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08/21/2023 City Council Regular Agenda PacketAugust 21, 2023 | 6:00 PM Page 1 of 6 City Council Regular Meeting Agenda Packet CITY COUNCIL REGULAR MEETING AGENDA PACKET CITY COUNCIL CHAMBERS, CITY HALL 7351 ROSANNA STREET, GILROY, CA 95020 MONDAY, AUGUST 21, 2023 | 6:00 PM MAYOR Marie Blankley COUNCIL MEMBERS 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 PUBLIC COMMENTS ON AGENDA ITEMS ARE TAKEN BEFORE THE CITY COUNCIL TAKES ACTION. Please keep your comments to 3 minutes. Time restrictions may vary based on the Mayor's discretion. Send written comments on any agenda item to publiccomment@cityofgilroy.org or City Hall, 7351 Rosanna Street, Gilroy, CA 95020. Comments received by 1 p.m. on the meeting day will be distributed to the City Council before the meeting. Comments are also available at bit.ly/3NuS1IN. In compliance with the Americans with Disabilities Act, the City will make reasonable arrangements to ensure accessibility to this meeting. If you need assistance, contact the City Clerk’s Office 72 hours before the meeting at (408) 846-0204 or cityclerk@cityofgilroy.org. If you dispute any planning or land use decision from this meeting in court, you may only raise issues you or someone else presented at this meeting's public hearing or in written letters to the City Council before the hearing. Be aware that the time to seek a judicial review of any final decision made at this meeting is defined by Section 1094.6 of the California Code of Civil Procedure. During this meeting, a Closed Session may be called under Government Code Section 54956.9 (d)(2). This will happen if, in the City's legislative body's opinion (based on current facts, circumstances, and legal advice), there's a significant risk of a lawsuit against the City. Additional materials submitted after agenda distribution are available on www.cityofgilroy.org as soon as possible. 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. Page 1 of 308 August 21, 2023 | 6:00 PM Page 2 of 6 City Council Regular Meeting Agenda Packet 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 translation assistance, contact the City Clerk 72 hours before the meeting at 408-846-0204 or 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. Accessing Meeting Translations | Accediendo a las Traducciones de la Reunión 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. Use sus auriculares para escuchar el audio o leer la transcripción en el dispositivo. The agenda for this meeting is outlined as follows: 1. OPENING 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 (NONE) 3. PRESENTATIONS TO THE COUNCIL 3.1. Presentation from the League of California Cities 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 This part of the meeting allows public address on non-agenda topics within the Council's jurisdiction. To speak, complete a Speaker's Card from the entrances and give it to the City Clerk. Speaking time ranges from 1-3 minutes based on the Mayor's discretion. Extended discussions or actions on non-agenda items are restricted by law. For Council Page 2 of 308 August 21, 2023 | 6:00 PM Page 3 of 6 City Council Regular Meeting Agenda Packet action, the topic may be listed on a future agenda. Email written comments on non-agenda topics to publiccomment@cityofgilroy.org or mail to City Hall, 7351 Rosanna Street, Gilroy, CA 95020, by 1:00 pm on the meeting day. These comments, available at City Hall, will be shared with the Council and included in the meeting record. Late submissions will be shared as soon as possible. A 10-page limit applies to hard-copy materials, but electronic submissions are unlimited. 4. REPORTS OF COUNCIL MEMBERS Council Member Bracco – Downtown Committee, Santa Clara County Library Joint Powers Authority, Santa Clara Valley Water Joint Water Resources Committee, SCRWA Council Member Armendariz – Downtown Committee, Santa Clara County Library Joint Powers Authority (alternate), Santa Clara Valley Habitat Agency Governing Board, Santa Clara Valley Habitat Agency Implementation Board, Silicon Valley Clean Energy Authority JPA Board (alternate), South County United for Health Council Member Marques – ABAG, Downtown Committee, 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, VTA Mobility Partnership Committee Council Member Tovar – Downtown Committee, 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 Mayor Blankley – ABAG (alternate), CalTrain Policy Group, Downtown Committee, Gilroy Economic Development Partnership, Gilroy Sister Cities Association (alternate), Gilroy Youth Task Force, Santa Clara Valley Water Joint Water Resources Committee, SCRWA, South County Youth Task Force Policy Team, VTA Board of Directors, VTA Mobility Partnership Committee 5. COUNCIL CORRESPONDENCE (NONE) 6. FUTURE COUNCIL INITIATED AGENDA ITEMS 7. CONSENT CALENDAR Items under the Consent Calendar are deemed routine and approved with one motion. If a Council member or a member of the public wishes for a separate discussion on an item, it must be requested for removal before the Council's approval vote. If removed, the item will be discussed in its original order. 7.1. Approval of the Action Minutes of the August 7, 2023 City Council Regular Meeting Page 3 of 308 August 21, 2023 | 6:00 PM Page 4 of 6 City Council Regular Meeting Agenda Packet 7.2. Accept and File Quarterly Cash and Investment Report as of June 30, 2023 7.3. Approval of the Annual Evaluation Report for the Santa Clara County Multi- Jurisdictional Program for Public Information Associated with the Community Rating System of the National Flood Insurance Program 7.4. Authorization to Approve Application to Receive Grant Funds from the California Youth Community Access Grant Program 7.5. Adoption of an Ordinance Adding Chapter 16B, Sidewalk Vending, to the Gilroy City Code 8. BIDS AND PROPOSALS 8.1. Award of Contract to Perkins & Will for the Preparation of 'Basis of Design' Documents for the Gilroy Ice Center and Approve a Contract Expenditure of $275,000 1. Staff Report: Karl Bjarke, Interim Public Works Director 2. Public Comment 3. Possible Action: a) Award a contract to Perkins & Will in the amount of $250,000 and approve an additional project contingency of $25,000 (10%) for a total amount of $275,000 for the preparation of ‘Basis of Design’ documents related to the Gilroy Ice Center project; and b) Authorize the City Administrator to execute the contract and associated documents. 9. PUBLIC HEARINGS (NONE) 10. UNFINISHED BUSINESS 10.1. Selection and Appointment of Youth Commission Members 1. Staff Report: Thai Nam Pham, City Clerk 2. Public Comment 3. Possible Action: Review the applications and interviews from the candidates and proceed with the formal appointment of suitable candidates to the vacant positions within the Youth Commission. 10.2. Introduction of an Ordinance of the City of Gilroy Amending Section 2.13 of the Gilroy City Code to Modify the Regular Meeting Schedule of the City Council 1. Staff Report: Thai Nam Pham, City Clerk 2. Public Comment 3. Possible Action: 1. Motion to read the ordinance by title only and waive further reading of the ordinance; and Page 4 of 308 August 21, 2023 | 6:00 PM Page 5 of 6 City Council Regular Meeting Agenda Packet 2.Introduce an ordinance of the City Council of the City of Gilroy amending Chapter 2 relating to the Regular Meeting Schedule of the City Council. 11.INTRODUCTION OF NEW BUSINESS 11.1. Presentation of the Comprehensive Water and Wastewater Utilities Rate Study; Adoption of a Resolution Commencing the Proposition 218 Noticing Process, and Setting October 16, 2023, as the Date for the Public Hearing to Adopt Water and Wastewater Rates 1.Staff Report: Harjot Sangha, Finance Director 2.Public Comment 3.Possible Action: a)Receive report; and b)Adopt a resolution: 1.Declaring intent to adjust water and wastewater rates; 2.Commencing the Proposition 218 noticing process; and 3.Setting October 16, 2023, as the date for the Public Hearing to adopt the new proposed water and wastewater rates. 11.2. Extension of Temporary Outdoor Dining Program 1.Staff Report: Sharon Goei, Community Development Director 2.Public Comment 3.Possible Action: Adopt a resolution extending the temporary outdoor dining program through December 31, 2023. 11.3. Adopt a Resolution of Intention to Reimburse Expenditures for Costs Incurred in Connection with the Gilroy Ice Center Project 1.Staff Report: Harjot Sangha, Finance Director 2.Public Comment 3.Possible Action: Adopt a Resolution of Intention to Reimburse Expenditures for Costs Incurred in Connection with the Gilroy Ice Center Project (the “Project”). 12.CITY ADMINISTRATOR'S REPORTS 12.1. Gilroy 2023-2031 Housing Element Update 12.2. Santa Teresa Interim Fire Station Update 13.CITY ATTORNEY'S REPORTS 14.ADJOURNMENT Page 5 of 308 August 21, 2023 | 6:00 PM Page 6 of 6 City Council Regular Meeting Agenda Packet FUTURE MEETING DATES September 2023 11 Regular Meeting - 6:00 p.m 18 Regular Meeting - 6:00 p.m October 2023 2 Regular Meeting - 6:00 p.m 16 Regular Meeting - 6:00 p.m November 2023 6 Regular Meeting - 6:00 p.m 20 Regular Meeting - 6:00 p.m December 2023 4 Regular Meeting - 6:00 p.m 11 Special Meeting - 6:00 p.m 18 Regular Meeting - 6:00 p.m -CANCELED- Meetings are webstreamed on the City of Gilroy’s website at gilroy.city/meetings. Page 6 of 308 Page 1 of 6 City of Gilroy City Council Regular Meeting Minutes Monday, August 7, 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 South Valley Community Church Pastor Greg Quirke led 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 Attendance Attendee Name Present Rebeca Armendariz, Council Member Dion Bracco, Mayor Pro Tempore Tom Cline, Council Member Zach Hilton, Council Member Carol Marques, Council Member Marie Blankley, Mayor Absent Fred Tovar, Council Member 1.6. Orders of the Day There were none. 1.7. Employee Introductions There were none. 2.CEREMONIAL ITEMS - Proclamations and Awards There were none. 3.PRESENTATIONS TO THE COUNCIL 3.1. Parks and Recreation Commission Annual Presentation Parks and Recreation Chair Luis Ramirez provided staff presentation and responded to Council Member questions. 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 Mayor Blankley opened Public Comment. The following members spoke on items that were not on the agenda: DRAFTAgenda Item 7.1 Page 7 of 308 August 7, 2023 | 6:00 PM Page 2 of 6 City Council Regular Meeting Minutes Ron Kirkish expressed appreciation for the outcome of the last LAFCO hearing, commending specific individuals, including Customer Service Manager Cindy McCormick, City Attorney Andy Faber, Santa Clara Board Supervisor Sylvia Arenas, Morgan Hill Mayor Mark Turner, and others, for their advocacy and efforts in supporting the community's interests, emphasizing the importance of the territory for future expansion. Robert Zepeda discussed the movie 'Sound of Freedom,' stressing California's alarming human trafficking statistics and emphasizing the need for awareness and action. There being no further speakers, Mayor Blankley closed Public Comment. 4.REPORTS OF COUNCIL MEMBERS Council Member Bracco had no report. Council Member Armendariz had no report. Council Member Marques had no report. Council Member Hilton reported on VTA Policy Advisory Committee and Silicon Clean Energy Authority JPA Board. Council Member Cline had no report. Mayor Blankley reported on CalTrain Policy Group. 5.COUNCIL CORRESPONDENCE There were none. 6.FUTURE COUNCIL INITIATED AGENDA ITEMS There were none. 7.BOARD AND COMMISSION INTERVIEWS 7.1. Interviews for Open Seats on Youth Commission for Future Appointments Scheduled for August 21, 2023 Council accepted the late applications for open seats and proceeded to interview applicants. The Council interviewed the following applicants: •Crystal Garcia Pablo •Kuber Sihra •Chad Knauss •Lavender Hwang •Maya Beyret •Zara Ting-Tee •Thanmay Sarath •Saed Mustafa 8.REVIEW OF OPEN MEETING AND TRANSPARENCY LAWS AND ORDINANCESDRAFTAgenda Item 7.1 Page 8 of 308 August 7, 2023 | 6:00 PM Page 3 of 6 City Council Regular Meeting Minutes 8.1. City Attorney Annual Training - FPPC Regulations / Conflicts of Interest / Council Norms City Attorney Faber provided the council training presentation and responded to Council Member questions. 9. CONSENT CALENDAR Mayor Blankley opened and, seeing no speakers, closed Public Comment. Motion: Adopt the Consent Calendar 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, Mayor Blankley ABSENT: Council Member Tovar 9.1. Approval of the Action Minutes of the July 10, 2023 City Council Special Meeting A motion was made to approve the minutes. 9.2. Approval of the Action Minutes of July 19, 2023 City Council Special Study Session A motion was made to approve the minutes. 9.3. Approval of a Notice of Acceptance of Completion for the FY22 Citywide Pavement Maintenance Project No. 22-PW-273 and Approval of a Final Contract with McKim Corporation in the Amount of $4,472,160.94 A motion was made to approve the Notice of Acceptance of Completion. 9.4. Approval of a Notice of Acceptance of Completion and Reduction of the Faithful Performance and Payment Security Bonds for Property Improvement Agreement No. 2017-04, Wild Chestnut - Tract 10301 A motion was made to approve the Notice of Acceptance of Completion. 9.5. Approve Corrected Gilroy Police Officers Association Salary Schedules for the Period July 1, 2023 - June 30, 2025 A motion was made to adopt the resolution. Enactment No.: Resolution No. 2023-46 9.6. Claim of Steve Kinney (The City Administrator recommends a "yes" vote under the Consent Calendar shall constitute denial of the claim) A motion was made to deny the claim. 10. BIDS AND PROPOSALS DRAFTAgenda Item 7.1 Page 9 of 308 August 7, 2023 | 6:00 PM Page 4 of 6 City Council Regular Meeting Minutes There were none. 11.PUBLIC HEARINGS 11.1. Continued Public Hearing for Introduction and First Reading of an Ordinance Adding Chapter 16B, Sidewalk Vending, to the Gilroy City Code Special Assistant to City Administration Biggs provided staff presentation and responded to Council Member questions. Mayor Blankley opened the Public Hearing at 7:45 PM. Terence Fugazzi praised the city's efforts in managing the growing number of downtown vendors, stressing the importance of equitable regulations, addressing health concerns from street barbecues, and suggesting alternative power sources to generators. Ron Kirkish voiced appreciation for addressing the vendor issue and emphasized the need for stricter regulations, suggesting that vendors flouting the law should have their licenses revoked to ensure compliance and support law enforcement. There being no further speakers, Mayor Blankley closed the Public Hearing at 7:49 PM. Motion: Read the ordinance by title only and waive further reading of the ordinance. RESULT: Pass MOVER: Marie Blankley, Mayor SECONDER: Dion Bracco, Mayor Pro Tempore AYES: Council Member Armendariz, Mayor Pro Tempore Bracco, Council Member Cline, Council Member Hilton, Council Member Marques, Mayor Blankley ABSENT: Council Member Tovar City Clerk Pham read aloud the title of the proposed ordinance. Motion: Introduce an ordinance adding Chapter 16B, Sidewalk Vending, to the Gilroy City Code, which provides permit requirements and standards for sidewalk vending, and find that it is exempt from CEQA Guidelines Section 15332, with the following amendments to Exhibit ‘A’ of the ordinance: •Include the following standard in Section 16B.3: For the health, safety, and welfare of the community and pedestrians when using its public sidewalks, paths, and parks, generators and cooking methods that involve deep fat frying and wood-fired cooking devices, which present fire, smoke, burn, and slipping hazards, are prohibited. This limitation does not prohibit sidewalk vendors from using other cooking methods to heat or prepare foods. •Delete the following standards in Section 16B.3: (8) & (9) •Increase the distance at 16B.3 (28) from 2’ to 3’ •Replace ‘or’ with ‘and’ at subsection 16B.6 (8) to read: Commercial general liability, automobile, and workers' compensation insurance policies and DRAFTAgenda Item 7.1 Page 10 of 308 August 7, 2023 | 6:00 PM Page 5 of 6 City Council Regular Meeting Minutes other such policy as the office of the risk manager of the City of Gilroy shall require. RESULT: Pass MOVER: Marie Blankley, Mayor SECONDER: Dion Bracco, Mayor Pro Tempore AYES: Council Member Armendariz, Mayor Pro Tempore Bracco, Council Member Cline, Council Member Hilton, Council Member Marques, Mayor Blankley ABSENT: Council Member Tovar 11.2. Consideration of the Report of Abatement of Weeds and Refuse Within the City of Gilroy and Adoption of a Resolution of the City Council of the City of Gilroy Confirming the Imposition of Assessment Liens Against the Land Fire Chief Wyatt and Santa Clara County Weed Abatement Manager Moe Kumre provided staff presentations and responded to Council Member questions. Mayor Blankley opened the Public Hearing at 8:11 PM. There being no speakers, Mayor Blankley closed the Public Hearing at 8:11 PM. Motion: Approve the resolution. 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, Mayor Blankley ABSENT: Council Member Tovar Enactment No.: Resolution No. 2023-47 12.UNFINISHED BUSINESS There were none. 13.INTRODUCTION OF NEW BUSINESS 13.1. Introduction of an Ordinance of the City of Gilroy Amending Section 2.13 of the Gilroy City Code to Modify the Regular Meeting Schedule of the City Council City Administrator Forbis provided a brief report and responded to Council Member questions. Mayor Blankley opened and, seeing no speakers, closed Public Comment. Council directed staff to draft the revised language stipulating that the regular City Council meeting in December be held on the second Monday of the month. DRAFTAgenda Item 7.1 Page 11 of 308 August 7, 2023 | 6:00 PM Page 6 of 6 City Council Regular Meeting Minutes Additionally, the regular meeting for July will be moved to the last Monday of the month. 14.CITY ADMINISTRATOR'S REPORTS 14.1. Update on Recent Land Management System Implementation and Online Permit/Utility Payment System City Administrator Forbis provided a brief report and responded to Council Member questions. 15.CITY ATTORNEY'S REPORTS There were none. 16.ADJOURNMENT The Mayor adjourned the meeting at 8:21 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 DRAFTAgenda Item 7.1 Page 12 of 308 Page 1 of 2 City of Gilroy STAFF REPORT Agenda Item Title:Accept and File Quarterly Cash and Investment Report as of June 30, 2023 Meeting Date:August 21, 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 quarterly cash and investment report as of June 30, 2023. BACKGROUND The quarterly investment reports are prepared pursuant to the City’s investment policy to keep the City Council apprised of the City’s investment activities. ANALYSIS As of June 30, 2023, the City’s cash and investments totaled $190.3 million, of which $124.7 million is invested with the Local Agency Investment Fund (LAIF), and $61.5 million is invested in US Treasuries Securities. The fiscal year-to-date interest earnings are $4.5 million. In addition, approximately $28.4 million is held by Fiscal Agents in the Trustee capacity for various bond issues such as bond proceeds, debt service reserves, bond payments, and for post-employment benefits related to pension. The majority of this balance ($25.5 million) consists of the City of Gilroy’s share of the Acquisition and Construction Funds for the SCRWA Plant Expansion Project. Agenda Item 7.2 Page 13 of 308 Accept and File Quarterly Cash and Investment Report as of June 30, 2023. City of Gilroy City Council Page 2 of 2 August 21, 2023 FISCAL IMPACT/FUNDING SOURCE There are no direct fiscal impacts to receiving and filing the quarterly cash and investment report. This is an activity included in the Finance Department’s annual workplan. Attachments: 1. Cash and Investment Report as of June 30, 2023 Agenda Item 7.2 Page 14 of 308 Agenda Item 7.2 Page 15 of 308 Agenda Item 7.2 Page 16 of 308 Agenda Item 7.2 Page 17 of 308 Agenda Item 7.2 Page 18 of 308 Agenda Item 7.2 Page 19 of 308 Agenda Item 7.2 Page 20 of 308 Agenda Item 7.2 Page 21 of 308 Agenda Item 7.2 Page 22 of 308 Agenda Item 7.2 Page 23 of 308 Agenda Item 7.2 Page 24 of 308 Agenda Item 7.2 Page 25 of 308 Agenda Item 7.2 Page 26 of 308 Agenda Item 7.2 Page 27 of 308 Agenda Item 7.2 Page 28 of 308 Agenda Item 7.2 Page 29 of 308 Page 1 of 3 City of Gilroy STAFF REPORT Agenda Item Title:Approval of the Annual Evaluation Report for the Santa Clara County Multi-Jurisdictional Program for Public Information Associated with the Community Rating System of the National Flood Insurance Program Meeting Date:August 21, 2023 From:Jimmy Forbis, City Administrator Department:Public Works Submitted By:Karl Bjarke, Interim Public Works Director Prepared By:Susana Ramirez, Engineer I STRATEGIC PLAN GOALS Maintain and Improve City Infrastructure RECOMMENDATION Approve the Annual Evaluation for FY23 Report for the Santa Clara County Multi- Jurisdictional Program for Public Information associated with the Community Rating System of the National Flood Insurance Program. EXECUTIVE SUMMARY The Community Rating System (CRS) is a voluntary program of the Federal Emergency Management Agency’s (FEMA) National Flood Insurance Program (NFIP). The CRS program allows communities to earn flood insurance premium discounts for their residents and businesses by implementing local mitigation, floodplain management, and outreach activities that exceed the minimum NFIP requirements to reduce the risk of flooding. Eleven (11) communities in Santa Clara County, including the City of Gilroy, and Santa Clara Valley Water District (Valley Water) have actively participated in the FEMA NFIP CRS for over 30 years. Agenda Item 7.3 Page 30 of 308 Approval of the Annual Evaluation Report for the Santa Clara County Multi-Jurisdictional Program for Public Information Associated with the Community Rating System of the National Flood Insurance Program City of Gilroy City Council Page 2 of 3 August 21, 2023 A portion of the CRS involves community outreach activities. A Program for Public Information (PPI) is an ongoing local effort to identify, prepare, implement, and monitor a range of public information activities that meet specific local needs. The CRS credits the implementation of public outreach projects identified in a PPI, which, in turn, helps the City achieve better insurance premium discounts for its residents and businesses. Through the PPI planning process, activities are monitored, evaluated, and revised to improve effectiveness. In addition to updating the PPI every five years, FEMA requires an Annual Evaluation Report on PPI efforts and requires the communities to share the annual report with their governing bodies. BACKGROUND The City has been a participating community in the CRS Program of FEMA’s NFIP Program since May 1, 2007. Eleven Santa Clara County communities, including the City of Gilroy, participate in the CRS Program in partnership with Valley Water. The committee communities have worked together to develop and adopt the 2021 Multi- Jurisdictional PPI. The PPI is to be updated every five years. The PPI activity was introduced into the CRS Program in 2013 and is voluntary. As a collaborative PPI process, the committee agencies worked together to decide what flood risk reduction messages are most appropriate and designed a program to deliver these messages. FEMA requires the elected body of each community to approve this PPI to receive points for having an approved plan under the NFIP’s CRS. Currently, the City has a CRS class rating of 7 which provides a 15% flood insurance discount for properties located within the special flood hazard area or 100-year floodplain and 5% discount for non-floodplain properties. ANALYSIS The CRS Program provides credits for designing and carrying out public outreach projects. CRS credits for individual outreach projects can be increased if a community has a PPI. The PPI can help design an entire public information program, not just outreach projects. The PPI committee is comprised of both staff and non-governmental representatives who bring different perspectives and suggestions for a better outreach plan. For Gilroy, Public Works staff and a stakeholder representative, Ms. Merna Leal, are the committee members. Ms. Leal is a Gilroy resident and past District CRS program manager. ALTERNATIVES Council may choose to not approve the Multi-Jurisdictional PPI. This would require staff to develop separate outreach projects and/or develop a public information program for Agenda Item 7.3 Page 31 of 308 Approval of the Annual Evaluation Report for the Santa Clara County Multi-Jurisdictional Program for Public Information Associated with the Community Rating System of the National Flood Insurance Program City of Gilroy City Council Page 3 of 3 August 21, 2023 the City to increase the City’s CRS credits. Failure to approve this PPI limits the availability of additional CRS credits for outreach projects for the City. FISCAL IMPACT/FUNDING SOURCE The expense for creating this PPI was included in Valley Water’s adopted budget; therefore, there are no City fiscal impacts from approval of this PPI. There are no expected additional costs in staff’s continued participation in the PPI process. PUBLIC OUTREACH A copy of the Annual Evaluation Report for FY23 of the Santa Clara County Multi- Jurisdictional PPI 2021 will be posted in the Public Works’ Flood Management webpage. NEXT STEPS Staff will continue to participate in the PPI committee which will re-convene annually to evaluate the PPI and to make appropriate adjustments as needed. At the City’s next CRS Verification visit (estimated in 2023), staff will submit a copy of the PPI to receive CRS credit. Attachments: 1. Annual Evaluation Report for FY23 for the Santa Clara County Multi- Jurisdictional PPI 2021 Agenda Item 7.3 Page 32 of 308 MEMORANDUM FC 14 (01-25-23) TO: Rick L. Callender, Esq. FROM: Marta Lugo SUBJECT: Annual Evaluation Report for FY23 (Year 2: July 2022 – June 2023) for the 2021 Santa Clara County Multi-Jurisdictional Program for Public Information (PPI) DATE: July 3, 2023 Valley Water continues to participate in the Federal Emergency Management Agency's (FEMA's) National Flood Insurance Program (NFIP) Community Rating System (CRS) program. The CRS is a voluntary incentive program that recognizes and encourages community floodplain management activities that exceed the minimum NFIP requirements. Through the CRS, flood insurance holders in participating communities receive discounted premium rates to reflect the reduced flood risk. The three goals of the CRS are: 1.Reduce flood damage to insurable property, 2.Strengthen and support the insurance aspects of the NFIP, and 3.Encourage a comprehensive approach to floodplain management. Background Valley Water began participating in the CRS program in 1998. Since Valley Water is not a land-use agency, it is not considered an NFIP community and does not technically qualify to participate in the CRS program. However, in 1998, Valley Water staff worked with FEMA to create a "fictitious community" status for Valley Water. It is a unique designation; in fact, Valley Water is the only fictitious CRS community in the nation. Valley Water's participation as a fictitious community allows it to document qualifying flood risk reduction activities it performs throughout Santa Clara County (county). CRS credits Valley Water earns for activities within those communities are transferred to each CRS participating community, supporting savings on NFIP insurance policies within those jurisdictions. Under the CRS program guidelines, every 500 points a community earns translates to a 5% discount on NFIP flood insurance premiums for that community's residents and businesses. Currently, 11 of the 16 communities (cities, towns, and the county) within Santa Clara County participate in the CRS program. In its fictitious community designation, Valley Water has a CRS rating of Class 7. Many of Valley Water’s CRS credits are transferable to Santa Clara County CRS participating communities. For many of our communities, Valley Water’s CRS credits serve as a baseline. Between Valley Water’s baseline and the CRS community’s credit, NFIP flood insurance policyholders receive an average 15% discount. The average NFIP flood policy premium in Santa Clara County is approximately $1,000, meaning that CRS participating communities save their flood insurance holders about $150 to $200 per year by documenting the flood risk reduction activities it performs. Participation in the CRS program generates an annual savings of approximately $1.5M for policyholders in Santa Clara County. The Santa Clara County Multi-Jurisdictional Program for Public Information FEMA first introduced the Program for Public Information (PPI) as a CRS creditable activity in 2013. The PPI encourages CRS participating communities to work with local stakeholders to design a program for community outreach on flood risk reduction that best fits local needs. Valley Water led the development of a PPI for all CRS participating communities in Santa Clara County, which resulted in the completion of the first Multi-Jurisdictional PPI adopted in 2015 (2015 PPI), a countywide collaboration outreach program that standardizes our flood risk and loss reduction outreach messages and increase communities’ CRS points. Agenda Item 7.3 Page 33 of 308 Rick L. Callender, Esq. 2 July 3, 2023 Program for Public Information Requirements Participating communities must update the PPI every five years to maintain CRS credit. Valley Water continued its role as the lead agency in developing the subsequent 2021 Santa Clara County Multi- Jurisdictional PPI (2021 PPI). On April 27, 2021, the Valley Water Board of Directors adopted the 2021 PPI; the other CRS participating communities' governing bodies adopted the 2021 PPI soon thereafter. In addition to updating the PPI every five years, FEMA requires an Annual Evaluation Report on PPI efforts and requires the communities to share the annual report with their governing bodies. Attached is our submittal of the Annual Evaluation Report for Fiscal Year 23 (Year 2). Below are key highlights from this fiscal year. Key Year-2 Valley Water Accomplishments in FY 2023 FY 2023 Flood Awareness Campaign: Valley Water's award-winning flood awareness campaign continues to be the backbone of the PPI. Every year, the committee continues to increase efforts that encourage residents to prepare their personal/family emergency plans and ‘Get Flood Ready.’ Valley Water's FY23 Flood Awareness Campaign theme was “Our Climate Has Changed - Be Aware, Be Prepared, Take Action” (dated 11/22). Valley Water’s message emphasized its commitment to reducing flood risks and protecting the community. The campaign lasted four months, cost $330,000, and included a multilingual floodplain mailer, social media graphics, messages for all nine flood awareness tips (PPI CRS message topics), and blog posts for all Santa Clara County communities to use. Valley Water shared the 2022-2023 Flood Awareness Outreach Partner Social Media Toolkit with all Santa Clara County cities/county, including CRS communities. Valley Water also used its monthly newsletter, news blog, social media profiles, and videos to enhance flood awareness efforts before and during forecasted storms starting as early as September 2022. During the length of the campaign and leading up to anticipated storm events, Valley Water posted flash flood warnings, shared posts with critical messages about flood safety, and promoted the Flood Watch Tool throughout the winter. Education Outreach Programs: Valley Water's Education Outreach includes year-round flood awareness messaging in all students’ programs. In FY23, a dedicated flood-focused program was offered from October 2022 through April 2023. Valley Water's role as a flood protection agency is highlighted in all presentations so that participants know that flood protection is one of Valley Water's core objectives. In FY 2023, staff provided 233 general program presentations with 8,548 attendees and 323 educators. In addition, Education Outreach offered three flood-focused programs that promote flood awareness and preparedness: "The Three Little Pigs and The Bad Weather Wolf,” “Mapping Landforms,” and "Watershed Maps." In FY 2023, staff provided 113 flood-focused presentations to 2,751 attendees and 122 educators. Other CRS Program Outreach Initiatives: In FY 23, Valley Water piloted ‘Get Flood Ready’ Flood Event Kits (Flood Kits). The Flood Kits included the following items: rolling storage bins, customized and branded (both Valley Water and agencies logos) ‘Get Flood Ready’ banners and tablecloths, flood emergency starter kits, flood preparedness materials, stickers, and giveaway items. From late October through early November 2022, the Valley Water CRS Program distributed the Flood Kits to all communities in Santa Clara County with the aim of standardizing local flood-preparedness messaging and expanding Valley Water’s ‘Get Flood Ready’ campaign regionally. The PPI Committee continued to promote the American Red Cross All-Hazard App, which monitors alerts for severe weather including floods, and the ValleyWater.org/floodready, Floodsmart.gov and Ready.gov websites. In FY23, Valley Water’s CRS Program staff provided ‘Get Flood Ready’ materials and participated at outreach events at the Silicon Valley Bike Coalition at the Ride Out the Drought event; the Downtown San Jose Neighborhood Association Emergency Preparedness event with the local Salvation Army; Agenda Item 7.3 Page 34 of 308 Rick L. Callender, Esq. 3 July 3, 2023 Santa Visits Alviso Foundation. They also partnered with Sacred Heart Community Services and a local advocate for the unhoused to provide emergency starter kits and flood-preparedness materials to the communities they serve. Valley Water’s CRS Program staff made presentations and shared resources on flood preparedness at the City of Cupertino Public Safety and Community Emergency Response Team (CERT) and at a City of San Jose Neighborhood CERT event. Valley Water’s CRS Program, along with the 2021 PPI Committee will continue to promote the American Red Cross All Hazard App which monitors alerts for severe weather, including floods, and the Floodsmart.gov and Ready.gov websites. The communities will distribute American Red Cross Emergency Contact Cards at events throughout the county. To support the PPI Committee’s flood preparedness messaging, Valley Water’s CRS Program and communities will continue to promote the importance of having family emergency plans and emergency kits ready to go before an emergency/flood event occurs. Conclusion Overall, the CRS Users Group/PPI Committee successfully implemented the 2021 PPI in FY23. The 2021 PPI facilitated participating communities to mutually decide on which flood-risk reduction messages are most appropriate moving forward and identified means by which messages are effectively delivered. The objectives of participating in the 2021 PPI continue to reduce flood risks and earn valuable CRS credit points by continually enhancing the effectiveness of the flood-preparedness messaging to Santa Clara County. Valley Water’s CRS Program staff, the CRS Users Group, and 2021 PPI Committee will continue their work efforts through FY24. Please direct questions about the PPI Annual Evaluation Report to Don Rocha, External Affairs Assistant Deputy Administrative Officer at (408) 630-2338. _______________________ Marta Lugo Deputy Administrative Officer, acting for Rachael Gibson Chief of External Affairs External Affairs Division Attachment: Annual Evaluation Report for FY23 (Year 2) for the 2021 Santa Clara County Multi-Jurisdictional Program for Public Information (PPI) cc: R. Gibson, D. Rocha, S. Tran, A. Fonseca, CRS File, Egnyte electronic filing system ML:af W:\External Affairs\Office of Civic Engagement\CRS Program\62041023 Community Rating System (CRS)\CRS\PPI\PPI Annual Evaluation Reports\2021 PPI\2021 PPI Year 2 (FY23)\07-03-23 Memo to CEO from Acting CEA_Final.docx Agenda Item 7.3 Page 35 of 308 Santa Clara County Multi-Jurisdictional Program for Public Information 2021 Annual Evaluation Report for FY23 (Year 2: July 2022 to June 2023) July 2023 Prepared by: Santa Clara Valley Water District and Santa Clara County CRS communities Agenda Item 7.3 Page 36 of 308 1 of 20 I.INTRODUCTION The Community Rating System (CRS) is a voluntary program of the Federal Emergency Management Agency’s (FEMA) National Flood Insurance Program (NFIP). The CRS program allows communities to earn flood insurance premium discounts for their residents and businesses by implementing local mitigation, floodplain management, and outreach activities that exceed the minimum NFIP requirements to reduce the risk of flooding. In Santa Clara County, 11 (eleven) communities, including Santa Clara Valley Water District (Valley Water) have actively participated in the FEMA NFIP CRS for over 30 years. The CRS participating communities (CRS communities) are City of Cupertino, City of Gilroy, City of Los Altos, City of Milpitas, City of Morgan Hill, City of Mountain View, City of Palo Alto, City of San Jose, City of Santa Clara, City of Sunnyvale, and the Santa Clara Valley Water District (Valley Water). CRS communities, along with their external non-governmental stakeholders, non-CRS communities: City of Saratoga, Town of Los Altos Hills, Town of Los Gatos, and the County of Santa Clara who opted to join the 2021 Program for Public Information (PPI), comprised the 2021 PPI Committee. The original 2021 PPI Committee is listed in Table 1. Original Members of the Santa Clara County Multi-Jurisdictional 2021 PPI Committee of the 2021 PPI (Attachment 1). Since the development of the 2021 PPI, there may have been changes to the community’s original 2021 PPI Committee members (either the internal representatives to the organization and/or the external stakeholders). Those member changes are noted on the meeting attendance sheets. For CRS credit, FEMA requires that each CRS community provide at least two representatives to the regional PPI Committee, with at least half of the representatives from outside the local government. Additionally, at least half of the representatives must attend all the meetings of the regional PPI Committee. Non-CRS communities are also required to provide an external stakeholder. An important benefit of the PPI Committee’s work is close collaboration between local public agency staff who work on flood protection throughout Santa Clara County. Together, PPI Committee members continue strengthening their individual CRS programs and ensuring communities can evaluate their flood programs against a nationally recognized benchmark. The 2021 PPI Committee, the remaining non-CRS communities (City of Campbell and City of Monte Sereno), and other interested parties make up the Santa Clara County CRS Users Group. The Santa Clara County CRS Users Group collaborates to ensure floodplain management activities provide enhanced public safety, reduced damage to property and public infrastructure, and avoidance of economic disruption and loss in Santa Clara County. Through the five-year PPI development and the annual reporting process, members of the SC County CRS Users Group learn from one another about local floodplain management activities, including flood protection and land use issues. For both the Santa Clara County CRS Users Group and the 2021 PPI Committee, the PPI is one of the most impactful activities of the CRS program. Under the CRS program, flood insurance premium rates are discounted to reward CRS communities’ actions that meet the three goals of the CRS: (1) reduce flood damage to insurable property (2) strengthen and support the insurance aspects of the NFIP; and (3) encourage a comprehensive approach to floodplain management. Flood insurance premiums for CRS communities are reduced in 5% increments for every 500 CRS points earned. As of April 30, 2023, the total savings for Santa Clara County residents from CRS discounts is approximately $1.5 million. Agenda Item 7.3 Page 37 of 308 Santa Clara County 2021 Multi-Jurisdictional Program for Public Information Annual Evaluation Report for FY23 (Year 2: July 2022 to June 2023) 2 of 20 Valley Water is the lead flood risk reduction agency for Santa Clara County. Valley Water performs many flood preparedness outreach and stream stewardship/maintenance activities that earn credit points for CRS communities. Since Valley Water is not a land-use agency, the points Valley Water earns, as a “fictitious community, provide a foundation upon which the CRS communities can build. FEMA approved this unique arrangement with Valley Water in 1998. The CRS Coordinator’s Manual, 2013 Edition, included the option to undertake a Program for Public Information (PPI) which is a method that standardizes our flood risk and loss reduction outreach messages and increase communities’ CRS points. Each participant of the PPI Committee brings unique perspectives and suggestions that enhance the PPI. Each community must adopt the PPI through a formal vote by the community’s governing body. In 2013, Valley Water initiated and facilitated the effort to develop the first Multi-Jurisdictional PPI so that all Santa Clara County CRS communities could work together and benefit from this activity. Non-CRS communities were also invited to participate in the development of the PPI. This work effort resulted in the 2015 Multi-Jurisdiction PPI (2015 PPI). On April 14, 2015, Valley Water’s Board adopted the 2015 PPI, which sunset in April 2020. Following Valley Water’s lead, the other CRS communities’ governing bodies adopted the 2015 PPI soon thereafter. Under the CRS, the PPI must be updated every five years. Each subsequent year after adopting the PPI, the PPI Committee must submit an annual evaluation report to FEMA describing the PPI implementation for the prior fiscal year. The PPI Committee must evaluate whether the flood risk reduction messages in the PPI are still relevant and adjust the PPI, if needed. The annual evaluation report is shared with each CRS community’s governing body as an informational item. As required, annual evaluation reports for FY16 (Year 1 of the 2015 PPI) through FY19 (Year 4 of the 2015 PPI) were prepared, sent to each CRS community’s governing body, and included in each community’s respective annual recertifications or as part of a community’s documentation for those that were cycled on any given year. In FY20 (Year 5 of the 2015 PPI), the PPI Committee was required to update the 2015 PPI. The Insurance Services Office (ISO), FEMA’s CRS program management contractor, exempted the PPI Committee from submitting an annual evaluation report for FY20 (Year 5 of the 2015 PPI) as the committee focused on updating the document. In February 2020, Valley Water hosted the start of the five-year PPI updated process. Fifteen Santa Clara County communities worked together to update the 2015 PPI. These communities included the current 11 CRS communities as well as four non-CRS communities that expressed interest in joining the 2015 PPI and possibly the CRS program. Staff and external stakeholders from each agency participated in developing the new PPI. In March 2020, the Coronavirus (COVID-19) outbreak started. The California State Emergency Services Act, the Governor’s Emergency Declaration related to the COVID-19 pandemic, the Governor’s Executive Order N-29-20, and Order of the County of Santa Clara Public Health Officer dated March 16, 2020, went into effect. The COVID-19 pandemic caused far-reaching, unprecedented changes. Businesses and organizations faced economic and operational uncertainty across every industry and sector. The workforce impacts during COVID-19 caused delays beyond control, including the PPI Committee’s ability to continue its work of updating the 2015 PPI. Many communities shifted priorities to respond to the public health crisis; therefore, FEMA provided an extension of completing the update to the 2015 PPI to early 2021. The 2021 PPI Committee reconvened in October 2020 to resume the 2015 PPI update. Several virtual meetings followed until the 2021 PPI Committee completed the 2021 PPI in April 2021. The 2021 PPI was adopted by CRS communities, as indicated in Table 1. Dates 2021 PPI Adopted. II.2021 PPI DEVELOPMENT PROCESS Valley Water, CRS and non-CRS communities initiated the 2021 PPI process in February 2020. Due to Agenda Item 7.3 Page 38 of 308 Santa Clara County 2021 Multi-Jurisdictional Program for Public Information Annual Evaluation Report for FY23 (Year 2: July 2022 to June 2023) 3 of 20 COVID-19, discussions were postponed, and reinitiated the process in October 2020. The Santa Clara County 2021 Multi-Jurisdictional Program for Public Information document was completed in April 2021 (refer to Section I. Introduction for COVID-19 related delays). Virtual meetings were held between 2020 and 2021 to develop the 2021 PPI. FEMA’s six priority topic messages and the three additional messages identified in the 2015 PPI carried forward into the 2021 PPI. The 2021 PPI Committee felt all nine topics and supporting messages were still relevant for reaching Santa Clara County residents and ensuring they are Flood Ready. The below listed is Table 3 in the 2021 PPI: CRS Priority Messages Topic Number Topic message Public Message (Select one message per topic) TOPIC #1 Know your flood hazard •Know your flood risk •Contact your floodplain manager to find out if your property is in a floodplain •Check if your home or business is in a Special Flood Hazard Area TOPIC #2 Insure your property for your flood hazard •Get flood insurance ahead of time •Insure your property •There is a 30-day waiting period for the policy to take place TOPIC #3 Protect people from the flood hazard •Put your 3-day emergency kit together •Follow evacuation orders •Learn the best route to high ground TOPIC #4 Protect your property from the flood hazard •Protect your home from flood threats •Prepare your home •Sandbags can offer protection against a foot or less of floodwater •Get sandbags before a flood TOPIC #5 Build responsibly •Build responsibly in floodplains •Comply with development requirements •Check with your city/county floodplain manager before you build TOPIC #6 Protect natural floodplain functions •Keep creeks clean and flowing •Keep debris and trash out of our streams •Don’t pollute, dump, or drain anything in creeks Additional Outreach Topic Messages (only one message per topic) TOPIC #7 Develop an emergency plan •Develop an emergency plan TOPIC #8 Download disaster apps •Download disaster emergency apps TOPIC #9 Understand shallow flooding risks–– don’t drive through standing water •Understand shallow flooding risks - don’t drive through standing water The 2021 PPI Committee worked between the meetings to draft the 2021 PPI and review the extensive list of outreach and flood response projects (Attachment 2). Based on the 2021 PPI Committee’s evaluation of the 2015 PPI, the consensus was that most of the 2015 PPI flood risk reduction messages were still relevant, so only minor edits were incorporated as needed. This became the basis for the 2021 PPI; therefore, no additional FEMA review was required, as the 2015 PPI already ensured its provisions were fully compliant with FEMA requirements. The number of CRS points that the 2021 PPI activities will earn is determined by FEMA’s CRS Specialist and Technical Reviewers from ISO. The PPI Committee estimates that of the possible 350 points for Activity 330, each CRS communities could earn up to 300+/- points for PPI efforts. Once Valley Water approved the 2021 PPI (5-Year Plan), the final document was provided to the 2021 PPI Committee to present to their governing bodies for adoption and implementation. Table 1. Dates of 2021 PPI Adoption shows the 2021 PPI approval dates by each agency; all 11 CRS communities have Agenda Item 7.3 Page 39 of 308 Santa Clara County 2021 Multi-Jurisdictional Program for Public Information Annual Evaluation Report for FY23 (Year 2: July 2022 to June 2023) 4 of 20 adopted the 2021 PPI. Table 1. Dates 2021 PPI Adopted Community Date Presented Adopted Santa Clara Valley Water District 4/27/21 X City of Cupertino 8/17/21 X City of Gilroy 7/01/21 X City of Los Altos 7/13/21 X Town of Los Altos Hills (*non-CRS community) Not required Not required Town of Los Gatos (*non-CRS community) Not required Not required City of Milpitas 5/18/21 X City of Morgan Hill 6/16/21 X City of Mountain View 6/22/21 X City of Palo Alto 6/14/21 X City of San Jose 11/16/21 X City of Santa Clara 7/06/21 X County of Santa Clara (*non-CRS community) Not required Not required City of Saratoga (*non-CRS community) Not required Not required City of Sunnyvale 6/29/21 X Total Approved 11 *Non-CRS communities are encouraged to participate in Santa Clara County CRS Users Group and/or PPI Committee ongoing efforts and initiatives; however, for those that opted to participate in the 2021 PPI, are not required to adopt the PPI or share annual evaluation reports with their governing bodies. III.ANNUAL EVALUATION REPORTS The 2021 PPI states that the 2021 PPI Committee will meet at least once yearly to evaluate the PPI and incorporate any needed revisions. This meeting is coordinated in conjunction with the ongoing CRS User’s Group meetings, which occur at least twice a year. The evaluation will cover the following: ●Review of projects that were completed; ●Evaluate progress toward outcomes; ●Provide recommendations on projects that have not been completed; ●Provide recommendations for new projects not previously identified; ●Address any Target Audience changes; and ●Assess the impact of the program during an actual flood event if one has occurred. The 2021 PPI Committee prepares the annual evaluation report for submission with each CRS community’s annual CRS recertification package (or schedule 5-year cycle visits). The annual evaluation report is then shared with each CRS communities’ governing body as an informational item. Section V. 2022 Santa Clara County CRS Users Group/PPI Committee Meetings – Monitoring and Evaluating the 2021 PPI of this annual evaluation report summarizes the meetings held to develop the FY23 Annual Evaluation Report (Year 2 of the 2021 PPI). Table 2 below shows how each community expects to share the FY23 Annual Evaluation Report with its governing body. Agenda Item 7.3 Page 40 of 308 Santa Clara County 2021 Multi-Jurisdictional Program for Public Information Annual Evaluation Report for FY23 (Year 2: July 2022 to June 2023) 5 of 20 Table 2. How the 2021 PPI Annual Evaluation Report for FY23, Year 2 will be shared with Community’s Governing Body Community Method for Sharing Santa Clara Valley Water District Board Non-Agenda Item City of Cupertino Consent Item Council Agenda City of Gilroy Consent Calendar City of Los Altos Council Consent Calendar or Informational Staff Report Town of Los Altos Hill (*non-CRS community) Not required Town of Los Gatos (*non-CRS community) Not required City of Milpitas Memo to City Council City of Morgan Hill Council Consent Calendar City of Mountain View Council Weekly Update “Council Connection” City of Palo Alto Informational Staff Report City of San Jose Council Consent Calendar City of Santa Clara Council Consent Calendar County of Santa Clara (*non-CRS community) Not required City of Saratoga (*non-CRS community) Not required City of Sunnyvale City Manager’s “Update Sunnyvale” *Non-CRS communities are not required to share annual evaluation reports with their governing bodies. IV.2021 PPI ACCOMPLISHMENTS FOR FY23 The 2021 PPI Committee identified three efforts needed from each CRS community in order to prepare and finalize subsequent annual evaluation reports. 1.Governing bodies must adopt the 2021 PPI (Table 1. Dates 2021 PPI Adopted). The 2021 PPI Committee must prepare an annual evaluation report and share the reports with its governing body as informational items (Table 2. How the 2021 PPI Annual Evaluation Report for FY23, Year 2 will be shared with Community’s Governing Body). 2.For each fiscal year (July 1 - June 30), the communities must carry out and monitor the implementation of the outreach/flood response projects identified in Appendix A CRS Creditable Outreach and Flood Response Projects by CRS Community of the 2021 PPI (Attachment 2). 3.The PPI Committee must review and consider the ‘New Initiatives’ identified in the 2021 PPI (page 66) for advancing flood risk reduction efforts. Governing Bodies Approval: Including Valley Water, all 11 CRS communities’ governing bodies adopted the 2021 PPI. The approval dates are shown by each agency (Community) in Table 1. Dates of 2021 PPI Adopted noted above. Tracking System: The 2021 PPI is multi-jurisdictional and includes 15 agencies (11 CRS communities and four non-CRS communities). Tracking implementation is quite complex compared to a single-agency PPI. As the informal lead agency, Valley Water oversees the record-keeping to ensure consistency throughout the county. An electronic file-sharing system, Egnyte, is set up with folders for each community to file and share documents related to the 109 potential outreach/flood response projects identified in the 2021 PPI and all CRS-related documentation. This also includes a comprehensive spreadsheet tracking which lists projects that were accomplished in any given fiscal year by each individual community (Attachment 2). This spreadsheet, along with the annual evaluation report, will be submitted with annual CRS recertifications or as part of scheduled 5- year cycle visits. Agenda Item 7.3 Page 41 of 308 Santa Clara County 2021 Multi-Jurisdictional Program for Public Information Annual Evaluation Report for FY23 (Year 2: July 2022 to June 2023) 6 of 20 ISO assigns credit for Valley Water outreach/flood response projects to all Santa Clara County CRS communities’ ratings. Some communities also choose to carry out and report on their own outreach/flood response projects, in addition to those of Valley Water. These projects are shown on the composite spreadsheet (Attachment 2 - Appendix A from 2021 SC County Multi-Jurisdictional PPI noting FY23 Project Accomplishments) and include input from each agency. The PPI Committee discussed the benefits of using the Egnyte shared-filing system for tracking the 2021 PPI outreach/flood response projects and all CRS-related documentation. The PPI Committee also discussed the importance of ensuring each agency regularly uploads its CRS documentation. These benefits are: -Information Share/Knowledge Transfer: CRS communities can view each other’s program documentation. When a community improves its CRS rating, another community can access the documents submitted to determine how the CRS credited activities helped improve the score.-Document Repository: A central location for CRS-related documentation, organized to mirror the CRSCoordinator’s Manual (by community/activity/element), proves helpful when a community experiences staff turnover. -Documentation Submittals: CRS documents are organized and easy to share with the CRS Specialists conducting cycle visits and/or annual recertification. Summary of PPI Projects Accomplished in FY23 The complete list of outreach/flood response projects is included as Attachment 2 of this annual evaluation report, listing all projects proposed in the 2021 PPI, with a “Project Accomplishments” column noting actions taken during the second year of the PPI, FY23. Audiences Projects Accomplished Community at Large (CAL) 81 potential projects, 63 accomplished Residents and Businesses in the Special Flood Hazard Area (SFHA) 18 potential projects, 16 accomplished Messengers to Other Target Audiences (Organizations & Businesses Serving the Community) 10 potential projects, 10 were accomplished *Total Accomplished Projects 89 of 109 * Note: All projects carried out by CRS communities were accomplished in FY23. Variance in the number of potential projects versus accomplished projects is due to no updates received from non-CRS communities, which is not required for this annual evaluation report. These numbers go well beyond the minimum requirements of the CRS program for PPI credit under Activity 330; we anticipate all CRS communities will receive the maximum number of credits for our collective efforts in FY23. Valley Water’s Outreach/Flood Response Projects Annual Flood Awareness Campaign Valley Water's FY23 Flood Awareness Campaign theme was "Our Climate Has Changed." It launched after the 1Fourth National Climate Assessment was published; there could not have been a better time for this conversation. The federal report assessed that intense extreme weather and climate-related events are becoming more frequent and will have catastrophic impacts on vulnerable communities, infrastructure, ecosystems, and our economy. Extreme storm events could result in more frequent and severe flooding in our region. Valley Water’s message emphasized its commitment to reducing flood risks and protecting the community but acknowledged that we cannot eliminate all risks. Thus, our communities must adapt and prepare; and it starts with being informed and aware of risks. 1 US Global Change Resource Program (USGCRP) has a legal mandate to conduct a state-of-the-science synthesis of climate impacts and trends across U.S. regions and sectors every four years, known as the National Climate Assessment (NCA). Agenda Item 7.3 Page 42 of 308 Santa Clara County 2021 Multi-Jurisdictional Program for Public Information Annual Evaluation Report for FY23 (Year 2: July 2022 to June 2023) 7 of 20 An educational paid advertising campaign supplemented Valley Water’s community outreach effort. The advertising campaign was supported by a series of formative research to understand target audiences and their awareness levels and explore what educational messages and images most appealed to them. The Flood Awareness Campaign lasted four months, from mid-November 2022 to February 2023. The paid advertisement campaign cost a total of $330,000. Valley Water’s FY23 Annual Flood Awareness Campaign continued the shift from general digital and public space advertising to a series of direct mailings to the 51,120 homes and businesses in Santa Clara County's FEMA SFHA. Valley Water sent two separate targeted mailers to all homes and businesses in or near a high-risk flood area, as designated by the FEMA SHFA. The mailers were multilingual (English, Spanish, Chinese, and Vietnamese) and are posted on Valley Water’s website. 1.Annual Floodplain Mailer (FPM) - Valley Water’s multi-language (English, Spanish, Chinese, and Vietnamese) annual FPM “Our Climate Has Changed - Be Aware, Be Prepared, Take Action” (dated 11/22) mailed on November 28, 2022. https://online.flipbuilder.com/tkap/tmie/ 2.Trifold “You Live in a Flood Zone– Make Sure You Are Ready. Do You Know What to Do Before, During, and After a Flood?” mailed on January 6, 2023. https://online.flipbuilder.com/tkap/zmox/ Additionally, Valley Water’s FY23 Countywide Mailer (CWM) included a ‘Floods Can Follow Droughts’ section and was sent starting November 8 through 18, 2022, countywide to 744,025 addresses (USPS: ECRWSS ‐ Extended/Enhanced Carrier Route Walking Sequence Saturation Postal Customer). The CWM includes flood protection and preparedness measures information, knowing your flood risk, getting flood insurance, developing an emergency plan and kit, protecting your home from flood threats, signing up for AlertSCC and the American Red Cross Disaster Emergency App, and understanding shallow flooding – Turn Around Don’t Drown®. https://s3.us-west-1.amazonaws.com/valleywater.org.us-west-1/s3fs-public/2022-10- 26_Drought%20Countywide%20Mailer.pdf Lastly, ‘Are You Flood Ready?’ multilingual postcards that included the nine CRS topics and supporting messages, and links to various flood readiness/preparedness webpages were produced and distributed. https://www.valleywater.org/are-you-flood-ready Requested copies of the FPM, postcards, and trifold mailers were sent to all Santa Clara County cities and county Public Works and Planning Departments. Public Agency Annual Floodplain Mailer (FPM) Postcard Trifold (Mailed Jan 2023) (Mailed late Nov 2022 and early Jan 2023) City of Los Altos 50 100 20 Town of Los Altos Hills 25 150 20 City of Milpitas 50 25 20 City of Mountain View 25 25 20 City of Cupertino 100 100 20 VW CRS Program 150 300 20 All other 10 cities & County (10 count) 250 25 count each 250 25 count each 200 20 count each Agenda Item 7.3 Page 43 of 308 Santa Clara County 2021 Multi-Jurisdictional Program for Public Information Annual Evaluation Report for FY23 (Year 2: July 2022 to June 2023) 8 of 20 In mid-November 2022, Valley Water’s 2022-2023 Flood Awareness Outreach Partner Social Media Toolkit, ‘Our Climate Has Changed,’ was made available for download to all partnering agencies, including CRS communities. The toolkit provided links to the multilingual annual FPM, the ‘Flood Can Follow Droughts’ 2001-2023 Timeline, the ‘Are You Flood Ready?’ postcard, social media graphics and videos that included messages for all nine flood awareness tips (PPI CRS message topics), and blog posts for all Santa Clara County communities to use. https://www.dropbox.com/s/p438zrw8lwi614r/Flood%20Awareness%202022- 2023%20Partner%20Toolkit.pptx?dl=0. Valley Water HQ Lobby Displaying Flood Readiness Materials FY 23 Floodplain Mailer FY 23 Postcard Agenda Item 7.3 Page 44 of 308 Santa Clara County 2021 Multi-Jurisdictional Program for Public Information Annual Evaluation Report for FY23 (Year 2: July 2022 to June 2023) 9 of 20 During FY23, Santa Clara County experienced a drought emergency. Valley Water’s annual FPM reminded everyone that flooding can happen anytime it rains and that climate change has made extreme weather the new normal. Drought conditions can harden the ground and increase run-off to streams and creeks during the first few days of heavy rain, increasing the risk of flooding. In addition, the flood mailer showcased Valley Water's ongoing flood protection projects in areas susceptible to flooding. In FY23, the FPM featured a QR code, a cling with important flood safety websites, a detachable emergency phone list, photos of our most recent flood protection projects, and a graphic image displaying how historical floods have followed droughts in Santa Clara County (see below attached “Santa Clara County Floods & Droughts Timeline [2001-2023]). FY 23 Countywide Mailer FY 23 Trifold Mailer Agenda Item 7.3 Page 45 of 308 Santa Clara County 2021 Multi-Jurisdictional Program for Public Information Annual Evaluation Report for FY23 (Year 2: July 2022 to June 2023) 10 of 20 Valley Water also deployed a small-scale multilingual social media campaign, with the slogan "Flooding can happen during a drought," on social media and web platforms. The campaign launched in Winter FY23, starting with the season's first rains, and continuing through March 2023. A key strategy for the paid flood awareness campaign was incorporating the 2021 PPI 6 priority topics and the three additional outreach topics, including messages supporting the nine topics, in Valley Water ads. Staff crafted messages derived from Valley Water's annual FPM to residents in the SFHA. Additionally, the Valley Water Board of Directors shared posts on Nextdoor highlighting the "Flooding can happen during a drought" messaging and the nine CRS topics in Winter 2022-23. Valley Water also posted a flood preparedness blog, a digital copy of the FPM, and a guide on what to do before, during, and after a flood. Valley Water 2022-23 Flood Media Campaign (October 2022 – February 2023) Target: Santa Clara County residents Objective: Flood Awareness for All SCC Residents Digital ads targeted residents and commuters in or near the SFHA, using zip codes from published FEMA flood maps. The Media Plan Agenda Item 7.3 Page 46 of 308 Santa Clara County 2021 Multi-Jurisdictional Program for Public Information Annual Evaluation Report for FY23 (Year 2: July 2022 to June 2023) 11 of 20 The Ads Boosts: Animated Facebook posts “Boosted” on Facebook, Instagram, NextDoor Boost #1 (Nov8-9)Boost #2 (Dec01-05) Boost #3 (Dec7-11) Boost #4 (Dec26-30) Boost #5 (Dec28-31) Boost #6 (Jan4-10) Boost #7 (Jan10-17) Boost #8 (Jan15-20) Agenda Item 7.3 Page 47 of 308 Santa Clara County 2021 Multi-Jurisdictional Program for Public Information Annual Evaluation Report for FY23 (Year 2: July 2022 to June 2023) 12 of 20 Display Ads 300X250 Served to all adults in Santa Clara County Delivered: 6,246,254 Impressions Audio 30-second audio ads served via Streaming and Local On-Air Radio stations Delivered: 1,724,173 Impressions Agenda Item 7.3 Page 48 of 308 Santa Clara County 2021 Multi-Jurisdictional Program for Public Information Annual Evaluation Report for FY23 (Year 2: July 2022 to June 2023) 13 of 20 FY 23 Flood Awareness Campaign Results Valley Water also used its monthly newsletter, news blog, and social media profiles to enhance flood awareness efforts before and during forecasted storms starting as early as September 2022. During the length of the campaign and leading up to anticipated storm events, Valley Water posted flash flood warnings, shared posts with critical messages about flood safety, and promoted the Flood Watch Tool throughout the winter. Valley Water’s flood protection resources page at ValleyWater.org/floodready serves as a hub of flood safety information with icons leading to a series of related web pages, including information on flood zone maps, signing up for emergency alerts, sandbags, reporting local flooding, and safety tips. All cities and the county were requested to add a link redirecting site visitors from their respective flood protection resource pages and/or homepage to ValleyWater.org/floodready, Floodsmart.gov, and Ready.gov. All Santa Clara County communities received hard copies of Valley Water's FPM, postcard, and trifold for their outreach efforts. Valley Water shared the 2022-2023 Flood Awareness Outreach Partner Social Media Toolkit with all Santa Clara County cities/county, including CRS communities. The toolkit provided links to the multilingual annual FPM, social media graphics, messages for all nine flood awareness tips (PPI CRS message topics), and blog posts for all communities to use. The 2022-2023 post-Flood Awareness Campaign survey found: •39% recalled receiving mail with information about flood safety (59% in 2021-22). •64% are confident they have taken all necessary precautions to protect themselves from floods (76% in 2021-22). •43% rate the job Valley Water is doing at keeping them informed as excellent, good, or fair (61% in 2021-22). •48% are aware that their home was located in a flood zone awareness over last year (56% in 2021-22). •39% of respondents clearly understood Valley Water’s three main calls to action to be Flood Ready [develop an emergency plan, build an emergency kit, and get flood insurance] (58% in 2021-22). •39% of respondents have flood insurance; 15% of renters polled have insurance (51% in 2021-22). The results above demonstrate an effective campaign that is less expensive than general advertising, yielding a savings of approximately $150,000 with more robust results. Based on the findings, we will continue with targeted mailings to the FEMA SFHA as our outreach strategy for the flood awareness campaign rather than targeted advertising. Flood Emergency Starter Kit Distribution Pilot ‘Get Flood Ready’ Flood Event Kits (Flood Kits) were distributed to all cities and the county from late October through early November 2022. The Flood Kits included the following items: rolling storage bins, customized and branded (both Valley Water and agency’s logos) ‘Get Flood Ready’ banners and tablecloths, flood emergency starter kits, flood preparedness materials, and giveaway items. The Flood Kits will standardize local flood- preparedness outreach throughout the county and expand Valley Water’s ‘Get Flood Ready’ campaign. In addition to the Flood Kits, CRS will increase and broaden our flood-preparedness outreach to underserved communities by partnering with other community organizations to distribute multilingual flood-preparedness materials and flood emergency starter kits. This year, Valley Water acquired 6,000 flood emergency starter kits (Starter Kits). These Starter Kits will be distributed by all Santa Clara County communities and Valley Water’s CRS and other public-facing programs. The Starter Kits include essential supplies, such as a hand squeeze flashlight, rain poncho, safety whistle, N95 Agenda Item 7.3 Page 49 of 308 Santa Clara County 2021 Multi-Jurisdictional Program for Public Information Annual Evaluation Report for FY23 (Year 2: July 2022 to June 2023) 14 of 20 mask, and gloves. These popular Starter Kits encourage the community to ‘Get Flood Ready’ by developing an emergency plan and putting together a more comprehensive three-day emergency kit. CRS communities Outreach/Flood Response Projects The 2021 PPI Committee identified the outreach/flood response projects for each community. The implementation of these projects is reflected in the ‘FY 2023 (Year 2 of the 2021 PPI) Project Accomplishments’ column of Attachment 2. Valley Water Education Outreach Program Valley Water’s Education Outreach includes flood awareness messaging in every program presented year-round. A dedicated flood-focused program is offered from October through April, depending on the rainfall situation in any given year. Valley Water’s role as a flood protection agency is highlighted in all presentations so that participants in the Education Outreach Programs know that flood protection is one of Valley Water’s core objectives in Santa Clara County. Flood-focused Programs Education Outreach has three programs focusing on flood awareness and preparedness: ‘The Three Little Pigs and The Bad Weather Wolf,’ ‘Mapping Landforms,’ and ‘Watershed Maps.’ In FY23, Valley Water more than doubled its flood-focused programs from FY22. A high demand for in-person programs brought us back into the community and schools; therefore, we added a third flood-focused program, ‘Mapping Landforms,’ for 1st - 2nd grades. The demand for flood-focused programs was due to the unusually long rainy season extending into April 2023. The results of Flood-focused programs delivered between October 2022 and April 2023 are as follows: •113 Presentations •2,751 Attendees •122 Educators Flood Awareness Messaging In addition to the Flood-focused Programs, the Education Outreach Program provided additional flood awareness messaging in their general classroom presentations, STEAM (Science, Technology, Engineering, Art, and Math) programs, libraries, and camp programs. The results of the general flood protection messaging between October 2022 and April 2023 are as follows: •233 Presentations •8,548 Attendees •323 Educators Community Events and Engagement Booth Support at Events Valley Water staff made a concerted effort to actively participate in community events, including community festivals and emergency preparedness affairs, particularly in communities and neighborhoods in or near flood zones. In FY23 (from September 2022 – May 2023), both Valley Water and the communities staff hosted 18 booths Agenda Item 7.3 Page 50 of 308 Santa Clara County 2021 Multi-Jurisdictional Program for Public Information Annual Evaluation Report for FY23 (Year 2: July 2022 to June 2023) 15 of 20 and distributed flood preparedness information on flood safety and emergency preparedness materials, including Valley Water’s annual FPM. Those events are listed below. 1.2022 Santos Family 16th Annual Car Show-9/3/22 Alviso, CA 2.Emergency Preparedness Resource Fair-9/10/22 San Martin, CA 3.Mountain View Art & Wine Festival-9/11/22 4.Assembly Member Ash Kalra’s VeggieFest-9/17/22 San Jose, CA 5.Rotary Club Fall Festival-9/24/22 Cupertino, CA 6.Friends of Stevens Creek Trail Trailblazer Race-9/25/22 Mountain View, CA 7.Fall Festival at Martial Cottle Park-10/1/22 San Jose, CA 8.Santa Clara Parade of Champions-10/1/22 9.Pumpkins in the Park-10/8/22 San Jose, CA 10.Bay Area Diwali Festival of Lights-10/8/22 Cupertino, CA 11.Supervisor Lee’s Day on the Bay-10/8/22 Alviso, CA 12.Santa Visits Alviso-12/10/22 13.AAUW Wildflower Run-3/26/23 Morgan Hill, CA 14.VMC Foundation Women’s Leadership & Policy Summit-4/29/23 Saratoga, CA 15.Tech Interactive Tech Challenge-4/30/23 San Jose, CA 16.Berryessa Art Festival-5/13/23 17.San Jose Giants-5/13/23 18.Campbell Boogie Music Festival, 5/20/23-5/21/23 Speakers Bureau Program In FY23, Valley Water's ‘Let’s Talk Water: Speakers Bureau Program’ reached the 18 organizations listed below. All general presentations include mention of flood protection, the need to ‘Get Flood Ready’ regardless of the county’s drought status, and links to Valley Water’s ‘Flood Ready’ information and resources webpage (ValleyWater.org/floodready), and the hotline to call to report obstructions in creeks. Valley Water’s Speakers Bureau Program can customize presentations to update community groups on water- specific issues and provide updates on projects in their area. ‘Let’s Talk Water’ also discusses local water conservation efforts and rebate programs. The FY23 presentations that included flood preparedness information are listed below. 1.October 13, 2022 – City of San Jose Board of Retirees meeting 2.October 20, 2022 – Palo Alto Kiwanis meeting 3.October 22, 2022 – Greentown Los Altos Library event 4.November 3, 2022 – Harbor Industrial Association luncheon 5.December 6, 2022 – RE/MAX Realtor informational meeting 6.January 4, 2023 – Mount Pleasant Neighborhood Assoc meeting 7.January 18, 2023 – Cupertino Library presentation hosted by Cupertino Library Foundation 8.February 9, 2023 – Sons in Retirement: Branch 54 monthly meeting 9.February 13, 2023 – Rotary Club of Evergreen Valley meeting 10.February 14, 2023 – Santa Clara County: Sustainability Working Group presentation 11.March 1, 2023 – Seven Trees Neighborhood Association meeting 12.March 6, 2023 – Leadership Morgan Hill presentation 13.March 9, 2023 – Presentation during Mountain View Senior Center afternoon workshop 14.March 23, 2023 – Mission San Jose Rotary Zoom meeting 15.April 6, 2023 – Water 101 Academy presentation 16.April 11, 2023 – Presentation during Terraces Los Gatos monthly speaker series 17.May 4, 2023 – West San Jose Kiwanis meeting 18.May 19, 2023 – Rotary Club of San Jose Silicon Valley Agenda Item 7.3 Page 51 of 308 Santa Clara County 2021 Multi-Jurisdictional Program for Public Information Annual Evaluation Report for FY23 (Year 2: July 2022 to June 2023) 16 of 20 Other Community Engagement Efforts Valley Water partnered with the Silicon Valley Bike Coalition at the Ride Out the Drought event held on October 15, 2022; the Salvation Army on October 22, 2022; Santa Visits Alviso Foundation on December 7, 2023; Sacred Heart Community Services on February 8, 2023, and Ms. Gail Osmer, homeless advocate, on March 15, 2023 by providing and/or distributing FEMA, US Army Corps of Engineers, and Valley Water multilingual flood preparedness educational materials, flood insurance promotion, AlertSCC, American Red Cross All-Hazard APP, and emergency preparedness starter kits which supports Valley Water’s ‘Get Flood Ready’ campaign. Additionally, presentations on flood preparedness were made at the City of Cupertino Public Safety and Community Emergency Response Team (CERT) held on October 26, 2022, and at the City of San Jose Neighborhood CERT event held on November 15, 2022. Flood resources were also shared at these events. V.2023 SANTA CLARA COUNTY CRS USERS GROUP/PPI COMMITTEE MEETINGS – MONITORING AND EVALUATING THE 2021 PPI The FY23 Santa Clara County CRS Users Group/PPI Committee meetings were held on March 21, 2023, and May 16, 2023. Attendance was good and quorum was met with staff from the 11 CRS communities for both meetings. Staff from some non-CRS communities, external stakeholders, and other interested parties were also in attendance. Agendas/minutes, and attendance sheets for each meeting are included (Attachments 3-6). As required by CRS, the objective for both the March and May 2023 meetings was to monitor the implementation of the 2021 PPI, determine if the desired outcomes were achieved, and discuss if any changes to the 2021 PPI were needed to complete this annual evaluation report. The PPI Committee agreed that the 2021 PPI messaging and projects would remain the same for the duration of the 2021 PPI, which sunsets in 2026. At the March 21, 2023, meeting, a draft FY 2023 (Year 2 of the 2021 PPI) Project Accomplishments worksheet was shared with the PPI Committee for their review/input. The PPI Committee: ●Assessed whether the desired outcomes of the 2021 PPI were achieved in FY23 and what, if anything, should be changed. The consensus of the PPI Committee is that our 2021 PPI implementation for FY23 continues to be on target and that no changes are needed. Cities with the PPI approved by their elected officials reported receiving strong support. ●Reviewed which communities have adopted the 2021 PPI. Ensured that those communities who have adopted the PPI have all the conformed/enacted copies and supporting documentation in their respective governing bodies uploaded into Egnyte and a copy sent to Valley Water. ●Provided instruction on how communities will submit their updates to Appendix A of the 2021 PPI to Valley Water for consolidating annual evaluation report, including the spreadsheet (Attachment 2). ●Communities were informed that all updates were due by the next CRS Users Group Meeting or sooner.