THIRD PARTY BENEFICIARY.
This Agreement shall not be construed or deemed to be an agreement for the benefit of any third
party or parties, and no third party or parties shall have any claim or right of action hereunder for
any cause whatsoever.
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NOTICES.
Notices are to be sent as follows:
CITY: Bill Headley, Parks Supervisor
City of Gilroy
7351 Rosanna Street
Gilroy, CA 95020
CONTRACTOR: Clint Christman, District Manager
Jensen Landscape Services, LLC
1983 Concourse Drive
San Jose, CA 95131
FEDERAL FUNDING REQUIREMENTS.
If the box to the left of this sentence is checked, this Agreement involves federal
funding and the requirements of this Section V.I. apply.
Q If the box to the left of this sentence is checked, this Agreement does not involve
federal funding and the requirements of this Section V.I. do not apply.
DBE Program
CONTRACTOR shall comply with the requirements of Title 49, Part 26, Code of Federal
Regulations (49 CFR 26) and the City- adopted Disadvantaged Business Enterprise programs.
Cost Principles
Federal Acquisition Regulations in Title 48, CFR 31, shall be used to determine the allowable
cost for individual items.
Covenant against Contingent Fees
The CONTRACTOR warrants that he /she has not employed or retained any company or person,
other than a bona fide employee working for the CONTRACTOR, to solicit or secure this
Agreement, and that he /she has not paid or agreed to pay any company or person, other than a
bona fide employee, any fee, commission, percentage, brokerage fee, gift or any other
consideration, contingent upon or resulting from the award or formation of this Agreement. For
breach or violation of this warranty, the Local Agency shall have the right to annul this
Agreement without liability or, at its discretion, to deduct from the agreement price or
consideration, or otherwise recover, the full amount of such fee, commission, percentage,
brokerage fee, gift or contingent fee.
4835 - 2267 -03610 _4_ LA004706083
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4835 - 2267- 0361v1
LAC104706083
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EXHIBIT "B"
SCOPE OF SERVICES
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LANDSCAPE STANDARDS AND SPECIFICATIONS
1. Landscape Maintenance Areas
Landscape maintenance areas shall consist of City parks, landscaped City facilities, slope
areas, medians, streetscapes, and trails, drainage channels, identified in the Contract
Landscape Location Information Sheets. These areas shall include all turf, trees, shrubs,
ground covers, planters, slopes, vines, sidewalks, paths, courts, courtyards, decks, park
equipment, BBQs and group BBQ facilities, parking lots, roadways, medians, opens
space areas, gutters, v- ditch, bike trails, street barriers, fence lines and irrigations
systems.
2. Normal Hours and Days of Maintenance Services
a. Contractor shall perform the required maintenance service daily between the hours of
6:00 a.m. and 6:00 p.m., seven days per week including holidays. No maintenance
functions that generate excess noise, which would cause annoyance to residents of the
area. Forest Street Park is specifically a no blower facility.
b. The Contractor shall conduct the work at all times in a manner which will not
interfere with normal recreation programs, special events, pedestrian traffic on
adjacent sidewalks or vehicular traffic on adjacent streets.
c. Any modification in the hours and days of maintenance services as stated in the
Contractor's Service Schedules/ Calendars are subject to approval by the City.
d. Contractor shall be responsible for reviewing the minimum site visit frequencies as
shown on Attachment B.
3. Personnel
a. Positive public relations are an important part of this contract service. Services
provide under the City -wide landscape service contact are a critical part of providing
and maintaining these important public use facilities. Contract staff serves a vital
role in delivering these public services. Contract staff must maintain both
professional image and behavior whenever in contact with citizens. Contract staff
shall be trained on how to handle public contact and provide the appropriate customer
service. Contract staff must always maintain a neat and clean appearance and be
easily identified by some type of company uniform.
b. A background review and security clearance for all on -site contract employees is
required. Contractor shall provide all needed information to the City's representative
and make employees available for finger printing at a site to be determined.
Contractor shall provide any background information needed for Department of
Justice (DOJ) and Department of Motor Vehicles (DMV) drivers' record review.
Further, a one -time drug testing or evidence of drug screening maybe required for
background review. All cost for background check will be paid by contractor.
c. The Contractor shall provide personnel fully trained in all phases of landscape
irrigation systems operation, maintenance, adjustments, and repair; in all types of
components to include irrigation controllers, valves, moisture sensing devices, and
sprinkler heads; and with all brands and models of irrigation equipment used within
the City.
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d. The Contractor shall provide personnel knowledgeable of, and proficient in, current
water management concepts, with the capability of working with City staff in
implementing more advanced water management strategies.
e. The Contractor shall provide personnel capable of verbal and written
communication in professional level English. Site Supervisor and Irrigation Tech
shall have cell phone with email access.
f. The City expects the Contractor's staff to give to city representative(s) all items lost
or misplaced by the general public, regardless of perceived value found on contract
sites. The Contractor shall communicate this expectation to all employees.
g. Contract employees shall carry an ID badge with their photo provided by the City
Human Resources Department. Contract employees shall produce photo ID when
requested.
h. The City will provide mandatory SMP training for all contract landscape
maintenance staff regarding storm water management and operational best practices.
City will provide Spanish/English translator.
i. A contractor's representative shall attend City's annual traffic safety class.
4. Service Changes
The City reserves the right to make additions, deletions, revisions and/or otherwise
modify the General and Specific Landscape Maintenance Specifications or change the
frequency of the services during the contract period. A Request for Quote will be issued
for additional service work or one time contract work. A change order will be issued
with a two -week notice. Any change in Specification that causes the contractor to suffer
additional expenses shall be adjusted based on the fee schedule or negotiated upon
written justification.
5. Vandalism and Repair of Damage
Contractor shall report any damage to City property, including but not limited to,
vandalism, acts of God, and third party negligence, to the City representative. If the
Contractor, its employees or subcontractors cause damage to any City facility then the
Contractor shall repair such damage at its own cost within a reasonable time or the City
may repair or cause the repair of such damage and the cost thereof shall be deducted from
monies due to the Contractor from the City.
6. Protection of Existing Sites and Structures
The Contractor shall exercise due care in protecting from damage all existing sites,
structures and utilities both above surface and underground on the City's property. Any
damage to City property deemed to be caused by the Contractor's negligence or failure to
use due care shall be corrected or paid for by the Contractor at no cost to the City.
If the City requests or directs the Contractor to perform work in a given area, Contractor
shall verify and locate any underground utilities. This does not release the Contractor's
duty to take reasonable precautions when working in these areas. Any damage or
problems shall be reported immediately to the City.
7. Service Frequency and Schedules
Inspect and service every site base on the sample with once per week as a base standard.
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Less frequent or more frequent services may be approved as necessary to insure
specifications and standards are met.
The Contractor shall, within ten (10) working days after the effective date of the
Contract, submit a work schedule to the City's representative(s) for review and approval.
Said work schedule shall be based on a twelve -month calendar identifying and
delineating the time frames for the required work by the day of the week, morning or
afternoon.
The Contractor shall submit revised schedules / calendars when actual performance
differs substantially from planned performance. Said revisions shall be submitted to the
City's representative(s) for review and, if appropriate, approval, within five (5) working
days prior to scheduled time for the work.
At the discretion of City staff, weekly inspection meetings will be held(or more
frequently if deemed necessary by the City) between the Contractor and the city
representative(s) are to be scheduled to determine progress, review weekly site
inspections and address any changes in schedules, problem areas, etc.
Contractor shall notify the City, in writing (email), at least two (2) weeks prior to the date
and time of all pre- approved "Specialty Functions." "Specialty Functions" are defined
as:
a. Fertilization
b. Tree Trimming/Management
c. Aeration of Turf
Performance during Inclement Weather
During the periods that rainfall hinders normal operations, the Contractor shall adjust its
workforce to accomplish those activities that are not affected by weather. The prime
factors in assigning work shall be the safety of the workforce and damage to landscaping.
Leaf and down branch pickup and drain clearing are a high priority. Rainy days are not
an excuse to pull workforce from city. Contractor shall continue landscape tasks that can
be safely preform in the rain. Such as sidewalk pruning, low limb removal, or items that
city contractor inspector points out.
8. Extra Work/ Excluded Work
The following tasks shall be treated as extra work items:
a. Soil testing
b. Major tree trimming. Major tree trimming is defined as work that requires an aerial
lift (bucket truck), tree climbing or work that cannot be done from the ground with
a pole saw or pole chain saw.
c. Filling of holes in turf or shrub beds. (filling minor holes is included in. the
Contractor's work)
d. Major irrigation repairs such as controllers, mainline repairs, valve replacement,
and irrigation wire repairs, pumps, and backflow devices.
e. Turf over seeding and top dressing will be handled by city staff.
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f. Debell Uvas Creek Park Preserve open space / channel, Christmas Hill Park
Hillside, and overflow parking area shall be done by city staff.
g. Doggie Bag Dispenser Maintenance and /or refilling with new bags.
h. Recreation Program support including ball field prep
i. Facility reservation support and customer response
j. General Park, playground and building repairs.
k. Electrical system maintenance and repairs
1. Raking and cleaning of playground surfaces such as sand and wood fiber shall be done
by city staff. Concrete surfaces around playground areas are to be cleaned (blown off)
during the service schedule by contractor. Contractor will rake leaves, pick up
garbage and debris during the scheduled service day in the playground areas.
9. Garbage, Litter and Debris Removal
a. Garbage, litter, and debris shall be removed as needed to prevent citizen complaint
and prepare turf areas for mowing and general facility use. Trash containers shall be
serviced and emptied when 1/3 full or when there is detectable odor.
b. Site Service frequency is shown in Attachment B.
c. Garbage can liners shall be supplied by the Contractor and be of a quality approved
by the City representative. Garbage can liners shall be replaced when cans are
emptied.
d. Litter and plant debris will be removed from landscaped, hardscape, and adjacent
open space areas on a regular basis to achieve neat, clean, and attractive facilities.
Landscape debris will not be blown into streets and left unless collection of such
debris has been previously approved and coordinated with city staff.
e. Heavy litter and garbage days will require that multiple service vehicles and staff
be provided. Aggressive mobile staffing levels for cleanup will be needed on
Sundays, Monday, and day after holidays to ensure prompt removal of litter and
garbage at contract sites.
f. Shopping carts and garage sale signs in and on the perimeter of contract sites shall
be considered part of the garbage and litter removal service. Functioning shopping
carts are to be placed in the corner of the employee parking lot. Non - working
shopping carts are to be loaded into the metal bid in the yard.
g. Disposal of garbage, litter, and debris shall be made at the City yard disposal areas
and any available on -site trash dumpsters. Alternate yard waste disposal sites other
than the City yard may become available and will be reported to the Contractor by the
City representative. Contractor shall have dumping capabilities so waste will be kept
inside bunker in the yard.
h. Additional Garbage Cans: Contractor shall include in the price an additional service
of 25 additional garbage cans. These garbage cans will be installed purchased and
installed by city staff.
10. Landscape Maintenance (Facilities, Parks, Trails, Slope Areas, Parking Lots)
A. GENERAL (items below to be done per service schedule)
1. All animal feces or other materials detrimental to human health shall be removed
per the service schedule.
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2. All broken glass and sharp objects shall be removed per the service schedule.
3. All areas shall be inspected per the service schedule and maintained in a neat,
clean, and safe condition at all times.
4. All areas shall have leaves and debris removed per the service schedule.
5. All areas shall be inspected for vandalism, safety hazards, and serviceability per
the service schedule. Deficiencies shall be reported in writing immediately
email) to the City.
6. All sidewalks within the City areas shall be swept or cleaned, if necessary, to
remove any glass or heavy debris.
7. All sidewalk areas abutting maintained areas shall be cleaned when dirtied by
Contractor's operations and at other times as required.
8. All leaves, paper, and debris shall be removed from landscaped areas and
disposed of offsite.
9. Trash cans provided by City shall be emptied per the service schedule. Contractor
shall provide plastic liners for all trash cans at Contractor's expense, to be
changed, not emptied, per the service schedule.
10. All "V" drains shall be kept free of vegetation, debris, and algae to allow
unrestricted water flow.
11. All other drainage facilities shall be cleaned of all vegetation and debris. All
grates shall be tested for security and refastened as necessary. Missing or
damaged grates shall be reported to City.
B. HARD SURFACE AREAS
1. All areas shall be swept weekly to remove all deposits of silt and/or sand. Any
unsafe condition shall be removed upon discovery per the service schedule.
2. All areas shall be inspected per the service schedule and maintained in a neat,
clean, and safe condition at all times.
3. Tennis, handball, bocce ball and basketball courts should be blown off according
to the service schedule as needed.
4. Park barbecues to be cleaned on Mondays and Fridays.
C. BICYCLE/WALKING TRAILS /ASPHALT WALKWAYS/ TRAILS
Special emphasis shall be placed on edging along these areas to prevent damage to
asphalt by vegetation. Bicycle /walking trails shall be kept free of encroaching vegetation.
All trail should be kept weed free 24" from edge of trail.
11. Plant Care
Tree, Shrub and Ground Cover Maintenance
The latest edition of the Sunset Western Garden Book shall be the general guidelines and
reference tool for care and maintenance of all plant material.
A. Shrubs and Ground Covers
1. Pruning will be done in a manner to enhance the natural form of the plant and maintain
the design intent for the landscape. However there are or can be landscaped areas with
security concerns that will require different pruning for safety visibility. The City
representative will notify Contractor of special pruning sites.
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2. Typically, shrubs which are planted along walls and fences should be maintained in a
manner which will allow the plant material to soften the hard structural feature.
3. Where the design intent is to have sweeps of shrubs, the plants shall be allowed to grow
together.
4. In some areas, it may be more appropriate to remove some shrubs entirely and allow
adjacent plant material to fill in rather than try to keep the plants in bounds with repeated
pruning.
5. Keep shrubs and ground cover 6 " -12" from buildings, walls, trees and shrubs. Shrubs
and ground cover shall not be allowed to encroach upon walks or curbs.
6. City will provide a species specific and site specific pruning guideline appendix for
selected plants to the company awarded contract.
7. Examples of plant care we expect shown below.
a) Vines and overhead vegetation (up to 18') on or over hanging walls boundary fences
shall be trimmed from growing on private property, i.e. the back side of wall. This
does not apply to existing vines have already grown over. If adjacent property owner
requests ivy or vegetation trimmed from top of wall, contractor shall be required to
remove it.
b) Hedge plants shall be allowed to grow together.
c) Rosemary and like ground covers to be cut back to 8 -12" in height. Except where
rosemary is already overgrown.
d) Ornamental grasses are to be pruned back during the winter months.
e) Ground cover roses are be encouraged to grow together and are to be kept under 24" in
height.
f) Spring flowering perennials are to be cut back after flowering. Examples Lavender
and daylilies.
g) Oleanders on South Monterey are to be pruned back every two years.
h) A three foot radius of free space shall be maintained around all fire hydrants. Low
ground (under 6 ") cover is ok.
8. Allow plants to grow to their natural shape.
9. All shrubs and ground cover is to be trimmed not to interfere with irrigation operation or
to encroach on to private property or Right -of -Way. Line of sight traffic safety issues as
identified by City engineering Department will also determine proper height and
appearance.
10. All dead, diseased and unsightly branches, vines or other growth shall be removed as they
develop.
11. All shrubs are to be trimmed symmetrically in natural form and proportion, but not to
interfere with vehicular and pedestrian clearance, visibility and access, unless otherwise
directed by a City's representative. Prune shrubs to encourage healthy growth habits,
natural form and proportion, symmetrical appearance and proper vertical and horizontal
clearance. Line of sight traffic safety issues as identified by City Contract Inspector will
also determine proper height and appearance.
B. Trimming and Care of trees includes:
LQualified Professional personnel shall perform all pruning. Only recognized and
approved methods, techniques and standards shall be used. Trees pruned improperly or
damaged will be replaced by Contractor with plants of the same appropriate size as
determined by the City inspector.
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2. All tree pruning shall conform to the Best Management Practices for Trees published by
the International society of Arboriculture and adhere to the most recent edition of the
American National Standards for Maintenance Tree Care Operations (ANSI A330)
3. Contractor shall raise trees as needed or directed by city staff and /or designated
representative.
4. Pruning of trees shall be done for the following conditions:
a. To maintain clearance for pedestrians (8 feet), road ways for vehicles (15 feet),
or from facilities (5 feet).
b. Property line/boundary pruning for both balance and good neighbor pruning for
sound walls, parks, and pump stations areas
c. To provide visibility site lines of pedestrians and motorists.
d. To maintain walkways and maintenance bands free from obstruction and /or
safety issues.
e. To improved or enhance tree growth.
f. To eliminate or reduce potentially unsafe conditions.
g. To correct shape, particularly for wind disfigurements.
5. Remove no more than 20% of live foliage within the trees during one pruning operation.
6. All cuts shall be thinning cuts as opposed to heading cuts. This means leaving a lateral
branch no less than 1/3 the diameter of the parent branch, or completely removing the
branch at its point of origin.
7. All cuts shall be distal to the branch bark ridge or, if present the branch collar. The cuts
shall be close to but shall not injure the branch collar.
8. Interior branches shall not be stripped out. Liontailing is not permitted.
9. Contractor shall prune young trees under 18 foot in height to develop permanent
scaffold branches, remove crossing branches, remove diseased or damaged growth, or
eliminate narrow branch crotches.
10. Major tree trimming is not included. Major tree trimming is defined as work that
requires an aerial lift (bucket truck), tree climbing or work that cannot be done from the
ground with a pole saw or pole chain saw.
11. Trees shall be inspected regularly for hazardous conditions. Corrective action shall be
promptly performed by the contractor and the city notified.
12. Contractor to coordinate with city staff on large pruning projects so city can chip
branches. A notification of ten working days is required in non - emergency conditions.
13. Periodic re- staking and tying shall be done as needed. Plant ties shall be checked
frequently and adjusted to prevent girdling. Trees shall not rub against stakes at any
time. When trees no longer require the support of stakes, contact the city for
authorization to remove staked and ties.
14. Young trees which are leaning due to under developed truck caliper will be staked at the
direction of the city.
15. Fallen trees or branches shall be promptly removed. Promptly notify the City for large
trees down.
12. Landscaped Roadways, Roundabouts, and Medians
1. The scope of work for medians not only includes the landscaped areas but also those
areas. of the median that are attached or directly adjacent to cobble /concrete hardscape
per its design. (Noses and turn lanes are examples of this condition).
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2. Plant material shall not be allowed to obstruct any site line of vehicular traffic, and
shall be kept below 36" in height from the road surface in any areas where traffic site
lines may be impacted. City Traffic Engineer and Landscape Inspector may provide
direction as requested for proper maintenance.
3. Irrigation shall be adjusted and inspected as often as needed to insure no unsafe
condition is created by irrigation run -off onto road surface or over spray onto
vehicles.
4. All maintenance personnel shall wear class 3 safety vests while working on medians,
and at no time shall major work be performed in the roadway without City approved
Traffic Control Plan and all required traffic control signage in place.
5. Contractor is responsible for insuring that all median maintenance is performed in a
safe manner and that no hazard is created by such operation.
6. When closing a lane for landscape maintenance work an electronic sign board (arrow)
shall be used in high speed and/or high traffic areas (i.e. Santa Teresa). Work shall
only be performed on the closed lane side.
7. Cones are to be bright orange. Old and faded cones shall be replaced.
8. Notify city staff when high speed or high traffic areas are to be serviced via email.
9. If the work (minor work) to be performed in medians and roundabout will take less
time to complete then the time it takes to set up traffic control, then no traffic control
is necessary. An example would be weed spraying, litter control, or irrigation
maintenance.
13. Turf Care
A. Turf Mowing
1. The contractor shall not mow, or use any equipment of turf areas when frost is present
or if the turf is saturated or standing water is present. Mowing should not begin until
turf area is free of litter and trash.
2. Mowing shall be accomplished with rotary mulching mowers. Blades shall be kept
sharp to produce a clean cut. Mowers shall be kept clean and free of fuel, oil, hydraulic
fluid, and grease leaks.
3. Mowing equipment shall be washed between sites to minimize the spread of weed
seeds.
4. Mowing patterns shall be alternated to avoid creating ruts and compaction.
5. Use caution when mowing berms or uneven areas to avoid scalping turf. Rodent dirt
mounds need to be knocked down, spread, or removed so as reduce turf loss until
rodent activity is abated.
6. Mowing shall typically be performed as needed from December through March and at
least weekly from April through November. This is a guide only and will vary based
on weather. Mowing shall be frequent enough so that no more than 1/3 of the leaf is
removed at each mowing. During active growing season, mowing may need to be
done twice weekly on play fields. Mowing height shall be 3 1/2 "unless otherwise
directed by city staff. Sports Field mowing heights may change during seasonal play.
7. All clippings shall be efficiently mulched to leave no visible trace or picked and
removed only when necessary and removed to a designated dumping site. At no time
shall unsightly clippings be left before vacating site following mowing operation.
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8. Contractor shall have a spare mower of comparable size available within 24 hours of a
mower breaking down.
9. Keep grass clippings away from waterways and out of the street.
B. Turf Aeration
1. All turf (not including the no -mow turf) shall be core aerated in September /October.
Cores should be reincorporated into the turf. Core size should be %2" diameter.
Alternative methods of relieving compaction may be authorized by City.
a. Core aerate Christmas Hill Park & Ranch site, San Ysidro Park, Los Arroyos
Park, Sport Park, and Sunrise Park again in April.
2. Prior to any cultivation activity, all irrigation heads, valves, and utility.boxes shall be
Ragged. The soil shall be allowed to dry prior to cultivation.
C. Edging
1. When turf abuts concrete walk ways or concrete mow band, turf shall be edged with a
metal blade edger. If a spin trimmer is required to edge around utility boxes, or
wooden header boards, it shall be held so that the cut is vertical. A bevel cut will not
be used. After mowing or edging hardscape (walks /drives /patios /streets) shall be
swept or blown clean. Debris will not be left in street gutters or and removed before
vacating site.
2. Tree wells are to be maintained with a neat turf edge and wells shall be kept weed free.
3. Chemical edging shall not be used anywhere.
D. Turf Fertilization
1. Fertilization schedule for all turf shall be:
a. March/April 44 -0 -0 Polyplus SL
b. Late August, early September 16 -8 -8
c. October - November 44 -0 -0 65% Polyplus SL Urea
2. Granular gypsum at a rate of 5# 11000 square feet will be applied to the Sports Park
and Christmas Hill /Ranch sites in September /October
3. Granular sulfur at a rate of 5 #.1000 square feet will be applied to the Sports Park and
Christmas Hill/Ranch sits in September /October
4. The Sports Park is equipped for fertilizer injection. This may be used to supplement
the above and possibly replace some of the granular applications.
5. The above is a guide and may be adjusted based on turf conditions and weather.
6. Fertilizer use shall be reported with pesticide use.
E. Turf Pest control
1. Weeds - The contractor is to submit a turf weed control plan that will lead a
substantial reduction in turf weeds. This turf weed control plan is be submitted to and
accepted by the City. Failure of contractor to apply herbicides according to the plan will
result in "service not provided" actions. No pesticides, herbicides, or other chemicals may
be used in or around Low Impact Development Structural Control Measures such as Bio-
retention ponds, bio- swales, or infiltration ponds of any kind.
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14. Pest Control
1. Non -Turf Weed Control Plan- Develop an annual weed control plan that your company
feels would produce a cost effective approach that provides high quality results for shrubs
and ground cover, annual flowers, bike /walking trails, open space edges/ post and
cable /fence lines, and hardscape (cracks and crevices) including sidewalk, curb and gutter
frontages. Control weeds with pre- emergent herbicides and selective systematic
herbicides or through mechanical means, i.e. mowing, hoeing and weed whipping.
2. Village Green Park Site and open space areas west of Hecker Pass Park along Uvas
Creek Bike Trail (Debell & Uvas Creek Linear Park) -Sites are to be mowed after
wildflower bloom (by June 1) and as needed after first mowing. Develop a plan to
eliminate Yellow Star Thistle, Dittrichia graveolens, and other invasive weeds which will
allow wildflowers to thrive.
3. Written Pest Control Recommendations - A written pest control recommendation from
a licensed pest control advisor will be required for all pesticide applications. The
contractor shall provide copies of all recommendations to the City at least _5_ working
days prior to application. Recommendation shall take into consideration drainage to water
ways (Uvas Creek), drain inlets, and adjacent schools. Recommendation shall evaluate
pesticides used and application activities performed and identify pollution prevention and
source control opportunities.
4. Prohibit application of pesticides, herbicides and fertilizers as required by the regulations
DPR 11 -004 Prevention of Surface Water Contamination by Pesticides enacted by the
Department of Pesticide Regulation.
5. No spraying shall be within 48 hours of predicted rainfall with greater than 50%
probability as predicted by National Oceanic and Atmospheric Administration (NOAA).
6. Collect and properly dispose of unused pesticides, herbicides and fertilizers containers.
7. Do not spray weeds in playground areas. Weeds are to be removed manually.
8. Reoccurring unwanted plants (i.e. berry bushes, poison oak) are to be sprayed to kill plant
roots or removed by digging up root system.
9. Trees in turf - maintain a minimum 3 ft. radius weed free.
10. Product Use Summery - Prior to the 15th of the month, the contractor shall provide to the
city a summary of pesticides used the prior month. Provide the product EPA registration
number and the amount of product used.
11. Posting — post all entry areas with spray notices when broadcast spraying public use
areas and verbally notify public visitors when spot spraying when in the area. Remove
facility spray notices when spraying is complete unless product label provides for
different posting requirements.
12. Spray marker — the routine use of spray marker dyes is discouraged. Contact the City if
such use is desired
13. Moluskacides should be iron phosphate based or other City approved control
14. Rodenticides applied for gopher control must be applied into underground burrow.
Rodenticides applied for ground squirrel control must be placed into secure bait stations.
The City must approve bait station design and location. Applicators applying restricted
use rodenticides must hold appropriate licensing
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15. Pest Control Licensing — The contractor shall have a qualified person who holds the
appropriated California Department of Pesticide Regulations licensing oversee all
pesticide applications. If restricted materials are used, the applicator must be licensed.
16. Trails — keep trail shoulders free of weeds 24" from any trail hardscape edges. Concrete
fences shall be kept weed 12 inches into preserve areas.
17. Minimal insect control is practiced and is to be handled on a case -by -case basis. This is
included in the contract. The City will not be charged for this service.
18. Minimal disease control is practiced and is to be handled on a case -by -case basis. This is
included in the contract. The City will not be charged for this service. In the last five
years no disease control was necessary.
19. Rodent Control
a.All mounds, burrows, or other minor damage shall be discovered in a timely
manner and repaired by Contractor. Rodent problems should be identified and
reported to the City in their early stages as part of weekly inspections before
causing critical damage to areas. Lack of early discovery will be considered
negligence on the part of the Contractor. Depending on the scope of the problem,
rodent control in the form of baiting or trapping will be recommended and
scheduled work.
b.Gopher.
i. The contractor shall obtain a written pest control recommendation from a
licensed Pest Control Advisor for baiting for gopher control. All bait shall
be placed below ground in the burrow system. Any spilled bait shall be
promptly picked up. Any dead gophers found on the surface shall be
collected and properly disposed of.
ii. If trapping is to be used all State Regulation must be followed. If trapping
is to be used, contractor shall notify and get City's approval on sites and
locations. Dead gophers must be disposed of properly.
iii. The contractor shall comply with all other provisions of pesticide
requirements.
iv. The contractor shall promptly remove or disperse any soil mounds
discovered on the turf.
V. City to work with contractor to set up bait station for squirrels if
necessary.
vi. No use of chemical control measures for rodents in Low Impact
Development Structural Control Measures such as Bio- retention ponds,
bio- swales, or infiltration ponds of any kind is allowed under this contract.
c. Most landscape site rodent control shall be handled on a case by case basis and
coordinated with City representative. Contractor shall provide a cost to include
100 site visits per year on the Attachment B Fee Schedule. This will be done on a
call out basis ".
d. These parks sites below will need site visits /treatments a minimum of every other
week to control gophers, ground squirrels and moles.
Carriage Hills
Casper Park (Future Park Site)
Christmas Hill Park/Ranch
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Farrell Park (Future Park Site)
Hecker Pass Park (Future Park)
Las Animas
Phase 1 Heartland West Debell & Uvas Linear Park
San Ysidro
Sport Park
Village Green Park
15. Irrigation
a. The contractor shall have designated Irrigation Technician on site who will do only work
on irrigation.
b. Contractor and its employees shall bi- weekly (every two weeks) inspect and test all
irrigation systems for system operability; component malfunctions, and adjusts schedules
to address weather changes and irrigation requirements. Any signs of irrigation
malfunctions will be immediately addressed and system checks will become as frequent
as necessary to insure problems are fully resolved without any further damage. These
inspections may also become more frequent in certain areas that are under observation
due to chronic malfunctions or vandalism. Between November 1 and March 1 if systems
are turned off because of weather conditions, monthly inspections will be acceptable to
insure that there has been no damage to the systems.
c. After Value -The contractor shall be responsible for all labor for the irrigation repairs
after the valve including the solenoid, rebuilding of the valve, lateral lines, and sprinkler
heads, and including adjustment to sprinklers. Contractor to bill the City for all irrigation
material costs plus a fifteen (15) percent markup.
d. Before Valve: Replacement of remote control valves, rebuilding or replacement of quick
couplers, flow control valves, master valves, backflows and mainline repairs are not
included and shall be billed to the city at an hourly rate basis or on a bid basis. The city's
representative will ok work to be done on case by case basis. All irrigation materials used
will be charged to city at cost plus a fifteen (15) markup.
e. An irrigation audit shall be done during the winter months listing all extra work that
should be done to improve system efficiency, i.e. raised heads, upgrading of nozzles and
delivered to the city representative by the end of February.
f. Under no circumstances can a system go unchecked long enough to cause any problems
with startup when weather conditions warrant systems to be fully operational. Contractor
shall set and program automatic controllers for seasonal watering requirements.
g. Non - central station controllers. The contractor will be responsible for adjusting non-
central controllers. A sign in sheet shall be placed inside each irrigation controller box
that designates by date and signature each time the system is inspected or adjusted.
h. All replacement materials are to be with new original types and models materials, unless
a substitute is approved by City representative.
i. Contractor shall maintain an adequate inventory of medium to high usage stock items for
repair of the irrigation systems.
j. Contractor shall implement repairs in accordance with all effective warranties, and no .
separate payment shall be made for repairs on equipment covered by warranty.
k. Notify the owner in writing of any conditions that are discovered which may prevent the
system from delivering the correct amount of moisture.
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1. Adjust risers and sprinkler locations to compensate maturing landscape. This work will
be done at an additional cost. The Irrigation Technician shall notify city staff of needed
work.
m. Reflect actual evapotranspiration (E.T) requirements and requirements of soil and plants
when programing controllers.
n. Eliminate runoff onto streets, sidewalks, and other non - target areas by using Cycle /Soak
when programing controllers.
o. Provide sufficient time for soil to dry out between irrigations.
p. Program controllers to maximize public use of City property.
q. Repairs of any irrigation components or property damaged by Contractor or as a
result of negligence, error or omission by Contractor shall be the full
responsibility of the Contractor.
r. Remote control valves
A variety of RCVS are used though out the city. The predominant valve is the
Weathermatic 21000. Griswold 2000 is used at El Roble Park, San Ysidro Park, and Las
Animas Park. Portions of Las Animas Park also use Rain Bird PEB. Griswold S series
valves are used at Las Animas Fire Station and the Museum. If an S series valve requires
replacement, it will be changed out to a PEB. Carriage Hills Park and Sunrise Park use
Hunter ICV. A few sites will still have Rain Bird EFA, EF, and GB valves. If a valve
requires replacement, contact the city for a determination as to which valve to use.
s. Quick coupler valves
The standard quick coupler valve is the single slot Rain Bird 44 or Buckner QB44RC 10.
A few 3/" valves may be found in some older sites. 1" Acme thread valves are used on
recycled water lines at the Sports Park and Christmas Hill. Quick couplers repair is a City
of Gilroy responsibility.
t. Master Valves & Flow Sensors- Master valves used are normally open Superior 3300.
Del Rey Park and the Ranch Site use Griswold normally open 2160 valves. Rainbow
Park and Leavesly at Arroyo Circle use normally closed valves. Master Valves and Flow
Sensors are the Cities responsibility to repair.
u. Fixed Spray heads
1. The standard pop -up fixed spray head is the Rain Bird 1800 series SAM -PRS.
Twelve inch pop -up is typically used in ground cover, shrub, and bedding plant
areas. Four inch has been used in turf. If it is necessary to replace a four inch
body in a turf area, it should be upgraded to a six -inch pop -up.
2. Hunter twelve -inch INST pop up heads were used at several sites. If new internal
piston assemblies are needed for these, contact the city. The city will provide
these while supplies last. After supplies are exhausted consideration will be given
to changing these out to Rain Bird heads as needed when making repairs.
3. All heads used on recycled water lines must be equipped with purple caps.
4. New Casper Park has Toro Precision nozzles
v. Rotor Sprinklers
A variety of rotor heads are used in the city systems. Some sites are slowing
being upgraded as heads require replacement. The predominant heads are Rain
Bird 6540, and 8005. From the Hunter line we use the 1 -40, I -20, I -60, and we
may introduce the 135. There are still some impact .heads used at San Ysidro
Park, Las Animas Fire Station and Christmas Hill Park. Heads used on recycled
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water systems must have purple caps. If heads are changed, ensure that the
appropriate size nozzle is used. Do not assume that the nozzle size in place is
always correct.
w. Drip
1. Drip irrigation is used in the medians on Santa Teresa and Tenth Streets, as well
as at City Hall, the Library, and Wheeler. In general when drip is used we go with
a' /2" in -line emitter product such as Agrifim or Netafim. We try to avoid on -line
emitters and the use of I/" tubing, although these may be found at City Hall.
Purple drip line must be used on the gray water system at the Library. When
making repairs on these systems verify that the product used has the appropriate
flow rate. Amiad is the filter typically specified, and when possible it is installed
on the supply side of the remote control valve. Pressure regulators used are
Senninger, Nelson, or other approved product.
2. New sites in the City such as Casper Park, Hecker Pass Park, 3`
d &
Santa Teresa
Roundabout, Luchessa/Thomas roundabout, and Luchessa Soundwall and median
use buried inline drip.
x. Flow Sensors
Data Industrial (Badger) flow sensors are used at many sites.
Y. Pumps
1. A variety of pumps are used in the system. The pumps at Del Rey Park, Ranch
Site, and the Oakbrook Soundwall on Luchessa at Thomas Road are started by the
controller. All other start automatically on pressure drop or flow. Pump
maintenance will be handled by the city.
2. New Park site Casper Park and Farrell Park will use pumps. Pump maintenance
will be handled by the city.
z. Controllers and Programming
1. The standard controller used on city facilities is the Rain Master Evolution
approximately 60). Most of these are linked to a central station computer at the
Parks Office at the Gilroy City Corporations Yard. There are a few small sites
with stand -alone Rain Bird, Hardy, or Irritrol controllers. There are two sites with
battery operated controllers. As time and funds permit, the stand alone controllers
will be upgraded and linked to the central. Most of the on -line controllers are
linked to flow meters and master valves and will shut down the system if high or
unscheduled flows are detected. Low flow and electrical faults are also detected
by the central system. The central controller is linked to an on -site weather
station and that data is used to adjust station run times and shut down during
unfavorable weather events. The landscape contractor is expected to
communicate with city staff regarding site irrigation needs and to program stand-
alone controllers. The contractor is also responsible for promptly shutting down
stand -alone controllers as needed during rain events. The city will service
irrigation controllers.
2. City staff will program controllers which are on -line with the central system.
Irrigation programming will be coordinated around facility use.
3. The general guide for irrigation is to water deeply but infrequently. The soil
surface should be allowed to dry between irrigations. Typically three irrigations
per week is sufficient for turf. Irrigation schedules must take into account public
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use of the facility and hydraulic capacity of the systems. Irrigation programming
will be coordinated with the city.
4. The landscape contractor is expected to communicate with city staff regarding site
irrigation needs and to program stand -alone controllers. The contractor is also
responsible for promptly shutting down stand -alone controllers as needed during
rain events. The city will service irrigation controllers.
5. Upon completion of work, verify that all cabinets are properly locked before
leaving the area. Due to the potential damage to systems from leaving a cabinet
unlocked, this type of infraction will be considered a serious act of negligence by
the contractor.
6. When site irrigation is checked or serviced the Irrigation Tech shall sign and fill
out Controller Maintenance sheet provided in each controller.
F. Recycled Water:
The Sports Park, Casper Park, Hecker Pass Park, Village Green Park, the new 3th
Street/Hecker Pass landscaping, Christmas Hill Park & Ranch site is irrigated with
recycled w water. This is disinfected tertiary treated waste water which is provided by
the South County Regional Wastewater Authority. All irrigation water used at the
Ranch is recycled water. The main Christmas Hill Park site uses a mix of domestic
water stations with the exception of the full circle stations on the major and minor ball
fields which are irrigated with recycled water. At the Sports Park, the infield turf is
irrigated with domestic water. All other irrigation at the Sports Park is recycled.
All irrigation heads and pipe shall be color coded purple or otherwise labeled. Only
Acme threaded quick couplers shall be used on recycled water systems. Employees
working on sites with recycled water shall be trained on the precautions to use. The
contractor foreman or supervisor is encourage to attend the annual supervisors training
conducted by the South County Regional Wastewater Authority. Contact the city for
additional information on this.
G. Gray Water:
The library landscape is irrigated with gray water. The water is treated; however, it is
not disinfected. The water is used for drip and bubblers only. The gray water may not
be sprayed or otherwise discharged to the surface. The gray water irrigation main line is
under continuous pressure. Drip line, bubblers, and piping used for gray water shall be
colored purple. Valves used for gray water shall be tagged as non - potable. The city
will maintain the gray water treatment tanks and pumps. Employees working on the
gray water system must be advised of precautions to use.
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16. Care for Storm Water elements -Low Impact Development Structural
Control Measures (LID SCMs) There are three small Bioretention Ponds on
Babb's Creek.
Bioretention Features and Maintenance & operations work includes:
Report and fix any pedestrian paths that develop. Contractor shall notify the City to the
presence of any pedestrian paths that develop. Contractor shall work with the contractor
to rectify the problem.
Remove all trash and debris on service schedule.
Fix rodent holes and erosion with proper materials per design specs.
Manually remove all weeds.
Trim over -grown plants that are blocking the inlets or outlets, or if they are growing into
the public right -of -way.
No pesticides, herbicides, or other chemicals may be used in or around the Bioretention
features.
Remove sediment buildup at the bottom of the Bioretention feature. Sediment buildup of
over 1 cubic yard shall be removed by the City.
Replace dying or dead vegetation, as needed. Plant replacement is not included in this
contract. Contractor shall notify the City of dying or dead vegetation. City will contract
with contractor to replace plants.
Adjust irrigation schedule, if needed, for healthy plants.
Report and fix odors. If there is an order problem contractor shall notify the City.
Contractor will work with the City rectify problem.
Report and fix any pedestrian paths that develop. Contractor shall notify the City to the
presence of any pedestrian paths that develop. Contractor shall work with the contractor
to rectify the problem.
Control Rodents in Bioretention features by non - chemical means.
Bioswales (Along 3rd Street and Hecker Pass Park) Features work includes:
Water must flow downstream to inlet. Confirm there is no evidence of long -term ponding
which causes dying plants and /or bare spots at the bottom of the swale.
Fix any flow paths that develop.
Remove all trash and debris on service days.
Fix rodent holes and erosion with proper materials per design specs.
Manually remove all weeds.
Trim over -grown plants that are blocking the inlets or outlets, or if they are growing into
the public right -of -way.
No pesticides, herbicides, or other chemicals may be used in or around the swales.
Remove sediment buildup at the bottom of the swale. Sediment buildup of over 1 cubic
yard shall be removed by the City.
Fix ponding by replacing soil per design specs. This shall be done by the City or
contractor shall be contracted to make repairs.
8.3
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Replace dying or dead vegetation, as needed. Plant replacement is not included in this
contract. Contractor shall notify the City of dying or dead vegetation. City will contract
with contractor to replace plants.
Adjust irrigation schedule, if needed, for healthy plants.
Report and fix odors. If there is an order problem contractor shall notify the City.
Contractor will work with the City rectify problem.
Report and fix any pedestrian paths that develop. Contractor shall notify the City to the
presence of any pedestrian paths that develop. Contractor shall work with the contractor
to rectify the problem.
Control Rodents in Bioretention features by non - chemical means.
Garlic Festival
Contractor will coordinate with the City with pre and post festival service level changes
during the two week impact of this special event.
Locks, Deficiency, Severance and Termination
Locks and Keys
The Contractor shall be responsible for the series of keys assigned to it and shall assign these
keys to its personnel for use in maintaining the facilities. The Contractor shall properly use and
keep safe all keys or locks issued or used by the City to the Contractor.
The contractor shall report all lost or stolen keys or locks to the City representative(s) within
twenty -four (24) hours after discovery of the loss. The Contractor shall reimburse the City for the
total cost, as determined by the City, of replacing the lock, re- keying the site or duplicating
additional keys.
Upon termination or cancellation of the Contract, the Contractor shall immediately return all
keys, cards, remote controls, etc., to the City. The Contractor shall reimburse the City for the
total cost, as determined by the City, for the total cost of keys not returned.
Deficiency Notice Procedures
a. Deficiencies will be recorded and presented to the contractor via e-mail, fax or U.S.
Mail. The Contractor shall respond within 24 hours with a plan to remedy and to
prevent future occurrence, Contractor will be responsible for providing follow up
documentation. Contractor supervision is responsible for re- inspection of problem
areas before notifying the City the problem has been resolved.
b. Contractor's management team must be available for face -to -face meetings called by
the City within 48 hours of notification.
c. Failure to resolve the problem will result in a written vendor "Non - Compliance "
report seeking a written response from the contract management outlining a
permanent resolution to the problem. Patterns of complaints, which may indicate the
contractor's failure to adequately staff, train and supervise, shall cause a face to face
meeting with the highest level of the contractor's management deemed necessary by
the City in order to clarify the contractor's obligations and produce a written work
plan and time frame for remedying the deficiencies.
8.3
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d. Failure to resolve a written "Non- Compliance contract services notice " will result in
one or all of the following:
i. Payment deductions to the Contractor for services not performed per contract
where City had no or reduced service.
ii. Termination of selected contracted service area/s because of contractor's
continued failure to perform in the designated areas.
iii. Total contract termination for failure to perform after repeated "Notices of
Non - Compliance" have been issued.
iv. Contract works that the contractor failed to preform and City staff was
compelled to perform and must fill in for, will be back charged (labor and
equipment) to contractor. (Example: contractor fails to mow turf as scheduled.
City may to do work and back charge contractor.)
Right of Severance and Termination
1. Remove worker: The City shall have the right to request removal of any specific
Contractor worker from City contract properties for the following:
a. The City reserves the right to request removal of any specific Contractor
worker if the worker is deemed by City to be incompetent or negligent based
on worker's inability to execute required project tasks.
b. For failure to adhere to the City's standards
c. For worker misconduct.
2. Terminate contract: City reserves the right to terminate this contract with
Contractor upon 10 days advance written notice should Contractor fail to meet
obligations of the contract as noted under Deficiency Notice Procedures (d. iii
above). Such failures include, but are not be limited to:
a. Consistent failure to respond to requests for service or to remedy contract
deficiencies,
b. Consistent failure to provide qualified, trained workers and supervisors,
c. Contractor failure to keep City informed.
3. Back charge —City will bill Contractor for work not performed where city staff had
fill in.
One Site Safety
Maintenance and Operation of Equipment and Vehicles
The Contractor shall take necessary precautions for the safe operation of equipment and the
protection of the public from injury and damage from such equipment and vehicles. Contractor
shall repair or replace, immediately, all equipment deemed by City to be unsafe, irreparable or in
unsatisfactory condition. All vehicles shall have the contractor's name visible to the public.
Contactor shall operate equipment and vehicles so as to minimize service vehicles driving off
pathways and hardscape onto turf and planters with irrigation and plants and prevent damage.
Contractor shall use street frontages and parking areas rather than pathways and sidewalks when
possible operating vehicles in contract sites.
8.3
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String Trimmers
Contractor shall train staff and operate all string trimmers in a safe manner. Training shall
include proper techniques in avoiding flying debris and protecting staff, pedestrians and vehicles
from harm. Care shall be exercised with regard to the use of string trimmers to prevent damage
to building surfaces, walls, header board, light fixtures, signage, etc. String trimmers shall not
be used around trees. A 2 to 3 foot soil buffer zone shall be maintained around the
circumference at the base of all trees, unless otherwise directed by City. Any trees damaged by
string trimmer or mower shall be replaced at no additional cost to the City.
Reference Materials
The following documents will be used to judge best and proper landscape practices and
procedures unless otherwise specified or instructed.
All specifications for materials to be used and construction guidelines will be based on City of
Gilroy Construction Standards unless otherwise noted and /or approved.
Latest edition Sunset New Western Garden Book
Standard practices of the International Society of Arboriculture
Cal -OSHA Requirements
The contractor shall comply with all provisions of the California Occupational Health and Safety
Act., taking all precautions in the performance of the service to prevent injury to persons and
property.
Accident Reporting
The Contractor shall immediately notify the designated City representative(s) of any accident,
regardless of whether or not injury or damage is evident, involving the public and the
Contractor's staff, vehicles, and /or equipment. The Contractor shall provide all written reports
and/or documentation requested by the City.
Management and Supervision
The Contractor shall provide fully trained and qualified personnel. The staff activity will be
closely monitored by City. representative(s) at each site to detect operational irregularities and
non - compliance with the Contract.
It is the responsibility of Contractor's executive, management, and supervisory staff to oversee
the activities of its staff, throughout the range of its activities at all contract sites.
The City will not supervise the contractor's supervisors or employees.
All Supervisors must be qualified, proficient in English, trained and capable of providing
adequate supervision and direction of all staff and must demonstrate verbal and written
communication skills sufficient for the work required herein.
The Contractor's crew leader and operational staff, as well as their supervisory and management
staff, shall be knowledgeable in this Contract and its time lines. An outline of the task
8.3
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requirements, schedule, and time lines for each site shall be kept with each crew. If any task
cannot be thoroughly completed within the Contract schedule time line, the City's representative
shall be notified promptly in the prescribe manner established at contract startup.
Contractor shall be expected to take reasonable care to identify and report
conditions /situations /occurrences which may be harmful or result in decline of plant material or
landscape or interfere with public use. If this care is not exercised then repair of resultant damage
to landscape or plant material shall be the responsibility of contractor.
Contractor to incur all costs to assess, repair or replace any physical property damaged as a result
of contractor's negligence or failure .to take reasonable care to identify and report potential
problems with the landscape.
Contractor shall inspect and identify any condition(s) that renders any portion of a site unsafe, as
well as any unsafe practices occurring thereon, and shall immediately notify the City
representative(s) of any unsafe or undesirable condition(s). Contactor shall take emergency
safety actions to protect worker and or the public from a developing or observed hazardous
conditions. Safety action taken by the contractor not related to normal contraction services shall
be appropriately compensated by the City when justified in writing and include any public safety
call for service report number.
The Contractor shall make minor corrections including, but not limited to, filing minor holes in
turf and activity areas, using barricades or traffic cones to alert the public to the existence of
hazards, replacing Contractor - damaged valve box covers, and securing any damaged apparatus
so as to protect members of the public or others from injury.
If needed, the Contractor shall assist the public by summoning emergency assistance while at the
site. The Contractor shall cooperate fully with City in the investigation of any injury or death
occurring at any site, including a complete written report.
During all operations, the Contractor shall comply with local ordinances regarding noise levels.
Any scheduling of the Contractor's operations may be modified by City at no additional
compensation to Contractor in order to ensure that the public is not unduly impacted by the noise
of equipment or operations.
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EXHIBIT "C"
MILESTONE SCHEDULE
Service Frequency and Schedules
Inspect and service every site base on the sample with once per week as a base standard.
Less frequent or more frequent services may be approved as necessary to insure
specifications and standards are met.
The Contractor shall, within ten (10) working days after the effective date of the
Contract, submit a work schedule to the City's representative(s) for review and approval.
Said work schedule shall be based on a twelve -month calendar identifying and
delineating the time frames for the required work by the day of the week, morning or
afternoon.
The Contractor shall submit revised schedules / calendars when actual performance
differs substantially from planned performance. Said revisions shall be submitted to the
City's representative(s) for review and, if appropriate, approval, within five (5) working
days prior to scheduled time for the work.
At the discretion of City staff, weekly inspection meetings will be held(or more
frequently if deemed necessary by the City) between the Contractor and the city
representative(s) are to be scheduled to determine progress, review weekly site
inspections and address any changes in schedules, problem areas, etc.
Contractor shall notify the City, in writing (email), at least two (2) weeks prior to the date
and time of all pre- approved "Specialty Functions." "Specialty Functions" are defined
as:
a. Fertilization
b. Tree Trimming/Management
c. Aeration of Turf
Performance during Inclement Weather
During the periods that rainfall hinders normal operations, the Contractor shall adjust its
workforce to accomplish those activities that are not affected by weather. The prime
factors in assigning work shall be the safety of the workforce and damage to landscaping.
Leaf and down branch pickup and drain clearing are a high priority. Rainy days are not
an excuse to pull workforce from city. Contractor shall continue landscape tasks that can
be safely preform in the rain. Such as sidewalk pruning, low limb removal, or items that
city contractor inspector points out.
Sites and On -Call services are also itemized under Exhibit "D" (payment/fee schedule).
8.3
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Page 1 of 3
City of Gilroy
STAFF REPORT
Agenda Item Title:Proposed Tentative Map to divide 6955 Camino Arroyo
into two parcels (within Gilroy Crossing commercial
development), Application No. TM 22-05
Meeting Date:February 27, 2023
From:Jimmy Forbis, City Administrator
Department:Community Development
Submitted By:Sharon Goei, Community Development Director
Prepared By:Kraig Tambornini, Senior Planner
STRATEGIC PLAN GOALS Promote Economic Development Activities
RECOMMENDATION
Staff has analyzed the proposed project and recommends that the City Council take the
following actions:
1. Determine that the proposed Tentative Map is exempt from further environmental
review and qualifies for the State CEQA Guidelines Class 15 Exemption, Minor
Land Divisions because the proposed subdivision results in less than four
parcels, is in conformance with the City’s General Plan and Zoning, seeks no
exceptions or variances, and all services and access to the resulting parcels is
available, based on its independent analysis; and
2. Adopt a resolution to approve the proposed tentative map to divide the property
known as APN 841-70-045 into two separate parcels.
PROJECT DESCRIPTION
The applicant, Joseph Tichar, representing Joule Crossing Owner, LLC, is seeking
approval of a Tentative Map Application, TM 22-05, that will subdivide an approximately
11.26 acre developed commercial lot into two parcels. Proposed parcel A would be 0.90
acres and contain an existing drive through restaurant and parking, and parcel B would
be 10.36 acres containing multiple commercial buildings and parking. No new
9.1
p. 236 of 530
Proposed Tentative Map to divide 6955 Camino Arroyo into two parcels, Application No. TM 22-
05.
City of Gilroy Page 2 of 3 February 27, 20237
3
6
construction is proposed and the lots both maintain frontage and shared access from
Camino Arroyo.
BACKGROUND
Site and Surrounding Land Uses: The subject site is within the Gilroy Crossings
shopping center located on the west side of Camino Arroyo and south of Hwy 152. The
complex was approved as a commercial/industrial planned development (C3/M2/HC
PUD) under City applications TM 02-06, Z 02-06, and PUD AS 02-22. The entire
Planned Unit Development (PUD) area includes 75.5 acres with lots on both sides of
Camino Arroyo. The original tract map was approved in April 2003 for 16 lots. In 2004 a
revised parcel map was recorded for the area that includes the subject lots.
Gilroy Crossings contains approximately 258,419 square feet of commercial
development. The lots on the east side of Camino Arroyo are currently vacant and
would be developed as Phase II of the PUD. The building on proposed Parcel A is
adjacent to the Shell Gas Station lot at the corner of Camino Arroyo and Pacheco Pass
Hwy.
Environmental Determination: The proposed subdivision is exempt from further
environmental review and qualifies for the State CEQA Guidelines Class 15 Exemption,
Minor Land Divisions because the proposed subdivision results in less than four
parcels, is in conformance with the City’s General Plan and Zoning, seeks no
exceptions or variances, and all services and access to the resulting parcels are
available.
Planning Commission Recommendation: On January 19, 2023, the Planning
Commission, by unanimous vote, recommended that the City Council approve the
project.
ANALYSIS
General Plan: The site is designated for retail commercial land uses and the proposed
lot split would have no material effect on the use of the site. There are no General Plan
policies directly relevant to a commercial lot split. The project could be considered
consistent with Goal EP 3 “Maintain a supportive business climate that increases the
City’s ability to support the expansion of existing businesses and attraction of new
businesses” in that the lot split would provide separate ownership and financing options
for Parcel A.
Zoning Consistency: The Gilroy Crossings PUD does not prohibit further subdivision
of the lots, and there is no minimum lot size. The resulting lot would not create any
substandard setbacks or parking conditions.
Tentative Map Consistency: The lot split is subject to review pursuant to State
Subdivision Map Act and Gilroy City Code Chapter 21; which regulate the design of
subdivisions and improvements to ensure orderly development is proposed. There are
9.1
p. 237 of 530
Proposed Tentative Map to divide 6955 Camino Arroyo into two parcels, Application No. TM 22-
05.
City of Gilroy Page 3 of 3 February 27, 20237
3
6
specific findings that must be made to deny a tentative map, pursuant to Government
Code Section 66474.
As noted, the parcel size would not conflict with PUD zoning. The property line creating
the two separate lots will be located down an existing site access drive aisle from
Camino Arroyo. The new building would maintain access, onsite parking, and street
frontage as required by City codes. Reciprocal easements and agreements already
apply to property within the complex, which would transfer to the new lot.
Site access and improvements will remain shared and mutually maintained by all
property owners in the complex now and into the future. The minor lot split request does
not trigger findings required for denial under Government Code Section 66474, has
been conditioned appropriately, and does not warrant any new conditions related to the
uses or construction of physical improvements.
ALTERNATIVES
The Council may deny the lot split. The applicant would not be able to proceed and
could not pursue separate financing or the sale of the parcel. Staff does not recommend
this action.
FISCAL IMPACT/FUNDING SOURCE
There is no fiscal impact associated with the adoption of the Resolution. The applicant
has paid the fees associated with the application.
PUBLIC OUTREACH
Notices were provided in compliance with code requirements. The plans were routed to
all departments and agencies with jurisdiction or interest over development. At least 10
days prior to the hearing notices were mailed to property owners within 300 feet of the
site, published in the Gilroy Dispatch, and posted on-site. No comments have been
received in response to the notice.
NEXT STEPS
If approved, the applicant would process a final parcel map to subdivide the lot.
Attachments:
1. Vicinity Map
2. Parcel Map
3. Planning Commission Resolution
4. Draft City Council Resolution
9.1
p. 238 of 530
Note: Map is for reference purposes only.
City of Gilroy
17,707
City of Gilroy, GIS Services
2,951.1
1:NAD_1983_StatePlane_California_III_FIPS_0403_Feet
1,475.56 Feet2,951.10
Vicinity Map - TM 22-05
9.1
p. 239 of 530
PROPOSED PARCEL B
10.36 ACRES
PROPOSED PARCEL A
0.90 ACRES
CAMINO ARROYODATEAS SHOWNCHECKED BYSCALEDESIGNED BYDRAWN BYKHA PROJECT197422005CKCCKCJAK09/08/2022EngineerP.E. No.DateFOR REVIEW ONLY NOT FORCONSTRUCTION OR PERMITPURPOSES.9253009/08/2022JENNIFER A KIRBYGILROY CROSSING6975 CAMINO ARROYOGILROY, CA 95020CALIFORNIAGILROY®
Know what's below.
Call before you dig.
VICINITY MAP
SCALE: 1" = 500'
TM 1PROPOSEDTENTATIVE PARCEL MAPPROJECT SITE
LEGEND
BASIS OF BEARINGS
PARKING ANALYSIS
CITY OF GILROY
TENTATIVE TRACT / PARCEL MAP XXXXX
LEGAL DESCRIPTION
PROJECT TEAM
NOTES
FEMA FIRM FLOOD ZONE INFORMATION CERTIFICATIONS
NORTH
9.1
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1
RESOLUTION NO. 2023-01
A RESOLUTION OF THE PLANNING COMMISSION OF THE
CITY OF GILROY RECOMMENDING TO THE CITY
COUNCIL APPROVAL OF A TENTATIVE MAP TO
SUBDIVIDE PROPERTY INTO TWO PARCELS, LOCATED
AT 6955 CAMINO ARROYO, APN: 841-70-045 (FILE NUMBER
TM 22-05)
WHEREAS, On October 10, 2022 an application was filed by Joseph Tichar representing
Joule Crossing Owner, LLC proposing the subdivision of a parcel at 6955 Camino Arroyo within the
C3/HC/M2-PUD, Commercial/Industrial Planned Unit Overlay zone district; and
WHEREAS, the application submittal was accepted as complete on November 9, 2022; and
WHEREAS, the proposed subdivision qualifies as exempt from further environmental review
and qualifies for the State CEQA Guidelines Class 15 Exemption, Minor Land Divisions, because the
proposed subdivision results in less than four parcels, is in conformance with the City’s General Plan
and Zoning, seeks no exceptions or variances, and all services and access to the resulting parcels is
available; and
WHEREAS, the Planning Commission held a duly noticed public meeting on January 19,
2023 at which time the Planning Commission received and considered the staff report as well as all
evidence received including written and oral public testimony related to the project; and
WHEREAS, the City may deny a tentative map only if, based upon substantial evidence in
the record, it makes one or more of seven listed findings for denial prescribed by Government Code
Section 66474. Staff has reviewed the findings and concluded that project denial based on these
findings would not be supported, and alternatively, that each of the seven findings may be made to
support approval of the project; and
WHEREAS, the location and custodian of the documents or other materials which constitute
the record of proceedings upon which the project approval is based is the Community Development
Department, Planning Division.
NOW, THEREFORE, BE IT RESOLVED that the Planning Commission of the City of
Gilroy hereby finds as follows:
1.The proposed Tentative Map is consistent with the goals and policies of the City's General
Plan and the General Services Commercial land use designation given that the commercial lot
split would not require or result in any physical changes to the site use or improvements.
Further, the site is not covered by a specific plan as specified in Government Code Section
65451.
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p. 241 of 530
Resolution No. 2023-01
Page 2
2.The design or improvement of the proposed subdivision is consistent with the applicable
general plan given that the parcel split does not involve any changes to existing land uses, and
the lot size, shape and location complies with the 2040 General Plan General Services
Commercial land use designation.
3.The site is physically suitable for the type of development given that the property is already
developed with commercial uses in compliance with all codes and standards, does not require
any modified improvements or restrictions, does not have unique physical constraints, the size
and geometry of the property comply with all applicable codes and ordinances, and there are
no exceptions requested or proposed to the site development standards.
4.The site is physically suitable for the proposed density of development, given that the
resulting lots would accommodate existing buildings and parking required for the sites after
subdivision, consistent with the City Zoning Ordinance and the 2040 General Plan
commercial land use designation.
5.The design of the proposed subdivision TM 22-05 or the proposed improvements will not
cause substantial environmental damage or injure fish or wildlife or their habitat given that the
site is already developed and would not require any new or modified improvements, and is not
in or adjacent to any sensitive habitat areas. No significant environmental impacts would
occur as a result of this project.
6.The design of the subdivision or type of improvements is not likely to cause serious public
health problems given that public utilities and infrastructure improvements to serve the
proposed parcels are currently in place as evidenced by the existing development on the site.
Further, the project is consistent with the City’s Zoning Ordinance, the City's Subdivision and
Land Development Code, and the State Subdivision Map Act in that the proposed subdivision
does not alter the existing uses or result in parcel or development condition that would
conflict with City regulations.
7.The design of the proposed subdivision or the type of improvements will not conflict with
easements, acquired by the public at large, for access through or use of, property within the
proposed subdivision. In this connection, the governing body may approve a map if it finds
that alternate easements, for access or for use, will be provided, and that these will be
substantially equivalent to ones previously acquired by the public. This subsection shall apply
only to easements of record or to easements established by the judgment of a court of
competent jurisdiction and no authority is hereby granted to a legislative body to determine
that the public at large has acquired easements for access through or use of property within the
proposed subdivision.
8.The project proposal qualifies for the State CEQA Guidelines Class 15 Exemption, Minor
Land Divisions, because the proposed subdivision results in less than four parcels, is in
conformance the City’s General Plan and Zoning, seeks no exceptions or variances, and all
services and access to the resulting parcels are available.
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Resolution No. 2023-01
Page 3
NOW, THEREFORE, BE IT FURTHER RESOLVED that the Planning Commission of
the City of Gilroy hereby recommends to the Gilroy City Council approval of Tentative Map
Application No. TM 22-05, subject to the conditions attached hereto as Exhibit A.
PASSED AND ADOPTED this 19th day of January, 2023 the following roll call vote:
AYES: Bhandal, Kushner, Elle, Leongardt, Lewis, Ramirez, Montez
NOES:
ABSTAIN:
ABSENT:
ATTEST: APPROVED:
_____________________________ _____________________________________
Sharon Goei, Secretary Manny Bhandal, Chairperson
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Resolution No. 2023-01
Page 4
EXHIBIT A
TENTATIVE MAP CONDITIONS OF APPROVAL
GILROY CROSSING LOT SPLIT
TM 22-05
PLANNING DIVISION CONDITIONS
The following GENERAL conditions authorize specific terms of the project
ENTITLEMENT(S).
1.APPROVED PROJECT: Tentative Parcel Map TM 22-05 approval is granted to
subdivide 11.26 acres into two (2) commercial parcels as shown on the proposed map
prepared by Kimley Horn, designated KHA project 197422005, with the title “Sheet TM
1, Gilroy Grossing, 6975 Camino Arroyo”, with preparation date 09/08/2022.
Any future adjustment or modification to the plans, including any changes made at time
of building permit submittal, shall be considered by the Community Development
Director or designee, may require separate discretionary approval, and shall conform to
all City, State, and Federal requirements, including subsequent City Code requirements or
policies adopted by City Council.
2.COMPLIANCE WITH CONDITIONS: If Developer, owner or tenant fails to comply
with any of the conditions of this permit, the Developer, owner or tenant shall be subject
to permit revocation or enforcement actions pursuant to the City Code. All costs
associated with any such actions shall be the responsibility of Developer, owner or tenant.
3.INDEMNIFICATION: Developer agrees, as a condition of permit approval, at
Developer’s own expense, to defend, indemnify, and hold harmless the City of Gilroy
(“the City”) and its officers, contractors, consultants, attorneys, employees and agents
from any and all claim(s), action(s) or proceeding(s) brought against the City or its
officers, contractors, consultants, attorneys, employees, or agents to challenge, attack, set
aside, void or annul the approval of this resolution or any condition attached thereto or
any proceedings, acts or determinations taken, including actions taken under the
California Environmental Quality Act of 1970, as amended, done or made prior to the
approval of such resolution that were part of the approval process.
The following conditions shall be met prior to the approval of the FINAL MAP or PARCEL
MAP, or other deadline as specified in the condition.
4.TENTATIVE MAP: An approved tentative parcel map, which shall expire twenty-four
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Resolution No. 2023-01
Page 5
(24) months from the approval date, may be extended pursuant to the provisions of the
Map Act.
5.COVENANTS, CONDITIONS, AND RESTRICTIONS: Any covenants, conditions,
and restrictions (CC&Rs) applicable to the project property shall be consistent with the
terms of this permit and the City Code. If there is a conflict between the CC&Rs and the
City Code or this permit, the City Code or this permit shall prevail.
PUBLIC WORKS CONDITIONS OF APPROVAL
The following conditions shall be met prior to the approval of the FINAL MAP or PARCEL
MAP, or if another deadline is specified in a condition, at that time.
6.DRIVEWAY ACCESS EASEMENT: The applicant or owner shall dedicate reciprocal
driveway ingress and egress easements. Said easements shall be approved by both affected
property owners. The easements shall be approved by the City Engineer, recorded with the
County Recorder’s Office, and a recorded copy of the document returned to the City prior to
any City permits. The easement may also be designated on any associated parcel or
subdivision map. (PUBLIC WORKS)
7.PARCEL MAP: It shall be the applicant's responsibility to have a parcel map, prepared by
a person authorized to practice land surveying in California, delineating all parcels created
or deleted and all changes in lot lines in conformance with the Gilroy Municipal Code. The
parcel map shall be approved by the Department of Public Works and recorded with the
County Recorder’s Office prior to the issuance of any City permits. A parcel map guarantee
shall be submitted to the City, by the applicant’s title company, prior to release of the parcel
map to the title company for recordation. Prior to the City’s release of the parcel map to the
title company, the applicant may, at the discretion of the City Engineer, be required to
submit to the City an electronic copy of the map in the AutoCAD Version being used by the
City at the time of recordation. It is the applicant's responsibility to check with their title
company and the County Recorder’s Office to determine the time necessary to have the map
recorded after City approval. (PUBLIC WORKS)
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RESOLUTION NO. 2023-__
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF GILROY TO APPROVE A TENTATIVE MAP TO
SUBDIVIDE PROPERTY INTO TWO PARCELS, LOCATED
AT 6955 CAMINO ARROYO, APN: 841-70-045 (FILE
NUMBER TM 22-05)
WHEREAS, On October 10, 2022 an application was filed by Joseph Tichar
representing Joule Crossing Owner, LLC proposing the subdivision of a parcel at 6955
Camino Arroyo within the C3/HC/M2-PUD, Commercial/Industrial Planned Unit Overlay
zone district; and
WHEREAS, the application submittal was accepted as complete on November 9,
2022; and
WHEREAS, the proposed subdivision qualifies as exempt from further
environmental review and qualifies for the State CEQA Guidelines Class 15 Exemption,
Minor Land Divisions, because the proposed subdivision results in less than four
parcels, is in conformance with the City’s General Plan and Zoning, seeks no
exceptions or variances, and all services and access to the resulting parcels is
available; and
WHEREAS, the Planning Commission held a duly noticed public meeting on
January 19, 2023 at which time the Planning Commission received and considered the
staff report as well as all evidence received including written and oral public testimony
related to the project and voted unanimously to recommend approval of the project; and
WHEREAS, the City may deny a tentative map only if, based upon substantial
evidence in the record, it makes one or more of seven listed findings for denial
prescribed by Government Code Section 66474. Staff has reviewed the findings and
concluded that project denial based on these findings would not be supported, and
alternatively, that each of the seven findings may be made to support approval of the
project; and
WHEREAS, the City Council held a duly noticed public meeting on February 27,
2023 at which time the Council received and considered the staff report as well as all
evidence received including written and oral public testimony related to the project; and
WHEREAS, the location and custodian of the documents or other materials
which constitute the record of proceedings upon which the project approval is based is
the Community Development Department, Planning Division.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Gilroy
hereby finds as follows:
1. The proposed Tentative Map is consistent with the goals and policies of the City's
General Plan and the General Services Commercial land use designation given
that the commercial lot split would not require or result in any physical changes to
the site use or improvements. Further, the site is not covered by a specific plan
as specified in Government Code Section 65451.
9.1
p. 246 of 530
Resolution No. 2023-XX
Approve Tentative Map; 6955 Camino Arroyo
City Council Regular Meeting | February 27, 2023
Page 2 of 5
2. The design or improvement of the proposed subdivision is consistent with the
applicable general plan given that the parcel split does not involve any changes
to existing land uses, and the lot size, shape and location complies with the 2040
General Plan General Services Commercial land use designation.
3. The site is physically suitable for the type of development given that the property
is already developed with commercial uses in compliance with all codes and
standards, does not require any modified improvements or restrictions, does not
have unique physical constraints, the size and geometry of the property comply
with all applicable codes and ordinances, and there are no exceptions requested
or proposed to the site development standards.
4. The site is physically suitable for the proposed density of development, given that
the resulting lots would accommodate existing buildings and parking required for
the sites after subdivision, consistent with the City Zoning Ordinance and the
2040 General Plan commercial land use designation.
5. The design of the proposed subdivision TM 22-05 or the proposed improvements
will not cause substantial environmental damage or injure fish or wildlife or their
habitat given that the site is already developed and would not require any new or
modified improvements, and is not in or adjacent to any sensitive habitat areas.
No significant environmental impacts would occur as a result of this project.
6. The design of the subdivision or type of improvements is not likely to cause
serious public health problems given that public utilities and infrastructure
improvements to serve the proposed parcels are currently in place as evidenced
by the existing development on the site. Further, the project is consistent with the
City’s Zoning Ordinance, the City's Subdivision and Land Development Code,
and the State Subdivision Map Act in that the proposed subdivision does not alter
the existing uses or result in parcel or development condition that would conflict
with City regulations.
7. The design of the proposed subdivision or the type of improvements will not
conflict with easements, acquired by the public at large, for access through or
use of, property within the proposed subdivision. In this connection, the
governing body may approve a map if it finds that alternate easements, for
access or for use, will be provided, and that these will be substantially equivalent
to ones previously acquired by the public. This subsection shall apply only to
easements of record or to easements established by the judgment of a court of
competent jurisdiction and no authority is hereby granted to a legislative body to
determine that the public at large has acquired easements for access through or
use of property within the proposed subdivision.
8. The project proposal qualifies for the State CEQA Guidelines Class 15
Exemption, Minor Land Divisions, because the proposed subdivision results in
9.1
p. 247 of 530
Resolution No. 2023-XX
Approve Tentative Map; 6955 Camino Arroyo
City Council Regular Meeting | February 27, 2023
Page 3 of 5
less than four parcels, is in conformance the City’s General Plan and Zoning,
seeks no exceptions or variances, and all services and access to the resulting
parcels are available.
NOW, THEREFORE, BE IT FURTHER RESOLVED that the City Council of the
City of Gilroy hereby approves Tentative Map Application No. TM 22-05, subject to the
conditions attached hereto as Exhibit A.
PASSED AND ADOPTED this 27th day of February 2023 the following roll call
vote:
AYES:COUNCIL MEMBERS:
NOES:COUNCIL MEMBERS:
ABSTAIN:COUNCIL MEMBERS:
ABSENT:COUNCIL MEMBERS:
APPROVED:
Marie Blankley, Mayor
ATTEST:
_______________________
Thai Nam Pham, City Clerk
9.1
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Resolution No. 2023-XX
Approve Tentative Map; 6955 Camino Arroyo
City Council Regular Meeting | February 27, 2023
Page 4 of 5
EXHIBIT A
TENTATIVE MAP CONDITIONS OF APPROVAL
GILROY CROSSING LOT SPLIT
TM 22-05
PLANNING DIVISION CONDITIONS
The following GENERAL conditions authorize specific terms of the project
ENTITLEMENT(S).
1.APPROVED PROJECT: Tentative Parcel Map TM 22-05 approval is granted to
subdivide 11.26 acres into two (2) commercial parcels as shown on the proposed
map prepared by Kimley Horn, designated KHA project 197422005, with the title
“Sheet TM 1, Gilroy Grossing, 6975 Camino Arroyo”, with preparation date
09/08/2022.
Any future adjustment or modification to the plans, including any changes made
at time of building permit submittal, shall be considered by the Community
Development Director or designee, may require separate discretionary approval,
and shall conform to all City, State, and Federal requirements, including
subsequent City Code requirements or policies adopted by City Council.
2.COMPLIANCE WITH CONDITIONS: If Developer, owner or tenant fails to
comply with any of the conditions of this permit, the Developer, owner or tenant
shall be subject to permit revocation or enforcement actions pursuant to the City
Code. All costs associated with any such actions shall be the responsibility of
Developer, owner or tenant.
3.INDEMNIFICATION: Developer agrees, as a condition of permit approval, at
Developer’s own expense, to defend, indemnify, and hold harmless the City of
Gilroy (“the City”) and its officers, contractors, consultants, attorneys, employees
and agents from any and all claim(s), action(s) or proceeding(s) brought against
the City or its officers, contractors, consultants, attorneys, employees, or agents
to challenge, attack, set aside, void or annul the approval of this resolution or any
condition attached thereto or any proceedings, acts or determinations taken,
including actions taken under the California Environmental Quality Act of 1970,
as amended, done or made prior to the approval of such resolution that were part
of the approval process.
The following conditions shall be met prior to the approval of the FINAL MAP or
PARCEL MAP, or other deadline as specified in the condition.
4.TENTATIVE MAP: An approved tentative parcel map, which shall expire twenty-
9.1
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Resolution No. 2023-XX
Approve Tentative Map; 6955 Camino Arroyo
City Council Regular Meeting | February 27, 2023
Page 5 of 5
four (24) months from the approval date, may be extended pursuant to the
provisions of the Map Act.
5.COVENANTS, CONDITIONS, AND RESTRICTIONS: Any covenants, conditions,
and restrictions (CC&Rs) applicable to the project property shall be consistent
with the terms of this permit and the City Code. If there is a conflict between the
CC&Rs and the City Code or this permit, the City Code or this permit shall
prevail.
PUBLIC WORKS CONDITIONS OF APPROVAL
The following conditions shall be met prior to the approval of the FINAL MAP or
PARCEL MAP, or if another deadline is specified in a condition, at that time.
6.DRIVEWAY ACCESS EASEMENT: The applicant or owner shall dedicate
reciprocal driveway ingress and egress easements. Said easements shall be
approved by both affected property owners. The easements shall be approved by
the City Engineer, recorded with the County Recorder’s Office, and a recorded
copy of the document returned to the City prior to any City permits. The easement
may also be designated on any associated parcel or subdivision map. (PUBLIC
WORKS)
7.PARCEL MAP: It shall be the applicant's responsibility to have a parcel map,
prepared by a person authorized to practice land surveying in California,
delineating all parcels created or deleted and all changes in lot lines in
conformance with the Gilroy Municipal Code. The parcel map shall be approved by
the Department of Public Works and recorded with the County Recorder’s Office
prior to the issuance of any City permits. A parcel map guarantee shall be
submitted to the City, by the applicant’s title company, prior to release of the parcel
map to the title company for recordation. Prior to the City’s release of the parcel
map to the title company, the applicant may, at the discretion of the City Engineer,
be required to submit to the City an electronic copy of the map in the AutoCAD
Version being used by the City at the time of recordation. It is the applicant's
responsibility to check with their title company and the County Recorder’s Office to
determine the time necessary to have the map recorded after City approval.
(PUBLIC WORKS)
9.1
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City of Gilroy
STAFF REPORT
Agenda Item Title:Renaming of the Gilroy Senior Center’s Classroom
One after Theodore “Ted” Carpenetti
Meeting Date:February 27, 2023
From:Jimmy Forbis, City Administrator
Department:Recreation
Submitted By:Adam Henig, Recreation Manager
Prepared By:Adam Henig, Recreation Manager
STRATEGIC PLAN GOALS Maintain and Improve City Infrastructure
RECOMMENDATION
Staff recommends renaming the Gilroy Senior Center’s Classroom One after Theodore
“Ted” Carpenetti.
EXECUTIVE SUMMARY
The Gilroy Senior Advisory Board is requesting the City Council to rename Gilroy Senior
Center’s Classroom One after the late Theodore “Ted” Carpenetti, a longtime resident
and member of the Senior Center. The Parks and Recreation Commission unanimously
approved a recommendation to rename the room at their January 17, 2023 regular
meeting.
BACKGROUND
In August 2022, relatives of Theodore “Ted” Carpenetti visited the Gilroy Senior Center
to deliver a generous donation of $4,000 on behalf of Mr. Carpenetti, who recently died
at the age of 105 (1916-2022). Ted was an active participant of the Senior Center. He
was well-known among fellow members of the Center. He was described by his peers
as “warm, friendly, kind, and generous.” Personable and joyous, he was known to
always greet newcomers to the Senior Center and participated in many of the senior
programs, especially if it involved dancing. Ted has made previous contributions to the
Senior Center, most recently when he turned 100 years old. Ted has a deep connection
11.1
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Renaming of the Gilroy Senior Center’s Classroom One after Theodore “Ted” Carpenetti
City of Gilroy Page 2 of 4 February 27, 2023
to Gilroy. A resident since the mid-1940s, following his service in the Navy during World
War II, Ted and his wife, Elise, settled in Gilroy. Ted is a former City of Gilroy employee,
having worked as the park maintenance manager. He was known as a fair and
understanding supervisor to his employees and was dedicated to maintaining the City’s
parks.
The Senior Advisory Board is requesting that Classroom One be renamed the Ted
Carpenetti Room. The renaming of the room would involve the purchase of a plaque
and photograph to be hung inside the classroom. There will also be a sign attached to
the room’s exterior. The proposed name change was brought to the Parks and
Recreation Commission on January 17, 2022 and the recommendation was
unanimously approved (6-0).
ANALYSIS
According to the “Parks or Recreation Facilities Naming, Community and Memorial
Contribution, and Gift and Sponsorship Policy,” which was approved on May 19, 2014,
the criteria to rename a facility after a person who has, or someone on their behalf,
made a significant monetary contribution is based on one of the following characteristics
(See Section IV. B, Gifts and Sponsorship Policy):
•Demonstrating the individual’s good character
•Personal achievements
•Contributions to the community
•Or efforts towards the enrichment of the City
Based on the information cited in the Advisory Board’s letter, the proposal to rename
the Senior Center’s Classroom One to the Ted Carpenetti Room fulfills the renaming
criteria.
ALTERNATIVES
The City Council may chose not to rename Classroom One.
FISCAL IMPACT/FUNDING SOURCE
There is no fiscal impact. If approved, the donation made by Mr. Carpenetti will cover
the costs of a modest room sign and a legacy plaque that will be hung inside the
classroom.
PUBLIC OUTREACH
Not applicable.
NEXT STEPS
If approved, a sign and plaque will be ordered and placed in the Senior Center’s
Classroom One.
11.1
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Renaming of the Gilroy Senior Center’s Classroom One after Theodore “Ted” Carpenetti
City of Gilroy Page 3 of 4 February 27, 2023
11.1
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Renaming of the Gilroy Senior Center’s Classroom One after Theodore “Ted” Carpenetti
City of Gilroy Page 4 of 4 February 27, 2023
Attachments:
1. Gilroy Senior Advisory Board Letter to Rename Classroom One after Ted
Carpenetti
2. 05-19-14 Parks & Recreation Commission Facility Naming Memorial Gifts and
Sponsorship Policy
11.1
p. 254 of 530
SENIOR ADVISORY BOARD
To: City of Gilroy Parks and Recreation Commission
From: Vince Sasso, Senior Advisory Board, President
Subject: Renaming of Gilroy Senior Center Classroom One
This past August, relatives of Theodore “Ted” Carpenetti visited the Gilroy Senior Center
to deliver a generous donation of $4,000 on behalf of Mr. Carpenetti, who recently died at the
age of 105 (1916-2022).
Ted was an active participant of the Senior Center. He was well-known among fellow
members of the Center. He was described by his peers as “warm, friendly, kind, and generous.”
Personable and joyous, he was known to always greet newcomers to the Senior Center and
participated in many of the senior programs, especially if it involved dancing. Ted has made
previous contributions to the Senior Center, most recently when he turned 100 years old.
Ted has a deep connection to Gilroy. A resident since the mid-1940s, following his
service in the Navy during World War II, Ted and his wife, Elise, settled in Gilroy. Ted is a
former City of Gilroy employee, having worked as the park maintenance manager. He was
known as a fair and understanding supervisor to his employees and was dedicated to maintaining
the City’s parks. Even after retirement, Ted continued to put his skills to good use as a gardener.
Based on the “Parks or Recreation Facilities Naming, Community and Memorial
Contribution, and Gift and Sponsorship Policy,” the Senior Advisory Board is requesting that
Classroom One (formerly the Gift Shop) be renamed the Ted Carpenetti Room. Ted
exemplified the policy’s criteria: an individual of good character who has had an impact—both
personally and financially—that has enriched our community.
The renaming of the room would involve the purchase of a plaque and photograph to be
hung inside the classroom. There will also be a sign attached to the exterior.
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The sponsoring organization is the Gilroy Senior Advisory Board, whose primary
purpose of the is to raise funds and partner with other community organizations and events to
improve the welfare within the Gilroy Senior Center community.
Sincerely,
Vince Sasso
Vince Sasso, President, Gilroy Senior Advisory Board
CC: Sharon Holloway, Terrie Berry, Gilroy Senior Advisory Board
Barbara Lemal, Gilroy Senior Center Member
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Page 1 of 12
CITY OF GILROY
PARKS OR RECREATION FACILITIES NAMING,
COMMUNITY AND MEMORIAL CONTRIBUTION, AND
GIFT AND SPONSORSHIP POLICY
DEFINITIONS AND METHODS OF RECOGNITION
A) Definitions
Donations/gifts: Funds, equipment, materials or services given to the City without
expectation of a significant return or recognition.
Memorial: A physical feature intended to honor a deceased person. The primary
intent of a memorial is not to recognize social contributions, importance, or historic
significance, though the person being memorialized may also have such
significance. May take various forms such as:
Site furnishings, benches, trees, drinking fountains
Monuments
Donations of significant improvements i.e. a picnic area in memory of an
individual
Recognitions, Tributes & Commemorations: Requests to honor or commemorate
significant community contributions. Naming or dedication of a facility or distinct
feature of a facility after a person or an event is a typical form of recognition, i.e.
DeBell-Uvas Preserve.
Corporate Sponsorship: The temporary or permanent naming of a facility or
feature of a facility in exchange for significant donations from a for -profit corporation
or business.
Gifting Sponsorship: The temporary or permanent naming of a facility or feature of
a facility in exchange for significant donations from individuals, groups, families or
non-profit organizations.
Historical Recognitions: A recognition or tribute that honors a person, place or
event of historical nature. This includes:
a. Identification of places that are registered or designated historical by the State
of California;
b. Commemorating an event that changed or influenced the course of history, i.e.
a battle;
c. Identification of places of local historic significant, though n ot registered or
designated as historic by the State of California;
d. Recognition of historically significant individuals.
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B) Methods of Recognizing Donations and Memorials
Commemorative Naming: A means of accomplishing memorial recognition, typically for the
purpose of acknowledging extraordinary civic contributions and dedication.
Naming of a park or recreation facility or building
Naming of a distinct feature within a park or recreation or building (i.e. sports field,
play area)
Sponsorship Naming: Naming a facility or feature after an individual, business,
organization or corporation in recognition of major donor contributions. Typically the
sponsorship is done for a specified time period, such as 10 years, after which, the
facility will be eligible for re-naming.
Monuments: A physical structure that is erected as a memorial, recognition, or gift
acknowledgement. Monuments are generally intended to be visible and obvious to
draw the attention of visitors or passing individuals.
Plaques: Size is no larger than 1 sq. ft., is typically placed on an object, or placed on a
concrete base flush with ground or elevated no more than 4” above ground. Plaques
are intended to be inconspicuous and to blend in seamlessly with the surrounding
environment. Plaques placed above ground on concrete or on other pedestals, or that
are otherwise conspicuous are considered monuments.
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I. FUND RAISING AND SPONSORSHIP AGREEMENT POLICY
The City may enter into agreements with non-profit organizations allowing the organization to
solicit contributions towards construction and/or operations and maintenance of park or
recreation facilities. The non-profit organization may propose to the City recognition of
contributions through the naming of park or recreation facilities, or feat ures of those facilities
in honor of the organization, group or individual making the contribution. The non -profit
organization soliciting the gift may assist in negotiating the terms of the gift and making
recommendations to the Parks and Recreation Commission and the City Council on the
terms of the gift agreement, consistent with Section IV of this policy, Gift and Sponsorship
Policy. The City may also engage the assistance of City Task Forces or Commissions in fund
raising efforts in accordance with Section IV Gift and Sponsorship Policy.
Corporate or gifting sponsors will be required to enter into a sponsorship agreement with the
City establishing the terms of the gift including the amount of the gift, the facility or program
being offered the gift, the use of the gift, and the duration of any naming rights associated
with the gift. Funds given under the sponsorship agreement will be held in the manner
defined in the agreement and in trust for the sole purpose outlined in the agreement.
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II.) PARK OR RECREATION FACILITY NAMING POLICY
A) Naming, Renaming of Park or Recreation Facilities or Features
Overview
The use of names based upon distinguishing characteristics, location, or historical usage,
is a long-standing practice for the official naming of public sites and facilities. At the
national level, naming of federal sites is overseen by the U.S. Board on Geographic
Names. Among the key factors considered by the Board is use of names based on
established, historical, and local usage. Not surprisingly, many agencies have adopted
policies that are generally similar to those of the Board on Geographic Names, and which
give priority to names based on geography, location, historical usage, and distinguishing
characteristics.
At the same time, it is recognized that individuals and community organizations
periodically wish to honor individuals or groups by naming park or recreation assets after
them. The policy outlined below was developed to accommodate the desire for
commemorative naming, where warranted, while still supporting the primary community
values.
Policy
It is the policy of the City to name park or recreation facilities in a manner that will
provide an easy and recognizable reference for the City’s customers. Therefore, first
priority in naming facilities shall be given to geographical location.
The geographic location may be based on the identification of the facility with a
specific place, neighborhood, major street, or regional area of the City.
Facilities may also be named based on distinguishing, prominent, natural or geological
features. This may be used in conjunction with a geographical location, for example,
Three Rivers Peak.
Names in common or historical usage have a secondary priority.
Names that honor a person who has made a distinct and significant contribution to the
City of Gilroy will be considered in accordance with Section I.B.) Commemorative
Dedications and Names.
Naming that is done in exchange for major contributions will be co nsidered in
accordance with Section IV, Gift and Sponsorship Policy.
Conditions of property donation or deed shall be honored regarding name of facility,
although a geographic or characteristic name is preferred.
Names that are similar to existing park or recreation facilities or properties in the Gilroy
area should be avoided in order to minimize confusion.
Property type and intended use may be designated in the name.
Park or recreation facilities named after an individual should include the geographic,
natural, or geological features as part of the name, i.e. DeBell-Uvas Park Preserve
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B) Commemorative Dedications and Names
Overview
The selection of commemorative names must be done in a manner that insures that there
is broad based support for the naming and general acknowledgement that t he
contributions of the individual being honored are extraordinary, above and beyond the
norm, and unique in quantity and quality of service. Extreme care and diligence must be
exercised in the application of this policy to insure that the selection of ho norees will
withstand the test of time.
If the selection of individuals for commemorative naming or dedication is felt to be
inconsistent or biased, then it could become a divisive force in the community and make
future decisions on naming difficult and shrouded in controversy. It is the goal of this
policy, therefore, to provide consistency in the evaluation of dedication and naming
requests and to insure that this honor is bestowed to individuals in an equitable manner
and based on common criteria. The dedication or commemorative naming of park or
recreation facilities or features will be considered with the following guidelines:
Guidelines:
Names or dedications that commemorate or may be construed to commemorate living
persons will not be considered, except at the discretion of the City Council.
The person being honored must be deceased at least one year before a
commemorative dedication or naming proposal will be considered.
The individual/organization must have demonstrated outstanding achievemen ts,
contributions to the community, and enrichment of the City. The contribution of the
person being honored must have been uncompensated, extraordinary, significant, and
unique, setting this individual apart from others who contributed to the community.
This may be evident by documented history such as articles in newspapers
recognizing the individual’s contributions or previously received recognitions and
awards.
The person being honored by the dedication or naming should have had a direct and
long term association with the feature or facility.
Early or long-time settler –20 or more years
Developer of the designated feature
Restorer or maintainer of the feature
Donor of the land to the City of Gilroy
Person who played a large part in protecting the land or feature for public benefit
Person who played a large part in providing community services through the
feature or facility
Contribution to the community was through our park or recreation system or programs.
Contributions to the park or recreation system were sustained over a long period of
time.
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The named resource is pertinent to, or representative of, the individual’s contribution.
The proposal to commemorate an individual should contain evidence of broad based
local support for the proposed name and its application, such as letters, editorials, and
petitions.
The costs of plaques, monuments, and replacement of signs resulting from, or done in
conjunction with the dedication or commemorative naming will be borne by the
individual, group, or organization sponsoring the request
C) Procedure to Request Naming or Renaming or Commemorative Dedications of
Park or Recreation Facilities
1. New Park or Recreation Facilities:
Naming of new parks or recreation facilities will be done through a community outreach
process that provides opportunity for Gilroy’s residents to provide suggestions and
input. Citizens may suggest the commemorative naming of a new park through this
process.
a) Whenever possible, the naming of a new facility should occur in conjunction with the
Master Plan process for that facility
b) The City will publicize the naming opportunity broadly including posting on the
Channel 17, the City’s web page, and in local newspapers. The opportunity to name
the facility will also be discussed during the community meetings for design of the
facility.
c) Nominations for names will be submitted to Community Services Director on the
Park Naming Nomination form
d) The Director and staff will review the nominations for compliance with the Cit y’s Park
or Recreation Facility Naming Policy
e) Nominations that are found to be in compliance with the Park or Recreation Facility
Naming Policy will be forwarded to Park and Recreation Commission for review and
recommendation
f) The Parks and Recreation Commission will make a recommendation to Council
based on their review of the nominations.
g) The recommended name will be forwarded to the City Council for their review and
consideration. This may be done in conjunction with the approval of the facility
Master Plan. Approval, modification, or denial of the proposed name is within the
sole discretion of the City Council.
2. Re-naming of Existing Facilities and Features for Commemorative purposes
a) Applicant will complete the Commemorative Dedication and Names Application and
submit to the Community Services Director.
b) Application shall include documentation of contributions of the person being honored
c) Application shall include letters of support, articles, and similar documents which
demonstrate broad based community support for re-naming
d) The Director and staff will review the Commemorative Dedication and Names
Application and determine if complies with the City’s Park or Recreation Facility
Naming Policy.
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e) If the application is found to be consistent with the City’s policy, it will be forwarded
to the Parks and Recreation Commission for their review
f) Applications that are determined by the Director to incomplete, without sufficient
documentation, or otherwise inconsistent with the City’s policy will be returned to t he
applicant with a letter explaining the reasons for rejection. The applicant may
resubmit the name request with new or additional information that brings the request
into compliance with the City’s policy.
g) The Community Services Director will submit the commemorative re-naming request
to the Parks and Recreation Commission for their review.
h) The Parks and Recreation Commission will make a recommendation to Council
based on their review of the application.
i) The recommended name will be forwarded to the City Council for their review and
consideration.
j) All decisions with respect to facility naming will be at the sole discretion of the City
Council, which may choose not to grant any naming rights or recognitions for
facility or feature of a facility. Approval, modification, or denial of the proposed name
is within the sole discretion of the City Council.
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III.) COMMUNITY AND MEMORIAL CONTRIBUTIONS POLICY
A) Community and Memorial Contributions
Overview
City parks are a scarce resource provided for active recreational use and passive enjoyment
of natural beauty by the general public. Members of the public often wish to make
contributions to the park system, sometimes as a memorial or tribute to deceased friends or
relatives at, or in conjunction with a favorite park or recreational activity. The placement of
donation plaques, memorials, monuments, or tributes to private individuals in City parks must
be done in a manner that preserves a positive experience for the public in the park, and
provides a net benefit to park users. The goal of this policy is to prevent proliferation of
monuments, plaques and memorials that would eventually change the nature of the public’s
experience of these spaces, which should celebrate their natural beauty, and not evoke a
funeral or cemetery like experience. It is the goal of this policy to establish a Community and
Memorial contributions policy that benefits the general public.
Policy
The installation of freestanding plaques, monuments and similar memorials is
generally discouraged so as to preserve the character of the park or facility and
maintain a positive experience for users.
Contributions of trees, play equipment, and park furniture such as park benches will
be recognized with a certificate from the Parks and Recreation Commission that will
be provided to the donor, family or friends.
Contributions of significant, complex or complete park or facility elements, such as a
playground, plaza, classroom or ball field may be recognized with a plaque not to
exceed 8”x10” placed so as to blend into the feature and not be conspicuous, and the
wording approved by the City.
Contributions or donations of land or other real estate will be recognized in the manner
agreed upon in the deed.
Placement of free standing memorials, or monuments, in parks will, be considered
only when the individual memorialized or a contribution is of extraordinary stature, and
the memorial or monument is exceptional in design. Additionally, the contributions of
the person being honored must have had a direct relationship to the site of the
monument. The dedication of Uvas-DeBell Park preserve to Dennis DeBell who
contributed one million dollars to the acquisition of the preserve is a good example of
an extraordinary contribution. The criteria outlined for commemorative naming shall
be used in evaluating and accepting requests for free standing monuments.
The City cannot guarantee the future condition of contributions, plaques or
monuments. Replacement required by vandalism or other damage is the
responsibility of the individual/group originally sponsoring the contribution, monument
or plaque.
The City reserves the right to remove any contribution, monument or plaque as a
result of vandalism, graffiti or other damage.
Contributions, plaques or monuments may need to be relocated to accommodate park
improvements, or operational or maintenance needs at the City’s discretion. If the
relocation can be accomplished with minimal cost, the City will handle the relocation.
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More extensive projects, such as reconstructing a monument will be the responsibility
of the individual or group sponsoring the original monument.
Any relocation will be done in a manner to preserve the original intent of the
recognition to the greatest extent reasonably possible.
The City retains the right to accept or reject any proposed contribution.
Contributions where the donor request that a facility or feature be named in
recognition of the donation are considered sponsorships and must follow Section IV)
Gift and Sponsorship Policy.
Complex, formal or significant memorials must address needs identified in the Parks
and Recreation System Master Plan.
If the complex, formal, or significant memorial donation is for a component or feature
in a renovation or development already funded and planned by the City, and the
applicant requests no other changes, modifications, special features, etc. The City will
provide all technical drawings, specifications, etc. and will provide long-term
maintenance of the item in accordance with current maintenance standards.
B) Procedures for Community and Memorial Contributions in City Park or Recreation
Facilities
1) Simple Landscape Element, Park Fixture or Facility Fixture:
a) Applicant will complete the Community Contribution Application and submit to
the Community Services Director.
b) A list of available contributions is provided in the City’s Community Contribution
Catalog.
c) The Community Contribution Application will indicate the applicant’s
preferences for the item to be donated, the desired location of the item, and
whether it is a Memorial or Community contribution.
d) The Community Services Director will review the request and determine if the
item and location are suitable. Factors that will be considered include impact
on maintenance and operations, compliance with facility Master Plan, impact on
park or facility use or circulation, potential for damage or vandalism, need for
item, future plans for the park or facility, overall appropriateness.
e) The Director may suggest alternate contributions or locations if it is determined
that the applicant’s request is not acceptable.
f) Upon approval, applicant will provide the City with a check, cashier’s check, or
money order for the total cost of the contribution as specified in the Community
Contribution Catalog.
g) City will purchase and install the contribution and will provide the applicant with
two weeks notice prior to the installation so that they may arrange to be present
during the installation. Installations will occurring during normal weekday work
hours
h) The City does not warranty the survival of any plant material.
2) Donation of Complex, Formal or Significant Contributions (Playground, Ball
Field, Fountain, Plaza etc.)
a) Applicant will complete the Community and Memorial Contributions Application,
as well as the Complex Contribution supplemental, which includes a project,
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funding, and maintenance proposal, and submit them to the Community
Services Director.
b) A list of available complex contributions is also provided in the City’s
Community Contribution Catalog.
c) The Community and Memorial Contributions Application will indicate the
applicant’s preferences for the item to be donated, the desired location of the
item, and whether it is a Memorial or Community contribution.
d) The Community Services Director will review the applicant’s request and
supplemental and determine if the contribution and location is suitable. Factors
that will be considered include impact on maintenance and operations,
compliance with facility master plan, impact on park or facility u se or circulation,
potential for damage or vandalism, need for item, future plans for the park or
facility, overall appropriateness.
e) The Director may suggest alternate contributions, locations or proposal options
if it is determined that the applicant’s request is not acceptable
f) Upon the Director’s review of the request and supplemental the Director will
mail the applicant a letter indicating whether the proposal has found to be in
accordance with this policy, and if not, any changes that might bring the
proposal into compliance with the policy.
g) Once a proposal is determined by the Director to be in compliance with this
policy, the applicant will then be required to submit to the Director detailed
project plan including technical documents which at a minimum will include the
items listed below. Additional documents may be required depending on the
proposal:
i) Schematic Design;
ii) Actual dimensions;
iii) Identification of colors and/or other special features;
iv) Detailed site plan showing existing and proposed site
improvements;
v) Project timeline and budget;
vi) Funding source(s);
vii) Construction and maintenance agreement.
h) The Director along with other City staff will review the drawings and documents
to ensure that the project is appropriate for the selected facility, meets public
facility design standards, has a reasonable budget and any outside agency
approvals or permits that may be required
i) Once approved by the Director, a final proposal will p resented to the Parks &
Recreation Commission by the applicant.
j) Once approved by the Parks & Recreation Commission, it will be forwarded to
the City Council for review and acceptance. Approval, modification, or denial of
the proposed improvement is within the sole discretion of the City Council.
k) If the project is not a component of a planned park or facility development or
renovation project, applicant will be required to provide funding for all costs
including construction, design, permits and fees, plans and specifications, and
all other costs associated with the design and construction of the project.
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IV.) GIFT AND SPONSORSHIP POLICY
A) Gift and Sponsorship
Overview
It is the intent of this policy to provide the o pportunity for businesses, corporations,
organizations or individuals to make contributions to park or recreation facilities and receive
appropriate recognition for that contribution. Often this recognition is in the form of naming a
facility or feature in a facility in recognition of the contribution. However, there is also a local
demand for commemorative naming, which is the naming of facilities in honor of people or
organizations that have made outstanding contributions to the community. The relative
benefits and need to provided recognition of significant monetary contributions by naming
facilities must be balanced with the need to provide opportunities for commemorative
naming.
This policy sets forward guidelines for the allocation of naming rights to City park or
recreation facilities or features and also for accepting and recognizing other good will
contributions to these facilities.
Policy
The City encourages the donations of funds, and/or involvement by civic organizations
or groups to provide for the on-going maintenance, operations, and development of
park or recreation facilities.
The City will designate properties for which the naming rights may be offered including
the suggested donation and the duration of the naming rights.
Determinations on whether the naming rights will made available for newly planned
facilities will be made during the planning process for that facility.
Facilities that have been given a commemorative name will not be available for
naming rights.
Naming rights to entire facilities for living individuals is discouraged.
Naming rights carry no power of direction, or implied power of direction, to the City on
matters of appointment of persons, City policy, or any other government process
Where park feature or building component is named, the name used should normally
be the family name, or in the case of a corporate entity, the shortest name possible.
Where the naming rights purchased are for a corporate entity or business, the naming
rights will be limited to not longer than the life of the corporate entity.
In the event of demolition or destruction of a structure, any naming rights will
terminate.
The City reserves the right to reject any sponsorship request.
City Council reserves the right, as part of fund development, to make appropriate
business arrangements in exchange for sponsorship of City facilities.
The applicant must enter into a sponsorship agreement with the City.
City Council reserves the right to terminate sponsorship agreements in accordance
with the terms of the agreement which may include, but not be limited to, evidence of
corruption, fraud, poor moral character, criminal activity, or other actions which would
reflect poorly on the City.
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B) Procedures for Gift and Sponsorship Policy
1) Applicant will complete the Gift and Sponsorship Application, and submit it to the
Community Services Director.
2) Applicant must select from the list of available facilities for which sponsorship is available.
3) The Gift and Sponsorship Application will indicate the applicant’s preference for the item
to be named, the proposed name, and background information on the individual,
corporation, or organization after which the facility is to be named.
4) Background information shall include the organization’s purpose, mission , and community
involvement supporting the sponsorship request. Background information for naming
after an individual shall include information demonstrating the individual’s good character,
personal achievements, contributions to the community, or effort s towards the enrichment
of the City.
5) The Community Services Director will review the applicant’s request and determine if the
application complies with the City’s adopted policies.
6) The Director may suggest alternate facility or name construction.
7) Once approved by the Director, the Gift and Sponsorship Application will be presented to
the Parks & Recreation Commission for their review and consideration.
8) If the Commission recommends approval of the application, the applicant will complete a
sponsorship agreement with the City.
9) The Gift and Sponsorship application and agreement will be forwarded to the City Council
for their review and consideration. Approval, modification, or denial of the proposed
name is within the sole discretion of the City Council.
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City of Gilroy
STAFF REPORT
Agenda Item Title:Adopt a Resolution Declaring Additional Gilroy Gardens
Property as Surplus Pursuant to Government Code Section
54221; find that the Council’s action in doing so is exempt
from CEQA pursuant to CEQA Guidelines Section
15061(b)(3)
Meeting Date:February 27, 2023
From:Jimmy Forbis, City Administrator
Department:Administration
Submitted By:Bryce Atkins, Assistant to the City Administrator
Prepared By:Bryce Atkins, Assistant to the City Administrator
STRATEGIC PLAN GOALS Promote Economic Development Activities
RECOMMENDATION
Council adopt the resolution.
BACKGROUND
At the August 2, 2021 regular meeting, the City Council adopted Resolution No. 2021-
38 which declared 342 acres of property near the Gilroy Gardens Family Theme Park
(called the Gilroy Gardens Hillside Property) as surplus. The City then proceeded to
issue the Notice of Availability to developers registered with the California Department
of Housing and Community Development (HCD), pursuant to the Surplus Lands Act
(SLA). The City received interest and proceeded through the negotiation process with
the interested party, but ultimately no deal was closed. The City received its clearance
from the SLA from HCD on March 14, 2022. The City can dispose of this property at its
discretion, and has had discussions with parties interested in this property.
ANALYSIS
As the City has been working on the economic development initiative of the 536 acre
site for recreational tourism, there have been some parties interested in the property,
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Adopt a Resolution Declaring the Gilroy Gardens Property as Surplus Pursuant to Government
Code Section 54221
City of Gilroy Page 2 of 3 February 27, 20235
9
4
but wish to negotiate for property in the 536 acre area that was not included in the
original surplus designation. To proceed with that discussion, the City must first declare
the remainder of the property as surplus, and then proceed with the SLA process. If no
eligible party expresses interest during the SLA process, or if the City is unable to reach
agreement on price and terms with interested parties, then after receiving clearance
from HCD the City may entertain discussions on any additional land area proposed for
negotiations.
Staff therefore proposes for Council to adopt the attached resolution which would
declare the remaining portions of the full 536-acre property to be surplus. The remaining
parcels are zoned Highway Commercial with a land use designation of Visitor Serving,
with the exception of Parcel No. 810-18-013 which has both its land use designation
and zoning listed as Open Space. The property is too remote, being adjacent to the
western City limit, and the cost of developing the property to meet a governmental
purpose for the City’s own operations is not currently feasible, nor is there demand in
the area for any standard municipal service delivery that requires the property to be
utilized to address it.
Declaring the full 536 acres surplus allows the City to maximize its flexibility regarding
the property, while at the same time being efficient by streamlining negotiations as they
may progress without having to pause for additional SLA processing.
ALTERNATIVES
Council may reject or modify the declaration of surplus of the remaining portion of the
Gilroy Gardens property. This is not recommended. By declaring the remaining portion
to be surplus, the SLA process would not need to be conducted again for any of the
property included, as the law stands today. This streamlines future options as any
negotiations proceed.
FISCAL IMPACT/FUNDING SOURCE
The declaration of surplus provides limited fiscal impacts. There will be some minor
postage and staff time for issuing the Notices of Availability and proceeding with the
SLA process. These costs will be absorbed within existing appropriations. Any future
actions regarding potential lease or sale of any land will have their fiscal impacts
analyzed as part of that City Council agenda item.
CEQA ANALYSIS
The City Council’s proposed action in adopting this resolution is exempt from review
under the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines
Section 15061(b)(3) because it can be seen with certainty that declaring the Property
surplus and directing staff to issue a written Notice of Availability will not have a
foreseeable significant effect on the physical environment in that the City has not
committed the Property to any particular use at this time. Predicting the impacts of any
future use of the Property following its disposition by the City would be wholly
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Adopt a Resolution Declaring the Gilroy Gardens Property as Surplus Pursuant to Government
Code Section 54221
City of Gilroy Page 3 of 3 February 27, 20235
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4
speculative, and none of the circumstances in CEQA Guidelines Section 15300.2
applies.
PUBLIC OUTREACH
This agenda item was included on the publicly posted agenda for this regular City
Council meeting.
NEXT STEPS
With Council approval of the resolution declaring the subject property as surplus, staff
will initiate the required Notice of Availability to commence the SLA process.
Attachments:
1. Draft Resolution
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RESOLUTION NO. 2023-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GILROY DECLARING PURSUANT TO GOVERNMENT
CODE SECTION 54221 THAT REAL PROPERTY OWNED
BY THE CITY AT THE INTERSECTION OF CALIFORNIA
HIGHWAY 152 AND BURCHELL ROAD IS “SURPLUS
LAND” WITHIN THE MEANING OF THE SURPLUS LAND
ACT, FINDING THAT SUCH DECLARATION IS EXEMPT
FROM ENVIRONMENTAL REVIEW UNDER THE
CALIFORNIA ENVIRONMENTAL QUALITY ACT, AND
TAKING RELATED ACTIONS
WHEREAS, the City of Gilroy is the owner in fee simple of that certain real property
comprising of approximately 194 acres, more or less, of land located near California
Highway 152 and Burchell Road, Assessor’s Parcel Nos. 810-17-024, -026, -029, -030, -
031, 810-19-007, -010, -011, a portion of 810-19-014, and a portion of 810-18-013; as
depicted in Exhibit A, attached hereto and made a part hereof by this reference (the
“Property”); and
WHEREAS, the property is currently zoned Highway Commercial with a land use
designation of Visitor Serving, with the exception of Parcel 810-18-013 which has both a
land use designation and zoning of Open Space. The property is currently used for a
family theme park with adjacent undeveloped hillside terrain which is generally unusable
in its current condition for any of the City’s current governmental operations; and
WHEREAS, under the Surplus Land Act, Government Code Section 54220, et.
seq. (the “Act”), surplus land is land owned in fee simple by the City for which the City
Council takes formal action in a regular public meeting declaring the land is surplus and
not necessary for the City’s use; and
WHEREAS, prior to disposing of land that is not necessary for the City’s use, the
City Council is required to declare that the land is either surplus land or exempt surplus
land; and
WHEREAS, the Property is not currently being used by the City, and City staff has
determined that it is not suitable for the City’s use; and
WHEREAS, the Property is not exempt surplus land in the that none of the
circumstances stated in Government Code Section 54221(f) applies; and
WHEREAS, the City Council desires to declare the Property surplus land and not
necessary for the City’s use, due to the nature of the terrain as mentioned above, and the
high cost for placing city facilities or infrastructure at the location, at the extreme end of
the City’s current limits; and
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Resolution No. 2023-XX
Surplus Land Act – Gilroy Gardens Remaining Property
City Council Regular Meeting | February 27, 2023
Page 2 of 5
2
8
4
WHEREAS, the Act requires that before the City Council disposes of the Property
or engages in negotiations to dispose of it, the City shall send a written Notice of
Availability of the Property to certain designated parties; and
WHEREAS, the accompanying staff report provides supporting information upon
which the declaration and findings set forth herein are based; and
WHEREAS, the City Council’s action in adopting this resolution is exempt from
review under the California Environmental Quality Act (“CEQA”) pursuant to CEQA
Guidelines Section 15061(b)(3) because it can be seen with certainty that declaring the
Property surplus and directing staff to issue a written Notice of Availability will not have a
foreseeable significant effect on the physical environment in that the City has not
committed the Property to any particular use at this time, predicting the impacts of any
future use of the Property following its disposition by the City would be wholly speculative,
and none of the circumstances in CEQA Guidelines Section 15300.2 applies.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Gilroy
as follows:
1. That the City Council finds that the foregoing recitals are true and correct.
2. That the City Council hereby declares that the Property is surplus and not
necessary for the City’s use.
3. That the City Clerk is hereby directed to send a Notice of Availability to the
entities designated in Government Code Section 54222. The Notice of
Availability shall be sent in a manner set forth in Section 201 of HCD’s
Surplus Land Act Guidelines.
4. That the officers and staff of the City are authorized hereby to do all things
necessary or proper to effectuate the purposes of this Resolution, and that
any such actions previously taken are hereby ratified and confirmed.
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Resolution No. 2023-XX
Surplus Land Act – Gilroy Gardens Remaining Property
City Council Regular Meeting | February 27, 2023
Page 3 of 5
2
8
4
PASSED AND ADOPTED this 27th day of February, 2023, 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
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Resolution No. 2023-XX
Surplus Land Act – Gilroy Gardens Remaining Property
City Council Regular Meeting | February 27, 2023
Page 4 of 5
EXHIBIT A
DEPICTION OF THE PROPERTY
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Resolution No. 2023-XX
Surplus Land Act – Gilroy Gardens Remaining Property
City Council Regular Meeting | February 27, 2023
Page 5 of 5
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Page 1 of 3
City of Gilroy
STAFF REPORT
Agenda Item Title:Accept the Annual Comprehensive Financial Report for
Fiscal Year-Ended June 30, 2022
Meeting Date:February 27, 2023
From:Jimmy Forbis, City Administrator
Department:Finance
Submitted By:Harjot Sangha, Finance Director
Prepared By:Harjot Sangha, Finance Director
STRATEGIC PLAN GOALS Develop a Financially Resilient Organization
RECOMMENDATION
Accept and file the report.
EXECUTIVE SUMMARY
Accept and file the audited Annual Comprehensive Financial Report (ACFR) for the fiscal
year ended June 30, 2022 (FY22).
ANALYSIS
Following the close of each fiscal year on June 30th, the City’s external auditors conduct
an audit of the City’s financial records and assist in the compilation of the ACFR.
The objective of external financial reporting is to ensure accountability. The goal of a
financial statement audit is to provide users with reasonable assurance from an
independent auditor that the information presented in the statements is reliable. The
audit for the fiscal year ended June 30, 2022 was recently completed by The Pun
Group, LLP (Auditor), Certified Public Accountants.
In conjunction with the annual audit, the City prepares the ACFR to comply with the
requirements to receive the Certificate of Achievement for Excellence in Financial
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Accept the Annual Comprehensive Financial Report for Fiscal Year-Ended June 30, 2022
City of Gilroy Page 2 of 3 February 27, 20235
8
5
Reporting administered by the Government Finance Officers Association (GFOA). The
Certificate of Achievement is a prestigious national award recognizing conformance with
the highest standard for preparation of state and local government financial reports. The
City’s ACFR has received this award for the previous eight fiscal years, most recently
for FY21, and believe the current report (FY22) continues to conform to GFOA’s highest
standard.
As a result of their annual independent audit of the City’s financial records and
statements, the Auditor has rendered an unmodified (“clean”) opinion, the optimal
opinion issued by independent auditors, on the City’s financial statements for the fiscal
year ended June 30, 2022.
A detailed analysis of the City’s financial position as of June 30, 2022, is included in the
Management Discussion and Analysis (MD&A) in the ACFR attached to this staff report
(Attachment 1). In accordance with Government Auditing Standards, the auditors also
identify any deficiencies in internal control over financial reporting and provide
recommendations to City management on correcting these deficiencies. No such
deficiencies in internal controls were identified during the FY22 audit.
Summary of highlights are as follows:
•Citywide: The City’s overall net position increased by $26.1 million from prior
fiscal year (FY21) primarily a result of higher than expected tax revenues and
capital contributions in the form of developer impact fees to various development
funds.
General Fund:
o Revenues: The general fund actual revenues, excluding transfers, of
$73.9 million were $17.4 million more than the prior year primarily in the
areas of tax revenues, and intergovernmental grants to include the one-
time American Rescue Plan Act (ARPA) monies.
o Expenditures: The general fund actual expenditures of $55.7 million were
$4.7 million more than the prior year. From a budgetary perspective,
during the fiscal year, the actual expenditures were $2.1 million less than
the amended budget, a result of operational savings and underspending in
capital outlay.
o Fund Balance: The fund balance (ACFR purposes) in the general fund
increased by $18.3 million to $37.9 million from the prior year.
FISCAL IMPACT/FUNDING SOURCE
There are no direct fiscal impacts to receiving and filing the ACFR. The audit provides
Council and other stakeholders with the assurance that the City is meeting its obligation
for producing financial reports that are presented fairly and accurately. Annual financial
audit is part of the Finance Department’s annual workplan, thus the resources and costs
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Accept the Annual Comprehensive Financial Report for Fiscal Year-Ended June 30, 2022
City of Gilroy Page 3 of 3 February 27, 20235
8
5
associated with the audit and preparation of the report are included in the adopted
budget.