●Reviewed and discussed ‘Other New Initiatives’ identified in the 2021 PPI (see below, Section VI. Future Messaging – Other New Initiatives). Amy Fonseca, Valley Water CRS Program Administrator asked the group to share any ideas they may have on how we could carry out a new initiative as a group. Initiative #1 - Continue and expand the standardized flood message prepared for each community to include flood messages in utility bills yearly, including PG&E −Utility bills will continue to be offered by Valley Water. −The PPI Committee decided to continue discussion of this initiative discussion to the May 16, 2023, meeting; Valley Water’s as Communications would be providing an update of the FY23 Flood Awareness Campaign which those results could impact and guide initiative actions. Agenda Item 7.3 Page 52 of 308 Santa Clara County 2021 Multi-Jurisdictional Program for Public Information Annual Evaluation Report for FY23 (Year 2: July 2022 to June 2023) 17 of 20 Initiative #2 - Expand on partnerships with local chambers of commerce to disseminate and share flood preparedness information −Group was asked if anyone have any ideas or contacts to share? For example, the Santa Clara County Chamber of Commerce. Does anyone have any contacts with them? Who are these events catered to? −Beginning of FY23-24 flood season, we will work together to coordinate something county-wide or locally? Initiative #3 - Expand on outreach to the Asian and Latino communities who live in flood prone areas −Group was asked if they had any ideas to expand outreach Asian or Latino communities in your areas that have been impacted by flooding? Paola Giles, Valley Water Communications offered that we could reach out to school districts (specific schools with the Asian/Latino demographics), libraries, recreational and senior centers. Jenn Chu, City of Cupertino mentioned that their Safe Routes to School Coordinator meets with schools and provides flyers, communications. −Valley Water shared the ArcGIS Online: Valley Water Open Data https://data- valleywater.opendata.arcgis.com/, a free public data and resource. We demonstrated the Disadvantaged Community Web Mapping Application layer: https://gis.valleywater.org/portal/apps/webappviewer/index.html?id=9c12e4acd60d4e14a4839ce01fcc8b c2. Initiative #4 - Expand on outreach to “hot spot” flood-prone areas by hosting on-site or virtual events Pointed out that the ArcGIS tool has several layers, including Santa Clara County Low Income Census Tracts (Poverty Zones) and Valley Water Flood Hot Spots. If any community is interested in accessing this information, reach out to Valley Water. We asked the group if there was any overlap of Valley Water’s hot spots versus their jurisdiction’s hot spots? Initiative #5 - Expand on reaching local homeowners associations (HOA)s and apartment associations (i.e., Executive Council of Homeowners [ECHO]) Shared with the group that Valley Water’s Speakers Bureau: Valley Water’s ‘Let's Talk Water: Speakers Bureau Program (https://www.valleywater.org/learning-center/lets-talk-water-speakers-bureau) offers presentations on the history of Valley Water and how we operate and includes information on flood preparedness. Presentations can be customized for groups, as requested. Steve Golden, City of Los Altos suggested communities could assist with providing contacts for HOA’s and property management companies that interact with renters. Initiative #6 - Expand on reaching residents in marginal and low-income communities through partnering with organizations that reach these communities (i.e., Second Harvest Food Bank and others) Demonstrated the ArcGIS Disadvantaged Community Application Map Tool Santa Clara County Low Income Census Tracts (Poverty Zones) layer Initiative #7 - Communities could pursue FEMA Matching Funds Grants for severe Repetitive Loss Areas This is something we could possibly investigate in future years; as was mentioned earlier during the meeting, as part of the Feasibility Study for CRS regionalization in Santa Clara County. The immediate need is us to retain the 280 points for Activity 510 FMP that are currently credited under the 2017 County of Santa Clara Multi-Jurisdictional Hazard Mitigation Plan (MJHMP). Valley Water and Santa Clara County are looking into Valley Water possibly developing a separate flood- centric FMP rather than including it as part of the update of the County’s 2017 MJHMP. The proposed flood-centric FMP could have a direct tie-in to this initiative; however, it may not include the RLAA element as part of the FMP. Valley Water has shared some grant opportunities Climate Change Resiliency, CAL Office of Emergency Services (OES) with our Grant’s Team. It was also mentioned, that under Valley Water’s Safe Clean Water, we have some community grants available to cities/county through our Grants Program. Agenda Item 7.3 Page 53 of 308 Santa Clara County 2021 Multi-Jurisdictional Program for Public Information Annual Evaluation Report for FY23 (Year 2: July 2022 to June 2023) 18 of 20 Initiative #8 - Review and expand other public information activities, such as Flood Protection Assistance (Activity 360) and Flood Insurance Promotion (Activity 370) This initiative ties in with the ongoing CRS regionalization efforts. We will see what recommendations come out of the draft Feasibility Study. Initiative #9 - Develop a region-wide Flood Response Preparations (FRP) messaging plan Demonstrated an electronic copy of the City of Santa Clara’s FRP. As the PPI Committee has discussed in past meetings, we are still considering using the City of Santa Clara’s FMP as a model for developing a countywide FRP that can be credited uniformly. ISO indicated this approach would likely be credited regionally. ●Discussed usage of Flood Event Kits that Valley Water provided to all communities at the end of October – early November 2022. We requested that communities share these flood preparedness resource materials with other appropriate departments within their organization. ●Provided a status update on the Feasibility Study for CRS Regionalization in Santa Clara County. Discussed the Multi-Jurisdictional Floodplain Management Plan (MJFMP) that Valley Water, its consultant, Tetra Tech, and all Santa Clara County communities will develop. This MJFMP will be a flood-centric FMP and separate from the update to the County of Santa Clara’s 2017 Multi-Jurisdictional Hazardous Mitigation Plan (MJHMP). ●Reminded all CRS communities to review their flood information landing page monthly and to verify all links are valid and annually to ensure content is still relevant and current to comply with CRS Activity 350 - Flood Protection Information, Element c), Flood Protection Website, from the CRS Coordinator's Manual, CRS. They were also reminded to ensure their flood resources landing page re-directs to Valley Water’s Flood Ready landing page, ValleyWater.org/FloodReady, FEMA’s floodsmart.gov and ready.gov. At the May 16, 2023, meeting, a draft 2021 PPI FY23 Annual Evaluation Report was briefly shared with the communities. The PPI Committee discussed that the FY22 Annual Evaluation Report was used as the starting basis for the FY23 Annual Evaluation Report. We reminded communities that the annual evaluation report will be due as part of communities’ annual CRS recertification package, which will be due on August 1, 2023, or during scheduled 5-year cycle visits (for Cities of Santa Clara, Palo Alto, Sunnyvale, and Mountain View) which are tentatively scheduled to be conducted in November 2023. Valley Water Communications staff presented an overview of the 2022-2023 Flood Awareness Campaign, including the annual FPM that was mailed in November 2022 to all addresses in the FEMA Special Flood Hazard Area (SFHA) and was also sent to city/town/county managers, public works and planning directors, and communities’ staff at the end of December 2022. Additionally, Valley Water Communications staff and their consultant, Probolsky Research, shared the FY23 post-campaign polling results the PPI Committee. It was determined that future flood awareness campaigns have an opportunity for expanded outreach to renters of both single-family homes and multi-family units, as well as providing localized historical flood information and outreach materials in public spaces. The FY24 Flood Awareness Campaign approach was discussed. Valley Water shared the status on the Feasibility Study for regionalizing the CRS program in Santa Clara County. We are shared that Valley Water will be leading a flood-centric Multi-Jurisdictional Floodplain Management Plan (MJFMP) in lieu of including CRS requirements as part of the update of the County of Santa Clara’s 2017 Multi- Jurisdictional Hazard Mitigation Plan (MJHMP). There was discussion regarding forming a separate working group for communities scheduled to be cycled in November 2023 (Cities of Mountain View, Palo Alto, Santa Clara, and Sunnyvale). Valley Water will first meet with Marlene Jacobs, ISO CRS Specialist assigned to all Santa Clara County communities, to see what Valley Water can provide to streamline the document process for activities we perform that are creditable under the CRS program, and which said credit transfers to the CRS communities. In the July/August 2023 timeframe, a coordination meeting between Valley Water, ISO, and the communities scheduled to be cycled will be set up. Valley Water CRS staff shared information on the Department of Water Resources (DWR) statewide agency coordination calls scheduled to begin by late June – early July 2023. The DWR calls lead up to the California Flood Preparedness Week (CFPW) held each October annually (specific dates for October 2023 to be announced). We Agenda Item 7.3 Page 54 of 308 Santa Clara County 2021 Multi-Jurisdictional Program for Public Information Annual Evaluation Report for FY23 (Year 2: July 2022 to June 2023) 19 of 20 shared Valley Water's experience participating in these calls, including the benefits of learning about CFPW, what other agencies throughout the state are doing, ways to participate, setting up lobby displays for the public, and accessing available resources for public events. All communities were strongly encouraged to participate this year, including presenting a resolution (Valley Water’s template available upon request) to their city councils to adopt CFPW and to forward information to other staff that can help promote flood-preparedness. We also discussed the usage of the Flood Event Kits that Valley Water provided to all communities in late 2022. Communities were encouraged to use the Flood Event Kits at various city-hosted events, safety fairs, etc., where flood preparedness messaging and materials are shared with residents. These resources will ensure our messaging and information on how to ‘Get Flood Ready’ is uniformed throughout the county. The group was asked if there was interest in Valley Water, in coordination with the California State Department of Water Resource (DWR), hosting CRS/ISO training required for Certified Floodplain Managers (CFMs) for their continuing education credit requirement. The group expressed interest; Valley Water will work with Robert Lampa of DWR to explore options to bring a four-day training course to California (possibly Valley Water’s facility) sometime in early 2024. We reviewed actions needed to complete the development of the 2021 Multi-Jurisdictional Program for Public Information (PPI) Annual Evaluation Report, FY 23 (Year 2: July 2022 to June 2023). This annual evaluation report is the second report for the 2021 PPI which documents our collective outreach project activities. VI.FUTURE MESSAGING – Other New Initiatives The PPI Committee identified several opportunities to expand on existing initiatives and initiate new ones as follows: 1.Continue and expand the standardized flood message prepared for each community to include flood messages in utility bills yearly, including PG&E. 2.Expand on partnerships with local chambers of commerce to disseminate and share flood preparedness information. 3.Expand on outreach to the Asian and Latino communities who live in flood-prone areas. 4.Expand on outreach to ‘hot spots’/flood-prone areas by hosting on-site or virtual public events. 5. Expand the reach to local homeowners associations (HOA)s and apartment associations (i.e., Executive Council of Homeowners [ECHO]). 6. Expand the reach to residents in historically underserved and low-income communities through partnerships with organizations that serve these communities (i.e., Second Harvest Food Bank and others). 7.Communities could pursue FEMA Matching Funds Grants for severe Repetitive Loss Areas. 8.Review and expand other public information activities, such as Flood Protection Assistance (Activity 360) and Flood Insurance Promotion (Activity 370). 9.Develop a region-wide Flood Response Preparations (FRP) messaging plan. The messages that the PPI Committee originally chose are still relevant to Santa Clara County. The committee will continue to increase its efforts to encourage people to prepare personal/family emergency plans and be Flood Ready. This will be incorporated into the flood preparedness outreach starting every fall. The PPI Committee will also continue coordinating efforts with Valley Water’s Education Outreach Program to promote flood preparedness in local schools. The PPI Committee recommends continued use of social media for messaging. Mobile usage among individuals has increased exponentially over the years, and online platforms are rapidly adjusting to mobile-friendly standards. This provides an excellent opportunity to modernize campaign ad efforts by utilizing social media and digital advertising to increase exposure and reach more residents in Santa Clara County. Furthermore, these modern advertising methods allow for specialized demographic targeting to reach a narrow and defined audience, improving the ability to reach vulnerable populations effectively. In support of our preparedness messaging, the PPI Committee will continue to promote the importance of having family emergency plans and kits ready before an emergency/flood event occurs. The PPI Committee will continue to promote the American Red Cross All-Hazard App which monitors alerts for Agenda Item 7.3 Page 55 of 308 Santa Clara County 2021 Multi-Jurisdictional Program for Public Information Annual Evaluation Report for FY23 (Year 2: July 2022 to June 2023) 20 of 20 severe weather, including floods, and the Floodsmart.gov and Ready.gov websites. The communities will distribute American Red Cross Emergency Contact Cards at events throughout the county. VII.CONCLUSION Overall, the CRS Users Group/PPI Committee successfully implemented the 2021 PPI in FY23. The 2021 PPI allowed PPI Committee members to mutually decide which flood risk reduction messages are most appropriate for our residents and identified how to effectively deliver these messages. The objectives of participating in the 2021 PPI are to enhance the effectiveness of the flood risk messages to residents, reduce flood risks within Santa Clara County, and to earn valuable CRS credit points when identified outreach projects are implemented. The CRS Users Group/PPI Committee will continue their outreach efforts through FY24. ________________________________________________________________________________________ Attachments for submission to Valley Water Board, City Councils/Managers, and FEMA as part of 2023 Annual Recertification/5-year Verification Package, as required: 1.Members of the Santa Clara County Multi-Jurisdictional 2021 PPI Committee2.Appendix A from 2021 SC County Multi-Jurisdictional PPI noting FY23 Project Accomplishments3.March 21, 2023, Santa Clara County CRS Users Group Meeting Agenda**4.March 21, 2023, Santa Clara County CRS Users Group Meeting Attendance Sheet5.May 16, 2023, Santa Clara County CRS Users Group Meeting Agenda**6.May 16, 2023, Santa Clara County CRS Users Group Meeting Attendance Sheet ** Meeting minutes are included in Section V of this report. Agenda Item 7.3 Page 56 of 308 Table 1. Original Members of the Santa Clara County Multi-Jurisdictional 2021 PPI Committee Community Local Government Representative and Alternates External Stakeholders County of Santa Clara Chris Freitas, Sr. Civil Engineer Neville R. Pereira, PE, Development Services Manager, Department of Planning and Development, Floodplain Manager Marsha Hovey, CADRE Board Chair Cupertino Chad Mosley, Assistant Public Works Director/City Engineer, Public Works Department, Floodplain Manager Jennifer Chu, Senior Civil Engineer Public Works Department Jim Oberhofer, Emergency Coordinator Cupertino ARES/RACES Gilroy Gary Heap, City Engineer Public Works Department Jorge Duran, Senior Civil Engineer, Floodplain Manager Public Works Department Merna Leal, City of Gilroy resident Los Altos Steven Golden, Senior Planner, Floodplain Manager Andrea Trese, Associate Civil Engineer Christopher Wilson, Operations Manager, Los Altos Suburban District, California Water Company Los Altos Hill Carl Cahill, City Manager, Floodplain Manager Nichol Bowersox, Public Works Director/ City Engineer Christine Hoffmann, Assistant Engineer (DPW) Phil Witt, General Manager Purissima Hills Water District Los Gatos WooJae Kim, P.E, Town Engineer Parks and Public Works, Floodplain Manager Annamaria Swardenski, Swardenski Consulting Milpitas Steven Erickson, City Engineer/Engineering Director, Floodplain Manager Kan Xu, Principal Civil Engineer, Engineering Land Development Section Brian Petrovic, Associate Civil Engineer Engineering Land Development Section Elizabeth Koo, Administrative Analyst, Engineering Land Development Section Warren Wettenstein, Chairman of the Economic Development & Trade Commission and President of the Milpitas Chamber Morgan Hill Maria Angeles, Senior Civil Engineer, Floodplain Manager, CFM Charlie Ha, Supervising Civil Engineer Engineering & Utilities Department Swanee Edwards, City of Morgan Hill resident Mountain View Renee Gunn, Senior Civil Engineer, Public Works Department Gabrielle Abdon, Assistant Engineer, CFM Kevin Conant, PG&E Palo Alto Rajeev Hada, Project Engineer, CFM Public Works Department, Engineering Services Division, Floodplain Manager Dan Melick, CERT Volunteer City of Palo Alto resident San Jose Arlene Lew, Principal Engineering Technician Vivian Tom, Senior Transportation Specialist Department of Public Works Development Services Division Shari Carlet, City of San Jose resident, certified Floodplain Manager Santa Clara Evelyn Liang, Senior Civil Engineer Falguni Amin, Principal Engineer Public Works – Engineering Kevin Moore, Retired City Council member Saratoga David Dorcich, PE, QSP/D, Associate Civil Engineer, Community Development Department, Floodplain Manager Rebecca Gallardo, Real Estate Agent for Intero, a Berkshire Hathaway Affiliate, servicing all areas of the Bay Area Sunnyvale Tamara Davis, Senior Management Analyst Jeff Holzman, Director, Real Estate District Development Google Agnes Veith, City of Sunnyvale resident Valley Water Trisha Howard, Program Administrator Paola Giles, Public Information Representative III Sherilyn Tran, Office of Civic Engagement Unit Manager Nikki Rowe, American Red Cross Note: Since the development of the 2021 PPI there may have been changes to a community’s 2021 PPI Committee members (either the local government representatives and/or the external stakeholders). Those member changes are noted on the meeting attendance sheets. ATTACHMENT NO. 1 Agenda Item 7.3 Page 57 of 308 Appendix A CRS Creditable Outreach and Flood Response Projects by CRS Community Santa Clara County Multi-Jurisdictional PPI 2021 FY 2023 (Year 2) Project Accomplishments by CRS Communities Audience 1 Message Outcome Project(s) Proposed to Support the Messages (XX denotes Community acronym, and Outreach Project #) Assignment 2 Schedule 3 Stakeholder FY 2023 (Year 2 of the 2021 PPI) Project Accomplishments INPUT HERE ONLY Community At Large (CAL) -Multilingual Communities -Groups with Special Evacuation Needs -New Residents, Visitors and Tourists Topic 1: Know your flood hazard Message 1A - Know your flood risk Message 1B - Contact your floodplain manager to find out if your property is in a floodplain Message 1C - Check if your home or business is in a Special Flood Hazard Area Topic 2: Insure your property for your flood hazard Message 2A - Get flood insurance ahead of time Message 2B – Insure your property Message 2C – There is a 30-day waiting period for the policy to take place Topic 3: Protect people from the flood hazard Message 3A - Put your 3-day emergency kit together Message 3B - Follow evacuation orders Message 3C – Learn the best route to high ground Topic 4: Protect your property from the flood hazard Message 4A - Protect your property from the flood hazard Message 4B - Prepare your home Message 4C - Sandbags can offer protection against a foot or less of floodwater Message 4E - Get sandbags before a flood Topic 5: Build responsibility Message 5A - Build responsibly in floodplains Message 5B - Comply with development requirements Message 5C - Check with your local floodplain manager before you build Topic 6: Protect natural floodplain functions Message 6A -Keep creeks clean and flowing Message 6B - Keep debris and trash out of our streams Message 6C - Don’t pollute, dump, or drain anything in creeks Educate our community on flood protection and preparedness measures (VW OP #01) Multi-language Countywide Mailer (CWM) to every postal address in Santa Clara County (Topics 1-5 and 7, 8) Valley Water Communications Each late October or November All Santa Clara County CRS Communities Valley Water’s FY23 Countywide Mailer (CWM) included a ‘Floods Can Follow Droughts’ section and was sent starting November 8 through 18, 2022,countywide to 744,025 addresses (USPS: ECRWSS -Extended/Enhanced Carrier Route Walking Sequence Saturation Postal Customer). The CWM includes flood protection and preparedness measures information, knowing your flood risk, getting flood insurance, developing an emergency plan and kit, protecting your home from flood threats, signing up for AlertSCC and the American Red Cross Disaster Emergency App, and understanding shallow flooding – Turn Around Don’t Drown®. https://s3.us-west-1.amazonaws.com/valleywater.org.u s-west-1/s3fs-public/2022-10-26_Drought%20Countywi de%20Mailer.pdf All Santa Clara communities support and promote Valley Water’s outreach projects. (VW OP #02) Distributes a soft copy of our Flood Safety Tips brochure for all SCC CRS communities’ use (print hard copies to distribute at events and/or post of flood preparedness webpages) (Topics 1-9) Valley Water Communications Annually, November/ December All Santa Clara County CRS Communities Multilingual postcards that included the 9 CRS topics and supporting messages, and links to various flood readiness/preparedness webpages were produced and distributed to all Santa Clara County communities, including CRS communities, in early January 2023. Additionally, in mid-November 2022, Valley Water’s 2022-2023 Flood Awareness Outreach Partner Social Media Toolkit, “Our Climate Has Changed,” which included the postcards, were made available for download to all partnering agencies. The toolkit includes the following items which contained messages for all nine flood awareness tips (PPI CRS message topics) for all Santa Clara County communities to use: ●Key flood outreach messages, ●SFHA floodplain mailer (multilingual) 3 A stakeholder can be any agency, organization, or person (other than the community itself) that supports the message. Stakeholders can be: an insurance company that publishes a brochures on flood insurance, even if it is set out at City Hall; a local newspaper that publishes a flood or hurricane season supplement each year; FEMA, if, for example, a FEMA brochure is used as an informational material; schools that implement outreach activities; a local newspaper; a neighborhood or civic association that sponsors and hosts a presentation by a community employee; a utility company that includes pertinent articles in its monthly bills; or presentations made by state or FEMA staff at a Risk Map meeting. 2 Each September, all deliverables need to be reported to Valley Water for tracking purposes. 1 Message Topics:Outreach Projects (OP):Topic 1 – Know your flood hazard; Topic 2 – Insure your property for your flood hazard; Topic 3 – Protect people from the flood hazard; Topic 4 – Protect your property from the hazard; Topic 5 – Build responsibly; Topic 6 – Protect natural floodplain functions; Topic 7 – Develop a Family Emergency Plan; Topic 8 – Download disaster Apps; Topic 9 – Understand shallow flooding risks – “Don’t drive through standing water.” Flood Response Preparations (FRP):What to Do Before, During and After a Flood/Storm 1 ATTACHMENT NO. 2 Agenda Item 7.3 Page 58 of 308 Appendix A CRS Creditable Outreach and Flood Response Projects by CRS Community Santa Clara County Multi-Jurisdictional PPI 2021 FY 2023 (Year 2) Project Accomplishments by CRS Communities Audience 1 Message Outcome Project(s) Proposed to Support the Messages (XX denotes Community acronym, and Outreach Project #) Assignment 2 Schedule 3 Stakeholder FY 2023 (Year 2 of the 2021 PPI) Project Accomplishments INPUT HERE ONLY Topic 7: Develop a Family Emergency Plan Message 7A: Develop an emergency plan Topic 8: Download disaster Apps Message 8A - Download disaster emergency apps Topic 9: Understand shallow flooding risks – don’t drive through standing water Message 9A - Understand shallow flooding risks - don’t drive through standing water FEMA’s message: “Turn Around Don't Drown®.” ●‘Are You Flood Ready?’ Postcard ●Flood Awareness ‘Our Climate Has Changed” (dated 11/2022) double-sided flyer (multilingual) for digital use and print ●Digital multilingual ads (web and social media graphics) ●Videos, ●Flood Awareness text, tips, and URLs (multilingual), and ●Flood Can Follow Droughts 2001-2023 Timeline Cupertino distributes copies of Valley Water’s Flood Safety Tips at various fairs/events (i.e., Earth Day Festival) and provides additional copies for the public on display at City Hall. Cupertino also has a direct link to Valley Water’s annual mailer and Flood Ready webpage on the City’s “Floodplain Management” webpage. Los Altos distributes brochures available at City Hall, library, and community center. They are also distributed at community events (emergency training, wine stroll, etc.). Morgan Hill hosted ‘National Night Out’ on August 2, 2022. Flood preparedness information (Valley Water floodplain mailer, red ‘Get Flood Ready’ which includes an emergency supply list tote bags, etc.) were distributed. Mountain View promotes and distributes Valley Water’s Flood Safety Tips and emergency kits at fairs (i.e., Earth Day Celebration). Valley Water’s flood safety brochures are available at city hall. Palo Alto promotes and distributes Valley Water’s Flood Safety Tip and emergency kits at fairs (i.e., Earth Day Festival) and provides as an informational item on Utility Inserts sent every year. Valley Water’s flood safety brochures are available at city hall. The City of Santa Clara has hard copy brochures available at city hall and central library. They are distributed at the yearly art & wine festivals as well. All Santa Clara communities support and promote Valley Water’s outreach projects. 2 ATTACHMENT NO. 2 Agenda Item 7.3 Page 59 of 308 Appendix A CRS Creditable Outreach and Flood Response Projects by CRS Community Santa Clara County Multi-Jurisdictional PPI 2021 FY 2023 (Year 2) Project Accomplishments by CRS Communities Audience 1 Message Outcome Project(s) Proposed to Support the Messages (XX denotes Community acronym, and Outreach Project #) Assignment 2 Schedule 3 Stakeholder FY 2023 (Year 2 of the 2021 PPI) Project Accomplishments INPUT HERE ONLY (CUP OP #03) Flood notice in the local newsletter, “The Cupertino Scene” (Topics 1-9) City of Cupertino Each October or November issue N/A Cupertino published the annual flood preparation article in the October 2022 issue of “The Cupertino Scene”. (LA OP #04) Two (2) newspapers ads, in the Los Altos Town Crier (Topics 1-5)City of Los Altos Each fall N/A Los Altos published two newspaper ads titled “Assess Your Flood Risk and Flood Insurance Availability” on 10/5/22 and on 10/19/22 in the Los Altos Town Crier. (LAH OP #05) The town’s “Our Town” quarterly newsletter includes information on flood preparedness. The newsletter is mailed out town-wide and is also available online on the town’s website (Topics TBD during cycle visit) Town of Los Altos Hills Each fall N/A Town of Los Altos Hills: No update available - non-CRS participating community. (LAH OP #06) The town distributes various flood preparedness and safety materials at events, including Valley Water’s annual floodplain mailer and promotional item (e.g., emergency starter kits, Get Flood Ready Emergency Supply Checklist tote bags, etc.), FEMA flood insurance information, ReadySCC, and American Red Cross Flood apps, AlertSCC, sandbag guidelines, flood protection project-specific notices, FEMA NFIP materials, and preparedness activity/coloring books, etc.) to the public Town of Los Altos Hills Annually, spring and late summer N/A Town of Los Altos Hills: No update available - non-CRS participating community. (MIL OP #07) “Flood Public Advisory” brochure to community at large (Topics 1-6)City of Milpitas Each December or January N/A Milpitas: A utility bill insert was sent to every address in Milpitas on 11/16/22. This was sent out in four languages (English, Vietnamese, Spanish, and Chinese). (MH OP #08) Sends a citywide “Flood Report” brochure (Topics 1-9)City of Morgan Hill Annually, close to or during the start of the rainy season N/A It is anticipated that the City of Morgan Hill will mail out citywide the “2023 Flood Report” in late June 2023 or sometime in July 2023. (MV OP #09) Sends “The View” citywide newsletter, Winter version, includes information on flood risk, flood safety, and the importance of buying flood insurance (Topics 1-9) City of Mountain View Fall newsletter edition N/A Mountain View’s publications have been updated. This year in March 2023 after a large round of storms we provided information (link to webpage, reporting flooding, sandbags) in the “City Hall Connection” which is sent to all registered users in the city. (MV OP #10) Mails a utility bill insert to all resident and businesses that contains information on flood risk, flood safety, and the importance of buying flood insurance (Topics 9) City of Mountain View Between July - September N/A Mountain View sent out Valley Water’s Get Flood Ready flier as a utility billing insert to every City utility customer in December 2022. (PA OP #11) Sends the “Are You Ready for Winter Storms?’ flier (aka utilities insert) to all residents and businesses in the City, along with their utility bills (Topics 1-9) City of Palo Alto Each Fall N/A Palo Alto sent “Are You Ready for Winter Storms?” fliers to all residents and businesses along with their utility bills in October 2022. The social media ad campaign (i.e. Facebook, Instagram, Nextdoor) was also included in the utility bills that went out in October 2022. (PA OP #12) Sends out utility announcement, “Anytime it can rain, it can flood. Don’t get caught off-guard” (Topics 1, 2,3, 4, 5, 6, 7, & 9 –will pursue adding other topic) City of Palo Alto Each March/April N/A Palo Alto sent a utility announcement as an informational announcement on utility bills went out in December 2022. Effective FY 23, the City’s Public Works Department has 3 ATTACHMENT NO. 2 Agenda Item 7.3 Page 60 of 308 Appendix A CRS Creditable Outreach and Flood Response Projects by CRS Community Santa Clara County Multi-Jurisdictional PPI 2021 FY 2023 (Year 2) Project Accomplishments by CRS Communities Audience 1 Message Outcome Project(s) Proposed to Support the Messages (XX denotes Community acronym, and Outreach Project #) Assignment 2 Schedule 3 Stakeholder FY 2023 (Year 2 of the 2021 PPI) Project Accomplishments INPUT HERE ONLY shifted from the March/April time frame of this announcement, to December each year. (PA OP #13) The city distributes various flood preparedness and safety documents, including FEMA NFIP materials for public/policyholders City of Palo Alto Year Round N/A Palo Alto distributed flood preparedness documents, including the emergency starters kit, to the local libraries and also made informational materials available in the HQ lobby. (SC OP #14) Mails out a citywide newsletter for residents and businesses called “Inside Santa Clara” (Topics 1-9) City of Santa Clara Each fall N/A Santa Clara: Citywide newsletter was sent to residents and is available on the city website in November 2022. Educate our community on flood protection and preparedness measures Increase in ‘hits’ on Valley Water and communities Flood Protection Resources webpage ____________________ __ These website projects are credited under Activity 350 – Flood Protection Information, element c). Flood protection website (WEB), not credited under Activity 330 Note: To receive any WEB credit, the community’s website must meet the following criteria: The community must check the website’s links at least monthly, and fix those that are no longer accurate. At least annually, the community must review the content to ensure that it is still current and pertinent (VW OP #15) Flood Ready webpage: Flood & Safety, Flood Protection Resources, includes floodplain and countywide mailers https://www.valleywater.org/floodready Valley Water Year Round All Santa Clara County CRS Communities Valley Water’s flood protection resources landing page includes the most current version of the annual floodplain mailer “Our Climate Has Changed - Be Aware, Be Prepared, Take Action”(dated 11/22 https://online.flipbuilder.com/tkap/tmie/) and “Floods Can Follow Drought” countywide mailer (dated 10/2022 https://s3.us-west-1.amazonaws.com/valleywater.org.us-w est-1/s3fs-public/2022-10-26_Drought%20Countywide%20 Mailer.pdf ), and “You Live in a Flood Zone, Make Sure You Are Ready. Do You Know What to Do Before, During, and After a Flood”’ trifold (dated 12/2022 https://online.flipbuilder.com/tkap/zmox/). Cupertino’s “Floodplain Management” webpage has a link that redirects to Valley Water’s Flood Ready landing page. Gilroy’s “Flood Management” and “Emergency Preparedness” web pages link to Valley Water’s Flood ready landing page. Los Altos’ “Floodplain Management Information” web page links to Valley Water’s Flood Ready web page. Morgan Hill’s “Floodplain Management” landing page redirects to Valley Water’s Flood Ready landing page. Palo Alto’s “Flood Information and Winter Storm Preparedness” webpage redirects to Valley Water’s Flood Ready landing page. City of Santa Clara’s “Flood Protection Information” web page redirected to Valley Water’s Flood Ready page. All Santa Clara communities flood protection resource landing pages redirect to Valley Water’s Flood Ready landing page. 4 ATTACHMENT NO. 2 Agenda Item 7.3 Page 61 of 308 Appendix A CRS Creditable Outreach and Flood Response Projects by CRS Community Santa Clara County Multi-Jurisdictional PPI 2021 FY 2023 (Year 2) Project Accomplishments by CRS Communities Audience 1 Message Outcome Project(s) Proposed to Support the Messages (XX denotes Community acronym, and Outreach Project #) Assignment 2 Schedule 3 Stakeholder FY 2023 (Year 2 of the 2021 PPI) Project Accomplishments INPUT HERE ONLY (ALL OP #16) All communities’ website flood protection resources webpage includes language that contains the three additional PPI priority messages noted below: 7. Develop an emergency plan 8. Download disaster apps 9. Understand shallow flooding risks––don’t drive through standing water All Santa Clara County Communities Year Round N/A Valley Water’s flood protection resources landing page includes the top 6 CRS priority topic messages, as well as the 3 additional messages identified in the 2021 PPI (page 45). Cupertino’s “Floodplain Management” webpage has a link to Valley Water’s annual mailer which includes the CRS 9 topics. Gilroy’s “Emergency Preparedness”' webpage redirects to Valley Water’s Flood Ready landing page, ‘9 Essential Tips to Get Flood Ready.’ Our Emergency Preparedness page also includes topics 7, 8, and 9. Morgan Hill’s “Flood Information, Floodplain Management” webpage includes a link to the “2021 Flood Report” that includes the CRS 9 topics. Palo Alto’s utility insert includes all three additional PPI priority messages, and the Flood Information and Winter Storm Preparedness website has a link to the utility insert which shows the three additional PPI. City of Santa Clara’s “Flood Protection Information” web page includes resources for preparedness. (SCC OP #17) Hosts a “Storm and Flood Information and Resources” webpage available for all residents in the county, includes re-directing to www.floodsmart.gov https://www.sccgov.org/sites/opa/Pages/storm.aspx Santa Clara County Office of Public Affairs Year Round N/A Santa Clara County: No update available - non-CRS participating community (SCC OP #18) Hosts a “Flood Safety Information” webpage, includes re-directing to www.valleywater.org/floodready https://cpd.sccgov.org/flood-safety-information Santa Clara County Consumer Protection Division Year Round N/A Santa Clara County: No update available - non-CRS participating community (SCC OP #19) Hosts a “Be a Prepared Community Member” webpage that includes emergency preparedness information https://emergencymanagement.sccgov.org/be-prepared-community-member Santa Clara County Office of Emergency Management Year Round N/A Santa Clara County: No update available - non-CRS participating community (SCC OP #20) Hosts a “People with Access and Functional Needs (AFN)” webpage https://emergencymanagement.sccgov.org/people-access-and-functional-needs-a fn Santa Clara County Office of Emergency Management Year Round N/A Santa Clara County: No update available - non-CRS participating community 5 ATTACHMENT NO. 2 Agenda Item 7.3 Page 62 of 308 Appendix A CRS Creditable Outreach and Flood Response Projects by CRS Community Santa Clara County Multi-Jurisdictional PPI 2021 FY 2023 (Year 2) Project Accomplishments by CRS Communities Audience 1 Message Outcome Project(s) Proposed to Support the Messages (XX denotes Community acronym, and Outreach Project #) Assignment 2 Schedule 3 Stakeholder FY 2023 (Year 2 of the 2021 PPI) Project Accomplishments INPUT HERE ONLY (CUP OP#21) Hosts a “Citizen Preparedness” webpage that includes emergency preparedness information, includes re-directing to Valley Water’s www.valleywater.org/floodready webpage https://www.cupertino.org/residents/community-services-programs/emergency-s ervices/citizen-preparedness City of Cupertino Office of Emergency Services Year Round N/A Cupertino has archived the “Citizen Preparedness” webpage and created a new “Floodplain Management” webpage: https://www.cupertino.org/our-city/departments/public-w orks/permitting-development-services/floodplain-manage ment (GIL OP #22) The city hosts an “Emergency Preparedness” webpage Emergency Preparedness | Gilroy, CA - Official Website (cityofgilroy.org)(listed in Appendix B) City of Gilroy Fire Department Year Round N/A Gilroy continues to maintain an “Emergency Preparedness” webpage, including a link that redirects to Valley Water’s Flood Ready landing page, the National Weather Service webpage, Ready.gov, FloodSmart.gov, and the City’s Flood Management webpage. The Emergency Preparedness webpage is reviewed once a month and updated as needed. (LA OP #23) The city’s Public Works Department hosts a ‘Flood Zone Information’ webpage on its website (listed in Appendix B) https://www.losaltosca.gov/publicworks/page/flood-zone-information City of Los Altos Public Works Department Year Round N/A Los Altos’ webpage is updated as needed. The webpage URL is: https://www.losaltosca.gov/publicworks/page/floodplain- management-information (LAH OP #24) The town hosts a “Flood Information” webpage on the town’s website. This webpage includes information on the PPI nine topics, including a supporting message. The webpage redirects to the following key resource websites:www.valleywater.org/floodready, www.floodsmart.org, www.ready.gov, and www.weather.gov Town of Los Altos Hills Year Round N/A Town of Los Altos Hills: No update available - non-CRS participating community (LG OP #25) The town’s website encourages residents and businesses to purchase flood insurance and redirects visitors to www.floodsmart.gov Town of Los Gatos Year Round N/A Town of Los Gatos: No update available - non-CRS participating community (MIL OP #26) The city’s’ website has a “Flood Information” webpage that contains information on several of the PPI message topics; the webpage also redirects to Valley Water, FEMA, NOAA,www.floodsmart.gov,www.Ready.gov, and USGS webpages The city’s website also has a “Important Flood Hazard Information” webpage that contains information on several of the PPI message topics; the webpage also redirects to Valley Water, FEMA, NOAA,www.floodsmart.gov (listed in Appendix B) https://www.ci.milpitas.ca.gov/milpitas/departments/engineering/flood-informat ion/ City of Milpitas Engineering Department Year Round N/A Milpitas: On-going. Link: https://www.ci.milpitas.ca.gov/milpitas/departments/engin eering/flood-information/ (MH OP #27) The city’s website has a “Flood Information, Floodplain Management” webpage that contains city’s flooding information which redirects to their Floodplain Management page and includes a link to the city’s latest annual “Flood Report.” The webpage redirects Valley Water’s flood ready webpage and also contains FEMA flood information http://www.morgan-hill.ca.gov/747/Flood-Information City of Morgan Hill Engineering Land Development Year Round N/A Morgan Hill’s “Flood Information, Floodplain Management” webpage will be updated to include a link to the “2023 Flood Report” brochure. 6 ATTACHMENT NO. 2 Agenda Item 7.3 Page 63 of 308 Appendix A CRS Creditable Outreach and Flood Response Projects by CRS Community Santa Clara County Multi-Jurisdictional PPI 2021 FY 2023 (Year 2) Project Accomplishments by CRS Communities Audience 1 Message Outcome Project(s) Proposed to Support the Messages (XX denotes Community acronym, and Outreach Project #) Assignment 2 Schedule 3 Stakeholder FY 2023 (Year 2 of the 2021 PPI) Project Accomplishments INPUT HERE ONLY Floodplain Management | City of Morgan Hill, CA - Official Website (MH OP #28) The city’s website has an “Emergency Preparedness’ webpage (listed in Appendix B)http://www.morgan-hill.ca.gov/133/Emergency-Preparedness City of Morgan Hill Police Department Year Round N/A Morgan Hill continues to maintain its “Emergency Preparedness” landing page. The Emergency Preparedness landing page promotes “Do 1 Thing” a 12-month program with a goal of assisting the community to be better prepared for emergencies and disasters. This information was also included in the “Weekly 411.” (MV OP #29) Hosts a “Flood Protection and Insurance Information” webpage on its website (listed in Appendix B) www.mountainview.gov/depts/pw/flood_protection.asp City of Mountain View Public Works Department Year Round N/A City of Mountain View’s “Flood Protection and Insurance Information” web page includes resources for preparedness. (PA OP #30) Hosts a “Floodplain Management” webpage (listed in Appendix B) https://www.cityofpaloalto.org/gov/depts/pwd/stormwater/floodzones.asp City of Palo Alto Public Works Department Year Round N/A Palo Alto continues to host the “Floodplain Management” webpage that has all relevant information regarding flood plain management topics. (PA OP #31) Hosts a “Flood Safety Tips” webpage www.cityofpaloalto.org/storms; flood_safe_11-16.cdr (cityofpaloalto.org) City of Palo Alto Public Works Department Year Round N/A Palo Alto continues to host the “Flood Information and Winter Storm Preparedness Webpage” which has links to the “Flood Safety Tips” flier under ‘Before the Storm Additional Information.’ (PA OP #32) Hosts a ‘Creek Monitor’ webpage (listed in Appendix B) https://www.cityofpaloalto.org/gov/depts/pwd/creek_monitor/default.asp City of Palo Alto Public Works Department Year Round N/A Palo Alto continues to host the real time creek monitor webpage that warns residents of imminent danger of flooding. (PA OP #33) Hosts a “Flood Information and Winter Storm Preparedness” web page which contains useful information for flood readiness (listed in Appendix B) https://www.cityofpaloalto.org/services/public_safety/flood_information_winter _storms/default.asp City of Palo Alto Office of Emergency Services Year Round N/A Palo Alto continues to host the “Flood Information and Winter Storm preparedness” website has useful information on flood preparedness for before storm, during storm and after storm. (SJ OP #34) The city’s webpages includes a “Flood Hazard Zones” webpage which includes information of flood preparedness https://www.sanjoseca.gov/your-government/departments/public-works/develo pment-services/floodplain-management City of San Jose Public Works, Development Services Year Round N/A San Jose: Website includes flood zone and flood smart information. Updated link: https://www.sanjoseca.gov/your-government/departments -offices/public-works/development-services/flood-hazard-z one (SC OP #35) The city’s “Flood Protection Information” webpage contains valuable information on flood related topics https://www.santaclaraca.gov/our-city/departments-g-z/public-works/engineerin g/flood-protection (also listed in Appendix B) City of Santa Clara Year Round N/A Santa Clara: Website is updated and maintains flood topic information (SAR OP #36) The city’s website encourages residents/businesses to purchase flood insurance and redirects visitors to www.floodsmart.gov City of Saratoga Year Round N/A Saratoga: No update available - non-CRS participating community (SAR OP #37) The city has a “Staying Safe, Winter Storms” webpage. They have also linked the city’s Winter Storms webpage to Valley Water’s Flood Ready webpage https://www.saratoga.ca.us/218/Winter-Storms City of Saratoga Year Round N/A Saratoga: No update available - non-CRS participating community 7 ATTACHMENT NO. 2 Agenda Item 7.3 Page 64 of 308 Appendix A CRS Creditable Outreach and Flood Response Projects by CRS Community Santa Clara County Multi-Jurisdictional PPI 2021 FY 2023 (Year 2) Project Accomplishments by CRS Communities Audience 1 Message Outcome Project(s) Proposed to Support the Messages (XX denotes Community acronym, and Outreach Project #) Assignment 2 Schedule 3 Stakeholder FY 2023 (Year 2 of the 2021 PPI) Project Accomplishments INPUT HERE ONLY (SUN OP #38) The city has a “Flood Protection” webpage Sunnyvale, CA - Flood Protection (listed in Appendix B) City of Sunnyvale Year Round N/A Sunnyvale: The City continues to maintain its flood protection website. Topics 1-9 and supporting messages Flood Awareness Media Campaign, including social media Educate our community on flood protection and preparedness measures (VW OP #39) Conducts a flood awareness media campaign, reaching the community at large, including our multilingual community. Many of the Santa Clara County CRS Communities recognize Valley Water’s Flood Awareness Campaign and link it on their community’s flood information web page and redirect to Valley Water’s Flood Ready webpage (Topics 1-9) Campaign features social media videos and postings on various platforms (i.e., Facebook, Twitter, Instagram, Nextdoor, etc.), digital banners, newspaper advertorials, radio ads, billboards, utility bill inserts for communities to use, communities redirect to ValleyWater.org/FloodReady and television/mobile ads targeting residents who live in flood-prone areas and multilingual ethnic communities Valley Water Communications Annually, for the duration of the rainy season, typically from November to April All Santa Clara County CRS Communities The Flood Awareness Campaign lasted four months, from mid-November 2022 to February 2023. The paid advertisement campaign cost a total of $330,000. Valley Water’s FY23 Annual Flood Awareness Campaign continued the shift from general digital and public space advertising to a series of direct mailings to the 51,120 homes and businesses in Santa Clara County's FEMA SFHA. As part of Valley Water’s FY23 Flood Awareness Campaign, Valley Water sent two separate targeted mailers to all homes and businesses in or near a high-risk flood area, as designated by the FEMA SHFA. The mailers were multilingual (English, Spanish, Chinese, and Vietnamese) and are posted on Valley Water’s website. 1. Annual Floodplain Mailer (FPM) - Valley Water’s multi-language (English, Spanish, Chinese, and Vietnamese) annual FPM “Our Climate Has Changed - Be Aware, Be Prepared, Take Action” (dated 11/22) mailed on November 28, 2022. https://online.flipbuilder.com/tkap/tmie/ 2. Trifold “You Live in a Flood Zone– Make Sure You Are Ready. Do You Know What to Do Before, During, and After a Flood?” mailed on January 6, 2023. https://online.flipbuilder.com/tkap/zmox/ Additionally,, ‘Are You Flood Ready?’ multilingual postcards that included the 9 CRS topics and supporting messages, and links to various flood readiness/preparedness webpages were produced and distributed. https://www.valleywater.org/are-you-flood-ready Requested copies of the FPM, postcards and trifold mailers were sent to all Santa Clara County cities and county Public Works and Planning Departments. In mid-November 2022, Valley Water’s 2022-2023 Flood Awareness Outreach Partner Social Media Toolkit “Our Climate Has Changed,” was made available for download to all partnering agencies, including CRS communities. The 8 ATTACHMENT NO. 2 Agenda Item 7.3 Page 65 of 308 Appendix A CRS Creditable Outreach and Flood Response Projects by CRS Community Santa Clara County Multi-Jurisdictional PPI 2021 FY 2023 (Year 2) Project Accomplishments by CRS Communities Audience 1 Message Outcome Project(s) Proposed to Support the Messages (XX denotes Community acronym, and Outreach Project #) Assignment 2 Schedule 3 Stakeholder FY 2023 (Year 2 of the 2021 PPI) Project Accomplishments INPUT HERE ONLY toolkit provided links to the multilingual floodplain mailer, Flood Can Follow Droughts 2001-2023 Timeline, ‘Are You Flood Ready?’ postcard, and social media graphics and videos, that included messages for all nine flood awareness tips (PPI CRS message topics), and blog posts for all Santa Clara County communities to use. https://www.dropbox.com/s/p438zrw8lwi614r/Flood%20A wareness%202022-2023%20Partner%20Toolkit.pptx?dl=0. During FY23, Santa Clara County experienced a drought emergency. Valley Water’s annual FPM reminded everyone that flooding can happen anytime it rains, and that climate change has made extreme weather the new normal. Drought conditions can harden the ground and increase run-off to streams and creeks during the first few days of heavy rain, increasing the risk of flooding. In addition, the flood mailer showcased Valley Water's ongoing flood protection projects in areas susceptible to flooding. In FY23 the FPM featured a QR code, a cling with important flood safety websites, a detachable emergency phone list, photos of our most recent flood protection projects and a graphic image displaying how historical floods have followed droughts in Santa Clara County (see below attached “Santa Clara County Floods & Droughts Timeline [2001-2023]). Valley Water also deployed a small-scale multilingual social media campaign, with the slogan "Flooding can happen during a drought," on social media and web platforms. The campaign launched in Winter FY23, starting with the season's first rains, and continuing through March 2023. At the May 16, 2023 CRS Users Group/PPI Committee Meeting, Adam Probolsky shared the FY 22-23 post-campaign polling results. ●39% recalled receiving mail with information about flood safety (59% in 2021-22). ●64% are confident they have taken all necessary precautions to protect themselves from floods (76% in 2021-22). ●43% rate the job Valley Water is doing at keeping them informed as excellent, good, or fair (61% in 2021-22). 9 ATTACHMENT NO. 2 Agenda Item 7.3 Page 66 of 308 Appendix A CRS Creditable Outreach and Flood Response Projects by CRS Community Santa Clara County Multi-Jurisdictional PPI 2021 FY 2023 (Year 2) Project Accomplishments by CRS Communities Audience 1 Message Outcome Project(s) Proposed to Support the Messages (XX denotes Community acronym, and Outreach Project #) Assignment 2 Schedule 3 Stakeholder FY 2023 (Year 2 of the 2021 PPI) Project Accomplishments INPUT HERE ONLY ●48% is aware that their home is located in a food zone awareness over last year (56% in 2021-22). ●39% of respondents clearly understood Valley Water’s three main calls to action to be Flood Ready [develop an emergency plan, build an emergency kit, and get flood insurance] (58% in 2021-22). ●39% respondents have flood insurance; 15% of renters polled, have insurance (51% in 2021-22). The results above demonstrate an effective campaign that is less expensive than general advertising, yielding a savings of approximately $150,000 with more robust results. We will continue with targeted mailings to the FEMA SFHA as our outreach strategy for the flood awareness campaign rather than targeted advertising. All Santa Clara communities support and promote Valley Water’s outreach projects. Los Altos included an insert provided by Valley Water to all residents and businesses via a refuse collection bill insert in November 2022 (non-residential) and January 2023 (residential). Morgan Hill’s flood preparedness outreach efforts for FY23 are listed below: ●August 2, 2022 - Hosted ‘National Night Out.’ Flood preparedness information (Valley Water floodplain mailer, red ‘Get Flood Ready’ which includes an emergency supply list tote bags, etc.) were distributed. ●September 2022 - Announced in its Weekly 411 that September was National Emergency Preparedness Month. ●October 2022 - Starting in June 2022, began participating in the ongoing statewide agency coordination calls that led up to California Flood Preparedness Week held during the week of October 22-29, 2022. The City also supported Valley Water’s efforts throughout the month of October 2022 promoting flood preparedness. ●January 2023 - Included information regarding flooding and weather precautions via the “Weekly 411.” Additionally, later in the month, another “Weekly 411” included information on signing up for Alert SCC and information on flood preparedness. 10 ATTACHMENT NO. 2 Agenda Item 7.3 Page 67 of 308 Appendix A CRS Creditable Outreach and Flood Response Projects by CRS Community Santa Clara County Multi-Jurisdictional PPI 2021 FY 2023 (Year 2) Project Accomplishments by CRS Communities Audience 1 Message Outcome Project(s) Proposed to Support the Messages (XX denotes Community acronym, and Outreach Project #) Assignment 2 Schedule 3 Stakeholder FY 2023 (Year 2 of the 2021 PPI) Project Accomplishments INPUT HERE ONLY ●March 2023 - Promoted “Do 1 Thing” s a 12-month program with a goal of assisting the community to be better prepared for emergencies and disasters. This information was included in the “Weekly 411” and is also included on the City’s Emergency Preparedness landing page: https://www.morgan-hill.ca.gov/133/Emergency-Prep aredness (VW OP #40) As part of the flood awareness campaign, a ‘Get Flood Ready, Social Media and Web Resources Guide’ is provided to all cities/county in Santa Clara County for their use as part of their outreach efforts Valley Water Upon the completion of the annual FPM All Santa Clara County CRS Communities In mid-November 2022, Valley Water’s 2022-2023 Flood Awareness Outreach Partner Social Media Toolkit “Our Climate Has Changed,” was made available for download to all partnering agencies, including CRS communities. The toolkit provided links to the multilingual floodplain mailer, Flood Can Follow Droughts 2001-2023 Timeline, ‘Are You Flood Ready?’ postcard, and social media graphics and videos, that included messages for all nine flood awareness tips (PPI CRS message topics), and blog posts for all Santa Clara County communities to use. https://www.dropbox.com/s/p438zrw8lwi614r/Flood%20A wareness%202022-2023%20Partner%20Toolkit.pptx?dl=0. All Santa Clara communities support and promote Valley Water’s outreach projects. Los Altos has included links to the flood awareness campaign web resources in electronic newsletters during the 2022/2023 flood season and on the city’s website. Morgan Hill’s Public Information utilizes Valley Water’s Get Flood Ready social media and resources as they deem applicable on any given period. Palo Alto has Valley Water’s Flood Awareness Campaign linked on the City’s Flood Information and Winter Storm Preparedness website. Santa Clara has Valley Water’s Flood Awareness Campaign linked on the City’s Public Works, Engineering, Flood Protection Information landing page on their website. (SCC OP #41) Shares Valley Water’s digital social media resource links during the flood season. The “Floods Follow Fires. Are you Ready?” and “Got Sandbags” messages redirect to Valley Water’s website. Messages are used on social media, short form newsletter, short form email, web, and Nextdoor Santa Clara County Office of Emergency Management Year Round N/A Santa Clara County: No update available - non-CRS participating community 11 ATTACHMENT NO. 2 Agenda Item 7.3 Page 68 of 308 Appendix A CRS Creditable Outreach and Flood Response Projects by CRS Community Santa Clara County Multi-Jurisdictional PPI 2021 FY 2023 (Year 2) Project Accomplishments by CRS Communities Audience 1 Message Outcome Project(s) Proposed to Support the Messages (XX denotes Community acronym, and Outreach Project #) Assignment 2 Schedule 3 Stakeholder FY 2023 (Year 2 of the 2021 PPI) Project Accomplishments INPUT HERE ONLY (CUP OP #42) Recognizes the robust social media campaign led by Valley Water and has linked the city’s main flood preparation webpage to Valley Water’s Flood Ready webpage City of Cupertino Year Round N/A Cupertino continues to maintain the “Floodplain Management” webpage, including a link that redirects to Valley Water’s Flood Ready webpage. (GIL OP #43) The city recognizes Valley Water’s Flood Awareness Campaign and has linked the city’s main flood webpage to Valley Water’s Flood Ready webpage City of Gilroy Year Round N/A Gilroy: The “Emergency Preparedness” and Public Works “Flood Management” webpage both link to Valley Water’s Flood Ready webpage. (LAH OP #44) The town recognizes Valley Water’s Flood Awareness Campaign and has linked the town’s main flood webpage to Valley Water’s Flood Ready webpage Town of Los Altos Hills Year Round N/A Town of Los Altos Hills: No update available - non-CRS participating community (LG OP #45) Recognizes Valley Water’s Flood Awareness Campaign and has linked the Town’s main flood webpage to Valley Water’s Flood Ready webpage Town of Los Gatos Year Round N/A Town of Los Gatos: No update available - non-CRS participating community (MV OP #46) The city does a social media notification about storm preparation for winter storms ahead of time. The notification directs residents to their “Flood Protection and Insurance Information” webpage. The city has also linked the city’s webpage to Valley Water’s Flood Ready webpage City of Mountain View Year Round N/A Mountain View shared several social media posts before, during and after the major rain events during the winter. Posts included information on preparation, forecasts for rain events and real time updates on current flooding . (SC FRP #47) City publishes social media posts, on Facebook, Twitter, and other platforms, focused on safety. The city has prepared a pre-flood plan (FRP) for public information projects that will be implemented before, during, and after a storm/flood, as well as identifying who is responsible for posting these messages, what type of events they apply to, what social media platforms to post to and how often City of Santa Clara Office of Emergency Services During the storm season N/A Santa Clara: Information was posted on social media for flood awareness week led by City Streets Division (SJ OP #48) Recognizes Valley Water’s Flood Awareness Campaign and has linked the city’s main flood webpage to Valley Water’s Flood Ready webpage. Keeps Valley Water’s floodplain mailer static location at City Hall for residents to pick-up and is also distributed at various events throughout the year City of San Jose Year Round N/A San Jose places Valley Water’s FPM at City Hall and their website redirects to Valley Water’s Flood Ready webpage. The City recognizes and supports Valley Water’s Flood Awareness Campaign. (SAR OP #49) Recognizes Valley Water’s Flood Awareness Campaign and has linked the city’s main flood webpage to Valley Water’s Flood Ready webpage City of Saratoga Year Round N/A Saratoga: No update available - non-CRS participating community (SAR OP #50) The city does a social media notification about storm preparation for winter storms ahead of time City of Saratoga Year Round N/A Saratoga: No update available - non-CRS participating community (SUN OP #51) The city actively posts flood safety and preparedness messaging through social media platforms (i.e., Facebook and Twitter) City of Sunnyvale Environmental Services During the rainy season (October – March) N/A Sunnyvale: City staff posted information to Facebook regarding keeping the storm drain clear to prevent clogging. 12 ATTACHMENT NO. 2 Agenda Item 7.3 Page 69 of 308 Appendix A CRS Creditable Outreach and Flood Response Projects by CRS Community Santa Clara County Multi-Jurisdictional PPI 2021 FY 2023 (Year 2) Project Accomplishments by CRS Communities Audience 1 Message Outcome Project(s) Proposed to Support the Messages (XX denotes Community acronym, and Outreach Project #) Assignment 2 Schedule 3 Stakeholder FY 2023 (Year 2 of the 2021 PPI) Project Accomplishments INPUT HERE ONLY Topics 1-9 and supporting messages Community Events – Distribute flood preparedness materials to the community Educate our community on flood protection and preparedness measures Increase in ‘hits’ on Valley Water and cities Flood Protection Resources pages and improve Valley Water’s Flood Campaign results Residents less stress during emergencies and better prepared before a flood event (VW OP #52) Copies of Valley Water’s multilanguage floodplain mailer is made available to all Santa Clara County CRS Communities to disseminate at various events, including keeping the mailer static in lobby areas for visitors to pick-up. Valley Water attends various communities’ events/fairs throughout the county and disseminates flood readiness materials, including various FEMA flood-related publications and Valley Water flood ready materials (Topics 1– 9) Valley Water Annually, September - May All Santa Clara County CRS Communities Valley Water’s FY23 Annual Flood Awareness Campaign continued the shift from general digital and public space advertising to a series of direct mailings to the 51,120 homes and businesses in FEMA SFHA for Santa Clara County. Valley Water’s multi-language (English, Spanish, Chinese, and Vietnamese) annual FPM “Our Climate Has Changed - Be Aware, Be Prepared, Take Action” (dated 11/22) was mailed on November 28, 2022 to all parcels in the FEMA SFHA and copies were mailed to all Santa Clara County cities and county Public Works and Planning Departments in December 2022. The below table reflects the quantities requested/sent by/to the agency. Community Floodplain Mailer Postcard City of Los Altos 50 100 Town of Los Altos Hills 25 150 City of Milpitas 50 25 City of Mountain View 25 25 City of Cupertino 100 100 VW CRS Program 150 300 All other cities/county (10 ct. )25 25 The FPM is posted on our website https://online.flipbuilder.com/tkap/tmie/. Valley Water’s 2022-2023 Flood Awareness Outreach Partner Toolkit was made available for download to all partnering agencies: https://www.dropbox.com/s/p438zrw8lwi614r/Flood%20A wareness%202022-2023%20Partner%20Toolkit.pptx?dl=0 . The toolkit includes the following: ●Key flood outreach messages, ●SFHA FPM (multilingual) ●Flood awareness double-sided flier (multilingual) for digital use and print, ●Digital multilingual ads (web and social media), and ●Flood Awareness text, tips, and URLs (multilingual). 13 ATTACHMENT NO. 2 Agenda Item 7.3 Page 70 of 308 Appendix A CRS Creditable Outreach and Flood Response Projects by CRS Community Santa Clara County Multi-Jurisdictional PPI 2021 FY 2023 (Year 2) Project Accomplishments by CRS Communities Audience 1 Message Outcome Project(s) Proposed to Support the Messages (XX denotes Community acronym, and Outreach Project #) Assignment 2 Schedule 3 Stakeholder FY 2023 (Year 2 of the 2021 PPI) Project Accomplishments INPUT HERE ONLY Cupertino distributes copies of Valley Water’s Floodplain Mailer at various fairs/events and provides additional copies for the public on display at City Hall. Los Altos distributes copies of the Valley Water’s Floodplain Mailer and postcards at City Hall and Community Center buildings. Palo Alto distributes Valley Water’s multi-language floodplain mailer during fairs during Earth Day event and Palo Alto’s Open House every year. Santa Clara: Fliers and additional information are currently at city hall and public library. (CUP OP #53) Distributes flood readiness outreach materials at various events/ facilities City of Cupertino Year Round, as needed N/A Cupertino distributes copies of Valley Water’s Floodplain Mailer and other promotional items provided by Valley Water at various fairs/events and provides additional copies of the mailer for the public on display at City Hall. (GIL OP #54) Participates in two fair/events: Gilroy Garlic Festival (GF) and city’s Public Works Week Community Open House (PWWCOH) City of Gilroy End of July (GF) Typically, in May (PWWCOH) N/A Gilroy: There was no Garlic Festival (due to the shooting at this festival in July 2019, the City has postponed this event indefinitely) or PWWCOH in 2023, so no materials were distributed at those events. However, on October 4, 2022, the City hosted National Night Out where flood readiness materials were distributed. (LAH OP #55) Hosts two events - Earth Day (ED) and the Town Picnic (TP)Town of Los Altos Hills Annually, Spring (ED) and late Summer (TP) N/A Town of Los Altos Hills: No update available - non-CRS participating community (MIL OP #56) Distributes FEMA flood-related publications at various events City of Milpitas Year Round N/A Milpitas: Ongoing. Distributing flood ready kits and information on “Earth Day” which is on April 22, 2023. (MV OP #57) The city participates Mountain View Art & Wine Festival (MVA&WF) and Thursday Night Live (TNL) and distributes flood preparedness information City of Mountain View Each September (MVA&WF) Months of June/July (TNL) Valley Water Many events have changed post-COVID. Mountain View attends various events such as Earth Day, Public Works Week and distributes flood readiness fliers and handouts during these events. (PA OP #58) Staff hosts a flood readiness table at city’s annual Earth Day (ED) event and at the city Municipal Corporation Open House (MCOH). Upon request, the city also participates in other fairs and promotes flood readiness, including Creekwise mailer/brochure City of Palo Alto Each April (ED) and July (MCOH) Can vary depending on requests made to City to support fairs Palo Alto was not able to host a flood readiness table at the Earth Day Event, however, in substitute to that, the City will host a table at the July 4th event (FY24) and City Municipal Corporation Open House which will be held on July 15, 2024 (FY24). During FY23, the City provided the local library with flood readiness materials, including the emergency starter kits. 14 ATTACHMENT NO. 2 Agenda Item 7.3 Page 71 of 308 Appendix A CRS Creditable Outreach and Flood Response Projects by CRS Community Santa Clara County Multi-Jurisdictional PPI 2021 FY 2023 (Year 2) Project Accomplishments by CRS Communities Audience 1 Message Outcome Project(s) Proposed to Support the Messages (XX denotes Community acronym, and Outreach Project #) Assignment 2 Schedule 3 Stakeholder FY 2023 (Year 2 of the 2021 PPI) Project Accomplishments INPUT HERE ONLY (SJ OP #59) Staff hosts and participates in the ‘Building Permits and Home Safety Open House.’ The city’s also hosts ‘Pumpkins in the Park’ event which Valley Water staff participates in and promotes flood preparedness City of San Jose Each May and October Valley Water San Jose hosts the annual Building and Home Safety Open House. However, this year’s event was on hold due to COVID-19 pandemic. The Open House is scheduled to be back on 7/18/23. The City hosted “Pumpkins in the Park” on 10/8/22. Valley Water hosted an information booth and distributed flood preparedness information on flood safety and emergency preparedness materials, including Valley Water’s annual floodplain mailer. (SC OP #60) City hosts a flood readiness table at the Art & Wine Festival. Valley Water also sponsors a table at the festival promoting flood preparedness and distributes various flood readiness materials to the community City of Santa Clara Each September N/A Santa Clara: Flood readiness table was set-up at Arts & Wine Festival September 2022. Flood promotional packets and fliers provided by Valley Water were distributed to visitors. Topic 3: Protect people from the flood hazard Message 3A - Put your 3-day emergency kit together Message 3B - Follow evacuation orders Message 3C – Learn the best route to high ground Topic 9: Understand shallow flooding risks – don’t drive through standing water Message 9A - Understand shallow flooding risks - don’t drive through standing water FEMA’s message: “Turn Around Don't Drown®.” Less damage due to the floods; improve sandbag distribution Fewer accidents and rescues (SUN OP #61) City has permanent “Road May Flood” street signs in areas of the City prone to flooding and promotes the “Flood Zone Look Up” featured on the city’s website City of Sunnyvale Year Round N/A Sunnyvale: Ongoing. City staff still promote the use of the “Flood Zone Lookup.” Topic 4: Protect your property from the flood hazard Message 4A - Protect your property from the flood hazard Message 4B - Prepare your home Message 4C - Sandbags can offer protection against a foot or less of floodwater Message 4E - Get sandbags before a flood Topic 5: Build responsibility Message 5A - Build responsibly in floodplains Message 5B - Comply with development requirements Message 5C - Check with your local floodplain manager before you build Increase in inquiries on retrofitting measures. Decrease the number of repairs and elevations without permits. Increase number of repairs with permits Ensure people who are interested in protecting their property from flooding are getting the help they need Keep families safe (CUP OP #62) The city offers Flood Protection Assistance, Property Protection Advice. Staff provides in-person flood risk consultation at the front counter and/or site visits when requested City of Cupertino Year Round N/A Cupertino: Ongoing. The City maintains a log of FEMA-related requests. (MIL OP # 63) The city offers Flood Protection Assistance, Property Protection Advice and provides in-person flood risk consultation at the front counter City of Milpitas Year Round N/A Milpitas: Ongoing. City maintains logs of FEMA-related requests. (SC OP #64) The city offers Flood Protection Assistance, Property Protection Advice City of Santa Clara Year Round N/A Santa Clara: On-going per requests to the city Topic 6: Protect natural floodplain functions Message 6A -Keep creeks clean and flowing Message 6B - Keep debris and trash out of our streams Message 6C - Don’t pollute, dump, or drain anything in creeks Cleaner streams and fewer dumping violations Fewer debris blockages during high-flow events Drainage inspectors report fewer calls and a (VW OP #65) “Do Not Dump”/illegal dumping message is sent each year to all Santa Clara County residents in Valley Water’s CWM and FPM Valley Water Communications Each late October or November (CWM) Each November/ December (FPM) All Santa Clara County CRS Communities Valley Water’s FY23 FPM included the 'Do Not Dump' messaging. Additionally, Valley Water’s website flood ready landing page contains ‘Do not pollute, dump, or drain anything in creeks’ under the ‘Before a Flood’ section. https://www.valleywater.org/flooding-safety/flood-ready/fl ood-safety-advice Valley Water hosted Coastal Cleanup Day (CCD) on September 17, 2022 (Results: 1,056 people participated; 52.905 distance cleaned miles; 25,912.83, includes 15 ATTACHMENT NO. 2 Agenda Item 7.3 Page 72 of 308 Appendix A CRS Creditable Outreach and Flood Response Projects by CRS Community Santa Clara County Multi-Jurisdictional PPI 2021 FY 2023 (Year 2) Project Accomplishments by CRS Communities Audience 1 Message Outcome Project(s) Proposed to Support the Messages (XX denotes Community acronym, and Outreach Project #) Assignment 2 Schedule 3 Stakeholder FY 2023 (Year 2 of the 2021 PPI) Project Accomplishments INPUT HERE ONLY decrease in the amount of trash removed recyclables, weight of trash collected; 2,217.25weight of recyclables collected), and National River Cleanup Day (NRCD) on May 20, 2023 (Preliminary Results: 676 people participated; 50.54 distance cleaned miles; 28,981.02 includes recyclables, weight of trash collected; 1,500.11 weight of recyclables collected). Several of our CRS communities participated. https://cleanacreek.org/past-results-2/ Several Santa Clara communities participate in these clean-up events.. Cupertino’s “Floodplain Management” webpage has a link to Valley Water’s Floodplain Mailer. The City also includes the “Do Not Dump” messaging in The Cupertino Scene’s annual flood preparedness article. Morgan Hill includes this message in their annual Flood Report. The report is posted on the City’s “Floodplain Management” landing page. Palo Alto has Valley Water’s CWM and FPM linked on the City’s Flood Information and Winter Storm Preparedness website. (VW OP #66) “Do Not Dump” signs placed by waterways/channels Valley Water O&M Year Round N/A Valley Water’s Operations & Maintenance continues its practice of placing ‘Do Not Dump’ signs on waterways/ channels. (VW OP #67) Lists Pollution Hotline number in all Project Notices Valley Water Communications Year Round N/A Valley Water’s project notices lists the pollution hotline number. https://www.valleywater.org/project-updates/your-neighbo rhood (SCC OP #68) Storm Drain Stenciling/Medallion Program Santa Clara County Year Round All Santa Clara County CRS Communities Palo Alto installs Storm Drain Stenciling/Medallion on all public right of way catch basin and inlets. City of Santa Clara: Stenciling/Medallion installed on public catch basins/inlets. Santa Clara County: No update available - non-CRS participating community. (SUN OP #69) The city’s “Horizon” newsletter, includes Do Not Dump messaging City of Sunnyvale Annually, fall N/A Sunnyvale: The City still produces the Horizon newsletter and includes a “Do Not Dump” message. It was published in fall 2022. 