Attachments:
1. Annual Comprehensive Financial Report as of June 30, 2022.
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City of Gilroy
California
Year Ended June 30, 2022
Annual Comprehensive
Financial Report
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City of Gilroy
Gilroy, California
Annual Comprehensive Financial Report
and Independent Auditors’ Reports
For the Year Ended June 30, 2022
Prepared by Finance Department
Harjot Sangha, Director of Finance Department
Rosemary Guerrero, Finance Manager
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INTRODUCTORY
SECTION
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City of Gilroy
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
Table of Contents
Page
INTRODUCTORY SECTION (Unaudited)
Letter of Transmittal ...................................................................................................................................................... i
Elected Officials & City Staff ...................................................................................................................................... vi
Organizational Chart ................................................................................................................................................... vii
Map ............................................................................................................................................................................ viii
GFOA Certificate of Achievement for Excellence in Financial Reporting ................................................................. ix
FINANCIAL SECTION
Independent Auditors’ Report on Financial Statements ......................................................................................... 1
Management’s Discussion and Analysis (Required Supplementary Information) (Unaudited) ......................... 5
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position .............................................................................................................................. 18
Statement of Activities ................................................................................................................................... 20
Fund Financial Statements:
Governmental Fund Financial Statements:
Balance Sheet .......................................................................................................................................... 27
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position ......................................................................... 28
Statement of Revenues, Expenditures, and
Changes in Fund Balances ................................................................................................................ 29
Reconciliation of the Governmental Funds Statement of Revenues,
Expenditures, and Changes in Fund Balances to the Government-Wide
Statement of Activities ...................................................................................................................... 30
Proprietary Fund Financial Statements:
Statement of Net Position ........................................................................................................................ 32
Statement of Revenues, Expenses, and Changes in Net Position ............................................................ 35
Statement of Cash Flows ......................................................................................................................... 36
Fiduciary Fund Financial Statements:
Statement of Fiduciary Net Position ........................................................................................................ 41
Statement of Changes in Fiduciary Net Position ..................................................................................... 42
Notes to the Basic Financial Statements ........................................................................................................... 47
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City of Gilroy
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
Table of Contents (Continued)
Page
FINANCIAL SECTION (Continued)
Required Supplementary Information (Unaudited)
Schedule of Changes in the Net Pension Liability and Related Ratios– Last Ten Fiscal Years
CalPERS Miscellaneous Plan ........................................................................................................................ 94
CalPERS Safety Plan ..................................................................................................................................... 96
Schedule of Plan Contributions - Pension – Last Ten Fiscal Years
CalPERS Miscellaneous Plan ........................................................................................................................ 98
CalPERS Safety Plan ................................................................................................................................... 100
Schedule of Changes in the Net OPEB Liability and Related Ratios – Last Ten Fiscal Years ...................... 102
Budgetary Comparison Schedules
General Fund ................................................................................................................................................ 104
Notes to the Budgetary Comparison Schedules ................................................................................................ 107
Supplementary Information:
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual:
Public Facilities Impact Capital Projects Fund ............................................................................................ 111
Nonmajor Governmental Funds:
Description of Nonmajor Governmental Funds ........................................................................................... 112
Combining Balance Sheet ............................................................................................................................ 114
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances .................................... 122
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual:
Gas Tax Special Revenue Fund ............................................................................................................. 130
Pavement Management Special Revenue Fund ..................................................................................... 131
Public Safety Grants Special Revenue Fund ......................................................................................... 132
Prop 172 Sales Tax Special Revenue Fund ........................................................................................... 133
Community Development Block Grant Special Revenue Fund ............................................................ 134
Rehabilitation Loans Special Revenue Fund ......................................................................................... 135
Housing Trust Fund Special Revenue Fund .......................................................................................... 136
Community Facilities District Special Revenue Fund ........................................................................... 137
Measure B Special Revenue Fund ......................................................................................................... 138
Vehicle License Fee Special Revenue Fund .......................................................................................... 139
Los Arroyos Fund Special Revenue Fund ............................................................................................. 140
CalHome Funds Special Revenue Fund .............................................................................................. 141
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City of Gilroy
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
Table of Contents (Continued)
Page
Supplementary Information (Continued):
Nonmajor Governmental Funds (Continued):
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual (Continued):
Capital Projects Fund ............................................................................................................................ 142
BANS 2009 Financing Capital Projects Fund ....................................................................................... 143
Traffic Impact Capital Projects Fund .................................................................................................... 144
Storm Drains Capital Projects Fund ...................................................................................................... 145
Street Trees Development Capital Projects Fund .................................................................................. 146
Sewer Development Capital Projects Fund ........................................................................................... 147
Water Development Capital Projects Fund ........................................................................................... 148
Gilroy Community Library Capital Projects Fund ................................................................................ 149
Utility Undergrounding Capital Projects Fund ...................................................................................... 150
Bank Interest Capital Projects Fund ...................................................................................................... 151
2013 Refunding Bond Debt Service Fund ............................................................................................. 152
Gilroy Community Library Debt Service Fund ..................................................................................... 153
CA Energy Commission Loan Debt Service Fund ................................................................................ 154
Lease Revenue Bonds Series 2020A Fund ............................................................................................ 155
Refunding Lease 2010 Debt Service Fund ............................................................................................ 156
Henry Miller Fund ................................................................................................................................. 157
Museum Trust Fund .............................................................................................................................. 158
Internal Service Funds:
Combining Statement of Net Position.......................................................................................................... 160
Combining Statement of Revenues, Expenses and Changes in Net Position .............................................. 162
Combining Statement of Cash Flows ........................................................................................................... 164
Fiduciary Funds:
Combining Statement of Fiduciary Net Position ......................................................................................... 169
Combining Statement of Changes in Fiduciary Net Position ...................................................................... 170
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City of Gilroy
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
Table of Contents (Continued)
Page
STATISTICAL SECTION (Unaudited)
Description of Statistical Section Contents ............................................................................................................... 173
Financial Trends:
Net Position By Component - Last Ten Fiscal Years ............................................................................................ 174
Changes in Net Position - Last Ten Fiscal Years .................................................................................................. 176
Fund Balances of Governmental Funds - Last Ten Fiscal Years ........................................................................... 180
Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years ........................................................ 182
Revenue Capacity:
Sales Tax by Category - Last Eleven Fiscal Years ................................................................................................ 184
Sales Tax Rates - Last Ten Fiscal Years ................................................................................................................ 186
Principal Sales Tax Producers – Last Fiscal Year and Nine Years Ago ................................................................ 187
Citywide Assessed Value and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years .................. 188
Assessed Value of Property by Use Code - Last Five Fiscal Years ...................................................................... 189
Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years .................................................................... 190
Principal Property Taxpayers – Last Fiscal Year and Nine Fiscal Years Ago ...................................................... 192
Property Tax Levies, and Tax Collections, and Delinquency - Last Ten Fiscal Years ......................................... 193
Debt Capacity:
Ratios of Outstanding Debt by Type - Last Ten Fiscal Years ............................................................................... 194
Ratio of General Bonded Debt Outstanding - Last Ten Fiscal Years .................................................................... 196
Schedule of Direct and Overlapping Bonded Debt ................................................................................................ 197
Legal Debt Margin Information - Last Ten Fiscal Years ....................................................................................... 198
Wastewater System – Historical Debt Service Coverage Last Seven Fiscal Years ............................................... 200
Demographic and Economic Information:
Demographic and Economic Statistics – Last Ten Fiscal Years ........................................................................... 203
Principal Employers – Last Fiscal Year and Eight Years Ago .............................................................................. 204
Operating Information:
Full-Time Equivalent City Employees By Function/Program – Last Ten Fiscal Years ........................................ 205
Operating Indicators by Function / Program – Last Ten Fiscal Years ................................................................... 206
Capital Assets By Function – Last Ten Fiscal Years ............................................................................................. 208
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i
CITY
ADMINISTRATOR’S
OFFICE
7351 Rosanna Street
Gilroy, CA 95020
Telephone (408) 846-0202
Facsimile (408) 846-0500
http://www.ci.gilroy.ca.us
February 16, 2023
To the Honorable Mayor, Members of the City Council, and Citizens of Gilroy:
The City of Gilroy’s (City) Charter requires that the City publish a complete set of audited financial
statements for each fiscal year. This report is published to fulfill that requirement for the fiscal
year ended June 30, 2022. This Annual Comprehensive Financial Report (ACFR) is submitted for
your information and review. The information contained herein has been provided to allow the
reader to gain an understanding of Gilroy’s financial activities. Management assumes full
responsibility for the completeness and reliability of the information contained in this report. The
Management Discussion and Analysis (MD&A) is included to assist the reader in its review of the
City’s financial statements. It provides a roadmap for the financial statements and related notes.
To provide a reasonable basis for making these representations, management of the City has
established a comprehensive framework of internal controls that is designed to both protect the
government’s assets from loss, theft or misuse and to compile sufficient reliable information for
the preparation of the City’s financial statements in conformity with U.S. Generally Accepted
Accounting Principles (GAAP). Because the cost of internal controls should not outweigh their
benefits, the City’s comprehensive framework of internal controls has been designed to provide
reasonable, rather than absolute assurance, that the financial statements will be free from material
misstatements. Management is committed to maintaining the City’s internal controls to adequately
safeguard assets; and to provide reasonable assurances of proper recording of financial
transactions.
The Pun Group LLP, Certified Public Accountants, have issued an unmodified (“clean”) opinion
on Gilroy’s financial statements for the year ended June 30, 2022. The independent auditor’s report
is located at the beginning of the financial section of this report. The MD&A immediately follows
the independent auditor’s report and provides a narrative introduction, overview, and analysis of
the basic financial statements.
Profile of the government
The City is the southernmost city in Santa Clara County, and is located approximately 25 miles
south of San Jose and approximately 75 miles south of San Francisco. Gilroy sits at the crossing
of U.S. Highway 101 and State Highway 152. The City was first incorporated in 1870 and became
a charter city on January 8, 1960. Per the California Department of Finance’s annual
demographic’s report for 2022, as of January 1, 2022, the City had a population estimate of 59,269.
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ii
Situated between the Diablo and Santa Cruz mountains in the Santa Clara Valley, the City
experiences mild temperatures, while missing most of the coastal fog. The agricultural growing
season ranges from 300 to 350 days a year. Over the past few decades, the City has been
transitioning from an agricultural economy into a light-industrial and services-based economy.
The City operates under the Council Administrator form of government. The seven City Council
members, including the Mayor, are elected-at-large to four-year terms in alternate slates of three
elected every two years, and the Mayor being elected every four years. The City Council appoints
the City Administrator who heads the executive branch of the government, implements City
Council directives and policies, and manages the administrative and operational functions through
the department directors. The City Administrator appoints the department directors with the
exception of the City Clerk and the City Attorney, which are appointed by the City Council.
The budget of the City is a detailed operating and capital improvement plan that identifies
estimated costs and activities as related to estimated revenues. The City Administrator submits to
the City Council a proposed biennial budget for all funds and the Council then proceeds to make
any changes to the proposed budget it deems necessary. Before adopting the proposed budget, the
Council holds a public hearing. After the conclusion of the public hearing the Council may make
further revisions to the proposed budget. Thereafter the Council adopts the budget with revisions,
if any. Once adopted, the City Council may make further changes to the adopted budget via budget
amendments that are adopted by a resolution. In addition to the primary government, the City also
reports on a Component Unit which is the South County Regional Wastewater Authority, a joint
powers agreement between the City of Gilroy and the City of Morgan Hill, for the sewer treatment
plant.
The City provides municipal services including public safety (police and fire), community and
economic development, recreation activities, parks and street maintenance, water and sewer
utilities and general City administration. Some City operations are supplemented with service
contracts, such as legal services and infrastructure maintenance services. Natural gas and
electricity are provided by Pacific Gas and Electric Company. Water service is provided by the
City. Wastewater is collected and treated by the South County Regional Wastewater Authority.
Recycling and solid waste disposal services are provided in the city by Recology South Valley.
The City is committed to citizen participation to evaluate and enhance its services. This is achieved
via direct community engagement, and via the City Council’s advisory boards and commissions.
Economic Setting and Outlook
Gilroy’s economy has been dominated by agriculture and its related industries (food processing,
etc.) since the 1800s. However, the growing influence of Silicon Valley and regional population
growth have resulted in significant changes in the local economy during the past twenty years. The
economic boom in Silicon Valley which began in the early 1990s had profound impacts on the
local economy, resulting in significant increases in home prices and land values as well as
significant decreases in local unemployment. The Covid-19 pandemic fueled a crisis in the housing
market, sending demand and prices for homes soaring to all-time highs in an already supply tight
market. Gilroy benefitted economically from this trend.
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Today, Gilroy’s economy is diversified into non-agricultural commercial and industrial activities
such as light manufacturing, wholesale operations, automobile sales, and large retail centers. The
Gilroy Outlets, Auto Mall area, and retail developments east of Highway 101 have put the City on
the map as a regional retail destination and helped strengthen the City’s tax revenues.
Manufacturing and wholesale/distribution operations take advantage of Gilroy’s proximity to
Silicon Valley and easy access to Highway 152, leading to Interstate 5 and the Central Valley.
Overall, the City’s economic outlook is projected to remain stable in the near-term. The General
Fund is the most discretionary funding source and the one that funds the majority of the City’s
public services. The General Fund’s major revenue source is taxes including sales, property, utility,
and transient occupancy taxes. Sales tax is the largest single source and is very volatile as it relies
directly on consumers discretionary spending. Sales tax revenue rebounded quickly in the last two
years as the pandemic related measures were lifted and economic activity resumed. The largest
categories of sales tax producers comprise general retail, transportation, state and county pool, and
food products.
In March 2021, the federal government passed the American Rescue Plan Act (ARPA), an
economic relief package, which provided direct stimulus payments, extended unemployment
benefits, continued eviction moratorium, increased tax credits, and provided funding for local
governments to compensate for lost revenues, amongst various other things. The City received
$10.9 million via two tranches over the last two years. This funding helped stabilize the City’s
finances and allowed it to restore positions and services which were previously eliminated or
halted in response to the negative impacts brought on by the pandemic. The fiscal and monetary
responses to the pandemic by the federal government over the last several years have over-
stimulated the economy, which has caused higher inflation. In response, the Federal Reserve has
adjusted its monetary policy to raise federal fund interest rates to curb the high inflation. Such
actions have some economists forecasting the US economy to slip into a recession in 2023. For
the City, the ongoing causes of concern include inflation, the federal reserve’s ongoing tightening
monetary policy by hiking federal fund interest rates, and overall volatility in the markets that
could have further slowdown in economic activity, which could impact revenue sources and
pension costs.
The City’s General Fund’s primary expenditure is related to personnel. In 2022, the City Council
approved various multi-year labor contracts which help provide stability for the employees and the
organization overall and help to project and budget for the planned increases. In addition, during
FY22, the City updated its citywide user fee schedule to ensure it can recoup the costs of providing
certain services. The adopted fee schedule includes a mechanism to allow for the City to adjust the
fees annually based on a consumer price index to ensure continued focus on cost recovery. The
City does expect an overall slowdown in the economy, and a slower growth to its sales tax revenue
source.
Per the California Association of Realtor’s 2023 housing market forecast, the median home price
in the State is expected to decline 8.8% during the year, mortgage rates are expected to remain
elevated, and the higher rates are expected to reduce the purchasing power of many buyers. As
such, housing demand and home prices are expected to soften during the year. At this time, there
is no major negative impact expected to the City’s property tax revenue, as the property tax revenue
is based on annual assessed values and not the annual fair market value.
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While most of property tax is expected to remain stable into the coming fiscal year, some elements
of property tax revenues, such as documentary transfer tax and supplemental tax, resulting from
property turnover and remodeling improvements, are likely to decline compared to immediate
prior years.
As previously mentioned, the City also provides water and wastewater utility to its residents. The
utilities are funded by rates assessed as charges for services to the customers. The current rates
were instituted in 2019. The City is currently undergoing a rate study for both utilities and expects
to have new rate adjustments instituted by second half of 2023.
Fiscal Year 2022 (FY22) Financial Results
The City ended FY22 with an operating gain, resulting in a change in net position of $26.1 million.
In the General Fund, the revenues for FY22 were $12.3 million higher than budgeted, primarily
due to higher property, sales and utility user taxes, and one-time ARPA funding. Additionally,
expenditures were $2.1 million lower than budgeted primarily due to operational savings. The
revenues exceeded the expenditures by $17.5 million, before transfers ($1.0 million), resulting in
a net increase in fund balance for the General Fund of $18.5 million.
Revitalization and Capital Improvements
Commercial development in certain corridors in Gilroy has added millions of square feet of retail
and professional services space to the City. Downtown revitalization efforts have helped attract
new businesses to the area, has retained existing businesses, and created a core area of antique
stores, specialty shops, and restaurants. Restored historic buildings also add to the downtown’s
character, including the Old City Hall and the Train Depot. However, some vacant storefronts
persist, and the City is focusing additional efforts at revitalizing these spaces by offering economic
incentives to the property and the business owners. During FY22, the City was awarded a $3.9
million grant for downtown beautification to include renovation of two pedestrian alleys, Gourmet
Alley and Railroad Street, and for litter abatement related programs. In addition, the City has
invested $2.3 million to construct a Downtown Gourmet Parking Lot with 140 surface parking
spaces, which includes electric vehicle charging infrastructure, lighting, landscaping, and various
bicycle and pedestrian amenities to connect to the aforementioned pedestrian alleys. The City also
adopted 5-year streets repair program which invests $3.9 million annually for street rehabilitation
and maintenance projects across the city and is expected to increase the City’s pavement condition
index (PCI) value.
The City’s capital improvement plan (CIP) is adopted every other year which provides a 5-year
window of projects to be completed within the CIP horizon. The primary source of funding is
capital project funds - which derive revenues in form of development impact fees, and special
revenue funds – which derive revenues in form of intergovernmental grants and tax-sharing
allocations such as gas taxes.
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Long-term financial planning
The City’s general fund balance as of June 30, 2022 was $38.2 million. The City Council adopted
a general fund reserve policy of retaining a general fund reserve equal to 20% of annual general
fund expenditures.
The policy also adopted a separate economic stability reserve that is used only for limited purposes,
at 10% of general fund expenditures. The City prepares a five-year forecast for the fund, which
projects the operating revenues and expenditures. The current forecast projects the City to maintain
both reserve requirements and remain structurally balanced. The forecast projections include the
anticipated increases in retirement costs over the period due to recent changes in actuarial
assumptions and underperformance of the pension system’s investment assets. The City Council
plans to utilize the accumulated fund balance for strategic one-time investments, such as additional
contributions to the street maintenance program.
Award and Acknowledgements
The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for
Excellence in Financial Reporting to the City of Gilroy for its annual comprehensive financial
report for the fiscal year ended June 30, 2021. This was the eighteenth consecutive year that the
City achieved this prestigious award. In order to be awarded a Certificate of Achievement, the City
had to publish an easily readable and efficiently organized ACFR that satisfied both generally
accepted accounting principles and applicable program requirements.
A Certificate of Achievement for Excellence in Financial Reporting is valid for a period of one
year only. We believe that our FY22 ACFR continues to meet the Certificate of Achievement for
Excellence in Financial Reporting Program’s requirements and we are submitting the FY22 ACFR
to the GFOA to determine its eligibility for another certificate.
The preparation of this report would not have been possible without the skill, diligence, and
commitment of the entire staff of the Finance Department, and specifically Finance Manager
Rosemary Guerrero. We wish to thank all departments for their assistance in providing the data
necessary to prepare this report. Credit also is due to the Mayor and the City Council for their
continuing support for maintaining the highest standards of professionalism in the management of
Gilroy’s finances and prioritizing the goal of financial sustainability.
Respectfully submitted,
Jimmy Forbis
City Administrator
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City of Gilroy
Elected Officials & City Staff
As of June 30, 2022
ELECTED OFFICIALS
Marie Blankley Mayor
Peter Leroe-Muñoz Mayor Pro Tempore
Rebeca Armendariz Council Member
Dion Bracco Council Member
Zach Hilton Council Member
Fred Tovar Council Member
Carol Marques Council Member
CITY STAFF
Jimmy Forbis City Administrator
Thai Pham City Clerk
Jon Biggs Interim Community Development Director
Sharon Goei Community Development Director
Harjot Sangha Finance Director
Jim Wyatt Fire Chief
LeeAnn McPhillips Administrative Services and Human Resources Director/Risk Manager
Pedro Espinoza Police Chief
Daryl Jordan Public Works Director
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ORGANIZATION CHART Gilroy CommunityCity CouncilCity AttorneyCity AdministratorCommunity DevelopmentPublic WorksAdministrative ServicesFinancePoliceFireCity Clerkvi vii11.3p. 294 of 530
City of Gilroy
Map
viii
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Gilroy
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2021
Executive Director/CEO
ix
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FINANCIAL
SECTION
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200 E. Sandpointe Avenue, Suite 600
Santa Ana, California 92707
INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor and the Members of the City Council
of the City of Gilroy
Gilroy, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities,
the discretely presented component unit, each major fund, and the aggregate remaining fund information of City of
Gilroy, California (the “City”) as of and for the year ended June 30, 2022, and the related notes to the basic financial
statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective
financial position of the governmental activities, the business-type activities, the discretely presented component unit
(“DCU”), each major fund, and the aggregate remaining fund information of the City, as of June 30, 2022, and the
respective changes in financial position and, where applicable, cash flows thereof for the year then ended in
accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller
General of the United States. Our responsibilities under those standards are further described in the Auditors’
Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of
the City, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to
our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinions.
Emphasis of Matter
Implementation of New GASB Pronouncements
As discussed in Note 1 to the basic financial statements, the City and discretely presented component unit
implemented Governmental Accounting Standards Board (“GASB”) Statement No. 87, Leases during the year. As of
July 1, 2021, the Governmental Activities Lease Receivable and Deferred Inflows was increased by $6,655,595 and
the DCU Lease Receivable and Deferred Inflows was increased by $129,917. Our opinion is not modified with
respect to this matter.
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To the Honorable Mayor and the Members of the City Council
of the City of Gilroy
Gilroy, California
Page 2
2
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with
accounting principles generally accepted in the United States of America, and for the design, implementation, and
maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free
from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events,
considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for
twelve months beyond the financial statement date, including any currently known information that may raise
substantial doubt shortly thereafter.
Auditors’ Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an
audit conducted in accordance with auditing standards generally accepted in the United States of America and
Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered
material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment
made by a reasonable user based on the financial statements.
In performing an audit in accordance with auditing standards generally accepted in the United States of America and
Government Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or
error, and design and perform audit procedures responsive to those risks. Such procedures include examining,
on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
City’s internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise
substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified
during the audit.
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To the Honorable Mayor and the Members of the City Council
of the City of Gilroy
Gilroy, California
Page 3
3
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion
and Analysis, the Budgetary Comparison Schedules, the Schedules of Changes in Net Pension Liability and Related
Ratios, the Schedules of Contributions – Pensions, the Schedule of Changes in Net Other Postemployment Benefits
Liability and Related Ratios, and the Schedule of Contributions – Other Postemployment Benefits, as listed in the
table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of
management and, although not a part of the basic financial statements, is required by the Governmental Accounting
Standards Board who considers it to be an essential part of financial reporting for placing the basic financial
statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures
to the required supplementary information in accordance with auditing standards generally accepted in the United
States of America, which consisted of inquiries of management about the methods of preparing the information and
comparing the information for consistency with management’s responses to our inquiries, the basic financial
statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an
opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient
evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise
the City’s basic financial statements. The Combining and Individual Nonmajor Fund Financial Statements and
Budgetary Comparison Schedules are presented for purposes of additional analysis and are not a required part of the
basic financial statements. Such information is the responsibility of management and was derived from and relates
directly to the underlying accounting and other records used to prepare the basic financial statements. The information
has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain
additional procedures, including comparing and reconciling such information directly to the underlying accounting
and other records used to prepare the basic financial statements or to the basic financial statements themselves, and
other additional procedures in accordance with auditing standards generally accepted in the United States of America.
In our opinion, based on our audit, the Combining and Individual Nonmajor Fund Financial Statements and
Budgetary Comparison Schedules are fairly stated, in all material respects, in relation to the basic financial statements
as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises
the Introductory and Statistical Sections but does not include the basic financial statements and our auditor’s report
thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an
opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and
consider whether a material inconsistency exists between the other information and the basic financial statements, or
the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that
an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
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To the Honorable Mayor and the Members of the City Council
of the City of Gilroy
Gilroy, California
Page 4
4
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated February 16, 2023, on our
consideration of City’s internal control over financial reporting and on our tests of its compliance with certain
provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely
to describe the scope of our testing of internal control over financial reporting and compliance and the results of that
testing, and not to provide an opinion on the effectiveness of City’s internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards
in considering City’s internal control over financial reporting and compliance.
Santa Ana, California
February 16, 2023
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City of Gilroy
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2022
5
The following discussion and analysis of the financial performance of the City of Gilroy (City) provides an overview
of the City’s financial activities for the fiscal year ended June 30, 2022 (FY22). Please read it in conjunction with the
financial statements identified in the accompanying table of contents.
Using the Accompanying Financial Statements
This annual report consists of a series of financial statements. The government-wide Statement of Net Position and the
Statement of Activities provide information about the activities of the City as a whole and present a longer-term view
of the City’s finances. Also included in the accompanying report are fund financial statements. For governmental
activities, the fund financial statements tell how these services were financed in the short term as well as what remains
for future spending. Fund financial statements also report the City’s operations in more detail than the government-
wide statements by providing information about the City’s most significant funds. The remaining statements provide
financial information about activities for which the City acts solely as a trustee or agent for the benefit of those outside
of the government.
Notes to the Basic Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in the
government-wide and fund financial statements.
FINANCIAL HIGHLIGHTS
During FY22, the City’s overall net position, representing the difference between total assets plus deferred
outflows of resources of the City, and total liabilities plus deferred inflows of resources, increase by $26.1 million
to $373.3 million. Of the total net position, $81.5 million, or about 23%, remains as unrestricted, and most of the
remaining, about 59%, consists of net investment in capital assets. Additional detail can be found on the Statement
of Net Position on page 19.
Total Citywide revenues were $123.8 million, $20.8 million better than FY21 primarily due to an increase in tax
revenues and capital grants and contributions.
Total citywide expenditures, excluding non-operating expenses, were $97.8 million, a decrease of $8.4 million
from FY21. Notable decrease was in the business-type activities of $6.6 million related to operational savings
primarily in the water enterprise.
As of June 30, 2022, the City’s governmental funds reported a combined ending fund balance of $111.1 million,
an increase of 42%, or $33.2 million, from prior fiscal year. The City received $10.3 million in American Rescue
Plan Act (ARPA) funds during the fiscal year and notable increase in capital grants and contributions in the form
of developer impact fees.
The fund balance in the City’s General Fund increased by $18.5 million to $38.2 million, a combination of one-
time contributions from ARPA funds, increased tax revenues, and conservative spending. During FY22, the
General Fund had an excess of revenues over expenditures of $17.5 million, excluding transfers.
Actual revenues, excluding transfers, in the General Fund were $12.3 million better than the final budget,
primarily due to higher than anticipated tax revenues and intergovernmental grants received during the year.
Actual expenditures, excluding transfers, in the General Fund were $5.0 million less than the final budget, as a
result of operational savings primarily in the Public Works and capital outlay.
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City of Gilroy
Management’s Discussion and Analysis (Unaudited) (Continued)
For the Year Ended June 30, 2022
6
As of June 30, 2022, the City had $111.7 million in long-term debt. Of the total, governmental activities long-term
debt portion is $56.6 million, consisting of $24.6 million in general obligation bonds, $31.3 million in lease
revenue bonds, and a loan payable of $0.7 million. The remaining $55.1 million is for business-type activities in
the form of sewer revenue bonds.
OVERVIEW OF THE FINANCIAL STATEMENTS
The annual report consists of four parts – management’s discussion and analysis (this section), the basic financial
statements, required supplementary information, and a supplementary information section that presents combining
statements for nonmajor governmental funds, internal service funds and fiduciary funds. The basic financial statements
include two kinds of statements that present different views of the City:
The first two statements are government-wide financial statements that provide both long-term and short-term
information about the City’s overall financial status.
The remaining statements are fund financial statements that focus on individual parts of the City government,
reporting the City’s operations in more detail than the government-wide statements.
The governmental funds statements tell how general government services like public safety were
financed in the short term as well as what remains for future spending.
Proprietary funds statements offer short-term and long-term financial information about the activities
the government operates like businesses, such as the water and sewer system.
Fiduciary funds statements provide information about the fiduciary relationships – like the custodial
funds of the City – in which the City acts solely as agent or trustee for the benefit of others, to whom
the resources in question belong.
The financial statements also include notes that explain some of the information in the financial statements and provide
more detailed data. The statements are followed by a section of required supplementary information that provides
additional financial and budgetary information.
Figure A-1 summarizes the major features of the City’s financial statements, including the portion of the City
government they cover and the types of information they contain. The remainder of this overview section of
management’s discussion and analysis explains the structure and contents of each of the statements.
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City of Gilroy
Management’s Discussion and Analysis (Unaudited) (Continued)
For the Year Ended June 30, 2022
7
Figure A-1
Major Features of the City’s Government-wide and Fund Financial Statements
` Fund Statements
Government-wide
Statements
Governmental Funds
Proprietary Funds
Fiduciary Funds
Scope Entire City
government (except
fiduciary funds)
The activities of the
City that are not
proprietary or fiduciary
Activities the City
operates similar to
private businesses
Instances in which the
City is the trustee or
agent for someone
else’s resources
Required financial
statements
Statement of net
position
Statement of
activities
Balance sheet
Statement of
revenues,
expenditures and
changes in fund
balances
Statement of net
position
Statement of
revenues,
expenses and
changes net
position
Statement of cash
flows
Statement of
fiduciary net
position
Statement of
change in
fiduciary net
position
Accounting basis and
measurement focus
Accrual accounting
and economic
resources focus
Modified accrual
accounting and current
financial resources
focus
Accrual accounting
and economic
resources focus
Accrual accounting
and economic
resources focus
Type of asset/ liability
information
All assets, deferred
outflows of resources
and liabilities, both
financial and capital,
and short-term and
long-term
Only assets expected to
be used up and
liabilities and deferred
inflows of resources
that come due during
the year or soon
thereafter; no capital
assets or long-term
debt included
All assets, deferred
outflows of resources
and liabilities, both
financial and capital,
and short-term and
long-term
All assets and
liabilities, both short-
term and long-term;
the City’s fiduciary
funds do not currently
contain capital assets,
although they can
Type of inflow/
outflow information
All revenues and
expenses during year,
regardless of when
cash is received or paid
Revenues for which
cash is received during
or soon after the end of
the year; expenditures
when goods or services
have been received and
payment is due during
the year or soon
thereafter
All revenues and
expenses during the
year, regardless of
when cash is received
or paid
All revenues and
expenses during the
year, regardless of
when cash is received
or paid
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City of Gilroy
Management’s Discussion and Analysis (Unaudited) (Continued)
For the Year Ended June 30, 2022
8
Reporting the City as a Whole
The accompanying government-wide financial statements include two statements that present financial data for the
City as a whole. One of the most important questions asked about the City’s finances is, “Is the City as a whole better
off or worse off as a result of the year’s activities?” The Statement of Net Position and the Statement of Activities
report information about the City as a whole and about its activities in a way that helps answer this question. These
statements include all assets, deferred outflows of resources and liabilities using the accrual basis of accounting, which
is similar to the accounting used by most private-sector companies. All of the current year’s revenues and expenses are
considered regardless of when cash is received or paid.
These two statements report the City’s net position and changes in them. The City’s net position – the difference
between assets, deferred inflows/outflows of resources and liabilities – can be considered one way to measure the City’s
financial health, or financial position. Over time, increases and decreases in the City’s net position are one indicator
of whether its financial health is improving or deteriorating. Other things to consider include other nonfinancial factors,
such as changes in the City’s property tax base and the condition of the City’s roads, to assess the overall health of the
City.
In the Statement of Net Position and the Statement of Activities, we divide the City into two kinds of activities:
Governmental activities - Most of the City’s basic services are reported here. Sales taxes, property taxes, and
other revenues finance most of these activities.
Business-type activities - The City charges a fee to customers to help it cover all or most of the cost of the
services accounted for in these funds.
Reporting the City’s Major Funds
The fund financial statements provide detailed information about the City’s most significant funds – not the City as a
whole. Some funds are required to be established by State law or by bond covenants. However, City Council establishes
many other funds to help it control and manage money for particular purposes or to show that it is meeting administrative
responsibilities for using certain taxes, grants, or other money (such as grants received). The City’s two kinds of funds
– governmental and proprietary – use different accounting approaches.
Governmental funds - Most of the City’s basic services are reported in governmental funds, which focus on
how money flows into and out of those funds and the balances left at year end that are available for spending.
These funds are reported using an accounting method called modified accrual accounting, which measures
cash and all other current financial assets that can readily be converted to cash. The governmental fund
statements provide a detailed short-term view of the City’s general government operations and the basic
services it provides. Governmental fund information helps you determine whether there are more or fewer
financial resources that can be spent in the near future to finance the City’s programs. We describe the
relationship or differences between governmental activities (reported in the Statement of Net Position and
the Statement of Activities) and governmental funds in reconciliations following the fund financial
statements.
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City of Gilroy
Management’s Discussion and Analysis (Unaudited) (Continued)
For the Year Ended June 30, 2022
9
Proprietary funds - When the City charges customers for the services it provides - whether to outside
customers or to other units of the City - these services are generally reported in proprietary funds. Proprietary
funds are reported in the same way that all activities are reported in the Statement of Net Position and the
Statement of Activities. In fact, the City’s enterprise funds (a component of proprietary funds) are the same as
the business-type activities we report in the government-wide statements but provide more detail and
additional information, such as cash flows for proprietary funds. We use internal service funds (the other
component of proprietary funds) to report activities that provide supplies and services for the City’s other
programs and activities.
Reporting the City’s Fiduciary Responsibilities
The City is an agent for certain assets held for, and under the control of, other organizations and individuals. All of the
City’s fiduciary activities are reported in a separate Statement of Fiduciary Net Position and Changes in Fiduciary Net
Position. We exclude these activities from the City’s other financial statements because the City cannot use these assets
to finance its operations. The City is responsible for ensuring that the assets reported in these funds are used for their
intended purposes.
GOVERNMENT-WIDE FINANCIAL STATEMENTS
Figure 1: A summary of the government-wide statement of net position (in millions) follows:
2022 2021 2022 2021 2022 2021
Cash and investments $ 131.6 $ 108.0 $ 91.1 $ 100.9 $ 222.7 $ 208.9
Other Assets 17.9 11.3 77.9 70.3 95.8 81.6
Capital Assets 202.8 210.1 84.0 85.9 286.8 296.0
Total Assets 352.3 329.4 253.0 257.1 605.3 586.5
Deferred Outflows 14.2 14.8 1.8 2.9 16.0 17.7
Other Liabilities 15.3 21.1 5.2 3.8 20.5 24.9
Long term liabilities outstanding 130.2 155.6 63.5 73.5 193.7 229.1
Total Liabilities 145.5 176.7 68.7 77.3 214.2 254.0
Deferred Inflows 30.4 2.5 3.5 0.4 33.9 2.9
Net Position
Net investment in capital assets 147.1 149.9 73.4 83.1 220.5 233.0
Restricted 71.3 57.6 - - 71.3 57.6
Unrestricted (27.7) (42.5) 109.2 99.2 81.5 56.7
Total Net Position $ 190.7 $ 164.9 $ 182.6 $ 182.3 $ 373.3 $ 347.2
Governmental Activities Business-Type
Activities Total
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City of Gilroy
Management’s Discussion and Analysis (Unaudited) (Continued)
For the Year Ended June 30, 2022
10
Figure 2: A summary of the government-wide statement of activities follows:
Changes in Net Position (In millions)
The increase or decrease in net position can provide an indication as to whether the overall position of the City
improved or deteriorated during the year.
Governmental Activities: Figure 1 – Statement of Net Position illustrates the total net position increased by $25.8
million compared to the prior year, primarily in restricted and unrestricted. Total asset’s increased by $22.9 million in
the cash and investment category, offset by decrease in total liabilities attributable to pension and OPEB liabilities.
Figure 2 – Statement of Activities illustrates the program level revenues and expenditures for the fiscal year. Total
revenues for governmental activities were $99.9 million, or about 33%, higher compared to the prior year primarily in
the areas of capital grants and contributions attributable to developer impact fees and general tax revenues. Total
expenditures for governmental activities were $74.2 million, or about 2% less compared to the prior year, notably due
to decreased spending in public safety and public works programs.
2022 2021 2022 2021 2022 2021
Revenues
Program revenues:
Charges for services 10.3$ 12.1$ 26.9$ 27.5$ 37.2$ 39.6$
Operating grants and contributions 15.5 16.5 0.4 - 15.9 16.5
Capital grants and contributions 18.2 2.0 0.6 2.5 18.8 4.5
General revenues:
Taxes 53.0 43.4 -- 53.0 43.4
Investment income (0.4) 0.5 (4.0) (2.1) (4.4) (1.6)
Miscellaneous 3.3 0.6 -- 3.3 0.6
Total revenues 99.9 75.1 23.9 27.9 123.8 103.0
Expenses:
General government 10.2 7.3 -- 10.2 7.3
Public safety 38.7 40.8 -- 38.7 40.8
Public works 13.8 16.9 -- 13.8 16.9
Community development 7.7 7.1 -- 7.7 7.1
Recreation services 1.6 1.8 -- 1.6 1.8
Interest expense 2.1 2.1 -- 2.1 2.1
Water - - 10.9 16.4 10.9 16.4
Sewer - - 12.8 13.8 12.8 13.8
Total expenses 74.1 76.0 23.7 30.2 97.8 106.2
Change in net position
before transfers 25.8 (0.9) 0.2 (2.3) 26.0 (3.2)
Transfers in (out)(0.1) (0.6) 0.1 0.6 --
Change in net position 25.7 (1.5) 0.3 (1.7) 26.0 (3.2)
Net position, beginning of year 164.9 166.4 182.3 184.0 347.2 350.4
Net position, end of year 190.7$ 164.9$ 182.6$ 182.3$ 373.3$ 347.2$
Business-type Activities TotalGovernmental Activities
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City of Gilroy
Management’s Discussion and Analysis (Unaudited) (Continued)
For the Year Ended June 30, 2022
11
Business-type Activities: Figure 1 – Statement of Net Position illustrates the total net position for business-type
activities increased by $0.3 million compared to the prior year, with a notable decrease in net investment in capital
assets, offset by an increase in the unrestricted net position. Total assets decreased by $4.1 million notably in the cash
and investment category offset by an increase in other assets. In 2021, the City issued sewer revenue bonds, 2021A
series, to finance its share of the South County Regional Wastewater Treatment plant expansion project. The project
commenced during FY22 hence the decrease in cash and investment for draws against the bond proceeds, offset by
increase in other assets including City’s investment in the plant. Total liabilities decreased by $8.6 million most
attributable to reduction in pension liabilities. Figure 2 - Statement of Activities illustrates the total revenues for
business-type activities were $23.9 million, excluding transfers, a decrease of $4.0 million from prior year, notably in
capital grants and contributions and investment income related to the joint venture. Total expenditures for business-
type activities were $23.6 million, about $6.6 million lower than prior year, notably due to decreased expenditures in
water enterprise. The last rate increases for both utilities were implemented in fiscal year 2019. On October 19, 2021,
Governor Gavin Newsom declared a drought emergency across the state, urging residents to conserve water. The
measures are expected to have an impact to the water sales revenue, requiring a review of the current rate structure to
ensure the utilities are not adversely impacted in their operations and to ensure the health and safety of both systems.
The City has engaged a consultant to conduct a rate study for both utilities and expects to have the new rates instituted
at the beginning of FY24.
MAJOR FUNDS
As noted earlier, the City uses fund accounting to provide proper financial management of the City’s resources and to
demonstrate compliance with finance-related legal requirements.
Major Governmental Funds. The General Fund is the chief operating fund of the City. The City combines its Sidewalk
Repair, Golf Course, and Community Recreation special revenue funds with the City’s General Fund for financial
statement presentation as required under GASB 54 as they are subsidized by the general fund. During FY21, the City
implemented GASB 84 which provides guidance on accounting and reporting for fiduciary activities of the City. The
implementation of GASB 84 resulted in increase of assets and liabilities in the City’s governmental funds as some
funds that were previously classified as fiduciary no longer met the criteria under GASB 84. For the City, these
primarily include Revolving Deposits and Deposits on hand for other purposes such as employee wellness, and Barney
J. Garcia EMS Training. At the end of FY22, the total fund balance of the general fund (as presented in the
aforementioned manner) was $38.2 million.
Revenues increased between the years ended June 30, 2021 and June 30, 2022 by $17.4 million, primarily in the
intergovernmental revenues (one-time ARPA funds), and tax revenues, offset by a decrease in charges for services.
During FY22, the City experienced a strong economic recovery driven by the various Covid-19 related economic
measures undertaken by the federal government to keep the economy afloat.
The Public Facilities Impact Capital Projects Fund has a total fund balance of $30,550. The fund balance improved
by $5.4 million by a combination of increased impact fee revenue from several major development projects, notably
in the residential multi-family category, and decreased expenditures, notably in capital outlay category. In February
2008, this fund borrowed $13.7 million from several funds for the purchase of Gilroy Gardens. See Note 5, in the Notes
to the Basic Financial Statements for additional information. The balance outstanding at June 30, 2022 is $4.7 million.
Major Enterprise Funds. The City provides water and sewer utility services to the Gilroy community and operatives
both as enterprises. Unrestricted net position of the Sewer Fund at the end of the year amounted to $85.3 million, an
increase of 3.5% from prior year, and for the Water Fund amounted to $24.0 million, an increase of 15%.
11.3
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City of Gilroy
Management’s Discussion and Analysis (Unaudited) (Continued)
For the Year Ended June 30, 2022
12
GENERAL FUND
The final budgeted operating revenues of the General Fund were $61.0 million. The actual operating revenues of the
General Fund were $73.3 million, $12.3 million more than the final budget, primarily due to higher than expected sales,
property and utility user taxes, and intergovernmental grants received, where the majority of the one-time ARPA
monies allocated to the City were recognized as revenue in FY22.
The final budgeted operating expenditures and transfers of the General Fund were $59.8 million. The actual operating
expenditures and transfers of the General Fund were $57.7 million, approximately $2.1 million less than the final
budget. The savings were primarily in the capital outlay related to streets pavement rehabilitation, recreation and public
works.
In June 2017, the City Council adopted a new general fund reserve policy that consisted of (i) an unrestricted General
Fund Reserve of 20% of general fund expenditures and (ii) an Economic Stability Reserve of 10% of general fund
expenditures that is intended to help the City weather a severe economic crisis. The following table summarizes the
adopted general fund reserve policy:
The Economic Stability Reserve shall only be used in extraordinary circumstances, upon satisfaction of one of the
following “economic triggers” and with the majority vote of the City Council:
State take-away of significant revenue
Large drop in property taxes (decrease in assessed valuations)
Major business closures (sales tax and/or utility users’ tax impact)
Dramatic drop in development from projections
Large unexpected drop in sales taxes (or other primary revenues - utility users’ tax, franchise fees or
transient occupancy tax) due to severe recession
The economic triggers cause the General Fund Reserve to fall below a predetermined percentage of
expenditures (e.g., 20%).
When the Economic Stability Reserve is used, the City is obligated to replenish the reserve by the end of the next
biennial budget to 10% of the general fund expenditures for the given year.
During FY22, the City adequately maintained the Unrestricted General Fund Reserves and and the Economic Stability
Reserves as required by the policy.
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City of Gilroy
Management’s Discussion and Analysis (Unaudited) (Continued)
For the Year Ended June 30, 2022
13
CAPITAL ASSETS
The net decrease to capital assets, for both activities, during the year ended June 30, 2022 was due to depreciation
expense.
Additional information on the City’s capital assets can be found in the Note 7 to the Basic Financial Statements.
LONG-TERM DEBT
As of June 30, 2022, the City’s governmental activities had bonded debt outstanding of $56.6 million, including
unamortized premium. Of this amount, $24.6 million represents general obligation bonds secured solely by specified
revenue sources, $31.3 million represents lease refunding revenue bonds, and $0.7 million represents streetlights
related loan payable.
As of June 30, 2022, the City’s business-type activities had $55.1 million bonded debt outstanding, consisting of $5.6
million of unamortized premium, $2.4 million of 2010 wastewater revenue refunding bonds, and $47.1 million of 2021
wastewater revenue refunding bonds.
See Note 10 in the Notes to the Basic Financial Statements for a further discussion.
2022 2021 2022 2021 2022 2021
Land $ 21.3 $ 21.3 $ - $ - $ 21.3 $ 21.3
Construction in progress 5.7 7.3 0.1 0.1 5.8 7.4
Buildings and improvements 75.6 78.7 - - 75.6 78.7
Equipment and furniture 2.0 2.3 - - 2.0 2.3
IT equipment and software 0.5 0.2 - - 0.5 0.2
Vehicle 3.8 4.1 0.2 0.2 4.0 4.3
Infrastructure 93.9 96.2 83.7 85.6 177.6 181.8
Total $ 202.8 $ 210.1 $ 84.0 $ 85.9 $ 286.8 $ 296.0 .
(in millions)
Governmental activities Business-type activities Total
2022 2021
Governmental Activities:
Loan Payable 0.7$ 0.8$
General Obligation Bonds 24.6 25.6
Refunding Lease Revenue Bonds 31.3 33.3
Total Governmental Activities 56.6 59.7
Business-Type Activites:
Revenue Bonds 55.1 57.9
Total Business-Type Activities 55.1 57.9
Total Long-Term Debt 111.7$ 117.6$
(in millions)
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City of Gilroy
Management’s Discussion and Analysis (Unaudited) (Continued)
For the Year Ended June 30, 2022
14
Budgetary Highlights
See the Required Supplementary Information in the City’s financial statements for a comparison of the City’s budgeted
revenues and expenditures to actual revenues and expenditures. When preparing its budget, the City projects its
revenues using realistic, but conservative methods so as to budget its expenditure appropriations in a prudent manner.
As previously noted, the City has two unrestricted reserve levels – the Unrestricted General Fund Reserves and the
Economic Stability Reserve, neither of which were utilized during FY22. The City continues its conservative spending
measures to ensure long-term fiscal sustainability.
In addition, the City continued economic incentive transfers from the general fund to the impact funds, to make these
funds whole for the previously granted incentives.
During FY22, the City experienced strong economic recovery as a result of federal stimulus funding made available
for both the general public and municipalities across the nation to support the economy. In addition, other factors such
as the war in Ukraine, impacted prices of energy, which contributed to the increased sales and utility user tax revenues.
The City has always taken a conservative approach in its spending in order to maintain a balanced budget – for and on
behalf of the community – and will continue to be financially prudent during the current biennial budget.
The City regularly reviews its revenues and expenditures and reports to the City Council to keep both the Council and the
residents apprised of its current fiscal health and to ensure the adequate protection of the City’s financial resources.
Contacting the City’s Financial Management
This financial report is designed to provide our citizens, taxpayers, customers, and creditors with a general overview
of the City’s finances and to show the City’s accountability for the money it receives. If you have questions about this
report or need additional financial information, contact the Finance Director’s Office, at the City of Gilroy, 7351 Rosanna
Street, Gilroy, California 95020.
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BASIC FINANCIAL STATEMENTS
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GOVERNMENT-WIDE FINANCIAL STATEMENTS
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Discrete Component
Unit (DCU)
South County
Governmental Business-Type Regional Wastewater
Activities Activities Total Authority
ASSETS
Current assets:
Cash and investments 128,734,374$ 46,620,556$ 175,354,930$ 10,758,715$
Cash and investments with fiscal agent 2,904,426 44,512,120 47,416,546 -
Accounts receivable, net 580,661 3,444,892 4,025,553 244,900
Due from other governments 5,527,133 - 5,527,133 2,248,554
Prepaid items 86,414 - 86,414 -
Interest receivable 1,150,593 - 1,150,593 107
Loans receivable 3,138,245 - 3,138,245 -
Lease receivable - current 245,543 - 245,543 89,597
Due from primary government - - - 1,107,862
Total current assets 142,367,389 94,577,568 236,944,957 14,449,735
Noncurrent assets:
Land held for resale 706,754 - 706,754 -
Equity investment in DCU - 74,480,304 74,480,304 -
Lease receivable - noncurrent 6,404,440 - 6,404,440 -
Capital assets - nondepreciable 27,068,826 108,139 27,176,965 48,653,514
Capital assets - depreciable, net 175,746,333 83,862,577 259,608,910 62,907,676
Total noncurrent assets 209,926,353 158,451,020 368,377,373 111,561,190
Total assets 352,293,742 253,028,588 605,322,330 126,010,925
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources related to pensions 11,618,855 1,305,504 12,924,359 -
Deferred outflows of resources related to OPEB 2,606,561 530,095 3,136,656 -
Total deferred outflows of resources 14,225,416 1,835,599 16,061,015 -
Primary Government
City of Gilroy
Statement of Net Position
June 30, 2022
See accompanying Notes to the Basic Financial Statements
18
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Discrete Component
Unit (DCU)
South County
Governmental Business-Type Regional Wastewater
Activities Activities Total Authority
LIABILITIES
Current liabilities:
Accounts payable 1,668,472 586,285 2,254,757 5,293,452
Accrued payroll and benefits 3,448,021 378,309 3,826,330 -
Deposits payable 3,425,943 18,688 3,444,631 -
Interest payable 462,172 689,791 1,151,963 -
Unearned revenues 1,154,806 - 1,154,806 -
Due to DCU - 1,107,862 1,107,862 -
Compensated absences, due within one year 237,289 23,282 260,571 1,973
Claims payable, due within one year 1,696,997 - 1,696,997 -
Long-term debt, due within one year 3,205,084 2,440,000 5,645,084 -
Total current liabilities 15,298,784 5,244,217 20,543,001 5,295,425
Noncurrent liabilities:
Compensated absences, due in more than one year 1,609,725 209,536 1,819,261 17,764
Claims payable, due in more than one year 6,994,287 - 6,994,287 -
Long-term debt, due in more than one year 53,451,911 52,653,508 106,105,419 -
Aggregate net pension liabilities 53,134,868 7,568,460 60,703,328 -
Total OPEB liabilities 14,978,632 3,046,196 18,024,828 -
Total noncurrent liabilities 130,169,423 63,477,700 193,647,123 17,764
Total liabilities 145,468,207 68,721,917 214,190,124 5,313,189
DEFERRED INFLOWS OF RESOURCES
Deferred lease-related items 6,592,488 - 6,592,488 111,107
Deferred pension-related items 21,115,037 2,961,269 24,076,306 -
Deferred OPEB-related items 2,660,113 540,985 3,201,098 -
Total deferred inflows of resources 30,367,638 3,502,254 33,869,892 111,107
NET POSITION
Net investment in capital assets 147,079,194 73,389,328 220,468,522 64,817,051
Restricted for:
Nonspendable:
Minority interest of DCU - - - 46,106,325
Spendable:
PARS 1,983,396 - 1,983,396 -
Public safety 591,293 - 591,293 -
Community development 10,044,729 - 10,044,729 -
Public works 59,577,053 - 59,577,053 -
Debt service 1,414,579 - 1,414,579 -
Total restricted 71,627,654 - 71,627,654 46,106,325
Unrestricted (deficit)(28,023,535) 109,250,688 81,227,153 9,663,253
Total net position 190,683,313$ 182,640,016$ 373,323,329$ 120,586,629$
June 30, 2022
Statement of Net Position (Continued)
City of Gilroy
Primary Government
See accompanying Notes to the Basic Financial Statements
19
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Capital Grants
Charges for Operating Grants and
Expenses Services and Contributions Contributions
Functions/Programs
Primary Government (PG)
Governmental Activities:
General government 10,224,823$ 4,595,133$ 10,301,575$ -$
Public safety 38,706,978 476,918 1,775,812 -
Community development 7,689,175 3,346,864 1,822,261 -
Public works 13,840,272 1,317,695 1,564,524 18,227,036
Recreation services 1,600,210 599,265 20 -
Interest 2,089,473 - - -
Total Governmental Activities 74,150,931 10,335,875 15,464,192 18,227,036
Business-Type Activities:
Sewer 12,678,990 12,912,113 258,030 222,071
Water 10,930,989 13,959,847 156,922 344,069
Total Business-Type Activities 23,609,979 26,871,960 414,952 566,140
Total Primary Government 97,760,910$ 37,207,835$ 15,879,144$ 18,793,176$
Discretely Presented Component Unit (DCU)
South County Regional Wastewater
Authority 16,483,460$ 398,455$ 10,723,699$ 20,965,020$
City of Gilroy
Statement of Activities
For the Year Ended June 30, 2022
Program Revenues
See accompanying Notes to the Basic Financial Statements
20
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Discrete Component
Unit (DCU)
South County
Governmental Business-Type Regional Wastewater
Activities Activities Total Authority
Functions/Programs
Primary Government (PG)
Governmental Activities:
General government 4,671,885$ -$ 4,671,885$ -$
Public safety (36,454,248) - (36,454,248) -
Community development (2,520,050) - (2,520,050) -
Public works 7,268,983 - 7,268,983 -
Recreation services (1,000,925) - (1,000,925) -
Interest (2,089,473) - (2,089,473) -
Total Governmental Activities (30,123,828) - (30,123,828) -
Business-Type Activities:
Sewer - 713,224 713,224 -
Water - 3,529,849 3,529,849 -
Total Business-Type Activities - 4,243,073 4,243,073 -
Total Primary Government (30,123,828) 4,243,073 (25,880,755) -
Discretely Presented Component Unit (DCU)
South County Regional Wastewater
Authority - - - 15,603,714
General Revenues:
Taxes:
Property taxes 20,294,522 - 20,294,522 -
Sales taxes 23,216,109 - 23,216,109 -
Transient occupancy taxes 1,545,721 - 1,545,721 -
Franchise taxes 1,874,046 - 1,874,046 -
Utility users tax 5,488,491 - 5,488,491 -
Real property transfer taxes 618,818 - 618,818 -
Investment loss (418,588) (4,011,115) (4,429,703) (24,592)
Miscellaneous 3,345,996 15,879 3,361,875 -
Transfers (74,279) 74,279 - -
Total General Revenues 55,890,836 (3,920,957) 51,969,879 (24,592)
Changes in Net Position 25,767,008 322,116 26,089,124 15,579,122
Net Position - Beginning 164,916,305 182,317,900 347,234,205 105,007,507
Net Position - Ending 190,683,313$ 182,640,016$ 373,323,329$ 120,586,629$
Net (Expense) Revenue and Changes in Net Position
City of Gilroy
Statement of Activities (Continued)
For the Year Ended June 30, 2022
See accompanying Notes to the Basic Financial Statements
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FUND FINANCIAL STATEMENTS
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GOVERNMENTAL FUND FINANCIAL STATEMENTS
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Capital
Projects
Fund
Public Other
General Facilities Governmental
Fund Impact Funds Total
ASSETS
Cash and investments 37,022,501$ 4,744,704$ 66,553,431$ 108,320,636$
Receivables:
Accounts 279,832 - 277,247 557,079
Due from other governments 5,052,182 - 474,951 5,527,133
Interest 292,768 - 857,079 1,149,847
Loans - - 3,138,245 3,138,245
Leases 5,850,164 - - 5,850,164
Due from other funds 312,754 - - 312,754
Advances from other funds - - 1,955,153 1,955,153
Prepaid items 739 - - 739
Land held for resale - - 706,754 706,754
Restricted assets:
Cash and investments with fiscal agents 1,983,396 - 921,030 2,904,426
Total assets 50,794,336$ 4,744,704$ 74,883,890$ 130,422,930$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable 884,421$ 10,371$ 261,113$ 1,155,905$
Accrued liabilities 1,883,455 - 39,008 1,922,463
Deposits payable 3,386,368 - 35,299 3,421,667
Unearned revenue 911,023 - 243,783 1,154,806
Due to other funds - - 312,754 312,754
Advances to other funds - 4,703,783 - 4,703,783
Total liabilities 7,065,267 4,714,154 891,957 12,671,378
Deferred inflows of resources:
Lease related 5,823,353 - - 5,823,353
Unavailable revenues - - 800,249 800,249
Total deferred inflows of resources 5,823,353 - 800,249 6,623,602
Fund balances:
Nonspendable 739 - - 739
Restricted 1,983,396 30,550 67,697,386 69,711,332
Committed 5,572,376 - - 5,572,376
Assigned - - 5,494,298 5,494,298
Unassigned 30,349,205 - - 30,349,205
Total fund balances 37,905,716 30,550 73,191,684 111,127,950
Total liabilities, deferred inflows
of resources, and fund balances 50,794,336$ 4,744,704$ 74,883,890$ 130,422,930$
City of Gilroy
Balance Sheet
June 30, 2022
Governmental Funds
See accompanying Notes to the Basic Financial Statements
27
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Total Fund Balances - Total Governmental Funds 111,127,950$
Nondepreciable, net of $2,683,479 reported in Internal Service Fund 24,385,347$
Depreciable, net of $4,512,691 reported in Internal Service Fund 171,233,642 195,618,989
Bonds payable (53,071,950)$
Premium on bonds payable (2,911,561)
Loans payable (673,484)
Interest payable (462,172)
Compensated absences, net of $94,081 reported in Internal Service Fund (1,752,933) (58,872,100)
Pension related deferred outflows of resources 11,618,855$
Aggregate net pension liability (53,134,868)
Pension related deferred inflows of resources (21,115,037) (62,631,050)
OPEB related deferred outflows of resources 2,606,561$
Aggregate net OPEB liability (14,978,632)
OPEB related deferred inflows of resources (2,660,113) (15,032,184)
800,249
19,671,459
Net Position of Governmental Activities 190,683,313$
Long-term liabilities are not due and payable in the current period and accordingly are not reported as fund liabilities. All
liabilities, both current and long-term, are reported in the Statement of Net Position:
Capital assets used in governmental activities were not current financial resources. Therefore, they were not reported in
the Governmental Funds Balance Sheet.
Internal Service Funds were used by management to charge the costs of certain activities, such as insurance and equipment
replacement to individual funds. The assets and liabilities of the Internal Service Funds were included in the
governmental activities in the Government-Wide Statement of Net Position.
Revenue reported as unavailable revenue in the governmental funds when it is not received soon enough after year-end to
be considered available. The availability criteria does not apply to the Government-Wide Financial Statements and,
therefore, the revenue is recognized when eligibility requirements are met and earned.
Net pension liabilities and the related deferred outflows of resources and deferred inflows of resources are not due and
payable in the current period or not available for current expenditures and are not reported in the governmental fund
financial statements:
Net OPEB liabilities and the related deferred outflows of resources and deferred inflows of resources are not due and
payable in the current period or not available for current expenditures and are not reported in the governmental fund
financial statements:
City of Gilroy
Reconciliation of the Governmental Funds Balance Sheet to the
June 30, 2022
Government-Wide Statement of Net Position
Amounts reported for governmental activities in the Statement of Net Position were reported differently because:
See accompanying Notes to the Basic Financial Statements
28
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Capital
Projects
Fund
Public Other
General Facilities Governmental
Fund Impact Funds Total
Revenues:
Taxes 49,095,118$ -$ 3,942,589$ 53,037,707$
Intergovernmental 11,267,505 - 3,537,774 14,805,279
Charges for services 7,380,631 - - 7,380,631
Developer impact fees - 8,665,502 9,561,534 18,227,036
Licenses and permits 2,672,186 - - 2,672,186
Fines and forfeitures 262,403 - - 262,403
Investment income (loss)(758,838) 15,315 202,280 (541,243)
Miscellaneous 3,340,843 - 682,370 4,023,213
Total revenues - 73,259,848 8,680,817 17,926,547 99,867,212
Expenditures:
Current:
General government 7,936,277 - 13,385 7,949,662
Public safety 36,492,344 - 1,195,450 37,687,794
Recreation services 1,463,448 - - 1,463,448
Community development 4,517,132 - 1,018,394 5,535,526
Public works 5,065,424 30,927 998,479 6,094,830
Capital outlay 249,133 - 2,390,600 2,639,733
Debt service:
Principal retirement - - 2,820,129 2,820,129
Interest and fiscal charges - 79,971 2,297,367 2,377,338
Total expenditures 55,723,758 110,898 10,733,804 66,568,460
Excess of revenues over
expenditures - 17,536,090 8,569,919 7,192,743 33,298,752
Other financing sources (uses):
Transfers in 2,779,852 40,763 3,782,921 6,603,536
Transfers out (2,043,469) (3,182,644) (1,451,702) (6,677,815)
Total other financing sources (uses)736,383 (3,141,881) 2,331,219 (74,279)
Net Change in Fund Balances 18,272,473 5,428,038 9,523,962 33,224,473
Fund balances:
Beginning of year 19,633,243 (5,397,488) 63,667,722 77,903,477
End of year 37,905,716$ 30,550$ 73,191,684$ 111,127,950$
City of Gilroy
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Year Ended June 30, 2022
See accompanying Notes to the Basic Financial Statements
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Net Change in Fund Balances - Total Governmental Funds 33,224,473$
Capital outlay, net of $1,508,138 reported in Internal Service Fund 2,828,308$
Depreciation, net of $699,685 reported in Internal Service Funds (10,864,502)
Net effect on disposal of capital assets (75,829) (8,112,023)
78,126
Bonds payable 2,727,696$
Loans payable 92,433 2,820,129
21,745
266,120
94,227
2,964,528
(794,049)
(4,796,268)
Change in Net Position of Governmental Activities 25,767,008$
Capital assets used in governmental activities are not financial resources and therefore are not reported in governmental
funds.
Governmental activities in the Statement of Activities were reported differently because:
City of Gilroy
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes
For the Year Ended June 30, 2022
in Fund Balances to the Government-Wide Statement of Activities
Internal Service Funds are used by management to charge the costs of certain activities, such as insurance and equipment
replacement, to individual funds. The net revenue of the Internal Service Funds is reported in governmental activities.
Certain pension expenses reported in the Statement of Activities do not require the use of current financial resources and,
therefore, are not reported as expenditures in governmental funds.
Certain OPEB expenses reported in the Statement of Activities do not require the use of current financial resources and,
therefore, are not reported as expenditures in governmental funds.
Compensated absences were reported in the Government-Wide Statement of Activities, but they did not require the use of
current financial resources. Therefore, compensated absences were not reported as expenditures in the governmental
funds. Compensated absences is net of $2,598 reported in Internal Service Funds.
Net change in revenues that was considered unavailable in the governmental funds. These items have been reported as
revenue in the Statement of Activities.