16 ATTACHMENT NO. 2 Agenda Item 7.3 Page 73 of 308 Appendix A CRS Creditable Outreach and Flood Response Projects by CRS Community Santa Clara County Multi-Jurisdictional PPI 2021 FY 2023 (Year 2) Project Accomplishments by CRS Communities Audience 1 Message Outcome Project(s) Proposed to Support the Messages (XX denotes Community acronym, and Outreach Project #) Assignment 2 Schedule 3 Stakeholder FY 2023 (Year 2 of the 2021 PPI) Project Accomplishments INPUT HERE ONLY (ALL OP #70) Developments that are modifying or constructing new catch basins/storm drains/inlets are required, per the below-noted permits, to stencil the “No Dumping! Flows to Bay.” In addition, some of these cities require all bid documents for capital projects which are modifying or constructing new catch basins, and require the contractors to install the same stencil. The program is also highlighted on cities’ websites. ▪South County municipalities are subject to the statewide “Phase II” NPDES Permit ▪North County municipalities are subject to the SF Bay Municipal Regional Stormwater NPDES Permit All Add Headings (Format > Paragraph styles) and they will appear in your table of contents. Year Round N/A Valley Water mark’s each inlet with a “No Dumping! Flows to Bay” message on Valley Water properties. Cupertino requires all storm drain inlets to include a medallion with “NO DUMPING - FLOWS TO CREEK/BAY” for development projects. Gilroy requires all new storm inlets and catch basins to include a stencil or medallion with no dumping, flows to creek/waterway language for development projects. Morgan Hill requires all storm drain inlets and catch basins within the project area of development applications to be stenciled with prohibitive language (such as: “NO DUMPING – DRAINS TO CREEK”) and/or graphical icons to discourage illegal dumping. Mountain View requires all storm drain inlets to include a medallion with “NO DUMPING - FLOWS TO CREEK/BAY” for development projects. Palo Alto requires all storm drain inlets to include a medallion with “NO DUMPING-FLOWS TO CREEK/BAY” for development projects. City of Santa Clara provides and installs “No Dumping Flows to Bay” plaques near each catch basin for any new storm drain inlets constructed as part of a project per the City specifications (CUP OP #71) The city’s annual flood notice in the local newsletter, ‘The Cupertino Scene,’ contains dumping is illegal messaging and how to report City of Cupertino Annually, October -November N/A Cupertino includes the “Do Not Dump” messaging in The Cupertino Scene’s annual flood preparedness article. (CUP OP #72) Participates in clean-up events: the annual National River Clean-up Day (NRCD) and Coastal Clean-Up Day (CCD). They coordinate with Valley Water on both these clean-up efforts. The city also participates in Valley Water’s Adopt-a-Creek Program City of Cupertino Each May (NRCD) and September (CCD) Volunteers Valley Water Stream Stewardship Cupertino participated in Coastal Clean-Up Day on 9/17/22 and National River Clean-Up Day on 5/20/23. The City no longer participates in Valley Water’s Adopt-a-Creek Program. (LAH OP #73) The town participates in annual clean-up events: National River Clean-up Day (each May) and Coastal Clean-up Day (each September) and coordinates volunteers. They coordinate with Valley Water on both these clean-up efforts. The town also participates in Valley Water’s Adopt-a-Creek Program Town of Los Altos Hills Each May (NRCD) and September (CCD) Volunteers Valley Water Stream Stewardship Town of Los Altos Hills: No update available - non-CRS participating community. 17 ATTACHMENT NO. 2 Agenda Item 7.3 Page 74 of 308 Appendix A CRS Creditable Outreach and Flood Response Projects by CRS Community Santa Clara County Multi-Jurisdictional PPI 2021 FY 2023 (Year 2) Project Accomplishments by CRS Communities Audience 1 Message Outcome Project(s) Proposed to Support the Messages (XX denotes Community acronym, and Outreach Project #) Assignment 2 Schedule 3 Stakeholder FY 2023 (Year 2 of the 2021 PPI) Project Accomplishments INPUT HERE ONLY (MIL OP #74) “Flood Public Advisory” brochure contains dumping is illegal messaging and how to report City of Milpitas Each December or January N/A Milpitas: The City’s flood advisory utility bill insert has information about illegal dumping and how to report it. (MIL OP #75) Participates in annual clean-up events: National River Clean-up Day (NRCD) and Coastal Clean-Up Day (CCD). They coordinate with Valley Water on both these clean-up efforts. The city also participates in Valley Water’s Adopt-a-Creek Program City of Milpitas Each May (NRCD) and September (CCD) Volunteers Valley Water Stream Stewardship Milpitas: CCD held as an in-person event on September 17, 2022. NRCD is planned for May 20, 2023 with one cleanup location. (MH OP #76) “Flood Report” contains message on keeping debris and trash out of streams – Do Not Dump messaging City of Morgan Hill Annually, close to or during the start of the rainy season N/A Morgan Hill’s “2023 Flood Report” brochure will contain the message “It’s illegal to dump debris and trash into our creeks.” (PA OP #77) “Are You Ready for Winter Storms?” utilities insert contains the Do Not Dump and report illegal dumping messages City of Palo Alto Each fall N/A Palo Alto includes Do Not Dump and Report Illegal Messages on City’s utility insert that was sent out in October 2022. (PA OP #78) Utility bill insert includes a ‘Utility Announcement on Flood Safety Tips,’ including Protect natural floodplains - keep rain gutters and drainage channels free of debris City of Palo Alto Annually, March-April N/A Palo Alto includes Protect Natural Floodplains-keep rain gutters and creeks free of debris messages on flood safety tips sent as Utility Announcement and the flier sent as an attachment on utility bills every year. (PA OP #79) Participates in annual clean-up events: National River Clean-up Day (NRCD) and Coastal Clean-Up Day (CCD). They coordinate with Valley Water on both these clean-up efforts. Additionally, the city participates in Valley Water’s Adopt-a-Creek Program City of Palo Alto Each May (NRCD) and September (CCD) Volunteers Valley Water Stream Stewardship Palo Alto participates every year during National River Clean-up Day on Matadero and Adobe Creek. Palo Alto also participates in the multi-jurisdictional effort on creek clean-up of San Francisquito Creek. (PA OP #80) Clean-ups of trash booms located in Matadero Creek and Adobe Creek are done annually on an as-needed basis. The city also assesses its hot spots and cleans up the local drainage system on an ongoing basis and part of its operations and maintenance City of Palo Alto Annually, as needed N/A Palo Alto City staff continue clean-ups of trash booms on Matadero Creek and Adobe Creek, assess hot spots and clean ups on an ongoing basis on the entire City’s storm drain network system. (SUN OP #81) “Horizon” newsletter includes a “Know How to Be FloodSafe” article that promotes the Do Not Dump message City of Sunnyvale Each October, Fall Edition N/A Sunnyvale: The City still includes a “flood Safe” message in the fall Horizon. It was published in fall 2022. Residents and Businesses in the Special Flood Hazard Area (SFHA) -Low Lying Areas, Along Rivers and Creeks -Coastal Communities at Risk for Sea Level Rise/Tsunamis Topic 1: Know your flood hazard Message 1A - Know your flood risk Message 1B - Contact your floodplain manager to find out if your property is in a floodplain Message 1C - Check if your home or business is in a Special Flood Hazard Area Topic 2: Insure your property for your flood hazard Message 2A - Get flood insurance ahead of time Message 2B – Insure your property Message 2C – There is a 30-day waiting period for the policy to take place Topic 3: Protect people from the flood hazard Message 3A - Put your 3-day emergency kit together Message 3B - Follow evacuation orders Residents/businesses in the SFHA are aware they’re in the SFHA and prepare before floods Increase in number of flood insurance policies in the SFHAs and RLAs in the county in general Prospective buyers understand flood risks Increase number of elevation certificates on file, and structures repaired with permits; (VW OP #82) Multi-language floodplain mailer (FPM) to all residents and businesses within the SFHA in Santa Clara County (Topics 1– 9) Valley Water Each November/ December All Valley Water’s multi-language (English, Spanish, Chinese, and Vietnamese) Floodplain Mailer (FPM) 2022-2023 ‘Our Climate Has Changed - Be Aware, Be Prepared, Take Action’’ was mailed to all SC County parcels in the FEMA SFHA; 51,120 FPMs were mailed in late November 2022. Hard copies of the FPM’s (quantities noted below, as requested by the communities), along with “Our Climate Has Changed” (dated 11/2022) postcards were also mailed to each city/County in early January 2023.. Community Floodplain Mailer Postcard City of Los Altos 50 100 Town of Los Altos Hills 25 150 City of Milpitas 50 25 City of Mountain View 25 25 City of Cupertino 100 100 VW CRS Program 150 300 All other cities/county (10 ct. )25 25 18 ATTACHMENT NO. 2 Agenda Item 7.3 Page 75 of 308 Appendix A CRS Creditable Outreach and Flood Response Projects by CRS Community Santa Clara County Multi-Jurisdictional PPI 2021 FY 2023 (Year 2) Project Accomplishments by CRS Communities Audience 1 Message Outcome Project(s) Proposed to Support the Messages (XX denotes Community acronym, and Outreach Project #) Assignment 2 Schedule 3 Stakeholder FY 2023 (Year 2 of the 2021 PPI) Project Accomplishments INPUT HERE ONLY -Repetitive Loss (RL) Areas Message 3C – Learn the best route to high ground Topic 4: Protect your property from the flood hazard Message 4A - Protect your property from the flood hazard Message 4B - Prepare your home Message 4C - Sandbags can offer protection against a foot or less of floodwater Message 4E - Get sandbags before a flood Topic 5: Build responsibility Message 5A - Build responsibly in floodplains Message 5B - Comply with development requirements Message 5C - Check with your local floodplain manager before you build Topic 6: Protect natural floodplain functions Message 6A -Keep creeks clean and flowing Message 6B - Keep debris and trash out of our streams Message 6C - Don’t pollute, dump, or drain anything in creeks Topic 7: Develop a Family Emergency Plan Message 7A: Develop an emergency plan Topic 8: Download disaster Apps Message 8A - Download disaster emergency apps Topic 9: Understand shallow flooding risks – don’t drive through standing water Message 9A - Understand shallow flooding risks - don’t drive through standing water FEMA’s message: “Turn Around Don't Drown®.” decrease the number of repetitive loss increase homes Increase in the number of flood insurance policies with contents coverage Additionally, electronic copies (flipbook style) of the FMP’s were emailed to all City Managers, Public Works and Planning Directors, Floodplain Managers, CRS Coordinator's and CRS staff on December 30, 2022, for their use throughout the flood season and beyond (i.e., websites, lobby area, for distribution at events). Valley Water’s FPM is posted on our flood protection resources landing page (FloodReady); we distributed the mailer at our various events throughout the year, and we kept copies in our main office lobby area. All Santa Clara communities support and promote Valley Water’s outreach projects. The City of Los Also posted Valley Water’s FPM on our flood protection website and we kept copies in the city hall lobby. The City of Cupertino posted Valley Water’s FPM on our flood protection website and we kept copies in the City Hall lobby. (CUP OP #83) Flood notice in the local newsletter, The Cupertino Scene, which reaches residents and businesses in the SFHA (Topics 1-9) City of Cupertino Each October or November issue N/A Cupertino published the annual flood preparation article in the October 2022 issue of “The Cupertino Scene”. (LA OP #84) Letter, along with a “Are You Prepared for a Flood in Your Neighborhood?” brochure to property owners in the SFHA (Topics 1-8) City of Los Altos Annually, each fall N/A Los Altos mailed letters to all SFHA property owners in November 2022. (LAH OP #85) The town’s “Our Town” quarterly newsletter includes information on flood preparedness. The newsletter is mailed out town-wide and is also available online on the town’s website (Topics TBD during cycle visit) Town of Los Altos Hills Each fall N/A Town of Los Altos Hills: No update available - non-CRS participating community. (MIL OP #86) “Flood Public Advisory” brochure to residents and businesses within SFHA (Topics 1-6) City of Milpitas Each December or January N/A Milpitas: A utility bill insert was sent to every address in Milpitas on 11/16/22. This was sent in four languages (English, Vietnamese, Spanish and Chinese). (MH OP #87) Sends a citywide “Flood Report” brochure, including to those in the SFHA (Topics 1-9) City of Morgan Hill Annually, close to or during the start of the rainy season N/A Morgan Hill’s “2023 Flood Report” brochure is anticipated to go out late June 2023 or some time in July 2024. (MV OP #88) Sends “The View” citywide newsletter, Winter version, includes information on flood risk, flood safety, and the importance of buying flood insurance (Topics 1-9) City of Mountain View Fall newsletter edition N/A Mountain View’s publications have changed. This year the information was distributed in the ‘City Hall Connection’ newsletter. 19 ATTACHMENT NO. 2 Agenda Item 7.3 Page 76 of 308 Appendix A CRS Creditable Outreach and Flood Response Projects by CRS Community Santa Clara County Multi-Jurisdictional PPI 2021 FY 2023 (Year 2) Project Accomplishments by CRS Communities Audience 1 Message Outcome Project(s) Proposed to Support the Messages (XX denotes Community acronym, and Outreach Project #) Assignment 2 Schedule 3 Stakeholder FY 2023 (Year 2 of the 2021 PPI) Project Accomplishments INPUT HERE ONLY (MV OP #89) Mails a utility bill insert to all resident and businesses that contains information on flood risk, flood safety, and the importance of buying flood insurance (Topics 9) City of Mountain View Between July - September N/A Mountain View sent out Valley Water’s Get Flood Ready flier as a utility billing insert to every City utility customer in December 2022. (PA OP #90) Sends the “Are You Ready for Winter Storms?’ flier (aka utilities mailer) to all residents and businesses in the city, including to those in the SFHA, along with their utility bills (Topics 1-9) City of Palo Alto Each fall N/A Palo Alto sent “Are you Ready for Winter Storms?” flier as utility inserts was sent out in October 2022. (PA OP #91) Sends out utility announcement, “Anytime it can rain, it can flood. Don’t get caught off-guard” (Topics 1, 2,3, 4, 5, 6, 7, & 9 –will pursue adding other topic) City of Palo Alto Each March/April N/A Palo Alto sent flood safety tips as a utility announcement in December 2022. (SC OP #92) Mails out a citywide, including all addresses in the SFHA, newsletter for residents and businesses called “Inside Santa Clara” (Topics 1-9) City of Santa Clara Each fall N/A Santa Clara: Newsletter was sent on November 1, 2022, and available on the City’s website. (SUN OP #93) Sends two (2) mailers and one (1) “Horizon” newsletter article “Know How to Be Flood Safe” that promotes flood safety and flood preparedness messaging targeted to all residents and businesses within the SFHA (Topics 2 and 4) City of Sunnyvale Each fall around October N/A Sunnyvale: The City still sends out mailers to targeted residents and a flood safe newsletter article. The mailers were sent November 2022. (SUN OP #94) Sends mailer to all those in the SFHA (Topics 1-4, and 7)City of Sunnyvale Each October N/A Sunnyvale: The City still sends out these mailers. The mailers were sent October 2022. Topic 2: Insure your property for your flood hazard Message 2A - Get flood insurance ahead of time Message 2B – Insure your property Message 2C – There is a 30-day waiting period for the policy to take place Increase in number of flood insurance policies in the SFHAs, RLAs, and in the county in general Prospective buyers understand flood risks Increase in the number of flood insurance policies with contents coverage (SCC OP #95) Sends letters to the properties in the unincorporated section in the areas of the county’s mapped repetitive loss areas Santa Clara County Annually, each fall N/A Santa Clara County: No update available - non-CRS participating community. (CUP OP #96) Continues to send a letter to former repetitive loss properties City of Cupertino Annually, mid-year N/A Cupertino continues to send out an annual letter to former repetitive loss properties. (MH OP #97) Sends a notice to repetitive loss (RL) areas as required by FEMA City of Morgan Hill Annually, each summer N/A Morgan Hill will sent letters to properties in the City’s mapped repetitive loss areas in June 2023. (PA OP #98) Sends letters to the properties in the city’s mapped repetitive loss areas, highlighting flood safety tips City of Palo Alto Annually, typically August - September N/A Palo Alto sent letters to properties in the City’s mapped repetitive loss areas, highlighting flood safety tips in August 2022. (SJ OP #99) Sends letters to the properties in the city’s mapped repetitive loss areas City of San Jose Annually, each typically between September - December N/A San Jose sent letters to general repetitive loss property areas in April 2023. 20 ATTACHMENT NO. 2 Agenda Item 7.3 Page 77 of 308 Appendix A CRS Creditable Outreach and Flood Response Projects by CRS Community Santa Clara County Multi-Jurisdictional PPI 2021 FY 2023 (Year 2) Project Accomplishments by CRS Communities Audience 1 Message Outcome Project(s) Proposed to Support the Messages (XX denotes Community acronym, and Outreach Project #) Assignment 2 Schedule 3 Stakeholder FY 2023 (Year 2 of the 2021 PPI) Project Accomplishments INPUT HERE ONLY Messengers to Other Target Audiences (Organizations & Businesses Serving the Community) Topic 1: Know your flood hazard Message 1A - Know your flood risk Message 1B - Contact your floodplain manager to find out if your property is in a floodplain Message 1C - Check if your home or business is in a Special Flood Hazard Area Topic 2: Insure your property for your flood hazard Message 2A - Get flood insurance ahead of time Message 2B – Insure your property Message 2C – There is a 30-day waiting period for the policy to take place Topic 3: Protect people from the flood hazard Message 3A - Put your 3-day emergency kit together Message 3B - Follow evacuation orders Message 3C – Learn the best route to high ground Topic 4: Protect your property from the flood hazard Message 4A - Protect your property from the flood hazard Message 4B - Prepare your home Message 4C - Sandbags can offer protection against a foot or less of floodwater Message 4E - Get sandbags before a flood Topic 5: Build responsibility Message 5A - Build responsibly in floodplains Message 5B - Comply with development requirements Message 5C - Check with your local floodplain manager before you build Topic 6: Protect natural floodplain functions Message 6A -Keep creeks clean and flowing Message 6B - Keep debris and trash out of our streams Message 6C - Don’t pollute, dump, or drain anything in creeks Topic 7: Develop a Family Emergency Plan Message 7A: Develop an emergency plan Topic 8: Download disaster Apps Message 8A - Download disaster emergency apps Topic 9: Understand shallow flooding risks – don’t drive through standing water Message 9A - Understand shallow flooding risks - don’t drive through standing water FEMA’s message: “Turn Around Don't Drown®.” Educate our community on flood protection and preparedness measures by working and coordinating with groups who serve as messengers, to people who are at risk of flooding, as they provide their respective business service (VW OP #100) Administers a “Let’s Talk Water” Speakers Bureau Program that customizes presentations to update groups on specific issues, provide updates on Valley Water projects, including flood protection projects and to educate residents on existing flood risks as well as provide resources and tips to be flood ready. https://www.valleywater.org/learning-center/lets-talk-water-speakers-bureau Valley Water Communications Unit On a project-specific basis or as requested Could vary from year-to-year Kiwanis Rotary Clubs Homeowners and Neighborhood Associations Forum Groups Association of Realtors Valley Water’s ‘Let’s Talk Water’ Speakers Bureau Program is active and available to the community. General presentations discuss Valley Water’s flood protection, including flood preparedness and awareness, and our creeks and ecosystems. Customized presentations for groups on specific issues are also available. 1. October 13, 2022 – City of San Jose Board of Retirees meeting 2. October 20, 2022 – Palo Alto Kiwanis meeting 3. October 22, 2022 – Greentown Los Altos Library event 4. November 3, 2022 – Harbor Industrial Association luncheon 5. December 6, 2022 – RE/MAX Realtor informational meeting 6. January 4, 2023 – Mount Pleasant Neighborhood Assoc meeting 7. January 18, 2023 – Cupertino Library presentation hosted by Cupertino Library Foundation 8. February 9, 2023 – Sons in Retirement: Branch 54 monthly meeting 9. February 13, 2023 – Rotary Club of Evergreen Valley meeting 10. February 14, 2023 – Santa Clara County: Sustainability Working Group presentation 11. March 1, 2023 – Seven Trees Neighborhood Association meeting 12. March 6, 2023 – Leadership Morgan Hill presentation 13. March 9, 2023 – Presentation during Mountain View Senior Center afternoon workshop 14. March 23, 2023 – Mission San Jose Rotary Zoom meeting 15. April 6, 2023 – Water 101 Academy presentation 16. April 11, 2023 – Presentation during Terraces Los Gatos monthly speaker series 17. May 4, 2023 – West San Jose Kiwanis meeting 18. May 19, 2023 – Rotary Club of San Jose Silicon Valley (VW OP #101) Participates in booth duty support at various events and fairs throughout the county, including Valley Water Capital project meetings or other events, as requested by various organizations Valley Water Office of Government Relations Annually. During the flood season (starting in September – May) All Santa Clara County CRS Communities Valley Water staff made a concerted effort to actively participate in community events, including community festivals and emergency preparedness affairs, particularly in communities and neighborhoods in or close to flood zones. In FY23 (from September 2022 – May 2023), both Valley Water and City staff hosted 18 booths and distributed flood preparedness information on flood safety and emergency 21 ATTACHMENT NO. 2 Agenda Item 7.3 Page 78 of 308 Appendix A CRS Creditable Outreach and Flood Response Projects by CRS Community Santa Clara County Multi-Jurisdictional PPI 2021 FY 2023 (Year 2) Project Accomplishments by CRS Communities Audience 1 Message Outcome Project(s) Proposed to Support the Messages (XX denotes Community acronym, and Outreach Project #) Assignment 2 Schedule 3 Stakeholder FY 2023 (Year 2 of the 2021 PPI) Project Accomplishments INPUT HERE ONLY preparedness materials, including Valley Water’s annual floodplain mailer. 1. 2022 Santos Family 16th Annual Car Show-9/3/22 Alviso, CA 2. Emergency Preparedness Resource Fair-9/10/22 San Martin, CA 3. Mountain View Art & Wine Festival-9/11/22 4. Assembly Member Ash Kalra’s Veggie Fest-9/17/22 San Jose, CA 5. Rotary Club Fall Festival-9/24/22 Cupertino, CA 6. Friends of Stevens Creek Trail Trailblazer Race-9/25/22 Mountain View, CA 7. Fall Festival at Martial Cottle Park-10/1/22 San Jose, CA 8. Santa Clara Parade of Champions-10/1/22 9. Pumpkins in the Park-10/8/22 San Jose, CA 10. Bay Area Diwali Festival of Lights-10/8/22 Cupertino, CA 11. Supervisor Lee’s Day on the Bay-10/8/22 Alviso, CA 12. Santa Visits Alviso-12/10/22 13. AAUW Wildflower Run-3/26/23 Morgan Hill, CA 14. VMC Foundation Women’s Leadership & Policy Summit-4/29/23 Saratoga, CA 15. Tech Interactive Tech Challenge-4/30/23 San Jose, CA 16. Berryessa Art Festival-5/13/23 17. San Jose Giants-5/13/23 18. Campbell Boogie Music Festival, 5/20/23-5/21/23 Morgan Hill hosted ‘National Night Out’ on August 2, 2022. Flood preparedness information (Valley Water floodplain mailer, red ‘Get Flood Ready’ which includes an emergency supply list tote bags, etc.) were distributed. (VW OP #102) Partner with local Second Harvest Food Bank with distributing FEMA and Valley Water flood preparedness materials, including promotional item(s) as available Valley Water CRS Program In October (during CFPW) Second Harvest Food Bank of Silicon Valley Valley Water partnered with the Silicon Valley Bike Coalition at the Ride Out the Drought event held on October 15, 2022; the Salvation Army on October 22, 2022; Santa Visits Alviso Foundation on December 7, 2023; Sacred Heart Community Services on February 8, 2023, and Ms. Gail Osmer, homeless advocate, on March 15, 2023 by providing and/or distributing FEMA, US Army Corps of Engineers, and Valley Water multilingual flood preparedness educational materials and emergency preparedness starter kits which supports Valley Water’s ‘Get Flood Ready’ campaign. Additionally, presentations on flood preparedness were made at the City of Cupertino Public Safety and Community Emergency Response Team (CERT) held on October 26, 2022, and at the City of San Jose Neighborhood CERT event 22 ATTACHMENT NO. 2 Agenda Item 7.3 Page 79 of 308 Appendix A CRS Creditable Outreach and Flood Response Projects by CRS Community Santa Clara County Multi-Jurisdictional PPI 2021 FY 2023 (Year 2) Project Accomplishments by CRS Communities Audience 1 Message Outcome Project(s) Proposed to Support the Messages (XX denotes Community acronym, and Outreach Project #) Assignment 2 Schedule 3 Stakeholder FY 2023 (Year 2 of the 2021 PPI) Project Accomplishments INPUT HERE ONLY held on November 15, 2022. Flood resources were also shared at these events. (ALL OP #103) Other New Initiatives (as noted in the PPI document) 1. Continue and expand the standardized flood message prepared for each community to include flood messages in utility bills each year, including PG&E. 2. Expand on partnerships with local chambers of commerce to disseminate and share flood preparedness information. 3. Expand on outreach to the Asian and Latino communities who live in flood prone areas. 4. Expand on outreach to “hot spot” flood prone areas by hosting on-site or virtual events. 5. Expand on reaching local homeowners associations (HOA)s and apartment associations (i.e. Executive Council of Homeowners [ECHO]) 6.Expand on reaching residents in marginal and low-income communities through partnering with organizations that reach these communities.(i.e. Second Harvest Food Bank and others) 7. Communities could pursue FEMA Matching Funds Grants for severe Repetitive Loss Areas. 8. Review and expand other public information activities, such as Flood Protection Assistance (Activity 360) and Flood Insurance Promotion (Activity 370). 9. Develop a region-wide Flood Response Preparations (FRP)messaging plan. All TBD TBD The 2021 PPI Committee identified three efforts needed from each CRS community per the 2021 PPI in order to prepare and finalize subsequent annual evaluation reports. One of those efforts is that the PPI Committee must review and consider the ‘Other New Initiatives’ identified in the 2021 PPI (page 66)for advancing flood risk reduction efforts. The Santa Clara County CRS Group/PPI Committee, included the ‘Other New Initiatives’ topic for discussion at both the March 21, 2023 and May 16, 2023 meetings.See Section V. SC County CRS Users Group/PPIM Committee Meetings - Monitoring and Evaluating the 2021 PPI in the FY23 Annual Evaluation Report for details regarding the review/discussion of the nine other new initiatives. In FY 23, the following ‘Other New Initiatives’ were accomplished. The below-noted numbers correspond with the initiatives listed as (ALL OP #103) on left side of this column: 1. Valley Water offered assistance with developing utility bill inserts to all communities. The insert tied into Valley Water’s FY23 Flood Awareness Campaign theme, “Our Climate Has Changed.” The utility bill insert/mailer/flier were co-branded with 3 communities. 3. Targeted mailers (FPM and trifolds) addressed to all those in the FEMA SFHA were mailed out (see page 7 of the Annual Evaluation Report)and were multi-language which included Spanish, Vietnamese, and Chinese. 4. Valley Water’s ‘Let's Talk Water: Speakers Bureau Program offers presentations on the history of Valley Water and how we operate and includes information on flood preparedness. Presentations can be customized for groups, as requested. Several HOA’s were given presentations that included flood preparedness information (see page 15 of the Annual Evaluation Report). Discussion at the March 21, 2023 CRS Users Group/PPI Committee meeting, Valley Water pointed out that the ArcGIS tool has several layers, including Santa Clara County Low Income Census Tracts (Poverty Zones) and Valley Water Flood Hot Spots. If any community is 23 ATTACHMENT NO. 2 Agenda Item 7.3 Page 80 of 308 Appendix A CRS Creditable Outreach and Flood Response Projects by CRS Community Santa Clara County Multi-Jurisdictional PPI 2021 FY 2023 (Year 2) Project Accomplishments by CRS Communities Audience 1 Message Outcome Project(s) Proposed to Support the Messages (XX denotes Community acronym, and Outreach Project #) Assignment 2 Schedule 3 Stakeholder FY 2023 (Year 2 of the 2021 PPI) Project Accomplishments INPUT HERE ONLY interested in accessing this information, reach out to Valley Water. We asked the group if there was any overlap of Valley Water’s hot spots versus their jurisdiction’s hot spots? 6. Valley Water staff actively participated in community events, including community festivals and emergency preparedness affairs, particularly in communities and neighborhoods in or near flood zones. In FY23 (from September 2022 – May 2023), both Valley Water and the communities staff hosted 18 booths and distributed flood preparedness information on flood safety and emergency preparedness materials, including Valley Water’s annual FPM (see page 15 of the Annual Evaluation Report). Other Community Engagement Efforts Valley Water partnered with the Silicon Valley Bike Coalition at the Ride Out the Drought event held on October 15, 2022; the Salvation Army on October 22, 2022; Santa Visits Alviso Foundation on December 7, 2023; Sacred Heart Community Services on February 8, 2023, and Ms. Gail Osmer, homeless advocate, on March 15, 2023 by providing and/or distributing FEMA, US Army Corps of Engineers, and Valley Water multilingual flood preparedness educational materials, flood insurance promotion, AlertSCC, American Red Cross All-Hazard APP, and emergency preparedness starter kits which supports Valley Water’s ‘Get Flood Ready’ campaign. Additionally, presentations on flood preparedness were made at the City of Cupertino Public Safety and Community Emergency Response Team (CERT) held on October 26, 2022, and at the City of San Jose Neighborhood CERT event held on November 15, 2022. Flood resources were also shared at these events. 7. Discussion at the March 21, 2023 CRS Users Group/PPI Committee meeting regarding Valley Water and Santa Clara County looking into Valley Water possibly developing a separate flood-centric FMP rather than including it as part of the update of the County’s 2017 MJHMP. The proposed flood-centric FMP could have a direct tie-in to this initiative; however, it may not include the RLAA element as part of the FMP. 24 ATTACHMENT NO. 2 Agenda Item 7.3 Page 81 of 308 Appendix A CRS Creditable Outreach and Flood Response Projects by CRS Community Santa Clara County Multi-Jurisdictional PPI 2021 FY 2023 (Year 2) Project Accomplishments by CRS Communities Audience 1 Message Outcome Project(s) Proposed to Support the Messages (XX denotes Community acronym, and Outreach Project #) Assignment 2 Schedule 3 Stakeholder FY 2023 (Year 2 of the 2021 PPI) Project Accomplishments INPUT HERE ONLY Valley Water has shared some grant opportunities Climate Change Resiliency, CAL Office of Emergency Services (OES) with our Grant’s Team. It was also mentioned that under Valley Water’s Safe Clean Water, we have some community grants available to cities/county through our Grants Program. 8. Discussion at the March 21, 2023 CRS Users Group/PPI Committee meeting it was discussed that this initiative ties in with the ongoing CRS regionalization efforts. We will see what recommendations come out of the draft Feasibility Study. 9. At the March 21, 2023 CRS Users Group/PPI Committee meeting, Valley Water demonstrated an electronic copy of the City of Santa Clara’s FRP. As the PPI Committee has discussed in past meetings, we are still considering using the City of Santa Clara’s FMP as a model for developing a countywide FRP that can be credited uniformly. ISO indicated this approach would likely be credited regionally. (CUP OP #104) The city provides a Winter Preparedness notification informing contractors that during the winter season, they need to winterize their project(s) site as certain soil disturbance activities are not allowed during the rainy season City of Cupertino On a project-specific basis Various contractors Cupertino continues to prepare and mail the rainy season letters every year to applicable projects. These letters were mailed in late August 2022. (MIL OP#105) On a project-specific basis, the city provides contractors a Winter Preparedness notification that informs them that during the winter season, they need to winterize their project(s) site. Certain soil disturbance activities are not allowed during the rainy season City of Milpitas On a project-specific basis Various contractors Milpitas: On-going. The City of Milpitas will be sending out winterization notices to larger development projects this winter. Topic 2: Insure your property for your flood hazard Message 2A - Get flood insurance ahead of time Message 2B – Insure your property Message 2C – There is a 30-day waiting period for the policy to take place Increase in number of flood insurance policies in the SFHAs and in the county in general Prospective buyers understand flood risks These projects are credited under Activity 340 (DFH and REB) – Additional credit is provided if the PPI states that real estate agents should (or have agreed to) advise house hunters about the flood hazard and that real estate (MH OP #106) The city mails out a newsletter, “Ask Before You Buy: Know Your Flood Risk!” to local real estate agents which are provided to homebuyers to help determine the flood risk of the property being purchased (listed in Appendix B) City of Morgan Hill During or prior to the rainy season Real Estate Agencies/Agent Morgan Hill will be sending the brochure to real estate agents in June 2023. (PA OP #107) Sends out letters to real estate agencies informing them of their responsibility to identify flood hazard areas and to take advantage of the Flood Zone Lookup on the city’s website City of Palo Alto Annually, beginning of flood season (September/ October) Real Estate Agencies/Agent Palo Alto sent letters to real estate agencies informing of their responsibility to identify flood hazard areas in August 2022. (SJ OP #108) Sends out letters to real estate and insurance agencies and lenders, informing them of their responsibility to identify flood hazard areas and to take advantage of the Flood Zone Lookup on the city’s website on the “Flood Hazard Zones webpage and advises to contact the city for map reading services and elevation certificates on file City of San Jose At the beginning of the flood season (September – December) Real Estate Agencies/Agent San Jose emailed letters to real estate, insurance agencies and lenders in March 2023. 25 ATTACHMENT NO. 2 Agenda Item 7.3 Page 82 of 308 Appendix A CRS Creditable Outreach and Flood Response Projects by CRS Community Santa Clara County Multi-Jurisdictional PPI 2021 FY 2023 (Year 2) Project Accomplishments by CRS Communities Audience 1 Message Outcome Project(s) Proposed to Support the Messages (XX denotes Community acronym, and Outreach Project #) Assignment 2 Schedule 3 Stakeholder FY 2023 (Year 2 of the 2021 PPI) Project Accomplishments INPUT HERE ONLY agents give house hunters a REB brochure (SUN OP #109) Sends mailer/postcard targeted to real estate agents informing them of the client’s responsibility for identification and purchase of flood insurance and the availability of the automatic 15% discount City of Sunnyvale Each October Real Estate Agencies/Agents Sunnyvale: The City sent the mailers to real estate agents October 2022. 26 ATTACHMENT NO. 2 Agenda Item 7.3 Page 83 of 308 Agenda Santa Clara County CRS Users Group & Program for Public Information (PPI) Committee Meeting March 21, 2023 | 9:30 – 11:30am Zoom Meeting https://valleywater.zoom.us/j/81783191992?pwd=Q1VkRWxlRnc4WCtGS3NIbGR3SkxEUT09 Meeting ID: 817 8319 1992 Passcode: 273986 +1 669 900 9128 US (San Jose) Purpose: PPI Stakeholder Committee Annual Evaluation Meeting per Activity 330, Outreach Project, Element 332.c. Program for Public Information, Step 7 requirement (page 2) Outcome: Complete development of the 2021 Multi-Jurisdictional Program for Public Information (PPI) Annual Report for FY23 (Year 2: July 2022 to June 2023) Section Meeting Topic Presenter Time 1. Introductions Amy Fonseca 10 min 2. Review of the meeting goals and agenda Amy Fonseca 2 min 3. Annual review of CRS Communities Roster Amy Fonseca 2 min 4. Brief status update on the CRS Regionalization in Santa Clara County Feasibility Study •Floodplain Management Plan (FMP) vs Update to the County’s 2017Multi-Jurisdictional Hazardous Mitigation Plan (MJHMP) Amy Fonseca 5 min 5. Review 2021 PPI ‘Other New Initiatives’ Amy Fonseca 20 min 6. 2021 Multi-Jurisdictional Program for Public Information (PPI) Annual Evaluation Report Complete development of the Annual Evaluation Report for FY23 (Year 2: July 2022 to June 2023) •Use Activity 330 Outreach Project sheets located here https://fta.valleywater.org/fl/1a2Jh3wyoO to update Appendix A from 2021 SC County Multi-Jurisdictional PPI •Update FY23 Project Accomplishments column for your community https://docs.google.com/document/d/14MiExVqFA0_Oq4ROnxx_T7RHReV- _5p8/edit?usp=sharing&ouid=104583139517453360848&rtpof=true&sd=true •Communities’ updates due by next CRS Users Group Meeting or sooner Amy Fonseca 45 min 7. Activity 350 – Flood Protection Information The community must: •Monthly, check the website’s links at least monthly, and fix those that areno longer accurate •Annual review the community must review the content to ensure that it isstill current and pertinent Amy Fonseca 2 min 8. Next meeting – Joint CRS Users Group/Program for Public Information (PPI) Committee meeting •Complete the development of the 2021 PPI Annual Report Year 2(FY 2023) 2 min 9. Adjourn ATTACHMENT NO. 3 Agenda Item 7.3 Page 84 of 308 For questions, please contact Amy Fonseca at (408) 630-3005 or afonseca@valleywater.org Excerpt from 2017 CRS Coordinator’s Manual: “Step 7: Implement, monitor, and evaluate the program. The Program for Public Information committee meets at least annually to monitor the implementation of the outreach projects. The committee assesses whether the desired outcomes were achieved and what, if anything, should be changed. This work is described in an evaluation report that is prepared each year, sent to the governing body, and included in the annual recertification. The community must update its Program for Public Information at least every five years. This can be a new document or an addendum to the existing document that updates the needs assessment and all sections that should be changed based on evaluations of the projects. The Program for Public Information update will be reviewed for CRS credit according to the Coordinator’s Manual currently in effect, not the version used when the community originally requested this credit. The update can qualify as the annual evaluation report for the year it was prepared. The updated Program for Public Information must be adopted following the same process as adoption of the original document.” ATTACHMENT NO. 3 Agenda Item 7.3 Page 85 of 308 Santa Clara County CRS Users Group / PPI Committee Meeting Attendance Sheet March 21, 2023 | 9:30 - 11:30am | Zoom Name Agency Robb Lampa California Department of Water Resources Jenn Chu City of Cupertino Susana Ramirez City of Gilroy Erin McDannold City of Los Altos Steve Golden City of Los Altos Thanh Nguyen City of Los Altos Brian Petrovic City of Milpitas Elizabeth Koo City of Milpitas Charlie Ha City of Morgan Hill Maria Angeles City of Morgan Hill Renee Gunn City of Mountain View Rajeev Hada City of Palo Alto Arlene Lew City of San Jose Brandon Coco City of Santa Clara Christian Tran City of Santa Clara David Dorcich City of Saratoga Lea Velasco City of Sunnyvale Suzanne Park City of Sunnyvale Tamara Davis City of Sunnyvale Darrell Wong County of Santa Clara Michael Alvarez County of Santa Clara Los Gatos PPW (Public Works) Town of Los Gatos Nicolle Burnham Town of Los Gatos Amy Fonseca Valley Water Don Rocha Valley Water Merna Leal Valley Water Paola Reyes (Paola Giles) Valley Water Quorum Met. All CRS Communities in attendance. Missing Cities: City of Campbell, City of Monte Sereno, and Town of Los Altos Hills ATTACHMENT NO. 4 Agenda Item 7.3 Page 86 of 308 Agenda Santa Clara County CRS Users Group & Program for Public Information (PPI) Committee Meeting May 16, 2023 | 9:00am – 11:00 a.m. Join Zoom Meeting https://valleywater.zoom.us/j/84766026839?pwd=ekFMSEpXTTQzNlZuYnh4ZU00NnM5UT09 Meeting ID: 847 6602 6839 | Passcode: 185970 | +1 669 900 9128 US (San Jose) Purpose: PPI Stakeholder Committee Annual Evaluation Meeting to monitor the Implementation of the 2021 Santa Clara County Multi-Jurisdictional Program for Public Information per Activity 330, Outreach Project, Element 332.c. Program for Public Information (PPI), Step 7 requirement Outcome: 2021 PPI Annual Evaluation Report, FY23 (Year 2 of 5) Section Meeting Topic Presenter Time 1. Introductions Amy Fonseca 10 min 2. Review of the meeting goals and agenda Amy Fonseca 5 min 3. FY22-23 Flood Awareness Campaign Results approach: targeted outreach, including to renters, items to all addresses in the FEMA SFHA FY23-24 Flood Awareness Campaign Paola Giles & Probolsky Research 20 min 4. Status of Feasibility Study for Regionalizing CRS in Santa Clara County Status of flood-centric Floodplain Management Plan (FMP) in lieu of Santa Clara County Multi-Jurisdictional Local Hazard Mitigation Plan Amy Fonseca 10 min 5. CRS 2023 Cycle Group (Mountain View, Palo Alto, Santa Clara, Sunnyvale) Updates Amy Fonseca 5 min 10 min 6. California Flood Preparedness Week (October 2023) •Statewide Agency Coordination Calls leading up to CFPW (kicks off mid-May to early June 2023) •Annual Valley Water Board Resolution •Flood event kits for all cities/county •Lobby display example (use you Flood Event Kits: vertical banner, table cover, materials) Amy Fonseca 5 min 7. Complete development of the 2021 Multi-Jurisdictional Program for Public Information (PPI) Annual Report, FY 23 (Year 2: July 2022 to June 2023) DEADLINE 5/31/23 (Wednesday) •Use Activity 330 Outreach Project sheets located herehttps://fta.valleywater.org/fl/oLY0MMAJw3 to update Appendix A from 2021SC County Multi-Jurisdictional PPI •Update FY23 Project Accomplishments column for your community https://docs.google.com/document/d/14MiExVqFA0_Oq4ROnxx_T7RHReV- _5p8/edit?usp=sharing&ouid=104583139517453360848&rtpof=true&sd=true REPORT DUE 8/1/23: Due during 5-year cycle visit or as part of annual re-cert. Amy Fonseca 20 min 8. Other items •ISO Training - TBD Amy Fonseca 5 min 9. Adjourn For questions, please contact Amy Fonseca at (408) 630-3005 (office) or (408) 691-8889 (cell) or afonseca@valleywater.org ATTACHMENT NO. 5 Agenda Item 7.3 Page 87 of 308 Santa Clara County CRS Users Group / PPI Committee Meeting Attendance Sheet May 16, 2023 | 9:00 - 11:00am | Zoom Name Agency Robb Lampa California Department of Water Resources Jenn Chu City of Cupertino Susana Ramirez City of Gilroy Steve Golden City of Los Altos Brian Petrovic City of Milpitas Maria Angeles City of Morgan Hill Renee Gunn City of Mountain View Lauren Cody City of Mountain View Rajeev Hada City of Palo Alto Vicki Thai City of Palo Alto Vivian Tom City of San Jose Brandon Coco City of Santa Clara Christian Tran City of Santa Clara Suzanne Park City of Sunnyvale Jennifer Ng City of Sunnyvale Adam Probolsky Probolsky Research Katie Thompson Probolsky Research Amy Fonseca Valley Water Sherilyn Tran Valley Water Clarissa Sangalang Valley Water Paola Reyes (Paola Giles) Valley Water Quorum Met. All CRS Communities in attendance. Missing Cities: City of Campbell, City of Monte Sereno, City of Los Gatos, City of Saratoga, Santa Clara County, and Town of Los Altos Hills ATTACHMENT NO. 6 Agenda Item 7.3 Page 88 of 308 Page 1 of 3 City of Gilroy STAFF REPORT Agenda Item Title:Authorization to Approve Application to Receive Grant Funds from the California Youth Community Access Grant Program Meeting Date:August 21, 2023 From:Jimmy Forbis, City Administrator Department:Recreation Submitted By:Adam Henig, Recreation Manager Prepared By:Adam Henig, Recreation Manager STRATEGIC PLAN GOALS Ensure Neighborhood Equity from City Services RECOMMENDATION Motion to authorize the application to receive grant funds from the California Youth Community Access Grant Program. EXECUTIVE SUMMARY The City of Gilroy applied to receive funds for The Youth Community Access Grant Program, a state-sponsored initiative that awards funding for youth to access natural or cultural resources with a focus on low-income and disadvantaged communities. The City applied for the grant and has advanced to the third and final round. Per the grant requirements, the City Council is requested to authorize the application in order for the City to receive funding if awarded. BACKGROUND The City has applied to receive funding from the Youth Community Access Grant Program, a state-sponsored initiative funded from Proposition 64 (“Control, Regulate and Tax Adult Use of Marijuana Act”), which was passed by California voters in 2016. A portion of the funding was appropriated to the California Natural Resources Agency, which is sponsoring a competitive grant program to support youth access to natural or Agenda Item 7.4 Page 89 of 308 Authorization to Approve Application to Receive Grant Funds from the California Youth Community Access Grant Program City of Gilroy City Council Page 2 of 3 August 21, 2023 cultural resources with a focus on serving low-income and disadvantaged communities. These programs are designed to educate and facilitate recreational opportunities for young people who have limited access to natural outdoor spaces. The project that Gilroy is proposing is a two-year program that will offer 80 Gilroy youth the opportunity to attend free nature field trips while learning about the importance of conservation, culture and developing survival skills. The program will encourage youth from economically disadvantaged neighborhoods to explore beautiful, natural destinations in the Santa Clara County region and beyond. Each year of the program will include three-day-long trips (each site will be different) and one multi-day overnight nature trip. Youth will learn about conservation and other natural and cultural resource- related concepts in a classroom setting prior to each trip. Each classroom activity will be between 1 and 3 hours. The classroom activities and nature area trips will be led by City Recreation staff and a contracted naturalist from a local nonprofit educational organization who has experience working with underprivileged youth and teens. Classroom sessions will include team-building games and lessons about the cultural history and impacts of climate change on the nature sites that will be visited. Each year’s program will have two cohorts – 15 to 20 middle school and 15 to 20 high school students. Destinations may include state and national parks within California such as Mt. Madonna (of Santa Clara County), Henry Coe State Park, Point Lobos State Reserve, and/or Yosemite National Park. ANALYSIS If awarded, this grant program will be aimed at improving access to natural destinations for youth and teens from disadvantaged backgrounds. Many students in Gilroy have yet to have the opportunity to experience and explore the outdoors beyond city limits. The City is planning to focus on recruiting youth with existing juvenile arrest records or truancy concerns based on reports provided by the County and other local nonprofit organizations that serve students under the age of 18. By providing free nature access programs for disadvantaged youth, the program has the ability to improve outcomes for students who are at risk of falling behind in school and being exposed to the criminal justice system. Collectively, these trips provide a sense of purpose, an opportunity to for youth to lead one another and cultivate a desire to think beyond their immediate surroundings—for example, how their day-to-day lives impact the planet. ALTERNATIVES The City Council can decide not to approve the application, which would prevent the City from moving forward in the grant program. Staff does not recommend this option. Agenda Item 7.4 Page 90 of 308 Authorization to Approve Application to Receive Grant Funds from the California Youth Community Access Grant Program City of Gilroy City Council Page 3 of 3 August 21, 2023 FISCAL IMPACT/FUNDING SOURCE If awarded, the City is requesting $284,227 to cover the costs of the two-year program, which includes staff, a contract provider, transportation, and supplies. PUBLIC OUTREACH Not applicable. NEXT STEPS The City will submit the remaining grant documents. The State will inform applicants of its status in October 2023. Attachments: 1. Draft Resolution 2. Grant Application Agenda Item 7.4 Page 91 of 308 RESOLUTION 2023-XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY APPROVING THE APPLICATION FOR GRANT FUNDS FOR THE YOUTH COMMUNITY ACCESS GRANT PROGRAM WHEREAS, the Legislature and Governor of the State of California have provided funds for the program shown above; and WHEREAS, the California Natural Resources Agency has been delegated the responsibility for the administration of this grant program, establishing necessary procedures; and WHEREAS, said procedures established by the California Natural Resources Agency require a resolution certifying the approval of application(s) by the Applicant’s governing board before submission of said application(s) to the State; and WHEREAS, the Applicant, if selected, will enter into an agreement with the State of California to carry out the project. NOW, THEREFORE, BE IT RESOLVED THAT THE CITY OF GILROY CITY COUNCIL: 1. Approves the filing of an application for the Beyond Gilroy: Nature, Exploration, and Empowerment; and 2. Certifies that Applicant understands the assurances and certification in the application package; and 3. Certifies that Applicant or title holder will have enough funds to operate and maintain the project consistent with the grant guideline requirements or will secure the resources to do so; and 4. Certifies that it will comply with all provisions of Section 1771.5 of the California Labor Code; and 5. If applicable, certifies that the project will comply with any laws and regulations including, but not limited to, the California Environmental Quality Act (CEQA), legal requirements for building codes, health and safety codes, and disabled access laws, and that prior to commencement of construction all applicable permits will have been obtained; and 6. Appoints the City Administrator, or designee, as agent to conduct all negotiations, execute and submit all documents including, but not limited to, applications, agreements, payment requests and so on, which may be necessary for the completion of the aforementioned project(s). Agenda Item 7.4 Page 92 of 308 Resolution No. 2023-XX Youth Community Access Grant Program City Council Regular Meeting | August 21, 2023 Page 2 of 2 9 2 4 PASSED AND ADOPTED by the City Council of the City of Gilroy at a regular meeting duly held on the 21st day of August 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 Agenda Item 7.4 Page 93 of 308 7/29/22, 4:24 PM SOAR https://soar.resources.ca.gov/Proposal_Mgmt/PrintApplication.aspx 1/9 Print Application RFP Title:Youth Community Access Grant Program 2022 Project Title:Beyond Gilroy: Nature, Exploration, and Empowerment Estimated Date of Completion:05/31/2026 Funds Requested($):291,006.00 Other Sources of Funds($):0.00 Total Budget($):291,006.00 Applicant Organization:City of Gilroy Applicant Address:7351 Rosanna Street , Gilroy , CA - 95020 Federal Tax ID:946000340 County:Santa Clara City/Town:Gilroy Project Address:7351 Rosanna St Senate District 17 Assembly District 30 US Congressional District 19,20, Project Description: A three year nature exploration program for 120 youth that includes regional field trips and local classroom based activities. Latitude: 37.004610000 Longitude: -121.572440000 Cordinates Represent: Gilroy City Hall Coordinates Determined Using: Google Maps Project Director (Applicant's Representative Authorized in Resolution) (Signature required at bottom of this page) Name:Jimmy - Forbis Title:Project Director: Authorized Representative Phone:408-846-0202 Email:Jimmy.Forbis@ci.gilroy.ca.us Project Manager - Person with day to day responsibility for project (if different from authorized representative) Name:Adam - Henig Title:Project Manager: Day to day contact Phone:408-846-0460 Email:Adam.Henig@ci.gilroy.ca.us I certify that the information contained in this project application, including required attachments, is complete and accurate Signed:____________________________________________________________ Applicant's Authorized Representative as shown in Resolution Date:_________________ Print Name:____________________________________________________________Title:_________________ Application Overview RFP Title:Youth Community Access Grant Program 2022 Submitting Organization: Ilya Malinsky Submitting Organization Division: Project Title:Beyond Gilroy: Nature, Exploration, and Empowerment Agenda Item 7.4 Page 94 of 308 7/29/22, 4:24 PM SOAR https://soar.resources.ca.gov/Proposal_Mgmt/PrintApplication.aspx 2/9 Submitter Name: Submitter Phone: Submitter Fax: Submitter Email: Name: Division: Address: Federal Tax ID: Applicant Information City of Gilroy 7351 Rosanna Street Gilroy, CA , 95020 946000340 Project Description:A three year nature exploration program for 120 youth that includes regional field trips and local classroom based activities. Water System ID: District Office: APPLICANT DETAILS Applicant Organization: City of Gilroy Applicant Organization Division: Applicant Address:7351 Rosanna Street , Gilroy , CA - 95020 PROJECT LOCATION Latitude :37.004610000 Longitude: -121.572440000 Watershed:Uvas-Llagas County:Santa Clara Estimated Date of Completion: 05/31/2026 Project Address (or nearest cross street): 7351 Rosanna St Nearest City/Town:Gilroy Cordinates Represent: Gilroy City Hall Coordinates Determined Using: Google Maps PROJECT BUDGET Funds Requested($):291,006.00 Other Sources of Funds($): 0.00 Total Budget($):291,006.00 Funding Program Applied Proposition 64 Yes Project Management Role Title First Name Last Name Phone Fax Email Project Director: Authorized Representative City Manager Jimmy Forbis 408-846- 0202 Jimmy.Forbis@ci.gilroy.ca.us Project Manager: Day to day contact Recreation Manager Adam Henig 408-846- 0460 Adam.Henig@ci.gilroy.ca.us Person Submitting Information Ilya Malinsky 213-375-8162 ilya@californiaconsulting.org Legislative Information Primary Additional District(s) Senate District 17 Assembly District 30 Agenda Item 7.4 Page 95 of 308 7/29/22, 4:24 PM SOAR https://soar.resources.ca.gov/Proposal_Mgmt/PrintApplication.aspx 3/9 US Congressional District 19,20, Contacts Name Phone Email City of Gilroy Adam Henig 408-846-0460 Adam.Henig@ci.gilroy.ca.us Cooperating Entities Role Name Phone Email There are no COOPERATING ENTITIES to display. Pre Submission Attachment Title Phase Submission Period Date & Time 1.1 Proposal Form Signature Page PHASE1 PRE SUBMISSION 7/29/2022 11:03:46 AM 1.2 Gilroy Community Fact Finder Report PHASE1 PRE SUBMISSION 7/29/2022 1:16:58 PM 1.2 Gilroy DAC Map from GIS using ACS Block 2016-2020 data PHASE1 PRE SUBMISSION 7/29/2022 1:13:01 PM 1.3 Cost Estimate PHASE1 PRE SUBMISSION 7/29/2022 2:27:03 PM 1.5 Supporting Documentation PHASE1 PRE SUBMISSION 7/29/2022 11:01:40 AM Download all Pre Submission Attachments Post Submission Attachment Title Phase Date & Time Attached No Post Submission Attachments Available to Display Post Award Attachment Title Phase Date & Time Attached No Post Award Attachments Available to Display Questionnaire - Phase1 PROJECT QUESTIONS Applicants must answer the following questions. If a question does not apply to the project, indicate “Not Applicable” with a brief explanation. Do not leave blank fields. Be sure to address all parts of each question. Answers are limited to 3,000 characters. The Project 1 Describe the discrete project the grant would fund. The information provided should include grant deliverables and support the cost estimate submitted with the proposal. See Appendix J for definition of and examples of grant deliverables. The following project-specific information should be included in response to this question (as applicable): a The approximate number of experiences with natural or cultural resources youth will have (e.g., field trips, days at camp), the length of the project funded by the grant, any cost for youth to participate, and percentage of classroom versus outdoor program time. Answer:The proposed project is a three-year program that will offer 120 socio-economically disadvantaged youth the opportunity to attend free nature field trips while learning about the importance of conservation, cultural preservation, and survival skills. The program will encourage youth from low-income households and neighborhoods to explore beautiful natural destinations in the Santa Clara County region and beyond. Each year of the program will include three day trips (to different destinations) and one multi-day overnight trip. Before each trip, youth will learn about conservation and other natural and cultural resource related concepts in a classroom setting. Each classroom activity will be between 1 and 3 hours. The classroom activities and nature area trips will be led by City Recreation staff and a contracted naturalist from a local nonprofit educational organization that focuses working with underprivileged youth and teens. Classroom sessions will include team-building games and lessons about the cultural history and impacts of climate change on the natural sites that will be visited. Each year's program will have two cohorts – 15 to 20 middle school and 15 to 20 high school students. This will ensure that both cohorts can fit on one bus, along with City staff and contract staff. After each year of the program, City staff will select high school students to act as student leader volunteers for the subsequent year's program. City staff will work to identify and secure additional funding and donations for the programs, using the CNRA grant funding as leverage. Destinations may include state and national parks within California, including Mt. Madonna (Santa Clara County), Henry Coe State Park, Point Lobos State Reserve, and Yosemite National Park. Agenda Item 7.4 Page 96 of 308 7/29/22, 4:24 PM SOAR https://soar.resources.ca.gov/Proposal_Mgmt/PrintApplication.aspx 4/9 b A description of the clean vehicle to be acquired and how the vehicle will be used both during and after the grant period. Answer:N/A - no vehicle requested c For Development Projects (e.g., construction): The percentage of the project footprint located within a low-income community, the owners of the property on which the project will take place, the status of any agreements needed to access and implement the project, and plans for long-term operations and maintenance of the project. Answer:N/A - no construction requested Requirements and Project Need 2 What is the age range of youth to be served by the project? Answer:Youth will be between the ages of 12-18 – middle school and high school students. 3 How many youth will be served by the project funded with the grant and across what time period? Answer:120-90 students over the course of three years. The program will serve 30 to 40 students per school year (between August and May). 4 How will youth be recruited to participate in the project? Answer:Youth will be recruited with the assistance of the South County Youth Task Force (SCYTF), a regional multi- agency collaboration focused on at-risk youth led by the City of Gilroy. Recruitment efforts will be focused on engaging youth within Gilroy's most disadvantaged neighborhoods and vulnerable populations. This will include but not be limited to low-income youth, youth of color, and youth residing in Gilroy's known DAC neighborhoods. Youth will be referred to the program through the SCYTF technical team's multi-disciplinary team meetings, as well as through other community based organizations and school district referrals. Community outreach will occur in public areas within Gilroy's DACs as well as through print and electronic advertisements using City and school district email databases. 5 Will at least 80% of youth served through the project live within a low-income community and/or household? Answer:l Yes 6 How will applicant ensure that at least 80% of youth served through the project live within a low income household and/or community? Answer:The City of Gilroy recreation division has an established free program for low income youth that requires income verification. Participants will be required to meet the income guidelines set by the US Federal Government Housing and Urban Development's Community Development Block Grant (CDBG). A sample CDBG intake income assessment form is part of application as an attachment. 7 Will at least 80% of the youth to be served be members of an underserved community of color and/or a vulnerable population? Answer:l Yes 8 Describe the underserved communities of color and/or vulnerable populations to which at least 80% of youth participants will belong. Answer:The underserved communities within Gilroy are comprised largely of Latino families— for many of whom English is a second language — and are located on the eastern side of town, with the highest concentration of low- income households located in Census Tracts 512511 and 512603. Both these tracts are considered Disadvantaged Communities according to the DAC Mapping Tool using ACS 2016-2020 data. This population is facing adverse conditions such as overcrowding (i.e., multiple families living in single housing units), low educational attainment, high diabetes rates, and limited access to transportation. South County/East Gilroy (zip code 95020) is a geographic region located at the southern end of Santa Clara County. The so-called "South County" is racially and linguistically diverse with one quarter of its Gilroy residents born outside the United States (primarily Mexico) and 46% speaking a language other than English in the home. South County has a greater Latino/Hispanic presence in Gilroy -- 61.1% than the California average of 38.8% (Data USA, 2017). Per capita, Gilroy has the most validated gang members of any city in the county, with 42% greater than San Jose (2017). Out of the top ten zip codes with arrests and citations in 2019, Gilroy ranked 1st with 273 juvenile arrests/citations, increasing by 34 % from 2018 and Morgan Hill increased by 41% at 168 Agenda Item 7.4 Page 97 of 308 7/29/22, 4:24 PM SOAR https://soar.resources.ca.gov/Proposal_Mgmt/PrintApplication.aspx 5/9 arrests/citations, moving from 7th to 4th in ranking (Santa Clara County Probation Department, 2019). Additionally, Gilroy has the lowest life-expectancy of any zip code in Santa Clara County, with East Gilroy having the very lowest and East San Jose having the second lowest. In comparison to other jurisdictions in the county, South County ranks third in the number of children entering Foster Care (24, 9.3%) and has the highest general neglect (GN) referral rates, allegations of child abuse and/or neglect (532, 7.9%), substantiated allegations (140; 10.3%), and voluntary cases opened due to allegation of GN (52, 9.4%). These issues are compounded by the economic challenges facing South County families who often work multiple jobs to meet the exacerbated cost of housing, food, and transportation. While income disparity is evident throughout the county, with the top income families earning almost 16.4 times more than low-income families, families residing in East Gilroy earn a Median Household Income (MHI) of $39,915 in comparison to San Jose's $93,854. With poor job prospects for an increasing young population, a sense of hopelessness permeates the lives of at-risk and gang-impacted youth in the region (California Department of Education [CDE], 2016). 9 How will applicant ensure that at least 80% of the youth to be served are members of underserved communities of color and/or vulnerable populations? (If funded, documentation must be available upon request and for audit purposes.) Answer:The City will use the official CDBG income verification program application to recruit and capture key demographic information on potential program participants. Demographic information that will be collected includes race, ethnicity, disability, household size, household income, and income verification in the form of either: free and reduced lunch eligibility, MediCal eligibility, Section 8 housing status, and/or foster care status. 10 Provide specific examples of natural and/or cultural resources youth will access because of the project. Answer:1. Mt. Madonna (Santa Clara County) – At this park, which has old growth Redwoods, students will learn about the native inhabitants of the land. The main tribe is the Costanoan Rumsen (also known as the Ohlone). Students will also learn about cattle rancher Henry Miller, whose descendants donated the land to the County, which was the basis for the inception of the park. 2. Point Lobos State Reserve – Point Lobos offers a different topography than the other parks. Based on the coast, it is part of the Monterey Bay National Marine Sanctuary. The wildlife at this site includes seals, sea lions, sea otters, migrating gray whales and thousands of seabirds. 3. Yosemite National Park – At Yosemite, students will learn about the tribes who once inhabited the land. They'll also learn about Yosemite's historical significance among the national parks. Students will have an opportunity to camp overnight, hike along the majestic mountains, and observe the unique wildlife. 11 Describe how the project addresses a critical need of the youth served. Answer:This program will be specifically aimed at improving access of natural destinations for youth from disadvantaged backgrounds. There are many students in Gilroy who have not had the opportunity to experience and explore the outdoors beyond the city limits. The City is planning to focus on recruiting youth with existing juvenile arrest records or truancy concerns based on reports provided by the County and other local nonprofit organizations that serve students under the age of 18. Providing free nature access programs for disadvantaged youth will improve outcomes for students who are at risk of falling behind in school and being exposed to the criminal justice system. Collectively, these trips will provide a sense of purpose, an opportunity to for youth to lead one another, and a nature and history oriented perspective beyond their immediate surroundings — for example, how their day-to-day actions impact the planet. 12 Briefly describe the applicant’s mission and how it ties to the goals of the Youth Community Access Grant Program. Answer:City of Gilroy Recreation's mission is to bring the community together and create memories that last a lifetime. The proposed nature trip program fits within this mission — to bring youth together and provide them with opportunities and experiences that will have a profound impact on their lives. They'll learn about the role and importance of our natural surroundings and why it's imperative that we maintain it for generations to come. Students will also develop critical life skills that will build their self-esteem, teach them to work together effectively, nurture peer-to-peer and mentor/mentee relationships, and enhance their logistical planning abilities. At the conclusion of the program, the students will hopefully feel a stronger sense of inclusion and confidence. 13 What steps will be taken to address youth safety, well-being, comfort, and cultural relevance throughout the project? Agenda Item 7.4 Page 98 of 308 7/29/22, 4:24 PM SOAR https://soar.resources.ca.gov/Proposal_Mgmt/PrintApplication.aspx 6/9 Answer:To ensure that participating youth are comfortable and safe while participating in the program, all staff and volunteers will be screened through the City of Gilroy. In addition, staff in this program will have experience working with disadvantaged youth and teens. These staff and volunteers will serve as role models and will enforce positive social behavior through verbal and non-verbal communication and safe physical activity. The City will supply participants with healthy food and drinks during trips and activities and provide safety equipment needed for each trip. To address cultural relevance, youth will learn about the indigenous communities and general history of each nature area prior to visiting. 14 Describe the specific training staff receive in areas such as safety, risk management, cultural competency, trauma informed practices, etc. Answer:All City staff and volunteers involved in the program will have undergone criminal and work history background checks, on-boarding, and mandated reporter training. The City will require the contractor to conduct background checks on any staff that will be working with youth. The contracted naturalist will also have extensive experience working with underprivileged youth. They will train City staff and volunteers on basic safety protocol when in the wilderness. In order to build cultural competence and center trauma informed care in the program curriculum and interpersonal interactions, staff involved in this program will have undergone trainings such as A Lifeworks Framework, International Institute for Restorative Practices training, National Compadres Network cultural trainings, and/or Xinachtli rites of passage. The program staff, service providers and leaders will demographically reflect the targeted population intended to be served. 15 Describe any existing ADA accessibility accommodations available to youth and/or planned accommodations included with this proposal. Answer:City staff will ensure that participating youth requiring ADA accessibility are accommodated. Wheelchair lift transportation is available for each excursion. If a participating student has special needs and will need an aide to assist, the City will work with the participant and their family to accommodate their needs. Funding Priorities 16 Describe any youth leadership opportunities during project development and/or implementation. Provide information pertaining to any distinct youth participant roles that may be applicable (e.g., interns, youth advisory committee, etc.). Answer:Each year's program will have two cohorts – 20 middle school aged youth and 20 high school aged youth. At the end of the program each year, City staff will select up to four youth (2 from each cohort) to act as youth activity leaders volunteers for the subsequent year's program. Serving in a leadership role, these students will be part of the planning process and able to provide feedback and support implementation from a youth perspective. After year two, another set of cohorts will be selected to serve as youth activity leaders during year three. 17 Of the total number of youth participants, how many will be given leadership opportunities during project development or implementation? If distinct roles are applicable, how many youth are anticipated for each role? Answer:Four (4) youth from each year's cohorts will be recruited for Youth Activity Leader positions, for a total of 8 youth leaders. 18 What skills and knowledge will youth gain because of the project? Answer:Youth will learn outdoor safety and survival skills, regional flora and fauna, the impact of climate change and how to prevent further damage to the planet, the history of each park's indigenous cultural and historical heritage, interpersonal skills, and team building skills. Youth will also have opportunities to serve as leaders in small groups and, in some cases, for their entire cohort. Youth will explore and gain an understanding of community building and the impact of making healthy lifestyle choices. 19 Describe lasting impacts of the project and how project experiences will continue to influence youth participants after the project concludes. Answer:Through successful participation in classroom learning and nature trips, youth participants will develop a stronger connection with the natural environment and improved self-esteem. Those who demonstrate leadership capabilities can apply to become a Youth Activity Leader and mentor future cohorts. This will support the legacy of the program and thus the sustainability of the project. Through the program, students will develop a deeper connection to themselves, their peers, and community that will influence their interactions in school, home and community spaces. Some youth may be motivated to start a hiking club at their school or a community group committed to bringing awareness about the local impacts of climate change. 20 Describe any youth participation in public awareness/outreach campaigns before and/or after project completion. Agenda Item 7.4 Page 99 of 308 7/29/22, 4:24 PM SOAR https://soar.resources.ca.gov/Proposal_Mgmt/PrintApplication.aspx 7/9 Answer:Youth will be documenting their experiences both in a personal diary and through multi-media presentations. In small groups, students will be asked to make a public service announcement about the importance of the natural environment and why it needs to be protected for future use. They'll also discuss their experience in the program and how it has helped them appreciate the world around them. These videos will be distributed through the City's social media and e-newsletter platforms. After each year's program is completed, youth activity leaders and participants will make a presentation to the Gilroy Parks and Recreation Commission and the Gilroy City Council, where they will demonstrate what they have learned and how the program has benefited them. 21 Explain how the project encourages and empowers youth to make healthy choices during and beyond the project. Answer:City staff will ensure that youth have access to healthy nutritional meals during activities and trips. There will also be lessons about the importance of consuming nutritious and fresh foods. Youth will have the opportunity to plan healthy meals/snacks with staff to practice healthy choices. The project aims to provide positive recreational opportunities in nature with positive adult role models to support mental, physical, and spiritual healing and education in nature. Youth will learn to seek alternative choices to negative coping strategies and negative influences. Project Readiness 22 Describe the immediate steps to be taken post-grant award. Answer:If selected for an award, staff will send the required Authorizing Resolution to City Council for approval. The Recreation Manager will then identify key staff that will be involved with the program. City staff will issue a Request for Proposal (RFP) to contract the services of a professional naturalist organization that has experience working with socio-economically disadvantaged youth and teens in the outdoors. Staff will also obtain quotes for a charter transportation company for its offsite trips. Recruitment of participants will be conducted through the distribution of a school flyer and disseminating the information to the South County Youth Taskforce network that includes the Spanish-language community group "Promotores" and Gilroy's "Late Night Gym" (LNG) program. The youth in LNG have been identified as requiring additional social and emotional support. 23 Explain how the applicant will fill any funding gaps to complete the project. Answer:Any gaps in project funding will be supplemented by the City of Gilroy's Recreation Division budget. During the program's implementation, City staff will apply for local and private grants that may supplement the program's funding. The City currently has an ongoing grant from Santa Clara County Valley Transportation Authority's "2016 Measure B Bike-Pedestrian Education and Encouragement Fund," which reimburses qualifying agencies for expenses that were used to promote bicycling, walking and/or hiking in Gilroy. 24 If the project requires hiring of staff, explain the timeline for hiring and specific role(s) to the discrete project proposed for grant funding. Answer:The program will utilize existing City Recreation staff: Community Coordinator, Recreation Manager, Recreation Specialists, and Recreation Leaders. The City also plans to augment supervision and program implementation by contracting the services of a professional naturalist through the RFP process. This process typically takes three to five months to complete. 25 If the project requires approval from entities other than applicant, provide the status of discussions and approvals. Answer:Once this project is approved by CNRA, Gilroy City Council will approve an authorizing resolution to move forward with the grant funding agreement and program. 26 If applicable, provide the status of communications about the project with entities (e.g., schools, non-profit organizations, foster system, etc.) from which youth will be recruited. Answer:Once the school year begins in August 2022, City staff will discuss this project with South County Youth Taskforce, Gilroy Unified School District, Santa Clara County Department of Probation, and other key stakeholders. 27 If a development project (e.g., construction), will the project trigger any permits and/or environmental reviews? If so, provide the status and/or anticipated timeline of applicable compliance measures. Answer:Not applicable -- not a development project. Organizational Capacity and Collaboration 28 Describe the applicant's ability and experience with fundraising (e.g., grants, donations, etc.). Agenda Item 7.4 Page 100 of 308 7/29/22, 4:24 PM SOAR https://soar.resources.ca.gov/Proposal_Mgmt/PrintApplication.aspx 8/9 Answer:Past grants and donations: 2022 Donations: Gilroy Assistance League (GAL): $3,000 to Gilroy Youth Center (after school program) Gilroy Rotary Club: $2500 toward Party in the Park special event 2021 Donations: Exchange Club: $300 toward Youth Scholarship Fund Gilroy Chevy: $1000 Youth Sports Gilroy Foundation: Senior Center - $425 Youth Scholarship Fund - $6100 2020 Donations: Exchange Club: $300 toward Youth Scholarship Fund Gilroy Rotary Club: $2500 toward Kids Discover Arts special event, $2500 toward Party in the Park special event 2019: Grant: Santa Clara County: $1000 toward Community Fireworks display 29 Describe the applicant's experience in completing similar projects. Answer:The City facilitates a CDBG grant funded summer day camp program that serves Gilroy's low-income residents following HUD income guidelines. See attachment for supplemental information about this summer youth program. The Recreation Division runs recreation and athletic programs that serve youth from all socioeconomic backgrounds, including low-income youth and those residing in DACs. Participation fees are waived on a case- by-case basis depending on individual needs and household income. 30 Describe the applicant's fiscal capacity to carry out the proposed project. Answer:The City's General Fund, which provides the funding for the Recreation Division, will enable staff to fill any unexpected funding gaps. The City of Gilroy is a fiscally solvent municipality. 31 What is the applicant's primary source of revenue? Answer:The City of Gilroy Recreation Division is funded by city taxes and user fees. 32 Describe any partnerships with other entities and their roles in the project. Answer:Through an RFP, the City will work with a contracted non-profit naturalist organization that will facilitate a class curriculum and lead students on four excursions. The South County Youth Taskforce will help the City recruit and refer youth participants. The Taskforce is comprised of local school districts, community-based organizations, school resource officers, and probation officers. 33 If funded, what documentation will applicant use to demonstrate that the project was successful—i.e., met expected outcomes and benefitted the intended audience? Answer:To demonstrate and evaluate project success and effectiveness, City staff will use pre- and post- program surveys of youth participants at the start and end of each school semester. City staff will also take photos and document the naturalist curriculum for internal evaluation purposes. Additional Project Characteristics 34 Describe other project characteristics not previously discussed that would assist in evaluating the proposal. (No Agenda Item 7.4 Page 101 of 308 7/29/22, 4:24 PM SOAR https://soar.resources.ca.gov/Proposal_Mgmt/PrintApplication.aspx 9/9 response or an answer of "Not Applicable" will be given a score of zero). Answer:Not applicable. Certification And Submission Statement Please read before signing and submitting application. I certify under penalty of perjury: The information entered on behalf of Applicant Organization is true and complete to the best of my knowledge; I am an employee of or a consultant for the Applicant Organization authorized to submit the application on behalf of the Applicant Organization; and I understand that any false, incomplete or incorrect statements may result in the disqualification of this application. By signing this application, I waive any and all rights to privacy and confidentiality of the proposal on behalf of the applicant, to the extent provided in this RFP. Submission By: imalinsky Submitter Initials: IM Submission Date: 7/29/2022 4:23:10 PM © 2022 State of California. Conditions of Use | Contact Us | Privacy Policy Agenda Item 7.4 Page 102 of 308 Page 1 of 3 City of Gilroy STAFF REPORT Agenda Item Title:Adoption of an Ordinance Adding Chapter 16B, Sidewalk Vending, to the Gilroy City Code Meeting Date:August 21, 2023 From:Jimmy Forbis, City Administrator Department:Community Development Submitted By:Sharon Goei, Community Development Director Prepared By:Jon Biggs, Special Assistant to City Administration STRATEGIC PLAN GOALS Promote Economic Development Activities RECOMMENDATION Adopt an ordinance adding Chapter 16B, Sidewalk Vending, to the Gilroy City Code, which provides permit requirements and standards for sidewalk vending, and find that it is exempt from CEQA review based on CEQA Guidelines Section 15332. EXECUTIVE SUMMARY Legislation adopted at the State level (State Senate Bill 946 or SB 946) now allows vendors to sell food and merchandise on pedestrian paths, public sidewalks, and, in certain instances, public parks. Although the Gilroy City Code includes requirements for mobile vending (Chapter 16A of the Gilroy City Code), those requirements are not in line with current State legislation for sidewalk vendors, and the proposed ordinance provides permit requirements and standards for those seeking to sell goods or foods on City-owned paths, sidewalks, and parks. BACKGROUND At its meeting of August 7, 2023, the City Council considered and voted to introduce an ordinance adding Chapter 16B, Sidewalk Vending, to the Gilroy City Code. This ordinance provides the rules and standards for regulating sidewalk vending in the City. The ordinance that was introduced contained a few minor modifications, made orally after discussion at the meeting, from the written draft ordinance. These oral changes, Agenda Item 7.5 Page 103 of 308 Adoption of an Ordinance Adding Chapter 16B, Sidewalk Vending, to the Gilroy City Code City of Gilroy City Council Page 2 of 3 August 21, 20231 2 7 2 shown below in redline format for easy distinction, are included in the written ordinance proposed for adoption. 1. Addition of the following standard in section 16B.3: For the health, safety, and welfare of the community and pedestrians when using its public sidewalks, paths, and parks, generators and cooking methods that involve deep fat frying and wood fired cooking devices, which present fire, smoke, burn, and slipping hazards, are prohibited. This limitation does not prohibit sidewalk vendors from using other cooking methods to heat or prepare foods. 2. Deletion of the following standards in section 16B.3: Vendors shall not use generators unless their sidewalk vending permit explicitly allows for generator use. Use of generators may be requested in a sidewalk vending permit application. Vendors using a generator approved in conjunction with the sidewalk vending permit and those that emit smoke or steam shall not be located within twenty-five feet (25’) of building openings and approved outdoor seating of an eating establishment. 3. Modification of the following standard in section 16B.3: Increase the setback distance from the curb face from two feet to three feet – to read as follows: At locations where on street parking is angled to the curb, the vending device or area shall be setback three two feet (3’ 2’) from the curb face. 4. Replace ‘or’ with ‘and’ at subsection 16B.6 (8) to read as follows: Commercial general liability, automobile, and workers compensation insurance policies and or other such policy as the office of the risk manager of the city of Gilroy shall require. As indicated above, these minor modifications have been included in the copy of the ordinance attached to this agenda report for Council adoption. ANALYSIS The City Council is now being asked to adopt the proposed ordinance, which reflects the changes made at its regular meeting on August 7, 2023. If adopted, the ordinance will take effect thirty (30) days following this action of the City Council, on September 20, 2023. Agenda Item 7.5 Page 104 of 308 Adoption of an Ordinance Adding Chapter 16B, Sidewalk Vending, to the Gilroy City Code City of Gilroy City Council Page 3 of 3 August 21, 20231 2 7 2 ALTERNATIVES 1. Decline adoption of the ordinance. 2. Refer the ordinance to staff and direct that it be scheduled for a future meeting of the City Council for consideration. These alternatives are not recommended since the proposed ordinance was developed through a series of Council inputs. FISCAL IMPACT/FUNDING SOURCE The adoption of the ordinance will have a minimal fiscal impact. However, there will be staff time consumption across multiple departments in implementing the ordinance. For example, staff will need to create educational materials; conduct outreach; develop documents, forms, and procedures, including configuration in the new permit system; perform permit review and processing; enforce standards and regulations; and coordinate with outside agencies. Additional resources will be needed to implement the ordinance. Staff will consider the staff time and cost and return with a resolution for the City Council to consider the appropriate application fee at its September 18, 2023 meeting. PUBLIC OUTREACH The City held several public outreach workshops and meetings on this subject: •A community workshop on sidewalk vending was held on June 8, 2023, at the Gilroy Senior Center. •Public Hearings were held on the proposed ordinance at the July 10, 2023 Special Meeting of the City Council and the August 7, 2023 regular meeting of the City Council. •A study session of the City Council to review sidewalk vending regulations was held on July 19, 2023. NEXT STEPS If adopted, the ordinance will become effective in 30 days, on September 20, 2023. Attachments: 1. Proposed Ordinance Agenda Item 7.5 Page 105 of 308 ORDINANCE 2023-XX AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GILROY ADDING CHAPTER 16B, SIDEWALK VENDING, TO THE GILROY CITY CODE WHEREAS, in 2019, California Senate Bill (“SB”) 946 (Sidewalk Vendors) became law, decriminalizing commercial sidewalk vending and limiting local government’s ability to restrict sidewalk vending; and WHEREAS, since SB 946 became law, it has become clear that, in order to promote public health, safety, and welfare, the City requires a comprehensive City-wide dedicated sidewalk vending permitting and regulatory scheme that both complies with state law and is effective at regulating sidewalk vending in public spaces; and WHEREAS, at its meeting of April 17, 2023, staff presented the City Council with an overview of sidewalk vending legislation adopted by the State of California, and following public comment and input, the City Council directed that staff draft an ordinance containing permit requirements and standards for sidewalk vending in the City; and WHEREAS, staff held a community workshop on the evening of June 8, 2023, which was well attended by various segments of the community who sought clarifications and asked questions in addition to providing input on the process and standards by which sidewalk vending would be permitted: and WHEREAS, at its meetings of July 10 and July 19, 2023, the City Council considered the proposed ordinance and following public comment and input, directed that staff incorporate changes to the sidewalk vending rules, where appropriate, and return them to the City Council at a future meeting for consideration; and WHEREAS, if properly regulated, sidewalk vending can foster vibrant public spaces, promote a diverse and inclusive local economy, and create economic opportunities for low-income and immigrant communities; and WHEREAS, at the same time, inadequately regulated sidewalk vending has caused and will be expected to cause negative future impacts on public health, safety, and welfare. For example, inadequately regulated sidewalk vending has caused or been associated with numerous negative consequences in Gilroy and as reported by staffs of other cities as well, including unsafe overcrowding; decreased accessibility for persons with disabilities; a lack of adequate access for first responders, and emergency personnel; the monopolization of public spaces for private commercial use; traffic safety concerns for motorists, bicyclists, and pedestrians; diversion of pedestrians into bike lanes or vehicular lanes; parking congestion; accumulation of trash and pollution in public spaces; altercations arising amongst vendors competing for locations from which to vend their food or goods; foodborne illnesses; the sale of counterfeit goods; and a lack of sales tax being collected; and Agenda Item 7.5 Page 106 of 308 Ordinance No. 2023-XX Sidewalk Vending City Council Regular Meeting | August 7, 2023 Page 2 of 2 9 2 6 WHEREAS, the intent of this ordinance is to effectively regulate sidewalk vending in a way that: (a) complies with state law; (b) addresses objective public health, safety, and welfare concerns; and WHEREAS, the project is exempt from CEQA review based on CEQA Guidelines subsection 15061 (b) (3) in that the adoption of this ordinance does not have the potential to cause a significant effect on the environment because it provides additional rules and procedures intended to provide for the protection of health, safety, and welfare in the City for commercial activity, sidewalk vending, determined by the State of California to be permissible across the State. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GILROY DOES HEREBY ORDAIN THE ADDITION OF CHAPTER 16B, SIDEWALK VENDING, ATTACHED AS EXHIBIT ‘A’, TO THE GILROY CITY CODE. PASSED AND ADOPTED by the City Council of the City of Gilroy at a regular meeting duly held on the 21st day of August 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 Agenda Item 7.5 Page 107 of 308 1 9 6 8 EXHIBIT ‘A’ of ORDINANCE 2023-XX CHAPTER 16B SIDEWALK VENDING Sections 16B.1 Intent and purpose. 16B.2 Definitions. 16B.3 Sidewalk vending standards. 16B.4 Restricted vending times and locations. 16B.5 Permit applicability. 16B.6 Sidewalk vending permit application and fees. 16B.7 Sidewalk vending permit approval, conditions, denial, or revocation. 16B.8 Sidewalk vending permit expiration and renewal. 16B.9 Administrative citations. 16B.10 Impoundment. 16B.1 INTENT AND PURPOSE. (a) The city council of the city of Gilroy declares that: (1) If properly regulated, sidewalk vending can foster vibrant public spaces, promote a diverse and inclusive local economy, and create economic opportunities for low-income and immigrant communities. (2) At the same time, inadequately regulated sidewalk vending has caused and will be expected to cause in the future negative impacts to the public health, safety and welfare. For example, inadequately regulated sidewalk vending has caused or been associated with numerous negative consequences in Gilroy and as reported by staffs of other cities as well, including unsafe overcrowding; decreased accessibility for persons with disabilities; a lack of adequate access for first responder and emergency personnel; the monopolization of public spaces for private commercial use; traffic safety concerns for motorists, bicyclists, and pedestrians; diversion of pedestrians into bike lanes or vehicular lanes; parking congestion; accumulation of trash and pollution in public spaces; altercations arising amongst vendors competing for locations from which to vend their food or goods; foodborne illnesses; the sale of counterfeit goods; and a lack of sales tax being collected. (3) Sidewalk vending must be regulated to address the concerns discussed above. (b) The purpose of this chapter is, therefore, to promote the public peace, safety, health, and welfare by ensuring rapid access for first responder and emergency personnel; improving sidewalk accessibility for persons with disabilities; facilitating ingress into and egress from vehicles, maintaining rights-of-way to buildings, and public spaces; maximizing use and promoting maintenance of public rights-of-way, parks, and other public spaces; and reducing the city’s exposure to civil liability. 16B.2 DEFINITIONS. For the purpose of this chapter, the following words and phrases are defined as follows: Agenda Item 7.5 Page 108 of 308 2 9 6 8 (a) “Food” means raw, cooked, or processed edible substance, ice, beverage, an ingredient used or intended for use or for sale in whole or in part for human consumption, chewing gum and/or any other items defined as food by the California Retail Food Code. (b) “Mobile vendor” means any person in charge of or driving any motorized mobile vending vehicle requiring a state driver’s license to operate, either as an agent, employee, or otherwise under the direction of the owner. (c) “No vending or limited vending zone” means an area where sidewalk vending is prohibited or limited due to objective public health, safety, or welfare concerns. The city council may establish no vending or limited vending zones by resolution, as set forth in Section 16B.4 (c). (d) “Roaming sidewalk vendor” means a sidewalk vendor who moves from place to place and stops only to complete a transaction. (e) “Sidewalk vending” means to sell, offer for sale, expose or display for sale, solicit offers to purchase, or to barter food, goods, or merchandise on any public sidewalk, pedestrian path, park, or other public property, with or without the assistance of a vending device, or to require someone to pay a fee or to set, negotiate, or establish a fee before providing any such food, goods, or merchandise, even if characterized by the sidewalk vendor as a donation. (f) “Sidewalk vending permit” means a permit or card issued by the city to a sidewalk vendor pursuant to Section 16B.7. (g) “Sidewalk vendor” means a person who sells food or merchandise from a vending device or from one’s person, upon a public sidewalk, pedestrian path, park, or other public property. This term is inclusive of both roaming and stationary sidewalk vendors. (h) “Stationary sidewalk vendor” means a sidewalk vendor who vends from a fixed location. (i) “Vending device” means a pushcart, stand, display, pedal-driven cart, wagon, showcase, rack, nonmotorized conveyance (including trailers), freestanding table, chair, box, stand, or any container, structure, or other object used or capable of being used for holding, selling, advertising, or displaying tangible things, together with any associated seating facilities. “Vending device” does not include any street furniture such as benches or planters, any other structure permanently installed by the city of Gilroy or with the consent of the city of Gilroy. (j) “Enforcement official” means any person designated by the city administrator to enforce this chapter and includes, but is not limited to: community development department or recreation division staff tasked with code enforcement or compliance, all Gilroy police department sworn personnel and community service officers, and/or any city-contracted code enforcement officer or specialist. 16B.3 SIDEWALK VENDING STANDARDS. (a) Sidewalk vendors shall comply with this section in order to prevent unreasonable conflicts with pedestrian and vehicular traffic, prevent improper disposal of trash, and to assure that pedestrians (including pedestrians with disabilities) have adequate and accessible thoroughfares, Agenda Item 7.5 Page 109 of 308 3 9 6 8 to minimize trip and fall hazards, to address driver visibility concerns, and to address other public health, safety, and welfare concerns: (1) Vending devices shall be at least eighteen inches in height. No person engaged in sidewalk vending may display or sell their wares on the ground, or on a cloth, tarp, or other similar material on the ground. (2) No food sidewalk vendor may be accompanied by or in the custody or possession of an animal, except a service animal. Merchandise sidewalk vendors may have a leashed animal. (3) To maintain accessibility standards, sidewalk vendors shall not place or allow any obstruction to be placed on the sidewalk that would reduce the width of the sidewalk below a minimum of forty-eight inches excluding curb, and excluding any sidewalk areas that are made non-passable due to any natural barriers or other existing conditions or obstructions such as posts, parking meters, street trees, planters, or signs that are located on the sidewalk, except for the brief duration of time for a roaming sidewalk vendor to conduct a sale. Sidewalk vendors shall maintain their vending devices at all times in a manner that provides sufficient access to the sidewalk and avoids impeding the flow of pedestrian traffic. At no time, may a sidewalk vendor operate in such a fashion that would violate or cause a violation of the Americans with Disabilities Act or state law on accessibility, or cause the sidewalk to narrow in a fashion that violates the accessible path of travel for persons with disabilities, including persons who use wheelchairs or other mobility devices. (4) Sidewalk vendors shall not use easy-ups, tents, or similar shade structures unless their sidewalk vending permit specifically authorizes such use. Use of these types of structures shall be requested in the sidewalk vending permit application. The size of a city- permitted shade structure or vending device may vary depending on the location, but in no event may a sidewalk vendor’s total operational size (including any shade structure or vending display device) exceed the total operational size allowed in the permit issued to the sidewalk vendor. (5) Sidewalk vendors shall not vend to occupants of motorized vehicles in operation. (6) Sidewalk vendors shall not cause onlookers, customers, or others to obstruct the accessible path of travel for persons with disabilities, or the free flow or view of pedestrian or vehicular traffic. (7) To maintain the free movement of pedestrians and/or vehicles, sidewalk vendors shall not use signs in connection with the sale, display, or offering for sale of items, except for those signs affixed to or painted on a vending device and are no larger than the vending device itself. (8) For the health, safety, and welfare of the community and pedestrians when using its public sidewalks, paths, and parks, generators and cooking methods that involve deep fat frying and wood fired cooking devices, which present fire, smoke, burn, and slipping hazards, are prohibited. This limitation does not prohibit sidewalk vendors from using other cooking methods to heat or prepare foods. (9) Sidewalk vendors must provide a trash receptacle for customers and employ good faith efforts to ensure proper disposal of customer trash. Prior to leaving any vending Agenda Item 7.5 Page 110 of 308 4 9 6 8 location, the sidewalk vendor shall pick up, remove, and dispose of all trash generated by the vending operations and/or the vendor’s customers within a twenty-foot radius of the vending location. Sidewalk vendors are responsible for disposing of the trash associated with their business and may not use city receptacles for this purpose. (10) Sidewalk vendors must include any necessary measures needed to prevent and promptly clean up the splatter of fats, greases, or oils on surroundings. (11) Sidewalk vendors must appropriately dispose of fats, greases, or oils. (12) At all times while vending, food sidewalk vendors shall possess and display in plain view on the vending device a valid permit from the County of Santa Clara Department of Environmental Health. (13) At all times while vending, sidewalk vendors shall possess and display in plain view on their person or on their vending device a valid sidewalk vending permit issued pursuant to Section 16B.7. A properly permitted sidewalk vendor must remain on site for all vending activities. (14) Vending devices shall not be chained, fastened, or affixed at any time to any building or structure, including, but not limited to, lampposts, parking meters, traffic signals, fire hydrants, benches, bus shelters, trash cans, street signs, trees, or other objects within the public right-of-way. No vending device shall become a permanent fixture on the vending site or be considered an improvement to real property. (15) Vending devices shall not be left or stored unattended on public property or within the public right-of-way. (16) Sidewalk vendors shall not vend or distribute: (A) live animals, wildlife, fish, fowl, or insects; or (B) items that are otherwise illegal to sell or distribute under other laws (such as unlawful narcotics, cannabis, weapons, and counterfeit merchandise). Note that the unlawful possession or distribution of items is punishable according to the terms of applicable federal, state, or local law making such possession or distribution illegal. (17) Sidewalk vendors shall not use sidewalks or public property as storage for extra inventory, merchandise, or personal belongings, except for: (A) vending devices, items placed on or in vending devices, and associated seating; and (B) personal belongings wholly contained underneath or inside of a vending device. (18) No person shall use any street furniture, including any bench, planter, utility cabinet, or other street furniture or structure permanently installed on public property, for the display, sale, or distribution of food, goods, or merchandise. (19) Sidewalk vendors shall not interfere with access or use of city infrastructure, including city benches, bike racks, wheelchair access ramps, stairs, parking meters, trash receptacles, or recycling receptacles. (20) Sidewalk vendors shall not block access to or create unreasonable congestion by maintaining a clear distance of forty-eight inches (48”), unless this conflicts with federal, state, or local regulations, at: (A) a corner of any street intersection; (B) any fire hydrant, Agenda Item 7.5 Page 111 of 308 5 9 6 8 emergency exit, or other emergency facility; (C) any curb which is designated as white, yellow, green, blue, or red zone, or a bus zone; (D) any egress and ingress location of a building, facility, or stairway access point; (E) any driveway or driveway apron; or (F) from any roadway. Vending or operating in a way that violates the accessible path of travel for persons with disabilities is per se unreasonable. (21) Stationary sidewalk vendors shall not locate their vending device over or within fifteen feet (15’) of a storm drain. (22) Trailers are not permitted on the sidewalk pursuant to California Vehicle Code 22500(f). Violation of this rule is punishable in accordance with the terms of the California Vehicle Code. (23) Sidewalk vendors shall not connect to city owned utilities such as but not limited to, electric boxes, water lines, and gas lines. (24) Vendors shall not allow customers in their queue or encourage customers to interfere with or obstruct public rights-of-way, pedestrian pathways, or traffic. (25) Vendors shall maintain at least five feet or 50% of the overall width of the sidewalk or other pedestrian path, whichever is greater, open to pedestrians. (26) Vendors may not operate within twenty-five feet (25’) of an automatic teller machine (ATM). (27) At locations where on street parking is angled to the curb, the vending device or area shall be setback three feet (3’) from the curb face. (28) In order to minimize noise impacts on residential units, in mixed use areas, a vendor may only engage in sidewalk vending during the hours of operation of adjacent businesses or uses on the same street. (29) Sidewalk vendors shall be responsible for their own compliance with all applicable federal, state, and local laws, including without limitation state food preparation, handling, and labeling requirements; fire codes and regulations; noise standards; alcoholic beverages, tobacco products, cannabis, electronic cigarette, smoking devices and controlled substances regulations; sanitation and health standards and the Americans with Disabilities Act and other disability access standards (both state and federal). (30) Sidewalk vendors shall not operate or vend in a way that violates the terms or conditions of their sidewalk vending permit. (b) The city administrator or their designee may promulgate regulations governing sidewalk vending to enforce the provisions of this chapter and to address objective health, safety and welfare concerns. A violation of such regulations shall constitute a separate violation of this chapter. 16B.4 RESTRICTED VENDING TIMES AND LOCATIONS. Agenda Item 7.5 Page 112 of 308 6 9 6 8 (a) Unless specifically permitted by another provision of this municipal code, to ensure rapid access by first responder and emergency personnel; to improve sidewalk accessibility for persons with disabilities; to facilitate ingress into and egress from vehicles, rights-of-way, buildings, and public spaces; to maximize use and promote maintenance of public rights-of-way, parks, community landmarks; and to reduce the city’s exposure to civil liability, stationary sidewalk vending is not permitted in the following limited areas: (1) In any city park where the city has entered into an agreement for concessions that exclusively permits the sale of food or merchandise by the concessionaire; (2) In areas that are zoned exclusively residential. (3) Within three hundred feet (300’) of a permitted certified farmers’ market during the limited operating hours of that certified farmers’ market or a special event for which a special event permit has been issued during the hours of that special event. A “certified farmers’ market” means a location operated in accordance with Chapter 10.5 (commencing with Section 47000) of Division 17 of the Food and Agricultural Code and any regulations adopted pursuant to that chapter. (4) Within four hundred feet (400’) of a school between the hours of 7:00 am and 4:00 pm on school days. (5) Within six hundred feet (600’) of any entertainment establishment (e.g., clubs) within the hours of 10:00 pm and 2:30 am. (b) For the same reasons identified in subsection (a), both stationary and roaming sidewalk vending shall not be permitted in the following limited areas: (1) On a bike path, a street (including within on-street parking spaces), within a driveway, or in a public parking lot. (c) The city council, by resolution, may from time to time designate no vending or limited vending zones due to objective health, safety, or welfare concerns. In designating a no vending or limited vending zone, the city council shall first determine that vending without limitation in the area would impede or interfere with public health, safety, or welfare. (d) This section shall not be construed as prohibiting events that are conducted pursuant to, and in accordance with, a Special Event Permit issued by the city. 16B.5 PERMIT APPLICABILITY. (a) A sidewalk vending permit shall only permit the operation of one vending device at any one time. (b) No permit granted pursuant to this chapter shall be transferable. (c) An approved stationary sidewalk vending permit grants the permittee the privilege of occupying a particular portion of the public path or sidewalk for the purpose of conducting the approved vending business. An approved stationary vending permit does not grant the permittee any estate or other property right or interest to operate at the location for which the permit is issued and/or to operate at any location in the public street. Agenda Item 7.5 Page 113 of 308 7 9 6 8 16B.6 SIDEWALK VENDING PERMIT APPLICATION AND FEES. (a) No person may engage in sidewalk vending in the city without first obtaining: (1) a sidewalk vending permit issued pursuant to Section 16B.7; (2) a business license issued pursuant to Chapter 13 of the Gilroy City Code. (b) To apply for a sidewalk vending permit, the sidewalk vendor applicant must file an application with the city, accompanied by an application fee in an amount established by resolution of the city council. The application shall be in a form developed by staff and shall contain the following: (1) The legal name and current address, telephone number, and email address of the applicant, who must be a natural person (i.e., an individual human being and not a corporation, firm, partnership, etc.); a copy of the applicant’s California driver’s license, California identification card, U.S. Passport, individual taxpayer identification number, federal identification number, or other identification number or card issued by a foreign government; (2) If sidewalk vending as a representative of a firm, association, or partnership, the name and address thereof and the names and residences of partners or association members. If sidewalk vending as a representative of a corporation, the name and address thereof and the names and residences of officers and a local manager; (3) A Statement of Operations which includes the type of operation (mobile or stationary), description of the food or merchandise offered for sale, hours of operation, and location of operation; (4) Copies of all required licenses and permits, including but not limited to a city of Gilroy business license, California seller’s permit, and copies of all permits and approvals needed from the County of Santa Clara Department of Environmental Health. Each separate concurrently operating vending location requires its own business license and sidewalk vending permit; (5) The following release, indemnification, and acknowledgement requirements: (A) An agreement by the applicant to waive and release the city and its officers, agents, employees, contractors, and volunteers from and against any and all claims, costs, liabilities, expenses, or judgments (including attorneys’ fees and court costs) related to or arising out of the applicant’s sidewalk vending activities. (B) An agreement by the applicant to, to the greatest extent allowed by law, defend, indemnify, and hold harmless the city, its officers, agents, employees, contractors, and volunteers from and against any and all claims related to or arising out of the applicant’s sidewalk vending activities. (C) An acknowledgement and agreement that the applicant’s use of the sidewalk or other city facilities is at the applicant’s own risk, and it is not the city’s responsibility to ensure that the vending location is safe or conducive to the vending activities Agenda Item 7.5 Page 114 of 308 8 9 6 8 (6) Photos, dimensions, and a description of the vending device that will be used. If the vending device is mobile, the application shall also contain all applicable vehicle identification information including VIN, make, model and engine number; (7) An acknowledgement of having read and an agreement to abide by this Chapter 16B (Sidewalk Vending); and (8) Commercial general liability, automobile, and workers compensation insurance policies and other such policy as the office of the risk manager of the city of Gilroy shall require. 16B.7 SIDEWALK VENDING PERMIT APPROVAL, CONDITIONS, DENIAL, OR REVOCATION. (a) A sidewalk vending permit shall be approved unless it is determined that: (1) Information contained in the application, or supplemental information requested from the applicant, is incomplete or false in any material detail; or (2) The proposed operations are contrary to the provisions and operating standards of this chapter; (3) The applicant has failed to pay or otherwise resolve any previous administrative citations associated with a previous violation of this chapter; or (4) The location of the proposed vending operations has already been approved for another use (including potentially other vending operations) at the time the applicant proposes to vend at the subject location; or (5) The proposed vending operations are in violation of any federal, state or local law or ordinance and/or the city’s approval of a sidewalk vending permit would be contrary to legal requirements applicable to the city. (b) Reasonable sidewalk vending permit conditions, regulating the time, place, and manner of sidewalk vending may be added. (c) If the permit is denied, written notice of such denial and the reasons therefor shall be provided to the applicant. (d) A sidewalk vending permit may be revoked for violation of this chapter. A sidewalk vendor whose permit is revoked may apply for a new sidewalk vending permit upon the expiration of the term of the rescinded permit. (e) An applicant may appeal the decision to deny, revoke, or condition the application to the city administrator within ten (10) business days of the decision. An appeal hearing will be held by the city administrator or their designee within ten (10) business days from the date the appeal is received. At the hearing, both the applicant and the staff member denying the permit shall have the right to appear and to present evidence and arguments relevant to the grounds on which the decision to deny the application is appealed. The burden of proof shall be on the applicant to show that he/she meets the qualifications for a sidewalk vending permit. The decision of the city administrator, or their designee, shall be final and conclusive upon the applicant. Agenda Item 7.5 Page 115 of 308 9 9 6 8 16B.8 SIDEWALK VENDING PERMIT EXPIRATION AND RENEWAL. A sidewalk vending permit shall be valid for twelve months from the date of issuance, except that a sidewalk vending permit shall be deemed null and void upon the revocation or expiration of: (a) the related city issued business license, (b) a required permit from the County of Santa Clara Department of Environmental Health, and/or (c) the California seller’s permit pursuant to Revenue and Taxation Code Section 6067. 16B.9 ADMINISTRATIVE CITATIONS. (a) Unless otherwise provided, a violation of this chapter by a sidewalk vendor who has a valid sidewalk vending permit from the city is punishable only by an administrative citation pursuant to Chapter 6A, Article II of the Gilroy City Code, in amounts not to exceed the following: (1) One hundred dollars ($100) for a first violation. (2) Two hundred dollars ($200) for a second violation within one year of the first violation. (3) Five hundred dollars ($500) for each additional violation within one year of the first violation. (b) Unless otherwise provided, a person engaged in sidewalk vending without a valid city sidewalk vending permit shall be issued an administrative citation pursuant to Chapter 6A, Article II of the Gilroy City Code in amounts not to exceed the following, in lieu of the amounts set forth in subsection (a): (1) Two hundred and fifty dollars ($250) for a first violation. (2) Five hundred dollars ($500) for a second violation within one year of the first violation. (3) One thousand dollars ($1,000) for each additional violation within one year of the first violation. (c) A person issued an administrative citation pursuant to subsection (b), upon submitting proof of a valid sidewalk vending permit issued by the city within ten calendar days of the date a citation is issued, may have the amount of their citation reduced to amounts set forth in subsection (a). (d) Unless otherwise provided, a violation of this chapter shall not be punishable as an infraction or misdemeanor. No person alleged to have violated the provisions herein shall be subject to arrest except when otherwise permitted by law. (e) If an individual violates this chapter and is issued an administrative citation, that person is required to come into reasonably prompt compliance with this chapter. If a cited individual continues to operate unlawfully and/or fails to come into reasonably prompt compliance with this chapter, the individual may be issued a subsequent administrative citation on the same day, so long as at least one hour has passed between each administrative citation. (f) In order to facilitate the administration of this chapter, city enforcement staff is authorized to ask sidewalk vendors who are reasonably believed to be vending in violation of this chapter for Agenda Item 7.5 Page 116 of 308 10 9 6 8 their identification card, or other identifying information, and said individuals are required to provide such information to the requesting enforcement staff. (g) A person who is issued an administrative citation(s) may contest the citation subject to the requirements and procedures of Subsection 6A.16 of the Gilroy City Code. If the contest of the citation is successful, the hearing officer shall order the city to return the fee paid for contesting the citation. (h) The city shall also provide a person who receives a citation with a notice of their right to request an ability-to-pay determination and shall make available instructions or other materials for requesting an ability-to-pay determination. The person may request an ability-to-pay determination at any time before the assessed fine is paid, including while a judgment remains unpaid, when a case is delinquent, or when a fine has been referred to a comprehensive collection program. There shall be no charge for an ability-to-pay determination. (i) If the person meets the criteria described in subdivision (a) or (b) of Government Code Section 68632, the city shall accept, in full satisfaction, twenty percent of the fee assessed for an administrative citation imposed pursuant to this chapter. (j) The city may develop processes or regulations that would (1) allow for a person to complete community service in lieu of paying the total administrative fine; (2) provide for waivers of the administrative fine; or (3) provide for the offering of alternative dispositions. (k) Administrative citations issued under this section shall include the following notice: “You have a right to contest this citation within thirty (30) calendar days by completing a request for hearing form and returning it to the city clerk. If you do not contest the citation, you waive your right to contest it. You also have the right to request an ability-to-pay determination at any time before the assessed fine has been paid.” (l) Failure to pay the assessed fine issued pursuant to this section shall not be punishable as an infraction or misdemeanor. Additional fines, fees, assessments, or any other financial conditions beyond those authorized herein shall not be assessed for failure to pay an administrative citation fine. (m) No person shall willfully interfere with or obstruct any city code enforcement officer, community services officer, or police officer in their enforcement of the provisions of this chapter. Willful (1) failure to properly identify oneself done for the purpose of attempting to evade an administrative citation, and/or (2) interference with or obstruction of an impoundment authorized pursuant to Section 16B.10 shall constitute unlawful interference or obstruction under this subsection. Violation of this subsection is a misdemeanor. 16B.10 IMPOUNDMENT. (a) The city may impound vending devices, food, goods, and/or merchandise that: (1) Reasonably appear to be abandoned on public property; or (2) Are displayed, offered, or made available for rent or sale by a sidewalk vendor who (A) operates in violation of this chapter; and (B) refuses or fails to provide identification, as required by Section 16B.9 (f); and (C) refuses to remove their vending device, food for sale, Agenda Item 7.5 Page 117 of 308 11 9 6 8 and/or goods/merchandise for sale after being instructed to do so by a city enforcement official; or (3) Are displayed, offered, or made available for rent or sale by a sidewalk vendor who (A) does not possess a valid applicable sidewalk vending permit; and (B) also refuses to remove their vending device, food for sale, and/or goods/merchandise for sale after being instructed to do so by a city enforcement official; or (4) Is (A) creating an imminent and substantial safety or environmental hazard by the location of the vending device or the nature of the goods being offered for sale, and (B) refuses to remove their vending device, food for sale, and/or goods/merchandise for sale after being instructed to do so by a city enforcement official; or (5) Are displayed, offered, or made available for rent or sale by a sidewalk vendor who has, within a twenty-four-month period, been found responsible for violating this chapter four or more times. (b) The city may immediately dispose of impounded materials that are perishable or cannot be safely stored. (c) An aggrieved vendor may, within ten days, appeal the impoundment of their property by requesting an administrative hearing before a hearing officer appointed by the city pursuant to Subsection 6A. and if successful in their appeal, may have their property returned without paying an impound fee. The appeal hearing shall be conducted pursuant to the administrative enforcement hearing procedure contained in Chapter 6A., Article II of the Gilroy City Code. Any appeal fee paid by the sidewalk vendor shall be returned to the sidewalk vendor if they are successful on appeal. (d) An individual may recover impounded materials upon paying applicable impound fees and demonstrating proper proof of ownership. (e) The city council may by resolution adopt impound fees, which shall reflect the city’s enforcement, investigation, storage, and impound costs. (f) Any unclaimed items will be considered abandoned and forfeited to the city after ninety days following impoundment. Agenda Item 7.5 Page 118 of 308 Page 1 of 4 City of Gilroy STAFF REPORT Agenda Item Title:Award of Contract to Perkins & Will for the Preparation of ‘Basis of Design’ Documents for the Gilroy Ice Center, Approve a Contract Expenditure of $275,000, and Authorize City Administrator to Execute Final Agreement Meeting Date:August 21, 2023 From:Jimmy Forbis, City Administrator Department:Administration Submitted By:Karl Bjarke, Interim Public Works Director Prepared By:Karl Bjarke, Interim Public Works Director STRATEGIC PLAN GOALS Promote Economic Development Activities RECOMMENDATION Award a contract to Perkins & Will in the amount of $250,000 and approve an additional project contingency of $25,000 (10%) for a total amount of $275,000 for the preparation of ‘Basis of Design’ documents related to the Gilroy Ice Center project and authorize the City Administrator to make minor amendments as necessary to execute the contract and associated documents. EXECUTIVE SUMMARY The City is now positioned to move into the design phase of the Gilroy Ice Center (GIC). It has been decided that the project will be constructed utilizing the design-build form of contract. Under the design-build format, the City will award a contract to a qualified design/construction firm that has the dual role of designing the project and building it. The design-build method is suited for the GIC in that there is less risk of expensive change orders during construction, and the project will be completed sooner than it would under the more traditional design-then-build method. Before the City can solicit design-build proposals, however, it must first have Basis of Design documents prepared. Basis of Design documents are fundamental design parameters that become the basis of design for the selected design-build contracting team. Under the non- Agenda Item 8.1 Page 119 of 308 Award of Contract to Perkins & Will for the Preparation of 'Basis of Design' Documents for the Gilroy Ice Center and Approve a Contract Expenditure of $275,000 City of Gilroy City Council Page 2 of 4 August 21, 2023 binding term sheet between the City and Sharks Sports & Entertainment, LLC, it has been agreed that the architecture firm, Perkins & Will, will prepare the Basis of Design documents for the project. Sharks Sports & Entertainment and Perkins & Will have partnered together on similar projects in the past. It is recommended that the City hire Perkins & Will to prepare the Basis of Design documents. BACKGROUND This project constitutes phase III of the Gilroy Sports Park Master Plan, updated in 2019. The City then updated the 2002 Environmental Impact Report (EIR) via a Master Plan EIR Addendum. In June of 2022, the City and Sharks Sports & Entertainment, LLC (Sharks Sports) entered into a Non-Binding Term Sheet for an Operating Agreement for the proposed Gilroy Ice Center (GIC) to be located at the City’s Outdoor Sports Park. The GIC is proposed to be a 100,000-square-foot building with two indoor ice rinks, a restaurant, a snack bar, a pro shop, and other ancillary uses. The Term Sheet allows the City to build the facility and for Sharks Sports to operate it once completed. The City and Sharks Sports have agreed to move forward under three key elements for successfully completing the project (1) The method for constructing the facility will be by design-build, (2) Sharks Sports will be retained during the entire process to advise the City and to provide technical support, and (3) The firm Perkins & Will will be retained by the City to prepare the Basis of Design documents necessary for ensuring a facility that both the City and Sharks Sports are happy with. ANALYSIS As stated above, it is agreed that the appropriate method to build the GIC is design- build. This differs from the traditional design-then-build method of building facilities whereby the City would first hire a design consultant to prepare the final bid documents, followed by the City putting the project out to bid. Under design-build, one entity - a design/construction firm - prepares the design documents and builds the facility. It is a partnership where the design team works directly with the construction team through the completion of the project. This method brings the following benefits to the City: ✓Allows for a shorter construction period since construction can begin before the final design documents are completed. For example, the grading and foundation design will be accomplished before the final details of the interior of the building. ✓Reduces change order risk since the designer and builder are responsible for the final product. ✓The pre-qualification process that will be used to select the design-build firm helps ensure a high-quality facility. Once the design-build contract is let, the overall risk is shifted to the design-build team. However, this also means the City has less control over the ongoing design of the Agenda Item 8.1 Page 120 of 308 Award of Contract to Perkins & Will for the Preparation of 'Basis of Design' Documents for the Gilroy Ice Center and Approve a Contract Expenditure of $275,000 City of Gilroy City Council Page 3 of 4 August 21, 2023 project. This is where the Basis of Design comes into play. The Basis of Design documents conveys design/construction requirements to the design-build firms bidding on the project. They include a summary of the project definition, technical requirements, plans, project constraints, reference materials, and contractual requirements. The Basis of Design will allow both the City and Sharks Sports to ensure everything they need in the facility is provided. Once the Basis of Design documents are prepared, they will be used to assist in the pre-qualification process of design-build firms and will become incorporated into the contract with the chosen design-build firm. Normally, the City would use the Request for Proposals method for finding a Basis of a Design consulting firm. However, in the approved term sheet between the City and Sharks Sports, it was agreed that Perkins & Will would provide this service. Perkins & Will has proven expertise in the design of sports facilities and has partnered with Sharks Sports on other similar facilities in California. The City’s purchasing policy allows for the direct procurement of the services of Perkins & Will in this manner as a single source. The scope of services provided by Perkins & Will includes the preparation of Concept Design, Schematic Design, and Design Development as described in the attached agreement. The fee for said services is $250,000, as described in the attached agreement. Staff is also recommending a 10% contingency of $25,000 to be approved for this scope of services. It is recommended that the Council authorize the City Administrator to implement minor amendments (upon review from the City Attorney) to the agreement while maintaining the fee and term approved by the Council. Staff does not anticipate fully executing this contract until a consultant agreement between Sharks Sports and the City is completed and approved by Council at a future meeting. ALTERNATIVES Staff is proposing the services of Perkins & Will to comply with the terms of the agreement with Sharks Sports and to help complete the project in a timely and efficient manner. The Council could reject the proposal from Perkins & Will and direct staff to seek other firms through an RFP process. This will delay the overall process and may require the City to re-visit the agreement with the Sharks. FISCAL IMPACT/FUNDING SOURCE The Gilroy Ice Center project is in the adopted Capital Improvement Program (Project No. 800900) with funding from the Public Facilities Fund (440), Traffic Impact Fund (425), and bond proceeds. Expenditure for this scope of services will initially be funded by the Public Facilities Fund (440), with a 50% contribution from Sharks Sports, and will be 100% reimbursed from the future bond proceeds. A design fee of $250,000 was anticipated for the CIP project. Staff recommends an additional spending authority for Agenda Item 8.1 Page 121 of 308 Award of Contract to Perkins & Will for the Preparation of 'Basis of Design' Documents for the Gilroy Ice Center and Approve a Contract Expenditure of $275,000 City of Gilroy City Council Page 4 of 4 August 21, 2023 the City Administrator of $25,000 as a contingency should an unexpected design issue arise. PUBLIC OUTREACH Regarding this recommendation, there has been no public outreach aside from being included on the publicly posted agenda for this meeting. NEXT STEPS If the recommendation is approved, staff will execute the contract and have Perkins & Will begin the preparation of the Basis of Design documents. Once those are completed in approximately 22 weeks, the City will start the pre-qualification process to shortlist the number of design-build firms. Attachments: 1. Perkins & Will Agreement to prepare Basis of Design Documents Agenda Item 8.1 Page 122 of 308 -1- 4835-2267-0361v1 LAC\04706083 AGREEMENT FOR SERVICES (For contracts over $5,000 - CONTRACTOR) This AGREEMENT made this 21st day of August, 2023, between: CITY: City of Gilroy, having a principal place of business at 7351 Rosanna Street, Gilroy, California and CONTRACTOR: Perkins & Will, having a principal place of business at 475 Lincoln Street, Suite 100, Denver, CO 80203. ARTICLE 1. TERM OF AGREEMENT This Agreement will become effective on 8/21/2023 and will continue in effect through 8/31/2024 unless terminated in accordance with the provisions of Article 7 of this Agreement. Any lapse in insurance coverage as required by Article 5, Section D of this Agreement shall terminate this Agreement regardless of any other provision stated herein. ______ Initial ARTICLE 2. INDEPENDENT CONTRACTOR STATUS It is the express intention of the parties that CONTRACTOR is an independent contractor and not an employee, agent, joint venturer or partner of CITY. Nothing in this Agreement shall be interpreted or construed as creating or establishing the relationship of employer and employee between CITY and CONTRACTOR or any employee or agent of CONTRACTOR. Both parties acknowledge that CONTRACTOR is not an employee for state or federal tax purposes. CONTRACTOR shall not be entitled to any of the rights or benefits afforded to CITY’S employees, including, without limitation, disability or unemployment insurance, workers’ compensation, medical insurance, sick leave, retirement benefits or any other employment benefits. CONTRACTOR shall retain the right to perform services for others during the term of this Agreement. ARTICLE 3. SERVICES TO BE PERFORMED BY CONTRACTOR A.Specific Services CONTRACTOR agrees to: Perform the services as outlined in Exhibit “A” (“Specific Provisions”) and Exhibit “B” (“Scope of Services”), within the time periods described in Exhibit “C” (“Milestone Schedule”). B.Method of Performing Services CONTRACTOR shall determine the method, details and means of performing the above-described services. CITY shall have no right to, and shall not, control the manner or determine the method of accomplishing CONTRACTOR’S services. DRAFTAgenda Item 8.1 Page 123 of 308 -2- 4835-2267-0361v1 LAC\04706083 C. Employment of Assistants CONTRACTOR may, at the CONTRACTOR’S own expense, employ such assistants as CONTRACTOR deems necessary to perform the services required of CONTRACTOR by this Agreement, subject to the prohibition against assignment and subcontracting contained in Article 5 below. CITY may not control, direct, or supervise CONTRACTOR’S assistants in the performance of those services. CONTRACTOR assumes full and sole responsibility for the payment of all compensation and expenses of these assistants and for all state and federal income tax, unemployment insurance, Social Security, disability insurance and other applicable withholding. D. Place of Work CONTRACTOR shall perform the services required by this Agreement at any place or location and at such times as CONTRACTOR shall determine is necessary to properly and timely perform CONTRACTOR’S services. ARTICLE 4. COMPENSATION A. Consideration In consideration for the services to be performed by CONTRACTOR, CITY agrees to pay CONTRACTOR the amounts set forth in Exhibit “D” (“Payment Schedule”). In no event however shall the total compensation paid to CONTRACTOR exceed $250,000.00 . B. Invoices CONTRACTOR shall submit invoices for all services rendered. C. Payment Payment shall be due according to the payment schedule set forth in Exhibit “D”. No payment will be made unless CONTRACTOR has first provided City with a written receipt of invoice describing the work performed and any approved direct expenses (as provided for in Exhibit “A”, Section IV) incurred during the preceding period. If CITY objects to all or any portion of any invoice, CITY shall notify CONTRACTOR of the objection within thirty (30) days from receipt of the invoice, give reasons for the objection, and pay that portion of the invoice not in dispute. It shall not constitute a default or breach of this Agreement for CITY not to pay any invoiced amounts to which it has objected until the objection has been resolved by mutual agreement of the parties. D. Expenses CONTRACTOR shall be responsible for all costs and expenses incident to the performance of services for CITY, including but not limited to, all costs of equipment used or provided by CONTRACTOR, all fees, fines, licenses, bonds or taxes required of or imposed against CONTRACTOR and all other of CONTRACTOR’S costs of doing business. CITY shall not be responsible for any expenses incurred by CONTRACTOR in performing services for CITY, except for those expenses constituting “direct expenses” referenced on Exhibit “A.” DRAFTAgenda Item 8.1 Page 124 of 308 -3- 4835-2267-0361v1 LAC\04706083 ARTICLE 5. OBLIGATIONS OF CONTRACTOR A. Tools and Instrumentalities CONTRACTOR shall supply all tools and instrumentalities required to perform the services under this Agreement at its sole cost and expense. CONTRACTOR is not required to purchase or rent any tools, equipment or services from CITY. B. Workers’ Compensation CONTRACTOR agrees to provide workers’ compensation insurance for CONTRACTOR’S employees and agents and agrees to hold harmless, defend with counsel acceptable to CITY and indemnify CITY, its officers, representatives, agents and employees from and against any and all claims, suits, damages, costs, fees, demands, causes of action, losses, liabilities and expenses, including without limitation reasonable attorneys’ fees, arising out of any injury, disability, or death of any of CONTRACTOR’S employees. C. Indemnification of Liability, Duty to Defend 1. As to professional 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, to the extent arising or resulting directly or indirectly from any willful or negligent acts, errors or omissions 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. 2. As to other liability, to the fullest extent permitted by law, CONTRACTOR shall defend, through counsel approved by CITY (which approval shall not be unreasonably withheld), indemnify and hold harmless CITY, its officers, representatives, agents and employees against any and all suits, damages, costs, fees, claims, demands, causes of action, losses, liabilities and expenses, including without limitation attorneys’ fees, arising or resulting directly or indirectly from any act or omission of CONTRACTOR or CONTRACTOR’S assistants, employees or agents, including all claims relating to the injury or death of any person or damage to any property. D. Insurance In addition to any other obligations under this Agreement, CONTRACTOR shall, at no cost to CITY, obtain and maintain throughout the term of this Agreement: (a) Commercial Liability Insurance on a per occurrence basis, including coverage for owned and non-owned automobiles, with a minimum combined single limit coverage of $1,000,000 per occurrence for all damages due to bodily injury, sickness or disease, or death to any person, and damage to property, including the loss of use thereof; and (b) Professional Liability Insurance (Errors & Omissions) with a minimum coverage of $1,000,000 per occurrence or claim, and $2,000,000 aggregate; provided however, Professional Liability Insurance written on a claims made basis must comply with the requirements DRAFTAgenda Item 8.1 Page 125 of 308 -4- 4835-2267-0361v1 LAC\04706083 set forth below. Professional Liability Insurance written on a claims made basis (including without limitation the initial policy obtained and all subsequent policies purchased as renewals or replacements) must show the retroactive date, and the retroactive date must be before the earlier of the effective date of the contract or the beginning of the contract work. Claims made Professional Liability Insurance must be maintained, and written evidence of insurance must be provided, for at least five (5) years after the completion of the contract work. If claims made coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a retroactive date prior to the earlier of the effective date of the contract or the beginning of the contract work, CONTRACTOR must purchase so called “extended reporting” or “tail” coverage for a minimum of five (5) years after completion of work, which must also show a retroactive date that is before the earlier of the effective date of the contract or the beginning of the contract work. 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. E. Assignment Notwithstanding any other provision of this Agreement, neither this Agreement nor any duties or obligations of CONTRACTOR under this Agreement may be assigned or subcontracted by CONTRACTOR without the prior written consent of CITY, which CITY may withhold in its sole and absolute discretion. F. State and Federal Taxes As CONTRACTOR is not CITY’S employee, CONTRACTOR shall be responsible for paying all required state and federal taxes. Without limiting the foregoing, CONTRACTOR acknowledges and agrees that: • CITY will not withhold FICA (Social Security) from CONTRACTOR’S payments; • CITY will not make state or federal unemployment insurance contributions on CONTRACTOR’S behalf; • CITY will not withhold state or federal income tax from payment to CONTRACTOR; • CITY will not make disability insurance contributions on behalf of CONTRACTOR; • CITY will not obtain workers’ compensation insurance on behalf of CONTRACTOR. DRAFTAgenda Item 8.1 Page 126 of 308 -5- 4835-2267-0361v1 LAC\04706083 ARTICLE 6. OBLIGATIONS OF CITY A. Cooperation of City CITY agrees to respond to all reasonable requests of CONTRACTOR and provide access, at reasonable times following receipt by CITY of reasonable notice, to all documents reasonably necessary to the performance of CONTRACTOR’S duties under this Agreement. B. Assignment CITY may assign this Agreement or any duties or obligations thereunder to a successor governmental entity without the consent of CONTRACTOR. Such assignment shall not release CONTRACTOR from any of CONTRACTOR’S duties or obligations under this Agreement. ARTICLE 7. TERMINATION OF AGREEMENT A. Sale of CONTRACTOR’s Business/ Death of CONTRACTOR. CONTRACTOR shall notify CITY of the proposed sale of CONTRACTOR’s business no later than thirty (30) days prior to any such sale. CITY shall have the option of terminating this Agreement within thirty (30) days after receiving such notice of sale. Any such CITY termination pursuant to this Article 7.A shall be in writing and sent to the address for notices to CONTRACTOR set forth in Exhibit A, Subsection V.H., no later than thirty (30) days after CITY’ receipt of such notice of sale. If CONTRACTOR is an individual, this Agreement shall be deemed automatically terminated upon death of CONTRACTOR. B. Termination by City for Default of CONTRACTOR Should CONTRACTOR default in the performance of this Agreement or materially breach any of its provisions, CITY, at CITY’S option, may terminate this Agreement by giving written notification to CONTRACTOR. For the purposes of this section, material breach of this Agreement shall include, but not be limited to the following: 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 DRAFTAgenda Item 8.1 Page 127 of 308 -6- 4835-2267-0361v1 LAC\04706083 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. C. 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. D. 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. ARTICLE 8. GENERAL PROVISIONS A. Amendment & Modification No amendments, modifications, alterations or changes to the terms of this Agreement shall be effective unless and until made in a writing signed by both parties hereto. B. Americans with Disabilities Act of 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. C. Attorneys’ Fees If any action at law or in equity, including an action for declaratory relief, is brought to enforce or interpret the provisions of this Agreement, the prevailing party will be entitled to reasonable DRAFTAgenda Item 8.1 Page 128 of 308 -7- 4835-2267-0361v1 LAC\04706083 attorneys’ fees, which may be set by the court in the same action or in a separate action brought for that purpose, in addition to any other relief to which that party may be entitled. D. Captions The captions and headings of the various sections, paragraphs and subparagraphs of the Agreement are for convenience only and shall not be considered nor referred to for resolving questions of interpretation. E. Compliance with Laws The CONTRACTOR shall keep itself informed of all State and National laws and all municipal ordinances and regulations of the CITY which in any manner affect those engaged or employed in the work, or the materials used in the work, or which in any way affect the conduct of the work, and of all such orders and decrees of bodies or tribunals having any jurisdiction or authority over the same. Without limiting the foregoing, CONTRACTOR agrees to observe the provisions of the Municipal Code of the CITY OF GILROY, obligating every contractor or subcontractor under a contract or subcontract to the CITY OF GILROY for public works or for goods or services to refrain from discriminatory employment or subcontracting practices on the basis of the race, color, sex, religious creed, national origin, ancestry of any employee, applicant for employment, or any potential subcontractor. F. Conflict of Interest CONTRACTOR certifies that to the best of its knowledge, no CITY employee or office of any public agency interested in this Agreement has any pecuniary interest in the business of CONTRACTOR and that no person associated with CONTRACTOR has any interest that would constitute a conflict of interest in any manner or degree as to the execution or performance of this Agreement. G. Entire Agreement This Agreement supersedes any and all prior agreements, whether oral or written, between the parties hereto with respect to the rendering of services by CONTRACTOR for CITY and contains all the covenants and agreements between the parties with respect to the rendering of such services in any manner whatsoever. Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein, and that no other agreement, statement or promise not contained in this Agreement shall be valid or binding. No other agreements or conversation with any officer, agent or employee of CITY prior to execution of this Agreement shall affect or modify any of the 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. DRAFTAgenda Item 8.1 Page 129 of 308 -8- 4835-2267-0361v1 LAC\04706083 H. Governing Law and Venue This Agreement shall be governed by and construed in accordance with the laws of the State of California without regard to the conflict of laws provisions of any jurisdiction. The exclusive jurisdiction and venue with respect to any and all disputes arising hereunder shall be in state and federal courts located in Santa Clara County, California. I. Notices Any notice to be given hereunder by either party to the other may be effected either by personal delivery in writing or by mail, registered or certified, postage prepaid with return receipt requested. Mailed notices shall be addressed to the parties at the addresses appearing in Exhibit “A”, Section V.H. but each party may change the address by written notice in accordance with this paragraph. Notices delivered personally will be deemed delivered as of actual receipt; mailed notices will be deemed delivered as of three (3) days after mailing. J. Partial Invalidity If any provision in this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions will nevertheless continue in full force without being impaired or invalidated in any way. K. Time of the Essence All dates and times referred to in this Agreement are of the essence. L. Waiver CONTRACTOR agrees that waiver by CITY of any one or more of the conditions of performance under this Agreement shall not be construed as waiver(s) of any other condition of performance under this Agreement. Executed at Gilroy, California, on the date and year first above written. CONTRACTOR: CITY: Perkins & Will CITY OF GILROY By: By: Name: Joseph T. Dyer AIA Name: Jimmy Forbis Title: Associate Principal Title: City Administrator Social Security or Taxpayer Identification Number DRAFTAgenda Item 8.1 Page 130 of 308 -9- 4835-2267-0361v1 LAC\04706083 Approved as to Form ATTEST: City Attorney City Clerk DRAFTAgenda Item 8.1 Page 131 of 308 -1- 4835-2267-0361v1 LAC\04706083 EXHIBIT “A” SPECIFIC PROVISIONS I. 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 Joseph T. Dyer, 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. II. NOTICE TO PROCEED/COMPLETION OF SERVICE A. NOTICE TO PROCEED CONTRACTOR shall commence the Services upon delivery to CONTRACTOR of a written “Notice to Proceed”, which Notice to Proceed shall be in the form of a written communication from designated City contact person(s). Notice to Proceed may be in the form of e-mail, fax or letter authorizing commencement of the Services. For purposes of this Agreement, Karl Bjarke 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”. B. COMPLETION OF SERVICES When CITY determines that CONTRACTOR has completed all of the Services in accordance with the terms of this Agreement, CITY shall give CONTRACTOR written Notice of Final Acceptance, and CONTRACTOR shall not incur any further costs hereunder. CONTRACTOR may request this determination of completion when, in its opinion, it has completed all of the Services as required by the terms of this Agreement and, if so requested, CITY shall make this determination within two (2) weeks of such request, or if CITY determines that CONTRACTOR has not completed all of such Services as required by this Agreement, CITY shall so inform CONTRACTOR within this two (2) week period. III. PROGRESS SCHEDULE The schedule for performance and completion of the Services will be as set forth in the attached Exhibit “C”. IV. PAYMENT OF FEES AND DIRECT EXPENSES Payments shall be made to CONTRACTOR as provided for in Article 4 of this Agreement. DRAFTAgenda Item 8.1 Page 132 of 308 -2- 4835-2267-0361v1 LAC\04706083 Direct expenses are charges and fees not included in Exhibit “B”. CITY shall be obligated to pay only for those direct expenses which have been previously approved in writing by CITY. CONTRACTOR shall obtain written approval from CITY prior to incurring or billing of direct expenses. Copies of pertinent financial records, including invoices, will be included with the submission of billing(s) for all direct expenses. V. OTHER PROVISIONS A. STANDARD OF WORKMANSHIP CONTRACTOR represents and warrants that it has the qualifications, skills and licenses necessary to perform the Services, and its duties and obligations, expressed and implied, contained herein, and CITY expressly relies upon CONTRACTOR’S representations and warranties regarding its skills, qualifications and licenses. CONTRACTOR shall perform such Services and duties in conformance to and consistent with the standards generally recognized 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, checked and having the maker and checker identified. The minimum standard of appearance, organization and content of the drawings shall be that used by CITY for similar purposes. B. RESPONSIBILITY OF CONTRACTOR CONTRACTOR shall be responsible for the professional quality, technical accuracy, and the coordination of the Services furnished by it under this Agreement. CONTRACTOR shall not be responsible for the accuracy of any project or technical information provided by the CITY. The CITY’S review, acceptance or payment for any of the Services shall not be construed to operate as a waiver of any rights under this Agreement or of any cause of action arising out of the performance of this Agreement, and CONTRACTOR shall be and remain liable to CITY in accordance with applicable law for all damages to CITY caused by CONTRACTOR’S negligent performance of any of the services furnished under this Agreement. C. 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. DRAFTAgenda Item 8.1 Page 133 of 308 -3- 4835-2267-0361v1 LAC\04706083 D. CONFIDENTIALITY OF MATERIAL All ideas, memoranda, specifications, plans, manufacturing procedures, data (including, but not limited to, computer data and source code), drawings, descriptions, documents, discussions or other information developed or received by or for CONTRACTOR and all other written and oral information developed or received by or for CONTRACTOR and all other written and oral information submitted to CONTRACTOR in connection with the performance of this Agreement shall be held confidential by CONTRACTOR and shall not, without the prior written consent of CITY, be used for any purposes other than the performance of the Services, nor be disclosed to an entity not connected with the performance of the such Services. Nothing furnished to CONTRACTOR which is otherwise known to CONTRACTOR or is or becomes generally known to the related industry (other than that which becomes generally known as the result of CONTRACTOR’S disclosure thereof) shall be deemed confidential. CONTRACTOR shall not use 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. E. 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. F. OWNERSHIP OF MATERIAL. All material including, but not limited to, computer information, data and source code, sketches, tracings, drawings, plans, diagrams, quantities, estimates, specifications, proposals, tests, maps, calculations, photographs, reports and other material developed, collected, prepared (or caused to be prepared) under this Agreement shall be the property of CITY, but CONTRACTOR may retain and use copies thereof subject to Section V.D of this Exhibit “A”. CITY shall not be limited in any way in its use of said material at any time for any work, whether or not associated with the City project for which the Services are performed. However, CONTRACTOR shall not be responsible for, and City shall indemnify CONTRACTOR from, damages resulting from the use of said material for work other than PROJECT, including, but not limited to, the release of this material to third parties for work other than on PROJECT. G. NO THIRD PARTY BENEFICIARY. This Agreement shall not be construed or deemed to be an agreement for the benefit of any third party or parties, and no third party or parties shall have any claim or right of action hereunder for any cause whatsoever. DRAFTAgenda Item 8.1 Page 134 of 308 -4- 4835-2267-0361v1 LAC\04706083 H. NOTICES. Notices are to be sent as follows: CITY: Attn: Karl Bjarke City of Gilroy 7351 Rosanna Street Gilroy, CA 95020 CONTRACTOR: Joseph T. Dyer Perkins & Will 475 Lincoln Street, Suite 100 Denver, CO 80203 I. FEDERAL FUNDING REQUIREMENTS. If the box to the left of this sentence is checked, this Agreement involves federal funding and the requirements of this Section V.I. apply. If the box to the left of this sentence is checked, this Agreement does not involve federal funding and the requirements of this Section V.I. do not apply. 