Amortization of bond discount was recognized in interest expense on the Government-Wide Statement of Activities, but
did not require the use of current financial resources. Therefore amortization of bond discount was not reported as an
expenditure in the governmental funds.
Principal repayment on long-term debt is not an expense in the Statement of Activities, but is considered an expenditure in
governmental funds.
Interest accrued on long-term debt is reported in the Statement of Activities, but does not require the use of current
financial resources. Therefore, accrued interest is not reported as an expenditure in governmental funds. This amount
represents the change in accrued interest from the prior year.
See accompanying Notes to the Basic Financial Statements
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PROPRIETARY FUND FINANCIAL STATEMENTS
31
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Governmental
Activities
Total Internal
Enterprise Service
Sewer Water Funds Funds
ASSETS
Current assets:
Cash and investments 17,717,488$ 28,903,068$ 46,620,556$ 20,413,738$
Cash and investments with fiscal agent 44,512,120 - 44,512,120 -
Accounts receivable 1,651,883 1,793,009 3,444,892 23,582
Interest receivable - - - 746
Lease receivable - current - - - 87,681
Prepaid items - - - 85,675
Total current assets 63,881,491 30,696,077 94,577,568 20,611,422
Noncurrent assets:
Advances to other funds - - - 2,748,630
Equity investment in DCU 74,480,304 - 74,480,304 -
Lease receivable - noncurrent - - - 712,138
Capital assets:
Capital assets, not depreciated - 108,139 108,139 2,683,479
Capital assets, depreciated, net 30,323,316 53,539,261 83,862,577 4,512,691
Total noncurrent assets 104,803,620 53,647,400 158,451,020 10,656,938
Total assets 168,685,111 84,343,477 253,028,588 31,268,360
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources related to pension 696,576 608,928 1,305,504 -
Deferred outflows of resources related to OPEB 266,616 263,479 530,095 -
Total deferred outflows of resources 963,192 872,407 1,835,599 -
June 30, 2022
Proprietary Funds
Statement of Net Position
City of Gilroy
Business-Type Activities
See accompanying Notes to the Basic Financial Statements
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Governmental
Activities
Total Internal
Enterprise Service
Sewer Water Funds Funds
LIABILITIES
Current liabilities:
Accounts payable 36,833 549,452 586,285 512,567
Accrued liabilities 166,239 212,070 378,309 1,525,558
Deposits payable - 18,688 18,688 4,276
Interest payable 689,791 - 689,791 -
Due to DCU 1,107,862 - 1,107,862 -
Compensated absences, current portion 11,293 11,989 23,282 9,400
Claims payable, current portion - - - 1,696,997
Bonds payable, current portion 2,440,000 - 2,440,000 -
Total current liabilities 4,452,018 792,199 5,244,217 3,748,798
Noncurrent liabilities:
Compensated absences 101,634 107,902 209,536 84,681
Claims payable - - - 6,994,287
Bonds payable 52,653,508 - 52,653,508 -
Net pension liability 4,038,295 3,530,165 7,568,460 -
Net OPEB liability 1,532,110 1,514,086 3,046,196 -
Total noncurrent liabilities 58,325,547 5,152,153 63,477,700 7,078,968
Total liabilities 62,777,565 5,944,352 68,721,917 10,827,766
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to leases - - - 769,135
Deferred inflows of resources related to pension 1,580,041 1,381,228 2,961,269 -
Deferred inflows of resources related to OPEB 272,093 268,892 540,985 -
Total deferred inflows of resources 1,852,134 1,650,120 3,502,254 769,135
NET POSITION
Net investment in capital assets 19,741,928 53,647,400 73,389,328 7,196,170
Unrestricted 85,276,676 23,974,012 109,250,688 12,475,289
Total net position 105,018,604$ 77,621,412$ 182,640,016$ 19,671,459$
City of Gilroy
Statement of Net Position (Continued)
Proprietary Funds
June 30, 2022
Business-Type Activities
See accompanying Notes to the Basic Financial Statements
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Governmental
Activities
Total Internal
Enterprise Service
Sewer Water Funds Funds
OPERATING REVENUES:
Charges for services 12,912,113$ 13,959,847$ 26,871,960$ 27,738,574$
Claims and judgments - - - 560,152
Miscellaneous - 15,879 15,879 952,325
TOTAL OPERATING REVENUES 12,912,113 13,975,726 26,887,839 29,251,051
OPERATING EXPENSES:
Operations 8,254,822 8,050,434 16,305,256 27,170,696
Depreciation 1,510,639 1,385,429 2,896,068 699,685
Billing 777,901 755,086 1,532,987 -
Administration 789,602 740,040 1,529,642 158,475
Claims and judgments 6,225 - 6,225 3,919,860
Insurance premiums - - - 2,221,312
TOTAL OPERATING EXPENSES 11,339,189 10,930,989 22,270,178 34,170,028
OPERATING INCOME (LOSS)1,572,924 3,044,737 4,617,661 (4,918,977)
NONOPERATING REVENUES (EXPENSES):
Investment income (loss)(270,217) (611,691) (881,908) 122,709
Interest expense (1,339,801) - (1,339,801) -
Intergovernmental 258,030 156,922 414,952 -
Share of DCU net loss (3,129,207) - (3,129,207) -
Total Nonoperating Income (Loss)(4,481,195) (454,769) (4,935,964) 122,709
NET INCOME (LOSS) BEFORE TRANSFERS
AND CAPITAL CONTRIBUTIONS (2,908,271) 2,589,968 (318,303) (4,796,268)
TRANSFERS AND CAPITAL CONTRIBUTIONS:
Transfers in 694,144 - 694,144 -
Transfers out (285,281) (334,584) (619,865) -
Capital contributions 222,071 344,069 566,140 -
TOTAL TRANSFERS AND
CAPITAL CONTRIBUTIONS 630,934 9,485 640,419 -
CHANGES IN NET POSITION (2,277,337) 2,599,453 322,116 (4,796,268)
NET POSITION:
Beginning of the year 107,295,941 75,021,959 182,317,900 24,467,727
End of the year 105,018,604$ 77,621,412$ 182,640,016$ 19,671,459$
Proprietary Funds
Statement of Revenues, Expenses, and Changes in Net Position
City of Gilroy
Business-Type Activities
For the Year Ended June 30, 2022
See accompanying Notes to the Basic Financial Statements
35
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Governmental
Activities
Total Internal
Enterprise Service
Sewer Water Funds Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers and users 13,017,435$ 14,122,482$ 27,139,917$ 29,218,313$
Cash paid to suppliers for goods and services (9,834,414) (9,225,099) (19,059,513) (26,679,282)
Cash paid to employees for services (1,228,760) (1,763,861) (2,992,621) (6,087)
Cash paid for insurance claims - - - (3,808,700)
Net Cash Provided by (Used in) Operating Activities 1,954,261 3,133,522 5,087,783 (1,275,756)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:
Cash received from other governments 258,030 156,922 414,952 -
Cash received from (paid to) other funds 408,863 (334,584) 74,279 1,142,412
Net Cash Provided by (Used in) Noncapital Financing Activities 666,893 (177,662) 489,231 1,142,412
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Acquisition of capital assets - (385,430) (385,430) (1,508,138)
Contributions to DCU (10,606,343) - (10,606,343) -
Principal paid (2,380,000) - (2,380,000) -
Interest paid (1,080,301) - (1,080,301) -
Net Cash (Used in) Capital and Related
Financing Activities (14,066,644) (385,430) (14,452,074) (1,508,138)
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment income (loss)(270,217) (611,691) (881,908) 121,963
Net Cash (Used in) Provided by Investing Activities (270,217) (611,691) (881,908) 121,963
Net Change In Cash and Cash Equivalents (11,715,707) 1,958,739 (9,756,968) (1,519,519)
CASH AND CASH EQUIVALENTS:
Beginning of year 73,945,315 26,944,329 100,889,644 21,933,257
End of year 62,229,608$ 28,903,068$ 91,132,676$ 20,413,738$
CASH AND CASH EQUIVALENTS:
Cash and investments 17,717,488$ 28,903,068$ 46,620,556$ 20,413,738$
Cash and investments with fiscal agent 44,512,120 - 44,512,120 -
Total cash and cash equivalents 62,229,608$ 28,903,068$ 91,132,676$ 20,413,738$
City of Gilroy
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2022
Business-Type Activities
See accompanying Notes to the Basic Financial Statements
36
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Governmental
Activities
Total Internal
Enterprise Service
Sewer Water Funds Funds
Reconciliation of Operating Income (Loss) to
Net Cash Provided by (Used in) Operating Activities:
Operating income (loss)1,572,924$ 3,044,737$ 4,617,661$ (4,918,977)$
Adjustments to reconcile to net cash provided by
Operating activities:
Depreciation 1,510,639 1,385,429 2,896,068 699,685
Changes in assets and liabilities:
(Increase)/decrease in accounts receivables 105,322 148,813 254,135 (6,330)
(Increase)/decrease in lease receivables - - - (799,819)
(Increase)/decrease in inventory of materials - 310,497 310,497 43,575
(Increase)/decrease in prepaid items - - - (73,591)
(Increase)/decrease in deferred outflows of resources
related to pensions 420,310 442,063 862,373 -
(Increase)/decrease in deferred outflows of resources
related to OPEB 27,077 88,507 115,584 -
Increase/(decrease) in accounts payable (5,864) 9,964 4,100 (270,262)
Increase/(decrease) in accrued liabilities 15,839 45,412 61,251 941,483
Increase/(decrease) in deposits payable - (2,057) (2,057) 4,276
Increase/(decrease) in compensated absences 6,147 (24,999) (18,852) 2,597
Increase/(decrease) in claims payable - - - 2,332,472
Increase/(decrease) in net pension liabilities (3,425,366) (3,493,151) (6,918,517) -
Increase/(decrease) in net OPEB liabilities 48,842 (263,585) (214,743) -
Increase/(decrease) in deferred inflows of resources
related to lease related - - - 769,135
Increase/(decrease) in deferred inflows of resources
related to pensions 1,580,041 1,381,228 2,961,269 -
Increase/(decrease) in deferred inflows of resources
related to OPEB 98,350 60,664 159,014 -
Net Cash Provided by (Used in) Operating Activities 1,954,261$ 3,133,522$ 5,087,783$ (1,275,756)$
Noncash Financing, capital or Investing activities:
City share of DCU net loss (3,129,207)$ -$ -$ -$
Capital asset contributions 222,071$ 344,069$ 566,140$ -$
City of Gilroy
Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended June 30, 2022
Business-Type Activities
See accompanying Notes to the Basic Financial Statements
37
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38
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FIDUCIARY FUND FINANCIAL STATEMENTS
39
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40
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Custodial
Funds
ASSETS
Cash and investments 839,746$
Cash and investments with fiscal agent 290,688
Total assets 1,130,434
NET POSITION
Restricted For:
Individuals, organizations and other governments 1,130,434
Total net position 1,130,434$
As of June 30, 2022
Statement of Fiduciary Net Position
City of Gilroy
Fiduciary Funds
See accompanying Notes to the Basic Financial Statements
41
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Custodial
Funds
ADDITIONS:
Taxes 922,700$
Investment income 163
Other income 500
Total additions 923,363
DEDUCTIONS:
General administration 15,357
Payments on conduit bonds - principal 774,579
Payments on conduit bonds - interest 110,034
Total deductions 899,970
CHANGE IN NET POSITION 23,393
NET POSITION:
Beginning of year 1,107,041
End of year 1,130,434$
City of Gilroy
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2022
See accompanying Notes to the Basic Financial Statements
42
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43
NOTES TO THE BASIC FINANCIAL STATEMENTS
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44
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City of Gilroy
Index to the Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
45
Page
Note 1 – Summary of Significant Accounting Policies ..................................................................................... 47
A. Description of the Reporting Entity ............................................................................................... 47
B. Basis of Accounting and Measurement Focus ............................................................................... 48
C. Cash and Investments ..................................................................................................................... 50
D. Interfund Loans Receivable and Payable ....................................................................................... 51
E. Accounts Receivable and Due from Other Governments .............................................................. 51
F. Loans Receivable ........................................................................................................................... 51
G. Land Held for Resale ...................................................................................................................... 52
H. Leases ............................................................................................................................................ 52
I. Capital Assets ................................................................................................................................. 53
J. Deferred Outflows/Inflows of Resources ....................................................................................... 53
K. Interest Payable .............................................................................................................................. 53
L. Unearned Revenue ......................................................................................................................... 53
M. Compensated Absences .................................................................................................................. 54
N. Net Pension Liability ...................................................................................................................... 54
O. Other Postemployment Benefits Liability ...................................................................................... 55
P. Claims Payable ............................................................................................................................... 55
Q. Net Position .................................................................................................................................... 55
R. Fund Balances ................................................................................................................................ 55
S. Spending Policy ............................................................................................................................. 56
T. Property Taxes ............................................................................................................................... 57
U. Use of Estimates ............................................................................................................................. 57
V. Implementation of New GASB Pronouncements .......................................................................... 58
Note 2 – Stewardship, Compliance and Accountability ................................................................................... 59
A. Encumbrances ................................................................................................................................ 59
B. Continuing Appropriations ............................................................................................................. 59
C. Deficit Fund Balances/Net Position ............................................................................................... 59
D. Excess of Expenditure Over Appropriations .................................................................................. 60
Note 3 – Cash and Investments .......................................................................................................................... 60
A. Demand Deposits ........................................................................................................................... 60
B. Investments Authorized by the California Government Code and the
City's Investment Policy ................................................................................................................. 61
C. Fair Value Measurements ............................................................................................................... 61
D. Disclosures Relating to Interest Rate Risk ..................................................................................... 62
E. Disclosures Relating to Credit Risk ............................................................................................... 62
F. Concentration of Credit Risk .......................................................................................................... 62
G. Custodial Credit Risk ..................................................................................................................... 63
H. Investment in State Investment Pool .............................................................................................. 63
I. Investment Agreement ................................................................................................................... 63
Note 4 – Loans Receivable .................................................................................................................................. 64
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City of Gilroy
Index to the Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
46
Page
Note 5 – Interfund Transactions ......................................................................................................................... 64
A. Due to/from Other Funds .................................................................................................................. 64
B. Advances to/from Other Funds ......................................................................................................... 64
C. Transfers ............................................................................................................................................ 65
D. Due to/from Component Unit ........................................................................................................... 65
Note 6 – Lease Receivables .................................................................................................................................. 65
Note 7 – Capital Assets ........................................................................................................................................ 67
Note 8 – Equity Investment in Discretely Presented Component Unit ........................................................... 69
Note 9 – Deferred Compensation ........................................................................................................................ 70
Note 10 – Long-Term Liabilities ......................................................................................................................... 70
A. Governmental Activities ................................................................................................................. 70
B. Business-Type Activities ................................................................................................................. 73
C. Debt without Government Commitment ......................................................................................... 75
Note 11 – Defined Benefit Pension Plans (CalPERS) ........................................................................................ 76
A. Summary ......................................................................................................................................... 76
B. General Information about the Pension Plans ................................................................................. 77
C. Net Pension Liability ....................................................................................................................... 79
D. Changes in the Net Pension Liability .............................................................................................. 81
E. Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions .................... 82
Note 12 – Other Postemployment Healthcare Plan ........................................................................................... 83
Note 13 – Claims Payable .................................................................................................................................... 87
Note 14 – Risk Management ................................................................................................................................ 87
Note 15 – Commitments and Contingencies ...................................................................................................... 88
Note 16 – Net Investment in Capital Assets ....................................................................................................... 89
Note 17 – Classification of Fund Balances ......................................................................................................... 90
Note 18 –Subsequent Events ............................................................................................................................... 91
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City of Gilroy
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
47
Note 1 – Summary of Significant Accounting Policies
The basic financial statements of the City of Gilroy, California, (the “City”) have been prepared in conformity with
accounting principles generally accepted in the United States (“U.S. GAAP”) as applied to governmental agencies.
The Governmental Accounting Standards Board (“GASB”) is the accepted standard setting body for establishing
governmental accounting and financial reporting principles. The following is a summary of the City’s significant
policies:
A. Description of the Reporting Entity
The City was incorporated in 1870 under the general laws of the State of California and became a charter city on
January 8, 1960. The City operates under the Council-Administrator form of government. As required by
accounting principles generally accepted in the United States of America, these financial statements present the City
and its component units, entities for which the City is considered to be financially accountable. The City is
considered to be financially accountable for an organization if the City appoints a voting majority of that
organization’s governing body and the organization is able to provide specific financial benefits to or impose
specific financial burdens on the City. The City is also considered to be financially accountable if an organization
is fiscally dependent (i.e., it is unable to adopt its budget, levy taxes, set rates or charges or issue bonded debt
without approval from the City). In certain cases, other organizations are included as component units if the nature
and significance of their relationship with the City are such that their exclusion would cause the City’s financial
statements to be misleading or incomplete.
The Gilroy Public Facilities Financing Authority is considered to be a blended component unit of the reporting
entity of the City because its sole purpose is to finance and construct the City’s public facilities. Blended
component units, although legally separate entities, are in substance, part of the City’s operations and so data
from these units are reported within the funds of the primary government. The Gilroy Public Facilities Financing
Authority does not issue separate component unit financial statements.
Discretely Presented Component Unit (“DCU”)
The South County Regional Wastewater Authority (“Authority”) was created on July 1, 1992 by the City of
Gilroy and City of Morgan Hill (“Member Agencies”). The purpose of the Authority is to plan and implement
regional solutions to the wastewater treatment and management problems resulting from the generation of
wastewater within the service areas of the Member Agencies. To achieve this purpose, the Authority constructs,
maintains and operates facilities for sewage treatment and wastewater reclamation. The City of Gilroy and the
City of Morgan Hill have a 58.1% and 41.9% capacity interest in the wastewater treatment plant, respectively
which is used to determine the capital contribution amounts by the Member Agencies and the pro-rata share of the
Authority’s income (loss).
The Authority is governed by a Board of Directors, which consists of three members from the Gilroy City
Council and two members from the Morgan Hill City Council. The Authority’s budget and annual contribution
requirements are approved by the Board of Directors of the Authority. The City’s management provides
accounting services, engineering services and administrative support to the Authority. Daily operations of the
Authority have been contracted directly to a private provider of services for wastewater management and
operations. The Authority is presented in a separate column to emphasize that it is legally separate from the City
but provides a financial benefit to the City. Debt issued by the Authority requires approval by the City, and the
City approves the budget of the Authority.
Complete financial statements of the Authority can be obtained from the City’s administrative offices.
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
48
Note 1 – Summary of Significant Accounting Policies (Continued)
A. Description of the Reporting Entity (Continued)
The government-wide financial statements (i.e., the statement of net position and the statement of activities)
report information about the reporting government as a whole, except for its fiduciary activities. All fiduciary
activities are reported only in the fund financial statements. Governmental activities, which normally are
supported by taxes, intergovernmental revenues and other nonexchange transactions, are reported separately from
business-type activities, which rely to a significant extent on fees and charges for support. Likewise, the primary
government is reported separately from discretely presented component .
B. Basis of Accounting and Measurement Focus
The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting
entity. The operations of each fund are accounted for by providing a separate set of self-balancing accounts that
comprise its assets, liabilities, net position/fund balance, revenues and expenditures or expenses, as appropriate.
Fund accounting segregates funds according to their intended purpose and is used to aid management in
demonstrating compliance with finance-related legal and contractual provisions. The minimum number of funds
is maintained in accordance with legal and managerial requirements.
Government-Wide Financial Statements
The City’s Government-Wide Financial Statements include a Statement of Net Position and a Statement of
Activities. These statements present summaries of governmental and business-type activities for the City
accompanied by a total column. The DCU column in the government-wide statement of net position and
statement activities includes the financial data of the Authority. The City’s equity investment in the Authority is
reported in the Sewer Fund as an Equity Investment in the DCU and is adjusted annually using the equity method
of accounting.
Fiduciary activities of the City are not included in the Government-Wide statements.
These financial statements are presented on an “economic resources” measurement focus and the accrual basis
of accounting. Accordingly, all of the City’s assets and liabilities, including capital assets, as well as
infrastructure assets, and long-term liabilities, are included in the accompanying Statement of Net Position. The
Statement of Activities presents changes in Net Position. Under the accrual basis of accounting, revenues are
recognized in the period in which they are earned while expenses are recognized in the period in which the
liability is incurred.
Certain types of transactions are reported as program revenues for the City in three categories:
Charges for services
Operating grants and contributions
Capital grants and contributions
Certain eliminations have been made in regards to interfund activities, payables and receivables. All internal
balances in the Statement of Net Position have been eliminated except those representing balances between the
governmental activities and the business-type activities, which are presented as internal balances and eliminated
in the total primary government column. In the Statement of Activities, internal service fund transactions have
been eliminated; however, those transactions between governmental and business-type activities have not been
eliminated.
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
49
Note 1 – Summary of Significant Accounting Policies (Continued)
B. Basis of Accounting and Measurement Focus (Continued)
The following interfund activities have been eliminated:
Due to/from other funds
Advances to/from other funds
Transfers in/out
Governmental Fund Financial Statements
Governmental Fund Financial Statements include a Balance Sheet and a Statement of Revenues, Expenditures
and Changes in Fund Balances for all major governmental funds and nonmajor funds aggregated. An
accompanying schedule is presented to reconcile and explain the differences between fund balance as presented
in these statements to the net position presented in the Government-Wide Financial Statements. The City has
presented all major funds that met the applicable criteria.
All governmental funds are accounted for on a spending or "current financial resources" measurement focus and
the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on
the Balance Sheet. The Statement of Revenues, Expenditures and Changes in Fund Balances presents increases
(revenues and other financing sources) and decreases (expenditures and other financing uses) in net current
assets. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in
which they become both measurable and available to finance expenditures of the current period.
Revenues are recognized as soon as they are both “measurable” and “available”. Revenues are considered to be
available when they are collectible within the current period or soon enough thereafter to pay liabilities of the
current period. For this purpose, the City considers revenues to be available if they are collected within 60 days
of the end of the current fiscal period. The primary revenue sources, which have been treated as susceptible to
accrual by the City, are property tax, sales tax, intergovernmental revenues and other taxes. Expenditures are
recorded in the accounting period in which the related fund liability is incurred.
The Reconciliation of the Fund Financial Statements to the Government-Wide Financial Statements is provided
to explain the differences created by the integrated approach of GASB Statement No. 34.
The City reports the following major governmental funds:
General Fund - The General Fund is used to account for resources traditionally associated with governments
which are not required by law or sound financial management to be accounted for in another fund.
Public Facilities Impact Capital Projects Fund - This fund has been established to track expenditures related
to the construction of facilities for public use.
Proprietary Fund Financial Statements
Proprietary Fund Financial Statements include a Statement of Net Position, a Statement of Revenues, Expenses
and Changes in Net Position, and a Statement of Cash Flows for each major Proprietary Fund.
A separate column representing internal service funds is also presented in these statements. However, internal
service balances and activities have been combined with the governmental activities in the Government-Wide
Financial Statements. The City’s internal service funds include three individual funds which provide services
directly to other City funds. These areas of service include - Fleet and Facilities, Information Technology, and
Self-Insurance.
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
50
Note 1 – Summary of Significant Accounting Policies (Continued)
B. Basis of Accounting and Measurement Focus (Continued)
Proprietary Fund Financial Statements (Continued)
Proprietary funds are accounted for using the "economic resources" measurement focus and the accrual basis of
accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the Statement
of Net Position. The Statement of Revenues, Expenses and Changes in Net Position presents increases (revenues)
and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recognized in
the period in which they are earned while expenses are recognized in the period in which the liability is incurred.
In these funds, receivables have been recorded as revenue and provisions have been made for uncollectible
amounts.
Operating revenues in the proprietary funds are those revenues that are generated from the primary operations of
the fund. All other revenues are reported as nonoperating revenues. Operating expenses are those expenses that
are essential to the primary operations of the fund. All other expenses are reported as nonoperating expenses.
The City reports the following major enterprise fund:
Sewer Fund - This fund is used to account for sewage stations and collection systems provided by the City to
the public.
Water Fund - This fund is used to account for water services provided by the City to the public.
Fiduciary Fund Financial Statements
Fiduciary fund financial statements include a Statement of Fiduciary Net Position and a Statement of Changes in
Fiduciary Net Position. These funds have been established to account for assets received and held by the City
while acting in the capacity of an agent or custodian.
The City reports the following custodial funds:
Custodial Funds – These funds account for resources held by the City in custodial capacity for special
assessments collected to pay the bonded indebtedness for the Highway 152 Series Bonds and for the
revenues that come from fundraising and donations used to buy equipment for the Senior Center.
Discretely Presented Component Unit Financial Statements
The activities of the Authority closely resemble those of ongoing businesses in which the purpose is to conserve
and add to basic resources while meeting operating expenses from current revenues. The Authority provides
services on a continuous basis and its activities are substantially financed by revenues derived from user charges
and contributions from the member agencies. The Authority utilizes the accrual basis of accounting. Revenues
are recognized when earned and expenses are recognized as they are incurred.
C. Cash and Investments
The City pools its available cash for investment purposes. Highly liquid market investments with maturities of
one year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value.
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
51
Note 1 – Summary of Significant Accounting Policies (Continued)
C. Cash and Investments (Continued)
U.S. GAAP defines fair value, establishes a framework for measuring fair value and establishes disclosures about
fair value measurement. Investments, unless otherwise specified, recorded at fair value in the financial
statements, are categorized based upon the level of judgment associated with the inputs used to measure their fair
value.
The three levels of the fair value measurement hierarchy are described below:
Level 1 – Inputs are unadjusted, quoted prices for identical assets and liabilities in active markets at the
measurement date.
Level 2 – Inputs, other than quoted prices included in Level 1, that are observable for the assets and
liabilities through corroboration with market data at the measurement date.
Level 3 – Unobservable inputs that reflect management’s best estimate of what market participants would
use in pricing the assets and liabilities at the measurement date.
A statement of cash flows is presented for proprietary fund types. For purposes of reporting cash flows, the City
considers all highly liquid investments with maturities of three months or less when purchased and cash and
investments maintained in the City’s pool to be cash equivalents.
Disclosures for deposits and investment risks, as required and applicable, have been provided in Note 2:
Interest Rate Risk
Credit Risk
- Overall
- Custodial Credit Risk
- Concentration of Credit Risk
D. Interfund Loans Receivable and Payable
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the
fiscal year are referred to as “due from/to other funds” (i.e., current portion of interfund loans) or advances
to/from other fund (i.e., non-current interfund loans). Any residual balances outstanding between the
governmental activities and business-type activities are reported in the government-wide financial statements as
“interfund balances”.
E. Accounts Receivable and Due from Other Governments
All accounts receivable and due from other governments are shown net of any allowance for doubtful accounts, if
applicable, and estimated refunds due.
F. Loans Receivable
The accompanying financial statements reflect the recording of certain loans receivable that represent loans
made to various parties for homebuyer and rehabilitation loan programs. Where reasonably estimable, an
allowance for doubtful accounts has been recorded to reflect management’s best estimate of probable losses
associated with nonrepayment.
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
52
Note 1 – Summary of Significant Accounting Policies (Continued)
G. Land Held for Resale
Land held for resale represents land, structures, and their related improvements acquired for resale. The current
land held for resale includes a multi-family residential project which was acquired via foreclosure process by the
Housing Trust Fund and converted to affordable rental units and is recorded at the lower of cost or net realizable
value and is evaluated for impairment on an annual basis.. The City intends to sell the property to a non-profit
affordable housing developer to rehabilitate the existing facility and maintain it as affordable housing units.
H. Leases
Lessor
The City is a lessor for leases of buildings and land and recognizes leases receivable and deferred inflows of
resources in the financial statements. Variable payments based on future performance or usage of the underlying
asset are not included in the measurement of the lease receivable.
At the commencement of a lease, the lease receivable is measured at the present value of payments expected to
be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease
payments received. The deferred inflows of resources are initially measured as the initial amount of the lease
receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the
deferred inflows of resources are recognized as revenue over the life of the lease term in a systematic and rational
method.
Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the
expected lease receipts to present value, (2) lease term, and (3) lease receipts.
The City uses the average of the LAIF rate and the incremental borrowing rate (IBR) provided by our
financial institution at July 1, 2021 for existing leases or the current rate at the time a new lease is executed.
The lease term includes the noncancelable period of the lease plus any option periods that are likely to be
exercised.
Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the
lessee.
The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure
the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly
affect the amount of the lease receivable.
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
53
Note 1 – Summary of Significant Accounting Policies (Continued)
I. Capital Assets
Capital assets are recorded at cost where historical records are available and at an estimated historical cost where
no historical records exist. Contributed capital assets are valued at acquisition value at the date of the
contribution. Generally, capital asset purchases in excess of $10,000 are capitalized if they have an expected
useful life of more than one year. Capital assets include all public domain (infrastructure) assets consisting of
certain improvements including roads, streets, sidewalks, medians and storm drains.
The following schedule summarizes capital asset useful lives:
Buildings and improvements 40 years
Machinery and equipment 5 - 25 years
Furniture and fixtures 10 - 20 years
Vehicles 8 years
Infrastructure 5 - 70 years
Depreciation has been provided using the straight-line method over the estimated useful life of the asset in the
government-wide financial statements and in the fund financial statements of the proprietary funds.
J. Deferred Outflows/Inflows of Resources
The statement of financial position reports separate sections for deferred outflows of resources and deferred
inflows of resources, when applicable.
Deferred Outflows of Resources represent outflows of resources (consumption of net assets) that applies to
future periods and that, therefore, will not be recognized as an expense until that time. The City reports
pension contributions after the measurement date and deferred losses related to pensions and OPEB in this
category.
Deferred Inflows of Resources represent inflows of resources (acquisition of net assets) that applies to future
periods and that, therefore, are not recognized as revenue until that time. The City reports lease related
inflows, unavailable revenues and deferred gains related to pensions and OPEB in this category.
K. Interest Payable
In the government-wide financial statements, interest payable on long-term debt is recognized as the liability is
incurred for governmental activities and business-type activities. In the fund financial statements, only
proprietary fund and private-purpose trust fund types recognize the interest payable when the liability is incurred.
L. Unearned Revenue
Unearned revenue is reported for transactions for which revenue has been received but has not yet been earned.
Unearned revenues primarily consist of prepaid charges for services and grant allocations, primarily for
American Rescue Plan Act funding, which have not yet been spent.
11.3
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
54
Note 1 – Summary of Significant Accounting Policies (Continued)
M. Compensated Absences
All full-time employees accumulate vacation benefits in varying annual amounts. Sick leave benefits accrue at
the rate of one day per month for all full-time employees (except fire shift employees who accrue 12 hours of
sick leave per month) regardless of their length of service to the City. Upon termination or retirement, employees
are paid for all unused vacation time and overtime. No cash payment is made for unused sick leave upon
termination or retirement.
A liability is recorded for unused vacation and similar compensatory leave balances since the employees’
entitlement to these balances are attributable to services already rendered and it is probable that virtually all of
these balances will be liquidated by either paid time off or payments upon termination or retirement.
If material, a proprietary fund liability is accrued for all leave benefits relating to the operations of the
proprietary funds. A current liability is accrued in the governmental funds for material leave benefits due on
demand to governmental fund employees that have terminated prior to year-end. All other amounts are recorded
in the government-wide financial statements. These noncurrent amounts will be recorded as fund expenditures in
the year in which they are paid or become due.
N. Net Pension Liability
For purposes of measuring the net pension liability, deferred outflows and inflows of resources related to
pensions, and pension expense, information about the fiduciary net position and additions to/deductions from the
fiduciary net position have been determined on the same basis as they are reported by the CalPERS Financial
Office. For this purpose, benefit payments (including refunds of employee contributions) are recognized when
currently due and payable in accordance with the benefit terms. Investments are reported at fair value.
The following timeframes are used for pension reporting:
Valuation Date June 30, 2020
Measurement Date June 30, 2021
Measurement Period July 1, 2020 to June 30, 2021
Gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension
expense systematically over time. The first amortized amounts are recognized in pension expense for the year the
gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of
resources related to pensions and are to be recognized in future pension expense. The amortization period differs
depending on the source of the gain or loss. The difference between projected and actual earnings is amortized
straight-line over 5 years. All other amounts are amortized straight-line over the average expected remaining
service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of
the measurement period.
11.3
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
55
Note 1 – Summary of Significant Accounting Policies (Continued)
O. Other Postemployment Benefits Liability (OPEB)
For purposes of measuring the OPEB liability, deferred outflows of resources and deferred inflows of resources
related to OPEB and OPEB expense, information about the City's OPEB plan have been determined by an
independent actuary. For this purpose, benefit payments are recognized when currently due and payable in
accordance with the benefit terms.
Generally accepted accounting principles require that the reported results must pertain to liability and asset
information within certain defined timeframes. For this report, the following timeframes are used:
Valuation Date June 30, 2021
Measurement Date June 30, 2021
Measurement Period July 1, 2020 to June 30, 2021
P. Claims Payable
The City records a liability for litigation, judgments and claims when it is probable that an asset has been
impaired or a liability has been incurred prior to year-end and the probable amount of loss (net of any insurance
coverage) can be reasonably estimated. This liability is recorded in the internal service fund that accounts for the
City’s self-insurance activity.
Q. Net Position
In the government-wide financial statements and proprietary fund financial statements, net position is classified as
follows:
Net Investment in Capital Assets – This component of net position consists of capital assets, net of
accumulated depreciation and related deferred charges on refunding, reduced by the outstanding balances of
debt that are attributable to the acquisition, construction, or improvement of those items, net of unspent debt
proceeds.
Restricted – This component of net position consists of restricted assets reduced by liabilities and deferred
inflows of resources related to those assets. Separate line items are used to distinguish among major
categories of restrictions and are further displayed as expendable or nonexpendable based on the nature of
the restriction.
Unrestricted – This component of net position is the amount of the assets, deferred outflows of resources,
liabilities, and deferred inflows of resources that are not included in the determination of net investment in
capital assets or the restricted component of net position.
R. Fund Balances
In the governmental fund financial statements, fund balances are classified as follows:
Nonspendable fund balance includes amounts that cannot be spent because they are either (a) not in
spendable form or (b) legally or contractually required to be maintained intact. The City’s nonspendable fund
balance represents inventory, prepaid expenses, land held for resale, and loans receivable unless the proceeds
from the collection of those loans receivable or from sale of the properties is restricted, committed, or
assigned.
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
56
Note 1 – Summary of Significant Accounting Policies (Continued)
R. Fund Balances (Continued)
Restricted fund balance includes resources that are subject to externally enforceable legal restrictions. It
includes amounts that can be spent only for the specific purposes stipulated by constitution, external resource
providers, or through enabling legislation.
Committed fund balance includes amounts that can be used only for the specific purposes determined by a
formal action of the City’s highest level of decision-making authority. The City Council, as the City’s
highest level of decision-making authority, may commit, through a resolution, fund balance for specific
purposes pursuant to constraints imposed by such formal actions taken. Committed amounts cannot be used
for any other purpose unless the City Council removes or changes the specific use through the same type of
formal action taken to establish the commitment.
Assigned fund balance consists of funds that are set aside for specific purposes by the City’s highest level of
decision-making authority or a body or official that has been given the authority to assign funds. The City
has not adopted a policy on the authority to assign amounts for specific purposes.
Unassigned fund balance is the residual classification for the City’s fund balance and includes all spendable
amounts not contained in the other classifications. This category also provides the resources necessary to
meet unexpected expenditures and revenue shortfalls. The General Fund is the only fund that reports a
positive unassigned fund balance amount. In other governmental funds, it is not appropriate to report a
positive unassigned fund balance amount. However, in governmental funds other than General Fund, if
expenditures incurred for specific purposes exceed the amounts that are restricted, committed or assigned to
those purposes, it may be necessary to report a negative unassigned fund balance in that fund.
S. Spending Policy
Government-Wide Financial Statements and the Proprietary Fund Financial Statements
When expenses are incurred for purposes for which both restricted and unrestricted components of net position
are available, the City’s policy is to apply the restricted component of net position first, then the unrestricted
component of net position as needed.
Governmental Fund Financial Statements
When expenditures are incurred for purposes for which both restricted and unrestricted fund balances are
available, the City’s policy is to apply restricted fund balances first, then unrestricted fund balances as needed.
When expenditures are incurred for purposes where only unrestricted fund balances are available, the City uses
the unrestricted resources in the following order, except for instances wherein an ordinance specifies the fund
balance:
Committed
Assigned
Unassigned
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
57
Note 1 – Summary of Significant Accounting Policies (Continued)
T. Property Taxes
Property taxes in the State of California are administered for all local agencies at the County level, and consist of
secured, unsecured and utility tax rolls. The following is a summary of major policies and practices relating to
property taxes:
Property Valuations - are established by the Assessor of the County of Santa Clara for the secured and
unsecured property tax rolls; the utility property tax roll is valued by the State Board of Equalization. Under
the provisions of Article XIIIA of the State Constitution (Proposition 13 adopted by the voters on
June 6, 1978), properties are assessed at 100% of full value. From this base of assessment, subsequent annual
increases in valuation are limited to a maximum of 2%. However, increases to full value are allowed for
property improvements or upon change in ownership. Personal property is excluded from these limitations
and is subject to annual reappraisal.
Tax Levies - are limited to 1% of full market value which results in a tax rate of $1.00 per $100 assessed
valuation, under the provisions of Proposition 13. Tax rates for voter-approved indebtedness are excluded from
this limitation.
Tax Levy Dates - are attached annually on March 1 preceding the fiscal year for which the taxes are levied.
The fiscal year begins July 1 and ends June 30 of the following year. Taxes are levied on both real and
unsecured personal property as it exists at that time. Liens against real estate, as well as the tax on personal
property, are not relieved by subsequent renewal or change in ownership.
Tax Collections - are the responsibility of the County Tax Collector. Taxes and assessments on secured and
utility rolls which constitute a lien against the property may be paid in two installments. The first is due on
November 1 of the fiscal year and is delinquent if not paid by December 10, and the second is due on March
1 of the fiscal year and is delinquent if not paid by April 10. Unsecured personal property taxes do not
constitute a lien against real property unless the taxes become delinquent. Payment must be made in one
installment, which is delinquent if not paid by August 31 of the fiscal year. Significant penalties are imposed
by the County for late payments.
Tax Levy Apportionments - Due to the nature of the City-wide maximum levy, it is not possible to identify
general purpose tax rates for specific entities. Under State legislation adopted subsequent to the passage of
Proposition 13, apportionments to local agencies are made by the County Auditor-Controller based primarily
on the ratio that each agency represented of the total City-wide levy for the three years prior to fiscal year
1979.
Property Tax Administration Fees - The State of California fiscal year 1990-91 Budget Act authorized
counties to collect an administrative fee for collection and distribution of property taxes. Property taxes are
recorded as net of administrative fees withheld during the fiscal year.
U. Use of Estimates
The preparation of financial statements requires management to make certain estimates and assumptions that
affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities, at the date of
the financial statements, as well as the reported amounts of revenue and expenses during the reporting period.
Actual results could differ from those estimates.
11.3
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
58
Note 1 – Summary of Significant Accounting Policies (Continued)
V. Implementation of New GASB Pronouncements
During fiscal year ended June 30, 2022, the City implemented the following new GASB Pronouncement:
GASB Statement No. 87 – In June 2017, GASB issued Statement No. 87, Leases (GASB Statement No. 87), to
better meet the information needs of financial statement users by improving accounting and financial reporting
for leases by governments. This statement increases the usefulness of governments’ financial statements by
requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating
leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the
contract. It also establishes a single model for lease accounting based on the foundational principle that leases are
financings of the right to use an underlying asset. Implementation of this Statement had a significant effect on the
City’s financial statements for the fiscal year ended June 30, 2022.
GASB Statement No. 89 – In June 2018, GASB issued Statement No. 89, Accounting for Interest Cost Incurred
before the End of a Construction Period. This Statement establishes accounting requirements for interest cost
incurred before the end of a construction period. Such interest cost includes all interest that previously was
accounted for in accordance with the requirements of paragraphs 5–22 of Statement No. 62, Codification of
Accounting and Financial Reporting Guidance Contained in Pre–November 30, 1989 FASB and AICPA
Pronouncements, which are superseded by this Statement. This Statement requires that interest cost incurred
before the end of a construction period be recognized as an expense in the period in which the cost is incurred for
financial statements prepared using the economic resources measurement focus. As a result, interest cost incurred
before the end of a construction period will not be included in the historical cost of a capital asset reported in a
business–type activity or enterprise fund. Implementation of this Statement did not have a significant effect on
the City’s financial statements for the fiscal year ended June 30, 2022.
GASB Statement No. 92 – In January 2020, GASB issued Statement No. 92, Omnibus 2020. The primary
objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve
consistency of authoritative literature by addressing practice issues that have been identified during
implementation and application of certain GASB Statements. Implementation of this Statement did not have a
significant effect on the City’s financial statements for the fiscal year ended June 30, 2022.
GASB Statement No. 93 – In March 2020, GASB issued Statement No. 93, Replacement of Interbank Offered
Rates. Some governments have entered into agreements in which variable payments made or received depend on
an interbank offered rate (IBOR)—most notably, the London Interbank Offered Rate (LIBOR). As a result of
global reference rate reform, LIBOR is expected to cease to exist in its current form at the end of 2021,
prompting governments to amend or replace financial instruments for the purpose of replacing LIBOR with other
reference rates, by either changing the reference rate or adding or changing fallback provisions related to the
reference rate. The objective of this Statement is to address those and other accounting and financial reporting
implications that result from the replacement of an IBOR. Implementation of this Statement did not have a
significant effect on the City’s financial statements for the fiscal year ended June 30, 2022.
11.3
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
59
Note 1 – Summary of Significant Accounting Policies (Continued)
V. Implementation of New GASB Pronouncements (Continued)
GASB Statement No. 97 – In June 2020, GASB issued Statement No. 97, Certain Component Unit Criteria, and
Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans – An
Amendment of GASB Statements No. 14 and No. 84, and a Supersession of GASB Statement No. 32. The primary
objectives of this Statement are to (1) increase consistency and comparability related to the reporting of fiduciary
component units in circumstances in which a potential component unit does not have a governing board and the
primary government performs the duties that a governing board typically would perform; (2) mitigate costs
associated with the reporting of certain defined contribution pension plans, defined contribution other
postemployment benefit (OPEB) plans, and employee benefit plans other than pension plans or OPEB plans
(other employee benefit plans) as fiduciary component units in fiduciary fund financial statements; and (3)
enhance the relevance, consistency, and comparability of the accounting and financial reporting for Internal
Revenue Code (IRC) Section 457 deferred compensation plans (Section 457 plans) that meet the definition of a
pension plan and for benefits provided through those plans. Implementation of this Statement did not have a
significant effect on the City’s financial statements for the fiscal year ended June 30, 2022.
Note 2 – Stewardship, Compliance and Accountability
A. Encumbrances
Encumbrances are estimations of costs related to unperformed contracts for goods and services. These
commitments are recorded for budgetary control purposes in the General, Special Revenue, and similar
governmental funds. Encumbrances outstanding at fiscal year-end are reported as committed or assigned fund
balance. They represent the estimated amount of the expenditure ultimately to result if unperformed contracts in-
process at fiscal year-end are completed. They do not constitute expenditures or estimated liabilities. The
significant amounts of encumbrances outstanding as of June 30, 2022 was $10,067,847.
B. Continuing Appropriations
The unexpended and unencumbered appropriations that are available and recommended for continuation are
approved by the City Council for carryover to the following fiscal year. These commitments are reported as
committed or assigned fund balance.
C. Deficit Fund Balances/Net Position
The following funds contained a deficit fund balance/net position as of June 30, 2022:
Funds Amount
Internal Service Fund:
Workers’ Compensation Fund 2,667,145$
In the Government-Wide Financial Statements, the City had a deficit unrestricted net position at June 30, 2022
for its governmental activities of $(28,023,535) of which, $(53,134,868) and $(14,978,632) were attributed to
aggregate net pension liabilities and net other postemployment benefits liabilities, respectively.
11.3
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
60
Note 2 – Stewardship, Compliance and Accountability (Continued)
D. Excess of Expenditure Over Appropriations
The following funds contained excess of expenditures over final appropriations for the year ended June 30, 2022:
Funds Appropriations Expenditures Excess
Nonmajor Funds:
Special Revenue Funds:
Public Safety Grants Fund 677,821$ 957,847$ (280,026)$
Housing Trust Fund 618,325 636,489 (18,164)
Community Facilities District Fund 364,683 381,856 (17,173)
Debt Service Fund:
Gilroy Community Library Fund 1,835,590 1,840,725 (5,135)
Note 3 – Cash and Investments
The City maintains a cash and investment pool, which includes cash balances and authorized investments of all
funds. The City had the following cash and investments at June 30, 2022:
Statement of
Governmental Business-type Component Fiduciary
Activities Activities Unit Net Position Total
Cash and investments 128,734,374$ 46,620,556$ 10,758,715$ 839,746$ 186,953,391$
Cash and investment with fiscal agent 2,904,426 44,512,120 - 290,688 47,707,234
Total cash and investments 131,638,800$ 91,132,676$ 10,758,715$ 1,130,434$ 234,660,625$
Government-Wide Statement of Net Position
The City’s cash and investments at June 30, 2022 in more detail:
Cash and cash equivalents:
Demand deposits 25,006,014$
Petty cash 4,955
Total cash and cash equivalents 25,010,969
Investments:
Local Agency Investment Fund 161,942,422
Investments with Fiscal Agent:
Investment Agreement 2,621,000
Money Market Mutual Fund 45,086,234
Total investments 209,649,656
Total cash and investments 234,660,625$
A. Demand Deposits
The carrying amount of the City’s demand deposits were $25,006,014 at June 30, 2022. Bank balances before
reconciling items were $25,721,437 at that date, the total amount of which was insured or collateralized with
securities held by the pledging financial institutions in the City’s name as discussed below.
The California Government Code requires California banks and savings and loan associations to secure the
City’s cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner
shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor.
11.3
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
61
Note 3 – Cash and Investments (Continued)
A. Demand Deposits (Continued)
Thus, collateral for cash deposits is considered to be held in the City's name. The market value of pledged
securities must equal at least 110% of the City's cash deposits. California law also allows institutions to secure
City deposits by pledging first trust deed mortgage notes having a value of 150% of the City’s total cash
deposits. The City may waive collateral requirements for cash deposits, which are fully insured up to $250,000
by the Federal Deposit Insurance Corporation (“FDIC”). The City, however, has not waived the collateralization
requirements.
B. Investments Authorized by the California Government Code and the City's Investment Policy
The table below identifies the investment types that are authorized by the City's investment policy and the
California Government Code. The table also identifies certain provisions of the California Government Code (or
the City's investment policy, if more restrictive) that address interest rate risk, credit risk, and concentration of
credit risk. This table below does not identify investment types that are authorized and held by bond trustees that
are governed by the provisions of debt agreements of the City, rather than the general provisions of the California
Government Code or the City's investment policy.
Maximum Maximum
Maximum Percentage of Investment in One
Authorized Investment Type Maturity Portfolio Issuer
Local Agency Investment Fund (LAIF) N/A None None
U.S. Government Sponsored Agency Securities N/A None None
Insured Certificate of Deposit (CD's) N/A 15% $250,000
Banker's Acceptances N/A 15% None
Commercial Paper N/A 10% None
Passbook Savings or Money Market Demand Deposits N/A None None
Money Market Mutual Funds N/A 5% None
Liquidity:
*Securities or bonds purchased under a prior investment policy may be held or sold but additional purchases shall not be made.
N/A- Not applicable
C. Fair Value Measurements
At June 30, 2022, investments are reported at fair value. Investments in investment contracts are valued at cost
and exempt from the fair value hierarchy. Investments that are measured at fair value using the net asset value
(NAV) per share are not classified in the fair value hierarchy. The City values investments in money market
mutual funds at NAV based on amortized cost The following table presents the fair value measurement of
investments on a recurring basis and the levels within GASB 72 fair value hierarchy in which the fair value
measurements fall at June 30, 2022:
Primary Government Total N/A
Local Agency Investment Fund 151,777,202$ 151,777,202$
Investment Agreement 2,621,000 2,621,000
Total Investments 154,398,202$ 154,398,202$
Component Unit Total N/A
Local Agency Investment Fund 10,165,220$ 10,165,220$
Total Investments 10,165,220$ 10,165,220$
11.3
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
62
Note 3 – Cash and Investments (Continued)
C. Fair Value Measurements (Continued)
Investments measured at the net asset value (NAV)
Money Market Mutual Funds 45,086,234$
Total investments measured at the net asset value (NAV) 45,086,234$
D. Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an
investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to
changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by
purchasing a combination of shorter term and longer-term investments and timing cash flows from maturities so
that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide
the cash flow and liquidity needed for operations. Information about the sensitivity of the fair values of the City's
investments to market interest rate fluctuations is as follows:
12 Months More than
Investment Type Total or less 12 Months
Local Agency Investment Fund 161,942,422$ 161,942,422$ -$
Investment Agreement 2,621,000 2,621,000 -
Money Market Mutual Funds 45,086,234 45,086,234 -
Total 209,649,656$ 209,649,656$ -$
Remaining Maturity (in Months)
E. Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the
investment. This is measured by the assignment of a rating by a nationally recognized statistical rating
organization. Presented below is the minimum rating required by (where applicable) the California Government
Code, the City’s investment policy or debt agreements, and the actual rating by Standard & Poor’s as of year-end
for each investment type.
Minimum
Legal
Investment Type Total Rating
Local Agency Investment Fund 161,942,422$ N/A
Investment Agreement 2,621,000 A1
Money Market Mutual Funds 45,086,234 N/A
Total 209,649,656$
F. Concentration of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer
beyond that stipulated by the California Government Code. There are no investments in any one issuer (other
than U.S. Treasury securities, mutual funds and external investment pools) that represent 5% or more of total City
investments. The money market funds held with fiscal agents are related to bond issuances and reserves and not
subject to the limitation set by California Government Code.
11.3
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
63
Note 3 – Cash and Investments (Continued)
G. Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a
government will not be able to recover its deposits or will not be able to recover collateral securities that are in
the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the
failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the
value of its investment or collateral securities that are in the possession of another party. The California
Government Code and the City’s investment policy do not contain legal or policy requirements that would limit
the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits:
The California Government Code requires that a financial institution secure deposits made by state or local
governmental units by pledging securities in an undivided collateral pool held by a depository regulated under
state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral
pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows
financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150%
of the secured public deposits.
For investments identified herein as held by fiscal agent, the trustee selects the investment under the terms of the
applicable trust agreement, acquires the investment and holds the investment on behalf of the reporting
government.
H. Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (“LAIF”) that is regulated by California
Government Code Section 16429 under the oversight of the Treasurer of the State of California. The fair value of
the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the
City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized
cost of that portfolio).
The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded
on an amortized cost basis. The City investments in LAIF at June 30, 2022 included a portion of pool funds
invested in Structured Notes and Asset-Backed Securities.
Structured Notes: debt securities (other than asset-backed securities) whose cash flow characteristics (coupon
rate, redemption amount, or stated maturity) depend upon one or more indices and/or that have embedded
forwards or options.
Asset-Backed Securities: generally, mortgage-backed securities that entitle their purchasers to receive a share
of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages
(for example, Collateralized Mortgage Obligations) or credit card receivables.
As of June 30, 2022, the City and DCU had $151,777,202 and $10,165,220 invested in LAIF, respectively,
which had invested 1.88% of the pool investment funds in Structured Notes and Asset-Backed Securities.
I. Investment Agreement
The City has entered into nonparticipating investment contracts (GICs), which are authorized under bond
documents as outlined in the City's investment policy or the debt agreement. GICs are non-marketable interest-
bearing agreements with or guaranteed by certain financial institutions. The agreements provide for a guaranteed
return on principal over a specified period. A GIC is a general obligation instrument issued by a financial
institution, subject to applicable legal restrictions. The Fund's investments in GIC's represent proceeds from bond
issues that have been set aside (held for the benefit of the bondholders) as debt service reserves. The investment
contract is held long-term and bears interest rate at 3.31%. The investment contract is collateralized by
investments, with $2,621,000 collateralized at 104%.
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
64
Note 4 – Loans Receivable
At June 30, 2022, loans receivable consisted of the following:
Government Wide
Financial
Statements
Governmental
Activities
Down payment assistance 1,560,584$
Housing improvement to non-profits 450,000
Involuntary liens 131,345
Affordable housing development loans 790,000
Housing rehabilitation 206,316
Total loans receivable 3,138,245$
The City made deferred loans to senior citizens, the physically handicapped, and low to moderate income residents
for the purposes of rehabilitation and down payment assistance. These loans are repaid at the end of a 30 year term or
when the title to the property changes. The City also made deferred loans to third party housing non-profits to fund
housing projects which are due the earlier of 55 years after completion of the projects or December 31, 2074. Where
reasonably estimable, an allowance for doubtful accounts has been recorded to reflect management’s best estimate of
probable losses associated with nonrepayment. Estimates of any additional potential losses associated with
nonrepayment cannot be reasonably estimated at this time.
Note 5 - Interfund Transactions
A. Due to/from Other Funds
The following is a summary of advances to and from other funds as of June 30, 2022:
Due From
Other Funds
Due To Other Funds General Fund Total
Nonmajor Governmental Funds 312,754$ 312,754$
Total 312,754$ 312,754$
B. Advances to/from Other Funds
The following is a summary of advances to and from other funds as of June 30, 2022:
Advances to Other Funds
Nonmajor
Governmental
Funds
Internal Service
Fund Total
Public Facilities Impact Capital Projects Fund 1,955,153$ 2,748,630$ 4,703,783$
Total 1,955,153$ 2,748,630$ 4,703,783$
Advances from Other Funds
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
65
Note 5 – Interfund Transactions (Continued)
B. Advances to/from Other Funds(Continued)
In February 2008, the City purchased the Gilroy Gardens Property (Property), which includes a horticultural
education and theme park, for approximately $13.7 million. At the same time, the City entered into a single
tenant lease of the Property with the seller, Gilroy Gardens Family Theme Park, Inc. To fund the acquisition, the
Public Facilities Impact Fund borrowed from certain funds which is accounted for as a long-term advance for a
period of 20 years. The annual loan activity is budgeted through revenue and expenditure transactions. The loan
interest is at the City’s annual average portfolio yield. The original loan amounts were as follows: Storm Drain
Fund ($1.2 million), the Sewer Development Fund ($5.0 million), the Fleet Services Fund ($4.3 million), the
Equipment Outlay Fund ($2.2 million) and the Water Fund ($1.0 million).
C. Transfers
During the year ended June 30, 2022, the City had the following transfers:
Public Facilities Nonmajor Sewer Water
Impact Capital Governmental Enterprise Enterprise
Transfers In General Fund1 Projects Fund2 Funds3 Fund4 Fund4 Total
General Fund 1,787,327$ -$ 372,660$ 285,281$ 334,584$ 2,779,852$
Public Facilities Impact Capital Projects Fund 40,763 - - - - 40,763
Nonmajor Governmental Funds 215,379 3,182,644 384,898 - - 3,782,921
Sewer Enterprise Fund - - 694,144 - - 694,144
Total 2,043,469$ 3,182,644$ 1,451,702$ 285,281$ 334,584$ 7,297,680$
Transfers Out
1General Fund support of certain capital projects, safety related grants, and IT services.
2Public Facilities Impact Capital Projects Fund supports various debt instruments.
3Other Governmental Funds support of grant personnel costs, debt retirements and sewer development project costs.
4Enterprise Fund transfers to the General Fund to support fringe benefit costs and subsidize environmental costs.
D. Due to/from Component Unit
The following is a summary of due to and from the Authority as of June 30, 2022:
Due to component unit South Regional
Wastewater
Authority
Sewer Enterprise Fund 1,107,862$
1,107,862$
The amounts owed by the City to the Authority are primarily for outstanding operating and capital contributions
at year end.
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
66
Note 6 – Lease Receivables
The City leases various types of property including land and buildings. Leases receivable consist of agreements with
other entities for the “right–to–use” the underlying assets at various locations owned by the City. The remaining
terms of the agreements range from 2 to 40 years. The interest rates used calculated the net present value of the lease
receivable ranged from 1% to 1.5%.
For the fiscal year ended June 30, 2022, the City and DCU recognized $324,928 and $68,149 in lease revenue,
respectively, and $107,171 and $248 in interest revenue, respectively, and the outstanding net present value of the
lease receivable amount is $6,649,983 for the City.