1. DBE Program CONTRACTOR shall comply with the requirements of Title 49, Part 26, Code of Federal Regulations (49 CFR 26) and the City-adopted Disadvantaged Business Enterprise programs. 2. Cost Principles Federal Acquisition Regulations in Title 48, CFR 31, shall be used to determine the allowable cost for individual items. 3. 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. DRAFTAgenda Item 8.1 Page 135 of 308 -1- 4835-2267-0361v1 LAC\04706083 EXHIBIT “B” SCOPE OF SERVICES DRAFTAgenda Item 8.1 Page 136 of 308 DRAFTAgenda Item 8.1 Page 137 of 308 DRAFTAgenda Item 8.1 Page 138 of 308 DRAFTAgenda Item 8.1 Page 139 of 308 DRAFTAgenda Item 8.1 Page 140 of 308 -1- 4835-2267-0361v1 LAC\04706083 EXHIBIT “C” MILESTONE SCHEDULE Design Schedule Assumptions: a. Concept Design 4 weeks b. Schematic Design 6 weeks c. Design Development 8 weeks d. Transition Period 4 weeks e. Total Duration 22 weeks DRAFTAgenda Item 8.1 Page 141 of 308 4835-2267-0361v1 LAC\04706083 EXHIBIT “D” PAYMENT SCHEDULE DRAFTAgenda Item 8.1 Page 142 of 308 DRAFTAgenda Item 8.1 Page 143 of 308 DRAFTAgenda Item 8.1 Page 144 of 308 Page 1 of 2 City of Gilroy STAFF REPORT Agenda Item Title:Selection and Appointment of Youth Commission Members Meeting Date:August 21, 2023 From:Jimmy Forbis, City Administrator Department:City Clerk Submitted By:Thai Nam Pham, City Clerk Prepared By:Thai Nam Pham, City Clerk STRATEGIC PLAN GOALS Not Applicable RECOMMENDATION Review the applications and interviews from the candidates and proceed with the formal appointment of suitable candidates to the vacant positions within the Youth Commission. BACKGROUND On August 7, 2023, the Council interviewed candidates for the Youth Commission. These interviews aimed to fill the following: •One (1) seat expiring on September 30, 2024. This was previously held by Commissioner James Dinh, who tendered his resignation on July 6, 2023. •Five (5) seats, each with a term ending September 30, 2025. The breakdown of these is as follows: o Two (2) are currently occupied by Commissioners Lavender Hwang and Aiden Francis, both of whom have reapplied. These positions will become vacant starting October 1, 2023. o Three (3) previously held by Commissioners Issac Hwang, Alexis Miller, and Ezequiel Lopez, who resigned on August 8, 2023, August 1, 2023, and August 7, 2023, respectively. These seats will have a term starting on August 21, 2023. Agenda Item 10.1 Page 145 of 308 Selection and Appointment of Youth Commission Members City of Gilroy City Council Page 2 of 2 August 21, 2023 During the recruitment window, applications were received from Crystal Garcia Pablo, Kuber Sihra, Chad Knauss, and Lavender Hwang (an incumbent). Post the September 21, 2023 application deadline, an additional five applications were submitted by Maya Beyret, Zara Ting-Tee, Thanmay Sarath, Aiden Francis (an incumbent), and Saed Mustafa. At the regular meeting on August 7, 2023, the Council interviewed all applicants except for Aiden Francis. The Council is now poised to consider these individuals for appointment to the Youth Commission. Attachments: 1. Application – Crystal Garica Pablo 2. Application – Kuber Sihra 3. Application – Chad Knauss 4. Application – Lavender Hwang 5. Application – Maya Beyret 6. Application – Zara Ting-Tee 7. Application – Thanmay Sarath 8. Application – Aiden Francis 9. Application – Saed Mustafa Agenda Item 10.1 Page 146 of 308 Youth Commission Application - Crystal Garcia Pablo Page 1 of 2 City of Gilroy Board, Committee, & Commission Application All Commission, Board, and Committee applications are a public record. Board/Committee/Commission of Interest:Youth Commission Name:Crystal Garcia Pablo Phone number(s): email address*: Are you a registered voter within the City limits? No Physical Address*: Driver’s License or ID No.: Date of Birth*: Last 4 of SSN: List your qualifications for this appointment: I possess a range of qualifications that make me well-suited for this position. My strong public speaking and communication skills allow me to effectively engage with adults and peers when seeking assistance or sharing ideas, a skill set I have practiced through my involvement in other boards and committees. I have a genuine openness to new ideas and enjoy collaborating with others, valuing the diverse perspectives they bring. In addition, I have expertise in social media management, graphic design for creating flyers, and spreading awareness through various channels. I am also skilled in editing and own a camera, which I frequently use to capture images for other boards and events. Furthermore, I have expertise in website creation and maintenance, ensuring a strong online presence for the board or committee. Together, these qualifications, like public speaking, communication, social media, graphic design, photography, and website development, make me a well-rounded and capable candidate for this position. List any service to the community including any prior appointments: I have dedicated my time to volunteering at events organized by the Gilroy Youth Commission, such as Dia de los Niños and the Christmas drive. Additionally, I played a role in reintroducing Girls Who Code to the Gilroy Library, where we successfully conducted 6-8 week coding programs for young girls, having 28 girls. As a member of Gilroy's Teen Advisory Board for the library, I manage social media, capture event photos, and collaborate with my peers to plan engaging activities. Furthermore, I actively contribute as a member of the YMCA Youth Board, where we work collectively to organize events for YMCA youth and raise funds for Power School and also the yearly toy drive during Christmas. Within my school, I tutor underclassmen and participate in various clubs, including the Women Empowerment STEM Club as treasurer, the Interact Club, and the Culture Club. Beyond the community and school, I am also involved with WriteCause, an organization that addresses global issues and amplifies the voices of teenagers. As the marketing director. Agenda Item 10.1 Page 147 of 308 Youth Commission Application - Crystal Garcia Pablo Page 2 of 2 What are your goals while serving on this Board/Commission/Committee? I am eager to join the Gilroy Youth Commission and actively contribute to the community, making a significant impact. One thing I truly enjoy is collaborating with a team to share our ideas with the community. Supporting and uplifting our community by working together with others is a genuine passion of mine, and being a member of this board would provide me with the perfect platform to create a meaningful difference. I am enthusiastic about the opportunity to work with a team and collectively contribute to the improvement of our community through teamwork. I aim to represent the youth in our community and also raise awareness and participation in various events. Additionally, I hope to coordinate with my team to generate more opportunities and raise funds for the youth in our community. Why are you the most qualified to serve on this Board/Commission/Committee? I am highly qualified to serve on this Board/Commission/Committee due to my extensive leadership experience, both within the community and my school. I have demonstrated my ability to take charge and effectively communicate my ideas. Additionally, I have actively engaged with the public and sought assistance from various organizations such as YMCA, the Gilroy Library, and the Morgan Hill Library. My passion for the community is unwavering, and I genuinely believe that I can bring valuable contributions to this board. I am confident in my ability to engage with people, secure funding, and raise awareness, which are essential for the success of the Youth Commission. With my dedication and drive, I am eager to demonstrate the power and potential of the youth within the Gilroy community. * I just wanted to clarify that I lived in Gilroy for my whole life (El Roble Elementary, Luigi Aprea Elementary, Brownell Middle School) but I just recently moved this year to San Juan and truly want to continue to be apart of Gilroy's community. By clicking on this box, I declare under penalty of perjury that I am currently a registered voter within the City limits of the City of Gilroy. Furthermore, I understand that this application and any attachments are subject to disclosure under the Public Records Act and must complete mandatory Open Government Ordinance Training. I further understand that members of the Planning Commission, Building Boards of Appeals, and Physically Challenged Board of Appeals are also subject to filing the Fair Political Practice Commission’s Statement of Economic Interest Form 700 relating to financial disclosures. Agenda Item 10.1 Page 148 of 308 Youth Commission Application - Kuber Sihra Page 1 of 2 City of Gilroy Board, Committee, & Commission Application All Commission, Board, and Committee applications are a public record. Board/Committee/Commission of Interest:Youth Commission Name:Kuber Sihra Phone number(s): email address*: Are you a registered voter within the City limits? No Physical Address*: Driver’s License or ID No.: Date of Birth*: Last 4 of SSN: List your qualifications for this appointment: I have a great sense of leadership and teamwork, as well as a sense of creativity and being a helpful person in general overall which would be helpful when doing these tasks within the youth commission such as planning and organizing. List any service to the community including any prior appointments: I have volunteered tutoring kids at the CIEL center the past years and have also volunteered for backpack drives in Morgan Hill. What are your goals while serving on this Board/Commission/Committee? My goals are to be helpful when planning and organizing as well as be supportive to new ideas. My goals are also to help either improve or continue events in the City of Gilroy upon the youth commission. Why are you the most qualified to serve on this Board/Commission/Committee? My sense of teamwork, planning, and organizing all would make me the most qualified to serve for the youth commission. This would mean I am open to all ideas that the rest of the commission would agree to do together. My sense of teamwork, planning, and organizing would also be helpful as a whole when doing these events. Agenda Item 10.1 Page 149 of 308 Youth Commission Application - Kuber Sihra Page 2 of 2 By clicking on this box, I declare under penalty of perjury that I am currently a registered voter within the City limits of the City of Gilroy. Furthermore, I understand that this application and any attachments are subject to disclosure under the Public Records Act and must complete mandatory Open Government Ordinance Training. I further understand that members of the Planning Commission, Building Boards of Appeals, and Physically Challenged Board of Appeals are also subject to filing the Fair Political Practice Commission’s Statement of Economic Interest Form 700 relating to financial disclosures. Agenda Item 10.1 Page 150 of 308 Youth Commission Application - Chad Knauss Page 1 of 2 City of Gilroy Board, Committee, & Commission Application All Commission, Board, and Committee applications are a public record. Board/Committee/Commission of Interest:Youth Commission Name:Chad Knauss Phone number(s): email address*: Are you a registered voter within the City limits? No Physical Address*: Driver’s License or ID No.: Date of Birth*: Last 4 of SSN: List your qualifications for this appointment: I applied for and was selected by the Junior High faculty at my school to be a member of our student Campus Leadership Team. As a member, I served for two years. The goal of the Campus Leadership Team was to improve student morale for sixth, seventh and eighth graders and to act as a liaison between students and faculty. Some of my duties included mentoring incoming sixth graders, meeting with small groups monthly so that they felt comfortable throughout their first year of junior high. I was also involved in planning, budgeting and executing school events to foster student sprit throughout the school year. This included our Fall Festival, Cultural Fair, Christmas Rally, Summer Extravaganza and more. As part of the student leadership team, we also raised funds to distribute to local charities and homeless shelters. List any service to the community including any prior appointments: We moved to Gilroy in 2020 and unfortunately, COVID limited my ability to get involved in city events, but I am eager to get involved now. What are your goals while serving on this Board/Commission/Committee? I would like to be appointed to the Gilroy Youth Commission because I want to contribute to the betterment of my community. I believe in the power of youth voices and want to make a positive impact on the issues that affect the youth in our city. Civic engagement is extremely important to me and having an opportunity to serve on the Youth Commission and make a difference within my city truly excites me. Why are you the most qualified to serve on this Board/Commission/Committee? Being a two year member of my junior high Campus Leadership Team has given me an opportunity to find creative ways to improve student morale for over 700 students. I was part of Agenda Item 10.1 Page 151 of 308 Youth Commission Application - Chad Knauss Page 2 of 2 a small leadership team that planned, budgeted and executed student led events and activities while also raising funds for local charities. I have a passion for, and closely follow, local, state, and federal government. My personal goal is to be civically engaged throughout high school and to pursue a degree in political science in college and continue to be involved in government at some level thereafter. By clicking on this box, I declare under penalty of perjury that I am currently a registered voter within the City limits of the City of Gilroy. Furthermore, I understand that this application and any attachments are subject to disclosure under the Public Records Act and must complete mandatory Open Government Ordinance Training. I further understand that members of the Planning Commission, Building Boards of Appeals, and Physically Challenged Board of Appeals are also subject to filing the Fair Political Practice Commission’s Statement of Economic Interest Form 700 relating to financial disclosures. Agenda Item 10.1 Page 152 of 308 Youth Commission Application - Lavender Hwang Page 1 of 2 City of Gilroy Board, Committee, & Commission Application All Commission, Board, and Committee applications are a public record. Board/Committee/Commission of Interest: Youth Commission Name: Lavender Hwang Phone number(s): email address*: Are you a registered voter within the City limits? No Physical Address*: Driver’s License or ID No.: Date of Birth*: Last 4 of SSN: List your qualifications for this appointment: Served as Youth Commision member for last two years (2021-2023 term) •Served as Youth Commission Chair for last year (2022-2023 term) •Leadership and public speaking skills •Extensive experience with teamwork and collaboration List any service to the community including any prior appointments: Served on Youth Commission (2021-2023) •Founded club at Gilroy Library teaching STEM to young girls 2022-2023) •Completed over 200+ community service hours locally What are your goals while serving on this Board/Commission/Committee? I hope to continue implementing the projects that we proposed last year and have planned for this year such as a teen resource fair to foster youth engagement within the community and make local opportunities more accessible to teenagers. My primary goals are projects that emphasize making a lasting impact, as well as increased accessibility to resources and solutions for the local youth. Why are you the most qualified to serve on this Board/Commission/Committee? I have served on the Youth Commision for the last two years, where I have familiarized myself with the Brown Law under which we operate, as well as the programs and events we plan and coordinate. I believe, as a returning member, I have the knowledge and experience to offer insight to incoming members while still collaborating in a team effort to plan projects and events that serve the youth of our community. By clicking on this box, I declare under penalty of perjury that I am currently a registered voter within the City limits of the City of Gilroy. Furthermore, I understand that this application and any attachments are subject to disclosure under the Public Records Act and Agenda Item 10.1 Page 153 of 308 Youth Commission Application - Lavender Hwang Page 2 of 2 must complete mandatory Open Government Ordinance Training. I further understand that members of the Planning Commission, Building Boards of Appeals, and Physically Challenged Board of Appeals are also subject to filing the Fair Political Practice Commission’s Statement of Economic Interest Form 700 relating to financial disclosures. Agenda Item 10.1 Page 154 of 308 Youth Commission Application - Maya Beyret Page 1 of 2 City of Gilroy Board, Committee, & Commission Application All Commission, Board, and Committee applications are a public record. Board/Committee/Commission of Interest:Youth Commission Name:Maya Beyret Phone number(s): email address*: Are you a registered voter within the City limits? No Physical Address*: Driver’s License or ID No.: Date of Birth*: Last 4 of SSN: List your qualifications for this appointment: My qualifications for becoming a part of the Youth Commission are organizational, communication, and teamwork skills. These three skills make me qualified for the Youth Commission because they help create a productive environment in which problems can be resolved. List any service to the community including any prior appointments: I've volunteered within the Gilroy community on multiple occasions. most notably, I've volunteered for the downtown activities last summer and a few times throughout the school year last year. I've also participated as a tutor for the Academic & Wellness Center for over a year. Not only was I able to be more involved in our Gilroy community through these two endeavors, but I was able to make an impact of numerous people's lives. What are your goals while serving on this Board/Commission/Committee? I have a few goals while serving on the Youth Commission. I hope to be a valuable member of this group by providing accurate and helpful feedback about the youth in Gilroy. I also hope to encourage other people my age to be more involved in our tight-knit community. Being more involved would help everyone become more connected and create a safer, more welcoming environment in our city. Why are you the most qualified to serve on this Board/Commission/Committee? I am most qualified to serve on Youth Commission because of my past and current experiences. Being a part of Youth Commission requires good communication skills which I have gained from both taking a class in that specific area and also enacting those skills into my job. Currently, I work at Gilroy Gardens in the Admissions department which tends to receive various complaints Agenda Item 10.1 Page 155 of 308 Youth Commission Application - Maya Beyret Page 2 of 2 throughout the day from guests. It is my job (and all of those whom work with me) to communicate back to the guests in a calm and respectful manner the appropriate information. This makes me most qualified to serve on the Youth Commission because in a similar way, I will listen to any specific youth issues that occur in our community and respond accordingly. School: Dr. Tj Owens Gilroy Early College Academy / Grade: 11th By clicking on this box, I declare under penalty of perjury that I am currently a registered voter within the City limits of the City of Gilroy. Furthermore, I understand that this application and any attachments are subject to disclosure under the Public Records Act and must complete mandatory Open Government Ordinance Training. I further understand that members of the Planning Commission, Building Boards of Appeals, and Physically Challenged Board of Appeals are also subject to filing the Fair Political Practice Commission’s Statement of Economic Interest Form 700 relating to financial disclosures. Agenda Item 10.1 Page 156 of 308 Youth Commission Application - Zara Ting-Tee Page 1 of 2 City of Gilroy Board, Committee, & Commission Application All Commission, Board, and Committee applications are a public record. Board/Committee/Commission of Interest:Youth Commission Name:Zara Ting-Tee Phone number(s): email address*: Are you a registered voter within the City limits? No Physical Address*: Driver’s License or ID No.: Date of Birth*: Last 4 of SSN: List your qualifications for this appointment: My qualifications for this appointment are the following: 1) In 2022, I worked as a mentor in the STAR Arts Education program here in Gilroy. I was a part of the pioneer crew for the infamous Oak Tree Garden, which belonged to the Ohlone people for centuries. I was absolutely honored to share this rich history with the youth of the program. I worked with Mrs. Marilyn Cardinali to guide the students and introduce the children through the powerful concept of theater. Prior to this, I was also a part of STAR's podcasting class, in which I worked with Mr. Ethan Chargin to later help create a video to promote the new musical Puff's to other youth and expose them to the wonders of being in a community based musical. 2) As a Junior Olympic Gymnast from 2015 through 2020, I helped coach young and aspiring gymnasts who were interested in being a part of the competitive team. I absolutely loved teaching and guiding these junior gymnasts to embody the life and skills of a competitive gymnast. Some of these junior gymnasts have joined the team and have given back their knowledge to the community by being great role models and excellent leaders. 3) I have volunteered at various elementary/middle schools across Gilroy. I have also went back to mentor and give a presentation to upcoming middle-schoolers in my previous fifth grade GATE class in Rucker Elementary. I gave them honest and significant advice on the transition from elementary to middle school and the transition from middle school to high school. I was incredibly honored to stand in place of those who had done the same for me. 4) I was actively involved in Gavilan's Science Alive Gallery and really enjoyed assisting the middle schoolers in finding their passions in science and math. It was so fun to watch the kids experience real science and to watch their amazement. My wish is for these students to gain the knowledge and eventually contribute their expertise to our city. 5) In my middle schools years, I was passionately involved as a member of the Kindness Club ran by Ms. Fortino (Brownell), in which we would visit Wheeler Manor to brings smiles to the senior community and visit the local shelters to care for our city's animals. It brought a lot of happiness and contentment to be involved in such a positive motion for our Gilroy community. 6) During COVID, I made personal cards to all the seniors at Wheeler Manor. My yearning to be a part of the community during the Agenda Item 10.1 Page 157 of 308 Youth Commission Application - Zara Ting-Tee Page 2 of 2 pandemic, has given me the opportunity to bring a little smile and joy to the senior residents during the unfortunate lockdown period. I was delighted to be a part of this while also being able to recruit other youth to do the same. 7) I am always open and active in GECA's student body. I consistently participate in school events and provide advice and ideas for the members of the student council to promote a healthy and inclusive environment in our GECA community. List any service to the community including any prior appointments: I was a mentor at STAR Arts and also helped promote the arts and sciences to youth in both the STAR and Science Alive programs. I am a frequent volunteer to schools across Gilroy and enjoy introducing others to being active in the amazing Gilroy community. What are your goals while serving on this Board/Commission/Committee? While serving on this Board/Commission/Committee, my main goal is to allow the youth community in Gilroy to understand and feel that they have a voice and role in our community. I also hope to encourage people to get more involved in the community itself, and I hope to be able to provide affective advice to help the board and city in any way I can. Throughout my life, I had been a recipient from very kind people in Gilroy, so now, I want to give back to our city and to the wonderful people in it. Why are you the most qualified to serve on this Board/Commission/Committee? I am a person who loves analyzing problems and finding solutions to them, in both large or more private situations. I have a huge interest to how the world works through trial and error and changes, so that is why I took multiple sociology classes, in the past year, in Gavilan College to better understand the functioning of societies. I am a great listener and have public speaking skills that I've gained through speeches, theater, and Poetry Out Loud. I enjoy voicing my honest opinion and working as a team to acknowledge issues and create greater opportunities for others. After the many mentors I've had through the years, such as police officers, librarians, school counselors/teachers, and even running non-profits, I believe I have a strong understanding of community and will make a conscientious effort to be an effective member of the Gilroy City Youth Committee. School: Dr. TJ Owen's Gilroy Early College Academy / Grade: 10th By clicking on this box, I declare under penalty of perjury that I am currently a registered voter within the City limits of the City of Gilroy. Furthermore, I understand that this application and any attachments are subject to disclosure under the Public Records Act and must complete mandatory Open Government Ordinance Training. I further understand that members of the Planning Commission, Building Boards of Appeals, and Physically Challenged Board of Appeals are also subject to filing the Fair Political Practice Commission’s Statement of Economic Interest Form 700 relating to financial disclosures. Agenda Item 10.1 Page 158 of 308 Youth Commission Application - Thanmay Sarath Page 1 of 3 City of Gilroy Board, Committee, & Commission Application All Commission, Board, and Committee applications are a public record. Board/Committee/Commission of Interest: Youth Commission Name: Thanmay Sarath Phone number(s): email address*: Are you a registered voter within the City limits? No Physical Address*: 9591 Hummingbird Ln Driver’s License or ID No.: Date of Birth*: Last 4 of SSN: List your qualifications for this appointment: Advanced Academic Achievement: Completed High School Geometry in 7th grade and High School Algebra 2 Honors in 8th grade, showcasing dedication and strong academic performance. Continuous Learning: Currently enrolled in a High School History course during the summer break to further enhance knowledge and education. Artistic Accomplishments: Recognized as the Youngest Artist in the Bay Area and featured in ABC News and various local channels. Conducted numerous Solo Art exhibits throughout the Bay Area and received commendation from the City of Milpitas. Intellectual Aptitude: A member of the American Mensa society, demonstrating critical thinking skills and an eagerness for intellectual exchange. Programming Skills: Proficient in multiple programming languages, including HTML, CSS, JavaScript, Java, Python, and NodeJS. Developed web applications for reputable organizations like Geeknasium, Koalasoft, and DonerSiliconValley. Community Engagement: Volunteer at Gilroy Veterans Memorials, running the Vets and Tech program to assist veterans with technology, showcasing commitment to community service. Entrepreneurial Spirit: Founded Garlic Shield, organizing cybersecurity seminars for kids and the elderly, and provided free vulnerability scans and penetration tests to local vendors, displaying leadership and initiative. Covid Initiatives: Developed applications like BasicSupply.us to monitor local grocery levels and LonelyList.com to list free online events globally, contributing to the community during the Covid pandemic. Fundraising Experience: Successfully organized and raised $45,000 through a fundraiser for Kerala flooding relief in 2018, exhibiting fundraising skills for charitable causes. Diverse Interests: Enthusiast of various hobbies, including dirt biking, MX Racing, machine building, and archery (Compound Free Style), showing a well-rounded personality and interests. List any service to the community including any prior appointments: Volunteer at Gilroy Veterans Memorials (January 2023 - Present): Run the Vets and Tech program, providing technology assistance and support to veterans. Founder, Garlic Shield (2021-2023): Organized cybersecurity seminars for kids and the elderly, promoting cyber awareness and safety. Provided free vulnerability scans and penetration tests to local vendors to enhance cybersecurity measures. Developed BasicSupply.us (2019): Created an application during Covid to monitor local grocery levels, facilitating easy navigation for shoppers. Enabled shoppers to update the grocery list, providing real-time information to assist others in their shopping needs. Developed LonelyList.com (2019): Developed an application during Covid to list free online events worldwide, encouraging global collaboration and engagement. Fundraiser Agenda Item 10.1 Page 159 of 308 Youth Commission Application - Thanmay Sarath Page 2 of 3 for Kerala Flooding Relief (2018): Successfully organized a fundraiser during the Kerala flooding in 2018, raising $45,000 for charity to aid relief efforts. 99Bridges Summer Intern (Summer 2020): Assisted in setting up Edge Devices and installing custom OS on the devices to support the organization's initiatives. What are your goals while serving on this Board/Commission/Committee? While serving on the City of Gilroy Youth Commission, my goals are centered on making a meaningful and positive impact on the youth and the community. I aim to bring a fresh perspective and a proactive approach to address the needs and concerns of young individuals in Gilroy. My goals include: Youth Empowerment: To advocate for the empowerment of youth in Gilroy, ensuring that their voices are heard, valued, and considered in decision-making processes that directly impact their lives. Community Engagement: To actively engage with the local youth community, encouraging their participation and involvement in civic activities, events, and initiatives. Education and Opportunities: To promote educational opportunities and support initiatives that enhance academic success, career exploration, and personal growth among the youth of Gilroy. Mental Health and Well-being: To focus on mental health awareness and resources, striving to create a supportive environment for youth facing mental health challenges. Diversity and Inclusion: To champion diversity and inclusion efforts, advocating for a welcoming and inclusive community where all youth feel accepted and celebrated. Youth Programs and Activities: To work with other commissioners and community leaders to develop and support various programs, events, and activities that cater to the interests and needs of the youth. Safety and Security: To prioritize the safety of the youth by collaborating with local authorities and organizations to address any safety concerns and promote a secure environment. Bridging the Generation Gap: To foster understanding and collaboration between different generations, promoting mutual respect and cooperation in the community. Environmental Awareness: To promote environmental awareness and sustainable practices among the youth, encouraging their active involvement in protecting and preserving the environment. Collaboration and Partnerships: To collaborate with various stakeholders, schools, non-profit organizations, and local businesses to create a unified effort in supporting the well-being and growth of the youth. By achieving these goals, I aspire to contribute to a vibrant and thriving community, where the youth of Gilroy can confidently face the challenges and opportunities that lie ahead. Through active engagement and dedicated service on the Youth Commission, I aim to represent the best interests of the youth and contribute positively to the overall development of our city. Why are you the most qualified to serve on this Board/Commission/Committee? I believe I am most qualified to serve on the City of Gilroy Youth Commission due to a combination of my diverse experiences, passion for community engagement, and dedication to making a positive impact on the lives of young individuals in Gilroy. Leadership and Initiative: As an accomplished artist, web developer, and founder of community initiatives such as Garlic Shield, BasicSupply.us, and LonelyList.com, I have demonstrated leadership, creativity, and initiative. These experiences have equipped me with problem- solving skills and the ability to drive meaningful projects to fruition. Academic Excellence: Completing High School Geometry in 7th grade and High School Algebra 2 Honors in 8th grade exemplifies my commitment to academic excellence and a thirst for knowledge. I believe in applying this same drive and dedication to serving on the Youth Commission. Strong Communication Skills: My experience as an artist, programmer, and public speaker has honed my communication skills, enabling me to effectively convey ideas, advocate for causes, and engage with individuals from diverse backgrounds. Community Service: Through volunteering at Gilroy Veterans Memorials and running the Vets and Tech program, I have demonstrated a genuine commitment to giving back to my community. I have also organized fundraisers and contributed to Kerala flooding relief efforts, showcasing a dedication to helping those in need. Entrepreneurial Spirit: Founding Garlic Shield and creating applications during Covid reflects my entrepreneurial spirit and willingness to take on challenges to benefit the community. Technological Expertise: My proficiency in various programming languages and web development skills will enable me to contribute to the commission's initiatives related to technology and digital engagement. Youth Perspective: As a member of the youth community myself, I understand the unique challenges and aspirations of young individuals. This perspective will allow me to represent the youth effectively and advocate for their needs. Collaborative Approach: I believe in the power of collaboration and am eager to work alongside other commissioners and community stakeholders to achieve common goals. Dedication to Inclusion: My passion for diversity and inclusion will ensure that all voices, regardless of background or identity, are heard and represented Agenda Item 10.1 Page 160 of 308 Youth Commission Application - Thanmay Sarath Page 3 of 3 on the commission. Vision for a Better Future: Above all, I have a strong vision for a more vibrant and supportive community, and I am eager to contribute my skills and dedication to bring about positive change for the youth of Gilroy. I am confident that my qualifications and dedication make me the ideal candidate to serve on the City of Gilroy Youth Commission and contribute effectively to the betterment of our community. School: / Grade: null By clicking on this box, I declare under penalty of perjury that I am currently a registered voter within the City limits of the City of Gilroy. Furthermore, I understand that this application and any attachments are subject to disclosure under the Public Records Act and must complete mandatory Open Government Ordinance Training. I further understand that members of the Planning Commission, Building Boards of Appeals, and Physically Challenged Board of Appeals are also subject to filing the Fair Political Practice Commission’s Statement of Economic Interest Form 700 relating to financial disclosures. Agenda Item 10.1 Page 161 of 308 Youth Commission Application - Aiden Francis Page 1 of 2 City of Gilroy Board, Committee, & Commission Application *All Commission, Board, and Committee applications are a public record. Board/Committee/Commission of Interest: Youth Commission Name: Aiden Francis Phone number(s): Mobile - email address*: Are you a registered voter within the City limits? No Physical Address*: Driver’s License or ID No.: Date of Birth*: Last 4 of SSN: List your qualifications for this appointment: Served as a youth commissioner for the past two years. I have been the youth commission treasurer for the past six months. List any service to the community including any prior appointments: I have been on the youth commission for the past two years. I also regularly volunteer at second harvest of Silicon Valley. I also volunteer at my high school. What are your goals while serving on this Board/Commission/Committee? my goal while serving on the Youth Commission is to increase our footprint on the Gilroy community. In these past two years, the youth commission has been suffering from a lack of applicants, and a lack of impact on the community. My goal is to increase this impact by implementing ideas and events that we have thought of, but not yet put into action. Why are you the most qualified to serve on this Board/Commission/Committee? I am most qualified to serve on the Gilroy Youth Commission, because I understand the issues affecting the youth of Gilroy. As a highschooler, I see both the mental and environmental issues that affect all students like drugs, mental health, gun violence, and bullying. Through my knowledge of these problems, I am able to be empathetic and lend a helping hand to those who are in need of help. School: / Grade: null ☐ By clicking on this box, I declare under penalty of perjury that I am currently a registered voter within the City limits of the City of Gilroy. Furthermore, I understand that this application and any attachments are subject to disclosure under the Public Records Act and must complete mandatory Open Government Ordinance Training. I furt her understand that Agenda Item 10.1 Page 162 of 308 Youth Commission Application - Aiden Francis Page 2 of 2 members of the Planning Commission, Building Boards of Appeals, and Physically Challenged Board of Appeals are also subject to filing the Fair Political Practice Commission’s Statement of Economic Interest Form 700 relating to financial disclosures. Agenda Item 10.1 Page 163 of 308 Youth Commission Application - Saed Mustafa Page 1 of 2 City of Gilroy Board, Committee, & Commission Application *All Commission, Board, and Committee applications are a public record. Board/Committee/Commission of Interest:Youth Commission Name:Saed Mustafa Phone number(s): Mobile - email address*: Are you a registered voter within the City limits? No Physical Address*: Driver’s License or ID No.: Date of Birth*: Last 4 of SSN: List your qualifications for this appointment: I have been playing football for a little over 11 years I maintain a hard work ethic by going to the gym 5 times a week After football season I do 7on7 for an athletic organization called Xios which goes through multiple seasons I run track I am a member of the following clubs at my highschool: NHS(National Honor Society),NAHS(National Arts Honor Society), Asu (Asian student union), CSF( California Scholarship Federation ), Academic future club, young life club, fishing club , finance club, and business club) I am the President of the beginners baking club the biggest club on campus Some of my keys skills consist of the following : Quick thinker, Money skills, Adapt well, understanding, leader, good with customers, can speak publically, learn quickly, good under pressure, and I am dedicated to what I do). Technologically literate in word, google suite, and social medias Fluent in the computer languages(python and java) Fluent in Spanish language and can understand multiple other languages List any service to the community including any prior appointments: Community Service Experience Dates of 2022-2024 Help kids at the church with their faith Serve as a leader and role model to younger students. Collaborate with community leaders to advocate for youth needs and ideas at church I used to volunteer at gilroy gardens almost every weekend and received 16 hours of community service hours a weekend earning a whopping 2,000 dollars for the NHS(National honors society ) I volunteered at jeff garcia camps to help kids with their football skills which were located at Gilroy high I volunteered at Christopher high girls volleyball games through out their season 60+ community service hours What are your goals while serving on this Board/Commission/Committee? If I were given the opportunity to serve on the committee my immediate instinct would be to bring about a sense of change in the community, a change that would have an affect for a years Agenda Item 10.1 Page 164 of 308 Youth Commission Application - Saed Mustafa Page 2 of 2 to come , this would include inspiring the rest of the members to do great things and do the best we can to give back to the community and take care of it after all that’s it been to us . Why are you the most qualified to serve on this Board/Commission/Committee? I believe that I am most qualified to serve for the comities not only because I was born and raised in Gilroy and know it like the back of my hand but because I am also willing to do the above and beyond for my community to give back for what it has done for me . Thank you very much and I hope you accept my application 🙌. ☐ By clicking on this box, I declare under penalty of perjury that I am currently a registered voter within the City limits of the City of Gilroy. Furthermore, I understand that this application and any attachments are subject to disclosure under the Public Records Act and must complete mandatory Open Government Ordinance Training. I further understand that members of the Planning Commission, Building Boards of Appeals, and Physically Challenged Board of Appeals are also subject to filing the Fair Political Practice Commission’s Statement of Economic Interest Form 700 relating to financial disclosures. Agenda Item 10.1 Page 165 of 308 Page 1 of 4 City of Gilroy STAFF REPORT Agenda Item Title:Introduction of an Ordinance of the City of Gilroy Amending Section 2.13 of the Gilroy City Code to Modify the Regular Meeting Schedule of the City Council Meeting Date:August 21, 2023 From:Jimmy Forbis, City Administrator Department:City Clerk Submitted By:Thai Nam Pham, City Clerk Prepared By:Thai Nam Pham, City Clerk STRATEGIC PLAN GOALS Not Applicable 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 2 relating to the Regular Meeting Schedule of the City Council. EXECUTIVE SUMMARY This staff report presents a revised ordinance amendment for the City Council's consideration. The proposed amendment is based on the Council's direction provided at the August 7, 2023, City Council meeting. The revision addresses the timing of regular City Council meetings for the months of July and December. Specifically, the proposed amendment stipulates that the regular City Council meeting in July is moved to the last Monday of the month and that the City Council meeting in December be held on the second Monday of the month. The rationale behind moving the July meeting is to offer a designated legislative recess during the summer months, allowing for a more substantial break for all stakeholders. This break recognizes the historically lower attendance during the summer season, Agenda Item 10.2 Page 166 of 308 Introduction of an Ordinance of the City of Gilroy Amending Section 2.13 of the Gilroy City Code to Modify the Regular Meeting Schedule of the City Council City of Gilroy City Council Page 2 of 4 August 21, 2023 making it an opportune time for Council members and staff to take vacations and for the community to enjoy a break. The change aligns with practices observed in other cities and ensures that Council convenes in July when necessary. The proposed changes aim to accommodate the needs of the City while adhering to the City Charter's requirements. BACKGROUND The City of Gilroy currently holds regular City Council meetings on the first and third Mondays of each month, as outlined in Section 2.13(a) of the Gilroy City Code. The Council has recognized the need to modify the meeting schedule, particularly in December, due to the timing of installing newly elected council members following the certification of election results by the Santa Clara County Registrar of Voters (ROV). Initially, Staff recommended that Council introduce the ordinance with the following changes (the previous staff report is attached as a reference): •No regular meetings for the month of July; and •One regular meeting in December scheduled for the second Monday of the month. However, the City Charter mandates at least one regular meeting each month, which necessitated further evaluation of the proposed ordinance's feasibility. As a result, staff asked Council to refrain from proceeding with the introduction of the proposed ordinance. Instead, staff sought additional direction from the Council to address the Charter's requirements while still pursuing the goal of providing a more extended legislative recess during the summer months. The revised ordinance now aims to strike a balance between these considerations, aligning with the Council's direction while respecting the Charter's stipulations. ANALYSIS The proposed ordinance amends Section 2.13(a) of the Gilroy City Code to establish the regular City Council meeting in December on the second Monday of the month and to move the regular City Council meeting in July to the last Monday of the month. The amended ordinance reads as follows (additions are bolded and italicized, and removals are redlined and strikethrough): 2.13 Regular meetings. (a) Time. Regular meetings of the City Council shall be held on the first and third Mondays of each month at 6:00 p.m. Whenever the day fixed for any regular meeting of the Council falls upon a day designated by law as a legal or national holiday, such meeting shall be held at the same hour on the next Monday. If said Monday is also a legal or national holiday, the Council meeting shall be held on the next weekday not a holiday following Agenda Item 10.2 Page 167 of 308 Introduction of an Ordinance of the City of Gilroy Amending Section 2.13 of the Gilroy City Code to Modify the Regular Meeting Schedule of the City Council City of Gilroy City Council Page 3 of 4 August 21, 2023 said Monday. Notwithstanding the above, at least one regular council meeting shall be held in July. The date of the first regular meeting shall be held on the first day of July not a holiday and excluding Friday, Saturday or Sunday. In July, there shall be at least one regular meeting of the council, held on the last Monday of the month at 6:00 p.m. If the last Monday of July is a legal or national holiday, the meeting shall be held on the immediately preceding weekday that is not a holiday or a Friday. In December, there shall be at least one regular meeting of the council, held on the second Monday of the month at 6:00 p.m. If the second Monday of December is a legal or national holiday, the meeting shall be held on the next weekday not a holiday. This amendment aims to provide a more suitable timeframe for the installation of newly elected council members in December and accommodates the holiday season while adhering to the City Charter. Additionally, the proposed changes resonate with the Council's objective of offering an extended summer recess, providing council members, staff, and the public an opportunity to benefit from a more substantial break during the summer months. ALTERNATIVES The Council may choose to approve, modify, or reject the proposed ordinance. Any modifications to the ordinance will require a new introduction and first reading. FISCAL IMPACT/FUNDING SOURCE The proposed ordinance does not entail direct financial or operational implications for the City of Gilroy. It primarily addresses procedural matters to enhance the scheduling of regular City Council meetings. PUBLIC OUTREACH Public outreach efforts were conducted regarding the proposed amendment. The outreach activities included posting the proposed ordinance on the City's official website, accessible to the general public. NEXT STEPS Should Council introduce the proposed ordinance, Council will need to adopt it at the next regular meeting. Once adopted, staff will update the Gilroy City Code and prepare the 2024 meeting schedule. Agenda Item 10.2 Page 168 of 308 Introduction of an Ordinance of the City of Gilroy Amending Section 2.13 of the Gilroy City Code to Modify the Regular Meeting Schedule of the City Council City of Gilroy City Council Page 4 of 4 August 21, 2023 Attachments: 1. Proposed Ordinance 2. August 7, 2023 Staff Report Agenda Item 10.2 Page 169 of 308 ORDINANCE NO. 2023-XX AN ORDINANCE OF THE CITY OF GILROY AMENDING SECTION 2.13 OF THE GILROY CITY CODE TO MODIFY THE REGULAR MEETING SCHEDULE OF THE CITY COUNCIL WHEREAS, the City of Gilroy currently holds regular meetings on the first and third Mondays of each month, as specified in Section 2.13(a) of the Gilroy City Code; and WHEREAS, it is deemed necessary and in the best interest of the City to modify the City Code to establish the regular City Council meeting in December on the second Monday of the month; and WHEREAS, it is further deemed necessary and in the City's best interest to move the regular City Council meeting for July to the last Monday of the month. 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. SECTION II Section 2.13(a) of the Gilroy City Code shall be amended as follows: Time. Regular meetings of the city council shall be held on the first and third Mondays of each month at 6:00 p.m. Whenever the day fixed for any regular meeting of the council falls upon a day designated by law as a legal or national holiday, such meeting shall be held at the same hour on the next Monday. If said Monday is also a legal or national holiday, the council meeting shall be held on the next weekday not a holiday following said Monday. In July, there shall be at least one regular meeting of the council, held on the last Monday of the month at 6:00 p.m. If the last Monday of July is a legal or national holiday, the meeting shall be held on the immediately preceding weekday that is not a holiday or a Friday. In December, there shall be at least one regular meeting of the council, held on the second Monday of the month at 6:00 p.m. If the second Monday of December is a legal or national holiday, the meeting shall be held on the next weekday not a holiday. SECTION III 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 Agenda Item 10.2 Page 170 of 308 Ordinance No. 2023-XX Amending City Council Regular Meetings City Council Regular Meeting | August 21, 2023 Page 2 of 2 9 6 3 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 IV This Ordinance shall take effect thirty (30) days after its adoption. The City Clerk is hereby directed to publish this Ordinance or a summary thereof pursuant to Government Code Section 36933. PASSED AND ADOPTED this 11th day of September 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 Agenda Item 10.2 Page 171 of 308 Page 1 of 4 City of Gilroy STAFF REPORT Agenda Item Title:Introduction of an Ordinance of the City of Gilroy Amending Section 2.13 of the Gilroy City Code to Modify the Regular Meeting Schedule of the City Council Meeting Date:August 7, 2023 From:Jimmy Forbis, City Administrator Department:City Clerk Submitted By:Thai Nam Pham, City Clerk Prepared By:Thai Nam Pham, City Clerk STRATEGIC PLAN GOALS Not Applicable 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 2 relating to the Regular Meeting Schedule of the City Council. EXECUTIVE SUMMARY This staff report proposes an amendment to Section 2.13 of the Gilroy City Code regarding regular meetings of the City Council. The purpose of this amendment is to address two items: 1) the removal of regular meetings for the month of July; and 2) timing of installing newly elected council members following the certification of election results by the Santa Clara County Registrar of Voters (ROV). Historically, the City of Gilroy attempts to install newly elected council members during the first meeting of December. However, due to the ROV's certification timeline, this installation has been missed in recent years. To rectify this issue and ensure Agenda Item 10.2 Page 172 of 308 Introduction of an Ordinance of the City of Gilroy Amending Section 2.13 of the Gilroy City Code to Modify the Regular Meeting Schedule of the City Council City of Gilroy City Council Page 2 of 4 August 7, 2023 compliance with the City Charter, it is recommended to modify the City Code to have only one regular meeting in December, scheduled on the second Monday of the month. BACKGROUND The Registrar of Voters is responsible for certifying election results within thirty days from the date of the election. In the past, the ROV has typically been able to provide the certification of the election before the first City Council meeting, allowing the City of Gilroy to install newly elected council members during the first meeting of December. However, in the recent municipal election held on November 8, 2022, the ROV certified the results on December 8, 2022, missing the December 5, 2022 Regular Meeting. This delay in certification caused the City to be unable to install the newly elected council members as scheduled. Looking ahead, next year's General Municipal Election is scheduled for November 5, 2024. Based on experience and the fact that it is a presidential election year, it is anticipated that the ROV will require the full thirty-day period to certify the general election results. Consequently, the certification date for the general election is expected to fall on December 5, 2024, which would again result in the City missing the December 2, 2024 City Council Regular Meeting for the installation of newly elected council members. Furthermore, the City Charter, specifically Section 402, outlines the term of office for the Mayor and City Council members. According to this section, elected officials assume office after the first regular meeting following the certification of the City Council election. Therefore, it is crucial to ensure that the installation of newly elected members aligns with the City Charter's requirements. Given these circumstances, it is necessary to amend the City Code to address the timing of installing newly elected council members following the certification of election results by the ROV. By modifying the regular meeting schedule to have the first regular meeting in December scheduled on the second Monday of the month, the City can ensure compliance with the City Charter and provide a more suitable timeframe for installing newly elected council members. ANALYSIS To address the challenges mentioned above, it is proposed to amend Section 2.13(a) of the Gilroy City Code as follows (additions are bolded and italicized, and removals are strikethrough): 2.13 Regular meetings. (a) Time. Regular meetings of the City Council shall be held on the first and third Mondays of each month at 6:00 p.m. Whenever the day fixed for any regular meeting of the council falls upon a day designated by law as a legal or national holiday, such meeting shall be held at the same hour on Agenda Item 10.2 Page 173 of 308 Introduction of an Ordinance of the City of Gilroy Amending Section 2.13 of the Gilroy City Code to Modify the Regular Meeting Schedule of the City Council City of Gilroy City Council Page 3 of 4 August 7, 2023 the next Monday. If said Monday is also a legal or national holiday, the council meeting shall be held on the next weekday not a holiday following said Monday. Notwithstanding the above, at least one regular council meeting shall be held in July. The date of the first regular meeting shall be held on the first day of July not a holiday and excluding Friday, Saturday or Sunday. No regular council meetings shall be held in the month of July. Special meetings may be scheduled during the same month by the Council as needed. Notwithstanding the above, at least one regular meeting shall be held in December. The regular meeting in December shall be held on the second Monday of the month at 6:00 p.m. This amendment does two things: 1. It enables the City to have a designated summer recess from the 2nd meeting of June until the 1st meeting in August, providing an opportunity for council members, staff, and the community to enjoy a longer break during the summer season. This recess period allows for more efficient use of resources and acknowledges the historically lower attendance during the summer months. In addition, these changes ensure clarity allowing the Council to convene in July when necessary. Otherwise known as a ”Legislative Recess,” this break is common in many cities. 2. It codifies the City's current practice of having one regular meeting in December and canceling the second regular meeting. Formalizing this practice into the City Code ensures that there is only one regular meeting in December, providing council members, staff, and the community an opportunity to observe the holiday season. Furthermore, this amendment aligns with the requirements of the City Charter by allowing for the installation of newly elected members after the first regular meeting following the certification of the City Council election. ALTERNATIVES Council may choose to reject or modify the ordinance. Should Council determine to modify the proposed ordinance, the introduction process would be restarted with a new introduction and first reading. FISCAL IMPACT/FUNDING SOURCE The proposed amendment to the City Code does not have any direct financial or operational implications for the City of Gilroy. It primarily addresses procedural matters to ensure compliance with the City Charter and streamlines the installation of newly elected council members. Agenda Item 10.2 Page 174 of 308 Introduction of an Ordinance of the City of Gilroy Amending Section 2.13 of the Gilroy City Code to Modify the Regular Meeting Schedule of the City Council City of Gilroy City Council Page 4 of 4 August 7, 2023 PUBLIC OUTREACH Public outreach efforts were conducted regarding the proposed amendment. The outreach activities included: •Publication in the Gilroy Dispatch: On July 28, 2023, the proposed amendment was publicized in the Gilroy Dispatch. •City's Website: The proposed amendment was also posted on the City's official website, accessible to the general public. NEXT STEPS Should Council approve the introduction of the proposed ordinance at this meeting, Council will need to adopt it at its regular meeting on August 21, 2023. Once adopted, staff will update the Gilroy City Code and prepare the 2024 meeting schedule. Attachments: 1. Proposed Ordinance Agenda Item 10.2 Page 175 of 308 Page 1 of 10 City of Gilroy STAFF REPORT Agenda Item Title:Presentation of the Comprehensive Water and Wastewater Utilities Rate Study; Adoption of a Resolution Commencing the Proposition 218 Noticing Process, and Setting October 16, 2023, as the Date for the Public Hearing to Adopt Water and Wastewater Rates Meeting Date:August 21, 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 Maintain and Improve City Infrastructure RECOMMENDATION 1. Receive report; and 2. Adopt a resolution: a. declaring intent to adjust water and wastewater rates; b. commencing the Proposition 218 noticing process; and c. Setting October 16, 2023, as the date for the Public Hearing to adopt the new proposed water and wastewater rates. EXECUTIVE SUMMARY The City engaged a consultant, NBS Government Finance Group, to conduct a Comprehensive Water and Wastewater Rate Study (Rate Study) with several objectives, including meeting revenue requirements, reviewing rising costs of providing services, funding capital improvements and change in costs, and complying with specific legal requirements, such as Proposition 218 which requires that rates not exceed the cost of providing the service and be proportionate to the cost of providing service to all customers. The City’s goal is to ensure both utilities maintain adequate Agenda Item 11.1 Page 176 of 308 Presentation of the Comprehensive Water and Wastewater Utilities Rate Study; Adoption of a Resolution Commencing the Proposition 218 Noticing Process, and Setting October 16, 2023, as the Date for the Public Hearing to Adopt Water and Wastewater Rates City of Gilroy City Council Page 2 of 10 August 21, 2023 funding for operational and capital costs, reasonable reserves, and revenue stability in the utility rates. The Rate Study has yielded that both utilities will need to establish multi-year rate adjustments to continue investing in the critical infrastructure and keep pace with the rising operating costs. The overall rate adjustments (as a percentage) necessary for both utilities for a five-year period are as follows: FY24*FY25 FY26 FY27 FY28 Water 8%8%6%4%4% Wastewater 4%4%4%4%4% *First-year adjustments will vary for each customer based on their customer classification, as the cost-of-service analysis has been updated to reallocate costs recovered between customer classes. Staff recommend the City Council accept the Rate Study report, authorize the commencement of the required Proposition 218 Noticing requirements, and set October 16, 2023, as the date for the Public Hearing to adopt the new proposed water and wastewater rates. If approved, the proposed rates for FY24 will become effective on January 1, 2024, and annually on January 1 for subsequent fiscal years thereafter. BACKGROUND As a full-service City, Gilroy owns and operates its own water and wastewater utilities, providing services to over 15,000 customers and growing. To ensure both utilities collect revenue sufficient to meet the growing demand, keep pace with the rising operational costs, and fund the multi-year capital improvement plans, the City has conducted a utilities' rate study. The last utility rate study was completed in 2015, and the City has kept its water and wastewater rates the same since 2019. The City's operational costs for the water utility continue to increase due to inflationary cost increases for materials/services, electricity, and continued increases in water extraction charges from Valley Water. Statewide conservation efforts enacted in recent years due to the droughts also impacted the revenues collected as the City was mandated to reduce water consumption. In 2021, the City issued wastewater revenue bonds to finance the City's share (approximately $50 million) of the $86 million expansion of the South County Regional Wastewater Authority (SCRWA) plant due to be complete in 2025. In addition to the annual debt payment requirements, the City's cost for the wastewater utility is also expected to increase for its share of the treatment plant expense as the expansion becomes operational and state mandates require additional compliance. In April 2023, the City approved the updated Water and Wastewater Master Plans. The Plans assess utility systems against the desired level of service and identify infrastructure improvements needed to fix existing systems' deficiencies and service growth. The plans collectively identified over $50.3 million in new improvements, of which $21.7 million is for existing users (ratepayers) and $28.6 million for future developments. Agenda Item 11.1 Page 177 of 308 Presentation of the Comprehensive Water and Wastewater Utilities Rate Study; Adoption of a Resolution Commencing the Proposition 218 Noticing Process, and Setting October 16, 2023, as the Date for the Public Hearing to Adopt Water and Wastewater Rates City of Gilroy City Council Page 3 of 10 August 21, 2023 For the City to continue investing in critical utilities' infrastructure and keep pace with rising operational costs, the City needs to establish multi-year rate adjustments. ANALYSIS A comprehensive rate study, such as the one City initiated, typically includes three components and is intended to follow industry standards: 1. Financial Plan – compares the current sources and uses of the funds and determines the revenue needed from rates and project rate adjustments. The net revenue requirement is the amount of rate revenue required to fund operations, capital improvement (including debt service), and reserves. As current rates fall short of that net revenue requirement, rate adjustments are typically warranted. 2. Cost-of-Service Analysis – An analysis that classifies expenses and allocates costs to different customer classes in a fair and equitable manner. These classifications include commodity, capacity, and customer service-related costs. 3. Rate Design Analysis – An analysis of the rate structure which considers the relationship between fixed (personnel, debt service, etc.) and variable costs (purchased water, electricity, etc.) to be recovered. Most rate structures contain a fixed, or a minimum, charge in combination with a volumetric charge. Ideally, utilities should recover all their fixed costs from fixed charges and all their variable costs from volumetric charges. The Rate Study is attached to this staff report. The below sections highlight notable changes within respective utilities and the recommended rate adjustments for the next five-year period. Water Utility and Rates Financial Plan •The Rate Study determined that the projected net revenue requirements for the water system range annually from $15.9 million in Fiscal Year 2023-24 (FY24) to $18.8 million in FY28. Without rate adjustments, the water utility is projected to have a gap in the net revenue requirement of approximately $2.0 million in FY24, increasing to $3.9 million by FY28. •Reserves: o The operating reserve is recommended to equal six months of operating and maintenance expenses, which is approximately $8.2 million in FY24. An operating reserve is intended to promote financial viability in the event of any short-term fluctuation in revenues and/or expenditures, such as those caused by weather patterns and variability in demand-based revenues (volumetric charges). o The capital rehabilitation/replacement reserve is recommended to be equal to 50% of the average annual capital improvement costs over the five-year period. The five-year average is approximately $8.2 million, with Agenda Item 11.1 Page 178 of 308 Presentation of the Comprehensive Water and Wastewater Utilities Rate Study; Adoption of a Resolution Commencing the Proposition 218 Noticing Process, and Setting October 16, 2023, as the Date for the Public Hearing to Adopt Water and Wastewater Rates City of Gilroy City Council Page 4 of 10 August 21, 2023 the recommended annual reserve being approximately $4.1 million. This reserve is intended to be a cash resource set aside to address long-term capital system replacement and rehabilitation needs. o The water utility is projected to meet the total recommended operating and capital reserve target during the five-year period, FY24 through FY28. •Capital improvement Projects: The water system has approximately $41 million in planned capital expenditures over the next five years, an average of $8.2 million annually. The City has accumulated fund balances programmed to be utilized for the capital improvement program. The Rate Study assumes the City will need to issue approximately $16 million in revenue bonds in the latter years of the five-year period. However, whether the new debt will be required will depend on the actual delivery of capital projects (i.e., the timing and costs) in the current budget cycle. Cost-of-Service and Rate Design Analysis •The City currently charges residential and non‐residential customers a monthly fixed water charge, also known as a base charge, based on meter size. In addition to a fixed monthly charge, all customers pay a variable charge, also known as volumetric rate, per 1,000 gallons consumed, consisting of two rate tiers of consumption (under and above 30,000 gallons) and three different pump pressure zones. •The City’s current rates collect revenue in proportions of approximately 30% fixed and 70% variable. The cost-of-service analysis determined the actual cost distribution of the fixed and variable costs to approximately 40% fixed and 60% variable. The current rate design is not reflective of the actual cost distribution; thus, a change in the water utility rate structure is recommended to align with the actual distribution. For comparison purposes, the Rate Study also evaluated the current rate structure (30%/70%), and it is presented as an alternative 2 in the study. •The City’s current variable (volumetric) charge consists of two rate tiers of consumption (under and above 30,000 gallons) and three different pump pressure zones. Given that the City receives its water supply from a single source, it is recommended that the City transition to a uniform tier for all customers. Water Rate Adjustments The table below outlines the current and proposed water rates for FY24 through FY28. It is important to note that since the last rate study in 2015, factors such as the number of meters and consumption of each customer class have changed. The cost-of-service analysis rebalances the allocation based on these factors, including the shift to 40% fixed and 60% variable proportions. As a result, there is an uneven adjustment in the first year. In subsequent years, the proposed charges are adjusted by the proposed percentage increases in total rate revenue needed for the net revenue requirement. Agenda Item 11.1 Page 179 of 308 Presentation of the Comprehensive Water and Wastewater Utilities Rate Study; Adoption of a Resolution Commencing the Proposition 218 Noticing Process, and Setting October 16, 2023, as the Date for the Public Hearing to Adopt Water and Wastewater Rates City of Gilroy City Council Page 5 of 10 August 21, 2023 Note: The proposed rates for FY23/24 will be implemented on January 1, 2024, and annually on January 1 for subsequent fiscal years thereafter Impact on Water Bills The Rate Study also compares the current and proposed water rates on the customer bills. The following two charts illustrate a five-year comparison of the average monthly water bill impact for a single-family residential and commercial customer. Based on an average of 8,300 gallons monthly consumption for single-family residential, the water bill will increase from the current $55.68/month to $62.29/month in the first year and $77.12/month by FY28. Agenda Item 11.1 Page 180 of 308 Presentation of the Comprehensive Water and Wastewater Utilities Rate Study; Adoption of a Resolution Commencing the Proposition 218 Noticing Process, and Setting October 16, 2023, as the Date for the Public Hearing to Adopt Water and Wastewater Rates City of Gilroy City Council Page 6 of 10 August 21, 2023 Based on an average of 32,000 gallons of monthly consumption for commercial customers, the water bill will decrease from the current $152.01/month to $148.80/month in the first year and subsequently increase annually to $184.24/month by FY28. The change in the first year is attributed to the shift in rate design to align with the actual 60% fixed and 40% variable distribution. Wastewater Utility and Rates Financial Plan •The Rate Study determined that the projected net revenue requirements for the wastewater system range annually from $13.1 million in Fiscal Year 2023-24 (FY24) to $17.1 million in FY28. Without rate adjustments, the wastewater utility is projected to have a gap in the net revenue requirement of approximately $0.3 million in FY24, increasing to $2.7 million by FY28, and would struggle to meet its debt service coverage requirements on the existing 2021A sewer revenue bonds. •Reserves: o The operating reserve is recommended to equal six months of operating and maintenance expenses, which is approximately $6.8 million in FY24. An operating reserve is intended to promote financial viability in the event of any short-term fluctuation in revenues and/or expenditures, such as those caused by weather patterns and variability in demand-based revenues (volumetric charges) or costs of wastewater treatment. o The capital rehabilitation/replacement reserve is recommended to be equal to 50% of the average annual capital improvement costs over the five-year period. The five-year average is approximately $8.8 million, with Agenda Item 11.1 Page 181 of 308 Presentation of the Comprehensive Water and Wastewater Utilities Rate Study; Adoption of a Resolution Commencing the Proposition 218 Noticing Process, and Setting October 16, 2023, as the Date for the Public Hearing to Adopt Water and Wastewater Rates City of Gilroy City Council Page 7 of 10 August 21, 2023 the recommended annual reserve being approximately $4.4 million. This reserve is intended to be a cash resource set aside to address long-term capital system replacement and rehabilitation needs. o The wastewater utility is projected to meet the total recommended operating and capital reserve target during the five-year period, FY24 through FY28, as well as the debt service coverage ratio required by the 2021A bond covenants. •Capital improvement Projects: The wastewater system has an average of $8.8 million annually in planned capital expenditures over the next five years. The City has accumulated fund balances and bond proceeds (SCRWA Expansion Project) that are programmed to be utilized for the capital improvement program. Thus, the rate increases required for the wastewater utility are less than those needed for the water utility. Cost-of-Service and Rate Design Analysis •Currently, the wastewater utility’s residential customers are charged a fixed monthly charge, and non-residential customers are charged a fixed monthly charge and a volumetric charge. The non-residential fixed monthly charge is based on City’s wastewater monitoring and pretreatment program costs and is determined by the use of the facility. Similarly, the non-residential variable charge is based on the strength category (low to high), also determined by the use of the facility, which takes into account the biochemical oxygen demand (BOD) and total suspended solids (TSS) in accordance with industry standards. o Low Strength (example: offices, schools, retail, and department stores) o Domestic Strength (example: hotel/motel, auto dealers, service stations, and beauty shops) o Medium Strength (example: commercial laundries, multi-use facilities, and hotels with restaurants) o High Strength (example: food processors/manufacturers, restaurants, grocery stores, etc.) •It is recommended that the wastewater utility maintain the existing rate design, which utilizes the wastewater strengths for various customer types based on State Water Resources Control Boards’ guidelines, and it provides consistency and continuity for the customers. Wastewater Rate Adjustments The table below outlines the current and proposed wastewater rates for FY24 through FY28. Like the water rates, the first year’s rates reflect the cost-of-service adjustments that occur based on changes in customer classes, consumption, and other factors. The projected rates for subsequent years are adjusted by the proposed 4% annual increases. Agenda Item 11.1 Page 182 of 308 Presentation of the Comprehensive Water and Wastewater Utilities Rate Study; Adoption of a Resolution Commencing the Proposition 218 Noticing Process, and Setting October 16, 2023, as the Date for the Public Hearing to Adopt Water and Wastewater Rates City of Gilroy City Council Page 8 of 10 August 21, 2023 Note: The proposed rates for FY23/24 will be implemented on January 1, 2024, and annually on January 1 for subsequent fiscal years thereafter Impact on Wastewater Bills The Rate Study compares the current and proposed wastewater rates on the customer bills. The following two charts illustrate a five-year comparison of the average monthly wastewater bill impact for a single-family residential and commercial customer. For single-family residential, the average monthly will increase from the current $46.64/month to $51.07/month in the first year and increase to $59.74/month by FY28. For non-residential customers, the average monthly will increase from the current $106.31/month to $119.92/month in the first year and increase to $140.29/month by FY28. Bill comparisons for other strength categories are included in the Rate Study. Agenda Item 11.1 Page 183 of 308 Presentation of the Comprehensive Water and Wastewater Utilities Rate Study; Adoption of a Resolution Commencing the Proposition 218 Noticing Process, and Setting October 16, 2023, as the Date for the Public Hearing to Adopt Water and Wastewater Rates City of Gilroy City Council Page 9 of 10 August 21, 2023 Next Steps In order to implement the fee adjustments, the City is required to follow Proposition 218 majority protest proceedings. Proposition 218 requires specific procedures to be followed with regard to property-related fee increases. The California Constitution requires local governments to give mailed notice of any property-related proposed fee changes at least 45 days before holding a public hearing where the City Council may adopt or reject the changes. Those opposed to the proposed rate adjustments can submit written protests to the City. If a majority (50% plus one) of customers oppose the proposed rate adjustments, City Council cannot implement the proposed increases. This process includes the following steps: •Schedule a public hearing requiring 45 days’ of mailed public notice to adopt the rate adjustments. Draft of the 45-day Proposition 218 Public Notice is included as attachment 3. •Mail the Public Notice describing the proposed rate adjustments to all property owners and occupants subject to the rate adjustments. •During the 45 days following the Public Notice, the City will accept any eligible written protests from property owners and occupants subject to the rate adjustments (protests can be received until the end of the public hearing). •Only one rate protest per property will be counted. For example, if the property owner and their tenant file a protest, only one will be counted for that property. Agenda Item 11.1 Page 184 of 308 Presentation of the Comprehensive Water and Wastewater Utilities Rate Study; Adoption of a Resolution Commencing the Proposition 218 Noticing Process, and Setting October 16, 2023, as the Date for the Public Hearing to Adopt Water and Wastewater Rates City of Gilroy City Council Page 10 of 10 August 21, 2023 •After the public hearing, and assuming a majority of protests (50% plus one) is not received, conduct a vote of the City Council to adopt the rate adjustments. •The proposed rate adjustments will become effective on January 1, 2024, after the public hearing and annually on January 1 of each subsequent fiscal year through FY28. Staff recommends the City Council adopt a resolution (attachment 2) declaring intent to adjust the water and wastewater rates, authorizing the staff to commence the Proposition 218 noticing process, and setting October 16, 2023, as the date of the public hearing where Council will consider adoption of the rates. ALTERNATIVES Council could elect not to adopt the resolution of intent to adjust the water and wastewater rates. This is not recommended as the water and wastewater utility rates have not been adjusted since 2019, and it is vital for the City to continue investing in critical utilities' infrastructure and keep pace with rising operational costs. FISCAL IMPACT/FUNDING SOURCE The fiscal and resource impact of preparing the report is included in the staff’s annual workplan. The total cost for the comprehensive water and wastewater rate study is $72,325, which was budgeted and funded by the Water (705) and Wastewater (700) Funds. The cost of printing/mailing the Proposition 218 notices is estimated at $15,000 and will be funded by the Water and Wastewater Funds. If the Proposition 218 process concludes without the majority protest, and the water and wastewater rates are adopted as presented, the new rates would generate an average of $2.7 million annually for the water utility and an average of $1.8 million for the wastewater utility, over the next five-year period. PUBLIC OUTREACH Each property owner will receive a mailed Proposition 218 public hearing notice. In addition, the notice will also be included with the monthly utility bills for the September statements to notify all current customers. Staff will also conduct a community meeting in September 2023, a date to be determined, to present the Rate Study. Attachments: 1. Utilities Rate Study 2. Draft Resolution 3. Draft Proposition 218 Notice Agenda Item 11.1 Page 185 of 308 Draft Report for: Comprehensive Water and Wastewater Utility Rate Study Aerial view of City of Gilroy via Google Earth nbsgov.com August 2023 I Agenda Item 11.1 Page 186 of 308 City of Gilroy – Comprehensive Water & Wastewater Utility Rate Study Prepared by NBS – August 2023 This page left blank intentionally. Agenda Item 11.1 Page 187 of 308 City of Gilroy – Comprehensive Water & Wastewater Utility Rate Study Prepared by NBS – August 2023 TOC TABLE OF CONTENTS A. PURPOSE .................................................................................................................... 1 B. OVERVIEW OF THE STUDY .......................................................................................... 1 A. KEY WATER RATE STUDY ISSUES ................................................................................. 6 B. FINANCIAL PLAN ......................................................................................................... 6 C. COST-OF-SERVICE ANALYSIS ....................................................................................... 9 D. CHARACTERISTICS OF WATER CUSTOMERS BY CUSTOMER CLASS ........................... 11 E. RATE DESIGN ANALYSIS ............................................................................................ 12 F. PROPOSED WATER RATES ........................................................................................ 14 G. COMPARISON OF CURRENT AND PROPOSED WATER BILLS ..................................... 15 A. KEY WASTEWATER RATE STUDY ISSUES ................................................................... 20 B. FINANCIAL PLAN ....................................................................................................... 20 C. COST-OF-SERVICE ANALYSIS ..................................................................................... 22 D. RATE DESIGN ANALYSIS ............................................................................................ 24 E. PROPOSED WASTEWATER RATES ............................................................................. 25 F. COMPARISON OF CURRENT AND PROPOSED WASTEWATER BILLS .......................... 26 A. CONSULTANT RECOMMENDATIONS ........................................................................ 31 B. NEXT STEPS ............................................................................................................... 31 C. NBS’ PRINCIPAL ASSUMPTIONS AND CONSIDERATIONS .......................................... 31 Agenda Item 11.1 Page 188 of 308 City of Gilroy – Comprehensive Water & Wastewater Utility Rate Study Prepared by NBS – August 2023 TOF TABLE OF FIGURES Figure 1. Primary Components of a Rate Study ............................................................................. 1 Figure 2. Summary of Water Revenue Requirements ................................................................... 8 Figure 3. Summary of Primary Water Reserve Funds .................................................................... 9 Figure 4. Allocation Percentages of Revenue Requirements ....................................................... 10 Figure 5. Allocated Net Revenue Requirements – Preferred Rate Alternative ............................ 10 Figure 6. Water Consumption by Customer Class ....................................................................... 11 Figure 7. Peaking Factors by Customer Class .............................................................................. 11 Figure 8. Number of Meters by Customer Class .......................................................................... 12 Figure 9. Hydraulic Capacity Factors ........................................................................................... 13 Figure 10. Equivalent Meters ...................................................................................................... 13 Figure 11. Calculation of Fixed Service Charges .......................................................................... 14 Figure 12. Uniform Tier Rates for FY 2023/24 ............................................................................. 14 Figure 13. Current and Proposed Water Rates ............................................................................ 15 Figure 14. Monthly Water Bill Comparison for Residential Customers ....................................... 16 Figure 15. Monthly Water Bill Comparison for Commercial Customers ...................................... 17 Figure 16. Residential Water Bills – 5-Years ................................................................................ 17 Figure 17. Commercial Water Bills – 5-Years ............................................................................... 18 Figure 18. Residential Bills Comparison for Similar Communities ............................................... 19 Figure 19. Summary of Wastewater Revenue Requirements ...................................................... 21 Figure 20. Summary of Wastewater Reserve Funds .................................................................... 21 Figure 21. Development of the Flow Allocation Factor ............................................................... 22 Figure 22. Development of the Strength Allocation Factor ......................................................... 23 Figure 23. Development of the Customer Allocation Factor ....................................................... 23 Figure 24. Allocation of Revenue Requirements by Customer Class ........................................... 24 Figure 25. Development of Fixed and Variable Charges .............................................................. 25 Figure 26. Current vs. Proposed Wastewater Rates .................................................................... 26 Figure 27. Single-Family Residential Wastewater Bill Comparison .............................................. 26 Figure 28. Multi-Family Residential Wastewater Bill Comparison ............................................... 27 Figure 29. Non-Residential Low Strength Wastewater Bill Comparison ...................................... 28 Figure 30. Non-Residential Domestic Strength Wastewater Bill Comparison ............................. 28 Figure 31. Non-Residential Medium Strength Wastewater Bill Comparison ............................... 29 Figure 32. Non-Residential High Strength Wastewater Bill Comparison ..................................... 29 Figure 33. Non-Residential High Strength Wastewater Bill Comparison ..................................... 30 Agenda Item 11.1 Page 189 of 308 City of Gilroy – Comprehensive Water & Wastewater Utility Rate Study Prepared by NBS – August 2023 1 Section 1. Purpose and Overview of the Study A. Purpose The City of Gilroy (City) retained NBS to conduct a comprehensive utility rate study for its water and wastewater enterprise funds. The City had several objectives and goals in mind for this study including meeting revenue requirements, reviewing the rising costs of providing services, funding capital improvements and changes in costs, and complying with certain legal requirements (e.g., California Constitution Article XIII D, Section 6, which is commonly referred to as Proposition 218 [Prop 218]). The City’s broader objectives in this study include ensuring adequate funding for operating and capital costs, maintaining reasonable reserves, ensuring revenue stability in utility rates. The rates resulting from this study were developed in a manner that is consistent with industry standard cost-of-service principles. In addition to documenting the rate study methodology, this report is provided with the intent to assist the City in its continuing effort to maintain transparent communications with the residents and community it serves. In developing new rates for the City’s enterprise funds, NBS worked cooperatively with City staff and the City Council (Council) in selecting the appropriate rate alternatives that address the City’s goals and objectives. Based on input provided by City staff, NBS proposes the rates summarized in this report. The Council has the final decision regarding the adoption of the proposed rates and whether to proceed with the Prop 218 approval process. B. Overview of the Study Comprehensive rate studies, such as this one, typically include three components: (1) preparation of a financial plan that identifies the net revenue requirements for the utility; (2) analysis of the cost to serve each customer class, and (3) the rate structure design. These steps are shown in Figure 1 and are intended to follow industry standards and reflect the fundamental principles of cost-of-service rate making embodied in the American Water Works Association’s (AWWA) Principles of Water Rates, Fees, and Charges,1 also referred to as Manual M1, and the Water Environment Federation’s Financing and Charges for Wastewater Systems (Manual of Practice No. 27).2 Rate studies also address requirements under Prop 218 that rates not exceed the cost of providing the service and be proportionate to the cost of providing service for all customers. In terms of the chronology of the study, the three steps shown in Figure 1 represent the order in which they were performed in this study. Figure 1. Primary Components of a Rate Study 1 Principles of Water Rates, Fees, and Charges, Manual of Water Supply Practices, Manual M1, American Water Works Association (AWWA), 7th Edition, 2017. 2 Financing and Charges for Wastewater Systems, Manual of Practice No. 27, Water Environment Federation, Fourth Edition, 2018. Agenda Item 11.1 Page 190 of 308 City of Gilroy – Comprehensive Water & Wastewater Utility Rate Study Prepared by NBS – August 2023 2 1 FINANCIAL PLAN 2 COST-OF- SERVICE ANALYSIS 3 RATE DESIGN ANALYSIS Compares current sources and uses of funds and determines the revenue needed from rates and projects rate adjustments. Proportionally allocates revenue requirements to the customer classes in compliance with industry standards and State Law. Considers the rate structure that best meets the City’s need to collect rate revenue from various types of customers. NBS projected revenues and expenditures, developed net revenue requirements, performed cost-of- service rate analyses, and developed new water and wastewater rates for the City using this approach. The following sections in this report present an overview of the methodologies, assumptions, and data used along with the financial plans and rates developed. Detailed tables and figures documenting the development of the proposed rates are provided in the Appendices. The City provided NBS with the data necessary to conduct the study, including historical, current, and projected revenues and expenditures, number of customer accounts, and water consumption data along with other operational and capital cost information. FINANCIAL PLAN As a part of the rate study, NBS projected revenues and expenditures on a cash-flow basis for the next five (5) years. The amount of rate revenue required, that will allow reserves to be maintained at the recommended levels, is known as the net revenue requirement. As current rate revenue falls short of the net revenue requirement, rate adjustments – or more accurately, adjustments in the total revenue collected from rates – are recommended. This report presents an overview of the methodologies, assumptions, and data used along with the financial plan and proposed rates developed in this study.3 COST-OF-SERVICE ANALYSIS The basic purpose of the cost-of-service analysis (COSA) is to fairly and equitably allocate costs to customer classes. The cost-of-service analysis consists of two major components: (1) the classification of expenses, and (2) the allocation of costs to customer classes. For example, a key task is the “classification” of the water revenue requirements into the following categories: • Commodity related costs • Capacity related costs • Customer service related costs For the sewer utility, the normal classification of sewer revenue requirements uses the following categories: • Commodity related costs 3 The complete financial plans are available in the Appendices. Agenda Item 11.1 Page 191 of 308 City of Gilroy – Comprehensive Water & Wastewater Utility Rate Study Prepared by NBS – August 2023 3 • Capacity related costs • Customer service related costs However, a unique aspect of the City’s sewer rates is the use of separate fixed charges to recover the costs of the monitoring, sampling, and pretreatment program costs.4 These costs are significantly different between various non-residential customers, who have been placed into one of three categories: • Significant/Categorical • Non-Significant/Categorical • Other Non-Residential Because these costs are allocated directly to these three classes of non-residential customers, they are allocated directly to these classes; this adds a fourth classification category (i.e., monitoring, sampling, and pretreatment program costs). Together, these four allocation factors represent the cost allocation classifications used in the cost of service analysis. Further details are discussed below and documented in the Appendices. RATE DESIGN ANALYSIS During the rate design phase of the study, NBS and City staff worked together to develop rate alternatives that will meet the City’s objectives. It is important for the City to send proper price signals to its customers about the actual cost of providing service. This objective is typically addressed through both the magnitude of the rate adjustments and the rate structure design. In other words, both the amount of revenue collected and the way in which the revenue is collected from customers are important. Several criteria are typically considered in setting rates and developing sound rate structures. The fundamentals of this process have been well documented in several rate-setting manuals, such as AWWA’s Manual M1. The foundation for evaluating rate structures is generally credited to James C. Bonbright in Principles of Public Utility Rates,5 which outlines pricing policies, theories, and economic concepts along with various rate designs. The following is a simplified list of the attributes of a sound rate structure: • Rates should be easy to understand from the customer’s perspective. • Rates should be easy to administer from the utility’s perspective. • Rates should be equitable and non-discriminating (i.e., cost-based). • Rates should promote the efficient allocation of the resource. • There should be continuity in the rate making philosophy over time. • Rates should address other utility policies (e.g., conservation and economic development). • Rates should provide month-to-month and year-to-year revenue stability. 4 This methodology for recovering these program costs was first established in the City’s 2015 rate study, and the City has decided to continue with this approach. 5 James C. Bonbright, Albert L. Danielsen, and David R. Kamerschen, Principles of Public Utility Rates, Arlington, VA: Public Utilities Report, Inc., Second Edition, 1988, pp. 383-384. Agenda Item 11.1 Page 192 of 308 City of Gilroy – Comprehensive Water & Wastewater Utility Rate Study Prepared by NBS – August 2023 4 RATE STRUCTURE TERMINOLOGY This section covers basic rate design criteria that NBS and City staff considered as a part of their review of the rate structure alternatives. One of the most fundamental points in considering rate structures is the relationship between fixed and variable costs. Fixed costs, such as debt service and personnel costs, typically do not vary with the amount of water consumed. In contrast, variable costs, such as the cost of purchased water, chemicals, and electricity, tend to change with the quantity of water sold. Most rate structures contain a fixed, or minimum, charge in combination with a volumetric charge.  Fixed Charges – Fixed charges can be called base charges, minimum monthly charges, customer charges, fixed meter charges, etc. Fixed charges for water utilities typically increase by meter size. For example, a customer with a 2-inch meter has a fixed meter charge that is more than five times greater than the typical residential customer based on the safe operating capacity of the meter.6 Since a large portion of utility costs are typically related to meeting capacity requirements, individual capacity demands are important in establishing equitable rates for customers.  Variable (Consumption-Based) Charges – In contrast to fixed charges, variable costs, such as purchased water, groundwater replenishment costs, and the cost of electricity used in pumping water and chemicals for treatment, tend to change with the quantity of water produced. For a water utility, variable charges are calculated based on a metered consumption per unit price (e.g., per 100 cubic feet, or HCF).  Uniform (Single-Tier) Water Rates – There are significant variations in the basic philosophy of variable charge rate structure alternatives. Under a uniform (single tier) rate structure, the cost per unit does not change with consumption and, therefore, provides a simple and straightforward approach from the customer’s perspective and in terms of the City’s rate administration.  Zonal Water Rates – The City has chosen to reflect the cost variations due to pumping costs for moving water to the three elevation zones in the City. This is based on the higher costs for pumping-related energy costs and additional infrastructure for more pumping stations. However, the City has decided to only include the actual energy costs in the zonal water rates.  Tiered Water Charges – The 2015 San Juan Capistrano court decision held that water agencies may only charge tiered rates if they can show that the tiered rates are proportionate to the agency’s higher costs to serve those customers, meaning that caution must be used to ensure that customers are appropriately allocated costs that meet legal requirements. Although the City’s current rates include two tiers for all water customers, tiered water rates have been discontinued because source of supply data and costs do not lend themselves to using tiered 6 Principles of Water Rates, Fees, and Charges, Manual of Water Supply Practices, Manual M1, AWWA, 7th Edition, 2017, pp. 151-152. Agenda Item 11.1 Page 193 of 308 City of Gilroy – Comprehensive Water & Wastewater Utility Rate Study Prepared by NBS – August 2023 5 rates for the City’s water customers and they would be difficult to defend under Prop 218 from a legal standpoint. KEY FINANCIAL ASSUMPTIONS The following is a summary of the key financial assumptions used in the analyses. The following capital and operational fund targets reflect input from City staff to meet specific utility objectives:  Funding of Capital Projects – The capital improvement costs will be funded with a combination of cash in reserves and the additional revenue generated from the proposed rate increases. The capital projects listed in the financial plan are from the City’s capital improvement program. The analysis assumes: • Capital costs attributable to existing customers are funded using rate revenue. • Capital costs attributable to growth are funded by revenue from the impact fee reserves.  Reserve Targets – For each utility (i.e., water and wastewater), the City maintains reserves for operations, capital, and other specific needs. The details of each utility’s reserve targets are covered in their respective section of this report.  Inflation and Growth Projections – Assumptions were made in the analysis regarding cost inflation to project future revenues and expenses for the study period. The following inflation factors were used in the analysis: • Customer growth is estimated at 1.50% per year. • General cost inflation is set at 3.07% annually. • Labor cost inflation is set at 3.50% annually. • Energy cost inflation is set at 7.44% annually. • Fuel & Utilities cost inflation is set at 5.24% annually. • Water purchases inflation factor is set at 5.0% annually. These inflation factors are based on long-term trends; therefore, the City should re-examine these factors in another year to assess the impacts on utility costs and whether projected rate increases will be sufficient for the remainder for the rate adoption period. Agenda Item 11.1 Page 194 of 308 City of Gilroy – Comprehensive Water & Wastewater Utility Rate Study Prepared by NBS – August 2023 6 Section 2. Water Rate Study A. Key Water Rate Study Issues The City’s water rate analysis was undertaken with a few specific objectives, including: • Generating sufficient revenue to meet anticipated operating and maintenance costs and fund necessary capital improvement projects for the next five years. • Continuing with a rate design that promotes revenue stability. • Verifying the cost-of-service linkage between the current rate structure and the proposed water rates, including the zonal water rates. • Maintaining adequate reserve levels to ensure continuity in operations. • Complying with the legal requirements of Prop 218 to ensure the cost of providing service is properly allocated amongst user classifications. This was the basis for eliminating tiered water rates. NBS developed various water rate alternatives as requested by City staff over the course of this study. All rate structure alternatives relied on industry standards and cost-of-service principles. The rate alternative that will ultimately be implemented is the decision of the City Council. The fixed and volume-based charges were calculated based on the net revenue requirements, number of customer accounts, water consumption and estimated water discharge, and other relevant data provided by the City. The following are the basic components included in this analysis:  Developing Cost Allocations – The water revenue requirements were “functionalized” into three categories: (1) commodity (or volume-based) costs; (2) fixed capacity costs; and (3) customer service costs. These functionalized costs were then used to develop unit costs based on various factors, such as water consumption, peaking factors, and number of accounts by meter size.  Determining Revenue Requirements by Customer Class – The total revenue that needs to be collected from each customer class was determined using the functional costs and allocation factors. For example, customer costs are allocated based on the number of meters, while volume- related costs are allocated based on the water consumption of each customer class. Once the costs are allocated and the net revenue requirement for each customer class is determined, collecting the revenue requirements from each customer class is addressed within the rate design.  Evaluating Rate Design (Fixed vs. Variable Charges) – The revenue requirements for each customer class are collected through a combination of fixed monthly service charges and volumetric rates. Based on direction from City staff, the rates proposed in this report will collect 40% of the rate revenue from the fixed charge and 60% from the variable charges. B. Financial Plan It is important for municipal utilities to not only collect sufficient revenues every year, but to also maintain reasonable reserves to handle emergencies, fund working capital, maintain a good credit rating, and Agenda Item 11.1 Page 195 of 308 City of Gilroy – Comprehensive Water & Wastewater Utility Rate Study Prepared by NBS – August 2023 7 generally follow sound financial management practices. Rate adjustments are governed by the need to meet operating and capital costs as well as maintain reasonable reserve levels. The current state of the City’s water utility, regarding these objectives, is as follows:  Meeting Net Revenue Requirements: For FY 2023/24 through FY 2027/28, the projected net revenue requirement (that is, total annual expenses plus debt service and rate-funded capital costs, less non-rate revenues) for the water system averages $15.9 - $18.8 million annually. If no rate adjustments are implemented, the City is projected to run an annual deficit of approximately $2 million in FY 2023/24, increasing to more than $3.9 million by FY 2027/28, and will be unable to meet its debt service coverage requirements in FY 2026/27 and FY 2027/28 when new debt service payments begin on the assumed bond issuance.  Maintaining Reserve Funds: Reserve funds provide a basis for a utility to cope with fiscal emergencies, such as revenue shortfalls, asset failure, and natural disasters, among other events. Reserve policies provide guidelines for sound financial management, with an overall long-range perspective to maintain financial solvency and mitigate financial risks associated with revenue instability, volatile capital costs, and unexpected emergencies. The City’s existing reserves are healthy and the challenge is to meet future revenue requirements and still maintain adequate reserves. NBS together with City staff have chosen to set the following reserve targets: • Operating Reserve equal to 6 months of operating and maintenance expenses, or approximately $8.2 million in FY 2023/24. An operating reserve is intended to promote financial viability in the event of any short-term fluctuation in revenues and/or expenditures, such as those caused by weather patterns, the natural inflow and outflow of cash during billing cycles, natural variability in demand-based revenue streams (e.g., volumetric charges), and – particularly in periods of economic distress – changes or trends in the age of receivables. NBS considers a 6-month operating reserve to be a very conservative reserve fund target (i.e., most municipal water utilities use a 3- month target for the operating reserve). • Capital Rehabilitation & Replacement Reserve equal to 50% of the average capital improvement costs over the 5-year rate adoption period; the five-year average is approximately $8.2 million, so the target reserve is $4.1 million. This reserve is intended to be a cash resource set aside to address long-term capital system replacement and rehabilitation needs. NBS considers a 50% capital reserve target to be at the higher end of what most utilities aim for. Many utilities aim for 3% to 6% of net assets, which in the City’s case would be $1.8 to $3.6 million.  Funding Capital Improvement Projects: The City must fund necessary capital improvements to maintain current service levels. City staff has identified roughly $41 million in expected capital expenditures over the next five years (FY 2023/24 through FY 2027/28) which is an average of $8.2 million in capital expenditures annually. This rate study assumes the City will be issuing $16 million in revenue bonds in FY 2025/26 through FY 2027/28. Proceeds from these revenue bonds along Agenda Item 11.1 Page 196 of 308 City of Gilroy – Comprehensive Water & Wastewater Utility Rate Study Prepared by NBS – August 2023 8 with the recommended rate increases, enable the City to fund these capital expenditures without exhausting the existing reserves, although reserves will decrease significantly over the next five years, they are projected to end at about the target reserve level.  Inflation and Growth Projections: Cost inflation and growth assumptions are necessary to project future revenues and expenses for the study period. Customer growth is expected to be nearly 1.5% annually. This factor was used in the analysis for rate revenues while inflation factors, including the Consumer Price Index,7 were used in projecting expenses.  Maintaining Adequate Bond Coverage: Although the water utility currently has no outstanding debt, this analysis assumes that the City will be issuing $16 million in new debt to fund capital projects. However, whether new debt will be needed will depend on the actual delivery of capital projects (i.e., the timing and costs). The rate covenants of the new revenue bonds include a minimum debt service coverage ratio of 1.25. The benefit of maintaining a higher coverage ratio is that it strengthens the City’s credit rating which can help lower interest rates for debt-funded capital projects and, in turn, reduce annual debt service payments. Figure 2 summarizes the sources and uses of funds, net revenue requirements, and the annual percent adjustments in total rate revenue recommended for the next 5 years. Figure 2. Summary of Water Revenue Requirements Figure 3 summarizes the projected reserve fund balances and reserve targets for the City’s unrestricted funds. A detailed version of the proposed 5-year financial plan is included in Appendix A . The tables in the appendix include the revenue requirement, reserve funds, revenue sources, capital improvement costs, and the proposed rate adjustments needed to meet the City’s funding requirements. 7 Consumer Price Index for all urban consumers in the San Francisco area. Source: Website: https://www.bls.gov/cpi/. Budget FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 Sources of Water Funds User Fees 13,665,000$ 13,939,000$ 14,218,000$ 14,431,270$ 14,647,739$ 14,867,455$ Other Revenue 105,000 110,000 112,000 113,680 115,385 117,116 Bank Interest 488,737 499,621 509,514 5,075 5,151 5,228 Total Sources of Funds 14,258,737$ 14,548,621$ 14,839,514$ 14,550,025$ 14,768,275$ 14,989,800$ Uses of Water Funds Water Administration 2,759,176$ 3,460,721$ 3,533,818$ 3,636,249$ 3,748,440$ 3,864,096$ Finance Water Utility Billing 873,507 1,047,309 1,077,076 1,095,995 1,133,828 1,172,968 Water Operations 4,983,992 6,952,444 6,568,972 6,810,814 7,061,889 7,322,564 Valley Water 3,293,972 4,641,000 4,873,050 5,116,703 5,372,538 5,641,165 Additional Capital Expenditures - 404,450 404,450 - - - Debt Service - - - - 453,067 906,134 Rate-Funded Capital Expenses - - - - - - Total Use of Funds 11,910,647$ 16,505,924$ 16,457,366$ 16,659,760$ 17,769,761$ 18,906,927$ Surplus (Deficiency) before Rate Increase 2,348,090$ (1,957,303)$ (1,617,852)$ (2,109,735)$ (3,001,486)$ (3,917,128)$ Additional Revenue from Rate Increases 1 - 557,560 1,745,841 2,900,027 3,817,967 4,624,944 Net Revenue Requirement2 11,316,910$ 15,896,303$ 15,835,852$ 16,541,005$ 17,649,225$ 18,784,583$ Surplus (Deficiency) after Rate Increase 2,348,090$ (1,399,743)$ 127,988$ 790,292$ 816,481$ 707,816$ Projected Annual Rate Increase 0.00% 8.00% 8.00% 6.00% 4.00% 4.00% Debt Coverage After Rate Increase N/A N/A N/A N/A 2.80 1.78 1. Revenue from rate increases assumes an implementation date of January 1, 2024 for new rates. For each year thereafter, the assumption is that new rates will also be implemented on January 1st of each year. 2. This is the annual amount needed from water rates. [Net Revenue Requirement = Total Use of Funds - (Non-Rate Revenues + Bank Interest)]. Summary of Sources and Uses of Funds and Net Revenue Requirements 5-Year Projected Rate Period Agenda Item 11.1 Page 197 of 308 City of Gilroy – Comprehensive Water & Wastewater Utility Rate Study Prepared by NBS – August 2023 9 Figure 3. Summary of Primary Water Reserve Funds C. Cost-of-Service Analysis Once the net revenue requirements are determined, the cost-of-service analysis (COSA) proportionately distributes the revenue requirements to each of the customer classes. The COSA consists of two major components: (1) the classification of expenses, and (2) the allocation of costs to each customer class. Costs are classified according to the function they serve. All costs in the City’s budget are allocated to each component of the rate structure in proportion to the level of service required by customers. The level of service is related to the volume and strength of the water treated, infrastructure capacity, and customer service. These costs are based on allocation factors, such as water consumption, number of meters, and customer class. Ultimately, a COSA is intended to result in rates that are proportional to the cost of providing service to each customer class. FUNCTIONALIZATION AND CLASSIFICATION OF COSTS Most costs are not typically allocated just to fixed or variable categories but rather allocated to multiple functions of water service. The functionalization and classification process provides the basis for allocating costs to various customer classes based on the cost causation (classification) components described below: • Commodity related costs are costs associated with the change in the volume of water produced and delivered. These commonly include the costs of water quality testing, energy related to pumping for transmission and distribution, and source of supply. • Capacity related costs are costs associated with sizing facilities to meet the maximum, or peak, demand. This includes both operating costs and capital infrastructure costs incurred to accommodate peak system capacity events. • Customer related costs are costs associated with having a customer connected to the water system, such as meter reading, postage, billing, and other administrative duties. The City’s budgeted costs were reviewed and allocated to these cost causation components which are used as the basis for establishing new water rates and translated into fixed and variable charges. Tables in the Appendices show how the City’s expenses were classified and allocated to these cost causation components. In the analysis, these cost causation components are also considered to be either fixed or variable. Budget FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 Operating Reserve Ending Balance 5,955,000$ 4,555,257$ 4,683,245$ 5,473,537$ 6,290,019$ 6,997,835$ Recommended Minimum Target 5,955,000 8,253,000 8,229,000 8,330,000 8,658,000 9,000,000 Capital Rehabilitation & Replacement Reserve Ending Balance 25,382,158$ 22,643,278$ 8,114,397$ 7,583,609$ 7,583,609$ 7,217,830$ Recommended Minimum Target 4,140,000 4,140,000 4,140,000 4,140,000 4,140,000 4,140,000 Total Ending Balance 31,337,158$ 27,198,535$ 12,797,642$ 13,057,146$ 13,873,627$ 14,215,665$ Total Recommended Minimum Target 10,095,000$ 12,393,000$ 12,369,000$ 12,470,000$ 12,798,000$ 13,140,000$ Beginning Reserve Fund Balances and Recommended Reserve Targets Projected Agenda Item 11.1 Page 198 of 308 City of Gilroy – Comprehensive Water & Wastewater Utility Rate Study Prepared by NBS – August 2023 10 FIXED AND VARIABLE COSTS Ideally, utilities should recover all of their fixed costs from fixed charges and all of their variable costs from volumetric charges. When this is the case, fluctuations in water sales revenues would be directly offset by reductions or increases in variable expenses, which provides greater revenue stability for the utility. However, other factors are often considered when designing water rates, such as community values, water conservation goals, ease of understanding, and ease of administration.8 NBS functionalized the City’s costs into categories that represent fixed and variable costs. This analysis resulted in a cost distribution that is approximately 40% fixed and 60% variable (i.e., volumetric). However, the City’s current rates collect revenue from customers in proportions of approximately 30% fixed and 70% variable. City staff agrees with NBS that the current rate design is not reflective of the actual cost distribution ad determined by the cost of service analysis. Therefore, the proposed new rates are based on the 40% fixed and 60% variable allocations. NBS also evaluated the current 30% fixed/70% variable rate structure and compares the results below. Figure 4 summarizes how costs are allocated to each cost component and used to establish new water rates. Figure 5 shows the resulting cost allocation to each cost classification component. Figure 4. Allocation Percentages of Revenue Requirements Figure 5. Allocated Net Revenue Requirements – Preferred Rate Alternative 8 Principles of Water Rates, Fees, and Charges, Manual of Water Supply Practices, Manual M1, AWWA, 7th Edition, 2017, pp. 6 and 96. Commodity-Related Costs 9,032,472$ 60.0%10,537,884$ 70.0% Capacity-Related Costs 4,516,236 30.0%3,161,365 21.0% Customer-Related Costs 1,505,412 10.0%1,354,871 9.0% Net Revenue Requirement 15,054,120$ 100.0%15,054,120$ 100.0% Classification Components Net Rev. Reqts (FY 2023/24) ALT. 2 (30% Fixed / 70% Variable) ALT. 1 (Preferred) (40% Fixed / 60% Variable) Net Rev. Reqts (FY 2023/24) VARIABLE Residential 5,470,437$ 2,758,274$ 1,312,941$ 9,541,651$ Multi-Family 1,053,245 426,815 50,558 1,530,618 Commercial/Industrial 1,354,175 561,903 83,348 1,999,425 Institutional 155,983 103,540 3,302 262,825 Landscape 937,767 611,068 50,019 1,598,854 City Account 239 98 3,399 3,737 Hydrant 60,626 54,538 1,845 117,010 Total Net Revenue Requirement 9,032,472$ 4,516,236$ 1,505,412$ 15,054,120$ Customer- Related Costs Commodity- Related Costs Capacity- Related Cost s Cost of Service Net Revenue Requirements Customer Classes FIXED Classification Components Agenda Item 11.1 Page 199 of 308 City of Gilroy – Comprehensive Water & Wastewater Utility Rate Study Prepared by NBS – August 2023 11 D. Characteristics of Water Customers by Customer Class Customer classes are typically determined by grouping customers with similar demand characteristics into categories that reflect the cost differentials to serve each type of customer. C ustomer classes are most often identified as single-family, multi-family, commercial, landscape, etc., and the City follows this common methodology. The rates proposed in this report follow a similar structure where the fixed charges within each customer class vary by meter size while all customers are charged a uniform volumetric rate based on zones. The amount of consumption, the peaking factors, and the number of meters by size are used to allocate costs as a part of COSA to allocate costs to customer classes and determine the appropriate rate structures for each. These components of the COSA are presented in the following figures. Commodity related costs are costs associated with the total annual consumption of water by customer class. Figure 6 below summarizes the most recent consumption data by customer class and represents the expected percent of consumption over the 5-year rate period. Figure 6. Water Consumption by Customer Class Figure 7 shows the peaking factors for each customer class. A “peaking factor” is the relationship between the average use by meter size to its peak use. Figure 7. Peaking Factors by Customer Class Agenda Item 11.1 Page 200 of 308 City of Gilroy – Comprehensive Water & Wastewater Utility Rate Study Prepared by NBS – August 2023 12 Both operating costs and capital infrastructure costs incurred to accommodate peak system capacity events are generally allocated to each meter size according to its contribution to peak capacity events. These peaking factors are used to allocate the capacity-related costs to each customer class and are described in more detail later in this study. Figure 8 shows the number of meters for each customer class. The percentage of total customers by customer class is then used to develop the customer allocation factors to allocate customer costs. Customer costs are those costs associated with having customers connected to the water system and include costs related to meter reading, postage, and billing. Figure 8. Number of Meters by Customer Class E. Rate Design Analysis Evaluating the water rate structure includes reviewing rate-design objectives and policies, including continuity of rate design, revenue stability, equity among customers, and water conservation. NBS discussed the 40%/60% (preferred) and 30%/70% rate designs with City staff over the course of this study. Ultimately, City staff selected the 40%/60% rate alternative, as it is closest to the actual cost of service based on NBS’ analysis. Also, because of the difficulty meeting Prop 218 legal requirements of demonstrating the cost basis for tiered rates given the City’s water supply costs, the preferred rate structure proposes a uniform tier for all customers rather than the existing two-tiers. The following section describe how the proposed water rates were determined. DEVELOPMENT OF PROPOSED RATES Fixed Service Charges The fixed meter charge recognizes that the water utility incurs fixed costs regardless of whether customers use water. There are two components that comprise the fixed meter charge: (1) the capacity component, and (2) the customer component. The capacity component recovers costs associated with sizing the water system to ensure there is sufficient capacity in the system to meet peak demand. A user class with a higher peaking ratio is allocated a proportionately higher share of the capacity-related costs compared to customer classes with lower peaking ratios. The customer component includes those costs related to reading and maintaining meters, customer billing and collection, and other customer service-related costs. Customer Class No. of Meters FY 2021/221 Percent of Total Residential 13,518 87.2% Multi-Family 521 3.4% Commercial/Industrial 858 5.5% Institutional 34 0.2% Landscape 515 3.3% City Account 35 0.2% Hydrant 19 0.1% Total 15,500 100.0% 1. Meter count data is based on the City's billing data for June 2022. Agenda Item 11.1 Page 201 of 308 City of Gilroy – Comprehensive Water & Wastewater Utility Rate Study Prepared by NBS – August 2023 13 Fixed charges also vary based on meter sizes because larger meters have higher capacity requirements and reflect their potential to use more of the system’s capacity.9 The potential capacity demands (peaking) is proportional to the maximum hydraulic flow through each meter size based on the hydraulic capacity ratios established by AWWA.10 The AWWA capacity ratios used for this report are shown in Figure 9. Figure 9. Hydraulic Capacity Factors The actual number of meters by size is multiplied by the corresponding capacity ratios to calculate “equivalent” meters. The number of equivalent meters is used as a proxy for the potential demand that each customer can place on the water system. Figure 10 summarizes the number of meters, the hydraulic capacity factors, and the number of equivalent meters (i.e., the number of meters multiplied by the hydraulic capacity factor) by customer class and meter size. Figure 10. Equivalent Meters Using the costs allocated to each customer class from Figure 5, Figure 11 shows the calculation of the fixed monthly service charges for all customer classes based on meter size. As previously mentioned, the customer service charge is calculated by dividing the customer service-related costs by the total number of 9 System capacity is the system’s ability to supply water to all delivery points at the time when demanded. 10 Principles of Water Rates, Fees and Charges, Manual of Water Supply Practices, Manual M1, AWWA, 7th Edition, 2017, p. 386. Water Meters – Selection, Installation, Testing and Maintenance, Manual M6, AWWA, 5th Edition, 2012, pp. 63-65. 3/4 inch 30 1.00 1 inch 50 1.67 1 1/2 inch 100 3.33 2 inch 160 5.33 3 inch 320 10.67 4 inch 500 16.67 6 inch 1,000 33.33 8 inch 1,600 53.33 10 inch 4,200 140.00 1. Per AWWA M-1, Table B-1. Compound Class I Meters Turbine Class II Meters Meter Capacity (gpm)1 Displacement Meters Meter Size Equivalency to 1-inch Standard Meters Agenda Item 11.1 Page 202 of 308 City of Gilroy – Comprehensive Water & Wastewater Utility Rate Study Prepared by NBS – August 2023 14 meters, whereas the fixed capacity charge is calculated by dividing the capacity-related costs by the total number of equivalent meters for each meter size. Figure 11. Calculation of Fixed Service Charges Volumetric Rates Currently, the City uses a 2-tier rate structure for all customers; however, the proposed rates are based on a uniform, or single tier, volumetric rate. Given the single source of water supply, a uniform volumetric rate is more feasible from a Prop 218 perspective. Figure 12 shows the calculation of the uniform tier rate per unit of water for all customers, including the basic commodity rate (without pumping costs) and rates for each zone (including pumping costs). Figure 12. Uniform Tier Rates for FY 2023/24 F. Proposed Water Rates The City’s previous rate study was completed eight years ago in 2015. Since then, the underlying cost factors (e.g., consumption by class, number of meters, peaking factors) have changed. The cost-of-service analysis by nature “re-balances” how costs are allocated between customer classes and, as a result, there 3/4 inch 1 inch 1 1/2 inch 2 inch 3 inch 4 inch 6 inch 8 inch 10 inch Residential 4,445 8,273 172 459 167 2 0 0 0 13,518 Multi-Family 137 203 84 56 24 17 0 0 0 521 Commercial/Industrial 251 330 0 249 10 14 3 0 1 858 Institutional 0 1 0 15 8 9 1 0 0 34 Landscape 34 182 79 212 4 4 0 0 0 515 City Account 5 7 1 19 2 1 0 0 0 35 Hydrant 0 0 0 0 19 0 0 0 0 19 Total Meters/Accounts 4,872 8,996 336 1,010 234 47 4 0 1 15,500 Hydraulic Capacity Factor 2 1.00 1.67 3.33 5.33 10.67 16.67 33.33 53.33 140.00 Total Equivalent Meters 4,872 14,993 1,120 5,387 2,496 783 133 0 140 29,925 Monthly Fixed Service Charges Customer Costs ($/Acct/month)3 $8.09 $8.09 $8.09 $8.09 $8.09 $8.09 $8.09 $8.09 $8.09 Capacity Costs ($/Acct/month)4 $12.58 $20.96 $41.92 $67.08 $134.15 $209.61 $419.22 $670.76 $1,760.74 Total Monthly Meter Charge $20.67 $29.05 $50.02 $75.17 $142.24 $217.70 $427.32 $678.85 $1,768.83 Annual Fixed Costs Allocated to Monthly Meter Charges Customer Costs $ 1,505,412 Capacity Costs 4,516,236 Total Fixed Meter Costs 6,021,648$ Annual Revenue from Monthly Meter Charges Customer Charges 473,185$ 873,722$ 32,633$ 98,095$ 22,727$ 4,565$ 388$ -$ 97$ 1,505,412$ Capacity Charges 735,283$ 2,262,797$ 169,031$ 812,957$ 376,697$ 118,221$ 20,123$ -$ 21,129$ 4,516,236$ Total Rev. from Mo. Meter Charges 1,208,468$ 3,136,518$ 201,664$ 911,051$ 399,424$ 122,786$ 20,511$ -$ 21,226$ 6,021,648$ 1. Meter by Class and Size are based on June 2022 customer billing data. 2. Source: AWWA Manual M1, "Principles of Water Rates, Fees, and Charges", Table B-1 3. Customer costs are allocated to each customer by dividing the total customer costs by the total number of customers. 4. Capacity costs are allocated by meter size and the hydraulic capacity of the meter. Total FY2023/24Number of Meters by Class and Size1 Zone 1 Zone 2 Zone 3 Residential - Tier 1 1,348,786 60.6%4,912,312$ $3.64 $4.00 $4.37 $4.73 Multi-Family 259,687 11.7%945,787 $3.64 $4.00 $4.37 $4.73 Commercial/Industrial 333,884 15.0%1,216,014 $3.64 $4.00 $4.37 $4.73 Institutional 38,459 1.7%140,069 $3.64 $4.00 $4.37 $4.73 Landscape 231,215 10.4%842,091 $3.64 $4.00 $4.37 $4.73 City Account 59 0.0%215 $3.64 $4.00 $4.37 $4.73 Hydrant 14,948 0.7%54,441 $3.64 $4.00 $4.37 $4.73 Total Potable Water 2,227,038 39.4%8,110,929$ Pumping Costs 921,543 Total Volumetric Reve. Reqts.9,032,472$ Uniform Commodity Rates Including Pumping Costs ($/TG)Water Use (TG/yr.)1 Total Vol. Rev. Reqts. (Excl. Pumping) Customer Classes % of Total Water Use Uniform Commodity Rates ($/TG) Agenda Item 11.1 Page 203 of 308 City of Gilroy – Comprehensive Water & Wastewater Utility Rate Study Prepared by NBS – August 2023 15 are uneven adjustments in the first year of the 5-year rate adoption period. In contrast, in the subsequent four years of the rate planning period, proposed charges are simply adjusted by the proposed adjustment in total rate revenue needed to meet projected revenue requirements. Figure 13 provides a comparison of the current and proposed water rates for FY 2023/24 through 2027/28 for each customer class and meter size. Projected rates for each fiscal year 11 reflect adjustments based on the cost-of-service analysis, the 40% fixed/60% variable rate design structure, and the recommended percent increases in rate revenue planned for each year. More detailed tables on the development of the proposed water rates are documented in Appendix A. Figure 13. Current and Proposed Water Rates Note: The proposed rates for FY23/24 will be implemented January 1, 2024, and annually on January 1 for subsequent fiscal years thereafter G. Comparison of Current and Proposed Water Bills Figure 14 and Figure 15 compare a range of monthly water bills under the current and proposed water rates for residential and commercial customers, including the bills for Alternative 2, the 70% fixed/30% variable option. These monthly bills are based on typical meter sizes and highlight the average consumption levels for each customer. These bill comparisons assume that financial plan projections remain accurate. However, some costs that are outside of the City’s control could change, such as the cost of water purchased from Valley Water. 11 All rate adjustments are scheduled to be effective on January 1, 2024. FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 Monthly Fixed Service Charges Meter Size 3/4 inch $11.53 $20.67 $22.32 $23.66 $24.61 $25.59 1 inch $19.24 $29.05 $31.38 $33.26 $34.59 $35.98 1 1/2 inch $38.47 $50.02 $54.02 $57.26 $59.55 $61.93 2 inch $61.55 $75.17 $81.18 $86.05 $89.50 $93.08 3 inch $115.39 $142.24 $153.62 $162.84 $169.36 $176.13 4 inch $192.30 $217.70 $235.12 $249.23 $259.20 $269.57 6 inch $384.62 $427.32 $461.50 $489.19 $508.76 $529.11 8 inch $615.37 $678.85 $733.16 $777.15 $808.23 $840.56 10 inch $884.50 $1,768.83 $1,910.34 $2,024.96 $2,105.95 $2,190.19 Residential Customers - Tiered Volumetric Rates Tier 1 - Zone 1 $4.39 $4.00 $4.32 $4.58 $4.77 $4.96 Tier 1 - Zone 2 $4.93 $4.37 $4.72 $5.00 $5.20 $5.41 Tier 1 - Zone 3 $5.52 $4.73 $5.11 $5.41 $5.63 $5.85 Tier 2 ( more than 20 TG) Tier 2 - Zone 1 $4.93 N.A. N.A. N.A. N.A. N.A. Tier 2 - Zone 2 $5.47 N.A. N.A. N.A. N.A. N.A. Tier 2 - Zone 3 $6.06 N.A. N.A. N.A. N.A. N.A. Current Rates Proposed RatesWater Rate Schedule Variable Charges for All Water Consumed ($/1,000 gallons (or TG)) Uniform Vol. Rates Agenda Item 11.1 Page 204 of 308 City of Gilroy – Comprehensive Water & Wastewater Utility Rate Study Prepared by NBS – August 2023 16 There is a “pass-through” provision that allows the City to make adjustments to water rates if these types of costs exceed those in the City’s projections. Figure 14. Monthly Water Bill Comparison for Residential Customers $32.41$41.19$45.58$55.68$67.53$85.09$107.04$41.07$49.07$53.08$62.29$73.10$89.11$109.13$36.00$45.36$50.04$60.80$73.44$92.16$115.55$0 $25 $50 $75 $100 $125 3 5 6 8.3 11 15 20Monthly BillMonthly Water Consumption (TG) Single-Family Residential Water Bill Comparison Current vs. Proposed FY'23/24 Rates (1" Meter) Residential Bill - Current Rates Residential Bill 60/40 V/F Residential Bill 70/30 V/F Average ANNUAL Bill (8.3 TG/mo.)Average WINTER Bill (6 TG/mo.) Average SUMMER Bill (11 TG/mo.) Agenda Item 11.1 Page 205 of 308 City of Gilroy – Comprehensive Water & Wastewater Utility Rate Study Prepared by NBS – August 2023 17 Figure 15. Monthly Water Bill Comparison for Commercial Customers Figure 16 and Figure 17 compare the single-family and commercial water bills for the five-year rate adoption period assuming average consumption levels. Figure 16. Residential Water Bills – 5-Years $55.43$99.33$134.45$152.01$178.35$252.98$340.78$60.71$100.75$132.78$148.80$172.82$240.89$320.96$62.89$109.69$147.12$165.84$193.92$273.48$367.08$0 $50 $100 $150 $200 $250 $300 $350 $400 10 20 28 32 38 55 75Monthly BillMonthly Water Consumption (TG) Commercial Water Bill Comparison Current vs. Proposed FY'23/24 Rates (< 1" Meter) Commercial Bill - Current Rates Commercial Bill 60/40 V/F Commercial Bill 70/30 V/F Average WINTER Bill (28 TG/mo.) Average ANNUAL Bill (32 TG/mo.) Average SUMMER Bill (38 TG/mo.) Agenda Item 11.1 Page 206 of 308 City of Gilroy – Comprehensive Water & Wastewater Utility Rate Study Prepared by NBS – August 2023 18 Figure 17. Commercial Water Bills – 5-Years Figure 18 presents a comparison of residential water rates for similar communities. $62.29$67.27$71.31$74.16$77.12$55.68$60.80$65.66$69.60$72.39$75.28$0 $10 $20 $30 $40 $50 $60 $70 $80 $90 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28Monthly BillMonthly Water Consumption (TG) Residential Water Bill Comparison 5-Year Projection (1" Meter) Resid. - 5-Year Rates (60/40 V/F) Resid. - 5-Year Rates (70/30 V/F) Average Monthly Water Use -8.3 TG $152.01 $148.80$160.70$170.34$177.15$184.24$165.84$179.11$189.86$197.45$205.35$0 $50 $100 $150 $200 $250 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28Monthly BillMonthly Water Consumption (TG) Commercial Water Bill Comparison 5-Year Projection (1" Meter) Commercial - 5-Year Rates (60/40 V/F) Commercial - 5-Year Rates (70/30 V/F) Annual Monthly Water Use -32 TG Agenda Item 11.1 Page 207 of 308 City of Gilroy – Comprehensive Water & Wastewater Utility Rate Study Prepared by NBS – August 2023 19 Figure 18. Residential Bills Comparison for Similar Communities $56.21 $60.16 $62.39 $73.43 $73.89 $77.76 $99.81 $103.67 $111.46 $134.52 $0 $25 $50 $75 $100 $125 $150 City of Hollister City of Gilroy (Current Rates) City of Morgan Hill Alternative #1 - 40F/60V Alternative #2 - 30F/70V City of Sunnyvale City of Santa Clara City of Milpitas City of Santa Cruz San Jose Municipal Water Regional Water Bill Comparion -SFR Customer Assumes 1" Meter, 14 hcf monthly consumption Agenda Item 11.1 Page 208 of 308 City of Gilroy – Comprehensive Water & Wastewater Utility Rate Study Prepared by NBS – August 2023 20 Section 3. Wastewater Rate study A. Key Wastewater Rate Study Issues The City’s wastewater rate analysis was undertaken with a few specific objectives, including: • Ensuring equity among customer classes by collecting rate revenue through the cost-of-service process based on both fixed monthly charges and volumetric rates. • Maintain adequate reserve levels to ensure continuity in operations. • Ensure adequate funding for the utility’s capital projects, due to the level of capital investment planned over the next five years. • Comply with Prop 218 requirements to ensure costs are properly allocated between user classifications. B. Financial Plan Like the water utility, it is important for the wastewater utility to ensure rates provide sufficient funding to cover operating and maintenance costs, planned capital expenditures, and maintain reasonable reserves. The wastewater utility’s rate increases are governed by these needs, and the current state of the City’s wastewater utility is as follows:  Meeting Net Revenue Requirements: For FY 2023/24 through FY 2027/28, the projected net revenue requirements (that is, total operating expenses plus rate-funded capital costs less non-rate revenues) for the City averages approximately $13.1 million to $17.1 million annually. If no rate increases are implemented, the City is projected to run an annual deficit of approximately $280,000 beginning in FY 2024/25 but increasing to $2.7 million by FY 2027/28, and the utility would struggle to meet its debt service coverage requirements.  Maintaining Reserve Funds: Reserve funds provide a basis for a utility to cope with fiscal emergencies such as revenue shortfalls, asset failure, and natural disasters, among other events. Reserve policies provide guidelines for sound financial management, with an overall long-range perspective to maintain financial solvency and mitigate financial risks associated with revenue instability, volatile capital costs, and emergencies. The reserve funds for the wastewater utility are considered unrestricted reserves and consist of the following: • Operating Reserve: The target ending fund balance for the operating reserve is equal to six months of operating expenses, or approximately $6.8 million in FY 2023/24. An operating reserve is intended to promote financial viability in the event of any short-term fluctuation in revenues and/or expenditures. Fluctuations in revenue can be caused by weather patterns, the natural inflow and outflow of cash during billing cycles, natural variability in demand-based revenue streams (such as volumetric charges), and – particularly in periods of economic distress – changes or trends in age of receivables. • Capital Rehabilitation & Replacement Reserve equal to 50% of the average capital improvement costs over the 5-year rate adoption period which is approximately $4.4 million. Agenda Item 11.1 Page 209 of 308 City of Gilroy – Comprehensive Water & Wastewater Utility Rate Study Prepared by NBS – August 2023 21 This reserve is set aside to address long-term capital system replacement and rehabilitation needs.  Maintaining Adequate Bond Coverage: The City is required by the rate covenants of the 2021A Wastewater Revenue Bonds to maintain a minimum debt service coverage ratio of 1.25. The benefit of maintaining a coverage ratio higher than 1.25 is that it strengthens the City credit rating which helps lower interest rates for debt-funded capital projects and can reduce annual debt service payments. With the recommended rate increases, the City is projected to meet the debt coverage requirement for the five-year rate adoption period ending in FY 2027/28. The recommended rate revenue increases are 4% annually throughout the 5-year rate adoption period. Figure 19 summarizes the sources and uses of funds, net revenue requirements, and the recommended annual increases in wastewater rate revenue proposed for the next 5 years. Figure 20 summarizes the projected reserve fund balances and reserve targets for the wastewater utility’s unrestricted funds. Figure 19. Summary of Wastewater Revenue Requirements Figure 20. Summary of Wastewater Reserve Funds Proj. Actuals FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 Sources of Sewer Funds User Fees 13,247,000$ 13,512,000$ 13,782,000$ 13,988,730$ 14,198,561$ 14,411,539$ Interfund Transfer In 1,533,500 2,244,000 2,244,000 2,244,000 2,244,000 2,244,000 Misc. Revenue & Interest Earnings2 992,066 649,871 397,017 15,619 15,853 16,091 Total: Sources of Funds 15,772,566$ 16,405,871$ 16,423,017$ 16,248,349$ 16,458,414$ 16,671,630$ Uses of Sewer Funds 7500 - Sewer Administration 3,606,254$ 2,143,559$ 2,202,325$ 2,339,468$ 2,481,991$ 2,625,123$ 7510 - Finance Sewer Utility Billing 921,605 1,037,477 1,083,341 1,120,978 1,159,924 1,200,226 7520 - Sewer Operations 2,758,341 4,362,836 4,320,125 4,464,460 4,613,637 4,767,818 SCWRA Oper. Costs (less Monit., Sampl., Pre-Tr.Cost 5,715,995 6,146,815 6,517,038 6,781,500 6,989,600 7,207,300 Monitoring, Sampling, Pretreatment (Non-Resid. Cos N.A.365,700 440,200 388,500 400,400 412,700 Subtotal: Operating Expenses 13,002,195$ 13,690,686$ 14,122,829$ 14,706,406$ 15,245,153$ 15,800,467$ Debt Service 1,533,500$ 2,244,000$ 2,244,400$ 2,243,600$ 2,241,600$ 2,243,300$ Rate-Funded Capital Expenses - 75,401 335,906 211,300 755,038 1,334,115 Total: Use of Funds 14,535,695$ 16,010,087$ 16,703,135$ 17,161,306$ 18,241,791$ 19,377,882$ Surplus (Deficiency) before Rate Increase 1,236,871$ 395,784$ (280,118)$ (912,957)$ (1,783,377)$ (2,706,252)$ Additional Revenue from Rate Increases 1 -$ 540,480$ 1,121,811$ 1,743,733$ 2,408,627$ 3,119,008$ Surplus (Deficiency) after Rate Increase 1,236,871$ 936,264$ 841,693$ 830,775$ 625,250$ 412,756$ Projected Annual Rate Increase 0.00%4.00%4.00%4.00%4.00%4.00% Debt Coverage After Rate Increase (1.25 required)1.81 1.45 1.52 1.46 1.62 1.78 Net Revenue Requirement2 12,010,129$ 13,116,216$ 14,062,118$ 14,901,687$ 15,981,938$ 17,117,791$ 1. Revenue from rate increases assumes an implementation date of Jnnuary 1, 2024 for new rates. For each year thereafter, the assumption is that new rates will be implemented on July 1st of each year. 2. This is the annual amount needed from water rates. [Net Revenue Requirement = Total Use of Funds - (Non-Rate Revenues + Bank Interest)]. Summary of Sources and Uses of Funds and Net Revenue Requirements 5-Year Projected Rate Period Projected Actuals FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 Unrestricted Reserves Operating Reserve Ending Balance 6,501,000$ 6,845,000$ 7,061,000$ 7,353,000$ 7,623,000$ 7,900,000$ Recommended Minimum Target 6,501,000 6,845,000 7,061,000 7,353,000 7,623,000 7,900,000 Capital Rehabilitation & Replacement Reserve Ending Balance 12,942,049$ 13,495,633$ 11,271,248$ 8,151,561$ 6,946,887$ 5,648,582$ Recommended Minimum Target 4,420,000 4,420,000 4,420,000 4,420,000 4,420,000 4,420,000 Total Ending Balance 19,443,049$ 20,340,633$ 18,332,248$ 15,504,561$ 14,569,887$ 13,548,582$ Total Recommended Minimum Target 10,921,000$ 11,265,000$ 11,481,000$ 11,773,000$ 12,043,000$ 12,320,000$ 5-Year Projected Rate PeriodBeginning Reserve Fund Balances and Recommended Reserve Targets Agenda Item 11.1 Page 210 of 308 City of Gilroy – Comprehensive Water & Wastewater Utility Rate Study Prepared by NBS – August 2023 22 A more detailed version of the utility’s proposed 5-year financial plan is included in Appendix B. The appendix tables include revenue requirements, reserve funds, revenue sources, proposed rate increases, and the City’s capital improvement program. C. Cost-of-Service Analysis Once the net revenue requirements are determined, the cost-of-service analysis (COSA) proportionately distributes the revenue requirements to each of the customer classes. The COSA consists of the classification of expenses and then the allocation of those expenses to customer classes based on allocation factors, such as water consumption and number of equivalent dwelling units (EDUs), or accounts. Ultimately, a COSA is intended to result in rates that are proportional to the cost of providing service to each customer class. CUSTOMER CLASSES AND ALLOCATION FACTORS Customer classes are determined by combining customers with similar demand characteristics and types of use into categories that reflect the cost differentials to serve each type of customer. The most recent water consumption data was the basis for estimating the amount of flow that each customer class sends to the treatment plant. Figure 21 shows the development of the flow/volume allocation factors by customer class calculated by taking the lowest consecutive 3-month water usage for FY 2021/22 for residential customers, annualizing that usage, and using the annual consumption for non-residential customer classes. Figure 21. Development of the Flow Allocation Factor Volumetric charges for non-residential customer classes were based on the annual consumption and their estimated effluent strengths (Residential customers do not have volumetric charges, just fixed monthly charges). Figure 22 summarizes the development of the strength allocation factors by customer class. These strength-related percentages were used to allocate strength-related costs. (Note: Although residential customers do not have volumetric charges, their strengths, and their estimated pounds of BOD and TSS, are used to allocate capacity-related costs to single- and multi-family customers.) Agenda Item 11.1 Page 211 of 308 City of Gilroy – Comprehensive Water & Wastewater Utility Rate Study Prepared by NBS – August 2023 23 Figure 22. Development of the Strength Allocation Factor Figure 23 summarizes the development of the customer allocation factor. Figure 23. Development of the Customer Allocation Factor CLASSIFICATION AND ALLOCATION OF COSTS As previously noted, costs are classified into the following four categories: (1) flow-related costs, (2) strength-related costs (BOD and TSS), (3) customer-related costs, and (4) direct allocation costs for monitoring, sampling, and pretreatment program costs. Most costs are typically allocated to more than one of these categories except for this last category in which costs, as implied by its name, are directly allocated to the three categories of non-residential customers (i.e., Significant/Categorical, Non- Significant/Categorical, and Other Non-Residential). The City’s budgeted costs were allocated to these four categories which serve as the basis for calculating the fixed and variable charges. Tables in Appendix B show how the City’s expenses were classified and allocated to these cost-causation components. Customer Class Number of Dwelling Units / Accounts Percent of Total Residential Customers Single-Family Residence 12,330 66.2% Multi-Family Residence 4,585 24.6% Non-Residential Customers - Strength Classes Low Strength 427 2.29% Domestic Strength 253 1.36% Medium Strength 55 0.30% High Strength 128 0.69% Non-Residential Customers - Categorical Classes Significant/Categorical 6 0.03% Non-Significant/Categorical 458 2.46% Other Non-Residential 387 2.08% Total: 18,628 100.0% Agenda Item 11.1 Page 212 of 308 City of Gilroy – Comprehensive Water & Wastewater Utility Rate Study Prepared by NBS – August 2023 24 Although the analysis of the classification of costs indicated that 44% of cost should be collected from volumetric charges and 56% from fixed charges 12, these percentages don’t really apply in the City’s case because: • Residential classes do not have a volumetric charge. • Non-residential customers do not have a typical fixed charge that recovers system capacity and related fixed costs, just a volumetric charge based on their strength category. • As mentioned above, non-residential classes do have a separate fixed charge for monitoring, sampling, and pretreatment program costs, but this is only for these directly allocated costs, not system capacity costs. Figure 24 summarizes the allocation of the net revenue requirements to each cost causation component for the proposed rates. Figure 24. Allocation of Revenue Requirements by Customer Class D. Rate Design Analysis During this rate study, NBS discussed with City staff various rate alternatives that collected revenue differently from fixed vs. variable charges. Ultimately, the rate alternative selected by City staff is one similar to the existing rate design. The reasons for selecting this alternative are (1) it maintains the existing rate design developed during the last study which utilize wastewater strengths for various customers types based on values in the State water Resources Control Board guidelines,13 (2) it provides continuity for sewer customers, and (3) it is easy to understand from a customer’s perspective and easy to administrate from City staff’s perspective. FIXED CHARGES The fixed charge recognizes that the wastewater utility incurs fixed costs regardless of whether customers send any wastewater into the City’s collection system. There are three factors used to develop the fixed charge: 1) the number of dwelling units for residential customers, 2) the number of accounts for non- 12 FY 2021/22 data indicate sewer rates currently collect 75% of rate revenue from fixed charges and 25% from volumetric charges. 13 The City’s previous rate study showed domestic customer strengths for BOD and TSS of 200 to 225 mg/l (Table 1, page 5). Residential strength factors used here are the 205 mg/l shown in Table 22. Agenda Item 11.1 Page 213 of 308 City of Gilroy – Comprehensive Water & Wastewater Utility Rate Study Prepared by NBS – August 2023 25 residential customers, and 3) the annual revenue requirement. The monthly fixed charge is calculated by taking 100% of total revenue requirements for residential customer classes and dividing by the number of accounts (for single-family) and by the number of dwelling units (for multi-family). Non-residential fixed charges are based on the directly allocated monitoring, sampling, and pretreatment program costs and divided by the number of accounts in the three non-residential categorical customer classes (i.e., Non-Significant/Categorical, Significant/Categorical, and Other Non-Residential). VARIABLE CHARGES The variable charges are calculated by dividing 100% of the annual net revenue requirements for the non- residential strength-related customer classes by the annual consumption. The residential and non-residential fixed and variable charge calculations are summarized in Figure 25. The typical single-family residential customer has an average winter flow of 5.4 TG/month and strength factors of 205 mg/l for both BOD and TSS. Multi-family customers have an average winter flow of 3.6 TG/month and the same strength factors as single-family customers. Figure 25. Development of Fixed and Variable Charges E. Proposed Wastewater Rates The proposed wastewater rates are similar to existing rates in terms of the rate design and rate methodology. Figure 26 compares the current and proposed rates for FY 2023/24 through FY 2027/28 by customer class. While proposed rates in the first year (FY 2023/24) reflect the cost-of-service adjustments that often occur when they have not been updated in eight years, the projected rates for future years are strictly tied to annual rate increase in an “across-the-board” adjustment. More detailed tables on the development of the proposed rates are documented in Appendix B. Agenda Item 11.1 Page 214 of 308 City of Gilroy – Comprehensive Water & Wastewater Utility Rate Study Prepared by NBS – August 2023 26 Figure 26. Current vs. Proposed Wastewater Rates Note: The proposed rates for FY23/24 will be implemented on January 1, 2024, and annually on January 1 for subsequent fiscal years thereafter F. Comparison of Current and Proposed Wastewater Bills The following figures compare monthly wastewater bills under current and proposed rates for various customers over the 5-year rate period. These bill comparisons are calculated at typical levels of consumption. The last figure presents a comparison of residential sewer rates for similar communities. Figure 27. Single-Family Residential Wastewater Bill Comparison $46.64 $46.64 $46.64 $46.64 $46.64 $51.07 $53.11 $55.24 $57.45 $59.74 $0 $10 $20 $30 $40 $50 $60 $70 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28Monthly BillMonthly Water Consumption (HCF) SFR -Sewer Bill Comparison Current vs. Proposed Rates SFR Bill - Current Rates SFR Bill - Proposed Rates Agenda Item 11.1 Page 215 of 308 City of Gilroy – Comprehensive Water & Wastewater Utility Rate Study Prepared by NBS – August 2023 27 Figure 28. Multi-Family Residential Wastewater Bill Comparison Agenda Item 11.1 Page 216 of 308 City of Gilroy – Comprehensive Water & Wastewater Utility Rate Study Prepared by NBS – August 2023 28 Figure 29. Non-Residential Low Strength Wastewater Bill Comparison Figure 30. Non-Residential Domestic Strength Wastewater Bill Comparison $106.31 $106.31 $106.31 $106.31 $106.31 $119.92 $124.72 $129.71 $134.90 $140.29 $0 $20 $40 $60 $80 $100 $120 $140 $160 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28Monthly BillMonthly Water Consumption (HCF) Low-Strength Commercial Sewer Bill Comparison Current vs. Proposed Rates (28 TG/Mo.) Current Rates Proposed Rates $260.83 $260.83 $260.83 $260.83 $260.83$269.31 $280.09 $291.29 $302.94 $315.06 $0 $50 $100 $150 $200 $250 $300 $350 $400 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28Monthly BillMonthly Water Consumption (HCF) Domestic-Strength Commercial Sewer Bill Comparison Current vs. Proposed Rates (28 TG/Mo.) Current Rates Proposed Rates Agenda Item 11.1 Page 217 of 308 City of Gilroy – Comprehensive Water & Wastewater Utility Rate Study Prepared by NBS – August 2023 29 Figure 31. Non-Residential Medium Strength Wastewater Bill Comparison Figure 32. Non-Residential High Strength Wastewater Bill Comparison $812.78 $812.78 $812.78 $812.78 $812.78 $940.48 $978.10 $1,017.22 $1,057.91 $1,100.23 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28Monthly BillMonthly Water Consumption (HCF) High-Strength Commercial Sewer Bill Comparison Current vs. Proposed Rates (43 TG/Mo.) Current Rates Proposed Rates Agenda Item 11.1 Page 218 of 308 City of Gilroy – Comprehensive Water & Wastewater Utility Rate Study Prepared by NBS – August 2023 30 Figure 33. Residential Bills Comparison for Similar Communities $38.90 $46.06 $46.64 $51.07 $61.30 $72.97 $80.38 $0 $10 $20 $30 $40 $50 $60 $70 $80 $90 San Jose Watsonville Gilroy, Current Gilroy, Proposed Santa Cruz Morgan Hill Hollister Regional Sewer Bill Comparion -SFR Customer Agenda Item 11.1 Page 219 of 308 City of Gilroy – Comprehensive Water & Wastewater Utility Rate Study Prepared by NBS – August 2023 31 Section 4. Recommendations and Next Steps A. Consultant Recommendations NBS recommends the City take the following actions: • Approve and Accept this Study: NBS recommends the City Council formally approve and adopt this Study and its recommendations and proceed with the next steps outlined below to implement the proposed rates. This will provide documentation of the rate study analyses and the basis for analyzing potential changes to future rates. • Implement Recommended Levels of Rate Increases and Proposed Rates: Based on successfully meeting the Prop 218 procedural requirements, the City should proceed with implementing the 5-year schedule of proposed rates and rate increases previously shown in Figure 13 and Figure 26. This will help ensure the continued financial health of City’s utilities. B. Next steps Annually Review Rates and Revenue – Any time an agency adopts new utility rates or rate structures, those new rates should be closely monitored over the next several years to ensure the revenue generated is sufficient to meet the annual revenue requirements. Changing economic and water consumption patterns underscore the need for this review, as well as potential and unseen changing revenue requirements — particularly those related to environmental regulations that can significantly affect capital improvements and repair and replacement costs. Note: The attached Technical Appendices provide more detailed information on the analysis of the financial plan, revenue requirements, cost-of-service, and the rate design analyses that have been summarized in this report. C. NBS’ Principal Assumptions and Considerations In preparing this report and the opinions and recommendations included herein, NBS has relied on several principal assumptions and considerations regarding financial matters, conditions, and events that may occur in the future. This information and these assumptions, including the City’s budgets, capital improvement costs, customer accounts and consumption, and information from City staff were provided by sources we believe to be reliable, although NBS has not independently verified this data. While we believe NBS’ use of such information and assumptions is reasonable for the purpose of this report and its recommendations, some assumptions will invariably not materialize as stated herein and may vary significantly due to unanticipated events and circumstances. Therefore, the actual results can be expected to vary from those projected to the extent that actual future conditions differ from those assumed by us or provided to us by others. Agenda Item 11.1 Page 220 of 308 City of Gilroy – Comprehensive Water & Wastewater Utility Rate Study Prepared by NBS – August 2023 32 Technical Appendices Agenda Item 11.1 Page 221 of 308 City of Gilroy – Comprehensive Water & Wastewater Utility Rate Study Prepared by NBS – August 2023 33 Appendix A. Water Rate Study Tables and Figures Agenda Item 11.1 Page 222 of 308 CITY OF GILROY Financial Plan & Reserve Summary WATER RATE STUDY Financial Plan and Reserve Projections TABLE 1 :FINANCIAL PLAN AND SUMMARY OF REVENUE REQUIREMENTS Budget FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 Sources of Water Funds Rate Revenue:1 User Fees 13,665,000$ 13,939,000$ 14,218,000$ 14,431,270$ 14,647,739$ 14,867,455$ Other Revenue: Connect/Install Charges 105,000 110,000 112,000 113,680 115,385 117,116 Bank Interest & Misc.2 488,737 499,621 509,514 5,075 5,151 5,228 Total Sources of Funds 14,258,737$ 14,548,621$ 14,839,514$ 14,550,025$ 14,768,275$ 14,989,800$ Uses of Water Funds Operating Expenses:1 Water Administration $ 2,759,176 $ 3,460,721 $ 3,533,818 $ 3,636,249 $ 3,748,440 $ 3,864,096 Finance Water Utility Billing 873,507 1,047,309 1,077,076 1,095,995 1,133,828 1,172,968 Water Operations 4,983,992 6,952,444 6,568,972 6,810,814 7,061,889 7,322,564 Valley Water 3,293,972 4,641,000 4,873,050 5,116,703 5,372,538 5,641,165 Additional Capital Expenditures - 404,450 404,450 - - - Subtotal: Operating Expenses 11,910,647$ 16,505,924$ 16,457,366$ 16,659,760$ 17,316,694$ 18,000,793$ Other Expenditures: New Debt Service -$ -$ -$ -$ 453,067$ 906,134$ Rate-Funded Capital Expenses - - - - - - Subtotal: Other Expenditures -$ -$ -$ -$ 453,067$ 906,134$ Total Uses of Water Funds 11,910,647$ 16,505,924$ 16,457,366$ 16,659,760$ 17,769,761$ 18,906,927$ plus: Revenue from Rate Increases3 - 557,560 1,745,841 2,900,027 3,817,967 4,624,944 Annual Surplus/(Deficit) After Rate Increases 2,348,090$ (1,399,743)$ 127,988$ 790,292$ 816,481$ 707,816$ Net Revenue Req't. (Total Uses less Non-Rate Revenue)11,316,910$ 15,896,303$ 15,835,852$ 16,541,005$ 17,649,225$ 18,784,583$ Total Rate Revenue After Rate Increases 13,665,000$ 14,496,560$ 15,963,841$ 17,331,297$ 18,465,706$ 19,492,400$ Projected Annual Rate Revenue Increase 0.00%8.00%8.00%6.00%4.00%4.00% Cumulative Increase from Annual Revenue Increases 0.00%8.00%16.64%23.64%28.58%33.73% Debt Coverage After Rate Increase N/A N/A N/A N/A 2.80 1.78 1. Revenue and expenses for FY 2022/23 provided by the City. Revenues and expenses for all other years are escalated based on the forecasting assumptions in Table 9 (See Exhibit 1 (O&M) Tab). Source file: FY23 Budgets.xlsx . 