Governmental Activities
A summary of changes in lease receivable for the governmental activities for the year ended June 30, 2022 is as
follows:
Balance Amounts Amounts
July 1, 2021 Balance due within due in more
(as restated) Additions Reductions June 30, 2022 one year than one year
6,655,595$ 261,820$ (267,432)$ 6,649,983$ 245,543$ 6,404,440$
At June 30, 2022, the required payments for these leases, including interest, are:
NPV leases Total lease
receivables Interest payments
2023 245,543$ 105,776$ 351,319$
2024 221,491 103,064 324,555
2025 232,778 100,236 333,014
2026 246,335 97,254 343,589
2027 197,478 94,245 291,723
2028 - 2032 963,217 427,061 1,390,278
2033 - 2037 606,612 366,968 973,580
2038 - 2042 660,120 313,460 973,580
2043 - 2047 718,347 255,233 973,580
2048 - 2052 781,710 191,870 973,580
2053 - 2057 850,663 122,917 973,580
2058 - 2062 925,689 47,883 973,572
Total 6,649,983$ 2,225,967$ 8,875,950$
Discretely Presented Component Unit
A summary of changes in lease receivable for the discretely presented component unit for the year ended
June 30, 2022 is as follows:
Balance Amounts Amounts
July 1, 2021 Balance due within due in more
(as restated) Additions Reductions June 30, 2022 one year than one year
129,917$ 49,338$ (89,658)$ 89,597$ 89,597$ -$
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
67
Note 7 – Capital Assets
Governmental Activities
The following is a summary of changes in capital assets for the governmental activities for the year ended
June 30, 2022:
Balance Balance
July 1, 2021 Additions Deletions Transferes June 30, 2022
Capital assets not being depreciated:
Land 21,334,900$ -$ -$ -$ 21,334,900$
Construction in progress 7,287,489 2,249,950 (38,493) (3,765,020) 5,733,926
Total capital assets not being depreciated 28,622,389 2,249,950 (38,493) (3,765,020) 27,068,826
Capital assets being depreciated:
Building and improvements 125,118,480 - - - 125,118,480
Equipment and furniture 11,132,071 408,702 (248,903) - 11,291,870
IT equipment and software 2,642,151 95,948 - 83,088 2,821,187
Vehicle 13,534,531 148,725 (23,108) - 13,660,148
Infrastructure 284,697,230 1,433,121 (46,751) 3,681,932 289,765,532
Total capital assets being depreciated 437,124,463 2,086,496 (318,762) 3,765,020 442,657,217
Less accumulated depreciation for:
Building and improvements (46,465,276) (3,064,108) - - (49,529,384)
Equipment and furniture (8,795,916) (483,044) - - (9,278,960)
IT equipment and software (2,423,826) (87,332) 211,567 - (2,299,591)
Vehicle (9,441,945) (526,443) 23,108 - (9,945,280)
Infrastructure (188,501,160) (7,403,260) 46,751 - (195,857,669)
Total accumulated depreciation (255,628,123) (11,564,187) 281,426 - (266,910,884)
Total capital assets being depreciated, net 181,496,340 (9,477,691) (37,336) 3,765,020 175,746,333
Total governmental activities 210,118,729$ (7,227,741)$ (75,829)$ -$ 202,815,159$
Depreciation expense was charged to functions/programs of governmental activities for the year ended June 30, 2022
as follows:
General government 853,238$
Public safety 1,236,286
Public works 7,616,735
Community development 1,158,243
Internal service fund 699,685
Total depreciation expense 11,564,187$
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
68
Note 7 – Capital Assets (Continued)
Business-Type Activities
The following is a summary of changes in capital assets for the business-type activities for the year ended
June 30, 2022:
Balance Balance
June 30, 2021 Additions Deletions Transfers June 30, 2022
Capital assets not being depreciated:
Construction in progress 108,139$ -$ -$ -$ 108,139$
Total capital assets not being depreciated 108,139 - - - 108,139
Capital assets being depreciated:
Land improvements 427,852 - - - 427,852
Equipment and furniture 212,630 - - - 212,630
IT Equipment/software - 15,000 - - 15,000
Vehicles 213,353 - - - 213,353
Infrastructure 155,763,712 936,570 - - 156,700,282
Total capital assets being depreciated 156,617,547 951,570 - - 157,569,117
Less accumulated depreciation for:
Land improvements (427,853) - - - (427,853)
Equipment and furniture (196,895) (2,737) - - (199,632)
IT Equipment/software - (1,250) - - (1,250)
Vehicles (18,965) (14,224) - - (33,189)
Infrastructure (70,166,759) (2,877,857) - - (73,044,616)
Total accumulated depreciation (70,810,472) (2,896,068) - - (73,706,540)
Total capital assets being depreciated, net 85,807,075 (1,944,498) - - 83,862,577
Total business-type activities 85,915,214$ (1,944,498)$ -$ -$ 83,970,716$
Depreciation expense was charged to the business-type activities as follows:
Sewer 1,510,639$
Water 1,385,429
Total depreciation expense 2,896,068$
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
69
Note 7 – Capital Assets (Continued)
Discretely Presented Component Unit
The following is a summary of changes in capital assets for the DCU for the year ended June 30, 2022:
Balance Balance
June 30, 2021 Additions Deletions Transfers June 30, 2022
Capital assets not being depreciated:
Land 13,396,202$ -$ -$ -$ 13,396,202$
Construction in progress 14,415,091 20,842,221 - - 35,257,312
Total capital assets not being depreciated 27,811,293 20,842,221 - - 48,653,514
Capital assets being depreciated:
Building and improvements 72,257,749 - - 72,257,749
Land improvements 10,681,371 - - - 10,681,371
Equipment and furnitures 19,964,163 117,575 - - 20,081,738
Vehicles 1,505,201 - - - 1,505,201
Infrastructure 35,874,536 - - - 35,874,536
Total capital assets being depreciated 140,283,020 117,575 - - 140,400,595
Less accumulated depreciation for:
Building and improvements (41,210,706) (1,663,219) - - (42,873,925)
Land improvements (5,907,921) (190,342) - - (6,098,263)
Equipment and furniture (8,145,084) (909,927) - - (9,055,011)
Vehicles (1,139,461) (34,378) - - (1,173,839)
Infrastructure (16,646,124) (1,645,757) - - (18,291,881)
Total accumulated depreciation (73,049,296) (4,443,623) - - (77,492,919)
Total capital assets being depreciated, net 67,233,724 (4,326,048) - - 62,907,676
Total governmental activities 95,045,017$ 16,516,173$ -$ -$ 111,561,190$
Note 8 – Equity Investment in DCU
The City and the City of Morgan Hill are members of the South County Regional Wastewater Authority, a joint
powers authority (“Authority”), that provides for the construction, ownership, maintenance and operation of a
domestic sewer treatment plant. The agreement provides for the participants’ capacity right to use the system. The
participants are also obligated to share in the annual direct operating costs of the Authority. The City maintains the
accounting records for the Authority. The City’s equity investment in the DCU is reported on the statement of net
position of the City’s sewer enterprise fund as an “equity investment in DCU” in the amount of $74,480,304 as
required under the equity method of accounting for investments. The financial statements of the Authority can be
obtained from the City’s finance department.
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
70
Note 9 – Deferred Compensation
The City maintains a deferred compensation plan under Section 457 of the Internal Revenue Code (IRC) for the
benefit of its employees. The plan allows the employees to defer or postpone the taxation of a designated amount of
earnings set aside for retirement.
The City has a fiduciary responsibility to safeguard the assets of the program and to ensure that the plan is properly
maintained by the plan administrator. Generally speaking, assets are available to participants only upon termination
of employment with the City, retirement, death or disability. The City has placed the plan assets into a trust for the
exclusive benefit of plan participants and their beneficiaries. Accordingly, all plan assets have been excluded from
the accompanying financial statements.
Note 10 – Long-Term Liabilities
A. Governmental Activities
The following is a summary of changes in the City’s long-term liabilities for the fiscal year ended June 30, 2022:
Balance Balance Due within Due in more
June 30, 2021 Additions Deletions June 30, 2022 One Year than One Year
Governmental Activities:
Refunding Lease Revenue Bonds:
2013 Series 17,210,000$ -$ (990,000)$ 16,220,000$ 1,035,000$ 15,185,000$
2020A Series 12,950,000 - (715,000) 12,235,000 755,000 11,480,000
Unamortized premium 3,177,681 - (266,120) 2,911,561 266,120 2,645,441
Loan payable 765,917 - (92,433) 673,484 93,359 580,125
Direct borrowings and placement
General Obligation Bonds:
Library 2019A Series 8,015,792 - (337,143) 7,678,649 347,829 7,330,820
Library 2019B Series 17,623,854 - (685,553) 16,938,301 707,776 16,230,525
Total long-term debt 59,743,244 - (3,086,249) 56,656,995 3,205,084 53,451,911
Other long-term liabilities
Claims payable 6,358,812 5,349,924 (3,017,452) 8,691,284 1,696,997 6,994,287
Compensated absences 1,938,644 1,533,749 (1,577,081) 1,847,014 237,289 1,609,725
Total long-term liabilities 68,040,700$ 6,883,673$ (7,680,782)$ 67,195,293$ 5,139,370$ 62,055,923$
Classification
Refunding Lease Revenue Bonds (LRBs) 2013 Series
On July 25, 2013, the City refinanced its 2010 BANs by issuing Refunding Revenue Bonds, in the amount of
$23,120,000. The proceeds from the issue were used to redeem the 2010 BANs.
Interest on the bonds is payable semiannually at rates ranging from 3.00% to 5.25% on May 1 and November 1
of each year commencing on November 1, 2013, and the Bonds mature on November 1, 2033. The principal
balance of outstanding bonds at June 30, 2022 was $16,220,000.
The reserve requirement at June 30, 2022 was $920,222, and the actual reserve was $920,922.
11.3
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
71
Note 10 – Long-Term Liabilities (Continued)
A. Governmental Activities (Continued)
The annual debt service requirements to maturity for the Refunding LRBs 2013 Series are as follows:
Year ending
June 30, Principal Interest Total
2023 1,035,000$ 805,156$ 1,840,156$
2024 1,080,000 760,044 1,840,044
2025 1,130,000 710,444 1,840,444
2026 1,175,000 662,875 1,837,875
2027 1,225,000 611,109 1,836,109
2028-2032 7,110,000 2,079,994 9,189,994
2033-2034 3,465,000 211,050 3,676,050
Total 16,220,000$ 5,840,672$ 22,060,672$
Refunding Lease Revenue Bonds (LRBs) 2020A Series
On August 1, 2020, the Gilroy Public Facilities Financing Authority issued its Series 2020A Lease Revenue
Refunding Bonds in the amount of $13,740,000. The bonds were issued at a premium of $2,719,825 which was
deferred and will be amortized over the life of the bonds. The proceeds from the issuance were used to refund the
outstanding Series 2010 Refunding LRBs and to pay the costs incurred in connection with the issuance of the
2020A bonds.
Interest on the bonds is payable semiannually at rates ranging from 1.21% to 2.08% on May 1 and November 1
of each year commencing on November 1, 2020, and the Bonds mature on November 1, 2033. The principal
balance of outstanding bonds at June 30, 2022 was $12,235,000.
The annual debt service requirements to maturity for the Refunding Lease Revenue Bonds 2020A Series are as
follows:
Year ending
June 30, Principal Interest Total
2023 755,000$ 592,875$ 1,347,875$
2024 795,000 554,125 1,349,125
2025 840,000 513,250 1,353,250
2026 880,000 470,250 1,350,250
2028 925,000 425,125 1,350,125
2028-2032 5,455,000 1,353,625 6,808,625
2033-2034 2,585,000 130,875 2,715,875
Total 12,235,000$ 4,040,125$ 16,275,125$
Loan Payable
The City entered into a loan agreement with the California Energy Commission (CEC) to provide funds to install
equipment for energy conservation. Under the original loan agreement the City was authorized to borrow up to
$1,812,722 with interest at 1% per annum, semiannual payments to be paid commencing December following the
year the project was completed. The City borrowed a total of $1,201,155 with semiannual payments of interest
and principal of $49,931 with the first payment occurring on December 27, 2016. The final payment will be on
June 22, 2029. The principal balance of outstanding at June 30, 2022 was $673,484.
11.3
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
72
Note 10 – Long-Term Liabilities (Continued)
A. Governmental Activities (Continued)
Loan Payable (Continued)
The annual debt service requirements to maturity for the loan is as follows:
Year ending
June 30, Principal Interest Total
2023 93,359$ 6,503$ 99,862$
2024 94,281 5,581 99,862
2025 95,240 4,622 99,862
2026 96,195 3,667 99,862
2027 97,159 2,702 99,861
2028-2029 197,250 2,477 199,727
Total 673,484$ 25,552$ 699,036$
General Obligation Bonds (Gilroy Community Library Project) 2019 Refunding Bonds, Series A
On June 26, 2019, the City issued General Obligation Refunding Bonds 2019 Series A through a private
placement, in the amount of $8,633,538. The proceeds from the issue were used to currently refund the General
Obligation Bonds Series 2009. The City’s refunding of the 2009 General Obligation Bonds resulted in an
economic gain (difference between the present value of the old and new debt) of $1,447,576 and an aggregate
savings in debt service between the refunding debt and the refunded debt of $1,966,116.
Interest on the bonds is payable semiannually at 3.12% on February 1 of each year commencing on
February 1, 2021. The Bonds mature on February 1, 2039. The bonds are payable solely from ad valorem
property taxes levied by the City and collected by the County. The principal balance of outstanding bonds at
June 30, 2022 was $7,678,649.
The annual debt service requirements to maturity for the General Obligation Refunding Bonds, 2019 Series A are
as follows:
Year ending
June 30, Principal Interest Total
2023 347,829$ 239,574$ 587,403$
2024 358,853 228,722 587,575
2025 370,226 217,525 587,751
2026 381,960 205,974 587,934
2027 394,066 194,057 588,123
2028-2032 2,165,786 777,882 2,943,668
2033-2037 2,531,459 417,913 2,949,372
2038-2039 1,128,470 53,087 1,181,557
Total 7,678,649$ 2,334,734$ 10,013,383$
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
73
Note 10 – Long-Term Liabilities (Continued)
A. Governmental Activities (Continued)
General Obligation Bonds (Gilroy Community Library Project) 2019 Refunding Bonds, Series B
On November 5, 2019, the City issued General Obligation Refunding Bonds 2019 Series B through a private
placement, in the amount of $19,087,551. The proceeds from the issue were used to currently refund the General
Obligation Bonds Series 2010. The City’s refunding of the 2010 General Obligation Bonds resulted in an
economic gain (difference between the present value of the old and new debt) of $3,430,633 and an aggregate
savings in debt service between the refunding debt and the refunded debt of $2,525,981.
Interest on the bonds is payable semiannually at a rate of 3.19% on February 1 of each year commencing on
February 1, 2020. The Bonds mature on February 1, 2040. The bonds are payable solely from ad valorem
property taxes levied by the City and collected by the County. The principal balance of outstanding bonds at
June 30, 2022 was $16,938,301.
The annual debt service requirements to maturity for the General Obligation Refunding Bonds, 2019 Series B are
as follows:
Year ending
June 30, Principal Interest Total
2023 707,776$ 540,332$ 1,248,108$
2024 730,720 517,754 1,248,474
2025 754,408 494,444 1,248,852
2026 778,864 470,378 1,249,242
2027 804,112 445,532 1,249,644
2028-2032 4,428,880 1,825,854 6,254,734
2033-2037 5,194,814 1,072,140 6,266,954
2038-2040 3,538,727 228,171 3,766,898
Total 16,938,301$ 5,594,605$ 22,532,906$
B. Business-Type Activities
Balance Balance Due within Due in more
June 30, 2021 Additions Deletions June 30, 2022 One Year than One Year
Other debt:
2010 Wastewater Revenue Bonds 4,820,000$ -$ (2,380,000)$ 2,440,000$ 2,440,000$ -$
2021 Wastewater Revenue Bonds 47,080,000 - - 47,080,000 - 47,080,000
Unamortized premium 5,965,509 - (392,001) 5,573,508 - 5,573,508
57,865,509 - (2,772,001) 55,093,508 2,440,000 52,653,508
Other long-term liabilities
Compensated absences 251,670 193,330 (221,069) 232,818 23,282 209,536
58,117,179$ 193,330$ (2,993,070)$ 55,326,326$ 2,463,282$ 52,863,044$
Classification
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
74
Note 10 – Long-Term Liabilities (Continued)
B. Business-Type Activities (Continued)
2010 Wastewater Revenue Refunding Bonds
On March 1, 2010, the City issued revenue refunding bonds in the amount of $23,375,000. The bonds were issued
to refinance an existing installment payment obligation of the City. The City had originally structured the sewer
revenue bonds through the Authority. The structure consisted of a pledge of an installment sale from the City to
the Authority as the collateral for the revenue bonds issued by the Authority.
As part of the March 2010 refunding, the City issued new debt to refund the Authority bonds. The outstanding
balance of the new debt is reported in the Sewer Fund. The City’s covenants require the City to maintain
sufficient net sewer revenues to pay the outstanding debt. The Authority does not have responsibility to set rates
to meet these covenants.
The bonds are payable from the net revenues of the City’s Sewer Fund pledged as security for the debt. Interest on
the bonds is payable at rates ranging from 3.0% to 5.0%. Principal payments range from $1,465,000 to
$2,440,000 payable on August 1 of each year beginning in 2011 and maturing in 2022. The principal balance of
outstanding bonds at June 30, 2022 was $2,440,000.
Covenants within the bonds require the City to maintain insurance on the facility, establish wastewater rates,
exclusive of sewer development fees, which are sufficient to pay the City’s share of the operating costs of the
Authority, maintain reserves, provide net revenues equal to at least 1.2 times the annual debt service amounts.
The reserve requirement at June 30, 2022 was $2,621,000, and the actual reserve was $2,621,000.
The annual debt service requirements (principal and interest) to maturity for the 2010 Wastewater Revenue
Refunding Bonds are as follows:
Year ending
June 30, Principal Interest Total
2023 2,440,000$ 61,000$ 2,501,000$
Total 2,440,000$ 61,000$ 2,501,000$
2021A Wastewater Revenue Bonds
On June 30, 2021, the Gilroy Public Facilities Financing Authority issued revenue bonds in the amount of
$47,080,000. The bonds were issued to finance the City’s portion of certain improvements to the Authority’s
treatment facility.
The bonds are payable from revenues consisting primarily of installment payments payable by the City under an
installment purchase agreement. The obligation of the city to make installment payments is a special obligation
of the City payable solely from and secured by a pledge of net wastewater revenues of the City’s wastewater
system on a parity with the City’s obligation to pay installment payments that secure the 2010 Wastewater
Revenue Bonds. Interest on the bonds is payable at rates ranging from 3.0% to 4.0%. Principal payments range
from $725,000 to $2,210,000 payable on August 1 of each year beginning in 2023 and maturing in 2057. The
principal balance of outstanding bonds at June 30, 2022 was $47,080,000.
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
75
Note 10 – Long-Term Liabilities (Continued)
B. Business-Type Activities (Continued)
2021A Wastewater Revenue Bonds (Continued)
The annual debt service requirements (principal and interest) to maturity for the 2021A Wastewater Revenue
Bonds are as follows:
Year ending
June 30, Principal Interest Total
2023 -$ 1,533,500$ 1,533,500$
2024 725,000 1,519,000 2,244,000
2025 755,000 1,489,400 2,244,400
2026 785,000 1,458,600 2,243,600
2027 815,000 1,426,600 2,241,600
2028-2032 4,615,000 6,605,000 11,220,000
2033-2037 5,630,000 5,589,175 11,219,175
2038-2042 6,650,000 4,576,500 11,226,500
2043-2047 7,720,000 3,500,700 11,220,700
2048-2052 8,970,000 2,251,050 11,221,050
2053-2057 10,415,000 799,875 11,214,875
Total 47,080,000$ 30,749,400$ 77,829,400$
C. Debt without Government Commitment
Community Facilities District No. 2000-1, Highway 152, Special Tax Bonds
In December 2002, Community Facilities District No. 2000-1 pursuant to Mello-Roos Community Facilities Act
of 1982, issued $7,185,000 of Special Tax Bonds to finance the costs associated with the construction of public
facilities for interchange improvements at State Highway 152 and U.S. Highway 101 and for widening and
improving Highway 152.
In September 2006, Community Facilities District No. 2000-1 pursuant to Mello-Roos Community Facilities Act
of 1982, issued $8,670,000 of Special Tax Bonds to finance the costs associated with the construction of public
facilities for interchange improvements at State Highway 152 and U.S. Highway 101 and for the widening and
improving Highway 152.
These bonds were refunded in July 2018 with proceeds from the issuance in a private placement of Community
Facilities District No. 2000-1 (Highway 152) Special Tax Refunded Bonds, Series 2018 in the aggregate
principal amount of $7,815,860. These bonds do not constitute a debt or obligation of the City because they are
payable solely from the Special Tax revenue assessed on the underlying parcels. The City is not liable for
repayment but acts as an agent for the property owners in collecting the assessments, forwarding the collections
to bondholders, and initiating foreclosure proceedings, if appropriate. The outstanding principal balance as of
June 30, 2022 was $5,883,344
11.3
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
76
Note 11 – Defined Benefit Pension Plans (CalPERS)
A. Summary
The following is the summary of net pension liabilities and the related deferred outflows of resources and
deferred inflows of resources at June 30, 2022 and pension expenses for the year then ended:
Governmental Business-Type
Activities Activities Total
Deferred outflows of resources:
Pension contributions after measurement date:
Miscellaneous 2,825,981$ 1,277,374$ 4,103,355$
Safety 7,117,603 - 7,117,603
Total contributions after measurement date 9,943,584 1,277,374 11,220,958
Difference between expected and actual experience:
Miscellaneous 62,232 28,130 90,362
Safety 1,613,039 - 1,613,039
Total difference between expected and actual experience 1,675,271 28,130 1,703,401
Total deferred outflows of resources 11,618,855$ 1,305,504$ 12,924,359$
Aggregate net pension liabilities:
Miscellaneous 16,743,973$ 7,568,460$ 24,312,433$
Safety 36,390,895 - 36,390,895
Total aggregate net pension liabilities 53,134,868$ 7,568,460$ 60,703,328$
Deferred inflows of resources:
Difference between projected and actual earnings on plan
investments:
Miscellaneous 6,551,320 2,961,269 9,512,589
Safety 14,392,841 - 14,392,841
20,944,161 2,961,269 23,905,430
Difference between expected and actual experience:
Safety 170,876 - 170,876
Total difference between expected and actual experience 170,876 - 170,876
Total deferred inflows of resources 21,115,037$ 2,961,269$ 24,076,306$
Pension expense:
Miscellaneous 1,263,839$ 571,269$ 1,835,108$
Safety 4,224,295 - 4,224,295
Total net pension expense 5,488,134$ 571,269$ 6,059,403$
11.3
p. 375 of 530
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
77
Note 11 – Defined Benefit Pension Plans (CalPERS) (Continued)
B. General Information about the Pension Plans
Plan Descriptions
The City’s defined benefit pension plans provide retirement and disability benefits, annual cost-of-living
adjustments and death benefits to plan members and beneficiaries. The Plans are part of the Public Agency
portion of the California Public Employees Retirement System (CalPERS), an agent multiple-employer plan
administered by CalPERS, which acts as a common investment and administrative agent for participating public
employers within the State of California. A menu of benefit provisions as well as other requirements are
established by state statutes within the Public Employees’ Retirement Law.
The City selects optional benefit provisions from the benefit menu by contract with CalPERS and adopts those
benefits through City ordinance. CalPERS issues a separate annual comprehensive financial report. Copies of
CalPERS’s annual financial report may be obtained from the CalPERS Executive Office, 400 P Street,
Sacramento, CA 95814.
All full-time employees of the City are eligible to participate in the Plans. Part-time employees and temporary
employees who work an average of 20 hours per week and over 1,000 hours per year are also eligible to
participate. Upon 5 years of service, miscellaneous employees and public safety employees who retire at or after
age 50 are entitled to receive an annual retirement benefit.
The benefit is payable monthly for life, in an amount that varies from each Tier, of the employees’ single highest
year’s salary for each year of credited service. The Plans also provide death and disability benefits.
Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits
to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited
service, equal to one year of full-time employment. Members with five years of total service are eligible to retire
at age 50 to 62 with statutorily reduced benefits. For employees hired into a plan with the 1.5% at 65 formula,
eligibility for service retirement is age 55 with at least five years of services. PEPRA miscellaneous members
become eligible for service retirement upon attainment of age 52 with at least five years of service. All members
are eligible for nonduty disability benefits after five years of service. The death benefit is one of the following:
the Basic Death Benefit, the 1957 Survivor Benefit or the Optional Settlement 2W Death Benefit.
Safety members can receive a special death benefit if the member dies while actively employed and the death is
job-related. Fire members may receive the alternate death benefit in lieu of the Basic Death Benefit or the 1957
Survivor Benefit if the member dies while actively employed and has at least 20 years of total CalPERS service.
The cost-of-living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.
11.3
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
78
Note 11 – Defined Benefit Pension Plans (CalPERS) (Continued)
B. General Information about the Pension Plans (Continued)
Benefits Provided (Continued)
The Plans’ provisions and benefits in effect at the measurement date of June 30, 2021 are summarized as
follows:
Hire date
Prior to
January 1, 2013
On or after
January 1, 2013
Benefit formula 2.5% @ 55 2% @ 62
Benefit vesting schedule 5 years of service 5 years of service
Benefit payments Monthly for life Monthly for life
Retirement age 50 52
Benefit per year of service, as a percentage of salary 2.0% to 3.0% 1.0% to 2.5%
Required employee contribution rates 8.000% 7.000%
Required contribution during measurement period 11.990% 11.990%
Hire Date
Prior to
January 5, 2011
Prior to
January 1, 2013
On or After
January 1, 2013
Benefit formula 3% @ 50 2% @ 50 2.7% @ 57
Benefit vesting schedule 3 years of service 3 years of service 3 years of service
Benefit payments Monthly for life Monthly for life Monthly for life
Retirement age 50-55 50-55 50-57
Benefit per year of service, as a percentage of salary 3.000% 2.00%-2.70% 2.00%-2.70%
Required employee contribution rates 9.000% 9.000% 13.000%
Required contribution during measurement period 20.620% 20.620% 20.620%
Hire Date
Prior to
January 5, 2011
Prior to
January 1, 2013
On or After
January 1, 2013
Benefit formula 3% @ 55 2% @ 55 2% @ 57
Benefit vesting schedule 3 years of service 3 years of service 3 years of service
Benefit payments Monthly for life Monthly for life Monthly for life
Retirement age 50-55 50-55 50-57
Benefit per year of service, as a percentage of salary 2.4%-3.0% 1.426%-2.0% 1.426%-2.0%
Required employee contribution rates 9.000% 7.000% 10.500%
Required contribution during measurement period 20.620% 20.620% 20.620%
Miscellaneous
Safety - Police
Safety - Fire
11.3
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
79
Note 11 – Defined Benefit Pension Plans (CalPERS) (Continued)
B. General Information about the Pension Plans (Continued)
Employees Covered
At the measurement date of June 30, 2021, the following employees were covered by the benefit terms for all
Plans:
Miscellaneous Safety
Active employees 160 100
Transferred and terminated employees 168 44
Retired Employees and Beneficiaries 238 143
Total 566 287
Contributions
Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution
rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July
1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’s annual
actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs
of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued
liability. The City is required to contribute the difference between the actuarially determined rate and the
contribution rate of employees. City contribution rates may change if plan contracts are amended. Payments
made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan
member contributions requirements are classified as plan member contributions.
C. Net Pension Liability
Actuarial Methods and Assumptions Used to Determine Total Pension Liability
The June 30, 2020 valuation was rolled forward to determine the June 30, 2021 total pension liability, based on
the following actuarial methods and assumptions:
Actuarial Cost Method
Actuarial Assumptions:
Discount Rate
Inflation
Salary Increases
Mortality Rate Table1
Post Retirement Benefit Increase
Entry Age Normal in accordance with the requirement of GASB
Statement No. 68
7.15%
2.50%
Varies by Entry Age and Service
1The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2017
CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of
projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries. For more details on this table,
please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from December 2017 that can be found
on the CalPERS website.
Derived using CalPERS’ membership data for all funds.
The lesser of contract COLA or 2.50% until Purchasing Power
Protection Allowance floor on purchasing power applies, 2.50%
thereafter
11.3
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
80
Note 11 – Defined Benefit Pension Plans (CalPERS) (Continued)
C. Net Pension Liability (Continued)
Long-Term Expected Rate of Return
The long-term expected rate of return on pension plan investments was determined using a building-block
method in which expected future real rates of return (expected returns, net of pension plan investment expense
and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term
market return expectations as well as the expected pension fund cash flows. Using historical returns of all the
funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years)
and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both
short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return
was set by calculating the rounded single equivalent expected return that arrived at the same present value of
benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of
return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed
administrative expenses.
The expected real rates of return by asset class are as follows:
Current Target Real Return Real Return
Asset Class1 Allocation Years 1 - 102 Years 11+3
Global equity 50.00% 4.80% 5.98%
Fixed income 28.00% 1.00% 2.62%
Inflation assets 0.00% 0.77% 1.81%
Private equity 8.00% 6.30% 7.23%
Real assets 13.00% 3.75% 4.93%
Liquidity 1.00% 0.00% -0.92%
2 An expected inflation of 2.0% used
3 An expected inflation of 2.92% used
1 In the CalPER's ACFR, Fixed Income is included in Global Debt Securities; Liquidity is included in Short-term Investments;
Inflation Assets are included in both Global Equity Securities and Global Debt Securities.
Discount Rate
The discount rate used to measure the total pension liability was 7.15%. The projection of cash flows used to
determine the discount rate assumed that contributions from plan members will be made at the current member
contribution rates and that contributions from employers will be made at statutorily required rates, actuarially
determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all
projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on
plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
Subsequent Events
There were no subsequent events that would materially affect the results in this disclosure.
11.3
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
81
Note 11 – Defined Benefit Pension Plans (CalPERS) (Continued)
D. Changes in the Net Pension Liability
The following table shows the changes in net pension liability for the City’s miscellaneous plan recognized over
the measurement period.
Total Pension Plan Fiduciary Net Net Pension
Liability Position Liability/(Asset)
(a) (b) (c) = (a) - (b)
Balance at June 30, 2020 (Valuation Date) 121,160,497$ 84,156,723$ 37,003,774$
Changes Recognized for the Measurement Period:
Service cost 2,545,114 - 2,545,114
Interest on the total pension liability 8,496,663 - 8,496,663
Difference between expected and actual experience (176,531) - (176,531)
Contributions from the employer - 3,772,061 (3,772,061)
Contributions from employees - 914,541 (914,541)
Net investment income - 18,954,052 (18,954,052)
Benefit payments, including refunds of employee
contributions (6,844,176) (6,844,176) -
Administrative expenses - (84,067) 84,067
Net changes during July 1, 2020 to June 30, 2021 4,021,070 16,712,411 (12,691,341)
Balance at June 30, 2021 (Measurement Date) 125,181,567$ 100,869,134$ 24,312,433$
Increase (Decrease)
Miscellaneous Plan
Total Pension Plan Fiduciary Net Net Pension
Liability Position Liability/(Asset)
(a) (b) (c) = (a) - (b)
Balance at June 30, 2020 (Valuation Date) 179,952,020$ 125,905,286$ 54,046,734$
Changes Recognized for the Measurement Period:
Service cost 3,976,010 - 3,976,010
Interest on the total pension liability 12,848,427 - 12,848,427
Difference between expected and actual experience 2,169,260 - 2,169,260
Plan to plan resource movement - - -
Contributions from the employer - 6,718,586 (6,718,586)
Contributions from employees - 1,307,559 (1,307,559)
Net investment income - 28,749,163 (28,749,163)
Benefit payments, including refunds of employee
contributions (8,821,983) (8,821,983) -
Administrative expenses - (125,772) 125,772
Net changes during July 1, 2020 to June 30, 2021 10,171,714 27,827,553 (17,655,839)
Balance at June 30, 2021 (Measurement Date) 190,123,734$ 153,732,839$ 36,390,895$
Safety
Increase (Decrease)
11.3
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
82
Note 11 – Defined Benefit Pension Plans (CalPERS) (Continued)
D. Changes in the Net Pension Liability (Continued)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liability of the City for all Plans, calculated using the discount rate for
each Plan, as well as what the City’s net pension liability would be if it were calculated using a discount rate that
is one percentage point lower or one percentage point higher than the current rate:
Discount Rate Current Discount Discount Rate
- 1% (6.15%) Rate (7.15%) + 1% (8.15%)
Miscellaneous Plan 39,544,517$ 24,312,433$ 11,606,354$
Safety Plan 61,572,493$ 36,390,895$ 15,579,291$
Plan's Net Pension Liability/(Asset)
Pension Plans Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in the separately issued
CalPERS financial reports.
E. Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions
For the year ended June 30, 2022, the City recognized pension expense in the amounts of $1,835,108 and
$4,224,295 for the miscellaneous plan and safety plan, respectively.
As of measurement date of June 30, 2021, the City has deferred outflows and deferred inflows of resources
related to pensions as follows:
Deferred outflows Deferred inflows
of Resources of Resources
Contributions made after the measurement date 4,103,355$ -$
Difference between expected and actual experience 90,362 -
Net difference between projected and actual earning on
pension plan investments - (9,512,589)
Total 4,193,717$ (9,512,589)$
Miscellaneous Plan
Deferred outflows Deferred inflows
of Resources of Resources
Contributions made after the measurement date 7,117,603$ -$
Difference between expected and actual experience 1,613,039 (170,876)
Net difference between projected and actual earnings
on pension plan investments - (14,392,841)
Total 8,730,642$ (14,563,717)$
Safety Plan
11.3
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
83
Note 11 – Defined Benefit Pension Plans (CalPERS) (Continued)
E. Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
The $4,103,355 reported in the Miscellaneous Plans and $7,117,603 reported in the Safety Plans as deferred
outflows of resources related to contributions subsequent to the measurement date will be recognized as a
reduction of the net pension liability in the year ending June 30, 2023. Other amounts reported as deferred
outflows of resources and deferred inflows of resources related to pensions will be recognized as pension
expense as follows:
Measurement
Period Miscellaneous Safety
Ending June 30 Plan Plan
2022 (2,273,688)$ (3,226,576)$
2023 (2,270,779) (2,804,598)
2024 (2,271,659) (2,963,184)
2025 (2,606,101) (3,956,320)
(9,422,227)$ (12,950,678)$
Deferred Outflows/(Inflows)
of Resources
Note 12 – Other Postemployment Benefits (OPEB)
Governmental Business-Type
Activities Activities Total
Deferred outflows of resources:
Employer contributions made
subsequent to the measurement date 428,368$ 87,117$ 515,485$
Changes in assumption 2,178,193 442,978 2,621,171
Total deferred outflows of resources 2,606,561$ 530,095$ 3,136,656$
Total OPEB liability 14,978,632$ 3,046,196$ 18,024,828$
Total OPEB liability 14,978,632$ 3,046,196$ 18,024,828$
Deferred inflows of Resources:
Change in assumption 1,075,813$ 218,787$ 1,294,600$
Difference between expected and actual experience 1,584,300 322,198 1,906,498
Total deferred inflows of resources 2,660,113$ 540,985$ 3,201,098$
OPEB Expense 1,137,962$ 231,427$ 1,369,389$
Plan Description
The City’s Retiree Healthcare Plan (Plan) is a single-employer defined benefit healthcare plan administered by the
City. The plan provides healthcare benefits to eligible retirees and their dependents through the California Public
Employee’s Retirement System healthcare program (PEMHCA) and a post-employment retention/recognition
incentive benefit program (RRIB) which requires proof of medical coverage. Benefit provisions are established and
may be amended through agreements and memorandums of understanding between the City, its management
employees and unions representing City employees.
11.3
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
84
Note 12 – Other Postemployment Benefits (Continued)
Plan Description (Continued)
For all retirees under the plan, the City contributes the PEMHCA minimum contribution on the unequal method for
eligible retirees and surviving spouses. The PEMHCA minimum amount is $143 in 2021 and $149 in 2022. No
dental, vision or life insurance benefits are provided.
The RRIB incentive benefit is for certain bargaining units’ retirees that retired prior to July 1, 2014 (police and fire
employees), July 1, 2015 (management employees) or November 1, 2015 (AFSCME, miscellaneous employees).
Prior employees that retired on or before these dates and were fifty (50) or more years of age (police and fire
employees) or fifty-five (55) or more years of age (AFSCME and management employees) and previously retired
from City service with a minimum of fifteen (15) years of service with the City are eligible to receive this
postretirement benefit until reaching the age of sixty-five (65). Additional tiers of years of service were added to the
plan to qualify for benefits. This supplemental pension plan has been discontinued for new participants after the dates
noted above.
The employer contribution under RRIB provides a temporary monthly annuity (to age 65) up to $300 per month
based on service at retirement to eligible retirees. All classes of employees are covered, if eligible.
The City offers a Health Reimbursement Plan (PEMHCA) for new retirees after the dates noted above.
No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement 75. The plan does not
issue a separate report.
Employees Covered
At the measurement date of June 30, 2021, the following current and former employees were covered by the benefit
terms under the plan:
Active plan members 220
Retirees 235
Total 455
Total OPEB Liability
The City’s OPEB liability of $18,024,828 was measured as of June 30, 2021 and was determined by an actuarial
valuation as of June 30, 2020 rolled forward to 2021 using standard update procedures. The OPEB liability from the
governmental activities is primarily liquidated from the general fund.
11.3
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
85
Note 12 – Other Postemployment Benefits (Continued)
Actuarial Assumptions and Other Inputs
The total OPEB liability as of June 30, 2020 actuarial valuation was determined using the following actuarial
assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified:
Actuarial Valuation Date June 30, 2020
Contribution Policy No pre-funding
Discount Rate 2.19%
Inflation 2.50% annually
Salary Increase 2.80% wage inflation plus seniority, merit, and promotional salary
increases based on CalPERS Experience Study and Review of
Actuarial Assumptions published in November 2021
Mortality Improvement Scale Modified projected fully generational with Scale MP-2019
Healthcare Trend Rate Based on 2021 Getzen model that reflects actual premium increases
from 2021 to 20223 followed by 5.75% decreasing gradually to an
ultimate rate of 4.04% by 2075
Changes in total OPEB Liability
The change in total OPEB liability are as follows:
Total OPEB
Liability
Balance at June 30, 2021 (Valuation Date) 18,751,804$
Changes Recognized for the Measurement Period:
Service Cost 1,252,941
Interest on the total OPEB liability 435,960
Changes in assumptions (724,033)
Difference between expected
and actual experience (1,132,716)
Benefit payments (559,128)
Net Changes during July 1, 2020 to June 30, 2021 (726,976)
Balance at June 30, 2021 (Measurement Date) 18,024,828$
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate
The following presents the total OPEB liability of the City, calculated using the discount rate for the Plan, as well as
what the City’s total OPEB liability would be if it were calculated using a discount rate that is one percentage point
lower or one percentage point higher than the current rate:
Discount Rate - 1% Current Discount Discount Rate + 1%
Rate (1.19%) Rate (2.19%) Rate (3.19%)
20,990,476$ 18,024,828$ 15,650,491$
Plan's Total OPEB Liability
11.3
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
86
Note 12 – Other Postemployment Benefits (Continued)
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate (Continued)
The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if
it were calculated using healthcare cost trend rates that are one percentage point lower or one percentage point higher)
than the current healthcare cost trend rates:
Healthcare Cost
Trend Rates
-1% (7.5% - 8.4%) 1%
15,433,079$ 18,024,828$ 21,350,999$
Plan's Total OPEB Liability
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB
For the year ended June 30, 2022, the City recognized OPEB expense of $1,369,389. At June 30, 2022, the City
reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following
sources:
Deferred outflows Deferred inflows
of Resources of Resources
Difference between expected and actual experience -$ (1,906,498)$
Changes in assumptions 2,621,171 (1,294,600)
Employer contributions made
subsequent to the measurement date 515,485 -
Total 3,136,656$ (3,201,098)$
The $515,485 reported as deferred outflows of resources related to contributions subsequent to the measurement date
will be recognized as a reduction of the OPEB liability in the year ending June 30, 2023. The change in assumptions
was due to the change in discount rate to 2.19% from 2.21% for the June 30, 2021 measurement date and is
amortized over the average expected remaining service lives.
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be
recognized in OPEB expense as follows:
Measurement Period Deferred Outflows/
Ended June 30 (Inflows) of Resources
2022 (319,512)$
2023 (232,512)
2024 (39,512)
2025 43,536
2026 187,995
Thereafter (219,922)
(579,927)$
11.3
p. 385 of 530
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
87
Note 13 – Claims Payable
The workers’ compensation and general liability claims administrators have estimated liabilities for probable future
payments relating to claims outstanding as of June 30, 2022 in the following amounts which are recorded in separate
internal service funds:
Worker' compensation claims 6,669,000$
General liability claims 2,022,284
Total claims payable 8,691,284$
Although the eventual outcome of these claims is uncertain, in the opinion of management, the resolution of these
matters is not expected to have a material adverse effect on the financial condition of the City, beyond the provision
for losses reflected in the recorded claims payable liabilities.
Changes in claims payable for workers’ compensation for the past three fiscal years are as follows:
Current Year Amounts
Beginning Claims and End Amounts Due in
of Year Changes in Claim of Year Due within more than
Workers' Compensation Liability Estimates Payments Liability One Year One Year
2019-2020 3,254,870$ 70,329 (392,803) 2,932,396$ 792,000$ 2,140,396$
2020-2021 2,932,396 2,058,195 (1,397,737) 3,592,854 970,000 2,622,854
2021-2022 3,592,854 3,863,535 (787,389) 6,669,000 1,062,000 5,607,000
Changes in claims payable for general liability for the past three fiscal years are as follows:
Current Year Amounts
Beginning Claims and End Amounts Due in
of Year Changes in Claim of Year Due within more than
General Liability Liability Estimates Payments Liability One Year One Year
2019-2020 609,953$ 525,681$ (445,585)$ 690,049$ 117,000$ 573,049$
2020-2021 690,049 4,456,029 (2,380,120) 2,765,958 470,000 2,295,958
2021-2022 2,765,958 (322,612) (421,062) 2,022,284 634,997 1,387,287
Note 14 – Risk Management
Bodily injury, property damage and public officials’ errors and omissions insurance is provided via participation in a
joint power’s authority. Effective July 1, 2015, the City is a member of the Municipal Pooling Authority (MPA), a
joint powers authority established pursuant to California Government Code Sections 990.4-990.8 and 6500, et seq.
The pool has 20 member cities. The City is insured by the MPA for up to $29,000,000 per claim for liability
coverage, including $28,000,000 provided by an excess policy with the California Affiliated Risk Management
Authority, after a deductible of $50,000 which is paid by the City. Premiums paid by the participating members may
be retrospectively increased or decreased to reflect the actual operating costs of MPA and the City’s share of incurred
losses. The City is contingently liable for assessments which may be made by MPA in the event that MPA has
insufficient resources to pay unexpectedly large claims.
11.3
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
88
Note 14 – Risk Management (Continued)
The City is self-insured for the first $500,000 of each workers’ compensation claim. The City belongs to the Local
Agency Workers’ Compensation Excess (LAWCX) joint powers authority, established pursuant to California
Government Code Sections 990.4-990.8 and 6500 et seq., for the purpose of workers’ compensation excess coverage.
LAWCX coverage is for individual workers’ compensation claims in excess of $500,000 up to $5,000,000. In
addition, additional excess coverage beyond $5,000,000 is purchased via California State Association of Counties
Excess Insurance Authority (CSAC EIA) bringing statutory coverage to $50,000,000.
Note 15 – Commitments and Contingencies
The City had the following commitments outstanding as of June 30, 2022:
Name of Project
Outstanding
Amount
Enterprise Resource Planning (ERP) and Permitting Software
Systems and Implementation Services 543,287$
10th Street and Uvas Creek Bridge Design Services 539,156
McCarthy Well Project - Design and Construction Engineering
Services 527,729
RIMS Public Safety Dispartch Software 527,462
Housing Element Update 211,460
City Hall Backup Generator Project 295,810
Citywide Ravement Rehab Project 4,518,787
Downtwon Gourmet Parking Lot Project 2,310,000
Vactor Truck for Public Works 594,156
10,067,847$
Under the terms of federal, county, and state grants, periodic audits are required, and certain costs may be questioned
as not appropriate expenditures under the terms of the grants. Such audits could lead to reimbursements to the grantor
agencies. If expenditures were disallowed, the City believes such disallowances, if any, would be immaterial.
The City is a defendant in certain legal claims and actions arising from the normal course of operations. In the
opinion of management and legal counsel, such claims and actions will not have a material adverse effect on the
City’s financial position.
Gilroy Garlic Festival
On July 28, 2019, the Gilroy Garlic Festival, held at Christmas Hill Park, was the site of an unexpected and random
shooting. The gunman killed himself, three others and wounded 17 people. The City has been named as a party in
litigation lawsuits against the Gilroy Garlic Festival Association responsible for organizing the festival. Currently,
the Gilroy Garlic Festival Association’s insurance is covering all legal costs. The City may incur additional financial
impacts as a result of this event. At this time, the extent of those impact is unknown as it is too early in the case to
make those determinations.
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
89
Note 15 – Commitments and Contingencies (Continued)
October 2021 Halloween Incident.
The City has received several government claims which arise out of a shooting that occurred in the early morning of
October 30, 2021 during a Halloween party at Gilroy City Councilmember Rebecca Armendariz’s residence. The
City of Gilroy had no involvement in the private Halloween party. The claims have been submitted by the family
members of two individuals who died as a result of the shooting. Two lawsuits have been filed naming the City as a
defendant. Only one lawsuit has been served on the City. Both lawsuit’s theory of liability against the City appears to
be primarily that the City is vicariously liable for Councilmember Armendariz’s involvement in hosting the
Halloween party.
Business-Type Activities Delinquencies
The City provides water and sewer utility services. Since the onset of the pandemic in 2020, Governor Gavin
Newsom issued executive orders instituting moratorium on shutting off water services for delinquent/non-payment
accounts. Subsequent legislation enacted in September 2021 extended that moratorium through December 31, 2021.
The City’s water and sewer utilities currently have estimated $900,000 in delinquent accounts. The City is currently
offering its delinquent customers a payment arrangement plan and will continue its collection efforts. In addition,
State Water Resources Control Board of California has instituted a water and wastewater arrearage payment program
to provide relief to community water and wastewater systems for unpaid bills related to the pandemic.
Note 16 – Net Investment in Capital Assets
The following is the calculation of net investment in capital assets at June 30, 2022:
Governmental Business-Type
Activities Activities DCU
Capital assets, net of accumulated depreciation 202,815,159$ 83,970,716$ 111,561,190$
Investment with fiscal related to debt services 921,030 44,512,120 -
Less: oustanding principal on capital related debts (53,745,434) (49,520,000) -
Less: bond premium (2,911,561) (5,573,508) -
Net investment in capital assets 147,079,194$ 73,389,328$ 111,561,190
DCU share in net investment in capital assets 46,744,139
City share in net investment in capital assets 64,817,051$
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
90
Note 17 – Classification of Fund Balances
Public Facilities Nonmajor
General Impact Capital Governmental
Fund Projects Fund Funds Total
Nonspendable:
Prepaid items 739$ -$ -$ 739$
Subtotal 739 - - 739
Restricted:
General capital projects - 30,550 5,221,206 5,251,756
PARS 1,983,396 - - 1,983,396
Public safety - - 591,293 591,293
Street maintenance - - 6,766,785 6,766,785
Grant programs - - 1,852,437 1,852,437
Housing - - 2,909,959 2,909,959
Traffic impact - - 17,488,071 17,488,071
Sewer development - - 16,063,074 16,063,074
Water development - - 6,053,344 6,053,344
Storm drains - - 2,091,686 2,091,686
Community
development - - 4,918,073 4,918,073
Debt service - - 3,009,159 3,009,159
Museum - - 10,492 10,492
City poor assistance - - 15,053 15,053
Land held for resale - - 706,754 706,754
Subtotal 1,983,396 30,550 67,697,386 69,711,332
Commited:
Ecomonic stability reserve 5,572,376 - - 5,572,376
Subtotal 5,572,376 - - 5,572,376
Assigned:
Capital projects - - 5,494,298 5,494,298
Subtotal - - 5,494,298 5,494,298
Unassigned (deficit) 30,349,205 - - 30,349,205
Total 37,905,716$ 30,550$ 73,191,684$ 111,127,950$
General Fund Balance Policy
The City’s general fund reserve policy consists of an unrestricted General Fund Reserve of 20% of general fund
expenditures and an Economic Stability Reserve of 10% of general fund expenditures. The Economic Stability
Reserve would only be used in extraordinary circumstances, upon satisfaction of one of the following “economic
triggers” and with the majority vote of the City Council: (i) state take-away of significant revenue; (ii) large drop in
property taxes (decrease in assessed valuations), (iii) major business closures (sales tax and/or utility users’ tax
impact); (iv) dramatic drop in development from projections; (v) large unexpected drop in sales taxes (or other
primary revenues - utility users’ tax, franchise fees or transient occupancy tax) due to severe recession or (vi) the
economic triggers cause the General Fund Reserve to fall below a predetermined percentage of expenditures (e.g.
20%). In the event the Economic Stability Reserve is used, the City is obligated to replenish the reserve by the end of
the next biennial budget to 10% of the general fund expenditures for the given year.
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
91
Note 18 – Subsequent Event
Land held for Sale
The City currently owns Cherry Blossom Apartments which consists of seven residential units and 3 units,
approximately 3,100 square feet, of retail space on the first floor. The City has received interest from developer(s) to
purchase and develop the property. In January 2023, the City declared the property as surplus, pursuant to Surplus
Lands Act (SLA). The purpose of the SLA is to promote affordable housing development on unused or underutilized
public land throughout the state of California.
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REQUIRED SUPPLEMENTARY INFORMATION
(UNAUDITED)
93
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Measurement period 2020-21 2019-20 2018-19 2017-18 2016-17
Total pension liability
Service cost 2,545,114$ 2,360,748$ 2,218,281$ 2,107,888$ 2,119,709$
Interest 8,496,663 8,220,201 7,888,537 7,397,421 7,057,333
Changes of benefit terms - - - - -
Changes of assumptions - - - (870,201) 5,558,063
Differences between expected and actual experience (176,531) 670,381 3,067,906 1,618,519 (2,724,046)
Benefit payments, including refunds of employee
contributions (6,844,176) (6,415,856) (6,003,668) (5,515,662) (4,810,256)
Net change in total pension liability 4,021,070 4,835,474 7,171,056 4,737,965 7,200,803
Total pension liability - beginning 121,160,497 116,325,023 109,153,967 104,416,002 97,215,199
Total pension liability - ending (a)125,181,567$ 121,160,497$ 116,325,023$ 109,153,967$ 104,416,002$
Pension fiduciary net position
Contributions - employer 3,772,061$ 3,645,000$ 3,254,181$ 2,796,490$ 2,535,645$
Contributions - employee 914,541 1,076,549 992,926 1,003,145 888,342
Net investment income 18,954,052 4,099,977 5,226,520 6,275,073 7,621,577
Benefit payments, including refunds of employee
contributions (6,844,176) (6,415,856) (6,003,668) (5,515,662) (4,810,256)
Plan to plan resource movement - 1,029 - (182) -
Administrative expense2 (84,067) (115,410) (55,985) (115,667) (100,535)
Other Miscellaneous Income/(Expense)1 - - 182 (219,654) -
Net change in plan fiduciary net position 16,712,411 2,291,289 3,414,156 4,223,543 6,134,773
Plan fiduciary net position - beginning 3 84,156,723 81,865,434 78,451,278 74,227,735 68,092,962
Plan fiduciary net position - ending (b)100,869,134$ 84,156,723$ 81,865,434$ 78,451,278$ 74,227,735$
Plan net pension liability - ending (a) - (b)24,312,433$ 37,003,774$ 34,459,589$ 30,702,689$ 30,188,267$
Plan fiduciary net position as a percentage 80.58% 69.46% 70.38% 71.87% 71.09%
of the total pension liability
Covered payroll3 14,371,056$ 13,093,445$ 12,003,033$ 11,457,160$ 10,902,171$
Plan net pension liability as a percentage of covered
payroll 169.18% 282.61% 287.09% 267.98% 276.90%
Notes to Schedule:
Changes of Assumptions: None in 2019, 2020 and 2021. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS
Experience Study and Review of Actuarial Assumption December 2017. There were no changes in the discount rate. In 2017, the accounting discount rate reduced
from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of
administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense.) In 2014, amounts reported were based on the 7.5 percent
discount rate.
California Public Employees' Retirement System Defined Pension Plan - Miscellaneous Plan
1 Historical information is presented only for measurement periods for which GASB 68 is applicable.
2 Includes any beginning of year adjustment.
Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2017 valuation
date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).
3 Includes one year’s payroll growth using 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-22; 3.00 percent payroll growth assumption
for fiscal years ended June 30, 2014-17.
City of Gilroy
Required Supplementary Information (Unaudited)
Schedule of Changes in the Net Pension Liability and Related Ratios
For the Year Ended June 30, 2022
Last Ten Fiscal Years
94
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Measurement period 2015-16 2014-15
2013-141
Total pension liability
Service cost 1,974,107$ 1,914,477$ 1,886,470$
Interest 6,992,371 6,720,915 6,378,166
Changes of benefit terms - - -
Changes of assumptions - (1,563,145) -
Differences between expected and actual experience (878,722) 67,994 -
Benefit payments, including refunds of employee
contributions (4,335,513) (4,140,599) (3,800,609)
Net change in total pension liability 3,752,243 2,999,642 4,464,027
Total pension liability - beginning 93,462,956 90,463,314 85,999,287
Total pension liability - ending (a)97,215,199$ 93,462,956$ 90,463,314$
Pension fiduciary net position
Contributions - employer 2,448,744$ 2,236,836$ 2,105,469$
Contributions - employee 895,816 894,531 978,326
Net investment income 355,337 1,523,463 10,200,504
Benefit payments, including refunds of employee
contributions (4,335,513) (4,140,599) (3,800,609)
Plan to plan resource movement - - -
Administrative expense2 (41,912) (77,393) -
Other Miscellaneous Income/(Expense)1 - - -
Net change in plan fiduciary net position (677,528) 436,838 9,483,690
Plan fiduciary net position - beginning 3 68,770,490 68,333,652 58,849,962
Plan fiduciary net position - ending (b)68,092,962$ 68,770,490$ 68,333,652$
Plan net pension liability - ending (a) - (b)29,122,237$ 24,692,466$ 22,129,662$
Plan fiduciary net position as a percentage 70.04% 73.58% 75.54%
of the total pension liability
Covered payroll3 11,189,178$ 10,920,524$ 10,072,452$
Plan net pension liability as a percentage of covered
payroll 260.27% 226.11% 219.70%
Notes to Schedule:
City of Gilroy
Required Supplementary Information (Unaudited)
Schedule of Changes in the Net Pension Liability and Related Ratios (Continued)
For the Year Ended June 30, 2022
Last Ten Fiscal Years
Changes of Assumptions: None in 2019, 2020 and 2021. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS
Experience Study and Review of Actuarial Assumption December 2017. There were no changes in the discount rate. In 2017, the accounting discount rate reduced
from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of
administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense.) In 2014, amounts reported were based on the 7.5 percent
discount rate.
California Public Employees' Retirement System Defined Pension Plan - Miscellaneous Plan
1 Historical information is presented only for measurement periods for which GASB 68 is applicable.
2 Includes any beginning of year adjustment.
3 Includes one year’s payroll growth using 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-22; 3.00 percent payroll growth assumption
for fiscal years ended June 30, 2014-17.
Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2017 valuation
date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).
95
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Measurement period 2020-21 2019-20 2018-19 2017-18 2016-17
Total pension liability
Service cost 3,976,010$ 4,116,535$ 4,001,654$ 3,782,506$ 3,795,030$
Interest 12,848,427 12,139,906 11,586,454 11,090,179 10,658,420
Changes of benefit terms - - - - -
Changes of assumptions - - - (633,599) 9,024,447
Differences between expected and actual experience 2,169,260 (85,114) (560,783) (600,354) (1,138,485)
Benefit payments, including refunds of employee contributions (8,821,983) (8,070,115) (7,569,570) (7,391,540) (6,957,768)
Net change in total pension liability 10,171,714 8,101,212 7,457,755 6,247,192 15,381,644
Total pension liability - beginning 179,952,020 171,850,808 164,393,053 158,145,861 142,764,217
Total pension liability - ending (a)190,123,734$ 179,952,020$ 171,850,808$ 164,393,053$ 158,145,861$
Pension fiduciary net position
Contributions - employer 6,718,586$ 6,320,224$ 5,572,994$ 4,906,333$ 4,528,260$
Contributions - employee 1,307,559 1,575,349 1,245,565 1,196,981 1,157,337
Net investment income 28,749,163 6,112,651 7,469,298 8,983,812 10,785,793
Benefit payments, including refunds of employee contributions (8,821,983) (8,070,115) (7,569,570) (7,391,540) (6,957,768)
Plan to plan resource movement - (1,029) - (263) -
Administrative expense2 (125,772) (169,364) (80,996) (165,621) (143,087)
Other Miscellaneous Income/(Expense)1 - - 263 (314,517) -
Net change in plan fiduciary net position 27,827,553 5,767,716 6,637,554 7,215,185 9,370,535
Plan fiduciary net position - beginning 3 125,905,286 120,137,570 113,500,016 106,284,831 96,914,296
Plan fiduciary net position - ending (b)153,732,839$ 125,905,286$ 120,137,570$ 113,500,016$ 106,284,831$
Plan net pension liability - ending (a) - (b)36,390,895$ 54,046,734$ 51,713,238$ 50,893,037$ 51,861,030$
Plan fiduciary net position as a percentage 80.86% 69.97% 69.91% 69.04% 67.21%
of the total pension liability
Covered payroll3 13,936,242$ 14,083,254$ 13,479,938$ 12,879,248$ 12,700,905$
Plan net pension liability as a percentage of covered payroll 261.12% 383.77% 383.63% 395.16% 408.33%
Notes to Schedule:
2 Includes any beginning of year adjustment.
3 Includes one year’s payroll growth using 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-22; 3.00 percent payroll growth assumption
for fiscal years ended June 30, 2014-17.
Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2017 valuation
date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).
Changes of Assumptions: None in 2019, 2020 or 2021. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS
Experience Study and Review of Actuarial Assumption December 2017. There were no changes in the discount rate. In 2017, the accounting discount rate reduced
from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of
administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense.) In 2014, amounts reported were based on the 7.5 percent
discount rate.
City of Gilroy
Required Supplementary Information (Unaudited)
Schedule of Changes in the Net Pension Liability and Related Ratios (Continued)
For the Year Ended June 30, 2022
Last Ten Fiscal Years
California Public Employees' Retirement System Defined Pension Plan - Safety Plan
1 Historical information is presented only for measurement periods for which GASB 68 is applicable.
96
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Measurement period 2015-16 2014-15
2013-141
Total pension liability
Service cost 3,436,724$ 3,251,786$ 3,441,840$
Interest 10,258,316 9,778,748 9,235,218
Changes of benefit terms - - -
Changes of assumptions - (2,444,546) -
Differences between expected and actual experience (557,694) 437,762 -
Benefit payments, including refunds of employee contributions (6,616,198) (5,976,690) (5,792,746)
Net change in total pension liability 6,521,148 5,047,060 6,884,312
Total pension liability - beginning 136,243,069 131,196,009 124,311,697
Total pension liability - ending (a)142,764,217$ 136,243,069$ 131,196,009$
Pension fiduciary net position
Contributions - employer 4,131,687$ 3,911,991$ 3,844,918$
Contributions - employee 1,130,369 1,106,970 1,082,775
Net investment income 541,083 2,139,791 14,460,928
Benefit payments, including refunds of employee contributions (6,616,198) (5,976,690) (5,792,746)
Plan to plan resource movement - - -
Administrative expense2 (59,596) (110,062) -
Other Miscellaneous Income/(Expense)1 - - -
Net change in plan fiduciary net position (872,655) 1,072,000 13,595,875
Plan fiduciary net position - beginning 3 97,786,951 96,714,951 83,119,076
Plan fiduciary net position - ending (b)96,914,296$ 97,786,951$ 96,714,951$
Plan net pension liability - ending (a) - (b)45,849,921$ 38,456,118$ 34,481,058$
Plan fiduciary net position as a percentage 67.88% 71.77%73.72%
of the total pension liability
Covered payroll3 12,637,804$ 12,055,260$ 12,092,757$
Plan net pension liability as a percentage of covered payroll 362.80% 319.00% 285.14%
Notes to Schedule:
Changes of Assumptions: None in 2019, 2020 or 2021. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS
Experience Study and Review of Actuarial Assumption December 2017. There were no changes in the discount rate. In 2017, the accounting discount rate reduced
from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of
administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense.) In 2014, amounts reported were based on the 7.5 percent
discount rate.