2. Interest income for FY FY 2022/23 is from the City's Budget. For all other years, it is calculated based on historical LAIF returns. 3. Revenue from rate increases assumes an implementation date of April 1, 2023 for new rates. For each year thereafter, the assumption is that new rates will be implemented on July 1st of each year. 3 <-- Select Financial Plan Scenario Here Financial Plan Alternatives FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 1 Alt 1 - No Annual Rate Increases/No New Debt 0.00%0.00%0.00%0.00%0.00%0.00% 2 Alt 2 - Gen. Infl. Rate Increases/New Rev. Bonds 0.00%3.50%3.50%3.50%3.50%3.50% 3 Alt 3 - Custom Rate Increases/New Rev. Bonds 0.00%8.00%8.00%6.00%4.00%4.00% 4 Alt 4 - Full CIP/No New Debt 0.00%12.00%12.00%12.00%8.00%6.00% CIP Funding Plan: 2 85% Funding of CIP, at actual cost & timing RATE REVENUE REQUIREMENTS SUMMARY 5-Year Projected Rate Period Prepared by NBS www.nbsgov.com | Toll-free: 800.676.7516 Financial Plan, Page 1 of 36 Agenda Item 11.1 Page 223 of 308 CITY OF GILROY Financial Plan & Reserve Summary WATER RATE STUDY Financial Plan and Reserve Projections TABLE 2 :RESERVE FUND SUMMARY Budget FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 Unrestricted Reserve: Total Beginning Cash1 29,603,445$ Operating Reserve Beginning Reserve Balance2 6,000,000$ 5,955,000$ 4,555,257$ 4,683,245$ 5,473,537$ 6,290,019$ Plus: Net Cash Flow (After Rate Increases)2,348,090 (1,399,743) 127,988 790,292 816,481 707,816 Less: Transfer out to Capital and Infrastructure Reserve (2,393,090) - - - - - Ending Operating Reserve Balance 5,955,000$ 4,555,257$ 4,683,245$ 5,473,537$ 6,290,019$ 6,997,835$ Target Ending Balance (6 Months of O&M)2 5,955,000$ 8,253,000$ 8,229,000$ 8,330,000$ 8,658,000$ 9,000,000$ Capital Rehabilitation & Replacement Reserve Beginning Reserve Balance 23,603,445$ 25,382,158$ 22,643,278$ 8,114,397$ 7,583,609$ 7,583,609$ Plus: Transfer of Operating Reserve Surplus 2,393,090 - - - - - Less: Use of Reserves for Capital Projects (614,378) (2,738,879) (14,528,882) (530,788) - (365,779) Ending Capital and Infrastructure Reserve Balance 25,382,158$ 22,643,278$ 8,114,397$ 7,583,609$ 7,583,609$ 7,217,830$ Target Ending Balance (50% of Avg. CIP Costs)3 4,140,000$ 4,140,000$ 4,140,000$ 4,140,000$ 4,140,000$ 4,140,000$ Ending Balance - Unrestricted Reserves 31,337,158$ 27,198,535$ 12,797,642$ 13,057,146$ 13,873,627$ 14,215,665$ Min. Target Ending Balance -Excl. Restricted Reserves 10,095,000$ 12,393,000$ 12,369,000$ 12,470,000$ 12,798,000$ 13,140,000$ Ending Surplus/(Deficit) Compared to Reserve Targets 21,242,158$ 14,805,535$ 428,642$ 587,146$ 1,075,627$ 1,075,665$ 1. Beginning cash balances provided by City staff for Fund 705 - Water Operations. Source file: Account Trial Balance FY22 - 430-435-700-705.pdf . 2. The target ending balance is set equal to 6 months of O&M expenses. 3. The target ending balance is set equal to 50% of average CIP costs for the 5-year rate adoption period. See Exhibit 2 (CIP) for details. TABLE 3 :RESERVE FUND SUMMARY, cont. Budget FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 Restricted Reserve:1 Water Impact Fee Reserve (provided for informational purposes only) Beginning Reserve Balance 6,053,344$ 5,887,790$ 2,632,956$ 4,254,889$ 5,195,043$ 5,540,615$ Plus: Interest Earnings & Misc.99,508 107,507 109,421 47,557 48,451 49,368 Plus: Capacity Fee Revenue 319,569 478,204 1,512,512 892,597 297,121 363,752 Less: Use of Reserves for Capital Projects (584,631) (3,840,545) - - - - Ending Connection Fee Fund Balance 5,887,790$ 2,632,956$ 4,254,889$ 5,195,043$ 5,540,615$ 5,953,735$ Debt Reserve Beginning Reserve Balance -$ -$ -$ -$ -$ 453,067$ Plus: Reserve Funding from New Debt Obligations - - - - 453,067 453,067 Plus: Interest Earnings - - - - - 3,838 Ending Debt Reserve Balance -$ -$ -$ -$ 453,067$ 909,972$ Target Ending Balance -$ -$ -$ -$ 453,067$ 906,134$ Annual Interest Earnings Rate 2 0.85%0.85%0.85%0.85%0.85%0.85% 1. The beginning cash balances provided by the City. Source file: Account Trial Balance FY22 - 430-435-700-705.pdf . 2. Historical interest earning rates are per the average annual yields for funds invested in LAIF (2018-2022). The source is the California State Treasurer's website: https://www.treasurer.ca.gov/pmia-laif/historical/annual.asp . SUMMARY OF CASH ACTIVITY 5-Year Projected Rate Period SUMMARY OF CASH ACTIVITY 5-Year Projected Rate Period Prepared by NBS www.nbsgov.com | Toll-free: 800.676.7516 Financial Plan, Page 2 of 36 Agenda Item 11.1 Page 224 of 308 CITY OF GILROY Charts & Tables WATER RATE STUDY Rate Adjustment Charts and Report Tables CHART 1 $.0 Mil. $5.0 Mil. $10.0 Mil. $15.0 Mil. $20.0 Mil. $25.0 Mil. $30.0 Mil. $35.0 Mil. 2023 2024 2025 2026 2027 2028Annual ObligationsFiscal Year Ending June 30 Water Revenue Requirements vs. Revenue Under Existing and Increased Rates Cash Funded Capital Expenses O&M Expenses Revenues under Existing Rates Revenues under Increased Rates Prepared by NBS www.nbsgov.com | Toll-free: 800.676.7516 Charts and Tables, 3 of 36 Agenda Item 11.1 Page 225 of 308 CITY OF GILROY Charts & Tables WATER RATE STUDY Rate Adjustment Charts and Report Tables CHART 2 $.0 Mil. $5.0 Mil. $10.0 Mil. $15.0 Mil. $20.0 Mil. $25.0 Mil. $30.0 Mil. $35.0 Mil. 2023 2024 2025 2026 2027 2028 Fiscal Year Ending June 30 Ending Unrestricted Reserve vs. Minimum Reserve Targets Ending Cash Balance (Unrestricted Reserves) Minimum Target Reserve Balance Prepared by NBS www.nbsgov.com | Toll-free: 800.676.7516 Charts and Tables, 4 of 36 Agenda Item 11.1 Page 226 of 308 CITY OF GILROY Exhibit 1 WATER RATE STUDY Operating Revenue and Expenses TABLE 4 :REVENUE FORECAST1 Projected Actuals FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 Rate Revenue 705 8000 705 -80-8000-000-45120 User Fees 1 13,665,000$ 13,939,000$ 14,218,000$ 14,431,270$ 14,647,739$ 14,867,455$ Other Revenue 705 8000 705 -80-8000-000-45140 Connect/Install Charges 1 105,000 110,000 112,000 113,680 115,385 117,116 705 8000 705 -80-8000-000-45145 Overhead Revenue 1 - - - - - - 705 8000 705 -80-8000-000-46110 Bank Interest See FP 483,737 494,621 504,514 - - - 705 8000 705 -80-8000-000-47810 Miscellaneous Revenues 1 5,000 5,000 5,000 5,075 5,151 5,228 Subtotal - Other Revenue 593,737 609,621 621,514 118,755 120,536 122,344 Water Impact Fee Revenue 435 5500 435 -55-5500-000-45150 Developer's Impact Fee 1 319,569 478,204 1,512,512 892,597 297,121 363,752 435 5500 435 -55-5500-000-46110 Bank Interest 1 93,615 95,721 97,635 35,771 36,665 37,582 435 5500 435 -55-5500-000-48110 Interfund Transfer In 7 5,893 11,786 11,786 11,786 11,786 11,786 TOTAL: REVENUE 14,677,814$ 15,134,332$ 16,461,447$ 15,490,179$ 15,113,847$ 15,402,920$ DIVISION Basis 5-Year Projected Rate PeriodFUNDACCOUNTDESCRIPTION Prepared by NBS www.nbsgov.com | Toll-Free: 800.676.7516 Exhibit 1 (O&M), 5 of 36 Agenda Item 11.1 Page 227 of 308 CITY OF GILROY Exhibit 1 WATER RATE STUDY Operating Revenue and Expenses TABLE 5 :OPERATING EXPENSE FORECAST1 Projected Actuals FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 Fund 705 - Water Operations 8000 - Water Administration 705 8000 705 -80-8000-000-50120 Wages/Part Time 3 43,597$ 125,000$ 125,000$ 129,375$ 133,903$ 138,590$ 705 8000 705 -80-8000-000-50215 Retirement (Part Time) 3 632 2,813 2,813 2,911 3,013 3,119 705 8000 705 -80-8000-000-50220 Medicare 3 705 1,813 1,813 1,876 1,942 2,010 705 8000 705 -80-8000-000-51510 Professional Support 3 - 26,000 26,000 26,910 27,852 28,827 705 8000 705 -80-8000-000-51620 Audit Services 2 8,700 - - - - - 705 8000 705 -80-8000-000-51630 Contractual Services 2 - 6,500 6,400 705 8000 706 -80-8000-000-54110 Interfund Transfer Out 2 13,796 705 8000 705 -80-8000-000-54130 Fleet Service Charge 2 75,931 98,943 100,692 103,779 106,961 110,241 705 8000 705 -80-8000-000-54140 Facility Service Charge 2 124,543 294,076 316,145 325,838 335,829 346,126 705 8000 705 -80-8000-000-54145 Info Tech Service Charge 2 454,960 606,926 558,596 575,723 593,376 611,570 705 8000 705 -80-8000-000-54150 Overhead Charges 2 1,558,875 1,779,498 1,854,574 1,911,438 1,970,045 2,030,450 705 8000 705 -80-8000-000-54155 Liability Insurance Charges 2 401,933 430,902 452,735 466,617 480,924 495,669 705 8000 705 -80-8000-000-57145 Water Conservation 2 60,504 72,500 72,500 74,723 77,014 79,375 705 8000 705 -80-8000-000-58130 Claims 2 15,000 15,750 16,550 17,057 17,580 18,119 Subtotal - Water Administration 2,759,176$ 3,460,721$ 3,533,818$ 3,636,249$ 3,748,440$ 3,864,096$ 8010 - Finance Water Utility Billing 705 8010 705 -80-8010-000-50110 Salaries 3 455,813$ 580,139$ 620,284$ 641,994$ 664,464$ 687,720$ 705 8010 705-80-8020-000-50110 Utility Billing Sup/Sen. Acct.3 - - - - - - 705 8010 705 -80-8010-000-50114 Earned Leave Cashout 3 5,519 - - - - - 705 8010 705 -80-8010-000-50120 Wages/Part Time 3 23,048 33,750 21,788 22,551 23,340 24,157 705 8010 705 -80-8010-000-50130 Overtime 3 14,000 10,000 10,000 705 8010 705 -80-8010-000-50150 Overtime Meals 3 30 - - 705 8010 705 -80-8010-000-50205 Workers Comp 3 2,023 2,411 2,521 2,610 2,701 2,796 705 8010 705 -80-8010-000-50210 Retirement (Full Time)3 48,749 69,133 71,870 74,385 76,989 79,683 705 8010 705 -80-8010-000-50212 Deferred Compensation 3 1,176 2,016 2,016 2,087 2,160 2,235 705 8010 705 -80-8010-000-50213 UAL Retirement 3 82,911 88,913 95,465 98,806 102,264 105,843 705 8010 705 -80-8010-000-50215 Retirement (Part Time)3 18 759 490 507 525 544 705 8010 705 -80-8010-000-50220 Medicare 3 7,467 9,053 9,466 9,797 10,140 10,495 705 8010 705 -80-8010-000-50225 Health Insurance Benefits 3 105,332 113,442 113,594 117,570 121,685 125,944 705 8010 705 -80-8010-000-50230 Life Insurance Benefits 3 778 757 779 806 834 863 705 8010 705 -80-8010-000-50235 Employee Assistance Prog 3 935 1,087 1,109 1,148 1,188 1,230 705 8010 705 -80-8010-000-50240 Unemployment Insurance 3 805 912 959 992 1,027 1,063 705 8010 705 -80-8010-000-50255 Misc Disability Insurance 3 984 1,260 1,260 1,304 1,350 1,397 705 8010 705 -80-8010-000-50260 Retiree Medical 3 - 900 900 705 8010 705 -80-8010-000-51110 Employee Training 2 - 3,400 3,400 705 8010 705 -80-8010-000-51120 Employee Travel, Food,Lodge 2 669 1,250 1,250 705 8010 705 -80-8010-000-51430 Postage 2 50 100 100 705 8010 705 -80-8010-000-50510 Professional Support 2 2,200 - - 705 8010 705 -80-8010-000-51630 Contractual Services 2 119,000 126,025 117,825 121,438 125,161 128,999 705 8010 705 -80-8010-000-52110 Office/Computer Supplies 2 2,000 2,000 2,000 Subtotal - Finance Water Utility Billing 873,507$ 1,047,309$ 1,077,076$ 1,095,995$ 1,133,828$ 1,172,968$ DIVISION 5-Year Projected Rate Period BasisACCOUNTFUNDDESCRIPTION Prepared by NBS www.nbsgov.com | Toll-Free: 800.676.7516 Exhibit 1 (O&M), 6 of 36 Agenda Item 11.1 Page 228 of 308 CITY OF GILROY Exhibit 1 WATER RATE STUDY Operating Revenue and Expenses TABLE 6 :OPERATING EXPENSE FORECAST, cont.1 Projected Actuals FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 Fund 705 - Water Operations 8020 - Water Operations 705 8020 705 -80-8020-000-50110 Salaries 3 1,463,012$ 2,269,298$ 2,432,834$ 2,517,983$ 2,606,113$ 2,697,327$ 705 8020 705-80-8020-000-50110 FT Engineer I/II (Water)3 - - - - - - 705 8020 705 -80-8020-000-50110 Employee Training 3 - 25,000 25,000 25,875 26,781 27,718 705 8020 705 -80-8020-000-50120 Employee Travel, Food, Lodging 3 - 5,000 5,000 5,175 5,356 5,544 705 8020 705 -80-8020-000-50114 Earned Leave Cashout 3 9,000 - - - - - 705 8020 705 -80-8020-000-50120 Wages/Part Time 3 37,812 - - - - - 705 8020 705 -80-8020-000-50130 Overtime 3 63,051 73,710 77,395 80,104 82,907 85,809 705 8020 705 -80-8020-000-50150 Overtime Meals 3 - 2,000 2,000 2,070 2,142 2,217 705 8020 705 -80-8020-000-50205 Workers Comp 3 77,758 101,497 106,072 109,785 113,627 117,604 705 8020 705 -80-8020-000-50210 Retirement (Full Time)3 152,220 271,399 282,934 292,837 303,086 313,694 705 8020 705 -80-8020-000-50212 Deferred Compensation 3 3,772 7,326 7,326 7,582 7,848 8,122 705 8020 705 -80-8020-000-50213 UAL Retirement 3 293,133 353,639 383,140 396,550 410,429 424,794 705 8020 705 -80-8020-000-50215 Retirement (Part Time)3 521 - - - - - 705 8020 705 -80-8020-000-50220 Medicare 3 24,353 33,996 36,422 37,697 39,016 40,382 705 8020 705 -80-8020-000-50225 Health Insurance Benefits 3 313,426 460,498 461,940 478,108 494,842 512,161 705 8020 705 -80-8020-000-50230 Life Insurance Benefits 3 2,448 3,144 3,243 3,356 3,474 3,595 705 8020 705 -80-8020-000-50235 Employee Assistance Prog 3 2,911 4,262 4,347 4,499 4,657 4,820 705 8020 705 -80-8020-000-50240 Unemployment Insurance 3 2,794 3,620 3,816 3,950 4,088 4,231 705 8020 705 -80-8020-000-50255 Misc Disability Insurance 3 2,999 4,964 4,964 5,138 5,318 5,504 705 8020 705 -80-8020-000-50260 Retiree Medical 3 2,400 2,400 - - - - 705 8020 705 -80-8020-000-50310 Apparel, Boots, Ppe 2 22,291 30,000 30,000 30,920 31,868 32,845 705 8020 705 -80-8020-000-51410 Utilities 5 921,543 1,013,698 1,064,382 1,120,163 1,178,868 1,240,648 705 8020 705 -80-8020-000-51420 Telecommunications 2 50,000 8,100 8,100 8,348 8,604 8,868 705 8020 705 -80-8020-000-51510 Professional Support 2 2,153 5,000 5,000 5,153 5,311 5,474 705 8020 705 -80-8020-000-51630 Contractual Services 2 376,939 1,128,400 450,000 463,798 478,018 492,675 705 8020 705 -80-8020-000-52110 Office/Computer Supplies 2 4,026 15,000 15,000 15,460 15,934 16,423 705 8020 705 -80-8020-000-52150 Department Supplies 2 51,494 60,000 60,000 61,840 63,736 65,690 705 8020 705 -80-8020-000-52210 Repairs & Maintenance 2 147,625 250,000 250,000 257,665 265,566 273,708 705 8020 705 -80-8020-000-52220 Well System Maintenance 2 27,642 150,000 150,000 154,599 159,339 164,225 705 8020 705 -80-8020-000-52310 Equipment Rental 2 33 10,000 10,000 10,307 10,623 10,948 705 8020 705 -80-8020-000-52710 Permits 2 1,973 10,000 10,000 10,307 10,623 10,948 705 8020 705 -80-8020-000-53120 Equipment/Furniture 2 84,337 75,000 75,000 77,300 79,670 82,113 705 8020 705 -80-8020-000-53135 Improvements 2 365,770 - - - - - 705 8020 705 -80-8020-000-53142 Capital Improvement Plan See Exh 2 - - - - - - 705 8020 705 -80-8020-000-54110 Interfund Transfer Out 2 342,000 433,788 458,181 472,229 486,709 501,632 705 8020 705 -80-8020-000-57150 Valley Water 6 3,293,972 4,641,000 4,873,050 5,116,703 5,372,538 5,641,165 Subtotal - Water Operations 8,143,407$ 11,451,740$ 11,295,146$ 11,775,500$ 12,277,089$ 12,800,885$ DIVISION 5-Year Projected Rate PeriodFUNDACCOUNTDESCRIPTIONBasis Prepared by NBS www.nbsgov.com | Toll-Free: 800.676.7516 Exhibit 1 (O&M), 7 of 36 Agenda Item 11.1 Page 229 of 308 CITY OF GILROY Exhibit 1 WATER RATE STUDY Operating Revenue and Expenses TABLE 7 :OPERATING EXPENSE FORECAST, cont.1 Projected Actuals FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 Fund 705 - Water Operations 8030 - Water Backflow Prevention 705 8030 705 -80-8030-000-50110 Salaries 3 79,465$ 74,991$ 79,074$ 81,842$ 84,706$ 87,671$ 705 8030 705 -80-8030-000-50130 Earned Leave Cashout 3 - - - - - - 705 8030 705 -80-8030-000-50205 Wages/Part Time 3 - - - - - - 705 8030 705 -80-8030-000-50210 Overtime 3 6,460 7,500 7,500 7,763 8,034 8,315 705 8030 705 -80-8030-000-50212 Overtime Meals 3 - - - - - - 705 8030 705 -80-8030-000-50213 Compensated Absences 3 - - - - - - 705 8030 705 -80-8030-000-50220 Workers Comp 3 5,789 4,450 4,590 4,751 4,917 5,089 705 8030 705 -80-8030-000-50225 Retirement (Full Time)3 8,537 9,005 9,233 9,556 9,891 10,237 705 8030 705 -80-8030-000-50230 Deferred Compensation 3 249 - - - - - 705 8030 705 -80-8030-000-50235 Ual Retirement 3 16,763 11,703 12,455 12,891 13,342 13,809 705 8030 705 -80-8030-000-50240 Retirement (Part Time)3 - - - - - - 705 8030 705 -80-8030-000-50255 Medicare 3 1,340 1,197 1,256 1,300 1,345 1,393 705 8030 705 -80-8030-000-51430 Health Insurance Benefits 3 14,085 12,312 12,312 12,743 13,189 13,651 705 8030 705 -80-8030-000-51510 Life Insurance Benefits 3 104 90 92 95 99 102 705 8030 705 -80-8030-000-51630 Employee Assistance Prog 3 137 116 119 123 127 132 705 8030 705 -80-8030-000-52110 Unemployment Insurance 3 157 117 122 126 131 135 705 8030 705 -80-8030-000-50255 Misc Disability Insurance 3 141 123 123 127 132 136 705 8030 705 -80-8030-000-51110 Employee Training 3 - 1,000 1,000 1,035 1,071 1,109 705 8030 705 -80-8030-000-51120 Employee Travel, Food,Lodge 3 - 1,000 1,000 1,035 1,071 1,109 705 8030 705 -80-8030-000-51430 Postage 3 - 100 - - - - 705 8030 705 -80-8030-000-51510 Professional Support 3 1,331 1,000 1,000 1,035 1,071 1,109 705 8030 705 -80-8030-000-51630 Contractual Services 3 - 6,000 6,000 6,210 6,427 6,652 705 8030 705 -80-8030-000-52110 Office/Computer Supplies 3 - 1,000 1,000 1,035 1,071 1,109 705 8030 705 -80-8030-000-52210 Repairs & Maintenance 3 - 10,000 10,000 10,350 10,712 11,087 Subtotal - Water Backflow Prevention 134,558$ 141,704$ 146,876$ 152,017$ 157,337$ 162,844$ DIVISION ACCOUNT DESCRIPTION Basis 5-Year Projected Rate PeriodFUND Prepared by NBS www.nbsgov.com | Toll-Free: 800.676.7516 Exhibit 1 (O&M), 8 of 36 Agenda Item 11.1 Page 230 of 308 CITY OF GILROY Exhibit 1 WATER RATE STUDY Operating Revenue and Expenses TABLE 8 :OPERATING EXPENSE FORECAST, cont.1 Projected Actuals FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 Fund 705 - Water Operations Additional Capital Expenditures 705 8020 705-80-8020-000-53120 One-time Vehicles One-Time - 404,450 404,450 - - - Subtotal - Additional Expenditures -$ 404,450$ 404,450$ -$ -$ -$ TOTAL: WATER OPERATIONS EXPENSES 11,910,647$ 16,505,924$ 16,457,366$ 16,659,760$ 17,316,694$ 18,000,793$ TABLE 9 :FORECASTING ASSUMPTIONS Basis 2023 2024 2025 2026 2027 2028 Customer Growth3 1 --1.50%1.50%1.50%1.50%1.50% General Cost Inflation4 2 --3.07%3.07%3.07%3.07%3.07% Labor Cost Inflation5 3 --3.50%3.50%3.50%3.50%3.50% Electricty6 4 --5.64%5.64%5.64%5.64%5.64% Fuel & Utilities7 5 --5.24%5.24%5.24%5.24%5.24% Water Purchases8 6 --5.00%5.00%5.00%5.00%5.00% No Escalation 7 --0.00%0.00%0.00%0.00%0.00% 1. Revenue and expenses for FY 2022/23 provided by the City. Revenues and expenses for all other years are escalated based on the forecasting assumptions in Table 9. Source file: FY23 Budgets.xlsx . 2. Expenses are inflated each year by the following annual inflation factor categories. 3. Customer growth is based on estimated service area population growth through FY 2044/45. Source file: Gilroy 2020 UWMP.pdf , page 3-9. 4. General cost inflation is based on the 5-year average annual change in the Consumer Price Index for all Urban Consumers in the San Francisco-Oakland-Hayward, CA area. 5. Labor cost inflation is based on the 5-year average annual change in the Quarterly Census of Employment and Wages for San Francisco County, CA. 6. Electricity cost inflation is based on the 5-year average change in the Consumer Price Index for San Francisco County. 7. Fuel & Utilities cost inflation is based on the 5-year average annual change in the Consumer Price Index - Average Price Data for Fuels and related products and power. This factor is used for utility costs other than electricity. 8. The growth for water purchases is estimated at 4% annually and calculated using the City's budgets for FY 2021/22 and FY 2022/23. Source file: FY23 Budgets.xlsx . 5-Year Projected Rate PeriodFUNDDIVISIONACCOUNTDESCRIPTIONBasis INFLATION FACTORS2 Prepared by NBS www.nbsgov.com | Toll-Free: 800.676.7516 Exhibit 1 (O&M), 9 of 36 Agenda Item 11.1 Page 231 of 308 CITY OF GILROY Exhibit 2 WATER RATE STUDY Capital Improvement Plan Expenditures TABLE 10 :CAPITAL FUNDING SUMMARY CAPITAL FUNDING FORECAST Budget FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 Grants -$ -$ -$ -$ -$ -$ Use of Capacity Fee Reserves 584,631 3,840,545 - - - - SRF Loan Funding - - - - - - Use of New Revenue Bond Proceeds - - - 6,000,000 6,000,000 4,000,000 Use of Capital Rehabilitation and Replacement Reserve 614,378 2,738,879 14,528,882 530,788 - 365,779 Rate Revenue - - - - - - Total Sources of Capital Funds 1,199,009$ 6,579,425$ 14,528,882$ 6,530,788$ 6,000,000$ 4,365,779$ Uses of Capital Funds: Total Project Costs 1,199,009$ 6,579,425$ 14,528,882$ 6,530,788$ 3,199,919$ 4,365,779$ Capital Funding Surplus (Deficiency)-$ -$ -$ -$ 2,800,082$ -$ SRF Loan Funding -$ -$ -$ -$ -$ -$ New Revenue Bond Proceeds -$ -$ -$ 6,000,000$ 6,000,000$ 4,000,000$ Financial Plan Scenario: 3 Alt 3 - Custom Rate Increases/New Rev. Bonds CAPITAL IMPROVEMENT PROGRAM FUNDING OPTIONS 2 Policy Choice 2023 2024 2025 2026 2027 2028 1 Full Funding of CIP, at actual cost & timing 1,410,599$ 7,740,500$ 17,092,802$ 7,683,280$ 3,764,610$ 5,136,210$ 2 85% Funding of CIP, at actual cost & timing 1,199,009$ 6,579,425$ 14,528,882$ 6,530,788$ 3,199,919$ 4,365,779$ 3 60% Funding of CIP, at actual cost & timing 846,359$ 4,644,300$ 10,255,681$ 4,609,968$ 2,258,766$ 3,081,726$ Capital Improvement Program Funding Choice 2023 2024 2025 2026 2027 2028 Effective Annual Funding Amount 1,199,009$ 6,579,425$ 14,528,882$ 6,530,788$ 3,199,919$ 4,365,779$ 5-Year Projected Rate Period Insert policy choice in box to right, based on options listed below: Funding Sources: Prepared by NBS www.nbsgov.com | Toll-Free: 800.676.7516 Exhibit 2 (CIP), 10 of 36 Agenda Item 11.1 Page 232 of 308 CITY OF GILROY Exhibit 2 WATER RATE STUDY Capital Improvement Plan Expenditures CAPITAL IMPROVEMENT PROGRAM TABLE 11 :CAPITAL IMPROVEMENT PROGRAM COSTS (in Current-Year Dollars ) Project No.Description 2023 2024 2025 2026 2 2027 2028 Capital Improvement Program - Fiscal Year 2023 to Fiscal Year 2028 800250 Casey and Swanston Water Line Replacement -$ 466,707$ 2,825,800$ -$ -$ -$ 800310 Automated Flexnet Water Meter Installation 794,200 612,700 612,700 - - - 800590 Broadway and Sargent Water Line Replacement - - 185,295 877,600 - - 800600 Church and Gurries Water Line Replacement - 86,966 314,600 - - - 800610 Church Street - Welburn to First Water Line Replacement - - 250,335 1,173,400 - - 800620 Forest and Eighth Water Line Replacement - 89,974 369,200 - - - 800630 Steel Water Service Line Replacement Citywide - 104,280 104,280 104,280 104,280 104,280 900740 Monterey-Leavesley to Ronan Water Line Replacement - - 821,473 4,651,900 - - 800640 Monterey and Eighth Water Line Replacement - - 101,325 406,700 - - 800650 Abandon 2" Water Line from 7041 to 7161 Monterey Street - 108,900 847,000 - - - 800660 Murray at Burke Water Line Reroute - - 133,794 469,400 - - 800670 Saint Louise Hospital Large Water Meter Replacement - 63,200 - - - - 800690 Water Reservoirs A and B - Painting - 483,200 - - - - 800700 Water Reservoirs A and B - Retrofit Overflow Piping - 482,000 - - - - 800710 Water Well Nos. 1 and 4 Compliance Improvements - 82,600 - - - - 800720 Water Well Nos. 1, 2, 4 and 6 Upgrade Improvements - 1,025,200 10,527,000 - - - 9000730 Martin and Railroad Water Line - - - - - 1,371,600 Subtotal - Capital Improvement Program 794,200$ 3,605,727$ 17,092,802$ 7,683,280$ 104,280$ 1,475,880$ Water System Master Plan Projects 3 Pipeline Improvements P1-1 Zone 1 -$ -$ -$ -$ 163,250$ 163,250$ P1-2 Monterey Hwy / Orsetti Rd / Hwy 101 - - - - 244,430 244,430 P1-3 Monterey Hwy - - - - 11,690 11,690 P1-4 Murray Ave - - - - 111,650 111,650 P1-5 Arroyo Cir - - - - 3,580 3,580 P1-6 Lewis St - - - - 8,120 8,120 P1-7 Forest St - - - - 13,550 13,550 P1-8 Gilman Rd / Camino Arroyo - - - - 15,240 15,240 P1-9 Pacheco Pass Hwy - - - - 87,810 87,810 P1-10 Camino Arroyo - - - - 154,290 154,290 P1-11 Cameron Blvd - - - - 106,580 106,580 P1-12 ROW - - - - 82,230 82,230 P1-13 ROW / Cameron Blvd - - - - 230,400 230,400 P1-14 Luchessa Ave - - - - 328,850 328,850 P1-15 Thomas Rd - - - - 155,300 155,300 P1-16 Rossi Ln - - - - 138,560 138,560 P1-17 ROW - - - - 91,860 91,860 P1-18 ROW - - - - 146,670 146,670 P1-19 Garlic Farm Wy / Southside Dr - - - - 234,970 234,970 P1-20 Southside Dr - - - - 33,510 33,510 P1-21 Southside Dr - - - - 152,770 152,770 P1-22 Santa Teresa Blvd - - - - 14,230 14,230 Storage Reservoir Improvements 3H-1 Construct an additional storage at existing 3D site - - - - 20,790 20,790 Groundwater Well Improvements GW-10 Intersection of San Ysidro Ave and Las Animas Ave - - - - 370,000 370,000 GW-11 Intersection of Camino Arroyo and Renz Lane - - - - 370,000 370,000 GW-12 Intersection of Wren Ave and Vickery Lane - - - - 370,000 370,000 Subtotal - Master Plan Projects -$ -$ -$ -$ 3,660,330$ 3,660,330$ Impact Fee Projects 4 800050 McCarthy Site Well (Well #9)562,145$ 3,550,800$ -$ -$ -$ -$ Subtotal - Impact Fee Projects 562,145$ 3,550,800$ -$ -$ -$ -$ Estimated Future Projects Future Projects5 -$ -$ -$ -$ -$ -$ Total: CIP Program Costs (Current-Year Dollars)1,356,345$ 7,156,527$ 17,092,802$ 7,683,280$ 3,764,610$ 5,136,210$ Prepared by NBS www.nbsgov.com | Toll-Free: 800.676.7516 Exhibit 2 (CIP), 11 of 36 Agenda Item 11.1 Page 233 of 308 CITY OF GILROY Exhibit 2 WATER RATE STUDY Capital Improvement Plan Expenditures TABLE 12 :CAPITAL IMPROVEMENT PROGRAM COSTS (in Future-Year Dollars )6 Project No.Description 2023 2024 2025 2026 2 2027 2028 Capital Improvement Program - Fiscal Year 2023 to Fiscal Year 2028 800250 Casey and Swanston Water Line Replacement -$ 504,790$ 2,825,800$ -$ -$ -$ 800310 Automated Flexnet Water Meter Installation 825,968 662,696 612,700 - - - 800590 Broadway and Sargent Water Line Replacement - - 185,295 877,600 - - 800600 Church and Gurries Water Line Replacement - 94,062 314,600 - - - 800610 Church Street - Welburn to First Water Line Replacement - - 250,335 1,173,400 - - 800620 Forest and Eighth Water Line Replacement - 97,316 369,200 - - - 800630 Steel Water Service Line Replacement Citywide - 112,789 104,280 104,280 104,280 104,280 900740 Monterey-Leavesley to Ronan Water Line Replacement - - 821,473 4,651,900 - - 800640 Monterey and Eighth Water Line Replacement - - 101,325 406,700 - - 800650 Abandon 2" Water Line from 7041 to 7161 Monterey Street - 117,786 847,000 - - - 800660 Murray at Burke Water Line Reroute - - 133,794 469,400 - - 800670 Saint Louise Hospital Large Water Meter Replacement - 68,357 - - - - 800690 Water Reservoirs A and B - Painting - 522,629 - - - - 800700 Water Reservoirs A and B - Retrofit Overflow Piping - 521,331 - - - - 800710 Water Well Nos. 1 and 4 Compliance Improvements - 89,340 - - - - 800720 Water Well Nos. 1, 2, 4 and 6 Upgrade Improvements - 1,108,856 10,527,000 - - - 9000730 Martin and Railroad Water Line - - - - - 1,371,600 Subtotal - Capital Improvement Program 825,968$ 3,899,954$ 17,092,802$ 7,683,280$ 104,280$ 1,475,880$ Water System Master Plan Projects 3 Pipeline Improvements P1-1 Zone 1 -$ -$ -$ -$ 163,250$ 163,250$ P1-2 Monterey Hwy / Orsetti Rd / Hwy 101 - - - - 244,430 244,430 P1-3 Monterey Hwy - - - - 11,690 11,690 P1-4 Murray Ave - - - - 111,650 111,650 P1-5 Arroyo Cir - - - - 3,580 3,580 P1-6 Lewis St - - - - 8,120 8,120 P1-7 Forest St - - - - 13,550 13,550 P1-8 Gilman Rd / Camino Arroyo - - - - 15,240 15,240 P1-9 Pacheco Pass Hwy - - - - 87,810 87,810 P1-10 Camino Arroyo - - - - 154,290 154,290 P1-11 Cameron Blvd - - - - 106,580 106,580 P1-12 ROW - - - - 82,230 82,230 P1-13 ROW / Cameron Blvd - - - - 230,400 230,400 P1-14 Luchessa Ave - - - - 328,850 328,850 P1-15 Thomas Rd - - - - 155,300 155,300 P1-16 Rossi Ln - - - - 138,560 138,560 P1-17 ROW - - - - 91,860 91,860 P1-18 ROW - - - - 146,670 146,670 P1-19 Garlic Farm Wy / Southside Dr - - - - 234,970 234,970 P1-20 Southside Dr - - - - 33,510 33,510 P1-21 Southside Dr - - - - 152,770 152,770 P1-22 Santa Teresa Blvd - - - - 14,230 14,230 Storage Reservoir Improvements - - - - 3H-1 Construct an additional storage at existing 3D site - - - - 20,790 20,790 Groundwater Well Improvements - - - - GW-10 Intersection of San Ysidro Ave and Las Animas Ave - - - - 370,000 370,000 GW-11 Intersection of Camino Arroyo and Renz Lane - - - - 370,000 370,000 GW-12 Intersection of Wren Ave and Vickery Lane - - - - 370,000 370,000 Subtotal - Master Plan Projects -$ -$ -$ -$ 3,660,330$ 3,660,330$ Impact Fee Projects 4 800050 McCarthy Site Well (Well #9)584,631$ 3,840,545$ -$ -$ -$ -$ Subtotal - Impact Fee Projects 584,631$ 3,840,545$ -$ -$ -$ -$ Estimated Future Projects Future Projects5 -$ -$ -$ -$ -$ -$ Total: CIP Program Costs (Future-Year Dollars)1,410,599$ 7,740,500$ 17,092,802$ 7,683,280$ 3,764,610$ 5,136,210$ Prepared by NBS www.nbsgov.com | Toll-Free: 800.676.7516 Exhibit 2 (CIP), 12 of 36 Agenda Item 11.1 Page 234 of 308 CITY OF GILROY Exhibit 2 WATER RATE STUDY Capital Improvement Plan Expenditures TABLE 13 :FORECASTING ASSUMPTIONS Project No.Description 2023 2024 2025 2026 2 2027 2028 Annual Construction Cost Inflation, Per Engineering News Record7 4.00%4.00%4.00%4.00%4.00%4.00% Cumulative Construction Cost Multiplier from 2023 1.04 1.08 1.12 1.17 1.22 1.27 1. Capital project costs provided by City Staff. Source file: 11. Adopted-CIP-FY24-28.pdf , pages 43, 80-107. 2. Capital projects beginning in FY 2025/26 are unfunded and identified in the City's Capital Improvement Program. These costs have been allocated over a 5-year period from FY 2025/26 through FY 2029/30. Source: 11. Adopted-CIP-FY21-FY25.pdf , pages 243-246. 3. Capital project costs are from the City's Draft Water System Master Plan (May 2022). Source file: Draft Water Master Plan.pdf , Table 8.2, pages 107-108. 4. Capital project funded by impact fees. Source file: 11. Adopted-CIP-FY21-FY25.pdf , pages 98-99. 5. Future project costs beyond FY 2029/30 were calculated based on the City's 7-year average. 6. The project costs in future-year dollars have been inflated by 4% annually. 7. For reference purposes, the annual Construction Cost Inflation percentage is the 5-year average change in the Construction Cost Index for September 2017-2022 (4.0%). Source: Engineering News Record website (http://enr.construction.com ). Prepared by NBS www.nbsgov.com | Toll-Free: 800.676.7516 Exhibit 2 (CIP), 13 of 36 Agenda Item 11.1 Page 235 of 308 CITY OF GILROY Exhibit 3 WATER RATE STUDY Debt Service *Currently, the City does not have any outstanding revenue bonds or loans. TABLE 14 :EXISTING DEBT OBLIGATIONS EXISTING DEBT OBLIGATIONS Budget Annual Repayment Schedules:FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 SRF Loan/Revenue Bond Principal Payment -$ -$ -$ -$ -$ -$ Interest Payment - - - - - - Subtotal: Annual Debt Service -$ -$ -$ -$ -$ -$ Coverage Requirement ($-Amnt above annual payment)-$ -$ -$ -$ -$ -$ Reserve Requirement -$ -$ -$ -$ -$ -$ Grand Total: Existing Annual Debt Service -$ -$ -$ -$ -$ -$ Grand Total: Existing Annual Coverage Requirement -$ -$ -$ -$ -$ -$ Grand Total: Existing Debt Reserve Target -$ -$ -$ -$ -$ -$ TABLE 15 :EXISTING ANNUAL DEBT OBLIGATIONS TO BE SATISFIED BY WATER RATES Existing Annual Debt Service -$ -$ -$ -$ -$ -$ Existing Annual Coverage Requirement -$ -$ -$ -$ -$ -$ Existing Debt Reserve Target -$ -$ -$ -$ -$ -$ 5-Year Projected Rate Period Prepared by NBS www.nbsgov.com | Toll-Free: 800.676.7516 Exhibit 3 (Debt), 14 of 36 Agenda Item 11.1 Page 236 of 308 CITY OF GILROY Exhibit 4 WATER RATE STUDY Projected Water Rates Under Existing Rate Schedule TABLE 16 : CURRENT WATER RATE SCHEDULE Current Rates July 1, 2019 Base Charges Meter Size 3/4 inch $11.53 1 inch $19.24 1 1/2 inch $38.47 2 inch $61.55 3 inch $115.39 4 inch $192.30 6 inch $384.62 8 inch $615.37 10 inch $884.50 Volumetric Charge for All Water Consumed (in $/1,000 Gallons) Tier 1 - 1-30,000 Gallons Zone 1 $4.39 Zone 2 $4.93 Zone 3 $5.52 Tier 2 -30,000+ Gallons Zone 1 $4.93 Zone 2 $5.47 Zone 3 $6.06 1. Rates available on the City website. Source: https://www.cityofgilroy.org/758/Water-and-Wastewater-Rates . 2. Senior citizens who qualify for PG&E's Care Program may apply for a senior low income discount that gives them an exemption for the monthly base charge and the first 5,000 gallons per month. Water Rate Schedule1,2 Prepared by NBS www.nbsgov.com | Toll-Free: 800.676.7516 Exhibit 4 (Current Rates), 15 of 36 Agenda Item 11.1 Page 237 of 308 CITY OF GILROY WATER RATE STUDY Cost-of-Service Analysis & Rate Design TABLE 17 :CLASSIFICATION OF EXPENSES FOR COST OF SERVICE ANALYSIS Classification of Expenses FY 2023/24 (COM)(CAP)(CA)(COM)(CAP)(CA) Fund 705 - Water Operations 8000 - Water Administration Wages/Part Time 125,000$ 31,250$ 31,250$ 62,500$ 25.0%25.0%50.0% Retirement (Part Time) 2,813 703 703 1,407 25.0%25.0%50.0% Medicare 1,813 453 453 907 25.0%25.0%50.0% Professional Support 26,000 6,500 6,500 13,000 25.0%25.0%50.0% Audit Services - - - - 25.0%25.0%50.0% Contractual Services 6,500 1,625 1,625 3,250 25.0%25.0%50.0% Fleet Service Charge 98,943 24,736 24,736 49,472 25.0%25.0%50.0% Facility Service Charge 294,076 73,519 73,519 147,038 25.0%25.0%50.0% Info Tech Service Charge 606,926 151,732 151,732 303,463 25.0%25.0%50.0% Overhead Charges 1,779,498 444,875 444,875 889,749 25.0%25.0%50.0% Liability Insurance Charges 430,902 107,726 107,726 215,451 25.0%25.0%50.0% Water Conservation 72,500 18,125 18,125 36,250 25.0%25.0%50.0% Claims 15,750 3,938 3,938 7,875 25.0%25.0%50.0% Subtotal - Water Administration 3,460,721$ 865,180$ 865,180$ 1,730,361$ 25.0%25.0%50.0% 8010 - Finance Water Utility Billing Salaries 580,139$ 232,056$ 290,070$ 58,014$ 40.0%50.0%10.0% Utility Billing Sup/Sen. Acct.- - - - 40.0%50.0%10.0% Earned Leave Cashout - - - - 40.0%50.0%10.0% Wages/Part Time 33,750 13,500 16,875 3,375 40.0%50.0%10.0% Overtime 10,000 4,000 5,000 1,000 40.0%50.0%10.0% Overtime Meals - - - - 40.0%50.0%10.0% Workers Comp 2,411 964 1,206 241 40.0%50.0%10.0% Retirement (Full Time)69,133 27,653 34,566 6,913 40.0%50.0%10.0% Deferred Compensation 2,016 806 1,008 202 40.0%50.0%10.0% Ual Retirement 88,913 35,565 44,456 8,891 40.0%50.0%10.0% Retirement (Part Time)759 304 380 76 40.0%50.0%10.0% Medicare 9,053 3,621 4,527 905 40.0%50.0%10.0% Health Insurance Benefits 113,442 45,377 56,721 11,344 40.0%50.0%10.0% Life Insurance Benefits 757 303 379 76 40.0%50.0%10.0% Employee Assistance Prog 1,087 435 544 109 40.0%50.0%10.0% Unemployment Insurance 912 365 456 91 40.0%50.0%10.0% Misc Disability Insurance 1,260 504 630 126 40.0%50.0%10.0% Retiree Medical 900 360 450 90 40.0%50.0%10.0% Employee Training 3,400 1,360 1,700 340 40.0%50.0%10.0% Employee Travel, Food,Lodge 1,250 500 625 125 40.0%50.0%10.0% Postage 100 40 50 10 40.0%50.0%10.0% Professional Support - - - - 40.0%50.0%10.0% Contractual Services 126,025 50,410 63,013 12,603 40.0%50.0%10.0% Office/Computer Supplies 2,000 800 1,000 200 40.0%50.0%10.0% Subtotal - Finance Water Utility Billing 1,047,309$ 418,923$ 523,654$ 104,731$ 40.0%50.0%10.0% Budget Categories Total Revenue Requirements Commodity Capacity Basis of ClassificationCustomer Prepared by NBS www.nbsgov.com | Toll-Free: 800.676.7516 Funct. & Classification, 16 of 36 Agenda Item 11.1 Page 238 of 308 CITY OF GILROY WATER RATE STUDY Cost-of-Service Analysis & Rate Design TABLE 18 :CLASSIFICATION OF EXPENSES FOR COST OF SERVICE ANALYSIS, cont. Classification of Expenses FY 2023/24 (COM)(CAP)(CA)(COM)(CAP)(CA) Fund 705 - Water Operations 8020 - Water Operations Salaries 2,269,298$ 1,021,184$ 1,134,649$ 113,465$ 45.0%50.0%5.0% Ft Engineer I/Ii (Water)- - - - 45.0%50.0%5.0% Employee Training 25,000 11,250 12,500 1,250 45.0%50.0%5.0% Employee Travel, Food, Lodging 5,000 2,250 2,500 250 45.0%50.0%5.0% Earned Leave Cashout - - - - 45.0%50.0%5.0% Wages/Part Time - - - - 45.0%50.0%5.0% Overtime 73,710 33,170 36,855 3,686 45.0%50.0%5.0% Overtime Meals 2,000 900 1,000 100 45.0%50.0%5.0% Workers Comp 101,497 45,674 50,749 5,075 45.0%50.0%5.0% Retirement (Full Time)271,399 122,130 135,700 13,570 45.0%50.0%5.0% Deferred Compensation 7,326 3,297 3,663 366 45.0%50.0%5.0% Ual Retirement 353,639 159,138 176,820 17,682 45.0%50.0%5.0% Retirement (Part Time)- - - - 45.0%50.0%5.0% Medicare 33,996 15,298 16,998 1,700 45.0%50.0%5.0% Health Insurance Benefits 460,498 207,224 230,249 23,025 45.0%50.0%5.0% Life Insurance Benefits 3,144 1,415 1,572 157 45.0%50.0%5.0% Employee Assistance Prog 4,262 1,918 2,131 213 45.0%50.0%5.0% Unemployment Insurance 3,620 1,629 1,810 181 45.0%50.0%5.0% Misc Disability Insurance 4,964 2,234 2,482 248 45.0%50.0%5.0% Retiree Medical 2,400 1,080 1,200 120 45.0%50.0%5.0% Apparel, Boots, Ppe 30,000 13,500 15,000 1,500 45.0%50.0%5.0% Utilities 1,013,698 456,164 506,849 50,685 45.0%50.0%5.0% Telecommunications 8,100 3,645 4,050 405 45.0%50.0%5.0% Professional Support 5,000 2,250 2,500 250 45.0%50.0%5.0% Contractual Services 1,128,400 507,780 564,200 56,420 45.0%50.0%5.0% Office/Computer Supplies 15,000 6,750 7,500 750 45.0%50.0%5.0% Department Supplies 60,000 27,000 30,000 3,000 45.0%50.0%5.0% Repairs & Maintenance 250,000 112,500 125,000 12,500 45.0%50.0%5.0% Well System Maintenance 150,000 67,500 75,000 7,500 45.0%50.0%5.0% Equipment Rental 10,000 4,500 5,000 500 45.0%50.0%5.0% Permits 10,000 4,500 5,000 500 45.0%50.0%5.0% Equipment/Furniture 75,000 33,750 37,500 3,750 45.0%50.0%5.0% Improvements - - - - 45.0%50.0%5.0% Capital Improvement Plan - - - - 45.0%50.0%5.0% Interfund Transfer Out 433,788 195,205 216,894 21,689 45.0%50.0%5.0% Valley Water 4,641,000 4,641,000 - - 100.0%0.0%0.0% Subtotal - Water Operations 11,451,740$ 7,705,833$ 3,405,370$ 340,537$ 67.3%29.7%3.0% Budget Categories Total Revenue Requirements Commodity Capacity Customer Basis of Classification Prepared by NBS www.nbsgov.com | Toll-Free: 800.676.7516 Funct. & Classification, 17 of 36 Agenda Item 11.1 Page 239 of 308 CITY OF GILROY WATER RATE STUDY Cost-of-Service Analysis & Rate Design TABLE 19 :CLASSIFICATION OF EXPENSES FOR COST OF SERVICE ANALYSIS, cont. Classification of Expenses FY 2023/24 (COM)(CAP)(CA)(COM)(CAP)(CA) Fund 705 - Water Operations 8030 - Water Backflow Prevention Salaries 74,991$ 33,746$ 37,496$ 3,750$ 45.0%50.0%5.0% Earned Leave Cashout - - - - 45.0%50.0%5.0% Wages/Part Time - - - - 45.0%50.0%5.0% Overtime 7,500 3,375 3,750 375 45.0%50.0%5.0% Overtime Meals - - - - 45.0%50.0%5.0% Compensated Absences - - - - 45.0%50.0%5.0% Workers Comp 4,450 2,003 2,225 223 45.0%50.0%5.0% Retirement (Full Time)9,005 4,052 4,503 450 45.0%50.0%5.0% Deferred Compensation - - - - 45.0%50.0%5.0% Ual Retirement 11,703 5,266 5,852 585 45.0%50.0%5.0% Retirement (Part Time)- - - - 45.0%50.0%5.0% Medicare 1,197 539 599 60 45.0%50.0%5.0% Health Insurance Benefits 12,312 5,540 6,156 616 45.0%50.0%5.0% Life Insurance Benefits 90 41 45 5 45.0%50.0%5.0% Employee Assistance Prog 116 52 58 6 45.0%50.0%5.0% Unemployment Insurance 117 53 59 6 45.0%50.0%5.0% Misc Disability Insurance 123 55 62 6 45.0%50.0%5.0% Employee Training 1,000 450 500 50 45.0%50.0%5.0% Employee Travel, Food,Lodge 1,000 450 500 50 45.0%50.0%5.0% Postage 100 45 50 5 45.0%50.0%5.0% Professional Support 1,000 450 500 50 45.0%50.0%5.0% Contractual Services 6,000 2,700 3,000 300 45.0%50.0%5.0% Office/Computer Supplies 1,000 450 500 50 45.0%50.0%5.0% Repairs & Maintenance 10,000 4,500 5,000 500 45.0%50.0%5.0% Subtotal - Water Backflow Prevention 141,704$ 63,767$ 70,852$ 7,085$ 45.0%50.0%5.0% Additional Capital Expenditures One-Time Vehicles -$ -$ -$ -$ 100.0%0.0%0.0% Subtotal - Additional Expenditures 404,450 404,450 - - 100.0%0.0%0.0% Subtotal - Additional Expenditures 404,450$ 404,450$ -$ -$ 100.0%0.0%0.0% Rate-Funded CIP -$ -$ -$ -$ 0.0%100.0%0.0% TOTAL: WATER OPERATIONS EXPENSES 16,505,924$ 9,458,154$ 4,865,057$ 2,182,714$ 57.3%29.5%13.2% TABLE 20 :CLASSIFICATION OF EXPENSES FOR COST OF SERVICE ANALYSIS, cont. Classification of Expenses, continued FY 2023/24 (COM)(CAP)(CA)(COM)(CAP)(CA) Debt Service Payments Outstanding Debt -$ -$ -$ -$ 0.0%100.0%0.0% New Debt Issue - SRF Loan - - - - 0.0%100.0%0.0% New Debt Issue - Revenue Bond - - - - 0.0%100.0%0.0% Total Debt Service Payments -$ -$ -$ -$ 0.0%100.0%0.0% Capital Expenditures Rate Funded Capital Expenses -$ -$ -$ -$ 50.0%50.0%0.0% TOTAL REVENUE REQUIREMENTS 16,505,924$ 9,458,154$ 4,865,057$ 2,182,714$ 57.3%29.5%13.2% Less: Non-Rate Revenues Other Revenue Connect/Install Charges (110,000)$ (63,032)$ (32,422)$ (14,546)$ 57.3%29.5%13.2% Overhead Revenue - - - - 57.3%29.5%13.2% Bank Interest (494,621) (283,426) (145,788) (65,408) 57.3%29.5%13.2% Miscellaneous Revenues (5,000) (2,865) (1,474) (661) 57.3%29.5%13.2% NET REVENUE REQUIREMENTS 15,896,303$ 9,108,831$ 4,685,373$ 2,102,098$ Allocation of Revenue Requirements 100.0%57.3%29.5%13.2% Basis of ClassificationBudget Categories Total Revenue Requirements Budget Categories Total Revenue Requirements Commodity Commodity Capacity Basis of Classification Customer CustomerCapacity Prepared by NBS www.nbsgov.com | Toll-Free: 800.676.7516 Funct. & Classification, 18 of 36 Agenda Item 11.1 Page 240 of 308 CITY OF GILROY WATER RATE STUDY Cost-of-Service Analysis & Rate Design TABLE 21 :ADJUSTMENT TO CLASSIFICATION OF EXPENSES FOR COST OF SERVICE ANALYSIS Classification of Expenses Adjustment for Current Rate Level:Total (COM)(CAP)(CA) Test Year (FY 2023/24) Target Rate Rev. After Rate Increases 15,054,120$ Projected Rate Revenue at Current Rates 13,939,000$ Test Year (FY 2023/24) Projected Rate Adjustment 8% Adjusted Net Revenue Req'ts 15,054,120$ 8,626,247$ 4,437,143$ 1,990,730$ Percent of Revenue 100.0%57.3%29.5%13.2% TABLE 22 :NET REVENUE REQUIREMENTS PER COSA RESULTS Total Rate Revenue Requirements FY 2023/24 Commodity Related Costs Capacity Related Costs Customer Related Costs Rate-Design Adjustments to Fixed/Variable %100.0%57.3%29.5%13.2% Rate-Design Adjustments to Fixed/Variable ($)$15,054,120 $8,626,247 $4,437,143 $1,990,730 TABLE 23 :REVISED NET REVENUE REQUIREMENTS PER COSA RESULTS - ALT. #1 Rate-Design Adjustments to Fixed/Variable %100.0%57.0%30.0%13.0% Rate-Design Adjustments to Fixed/Variable % (Rounded)100.0%60.0%30.0%10.0% Rate-Design Adjustments to Fixed/Variable ($)$15,054,120 $9,032,472 $4,516,236 $1,505,412 TABLE 24 :REVISED NET REVENUE REQUIREMENTS - 30% FIXED/70% VOLUMETRIC) - ALT. #2 Rate-Design Adjustments to Fixed/Variable %100.0%70.0%21.0%9.0% Rate-Design Adjustments to Fixed/Variable ($)1 $15,054,120 $10,537,884 $3,161,365 $1,354,871 TABLE 25 :REVISED NET REVENUE REQUIREMENTS - (50% FIXED/50% VOLUMETRIC) - ALT. #3 Rate-Design Adjustments to Fixed/Variable %102.0%50.0%40.0%12.0% Rate-Design Adjustments to Fixed/Variable ($)1 $15,054,120 $7,527,060 $6,021,648 $1,806,494 Net Revenue Requirements - Per COSA Results 57% Fixed / 43% Variable Prepared by NBS www.nbsgov.com | Toll-Free: 800.676.7516 Funct. & Classification, 19 of 36 Agenda Item 11.1 Page 241 of 308 CITY OF GILROY WATER RATE STUDY Cost-of-Service Analysis & Rate Design TABLE 26 : DEVELOPMENT OF THE COMMODITY ALLOCATION FACTOR Development of the Volumetric/Variable Allocation Factor1 Customer Class FY 2021/22 (1,000 Gal.yr.) % Adjustment for Conservation Est. FY 2021/22 Volume Adjusted for Conservation FY 2021/22 % of Total Volume (TG/Yr.) Residential 1,348,786 0.0%1,348,786 60.6% Multi-Family 259,687 0.0%259,687 11.7% Commercial/Industrial 333,884 0.0%333,884 15.0% Institutional 38,459 0.0%38,459 1.7% Landscape 231,215 0.0%231,215 10.4% City Account 59 0.0%59 0.0% Hydrant 14,948 0.0%14,948 0.7% Total 2,227,038 2,227,038 100% 1. Consumption data is based on the City of Gilroy's billing data. TABLE 27 : DEVELOPMENT OF THE CAPACITY ALLOCATION FACTORS Development of the PEAK CAPACITY (MAX MONTH) Allocation Factors Customer Class Average Monthly Use (TG) Peak Monthly Use (TG) Peak Monthly Factor Max Month Capacity Factor Residential 112,399 168,922 1.50 61.1% Multi-Family 21,641 26,139 1.21 9.5% Commercial/Industrial 27,824 34,412 1.24 12.4% Institutional 3,205 6,341 1.98 2.3% Landscape 19,268 37,423 1.94 13.5% City Account 5 6 1.22 0.0% Hydrant 1,246 3,340 2.68 1.2% Total 185,586 276,583 1.49 100% 1. Based on peak monthly data (peak day data not available). TABLE 28 : DEVELOPMENT OF THE CUSTOMER ALLOCATION FACTORS Development of the Customer Allocation Factor Customer Class No. of Meters FY 2021/221 Percent of Total Residential 13,518 87.2% Multi-Family 521 3.4% Commercial/Industrial 858 5.5% Institutional 34 0.2% Landscape 515 3.3% City Account 35 0.2% Hydrant 19 0.1% Total 15,500 100.0% 1. Meter count data is based on the City's billing data for June 2022. Capacity Related Costs: Costs associated with the maximum demand required at one point in time or the maximum size of facilities required to meet this demand. Commodity Related Costs: Costs associated with the total consumption (flow) of water over a specified period of time (e.g. annual). Customer Related Costs: Costs associated with having a customer on the water system. These costs vary with the addition or deletion of customers on the system. Examples: Meter-reading, Postage and billing. Prepared by NBS www.nbsgov.com | Toll-Free: 800.676.7516 Allocation Factors, 20 of 36 Agenda Item 11.1 Page 242 of 308 CITY OF GILROY WATER RATE STUDY Cost-of-Service Analysis & Rate Design TABLE 29 : ALLOCATION OF WATER REVENUE REQUIREMENTS Commodity-Related Costs 9,032,472$ 60.0%10,537,884$ 70.0%7,527,060$ 49.0% Capacity-Related Costs 4,516,236 30.0%3,161,365 21.0%6,021,648 39.0% Customer-Related Costs 1,505,412 10.0%1,354,871 9.0%1,806,494 12.0% Net Revenue Requirement 15,054,120$ 100.0%15,054,120$ 100.0%15,355,202$ 100.0% TABLE 30 : COST-OF-SERVICE SUMMARY OF REVENUE REQUIREMENTS Residential 9,541,651$ 63.4%9,494,615$ 63.1%9,811,925$ 63.9% Multi-Family 1,530,618 10.2%1,573,058 10.4%1,507,461 9.8% Commercial/Industrial 1,999,425 13.3%2,048,215 13.6%1,977,699 12.9% Institutional 262,825 1.7%257,430 1.7%272,002 1.8% Landscape 1,598,854 10.6%1,566,826 10.4%1,656,253 10.8% City Account 3,737 0.0%3,407 0.0%4,409 0.0% Hydrant 117,010 0.8%110,568 0.7%125,454 0.8% Total 15,054,120$ 100%15,054,120$ 100%15,355,202$ 100% TABLE 31 : ALLOCATION OF UNADJUSTED NET REVENUE REQUIREMENTS - FY 2023/24 Alt. 1 - 40% Fixed / 60% Variable VARIABLE Residential 5,470,437$ 2,758,274$ 1,312,941$ 9,541,651$ 63.4% Multi-Family 1,053,245 426,815 50,558 1,530,618 10.2% Commercial/Industrial 1,354,175 561,903 83,348 1,999,425 13.3% Institutional 155,983 103,540 3,302 262,825 1.7% Landscape 937,767 611,068 50,019 1,598,854 10.6% City Account 239 98 3,399 3,737 0.0% Hydrant 60,626 54,538 1,845 117,010 0.8% Total Net Revenue Requirement 9,032,472$ 4,516,236$ 1,505,412$ 15,054,120$ 100% VARIABLE $9,032,472 % of COS Net Revenue Req'ts COSA Allocated Costs FY 2020/21 2023/24 COS Rev. Req't Allocated Costs FY 2020/21 ALT. 2 (30% Fixed / 70% Variable) ALT. 1 (Preferred) (40% Fixed / 60% Variable) % of COS Rev. Req't. 2023/24 COS Rev. Req't % of COS Rev. Req't. % of COS Rev. Req't. 2023/24 COS Rev. Req't Customer Class Allocated Costs FY 2020/21 Net Rev. Reqts (FY 2023/24) Cost of Service Net Revenue Requirements $15,054,120Total Net Revenue Requirement by Classification Component Customer Classes FIXED Classification Components FIXED $6,021,648 Classification Components ALTERNATIVE 3 (50% Fixed / 50% Variable) Cost-of-Service Net Revenue Requirements (FY 2023/24)1 Net Rev. Reqts (FY 2023/24) Customer- Related Costs Commodity- Related Costs Capacity-Related Costs Prepared by NBS www.nbsgov.com | Toll-Free: 800.676.7516 Proposed Fixed Charges, 21 of 36 Agenda Item 11.1 Page 243 of 308 CITY OF GILROY WATER RATE STUDY Cost-of-Service Analysis & Rate Design TABLE 32 : CALCULATION OF MONTHLY FIXED METER SERVICE CHARGES FOR FY 2023/24 - ALTERNATIVE 2 Alt. 1 - 40% Fixed / 60% Variable 3/4 inch 1 inch 1 1/2 inch 2 inch 3 inch 4 inch 6 inch 8 inch 10 inch Residential 4,445 8,273 172 459 167 2 0 0 0 13,518 Multi-Family 137 203 84 56 24 17 0 0 0 521 Commercial/Industrial 251 330 0 249 10 14 3 0 1 858 Institutional 0 1 0 15 8 9 1 0 0 34 Landscape 34 182 79 212 4 4 0 0 0 515 City Account 5 7 1 19 2 1 0 0 0 35 Hydrant 0 0 0 0 19 0 0 0 0 19 Total Meters/Accounts 4,872 8,996 336 1,010 234 47 4 0 1 15,500 Hydraulic Capacity Factor 2 1.00 1.67 3.33 5.33 10.67 16.67 33.33 53.33 140.00 Total Equivalent Meters 4,872 14,993 1,120 5,387 2,496 783 133 0 140 29,925 Monthly Fixed Service Charges Customer Costs ($/Acct/month)3 $8.09 $8.09 $8.09 $8.09 $8.09 $8.09 $8.09 $8.09 $8.09 Capacity Costs ($/Acct/month)4 $12.58 $20.96 $41.92 $67.08 $134.15 $209.61 $419.22 $670.76 $1,760.74 Total Monthly Meter Charge $20.67 $29.05 $50.02 $75.17 $142.24 $217.70 $427.32 $678.85 $1,768.83 Annual Fixed Costs Allocated to Monthly Meter Charges Customer Costs $ 1,505,412 Capacity Costs 4,516,236 Total Fixed Meter Costs 6,021,648$ Annual Revenue from Monthly Meter Charges Customer Charges 473,185$ 873,722$ 32,633$ 98,095$ 22,727$ 4,565$ 388$ -$ 97$ 1,505,412$ Capacity Charges 735,283$ 2,262,797$ 169,031$ 812,957$ 376,697$ 118,221$ 20,123$ -$ 21,129$ 4,516,236$ Total Rev. from Mo. Meter Charges 1,208,468$ 3,136,518$ 201,664$ 911,051$ 399,424$ 122,786$ 20,511$ -$ 21,226$ 6,021,648$ 1. Meter by Class and Size are based on June 2022 customer billing data. 2. Source: AWWA Manual M1, "Principles of Water Rates, Fees, and Charges", Table B-1 3. Customer costs are allocated to each customer by dividing the total customer costs by the total number of customers. 4. Capacity costs are allocated by meter size and the hydraulic capacity of the meter. Number of Meters by Class and Size1 Total FY2023/24 Prepared by NBS www.nbsgov.com | Toll-Free: 800.676.7516 Proposed Fixed Charges, 22 of 36 Agenda Item 11.1 Page 244 of 308 CITY OF GILROY WATER RATE STUDY Cost-of-Service Analysis & Rate Design TABLE 33 : ALLOCATION OF UNADJUSTED NET REVENUE REQUIREMENTS - FY 2023/24 Alt. 2 - 30% Fixed / 70% Variable VARIABLE Residential 6,382,176$ 1,930,792$ 1,181,647$ 9,494,615$ 63.1% Multi-Family 1,228,786 298,771 45,502 1,573,058 10.4% Commercial/Industrial 1,579,871 393,332 75,013 2,048,215 13.6% Institutional 181,980 72,478 2,972 257,430 1.7% Landscape 1,094,062 427,748 45,017 1,566,826 10.4% City Account 279 69 3,059 3,407 0.0% Hydrant 70,731 38,176 1,661 110,568 0.7% Total Net Revenue Requirement 10,537,884$ 3,161,365$ 1,354,871$ 15,054,120$ 99% VARIABLE $10,537,884 TABLE 34 : CALCULATION OF MONTHLY FIXED METER SERVICE CHARGES FOR FY 2023/24 - ALTERNATIVE 1 Alt. 2 - 30% Fixed / 70% Variable 3/4 inch 1 inch 1 1/2 inch 2 inch 3 inch 4 inch 6 inch 8 inch 10 inch Residential 4,445 8,273 172 459 167 2 0 0 0 13,518 Multi-Family 137 203 84 56 24 17 0 0 0 521 Commercial/Industrial 251 330 0 249 10 14 3 0 1 858 Institutional 0 1 0 15 8 9 1 0 0 34 Landscape 34 182 79 212 4 4 0 0 0 515 City Account 5 7 1 19 2 1 0 0 0 35 Hydrant 0 0 0 0 19 0 0 0 0 19 Total Meters/Accounts 4,872 8,996 336 1,010 234 47 4 0 1 15,500 Hydraulic Capacity Factor 2 1.00 1.67 3.33 5.33 10.67 16.67 33.33 53.33 140.00 Total Equivalent Meters 4,872 14,993 1,120 5,387 2,496 783 133 0 140 29,925 Monthly Fixed Service Charges Customer Costs ($/Acct/month)3 $7.28 $7.28 $7.28 $7.28 $7.28 $7.28 $7.28 $7.28 $7.28 Capacity Costs ($/Acct/month)4 $8.80 $14.67 $29.35 $46.95 $93.91 $146.73 $293.46 $469.53 $1,232.51 Total Monthly Meter Charge $16.09 $21.96 $36.63 $54.24 $101.19 $154.01 $300.74 $476.81 $1,239.80 Annual Fixed Costs Allocated to Monthly Meter Charges Customer Costs $ 1,354,871 Capacity Costs 3,161,365 Total Fixed Meter Costs 4,516,236$ Annual Revenue from Monthly Meter Charges Customer Charges 425,866$ 786,350$ 29,370$ 88,285$ 20,454$ 4,108$ 350$ -$ 87$ 1,354,871$ Capacity Charges 514,698 1,583,958 118,321 569,070 263,688 82,755 14,086 - 14,790 3,161,365 Total Revenue from Monthly Meter Charges 940,565$ 2,370,307$ 147,692$ 657,355$ 284,142$ 86,863$ 14,436$ -$ 14,878$ 4,516,236$ 1. Meter by Class and Size are based on June 2022 customer billing data. 2. Source: AWWA Manual M1, "Principles of Water Rates, Fees, and Charges", Table B-1 3. Customer costs are allocated to each customer by dividing the total customer costs by the total number of customers. 4. Capacity costs are allocated by meter size and the hydraulic capacity of the meter. $15,054,120 Cost of Service Net Rev. Req'ts % of COS Net Revenue Req'tsCustomer Classes Capacity-Related Costs Customer- Related Costs Classification Components FIXED Commodity- Related Costs Total Net Revenue Requirement by Classification Component Number of Meters by Class and Size1 FY2023/24 FIXED $4,516,236 Total Prepared by NBS www.nbsgov.com | Toll-Free: 800.676.7516 Proposed Fixed Charges, 23 of 36 Agenda Item 11.1 Page 245 of 308 CITY OF GILROY WATER RATE STUDY Cost-of-Service Analysis & Rate Design TABLE 35 : FIXED CHARGES REVENUE CHECK 3/4 inch 1 inch 1 1/2 inch 2 inch 3 inch 4 inch 6 inch 8 inch 10 inch Residential 4,445 8,273 172 459 167 2 0 0 0 13,518 Multi-Family 137 203 84 56 24 17 0 0 0 521 Commercial/Industrial 251 330 0 249 10 14 3 0 1 858 Institutional 0 1 0 15 8 9 1 0 0 34 Landscape 34 182 79 212 4 4 0 0 0 515 City Account 5 7 1 19 2 1 0 0 0 35 Hydrant 0 0 0 0 19 0 0 0 0 19 Total Meters/Accounts 4,872 8,996 336 1,010 234 47 4 0 1 15,500 TABLE 36 : PROJECTED FIXED REVENUE CHECK Alt. 2 - 30% Fixed / 70% Variable 3/4 inch 1 inch 1 1/2 inch 2 inch 3 inch 4 inch 6 inch 8 inch 10 inch Charges by Meter Size $16.09 $21.96 $36.63 $54.24 $101.19 $154.01 $300.74 $476.81 $1,239.80 Revenue from Fixed Charges Residential 858,130$ 2,179,808$ 75,604$ 298,738$ 202,785$ 3,696$ -$ -$ -$ 3,618,762$ Multi-Family 26,449 53,487 36,923 36,447 29,143 31,418 - - - 213,867 Commercial/Industrial 48,457 86,950 - 162,061 12,143 25,874 10,827 - 14,878 361,189 Institutional - 263 - 9,763 9,714 16,633 3,609 - - 39,983 Landscape 6,564 47,954 34,725 137,979 4,857 7,393 - - - 239,472 City Account 965 1,844 440 12,366 2,429 1,848 - - - 19,892 Hydrant - - - - 23,071 - - - - 23,071 Total Revenue - Fixed Charges 4,516,236$ TABLE 37 : PROJECTED FIXED REVENUE CHECK ` Residential 3,112,439$ 3,618,762$ 506,323$ Multi-Family 344,273 213,867 (130,405) Commercial/Industrial 468,345 361,189 (107,156) Institutional 75,450 39,983 (35,467) Landscape 472,764 239,472 (233,292) City Account 3,128 19,892 16,764 Hydrant 39,837 23,071 (16,766) Total 4,516,236$ 4,516,236$ -$ Number of Meters by Class and Size Total FY2023/24 Projected Revenue From Fixed Charges by Customer Class FY2023/24 Total Customer Class Net Revenue Requirement (Alternative 1 - 30% Fixed / 70% Variable) COS Rev. Req't Expected Revenue Over/(Under) Collected Prepared by NBS www.nbsgov.com | Toll-Free: 800.676.7516 Fixed Charges Revenue Check, 24 of 36 Agenda Item 11.1 Page 246 of 308 CITY OF GILROY WATER RATE STUDY Cost-of-Service Analysis & Rate Design TABLE 38 : PROJECTED FIXED REVENUE CHECK Alt. 1 - 40% Fixed / 60% Variable 3/4 inch 1 inch 1 1/2 inch 2 inch 3 inch 4 inch 6 inch 8 inch 10 inch Charges by Meter Size $20.67 $29.05 $50.02 $75.17 $142.24 $217.70 $427.32 $678.85 $1,768.83 Revenue from Fixed Charges Residential 1,102,554$ 2,884,439$ 103,233$ 414,032$ 285,059$ 5,225$ -$ -$ -$ 4,794,541$ Multi-Family 33,982 70,777 50,416 50,514 40,967 44,412 - - - 291,067 Commercial/Industrial 62,259 115,057 - 224,606 17,069 36,574 15,383 - 21,226 492,175 Institutional - 349 - 13,530 13,656 23,512 5,128 - - 56,175 Landscape 8,433 63,456 47,415 191,231 6,828 10,450 - - - 327,812 City Account 1,240 2,441 600 17,139 3,414 2,612 - - - 27,446 Hydrant - - - - 32,432 - - - - 32,432 Total Revenue - Fixed Charges 6,021,648$ TABLE 39 : PROJECTED FIXED REVENUE CHECK ` Residential 4,071,215$ 4,794,541$ 723,326$ Multi-Family 477,373 291,067 (186,306) Commercial/Industrial 645,250 492,175 (153,076) Institutional 106,842 56,175 (50,668) Landscape 661,087 327,812 (333,275) City Account 3,497 27,446 23,949 Hydrant 56,383 32,432 (23,951) Total 6,021,648$ 6,021,648$ -$ Projected Revenue From Fixed Charges by Customer Class Total FY2023/24 Customer Class Net Revenue Requirement (Alternative 2 (COSA) - 40% Fixed / 60% Variable) COS Rev. Req't Expected Revenue Over/(Under) Collected Prepared by NBS www.nbsgov.com | Toll-Free: 800.676.7516 Fixed Charges Revenue Check, 25 of 36 Agenda Item 11.1 Page 247 of 308 CITY OF GILROY WATER RATE STUDY Cost-of-Service Analysis & Rate Design TABLE 40 : PROJECTED FIXED REVENUE CHECK Net Revenue Requirements (Alternative 3 - 50% Fixed / 50% Variable) 3/4 inch 1 inch 1 1/2 inch 2 inch 3 inch 4 inch 6 inch 8 inch 10 inch Charges by Meter Size $26.48 $37.66 $65.61 $99.15 $188.58 $289.19 $568.68 $904.05 $2,357.36 Revenue from Fixed Charges Residential 1,412,510$ 3,738,785$ 135,416$ 546,099$ 377,916$ 6,941$ -$ -$ -$ 6,217,667$ Multi-Family 43,535 91,741 66,134 66,626 54,311 58,996 - - - 381,343 Commercial/Industrial 79,762 149,136 - 296,250 22,630 48,585 20,472 - 28,288 645,122 Institutional - 452 - 17,846 18,104 31,233 6,824 - - 74,459 Landscape 10,804 82,251 62,197 252,229 9,052 13,881 - - - 430,414 City Account 1,589 3,163 787 22,605 4,526 3,470 - - - 36,141 Hydrant - - - - 42,996 - - - - 42,996 Total Revenue - Fixed Charges 7,828,142$ TABLE 41 : PROJECTED FIXED REVENUE CHECK ` Residential 5,253,228$ 6,217,667$ 964,439$ Multi-Family 629,757 381,343 (248,414) Commercial/Industrial 849,221 645,122 (204,099) Institutional 142,016 74,459 (67,557) Landscape 874,780 430,414 (444,366) City Account 4,210 36,141 31,932 Hydrant 74,931 42,996 (31,935) Total 7,828,142$ 7,828,142$ -$ Projected Revenue From Fixed Charges by Customer Class FY2023/24 Total Customer Class Net Revenue Requirement (Alternative 3 - 40% Fixed / 60% Variable) COS Rev. Req't Expected Revenue Over/(Under) Collected Prepared by NBS www.nbsgov.com | Toll-Free: 800.676.7516 Fixed Charges Revenue Check, 26 of 36 Agenda Item 11.1 Page 248 of 308 CITY OF GILROY WATER RATE STUDY Cost-of-Service Analysis & Rate Design TABLE 42 : PROPOSED VOLUMETRIC CHARGES FOR FY 2022/23 Alt. 1 - 40% Fixed / 60% Variable Zone 1 Zone 2 Zone 3 Residential - Tier 1 1,348,786 60.6%4,912,312$ $3.64 $4.00 $4.37 $4.73 Multi-Family 259,687 11.7%945,787 $3.64 $4.00 $4.37 $4.73 Commercial/Industrial 333,884 15.0%1,216,014 $3.64 $4.00 $4.37 $4.73 Institutional 38,459 1.7%140,069 $3.64 $4.00 $4.37 $4.73 Landscape 231,215 10.4%842,091 $3.64 $4.00 $4.37 $4.73 City Account 59 0.0%215 $3.64 $4.00 $4.37 $4.73 Hydrant 14,948 0.7%54,441 $3.64 $4.00 $4.37 $4.73 Total Potable Water 2,227,038 39.4%8,110,929$ Pumping Costs 921,543 Total Volumetric Reve. Reqts.9,032,472$ 1. Water consumption is actual consumption for FY 2021/22 and includes an adjustment for conservation. 2. Total volumetric revenue requirements based on rate alternative less supply costs and pumping costs. TABLE 43 : CONSUMPTION BY ZONE FOR FY 2021/22 Zone 1 Zone 2 Zone 3 Residential 1,110,987 198,886 38,913 1,348,786 Multi-Family 259,459 0 228 259,687 Comm/Industrial 333,140 744 0 333,884 Institutional 38,459 0 0 38,459 Landscape 202,531 28,638 46 231,215 City Account 59 0 0 59 Hydrant 7,654 1,737 5,557 14,948 Total 1,952,289 230,005 44,744 2,227,038 TABLE 44 : PUMPING BY ZONE FOR FY 2021/22 Zone 1 Zone 2 Zone 3 Residential 1,348,786 237,799 38,913 1,625,498 Multi-Family 259,687 228 228 260,143 Comm/Industrial 333,884 744 0 334,628 Institutional 38,459 0 0 38,459 Landscape 231,215 28,684 46 259,945 City Account 59 0 0 59 Hydrant 14,948 7,294 5,557 27,799 Total 2,227,038 274,749 44,744 2,546,531 1. Includes water in Zone 3 pumped throuhg Zones 1 and 2, etc. Total Pumping Uniform Commodity Rates Including Pumping Costs ($/TG)Water Use (TG/yr.)1 Total Vol. Rev. Reqts. (Excl. Pumping) Alt. 1 - 40% Fixed / 60% Variable - CONSUMPTION by Zone Customer Class CONSUMPTION by Zone and by Class (TG/Yr.)Total Consumption Customer Classes % of Total Water Use Uniform Commodity Rates ($/TG) Alt. 1 - 40% Fixed / 60% Variable - PUMPING by Zone Customer Class PUMPING by Zone and by Class (TG/Yr.)1 Prepared by NBS www.nbsgov.com | Toll-Free: 800.676.7516 Vol Rates - Alt 1, 27 of 36 Agenda Item 11.1 Page 249 of 308 CITY OF GILROY WATER RATE STUDY Cost-of-Service Analysis & Rate Design TABLE 45 : ESTIMATED ZONAL PUMPING COSTS AND RATES BY CUSTOMER CLASS AND ZONE Zone 1 Zone 2 Zone 3 Residential $488,101 $86,055 $14,082 $588,238 Multi-Family $93,976 $83 $83 $94,141 Comm/Industrial $120,827 $269 $0 $121,096 Institutional $13,918 $0 $0 $13,918 Landscape $83,672 $10,380 $17 $94,069 City Account $21 $0 $0 $21 Hydrant $5,409 $2,640 $2,011 $10,060 Total $805,924 $99,427 $16,192 $921,543 Pumping by Zone (TG/Yr.)2,227,038 274,749 44,744 Zonal Pumping Rate ($/TG)$0.362 $0.362 $0.362 TABLE 46 : VOLUMETRIC RATES BY CUSTOMER CLASS AND ZONE Alt. 1 (40% Fixed/60% Vol.) - Cumulative Zonal Vol. Rates by Zone Zone 1 Zone 2 Zone 3 Residential $3.64 $4.004 $4.366 $4.728 Multi-Family 3.64 $4.004 $4.366 $4.728 Comm/Industrial 3.64 $4.004 $4.366 $4.728 Institutional 3.64 $4.004 $4.366 $4.728 Landscape 3.64 $4.004 $4.366 $4.728 City Account 3.64 $4.004 $4.366 $4.728 Hydrant 3.64 $4.004 $4.366 $4.728 TABLE 47 : ESTIMATED VOLUMETRIC REVENUE BY CUSTOMER CLASS AND ZONE Zone 1 Zone 2 Zone 3 Residential $4,448,288 $868,294 $183,968 $5,500,550 Multi-Family 1,038,850 0 1,078 1,039,928 Comm/Industrial 1,333,862 3,248 0 1,337,110 Institutional 153,986 0 0 153,986 Landscape 810,915 125,027 217 936,160 City Account 236 0 0 236 Hydrant 30,646 7,583 26,272 64,501 Grand Total $7,816,784 $1,004,153 $211,535 $9,032,472 Customer Class Volumetric Revenue by Zone ($/Yr.)Total Volumetric Rate Revenue Customer Class Zonal Pumping Costs ($/Yr.)Zonal Costs by Class ($/Yr.) Customer Class Volumetric Rates Cumulative Vol. Rates by Zone ($/TG) Prepared by NBS www.nbsgov.com | Toll-Free: 800.676.7516 Vol Rates - Alt 1, 28 of 36 Agenda Item 11.1 Page 250 of 308 CITY OF GILROY WATER RATE STUDY Cost-of-Service Analysis & Rate Design CURRENT VS. PROPOSED WATER RATES Alt. 1 - 40% Fixed / 60% Variable FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 Monthly Fixed Service Charges Meter Size 3/4 inch $11.53 $20.67 $22.32 $23.66 $24.61 $25.59 1 inch $19.24 $29.05 $31.38 $33.26 $34.59 $35.98 1 1/2 inch $38.47 $50.02 $54.02 $57.26 $59.55 $61.93 2 inch $61.55 $75.17 $81.18 $86.05 $89.50 $93.08 3 inch $115.39 $142.24 $153.62 $162.84 $169.36 $176.13 4 inch $192.30 $217.70 $235.12 $249.23 $259.20 $269.57 6 inch $384.62 $427.32 $461.50 $489.19 $508.76 $529.11 8 inch $615.37 $678.85 $733.16 $777.15 $808.23 $840.56 10 inch $884.50 $1,768.83 $1,910.34 $2,024.96 $2,105.95 $2,190.19 Residential Customers - Tiered Volumetric Rates Tier 1 - Zone 1 $4.39 $4.00 $4.32 $4.58 $4.77 $4.96 Tier 1 - Zone 2 $4.93 $4.37 $4.72 $5.00 $5.20 $5.41 Tier 1 - Zone 3 $5.52 $4.73 $5.11 $5.41 $5.63 $5.85 Tier 2 ( more than 30 TG) Tier 2 - Zone 1 $4.93 N.A.N.A.N.A.N.A.N.A. Tier 2 - Zone 2 $5.47 N.A.N.A.N.A.N.A.N.A. Tier 2 - Zone 3 $6.06 N.A.N.A.N.A.N.A.N.A. Note: The City recently transitioned from July1-June 30 fiscal years to calendar years (January to December). Current Rates Proposed RatesWater Rate Schedule Variable Charges for All Water Consumed ($/1,000 gallons (or TG)) Uniform Vol. Rates Prepared by NBS www.nbsgov.com | Toll-Free: 800.676.7516 Current & Proposed Rates, 29 of 36 Agenda Item 11.1 Page 251 of 308 Prepared by NBS www.nbsgov.com | Toll-Free: 800.676.7516 SFR Bill Comp Tiers, 30 of 36$32.41$41.19$45.58$55.68$67.53$85.09$107.04$41.07$49.07$53.08$62.29$73.10$89.11$109.13$36.00$45.36$50.04$60.80$73.44$92.16$115.55$0 $25 $50 $75 $100 $125 3 5 6 8.3 11 15 20Monthly BillMonthly Water Consumption (TG) Single-Family Residential Water Bill Comparison Current vs. Proposed FY'23/24 Rates (1" Meter) Residential Bill - Current Rates Residential Bill 60/40 V/F Residential Bill 70/30 V/F Average ANNUAL Bill (8.3 TG/mo.)Average WINTER Bill (6 TG/mo.) Average SUMMER Bill (11 TG/mo.) Agenda Item 11.1 Page 252 of 308 $62.29$67.27$71.31$74.16$77.12$55.68$60.80$65.66$69.60$72.39$75.28$0 $10 $20 $30 $40 $50 $60 $70 $80 $90 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28Monthly BillMonthly Water Consumption (TG) Residential Water Bill Comparison 5-Year Projection (1" Meter) Resid. - 5-Year Rates (60/40 V/F) Resid. - 5-Year Rates (70/30 V/F) Average Monthly Water Use - 8.3 TG Agenda Item 11.1 Page 253 of 308 Prepared by NBS www.nbsgov.com | Toll-Free: 800.676.7516 MFR Bill Comp, 32 of 36$104.32$148.22$200.90$222.85$244.80$279.92$323.82$110.07$150.11$198.16$218.18$238.20$270.23$310.27$106.83$153.63$209.79$233.18$256.58$294.02$340.82$0 $25 $50 $75 $100 $125 $150 $175 $200 $225 $250 $275 $300 $325 $350 15 25 37 42 47 55 65Monthly BillMonthly Water Consumption (TG) Multi-Family Residential Water Bill Comparison Current vs. Proposed FY'22/23 Rates (1.5" Meter) Multi-Family Residential Bill - Current Rates Multi-Family Residential Bill 60/40 V/F Multi-Family Residential Bill 70/30 V/F Average ANNUAL Bill (42 TG/mo.)Average WINTER Bill (37 TG/mo.) Average SUMMER Bill (47 TG/mo.) Agenda Item 11.1 Page 254 of 308 Prepared by NBS www.nbsgov.com | Toll-Free: 800.676.7516 Commercial Bill Comp, 33 of 36$55.43$99.33$134.45$152.01$178.35$252.98$340.78$60.71$100.75$132.78$148.80$172.82$240.89$320.96$62.89$109.69$147.12$165.84$193.92$273.48$367.08$0 $50 $100 $150 $200 $250 $300 $350 $400 10 20 28 32 38 55 75Monthly BillMonthly Water Consumption (TG) Commercial Water Bill Comparison Current vs. Proposed FY'23/24 Rates (< 1" Meter) Commercial Bill - Current Rates Commercial Bill 60/40 V/F Commercial Bill 70/30 V/F Average WINTER Bill (28 TG/mo.) Average ANNUAL Bill (32 TG/mo.) Average SUMMER Bill (38 TG/mo.) Agenda Item 11.1 Page 255 of 308 $152.01 $148.80$160.70$170.34$177.15$184.24$165.84$179.11$189.86$197.45$205.35$0 $50 $100 $150 $200 $250 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28Monthly BillMonthly Water Consumption (TG) Commercial Water Bill Comparison 5-Year Projection (1" Meter) Commercial - 5-Year Rates (60/40 V/F) Commercial - 5-Year Rates (70/30 V/F) Annual Monthly Water Use - 32 TG Agenda Item 11.1 Page 256 of 308 Prepared by NBS www.nbsgov.com | Toll-Free: 800.676.7516 Commercial Bill Comp (2), 35 of 36$149.35$237.15$342.51$425.92$478.60$544.45$610.30$147.83$241.43$353.75$442.67$498.83$569.02$639.22$155.25$235.33$331.42$407.49$455.54$515.60$575.66$0 $100 $200 $300 $400 $500 $600 $700 $800 20 40 64 83 95 110 125Monthly BillMonthly Water Consumption (TG) Commercial Water Bill Comparison Current vs. Proposed FY'22/23 Rates (2" Meter) Commercial Bill - Current Rates Commercial Bill 70/30 V/F Commercial Bill 60/40 V/F Average WINTER Bill (64 TG/mo.) Average ANNUAL Bill (83 TG/mo.) Average SUMMER Bill (95 TG/mo.) Agenda Item 11.1 Page 257 of 308 Prepared by NBS www.nbsgov.com | Toll-Free: 800.676.7516 Landscape Bill Comp, 36 of 36$33.48$64.21$173.96$301.27$384.68$45.36$78.12$195.11$330.83$419.75$49.07$77.10$177.20$293.31$369.39$0 $50 $100 $150 $200 $250 $300 $350 $400 $450 5 12 37 66 85Monthly BillMonthly Water Consumption (TG) Landscape Bill Comparison - Commercial Current vs. Proposed FY'22/23 Rates (2" Meter) Landscape Bill - Current Rates Landscape Bill 70/30 V/F Landscape Bill 60/40 V/F Average ANNUAL Bill (37 TG/mo.) Average WINTER Bill (12 TG/mo.) Average SUMMER Bill (66 TG/mo.) Agenda Item 11.1 Page 258 of 308 City of Gilroy – Comprehensive Water & Wastewater Utility Rate Study Prepared by NBS – August 2023 34 Appendix B. Wastewater Rate Study Tables and Figures Agenda Item 11.1 Page 259 of 308 CITY OF GILROY Financial Plan & Reserve Summary SEWER RATE STUDY Financial Plan and Reserve Projections TABLE 1 : FINANCIAL PLAN AND SUMMARY OF REVENUE REQUIREMENTS Projected Actuals FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 Sources of Funds 1 Rate Revenue: User Fees 13,247,000$ 13,512,000$ 13,782,000$ 13,988,730$ 14,198,561$ 14,411,539$ Other Revenue: Misc. Revenue & Interest Earnings2 992,066 649,871 397,017 15,619 15,853 16,091 Interfund Transfer In 1,533,500 2,244,000 2,244,000 2,244,000 2,244,000 2,244,000 Total: Sources of Funds 15,772,566$ 16,405,871$ 16,423,017$ 16,248,349$ 16,458,414$ 16,671,630$ Uses of Water Funds 1 Operating Expenses: 7500 - Sewer Administration 3,606,254$ 2,143,559$ 2,202,325$ 2,339,468$ 2,481,991$ 2,625,123$ 7510 - Finance Sewer Utility Billing 921,605 1,037,477 1,083,341 1,120,978 1,159,924 1,200,226 7520 - Sewer Operations 2,758,341 4,362,836 4,320,125 4,464,460 4,613,637 4,767,818 SCWRA Oper. Costs (less Monit., Sampl., Pre-Tr.Costs)5,715,995 6,146,815 6,517,038 6,781,500 6,989,600 7,207,300 Monitoring, Sampling, Pretreatment (Non-Resid. Costs)N.A.365,700 440,200 388,500 400,400 412,700 Subtotal: Operating Expenses 13,002,195$ 13,690,686$ 14,122,829$ 14,706,406$ 15,245,153$ 15,800,467$ Other Expenditures: Existing Debt Service 1,533,500$ 2,244,000$ 2,244,400$ 2,243,600$ 2,241,600$ 2,243,300$ Rate-Funded Capital Expenses - 75,401 335,906 211,300 755,038 1,334,115 Subtotal: Other Expenditures 1,533,500$ 2,319,401$ 2,580,306$ 2,454,900$ 2,996,638$ 3,577,415$ Total: Uses of Funds 14,535,695$ 16,010,087$ 16,703,135$ 17,161,306$ 18,241,791$ 19,377,882$ Plus: Revenue from Rate Increases2 - 540,480 1,121,811 1,743,733 2,408,627 3,119,008 Annual Surplus/(Deficit)1,236,871$ 936,264$ 841,693$ 830,775$ 625,250$ 412,756$ Net Revenue Reqt. (Total Uses less Non-Rate Revenue)12,010,129$ 13,116,216$ 14,062,118$ 14,901,687$ 15,981,938$ 17,117,791$ Total Rate Revenue After Rate Increases 13,247,000$ 14,052,480$ 14,903,811$ 15,732,463$ 16,607,187$ 17,530,547$ Projected Annual Rate Revenue Increase 0.00%4.00%4.00%4.00%4.00%4.00% Cumulative Increase from Annual Revenue Increases 0.00%4.00%8.16%12.49%16.99%21.67% Debt Coverage After Rate Increase (1.25 required)1.81 1.45 1.52 1.46 1.62 1.78 1. Revenue and expenses for FY 2022/23 through FY204/25 provided by the City. Revenues and expenses for all other years are escalated based on the forecasting assumptions in Table 9 (See Exhibit 1 (O&M) Tab). Source file: FY23 Budgets.xlsx . The new vehicles expense in FY24 and FY25 was transferred to the CIP budget to avoid incresaing rates to meet coverage requirements. 2. Interest income for FY2022-23 through FY2024-25 is from the City's Budget. For all other years, it is calculated based on historical LAIF returns. 3. Revenue from rate increases assumes an implementation date of April 1, 2023 for new rates. For each year thereafter, the assumption is that new rates will be implemented on July 1st of each year. Selection of Financial Plan Alternative 2 Financial Plan Alternatives FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 1 Alternative 1 - 2% Annual Rate Increases 0.00%2.00%2.00%2.00%2.00%2.00% 2 Alternative 2 - 4% Annual Rate Increases 0.00%4.00%4.00%4.00%4.00%4.00% 3 Alternative 3 - Custom Rate Increases 0.00%7.00%7.00%7.00%7.00%7.00% 4 No Rate Increases 0.00%0.00%0.00%0.00%0.00%0.00% RATE REVENUE REQUIREMENTS SUMMARY 5-Year Projected Rate Period Prepared by NBS www.nbsgov.com | Toll-Free: 800.676.7516 Financial Plan, 1 of 34 Agenda Item 11.1 Page 260 of 308 CITY OF GILROY Financial Plan & Reserve Summary SEWER RATE STUDY Financial Plan and Reserve Projections TABLE 2 : EXCLUDED PLEDGE SUMMARYRESERVE FUND SUMMARY Projected Actuals FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 Total Beginning Cash1 18,206,179$ Unrestricted Reserves: Operating Reserve Beginning Reserve Balance 13,654,634$ 6,501,000$ 6,845,000$ 7,061,000$ 7,353,000$ 7,623,000$ Plus: Net Cash Flow (After Rate Increases)1,236,871 936,264 841,693 830,775 625,250 412,756 Plus: Transfer of Debt Reserve Surplus - - - - - - Plus: Interest Earnings - 56,234 59,209 61,078 63,603 65,939 Less: Transfer Out to Capital Replacement Reserve (8,390,505) (648,498) (684,902) (599,853) (418,853) (201,695) Ending Operating Reserve Balance 6,501,000$ 6,845,000$ 7,061,000$ 7,353,000$ 7,623,000$ 7,900,000$ Target Ending Balance (6 months of O&M)2 6,501,000$ 6,845,000$ 7,061,000$ 7,353,000$ 7,623,000$ 7,900,000$ Capital Rehabilitation & Replacement Reserve Beginning Reserve Balance 4,551,545$ 12,942,049$ 13,495,633$ 11,271,248$ 8,151,561$ 6,946,887$ Plus: Grant Proceeds - - - - - - Plus: Transfer of Operating Reserve Surplus 8,390,505 648,498 684,902 599,853 418,853 201,695 Less: Use of Reserves for Capital Projects - (94,914) (2,909,287) (3,719,540) (1,623,527) (1,500,000) Ending Capital Rehab & Replacement Reserve Balance 12,942,049$ 13,495,633$ 11,271,248$ 8,151,561$ 6,946,887$ 5,648,582$ Target Ending Balance (Avg. Annual CIP)3 4,420,000$ 4,420,000$ 4,420,000$ 4,420,000$ 4,420,000$ 4,420,000$ Ending Cash Balance - Excl. Restricted Reserves 19,443,049$ 20,340,633$ 18,332,248$ 15,504,561$ 14,569,887$ 13,548,582$ Min. Target Ending Cash Balance -Excl. Restricted Reserves10,921,000$ 11,265,000$ 11,481,000$ 11,773,000$ 12,043,000$ 12,320,000$ Ending Surplus/(Deficit) Compared to Reserve Targets 8,522,049$ 9,075,633$ 6,851,248$ 3,731,561$ 2,526,887$ 1,228,582$ Days Cash on Hand 546 540 463 380 333 289 Annual Interest Earnings Rate 4 0.85%0.85%0.85%0.85%0.85%0.85% 1. Beginning cash balances provided by City staff for Fund 700 - Sewer Operations. Source file: Account Trial Balance FY22 - 430-435-700-705.pdf . 2. The target ending balance is set equal to 90-days of O&M expenses. 3. The target ending balance is set equal to the average annual CIP costs in future dollars for City infrastructure of approximately $30 M; we have doubled this to reflect a lesser reserve target that includes about 50% of SCRWA infrastructure (i.e., half of $74 M). 4. Historical interest earning rates are per the average annual yields for funds invested in LAIF (2018-2022). The source is the California State Treasurer's website: https://www.treasurer.ca.gov/pmia-laif/historical/annual.asp . SUMMARY OF CASH ACTIVITY SEWER FUND RESERVES 5-Year Projected Rate Period Prepared by NBS www.nbsgov.com | Toll-Free: 800.676.7516 Financial Plan, 2 of 34 Agenda Item 11.1 Page 261 of 308 CITY OF GILROY Financial Plan & Reserve Summary SEWER RATE STUDY Financial Plan and Reserve Projections TABLE 3 : EXCLUDED PLEDGE SUMMARYRESERVE FUND SUMMARY, cont. Projected FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 Restricted Reserves: Sewer Impact Fee Reserve Beginning Reserve Balance1 14,976,546$ 15,048,572$ 15,194,152$ 18,873,406$ 19,967,880$ 18,302,389$ Plus: Allocated Interest Earnings1 219,443 224,381 228,868 234,590 240,454 246,466 Less: Interfund Transfer out (1,533,500) (2,244,000) (2,244,000) (2,244,000) (2,244,000) (2,244,000) Plus: Interfund Transfer In 386,083 437,408 410,049 Plus: Impact Fee Revenue1 1,000,000 1,803,192 5,620,243 3,315,184 1,093,093 1,357,983 Less: Use of Reserves for Capital Projects2 - (75,401) (335,906) (211,300) (755,038) (2,840,381) Ending Impact Fee Fund Balance 15,048,572$ 15,194,152$ 18,873,406$ 19,967,880$ 18,302,389$ 14,822,457$ Target Ending Balance -$ -$ -$ -$ -$ -$ Debt Reserve Beginning Reserve Balance3 -$ -$ -$ -$ -$ -$ Ending Debt Reserve Balance -$ -$ -$ -$ -$ -$ Target Ending Balance -$ -$ -$ -$ -$ -$ Annual Interest Earnings Rate 4 0.87%0.87%0.87%0.87%0.87%0.87% 1. Beginning cash balance for FY 2022/23 provided by City staff. Source file: 4 - Current Cash and Fund Balance - Wastewater 12062021.xlsx . 2. Determined in the CIP (Exhibit 2). 4. Historical interest earning rates are per the average annual yields for funds invested in LAIF (2018-2022). The source is the California State Treasurer's website: https://www.treasurer.ca.gov/pmia-laif/historical/annual.asp . SUMMARY OF CASH ACTIVITY 5-Year Projected Rate Period Prepared by NBS www.nbsgov.com | Toll-Free: 800.676.7516 Financial Plan, 3 of 34 Agenda Item 11.1 Page 262 of 308 CITY OF GILROY Charts & Tables SEWER RATE STUDY Financial Plan Charts CHART 1 $.0 Mil $2.0 Mil $4.0 Mil $6.0 Mil $8.0 Mil $10.0 Mil $12.0 Mil $14.0 Mil $16.0 Mil $18.0 Mil $20.0 Mil 2023 2024 2025 2026 2027 2028Annual ObligationsFiscal Year Ending June 30 Sewer Revenue Requirements vs. Revenue Under Existing and Increased Rates Rate Funded Capital Expenses O&M Expenses Revenues under Existing Rates Revenues under Increased Rates Prepared by NBS www.nbsgov.com | Toll-Free: 800.676.7516 Charts and Tables, 4 of 34 Agenda Item 11.1 Page 263 of 308 CITY OF GILROY Charts & Tables SEWER RATE STUDY Financial Plan Charts CHART 2 $.0 Mil $5.0 Mil $10.0 Mil $15.0 Mil $20.0 Mil $25.0 Mil 2023 2024 2025 2026 2027 2028 Fiscal Year Ending June 30 Ending Cash Balances vs. Recommended Reserve Targets Sewer Fund - Unrestricted Reserves Ending Cash Balance Minimum Target Reserve Balance Prepared by NBS www.nbsgov.com | Toll-Free: 800.676.7516 Charts and Tables, 5 of 34 Agenda Item 11.1 Page 264 of 308 CITY OF GILROY Charts & Tables SEWER RATE STUDY Financial Plan Charts CHART 3 0.00% 4.00%4.00%4.00%4.00%4.00% 0% 1% 1% 2% 2% 3% 3% 4% 4% 5% 2023 2024 2025 2026 2027 2028 Fiscal Year Ending June 30 Projected Increases to Rate Revenue Prepared by NBS www.nbsgov.com | Toll-Free: 800.676.7516 Charts and Tables, 6 of 34 Agenda Item 11.1 Page 265 of 308 CITY OF GILROY Exhibit 1 - O&M SEWER RATE STUDY Operating Revenue and Expenses TABLE 4 :REVENUE FORECAST1 Projected Actuals FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 Rate Revenue 700 7500 700 -75-7500-000-45120 User Fees 1 13,247,000$ 13,512,000$ 13,782,000$ 13,988,730$ 14,198,561$ 14,411,539$ Other Revenue 700 7500 700 -75-7500-000-45145 Overhead Revenue 1 14,505 14,940 15,388 15,619 15,853 16,091 700 7500 700 -75-7500-000-46110 Bank Interest See FP 327,561 334,931 341,629 - - - 700 7500 700 -75-7500-000-46310 Other Interest 1 650,000 300,000 40,000 - - - 700 7500 700 -75-7500-000-48110 Interfund Transfer In 6 1,533,500 2,244,000 2,244,000 2,244,000 2,244,000 2,244,000 700 7500 700 -75-7500-000-48420 Bond Proceeds 6 - - - - - - 700 7510 700 -75-7510-000-43110 Federal Grant 6 - - - - - - TOTAL: RATE AND OTHER REVENUE 15,772,566$ 16,405,871$ 16,423,017$ 16,248,349$ 16,458,414$ 16,671,630$ Sewer Impact Fee Revenue 430 5500 430 -55-5500-000-45150 Developer's Impact Fee 1 1,000,000 1,803,192 5,620,243 3,315,184 1,093,093 1,357,983 430 5500 430 -55-5500-000-46110 Bank Interest See FP 219,443 224,381 228,868 - - - 430 5500 430 -55-5500-000-46210 Interfund Interest Income 1 - - - - - - 430 5500 430 -55-5500-000-48110 Interfund Transfer In 6 386,083 437,408 410,049 - - - TOTAL: IMPACT FEE REVENUE 1,605,526$ 2,464,981$ 6,259,160$ 3,315,184$ 1,093,093$ 1,357,983$ TABLE 5 :OPERATING EXPENSE FORECAST1 Projected Actuals FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 Fund 700 - Sewer Operations 7500 - Sewer Administration 700 7500 700 -75-7500-000-50410 Pension Expense 3 -$ -$ -$ -$ -$ -$ 700 7500 700 -75-7500-000-51510 Professional Support 2 - - - - - - 700 7500 700 -75-7500-000-51620 Audit Services 2 8,700 - - - - - 700 7500 700 -75-7500-000-51630 Contractual Services 2 6,185 5,288 5,552 5,722 5,898 6,079 700 7500 700 -75-7500-000-53165 Contra Capital Outlay 2 - - - - - - 700 7500 700 -75-7500-000-54110 Interfund Transfer Out 2 11,863 - - - - - 700 7500 700 -75-7500-000-54130 Fleet Service Charge 2 59,206 77,139 78,502 80,909 83,390 85,947 700 7500 700 -75-7500-000-54140 Facility Service Charge 2 134,639 216,418 232,659 239,793 247,145 254,723 700 7500 700 -75-7500-000-54145 Info Tech Service Charge 2 434,144 550,530 533,039 549,383 566,228 583,589 700 7500 700 -75-7500-000-54150 Overhead Charges 2 723,376 847,532 883,288 910,371 938,284 967,053 700 7500 700 -75-7500-000-54155 Liability Insurance Charges 2 401,933 430,902 452,735 466,617 480,924 495,669 700 7500 700 -75-7500-000-55110 Loss On Disposal Of F/A 2 - - - - - - 700 7500 700 -75-7500-000-56110 Amortization Expense 2 - - - - - - 700 7500 700 -75-7500-000-56120 Depreciation 2 - - - - - - 700 7500 700 -75-7500-000-57110 Debt Redemption 2 2,440,000 725,000 755,000 778,149 802,009 826,599 700 7500 700 -75-7500-000-57115 Debt Interest 2 904,708 1,519,000 1,489,400 1,535,067 1,582,134 1,630,645 700 7500 700 -75-7500-000-58115 Share Joint Venture Loss 2 - - - - - - 700 7500 700 -75-7500-000-58130 Claims 2 15,000 15,750 16,550 17,057 17,580 18,119 700 7500 700 -75-7500-000-55130 Cash Over Short 2 - - - - - - Subtotal - Sewer Administration 5,139,754$ 4,387,559$ 4,446,725$ 4,583,068$ 4,723,591$ 4,868,423$ DESCRIPTION ACCOUNT DESCRIPTION Basis Basis 5-Year Projected Rate Period 5-Year Projected Rate PeriodFUNDDIVISION FUND DIVISION ACCOUNT Prepared by NBS www.nbsgov.com | Toll-Free: 800.676.7516 Exhibit 1 (O&M), 7 of 34 Agenda Item 11.1 Page 266 of 308 CITY OF GILROY Exhibit 1 - O&M SEWER RATE STUDY Operating Revenue and Expenses TABLE 6 :OPERATING EXPENSE FORECAST, cont.1 Projected Actuals FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 Fund 700 - Sewer Operations 7510 - Finance Sewer Utility Billing 700 7510 700 -75-7510-000-50110 Salaries 3 488,975$ 617,543$ 662,408$ 685,592$ 709,588$ 734,424$ 705 8010 700-75-7510-000-50110 Utility Billing Supervisor (Split: Water/Sewer)3 - - - - - - 700 7510 700 -75-7510-000-50120 Wages/Part Time 3 23,048 33,750 21,788 22,551 23,340 24,157 700 7510 700 -75-7510-000-50130 Overtime 3 14,000 10,000 10,000 10,350 10,712 11,087 700 7510 700 -75-7510-000-50150 Overtime Meals 3 41 - - - - - 700 7510 700 -75-7510-000-50203 Compensated Absences 3 - - - - - - 700 7510 700 -75-7510-000-50205 Workers Comp 3 2,163 2,563 2,689 2,783 2,880 2,981 700 7510 700 -75-7510-000-50210 Retirement (Full Time)3 52,305 73,492 76,644 79,326 82,103 84,976 700 7510 700 -75-7510-000-50212 Deferred Compensation 3 1,230 2,070 2,070 2,142 2,217 2,295 700 7510 700 -75-7510-000-50213 UAL Retirement 3 88,677 94,578 101,904 105,471 109,162 112,983 700 7510 700 -75-7510-000-50215 Retirement (Part Time)3 18 759 490 507 525 544 700 7510 700 -75-7510-000-50220 Medicare 3 7,976 9,595 10,077 10,430 10,795 11,172 700 7510 700 -75-7510-000-50225 Health Insurance Benefits 3 106,784 115,262 115,505 119,547 123,732 128,062 700 7510 700 -75-7510-000-50230 Life Insurance Benefits 3 824 794 821 850 879 910 700 7510 700 -75-7510-000-50235 Employee Assistance Prog 3 964 1,116 1,139 1,179 1,220 1,263 700 7510 700 -75-7510-000-50240 Unemployment Insurance 3 864 971 1,024 1,060 1,097 1,135 700 7510 700 -75-7510-000-50255 Misc Disability Insurance 3 1,030 1,307 1,307 1,353 1,400 1,450 700 7510 700 -75-7510-000-50260 Retiree Medical 3 - 900 900 932 964 998 700 7510 700 -75-7510-000-51110 Employee Training 2 - 3,400 3,400 3,504 3,612 3,722 700 7510 700 -75-7510-000-51120 Employee Travel, Food, Lodge 2 669 1,250 1,250 1,288 1,328 1,369 700 7510 700 -75-7510-000-51420 Telecommunications 2 - - - - - - 700 7510 700 -75-7510-000-51430 Postage 2 50 100 100 103 106 109 700 7510 700 -75-7510-000-51510 Professional Support 2 2,200 - - - - - 700 7510 700 -75-7510-000-51630 Contractual Services 2 119,000 66,025 67,825 69,905 72,048 74,257 700 7510 700 -75-7510-000-52110 Office/Computer Supplies 5 4,000 2,000 2,000 2,105 2,215 2,331 700 7510 700 -75-7510-000-52210 Repairs & Maintenance 2 - - - - - - 700 7510 700 -75-7510-000-50114 Earned Leave Cashout 2 6,787 - - - - - 700 7510 700 -75-7510-000-51230 Tuition 2 - - - - - - Subtotal - Finance Sewer Utility Billing 921,605$ 1,037,477$ 1,083,341$ 1,120,978$ 1,159,924$ 1,200,226$ Basis 5-Year Projected Rate PeriodFUNDDIVISIONACCOUNTDESCRIPTION Prepared by NBS www.nbsgov.com | Toll-Free: 800.676.7516 Exhibit 1 (O&M), 8 of 34 Agenda Item 11.1 Page 267 of 308 CITY OF GILROY Exhibit 1 - O&M SEWER RATE STUDY Operating Revenue and Expenses TABLE 7 :OPERATING EXPENSE FORECAST, cont.1 Projected Actuals FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 Fund 700 - Sewer Operations 7520 - Sewer Operations 700 7520 700 -75-7520-000-50110 Salaries 3 1,313,539$ 1,826,894$ 1,972,608$ 2,041,649$ 2,113,107$ 2,187,066$ 700 7520 700-75-7520-000-50110 FT Engineer I/II 3 - - - - - - 700 7520 700 -75-7520-000-50120 Wages/Part Time 3 11,337 60,000 65,000 67,275 69,630 72,067 700 7520 700 -75-7520-000-50130 Overtime 3 50,154 50,000 50,000 51,750 53,561 55,436 700 7520 700 -75-7520-000-50150 Overtime Meals 3 - 1,000 1,000 1,035 1,071 1,109 700 7520 700 -75-7520-000-50203 Compensated Absences 3 - - - - - - 700 7520 700 -75-7520-000-50205 Workers Comp 3 58,511 66,947 70,795 73,273 75,838 78,492 700 7520 700 -75-7520-000-50210 Retirement (Full Time)3 136,961 218,375 229,291 237,317 245,623 254,219 700 7520 700 -75-7520-000-50215 Retirement (Part Time)3 156 1,350 1,463 1,514 1,567 1,621 700 7520 700 -75-7520-000-50220 Medicare 3 21,506 28,106 30,290 31,350 32,447 33,583 700 7520 700 -75-7520-000-50225 Health Insurance Benefits 2 240,740 375,906 377,348 388,918 400,842 413,133 700 7520 700 -75-7520-000-50230 Life Insurance Benefits 2 2,149 2,241 2,321 2,393 2,466 2,542 700 7520 700 -75-7520-000-50235 Employee Assistance Prog 2 2,446 3,097 3,159 3,256 3,355 3,458 700 7520 700 -75-7520-000-50240 Unemployment Insurance 2 2,798 2,915 3,096 3,191 3,288 3,389 700 7520 700 -75-7520-000-50255 Misc Disability Insurance 2 2,701 3,733 3,733 3,847 3,965 4,087 700 7520 7007520-50260 RETIREE MEDICAL 1,508 1,800 - - - - 700 7520 700 -75-7520-000-51110 Employee Training 2 - 40,000 40,000 41,226 42,491 43,793 700 7520 700 -75-7520-000-51120 Employee Travel, Food, Lodge 2 - 15,000 15,000 15,460 15,934 16,423 700 7520 700 -75-7520-000-51420 Telecommunications 2 1,939 2,500 2,500 2,577 2,656 2,737 700 7520 700 -75-7520-000-51430 Postage 2 - - - - - - 700 7520 700 -75-7520-000-51510 Professional Support 2 11,298 15,000 15,000 15,460 15,934 16,423 700 7520 700 -75-7520-000-51630 Contractual Services 2 227,332 806,000 550,000 566,864 584,245 602,158 700 7520 700 -75-7520-000-52110 Office/Computer Supplies 2 73 1,500 1,500 1,546 1,593 1,642 700 7520 700 -75-7520-000-52150 Department Supplies 2 8,582 10,000 10,000 10,307 10,623 10,948 700 7520 700 -75-7520-000-52210 Repairs & Maintenance 2 26,213 100,000 100,000 103,066 106,226 109,483 700 7520 700 -75-7520-000-52310 Equipment Rental 2 - 10,000 10,000 10,307 10,623 10,948 700 7520 700 -75-7520-000-53120 Equipment/Furniture 2 25,000 - - - - - 700 7520 700 -75-7520-000-54110 Interfund Transfer Out2 2 300,000 390,000 409,500 422,056 434,997 448,334 SCWRA Operational Costs 2 5,715,995 6,512,515 6,957,238 7,170,000 7,390,000 7,620,000 700 7520 700 -75-7520-000-50114 Earned Leave Cashout 2 11,460 - - - - - 700 7520 700 -75-7520-000-50212 Deferred Compensation 3 3,608 5,742 5,742 5,943 6,151 6,366 700 7520 700 -75-7520-000-50213 UAL Retirement 3 249,086 284,730 310,780 321,657 332,915 344,567 700 7520 700 -75-7520-000-50310 Apparel, Boots, Ppe 2 6,735 9,000 9,000 9,276 9,560 9,854 700 7520 700 -75-7520-000-51410 Utilities 2 2,765 6,000 6,000 6,184 6,374 6,569 700 7520 700 -75-7520-000-52710 Permits 2 39,747 25,000 25,000 25,767 26,557 27,371 700 7520 700 -75-7520-000-53135 Improvements 2 - - - - - - 700 7520 700 -75-7520-000-53142 Capital Improvement Plan See Exh 2 - - - - - - Subtotal - Sewer Operations 8,474,336$ 10,875,351$ 11,277,363$ 11,634,460$ 12,003,637$ 12,387,818$ Basis 5-Year Projected Rate PeriodFUNDDIVISIONACCOUNTDESCRIPTION Prepared by NBS www.nbsgov.com | Toll-Free: 800.676.7516 Exhibit 1 (O&M), 9 of 34 Agenda Item 11.1 Page 268 of 308 CITY OF GILROY Exhibit 1 - O&M SEWER RATE STUDY Operating Revenue and Expenses TABLE 8 :OPERATING EXPENSE FORECAST, cont.1 Projected Actuals FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 Fund 700 - Sewer Operations Additional Expenditures 700 7520 700-75-7520-000-53120 one-time vehicle purchases One-Time - 404,450 404,450 - - - Subtotal - Additional Expenditures -$ 404,450$ 404,450$ -$ -$ -$ GRAND TOTAL: SEWER EXPENSES 14,535,695$ 16,704,836$ 17,211,879$ 17,338,506$ 17,887,153$ 18,456,467$ TABLE 9 :FORECASTING ASSUMPTIONS Basis 2023 2024 2025 2026 2027 2028 Customer Growth4 1 --1.50%1.50%1.50%1.50%1.50% General Cost Inflation5 2 --3.07%3.07%3.07%3.07%3.07% Labor Cost Inflation6 3 --3.50%3.50%3.50%3.50%3.50% Energy7 4 --7.44%7.44%7.44%7.44%7.44% Fuel & Utilities8 5 --5.24%5.24%5.24%5.24%5.24% No Escalation 6 --0.00%0.00%0.00%0.00%0.00% 1. Revenue and expenses for FY 2022/23 through FY2024/25 provided by the City. Revenues and expenses for all other years are escalated based on the forecasting assumptions in Table 9. Source file: FY23 Budgets.xlsx . 2. These expenses are costs related to the ownership, operation, maintenance and use of the South County Regional Wastewater Authority (SCRWA) jointly owned by the City of Morgan Hill. Based on the JPA agreement, Gilroy is responsible for approx. 60% of these costs which are based on actual annual flow. 3. Expenses are inflated each year by the following annual inflation factor categories. 4. Customer growth is based on estimated service area population growth through FY 2044/45. Source file: Gilroy 2020 UWMP.pdf , page 3-9. 5. General cost inflation is based on the 5-year average annual change in the Consumer Price Index for all Urban Consumers in the San Francisco-Oakland-Hayward, CA area. 6. Labor cost inflation is based on the 5-year average annual change in the Quarterly Census of Employment and Wages for San Francisco County, CA. 7. Energy cost inflation is based on the 5-year average annual change in the Consumer Price Index for all Urban Consumers in the San Francisco-Oakland-Hayward, CA area. 8. Fuel & Utilities cost inflation is based on the 5-year average annual change in the Consumer Price Index - Average Price Data for Fuels and related products and power. This factor is used for utility costs other than electricity. 5-Year Projected Rate PeriodBasis INFLATION FACTORS3 FUND DIVISION ACCOUNT DESCRIPTION Prepared by NBS www.nbsgov.com | Toll-Free: 800.676.7516 Exhibit 1 (O&M), 10 of 34 Agenda Item 11.1 Page 269 of 308 CITY OF GILROY Exhibit 2 - CIP SEWER RATE STUDY Capital Improvement Plan Expenditures TABLE 10 :CAPITAL FUNDING SUMMARY CAPITAL FUNDING FORECAST Budget FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 Grants -$ -$ -$ -$ -$ -$ Use of Capacity Fee Reserves (to Fund Impact Fee Projects)- 75,401 335,906 211,300 755,038 2,840,381 Use of 2021 Revenue Bond Proceeds 1,130,904 4,000,000 - - - - Use of Capital Rehabilitation and Replacement Reserve - 94,914 2,909,287 3,719,540 1,623,527 1,500,000 Rate Revenue - 75,401 335,906 211,300 755,038 1,334,115 Total Sources of Capital Funds 1,130,904$ 4,245,716$ 3,581,099$ 4,142,140$ 3,133,603$ 5,674,496$ Uses of Capital Funds: Total Project Costs 1,130,904$ 4,245,716$ 3,581,099$ 4,142,140$ 3,133,603$ 5,674,496$ Capital Funding Surplus (Deficiency)-$ -$ -$ -$ -$ -$ 2021 Revenue Bond Proceeds (Per Capital Improvement Program)1 1,130,904$ 4,000,000$ -$ -$ -$ -$ Remaining 2021 Bond Proceeds 4,000,000$ -$ -$ -$ -$ -$ New Revenue Bond Proceeds (If needed)-$ -$ -$ -$ -$ -$ 1. Source file: 11. Adopted-CIP-FY21-FY25.pdf , page 77. CAPITAL IMPROVEMENT PROGRAM FUNDING OPTIONS 2 Policy Choice (CIP & Master Planned Project ONLY)2023 2024 2025 2026 2027 2028 1 Full Funding of CIP, at actual cost & timing $1,130,904 $5,560,420 $4,326,924 $5,241,120 $3,171,420 $3,778,820 2 75% Funding of CIP, at actual cost & timing $1,130,904 4,170,315 3,245,193 3,930,840 2,378,565 2,834,115 3 50% Funding of CIP, at actual cost & timing $1,130,904 2,085,158 1,622,597 1,965,420 1,189,283 1,417,058 4 No CIP - - - - - - Total Planned CIP through FY 2027/28 16,559,028$ Capital Improvement Program Funding Choice 2023 2024 2025 2026 2027 2028 Effective Annual Funding Amount 1,130,904$ 4,170,315$ 3,245,193$ 3,930,840$ 2,378,565$ 2,834,115$ TABLE 11 :CAPITAL IMPROVEMENT PROGRAM COSTS (in Current-Year Dollars ) - 5% inflation added to these projects (per Harjot) Project No.Description 2023 2024 2025 2026 2 2027 2028 Capital Improvement Program - Fiscal Year 2021 to Fiscal Year 2025 1 800490 Annual Citywide Sewer Repair and Rehabilitation 250,000$ 250,000$ 250,000$ 250,000$ 250,000$ 800510 Asbestos Cement Sewer Pipe Replacement Citywide - 265,629 1,008,600 - - 800530 Large Diameter Sewer Rehabilitation Citywide - 273,105 1,081,100 - - EN2403 Corporation Yard EV and EV Charging - 800550 Old Gilroy - Chestnut to Forest Sewer Upgrade 50,999 251,600 - - - SW2402 Joint Morgan Hill-Gilroy Trunk Line Repairs - 1,938,671 - 900720 Old Gilroy Street at Railroad Crossing Sewer Replacement - - - - 587,400 7520-53120 Vehicles/Equipment (operations budget transferred to CIP by NBS)- 404,450 404,450 - - - Subtotal - Capital Improvement Program -$ 2,644,120$ 1,444,784$ 2,339,700$ 250,000$ 837,400$ Subtotal - Master Plan Projects -$ 2,511,420$ 2,511,420$ 2,511,420$ 2,511,420$ 2,511,420$ Total - CIP & Master Plan Projects (Current Year Dollars)$0 $5,155,540 $3,956,204 $4,851,120 $2,761,420 $3,348,820 * Morgan Hill Contribution for the SCRWA expansion is approximately is $31.5M (FY 21-25). 5-Year Projected Rate Period Funding Sources: Insert policy choice in box to right, based on options listed above: Prepared by NBS www.nbsgov.com | Toll-Free: 800.676.7516 Exhibit 2 (CIP), 11 of 34 Agenda Item 11.1 Page 270 of 308 CITY OF GILROY Exhibit 2 - CIP SEWER RATE STUDY Capital Improvement Plan Expenditures TABLE 12 :CAPITAL IMPROVEMENT PROGRAM COSTS (in Future-Year Dollars ) Inflation removed because 5% inflation already Included Project No.Description 2023 2024 2025 2026 2 2027 2028 Capital Improvement Program - Fiscal Year 2021 to Fiscal Year 2025 1 800490 Annual Citywide Sewer Repair and Rehabilitation -$ 250,000$ 250,000$ 250,000$ 250,000$ 250,000$ 800510 Asbestos Cement Sewer Pipe Replacement Citywide - - 265,629 1,008,600 - - 800530 Large Diameter Sewer Rehabilitation Citywide - - 273,105 1,081,100 - - EN2403 Corporation Yard EV and EV Charging - - - - - - 800550 Old Gilroy - Chestnut to Forest Sewer Upgrade - 50,999 251,600 - - - SW2402 Joint Morgan Hill-Gilroy Trunk Line Repairs - 1,938,671 - - - - 900720 Old Gilroy Street at Railroad Crossing Sewer Replacement - - - - - 587,400 7007520-54114TRF OUT SCRWA CIP (Transferred from Operations to CIP by NBS)1,130,904 404,880 370,720 390,000 410,000 430,000 7520-53120 New Vehicles (operations budget transferred to CIP by NBS)- 404,450 404,450 - - - Subtotal - Capital Improvement Program (in Future Year Dollars)1,130,904$ 3,049,000$ 1,815,504$ 2,729,700$ 660,000$ 1,267,400$ Sewer System Master Plan Projects 3 Gravity Main Improvements Santa Teresa - Long Meadow Subtrunk SLP-1 Santa Teresa Boulevard -$ 223,980$ 223,980$ 223,980$ 223,980$ 223,980$ Welburn Subtrunk WP-1 Welburn Avenue - 188,040 188,040 188,040 188,040 188,040 WP-2 Welburn Avenue - 82,980 82,980 82,980 82,980 82,980 Forest-Swanston Subtrunk FP-1 Loof Avenue - 127,200 127,200 127,200 127,200 127,200 FP-2 Forest Street - 225,220 225,220 225,220 225,220 225,220 Old Gilroy Subtrunk OP-1 Old Gilroy Street - 11,120 11,120 11,120 11,120 11,120 OP-2 Old Gilroy Street - 90,100 90,100 90,100 90,100 90,100 Uvas Park Subtrunk UP-1 Uvas Park Drive - 262,680 262,680 262,680 262,680 262,680 UP-2 Hoxett Street / ROW - 200,940 200,940 200,940 200,940 200,940 UP-3 Yorktown Drive - 223,600 223,600 223,600 223,600 223,600 UP-4 Greenwich Drive - 74,560 74,560 74,560 74,560 74,560 UP-5 Orchard Drive - 25,960 25,960 25,960 25,960 25,960 UP-6 W. 10th Street - 175,020 175,020 175,020 175,020 175,020 Thomas Subtrunk TP-1 London Place - 387,200 387,200 387,200 387,200 387,200 TP-2 Monterey Road - 212,820 212,820 212,820 212,820 212,820 Subtotal - Master Plan Projects (in Future Year Dollars)-$ 2,511,420$ 2,511,420$ 2,511,420$ 2,511,420$ 2,511,420$ Total - CIP & Master Plan Projects (in Future Year Dollars)1,130,904$ 5,560,420$ 4,326,924$ 5,241,120$ 3,171,420$ 3,778,820$ Impact Fee Projects 4 (in Future Year Dollars) 800520 Carmel-Dowdy Alley - Sixth to Seventh Sewer Replacement -$ 75,401$ 273,200$ -$ -$ -$ 800540 Monterey and Princeville Sewer Network - - - - 755,038 2,840,381 800560 Seventh St - Carmel-Dowdy to Hanna-Rosanna Alleys Sewer Repl. - - 62,706 211,300 - - 800570 Wastewater Treatment Plant Expansion (SCRWA)*- - - Subtotal - Impact Fee Projects (in Future Year Dollars)-$ 75,401$ 335,906$ 211,300$ 755,038$ 2,840,381$ Estimated Future Projects (Impact Fee Funded) Future Projects5 - - - - - - Total: Impact Fee Funded CIP (Future-Year Dollars)-$ 75,401$ 335,906$ 211,300$ 755,038$ 2,840,381$ Total - All (Impact Fee, CIP & Master Plan Projects) (Future Year Dollars)$1,130,904 $5,635,821 $4,662,830 $5,452,420 $3,926,458 $6,619,201 * City contribution - SCRWA TP Construction (bond funded)$17,840,994 $15,719,810 $1,867,896 (Bond-Funded) Prepared by NBS www.nbsgov.com | Toll-Free: 800.676.7516 Exhibit 2 (CIP), 12 of 34 Agenda Item 11.1 Page 271 of 308 CITY OF GILROY Exhibit 2 - CIP SEWER RATE STUDY Capital Improvement Plan Expenditures TABLE 13 :FORECASTING ASSUMPTIONS Economic Variables 2023 2024 2025 2026 2027 2028 0.00%4.00%4.00%4.00%4.00%4.00% Cumulative Construction Cost Multiplier from 2023 1.00 1.04 1.08 1.12 1.17 1.22 1. Capital project costs provided by City Staff. Source file: 11. Adopted-CIP-FY21-FY25.pdf , pages 43, 60-77. 2. Capital projects beginning in FY 2025/26 are unfunded and identified in the City's Capital Improvement Program. These costs have been allocated over a 5-year period from FY 2025/26 through FY 2029/30. Source: 11. Adopted-CIP-FY21-FY25.pdf , pages 239-242. 3. Capital project costs are from the City's Draft Sewer System Master Plan (May 2022). Source file: Draft Water Master Plan.pdf , Table 8.2, pages 100-101. 4. Capital projects funded by impact fees. Source file: City of Gilroy Water_Sewer Operations and Impact FundsFY24_25.xlsx, CIP Worksheet. April 2023. 5. Future project costs beyond FY 2029/30 were calculated based on the City's 5-year average (FY24-28). 6. The project costs in future-year dollars have been inflated by 4% annually. 7. For reference purposes, the annual Construction Cost Inflation percentage is the 5-year average change in the Construction Cost Index for September 2017-2022 (4.0%). Source: Engineering News Record website (http://enr.construction.com ). Annual Construction Cost Inflation, Per Engineering News Record7 Prepared by NBS www.nbsgov.com | Toll-Free: 800.676.7516 Exhibit 2 (CIP), 13 of 34 Agenda Item 11.1 Page 272 of 308 CITY OF GILROY Exhibit 3 - Debt SEWER RATE STUDY Debt Service TABLE 14 :SEWER UTILITY EXISTING DEBT OBLIGATIONS EXISTING DEBT OBLIGATIONS Budget Annual Repayment Schedules:FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 Wastewater Revenue Bonds, Series 2021A - Loan Amount $47,080,000 Principal Payment -$ 725,000$ 755,000$ 785,000$ 815,000$ 850,000$ Interest Payment 1,533,500 1,519,000 1,489,400 1,458,600 1,426,600 1,393,300 Subtotal: Annual Debt Service 1,533,500$ 2,244,000$ 2,244,400$ 2,243,600$ 2,241,600$ 2,243,300$ Coverage Requirement ($-Amnt above annual payment)2 1,840,200$ 2,692,800$ 2,693,280$ 2,692,320$ 2,689,920$ 2,691,960$ Reserve Requirement (total fund balance)3 -$ -$ -$ -$ -$ -$ Grand Total: Existing Annual Debt Service 1,533,500$ 2,244,000$ 2,244,400$ 2,243,600$ 2,241,600$ 2,243,300$ Grand Total: Existing Annual Coverage Requirement 1,840,200$ 2,692,800$ 2,693,280$ 2,692,320$ 2,689,920$ 2,691,960$ Grand Total: Existing Debt Reserve Target -$ -$ -$ -$ -$ -$ 1. Revenue bonds issued to finance the City's obligations for the capital improvements of the SCRWA Treatment Facility. Source file: 08. Official Statement.pdf . 2. The City must have net revenues that are at least equal to 1.2 times the annual debt service payment. Source file: 08. Official Statement.pdf. 4. Per the Official Statement, the City is not required to fund a debt service reserve. TABLE 15 :EXISTING ANNUAL DEBT OBLIGATIONS TO BE SATISFIED BY SEWER RATES Annual Obligations 2023 2024 2025 2026 2027 2028 Existing Annual Debt Service 1,533,500$ 2,244,000$ 2,244,400$ 2,243,600$ 2,241,600$ 2,243,300$ Existing Annual Coverage Requirement 1,840,200$ 2,692,800$ 2,693,280$ 2,692,320$ 2,689,920$ 2,691,960$ Existing Debt Reserve Target -$ -$ -$ -$ -$ -$ 5-Year Projected Rate Period Prepared by NBS www.nbsgov.com | Toll-Free: 800.676.7516 Exhibit 3 (Debt), 14 of 34 Agenda Item 11.1 Page 273 of 308 CITY OF GILROY Exhibit 4 - Current Rates SEWER RATE STUDY Projected Sewer Rates Under Existing Rate Schedule TABLE 16 : CURRENT WASTEWATER RATE SCHEDULE Residential - Monthly Fixed Rate Single Family Residence $39.66 $46.64 $51.07 9%29% Multi-Family Residence $28.17 $33.13 $34.39 4%22% Non-Residential - Volumetric Monthly Charge ($/1,000 Gallons) Low Strength $6.30 $7.41 $8.36 13%33% Domestic Strength $7.83 $9.21 $9.51 3%21% Medium Strength $10.27 $12.08 $13.15 9%28% High Strength $15.84 $18.63 $21.56 16%36% Non-Residential - Monitoring & Pretreatment Program Base Rate Monthly Charges Significant/Categorical $210.00 $240.95 $287.19 19%37% Non-Significant/Categorical $83.00 $95.22 $114.64 20%38% Other Non-Residential $10.00 $11.47 $15.47 35%55% 1. City Website: https://www.cityofgilroy.org/DocumentCenter/View/8664/Water---Wasterwater-Rates-7-1-19pdf . % Change from 2015 to Proposed Wastewater Rate Schedule1 Current Rates (Adopted 7/1/2019) Rates from 2015 Rate Study Proposed Rates % Increase from Current to Proposed Prepared by NBS www.nbsgov.com | Toll-Free: 800.676.7516 Exhibit 4 (Current Rates), 15 of 34 Agenda Item 11.1 Page 274 of 308 CITY OF GILROY SEWER RATE STUDY Cost-of-Service Analysis TABLE 17 : CLASSIFICATION OF EXPENSES FOR COST OF SERVICE ANALYSIS Classification of Expenses FY 2023/24 (VOL)(BOD)(TSS)(DA)(CA)(VOL)(BOD)(TSS)(DA)(CA) Fund 700 - Sewer Operations 7500 - Sewer Administration Pension Expense -$ -$ -$ -$ -$ -$ 40.0%25.0%25.0%0.0%10.0% Professional Support - - - - - - 40.0%25.0%25.0%0.0%10.0% Audit Services - - - - - - 40.0%25.0%25.0%0.0%10.0% Contractual Services 5,288 2,115 1,322 1,322 - 529 40.0%25.0%25.0%0.0%10.0% Contra Capital Outlay - - - - - - 40.0%25.0%25.0%0.0%10.0% Interfund Transfer Out - - - - - - 40.0%25.0%25.0%0.0%10.0% Fleet Service Charge 77,139 30,856 19,285 19,285 - 7,714 40.0%25.0%25.0%0.0%10.0% Facility Service Charge 216,418 86,567 54,105 54,105 - 21,642 40.0%25.0%25.0%0.0%10.0% Info Tech Service Charge 550,530 495,477 - - - 55,053 90.0%0.0%0.0%0.0%10.0% Overhead Charges 847,532 339,013 211,883 211,883 - 84,753 40.0%25.0%25.0%0.0%10.0% Liability Insurance Charges 430,902 172,361 107,726 107,726 - 43,090 40.0%25.0%25.0%0.0%10.0% Loss On Disposal Of F/A - - - - - - 40.0%25.0%25.0%0.0%10.0% Amortization Expense - - - - - - 30.0%35.0%35.0%0.0%0.0% Depreciation - - - - - - 50.0%25.0%25.0%0.0%0.0% Debt Redemption 725,000 362,500 181,250 181,250 - - 50.0%25.0%25.0%0.0%0.0% Debt Interest 1,519,000 759,500 379,750 379,750 - - 50.0%25.0%25.0%0.0%0.0% Share Joint Venture Loss - - - - - - 40.0%25.0%25.0%0.0%10.0% Claims 15,750 6,300 3,938 3,938 - 1,575 40.0%25.0%25.0%0.0%10.0% Cash Over Short - - - - - - 40.0%25.0%25.0%0.0%10.0% Subtotal - Sewer Administration 4,387,559$ 2,254,689$ 959,257$ 959,257$ -$ 214,356$ 51.4%21.9%21.9%0.0%4.9% CustomerStrength Basis of Classification Direct Alloc. (Monitoring, Pretreat., etc.)Budget Categories Total Revenue Requirements Flow Prepared by NBS www.nbsgov.com | Toll-Free: 800.676.7516 Funct. & Classification, 16 of 34 Agenda Item 11.1 Page 275 of 308 CITY OF GILROY SEWER RATE STUDY Cost-of-Service Analysis TABLE 18 : CLASSIFICATION OF EXPENSES FOR COST OF SERVICE ANALYSIS, cont. Classification of Expenses FY 2023/24 (VOL)(BOD)(TSS)(DA)(CA)(VOL)(BOD)(TSS)(DA)(CA) Fund 700 - Sewer Operations 7510 - Finance Sewer Utility Billing Salaries 617,543$ 185,263$ 123,509$ 123,509$ -$ 185,263$ 30.0%20%20%0%30% Utility Billing Supervisor (Split: Water/Sewer)- - - - - - 30.0%20%20%0%30% Wages/Part Time 33,750 10,125 6,750 6,750 - 10,125 30.0%20%20%0%30% Overtime 10,000 3,000 2,000 2,000 - 3,000 30.0%20%20%0%30% Overtime Meals - - - - - - 30.0%20%20%0%30% Compensated Absences - - - - - - 30.0%20%20%0%30% Workers Comp 2,563 769 513 513 - 769 30.0%20%20%0%30% Retirement (Full Time)73,492 22,048 14,698 14,698 - 22,048 30.0%20%20%0%30% Deferred Compensation 2,070 621 414 414 - 621 30.0%20%20%0%30% UAL Retirement 94,578 28,373 18,916 18,916 - 28,373 30.0%20%20%0%30% Retirement (Part Time)759 228 152 152 - 228 30.0%20%20%0%30% Medicare 9,595 2,879 1,919 1,919 - 2,879 30.0%20%20%0%30% Health Insurance Benefits 115,262 34,579 23,052 23,052 - 34,579 30.0%20%20%0%30% Life Insurance Benefits 794 238 159 159 - 238 30.0%20%20%0%30% Employee Assistance Prog 1,116 335 223 223 - 335 30.0%20%20%0%30% Unemployment Insurance 971 291 194 194 - 291 30.0%20%20%0%30% Misc Disability Insurance 1,307 392 261 261 - 392 30.0%20%20%0%30% Employee Training 3,400 1,020 680 680 - 1,020 30.0%20%20%0%30% Employee Travel, Food, Lodge 1,250 375 250 250 - 375 30.0%20%20%0%30% Telecommunications - - - - - - 30.0%20%20%0%30% Postage 100 30 20 20 - 30 30.0%20%20%0%30% Professional Support - - - - - - 30.0%20%20%0%30% Contractual Services 66,025 19,808 13,205 13,205 - 19,808 30.0%20%20%0%30% Office/Computer Supplies 2,000 600 400 400 - 600 30.0%20%20%0%30% Repairs & Maintenance - - - - - - 30.0%20%20%0%30% Earned Leave Cashout - - - - - - 30.0%20%20%0%30% Tuition - - - - - - 30.0%20%20%0%30% Subtotal - Finance Sewer Utility Billing 1,036,577$ 310,973$ 207,315$ 207,315$ -$ 310,973$ 30%20%20%0%30% Strength Customer Basis of ClassificationBudget Categories Total Revenue Requirements Flow Direct Alloc. (Monitoring, Pretreat., etc.) Prepared by NBS www.nbsgov.com | Toll-Free: 800.676.7516 Funct. & Classification, 17 of 34 Agenda Item 11.1 Page 276 of 308 CITY OF GILROY SEWER RATE STUDY Cost-of-Service Analysis TABLE 19 : CLASSIFICATION OF EXPENSES FOR COST OF SERVICE ANALYSIS, cont. Classification of Expenses FY 2023/24 (VOL)(BOD)(TSS)(DA)(CA)(VOL)(BOD)(TSS)(DA)(CA) Fund 700 - Sewer Operations 7520 - Sewer Operations Salaries 1,826,894$ 858,640$ 456,724$ 456,724$ 54,807$ -$ 47%25%25%3%0% FT Engineer I/II - - - - - - 47%25%25%3%0% Wages/Part Time 60,000 28,200 15,000 15,000 1,800 - 47%25%25%3%0% Overtime 50,000 23,500 12,500 12,500 1,500 - 47%25%25%3%0% Overtime Meals 1,000 470 250 250 30 - 47%25%25%3%0% Compensated Absences - - - - - - 47%25%25%3%0% Workers Comp 66,947 31,465 16,737 16,737 2,008 - 47%25%25%3%0% Retirement (Full Time)218,375 102,636 54,594 54,594 6,551 - 47%25%25%3%0% Retirement (Part Time)1,350 635 338 338 41 - 47%25%25%3%0% Medicare 28,106 13,210 7,027 7,027 843 - 47%25%25%3%0% Health Insurance Benefits 375,906 176,676 93,976 93,976 11,277 - 47%25%25%3%0% Life Insurance Benefits 2,241 1,053 560 560 67 - 47%25%25%3%0% Employee Assistance Prog 3,097 1,456 774 774 93 - 47%25%25%3%0% Unemployment Insurance 2,915 1,370 729 729 87 - 47%25%25%3%0% Misc Disability Insurance 3,733 1,754 933 933 112 - 47%25%25%3%0% RETIREE MEDICAL 1,800 846 450 450 54 - 47%25%25%3%0% Employee Training 40,000 18,800 10,000 10,000 1,200 - 47%25%25%3%0% Employee Travel, Food, Lodge 15,000 7,050 3,750 3,750 450 - 47%25%25%3%0% Telecommunications 2,500 1,175 625 625 75 - 47%25%25%3%0% Postage - - - - - - 47%25%25%3%0% Professional Support 15,000 7,050 3,750 3,750 450 - 47%25%25%3%0% Contractual Services 806,000 378,820 201,500 201,500 24,180 - 47%25%25%3%0% Office/Computer Supplies 1,500 705 375 375 45 - 47%25%25%3%0% Department Supplies 10,000 4,700 2,500 2,500 300 - 47%25%25%3%0% Repairs & Maintenance 100,000 47,000 25,000 25,000 3,000 - 47%25%25%3%0% Equipment Rental 10,000 4,700 2,500 2,500 300 - 47%25%25%3%0% Equipment/Furniture - - - - - - 47%25%25%3%0% Interfund Transfer Out2 390,000 234,000 78,000 78,000 - - 60%20%20%0%0% SCWRA Oper. Costs (less Monit., Sampl., Pre-Tr.Costs)6,146,815 2,889,003 1,536,704 1,536,704 184,404 - 47%25%25%3%0% Monitoring, Sampling, Pretreatment (Non-Resid. Costs)365,700 - - - 365,700 - 0%0%0%100%0% Earned Leave Cashout - - - - - - 47%25%25%3%0% Deferred Compensation 5,742 2,699 1,436 1,436 172 - 47%25%25%3%0% UAL Retirement 284,730 133,823 71,182 71,182 8,542 - 47%25%25%3%0% Apparel, Boots, Ppe 9,000 4,230 2,250 2,250 270 - 47%25%25%3%0% Utilities 6,000 2,820 1,500 1,500 180 - 47%25%25%3%0% Permits 25,000 11,750 6,250 6,250 750 - 47%25%25%3%0% Improvements - - - - - - 47%25%25%3%0% Subtotal - Wastewater Environmental Compliance 10,875,351$ 4,990,236$ 2,607,913$ 2,607,913$ 669,290$ -$ 46%24%24%6%0% Budget Categories Total Revenue Requirements Flow Strength Customer Basis of Classification Direct Alloc. (Monitoring, Pretreat., etc.) Prepared by NBS www.nbsgov.com | Toll-Free: 800.676.7516 Funct. & Classification, 18 of 34 Agenda Item 11.1 Page 277 of 308 CITY OF GILROY SEWER RATE STUDY Cost-of-Service Analysis TABLE 20 : CLASSIFICATION OF EXPENSES FOR COST OF SERVICE ANALYSIS, cont. Classification of Expenses, cont. FY 2023/24 (VOL)(BOD)(TSS)(DA)(CA)(VOL)(BOD)(TSS)(DA)(CA) Debt Service Payments Outstanding Debt 2,244,000 1,029,676 538,112 538,112 138,100 - 46%24%24%6%0% New Debt Issue - SRF Loan - - - - - - 50%25%25%0%0% New Debt Issue - Revenue Bond - - - - - - 50%25%25%0%0% Total Debt Service Payments 2,244,000$ 1,029,676$ 538,112$ 538,112$ 138,100$ -$ 46%24%24%0%0% Capital Expenditures Rate Funded Capital Expenses 75,401$ 34,598$ 18,081$ 18,081$ 18,081$ -$ 46%24%24%0%0% TOTAL REVENUE REQUIREMENTS 18,618,887$ 8,620,172$ 4,330,678$ 4,330,678$ 825,471$ 525,329$ 46%23%23%4%3% Less: Non-Rate Revenues Other Revenue: Misc. Revenue & Interest Earnings2 (649,871)$ (298,198)$ (155,839)$ (155,839)$ (39,994)$ -$ 46%24%24%6%0% Interfund Transfer In (2,244,000) (1,346,400) (448,800) (448,800) - - 60%20%20%0%0% NET REVENUE REQUIREMENTS 15,725,016$ 6,975,574$ 3,726,039$ 3,726,039$ 785,476$ 525,329$ Allocation of Revenue Requirements 100.0%44.4%23.7%23.7%5.0%3.3% 100.0%44.0%24.0%24.0%5.0%3.0% TABLE 21 : NET REVENUE REQUIREMENTS INCLUDING RATE INCREASE Adjustment to Current Rate Level:Total (VOL)(BOD)(TSS)(DA)(CA) Projected Rate Revenue at Current Rates 13,512,000$ FY 2023/24 Projected Rate Increase 4% Additional Rate Revenue from Rate Increase 540,480$ Adjusted Net Revenue Req'ts 14,052,480$ 6,183,091$ 3,372,595$ 3,372,595$ 702,624$ 421,574$ FY 2023/24 Target Rate Rev. After Rate Incr. (From Fin. Plan)14,052,480$ Percent of Revenue 44.0%24.0%24.0%5.0%3.0% Strength Customer Basis of Classification Direct Alloc. (Monitoring, Pretreat., etc.) Allocations of COSA (Rounded) Flow Budget Categories Total Revenue Requirements Prepared by NBS www.nbsgov.com | Toll-Free: 800.676.7516 Funct. & Classification, 19 of 34 Agenda Item 11.1 Page 278 of 308 CITY OF GILROY SEWER RATE STUDY Cost-of-Service Analysis TABLE 22 : DEVELOPMENT OF THE FLOW ALLOCATION FACTOR Customer Class Consumption (TG/year)1 Number of Dwelling Units / Accounts2 Winter Consumption (Dec-Feb '21)3 Annualized Winter Consumption Adjusted Annual Volume (gallons)3 Percentage of Adjusted Volume Residential Customers Single-Family Residence 1,135,486 12,330 201,429 805,715 805,715,371 61.6%5.4 TG/mo. Multi-Family Residence4 218,620 4,585 49,505 198,022 198,021,843 15.1%3.6 TG/mo. Non-Residential Customers Low Strength 77,640 427 77,640,000 5.9% Domestic Strength 98,610 253 98,610,000 7.5% Medium Strength 53,149 55 53,149,000 4.1% High Strength 74,067 128 74,067,000 5.7% Total: 1,657,571 17,778 250,934 1,003,737 1,307,203,214 100.0% 1. Consumption data for residential customers is not available. Calculation of estimated consumption available in source file: FY 2021-22 Billing Journal Totals by Service v7.xlsx. 2. SFR and MFR customers are based on the number of dwelling units and all other customers are based on the number of accounts. 3. Annual consumption for all customer classes based on 12 months of water consumption. 4. MFR dwelling units provided by the City. Source file: MFR Units.xlsx . TABLE 23 : DEVELOPMENT OF THE STRENGTH ALLOCATION FACTOR 205 Customer Class Average Strength Factor (mg/l)1 Calculated BOD (lbs./yr.) Adjusted BOD (lbs./yr.) Percent of Total Average Strength Factor (mg/l)1 Calculated TSS (lbs./yr.) Adjusted BOD (lbs./yr.) Percent of Total Residential Customers Single-Family Residence 805,715,371 205 1,377,532 2,755,063 51.4%205 1,377,532 1,744,176 51.4%Used strength for Residential from Appendix G Multi-Family Residence 198,021,843 205 338,558 677,116 12.6%205 338,558 428,669 12.6%Used strength for Residential from Appendix G Non-Residential Customers Low Strength 77,640,000 167 108,135 216,271 4.0%167 108,135 136,917 4.0%Used strength for Residential from Appendix G Domestic Strength 98,610,000 225 185,042 370,083 6.9%225 185,042 234,293 6.9%Used strength for Residential from Appendix G Medium Strength 53,149,000 400 177,305 354,610 6.6%400 177,305 224,497 6.6%Used strength for Hotel/Motel without Dining from Appendix G High Strength 74,067,000 800 494,175 988,350 18.4%800 494,175 625,705 18.4%Used strength for Industrial Laundry from Appendix G Total: 1,307,203,214 2,680,747 5,361,493 100.0%2,680,747 3,394,256 100.0% Total Annual from WWTP Data 5,361,493 BOD (lbs./yr.)3,394,256 TSS (lbs./yr.) 2.00 BOD Adj. Factor 1.27 TSS Adj. Factor 1. Avg. strength factors for BOD and TSS are from the CA State Water Resources Control Board, Revenue Program Guidelines (Appendix G), March 1998 Edition. Annual Flow (gallons) Biochemical Oxygen Demand (BOD)Total Suspended Solids (TSS) Prepared by NBS www.nbsgov.com | Toll-Free: 800.676.7516 Allocation Factors, 20 of 34 Agenda Item 11.1 Page 279 of 308 CITY OF GILROY SEWER RATE STUDY Cost-of-Service Analysis TABLE 24 : DEVELOPMENT OF THE CUSTOMER ALLOCATION FACTOR Customer Class Number of Dwelling Units / Accounts Percent of Total Residential Customers Single-Family Residence 12,330 66.2% Multi-Family Residence 4,585 24.6% Non-Residential Customers - Strength Classes Low Strength 427 2.29% Domestic Strength 253 1.36% Medium Strength 55 0.30% High Strength 128 0.69% Non-Residential Customers - Categorical Classes Significant/Categorical 6 0.03% Non-Significant/Categorical 458 2.46% Other Non-Residential 387 2.08% Total: 18,628 100.0% Prepared by NBS www.nbsgov.com | Toll-Free: 800.676.7516 Allocation Factors, 21 of 34 Agenda Item 11.1 Page 280 of 308 CITY OF GILROY SEWER RATE STUDY Cost-of-Service Analysis TABLE 25 : ALLOCATION OF SEWER REVENUE REQUIREMENTS Add Alt. 1 and 2 Commodity-Related Costs 6,183,091$ 44.0% Capacity-Related Costs 6,745,190 48.0% Monit., Sampl., Pretreat. (Non-Resid. Costs) 702,624 5.0% Customer-Related Costs 421,574 3.0% Net Revenue Requirement 14,052,480$ 100.0% 1. Reflects COSA calculation of the fixed and volumetric charges. See Funct. & Classification tab. TABLE 26 : ALLOCATION OF NET REVENUE REQUIREMENTS TO CUSTOMER CLASSES COSA Results - Net Revenue Requirement (Including Rate Increases) $Alloca. % Residential Customers Single-Family Residence 3,811,046$ 1,733,046$ 1,733,046$ 279,038$ 7,556,175$ 53.8% Multi-Family Residence 936,646 425,933 425,933 103,762 1,892,275 13.5% Non-Residential Customers Low Strength 367,238$ 136,043$ 136,043$ 9,663$ 648,988$ 4.6% Domestic Strength 466,427 232,797 232,797 5,726 937,747 6.7% Medium Strength 251,396 223,064 223,064 1,245 698,768 5.0% High Strength 350,338 621,712 621,712 2,897 1,596,659 11.4% Non-Residential Customers (Monitoring, Sampling, Pretreatment Costs Only)Fixed Charge Rev. Reqts. Significant/Categorical $20,542 2.9%136 $20,678 0.1% Non-Significant/Categorical $619,036 88.1%10,354 $629,390 4.5% Other Non-Residential $63,046 9.0%8,754 $71,800 0.5% Total 6,183,091$ $3,372,595 $3,372,595 702,624$ 421,574$ 14,052,480$ 100.0% 1. Non-Residential Customers (Monitoring, Sampling, Pretreatment Costs are allocated on the basis of current/historical share of this program. - Cost of Service Net Rev. Req'ts. % of COS Net Revenue Req'ts. Classification Components COSA Results - Net Rev. Reqts. (49% Fixed / 51% Vol.) Cost Classification Components Direct Allocation (Monitoring, Pretreat., etc.) TSSBOD Customer Class Commodity Customer Capacity Prepared by NBS www.nbsgov.com | Toll-Free: 800.676.7516 COSA - Sewer Rates, 22 of 34 Agenda Item 11.1 Page 281 of 308 CITY OF GILROY SEWER RATE STUDY Cost-of-Service Analysis TABLE 27 : CALCULATION OF PROPOSED SEWER RATES Rate Alt. 1 (COSA Fixed Rev. = 26%) Total Fixed Volumetric Residential - Monthly Fixed Rate Single-Family Residence 12,330 805,715,371 7,556,175$ 7,556,175$ $51.07 Multi-Family Residence 4,585 198,021,843 1,892,275 1,892,275 $34.39 Non-Residential Customers Low Strength 427 77,640,000 648,988$ 648,988$ $8.36 Domestic Strength 253 98,610,000 937,747 937,747 $9.51 Medium Strength 55 53,149,000 698,768 698,768 $13.15 High Strength 128 74,067,000 1,596,659 1,596,659 $21.56 Total 17,778 ############13,330,612$ 9,448,450$ 3,882,162$ Non-Residential Customers (Monitoring, Sampling, Pretreatment Costs Only) Significant/Categorical3 6 $20,678 20,678$ $287.19 Non-Significant/Categorical3 458 629,390 629,390 $114.64 Other Non-Residential3 387 71,800 71,800 $15.47 Percent of Non-Resid . Rev. from Fixed vs. Vol. Charges 100.0%0.0%100.0% 1. SFR and MFR customers are based on the number of dwelling units and all other customers are based on the number of accounts. 2. Residential customer consumption is the annualized average winter water consumption. Non-residential customers is total annual consumption. 3. Number of accounts estimated by dividing the annual fixed charge revenues by the current fixed charges ($/account/month). Also, the Significant, Non-Significant and Other Non-Residential accounts are included in the non-residential strength classes. They are shown here only for the calculation of the Monitoring, Sampling, and Pre-Treatment fixed charges. Volumetric Charge ($/1,000 Gal.) Customer Class No. of Dwelling Units / Accounts1 Annualized Consumption (Gallons)2 Annual Revenue Requirement Mo. Fixed Charge Per EDU (Resid.) or Account (Non- Resid) Prepared by NBS www.nbsgov.com | Toll-Free: 800.676.7516 COSA - Sewer Rates, 23 of 34 Agenda Item 11.1 Page 282 of 308 CITY OF GILROY SEWER RATE STUDY Cost-of-Service Analysis & Rate Design TABLE 28 : CURRENT VS. PROPOSED SEWER RATES Rate Alt. 1 (COSA Fixed Rev. = 26%) FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 Monthly Fixed Charge Residential (100% Fixed) Single-Family Residence $46.64 $51.07 $53.11 $55.24 $57.45 $59.74 Multi-Family Residence $33.13 $34.39 $35.77 $37.20 $38.69 $40.23 Non-Residential Volumetric Rates Low Strength $7.41 $8.36 $8.69 $9.04 $9.40 $9.78 Domestic Strength $9.21 $9.51 $9.89 $10.29 $10.70 $11.12 Medium Strength $12.08 $13.15 $13.67 $14.22 $14.79 $15.38 High Strength $18.63 $21.56 $22.42 $23.32 $24.25 $25.22 Non-Residential - Monitoring & Pretreatment Program Base Rate Monthly Charges Significant/Categorical $240.95 $287.19 $298.68 $310.63 $323.05 $335.98 Non-Significant/Categorical $95.22 $114.64 $119.22 $123.99 $128.95 $134.11 Other Non-Residential $11.47 $15.47 $16.09 $16.73 $17.40 $18.09 Note: The City recently transitioned from July1-June 30 fiscal years to calendar years (January to December). Sewer Rate Schedule Current Rates Proposed Sewer Rates Prepared by NBS www.nbsgov.com | Toll-Free: 800.676.7516 Current & Proposed Rates, 24 of 34 Agenda Item 11.1 Page 283 of 308 Prepared by NBS www.nbsgov.com | Toll-Free: 800.676.7516 SFR 5-Yr, 25 of 34 $46.64 $46.64 $46.64 $46.64 $46.64 $51.07 $53.11 $55.24 $57.45 $59.74 $0 $10 $20 $30 $40 $50 $60 $70 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28Monthly BillMonthly Water Consumption (HCF) SFR - Sewer Bill Comparison Current vs. Proposed Rates SFR Bill - Current Rates SFR Bill - Proposed Rates Agenda Item 11.1 Page 284 of 308 Prepared by NBS www.nbsgov.com | Toll-Free: 800.676.7516 MFR Bill 5-Yr, 26 of 34 $33.13 $33.13 $33.13 $33.13 $33.13$34.39 $35.77 $37.20 $38.69 $40.23 $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 $50 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28Monthly BillMonthly Water Consumption (HCF) Multi-Family Residential Sewer Bill Comparison Current vs. Alternative Rates (3.6 TG/Mo.) MFR Bill - Current Rates MFR Bill - Proposed Rates Agenda Item 11.1 Page 285 of 308 Prepared by NBS www.nbsgov.com | Toll-Free: 800.676.7516 Low-Strngth 1-Yr, 27 of 34$29.64$66.69$105.96$148.20$222.30$33.44$75.23$119.53$167.18$250.77$0 $50 $100 $150 $200 $250 $300 4 hcf 9 hcf 14 hcf 20 hcf 30 hcfMonthly BillMonthly Water Consumption (HCF) Low-Strength Commercial Sewer Bill Comparison Current vs. Alternative Rates FY'23/24 (14.3 TG/Mo.) Current Rates Proposed Rates Agenda Item 11.1 Page 286 of 308 Prepared by NBS www.nbsgov.com | Toll-Free: 800.676.7516 Low-Strength 5-Yr, 28 of 34 $106.31 $106.31 $106.31 $106.31 $106.31 $119.92 $124.72 $129.71 $134.90 $140.29 $0 $20 $40 $60 $80 $100 $120 $140 $160 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28Monthly BillMonthly Water Consumption (HCF) Low-Strength Commercial Sewer Bill Comparison Current vs. Proposed Rates (28 TG/Mo.) Current Rates Proposed Rates Agenda Item 11.1 Page 287 of 308 Prepared by NBS www.nbsgov.com | Toll-Free: 800.676.7516 Dom-Strngth 1-Yr, 29 of 34$73.68$165.78$257.88$349.98$442.08$76.08$171.17$266.27$361.37$456.46$0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 8 hcf 18 hcf 28 hcf 38 hcf 48 hcfMonthly BillMonthly Water Consumption (HCF) Domestic-Strength Commercial Sewer Bill Comparison Current vs. Alternative Rates FY'23/24 (14.3 TG/Mo.) Current Rates Proposed Rates Agenda Item 11.1 Page 288 of 308 Prepared by NBS www.nbsgov.com | Toll-Free: 800.676.7516 Dom-Strength 5-Yr, 30 of 34 $260.83 $260.83 $260.83 $260.83 $260.83$269.31 $280.09 $291.29 $302.94 $315.06 $0 $50 $100 $150 $200 $250 $300 $350 $400 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28Monthly BillMonthly Water Consumption (HCF) Domestic-Strength Commercial Sewer Bill Comparison Current vs. Proposed Rates (28 TG/Mo.) Current Rates Proposed Rates Agenda Item 11.1 Page 289 of 308 Prepared by NBS www.nbsgov.com | Toll-Free: 800.676.7516 Med Strength 5-Yr, 31 of 34 $868.37 $868.37 $868.37 $868.37 $868.37 $945.10 $982.90 $1,022.21 $1,063.10 $1,105.63 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28Monthly BillMonthly Water Consumption (HCF) Medium-Strength Commercial Sewer Bill Comparison Current vs. Proposed Rates (72 TG/Mo.) Current Rates Proposed Rates Agenda Item 11.1 Page 290 of 308 Prepared by NBS www.nbsgov.com | Toll-Free: 800.676.7516 Med-Strength 23-24, 32 of 34$265.76$567.76$869.76$1,171.76$1,473.76$289.24$617.93$946.61$1,275.29$1,603.98$0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 22 hcf 47 hcf 72 hcf 97 hcf 122 hcfMonthly BillAvg. Winter Consumption Medium-Strength Commercial Sewer Bill Comparison Current vs. Rate Alternatives (FY'23/24) Current Rates Proposed Rates Agenda Item 11.1 Page 291 of 308 Prepared by NBS www.nbsgov.com | Toll-Free: 800.676.7516 High-Strength 5-Yr, 33 of 34 $812.78 $812.78 $812.78 $812.78 $812.78 $940.48 $978.10 $1,017.22 $1,057.91 $1,100.23 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28Monthly BillMonthly Water Consumption (HCF) High-Strength Commercial Sewer Bill Comparison Current vs. Proposed Rates (43 TG/Mo.) Current Rates Proposed Rates Agenda Item 11.1 Page 292 of 308 Prepared by NBS www.nbsgov.com | Toll-Free: 800.676.7516 High-Strength 23-24, 34 of 34$260.82$540.27$819.72$1,099.17$1,378.62$301.80$625.15$948.51$1,271.86$1,595.21$0 $250 $500 $750 $1,000 $1,250 $1,500 $1,750 14 hcf 29 hcf 44 hcf 59 hcf 74 hcfMonthly BillAvg. Winter Consumption High-Strength Commercial Sewer Bill Comparison Current vs. Rate Alternatives (FY'23/24) Current Rates Proposed Rates Agenda Item 11.1 Page 293 of 308 RESOLUTION NO. 2023-XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY DECLARING ITS INTENTION TO ADJUST WATER AND WASTEWATER RATES; SETTING THE TIME AND PLACE FOR A PROPOSITION 218 MAJORITY PROTEST PUBLIC HEARING; AND AUTHORIZING THE CITY ADMINISTRATOR OR DESIGNEE TO PROVIDE THE RELATED NOTICE IN COMPLIANCE WITH STATE-MANDATED TIMING REQUIREMENTS WHEREAS, the City of Gilroy has identified ongoing operational and capital needs associated with the City’s water and wastewater utility system; and WHEREAS, in order to fund the identified water and wastewater system’s operational and capital costs, it will be necessary to adjust the City’s current water and wastewater rates; and WHEREAS, the City of Gilroy engaged NBS Government Finance Group, a firm with expertise in the analysis of costs relating to utilities, to conduct a rate study of the City’s water and wastewater utilities; and WHEREAS, the City Council received the report prepared by NBS Government Finance Group at the August 21st, 2023 City Council meeting and heard from staff on this matter; and WHEREAS, on November 5, 1996, California voters approved Proposition 218, requiring specific procedures be followed with regard to “property-related” fee increases, including the need to provide written notice at least 45 days in advance of a public hearing; and WHEREAS, on July 24, 2006, the California Supreme Court confirmed that charges for water and wastewater (sewer) are subject to Proposition 218 procedures (Bighorn-Desert View Water Agency v. Verjil (2006) 39 Cal. 4th 205); and WHEREAS, on April 20, 2015, the California Court of Appeal ruled that water rate surcharges and by analogy, wastewater surcharges may be charged as long as they are based upon the actual cost of service to the ratepayers receiving the surcharge. (Capistrano Taxpayers Association, Inc. v. City of San Juan Capistrano (2015) 235 Cal.App.4th 1493; and WHEREAS, the City Council believes it is in the public interest to and desires to proceed through the requisite processes pursuant to the provisions of Proposition 218 in order to consider adjustments to the City of Gilroy's fees, rates, and charges related to its water system. Agenda Item 11.1 Page 294 of 308 Resolution No. 2023-XX Adjust Water and Wastewater Rates with Proposition 218 Hearing and Notice Authorization City Council Regular Meeting | August 21, 2023 Page 2 of 2 9 7 4 NOW, THEREFORE THE CITY COUNCIL OF THE CITY OF GILROY DOES RESOLVE AS FOLLOWS: 1. A Proposition 218 Public Hearing is hereby set and will be held before the City Council on October 16, 2023, in order for the City Council to consider adjustments to the City’s water service fees, rates and/or charges; and 2. The City Administrator, or designee, is hereby authorized and directed to cause a notice of Public Hearing that provides details related to adjustments to the specific water and wastewater service fees, rates and/or charges being proposed to be mailed no later than September 1, 2023, in a manner that complies with applicable laws, including without limitation, the State-mandated minimum 45-day required notice under Proposition 218. PASSED AND ADOPTED at a Regular Meeting of the City Council on this 21st day of August 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 Agenda Item 11.1 Page 295 of 308 Hearing Date and Time: October 16, 2023, at 6:00 p.m. or soon thereafter Location: 7351 Rosanna Street, Gilroy, CA 95020-5197 The City Council of the City of Gilroy will hold a Public Hearing on October 16, 2023, at 6:00 p.m. or soon thereafter, in the City of Gilroy City Council Chambers located at 7351 Rosanna Street, Gilroy, CA to consider adjustments to water and wastewater rates assessed to all customers. If approved, the rate adjustments will commence with service period beginning January 1, 2024 and will be adjusted annually thereafter for a five-year period. You are receiving this notification in compliance with California Constitution Article XIII D Section 6 (Proposition 218) requirements that all impacted property owners are mailed notice of proposed rate changes at least 45 days prior to a public hearing. In addition, Section 53755 of the Government Code authorizes those notices to be mailed to customers who are billed for the service. Proposition 218 also establishes a protest process for the public to follow if they wish to oppose the proposed rates. The City’s last rate study was conducted in 2015 which set rates for a five-year period, with the last scheduled increase in 2019. Rates for both water and wastewater services have not been adjusted since 2019. The City is legally required to collect revenues sufficient to cover the costs of operating the water and wastewater systems. These revenues allow the City to ensure both systems continually meet or exceeds all public health and environmental standards. Costs that must be recovered through rate revenue include groundwater production, wastewater treatment, electricity, equipment, supplies and services, debt service, and personnel. Additionally, revenues generated from both utility rates are used to finance the repair and renovation of aging infrastructure and maintain reserve funds. The rates proposed herein were developed through the Comprehensive Water and Wastewater Rate Study (Rate Study) designed to meet all legal requirements and fairly and equitably recover the necessary revenue from all customer classes. The Rate Study is available for your review at https://tinyurl.com/2023RateStudy. Proposed Wastewater Rates Wastewater revenues pay for the operations and maintenance of the collection system (pipes and pump stations that transport the wastewater from homes and businesses to the wastewater treatment plant) and the administrative and regulatory costs to run the system. The treatment plant is operated by the South County Regional Wastewater Authority (SCRWA), a Joint Powers Authority (JPA) whose members are the cities of Gilroy and Morgan Hill. A portion of the wastewater revenues collected by the City is used for payments to SCRWA. In addition, wastewater rates support infrastructure investments, such as necessary system repairs and renovations to meet new regulations. The residential wastewater service rates consist of fixed monthly charges. The non-residential wastewater service rates are comprised of two components: 1) a fixed monthly charge for non-residential wastewater monitoring and pretreatment program charges and 2) a volumetric monthly charge with four wastewater strength categories. The current and proposed wastewater rates charges for the next five years are presented in the Table 1 below: Proposition 218 Notification Notice of Public Hearing Regarding Water and Wastewater Rate Adjustments City of Gilroy 7351 Rosanna Street Gilroy, CA 95020-6197 Telephone (408) 846-0420 Facsimile (408) 846-0421 http://www.cityofgilroy.org Agenda Item 11.1 Page 296 of 308 2 Table 1 – Current and Proposed Wastewater Rates Note: Revenue from rate increases assumes an implementation date of January 1, 2024 for new rates. For each fiscal year thereafter, the assumption is that new rates will also be implemented on January 1st of each year. Proposed Water Rates Water revenues pay for the operations and maintenance of infrastructure required to deliver water to the residential and non-residential customers of the City of Gilroy. A portion of these rates fund charges from the Santa Clara Valley Water District (SCVWD), known as Valley Water, for ground water production and management, as 100% of the City’s water is pumped from the ground. The City currently charges residential and non‐residential customers a monthly fixed water charge, also known as base charge, based on meter size. In addition to a fixed monthly charge, all customers pay a variable charge, also known as volumetric rate, per 1,000 gallons consumed consisting of two rate tiers of consumption (under and above 30,000 gallons) and three different pump pressure zones. The proposed water rate design eliminates the two tiers and proposes a uniform tier for all customers. The current and proposed water rate charges for the next five years are presented in detail on Table 2 below: Table 2 – Current and Proposed Water Rates FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 Monthly Fixed Charge Residential (100% Fixed) Single-Family Residence $46.64 $51.07 $53.11 $55.24 $57.45 $59.74 Multi-Family Residence $33.13 $34.39 $35.77 $37.20 $38.69 $40.23 Non-Residential Volumetric Rates Low Strength $7.41 $8.36 $8.69 $9.04 $9.40 $9.78 Domestic Strength $9.21 $9.51 $9.89 $10.29 $10.70 $11.12 Medium Strength $12.08 $13.15 $13.67 $14.22 $14.79 $15.38 High Strength $18.63 $21.56 $22.42 $23.32 $24.25 $25.22 Non-Residential - Monitoring & Pretreatment Program Base Rate Monthly Charges Significant/Categorical $240.95 $287.19 $298.68 $310.63 $323.05 $335.98 Non-Significant/Categorical $95.22 $114.64 $119.22 $123.99 $128.95 $134.11 Other Non-Residential $11.47 $15.47 $16.09 $16.73 $17.40 $18.09 Sewer Rate Schedule Current Rates Proposed Sewer Rates FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 Monthly Fixed Service Charges Meter Size 3/4 inch $11.53 $20.67 $22.32 $23.66 $24.61 $25.59 1 inch $19.24 $29.05 $31.38 $33.26 $34.59 $35.98 1 1/2 inch $38.47 $50.02 $54.02 $57.26 $59.55 $61.93 2 inch $61.55 $75.17 $81.18 $86.05 $89.50 $93.08 3 inch $115.39 $142.24 $153.62 $162.84 $169.36 $176.13 4 inch $192.30 $217.70 $235.12 $249.23 $259.20 $269.57 6 inch $384.62 $427.32 $461.50 $489.19 $508.76 $529.11 8 inch $615.37 $678.85 $733.16 $777.15 $808.23 $840.56 10 inch $884.50 $1,768.83 $1,910.34 $2,024.96 $2,105.95 $2,190.19 Residential Customers - Tiered Volumetric Rates Tier 1 - Zone 1 $4.39 $4.00 $4.32 $4.58 $4.77 $4.96 Tier 1 - Zone 2 $4.93 $4.37 $4.72 $5.00 $5.20 $5.41 Tier 1 - Zone 3 $5.52 $4.73 $5.11 $5.41 $5.63 $5.85 Tier 2 ( more than 30 TG) Tier 2 - Zone 1 $4.93 N.A. N.A. N.A. N.A. N.A. Tier 2 - Zone 2 $5.47 N.A. N.A. N.A. N.A. N.A. Tier 2 - Zone 3 $6.06 N.A. N.A. N.A. N.A. N.A. Note: The City recently transitioned from July1-June 30 fiscal years to calendar years (January to December). Current Rates Proposed RatesWater Rate Schedule Variable Charges for All Water Consumed ($/1,000 gallons (or TG)) Uniform Vol. Rates Agenda Item 11.1 Page 297 of 308 3 Note: Revenue from rate increases assumes an implementation date of January 1, 2024 for new rates. For each fiscal year thereafter, the assumption is that new rates will also be implemented on January 1st of each year. Valley Water Passthrough Rate Increase for Groundwater Valley Water charges the City a ground production charge for 100% of the City’s water that is pumped from the ground. In the event that Valley Water imposes additional charges associated with the pumping of groundwater, the City will implement a passthrough adjustment to customer’s bills no earlier than thirty (30) days after the adjustment has been enacted by Valley Water and noticed to all City customers. When Would New Rates Become Effective? If approved, the first water and wastewater rate adjustment will be effective the service period beginning January 1, 2024 and adjusted annually every January 1 thereafter. Protest Procedure As the owner or customer of record of a parcel subject to the imposition of the proposed rate adjustments, you may submit a written protest against the proposed rate changes. If the City receives written protests against proposed rates by a majority of the affected property owners or tenants or utility customers on record prior to the end of the hearing, the Council will not approve the change. Only one written protest will be counted per identified parcel. You have the right to withdraw a written protest that you previously submitted prior to the conclusion of the public hearing. The City Council will count all written protests received (not postmarked) prior to the conclusion of the public hearing. The City Council will not count written protests submitted after the conclusion of the public hearing. A written protest must include (1) your name; (2) identification of the parcel by address or assessor’s parcel number; (3) whether you are the owner of the parcel or the person receiving the service for which the fee is charged; (4) your statement of the specific rate changes for which you protest the increase in the fee; and (5) your original signature. Written protests will not be accepted by e‐mail or by fax. Verbal protests will not be counted. Written protests may be submitted by mail or in person to: City of Gilroy Attn: Utilities Rate Protest 7351 Rosanna Street Gilroy, CA 95020-6197 At the Public Hearing, the City Council will hear and consider all written and oral protests to the proposed rate increases. Oral comments at the Public Hearing, however, will not qualify as formal protests unless accompanied by a written protest. At the conclusion of the Public Hearing, the City Council will consider adoption of the resolution authorizing the rate increases to the water and wastewater service fees as described herein. For more information, please visit: https://www.cityofgilroy.org/994/Water-and-Wastewater-Rate-Adjustment, or contact the City’s Finance Department via phone at 408-846-0420 or email at ub@cityofgilroy.org. Agenda Item 11.1 Page 298 of 308 Page 1 of 4 City of Gilroy STAFF REPORT Agenda Item Title:Extension of Temporary Outdoor Dining Program Meeting Date:August 21, 2023 From:Jimmy Forbis, City Administrator Department:Community Development Submitted By:Sharon Goei, Community Development Director Prepared By:Sharon Goei, Community Development Director STRATEGIC PLAN GOALS Promote Economic Development Activities RECOMMENDATION Adopt a resolution extending the temporary outdoor dining program through December 31, 2023. EXECUTIVE SUMMARY The City developed a temporary outdoor dining program to support business activity and to aid in the economic recovery of the City arising from the COVID-19 pandemic. The program expired on May 31, 2023. In response to recent comments from the business community and considering potential property tax implications on parklets, staff is seeking Council direction and recommending extending the temporary outdoor dining program through December 31, 2023. BACKGROUND In response to the COVID-19 outbreak in early 2020, local and state agencies issued health and safety directives to slow the spread of COVID-19, including social distancing measures. On March 16, 2020, Santa Clara County issued a shelter-in-place order, directing all residents to shelter in their places of residence except to engage in essential activities. On March 19, 2020, California Governor issued a statewide shelter-in-place order. Agenda Item 11.2 Page 299 of 308 Extension of Temporary Outdoor Dining Program City of Gilroy City Council Page 2 of 4 August 21, 2023 2 7 7 On June 1, 2020, to support business activity and to aid in the economic recovery of the City arising from the COVID-19 pandemic, the City Council approved a temporary outdoor dining program. The program temporarily allowed restaurants to operate in outdoor settings adjacent to their business, utilizing private parking lots, public parking spaces, sidewalks, plazas, or similar outdoor spaces, for outdoor dining. Use of City- owned public properties and right-of-way, such as public parking spaces, mainly applied to downtown businesses. The temporary program simplified the permitting process, with the goal of assisting restaurants with re-opening quickly in a manner consistent with local and state health and safety directives, establishing outdoor dining while ensuring the safety of patrons and the public. Several restaurants took advantage of the program and set up temporary outdoor dining spaces. The temporary program was intended to end on May 31, 2021, or 30 days after the County order allows sit-down dining without distancing restrictions, whichever is sooner. On May 3, 2021, and again on May 16, 2022, the City Council extended the temporary outdoor dining program. The program remained valid until May 31, 2023. In the Resolution extending the program through May 31, 2023, it states that until May 31, 2023, the City shall make specific City-owned public properties, including sidewalks, plazas, public parking lots, and other rights-of-way, available for outdoor dining during the pendency of the County and State orders. Under the temporary program, Station 55 Seafood and Mexican Cocina established an outdoor dining parklet. Station 55 desires to retain the temporary parklet installed under the COVID-19 program. The outdoor dining parklet on Monterey Street in front of the Tempo Kitchen and Bar originated under a separate pilot program in 2017. It currently has a Revocable Encroachment Permit for Occupying an Existing Parklet issued by the Public Works Department in April 2021. It is worth noting that as public health professionals continue to monitor COVID-19 data and agencies update COVID-19 guidance, on February 28, 2023, Governor Newsom issued a proclamation terminating the State’s COVID-19 State of Emergency. The Governor also phased out the executive actions in March 2020 as part of the response to the pandemic. ANALYSIS Recently, staff has received concerns regarding the negative impacts of outdoor dining parklets occupying public parking spaces. Businesses expressed that such installation was only allowed due to COVID-19 and that parking spaces occupied by parklets cannot be used by surrounding business customers. Businesses also voiced concerns that parklets block adjacent businesses’ visibility and create vehicular traffic visibility issues. Agenda Item 11.2 Page 300 of 308 Extension of Temporary Outdoor Dining Program City of Gilroy City Council Page 3 of 4 August 21, 2023 2 7 7 Staff has also been receiving comments that advocate for the outdoor dining parklets to remain, noting that they support business activity and continue to stimulate the local economy. A further consideration and implication about outdoor dining parklets arose from an early August communication from the Santa Clara County Assessor to jurisdictions in the County. In the communication, the County Assessor states the following: “Private business use of outside public spaces, often known as ‘parklets’, started as a response to the pandemic. During that time, businesses required outdoor operation for safety, as indoor spaces were closed. The community has grown to value the outdoor experience, even as indoor service to the public resumed. No longer required, but highly desired, the expansions have a durability and permanence that may create a taxable use. It is the Assessor’s responsibility to evaluate this private use of public space and consistently apply the Revenue & Taxation Code. As you contemplate formalizing parklets and other transformations of public space through agreements, licensing and/or permitting, we would like to make sure you understand the potential property tax implications of this activity.” Thus, outdoor dining parklets could result in potential property tax implications. The City Council’s adopted budget for FY 2023-24 and FY 2024-25 includes the Downtown Parking Management Plan as a Council-initiated legislative agenda item. Consideration of any permanent program for downtown parklets will depend upon the study results and adoption of the Downtown Parking Management Plan. Public Works staff is anticipated to bring forward the Downtown Parking Management Plan for consideration by the City Council in fall 2023. In response to recent comments from the business community and considering potential property tax implications on parklets, staff is seeking Council direction on extending the temporary outdoor dining program through December 31, 2023. Staff proposes this timeline in anticipation of the Downtown Parking Management Plan completion before this date, with the Plan guiding the consideration of any permanent program for downtown parklets. Prior to this date, County Assessor may also provide further details on potential property tax implications for parklets. Staff recommends that Council adopt the resolution proposed in the attachment to the staff report to extend the temporary outdoor dining program through December 31, 2023. Staff will return to the City Council or provide the City Council with any updates prior to December 31, 2023. ALTERNATIVES If the City Council chooses not to extend the temporary outdoor dining program through December 31, 2023, staff will notify and work with any affected business on compliance. Agenda Item 11.2 Page 301 of 308 Extension of Temporary Outdoor Dining Program City of Gilroy City Council Page 4 of 4 August 21, 2023 2 7 7 FISCAL IMPACT/FUNDING SOURCE The temporary outdoor dining program had no fees or costs associated with it other than minimal staff time reviewing and managing requests. There may be revenue implications for businesses under the temporary program, as well as businesses nearby. There may be property tax implications for businesses with parklets. Attachments: 1. Draft Resolution Agenda Item 11.2 Page 302 of 308 9 7 8 RESOLUTION 2023-XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY EXTENDING THE TEMPORARY OUTDOOR DINING PROGRAM THROUGH DECEMBER 31, 2023 WHEREAS, on March 16, 2020, the Santa Clara County Health Officer issued a shelter-in-place order to address COVID-19, directing all residents of the County to shelter in their places of residence except to engage in essential activities as allowed under the order; and WHEREAS, on March 19, 2020, the Governor issued a statewide shelter-in-place order; and WHEREAS, on June 1, 2020, the City Council approved recommendations for temporarily modifying certain City Code requirements to support business and development activity (e.g., outdoor dining) and to aid in the economic recovery of the City arising from economic impacts of the COVID-19 pandemic; and WHEREAS, on May 3, 2021, and again on May 16, 2022, the City Council extended the temporary economic recovery program allowing private parking lots, public parking spaces, sidewalks, walkways, plaza areas, or similar outdoor spaces to be used for outdoor dining; and WHEREAS, outdoor dining continues to stimulate the local economy in furtherance of the City Council’s goal to “Promote Economic Development Activities that Create Opportunities for Quality Employment and Increase the City's Tax Base”; and WHEREAS, Vehicle Code Section 22507 authorizes cities to adopt local rules for parking on public streets; and WHEREAS, Vehicle Code Section 21101(e) authorizes the governing body of a local agency to close portions of public streets temporarily by ordinance or resolution as necessary for the safety and protection of persons who are to use such portions of streets during the temporary closing; and WHEREAS, the City of Gilroy, as a municipal corporation and charter city, has inherent authority to govern and control the use and enjoyment of its own property; and WHEREAS, Article XI, Section 7 of the California Constitution states that: “A county or city may make and enforce within its limits all local, police, sanitary, and other ordinances and regulations not in conflict with general laws.” NOW, THEREFORE, BE IT RESOLVED THAT: The City Council hereby finds that each of the foregoing recitals is true and correct. Agenda Item 11.2 Page 303 of 308 9 7 8 Until December 31, 2023, the City Engineer or designee is hereby authorized to allow certain City-owned public properties, including public parking spaces, sidewalks, plazas, and other rights-of-way, to be used for outdoor dining. Until December 31, 2023, the City Engineer or designee is hereby authorized to allow portions of public streets to also be used for outdoor dining; provided, however, that no portion of any street shall be closed entirely to through traffic except as authorized by subsequent resolution of the City Council pursuant to Vehicle Code Section 21101(e). PASSED AND ADOPTED by the City Council of the City of Gilroy at a regular meeting duly held on the 21st day of August 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 Agenda Item 11.2 Page 304 of 308 City of Gilroy STAFF REPORT Agenda Item Title:Adopt a Resolution of Intention to Reimburse Expenditures for Costs Incurred in Connection with the Gilroy Ice Center Project Meeting Date:August 21, 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 Promote Economic Development Activities Maintain and Improve City Infrastructure RECOMMENDATION Adopt a Resolution of Intention to Reimburse Expenditures for Costs Incurred in Connection with the Gilroy Ice Center Project (the “Project”). BACKGROUND The City of Gilroy (the “City”) has entered into that certain Exclusive Negotiating Rights Agreement, as amended from time to time, with Sharks Sports & Entertainment LLC (“Sharks”), pursuant to which the City selected the Sharks to negotiate exclusively the terms for the operation of an indoor entertainment and sports complex on a portion of the Gilroy Sports Park. In June 2022, the City Council approved a non-binding term sheet with the Sharks. The project is included in the City’s recently adopted five-year Capital Improvement Program. In anticipation of construction, certain work such as preparation of the basis of design and design-build documents and utility and site work improvements are required that the City will likely complete prior to any financing (bond issuance) for the Project. Page 1 of 2 Agenda Item 11.3 Page 305 of 308 Adopt a Resolution of Intention to Reimburse Expenditures for the Proposed Improvement to the Gilroy Sports Park for the Gilroy Ice Center Project City of Gilroy City Council Page 2 of 2 August 21, 2023 ANALYSIS Staff has begun working with NHA Advisors, the City’s municipal advisor, and Nixon Peabody, the City’s bond counsel, on the potential financing to provide funds for the Project. The maximum principal amount of the bond issuance noted in the resolution as $50 million is an estimate at this time and serves as a placeholder until the actual bond issuance amount is determined, which will be known after the project completes the planning/design phase. The final bond issuance amount will be subject to subsequent Council approval. Federal regulations generally require an issuer of debt to adopt a declaration of official intent to use the proceeds of debt to reimburse the issuer for capital expenditures made before the debt is issued. Staff seeks approval of the enclosed resolution in order to comply with these requirements. The resolution declares the City’s intention to reimburse Project-related expenditures using the debt proceeds once the debt is issued. This will allow the City to advance funds to meet the current timeline for the Project and ensure those funds will be reimbursed from the proceeds of the financing. Staff will return to the City Council to seek final approval to issue the debt and enter into financing agreements. ALTERNATIVES City Council could elect not to adopt the resolution of intent. Staff does not recommend this alternative. FISCAL IMPACT/FUNDING SOURCE There is no fiscal impact to the adoption of this resolution. However, adopting this resolution will enable the City to reimburse itself for costs incurred on the project from the future bond proceeds. The Gilroy Ice Center project is in the adopted Capital Improvement Program (Project No. 800900) with funding from the Public Facilities Fund (440), Traffic Impact Fund (425), and bond proceeds. Attachments: 1. Draft Resolution Agenda Item 11.3 Page 306 of 308 RESOLUTION NO. 2023-XX RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY TO REIMBURSE EXPENDITURE FOR COSTS INCURRED IN CONNECTION THE GILROY ICE CENTER PROJECT WHEREAS, the City of Gilroy (the “City”) has entered into that certain Exclusive Negotiating Rights Agreement, as amended from time to time, with Sharks Sports & Entertainment LLC (“Sharks”), pursuant to which the City selected the Sharks to negotiate exclusively the terms for the operation of an indoor entertainment and sports complex on a portion of the Gilroy Ice Center Project (the “Project”); and WHEREAS, the City intends to finance or cause to be financed all or a portion of the costs of the Project with the proceeds of the sale of obligations (the “Obligations”); and WHEREAS, prior to the issuance of the Obligations, the City desires to incur certain expenditures with respect to the Project from available monies of the City, which expenditures are desired to be reimbursed by the City from the proceeds of the sale of the Obligations. NOW, THEREFORE, THE CITY OF GILROY DOES HEREBY RESOLVE, ORDER, AND DETERMINE AS FOLLOWS: SECTION 1.The City hereby states its intention and reasonably expects to reimburse, with proceeds of the Obligations, Project costs incurred prior to the issuance of the Obligations. SECTION 2. The reasonably expected maximum principal amount of the Obligations is $50,000,000. SECTION 3.This declaration of intent does not bind the City to make any expenditure, incur any indebtedness, or proceed with the Project. Agenda Item 11.3 Page 307 of 308 Resolution No. 2023-XX Reimburse Costs for the Ice Center Project City Council Regular Meeting | August 21, 2023 Page 2 of 2 9 7 6 PASSED, APPROVED, AND ADOPTED by the City Council of the City of Gilroy at a regular meeting duly held on the 21st day of August 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 Agenda Item 11.3 Page 308 of 308