California Public Employees' Retirement System Defined Pension Plan - Safety Plan
1 Historical information is presented only for measurement periods for which GASB 68 is applicable.
2 Includes any beginning of year adjustment.
3 Includes one year’s payroll growth using 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-22; 3.00 percent payroll growth assumption
for fiscal years ended June 30, 2014-17.
Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2017 valuation
date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).
City of Gilroy
Required Supplementary Information (Unaudited)
Schedule of Changes in the Net Pension Liability and Related Ratios (Continued)
For the Year Ended June 30, 2022
Last Ten Fiscal Years
97
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Fiscal Year End 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17
Actuarially determined contribution 4,103,355$ 3,772,061$ 3,645,000$ 3,254,181$ 2,796,490$ 2,535,645$
Contributions in relation to the actuarially
determined contribution2 (4,103,355) (3,772,061) (3,645,000) (3,254,181) (2,796,490) (2,535,645)
Contribution deficiency (excess) -$ -$ -$ -$ -$ -$
Covered payroll3 14,802,188$ 14,371,056$ 13,093,445$ 12,003,033$ 11,457,160$ 10,902,171$
Contributions as a percentage of covered
payroll3 27.72% 26.25% 27.84% 27.11% 24.41% 23.26%
Notes to Schedule:
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll
Asset valuation method Market value
Inflation 2.50%
Salary increases Varies by entry age and service
Payroll Growth 2.750%
Investment rate of return
Retirement age
Mortality
1 Historical information is presented only for measurement periods for which GASB 68 is applicable.
City of Gilroy
Required Supplementary Information (Unaudited)
Schedule of Plan Contributions - Pension
For the Year Ended June 30, 2022
Last Ten Fiscal Years
California Public Employees' Retirement System Defined Pension Plan - Miscellaneous
2 Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional
contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions.
3 Includes one year’s payroll growth using 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-21; 3.00 percent payroll growth assumption
for fiscal years ended June 30, 2014-17.
7.00% net of pension plan investment expenses; includes Inflation.
The probabilities of retirement are based on the 2017 CalPERS Experience study for
the period from 1997 to 2015.
The probabilities of mortality are based on the 2017 CalPERS Experience Study for
the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates
include 15 years of projected mortality improvement using 90% of Scale MP-2016
published by the Society of Actuaries
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2020-21 were derived from the June 30, 2018 funding
valuation report.
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Fiscal Year End 2015-16 2014-15
2013-14 1
Actuarially determined contribution 2,448,744$ 2,236,836$ 2,105,469$
Contributions in relation to the actuarially
determined contribution2 (2,448,744) (2,236,836) (2,105,469)
Contribution deficiency (excess)-$ -$ -$
Covered payroll3 11,189,178$ 10,920,524$ 10,072,452$
Contributions as a percentage of covered
payroll3 21.88% 20.48% 20.90%
Notes to Schedule:
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll
Asset valuation method Market value
Inflation 2.50%
Salary increases Varies by entry age and service
Payroll Growth 2.750%
Investment rate of return
Retirement age
Mortality
7.00% net of pension plan investment expenses; includes Inflation.
The probabilities of retirement are based on the 2017 CalPERS Experience study for
the period from 1997 to 2015.
The probabilities of mortality are based on the 2017 CalPERS Experience Study for
the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates
include 15 years of projected mortality improvement using 90% of Scale MP-2016
published by the Society of Actuaries
2 Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional
contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions.
3 Includes one year’s payroll growth using 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-21; 3.00 percent payroll growth assumption
for fiscal years ended June 30, 2014-17.
City of Gilroy
Required Supplementary Information (Unaudited)
Schedule of Plan Contributions - Pension (Continued)
For the Year Ended June 30, 2022
Last Ten Fiscal Years
California Public Employees' Retirement System Defined Pension Plan - Miscellaneous
1 Historical information is presented only for measurement periods for which GASB 68 is applicable.
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2019-20 were derived from the June 30, 2018 funding
valuation report.
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2021-22 2020-21 2019-20 2018-19
Actuarially determined contribution 7,117,603$ 6718586 6,320,224$ 5,572,994$
Contributions in relation to the actuarially
determined contribution2 (7,117,603) (6,718,586) (6,320,224) (5,572,994)
Contribution deficiency (excess) -$ -$ -$ -$
Covered payroll3 14,354,329$ 13,936,242$ 14,083,254$ 13,479,938$
Contributions as a percentage of covered
payroll3 49.59% 48.21% 44.88% 41.34%
Notes to Schedule:
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll
Asset valuation method Market value
Inflation 2.50%
Salary increases Varies by entry age and service
Payroll Growth 2.750%
Investment rate of return
Retirement age
Mortality
The probabilities of retirement are based on the 2017 CalPERS Experience study for
the period from 1997 to 2015.
The probabilities of mortality are based on the 2017 CalPERS Experience Study for
the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates
include 15 years of projected mortality improvement using 90% of Scale MP-2016
published by the Society of Actuaries.
7.00% net of pension plan investment expenses; includes Inflation.
3 Includes one year’s payroll growth using 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-19; 3.00 percent payroll growth assumption
for fiscal years ended June 30, 2014-17.
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2020-21 were derived from the June 30, 2018 funding
valuation report.
City of Gilroy
Required Supplementary Information (Unaudited)
Schedule of Plan Contributions - Pension (Continued)
For the Year Ended June 30, 2022
Last Ten Fiscal Years
California Public Employees' Retirement System Defined Pension Plan - Safety Plan
1 Historical information is presented only for measurement periods for which GASB 68 is applicable.
2 Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional
contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions.
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2017-18 2016-17 2015-16 2014-15
2013-14 1
Actuarially determined contribution 4,906,333$ 4,528,260$ 4,131,687$ 3,911,991$ 3,844,918$
Contributions in relation to the actuarially
determined contribution2 (4,906,333) (4,528,260) (4,131,687) (3,911,991) (3,844,918)
Contribution deficiency (excess) -$ -$ -$ -$ -$
Covered payroll3 12,879,248$ 12,700,905$ 12,637,804$ 12,055,260$ 12,092,757$
Contributions as a percentage of covered
payroll3 38.09% 35.65% 32.69% 32.45% 31.80%
Notes to Schedule:
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll
Asset valuation method Market value
Inflation 2.50%
Salary increases Varies by entry age and service
Payroll Growth 2.750%
Investment rate of return
Retirement age
Mortality
The probabilities of retirement are based on the 2017 CalPERS Experience study for
the period from 1997 to 2015.
The probabilities of mortality are based on the 2017 CalPERS Experience Study for
the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates
include 15 years of projected mortality improvement using 90% of Scale MP-2016
published by the Society of Actuaries.
2 Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional
contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions.
3 Includes one year’s payroll growth using 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-19; 3.00 percent payroll growth assumption
for fiscal years ended June 30, 2014-17.
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2020-21 were derived from the June 30, 2018 funding
valuation report.
7.00% net of pension plan investment expenses; includes Inflation.
City of Gilroy
Required Supplementary Information (Unaudited)
Schedule of Plan Contributions - Pension (Continued)
For the Year Ended June 30, 2022
Last Ten Fiscal Years
California Public Employees' Retirement System Defined Pension Plan - Safety Plan
1 Historical information is presented only for measurement periods for which GASB 68 is applicable.
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Measurement period 2020-21 2019-20
Total OPEB liability
Service cost 1,252,941$ 906,127$
Interest 435,960 533,762
Difference between expected vs actual experience (1,132,716) -
Changes of assumptions (724,033) 3,218,042
Benefit payments, including refunds of employee contributions (559,128) (500,729)
Net change in total OPEB liability (726,976) 4,157,202
Total OPEB liability - beginning 18,751,804 14,594,602
Total OPEB liability - ending (a)18,024,828$ 18,751,804$
Covered employee-payroll 3 23,024,828$ 28,912,941$
Plan OPEB liability as a percentage of covered payroll 78.28% 64.86%
Notes to Schedule:
Benefit Changes:
There were no changes in benefits.
Changes in Assumptions:
The discount rate for the June 30, 2017 measurement date was increased to 3.58% from 2.85%.
The discount rate for the June 30, 2018 measurement date was increased to 3.87% from 3.58%.
The discount rate for the June 30, 2019 measurement date was decreased to 3.50% from 3.87%.
The discount rate for the June 30, 2020 measurement date was decreased to 2.21% from 3.50%
The discount rate for the June 30, 2021 measurement date was decreased to 2.19% from 2.21%
Plan assets:
There are no plan assets accumulated in a trust that meets the criteria of GASB to pay related benefits for the OPEB plan.
Historical information is presented only for measurement periods for which GASB 75 is applicable.
For the Year Ended June 30, 2022
Schedule of Changes in the Net OPEB Liability and Related Ratios
Required Supplementary Information (Unaudited)
City of Gilroy
Other Post Employment Benefit Plan
Last Ten Fiscal Years
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Measurement period 2018-19 2017-18 2016-17
Total OPEB liability
Service cost 697,310$ 723,000$ 832,000$
Interest 594,793 546,000 463,000
Actual vs. expected experience (1,655,290) - -
Changes of assumptions 547,789 (625,000) (1,691,000)
Benefit payments, including refunds of employee contributions (524,000) (491,000) (479,000)
Net change in total OPEB liability (339,398) 153,000 (875,000)
Total OPEB liability - beginning 14,934,000 14,781,000 15,656,000
Total OPEB liability - ending (a)14,594,602$ 14,934,000$ 14,781,000$
Covered employee-payroll 3 29,906,910$ 27,610,000$ 26,626,000$
Plan OPEB liability as a percentage of covered payroll 48.80% 54.09% 55.51%
Notes to Schedule:
Benefit Changes:
There were no changes in benefits.
Changes in Assumptions:
The discount rate for the June 30, 2017 measurement date was increased to 3.58% from 2.85%.
The discount rate for the June 30, 2018 measurement date was increased to 3.87% from 3.58%.
The discount rate for the June 30, 2019 measurement date was decreased to 3.50% from 3.87%.
The discount rate for the June 30, 2020 measurement date was decreased to 2.21% from 3.50%
The discount rate for the June 30, 2021 measurement date was decreased to 2.19% from 2.21%
Plan assets:
There are no plan assets accumulated in a trust that meets the criteria of GASB to pay related benefits for the OPEB plan.
City of Gilroy
Required Supplementary Information (Unaudited)
Schedule of Changes in the Net OPEB Liability and Related Ratios (Continued)
For the Year Ended June 30, 2022
Last Ten Fiscal Years
Other Post Employment Benefit Plan
Historical information is presented only for measurement periods for which GASB 75 is applicable.
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Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Taxes:
Property taxes 16,805,600$ 16,805,600$ 17,894,048$ 1,088,448$
Sales tax 18,906,843 18,906,843 21,608,608 2,701,765
Transient occupancy tax 1,431,200 1,431,200 1,545,721 114,521
Utility taxes 4,237,220 4,237,220 5,488,491 1,251,271
Franchise taxes 1,753,800 1,753,800 1,874,046 120,246
Document transfer tax 520,000 520,000 618,818 98,818
Motor vehicle in lieu tax 32,534 32,534 65,386 32,852
Total taxes 43,687,197 43,687,197 49,095,118 5,407,921
Intergovernmental:
Grants 5,876,500 5,876,500 11,267,505 5,391,005
Total intergovernmental
Charges for Services:
Administrative charges 3,697,825 3,697,825 3,680,691 (17,134)
Plan checks and inspections 2,945,780 2,945,780 2,202,995 (742,785)
Special planning services 510,000 510,000 655,261 145,261
Special police services 54,122 54,122 20,070 (34,052)
Special fire services 200,000 200,000 182,349 (17,651)
Community recreation 504,157 504,157 639,265 135,108
Total charges for services 7,911,884 7,911,884 7,380,631 (531,253)
Licenses and Permits:
Business licenses 574,996 574,996 880,406 305,410
Hazardous material permits 210,000 210,000 151,535 (58,465)
Building permits 1,536,790 1,536,790 1,578,741 41,951
Other licenses and permits 49,276 49,276 61,504 12,228
Total licenses and permits 2,371,062 2,371,062 2,672,186 301,124
Fines:
Vehicle fines 83,526 83,526 79,849 (3,677)
Parking fines 21,150 21,150 26,036 4,886
Abandoned vehicle 100,000 100,000 156,518 56,518
Total fines 204,676 204,676 262,403 57,727
Investment income (loss)159,376 159,376 (758,838) (918,214)
Miscellaneous:
Police and fire 22,899 22,899 102,844 79,945
Recreation 3,029 3,029 1,753 (1,276)
Other 734,233 734,233 3,236,246 2,502,013
Total miscellaneous 760,161 760,161 3,340,843 2,580,682
TOTAL REVENUES 60,970,856 60,970,856 73,259,848 12,288,992
(Continued)
City of Gilroy
Required Supplementary Information
Budgetary Comparison Schedule - General Fund
For the Year Ended June 30, 2022
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Original Final Variance with
Budget Budget Actual Final Budget
EXPENDITURES:
General Government:
City council 221,987 221,987 316,805 (94,818)
City administration 1,344,130 1,462,102 1,248,736 213,366
Emergency services 101,100 101,100 38,839 62,261
Finance 964,349 964,349 867,841 96,508
General administration 2,196,671 2,296,671 3,272,639 (975,968)
City attorney 450,000 450,000 711,905 (261,905)
Personnel 1,292,276 1,292,276 1,479,512 (187,236)
Total general government 6,570,513 6,788,485 7,936,277 (1,147,792)
Public Safety:
Police administration 4,103,881 4,103,881 3,993,280 110,601
Police patrol operations 14,438,223 14,899,879 15,115,800 (215,921)
Police investigation 1,523,800 1,523,800 1,485,581 38,219
Communications 2,218,127 2,218,127 2,045,665 172,462
Police records 1,174,220 1,174,220 1,050,881 123,339
Fire administration 1,769,641 1,769,641 1,071,097 698,544
Fire operations 10,382,790 10,432,459 11,730,040 (1,297,581)
Total public safety 35,610,682 36,122,007 36,492,344 (370,337)
Public works:
Engineering 1,244,813 1,369,133 930,586 438,547
Street maintenance/forestry 1,300,823 1,300,823 1,371,464 (70,641)
Landscape maintenance 2,728,375 2,732,268 2,763,374 (31,106)
Total public works 5,274,011 5,402,224 5,065,424 336,800
Community development:
Planning 2,877,489 3,009,934 2,511,647 498,287
B.L.E.S.1,519,689 1,561,065 1,613,675 (52,610)
Chemical containment hazardous materials 365,029 365,562 391,810 (26,248)
Total community development 4,762,207 4,936,561 4,517,132 419,429
Recreation services:
Community recreation 2,066,781 2,066,781 1,463,448 603,333
Total recreation services 2,066,781 2,066,781 1,463,448 603,333
Capital outlay:
Capital outlay 2,514,000 2,514,000 249,133 2,264,867
Total capital outlay 2,514,000 2,514,000 249,133 2,264,867
TOTAL EXPENDITURES 56,798,194 57,830,058 55,723,758 2,106,300
EXCESS OF REVENUES OVER
EXPENDITURES 4,172,662 3,140,798 17,536,090 14,395,292
OTHER FINANCING SOURCES:
Transfers in 2,532,888 2,532,888 2,779,852 246,964
Transfers out (2,031,454) (2,031,454) (2,043,469) (12,015)
Total other financing sources 501,434 501,434 736,383 234,949
NET CHANGE IN FUND BALANCE 4,674,096$ 3,642,232$ 18,272,473 14,630,241$
FUND BALANCE:
Beginning of Year 19,633,243
End of Year 37,905,716$
(Concluded)
For the Year Ended June 30, 2022
City of Gilroy
Required Supplementary Information
Budgetary Comparison Schedule - General Fund (Continued)
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The City Administrator submits to the City Council a proposed budget for all funds. Council then proceeds to make any changes
to the proposed budget it deems necessary. Before adopting the proposed budget, Council holds a public hearing for any
interested party desiring to be heard. Notice must be given 10 days prior to the hearing and must be published in the City’s
official newspaper. After the conclusion of the public hearing, Council may further make revisions to the proposed budget.
Thereafter, Council adopts the budget with revisions, if any.
Legally adopted budgets for all governmental funds are established on a basis consistent with accounting principles generally
accepted in the United States of America. City Council approval is required for all revisions to the adopted budget that require
additional appropriations or new funding. City Administrator approval is required for all transfers within the adopted budget.
Operational appropriations lapse at fiscal year-end unless City Council takes formal action to carry forward appropriations into
the following fiscal year.
The level on which expenditures may not legally exceed appropriations is the fund level. The budgetary comparison schedules
are not presented for the Lease Revenue Bond Series 2020A Debt Service Fund.
City of Gilroy
Required Supplementary Information
Notes to the Budgetary Comparison Schedules
For the Year Ended June 30, 2022
Budget and Budgetary Accounting
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SUPPLEMENTARY INFORMATION
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Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Developer impact fee 6,786,802$ 6,786,802$ 8,665,502$ 1,878,700$
Investment income 6,970 6,970 15,315 8,345
Total revenues 6,793,772 6,793,772 8,680,817 1,887,045
EXPENDITURES:
Current:
Public works 10,000 10,000 30,927 (20,927)
Debt service:
Interest and fiscal charges 68,775 68,775 79,971 (11,196)
Total expenditures 78,775 78,775 110,898 (32,123)
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 6,714,997 6,714,997 8,569,919 1,854,922
OTHER FINANCIN SOURCES (USES):
Transfers in 40,763 40,763 40,763 -
Transfers out (4,853,224) (4,853,224) (3,182,644) 1,670,580
Total other financing sources (uses)(4,812,461) (4,812,461) (3,141,881) 1,670,580
NET CHANGE IN FUND BALANCE 1,902,536$ 1,902,536$ 5,428,038 3,525,502$
FUND BALANCE:
Beginning of Year (5,397,488)
End of Year 30,550$
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Public Facilities Impact Capital Projects Fund
For the Year Ended June 30, 2022
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Prop 172 Sales Tax - This fund is used to account for funds received from state sales tax used for public safety activities.
NONMAJOR GOVERNMENTAL FUNDS
These funds account for revenue sources that are restricted for specific purposes (other than those resources to be expended solely for
the construction of major capital facilities).
Gas Tax - This fund is used to account for the City’s share of state gasoline tax required to be used for construction and maintenance
of the City’s road network system.
Pavement Management - This fund is used to account for County Measure A and other transportation grants used to repair and
rebuild various roads.
Public Safety Grants - This fund is used to account for state and federal grants used for public safety activities.
SPECIAL REVENUE FUNDS
Traffic Impact - This fund is used to finance the construction of streets, bridges, interchanges and traffic signals within the City as
described in the City of Gilroy’s Circulation Element. Improvements and expansions of the City’s traffic circulation system are
needed to accommodate development of new residential, commercial and industrial uses with the City. The traffic impact fee is used
to expand system capacity to accommodate new development.
Storm Drains - This fund is used finance the construction of drainage collection and distribution systems within the City as described
in the City of Gilroy’s Storm Drain Master Plan. Improvements and expansions of the City’s storm drain system are needed to
accommodate development of new residential, commercial and industrial uses within the City. The storm drain development fee is
used to expand system capacity to accommodate new development.
Street Trees Development - This fund is used to account for the collection of a front footage fee to plant trees in new developments.
Community Development Block Grant - This fund is used to account for Housing and Urban Development grants used to operate
the Community Development Grant Program.
Rehabilitation Loans - This fund is used to account for loan proceeds used from the state for housing projects.
Housing Trust Fund - This fund is used to account for local funds used to address affordable housing and homelessness, for both
capital projects and services provided to homebuyers regarding down payment assistance and administrative oversight.
Community Facilities District - This fund is used to account for funds from special landscape assessment districts used to maintain
improvements of a public nature that provide benefits to the property owner.
Vehicle License Fee - This fund is used to account for vehicle license fees received from Santa Clara County to be used for
pavement maintenance, operations, signals, signs and markings.
Measure B - This fund is used to account for street and road maintenance and repair projects.
Los Arroyos Fund - This fund is used to account for funds received from South County Housing to support future homebuyers in the
Los Arroyos neighborhood.
CalHome Funds - This fund is used to account funds received from South County Housing to support future homebuyers.
CAPITAL PROJECTS FUNDS
These funds account for resources intended to be used primarily for major capital facilities (other than those financed by revenues of
proprietary funds).
Capital Projects -This fund is used to account for major capital projects other than those financed by revenues of proprietary funds,
including projects that are partially funded from other sources such as grants or fuel tax.
BANS 2009 Financing -This fund is used to account for the 2009 short-term refinancing of the City’s public facilities debt. The
City included its cost for the Christopher High School joint use public facilities with GUSD in the refinancing.
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PERMANENT FUNDS
Museum Trust - This fund was established by the sale of a vase by the Gilroy Museum. The purpose in selling the vase was to create
an endowment for the museum. This would generate interest income for the museum.
Henry Miller - This fund is used to account for a donation from Henry Miller. The annual interest earned on the original donation of
$15,000 is the amount donated to the poor of Gilroy each Christmas season.
Lease Revenue Bonds Series 2020A - This fund is used to account for the payments of debt service of principal and interest for the
PFFA Lease Revenue 2020A Bonds.
Sewer Development - This fund is used to account for the construction of sewer collection and conveyance systems within the City
as described in the City of Gilroy’s Sewer Master Plan. Improvements and expansions of the City’s sewer system are needed to
accommodate development of new residential, commercial and industrial uses within the City. The sewer development fee is used to
expand system capacity to accommodate new development.
CA Energy Commission Loan -This fund is used to account for the payments of debt service of principal and interest for the loan
agreement between the CA Energy Commission (CEC) and the City for the Wide LED streetlight replacement project.
Gilroy Community Library -This fund is used to account for payments of the indebtedness of the refinanced 2019 series A and B
General Obligation Bonds for the Gilroy Community Library.
2013 Refunding Bond -This fund is used to account for the payments of debt service of principal and interest for the 2013 Lease
Revenue Refunding Bonds.
Gilroy Community Library - This fund is used to account for the acquisition, construction and improvement of facilities to be used
as a public library within the City. Funding was provided by issuance of general obligation bonds. Interest earned on specific LAIF
account will be recorded directly to the Library fund.
DEBT SERVICE FUNDS
These funds account for resources accumulated for the payment of principal and interest (other than that for proprietary fund debt).
NONMAJOR GOVERNMENTAL FUNDS (Continued)
CAPITAL PROJECTS FUNDS (Continued)
Refunding Lease 2010 - This fund is used to account for the payments of debt service of principal and interest for the PFFA
Refunding Lease 2010 Bonds.
Bank Interest - This fund is used to account for the interest earned on the citywide treasurer’s investment pool. Quarterly, the
earnings are allocated to the appropriate funds. At the end of the fiscal year, the earnings of those funds not subject to interest are
transferred to the Capital Projects Fund.
Water Development - This fund is used to account for the construction of water transmission, distribution and storage systems within
Pressure Zone 1 of the City’s water system as described in the City of Gilroy’s Water Master Plan. Improvements and expansions of
the City’s water system are needed to accommodate development of new residential, commercial and industrial uses within the City.
The water development fee is used to expand capacity to accommodate new development.
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Public
Pavement Safety Prop 172
Gas Tax Management Grants Sales Tax
ASSETS
Cash and investments 6,493,138$ 227,986$ 252,719$ 80,386$
Receivables:
Accounts 73,311 - 189,775 -
Due from other governments 219,897 - 38,617 93,265
Interest - - - -
Loans - - - -
Advances from other funds - - - -
Land held for resale - - - -
Restricted assets:
Cash and investments with fiscal agents - - - -
Total assets 6,786,346$ 227,986$ 481,111$ 173,651$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable 19,219$ -$ 42,498$ 8,181$
Accrued liabilities 342 - 12,790 -
Deposits payable - - - -
Unearned revenue - - - -
Due to other funds - - - -
Total liabilities 19,561 - 55,288 8,181
Deferred inflows of resources:
Unavailable revenues - - - -
Total deferred inflows of resources - - - -
Fund balances:
Restricted 6,766,785 227,986 425,823 165,470
Assigned - - - -
Total fund balances 6,766,785 227,986 425,823 165,470
Total liabilities, deferred inflows of
resources, and fund balances 6,786,346$ 227,986$ 481,111$ 173,651$
(Continued)
Special Revenue Funds
City of Gilroy
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2022
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Community Housing Community
Development Rehabilitation Trust Facilities
Block Grant Loans Fund District
ASSETS
Cash and investments 482,182$ 230$ 639,908$ 1,553,111$
Receivables:
Accounts - - - -
Due from other governments 112,583 - - 762
Interest 438,189 - 355,707 -
Loans 1,646,375 - 1,311,270 -
Advances from other funds - - - -
Land held for resale - - 706,754 -
Restricted assets:
Cash and investments with fiscal agents - - - -
Total assets 2,679,329$ 230$ 3,013,639$ 1,553,873$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable 44,354$ -$ 16,714$ 77,533$
Accrued liabilities 25,472 - - -
Deposits payable - - - -
Unearned revenue - - - -
Due to other funds 312,754 - - -
Total liabilities 382,580 - 16,714 77,533
Deferred inflows of resources:
Unavailable revenues 444,542 - 355,707 -
Total deferred inflows of resources 444,542 - 355,707 -
Fund balances:
Restricted 1,852,207 230 2,641,218 1,476,340
Assigned - - - -
Total fund balances 1,852,207 230 2,641,218 1,476,340
Total liabilities, deferred inflows of
resources, and fund balances 2,679,329$ 230$ 3,013,639$ 1,553,873$
(Continued)
Special Revenue Funds
City of Gilroy
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2022
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Vehicle
License Los Arroyos CalHome
Measure B Fee Fund Funds
ASSETS
Cash and investments 2,061,787$ 1,019,689$ 614,247$ 361,248$
Receivables:
Accounts - - - -
Due from other governments - - - -
Interest - - - 63,183
Loans - - - 180,600
Advances from other funds - - - -
Land held for resale - - - -
Restricted assets:
Cash and investments with fiscal agents - - - -
Total assets 2,061,787$ 1,019,689$ 614,247$ 605,031$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable (123)$ 7,905$ -$ -$
Accrued liabilities - - - -
Deposits payable - - - -
Unearned revenue - - - 243,783
Due to other funds - - - -
Total liabilities (123) 7,905 - 243,783
Deferred inflows of resources:
Unavailable revenues - - - -
Total deferred inflows of resources - - - -
Fund balances:
Restricted 2,061,910 1,011,784 614,247 361,248
Assigned - - - -
Total fund balances 2,061,910 1,011,784 614,247 361,248
Total liabilities, deferred inflows of
resources, and fund balances 2,061,787$ 1,019,689$ 614,247$ 605,031$
(Continued)
Special Revenue Funds
City of Gilroy
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2022
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BANS
Capital 2009 Traffic Storm
Projects Financing Impact Drains
ASSETS
Cash and investments 5,531,963$ -$ 17,493,730$ 1,223,359$
Receivables:
Accounts - - - -
Due from other governments - - - -
Interest - - - -
Loans - - - -
Advances from other funds - - - 868,476
Land held for resale - - - -
Restricted assets:
Cash and investments with fiscal agents - - - -
Total assets 5,531,963$ -$ 17,493,730$ 2,091,835$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable 37,261$ -$ 5,659$ 149$
Accrued liabilities 404 - - -
Deposits payable - - - -
Unearned revenue - - - -
Due to other funds - - - -
Total liabilities 37,665 - 5,659 149
Deferred inflows of resources:
Unavailable revenues - - - -
Total deferred inflows of resources - - - -
Fund balances:
Restricted - - 17,488,071 2,091,686
Assigned 5,494,298 - - -
Total fund balances 5,494,298 - 17,488,071 2,091,686
Total liabilities, deferred inflows of
resources, and fund balances 5,531,963$ -$ 17,493,730$ 2,091,835$
(Continued)
Capital Projects Funds
City of Gilroy
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2022
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Street Gilroy
Trees Sewer Water Community
Development Development Development Library
ASSETS
Cash and investments 140,053$ 14,976,546$ 6,054,958$ 5,211,379$
Receivables:
Accounts - - - -
Due from other governments - - - 9,827
Interest - - - -
Loans - - - -
Advances from other funds - 1,086,677 - -
Land held for resale - - - -
Restricted assets:
Cash and investments with fiscal agents - - - -
Total assets 140,053$ 16,063,223$ 6,054,958$ 5,221,206$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable -$ 149$ 1,614$ -$
Accrued liabilities - - - -
Deposits payable - - - -
Unearned revenue - - - -
Due to other funds - - - -
Total liabilities - 149 1,614 -
Deferred inflows of resources:
Unavailable revenues - - - -
Total deferred inflows of resources - - - -
Fund balances:
Restricted 140,053 16,063,074 6,053,344 5,221,206
Assigned - - - -
Total fund balances 140,053 16,063,074 6,053,344 5,221,206
Total liabilities, deferred inflows of
resources, and fund balances 140,053$ 16,063,223$ 6,054,958$ 5,221,206$
(Continued)
Capital Projects Funds
City of Gilroy
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2022
118
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2013 Gilroy
Utility Bank Refunding Community
Undergrounding Interest Bond Library
ASSETS
Cash and investments -$ -$ 83,370$ 1,296,949$
Receivables:
Accounts - - - 14,161
Due from other governments - - - -
Interest - - - -
Loans - - - -
Advances from other funds - - - -
Land held for resale - - - -
Restricted assets:
Cash and investments with fiscal agents - - 921,026 -
Total assets -$ -$ 1,004,396$ 1,311,110$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable -$ -$ -$ -$
Accrued liabilities - - - -
Deposits payable - - - -
Unearned revenue - - - -
Due to other funds - - - -
Total liabilities - - - -
Deferred inflows of resources:
Unavailable revenues - - - -
Total deferred inflows of resources - - - -
Fund balances:
Restricted - - 1,004,396 1,311,110
Assigned - - - -
Total fund balances - - 1,004,396 1,311,110
Total liabilities, deferred inflows of
resources, and fund balances -$ -$ 1,004,396$ 1,311,110$
(Continued)
Debt Service FundsCapital Projects Funds
City of Gilroy
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2022
119
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CA Energy Lease Revenue
Refuding
Commission Bond Series
Lease
Loan 2020A 2010
ASSETS
Cash and investments 20,099$ 673,550$ -$
Receivables:
Accounts - - -
Due from other governments - - -
Interest - - -
Loans - - -
Advances from other funds - - -
Land held for resale - - -
Restricted assets:
Cash and investments with fiscal agents - 4 -
Total assets 20,099$ 673,554$ -$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable -$ -$ -$
Accrued liabilities - - -
Deposits payable - - -
Unearned revenue - - -
Due to other funds - - -
Total liabilities - - -
Deferred inflows of resources:
Unavailable revenues - - -
Total deferred inflows of resources - - -
Fund balances:
Restricted 20,099 673,554 -
Assigned - - -
Total fund balances 20,099 673,554 -
Total liabilities, deferred inflows of
resources, and fund balances 20,099$ 673,554$ -$
(Continued)
Debt Service Funds
City of Gilroy
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2022
120
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Total Nonmajor
Henry Miller Museum Governmental
Library Trust Funds
ASSETS
Cash and investments 15,053$ 45,791$ 66,553,431$
Receivables:
Accounts - - 277,247
Due from other governments - - 474,951
Interest - - 857,079
Loans - - 3,138,245
Advances from other funds - - 1,955,153
Land held for resale - - 706,754
Restricted assets:
Cash and investments with fiscal agents - - 921,030
Total assets 15,053$ 45,791$ 74,883,890$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable -$ -$ 261,113$
Accrued liabilities - - 39,008
Deposits payable - 35,299 35,299
Unearned revenue - - 243,783
Due to other funds - - 312,754
Total liabilities - 35,299 891,957
Deferred inflows of resources:
Unavailable revenues - - 800,249
Total deferred inflows of resources - - 800,249
Fund balances:
Restricted 15,053 10,492 67,697,386
Assigned - - 5,494,298
Total fund balances 15,053 10,492 73,191,684
Total liabilities, deferred inflows of
resources, and fund balances 15,053$ 45,791$ 74,883,890$
(Concluded)
Permanent Funds
City of Gilroy
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2022
121
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Public
Pavement Safety Prop 172
Gas Tax Management Grants Sales Tax
Revenues:
Taxes 1,191,390$ -$ -$ 350,725$
Intergovernmental 1,147,129 48,783 1,154,029 -
Developer impact fees - - - -
Investment income 21,010 737 1,114 233
Miscellaneous 73,311 - - -
Total revenues 2,432,840 49,520 1,155,143 350,958
Expenditures:
Current:
General government - - - -
Public safety - - 938,681 256,769
Community development - - - -
Public works 458,047 - - -
Capital outlay 401,637 - 19,166 -
Debt service:
Principal retirement - - - -
Interest and fiscal charges - - - -
Total expenditures 859,684 - 957,847 256,769
Revenues over (under)
expenditures 1,573,156 49,520 197,296 94,189
Other financing sources (uses):
Transfers in - - 156,455 -
Transfers out (357,363) - (315,673) -
Total other financing sources (uses)(357,363) - (159,218) -
Net Change in Fund Balances 1,215,793 49,520 38,078 94,189
Fund balances:
Beginning of year 5,550,992 178,466 387,745 71,281
End of year 6,766,785$ 227,986$ 425,823$ 165,470$
(Continued)
Special Revenue Funds
City of Gilroy
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2022
122
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Community Housing Community
Development Rehabilitation Trust Facilities
Block Grant Loans Fund District
Revenues:
Taxes -$ -$ -$ 490,550$
Intergovernmental 567,222 - - -
Developer impact fees - - - -
Investment income 17,358 - 4,679 4,773
Miscellaneous 29,860 - 560,640 -
Total revenues 614,440 - 565,319 495,323
Expenditures:
Current:
General government - - - -
Public safety - - - -
Community development 381,905 - 636,489 -
Public works - - - 381,856
Capital outlay 24,881 - - -
Debt service:
Principal retirement - - - -
Interest and fiscal charges - - - -
Total expenditures 406,786 - 636,489 381,856
Revenues over (under)
expenditures 207,654 - (71,170) 113,467
Other financing sources (uses):
Transfers in - - - -
Transfers out (34,768) - - -
Total other financing sources (uses)(34,768) - - -
Net Change in Fund Balances 172,886 - (71,170) 113,467
Fund balances:
Beginning of year 1,679,321 230 2,712,388 1,362,873
End of year 1,852,207$ 230$ 2,641,218$ 1,476,340$
(Continued)
Special Revenue Funds
City of Gilroy
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued)
Nonmajor Governmental Funds
For the Year Ended June 30, 2022
123
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Vehicle
License Los Arroyos CalHome
Measure B Fee Fund Funds
Revenues:
Taxes -$ -$ -$ -$
Intergovernmental 22,633 345,979 204,722 47,277
Developer impact fees - - - -
Investment income 6,603 3,299 1,987 1,169
Miscellaneous - - - 18,559
Total revenues 29,236 349,278 206,709 67,005
Expenditures:
Current:
General government - - - -
Public safety - - - -
Community development - - - -
Public works 8,356 7,905 - -
Capital outlay 106 15,077 - -
Debt service:
Principal retirement - - - -
Interest and fiscal charges - - - -
Total expenditures 8,462 22,982 - -
Revenues over (under)
expenditures 20,774 326,296 206,709 67,005
Other financing sources (uses):
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses)- - - -
Net Change in Fund Balances 20,774 326,296 206,709 67,005
Fund balances:
Beginning of year 2,041,136 685,488 407,538 294,243
End of year 2,061,910$ 1,011,784$ 614,247$ 361,248$
(Continued)
Special Revenue Funds
City of Gilroy
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued)
Nonmajor Governmental Funds
For the Year Ended June 30, 2022
124
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BANS
Capital 2009 Traffic Storm
Projects Financing Impact Drains
Revenues:
Taxes -$ -$ -$ -$
Intergovernmental - - - -
Developer impact fees - - 4,991,929 34,506
Investment income 20,384 - 56,572 16,752
Miscellaneous - - - -
Total revenues 20,384 - 5,048,501 51,258
Expenditures:
Current:
General government - - - -
Public safety - - - -
Community development - - - -
Public works - - 6,635 39,622
Capital outlay 52,623 - 1,861,090 -
Debt service:
Principal retirement - - - -
Interest and fiscal charges - - - -
Total expenditures 52,623 - 1,867,725 39,622
Revenues over (under)
expenditures (32,239) - 3,180,776 11,636
Other financing sources (uses):
Transfers in 250,000 - 48,769 1,196
Transfers out - (34,968) - -
Total other financing sources (uses)250,000 (34,968) 48,769 1,196
Net Change in Fund Balances 217,761 (34,968) 3,229,545 12,832
Fund balances:
Beginning of year 5,276,537 34,968 14,258,526 2,078,854
End of year 5,494,298$ -$ 17,488,071$ 2,091,686$
(Continued)
Capital Projects Funds
City of Gilroy
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued)
Nonmajor Governmental Funds
For the Year Ended June 30, 2022
125
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Street Gilroy
Trees Sewer Water Community
Development Development Development Library
Revenues:
Taxes -$ -$ -$ -$
Intergovernmental - - - -
Developer impact fees 481 3,552,755 981,863 -
Investment income 453 64,441 19,582 (47,412)
Miscellaneous - - - -
Total revenues 934 3,617,196 1,001,445 (47,412)
Expenditures:
Current:
General government - - - -
Public safety - - - -
Community development - - - -
Public works - 56,017 40,041 -
Capital outlay - - 16,020 -
Debt service:
Principal retirement - - - -
Interest and fiscal charges - - - -
Total expenditures - 56,017 56,061 -
Revenues over (under)
expenditures 934 3,561,179 945,384 (47,412)
Other financing sources (uses):
Transfers in 27 28,351 5,893 9,658
Transfers out - (708,865) - -
Total other financing sources (uses)27 (680,514) 5,893 9,658
Net Change in Fund Balances 961 2,880,665 951,277 (37,754)
Fund balances:
Beginning of year 139,092 13,182,409 5,102,067 5,258,960
End of year 140,053$ 16,063,074$ 6,053,344$ 5,221,206$
(Continued)
Capital Projects Funds
City of Gilroy
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued)
Nonmajor Governmental Funds
For the Year Ended June 30, 2022
126
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2013 Gilroy
Utility Bank Refunding Community
Undergrounding Interest Bond Library
Revenues:
Taxes -$ -$ -$ 1,909,924$
Intergovernmental - - - -
Developer impact fees - - - -
Investment income - 54 1,107 4,196
Miscellaneous - - - -
Total revenues - 54 1,107 1,914,120
Expenditures:
Current:
General government 8 - 3,832 5,735
Public safety - - - -
Community development - - - -
Public works - - - -
Capital outlay - - - -
Debt service: - -
Principal retirement - - 990,000 1,022,696
Interest and fiscal charges - - 848,019 812,294
Total expenditures 8 - 1,841,851 1,840,725
Revenues over (under)
expenditures (8) 54 (1,840,744) 73,395
Other financing sources (uses):
Transfers in - - 1,838,019 -
Transfers out - - - -
Total other financing sources (uses)- - 1,838,019 -
Net Change in Fund Balances (8) 54 (2,725) 73,395
Fund balances:
Beginning of year 8 (54) 1,007,121 1,237,715
End of year -$ -$ 1,004,396$ 1,311,110$
(Continued)
Capital Projects Funds
Nonmajor Governmental Funds
For the Year Ended June 30, 2022
Debt Service Funds
City of Gilroy
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued)
127
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CA Energy Lease Revenue
Refuding
Commission Bond Series
Lease
Loan 2020A 2010
Revenues:
Taxes -$ -$ -$
Intergovernmental - - -
Developer impact fees - - -
Investment income 65 2,186 -
Miscellaneous - - -
Total revenues 65 2,186 -
Expenditures:
Current:
General government - 3,810 -
Public safety - - -
Community development - - -
Public works - - -
Capital outlay - - -
Debt service:
Principal retirement 92,433 715,000 -
Interest and fiscal charges 7,429 629,625 -
Total expenditures 99,862 1,348,435
Revenues over (under)
expenditures (99,797) (1,346,249)
Other financing sources (uses):
Transfers in 99,863 1,344,690 -
Transfers out - - (65)
Total other financing sources (uses)99,863 1,344,690 (65)
Net Change in Fund Balances 66 (1,559) (65)
Fund balances:
Beginning of year 20,033 675,113 65
End of year 20,099$ 673,554$ -$
(Continued)
Debt Service Funds
City of Gilroy
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued)
Nonmajor Governmental Funds
For the Year Ended June 30, 2022
128
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Total Nonmajor
Henry Museum Governmental
Miller Trust Funds
Revenues:
Taxes -$ -$ 3,942,589$
Intergovernmental - - 3,537,774
- - 9,561,534
Investment income - 938 202,280
Miscellaneous - - 682,370
Total revenues - 938 17,926,547
Expenditures:
Current:
General government - - 13,385
Public safety - - 1,195,450
Community development - - 1,018,394
Public works - - 998,479
Capital outlay - - 2,390,600
Debt service:
Principal retirement - - 2,820,129
Interest and fiscal charges - - 2,297,367
Total expenditures - - 10,733,804
Revenues over (under)
expenditures - 938 7,192,743
Other financing sources (uses):
Transfers in - - 3,782,921
Transfers out - - (1,451,702)
Total other financing sources (uses)- - 2,331,219
Net Change in Fund Balances - 938 9,523,962
Fund balances:
Beginning of year, as restated (note 16)15,053 9,554 63,667,722
End of year 15,053$ 10,492$ 73,191,684$
(Concluded)
Nonmajor Governmental Funds
For the Year Ended June 30, 2022
Permanent Funds
City of Gilroy
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued)
129
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Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Taxes 1,373,492$ 1,373,492$ 1,191,390$ (182,102)$
Intergovernmental - 1,373,492 1,147,129 (226,363)
Investment income 30,386 30,386 21,010 (9,376)
Miscellaneous - - 73,311 73,311
Total Revenues 1,403,878 2,777,370 2,432,840 (344,530)
Expenditures:
Current:
Public works 1,014,065 1,058,172 458,047 600,125
Capital outlay 1,473,800 3,038,724 401,637 2,637,087
Total Expenditures 2,487,865 4,096,896 859,684 3,237,212
REVENUE OVER
(UNDER) EXPENDITURES (1,083,987) (1,319,526) 1,573,156 2,892,682
Other Financing Sources (Uses):
Transfers out (107,363) (357,363) (357,363) -
Total Other Financing Sources (Uses)(107,363) (357,363) (357,363) -
NET CHANGE IN FUND BALANCE (1,191,350)$ (1,676,889)$ 1,215,793 2,892,682$
FUND BALANCE:
Beginning of Year 5,550,992
End of Year 6,766,785$
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the Year Ended June 30, 2022
Budgeted Amounts
Gas Tax Special Revenue Fund
130
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Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Intergovernmental 280,500$ 280,500$ 48,783$ (231,717)$
Investment income - - 737 737
Total Revenues 280,500 280,500 49,520 (230,980)
Expenditures:
Capital outlay 280,500 280,500 - 280,500
Total Expenditures 280,500 280,500 - 280,500
REVENUE OVER
(UNDER) EXPENDITURES - - 49,520 49,520
NET CHANGE IN FUND BALANCE -$ -$ 49,520 49,520$
FUND BALANCE:
Beginning of Year 178,466
End of Year 227,986$
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Pavement Management Special Revenue Fund
For the Year Ended June 30, 2022
Budgeted Amounts
131
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Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Intergovernmental 611,193$ 627,925$ 1,154,029$ 526,104$
Investment income 3,181 3,181 1,114 (2,067)
Total Revenues 614,374 631,106 1,155,143 524,037
Expenditures:
Current:
Public safety 609,978 675,821 938,681 (262,860)
Capital outlay 2,000 2,000 19,166 (17,166)
Total Expenditures 611,978 677,821 957,847 (280,026)
REVENUE OVER
(UNDER) EXPENDITURES 2,396 (46,715) 197,296 244,011
Other Financing Sources (Uses):
Transfers in 156,455 156,455 156,455 -
Transfers out (154,388) (154,388) (315,673) (161,285)
Total Other Financing Sources (Uses)2,067 2,067 (159,218) (161,285)
NET CHANGE IN FUND BALANCE 4,463$ (44,648)$ 38,078 82,726$
FUND BALANCE:
Beginning of Year 387,745
End of Year 425,823$
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Public Safety Grants Special Revenue Fund
Budgeted Amounts
For the Year Ended June 30, 2022
132
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Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Taxes 291,000$ 291,000$ 350,725$ 59,725$
Investment income 131 131 233 102
Total Revenues 291,131 291,131 350,958 59,827
Expenditures:
Current:
Public safety 287,275 287,275 256,769 30,506
Total Expenditures 287,275 287,275 256,769 30,506
REVENUE OVER
(UNDER) EXPENDITURES 3,856 3,856 94,189 90,333
NET CHANGE IN FUND BALANCE 3,856$ 3,856$ 94,189 90,333$
FUND BALANCE:
Beginning of Year 71,281
End of Year 165,470$
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Prop 172 Sales Tax Special Revenue Fund
Budgeted Amounts
For the Year Ended June 30, 2022
133
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Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Intergovernmental 755,935$ 755,935$ 567,222$ (188,713)$
Investment income 2,064 2,064 17,358 15,294
Miscellaneous - - 29,860 29,860
Total Revenues 757,999 757,999 614,440 (143,559)
Expenditures:
Current:
Community development 380,409 828,744 381,905 446,839
Capital outlay 114,500 140,200 24,881 115,319
Total expenditures 494,909 968,944 406,786 562,158
REVENUE OVER
(UNDER) EXPENDITURES 263,090 (210,945) 207,654 418,599
Other Financing Sources (Uses):
Transfers out - - (34,768) (34,768)
Total Other Financing Sources (Uses)- - (34,768) (34,768)
NET CHANGE IN FUND BALANCE 263,090$ (210,945)$ 172,886 383,831$
FUND BALANCE:
Beginning of Year 1,679,321
End of Year 1,852,207$
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Community Development Block Grant Special Revenue Fund
Budgeted Amounts
For the Year Ended June 30, 2022
134
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Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Investment income 2$ 2$ -$ (2)$
Total revenues 2 2 - (2)
Net Change in Fund Balances 2$ 2$ - (2)$
Fund balances:
Beginning of year 230
End of year 230$
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Rehabilitation Loans Special Revenue Fund
Budgeted Amounts
For the Year Ended June 30, 2022
135
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Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Investment income 10,674$ 10,674$ 4,679$ (5,995)$
Miscellaneous 251,000 251,000 560,640 309,640
Total revenues 261,674 261,674 565,319 303,645
Expenditures:
Current:
Community development 618,325 618,325 636,489 (18,164)
Total expenditures 618,325 618,325 636,489 (18,164)
Revenues over (under)
expenditures (356,651) (356,651) (71,170) 285,481
Other financing sources (uses):
Transfers in - - - -
Total other financing sources (uses)- - - -
Net Change in Fund Balances (356,651)$ (356,651)$ (71,170) 285,481$
Fund balances:
Beginning of year 2,712,388
End of year 2,641,218$
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Housing Trust Fund Special Revenue Fund
Budgeted Amounts
For the Year Ended June 30, 2022
136
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Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Taxes 453,167$ 453,167$ 490,550$ 37,383$
Investment income 7,383 7,383 4,773 (2,610)
Total revenues 460,550 460,550 495,323 34,773
Expenditures:
Current:
Public works 364,683 364,683 381,856 (17,173)
Total expenditures 364,683 364,683 381,856 (17,173)
Net Change in Fund Balances 95,867$ 95,867$ 113,467 17,600$
Fund balances:
Beginning of year 1,362,873
End of year 1,476,340$
Budgeted Amounts
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Community Facilities District Special Revenue Fund
For the Year Ended June 30, 2022
137
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Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Intergovernmental 1,996,600$ 1,996,600$ 22,633$ (1,973,967)$
Investment income 31,816 31,816 6,603 (25,213)
Total revenues 2,028,416 2,028,416 29,236 (1,999,180)
Expenditures:
Current:
Public works 10,000 10,000 8,356 1,644
Capital outlay 1,800,000 1,800,000 106 1,799,894
Total expenditures 1,810,000 1,810,000 8,462 1,801,538
Net Change in Fund Balances 218,416$ 218,416$ 20,774 (197,642)$
Fund balances:
Beginning of year 2,041,136
End of year 2,061,910$
Budgeted Amounts
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Measure B Special Revenue Fund
For the Year Ended June 30, 2022
138
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Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Intergovernmental 384,940$ 384,940$ 345,979$ (38,961)$
Investment income 9,522 9,522 3,299 (6,223)
Total revenues 394,462 394,462 349,278 (45,184)
Expenditures:
Current:
Public works 25,000 49,559 7,905 41,654
Capital outlay 192,610 240,520 15,077 225,443
Total expenditures 217,610 290,079 22,982 267,097
Revenues over (under)
expenditures 176,852 104,383 326,296 221,913
Net Change in Fund Balances 176,852$ 104,383$ 326,296 221,913$
Fund balances:
Beginning of year 685,488
End of year 1,011,784$
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Vehicle License Fee Special Revenue Fund
Budgeted Amounts
For the Year Ended June 30, 2022
139
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Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Intergovernmental -$ -$ 204,722$ 204,722$
Investment income 2,715 2,715 1,987 (728)
Total revenues 2,715 2,715 206,709 203,994
Revenues over (under)
expenditures 2,715 2,715 206,709 203,994
Net Change in Fund Balances 2,715$ 2,715$ 206,709 203,994$
Fund balances:
Beginning of year 407,538
End of year 614,247$
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Los Arroyos Fund Special Revenue Fund
Budgeted Amounts
For the Year Ended June 30, 2022
140
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Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Intergovernmental -$ -$ 47,277$ 47,277$
Investment income 1,530 1,530 1,169 (361)
Miscellaneous - - 18,559 18,559
Total revenues 1,530 1,530 67,005 65,475
Net Change in Fund Balances 1,530$ 1,530$ 67,005 65,475$
Fund balances:
Beginning of year 294,243
End of year 361,248$
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
CalHome Funds Special Revenue Fund
Budgeted Amounts
For the Year Ended June 30, 2022
141
11.3
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Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Investment income 34,823$ 34,823$ 20,384$ (14,439)$
Total revenues 34,823 34,823 20,384 (14,439)
Expenditures:
Capital outlay 1,340,000 2,646,485 52,623 2,593,862
Total expenditures 1,340,000 2,646,485 52,623 2,593,862
Revenues over (under)
expenditures (1,305,177) (2,611,662) (32,239) 2,579,423
Other financing sources (uses):
Transfers in - 550,000 250,000 (300,000)
Transfers out - (63,502) - 63,502
Total other financing sources (uses)- 486,498 250,000 (236,498)
Net Change in Fund Balances (1,305,177)$ (2,125,164)$ 217,761 2,342,925$
Fund balances:
Beginning of year 5,276,537
End of year 5,494,298$
Budgeted Amounts
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Capital Projects Fund
For the Year Ended June 30, 2022
142
11.3
p. 441 of 530
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Investment income 233$ 233$ -$ (233)$
Total revenues 233 233 - (233)
Revenues over (under)
expenditures 233 233 - (233)
Other financing sources (uses):
Transfers out - - (34,968) (34,968)
Total other financing sources (uses)- - (34,968) (34,968)
Net Change in Fund Balances 233$ 233$ (34,968) (35,201)$
Fund balances:
Beginning of year 34,968
End of year -$
Budgeted Amounts
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
BANS 2009 Financing Capital Projects Fund
For the Year Ended June 30, 2022
143
11.3
p. 442 of 530
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Charges for services 6,381,349$ 6,381,349$ 4,991,929$ (1,389,420)$
Investment income 84,344 84,344 56,572 (27,772)
Total revenues 6,465,693 6,465,693 5,048,501 (1,417,192)
Expenditures:
Current:
Public works 182,526 182,526 6,635 175,891
Capital outlay 11,987,266 12,768,027 1,861,090 10,906,937
Total expenditures 12,169,792 12,950,553 1,867,725 11,082,828
Revenues over (under)
expenditures (5,704,099) (6,484,860) 3,180,776 9,665,636
Other financing sources (uses):
Transfers in 48,769 48,769 48,769 -
Total other financing sources (uses)48,769 48,769 48,769 -
Net Change in Fund Balances (5,655,330)$ (6,436,091)$ 3,229,545 9,665,636$
Fund balances:
Beginning of year 14,258,526
End of year 17,488,071$
Budgeted Amounts
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Traffic Impact Capital Projects Fund
For the Year Ended June 30, 2022
144
11.3
p. 443 of 530
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Charges for services 131,710$ 131,710$ 34,506$ (97,204)$
Investment income 19,944 19,944 16,752 (3,192)
Total revenues 151,654 151,654 51,258 (100,396)
Expenditures:
Current:
Public works 5,188 40,512 39,622 890
Total expenditures 5,188 40,512 39,622 890
Revenues over (under)
expenditures 146,466 111,142 11,636 (99,506)
Other financing sources (uses):
Transfers in 72,038 72,038 1,196 (70,842)
Total other financing sources (uses)72,038 72,038 1,196 (70,842)
Net Change in Fund Balances 218,504$ 183,180$ 12,832 (170,348)$
Fund balances:
Beginning of year 2,078,854
End of year 2,091,686$
Budgeted Amounts
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Storm Drains Capital Projects Fund
For the Year Ended June 30, 2022
145
11.3
p. 444 of 530
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Charges for services 2,000$ 2,000$ 481$ (1,519)$
Investment income 920 920 453 (467)
Total revenues 2,920 2,920 934 (1,986)
Other financing sources (uses):
Transfers in 27 27 27 -
Total other financing sources (uses)27 27 27 -
Net Change in Fund Balances 2,947$ 2,947$ 961 (1,986)$
Fund balances:
Beginning of year 139,092
End of year 140,053$
Budgeted Amounts
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Street Trees Development Capital Projects Fund
For the Year Ended June 30, 2022
146
11.3
p. 445 of 530
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Charges for services 3,445,586$ 3,445,586$ 3,552,755$ 107,169$
Investment income 95,900 95,900 64,441 (31,459)
Total revenues 3,541,486 3,541,486 3,617,196 75,710
Expenditures:
Current:
Public works 21,582 56,906 56,017 889
Total expenditures 21,582 56,906 56,017 889
Revenues over (under)
expenditures 3,519,904 3,484,580 3,561,179 76,599
Other financing sources (uses):
Transfers in 369,061 369,061 28,351 (340,710)
Transfers out (694,146) (694,146) (708,865) (14,719)
Total other financing sources (uses)(325,085) (325,085) (680,514) (355,429)
Net Change in Fund Balances 3,194,819$ 3,159,495$ 2,880,665 (278,830)$
Fund balances:
Beginning of year 13,182,409
End of year 16,063,074$
Budgeted Amounts
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Sewer Development Capital Projects Fund
For the Year Ended June 30, 2022
147
11.3
p. 446 of 530
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Charges for services 1,035,539$ 1,035,539$ 981,863$ (53,676)$
Investment income 32,093 32,093 19,582 (12,511)
Total revenues 1,067,632 1,067,632 1,001,445 (66,187)
Expenditures:
Current:
Public works 5,606 584,678 40,041 544,637
Capital outlay 2,665,300 2,665,300 16,020 2,649,280
Total expenditures 2,670,906 3,249,978 56,061 3,193,917
Revenues over (under)
expenditures (1,603,274) (2,182,346) 945,384 3,127,730
Other financing sources (uses):
Transfers in 5,893 5,893 5,893 -
Total other financing sources (uses)5,893 5,893 5,893 -
Net Change in Fund Balances (1,597,381)$ (2,176,453)$ 951,277 3,127,730$
Fund balances:
Beginning of year 5,102,067
End of year 6,053,344$
Budgeted Amounts
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Water Development Capital Projects Fund
For the Year Ended June 30, 2022
148
11.3
p. 447 of 530
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Investment income (loss)-$ -$ (47,412)$ (47,412)$
Total revenues - - (47,412) (47,412)
Revenues over (under)
expenditures - - (47,412) (47,412)
Other financing sources (uses):
Transfers in - - 9,658 9,658
Total other financing sources (uses)- - 9,658 9,658
Net Change in Fund Balances -$ -$ (37,754) (37,754)$
Fund balances:
Beginning of year 5,258,960
End of year 5,221,206$
Budgeted Amounts
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Gilroy Community Library Capital Projects Fund
For the Year Ended June 30, 2022
149
11.3
p. 448 of 530
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Expenditures:
Current:
General government - - 8 (8)
Total expenditures - - 8 (8)
Revenues over (under)
expenditures - - (8) (8)
Net Change in Fund Balances -$ -$ (8) (8)$
Fund balances:
Beginning of year 8
End of year -$
Budgeted Amounts
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Utility Undergrounding Capital Projects Fund
For the Year Ended June 30, 2022
150
11.3
p. 449 of 530
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Investment income -$ -$ 54$ 54$
Total revenues - - 54 54
Revenues over (under)
expenditures - - 54 54
Total other financing sources (uses)- - - -
Net Change in Fund Balances -$ -$ 54 54$
Fund balances:
Beginning of year (54)
End of year -$
Budgeted Amounts
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Bank Interest Capital Projects Fund
For the Year Ended June 30, 2022
151
11.3
p. 450 of 530
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Investment income 910$ 910$ 1,107$ 197$
Total revenues 910 910 1,107 197
Expenditures:
Current:
General government 8,600 8,600 3,832 4,768
Debt service:
Principal retirement 990,000 990,000 990,000 -
Interest and fiscal charges 848,019 848,019 848,019 -
Total expenditures 1,846,619 1,846,619 1,841,851 4,768
Revenues over (under)
expenditures (1,845,709) (1,845,709) (1,840,744) 4,965
Other financing sources (uses):
Transfers in 1,838,019 1,838,019 1,838,019 -
Total other financing sources (uses)1,838,019 1,838,019 1,838,019 -
Net Change in Fund Balances (7,690)$ (7,690)$ (2,725) 4,965$
Fund balances:
Beginning of year 1,007,121
End of year 1,004,396$
Budgeted Amounts
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
2013 Refunding Bond Debt Service Fund
For the Year Ended June 30, 2022
152
11.3
p. 451 of 530
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Taxes 1,979,906$ 1,979,906$ 1,909,924$ (69,982)$
Investment income 5,166 5,166 4,196 (970)
Total revenues 1,985,072 1,985,072 1,914,120 (70,952)
Expenditures:
Current:
General government 600 600 5,735 (5,135)
Debt service:
Principal retirement 1,022,696 1,022,696 1,022,696 -
Interest and fiscal charges 812,294 812,294 812,294 -
Total expenditures 1,835,590 1,835,590 1,840,725 (5,135)
Net Change in Fund Balances 149,482$ 149,482$ 73,395 (76,087)$
Fund balances:
Beginning of year 1,237,715
End of year 1,311,110$
Budgeted Amounts
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Gilroy Community Library Debt Service Fund
For the Year Ended June 30, 2022
153
11.3
p. 452 of 530
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Investment income 244$ 244$ 65$ (179)$
Total revenues 244 244 65 (179)
Expenditures:
Debt service:
Principal retirement 92,433 92,433 92,433 -
Interest and fiscal charges 7,429 7,429 7,429 -
Total expenditures 99,862 99,862 99,862 -
Revenues over (under)
expenditures (99,618) (99,618) (99,797) (179)
Other financing sources (uses):
Transfers in 99,863 99,863 99,863 -
Total other financing sources (uses)99,863 99,863 99,863 -
Net Change in Fund Balances 245$ 245$ 66 (179)$
Fund balances:
Beginning of year 20,033
End of year 20,099$
Budgeted Amounts
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
CA Energy Commission Loan Debt Service Fund
For the Year Ended June 30, 2022
154
11.3
p. 453 of 530
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Investment income -$ -$ 2,186$ 2,186$
Total revenues - - 2,186 2,186
Expenditures:
Current:
General government 8,600 8,600 3,810 4,790
Debt service:
Principal retirement 715,000 715,000 715,000 -
Interest and fiscal charges 629,625 629,625 629,625 -
Total expenditures 1,353,225 1,353,225 1,348,435 4,790
Revenues over (under)
expenditures (1,353,225) (1,353,225) (1,346,249) 6,976
Other financing sources (uses):
Transfers in 1,344,625 1,344,625 1,344,690 65
Total other financing sources (uses)1,344,625 1,344,625 1,344,690 65
Net Change in Fund Balances (8,600)$ (8,600)$ (1,559) 7,041$
Fund balances:
Beginning of year 675,113
End of year 673,554$
Budgeted Amounts
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Lease Revenue Bonds Series 2020A Fund
For the Year Ended June 30, 2022
155
11.3
p. 454 of 530
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Other financing sources (uses):
Transfers out - - (65) (65)
Total other financing sources (uses)- - (65) (65)
Net Change in Fund Balances -$ -$ (65) (65)$
Fund balances:
Beginning of year 65
End of year -$
Budgeted Amounts
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Refunding Lease 2010 Debt Service Fund
For the Year Ended June 30, 2022
156
11.3
p. 455 of 530
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Investment income 115$ 115$ -$ (115)$
Total revenues 115 115 - (115)
Revenues over (under)
expenditures 115 115 - (115)
Net Change in Fund Balances 115$ 115$ - (115)$
Fund balances:
Beginning of year 15,053
End of year 15,053$
Budgeted Amounts
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Henry Miller Fund
For the Year Ended June 30, 2022
157
11.3
p. 456 of 530
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Investment income 299$ 229$ 938$ 709$
Total revenues 299 229 938 709
Revenues over (under)
expenditures 299 229 938 709
Net Change in Fund Balances 299$ 229$ 938 709$
Fund balances:
Beginning of year 9,554
End of year 10,492$
Budgeted Amounts
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Museum Trust Fund
For the Year Ended June 30, 2022
158
11.3
p. 457 of 530
Facility Services -This fund is used to account for all expenses relating to the operation and maintenance of City facilities. The costs
are recovered through an annual “user fee” which is charged to all departments/funds that have facilities.
Information Technologies -This fund is used to account for all expenses relating to computer hardware, software, maintenance,
capital purchasing and other service charges. The costs are recovered through an annual “user fee” which is charged to all
departments/funds that have computer equipment.
Personnel Benefits -This fund is used for City paid benefits which are charged. Examples include medical, dental, disability,
unemployment, life insurance and retirement including PERS and PARS. These benefit costs are allocated to the funds based on
budget for three quarters and then reconciled to actual in the fourth quarter.
General Liability -This fund is used to account for all expenses relating to the City’s general liability insurance. The costs are
recovered through an annual “user fee” which is charged to various funds.
INTERNAL SERVICE FUNDS
These funds account for goods or services provided to other departments of the City where the intent of the City is that the costs of
these goods or services are to be recovered through interdepartmental charges at the time that the goods are delivered or the services
rendered to those departments.
Fleet Services -This fund is used to account for the operations required to maintain the City’s vehicles. The costs are recovered
through an annual “user fee” which is charged to all departments/funds that have vehicle use. This fund also provides funding for
replacement of all the City’s vehicles on an “as needed” basis.
Equipment Outlay -This fund is used to allocate resources intended for the purchase of General Fund equipment costing more than
$1,000.
Workers’ Compensation - This fund is used to account for all expenses relating to workers’ compensation (i.e., injury claims,
insurance premiums, etc.). The costs are recovered through an annual “user fee” which is charged to all departments/funds that have
employees.
159
11.3
p. 458 of 530
Fleet Equipment Workers' General
Services Outlay Compensation Liability
ASSETS
Current assets:
Cash and investments 3,655,384$ 3,088,520$ 4,002,420$ 3,016,296$
Accounts receivable - - - -
Interest receivable - - - -
Lease receivable - current - - - -
Prepaid items - - - -
Total current assets 3,655,384 3,088,520 4,002,420 3,016,296
Noncurrent assets:
Interfund loans receivable 2,748,630 - - -
Lease receivable -noncurrent - - - -
Capital assets:
Nondepreciable 42,411 4,404 - -
Depreciable, net 3,577,752 623,903 - -
Total capital assets 3,620,163 628,307 - -
Total noncurrent assets 6,368,793 628,307 - -
Total assets 10,024,177 3,716,827 4,002,420 3,016,296
Current Liabilities:
Accounts payable 4,750 10,495 565 12,478
Accrued liabilities 38,888 - - 320
Deposit payable - - - -
Compensated absences, current portion 2,200 - - -
Claims payable, current portion - - 1,062,000 634,997
Total current liabilities 45,838 10,495 1,062,565 647,795
Noncurrent liabilities:
Compensated absences 19,919 - - -
Claims payable - - 5,607,000 1,387,287
Total noncurrent liabilities 19,919 - 5,607,000 1,387,287
Total liabilities 65,757 10,495 6,669,565 2,035,082
DEFERRED INFLOW OF RESOURCES
Deferred inflow of resources related to leases - - - -
Total deferred inflows of resources - - - -
NET POSITION:
Investment in capital assets 3,620,163 628,307 - -
Unrestricted 6,338,257 3,078,025 (2,667,145) 981,214
Total net position 9,958,420$ 3,706,332$ (2,667,145)$ 981,214$
(Continued)
City of Gilroy
Combining Statement of Net Position
Internal Service Funds
June 30, 2022
LIABILITIES
160
11.3
p. 459 of 530
Facility Information Personnel
Services Technologies Benefits Total
ASSETS
Current assets:
Cash and investments 2,079,718$ 3,214,800 1,356,600$ 20,413,738$
Accounts receivable 23,573 - 9 23,582
Interest receivable 746 - - 746
Lease receivable - current 87,681 - - 87,681
Prepaid items - 85,675 - 85,675
Total current assets 2,191,718 3,300,475 1,356,609 20,611,422
Noncurrent assets:
Interfund loans receivable - - - 2,748,630
Lease receivable -noncurrent 712,138 - - 712,138
Capital assets:
Nondepreciable 345,210 2,291,454 - 2,683,479
Depreciable, net - 311,036 - 4,512,691
Total capital assets 345,210 2,602,490 - 7,196,170
Total noncurrent assets 1,057,348 2,602,490 - 10,656,938
Total assets 3,249,066 5,902,965 1,356,609 31,268,360
Current Liabilities:
Accounts payable 210,411 258,097 15,771 512,567
Accrued liabilities 105,588 40,228 1,340,534 1,525,558
Deposit payable 4,276 - - 4,276
Compensated absences, current portion 3,900 3,300 - 9,400
Claims payable, current portion - - - 1,696,997
Total current liabilities 324,175 301,625 1,356,305 3,748,798
Noncurrent liabilities:
Compensated absences 35,177 29,585 - 84,681
Claims payable - - - 6,994,287
Total noncurrent liabilities 35,177 29,585 - 7,078,968
Total liabilities 359,352 331,210 1,356,305 10,827,766
769,135 - - 769,135
769,135 - - 769,135
NET POSITION:
Investment in capital assets 345,210 2,602,490 - 7,196,170
Unrestricted 1,775,369 2,969,265 304 12,475,289
TOTAL NET POSITION 2,120,579$ 5,571,755$ 304$ 19,671,459$
(Concluded)
City of Gilroy
Combining Statement of Net Position (Continued)
Internal Service Funds
June 30, 2022
LIABILITIES
161
11.3
p. 460 of 530
Fleet Equipment Workers' General
Services Outlay Compensation Liability
OPERATING REVENUES:
Charges for services 1,918,339$ -$ 1,534,915$ 1,521,869$
Claims and judgements - - - 560,152
Miscellaneous - - - 636,285
Total operating revenues 1,918,339 - 1,534,915 2,718,306
OPERATING EXPENSES:
Current:
Operations 1,907,222 46,901 16,752 -
Depreciation 503,186 114,296 - -
Administration - - 138,624 19,851
Claims and judgments 19,046 - 3,863,535 -
Insurance premiums - - 345,284 1,876,028
Total operating expenses 2,429,454 161,197 4,364,195 1,895,879
OPERATING INCOME (LOSS)(511,115) (161,197) (2,829,280) 822,427
NONOPERATING REVENUES:
Investment income 55,750 21,188 12,134 8,787
Total nonoperating revenues 55,750 21,188 12,134 8,787
INCOME (LOSS) BEFORE TRANSFERS (455,365) (140,009) (2,817,146) 831,214
CHANGES IN NET POSITION (455,365) (140,009) (2,817,146) 831,214
NET POSITION:
Beginning of year 10,413,785 3,846,341 150,001 150,000
End of year 9,958,420$ 3,706,332$ (2,667,145)$ 981,214$
(Continued)
Internal Service Funds
For the Year Ended June 30, 2022
City of Gilroy
Combining Statement of Revenues, Expenses, and Changes in Net Position
162
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Facility Information Personnel
Services Technologies Benefits Total
OPERATING REVENUES:
Charges for services 3,392,664$ 2,565,395$ 16,805,392$ 27,738,574$
Claims and judgements - - - 560,152
Miscellaneous 307,422 8,618 - 952,325
Total operating revenues 3,700,086 2,574,013 16,805,392 29,251,051
OPERATING EXPENSES:
Current:
Operations 3,309,621 3,088,808 18,801,392 27,170,696
Depreciation - 82,203 - 699,685
Administration - - - 158,475
Claims and judgments 37,279 - - 3,919,860
Insurance premiums - - - 2,221,312
Total operating expenses 3,346,900 3,171,011 18,801,392 34,170,028
OPERATING INCOME (LOSS)353,186 (596,998) (1,996,000) (4,918,977)
NONOPERATING REVENUES:
Investment income 14,343 10,507 - 122,709
Total nonoperating revenues 14,343 10,507 - 122,709
INCOME (LOSS) BEFORE TRANSFERS 367,529 (586,491) (1,996,000) (4,796,268)
CHANGES IN NET POSITION 367,529 (586,491) (1,996,000) (4,796,268)
NET POSITION:
Beginning of year 1,753,050 6,158,246 1,996,304 24,467,727
End of year 2,120,579$ 5,571,755$ 304$ 19,671,459$
(Concluded)
City of Gilroy
Combining Statement of Revenues, Expenses, and Changes in Net Position (Continued)
For the Year Ended June 30, 2022
Internal Service Funds
163
11.3
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Fleet Equipment Workers' General
Services Outlay Compensation Liability
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers and users 1,918,339$ -$ 1,534,915$ 2,718,306$
Cash paid to suppliers for goods and services (2,052,519) (78,119) (154,811) (51,285)
Cash paid to employees for services - (732) - (66)
Cash paid for insurance claims (19,046) - (1,132,673) (2,619,702)
Net cash provided by (used in) operating activities (153,226) (78,851) 247,431 47,253
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:
Cash received from other funds 241,262 901,150 - -
Net cash provided by noncapital financing activities 241,262 901,150 - -
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Acquisition of capital assets (183,137) (255,723) - -
Net cash (used in) capital and related
financing activities (183,137) (255,723) - -
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest received 55,750 21,188 12,134 8,787
Net cash provided by investing activities 55,750 21,188 12,134 8,787
Net change in cash and cash equivalents (39,351) 587,764 259,565 56,040
RECONCILIATION OF CASH AND CASH EQUIVALENTS
TO STATEMENTOF NET POSITION:
Beginning of year 3,694,735 2,500,756 3,742,855 2,960,256
End of year 3,655,384$ 3,088,520$ 4,002,420$ 3,016,296$
CASH AND CASH EQUIVALENTS:
Cash and investments 3,655,384$ 3,088,520$ 4,002,420$ 3,016,296$
Total cash and cash equivalents 3,655,384$ 3,088,520$ 4,002,420$ 3,016,296$
Reconciliation of Operating Income (Loss) to
to Net Cash Provided by (used in) Operating Activities:
Operating income (loss) (511,115)$ (161,197)$ (2,829,280)$ 822,427$
Adjustments to reconcile operating income (loss)
to net cash provided by (used in) operating activities:
Depreciation 503,186 114,296 - -
Changes in assets and liabilities:
(Increase)/decrease in accounts receivables - - - -
(Increase)/decrease in lease receivables - - - -
(Increase)/decrease in inventory 43,575 - - -
(Increase)/decrease in prepaid items - - - -
Increase/(decrease) in accounts payable (203,770) (31,218) 565 (31,434)
Increase/(decrease) in accrued liabilities 11,142 (732) - (66)
Increase/(decrease) in deposit payable - - - -
Increase/(decrease) in compensated absences 3,756 - - -
Increase/(decrease) in claims payable - - 3,076,146 (743,674)
Increase/(decrease) in deferred inflows of resources lease related - - - -
Net cash provided by (used in) operating activities (153,226)$ (78,851)$ 247,431$ 47,253$
(Continued)
City of Gilroy
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2022
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Facility Information Personnel
Services Technologies Benefits Total
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers and users 3,667,357$ 2,574,013$ 16,805,383$ 29,218,313$
Cash paid to suppliers for goods and services (3,162,008) (3,273,411) (17,907,129) (26,679,282)
Cash paid to employees for services - (5,289) - (6,087)
Cash paid for insurance claims (37,279) - - (3,808,700)
Net cash provided by (used in) operating activities 468,070 (704,687) (1,101,746) (1,275,756)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:
Cash received from other funds - - - 1,142,412
Net cash provided by noncapital financing activities - - - 1,142,412
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Acquisition of capital assets (345,210) (724,068) - (1,508,138)
Net cash (used in) capital and related
financing activities (345,210) (724,068) - (1,508,138)
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest received 13,597 10,507 - 121,963
Net cash provided by investing activities 13,597 10,507 - 121,963
Net change in cash and cash equivalents 136,457 (1,418,248) (1,101,746) (1,519,519)
RECONCILIATION OF CASH AND CASH EQUIVALENTS
TO STATEMENTOF NET POSITION:
Beginning of year 1,943,261 4,633,048 2,458,346 21,933,257
End of year 2,079,718$ 3,214,800$ 1,356,600$ 20,413,738$
CASH AND CASH EQUIVALENTS:
Cash and investments 2,079,718$ 3,214,800$ 1,356,600$ 20,413,738$
Total cash and cash equivalents 2,079,718$ 3,214,800$ 1,356,600$ 20,413,738$
Reconciliation of Operating Income (Loss) to
to Net Cash Provided by (used in) Operating Activities:
Operating income (loss) 353,186$ (596,998)$ (1,996,000)$ (4,918,977)$
Adjustments to reconcile operating income (loss)
to net cash provided by (used in) operating activities:
Depreciation - 82,203 - 699,685
Changes in assets and liabilities:
(Increase)/decrease in accounts receivables (6,321) - (9) (6,330)
(Increase)/decrease in lease receivables (799,819) (799,819)
(Increase)/decrease in inventory - - - 43,575
(Increase)/decrease in prepaid items - (73,591) - (73,591)
Increase/(decrease) in accounts payable 93,795 (111,012) 12,812 (270,262)
Increase/(decrease) in accrued liabilities 49,142 546 881,451 941,483
Increase/(decrease) in deposit payable 4,276 - - 4,276
Increase/(decrease) in compensated absences 4,676 (5,835) - 2,597
Increase/(decrease) in claims payable - - - 2,332,472
Increase/(decrease) in deferred inflows of resources lease related 769,135 - - 769,135
Net cash provided by (used in) operating activities 468,070$ (704,687)$ (1,101,746)$ (1,275,756)$
(Concluded)
Combining Statement of Cash Flows (Continued)
Internal Service Funds
For the Year Ended June 30, 2022
City of Gilroy
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These funds account for assets held by the City on behalf of other organizations.
Fiduciary Funds
Senior Advisory Board - This fund is used to account for revenues that come from fundraising and donations. The funds are used
to buy equipment for the Senior Center.
Highway 152 Series 2018 - This fund is used to account for special assessments collected and pay the bonded indebtedness for the
Highway 152 Series 2018 Bonds.
Custodial Funds
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Senior
Advisory Highway 152
Board Series 2018 Total
Assets:
Cash and investments 8,886$ 830,860$ 839,746$
Cash and investments with fiscal agent - 290,688 290,688
Total Assets 8,886 1,121,548 1,130,434
Net Position:
Restricted for:
Individuals, organizations, and other governments 8,886 1,121,548 1,130,434
Total Net Position 8,886$ 1,121,548$ 1,130,434$
Custodial Funds
City of Gilroy
Combining Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2022
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Senior
Advisory Highway 152
Board Series 2018 Total
ADDITIONS:
Taxes -$ 922,700$ 922,700$
Investment income - 163 163
Other income 500 - 500
Total additions 500 922,863 923,363
DEDUCTIONS
General administration - 15,357 15,357
Payments on conduit bonds - principal - 774,579 774,579
Payments on conduit bonds - interest - 110,034 110,034
Total deductions - 899,970 899,970
CHANGE IN NET POSITION 500 22,893 23,393
NET POSITION:
Beginning of year, as restated 8,386 1,098,655 1,107,041
End of year 8,886$ 1,121,548$ 1,130,434$
For the Year Ended June 30, 2022
Custodial Funds
City of Gilroy
Combining Statement of Changes in Fiduciary Net Position
Fiduciary Funds
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STATISTICAL
SECTION
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Contents Page
Financial Trends 174-183
Revenue Capacity 184-193
Debt Capacity 194-201
Demographic and Economic Information 203-204
Operating Information 205-208
STATISTICAL SECTION
(Unaudited)
This part of the City of Gilroy's comprehensive annual financial report presents detailed information as a context for understanding
what the information in the financial statements, note disclosures, and required supplementary information says about the City's
overall financial health.
These tables contain trend information to help the reader understand how the City's financial
performance and well-being have changed over time.
Sources: Unless otherwise noted, the information in these tables is derived from the comprehensive
annual financial reports for the relevant year.
These tables contain information to help the reader assess the City's most significant local
revenue source, the property tax.
These tables present information to help the reader assess the affordability of the City's current
levels of outstanding debt and the City's ability to issue additional debt in the future.
These tables offer demographic and economic indicators to help the reader understand the
environment within which the City's financial activities take place.
These tables contain service and infrastructure data to help the reader understand how the
information in the City's financial report relates to the services the City provides and the
activities it performs.
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2013 2014 2015 2016 2017
Governmental Activities:
Net investment in capital assets 170,944,637$ 162,950,296$ 167,625,947$ 159,684,128$ 154,863,285$
Restricted 19,616,322 24,277,233 22,320,085.00 35,564,991 41,636,040
Unrestricted 26,414,676 28,892,199 (26,524,001) (25,032,197) (25,229,815)
Total governmental activities net position 216,975,635 216,119,728 163,422,031 170,216,922 171,269,510
Business-type Activities:
Net investment in capital assets 91,165,074 88,728,174 90,335,349 90,917,108 88,183,287
Restricted - - - - -
Unrestricted 82,012,944 85,736,094 84,832,390 88,668,400 93,612,020
Total business-type activities net position 173,178,018 174,464,268 175,167,739 179,585,508 181,795,307
Primary Government:
Net investment in capital assets 262,109,711 251,678,470 257,961,296 250,601,236 243,046,572
Restricted 19,616,322 24,277,233 22,320,085 35,564,991 41,636,040
Unrestricted 108,427,620 114,628,293 58,308,389 63,636,203 68,382,205
Total primary government net position 390,153,653$ 390,583,996$ 338,589,770$ 349,802,430$ 353,064,817$
City of Gilroy
Net Position By Component
Last Ten Fiscal Years
(accrual basis of accounting)
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2018 2019 2020 2021 2022
Governmental Activities:
Net investment in capital assets 159,069,886$ 156,750,373$ 151,904,792$ 149,891,568$ 147,079,194$
Restricted 48,731,281 49,688,804 57,137,761 57,570,568 71,627,654
Unrestricted (36,193,491) (37,759,850) (42,674,183) (42,545,831) (28,023,535)
Total governmental activities net position 171,607,676 168,679,327 166,368,370 164,916,305 190,683,313
Business-type Activities:
Net investment in capital assets 87,336,604 91,134,932 86,503,324 83,119,598 73,389,328
Restricted - - - - -
Unrestricted 98,375,675 100,053,259 97,543,664 99,198,302 109,250,688
Total business-type activities net position 185,712,279 191,188,191 184,046,988 182,317,900 182,640,016
Primary Government:
Net investment in capital assets 246,406,490 247,885,305 238,408,116 233,011,166 220,468,522
Restricited 48,731,281 49,688,804 57,137,761 57,570,568 71,627,654
Unrestricted 62,182,184 62,293,409 54,869,481 56,652,471 81,227,153
Total primary government net position 357,319,955$ 359,867,518$ 350,415,358$ 347,234,205$ 373,323,329$
(accrual basis of accounting)
City of Gilroy
Net Position By Component (Continued)
Last Ten Fiscal Years
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2013 2014 2015 2016 2017
Expenses:
Governmental activities:
General government 3,732,098$ 3,795,033$ 3,619,582$ 3,900,226$ 6,437,408$
Public safety 28,747,964 29,696,344 30,273,444 31,020,245 33,393,829
Community development 15,485,705 14,824,460 15,901,215 21,413,283 19,167,193
Public works 7,686,862 7,726,938 7,807,765 8,217,318 8,978,597
Recreation services - - - - -
Interest and other charges 3,226,789 3,744,396 3,406,855 3,327,992 3,256,733
Total governmental activities expenses 58,879,418 59,787,171 61,008,861 67,879,064 71,233,760
Business-type activities
Sewer 10,206,770 9,929,622 9,806,990 12,298,662 12,060,236
Water 8,081,041 8,642,660 8,329,710 8,370,320 9,197,426
Total business-type activities expenses 18,287,811 18,572,282 18,136,700 20,668,982 21,257,662
Total primary government expenses 77,167,229$ 78,359,453$ 79,145,561$ 88,548,046$ 92,491,422$
Program revenues:
Governmental activities:
Charges for services:
General government 1,119,217$ 1,415,106$ 2,096,137$ 1,651,713$ 3,087,335$
Public safety 1,004,530 897,059 1,030,410 1,146,593 1,439,418
Community development 3,866,305 5,434,764 7,385,391 6,145,791 5,207,571
Public works 757,445 810,503 886,988 978,780 986,582
Recreation services - - - - -
Operating grants and contributions 14,091,083 15,057,119 13,109,933 22,838,535 15,860,767
Capital grants and contributions 3,207,487 3,157,642 8,999,636 3,820,892 5,438,560
Total governmental activities program revenues 24,046,067 26,772,193 33,508,495 36,582,304 32,020,233
Business-type activities:
Charges for services:
Sewer 8,441,024 10,359,334 11,984,798 12,833,030
Water 8,179,888 8,640,784 7,330,300 9,156,082
Operating grants and contributions - - - - -
Capital grants and contributions 1,410,773 179,707 5,086,464 1,172,844
Total business-type activities program revenues 18,031,685 19,179,825 - 24,401,562 23,161,956
Total primary government program revenues 42,077,752$ 45,952,018$ 33,508,495$ 60,983,866$ 55,182,189$
Net revenue (expense):
Governmental activities (34,833,351)$ (33,014,978)$ (27,500,366)$ (31,296,760)$ (39,213,527)$
Business-type activities (256,126) 607,543 (18,136,700) 3,732,580 1,904,294
Total primary government net expense (35,089,477)$ (32,407,435)$ (45,637,066)$ (27,564,180)$ (37,309,233)$
(accrual basis of accounting)
Fiscal Year
City of Gilroy
Changes in Net Position
Last Ten Fiscal Years
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2018 2019 2020 2021 2022
Expenses:
Governmental activities:
General government 7,315,065$ 7,696,445$ 6,131,791$ 7,315,868$ 10,224,823$
Public safety 35,591,790 37,837,438 40,088,865 40,797,962 38,706,978
Community development 19,211,323 18,348,409 8,556,959 7,147,532 7,689,175
Public works 9,654,957 9,526,627 23,525,423 16,862,660 13,840,272
Recreation services - - - 1,779,121 1,600,210
Interest and other charges 3,147,606 3,226,849 2,431,588 2,081,420 2,089,473
Total governmental activities expenses 74,920,741 76,635,768 80,734,626 75,984,563 74,150,931
Business-type activities
Sewer 11,538,388 14,044,716 14,668,434 15,820,944 12,678,990
Water 9,937,768 11,777,220 12,603,780 16,435,598 10,930,989
Total business-type activities expenses 21,476,156 25,821,936 27,272,214 32,256,542 23,609,979
Total primary government expenses 96,396,897$ 102,457,704$ 108,006,840$ 108,241,105$ 97,760,910$
Program revenues:
Governmental activities:
Charges for services:
General government 3,280,977$ 3,726,486$ 3,550,758$ 2,815,647$ 4,595,133$
Public safety 959,277 1,234,017 1,188,951 1,242,281 476,918
Community development 6,430,321 6,624,477 3,909,360 4,185,811 3,346,864
Public works 977,834 1,009,235 715,299 3,593,959 1,317,695
Recreation services - - - 223,154 599,265
Operating grants and contributions 19,389,757 13,146,274 14,247,635 16,482,904 15,464,192
Capital grants and contributions 10,319,300 2,649,021 1,931,458 2,000,357 18,227,036
Total governmental activities program revenues 41,357,466 28,389,510 25,543,461 30,544,113 44,027,103
Business-type activities:
Charges for services:
Sewer 12,961,285 12,904,657 12,872,189 12,702,398 12,912,113
Water 11,343,036 12,294,119 14,590,973 14,830,153 13,959,847
Operating grants and contributions - - - - 414,952
Capital grants and contributions 2,330,335 4,160,510 2,439,117 2,511,059 566,140
Total business-type activities program revenues 26,634,656 29,359,286 29,902,279 30,043,610 27,853,052
Total primary government program revenues 67,992,122$ 57,748,796$ 55,445,740$ 60,587,723$ 71,880,155$
Net revenue (expense):
Governmental activities (33,563,275)$ (48,246,258)$ (55,191,165)$ (45,440,450)$ (30,123,828)$
Business-type activities 5,158,500 3,537,350 2,630,065 (2,212,932) 4,243,073
Total primary government net expense (28,404,775)$ (44,708,908)$ (52,561,100)$ (47,653,382)$ (25,880,755)$
(accrual basis of accounting)
Fiscal Year
City of Gilroy
Changes in Net Position (Continued)
Last Ten Fiscal Years
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General revenues and other changes in net position:
Governmental Activities:
Taxes:
Property taxes 9,462,337$ 9,728,458$ 10,862,568$ 11,468,510$ 12,278,553$
Sales tax 14,114,277 14,423,130 15,858,910 17,884,735 17,768,469
Transient occupancy taxes 1,092,486 1,234,798 1,501,837 1,676,691 1,709,332
Franchise tax 1,326,364 1,408,045 1,463,770 1,569,059 1,623,951
Other taxes 4,694,440 4,759,067 4,905,868 5,116,588 5,264,486
Investment income 350,105 630,095 619,139 647,057 900,622
State motor vehicle in lieu 26,670 22,072 21,479 21,385 24,715
Other 390,812 632,113 164,321 392,815 15,188
Transfers (669,940) (678,707) (689,011) (685,189) (305,505)
Total governmental activities 30,787,551 32,159,071 34,708,881 38,091,651 39,279,811
Business-type activities:
Investment and rental income - - - - -
Other - - - - -
Transfers 669,940 678,707 689,011 685,189 305,505
Total business-type activities 669,940 678,707 689,011 685,189 305,505
Total primary government 31,457,491$ 32,837,778$ 35,397,892$ 38,776,840$ 39,585,316$
Changes in net position:
Governmental activities (4,045,800)$ (855,907)$ 7,208,515$ 6,794,891$ 66,284$
Business-type activities 413,814 1,286,250 3,800,429 4,417,769 2,209,799
Total primary government (3,631,986)$ 430,343$ 11,008,944$ 11,212,660$ 2,276,083$
Net Position (Net Assets), Beginning 397,364,877$ 390,153,653$ 390,583,996$ 338,589,770$ 348,802,430$
Beginning Fund Balance Restatement (1)(3,579,238) - (63,003,170) - -
Changes in Net Position (Net Assets) (3,631,986) 430,343 11,008,944 11,212,660 2,276,083
Net Position (Net Assets), Ending 390,153,653$ 390,583,996$ 338,589,770$ 349,802,430$ 351,078,513$
(1)
(accrual basis of accounting)
Fiscal Year
Net Position, as restated in FY 2020, 2018, 2015 and 2013
City of Gilroy
Changes in Net Position (Continued)
Last Ten Fiscal Years
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2018 2019 2020 2021 2022
General revenues and other changes in net position:
Governmental Activities:
Taxes:
Property taxes 13,161,002$ 14,476,481$ 15,595,639$ 17,016,855$ 20,294,522$
Sales tax 18,827,189 20,186,105 17,233,882 18,584,534 23,216,109
Transient occupancy taxes 1,722,355 1,771,882 1,237,812 1,105,300 1,545,721
Franchise tax 1,713,690 1,669,817 1,855,622 1,732,613 1,874,046
Other taxes 5,192,899 5,093,813 5,667,201 5,030,153 6,107,309
Investment income 1,190,732 2,567,147 2,039,471 502,770 (418,588)
State motor vehicle in lieu 29,444 26,695 - - -
Other 571,340 166,316 127,479 644,291 3,345,996
Transfers 1,241,528 (640,347) (447,847) (641,121) (74,279)
Total governmental activities 43,650,179 45,317,909 43,309,259 43,975,395 55,890,836
Business-type activities:
Investment and rental income - 1,298,215 1,169,133 (157,277) (4,011,115)
Other - - 15,879
Transfers (1,241,528) 640,347 447,847 641,121 74,279
Total business-type activities (1,241,528) 1,938,562 1,616,980 483,844 (3,920,957)
Total primary government 42,408,651$ 47,256,471$ 44,926,239$ 44,459,239$ 51,969,879$
Changes in net position:
Governmental activities 10,086,904$ (3,209,094)$ (11,881,906)$ (1,465,055)$ 25,767,008$
Business-type activities 3,916,972 5,475,912 4,247,045 (1,729,088) 322,116
Total primary government 14,003,876$ 2,266,818$ (7,634,861)$ (3,194,143)$ 26,089,124$
Net Position (Net Assets), Beginning
Beginning Fund Balance Restatement (1)343,316,059 357,319,955 358,050,219 350,428,348 347,234,205
Changes in Net Position (Net Assets) 14,003,876 2,266,818 (7,634,861) (3,194,143) 26,089,124
Net Position (Net Assets), Ending 357,319,935$ 359,586,773$ 350,415,358$ 347,234,205$ 373,323,329$
(1)
(accrual basis of accounting)
Fiscal Year
Net Position, as restated in FY 2020, 2018, 2015 and 2013
City of Gilroy
Changes in Net Position (Continued)
Last Ten Fiscal Years
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General fund:
Nonspendable 45,003$ 52,592$ 74,622$ 84,923$ 74,217$
Restricted - - - - -
Committed - - - - -
Assigned - - - - -
Unassigned 23,038,183 22,291,553 21,316,940 22,202,316 24,354,609
Total general fund 23,083,186$ 22,344,145$ 21,391,562$ 22,287,239$ 24,428,826$
All other governmental funds:
Nonspendable 5,454,973 9,265 9,265 8,670 9,470
Restricted 31,995,403 41,474,238 40,117,010 44,922,496 50,775,875
Assigned 226,654 576,889 544,284 2,827,521 1,588,907
Unassigned (12,423,935) (11,866,882) (12,884,818) (7,883,587) (5,761,804)
Total all other governmental funds 25,253,095$ 30,193,510$ 27,785,741$ 39,875,100$ 46,612,448$
(modified accrual basis of accounting)
Fiscal Year
City of Gilroy
Fund Balances of Governmental Funds
Last Ten Fiscal Years
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2018 2019 2020 2021 2022
General fund:
Nonspendable 126,965$ 76,000$ 126,915$ 47,874$ 739$
Restricted - - 1,983,396
Committed - - - - 5,572,376
Assigned - - -
Unassigned 25,475,105 27,683,870 14,731,555 19,585,369 30,349,205
Total general fund 25,602,070$ 27,759,870$ 14,858,470$ 19,633,243$ 37,905,716$
All other governmental funds:
Nonspendable 25,570 1,000 706,754 - -
Restricted 55,248,281 57,445,219 57,421,683 58,391,239 67,727,936
Assigned 1,448,954 1,483,818 5,368,008 5,276,579 5,494,298
Unassigned (2,841,776) (4,206,362) (6,380,638) (5,397,542) -
Total all other governmental funds 53,881,029$ 54,723,675$ 57,115,807$ 58,270,276$ 73,222,234$
(modified accrual basis of accounting)
Fiscal Year
City of Gilroy
Fund Balances of Governmental Funds (Continued)
Last Ten Fiscal Years
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2013 2014 2015 2016 2017
Revenues:
Taxes 33,041,266$ 33,902,225$ 37,190,336$ 40,177,903$ 41,350,739$
Licenses and permits 2,071,569 2,088,024 2,847,912 3,720,755 2,713,733
Intergovernmental 5,258,266 5,235,608 3,260,688 4,291,272 3,748,000
Charges for services 13,944,828 17,081,714 17,396,590 24,960,535 18,973,863
Developer impact fees
Fines 251,313 226,220 281,580 266,163 293,899
Special assessments - - - - -
Investment income (loss)385,744 697,612 600,960 608,641 762,671
Contribution from property owners - - - - -
Miscellaneous 1,035,480 1,464,470 2,128,737 2,059,106 1,604,397
Total revenues 55,988,466 60,695,873 63,706,803 76,084,375 69,447,302
Expenditures:
General government 3,793,066 4,073,708 4,025,604 4,532,241 4,906,824
Public safety 26,416,606 27,448,432 28,845,371 29,867,361 30,830,873
Public works 6,029,323 6,072,624 6,322,864 6,764,060 7,231,274
Recreation services
Community development 14,393,211 10,031,035 16,393,573 14,675,204 11,052,313
Capital outlay
Debt service:
Principal retirement 1,350,000 25,745,000 2,215,000 2,305,000 2,459,619
Interest 3,319,071 3,525,898 3,557,829 3,479,710 3,410,441
Bond issuance costs - 275,515 2,582 - -
Total expenditures 55,301,277 77,172,212 61,362,823 61,623,576 59,891,344
Excess of revenues over
(under) expenditures 687,189 (16,476,339) 2,343,980 14,460,799 9,555,958
Other Financing Sources (Uses):
Transfers in 3,746,485 3,574,115 4,318,330 6,803,782 4,233,745
Transfers out (7,616,425) (7,154,454) (11,012,940) (8,521,471) (4,910,768)
Issuance of loan/notes - - 959,229 241,926 -
Issuance of bonds - 23,120,000 - - -
Payment to refunded bond escrow
Payment to bond excrow agent - - - - -
Premium on bonds - 1,138,052 - - -
Total other financing sources (uses)(3,869,940) 20,677,713 (5,735,381) (1,475,763) (677,023)
Net Change in fund balances (3,182,751)$ 4,201,374$ (3,391,401)$ 12,985,036$ 8,878,935$
Fund balances - July 1 51,519,032 48,336,281 52,568,704 49,177,303 62,162,339
Fund balances - June 30 48,336,281$ 52,537,655$ 49,177,303$ 62,162,339$ 71,041,274$
Debt service as a percentage
of noncapital expenditures 9.57%38.74%9.55%9.53%9.95%
(modified accrual basis of accounting)
Fiscal Year
City of Gilroy
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
182
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2018 2019 2020 2021 2022
Revenues:
Taxes 43,512,402$ 51,483,855$ 44,269,937$ 45,916,497$ $53,037,707
Licenses and permits 2,751,137 3,487,338 1,776,651 2,278,304 2,672,186
Intergovernmental 4,047,728 3,913,484 5,473,529 6,612,274 14,805,279
Charges for services 22,820,605 11,501,828 13,951,822 17,484,867 7,380,631
Developer impact fees - - - - 18,227,036
Fines 208,305 239,873 282,535 231,688 262,403
Special assessments - - - - -
Investment income (loss) 1,084,408 1,247,543 1,884,149 358,452 (541,243)
Contribution from property owners - - - - -
Miscellaneous 1,635,888 1,990,459 1,348,130 2,867,269 4,023,213
Total revenues 76,060,473 73,864,380 68,986,753 75,749,351 99,867,212
Expenditures:
General government 5,103,946 5,760,831 6,361,042 5,931,022 7,949,662
Public safety 31,781,515 34,062,421 36,867,887 35,856,183 37,687,794
Public works 7,723,166 7,831,193 7,897,645 7,231,722 6,094,830
Recreation services - - - 1,702,666 1,463,448
Community development 14,993,509 15,421,483 19,143,243 5,523,912 5,535,526
Capital outlay - - - 6,243,057 2,639,733
Debt service:
Principal retirement 2,558,818 2,654,708 2,986,212 2,817,325 2,820,129
Interest 3,302,252 3,448,556 3,011,707 2,784,374 2,377,338
Bond issuance costs - 112,903 - - -
Total expenditures 65,463,206 69,292,095 76,267,736 68,090,261 66,568,460
Excess of revenues over
(under) expenditures 10,597,267 4,572,285 (7,280,983) 7,659,090 33,298,752
Other Financing Sources (Uses):
Transfers in 4,503,781 4,236,075 8,937,984 24,306,099 6,603,536
Transfers out (6,659,253) (5,876,422) (12,905,997) (24,953,804) (6,677,815)
Issuance of loan/notes - -
Issuance of bonds - - 19,087,551 16,459,825 -
Payment to refunded bond escrow (19,350,000) (17,555,000) -
Payment to bond escrow agent - (8,565,000) - - -
Premium on bonds - 8,633,538 - - -
Total other financing sources (uses)(2,155,472) (1,571,809) (4,230,462) (1,742,880) (74,279)
Net Change in fund balances 8,441,795$ 3,000,476$ (11,511,445)$ 5,916,210$ 33,224,473$
Fund balances - July 1 71,041,274 79,483,069 83,485,722 71,987,267 77,903,477
Fund balances - June 30 79,483,069$ 82,483,545$ 71,974,277$ 77,903,477$ 111,127,950$
Debt service as a percentage
of noncapital expenditures 9.08%9.09%7.96%9.05%8.85%
(modified accrual basis of accounting)
Fiscal Year
City of Gilroy
Changes in Fund Balances of Governmental Funds (Continued)
Last Ten Fiscal Years
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CATEGORY 2012 2013 2014 2015 2016
Outlet Center 2,833,256$ 2,845,863$ 2,867,431$ 2,899,778$ 2,747,030$
Newman Development 2,131,034 2,201,623 2,230,855 2,332,215 2,426,698
Regency Center 940,836 949,436 946,073 965,112 999,738
Downtown Core 224,977 271,227 296,354 316,595 356,687
General Retail 6,130,103 6,268,149 6,340,713 6,513,700 6,530,153
Auto Dealers 1,045,717 1,131,680 1,649,758 2,136,541 2,633,013
Service Stations 1,543,421 1,457,239 1,442,888 1,292,736 1,094,398
Transportation 2,589,138 2,588,919 3,092,646 3,429,277 3,727,411
Others 3,284,517 3,344,680 3,697,010 3,695,108 4,018,337
Allocation from State and County 1,829,803 1,912,529 1,292,761 2,220,825 3,608,834
TOTALS:13,833,561$ 14,114,277$ 14,423,130$ 15,858,910$ 17,884,735$
Population 50,081 51,505 52,413 53,000 55,170
Sales Tax Per Capita 276 274 275 299 324
Source: MBIA MuniServices Company
State of California, Department of Finance, Population Estimates for California Cities
Fiscal Year
City of Gilroy
Sales Tax by Category
Last Eleven Fiscal Years
0
50
100
150
200
250
300
350
400
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
0
5,000
10,000
15,000
20,000
25,000
Others State/County Gen. Retail Transportation Per Capita
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CATEGORY 2017 2018 2019 2020 2021 2022
Outlet Center 2,669,216$ 2,571,713$ 2,464,617$ 1,739,806$ 1,869,275$ 2,042,775$
Newman Development 2,500,961 2,529,804 2,743,665 2,643,207 2,955,455 3,251,290
Regency Center 968,005 987,417 1,004,376 896,599 1,000,140 1,028,435
Downtown Core 398,344 385,497 505,600 472,427 512,427 547,587
General Retail 6,536,526 6,474,431 6,718,258 5,752,039 6,337,297 6,870,087
Auto Dealers 3,224,719 3,691,038 3,855,166 3,056,022 2,446,254 3,609,865
Service Stations 1,064,232 1,290,582 1,298,298 1,129,189 1,085,319 1,572,748
Transportation 4,288,951 4,981,620 5,153,464 4,185,211 3,531,573 5,182,613
Others 4,263,541 4,632,323 4,418,367 4,294,454 4,580,258 5,317,890
Allocation from State and County 2,679,451 2,152,877 3,896,016 3,002,179 3,867,949 4,238,018
TOTALS:17,768,469$ 18,241,251$ 20,186,105$ 17,233,883$ 18,317,077$ 21,608,608$
Population 55,936 55,615 55,928 57,084 59,920 59,269
Sales Tax Per Capita 318 328 361 302 306 365
Source: MBIA MuniServices Company
State of California, Department of Finance, Population Estimates for California Cities
Fiscal Year
City of Gilroy
Sales Tax by Category (Continued)
Last Ten Fiscal Years
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Agency 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
6.500% 6.500% 6.500% 6.250% 6.000% 6.000% 6.000% 6.000% 6.000% 6.000%
0.250% 0.250% 0.250% 0.250% 0.250% 0.250% 0.250% 0.250% 0.250% 0.250%
0.750% 0.750% 0.750% 1.000% 1.000% 1.000% 1.000% 1.000% 1.000% 1.000%
0.125% 0.125% 0.125% 0.125% 0.125% 0.125% 0.125% 0.125% 0.125% 0.125%
----------
0.500% 0.500% 0.500% 0.500% 0.500% 0.500% 0.500% 0.500% 0.500% 0.500%
0.500% 0.500% 0.500% 0.500% 0.500% 0.500% 0.500% 0.500% 0.500% 0.500%
0.125% 0.125% 0.125% 0.125% 0.125% 0.125% 0.125% 0.125% 0.125% 0.125%
----0.500% 0.500% 0.500% 0.500% 0.500% 0.500%
2020 Peninsula Corridor JPB Retail
Transactions and Use Tax ---------
0.125%
Total 8.750% 8.750% 8.750% 8.750% 9.000% 9.000% 9.000% 9.000% 9.000% 9.125%
Source: California Department of Tax and Fee Administration
SCC Transit District
SCC Valley Transportation Authority
SCC VTA Bay Area Rapid Transit
Silicon Valley Transportation Solutions Tax
State of California
Santa Clara County (SCC) Transportation Funds
City of Gilroy
SCC Retail Transactions and Use Tax
SCC Transactions and Use Tax
Last Ten Fiscal Years
Sales Tax Rates
City of Gilroy
FISCAL YEAR
0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 10.00%
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
Total
Gilroy
186
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Taxpayer Business Type Taxpayer Business Type
Arco AM/PM Mini Marts Service Stations Arco AM/PM Mini Marts Service Stations
Best Buy Stores Furniture/Appliance Best Buy Stores Furniture/Appliance
Chevron Service Stations Service Stations Calvin Klein Apparel Stores
Costco Wholesale Department Stores Chevron Service Stations Service Stations
Freeway Toyota of Gilroy Auto Sales - New Coach Stores Apparel Stores
Gilroy Buick GMC Auto Sales - New Costco Wholesale Department Stores
Gilroy Chevrolet Cadillac Auto Sales - New Gilroy Auto Outlet Auto Sales - New
Gilroy Chrysler Dodge Jeep Ram Auto Sales - New Gilroy Chevrolet Cadillac Auto Sales - New
Gilroy Toyota Auto Sales - New Gilroy Gas & Mini-Mart Service Stations
Happy Daze RV's Misc. Vehicle Sales Gilroy Toyota Auto Sales - New
Home Depot Bldg.Matls-Retail Home Depot Bldg.Matls-Retail
Hyundai Of Gilroy Auto Sales - New JN Abbott Distributor Energy Sales
Lenovo I.T. Infrastructure Kohl's Department Stores Department Stores
Lowe's Home Centers Bldg.Matls-Retail Lowe's Home Improvement Bldg.Matls-Retail
McDonald'S Restaurants Restaurants Nike Factory Store Apparel Stores
Nike Factory Store Apparel Stores Polo Ralph Lauren Apparel Stores
Ross Stores Apparel Stores Rotten Robbie Service Stations Service Stations
Rotten Robbie Service Stations Service Stations See-Grins RV Misc. Vehicle Sales
See Grins RV Misc. Vehicle Sales South County Chrysler Plymouth Auto Sales - New
Shell Service Stations Service Stations South County Nissan Auto Sales - New
Target Stores Department Stores Target Stores Department Stores
Tesla Auto Sales - New The Garlic Farm Travel Center Service Stations
Union 76 Service Stations Service Stations TV's Gas & Foodmart Service Stations
Vans Apparel Stores Valero Service Stations Service Stations
Wal Mart Stores Department Stores Wal Mart Stores Department Stores
Source: MuniServices, LLC / Avenu Insights & Analytics
City of Gilroy
Principal Sales Tax Producers
Last Fiscal Year and Nine Years Ago
2021-22 2012-13
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Fiscal
Year
End Local Secured*
Homeowner
Exempt
Valuation
Net Local
Secured Net Utility Net Unsecured
Net Taxable
Assessed Value
Total
Direct Tax
Rate (1)
Estimated
Actual
Taxable Value
(2)
Factor of
Taxable
Assessed
Value (2)
Assessed
Value as a
Percentage
of Actual
Value
2012-13 5,467,139,776 46,209,800 5,420,929,976 72,086,470 266,918,393 5,759,934,839 0.902963 - - -
2013-14 5,913,805,270 46,463,200 5,867,342,070 64,186,470 260,981,844 6,192,510,384 0.902963 - - -
2014-15 6,395,754,046 46,050,200 6,349,703,846 52,530,836 265,879,967 6,668,114,649 0.902963 - - -
2015-16 6,798,621,370 45,871,000 6,752,750,370 47,030,836 268,445,327 7,068,226,533 0.902963 - - -
2016-17 7,385,130,561 46,578,000 7,338,552,561 42,130,836 273,713,487 7,654,396,884 0.902963 - - -
2017-18 7,872,947,886 47,244,400 7,825,703,486 39,330,836 263,667,226 8,128,701,548 0.097037 10,250,699,087 1.261050 79.30%
2018-19 8,445,397,378 48,090,000 8,397,307,378 38,939,704 256,724,279 8,692,971,361 0.097037 11,893,042,148 1.368122 73.09%
2019-20 9,001,686,593 47,874,400 8,953,812,193 32,539,704 257,410,089 9,243,761,986 0.097037 16,306,012,109 1.764002 56.69%
2020-21 9,557,360,668 47,341,000 9,510,019,668 29,739,704 267,854,749 9,807,614,121 0.097037 11,688,408,441 1.191769 83.91%
2021-22 9,968,898,669 46,512,200 9,922,386,469 27,039,704 293,294,693 10,242,720,866 0.097037 14,183,999,567 1.384788 72.21%
Source: Santa Clara County Assessor data, MuniServices, LLC / Avenu Insights & Analytics
Source: 2016-17 and prior, previously published ACFR.
*Local secured is net of other exemptions.
1.) Total direct tax rate is the city share of the 1% Proposition 13 tax only for TRA 02-000.
City of Gilroy
Citywide Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
2.) Estimated Actual Value is derived from a series of calculations comparing median assessed values from 1940 to current median sale prices. Based on these
calculations a multiplier value was extrapolated and applied to current assessed values.
188
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Category 2017-18 2018-19 2019-20 2020-21 2021-22
Residential 6,316,795,853 6,846,995,669 7,292,373,081 7,766,498,649 8,150,395,267
Commercial 848,468,930 899,654,270 931,059,983 989,793,738 1,013,695,555
Industrial 483,919,877 479,091,993 538,635,466 667,191,707 638,120,876
Vacant 162,759,148 - 216,844,260 163,403,099 192,863,417
Professional 101,593,308 17,961,578 108,709,436 110,337,229 116,626,048
Institutional 109,350,727 112,041,055 111,348,784 65,615,240 90,554,109
Agriculture 55,688,053 47,135,427 52,895,647 38,226,087 38,372,143
Public 17,729,263 104,675,187 23,763,391 31,201,356 37,443,425
Transportation 2,107,545 193,663,876 28,585,319 28,569,765 27,777,083
Unitary 39,330,836 38,939,704 32,539,704 29,739,704 27,039,704
Recreational 16,969,672 22,525,565 23,001,970 22,973,251 23,200,859
Social 18,281,904 18,604,008 19,463,964 19,888,529 20,081,552
Forestry 1,773,940 6,830,161 6,966,865 7,106,317 7,180,104
Unknown - 2,149,694 - - -
Gross Secured Value 8,174,769,056 8,790,268,187 9,386,187,870 9,940,544,671 10,383,350,142
Unsecured Value 265,619,082 260,824,323 261,877,511 272,030,637 297,421,158
Less Exemptions 311,686,590 358,121,149 404,303,395 404,961,187 438,050,434
Net Taxable Value 8,128,701,548 8,692,971,361 9,243,761,986 9,807,614,121 10,242,720,866
Source: Santa Clara County Assessor data, MuniServices, LLC / Avenu Insights & Analytics
Use code categories are based on Santa Clara County Assessor's data
City of Gilroy
Assessed Value of Property by Use Code
Last Five Fiscal Year
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2012-13 2013-14 2014-15 2015-16 2016-17
Basic City and County Levy
City Direct Rate 0.097037 0.097037 0.097037 0.097037 0.097037
All others 0.902963 0.902963 0.902963 0.902963 0.902963
1.000000 1.000000 1.000000 1.000000 1.000000
Override Assessments
County Retire Levy 0.038800 0.038800 0.038800 0.038800 0.038800
County Library 0.002400 0.002400 0.002400 0.002400 0.002400
VMC 2008 0.005100 0.003500 0.009100 0.008800 0.008600
County Housing Bond 2016 0.000000 0.000000 0.000000 0.000000 0.000000
Gilroy City Bond 2008 0.036500 0.034000 0.034000 0.029000 0.027200
Gilroy Unified School 2002 0.057100 0.058000 0.056600 0.052200 0.050100
Gilroy Unified 11/2008 0.047200 0.056400 0.059900 0.054900 0.051300
Gilroy Unified 2016 0.000000 0.000000 0.000000 0.000000 0.060000
Gavilan Community College 04 0.025700 0.024800 0.023900 0.022600 0.021600
Gavilan Jt CCD 2018 0.000000 0.000000 0.000000 0.000000 0.000000
Lease Debt-Gilroy Unified 0.000000 0.000000 0.000000 0.000000 0.000000
Lease Debt-Gilroy Unified Priorye 0.000000 0.000000 0.000000 0.000000 0.000000
SCVWD-State Water Project 0.006900 0.007000 0.006500 0.005700 0.008600
0.219700 0.224900 0.231200 0.214400 0.268600
TOTAL TAX RATE 1.219700 1.224900 1.231200 1.214400 1.268600
Source: Santa Clara County Auditor data, MuniServices, LLC / Avenu Insights & Analytics
Source: 2016-17 and prior: previously published ACFR
This table shows rates for TRA 02-000.
City of Gilroy
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
190
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2017-18 2018-19 2019-20 2020-21 2021-22
Basic City and County Levy
City Direct Rate 0.097037 0.097037 0.097037 0.097037 0.097037
All others 0.902963 0.902963 0.902963 0.902963 0.902963
1.000000 1.000000 1.000000 1.000000 1.000000
Override Assessments . .
County Retire Levy 0.038800 0.038800 0.038800 0.038800 0.038800
County Library 0.002400 0.002400 0.002400 0.002400 0.002400
VMC 2008 0.008200 0.007200 0.006900 0.006900 0.006100
County Housing Bond 2016 0.012660 0.010500 0.010000 0.000000 0.012660
Gilroy City Bond 2008 0.026000 0.025000 0.020000 0.019000 0.017500
Gilroy Unified School 2002 0.047800 0.046700 0.044400 0.042800 0.037000
Gilroy Unified 11/2008 0.049100 0.046300 0.054400 0.054100 0.052700
Gilroy Unified 2016 0.055900 0.015400 0.053400 0.055000 0.050900
Gavilan Community College 04 0.020000 0.019200 0.018700 0.018400 0.017900
Gavilan Jt CCD 2018 0.000000 0.000000 0.024400 0.023200 0.024100
Lease Debt-Gilroy Unified 0.000000 0.000000 0.000000 0.000000 0.000000
Lease Debt-Gilroy Unified Priorye 0.000000 0.000000 0.000000 0.000000 0.000000
SCVWD-State Water Project 0.006200 0.004200 0.004100 0.003700 0.005100
0.267060 0.215700 0.277500 0.264300 0.265160
TOTAL TAX RATE 1.267060 1.215700 1.277500 1.264300 1.265160
City of Gilroy
Direct and Overlapping Property Tax Rates (Continued)
Last Ten Fiscal Years
191
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Taxpayer Taxable Value ($)
Percent of Total
City Taxable Value
(%) Taxable Value ($)
Percent of Total
City Taxable Value
(%)
Simon Property Group 223,375,964 2.18% 192,498,625 3.38%
Olam West Coast Inc 75,011,158 0.73% 64,283,724 1.13%
United Natural Foods West Inc 66,993,926 0.65%
Excel Gilroy LLC 65,618,760 0.64% 82,146,096 1.44%
MG At Gilroy LP 56,231,000 0.55%
Mabury Vineyards LLC 54,932,735 0.54%
Performance Food Group Inc 49,331,081 0.48%
WalMart Real Est Bus Trt 35,807,144 0.35% 30,171,526 0.53%
Amazon Data Services Inc 31,285,000 0.31%
KB Home South Bay Inc 30,400,000 0.30%
E P & G South Valley Plaza LLC 28,381,819 0.28%
Central Valley Coalition 26,115,882 0.25%
Towman Cadena LLC 26,028,078 0.25%
CaLPine Gilroy Cogen LP 25,517,381 0.25%
Monterey Gourmet Foods 25,404,152 0.25%
Costco Wholesale Corp A WS Corp 24,293,412 0.24% 20,412,717 0.36%
Gilroy Plant 70 23,479,243 0.23%
Avery Cypress Pointe LP 22,261,533 0.22% 12,962,551 0.23%
Canciamilla Anthony Trustee 22,227,918 0.22%
Target Corporation 18,200,733 0.18% 15,684,850 0.28%
First Street Gilroy I LLC 18,185,387 0.18%
Gilroy Self Storage Partners LLC 17,383,090 0.17%
Mission Park Gilroy LLC 17,179,612 0.17% 14,780,116 0.26%
HD Development Of Maryland,Inc 17,075,763 0.17% 14,715,382 0.26%
Lee James Trustee 16,818,855 0.16%
Inland Western Gilroy I LLC 55,783,142 0.98%
Shapell Industries Inc 39,505,344 0.69%
7610 Isabella Way LLC 35,820,423 0.63%
South Valley Apts LLC 34,380,146 0.60%
Tin Inc 25,903,435 0.46%
Land Department 21,596,902 0.38%
CP6SV LLC 21,271,069 0.37%
Chinatown LLC 19,870,588 0.35%
McCarthy Gilroy LLC 18,479,586 0.32%
Sterigenics U S LLC 18,177,970 0.32%
Lowes Hiw Inc A Ws Corp 15,669,167 0.28%
Pulmuone Foods Usa Inc 14,886,583 0.26%
Gilroy Village Shopping Center 13,810,791 0.24%
Santa Teresa Properties LLC 13,704,151 0.24%
Town Place LLC 12,758,423 0.22%
Country Estates Venture 11,732,816 0.21%
Total Top 25 Taxpayers 1,017,539,626 9.93% 821,006,123 14.43%
Total Taxable Value 10,242,720,866 100.00% 5,687,848,369 100.00%
Source: Santa Clara County Assessor data, MuniServices, LLC / Avenu Insights & Analytics
City of Gilroy
Principal Property Tax Payers
Last Fiscal Year and Nine Years Ago
2021-22 2012-13
192
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Fiscal Year
Tax Levied for the Fiscal
Year Amount Collected Percent (%) of Levy
2012-13 5,634,085$ 5,622,101$ 99.79%
2013-14 6,054,088$ 6,029,696$ 99.60%
2014-15 6,515,197$ 6,547,657$ 100.50%
2015-16 6,903,278$ 6,963,327$ 100.87%
2016-17 7,472,764$ 7,487,528$ 100.20%
2017-18 7,941,242$ 7,941,242$ 100.00%
2018-19 8,521,868$ 8,521,868$ 100.00%
2019-20 9,060,136$ 9,060,136$ 100.00%
2020-21 9,598,648$ 9,598,648$ 100.00%
2021-22 9,990,898$ 9,990,898$ 100.00%
Source: MuniServices, LLC / Avenu Insights & Analytics
Source: 2016-17 and prior, previously published ACFR
City of Gilroy
Property Tax Levies and Collections
Last Ten Fiscal Years
193
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General Tax Lease Special
Fiscal Revenue Allocation Notes & Revenue Assessment Revenue
Year Bonds (4)(5)(6)Bonds Loans Bonds (4)Bonds Bonds
2012 33,860,997 - 24,340,000 24,438,409 - -
2013 33,162,870 - 24,340,000 23,710,455 - -
2014 32,434,743 - - 47,182,360 - -
2015 31,681,616 - 959,229 45,587,503 - -
2016 30,893,489 - 1,201,155 43,937,647 - -
2017 30,080,362 - 1,126,536 42,232,790 - -
2018 29,247,235 - 1,082,253 40,462,933 - -
2019 28,305,209 - 948,011 38,623,072 - -
2020 26,630,459 - 857,428 35,710,000 - -
2021 25,639,646 - 765,913 30,160,000 - -
2022 24,616,950 - 673,484 28,455,000 - -
Note: Details regarding the outstanding debt can be found in the notes to the basic financial statements.
Source:
(1) Finance Department, City of Gilroy
(2) Finance Department, County of Santa Clara
(3) In 2010, the City issued revenue refunding bonds to refinance an existing installment payment obligation.
(4) Presented net of related premiums, discounts, and adjustments.
(5) GO Bonds Series 2009 refinanced on June 1, 2019 to Series 2019 A.
(6) GO Bonds Series 2010 refinanced on November 5, 2019 to Series 2019 B.
(7) 2021 Wastewater Revenue Bonds Series A issued June 2021.
City of Gilroy
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities
194
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Wastewater Total % of
Fiscal Revenue Primary Property Net Debt
Year Bonds (3) (4) (7)Government (1)Assessed Value (2)per Capita
2012 24,237,585 106,876,991 1.85%2,134
2013 22,384,827 103,598,152 1.80%2,011
2014 20,477,068 100,094,171 1.62%1,910
2015 18,519,310 96,747,658 1.45%1,825
2016 16,491,551 92,523,842 1.31%1,677
2017 14,393,793 87,833,481 1.15%1,570
2018 12,206,034 82,998,455 1.02%1,484
2019 9,928,276 77,804,568 0.90%1,391
2020 7,545,517 70,743,404 0.77%1,239
2021 51,900,000 108,465,559 1.10%1,810
2022 49,520,000 103,265,434 1.01%1,735
Note: Details regarding the outstanding debt can be found in the notes to the basic financial statements.
Source:
(1) Finance Department, City of Gilroy
(2) Finance Department, County of Santa Clara
(3) In 2010, the City issued revenue refunding bonds to refinance an existing installment payment obligation.
(4) Presented net of related premiums, discounts, and adjustments.
(5) GO Bonds Series 2009 refinanced on June 1, 2019 to Series 2019 A.
(6) GO Bonds Series 2010 refinanced on November 5, 2019 to Series 2019 B.
(7) 2021 Wastewater Revenue Bonds Series A issued June 2021.
City of Gilroy
Ratios of Outstanding Debt by Type (Continued)
Last Ten Fiscal Years
Business-Type
Activities
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Ratio of
General Tax Net General Bonded General
Fiscal Obligation Allocation Assessed Debt to Net Bonded Debt
Year Bonds (4)Bonds Total (1)Value (2)Population (3)Assessed Value Per Capita
2012 33,860,997 33,860,997 5,791,344,943 50,081 0.585% 676
2013 33,162,870 33,162,870 5,759,934,839 51,505 0.576% 644
2014 32,434,743 32,434,743 6,192,510,384 52,413 0.524% 619
2015 31,681,616 31,681,616 6,668,114,649 53,000 0.475% 598
2016 30,893,489 30,893,489 7,068,226,533 55,170 0.437% 560
2017 30,080,362 30,080,362 7,654,396,884 55,936 0.393% 538
2018 29,247,235 29,247,235 8,128,701,548 55,615 0.360% 526
2019 28,305,209 28,305,209 8,692,971,361 55,928 0.326% 506
2020 26,630,459 26,630,459 9,243,761,986 57,084 0.288% 467
2021 25,639,646 25,639,646 9,807,614,121 59,920 0.261% 428
2022 24,616,950 24,616,950 10,242,720,866 59,520 0.240% 414
Source: (1) State of California, Finance Department.
(2) This is the amount restricted for the COP debt service principal payments.
City of Gilroy
Ratio of General Bonded Debt Outstanding
Last Ten Fiscal Years
OUTSTANDING GENERAL BONDED DEBT
50
51
52
53
55
56 56 56
57
58
59
0.000%
0.100%
0.200%
0.300%
0.400%
0.500%
0.600%
0.700%
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
44
46
48
50
52
54
56
58
60
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2021-22 Assessed Valuation: $10,289,233,066
Total Debt City’s Share of
DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT:6/30/2022 % Applicable (1)Debt 6/30/22
Santa Clara County 1,130,850,000 1.79% 20,185,673
Gavilan Joint Community College District 206,905,000 25.985 53,764,264
Gilroy Unified School District 353,032,495 82.396 290,884,655
City of Gilroy 24,616,950 100 24,616,950
City of Gilroy Community Facilities District No. 2000-1 5,883,344 100 5,883,344
Santa Clara Valley Water District Benefit Assessment District 48,150,000 1.785 859,478
TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT 396,194,364
DIRECT AND OVERLAPPING GENERAL FUND DEBT:
Santa Clara County General Fund Obligations 1,210,694,365 1.79% 21,610,894
Santa Clara County Pension Obligation Bonds 335,638,470 1.785 5,991,147
Santa Clara County Board of Education Certificates of Participation 1,820,000 1.785 32,487
Gavilan Joint Community College District General Fund Obligations 6,405,000 25.985 1,664,339
Gilroy Unified School District Certificates of Participation 22,440,000 82.396 18,489,662
City of Gilroy General Fund Obligations 28,455,000 100 28,455,000
Santa Clara County Vector Control Certificates of Participation 1,505,000 1.785 26,864
TOTAL GROSS DIRECT AND OVERLAPPING GENERAL FUND DEBT 76,270,393
Less: Santa Clara County supported obligations 322,706
TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT 75,947,687
TOTAL DIRECT DEBT 53,071,950
TOTAL GROSS OVERLAPPING DEBT 419,392,807
TOTAL NET OVERLAPPING DEBT 419,070,101
GROSS COMBINED TOTAL DEBT 472,464,757
NET COMBINED TOTAL DEBT 472,142,051
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations.
Ratios to 2021-22 Assessed Valuation :
Direct Debt ($24,616,950) 0.24%
Total Direct and Overlapping Tax and Assessment Debt 3.85%
Total Direct Debt ($53,071,950) 0.52%
Gross Combined Total Debt 4.59%
Net Combined Total Debt 4.59%
Source: Avenu Insights & Analytics, California Municipal Statistics, Inc.
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable
percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries
of the city divided by the district's total taxable assessed value.
City of Gilroy
Schedule of Direct and Overlapping Bonded Debt
June 30, 2022
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2012 2013 2014 2015 2016
Assessed valuation 5,837,732,543 5,806,144,639 6,238,973,584 6,714,164,849 7,114,097,533
Debt Limit Rate (1)15%15%15%15%15%
Debt limit 875,659,881 870,921,696 935,846,038 1,007,124,727 1,067,114,630
Total net debt applicable to limit:
General obligation bonds 33,190,000 32,520,000 31,820,000 31,095,000 30,335,000
Legal debt margin 842,469,881$ 838,401,696$ 904,026,038$ 976,029,727$ 1,036,779,630$
Total debt applicable to the limit
as a percentage of debt limit 3.9% 3.9% 3.5% 3.2% 2.9%
Continued
(1)Section 1108 of the City of Gilroy Charter limits the general obligation bonds of the City to 15% of total assessed value
of real and personal property within the City.
Source: County of Santa Clara, Department of Finance
Fiscal Year
City of Gilroy
Legal Debt Margin Information
Last Ten Fiscal Years
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2017 2018 2019 2020 2021 2022
Assessed valuation 7,700,974,884 8,175,945,948 8,741,061,361 9,291,636,386 9,807,614,121 10,242,720,866
Debt Limit Rate (1)15%15%15%15%15%15%
Debt limit 1,155,146,233 1,226,391,892 1,311,159,204 1,393,745,458 1,471,142,118 1,536,408,130
Total net debt applicable to limit:
General obligation bonds 29,550,000 28,745,000 27,983,538 27,087,578 25,639,646 24,616,950
Legal debt margin 1,125,596,233$ 1,197,646,892$ 1,283,175,666$ 1,366,657,880$ 1,445,502,472$ 1,511,791,180$
Total debt applicable to the limit
as a percentage of deb 2.6%2.4%2.2%2.0%1.8%1.6%
End
(1)Section 1108 of the City of Gilroy Charter limits the general obligation bonds of the City to 15% of total assessed value
of real and personal property within the City.
Source: County of Santa Clara, Department of Finance
Fiscal Year
City of Gilroy
Legal Debt Margin Information (Continued)
Last Ten Fiscal Years
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2016 2017 2018 2019 2020
Gross revenues:
Charges for services 11,773,938$ 12,644,730$ 12,720,141$ 12,904,657$ 12,872,189$
Investment income (loss)301,482 284,297 410,172 934,590 828,615
Developer impact fees*4,452,590 3,098,889 2,483,414 2,234,082 1,608,755
Total gross revenues 16,528,010 16,027,916 15,613,727 16,073,329 15,309,559
Operating expenses:
Operations 7,314,113 7,454,202 7,466,650 8,339,489 8,411,647
Billing 612,551 594,654 618,400 668,982 730,892
Administration 500,398 472,465 558,846 706,101 667,733
Total operating expenses 8,427,062 8,521,321 8,643,896 9,714,572 9,810,272
Net Revenues 8,100,948 7,506,595 6,969,831 6,358,757 5,499,287
Debt
2010 sewer revenue bonds (net debt service)2,566,550$ 2,558,688$ 2,562,738$ 2,557,625$ 2,557,750$
2021A Sewer revenue bonds
Total net debt service 2,566,550$ 2,558,688$ 2,562,738$ 2,557,625$ 2,557,750$
Debt service coverate (1.20x requirement)3.16 2.93 2.72 2.49 2.15
*Developer impact fees for sewer is reported in a capital projects fund.
Fiscal Year
City of Gilroy
Wastewater System - Historical Debt Service Coverage
Last Seven Fiscal Years
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2021 2022
Gross revenues:
Charges for services 12,702,398$ 12,912,113$
Investment income (loss)51,203 64,441
Developer impact fees*1,764,901 3,552,755
Total gross revenues 14,518,502 16,529,309
Operating expenses:
Operations 9,323,262 8,969,702
Billing 678,651 63,021
Administration 720,726 789,602
Total operating expenses 10,722,639 9,822,325
Net Revenues 3,795,863 6,706,984
Debt
2010 sewer revenue bonds (net debt service)2,510,417$ 2,561,500$
2021A Sewer revenue bonds
Total net debt service 2,510,417$ 2,561,500$
Debt service coverate (1.20x requirement)1.51 2.62
*Developer impact fees for sewer is reported in a capital projects fund.
Fiscal Year
City of Gilroy
Wastewater System - Historical Debt Service Coverage (Continued)
Last Seven Fiscal Years
201
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Fiscal
Year Population (1)
Net Taxable Assessed
Values
Per Capita Taxable
Property Values Personal Income
Per Capita
Income
City Unemploy-
ment Rate (%)
(2)
County
Population
(1)
Public School
Enrollment
(3)
2012-13 51,505 5,759,934,839 111,833 1,474,536,645 28,629 10.4%--
2013-14 52,413 6,192,510,384 118,148 1,512,219,876 28,852 8.6%--
2014-15 53,000 6,668,114,649 125,813 1,566,627,000 29,559 6.9%--
2015-16 55,170 7,068,226,533 128,117 1,648,534,770 29,881 5.7%--
2016-17 55,936 7,654,396,884 136,842 1,720,759,168 30,763 4.9%--
2017-18 55,615 8,128,701,548 146,160 1,817,498,200 32,680 3.7% 1,956,598 11,834
2018-19 55,928 8,692,971,361 155,431 1,927,859,413 34,470 2.5% 1,954,282 11,652
2019-20 57,084 9,243,761,986 161,933 2,046,518,484 35,851 13.9% 1,961,969 11,672
2020-21 56,599 9,807,614,121 173,282 2,190,227,917 38,697 8.6% 1,934,171 10,248
2021-22 59,269 10,242,720,866 172,818 2,634,388,512 44,448 2.7% 1,894,783 10,064
Source: Santa Clara County Assessor data, MuniServices, LLC / Avenu Insights & Analytics
Source: 2016-17 and prior: previously published ACFR Report
( - ) Data unavailable.
1.) Population Projections are provided by the California Department of Finance Projections.
2.) Unemployment and Labor Force Data are provided by the EDD's Labor Market Information Division.
City of Gilroy
Demographic and Economic Statistics
Last Ten Fiscal Years
3.) Student Enrollment reflects the total number of students enrolled in the Las Virgenes Unified School District. Any other school districts within the City are not
accounted for in this statistic.
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Business Name
Number of
Employees Rank
Percent of
Total
Employment
(%)
Number of
Employees Rank
Percent of Total
Employment
(%)
Gilroy Unified School District*1,140 1 3.99%
Christopher Ranch LLC 694 2 2.43%800 1 4.08%
Olam International (Formerly ConAgra-Gilroy Foods)431 3 1.51%500 4 2.55%
Community Solutions 331 4 1.16%
Costco Wholesale 320 6 1.12%220 7 1.12%
Walmart Supercenter 312 5 1.09%395 5 2.01%
Saint Louise Regional Hospital 294 7 1.03%550 2 2.81%
City of Gilroy 279 8 0.98%
Gavilan College 216 9 0.76%
Head Start Nursery 182 10 0.64%180 9 0.92%
Gilroy Gardens Theme Park (formerly Bonfante)500 3 2.55%
Monterey Gourmet Foods 225 6 1.15%
Kaiser Permanente 200 8 1.02%
International Paper 180 10 0.92%
Total Top 10 Employers 4,199 14.68%3,750 19.13%
Total City Labor Force (1)28,600 19,607
Source: MuniServices, LLC / Avenu Insights & Analytics
Source: 2013-14 previously published ACFR. Nine years prior data is unavailable.
Results based on direct correspondence with city’s local businesses.
(1) Total City Labor Force provided by EDD Labor Force Data.
* Includes FTE & PTE.
City of Gilroy
Principal Employers
Last Fiscal Year and Eight Years Ago
2021-22 2013-14
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Department 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Administration 6 5 4 5 5 6 6 7 7 8
City Council and Mayor 7 7 7 7 7 7 7 7 7 7
Community Development 18 20 21 21 18 18 21 23 20 23
Finance 13 13 13 13 11 13 14 14 11 13
Fire 41 39 40 39 35 36 37 37 43 44
Fleet and Facilities 10 10 10 10 10 10 10 10 7 10
Human Resources 3 4 4 4 4 4 4 5 4 4
Information Technology 4 4 2 2 3 3 4 3 4 4
Police 87 88 93 94 87 92 94 96 98 99
Public Works 34 36 38 43 40 42 54 57 48 49
Recreation 11 11 11 12 10 11 11 11 4 4
Total 234 237 243 250 230 242 262 270 253 265
(a) Beginning in fiscal year 2013-2014, the amount represents the number of filled positions by departments. Prior to fiscal year 2013-14, the amounts
noted represent budgeted positions.
City of Gilroy
Full-Time Equivalent City Employees
By Function / Program
Last Ten Fiscal Years
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Function 2013 2014 2015 2016 2017
General Government
Number of Business Licenses Issued 2,855 2,615 3,034 2,685 3,166
Total Volunteer Service Hours 29,566 35,439 32,598 34,723 33,855
Total City-Wide Training Hours Provided 1,300 1,245 1,957 2,356 3,112
Total Vehicle Work Orders Generated 2,919 2,739 3,146 2,629 2,478
Total Facilities Work Orders Generated 1,658 1,613 1,542 1,445 1,317
Public Safety
Police
Number of 911 Calls Received 24,074 27,753 28,498 21,044 23,744
Number of Police Calls for Service 58,124 58,112 62,200 62,071 63,887
Number of Investigations Assigned to Detectives 769 727 821 913 845
Number of Case Reports Processed 11,956 11,926 13,566 12,621 12,320
Fire
Total Calls for Service 4,322 4,557 5,131 5,007 5,441
Total Fire Calls 178 182 179 223 223
Total Emergency Medical Aid Calls 2,566 2,802 3,341 3,323 3,735
Community Development
Number of Building Inspections Completed 13,938 14,101 21,592 24,500 23,623
Number of Building Permits Processed 1,158 1,706 2,042 2,197 1,903
Number of Fire Code Permits Issued 577 567 819 839 476
Public Works
660,000 930,000 90,000 274,479 712,504
Linear Feet of Preventive Cleaning 640,000 600,000 716,900 785,288 707,379
Million Gallons of Wastewater Treated per Day 6.27 6.05 5.99 5.97 7.60
Million Gallons of Municipal Water Produced per Day 8.32 7.87 6.79 5.94 6.46
Million Gallons of Wastewater Flow per Day (COG)3.58 3.45 3.50 3.59 4.84
Number of Utility Billing Customers 13,540 13,716 13,865 14,300 14,549
Recreation
Number of Registrations Processed 7,405 5,500 6,378 5,856 5,807
Number of Meals Provided to Seniors Annually 19,459 19,549 20,031 21,351 22,566
Source: City of Gilroy, Various City Departments
* Statistic not available
Square Feet of Chip/Cape/Slurry Seal Completed
City of Gilroy
Operating Indicators By Function / Program
Last Ten Fiscal Years
Fiscal Year
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Function 2018 2019 2020 2021 2022
General Government
Number of Business Licenses Issued 3,800 3,965 3,160 4,319 3,673
Total Volunteer Service Hours 31,505 28,460 18,465 2,521 12,886
Total City-Wide Training Hours Provided 3,200 2,688 2,892 1,038 1,173
Total Vehicle Work Orders Generated 1,428 1,327 1,514 1,904 1,880
Total Facilities Work Orders Generated 1,428 1,411 1,488 1,405 1,416
Public Safety
Police
Number of 911 Calls Received 23,484 22,235 23,578 22,740 24,837
Number of Police Calls for Service 63,073 64,134 58,354 44,016 62,323
Number of Investigations Assigned to Detectives 815 986 1,023 971 1,101
Number of Case Reports Processed 12,478 11,075 11,020 10,095 9,771
Fire
Total Calls for Service 5,374 5,555 6,243 6,299 7,092
Total Fire Calls 265 282 336 381 435
Total Emergency Medical Aid Calls 3,707 3,739 4,065 4,089 4,866
Community Development
Number of Building Inspections Completed 17,991 17,450 14,618 15,652 16,056
Number of Building Permits Processed 1,970 2,050 1,300 1,361 1,784
Number of Fire Code Permits Issued 1,060 1,230 885 474 695
Public Works
Square Feet of Chip/Cape/Slurry Seal Completed 533,397 1,430,477 1,547,477 1,451,239 3,118,472
Linear Feet of Preventive Cleaning 854,304 897,479 849,228 632,280 692,143
Million Gallons of Wastewater Treated per Day 6.16 6.66 6.18 6.14 6.03
Million Gallons of Municipal Water Produced per Day 7.07 6.80 7.20 7.60 6.74
Million Gallons of Wastewater Flow per Day (COG)3.87 4.13 3.73 3.49 3.16
Number of Utility Billing Customers 14,870 15,133 15,218 15,311 15,483
Recreation
Number of Registrations Processed 4,952 4,737 4,232 2,380 6,875
Number of Meals Provided to Seniors Annually 23,815 25,103 21,979 19,525 22,570
Source: City of Gilroy, Various City Departments
* Statistic not available
** Available Data Reflects
City of Gilroy
Operating Indicators By Function / Program (Continued)
Last Ten Fiscal Years
Fiscal Year
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2013 2014 2015 2016 2017
General Government
City Buildings 55 55 55 55 55
Public Safety
Police
Police Sattions 1 1 1 1 1
Police Vehicles 72 76 79 86 87
Fire
Fire Stations 3 3 3 3 3
Fire Vehicles 20 20 20 20 21
Public Works
Park sites 16 16 16 16 16
Centerline Miles of Streets 159 118 120 119 126
Number of Streetlights 3,969 4,150 4,150 4,773 4,794
Miles of Storm Trunk Mains*31 31 31 31 37
Miles of Sewer Mains 110 110 111 111 151
Treatment Plant Dry Weather Flow Capacity (MGD)9 9 9 9 9
Water Meters in Municipal Service Area 13,651 13,831 14,127 14,669 14,783
Miles of Water Mains 120 121 152 152 204
Number of Fire Hydrants 1,960 2,048 2,150 2,265 2,290
* Note that the increase in "Miles of Storm Trunk Mains" is due to the accurate tracking of data in the Cityworks GIS system.
Source: City of Gilroy, Various City Departments.
Function
Fiscal Year
City of Gilroy
Capital Assets By Function
Last Ten Fiscal Years
Source: Finance Division, City of Cerritos
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2018 2019 2020 2021 2022
General Government
City Buildings 57 57 57 57 57
Public Safety
Police
Police Sattions 1 1 1 1 1
Police Vehicles 83 103 109 109 113
Fire
Fire Stations 3 3 3 3 3
Fire Vehicles 20 19 19 20 20
Public Works
Park sites 19 19 20 21 21
Centerline Miles of Streets 151 166 166 166 168
Number of Streetlights 4,841 4,861 4,885 4,295 4,315
Miles of Storm Trunk Mains*39 40 40 40 131
Miles of Sewer Mains 160 161 163 162 168
Treatment Plant Dry Weather Flow Capacity (MGD)9 9 9 9 9
Water Meters in Municipal Service Area 14,450 15,133 15,220 15,266 15,595
Miles of Water Mains 205 210 205 219 209
Number of Fire Hydrants 1,948 2,229 2,187 2,293 2,317
* Note that the increase in "Miles of Storm Trunk Mains" is due to the accurate tracking of data in the Cityworks GIS system.
Source: City of Gilroy, Various City Departments
Function
City of Gilroy
Capital Assets By Function (Continued)
Last Ten Fiscal Years
Fiscal Year
Source: Finance Division, City of Cerritos
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City of Gilroy
STAFF REPORT
Agenda Item Title:Report on Illegal Fireworks Administrative Citations
Meeting Date:February 27, 2023
From:Jimmy Forbis, City Administrator
Department:Community Development
Submitted By:Sharon Goei, Community Development Director
Prepared By:Monica Sendejas, Management Analyst
Jonathan Crick, Deputy Fire Marshal
STRATEGIC PLAN GOALS Not Applicable
RECOMMENDATION
Receive report on illegal fireworks administrative citations and provide direction for the
Fireworks Citation program.
EXECUTIVE SUMMARY
In April 2022, City Council adopted a Host Liability for Illegal Fireworks ordinance to
assist the City in attaining compliance regarding the prohibition of illegal fireworks in
Gilroy. The ordinance places host liability for illegal fireworks and the illegal use of legal
fireworks on property owners or renters. The intent was to allow for greater ability for
attaining compliance with fireworks regulations, as well as granting law enforcement
personnel a greater ability to safely issue citations for illegal fireworks, helping to attain
compliance in the future. This report discusses the administrative citations issued in July
2022 and provides the status to date.
BACKGROUND
Each year, the City Fire and Police Departments experience a significant number of
non-routine Fire and Police requests for services, emergency calls, and citizen
complaints, all of which are directly related to the use of illegal fireworks during the July
4th period. Fire danger from illegal fireworks to structures and open space vegetation
poses a clear threat to public health, safety, and the general welfare of the City’s
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City of Gilroy Page 2 of 5 February 27, 20235
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0
residents and businesses. The use of illegal fireworks adversely impacts the quality of
life of our community members, particularly those who suffer from post-traumatic stress
disorder (PTSD) and those who own pets.
Educational and enforcement campaigns against setting off illegal fireworks, as well as
the increased presence and enforcement activities during the July 4th period, have been
used by the Fire and Police Departments to deter and counter the use of illegal
fireworks. Administrative and criminal citations have been issued in recent years for use
of illegal fireworks, when and where a clear violation of the ordinance exists. Typically, it
is not difficult for enforcement officers to identify the area an illegal aerial firework
originates. The challenge lies in identifying the specific individual user, or possessor of
the illegal fireworks, and determining the responsible party.
ANALYSIS
Educational messaging reminding the public of what types of fireworks are permitted,
when and where they can be used, and how to safely use them have been and will
continue to be a main method to prevent illegal fireworks usage. Increased use of illegal
fireworks, especially around the July 4th period, continues to be a problem in Gilroy and
other jurisdictions in California.
On April 4, 2022, City Council adopted Ordinance No. 2022-03, Host Liability for Illegal
Fireworks ordinance, adding Gilroy City Code Sections 10A.15 through 10A.18 to
Chapter 10A to create and enforce a host liability for illegal fireworks and illegal use of
legal fireworks. The ordinance holds property owners, or those with possessory interest
in the property (rent, lease, permitted event, etc.) accountable for illegal use of fireworks
that occur on a property or in association with a property. The ordinance was intended
to provide a deterrence to property owners and renters to ensure that the illegal use of
fireworks does not occur on their property. Violations of the ordinance were subject to
an administrative citation carrying a fine in the amount of $1,000 for the first violation
and $2,000 for every subsequent violation.
The Host Liability for Illegal Fireworks was created in a manner to avoid a narrow
application to property owners only. It was designed to apply to any person who has the
right to use, possess or occupy a public or private property under a lease, permit,
license, rental agreement, or contract. Additionally, the ordinance can be applied to any
person who hosts, organizes, supervises, officiates, conducts, or accepts responsibility
for a gathering on public or private property.
Citations issued over the past three years leading to and during the July 4th period are
as follows:
2020: Seventy-eight (78) Administrative Citations were issued with a fine amount
of $500. Twenty-nine (29) appeals were submitted, and twenty-six (26) citations
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were dismissed after the appeal. Of the seventy-eight (78) citations, forty-five
(45) citations were paid, twenty-six (26) citations were dismissed, and seven (7)
remain uncollected. The rate of citations upheld per Administrative Decision after
the appeal was 10%. Six (6) criminal citations were sent to the District Attorney’s
Office for review. The District Attorney’s Office does not inform the City of the
resolutions of the citations.
2021: Due to the results of the 2020 Administrative Citation Hearings, staff
issued zero (0) Administrative Citations as the City’s Hearing Officer considered
the current ordinance with the existing language to have a very low success rate
of enforcement. The City subsequently updated the ordinance in April 2022.
Eight (8) criminal citations were sent to the District Attorney’s Office for review.
The District Attorney’s Office does not inform the City of the resolutions of the
citations.
2022: Sixty-one (61) Administrative Citations were issued with a fine amount of
$1,000 for the first offense and $2,000 for every subsequent violation. One (1)
criminal citation was referred to the District Attorney’s Office for review and
prosecution. Appeal Hearings were conducted for twenty-seven (27) citations
issued. Among the appeals, sixteen (16) citations were dismissed, and eleven
(11) citations were upheld. Five (5) payment plans were established by
Administrative Decision in the citations that were upheld. The rate of citations
upheld per Administrative Decision after the appeal was 41% which can be
attributed to the modification in the City’s Fireworks Ordinance adopted in April
2022 and the presence of video evidence and/or citing officers at appeal
hearings.
For the citations issued in 2022, the appeal hearings were conducted virtually on
January 17-19, 2023. Enforcement Officers and the Deputy Fire Marshal attended each
hearing and provided testimony as to why a citation was issued. In sixteen of the
twenty-seven (16 of 27) appeal cases, drone video and/or officer body camera footage
were submitted into evidence. Seven of the sixteen (7 of 16) appeal cases with drone
video and/or officer body camera had citations dismissed because the illegal fireworks
were launched in the street and a connection could not be made to host liability. The
total cost for services rendered by the Hearing Officer for the Appeal Hearings was
$16,065.
Staff continues to work on the collections process for 2022. Fifteen (15) citations, which
did not go through the appeal process, have not been paid to date. In addition, one (1)
payment bounced. The penalty amount increased by 10% ($100) with each notice. A
third notice for these citations was mailed on January 31, 2023, by regular and certified
USPS mail. The unpaid citations which are not received by March 10, 2023, will be sent
to collections for payment. Payment plans have been established by Administrative
Decision for the unsuccessful appeals that are unpaid (five (5) citations).
11.4
p. 512 of 530
Report on Illegal Fireworks Administrative Citations
City of Gilroy Page 4 of 5 February 27, 20235
6
0
Below is a summary of citations issued, fines collected, and appeal outcomes in 2020
and 2022:
2020
Citations
Total
Fines
2022
Citations
Total
Fines
Issued 78 $39,000 61 $61,000
Paid Citations (as of 2/13/2023)45 $22,500 22 $23,000
2020
# of Appeals
2022
# of Appeals
Total # of Appeals 29 27
Citations Upheld 2 (1 paid)11
Citations Dismissed 26 16
Withdrew Appeal 1 0
Some feedback provided by the Hearing Officer through the appeal hearings and
rendered administrative decisions was as follows:
In the situations where the fireworks were discharged in the public street,
evidence was required to show that the cited person hosted, organized, or
otherwise was responsible for a gathering at which the illegal fireworks were
discharged. In his decisions when an appeal was successful, the Hearing Officer
stated:
“Under the plain language of §10A.15, host strict liability
based on property ownership is limited to the use of illegal
fireworks on “any private residential or nonresidential real
property.” If the cited use of illegal fireworks is in the public
street, then mere ownership of adjacent private property is
insufficient to create host strict liability. Host strict liability
based on a tenancy is similarly limited to use of illegal
fireworks on either the private or public property that is the
subject of the lease or rental agreement. Therefore, as
above, a tenancy by itself does not make the tenant strictly
liable for the use of illegal fireworks on an adjacent public
street that is not the subject of the lease or rental agreement.
On the other hand, a person who hosts or accepts
responsibility for a gathering under §10A.15(a)(3), can be
strictly liable for the illegal use of fireworks at a gathering on
either public or private property, including a public street,
11.4
p. 513 of 530
Report on Illegal Fireworks Administrative Citations
City of Gilroy Page 5 of 5 February 27, 20235
6
0
regardless of whether an ownership or right to possession
exists.”
The Hearing Officer also stated that when it comes to illegal fireworks being
discharged on the street or not on private property, the Host Liability for Illegal
Fireworks ordinance can be strengthened by adding language that the person
“possesses fireworks” or “presents evidence of use of fireworks.” Also adding
language that includes the immediate adjacent street to the ordinance would be
helpful.
The Hearing Officer suggested that listing both the homeowner and the renter on
the citation would be best.
Despite best efforts, the use of illegal fireworks continues to be a problem in Gilroy.
Enforcement through Administrative Citations takes a significant amount of staff time,
effort, and resources from multiple Departments and incurs a further cost to the City
through the fine collection and appeal process. The estimated combined cost for
administering the citations and hearings is $45,000 to $50,000. The citations that have
been paid as of February 13, 2023, total $23,000. There is no easy solution to rectify
the issues regarding illegal fireworks. Staff is seeking Council direction on amending the
Host Liability for Illegal Fireworks ordinance, whether to continue the fireworks citation
program or other direction regarding illegal fireworks.
FISCAL IMPACT/FUNDING SOURCE
A summary of citation fines was presented above. As discussed, enforcement through
Administrative Citations takes a significant amount of staff time, effort, and resources
from multiple Departments and incurs further costs to the City through the fine collection
and appeal process. Fund 1004040, which is the Fire Prevention Division, receives the
citation revenue. The revenue received helps to partially offset the costs incurred in staff
time (Deputy Fire Marshal and Management Analyst) in preparing the citations, handling
the fine collection/rebilling process, mailing costs, coordinating and participating in the
appeal hearing process, and the contractual fees for the Administrative Hearing Officer.
The estimated combined cost for administering the citations and hearings is $45,000 to
$50,000.
11.4
p. 514 of 530
Gilroy Public Facilities Financing Authority Meeting Minutes
12/5/2022
Page 1 of 7
City of Gilroy City Council &
Gilroy Public Facilities Financing Authority
Regular Meeting Minutes
December 5, 2022
1. OPENING
1.1. Call to Order
The meeting was called to order at 6:00 PM by Mayor Marie Blankley.
1. Pledge of Allegiance
Council Member Bracco led the Pledge of Allegiance.
2. Invocation
Pastor Trevor Van Laar from Gilroy Presbyterian Church provided the Invocation.
3. City Clerk's Report on Posting the Agenda
City Clerk Pham declared the posting of the agenda.
4. Roll Call
Council Member Armendariz participated in the meeting via teleconference from a
noticed, publicly accessible location, as noted on the agenda.
Attendee Name Title Status
Marie Blankley Mayor Present
Rebeca Armendariz Council Member Remote
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
There were none.
3. PRESENTATIONS TO THE COUNCIL
3.1. Annual Personnel Commission Presentation
Personnel Commission Member Nita Edde-Mitchell presented the annual
presentation to Council.
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Page 2 of 7
3.2.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 speakers spoke on items that were not on the agenda:
Ron Kirkish spoke about a homelessness issue near the Old Gilroy
Dispatch building.
There being no further speakers, Mayor Blankley closed Public Comment.
4. REPORTS OF COUNCIL MEMBERS
Council Member Bracco reported on the County Homeless Task Force.
Council Member Armendariz had nothing to report.
Council Member Marques reported on Gilroy Gardens Board of Directors.
Council Member Hilton reported on Visit Gilroy California Welcome Center Board.
Council Member Tovar reported on the December 3rd Holiday Parade.
Council Member Leroe-Muñoz had nothing to report.
Mayor Blankley reported on meeting with the Chief Operating Officer of HomeFirst
Services of Santa Clara County and the Holiday Parade. She also reminded the
public about the South County Gun Buyback Program being held on Saturday,
December 10th, at Morgan Hill Outdoor Sports Center.
5. COUNCIL CORRESPONDENCE
There were none.
6. FUTURE COUNCIL INITIATED AGENDA ITEMS
There were none.
7. CONSENT CALENDAR (ROLL CALL VOTE)
Mayor Blankley opened public comment.
There being no speakers, Mayor Blankley closed public comment.
RESULT: APPROVE [UNANIMOUS]
MOVER:Peter Leroe-Muñoz, Vice Mayor
SECONDER:Fred Tovar, Council Member
AYES:Blankley, Armendariz, Bracco, Hilton, Leroe-Muñoz, Marques,
Tovar
7.1. City Council - Regular Meeting - Nov 21, 2022 6:00 PM
A motion was made to approve the minutes.
14.1
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Gilroy Public Facilities Financing Authority Meeting Minutes
12/5/2022
Page 3 of 7
7.2. Adoption of An Ordinance of the City Council of the City of Gilroy
Adopting a Franchise Agreement with Recology South Valley for Solid
Waste Hauling Services and a Finding that Its Action in Adopting the
Ordinance is Exempt From Review Under the California Environmental
Quality Act (“CEQA”) Pursuant to CEQA Guidelines Section 15061(b)(3)
(Common Sense Exemption) In that the Proposed Ordinance Will
Continue an Existing State-Mandated Program for the Protection of
Public Health and the Environment, and None of the Circumstances in
CEQA Guidelines Section 15300.2 Apply.
A motion was made to adopt the ordinance.
Enactment No.: Ordinance No. 2022-13
7.3. Adoption of an Ordinance Approving a Planned Unit Development
Overlay Zoning Amendment for Property at Royal Way (File Number Z 21-
05)
A motion was made to adopt the ordinance.
Enactment No.: Ordinance No. 2022-14
8. BIDS AND PROPOSALS
There were none.
9. PUBLIC HEARINGS
There were none.
10. UNFINISHED BUSINESS
There were none.
11. INTRODUCTION OF NEW BUSINESS
11.1. Council Adoption of a Resolution of the City Council of the City of Gilroy
Approving Commemorative Flag Flying Applications for 2023
City Administrator Forbis provided staff presentation and responded to Council
Member questions.
Mayor Blankley opened Public Comment.
There being no speakers, Mayor Blankley closed Public Comment.
Possible Action:
Council adopt the resolution.
RESULT: APPROVE [UNANIMOUS]
MOVER:Fred Tovar, Council Member
SECONDER:Dion Bracco, Council Member
AYES:Blankley, Armendariz, Bracco, Hilton, Leroe-Muñoz,
Marques, Tovar
Enactment No.: Resolution No. 2022-89
14.1
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Gilroy Public Facilities Financing Authority Meeting Minutes
12/5/2022
Page 4 of 7
11.2. Council Introduce an Ordinance of the City Council of the City of Gilroy
Repealing Ordinance Number 99-13, Removing the Use of Liens to Collect
for Delinquent Garbage Fees
Assistant to the City Administrator Atkins provided staff presentation and
responded to Council Member questions.
Mayor Blankley opened Public Comment.
There being no speakers, Mayor Blankley closed Public Comment.
Possible Action:
a) Motion to read the ordinance by title only and waive further reading.
RESULT: READ TITLE ORDINANCE AND WAIVE FURTHER
READING [UNANIMOUS]
MOVER:Dion Bracco, Council Member
SECONDER:Carol Marques, Council Member
AYES:Blankley, Armendariz, Bracco, Hilton, Leroe-Muñoz,
Marques, Tovar
City Clerk Pham read aloud the title of the ordinance.
b) Introduce an ordinance of the City Council of the City of Gilroy
repealing Ordinance Number 99-13, removing the use of liens to
collect for delinquent garbage fees.
RESULT: INTRODUCE AN ORDINANCE [UNANIMOUS]
MOVER:Peter Leroe-Muñoz, Vice Mayor
SECONDER:Fred Tovar, Council Member
AYES:Blankley, Armendariz, Bracco, Hilton, Leroe-Muñoz,
Marques, Tovar
11.3. Discussion of Santa Clara County Civil Grand Jury Report Regarding
Ballot Measure Wording and Recommendations
Assistant City Administrator McPhillips provided staff presentation and
responded to Council Member questions.
Mayor Blankley opened Public Comment.
Ron Kirkish reminded Council to guard itself against unethical behavior
regarding ballot measure wording.
There being no further speakers, Mayor Blankley closed Public Comment.
Possible Action:
Provide staff direction.
RESULT: BRING BACK TO COUNCIL IN THE NEXT MEETING
SUGGESTIONS AS WORDED IN THE STAFF REPORT
[UNANIMOUS]
MOVER:Peter Leroe-Muñoz, Vice Mayor
SECONDER:Dion Bracco, Council Member
AYES:Blankley, Armendariz, Bracco, Hilton, Leroe-Muñoz, Marques,
Tovar
14.1
p. 518 of 530
Gilroy Public Facilities Financing Authority Meeting Minutes
12/5/2022
Page 5 of 7
11.4. Approval of the Refinancing of Gilroy Public Facilities Financing
Authority's 2013 Refunding Lease Revenue Bonds
City Administrator Forbis provided staff presentations for items 11.4 and 13.2.1
and responded to Council Member questions.
Mayor Blankley opened Public Comment.
There being no speakers, Mayor Blankley closed Public Comment.
Possible Action:
Adopt a resolution of the City Council of the City of Gilroy approving the
issuance by the Gilroy Public Facilities Financing Authority of not to
exceed $15 million of Gilroy Public Facilities Financing Authority Lease
Revenue Refunding Bonds, Series 2022A; approving the execution and
delivery of various related documents in connection with the offering and
sale of such bonds; and authorizing the taking of certain other matters
related thereto.
RESULT: APPROVE [UNANIMOUS]
MOVER:Dion Bracco, Council Member
SECONDER:Peter Leroe-Muñoz, Vice Mayor
AYES:Blankley, Armendariz, Bracco, Hilton, Leroe-Muñoz,
Marques, Tovar
Enactment No.: Resolution No. 2022-90
12. ADJOURN TO THE MEETING OF GILROY PUBLIC FACILITIES FINANCING
AUTHORITY
Mayor Blankley adjourned to the Meeting of Gilroy Public Facilities Authority at
6:40 PM.
13. GILROY PUBLIC FACILITIES FINANCING AUTHORITY BOARD OF
DIRECTORS
13.1. Call to Order
The meeting was called to order at 6:40 PM by Chair Blankley.
14.1
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Gilroy Public Facilities Financing Authority Meeting Minutes
12/5/2022
Page 6 of 7
1. Roll Call
Director Armendariz participated in the meeting via teleconference from a noticed,
publicly accessible location, as noted on the agenda.
Attendee Name Title Status
Marie Blankley Chair Present
Rebeca Armendariz Board Member Remote
Dion Bracco Board Member Present
Zach Hilton Board Member Present
Peter Leroe-Muñoz Vice Chair Present
Carol Marques Board Member Present
Fred Tovar Board Member Present
13.2. INTRODUCTION OF NEW BUSINESS
13.2.1. Approval of the Refinancing of Gilroy Public Facilities Financing
Authority's 2013 Refunding Lease Revenue Bonds
Chair Blankley opened Public Comment.
There being no further speakers, Chair Blankley closed Public Comment.
Possible Action:
Adopt a resolution of the Board of Directors of the Gilroy Public Facilities
Financing Authority approving the issuance by the Gilroy Public Facilities
Financing Authority of not to exceed $15 million of Gilroy Public Facilities
Financing Authority Lease Revenue Refunding Bonds, Series 2022A;
approving the execution and delivery of various related documents in
connection with the offering and sale of such bonds; and authorizing the
taking of certain other matters related thereto.
RESULT: APPROVE [UNANIMOUS]
MOVER:Dion Bracco, Director
SECONDER:Carol Marques, Director
AYES:Blankley, Armendariz, Bracco, Hilton, Leroe-Muñoz,
Marques, Tovar
Enactment No.: Resolution No. GPFFA 2022-01
14. ADJOURN TO THE MEETING OF GILROY CITY COUNCIL
The meeting of the Gilroy Public Facilities Financing Authority was adjourned at
6:42 PM by Chair Blankley.
The meeting of the Gilroy City Council was reconvened at 6:42 PM by Mayor
Blankley.
15. CITY ADMINISTRATOR'S REPORTS
City Administrator Forbis provided a brief presentation and responded to Council
Member questions.
14.1
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Page 7 of 7
16. CITY ATTORNEY'S REPORTS
City Attorney Faber provided a brief presentation and responded to Council
Member questions.
17. CLOSED SESSION
There were none.
18. ADJOURNMENT
The meeting was adjourned at 6:46 PM by Mayor Blankley.
I HEREBY CERTIFY that the foregoing minutes were duly and regularly adopted at
a regular meeting of the Gilroy Public Facilities Financing Authority.
Thai Nam Pham, CMC, CPMC
Secretary
14.1
p. 521 of 530
Page 1 of 3
Gilroy Facilities Public
Financing Authority
STAFF REPORT
Agenda Item Title:Approval of Resolutions Specifying Circumstances
Under Which Regular Meetings Will Not Be Held;
Designating Certain Officers and Employees as Ex
Officio Positions; and Adopting a Budget for Fiscal
Year 2023-24
Meeting Date:February 27, 2023
From:Jimmy Forbis, City Administrator
Department:General Counsel Office
Submitted By:Andy Faber, General Counsel/Legal Advisor
Prepared By:Andy Faber, General Counsel/Legal Advisor
STRATEGIC PLAN GOALS Develop a Financially Resilient Organization
Promote Economic Development Activities
RECOMMENDATION
Staff recommends the Board to adopt resolutions of the Gilroy Public Facilities
Financing Authority (“Authority”) specifying circumstances under which regular meetings
will not be held; designating certain officers and employees as ex officio positions; and
adopting a budget for fiscal year 2023-24.
BACKGROUND
The “Joint Exercise of Powers Agreement Gilroy Public Facilities Financing Authority”
(as amended, the “Agreement”), creating the Authority, requires that the Board of
Directors (“Board”) of the Authority hold at least one regular meeting each year. The
Agreement requires that the date, hour, and place of the Authority’s regular meetings be
fixed by resolution and that the Authority hold at least one regular meeting each year.
On October 7, 2019, the Board adopted Resolution No. PFFA 2019-01, establishing that
the regular meetings of the Authority shall be held on the same date and time as regular
meetings of the City Council of the City.
15.1
p. 522 of 530
Approval of Resolutions Specifying Circumstances Under Which Regular Meetings Will Not Be
Held; Designating Certain Officers and Employees as Ex Officio Positions; and Adopting a Budget
for Fiscal Year 2023-24
Gilroy Public Facilities
Financing Authority Page 2 of 3 February 27, 2023
Members of the Gilroy City Council ex officio are Members of the Board, pursuant to the
Agreement. Furthermore, the officers of the Authority include a Chair, Vice-Chair,
Secretary, and Treasurer. The Chair and Vice-Chair are elected from among the Board
Members. The Secretary is appointed by the Board but need not be a member of the
Board. The Director of Finance of the City of Gilroy (“City”) is designated as the
Treasurer of the Authority. The Board also has the power to appoint a Legal Advisor
who may be the City Attorney of the City.
Finally, the Agreement requires that the Authority adopt a budget for administrative
expenses annually prior to March 1 of each year. The budget is required to include all
administrative expenses not included in any bond issue of the Authority.
ANALYSIS
Most regular meetings of the Authority are in fact canceled unless there are bond
measures in progress. The attached draft resolution specifying circumstances under
which regular meetings will not be held will allow the Authority to more efficiently cancel
any regular meeting where there are no items requiring discussion. This resolution
states that when an agenda for a scheduled regular meeting of the Authority is not
posted pursuant to the Brown Act, then that failure to post shall be deemed to be a
determination by the Chair and officers of the Authority that there are no items requiring
discussion for that regular meeting and, as a result, that regular meeting is canceled.
The next resolution designates certain officers and employees of the Authority as ex
officio positions. By designating these four positions (Chair, Vice-Chair, Secretary, Legal
Advisor) as ex officio positions, they will automatically be filled by individuals holding
other specified positions within the City. This resolution will allow the Authority to
operate more efficiently because the Authority will not be required to rename individuals
to these positions each time there is a change in staffing or personnel. This resolution
designates the Mayor of the City as the ex officio the Chair of the Authority, the Vice-
Mayor of the City as the ex officio the Vice-Chair of the Authority, the City Clerk as the
ex officio the Secretary of the Authority, and the City Attorney as the ex officio the Legal
Advisor of the Authority.
Finally, the Treasurer of the Authority does not anticipate any administrative revenue or
expenses for the Fiscal Year 2023-2024. Therefore, the Treasurer of the Authority is
proposing that the Board of the Authority adopt an annual budget that anticipates $0 of
revenue and $0 of administrative expenses in order to satisfy the Agreement’s
requirement to adopt an annual budget before March 1 of each year. The attached draft
resolution adopting a budget for the Authority for the fiscal year 2023-24 reflects this
proposal by the Treasurer of the Authority.
15.1
p. 523 of 530
Approval of Resolutions Specifying Circumstances Under Which Regular Meetings Will Not Be
Held; Designating Certain Officers and Employees as Ex Officio Positions; and Adopting a Budget
for Fiscal Year 2023-24
Gilroy Public Facilities
Financing Authority Page 3 of 3 February 27, 2023
ALTERNATIVES
The Authority may choose not to adopt any or all of the three resolutions. This is not
recommended. If the Authority does not adopt the resolution specifying circumstances
under which a regular meeting will not be held, then the Authority will have to take
alternative actions to cancel regular meetings. If the Authority does not adopt the
resolution designating certain officers and employees as ex officio positions, then the
Board will have to re-elect and/or re-appoint individuals to certain positions each time
there is a change in staffing and personnel. If the Authority does not adopt the
resolution setting the budget for administrative expenses, they will be out of compliance
with the Agreement.
FISCAL IMPACT/FUNDING SOURCE
There is no fiscal impact with this action.
PUBLIC OUTREACH
This item was included on the publicly posted agenda for this meeting.
NEXT STEPS
Once the Authority adopts the resolutions, the Authority shall convene again at the next
regular meeting where an agenda is posted pursuant to the Brown Act.
Attachments:
1. Draft Resolution – Specifying Circumstances Under Which Regular Meeting Will Not
Be Held
2. Draft Resolution – Designating Certain Officers and Employees as Ex Officio
Positions
3. Draft Resolution – Adopting the Budget for Gilroy Public Facilities Financing
Authority For Fiscal Year 2023-24
15.1
p. 524 of 530
RESOLUTION NO. PFFA 2023-XX
RESOLUTION OF THE BOARD OF DIRECTORS OF THE
GILROY PUBLIC FACILITIES FINANCING AUTHORITY
SPECIFYING CIRCUMSTANCES UNDER WHICH
REGULAR MEETINGS WILL NOT BE HELD
WHEREAS, the Gilroy Public Facilities Financing Authority (“Authority”) was
established by the City of Gilroy (“City”) and the Community Development Agency of the
City of Gilroy on March 21, 1994, pursuant to a joint powers agreement entitled “Joint
Exercise of Powers Agreement Gilroy Public Facilities Financing Authority” (as amended,
the “Agreement”) for the purpose, among others, of providing for the financing and
refinancing of public capital improvements for the City; and
WHEREAS, the Agreement was amended by the “First Amendment to Joint
Powers Agreement” on July 1, 2013, to replace the Community Development Agency of
the City of Gilroy with the Industrial Development Authority of the City of Gilroy as a party
to the Agreement; and
WHEREAS, Section 2.04 of the Agreement states that the Board of Directors
(“Board”) of the Authority shall provide for its regular meetings and shall hold at least one
regular meeting each year and fix the date, hour, and place of the regular meetings by
resolution; and
WHEREAS, Section 2.04 of the Agreement also states that all meetings of the
Board of the Authority shall be called, noticed, held, and conducted in accordance with
the provisions of Sections 54950 et seq. of the Government Code of the State; and
WHEREAS, Government Code Section 6592.1 provides that the Authority may
adopt a resolution authorizing bonds or any issuance of bonds or accepting the benefit of
any bonds or the proceeds of bonds only during a regular meeting of the Authority held
pursuant to Government Code Section 54954; and
WHEREAS, the Authority established regular meeting dates in accordance with
the provisions of Government Code Section 54954 by passing Resolution No. PFFA
2019-01 on October 7, 2019 which resolved that the Authority would hold its regular
meetings on the same date and time as the regular meetings of the Gilroy City Council;
and
WHEREAS, Resolution No. PFFA 2019-01 also authorized the Chair and officers
of the Authority to take whatever actions are required by law to cancel regularly scheduled
meetings if the Secretary determines that there is not business of the Authority to be
conducted at a regular meeting; and
WHEREAS, the Board desires to set forth circumstances under which a regular
meeting will not be held.
15.1
p. 525 of 530
Resolution No. PFFA 2023-XX
Specifying When PFFA Regular Meetings Not to Be Held
Gilroy Public Facilities Financing Authority Regular Meeting | February 27, 2023
Page 1 of 1
NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED BY
THE GILROY PUBLIC FACILITIES FINANCING AUTHORITY AS FOLLOWS:
SECTION 1. Recitals. Each of the foregoing recitals is true and correct.
SECTION 2. Circumstances Under Which Meetings Will Not be Held. If the
Secretary does not post an agenda for a regular meeting pursuant to Government Code
Section 54950 et seq. (“Brown Act”), then such failure to post shall be deemed to be a
determination by the Chair and officers of the Authority that no items required discussion
and, therefore, that the regular meeting is cancelled, except as otherwise provided in the
Brown Act.
SECTION 3. Effective Date. This Resolution shall take effect immediately upon
adoption.
PASSED and ADOPTED this 27th day of February 2023 by the following roll call
vote:
AYES:BOARD MEMBERS:
NOES:BOARD MEMBERS:
ABSTAIN:BOARD MEMBERS:
ABSENT:BOARD MEMBERS:
APPROVED:
Marie Blankley, Chair
ATTEST:
_______________________
Thai Nam Pham, Secretary
15.1
p. 526 of 530
RESOLUTION NO. PFFA 2023-XX
RESOLUTION OF THE BOARD OF DIRECTORS OF THE
GILROY PUBLIC FACILITIES FINANCING AUTHORITY
DESIGNATING CERTAIN OFFICERS AND EMPLOYEES
AS EX OFFICIO POSITIONS
WHEREAS, the Gilroy Public Facilities Financing Authority (“Authority”) was
established by the City of Gilroy (“City”) and the Community Development Agency of the
City of Gilroy on March 21, 1994 pursuant to a joint powers agreement entitled “Joint
Exercise of Powers Agreement Gilroy Public Facilities Financing Authority” (as amended,
the “Agreement”) for the purpose, among others, of providing for the financing and
refinancing of public capital improvements for the City; and
WHEREAS, the Agreement was amended by the “First Amendment to Joint
Powers Agreement” on July 1, 2013 to replace the Community Development Agency of
the City of Gilroy with the Industrial Development Authority of the City of Gilroy as a party
to the Agreement; and
WHEREAS, Section 2.03 of the Agreement specifies that the members of the City
Council of the City ex officio shall constitute the Members of the Board of Directors
(“Board”) of the Authority.
WHEREAS, Article III of the Agreement specifies that the officers of the Authority
shall be the Chairman, Vice-Chairman, Secretary and Treasurer; and
WHEREAS, Section 3.01 of the Agreement specifies that the Board of the
Authority shall elect a Chair and Vice-Chair (as used herein and in any other Resolutions
or official documents of the Authority, the terms Chair and Vice-Chair are equivalent to
the terms Chairman and Vice-Chairman as used in the Agreement) from among the Board
Members and shall appoint a Secretary who may, but need not, be a member of the
Board; and
WHEREAS, Section 3.02 of the Agreement specifies that the Director of Finance
of the City is designated as the Treasurer of the Authority; and
WHEREAS, Section 3.05 of the Agreement specifies that the Board shall have the
power to appoint the Legal Advisor of the Authority, who may be the City Attorney of the
City; and
WHEREAS, the Board desires to designate the Chair, the Vice-Chair, the
Secretary, and the Legal Advisor as ex officio positions; and
WHEREAS, the Board interprets this designation of the Chair, the Vice-Chair, the
Secretary, and the Legal Advisor as ex officio positions as satisfying the Board’s duty to
elect a Chair and Vice-Chair from among the Board and to appoint a Secretary and Legal
Advisor.
15.1
p. 527 of 530
Resolution No. PFFA 2023-XX
Designating Officers and Employees as Ex Officio Positions
Gilroy Public Facilities Financing Authority Regular Meeting | February 27, 2023
Page 1 of 1
NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED BY
THE GILROY PUBLIC FACILITIES FINANCING AUTHORITY AS FOLLOWS:
SECTION 1. Recitals. Each of the foregoing recitals is true and correct.
SECTION 2. Designation of Certain Officers and Employees as Ex Officio
Positions.
A. The Mayor of the City shall be ex officio the Chair of the Authority.
B. The Vice-Mayor of the City shall be ex officio the Vice-Chair of the Authority.
C. The City Clerk shall be ex officio the Secretary of the Authority.
D. The City Attorney shall be ex officio the Legal Advisor of the Authority.
SECTION 3. Effective Date. This Resolution shall take effect immediately upon
adoption.
PASSED and ADOPTED this 27th day of February 2023 by the following roll call
vote:
AYES:BOARD MEMBERS:
NOES:BOARD MEMBERS:
ABSTAIN:BOARD MEMBERS:
ABSENT:BOARD MEMBERS:
APPROVED:
Marie Blankley, Chair
ATTEST:
_______________________
Thai Nam Pham, Secretary
15.1
p. 528 of 530
RESOLUTION NO. PFFA 2023-XX
RESOLUTION OF THE BOARD OF DIRECTORS OF THE
GILROY PUBLIC FACILITIES FINANCING AUTHORITY
ADOPTING THE BUDGET FOR SAID AUTHORITY FOR
FISCAL YEAR 2023-24
WHEREAS, the Gilroy Public Facilities Financing Authority (“Authority”) was
established by the City of Gilroy (“City”) and the Community Development Agency of the
City of Gilroy on March 21, 1994, pursuant to a joint powers agreement entitled “Joint
Exercise of Powers Agreement Gilroy Public Facilities Financing Authority” (as amended,
the “Agreement”) for the purpose, among others, of providing for the financing and
refinancing of public capital improvements for the City; and
WHEREAS, the Agreement was amended by the “First Amendment to Joint
Powers Agreement” on July 1, 2013, to replace the Community Development Agency of
the City of Gilroy with the Industrial Development Authority of the City of Gilroy as a party
to the Agreement; and
WHEREAS, Section 3.02 of the Agreement states that the Treasurer of the
Authority shall be the depositary for the Authority and have custody of all accounts, funds,
and money of the Authority; and
WHEREAS, Section 6.04 of the Agreement states that the Board of Directors
(“Board”) shall adopt a budget for administrative expenses annually prior to March 1st of
each year; and
WHEREAS, Section 6.04 of the Agreement also states that annual budget shall
include all administrative expenses not included in any bond issue of the Authority; and
WHEREAS, the Treasurer of the Authority anticipates no administrative revenues
or expenses for the Fiscal Year 2023-24; and
WHEREAS, the Treasurer of the Authority is proposing that the Board of the
Authority adopt a budget for Fiscal Year 2023-24 which provides for anticipated revenue
totaling $0 and anticipated administrative expenses totaling $0; and
WHEREAS, the said proposed budget for Fiscal Year 2023-24 is now before the
Board for adoption and said Board is satisfied with said budget.
NOW, THEREFORE, BE IT RESOLVED that each of the foregoing recitals is true
and correct.
BE IT FURTHER RESOLVED that the said proposed budget, including the
anticipated revenues and administrative expenses, shall be and hereby is adopted as the
budget of the Authority for the Fiscal Year 2023-24.
BE IT FURTHER RESOLVED that this resolution shall become effective
immediately.
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Resolution No. PFFA 2023-XX
Adopting PFFA Budget for FY 23-24
Gilroy Public Facilities Financing Authority Regular Meeting | February 27, 2023
Page 1 of 1
PASSED and ADOPTED this 27th day of February 2023 by the following roll call
vote:
AYES:BOARD MEMBERS:
NOES:BOARD MEMBERS:
ABSTAIN:BOARD MEMBERS:
ABSENT:BOARD MEMBERS:
APPROVED:
Marie Blankley, Chair
ATTEST:
_______________________
Thai Nam Pham, Secretary
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